Cover Your Assets KC Podcast

Episode 190: What Hurricanes Teach Us About Saving for Retirement

If you’ve been watching the news, you may be following the hurricane on the East Coast this week. As the meteorologist talks through it, there are a lot of graphics to go along with the information to explain what to expect and how hurricanes work. Similarly, when retirement planning, we use a lot of ways to discuss what you should expect and how to prepare.
Here’s why you might consider also investing somewhere else:
Your retirement plan should work like the eyewall replacement cycle in a hurricane. (3:33)
How do you prepare for the impact of a hurricane, even after it’s over? What risk do you face in retirement after you’re done working? (8:23)
Can computer models replace the benefits of a meteorologist? What about a financial advisor? (13:20)
Are your concerns being articulated and addressed with your advisor? (17:40)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com 

Episode 189: Financial Rules of Thumb

You may have heard some of these rules of thumb before but should they be followed? A rule of thumb may be used as a starting point, but is no replacement for a custom financial plan created with your unique needs and goals in mind. David talks today about which of these are good financial guidance or which of these rules could leave you astray.
Here’s why you might consider also investing somewhere else:
Find out if the rule of 100 is a good basic rule when it comes to taking risk. (2:47)
How does the 75 (or 80) percent rule apply to your retirement income? (5:24)
Worried about a bear market? Here’s when the rule of five comes into play in the stock market. (9:32)
How much should you really have saved in your retirement fund by the time you are 60? (13:11)
The four percent rule is well-known but is it well-regarded by David? (15:16)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com 

Episode 188: Investing Outside Of An IRA or 401(k)

We talk a lot about investing in 401(k)s and Roth IRAs, but what about investing in something else? David gets questions about this topic from young and old alike, so today we’ll talk about some alternative options and why you might choose to do so.
Here’s why you might consider also investing somewhere else:
There is freedom in having these other investment options. (4:16)
Be prepared for your taxes to change! Certain rules you don’t want to overlook. (8:44)
Know how the step up in basis works with an inheritance. (14:30)
Passing money onto the next generation can look a number of different ways. (16:30)
For additional resources or to contact David, visit us online: http://coveryourassetskc.com 

Episode 187: Irreversible Financial Decisions

Once you’ve made the decision on some of these financial things, there’s no going back! Let’s talk through a few areas you want to make sure to carefully consider before making the decision.
 
Key Points:
0:40 - What is David up to this weekend?
1:40 - What happens when you start Social Security?
5:23 - How rigid is the decision to elect spousal benefits on your pension?
7:43 - Get life insurance before you become uninsurable.
11:07 - Choose a retirement date wisely.
 
For additional financial resources, visit us online: http://coveryourassetskc.com 

Episode 186: Life Insurance After 65? Three Good Reasons...

Why would you get life insurance after the age of 65? David shares three good reasons why you might consider using this financial tool.
 
Key Points:
0:34 - David has been spending some time on the golf course!
4:08 - Why should we consider life insurance after 65?
5:00 - Some use life insurance for income replacement.
8:03 - Some policies can help cover long-term care needs.
11:04 - Having enough liquidity to pay estate taxes.   
13:57 - How does David include this in the planning process?
 
More About Today's Episode:
When you’re young, there are plenty of good reasons to get life insurance. If one spouse dies, this helps cover things like the home mortgage, college education for your kids, and living expenses. In your 60s and retired, you might be glad to not need it for those reasons anymore. There are however a few other reasons to consider getting life insurance, even when retired. 
One reason people get life insurance in retirement is to work as an income replacement. If you have a pension, what will replace that monthly income for your spouse when you die?
Another reason is to use a life insurance policy as a long-term care benefit. David likes this option because you don’t know if you’ll need long-term care insurance. But with a life insurance policy that has a long-term care benefit, when you die, your spouse or heir still gets a tax-free death benefit. It’s not “use it or lose it” like a long-term care policy is.
Finally, life insurance may help have enough liquidity to pay estate taxes. The estate tax goes up pretty quickly. If you find yourself having done really well over the years, this might be worth looking into to provide a tax-free lump sum. Ultimately, it comes down to how much you want to spend to take risk off the table. Check with your financial advisor to see if it’s something that works well in your financial plan. It’s usually best to do so right around the time you’re retiring.
 
For additional financial resources, visit us online: http://coveryourassetskc.com 

Episode 185: Planning For Retirement’s Uncertainties

What kinds of things do you need to plan for? While you might not know what the future holds, you can be financially prepared for it.
 
Key Points:
0:40 - We can’t wait for some fall football!
2:19 - What retirement uncertainties are there?
4:04 - What is your life expectancy?
6:02 - Future tax rates are unknown but should be considered.
10:30 - What about the solvency of Social Security.  
12:42 - How do you plan for healthcare needs?  
14:52 - What about inflation?
 
More About Today's Episode:
How do you construct a plan for retirement when you have to account for unpredictable factors? We’ll talk through five things that can come up during retirement. The best way to start is by having a really good, written plan.
No one knows how long they will live. So, David recommends making a plan that has your money lasting until you’re 100 to be safe. Another thing to look out for is if one spouse dies earlier than expected and leaves the surviving spouse without everything in place. Do some “what-if” strategizing with your retirement plan.
Future tax rates can make a big impact on your finances, but we can’t be sure what they will be. We can try to predict what they will be. Right now, they are historically low, so it is probably best to assume they will go up. David shares what the tax brackets could look like. Don’t forget that this bracket would change if one spouse passes away and you go from married filing joint to filing single.
What changes to Social Security might change your retirement plan? David thinks it’s likely that they will raise the full retirement age. The amount that comes out of your paycheck may raise as well.
Another unknown is what kind of healthcare needs you’ll have. Ask, what if one spouse needs several years of care? What happens to the other spouse financially? 
Finally, inflation is something we’ve been talking about a lot lately in the news. Your plan has to include some amount of inflation. Over the course of retirement, potentially 25-35 years, inflation has to be built in as it is bound to go up over that time. Talk with a financial advisor to make sure all of these uncertainties are adequately covered in your financial plan.
 
For additional financial resources, visit us online: http://coveryourassetskc.com 

Episode 184: Mailbag: Should I Convert My IRA Rollover Into a Roth?

What should you do with those retirement savings? Whether you are leaving a job or navigating big expenses in retirement, David is here to answer a few questions from the mailbag.
 
Key topics on this episode: 
1:32 - Mailbag: Should I spend money on home updates in retirement?
8:24 - Mailbag: Should I convert my IRA rollover into a Roth?
 
For additional financial resources, visit us online: http://coveryourassetskc.com 

Episode 183: Do You Concur? Picking Sides In Important Financial Debates

From credit cards to Social Security, David shares his thoughts and advice regarding these common financial concepts. Which of these do you agree or disagree with?
 
What we discuss on this episode: 
1:45 - Should you always pay off your house ASAP?
4:07 - Nobody needs life insurance in retirement?
6:59 - Should you never use credit cards?
8:37 - Buy mutual funds or ETFs instead of individual stocks?
12:27 - Start Social Security as soon as you can?
 
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts

Episode 182: Financial Jargon

Wondering what you need to know about a bear market, a mutual fund, or a recession? David tackles these sometimes confusing topics and shares the essentials you should know.
 
What we discuss on this episode:
0:46 - The Chiefs are getting up and running again!
1:20 - Let’s talk about some financial jargon.
2:05 - What should you know about bear and bull markets? 
6:07 - Why is diversification important?
12:10 - A lot of people are talking about a recession.
15:13 - What’s the difference between mutual funds, ETFs, and target date funds?
20:17 - 401(k) vs. Roth IRA vs. IRA?
 
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts

Episode 181: Are You Too Old for a Roth Conversion?

Is now the right time to do a Roth conversion? David talks about which questions to ask before making the move.
 
What we discuss on this episode:
1:53 - Am I too old for a Roth conversion?
3:52 - What’s my tax rate?
9:07 - When will I start to need money from my IRA?
11:07 - Do I have non-IRA money to pay the tax?
15:19 - Taxes are low now but 2025 is right around the corner.
 
Get additional financial resources here: https://www.coveryourassetskc.com/podcasts