Red Barn Financial Podcast: Recent Episodes
Sean Moran
This is the Red Barn Financial Podcast. Red Barn Financial is a financial advisory company serving family and small businesses.
Red Barn Financial helps people: 1. Organize their finances and put together a plan for success 2. With their investments through financial plans and investment analysis and investment management. 3. With risk mitigation strategies including life insurance, disability insurance and more. 4. Through tax planning strategies 5. Setting up IRAs, brokerage accounts and other investments.
Learn more about Sean Moran and Red Barn Financial at www.redbarnfinancial.com
Disclaimer: Information provided in this podcast is for information purposes only and does not constitute financial advice. Financial decisions should only be made after careful consideration and based on all information available. Information provided in this podcast may not apply to you and therefore cannot be relied upon in making financial decisions. Consult your financial advisor or reach out to us if you would like to engage our services. Securities offered through Ad Deum Funds a Registered Investment Advisor headquartered in Chantilly Virginia.
In this episode of the Red Barn Financial podcast we talk about the most googled financial questions of 2024.
It’s always interesting to see what’s on people’s minds, especially when it comes to finances. Did you know some of the most Googled financial questions in 2024 included: “How do I start investing?”, “What’s the best way to save for retirement?”, and “Do I really need life insurance?”
These are great questions, and if you’ve been wondering about them too, you’re not alone. Financial planning can feel overwhelming, but I’m here to simplify it for you.
Whether you’re curious about building wealth, protecting your family, or maximizing your savings, let’s address your biggest questions together. No question is too big—or too small—when it comes to your financial future.
I’d love to schedule a time to chat and help you gain clarity and confidence about your next steps. Let’s turn those Googled questions into personalized answers for your goals.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
In this episode of the Red Barn Financial Podcast, I kick off the 21 day devotional "Look At The Sparrows" by Faithfi.
In this episode we explore Matthew 6:19-21 which says: 19 “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. 20 But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also.
If we put our efforts and desires in things of this earth, we will be left feeling empty. This is not to say that having nice things is bad. What it is saying is that our focus should be on being content in who God made us and in what His goals are for our lives, which will be way better than any plan we have.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
In this episode of the Red Barn Financial Podcast, Sean Moran talks about ways to reduce or eliminate debt. It's often a strategy and a process and we talk through the ways in which to make this happen for you. Are you committed to paying down your debt this year?
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
In this episode of the Red Barn Financial Podcast, Sean Moran talks about the unintended consequences of leaving money to loved ones.
When you leave money to someone, you may be leaving them a tax liability that could have been smaller with a bit of planning.
Here are a few things to consider:
- Plan while both spouses are alive
- Consider the tax bracket of the people you are gifting to
- Think about actionable planning to reduce your tax liability over time
- Giving equal amounts to multiple people doesn't always result in them receiving an equal amount.
This chart will help you follow along:
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
In this episode of the Red Barn Financial Podcast, I talk about ways to make your charitable giving go further with some tax efficient ideas. I share the keys to giving and finding where your philanthropy can have the most impact.
The use of a Donor Advised Fund (DAF) or making a Qualified Charitable Distribution (QCD) from an IRA are two potential ways to improve your giving by paying less in taxes, thereby leaving more for the charity or less of a tax burden for yourself.
Giving appreciated stock vs. selling the stock and giving cash, and many more topics are discussed.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
Equity ownership dilution occurs when a company issues additional shares, reducing the ownership percentage of existing shareholders. This is common during second round fundraising (Series B), where new investors come on board, and more shares are created to accommodate their investment. It isn't necessarily a bad thing, however, because 10% of a company with no money is likely worth less than 5% of a company with money.
Key points to consider include:
- Impact on Ownership: Existing shareholders' ownership percentages decrease, which can affect control and decision-making power.
- Valuation and Terms: The company's valuation and the terms of the new investment round play crucial roles in determining the extent of dilution.
- Protective Measures: Founders and early investors often negotiate anti-dilution provisions to protect their stakes.
Understanding these aspects helps founders and investors make informed decisions during subsequent fundraising rounds.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
When one spouse passes there is a little known and unintended consequence from a tax perspective. It’s often called the Widow Penalty. This is the result of the fact that generally a retired married couple lives on close to the same amount of money (because of the shared household expenses) when they are both alive as compared to when one passes.
The issues comes from the fact that now the surviving spouse is single and their standard deduction is cut in half. In 2024 that would be from $29,200 married filing joint vs $14,600 if they were single.
Additionally, the amount of income they can earn per each tax bracket is roughly half of what it would be if they were still considered married. For example, a Married couple with $201,050 of taxable income would be at the top of the 22% tax bracket, while a single person with the same income would be in the 32% bracket, some 10% and 2 brackets higher.
The best way to avoid this is to be proactive with your tax planning. A financial advisor such as myself can help you with this.
Disclaimer: This podcast is not tax, legal or financial advice. Every person’s situation is different. If you would like to discuss your personal situation, feel free to reach out to Sean at 615-619-6919, email smoran@redbarnfinancial or schedule a meeting at Calendly.com/spmoran
In this episode of the Red Barn Financial Podcast, Sean Moran shares the different strategies for investing at different stages of your life. One example is when you are younger, you might want to put your retirement funds in Roth accounts as your tax liability is low, so a tax deduction might not be as valuable. As you reach the peak of your career, you may be in the highest tax brackets and want to reduce your taxes, in which case the traditional 401(k) or IRA might be a better choice. If you have a lot of money in your traditional accounts, you might want to consider Roth so that your RMDs (Required Minimum Distributions) are lower.
Working with a financial advisor can help you choose the best strategies.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
“Taxing Unrealized Capital Gains: What You Need to Know”
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Current Taxation System:
- Under the current system, taxpayers pay taxes on the growth in the value of their assets when they are sold (realized gains).
- Short-term gains (assets held for less than one year) are subject to ordinary income tax rates.
- Long-term gains (assets held for over a year) are taxed at a top rate of 23.8%.
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Kamala Harris’ Proposal:
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Harris has proposed taxing unrealized capital gains for individuals.
- These taxpayers would report unrealized gains annually, including basis (original purchase price) and market value as of December 31.
- The tax applies if the individual does not pay at least a 25% tax rate on their income (including unrealized gains).
- Payments can be spread out over subsequent years.
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Implications and Controversies:
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The proposal aims to address wealth inequality and capture gains from appreciating assets.
- Critics argue that it could be complex to implement and may have unintended consequences.
- Supporters believe it could generate revenue for social programs and reduce tax avoidance.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
Are you the fortunate recipient of an inherited IRA? This podcast episode is your essential guide to understanding and maximizing your inherited IRA. We'll delve into the complexities of different inheritance scenarios, explore the rules and regulations governing inherited IRAs, and provide practical tips for making informed decisions about your financial future.
Key Topics:
- Different Inheritance Scenarios: Understand the nuances of inherited IRAs based on your relationship to the deceased.
- Required Minimum Distributions (RMDs): Learn about the mandatory withdrawals you'll need to make from an inherited IRA.
- Tax Implications: Explore the tax consequences of withdrawing funds from an inherited IRA and strategies to minimize your tax burden.
- Stretching RMDs: Discover how to potentially extend the withdrawal period for an inherited IRA, allowing you to spread out tax payments.
- Roth Conversions: Explore the benefits and drawbacks of converting a traditional inherited IRA to a Roth IRA.
- Estate Planning Considerations: Understand how inherited IRAs can impact your overall estate plan and how to plan for future generations.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
Pitfalls of Early Retirement Account Withdrawals
The video provides information about early withdrawals from retirement accounts. The speaker discusses what an early withdrawal is, the penalties associated with it, and the circumstances under which you may be able to avoid those penalties. Some of the key points from the video include:
- Early withdrawals are any withdrawals taken from your retirement account before you reach age 59 and a half.
- Early withdrawals are subject to a 10% penalty on top of the regular taxes.
- There are some exceptions to the 10% penalty, including death, permanent disability, unreimbursed medical expenses, birth or adoption, qualified higher education expenses, first-time homebuyer expenses, military reservist duty, and rollovers.
- It's important to consult with a financial advisor or tax professional to determine if you qualify for any of the exceptions and to understand the potential tax implications of taking an early withdrawal.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
Ep. 81 Tax Efficient Funding of a Major Purchase (House, Car, etc.)
In this episode I share how I helped a client with funding a home downpayment, but this process can work with any amount and any major purchase. The key here is to avoid penalties and keep our taxes to a minimum. Here is the spreadsheet used to walk through this.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
When choosing a financial advisor, there are a number of questions you want to ask. In this episode of the Red Barn Financial Podcast, Sean Moran answers the Top 5 questions:
- Is the advisor licensed? Are they truly a financial advisor or are they an insurance agent or coach that gave themselves a fancy name?
- Don't just pick the first advisor you meet. Make sure you interview a few to determine if you are picking the right one. Just like you wouldn't buy the first house you looked at without seeing a few more, make sure you know you are picking the best advisor for you.
- Choose someone who is aligned with your values - whether it's faith based investing, ESG, giving to charity, retiring early or another value you have. Be sure your advisor understands your goals and is aligned and committed to helping you achieve them.
- Understand the fees - Does your advisor charge an Assets Under Management (AUM) fee, do they charge hourly, do they get commissions for selling you products? You want to know which applies and whether you are comfortable with that method. 1.
- Do Your Homework - Look at Google reviews, see if the advisor has been recognized in their community, check out their website and understand if they have done the things you need before.
Disclaimer: This podcast is for informational purposes only. It is not tax, legal or financial advice. What is right for one person may not be right for another depending on their circumstances. If you would like to contact us please email smoran@redbarnfinancial.com To learn more about Red Barn Financial and the services we provide visit www.redbarnfinancial.com:
In this episode of the Red Barn Financial Podcast, Sean Moran talks about the areas in the Bible where it speaks about money. This is only scratching the surface, because there are over 2,500 verses that talk about money.
If you feel convicted to do what God is calling you to do with your money, specifically being a good steward of what has been given to you, reach out. We can help you with budgeting, intentional giving, putting money away for the future and tax advantaged ways to give.
Disclaimer: This podcast is for informational purposes only. It is not tax, legal or financial advice. What is right for one person may not be right for another depending on their circumstances. If you would like to contact us please email smoran@redbarnfinancial.com To learn more about Red Barn Financial and the services we provide visit www.redbarnfinancial.com
Ep 78 Why Drawing From Your Retirement Account Early is a Costly Mistake
Many times people take money out of their retirement account early so they can pay bills, because they changed jobs or for "easy access" to their money. In this episode of the Red Barn Financial Podcast, Sean Moran shares why this could be a costly mistake, but in the current year as well as in future years. This includes the tax cost, the penalties and the fact that you will not have the money there for your future when you take it out today.
Disclaimer: This podcast is for informational purposes only. It is not tax, legal or financial advice. What is right for one person may not be right for another depending on their circumstances. If you would like to contact us please email smoran@redbarnfinancial.com To learn more about Red Barn Financial and the services we provide visit www.redbarnfinancial.com
Taxes Done? You're NOT Finished Yet! Here's Why
When you finish your tax return you want to understand what happened, what you can do for the next year to save taxes or to strategically prepare yourself for future years. In this episode of the Red Barn Financial Podcast, Sean will talk about what to look for on your tax return and things that you could look into further so that you might potentially pay less taxes in future years.
Sean Moran is a financial advisor specializing in retirement planning, college planning, life insurance, disability insurance, Long Term Care insurance and a holistic approach to your personal finances. Sean has clients in NJ, TN, VA, TX and would love to help you either locally or virtually. Sean is an author, former corporate tax professional and entrepreneur. He holds a BS from York College of PA and a Masters of Taxation from Fairleigh Dickinson University.
If you are interested in learning more, you can contact Sean at: smoran@redbarnfinancial.com or schedule a meeting here: calendly.com/spmoran
Disclaimer: The information in this podcast is not tax, legal or financial advice. Each person's situation is unique and you should speak with your financial advisor and tax advisor to be sure your plan works for you.
Red Barn Financial LLC offers securities through Ad Deum Funds, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitationfor the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
In this episode I share some times when spending more money will save you money.
As a financial advisor, I often advocate for people to save money for their future, but there are many times when spending more money can save you money in the long run.
One example is for a quality "once in a lifetime" experience. There is a balance between spending the most and the least you can possibly spend, but there are times to splurge a bit.
Another place can be quality items like good shoes that last a long time or a good car that will not fall apart.
I also share bonus material on how you can spend a bit more and still save.
For more information on Red Barn Financial and what we can do for you, visit www.redbarnfinancial or call us at 615-619-6919 for a consultation.
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com
Ep. 75 Taking Money out of your Retirement Account Can Destroy Your Financial Life
In a podcast by Sean Moran, a financial advisor with Red Barn Financial, discourages people from withdrawing money from their retirement accounts before reaching the age of 59 and a half due to tax penalties and the added tax cost.
The podcast discusses two real-life scenarios where people made such mistakes. In the first scenario, a couple withdrew $700,000 from their retirement account to buy a vacation home. This resulted in a 10% penalty and pushed them into a higher tax bracket. In the second scenario, a person gave their ex-spouse $25,000 from their retirement account during a divorce. The speaker explains that there could have been ways to avoid the penalty if the money was transferred directly to the ex-spouse's IRA instead.
Overall, the podcast emphasizes the importance of consulting with a financial advisor before taking any money out of a retirement account. Planning ahead can help you avoid costly mistakes.
In this episode of the Red Barn Financial podcast, I share two different stories of people that have taken money out of their 401(k) or retirement plans.
Cashing out your retirement account is often a terrible idea.
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com
In this Episode of the Red Barn Financial Podcast I get the opportunity to interview Jackson Matheson of the Wood Group of Fairway Mortgage. He shares his experiences and the reason why he is passionate about the Home Equity Conversion Mortgage (HECM). Jackson shares why this tool gives you an opportunity to make sure you are financially secure in retirement and opens up one of the largest assets most of us have to use to fund things we need in retirement.
Jackson's contact information:
Jackson Matheson
Loan Officer
NMLS# 1978746
Office: 615-628-7228
eFax: 866-728-8617
Cell: 530.774.8246
1220 Marathon Drive
Murfreesboro, TN 37129
Some statistics that Jackson shared:
Notable statistics for the Baby Boomer generation:
- 27% have no retirement savings
- 70% will need some form of long-term care
- 39% get divorced
- 75% have debt
- Over 50% of boomers rely on social security either heavily or entirely
- 10,000 baby boomers turn 62 each day (of which 30%-40% will carry a traditional mortgage payment into retirement)
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact Red Barn Financial please email smoran@redbarnfinancial.com or call 615-619-6919. To learn more about our firm, visit www.redbarnfinancial.com
Note: Red Barn Financial is independent of it's guests and nothing in this podcast should be construed as an endorsement or recommendation to use any of the products or services discussed. Each person should assess their financial needs with a financial advisor like us.
A recent study by Boston College recommends ending 401(k) and IRA tax benefits in order to use the extra tax revenue to fund Social Security.
I share in this podcast episode why I think that could be a bad idea that would lead to more issues for retirees in the future, which would mean simply transferring the problem to the future.
The Center for Retirement Retirement Research at Boston College said that about $185 billion of more revenue would be collected by the IRS each year if people couldn't deduct their 401(k) or IRA contributions.
I believe this would result in less savings for the future. If people choose not to save for retirement because there is no immediate benefit, they are likely to spend that money instead.
You can learn more about it in this article
Disclaimer: The informaiton contained in this podcast is not tax, legal or investment advice. Everyone's circumstances are different. If you would like to discuss your informaiton specifically please contact us at 615-619-6919 or email smoran@redbarnfinancial.com
In this episode of the Red Barn Financial Podcast I have a great conversation with business broker Russell Carriere of First Choice Business Brokers. Russ is a 30 year entrepreneur who helps business owners understand what their businesses are worth and how to position a business for sale in the near or distant future.
Russ can be contacted here:
Website: https://nashville.fcbb.com/
email: Russell.carriere@fcbb.com
Phone: (615) 288-6886
To reach out to Sean Moran at Red Barn financial please call 615-619-6919 or email smoran@redbarnfinancial.com Learn more about Red Barn Financial on our website www.redbarnfinancial.com
Disclaimer: The information in this podcast is not tax, legal or financial advice. Please consult a financial advisor for information on your specific situation. Opinions expressed by guests are their own. The appearance on the Red Barn Financial Podcast by any guest does not constitute an endorsement.
Ep. 69 Where you put your money is as important as how much you have. You want to be tax efficient with your money so the particular account you put different assets in will drive whether they are efficiently taxed or not. In this episode of the Red Barn Financial Podcast I will share some factors you need to consider when you are choosing where and with what assets to invest.
For example, if you put dividend paying stocks in your brokerage account you will pay taxes on the dividends in the year you earn them. If you put them in an IRA then you defer the taxes to a future year. On the other hand you turn capital gains into ordinary income in the IRA.
With respect to real estate, if you have that in an IRA account, lose the opportunity to depreciate the property, you can't use it personally and you also lose capital gains tax treatment which can be beneficial.
Disclaimer: The information contained in this podcast is for informational purposes only and is not financial advice. Everyone's situation is different, so you should discuss your needs with a financial advisor like me.
Contact information: Red Barn Financial Sean Moran - smoran@redbarnfinancial.com 615-619-6919 www.redbarnfinancial.com
Ep. 68 How Much Money You Need To Have Saved For Retirement At Any Age
In this episode of the Red Barn Financial Podcast, I discuss the amounts or ranges you want to save in order to be able to retire comfortably. If you haven't saved enough money yet to really get to where you want to be, that doesn't mean it's time to give up. It simply means it's time to start saving more than you have been in the past.
Whether your plan to retire or not, it's important to save as though you do, because sometimes we have to stop working sooner even if we don't want to.
Here are the numbers from T. Rowe Price:
Here are the numbers from Fidelity:
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com
Episode 67 Tax Season Has Started Should You File Right Away?
You can now file your 2023 tax return, but you may have reasons to hold off on filing your return. In this episode of the Red Barn Financial Podcast I discuss the reasons why you might want to hold off until you have what you need.
If you are looking for some free resources for filing your 2023 tax returns, you can find them at https://www.redbarnfinancial.com/tax-resources
Disclaimer: The information contained in this podcast is for informational purposes only and is not financial advice. Everyone's situation is different, so you should discuss your needs with a financial advisor like me.
Ep. 66 Proper Planning Can Leave You Prepared - Otherwise This Happens
All too often we are going through life without the most important things we need for our financial security and the security of the ones we love. We end up missing these things because we are so busy doing the things that we believe are in our best interest but we aren't doing the basic financial planning that our family needs.
In this episode of the Red Barn Financial Podcast, I discuss the simple things you can do to make sure your protecting your most important assets - your life and your ability to earn a living.
Disclaimer: The information contained in this podcast is for informational purposes only and is not financial advice. Everyone's situation is different, so you should discuss your needs with a financial advisor like me.
Contact information: Sean Moran - smoran@redbarnfinancial.com 615-619-6919 www.redbarnfinancial.com
In this episode I share the factors to consider when you are thinking about a lump sum payout vs a monthy payment like a pension or annuity.
Each person's situation is a bit different, so this episode will share with you the different considerations when deciding between an pension/annuity versus a lump sum payout.
Here is the example I go over in the episode:
Year End Recap - You can buy a house with how much down?
In this episode I talk about the new rule that allows people to only put down 5% on purchases of multi-unit dwellings and what my thoughts are on that.
I also share my top performing YouTube video and my top performing podcast episode.
I share about my new book I co-authored with my wife called "Leaving a Legacy" You can buy it on Amazon in paperback or hard cover.
Finally, I shared a Wall Street Journal article that points out that buying a house is more expensive than it's been in a long time and in some cases renting could be a better choice. https://www.wsj.com/finance/home-ownership-mortgage-interest-rates-122a272f?mod=e2tw
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com
Links to book are affiliate links.
In this episode of the Red Barn Financial Podcast, we go behind the curtain to learn the keys to building business credit without the personal guarantee. I interview Josh Love and Brittany Winner of J Galt.
They share how you can build your business credit and why it's so much different than personal credit.
To connect with Josh you can email him at jlove@jgalt.io or find out more on his website at https://www.jgalt.io/jlove
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com
Podcast Title: Navigating the 2024 Tax Landscape: A Guide for Taxpayers
There are some visual aspects of this episode that might be better suited for YouTube. If you would like to watch, here is the link: https://youtu.be/SUDo_pS0-A8
Description:
Stay ahead of the curve with this insightful podcast as we delve into the key tax figures for 2024. Our expert guests will provide an in-depth analysis of the latest tax changes, deductions, and credits, empowering you to make informed decisions and minimize your tax burden.
Key Topics Covered:
- Updated Tax Brackets and Rates: Understand how the 2024 tax brackets and rates impact your taxable income and tax liability.
- Standard Deduction and Exemptions: Discover the latest adjustments to the standard deduction and exemptions, and how they affect your tax savings.
- Credits and Deductions: Gain valuable insights into the various credits and deductions available to you, including the Child Tax Credit, Earned Income Tax Credit, and charitable deductions.
- Tax Planning Strategies: Learn effective tax planning strategies to optimize your tax return and maximize your after-tax income.
Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances.
If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com
In this episode of the Red Barn Financial Podcast, Sean Moran explains the reasons why you might not want to put real estate in your IRA.
You will find people pitching the idea of putting a real estate investment into an IRA, but there are many drawbacks from this strategy.
First, real estate provides many tax beneficial treatments, but when you put them into an IRA you lose some of them. For example, you can't depreciate the property, which means you lose a valuable tax benefit. Additionally, you lose capital gain treatment, which means you pay more taxes.
When you come up on RMDs or decide you want to take the investment out of the IRA it becomes quite difficult and leaving it as a legacy later on is leaving a big tax bill that could have been avoided.
Here are things to consider before investing in real estate within your IRA and why you may not want to do this.
Looking for a financial advisor? Schedule time with Sean Moran, MST - Financial Advisor at Red Barn Financial. Learn More at www.redbarnfinancial.com
Disclaimer: This podcast is not tax, legal or investment advice. Everyone's situation is different. Consult your financial advisor prior to making any major financial decision.
Looking for a financial advisor? Schedule time with Sean Moran, MST - Financial Advisor at Red Barn Financial. Learn More at www.redbarnfinancial.com or schedule a meeting at Calendly.com/spmoran
Ep. 60 - Knowing This Rule When Trading Stocks Can Save You Taxes.
There is a rule known as the wash sale rule under IRS Code Section 1091 that essentially will prevent you from taking a loss on the sale of a stock if you buy the same stock or security back in a short period of time. This time period is 30 days prior to the loss sale and 30 days after the loss sale. So adding the day of the sale that means 61 days.
For example if you bought stock worth $10,000 and you sold it later for $9,000, you would have a $1,000 loss. Let's assume 20 days later you see that the stock looks like a good deal again and you go ahead and buy it at $8,000. Because you weren't without the stock for 30 days after the sale, you can't take the loss. Similarly, let's assume you buy a stock for $100. You then find that it is a bit cheaper at $98 so you buy another share for $98. You then see it go down to $95 twenty days later and you get scared so you sell off one share and keep the other share. You can't take the loss, because you bought more before the sale within 30 days.
When you don't get to take the loss, you don't lose it forever, you just have to add the loss to the cost of the held share. In my first example, the second purchase was for $8,000 but you had a loss on the sale of $1,000, so your basis in the shares is $9,000 rather than $8,000. That means you would have a loss if you sell those shares for less than $9,000 and wait at least 30 days more.
If you would like to know more about this topic or speak to someone at Red Barn Financial, you can contact us at 615-619-6919 or at www.redbarnfinancial.com
Disclaimer: The information provided in the Red Barn Financial Podcast is not tax, legal or investment advice. Every person's situation is different and you should consult your advisors before making any financial decision.
Ep. 59 Year End Planning - Make the Most of Capital Gains and Losses
In this episode of the Red Barn Financial Podcast, we will talk about how to minimize your taxes by taking advantage of capital gain and loss planning. We will talk about what the differences are between short term gains and losses versus long term capital gains and losses. I will explain the netting rules and how each are taxed.
I will share with you how to use capital gains to offset capital losses and how to avoid wash sale rules that could prevent you from deducting your capital losses.
If you have questions about this strategy or other financial planning topics, please reach out. Contact Sean Moran at smoran@redbarnfinancial.com call 615-619-6919 or learn more at www.redbarnfinancial.com
Disclaimer: Information provided in this podcast are not tax, legal or financial advice.
The September retail numbers are in and they came in hotter than expected. What might this mean for our economy and for inflation? What factors might shape the upcoming quarter and spill over into next year. We will share this with you in this episode of the Red Barn Financial Podcast.
If you have questions about this strategy or other financial planning topics, please reach out. Contact Sean Moran at smoran@redbarnfinancial.com call 615-619-6919 or learn more at www.redbarnfinancial.com
Disclaimer: The information in this podcast is not tax, legal or financial advice. Before making any financial decision, please consult your financial advisor. Don't have a financial advisor? Give us a call.
Ep. 57 The Power of the Health Savings Account - Triple Tax Benefits
In this episode of the Red Barn Financial podcast we talk about the power and benefits of Health Savings Accounts or HSAs.
They provide unique tax benefits:
- You get a tax deduction for the contribution if you qualify for an HSA
- The money grows tax deferred
- If you take it out for qualified medical purposes it is never taxed
If you have questions about this strategy or other financial planning topics, please reach out. Contact Sean Moran at smoran@redbarnfinancial.com call 615-619-6919 or learn more at www.redbarnfinancial.com
Disclaimer - The information provided is for educational purposes only and is not tax, legal or financial advice.
In this episode of the Red Barn Financial Podcast I speak about the top 5 reasons people stay poor.
While people can fall on hard times, it's all too often the habits and the things we are doing that keep us poor. If we make adjustments to these things, there is no reason that you can't be successful, at least in the US or another free country.
If you have questions about this strategy or other financial planning topics, please reach out. Contact Sean Moran at smoran@redbarnfinancial.com call 615-619-6919 or learn more at www.redbarnfinancial.com
Ep. 55 Helping One Million Plus Entrepreneurs with Jim Morris
In this interview Jim shares how we wants to help 1,100,100 entrepreneurs. He plans to do this through Impact Events, his company that helps entrepreneurs through conferences and coaching.
If you want to join his October event find it here: https://impacteffect23.com/ Use Promo Code ML33 for a nice discount.
If you have questions about this strategy or other financial planning topics, please reach out. Contact Sean Moran at smoran@redbarnfinancial.com call 615-619-6919 or learn more at www.redbarnfinancial.com
Disclaimer: The information shared on the Red Barn Financial podcast is not tax, legal or financial advice. Any financial decision should be made after consulting a financial advisor.
Red Barn Financial has no affliliation with Jim Morris, nor his ventures, we are simply sharing his information for those why might be interested. Nothing in this interview should be construed as an endorsement. Red Barn Financial does not earn anything from sharing Jim's information
Today I want to take a moment and commemorate September 11th 2001. Please take the time to share this story with your young children. It's so important for them to know how fortunate we are to live in a free country and that this can be taken from us at any time.
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
Ep. 54 How to Make Money on a Stock Without Buying it!
If you would like to see the visual calculation, check out Red Barn Financial TV on YouTube.
In this video I share the power of making money on a stock even if you don't end up buying it. Like any strategy, stock options can be a risk, but there are ways to mitigate that risk.
If you have questions about this strategy or other financial planning topics, please reach out. Contact Sean Moran at smoran@redbarnfinancial.com call 615-619-6919 or learn more at www.redbarnfinancial.com
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
Ep. 53 - Why Your Children's Inheritance Shouldn't Drive Your Retirement
Thank you to Mary who commented on my YouTube video saying "Your kids would rather inherit the 401k, they don’t get squat of your pension." Thank you @MaryLopez-em3rc
I respond to that question explaining that while I understand the comment and Mary can be correct, it could cost you more by not having a pension. The ideal retirement would have both, but a pension or a guaranteed income stream is really important.
If you want to see the visuals, check out the YouTube version of this podcast. https://youtu.be/8JZO_-_b4T4
We here at Red Barn Financial can help you choose the best solutions for you. Reach out at www.redbarnfinancial.com or call or email us at 615-619-6919 and smoran@redbarnfinancial.com respectively.
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
Ep. 52 Level Up Your Business - An Interview with Pepper Bethel of The TPI Group
Pepper is a veteran of the US Navy and is the Director of Operations at TPI Group.
Founded in 1994, TPI Group is one of the largest accounting, financial advisory and business development firms in the DC Metro area. We offer a progressive and holistic approach by serving individuals, families and business owners with tax-efficient strategies tax advice, as well as safe and secure financial planning options.
With long-standing ties to the DMV community, we are your trusted single point of contact for all your personal and professional accounting, financial, and business needs. Our highly skilled team of Certified Public Accountants, IRS Enrolled Agents, Tax Attorneys, Financial Advisors and Business Consultants provide legal advice and serve our clients in the areas of tax preparation, tax planning, financial planning, business accounting, business planning, debt counseling, bookkeeping and estate planning.
If you would like to connect with Sean Moran feel free to reach out via the following avenues:
Phone: 615-619-6919
Email: smoran@redbarnfinancial.com
Web: www.redbarnfinancial.com
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
Ep. 51 - What Does A Financial Advisor Actually Do?
In this episode of the Red Barn Financial Podcast, Sean Moran talks about things you should expect your financial advisor to do. Gone are the days of an advisor just holding your money and trying to grow it. You should expect more.
If your advisor isn't making the cut, you should look for a new one. We would be happy to interview for the position.
Learn more at www.redbarnfinancial.com or schedule a consultation at Calendly.com/spmoran or by emailing Sean at smoran@redbarnfinancial.com
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
Ep. 50 - The Benefits of Hiring Your Children to Work for Your Company
Should you hire your children to work for your business? There are a lot of great reasons to do so. You need to follow the rules and make sure you are paying your children a fair amount for a value added service to your business. If that's the case, then it could save taxes for you and set your child up for future financial success on top of teaching them valuable life skills.
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
If you would like to speak to us about the potential to become a client please contact Sean Moran at 615-619-6919 or via email at smoran@redbarnfinancial.com To learn more about Red Barn Financial visit redbarnfinancial.com
Ep. 49 Take These Steps Prior to Buying a House
Prior to buying a home, you need a plan. In order to make sure you can afford your home you need to do some research on the house you can afford. You need to save, plan and set yourself up for success. On this episode of the Red Barn Financial Podcast, I'll share some of the strategies you may want to employ prior to buying a house.
Disclaimer: The information on the Red Barn Financial podcast is not tax, legal or investment advice. Prior to making any important financial decisions, it is important to consult a financial advisor.
If you would like to know more about Red Barn Financial or schedule a meeting, please contact us in one of the following ways:
smoran@redbarnfinancial.com
615-619-6919
www.redbarnfinancial.com
Ep 48. Think Twice Before Putting Real Estate in Your Retirement Account
If you were thinking about putting real estate in your IRA or 401k you need to listen to this. It may not be a good decision and it's one that could cost you financially in the long run.
Consider the tax costs, the inability to use the property and the issues with selling or transferring it out of your retirement account. All this and more will be discussed in this episode.
Disclaimer: The information contained in this podcast is not tax, legal or investment advice. Consult a financial advisor before making any financial decision.
If you would like to speak to us about the potential to become a client please contact Sean Moran at 615-619-6919 or via email at smoran@redbarnfinancial.com To learn more about Red Barn Financial visit redbarnfinancial.com
Ep.47 The Pros and Cons of CDs as an Investment Option
Many people are turning to CDs as a safer way to save money right now, but is it really the best option? In this episode of the Red Barn Financial Podcast, we explore the pros and cons of Certificates of Deposit (CDs) as a savings vehicle.
Pros:
Interest Rates are higher than they have been
Less risky in the short term than stocks
Short term CDs are yielding close to 5%
Cons:
Liquidity
Taxes will eat into your earnings
Getting out early could cost you interest/yield
If you are invested in CDs and the stock market rallys you could miss out.
Disclaimer - The information in this podcast is for educational purposes only. It is not tax, legal or financial advice. Everyone's financial situation is different. If you have questions about your financial situation, contact us at redbarnfinancial.com email smoran@redbarnfinancial.com or call 615-619-6919
Ep.46 The Power of Giving - Why it's so important to have a giving heart
In this episode of the Red Barn financial we do something a bit different and talk about the importance of giving of your money. We look at the biblical value of tithing and how it applies.
Some of the verses discussed include:
Malachi 3:8-14
Matthew 23:23
Luke 21:4
Proverbs 3:9-10
Disclaimer: The Red Barn Financial podcast is for informational purposes only and is not tax, legal or financial advice. If you would like to learn more about how we can help, please reach out to Sean Moran at 615-619-6919 or email smoran@redbarnfinancial.com
To learn more about Red Barn Financial please visit redbarnfinancial.com
Are you able to weather the financial Market Storm? Much of it depends on what you do during econoimic downturns and what your risk tolerance is.
If you would like to check out your Risk Tolerance, you can do so here: https://forms.office.com/r/PBJPmFAzVM
If you worry when the market goes down, you are likely to lose money. It's a natural reaction, but it's counter intuitive to the way the market goes. If you get out when the market goes down, you suffer losses and then when you are waiting on the sidelines and the market goes back up, you lose money which will result in less of a return in the long run.
If you want to learn more, check out www.redbarnfinancial.com or reach out for a complementary conversation at www.calendly.com/spmoran You can also call or email Sean Moran at 615-619-6919 and smoran@redbarnfinancial.com respectively.
Disclaimer- The information in this podcast is for informational purposes only. Each person's financial situation is different. You should consult a financial advisor before making important money decisions. The information in this podcast is not tax, legal or investment advice.
Don't Run Out of Money In Retirement.
When you are saving money and not withdrawing from your account it isn't important in what order gain years and loss years occur, you end up in the same place. When you are retired and you start drawing on those investments is when it can all go wrong. This is called Sequence of Returns risk.
In this Podcast video, I share what can go wrong that is out of your control and how you can plan to avoid running out of money with a simple technique that just requires you to plan ahead.
For example purposes, imagine you start out with $500,000 and you need to take out $100,000 per year. With no gains or losses that money would last you 5 years. Let's assume the first year your money lost 50%, you are now at $250,000, so the money will only last you 2.5 years. If you could instead not take out the $100,000 in that year and the following year the market recovered back to the $500,000, your money can last double what it would have otherwise lasted.
Here are the spreadsheets attached, or reach out to smoran@redbarnfinancial.com for the actual spreadsheet.
Disclaimer: The information contained in this podcast episode is not tax, legal or financial advice. Each person's circumstances are different and what might work for one person may not for another. Reach out to learn how this might apply to your situation, or contact another competent financial advisor.
Ep. 43 How To Invest Your Values with Todd Roitfarb of SeekInvest
In this episode of the Red Barn Financial Podcast, Sean interviews Todd Roitfarb of SeekInvest.
Todd shares why he created this software and what it can do for people who want to make sure they are investing in such a way that meets with their values. You may have heard of ESG, but does it really meet with your financial goals? Are the screening mechanisms used by your favorite ESG fund the same as you would use? If not, Todd's software can help.
Financial advisors, CPAs and other advisors as well as individual investors would benefit from checking out Todd's software.
Check out SeekInvest at https://seekinvest.com/ or contact Todd's team at team@seekinvest.com
Disclaimer: This podcast is not tax, legal or financial advice. Each person's financial situation is their own. No part of this interview should be considered an endorsement of SeekInvest and each person or advisor should evaluate whether it meets with their needs.
If you would like to speak with a financial advisor, reach out to Sean Moran at Red Barn Financial in the following ways:
smoran@redbarnfinancial.com
www.redbarnfinancial.com
615-619-6919
Ep 42 Dont Make This Expensive Retirement Saving Mistake
I have a client that engaged me to provide tax planning ideas so they can save taxes. Their current financial advisor does not provide tax planning as an offering, so they wanted someone who does, so they engaged me for this service.
Upon gathering information, I learned that the husband is contributing to a Roth IRA. Generally that is a good thing, but if you make more than $228,000 (married filing jointly) in 2023 you don't qualify to contribute to a Roth IRA. This family does not qualify.
The IRS levies a penalty of 6% for each year that you do not fix a Roth IRA contribution when you aren't eligible to make one. In order to fix this issue, you must take out the money and pay taxes on the growth. If you didn't remedy it by the filing date of the year in question, you are subject to the 6% penalty as well. Each year you don't fix the issue costs you another 6%. For example: If you put $1,000 into your Roth IRA and didn't fix it you would owe $60. If you didn't fix it the next year you pay another $60 and that penalty continues for up to 6 years. You also need to pay taxes on the growth because you would have been subject to tax on the gains realized if you had invested in a taxable account.
If you need help with this issue or any other financial planning needs, feel free to contact Red Barn Financial at 615-619-6919 or email Sean Moran as smoran@redbarnfinancial.com. You can also learn more about Red Barn Financial at www.redbarnfinancial.com
Disclaimer: The information contained in this podcast is for informational purposes only. It is not tax, legal or financial advice. Information is considered accurate at the time of recording, but any changes in tax or financial law may impact the content. It is the listener's responsibility to make sure they understand and agree with the information or reach out to a financial or tax advisor to understand their situation.
roth ira, retirement planning, financial advisor
Too Many People just start investing in stocks, mutual funds, ETFs and bonds without a plan in place for what that truly means.
They don't think of the order in which they need to organize their financial life and this lack of planning will result in unintended consequences.
The first thing you need to do is look at your protection needs. First and foremost if you have a family you need to protect them in the event something were to happen to you. You need to make sure you have life insurance, you have the right considerations in your will and you are confident that you have the right protections of your assets such as car insurance and homeowners. Pay for what you need and don't pay for what you don't need.
Want to know more, find us at www.redbarnfinancial.com
Call us at 615-619-6919 or email Sean at smoran@redbarnfinancial.com
Disclaimer: The information in this podcast is for educational purposes only and is not tax, legal or investment advice. Reach out for answers to specific questions.
Episode 40 - The Current State of Mortgages - An Interview with Daniel Cruz of Music City Mortgage.
In this episode Daniel Cruz shares how he went from Financial Advisor to Mortgage Broker and Housing Consultant. He shares tips and advice on how to make sure you are setting yourself up for success in your home buying plan. Daniel has a passion for connecting and helping people make the best decisions.
Check out Daniel at https://musiccitymtg.com/ and connect with him on LinkedIn at https://www.linkedin.com/in/danielcruzpreferredrate/
Disclaimer: The views expressed by guests of the Red Barn Financial Podcast are their own and may or may not express the opinions of Red Barn Financial. This podcast is for informational purposes only and is not tax, legal or financial advice.
Learn more about Red Barn Financial and Sean Moran at www.redbarnfinancial.com
Ep. 39 - How to Create a Budget You Can Stick To
In this podcast episode we will talk about the importance of creating a budget and how you can use your budget to help improve your financial situation.
Everyone should have a budget. It's a way to look at what you believe you will spend and compare it to what you are actually spending. When you create a budget you are able to see where you are spending more than you expect and where you are not spending as much. You can take the wins and reallocate it to other areas.
If you aren't budgeting on a monthy or at least quarterly basis then your financial planning is not in control.
You also want to make sure that you are putting money away for future goals as a part of your budget. Pay yourself first as if it's a bill.
Getting your financial lifestyle under control will reduce stress and help you acheive goals.
If you need help, reach out to us at www.redbarnfinancial.com email smoran@redbarnfinancial.com or call us at 615-619-6919
Disclaimer: The information contained in this podcast is not tax, legal or financial advice. Consult a financial advisor like Red Barn Financial for questions and strategies that apply to your situation.
Ep 38 - Are You Costing Yourself Money by Doing This?
This Poor Investing Strategy Will Leave You with Less Money. Timing the market is usually going to leave you with less money than staying the course and investing in a diversified portfolio.
If you decide to try to time the market you will surely miss out on major gains. You might miss some downturns, but the chances are you will end up with less money. Learn how this happens to so many people in this episode of the Red Barn Financial Podcast.
Ep. 37 This Could Happen To You if You Don't Update Your Beneficiaries
It is important that you update your beneficiaries at least every other year, but definitely when a life change happens. If you don't do this it could leave unintended consequences should something happen to you.
I give several real life examples of situations I have seen and I'll give you another one. When I was single I put my youngest sister who is 8 years younger as my beneficiary for my 401(k). When I got married I made sure I changed the beneficiary to my wife, but if I hadn't and something happened to me, then my sister would have received that sum. It can be an unintended result and it can be costly to fix, especially if one party isn't interested in working with the other to resolve it.
Disclaimer: The information in this podcast is for general knowledge and is not tax, legal or financial advice. Please consult a financial advisor before making any major financial decision.
If you would like a consultation with us, please reach out at 615-619-6919 or email smoran@redbarnfinancial.com. To learn more about our company please visit www.redbarnfinancial.com
Ep. 36 Pension vs 401k - Which is More Valuable?
In this episode of the Red Barn Financial Podcast I will compare and contrast a pension and 401(k) plan.
At their basic level a 401(k) is a stack of money and a pension is a guaranteed paycheck. Which would you prefer $200,000 in cash or $1,000 per month for the rest of your life? Assuming you were going to spend the $1,000 per month and you were going to earn 5% on your $200,000. After 24 years your $200,000 would be down to $0. Your pension would keep on paying and likely it would also have a built in cost of living adjustment. In this scenario the pension would be the better choice.
In contrast, if you took the $200,000 and you died 2 years later your family would have about $190,000 in cash left, whereas a pension that pays you for life you would have nothing to give to your family. Is there a third solution that can do both? There are some strategies that can. Reach out and I'll be happy to share them with you whether you want to work with me or not.
To learn more about Red Barn Financial visit us at www.redbarnfinancial.com call 615-619-6919 or email smoran@redbarnfinancial.com
What can happen if you don't keep your beneficiaries up to date?
In this episode I explore two different scenarios of many possiblities that can happen if you don't keep your beneficiaries up to date and you don't have a will.
We will talk about what happens if a person inherits property but doesn't put it in their name or what could happen to someone who dies with their parent and they were supposed to be a beneficiary of their parent's estate.
Disclaimer: The information in this podcast is not meant to be tax, legal or investment advice. Everyone's situation is different. The purpose here is for you to consider your situation and get the advice and support you need so that unwanted consequences don't happen if something happens to you unexpectedly.
If you would like to discuss your situation as it applies to this topic or any financial planning topic, please reach out to us at smoran@redbarnfinancial.com or call 615-619-6919.
For more information on Red Barn Financial please visit www.redbarnfinancial.com
I received a question from a client who I helped file their tax return. They got an email saying that their payment confirmation was on One Drive and they could view it.
Here is the IRS' official position on their communication with taxpayers: "The IRS does not use email, text messages or social media to discuss tax debts or refunds with taxpayers."
You can learn more here: https://bit.ly/3KTOOBA
Red Barn Financial is a financial advisory firm that serves clients in the Nashville Metro area locally as well as clients throughout the country virtually. To learn more about Red Barn Financial visit www.redbarnfinancial.com or contact us at 615-619-6919
Disclaimer: Information provided on this podcast is not tax, legal or investment advice.
Ep. 34 Do This before filing an income tax extension
Can you file a tax extension if you owe money? Learn more in this episode on how you can avoid gettting charged penalties and interest and how you should meet the IRS requirements of an extension.
Need more help? Contact us at smoran@redbarnfinancial.com call us at 615-619-6919 or learn more at www.redbarnfinancial.com
Disclamer: The contents of this podcast is not tax, legal or investment advice.
If the IRS is auditing you or you have a tax liability you can't pay right away, don't make these common mistakes that can cost you dearly.
You need to file your tax return on time, especially if you owe money. If you don't owe money then the deadline isn't all that important in the short run. The reason why it's so important to file on time is to get your money back right away or to avoid penalties and interest that can end up costing you more than the original tax liability if you ignore it.
Following some of these ideas might help keep more money in your pocket and solve your tax problems once and for all. The worst thing you can do is ignore the IRS and the best thing you can do is give them just the information that they need to verify your income and expenses.
Ep. 32 - Is This What Social Security Was Meant To Do?
The other day on Reddit someone commented that Social Security is meant to provide you with a full retirement. I had to laugh. Social Security was meant to be a suppliment to your retirement savings. Back in 1935 when Franklin D. Roosavelt passed it into law most people had work pensions and most people were expected to save for retirement. Social Security was designed as a safety net to keep people out of poverty, not to be their retirement plan.
In this episode we explore statistics on how many people are contributing to social security for each person collecting it as well as the fact that it's current workers that are funding the social security of those receiving it currently.
Check out this episode in full to learn more and what it means to you.
Want help with your retirement planning? Contact Red Barn Financial at www.redbarnfinancial.com, call 615-619-6919 or email smoran@redbarnfinancial.com
Ep. 31 - Starting Your Dream Business with Ashley Smith
In this podcast episode I interview Ashley Smith owner of Ashley Anita Photography.
Ashley shares her journey so far and how she is turning her passion into a business. Her unique take on photography and why she believes it's important for people to print their photography.
She makes a great art out of what she does.
To learn more or contact Ashley you can find her here:
615-947-4122
instagram.com/ashleyanitaphotography
https://www.facebook.com/profile.php?id=100083166550329
email: contact@ashleyanitaphotography.com
Should You Live Like Chad "Ochocinco" Johnson?
In a recent interview, Chad shared how he saved all of the money he made playing football and the reasons why he avoided a life of excess. He explained that he lived at the Cincinnatti Bengals facility for the first 2 years of his career, wore fake jewelry and lived a modest life.
What are you doing to live within your means and create a life of stability for yourself? The rich aren't rich because they make a lot of money, they are rich because they keep it.
I talk through a bunch of things that Chad Ochocinco Johnson did and what he continues to do to be financially responsible.
If you want to hear his full interview with Shannon Sharpe - seach for it on your favorite podcast platform.
If you need help to get you where you want to be financially, feel free to reach out to Red Barn Financial at www.redbarnfinancial.com, by calling 615-619-6919 or by emailing Sean Moran at smoran@redbarnfinancial.com
Episode 29 of the Red Barn Financial Podcast - Don't be a Retirement Statistic - What You Need to Do to Prepare
Did you know that 51% of US households are at risk of not being able to maintain their current income in retirement? The average household retirement savings is under $100,000 and only 55% of households ages 55-64 have a retirement savings account?
These are dangerous statistics and they could mean you leave yourself and your family in a state of poverty, or at a minimum in a position where you can't live the retirement life you were planning?
Be encouraged as there is hope as long as you start planning. You are more likely to find success when working with a financial advisor than trying to do it on your own, but please get started as soon as possible.
If you need help, please email us at smoran@redbarnfinancial or call 615-619-6919 You can learn more about Red Barn Financial and whether we are a good fit to be your financial advisor at www.redbarnfinancial.com
Did you know that 70% of wealth is lost by the second generation and 90% is lot by the third? In this episode of the Red Barn Financial Podcast, I dig into reasons why that may be the case.
Generational wealth is wealth that is handed down from one generation to the next and it is often squandered. We will talk about this today and I invite you to share your thoughts and perspective on the topic.
Proverbs 13:22 is the reference to leaving wealth to your grandchildren. The parable of the Prodigal Son in Luke 15:11-32.
Disclaimer: Information in this podcast is for educational and informational purposes only and is not tax, legal or investment advice.
If you would like to speak with a financial advisor, please reach out to us at www.redbarnfinancial.com or call 615-619-6919
How much can you contribute to your IRA in 2023.
It's important to know that you can contribute to an IRA or Roth IRA even if you have a work plan such as a 401(k) or 403(b).
For the general popluation you can contribute to an IRA and/or Roth IRA in any combination up to a maximum total value of $6,500 for 2023. If you are age 50 by December 31 of the year you can save an additional contribution of $1,000 for a total of $7,500.
There are some income restrictions as to whether your IRA will be tax deductible and if your income is above a certain amount you are not permitted to contribute directly to a Roth IRA. This is when a backdoor Roth could make sense for some.
Listen to the podcast for the specifics on the IRA and feel free to reach out to Red Barn Financial if you have any specific questions. You can find all of our contact information at www.redbarnfinancial.com
Disclaimer: the information in this podcast is for general education purposes only and is not tax, legal or investment advice. Please speak with a licensed financial advisor who can evaluate your specific situation before making any financial decision.
Ep 26. How Taxes Can Impact Your Retirement Planning
In this episode we discuss how considering your tax bracket can impact your financial planning and help you minimize taxes going into retirement starting now.
In the example I share, I talk about a married couple with income of $400,000 and tax deductions of $30,000. With a taxable income of $370,000 they are in the 32% marginal tax bracket, but their effective tax rate is just over 20%. You can see that in the below example.
2023 Federal Income Tax Brackets Tax Rate Married Filing Joint Income Tax Effective Rate 10% $0 to $22,000 $ 22,000 $ 2,200 12% $22,000 to $89,450 $ 67,450 $ 8,094 22% $89,450 to $190,750 $ 101,300 $ 22,286 24% $190,750 to $364,200 $ 173,450 $ 41,628 32% $364,200 to $462,500 $ 5,800 $ 1,856 35% $462,500 to $693,750 $ - $ - 37% $693,750 or more $ - $ - Totals $ 370,000 $ 76,064 20.6% Disclaimer: This podcast is for information purposes only and does not constitute tax, legal or investment advice. Consult a financial advisor with your questions.
If you would like to learn more about Red Barn Financial or learn how we can help you, please visit www.redbarnfinancial.com
Episode 25 Are you funding your 401k the right way?
Often times people will think they are maxing out their 401(k) when they are really just putting in the amount needed to get your company match. Other times people will put in the full IRS maximum ($22,500 in 2023) but they are not getting a match after a certain amount, so that additional contribution - while good - may not be as efficient as contributing to an IRA or Roth IRA once you have hit the most your company will match.
In other words if you plan on contributing $15,000 to retirement accounts but your company only matches the first $6,000 it likely makes sense to contribute the next $6,000 of your money to an IRA or Roth IRA so you have more control over your investments. Then you can go back and put the last $3,000 into your company plan again.
Disclaimer - Information provided in this podcast is not tax, legal or investment advice. Every person's circumstances are different. If you would like to discuss your personal circumstances, feel free to reach out to Red Barn Financial.
Ep. 24 - Before You File Your Tax Return - Do This
It's important to look at your prior year tax returns as well as look at 2022 so you can see how each year compares. Each tax return tells a story of your life situation explaining what happened to you in that year financially as well as what things looked like in the past and gives you an opportunity to look at what future years might look like.
We should look at our tax returns like a report card. Did it reflect what we wanted and if now, how do we make the future look the way we want. Also, does the return tell the story we expect it to.
Disclaimer - The information provided is for educational purposes only and does not constitute tax, legal or investment advice. Please contact Red Barn Financial if you would like us to help you with your financial planning. Contact 615-619-6919 or email smoran@redbarnfinancial.com You can learn more about us at www.redbarnfinancial.com
In this week's podcast we return for 2023 with a lot to share. We will start off with the latest legislative news and that is the SECURE Act 2.0 where Congress made it so that we can save more for retirement. Here are some of the provisions in this new law.
Auto Enrollment and Portability
This legislation requires new 401(k) plans (as well as 401(b) plans) to automatically enroll employees in the company plan and start them off at a 3% contribution rate. This means that you will not have to opt in, but rather your retirement savings would start right away. This provision would take effect in 2025. It would also make it so that if you have a small balance in your account when you change jobs to have the custodian manage it for you. This makes it easier for you and less tempting to cash out.
Student Loan Retirement Match
So many people who have significant student loans aren't able to save for retirement early on, because their debt is too high. Before this law was passed if you chose not to make contributions to your company plan because you couldn't afford it, you didn't get a company match because you didn't contribute anything for them to match.
SECURE Act 2.0 allows companies to make a "matching contribution" to your retirement plan commensurate with your payments of your student loans. For example, if your company matches 50 cents on the dollar for contributions to your 401(k), now for every dollar you pay on your student loans would allow your company to put 50 cents into your retirement account.
529 Convertibility
In the past if you didn't use up all the money in your 529 college savings plan you had to contribute that to another person for them to use. So, if you had one child and they didn't go to college they wouldn't get to use the money you set aside. Now that will no longer be the case. Under the SECURE Act 2.0 up to $35,000 can be contributed to a Roth IRA subject to the maximum annual contribution and is treated as a contribution to the Roth IRA.
RMDs
Required Minimum Distributions are amounts that retirees need to take out of their retirement accounts so that the IRS can tax the money that they have waited years, even decades to tax while it was sitting in your IRA, 401(k) or another plan. Prior to the SECURE Act of 2020 the age where you had to start taking withdrawals whether you wanted to or not was 70.5. When the 2020 law took place that moved the age up to 72 and in SECURE Act 2.0 it gradually moves the age up to 75.
- Born in 1950 or earlier: RMD begins at age 72
- Born between 1951-1959: RMD begins at age 73
- Born in 1960 or later: RMD begins at age 75
Also starting in 2024 RMDs will not be required for Roth accounts any longer.
Qualified Charitable Distributions (QCDs)
A QCD is a distribution from your IRA to a charity whereby you can meet your RMD requirement, but not pay taxes on the amount donated. For example, if you were to give $100,000 of your RMD to a qualified charity, you would not have to pay taxes on that money. This could save you a significant amount of income tax, because if you were to take the RMD into your own bank account you would owe income tax on that amount. Assume you were in the 22% tax bracket that means you save $22,000 by doing a QCD instead of taking the money into your own hands.
Starting in 2023 the $100,000 limit for QCDs will be indexed to inflation, so the amount you can give will go up every year. While this isn't something everyone worries about, it's great for those who do.
Increase in Catch Up Contributions
You may be aware that once you are age 50 you can add additional funds to your 401(k) or IRA accounts so that you can save more money and "catch up" for lost time by saving more when likely you are earning more.
Starting on January 1, 2025 if you are 60 through 63 you can make a catch-up contribution up to $10,000 to your workplace plan. The current law for 2023 is $7,500 into those accounts. The one caveat is that if you make more than $145,000 in the year prior, your catch-up contributions will need to be made to a Roth account as opposed to a traditional account. Hopefully this will prompt more companies to offer Roth accounts.
For IRAs, you can currently make a $1,000 catch up contribution if you are age 50 or over, but in 2024 that will be indexed to inflation, so it will likely go up every year.
Roth Matching
Going forward employers will be able to make matching contributions to Roth accounts. In prior years you could only get a matching contribution on contributions to a traditional plan. The funds that are matched would be taxable, but future growth would be tax free.
Disclaimer - All content provided here is for informational purposes only and should not be considered tax, legal or financial advice. Everyone's situation is different, so if you would like to speak about your particular situation please contact us at www.redbarnfinancial.com at smoran@redbarnfinancial.com or by calling 615-619-6919
In this episode I talk about the year 2022 in review as well as what 2023 might look like from an economic perspective. Later this week I'll post an update to this episode to talk about some new information to add to what you are getting here.
Learn more at Red Barn Financial at www.redbarnfinancial.com
What are your 2023 financial goals?
Disclaimer - Information provided on this podcast is not tax, legal or financial advice. Everyone's financial situation is different. Please consult a financial advisor prior to making any decision that will impact your financial future.
Barter Is Better - An Interview with Ed Fox
Edward Fox is a serial entrepreneur who started his own businesses when he was a little boy and has grown many successful companies over the years. Ed talks about the value of barter and his business TradeBank that allows you to sell excess inventory and services on their platform and exchange your value for something you need. It can help you grow your business and opens doors to helping others along the way.
Learn from Ed and the things he has done as he shares his story of success as an owner of many businesses and why he believes barter is a key to business growth.
If you want to learn more about Tradebank check out https://nashville.tradebank.com/
The opinions shared are those each individual. The information shared on the Red Barn Financial Podcast is for entertainment and informational purposes only. Nothing provided herein should be considered tax, legal or financial advice. If you would like to connect with a financial advisor contact Sean Moran at smoran@redbarnfinancial.com or call 615-619-6919. Learn more about Red Barn Financial at www.redbarnfinancial.com
When planning out your retirement spending it's important to make sure your money will last as long as you do. That means you want to make sure your money lasts longer than you will.
One of the ways to do this is to put your money into several buckets. The first is your cash bucket. This is 2 years of living expenses so that if the market goes down you don't have to be drawing from your investments in a time that they are going down. For example, if you need $100,000 in a given year and you take that from a $1million portfolio you are drawing 10%, but if that portfolio goes down to $500,000 in a down market the same $100k is now 20% of your money and it will be difficult to build that back. In times when the market goes up, you can replenish your cash bucket and your interim bucket.
You will likely want your cash bucket to be the money you absolutely need to live on for the next 2 years, then a fixed income bucket with bonds, CDs and/or annuities that have downside protection to be in the middle bucket. It is money that will earn more than the cash accounts, but will still be relatively safe. This can also be money that is your "fun money" and if you need to cut back on a vacation or skip a splurge purchase or put off a car purchase for example, you can do that if the market looks like it will take longer to recover. Finally you have your equity bucket which is more risky and should have your 5+ year investments. This way if the market goes up significantly, you can take some of the earnings, but if the market goes down you can put more money in there as opposed to having your money you need to live now at a fraction of what it was before.
In this episode I talk about Dividend Reinvestment Plans or DRIP plans and how they can benefit you. We walk through two examples of how you can grow your investment by reinvesting the dividends you get from your stock holdings back into the stock. For illustration purposes we assumed the stock price and the dividend amount stays the same so that we can easily show how the dividend grows your number of shares and in turn more dividend dollars coming your way. We used Verizon and Apple as two stocks that have a different result when it comes to using the DRIP strategy, with Verizon producing a more significant impact that Apple would for this strategy. That doesn't mean that one or the other stock is better or worse, just different depending on whether you want to implement a DRIP strategy.
Here are the numbers:
| Verizon | | Price | Shares | Value | Div/Share | Total Div | Additional Shares | | $ 38.58 | 100 | $ 3,858 | 0.65 | 65 | 1.68 | 2-Feb | | $ 38.58 | 101.68 | $ 3,923 | 0.65 | 66.09513 | 1.71 | 2-May | | $ 38.58 | 103.40 | $ 3,989 | 0.65 | 67.2087 | 1.74 | 2-Aug | | $ 38.58 | 105.14 | $ 4,056 | 0.65 | 68.34104 | 1.77 | 2-Nov | | $ 38.58 | 106.91 | $ 4,125 | 0.65 | 69.49246 | 1.80 | 2-Feb | | $ 38.58 | 108.71 | $ 4,194 | 0.65 | 70.66328 | 1.83 | 2-May | | $ 38.58 | 110.54 | $ 4,265 | 0.65 | 71.85382 | 1.86 | 2-Aug | | $ 38.58 | 112.41 | $ 4,337 | 0.65 | 73.06442 | 1.89 | 2-Nov | | $ 38.58 | 114.30 | $ 4,410 | 0.65 | 74.29542 | 1.93 | 2-Feb | | $ 38.58 | 116.23 | $ 4,484 | 0.65 | 75.54716 | 1.96 | 2-May | | $ 38.58 | 118.18 | $ 4,560 | 0.65 | 76.81998 | 1.99 | 2-Aug | | $ 38.58 | 120.18 | $ 4,636 | 0.65 | 78.11425 | 2.02 | 2-Nov | | $ 38.58 | 122.20 | $ 4,714 | 0.65 | 79.43033 | 2.06 | 2-Feb | | $ 38.58 | 124.26 | $ 4,794 | 0.65 | 80.76858 | 2.09 | 2-May | | $ 38.58 | 126.35 | $ 4,875 | 0.65 | 82.12938 | 2.13 | 2-Aug | | $ 38.58 | 128.48 | $ 4,957 | 0.65 | 83.5131 | 2.16 | 2-Nov | | $ 38.58 | 130.65 | $ 5,040 | 0.65 | 84.92014 | 2.20 | 2-Feb | | $ 38.58 | 132.85 | $ 5,125 | 0.65 | 86.35089 | 2.24 | 2-May | | $ 38.58 | 135.09 | $ 5,212 | 0.65 | 87.80574 | 2.28 | 2-Aug | | $ 38.58 | 137.36 | $ 5,299 | 0.65 | 89.2851 | 2.31 | 2-Nov |
Here is the Apple Numbers:
| Apple | | Price | Shares | Value | Div/Share | Total Div | Additional Shares | | $ 148.03 | 100 | $ 14,803 | 0.23 | 23 | 0.16 | 2-Feb | | $ 148.03 | 100.16 | $ 14,826 | 0.23 | 23.03574 | 0.16 | 2-May | | $ 148.03 | 100.31 | $ 14,849 | 0.23 | 23.07153 | 0.16 | 2-Aug | | $ 148.03 | 100.47 | $ 14,872 | 0.23 | 23.10737 | 0.16 | 2-Nov | | $ 148.03 | 100.62 | $ 14,895 | 0.23 | 23.14328 | 0.16 | 2-Feb | | $ 148.03 | 100.78 | $ 14,918 | 0.23 | 23.17924 | 0.16 | 2-May | | $ 148.03 | 100.94 | $ 14,942 | 0.23 | 23.21525 | 0.16 | 2-Aug | | $ 148.03 | 101.09 | $ 14,965 | 0.23 | 23.25132 | 0.16 | 2-Nov | | $ 148.03 | 101.25 | $ 14,988 | 0.23 | 23.28745 | 0.16 | 2-Feb | | $ 148.03 | 101.41 | $ 15,011 | 0.23 | 23.32363 | 0.16 | 2-May | | $ 148.03 | 101.56 | $ 15,035 | 0.23 | 23.35987 | 0.16 | 2-Aug | | $ 148.03 | 101.72 | $ 15,058 | 0.23 | 23.39616 | 0.16 | 2-Nov | | $ 148.03 | 101.88 | $ 15,081 | 0.23 | 23.43252 | 0.16 | 2-Feb | | $ 148.03 | 102.04 | $ 15,105 | 0.23 | 23.46892 | 0.16 | 2-May | | $ 148.03 | 102.20 | $ 15,128 | 0.23 | 23.50539 | 0.16 | 2-Aug | | $ 148.03 | 102.36 | $ 15,152 | 0.23 | 23.54191 | 0.16 | 2-Nov | | $ 148.03 | 102.52 | $ 15,175 | 0.23 | 23.57849 | 0.16 | 2-Feb | | $ 148.03 | 102.67 | $ 15,199 | 0.23 | 23.61512 | 0.16 | 2-May | | $ 148.03 | 102.83 | $ 15,223 | 0.23 | 23.65181 | 0.16 | 2-Aug | | $ 148.03 | 102.99 | $ 15,246 | 0.23 | 23.68856 | 0.16 | 2-Nov |
Disclaimer - These companies are used for example purposes only. Results may vary depending on stock price, dividend changes and market conditions. The Red Barn Financial Podcast is for informational purposes only and should not be considered legal, tax or financial advice.
Too many people look at their taxes in the new year and they ask "What can I do to lower my taxes". By that time it's often too late. Instead plan ahead and be sure you have yourself set up for success before the year is out.
You can do the following things and more to make sure you optimize your tax situation.
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Update Your Withholding on your paycheck. Get more today so you don't give the IRS a large interest free loan
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Prepay Your bills if you are a cash basis taxpayer. You may want to pay medical expenses, property taxes or even tuition to get a tax deduction
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Use tax loss harvesting techniques and maybe even harvest some gains. You can net capital gains and losses to potentially save yourself some taxes.
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Contribute more to your retirement plan - Whether it's your company 401(k), a SEP IRA or traditional IRA or maybe even a Solo 401(k) make sure you take advantage of the options available to you. In many cases you have until April 15 of the following year to do this, but not with a company plan, so get those in before year end.
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If you have a small business or side hustle, make sure you are taking full advantage of tax deductions available to you.
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Giving to Charity - whether it's cash or household items or even real property, you can save money and make a solid impact. Check out epidode 14 for more on this.
In this episode of the Red Barn Financial Podcast I have the pleasure of interviewing Melanie Harper and Tabitha King - the Founders of Authority Title and Escrow. Melanie and Tabitha detail their experience on the journey to create their company and being business owners. They explain how important it is to have the right team in your corner making sure your title is free of encumberances and making your closing smooth and easy.
They give examples of things that can go wrong if you don't have a diligent team and the nightmares that others have seen. They also talk about the importance of building your business credit and how they have made sure their clients avoided some of the issues that others have experienced.
If you would like to connect with Melanie or Tabitha for your property closing or want to learn more about their business you can find them at https://www.authorityclosings.com Authority Title and Escrow has offices in Murfreesboro and Nashville. You can call them at 615-819-5880 or follow them on Social Media on Instagram at https://www.instagram.com/authoritytitleandescrow/ or on Facebook
In this episode I share what Red Barn Financial is all about. Why I created Red Barn Financial and where the name came from. I share Proverbs 3:9-10 which is the foundational verse upon which the firm was established and it's the promise that was given to me to share with others in my financial practice.
Proverbs 3:9-10 (NIV) says: 9 Honor the Lord with your wealth, with the firstfruits of all your crops; 10 then your barns will be filled to overflowing,
and your vats will brim over with new wine.
In this verse, God makes a promise to us that if we honor Him, then He will provide us with more than we could ever give to Him. We do this as a way to show that we love Him and we love His people.
Learn more about Red Barn Financial on our website at www.redbarnfinancial.com
In this episode of the Red Barn Financial Podcast I explore the alternatives to investing in your 401(k) or other work plan. While your 401(k) plan is a great investment option when the company offers you a match, it may not be the best place to invest money that isn't being matched.
There are two reasons why you may want to invest money that isn't matched in your company plan outside the company plan:
1. It's quite likely that your company plan fees and investment options are costly. For example if you are paying 2% in fees, that means your investments need to go up 10% for you to net 8%. What are you getting for those fees?
- You are limited to what the company chose as investment options for you. If they picked 10 funds, you can't invest in individual stocks, other ETFs or mutual funds that you like and might be less costly for the same investment.
I share some alternatives like investing in a Roth IRA or other deferred compensation plan as well as looking at a brokerage account as another place that you can store up as much money as you choose to save. Then there are life insurance products and if you own a business you can choose a deferred compensaiton plan.
Ep 14. Give more money to your loved ones and less to the IRS
With the stock market down year to date you can take advantage of the opportunity to move assets in kind from your IRA or old 401(k) at a lower price, pay lower taxes now and allow that money to grow for your family to inherit later on.
In this podcast episode we use the example of Joe who is 80 years old and wants to leave his IRA to his children. By converting his stock from his IRA to a taxable account, any growth will get a step up in basis and his children can save a lot of money when they receive it. If you are a visual person, check it out on Red Barn Financial TV on YouTube here: https://youtu.be/pw9s7pYTN2g
In this episode of the Red Barn Financial Podcast I interview Jonathan Melton. Jon Melton is an insurance agent with HQ Insurance, a property and casualty insurance company in Nashville, TN.
Jon brings a wealth of knowledge when it comes to personal as well as business insurance and he explains the importance of making sure that you are covered for things that could happen that a typical general liability policy may not cover. Be sure to stay to the end where we play "Covered or Not Covered" a fun game where Jon asks whether a particular situation would be covered by a standard insurance policy and if not, what you need to make sure your policy has to cover something that could in fact happen.
If you aren't sure, by all means, reach out to Jon at:
Direct: (615) 884-3535 or jonathan@hqinsurance.com
You can learn more about his at the HQ Insurance website here: https://www.hqinsurance.com/about-us/
Learn more about Red Barn Financial at www.redbarnfinancial.com
Interest rates are rising, but are you benefitting from the increases? In this episode of the Red Barn Financial Podcast we talk about high interest checking accounts, savings accounts, CD rates as well as Multi Year Guaranteed Annuities (MYGA). If you aren't getting a higher rate with your bank, it may be time to change.
Disclaimer: This podcast is not legal, financial or tax advice.
Many people I have spoken with think it's up to them to decide if someone doing work for them is an independent contractor or an employee. That is not the case. The IRS created a set of criteria to determine if someone is an employee or an independent contractor. Some of the criteria are strong indicators one way or the other while others may have some gray area, but taken together if your relationship with a company leans one way or the other, the IRS will make the determination for you. If you get it wrong, it can cost you!.
In this episode of the Red Barn Financial Podcast, Sean goes over the 20 factors that are used to determine an empolyee/contractor relationship so you can more easily categorize the business relationships properly and avoid additional taxes and penalties for getting it wrong.
If there are a few you want to hear about, we have bookmarked the time codes for easy reference: They are labeled by number, time stamp and description.
- 2:25 – Level of Instruction Required
- 3:24 – Amount of Training Required
- Degree of business integration
- 4:02 – Personal Services Required
- 4:33 – Control of Assistants
- 5:34 – Continuity of Relationship
- 6:41 – Flexibility of Schedule
- 7:42 – Demands for Full Time Hours
- 8:35 – Need to work on premises
- Control of Sequence of work
- 9:55 – Requirements for Reports/Reporting
- 10:18 – Method of Payment
- 11:10 – Travel and Expenses
- 11:49 - Who Provides Tools and Materials
- 12:22 – Investment in Facilities
- 13:25 – Realization of Profit or Loss
- 14:24 – Ability to Work for Others
- 15:20 – Availability of Services to the Public
- 16:01 – Control of Discharge
- 16:59 - Right of Termination of Relationship
Disclaimer: This podcast is not tax, legal or investment advice. Please contact the appropriate advisor for help in your situation.
If you would like to engage Red Barn Financial, please contact us at 615-619-6919 or visit us on the web at www.redbarnfinancial.com
We are 10 Episodes into the Red Barn Financial Podcast and I'm having a lot of fun. I look forward to interviewing more guests and sharing financial tips with you.
Here are a few things I mentioned in this episode:
YouTube: https://www.youtube.com/c/redbarnfinancialtv
Podcast episode about Charitable Giving was Episode 4: https://sites.libsyn.com/433728/ep-4
Disclaimer - Information contained in the Red Barn Financial Podcast is for informational and educational purposes only. It is not considered financial advice. Everyone's situation is different so please consult a financial advisor prior to making any decision.
If you would like to learn more about Red Barn Financial please visit www.redbarnfinancial.com or to inquire about working with us contact Sean Moran at smoran@redbarnfinancial.com
Ep. 9 Top 4 Misconceptions about Life Insurance
In this episode of the Red Barn Financial Podcast I talk about the most common misconceptions about life insurance.
In this episode of the Red Barn Financial Podcast I interview Michael Morrow of Financially Better Credit Services. Michael shares the importance of a strong credit score, building an emergency fund and how his faith plays a role in all that he does.
If you are looking for credit restoration, definitely reach out to Michael. You can find all of his contact information here: https://linktr.ee/Financial3d
In this episode I share the types of life insurance and give you some suggestions on how to pick the right one for you.
Generally speaking there are two types: Term life which lasts for a particular term of time, for example 20 years and then you usually let it expire or whole life which has a few nuinaces where if you pay for a particular period of time, or your entire life then no matter when you die you will have the policy available to you. There are 3 general types of whole life and they are known as whole, universal and variable life.
Learn more in this podcast. If you want to know more about whole life, check out episode 8 which will go more in depth on it.
Special Alert - Avoid This Scam
In this episode I share with you a new scam that is going around to try to get access to your bank account. Be sure to be vigilant and make sure that family and friends know about this, especially senior citizens who are more vulnerable to this type of attack.
Disclaimer: Information in this podcast is for informational purposes only and cannot be relied upon as financial advice. Everyone's financial situation is different and not all investments and financial planning strategies are applicable to all people. Consult your financial advisor for how information you learn may apply to your situation.
Red Barn Financial Podcast Ep. 5 This is the Life Insurance You Really Need To learn more about Red Barn Financial check out www.redbarnfinancial.com If you need our help, don't hesitate to reach out and schedule time with us.
Disclaimer: Information in this podcast is for informational purposes only and cannot be relied upon as financial advice. Everyone's financial situation is different and not all investments and financial planning strategies are applicable to all people. Consult your financial advisor for how information you learn may apply to your situation.
Red Barn Financial Podcast Ep. 4 Ways to make Charitable Giving more efficient and money saving! To learn more about Red Barn Financial check out www.redbarnfinancial.com If you need our help, don't hesitate to reach out and schedule time with us.
Disclaimer: Information in this podcast is for informational purposes only and cannot be relied upon as financial advice. Everyone's financial situation is different and not all investments and financial planning strategies are applicable to all people. Consult your financial advisor for how information you learn may apply to your situation.
Transcript
Do you have a favorite charity you like giving to? Well, what if there was a way you can be more efficient with your giving, make a bigger impact and save yourself some money? This is Sean Moran with the Red Barn Financial podcast. I'm a financial advisor in Middle Tennessee, and I help my clients both here locally, as well as throughout the U.S. virtually. So today we're going to talk about giving the charity and how you might be able to do that in a more efficient way as I mentioned before. So generally, what we do when we want give to charity we write a check or we put money in an envelope or whatever. We give money to a church or we send money into the Red Cross or whatever our favorite charity is. When we do that, we get a tax deduction. So, if you were to donate $1000 and you're in the 22 percent tax bracket, you're going to get a tax deduction of 22%. Now, that is only if you itemize your deductions. Now in 2020, they allowed you to deduct a small amount if you didn't itemized. But generally, it's only if you itemize. So, if you're not itemizing, then you're really not getting the benefit of the tax deduction. And so, if you're giving $1,000 in a cost you $1,000, it's much more difficult to get than to give $1000 and it's really costing you, a little under $800. So, we want to do this as efficient as we can, and we want to do this in a way that we're going to help our charity as much as possible. So, there's a number of ways to do this and one of them is called a Donor Advised Fund. We will talk a little bit about that in a minute or so. But let's talk about maximizing the amount that you donate and getting yourself in a situation where you can itemize and use up those deductions.
So, one strategy is called bunching your deductions. And so, the way that works is let's say that you give fifteen thousand dollars a year to charity and your other deductions are about ten thousand dollars. That's $25,000 dollars. You're almost better off just taking the standard deduction because it's about the same amount. But what if instead of saying I'm going to give $15,000 dollars to charity in 2022 and fifteen thousand dollars to charity 2023 - what if I take that whole thirty thousand dollars and I give it in 2022 or you know, say maybe you can't do that. But why don't I forgo giving the fifteen thousand dollars this year and push that into 2023 and then give thirty thousand dollars in 2023?
Well what I'm able to do is take full advantage of my standard deduction and then the following year I'll have thirty thousand dollars of charitable donations as well as another ten thousand dollars of other itemized deductions. Now I'm able to fully itemize and get a benefit that's significantly more than what I would get if I did otherwise. So, bunching your charitable contributions every other year is a better way to go than putting them the same amount each year. Now, you might say to yourself. Okay, well, you know, what happens if I do that I give thirty thousand dollars to charity this year and then they're kind of counting on that and that could happen, right? Especially if the numbers are bigger and you're giving a significant amount of money to charity, they might count on that larger amount or you might just say, for whatever reason that you want to give an even amount every year, there is a way to do that, and that is using a Donor Advised Fund.
So what this is like is a brokerage account or bank account. Now if you're going to use a bank, I'm going to give you a little tip here, some banks will charge a fee, and if the fee that you're getting charged on that account is going to be higher than the interest that you earn. You might want to think twice and try somewhere else. Some banks won't charge a fee, some do so you want to make sure before you set it up, what the fee is understand that and decide whether or not to go forward based on what the fee costs. Now Assume instead you go the brokerage account either one could make sense to you, but let's say you go to brokerage account and you put your thirty thousand dollars that you're going to give over the next couple years into that Donor Advised Fund and then you're going to make investments or leave it in cash your choice. And if you put it in investments and those investments perform, well then the charity is going to get a significant amount more. Now you can put your thirty thousand dollars in my example into that Donor Advised Fund in year 1 - call it 2022 right now and you can take a Deduction for that without even Distributing it to the charity, or to any charity.
At that point, you might be thinking, well, how is that possible? Well, as soon as you transfer it into the Donor Advised Fund, you do not have the ability to take that money out. That is considered a completed gift. And even though the charity of choice, has not been selected yet, you can still take the deduction, then you have the ability to go to that custodian and say, hey, I'd like ten thousand dollars given to this charity $5,000 to that charity. However, you want to do it, you nominate these Charities. And then as long as it's a qualified 501(c) (3), and it's qualified as a charitable contribution, then the Donor Advised Fund custodian will in turn, give that money to the charity of your choice. And so, this is a way that you can potentially balance, both, you're giving in a particular year and giving to the charity at a ratable amount over time. So, you can take a bigger tax deduction because you've completed the gift and you can still give the money to the charity in the way that you want and you saw fit. This can also be done in such a way that helps reduce Required Minimum Distributions (RMDs). If you're in retirement, if that's something you want to hear more about, let me know in the comments. I hope you also take some time to rate this podcast, I'd greatly appreciate that and share with others that might benefit from this. And if you're interested in hearing about this more in depth, how it can help with our RMDs and retirement by all means, let me know. And I'd be happy to talk about that in depth in a future episode. So, thanks so much, we'll talk to you. The next one.
You can contact Red Barn Financial at 615-619-6919 or visit us on the web at www.redbarnfinancial.com
Red Barn Financial Podcast Episode 2 - The Importance of Updating Your Beneficiaries. To learn more about Red Barn Financial check out www.redbarnfinancial.com If you need our help, don't hesitate to reach out and schedule time with us.
Disclaimer: Information in this podcast is for informational purposes only and cannot be relied upon as financial advice. Everyone's financial situation is different and not all investments and financial planning strategies are applicable to all people. Consult your financial advisor for how information you learn may apply to your situation.
Transcript
Have you checked your beneficiary designations? Hey, it’s Sean Moran with the Red Barn Financial podcast. I'm a financial advisor here in Middle Tennessee and on this podcast, we talk about all things financial. So today we're going to talk about the importance of updating your beneficiary designations. What is that? When you set up a 401k when you get an insurance policy and any number of other financial instruments, they're going to ask you who do you want to be a beneficiary? So if something happens to you, who gets that money.
Well, a lot of people think that if you write a Will and you say, hey, my will says that everything goes to my children. Let's say, you think that's the way it's going to go, but as a matter of fact, if you have something different on your designation, then that's what gets followed. So, let's use an example. Let's say John is working for company ABC for about five years, and he's single, and he puts his brother down as his beneficiary because, you know, they're pretty close and there's nobody else and John leaves that company and goes to the second company he is working for and while he's there he meets a woman, gets married, has a family has kids. Let's go ten years or so into the future and John kind of forgets about his old 401(k) from ABC company. Well, when he passes away, you would think that the money in that 401(k) would go through his wife or and/or children, but unfortunately because the beneficiary designation says that it goes to his brother. Well, guess who gets the money? And you're thinking okay, well that's a right. The brother just say no, no, no, I'm good. I know my brother meant to have it go to his family but there's a lot of legal issues involved in that. And so that's why it's so important to do this.
I’ll give you another example, let's say Mike is married and he's got two kids. After certain number of years, he gets divorced, kids grow up, move out on their own, everybody's good. They go and live in their lives and Mike passes and he had a half million dollar life insurance policy. Well, he put the beneficiary as his first wife. The nice part would be if this first wife said yeah, hey, you know, I understand it's not supposed to be me but more likely they say, no, that is supposed to be my money. Now, this is where things can get ugly because there may be a lawsuit that's involved and it's just a matter of a lot of wasted money in a situation like that. All Mike had to do was update the beneficiary while he was alive and everything was going well and everything would have worked out as planned. But there are situations where sometimes people say, hey, here's a life insurance policy, okay? We're getting divorced. You have children, you're raising my children. You want to keep that that policy. I'm good with it and, there's no way that they know that that's not the case. So again, it might have to go to court and maybe something can be done, but if not, there's tax implications to making this right. It can be in either the situations where the person that is set on the beneficiary designation to receive those funds. They can't necessarily just turn around and write a check for that amount to the person that should have gotten the money because that's a gift. And when that happens, you have gift tax consequences associated with that. So an example is, I have a million-dollar life insurance policy that I received and it's really supposed to go to somebody else. If I write them a check for a million dollars, well, I'm allowed to give them a sixteen thousand dollar gift per year (as of 2022) not a million. So that actually goes into my calculation for gift tax, and estate tax. Me as a person just trying to be nice and solve this problem for the other person, I didn't do anything wrong, I have implications because when it comes to estate and gift tax, those taxes are on the giver, not on the recipient. So what you're doing by not doing this is creating situations that can cause some serious issues for the people that you're leaving behind.
It's a good idea once a year or whenever anything changes to go through all of your accounts and look at all the things that you've set up in the past. Make sure your beneficiary designations are still correct, it's really easy. It's a matter of taking, you know, most of them just have a form. Just fill out the form and send it back to the insurance company, 401(k) whatever it is, tell them, here's my updated beneficiary and you're good to go. You don't have to think about it. Again, until something else changes in your life, but this is all too common that this type of thing happens. And I'll give you a slightly different situation that I talked to a client about recently (about a year ago) and this person the situation had come a long before I had heard about it and it was towards its conclusion. But let's just say, grandpa owns a home, he passes away. He leaves the property to his son- we will call him Dad. So, Dad gets Grandpa's home. Well, at that time, the Dad gets that he is has cancer and he's going for treatment and unfortunately over the course of a year- year and a half, it gets worse and Dad passes away. So at that point, mom goes to sell the house. She gets to the closing table is about to sign the paperwork and they tell her; you can't sell this house. She says what are you talking about? Title company said, you don't own this house. They said it's owned by your husband's father (Grandpa) and he passed away. And so when that happens, the property would have to go to his (Grandpa’s) next relative and that would be your daughter, not you. She said, well, you know, he gave it to me, give it to my husband. They said, yeah, but your husband never retitled the home in his name. So therefore, it's still in Grandpa's name and Grandpa's only living descendant is your daughter. So she's the owner of the home. So again, they had to go through expending money to work with a lawyer, go to court, go to probate and solve this issue. I'm not saying these things can't be solved, but they take a lot longer period of time. This person lost out on the sale of the home, as a result of the situation. There are headaches and there's costs involved in not getting this done properly.
So, if you inherited property, make sure that it you put it into your name properly and if you are the person that owns the property, make sure that all your beneficiary designations, go to the proper person because if they don't, you could be creating a situation where you're giving money to somebody that you really may not even want to have the money. Somebody might have a really bad relationship with their ex-spouse, or maybe they were dating somebody, they thought it was going to go well, and they put the person they were dating as their beneficiary. The bad relationship comes to an end years later. They forget about it, get married. Now an old ex-girlfriend is getting your money instead of your family. So this is how important this is.
If you're confused as to what to do to, get this situation solved, talk to your financial advisor. If you don't have one and you're looking for an advisor, we are accepting clients. I'd be happy to have a conversation with you. I'd love to help you with this, whether you engage us long-term or not.
Thank you for listening to this episode of The Red Barn. Financial podcast will see you next episode.
Ep. 3 - The Most Powerful Investment Account You Probably Aren't Using
Welcome to the 3rd episode of the Red Barn Financial Podcast. In this episode we will talk about the account that is so powerful it combines the benefits of an IRA - you get a tax deduction when you put money in - with the benefits of a Roth IRA - you don't pay taxes when you take the money out. This account is called an HSA or Health Savings Account and it can be your additional retirement plan if you qualify.
Disclaimer: Information in this podcast is for informational purposes only and cannot be relied upon as financial advice. Everyone's financial situation is different and not all investments and financial planning strategies are applicable to all people. Consult your financial advisor for how information you learn may apply to your situation.
Learn more about Red Barn Financial at www.redbarnfinancial.com
Transcript:
This is the first episode of the Red Barn Financial podcast.
We talk about the most recent legislative updates. One this week was the Student Loan Forgiveness program that was signed by executive order this week. Last week we saw the Inflation Reduction Act (IRA) which is designed to promote green initiatives as well as reduce inflation over the next 10 years.
Full Transcript of this podcast below.
Disclaimer: Information in this podcast is for informational purposes only and cannot be relied upon as financial advice. Everyone's financial situation is different and not all investments and financial planning strategies are applicable to all people. Consult your financial advisor for how information you learn may apply to your situation.
Learn more about Red Barn Financial at www.redbarnfinancial.com
5:19 PM Transcript Hi, this is Sean Moran, and this is the Red Barn Financial podcast. This is our first episode and my thought was, I'll just get it started and then we'll make tweaks along the way and make it even better. On this podcast we will talk about all things financial related and share things on saving money through setting up emergency funds to more advanced topics on how to save taxes. and how to properly structure your finances to meet your financial goals. So that's the goal of this podcast and it's going to over time develop and get even better. We'll probably bring on some guests as well so we'll be able to do that. But today I'll just kick it off by giving it update on some of the things that happened this week andthe last week or so. One of those things is the Inflation Reduction Act (IRA) and this podcast is not political at all, but I want to say that generally speaking whatever comes from the government, they just make up a term and whatever that term is, we have to assume that that's what's going to happen. So there's a couple key provisions to the Inflation Reduction Act and we'll talk about those real quickly, and then we'll talk about the Student Loan forgiveness, and we'll talk, and we'll get a little bit of depth on that also. So, let's talk first about the debt forgiveness. Basically the president signed into law, through executive order, a situation where if you make less than $125,000 per year you could qualify for a $10,000 dollar reduction of your student loan debt. Now if you had gotten a Pell Grant which is for individuals with financial need, then that could be as much as $20 thousand dollars. Now keep in mind that because it was enacted by executive order some say that the president - any president - doesn't have the right to do that because the Constitution says that Congress controls the purse strings and so it is possible that there may be some legal challenges to this. So it may be a little bit of time before we find out whether it really happens or not. But we'll talk about the provisions of it. So basically as I said if you make less than $125,000 you get $10 grand. If you had a Pell Grant, it could be twenty thousand dollars wiped off their student loans as I understand it, that would actually be something you have to apply for, it wouldn't happen automatically. The other thing that they did, was they extended the pause in paying back your student loans through the end of December 31st, 2022. So really payments will not be required until 2023 at this point. Now, if you have a small balance you know maybe it's fifteen thousand dollars and you're thinking okay well I'll get ten thousand dollars off you may want to pay off some of that extra five thousand dollars or at least put the money aside until such time as interest starts accruing again and then at that point, you may consider starting to pay those off with the that fun that you've created and reduce the amount of interest that you owe. So that could be a good way to save yourself some money. For context on this, the government is not sure yet how much this would cost. So the estimate right now is somewhere between $500 billion and $800 billion and it does depend on how many people would apply for the forgiveness. If there are more people that apply obviously it can be higher in the spectrum or less, but it hasn't been quantified yet which is interesting. By way of comparison, when the deficit reduction Act was passed - which we'll talk about in a minute - last week and signed passed by Congress and signed off by the President that had in it that it would reduce the deficit by 300 billion over 10 years. So just by pure observation, I would say if we're going to save $300 billion by paying off debt, under the deficit reduction act, well, we just added back to it with the $500 to $800 billion in student loan. So that's just commentary and then we'll switch over here and talk about the deficit reduction act that happened last week. Apologies. I was saying and deficit reduction act but the Inflation Reduction Act and again that's probably another law that you say the name of it and it doesn't necessarily mean that that's what's going to happen. But again just color commentary there. So here are some of the key provisions of the Inflation Reduction Act. It's rebates for energy-efficient, appliances in your home. And that's up to fourteen thousand dollars per household. So if you buy an HVAC, maybe a new refrigerator or other qualifying appliances in your home, you can get up to fourteen thousand dollars in credits for that. There's also a electric electric vehicle tax credit which would give up to $7,500 dollars when you buy a new car or four thousand dollars, when you buy a used electric vehicle. So that could definitely reduce the amount of cost out of your pocket. If you're looking to buy one of those vehicles, keep that in mind that this part the Inflation Reduction Act and it is Law and it's not likely to be challenged. So I think we're good to go to move forward on these things. It also extends the subsidies for the Affordable Care Act and what that means is during the pandemic, they decided that there's going to be heavier subsidies for people, depending on your income. That you can actually pay less for your medical insurance through, you know, Obamacare through the through the healthcare exchange. And so that's one thing that will continue until you know potentially next year and the government will obviously be paying the difference. The new provision I think is really cool. Is that Medicare can negotiate for lower prescription drug prices. Currently they just pay what the prescription drug. Prices are And I think it's probably a good thing that they get to negotiate with the pharmaceutical companies for, you know, again, if they're making bulk purchases, why shouldn't they get a reduced rate? So, you know, again just my opinion here but I think that's probably a good one. Also, it allocates 80 billion dollars for the IRS to hire double the number of agents. A lot of people are thinking that that would potentially result in many more audits for us. You know, the other thing to keep in mind is even though that that's an allocation yet, they actually have to go out and find these people to be IRS agents so we'll see, you know, see what happens there. There's also three hundred billion dollars, allocated for energy and climate reform. We'll see how that pans out whether that's so Panels windows or other type of things or Innovations will see where that 300 billion ends up going. Also, there's a 15% in minimum corporate tax that's going to be required. So, the corporation's regardless of where they are, they would have to pay a minimum of fifteen percent. They couldn't necessarily have a, you know, a negative tax to pay based on some net operating losses and so on, if they're profitable, is that that's how I understand it, but more detail will, come on, that The future. And then, as I mentioned earlier, is projected to reduce the deficit by about 300 billion over 10 years. So you decide whether you think that's significant or not, the idea of what it in my opinion is that some of the spending probably doesn't impact the reduction in inflation. For example, if people are going out and buying more cars or the buying household, appliances, that stimulating the economy, probably not really reducing the deficit, although the 300 billion that they talk, Out would be money, going directly to reducing the deficit and then obviously interest wouldn't be paid on that amount if it's paid down and that could definitely leave money for other things. So that part of, it's a good thing. There's our first episode, just wanted to get this started and I hope it to other people that you consider. If you're going to do something, just get it going and build on it, make it better over time. Definitely subscribe on your favorite. Podcast platform. And I look forward to bringing you more content and better content over time expect to see uploads about once a week. Thanks so much for listening to the Red Barn Financial podcast, and we'll talk to you next episode.