Cover Your Assets KC Podcast

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.

Episode 212: The Basics of Retirement Savings

Not all retirement accounts are created equal. So, when you save for retirement, it’s important to know that you have the right account and plan for you. On today’s podcast, we will talk about the different kinds of accounts such as 401(k)s, IRAs, Roth accounts, and others. Spoiler alert: David shares one account that’s even better than a Roth IRA!
Here’s what you’ll learn on today’s show:
Not all retirement accounts are created equal. (1:15)
The foundation of most people’s retirement plans is the 401(k). (2:45)
The IRA is used mostly by people who don’t have a 401(k) or 403(b). (7:17)
Using the Roth option for your IRA or 401(k). (9:43)
A simple IRA are a good option for those who are self-employed. (13:03)
HSAs and FSAs may also be a part of your retirement savings plan. (14:40)
The most popular retirement-related products. (20:36)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
 

Episode 211: What Golf Teaches Us About Financial Planning

With warmer weather on the horizon, you might be ready to start thinking about spring and summer hobbies. Besides financial planning (and Chiefs football), David’s favorite thing is going golfing. On today’s show we talk about what we can learn about financial planning from the game of golf. From getting a “hole in one” when investing in the market to hearing from the caddie for advice, there’s plenty of parallels. Par for the course, we put a few puns in there as well!  
You’re always going to make mistakes, whether in golf or investing. But it’s a matter of focusing on your goals and learning from your mistakes. Understand what tools you have access to and how you can leverage those. Finally, make sure you have a wise sounding board as you navigate what’s ahead.  
Here’s what you’ll learn on today’s show:
Getting a hole in one doesn’t make you the winner. (2:55)
Certain golf clubs are more important than others. (9:30)
The best golfers have a caddie. (16:32)
 
For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.

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