Cover Your Assets KC Podcast

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.
 

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.