Cover Your Assets KC Podcast

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.
 

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.