Cover Your Assets KC Podcast

Tax-free Gifts To Your Beneficiaries

After a few days with the grandkids, David is ready to talk about ways to give tax-free gifts to beneficiaries, now and in the future. How can you pass some of your legacy onto the next generation? Whether you are well into retirement or still have kids yet to leave the nest, there are a number of ways to do this. David shares three strategies and then discusses what possible downsides you’d want to watch out for.
 
Here’s what you’ll learn on today’s show:
What does it mean to have a tax-free gift? (3:28)
Doing a Roth conversion can benefit your beneficiaries. (4:28)
Roth contributions can be made by parents or grandparents. (9:01)
Use a stepped-up cost basis on a non-IRA brokerage account. (10:33)
Are there any downsides to these strategies? (12:45)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 221: Mailbag- How Does Inheriting A Roth IRA Work?

There are ways to invest tax-efficiently, and you don’t necessarily need a Roth or IRA, or 401(k) to do that. How so? David answers three questions from the mailbag today from listeners who are facing different investing decisions. From what to do with an inherited IRA to making wise financial decisions that can impact future generations, there are ways you can approach these situations strategically.
 
Here are the questions we cover today:
Mailbag: Am I required to take distributions annually on inherited IRAs? (2:53)
Mailbag: Should I merge old 401(k) accounts? (5:25)
Mailbag: How does inheriting a Roth IRA work? (9:29)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 220: 4 Big Beneficiary Mistakes You Do NOT Want To Make

When you go to set up an IRA or financial account, one simple, critical step is designating a beneficiary. This very important detail is too often overlooked or skipped over, causing mistakes that are incredibly hard to fix once you’re gone. In today’s podcast, David outlines the four biggest mistakes he commonly sees with beneficiary designations and what you can do to fix them before it’s too late.
 
Here are the big mistakes you’ll want to avoid:
Not naming a beneficiary. (6:17)
Not naming someone because it’s in your will. (8:16)
Not funding your trust. (10:28)
Not understanding per stirpes vs. per capita rules. (15:10)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 219: 5 Things That Affect Your Credit Score

Your credit score can have a big impact on certain financial decisions such as buying a house or car. Today we talk through how your credit score, or FICO score, is calculated and how you can improve it. While the average credit score in America in 2022 was 714, aiming for higher scores can unlock better financial opportunities. In this episode, David will cover the scores you should be aiming for and how to achieve them.
 
Here’s what you’ll learn in today’s show:
Why is your credit score so important? (2:21)
35% of your FICO score is based on whether you pay on time. (7:24)
30% of your score is how much you owe vs. how much you have available. (8:50)
15% of your score is how long you’ve had the accounts open. (10:39)
10% of your score is opening too many accounts in a short period of time. (13:13)
10% of your score is whether you can manage a mix of credit types. (14:06)
What are some things that don’t actually impact your credit score? (15:44)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 
 
 
 
 
 

Episode 218: 6 Reasons NOT To Do A Roth Conversion

We all know that David likes Roths as a good vehicle for retirement and inheritance. But today we’re going to dive into why someone shouldn’t do a Roth conversion. Whether that’s based on the timing or circumstances, there are a few reasons a Roth conversion might not be the right fit for you.
 
Here are six reasons why you might not want to do a Roth conversion:
I can’t stomach paying my taxes early. (2:19)
I can’t believe Roth IRAs will always be tax-free. (4:07)
Maybe I should wait until future tax policy becomes clear. (6:39)
We give a lot of money to charity each year. (9:12)
What about IRMAA? (11:12)
Will a Roth conversion affect the tax on my Social Security? (14:10)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 217: 5 Annuity Myths to Know About

Whether you love them or hate them, annuities are just another financial tool that could help you meet your financial goals. Working with the right advisor who is neutral and unbiased will help you navigate your decisions around annuities. There are four types of annuities, so start by understanding what those are to then ask the question of whether they are the right fit for your financial plan.
 
Here’s what you’ll learn today:
What are annuities? (2:22)
Myth: Insurance companies keep all my money after I die. (5:32)
Myth: Annuities are very complicated. (9:04)
Myth: Inherited annuities are subject to double taxation. (11:19)
Myth: Annuities pay low rates of return. (15:37)
Myth: Annuities have very high fees. (18:04)
 
Check out these previous episodes for more info on annuities: 
Episode 138 - https://www.coveryourassetskc.com/episode-138-3-questions-to-ask-before-you-buy-an-annuity 
 
Episode 83 - https://coveryourassetskcpodcast.podbean.com/e/episode-83-what-to-know-about-the-4-types-of-annuities/ 
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Episode 216: Does Age Matter in Financial Planning?

What should you do next financially? The answer might depend on your age. David works with people of all ages and suggests a different set of strategies based on your life stage. Today, we’ll talk through the things you should be thinking about during each decade of adulthood to best prepare for retirement. 
 
Here’s what you’ll want to know for each age:
Does age matter when it comes to financial planning? (2:55)
In your 20s and 30s, write down financial goals and focus on your career. (5:04)
From 40 to 55 years old, stay on track, even with added expenses. (8:31)
After 55, you’re in the retirement red zone. (11:10)       
From 67 and beyond, you need keen focus on your retirement plan. (15:21)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 215: Mailbag - What Makes an HSA Getter Than My Roth IRA?

We all know how much David loves a Roth IRA, so when he said in a previous podcast that an HSA was even better, this caught a few people by surprise. When you contribute to an HSA or health savings account, you get a tax-free account with a tax deduction for putting money into. This account is only available if you have a high deductible healthcare plan though. David shares what you need to know about this account in response to a listener question.
 
Here are the listener questions David answers on today’s podcast:
Mailbag: What makes an HSA better than my Roth IRA? 
Mailbag: Following Silicon Valley Bank, should I be worried about investing at my bank?
Mailbag: Will my late husband’s stretch IRA pass on to me as a stretch IRA as well?
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 214: 5 Important Tax Questions for Retirees

It’s tax time! If you haven’t gotten your taxes done yet, time is running out. This is a very busy time for David and his team as they help clients sort through their taxes for this year and strategies for the future.
When you are retired, your taxes might look different than they did when you were in your working years. No one wants to pay more in taxes than they absolutely have to. In this episode, David outlines five big questions many retirees face when it comes to taxes. Stay tuned for some helpful insight from David, so that you can make informed decisions with your taxes in retirement. 
 
Here are the questions we’ll discuss on today’s show:
What are the tax implications of withdrawing money from my retirement accounts? (3:00)
Will my Social Security be taxed? (5:27)
How would my taxes change if I decide to move to another state? (7:38)
Are there any tax benefits for making charitable contributions in retirement? (10:59)
What are the tax considerations for gifting money to children or grandchildren? (14:06)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 213: 7 Myths About Social Security

Unfortunately, there’s a lot of misinformation that goes around when it comes to Social Security. This can lead to confusion and uncertainty among individuals planning for their retirement.
Today, David debunks seven common myths he encounters when speaking with clients and prospective clients about Social Security. Will Social Security still be around by the time you retire? Social Security is likely to undergo some changes, but that doesn’t mean it’s going away for good.
Seven common Social Security myths:
Social Security is going broke. (1:22)
My retirement age is 65. (4:44)
Delayed claiming is always best. (6:41)
Congress raids Social Security to pay for other programs. (9:24)
My Social Security benefits are tax-free. (12:21)
Delaying Social Security doesn’t affect my spouse’s benefit. (15:44)
My ex-spouse’s benefits reduce my own benefits. (17:58)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.