Cover Your Assets KC Podcast

The Most Misunderstood Roth IRA Rules

Roth IRAs can be a powerful retirement planning tool, but they come with some surprisingly confusing rules. In this episode, David breaks down the two different Roth IRA five-year rules and explains why they have almost nothing to do with each other. Learn how withdrawals are taxed, when the 10% early withdrawal penalty may apply, and why Roth conversions could create unexpected complications for some younger investors. David also shares practical tips for tracking conversions to help you avoid costly mistakes when managing multiple retirement accounts.
 
Here’s some of what we discuss in this episode:
📋 The two Roth IRA five-year rules serve completely different purposes✅ When Roth earnings can be withdrawn tax-free⚠️ How Roth conversions can trigger unexpected penalties🧾 Why age 59½ plays a major role in withdrawal decisions🔄 How multiple Roth conversions create separate tracking requirements📂 Why consolidating retirement accounts can help simplify your financial life
Converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. Roth distributions are tax free after age 59-1/2 and the account has been open for at least 5 years.
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

RMDs on My Inherited Roth- Yes or No?

Most people know Roth IRAs don’t normally have required minimum distributions, but things can change when someone inherits one. In this episode, David explains how inherited Roth IRA rules work, why beneficiary type matters, and when the IRS may still require distributions even from tax-free accounts. David also walks through real-world examples and highlights why beneficiary planning has become much more complicated after recent law changes.
 
Here’s some of what we discuss in this episode:
📝RMD Basics: Traditional IRAs require withdrawals at 73
🧾 Inherited Roth Rules: Beneficiary type changes everything
⏳ 10-Year Rule: Many heirs must empty accounts within a decade
👨‍👩‍👧 Beneficiary Types: Eligible vs non-eligible matters
🛡️Tax-Free Growth Potential: Roth inheritance strategies can help preserve wealth
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Mailbag: Two Huge Decisions Before Retirement

David tackles two listener questions from folks standing right on the doorstep of retirement. He explores how timing a large vacation and a sick-leave payout could affect taxes and savings options, and then looks at whether it makes sense to retire before Medicare kicks in, given healthcare costs and subsidies. Throughout, David discusses how the “last mile” decisions could make a difference in retirement confidence.
Here’s some of what we discuss in this episode:
🧠 Lump Sum Decisions Matter:
📉 Tax Bracket Creep
🏥 Healthcare Changes Everything
🧩 Multiple Strategies Exist
🧭 Final Stretch Planning Counts
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Mailbag: Inheritance Without Guardrails

What happens when a 22-year-old suddenly inherits a significant sum with no guardrails in place? In this episode, David and Walter unpack a listener scenario involving an uncle worried about his nephew’s financial future after an unexpected inheritance. They explore the potential risks of unrestricted wealth, the possible role of trusts, and how family members or advisors can step in to provide guidance.
Here’s some of what we discuss in this episode:
🔥 Why young heirs sometimes burn through inheritances quickly
🛑 The potential risk of having no financial guardrails
🧠 How maturity and financial education can help shape outcomes
🤝 When to bring in a financial advisor or third party
📈 Turning a lump sum into a long-term financial asset
Listen to Protecting Your Heirs from Themselves
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Protecting Your Heirs from Themselves

What happens to your money after you’re gone isn’t always as simple as passing it down. David walks through a reality many families don’t talk about, and why planning ahead can make a meaningful difference. This isn’t just about protecting assets; it’s about protecting people. With the right structure and conversations, you can turn an inheritance into something that lasts.
 
Here’s some of what we discuss in this episode:
🔑Inheritance Behavior: Many heirs either spend everything or save everything
🧠 Plan With Intention: Structure can help turn a windfall into a long-term resource
🏦 Large Estate Tools: Foundations can help reduce taxes and involve heirs
📜 Trust Strategies: Spendthrift and incentive trusts add a level of protection and guidance
🗣️ Clear Communication: Sharing your wishes ahead of time can make a lasting impact
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Don't Waste Your Annual Financial Review

For many, the annual financial review is just a routine- show up, review the numbers, and leave. But what if that hour could be very valuable for your financial life? If you’re not leaving with clarity and confidence, you might be missing out. David explains how to turn your review into a meaningful conversation by asking the right questions, focusing on your plan, and actively participating.
Here’s some of what we discuss in this episode:
🔍 Identifying Bad Reviews: If it’s all one-sided, something’s wrong
✅ Good Reviews: Start with your goals, not your advisor’s agenda
💬 Collaboration: Ask what you want out of the meeting for a better meeting outcome
💡 Review Your Plan: Know your goals and keep track of progress
🗣️ Spouse Involvement: Make sure both partners are heard in the conversation
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Mailbag: Out Of the Market Too Long & Taxes in Retirement

Two listener questions spark a conversation about the emotional and practical sides of retirement planning. David talks about strategies for easing back into the market after sitting on the sidelines and how retirees can think about taxes when withdrawing from IRAs, brokerage accounts, and Roth accounts. These are the kinds of questions many investors face as they transition into retirement, and without the right guidance, the wrong answers may negatively affect your plan.
Here’s some of what we discuss in this episode:
😱Market Re-Entry: Fear of missing gains vs. fear of crashes
📉 Market History: Declines happen but recoveries follow*
📆 Dollar-Cost Averaging: Gradual investing can help reduce** timing risk
🧠 Risk Tolerance: Your emotional response matters in downturns
🧾 Retirement Taxes: Withdrawal strategy could affect tax outcomes
*Past market performance may not be used to predict or project future results
**Diversification does not ensure a profit or guarantee against market loss
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Broker or Fiduciary – Does It Really Matter?

When you hire someone to help with your money, you probably assume they’re legally required to act in your best interest. But here’s the catch: not all financial professionals are held to the same standard. In this episode, David breaks down the often-confusing distinction between brokers and fiduciaries, and why it matters for your retirement confidence.
Here’s some of what we discuss in this episode:
⚖️ The legal difference between brokers and fiduciaries
🥩 Why the butcher vs. dietitian analogy matters for your money
🕵️ How to research your advisor on BrokerCheck & SEC sites
🛡️ Why fiduciary duty offers stronger retirement protection
📜 The questions every retiree should ask before hiring an advisor
Resources for this episode:
BrokerCheck
https://brokercheck.finra.org/
Investment Adviser Public Disclosure
https://adviserinfo.sec.gov/
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Mailbag: Investing Extra Income and Handling an Inherited IRA

In this mailbag episode, David answers two practical listener questions about managing unexpected financial opportunities. One listener recently paid off their mortgage and now has an extra $3,000 per month to invest, while another is navigating the tax implications of inheriting an IRA. David walks through several potential options for putting extra cash to work- ranging from CDs and brokerage accounts to fixed annuities- while also clarifying the complex withdrawal rules tied to inherited retirement accounts.
Here’s some of what we discuss in this episode:
🏠 Ideas of what to do with extra monthly cash after paying off your mortgage📈 Investment options beyond retirement accounts, including brokerage accounts and ETFs🏦 The pros and cons of CDs, money markets, and fixed annuities🧾 How inherited IRAs are taxed and the potential impact of the 10-year withdrawal rule⚖️ Why timing withdrawals carefully could help reduce your overall tax bill
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.

Retirement Gray Areas That Matter a Lot

Financial media loves simple answers: always do this or never do that. But real financial planning doesn’t work that way. Most of the biggest decisions people face in retirement live in the gray. David pulls back the curtain on the sensational advice dominating YouTube and financial media. Instead of chasing rigid rules, he explains why thoughtful coordination across multiple planning areas could potentially produce better outcomes.
Here’s some of what we discuss in this episode:
⏱️ Roth Timing Window: Converting before RMDs increase income
📊 Tax Bracket Planning: Filling lower brackets strategically
🧩 Annuity Purpose: Guarantees vs market exposure
🔍 Annuity Fine Print: Caps, riders, surrender terms
🏠 Mortgage Tradeoffs: Interest rate vs emotional security
 
Investment advisory services are provided in accordance with a fiduciary duty of care and loyalty that includes putting your interests first and disclosing conflicts. Insurance services have a best interest standard which requires recommendations to be in your best interest. Advisors may receive commission for the sale of insurance and annuity products
 
For additional resources or to contact David, visit us online at http://creativeoneadvisorsgroup.com or call 913-317-1414.