Cover Your Assets KC Podcast

Episode 210: What You Might Not Know About The S&P 500

While terms like the Nasdaq and S&P 500 get tossed around in conversation or might be mentioned on the news, the average person doesn’t know a whole lot about them. To help you be more in the know, David shares six things that you might be surprised to learn about the S&P 500.
 
Here’s what you’ll learn on today’s show:
The S&P 500 has 505 stocks in it. (2:01)
Three of the biggest four ETFs track the S&P 500. (4:05)
Don’t be fooled by an illusion of diversification. (5:59)
The S&P 500 covers half of the world’s stock values. (10:42)
The top five holdings make up 22% of the holding in the index. (12:11)
There is an equally weighted ETF you can get if you want. (14:14)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Episode 209: It’s Not Too Late For Your 2022 Roth Contributions... 5 Things You Should Know

Were you thinking about contributing to a Roth IRA last year but never get around to it? Good news! It’s not too late to make your Roth IRA contributions for 2022. In fact, David encourages most people to make, and even max out, this contribution. So, if you haven’t made your 2022 Roth contributions, now’s your chance.
If you’re looking for ways to invest, this is often a good place to allow your investments to grow tax-free. David explains the ins and outs of contributing to a Roth IRA, who can benefit from it, and why it’s not too late to contribute 2022 dollars even though we’re already well into 2023.
Here are five things you’ll want to know about Roth contributions:
It’s not too late to contribute for 2022. (3:15)
Tell the custodian it’s a 2022 contribution. (4:29)
Should I max out my contribution? (5:55)
Am I eligible to make a Roth contribution? (7:15)
Am I too old to contribute to a Roth? (10:25)
Bonus: Why to use a Roth instead of a bank. (11:43)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Episode 208: Should I Consolidate My Orphaned 401(k)s?

On this episode of Cover Your Assets KC, we’re taking on the conversation about the elusive Orphaned 401(k), which sounds like a lonely account that’s been forgotten about in the back of a financial institution’s filing cabinet. But what is it, really? We’ll get to the bottom of that and explore why it’s such a problem if you have any of these little lost lambs of retirement savings in your portfolio.
If you're feeling overwhelmed by the thought of consolidating your 401(k)s, don't worry. We'll explore the best choices available to you, including the 60-day Rollover (no acrobatics required!) and the Direct to Custodian transfer (who knew transferring money could be so straightforward?). Plus, we'll dive into the Roth 401(k) and help you decide if it's a good fit for your financial goals.
Here are the questions we cover on today’s episode:
What is an Orphaned 401(k)? (1:30)
David details examples of why having an Orphaned 401(k) is such a problem. (2:40)
Many people decide to consolidate their 401(k)s. David tells us what your choices and options might look like. (5:07)
David shows us the difference between doing a 60-day Rollover or a Direct-to-Custodian transfer. (7:43)
And you knew we wouldn’t finish a show without mentioning the word “Roth”. This time it’s in the form of analyzing what happens to Roth contributions in a 401(k) when you’re consolidating or dealing with an Orphaned 401(k). (10:03)
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Episode 207: Mailbag – Withdrawal Woes, Rental Properties, Tax Hassles & More

On this episode of Cover Your Assets KC, we’re answering four listener questions on our latest “Mailbag” edition of the show. Join us as we touch on questions about Roth conversions for a 60-year-old, inherited money with forced withdrawals, using rental properties for retirement income, and concerns about being hassled to pay quarterly taxes in retirement.
We’ll cover a lot of ground on this episode, so whether you’re nearing retirement or already there, there’s sure to be something of value for you in today’s conversation.
We'll start by addressing the question of whether someone who's 60 and retiring in the next 5-6 years should start converting as much of their IRA to Roth as they can. Next, we'll discuss the letter that one listener received informing them that they need to withdraw some money from an inherited account. We'll also delve into a question from a listener who has multiple options for how to fund the purchase of a rental property. And finally, we'll tackle someone’s concern about not knowing how their tax situation will change in retirement and if they’ll have to pay quarterly taxes.
Join us as we explore these important retirement planning topics, and as always, if you have any questions, feel free to send them in!
 
Here are the questions we cover on today’s episode:
I’m 60 and probably retiring in 5-6 years. Should I start converting as much of my IRA to Roth as I can? (2:35)
I inherited some money from my mom when she passed away last year, and I just got a letter telling me that I have to withdraw some money from the account this year. What’s that all about—I thought I didn’t have to do that until I’m in my 70s? (6:07)
I’m interested in buying a rental property for some additional retirement income. Which of these options is better? Should I cash out investments and pay cash for the property, should I take out a home equity loan to raise the cash, or should I just have a mortgage on the rental property? (9:24)
My income will be different once I retire in a few months, so I’m not sure what I’m supposed to do about taxes. Should I be making estimated payments every quarter? How do I know how much I should be paying since I’ll be in a different tax bracket than I’ve been in the past? (14:00)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

Episode 206: 10 Point Checklist For Retirement Preparedness, Part 2

As a continuation of last week’s series on retirement preparedness, we talk through the remainder of the checklist of things you’ll want to take care of. This will not only give you a good place to kick off 2023, but also a good assessment on the direction of your financial plan. Are you feeling confident about your level of preparedness?
 
Here are the next five points on the checklist for retirement preparedness:
Do I have a plan to combat inflation? (1:18)
Am I prepared for the possibility of future tax increases? (6:41)
Can I address healthcare costs? (9:56)
Should I pay off my mortgage? (13:33)  
Do I have any current investments or products I don’t understand? (16:36)
 
For additional resources or to contact David, visit us online: http://coveryourassetskc.com
Or call: 913-317-1414

Episode 205: 10 Point Checklist For Retirement Preparedness, Part 1

Another year is upon us and it’s a great time to ask yourself 10 questions to assess how ready you are for retirement. If you’re retiring this year, it’s essential to have some concrete answers to these questions. If you’re still a few years from the milestone, tune in so you can start thinking about these critical conversations.
This week, we’ll cover the first five points in the checklist and then review the next five items in next week’s podcast with part 2. From determining your retirement income needs to guarding against some of the unknowns ahead, David shares what you’ll want to think about when it comes to your retirement plan.
And here are the next three resolutions to focus on this year:
Do I know how much income I need each month? (3:39)
What order should I withdraw from my accounts? (9:00)
When is the ideal time to take Social Security? (12:51)
Have I addressed longevity risk? (18:37)
Am I prepared to handle market volatility? (21:50)
For additional resources or to contact David, visit us online:
http://coveryourassetskc.com
Or call: 913-317-1414

Episode 204: 2023 Financial Resolutions, Part 2

In continuation of our conversation about financial resolutions (or goals) for this year, we talk about the next three key things to focus on. After establishing your written goals, calculating your net worth, and getting the right size emergency fund in place, what’s next? David talks us through what to do and why. He also shares resources and information about the US debt clock as well as how much life insurance you should have to cover your most important assets.
If you missed the first episode of this series, you can find it here:
https://www.coveryourassetskc.com/episode-203-2023-financial-resolutions-part-1
And here are the next three resolutions to focus on this year:
Systematize your savings. (2:00)
Eliminate bad debt. (8:40)
Cover your assets. (14:19)
https://www.usdebtclock.org/
https://www.bankrate.com/insurance/
For additional resources or to contact David, visit us online:
http://coveryourassetskc.com
Or call: 913-317-1414

Episode 203: 2023 Financial Resolutions (Part 1)

To make sure you have a strong start to the new year, David shares six financial resolutions you should make in this two-part series. Many of these things David recommends doing every year, which can really add up over time.
Here are the first three resolutions to focus on this year:
Establish or update your written goals. (4:28)
Calculate your net worth. (9:22)
Right-size your emergency fund. (16:17)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com

Episode 202: The Secure Act 2.0

Now that Congress just passed the Secure Act 2.0, we wanted to talk about what changes to plan for. While in many ways it made things complicated, David breaks it down so you know how it could impact your financial plan. Some of these provisions start now while others won’t be implemented for years. Either way, it is good to understand what is happening and keep these changes in mind for the future.
 
Here are some changes you’ll want to know about:
The required minimum distribution age changed. (4:10)
The catch-up contribution limits increased. (7:15)
Certain people must make catch-up contributions in a Roth 401(k). (8:42)
The penalties around RMDs are changing. (11:53)
What strategies should you consider before RMD age? (14:25)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com

Episode 201: Mailbag - Maxing Out My Retirement Contributions

As we wrap up the year, we dig into the mailbag to see what questions listeners have for David. We start with a question about saving for retirement in a 401(k) and how to max it out. More than meeting the company match, what’s the most you can put away? Then, David addresses concerns about future taxes when saving for retirement.
Here are the last two listener questions for 2022:
Mailbag: What does it mean to max out a retirement account? (2:01)
Mailbag: Should I save tax-deferred or tax-free or in another investment? (8:13)
Happy New Year!       
For additional resources or to contact David, visit us online: http://coveryourassetskc.com