Cover Your Assets KC Podcast

Episode #40: What It Means To Invest Like A Genius

What are the traits of a genius? And do they apply to you? How about your financial plan, is that the work of a genius? Learn how you too can think and act like a financial genius.
Check out the full show notes by clicking here. 

Episode #39: 2 Tax Strategies To Implement Now In Case Of A Future Tax Rate Increase

Some say “if” but most likely “when” tax rates increase, are you prepared to take a hit? What are some strategies you can implement now to prepare for a future increase in tax rates? These two strategies are sure to soften the blow later on.
Check out the full show notes by clicking here.

Episode #38: Managing Your Money In A Marriage (or Divorce) + Mailbag

Money is one of the top stressors in a marriage, so how do you handle it together successfully? Or, what happens to your retirement savings when you get a divorce? David answers these questions from the mailbag.
See the full show notes by clicking here.

Episode #37: The Battle Between Mutual Funds And ETFs

Do you prefer mutual funds or ETFs? To figure out which is better, first you’ve got to know what each does. Then you can determine how they fit into your financial strategy. We'll help you do that in this episode. 
Make sure you check out the show notes by clicking here. 
Here's the rundown for this episode: 
1:45 - What is a mutual fund?3:48 - Mutual funds provide an easy route to diversification.4:17 - What are ETFs?8:00 - Which is better, mutual funds or ETFs?9:09 - The difference between an indexed strategy and an actively managed strategy.

Episode #36: Why Should You Get Life Insurance?

A lot of people assume you only need life insurance if you have kids at home. But did you know there are additional benefits to having life insurance that could impact both your life and your legacy?
Check out the full show notes for today's episode by clicking here. 

Episode #35: How to Plan For Receiving An Inheritance In Retirement

Are you planning for retirement but in the back of your mind also banking on a big inheritance? Is it wrong to factor that in? David answers this question from the mailbag about inheritance and gives some tips on how to best prepare for one.
See the show notes and learn more about this show here. 

Episode #34: Which Ages Are Most Important When Planning For Retirement?

One of the common questions about retirement is which age you should target so that you’re maximizing your assets. It’s never too early to start discussing the options, so whether you’re in your early 50s or approaching 70, there’s important information for each age range that will help you prepare for that big day. In this episode, find out what you can be doing at each milestone age to put yourself in the best position.
For full show notes, visit our website here. 

Episode #33: Should You Contribute To A Roth or Traditional IRA?

Are you trying to decide where you should contribute money toward retirement? Whether you are 20 or 60, David will talk through some of the things to consider before you decide between a Roth IRA or traditional IRA. The difference down the line is worth taking time to thoroughly consider now.
Full show notes: https://coveryourassetskc.com/episode-33-should-you-contribute-to-a-roth-or-traditional-ira/

Episode #32: Mailbag - 401(k) Rollovers & Leaving An Inheritance

Have a few different old 401(k)s and want to simplify? Wondering if avoiding taxes is scam? Thinking about leaving an inheritance for your children? Listeners often send in their questions, so today David will answer these three questions from the mailbag.
Equipping Points:
0:25 Combining old 401(k)s
Michael in Lenexa has several old 401(k)s from companies he used to work for and is tired of getting the different statements. Can he combine them all and should he?
David shares a story about a couple who had 14 different 401(k) and IRA accounts which made it difficult to keep track of. It felt like there was no plan in place with how everything was scattered.
You can absolutely roll multiple plans over into one account, but you cannot combine it with a spouse’s plan.
There are several really good reasons to combine those 401(k)s, but you’ll want to do it the right way.
2:39 Avoiding taxes
Freida in Independence says she has heard people advertising ways to avoid paying taxes, but it sounds like a scam. Is it?
You’re right to be cautious. There are ways to avoid paying some taxes in retirement, but you have to do it the proper way.
If you work for a company that offers a retirement plan match, you should get the match and then invest in your next best opportunity.
When seeking advice, you want to talk face-to-face, not over the computer or phone, in order to sort out the good ideas from the bad ones.
4:40 Leaving an inheritance
Margaret from Leawood is worried about her kids who are in their 20s and might not have the same economic opportunities that she had. Should she try to leave them an inheritance?
First, make sure your retirement savings are used to cover you before you give any of it away.
Your kids have 40 years before they will retire, and they still have time to shape their retirement. Give your kids a good education and be a sound financial role model.
Take care of your own retirement, then worry about leaving an inheritance.
 

Episode #31: 3 Critical Estate Planning Mistakes To Avoid

These are three estate planning mistakes everyone will want to avoid. Regardless of how big or how complicated your estate is, these will impact your heirs if they are done incorrectly.
 
Equipping Points:
Not naming secondary beneficiaries
1:57 David shares about a client who named a beneficiary but not a secondary beneficiary. The result eventually led to higher taxes.
These kinds of mistakes are easily avoidable. For example, this is a simple change on a form, so make sure with each account you have to go back and check who is listed as a beneficiary.
Sometimes your family status changes with new marriages, divorces, or adding children. These are good triggers to check up on your beneficiary designations.
Overlooking per stirpes
6:34 If the beneficiaries in an estate are not listed as per stirpes, the account defaults to living beneficiaries.
Per stirpes means that if one of the children is deceased then their portion would pass to their heirs.
The default option is per capita which means the inheritance goes to the living remaining next of kin. This cannot be fixed after you are gone, it has to be fixed while you are living. Not handling this important clarification can lead to your money going to someone you didn’t intend.
Having assets go through probate
10:35 If things aren’t properly addressed, your heirs would have to go through probate court to get possession of assets. This is a costly and time-consuming process.
Three assets often accidentally left to go through probate are your bank accounts, your cars, and your home.
You could ask your bank about a beneficiary designation on your accounts or transfer on death (TOD). You can also put a beneficiary designation on your vehicle.
If you have a trust, your home might be owned through the trust. If not, you can make sure your home passes to your beneficiaries with a beneficiary deed on your home.