Cover Your Assets KC Podcast

What To Do About Your Pension Buyout Options

If you have a pension, you have some choices to sort through when it comes time to use it. Should you take a monthly payment or a lump sum? It’s a big decision to make and not one to take lightly. While we’ve covered this topic in the past, a lot of things have changed between inflation and interest rates. We discuss six key factors to consider. Each of these factors should play a part in your decision to determine what’s best for you.
 
Here’s some of what we discuss in this episode:
What’s happening with the interest rates?
Are you prepared for future inflation?
How will it impact your taxes?
How is your health? 
How financially secure is your employer?
Do you want an income stream or asset that can be transferred?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

”I Just Inherited An IRA! Now What?”

Following the meeting with a client, we dive into what happens when someone inherits an IRA. The rules about inherited IRAs have changed a lot in the last few years and mistakes can be costly. Listen in as we review what changed since the SECURE Act was implemented. We'll also discuss some examples of how it can look to inherit an IRA, both for a spouse or a non-spouse beneficiary.
 
Here’s some of what we discuss in this episode:
The SECURE Act changed the rules.
There are two main categories of people who might inherit an IRA.
What you can do without the stretch IRA.
What are the exceptions to the rules?
David shares an example of how this can look. 
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Will I Owe Taxes When I Sell My Home?

When you go to sell your home, there’s a lot to keep in mind! After a few questions from clients, David sets the record straight on today’s podcast about what to expect regarding taxes when selling your house. Whether you are in retirement or in your 30s, you’ll want to use this as a starting point before you go to sell. 
 
Here’s some of what we discuss in this episode:
After the ownership and use test, how much of the gain can you exclude from tax?
Do home improvements reduce the taxable gain?  
How is it different if you inherit a home and then sell it?
What are the rules after one spouse dies?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

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.