Cover Your Assets KC Podcast

Mailbag: Should I Pay Cash for My House in Retirement?

David does one of the things he loves to do best—helping listeners! We dive into the mailbag today to hear questions from people in all sorts of different points in their financial lives. We hear from a retiree ready to downsize, a younger listener trying to max out savings, and someone about to retire but shocked by required minimum distributions.  Do you relate to any of these situations?
 
Here are the questions David answers today:
Mailbag: Planning to downsize our house. Should we pay cash to avoid the high interest rates with a mortgage?
Mailbag: I maxed out my 401(k), where else can I save?
Mailbag: Can they really make me withdraw that much in RMDs?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Are There Universal Retirement Truths?

Although everyone is unique and has their own journey, today we talk through a list of five “universal truths” when it comes to retirement. David weighs in regarding how true each of these things may be for everyone. From needing an income plan in retirement to under-standing the statistical likelihood of one day needing long-term care, are you prepared? Planning ahead can be of great importance, especially on behalf of your beneficiaries, saving everyone from a lot of heartache and confusion down the line.
Regardless of your age, all of these are things to think through, whether they impact you a little or a lot. Everybody needs to do something. It doesn’t have to be complicated or expensive, but you need to have several key building blocks in place.
 
Here’s what we talk about on today’s show:
• Everybody needs an income plan. • Everybody needs a plan to address long-term care issues. • Nobody knows how long they are going to live. • Tax implications matter. • Estate planning isn’t just for the wealthy. 
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Understanding RMDs: A Guide For Retirees & The Soon-to-Retire

Let’s talk about the mandatory withdrawals you’ll eventually have to take out of your accounts. Required minimum distributions are something to expect once you hit a certain age, but there are still plenty of ways to be strategic about them. Especially once you’re over 60 and in the retirement “red zone,” you’ll want to plan for your RMDs and what you can do about them. We talk through different strategies that David has used with his clients and what to keep in mind about RMDs.
Here’s what we discuss on today’s show:
Why do we have required minimum distributions?
Can I avoid RMDs?
How can you plan for RMDs and what are the risks if you don’t plan?
If you don’t need the RMDs to live on, what can you do instead?
How has David helped someone plan for RMDs?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Mailbag: Do I Really Need a Trust?

Is it really necessary to set up a trust? Fran shares what her age and assets are when she asks this important question. While David is not a lawyer, as a financial advisor he shares some of the reasons why or why not someone would want or need a trust when estate planning. Tune in as David answers this and two other questions from the mailbag on today’s show. 
 
Here are the listener questions David answers: 
Mailbag: Should I save my healthcare receipts in my 30s to later get reimbursed by my HSA in retirement?
Mailbag: Should I start Social Security sooner for those cost-of-living increases?
Mailbag: Do I really need to redo my trust with an attorney?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

What Ever Happened to the Stretch IRA?

We used to talk about stretch IRAs all the time, but now we hardly mention it. Why is that? Even though we rarely discuss it on the podcast, David regularly hears questions about stretch IRAs in his office from clients. In this episode, we’ll reflect on the stretch IRA’s former glory, and share how to leave an IRA to a beneficiary strategically now that the stretch IRA as we knew it, ceases to exist.
 
Here’s what you’ll learn on today’s show:
What a stretch IRA was and why it was important.
The new rules from the SECURE Act totally changed the Stretch IRA strategy for leaving your IRA to a minor.
Should you leave some of your IRA to your grandchildren?
Is leaving your IRA to a minor still a good idea?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Too Young For A Roth IRA?

Is there such thing as contributing to a Roth IRA too soon? After a number of clients have asked how to fund a Roth IRA for a grandchild or college-aged child, David wanted to share all about this option and gift toward the future.
 
Here’s what you’ll learn on today’s show:
Is it possible to be too young to start a Roth IRA? (2:12)
What qualifications do you need to open a Roth IRA? (4:30)
Why should we pay attention to Roth IRAs? (6:16)
Can they withdraw early from the account? (8:03)
Any Roth opportunities to gift adults in their 20s, 30s, and 40s? (16:32)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Countdown Clarity: Timing Your Retirement Preparations

Whether you’re close to retirement or still far from that exciting date, it’s not uncommon to wonder when you should start preparing for each aspect of it. From figuring out the right time to be debt-free and when to adjust your portfolio risk, to deciding when to plan for your Social Security benefits or healthcare coverage, this episode guides you through the ideal timeline for each. Tune in to find out how far away from retirement you should have answers to these pressing questions.
 
Here’s what we'll discuss on today’s show:
The best time to get rid of debt is now. (3:38)
Am I behind on my savings? + The importance of systematically saving for retirement and starting early.  (7:48)
Do I have a structured plan to generate income in retirement? (15:00)
When should I start drawing Social Security? (19:55)
Should I stay in my home or sell it and downsize? (24:28)
Updating your legal documents and planning for long-term care needs. (28:21)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Are Clients Saving ”Too Much” For Retirement?

We’ve all heard the phrase, “too much of a good thing.” Is there such a thing as saving “too much” for retirement? If you’re still working, it’s helpful to figure out how much you really need for the future. Have a plan that considers what your retirement income sources will be as well as what expenses you may face. There are some expenses that are reduced or eliminated altogether in retirement. On the other hand, don’t forget about added costs like inflation or health care costs.  
 
Here’s what you’ll learn on today’s show:
Are clients saving too much for retirement? (3:31)
How much is enough? (6:49)
What else do you need to consider? (8:36)
Expenses become the key driver for what to save. (10:15)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Don’t Wait To Claim Ex-Spouse Benefits From Social Security

When it comes to taking Social Security benefits, there’s often a question about whether to take them as soon as possible or to wait. Inspired by a few recent conversations in the office, David wanted to specifically discuss the Social Security benefits for those who are divorced, currently single, at retirement age, and able to get benefits based on an ex-spouse’s work records.
Here’s what you’ll learn on today’s show about ex-spouse Social Security benefits:
Who is eligible to claim ex-spouse benefits? (1:58)
What does the benefit look like? (3:27)
What is the impact on the ex-spouse and potentially their current spouse? (5:38)
What might happen for someone with numerous ex-wives, like say, Johnny Carson? (7:19)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Common Financial Questions from the Office

You might be surprised how many times the same financial questions come up, but the answers can depend on the person. David talks through commonly asked questions and concerns in the office and shares how to find the answer that is right for you. Stay tuned to see what you can learn from this week's mailbag episode!
 
Here’s what you’ll learn:
Should I pay off my house early? (1:51)
How do I financially cut off my adult child without causing issues? (5:07)
Should I delay retirement until my house is paid off? (9:52)
Mailbag: How do I protect my savings and emergency fund? (14:51)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.