2025 The Final Drive Podcast

In this episode, David shares insights from his recent trip to the Ed Slott Elite IRA Advisor Conference in California. Ed Slott - considered America's IRA Expert - released his latest book in June. The Retirement Savings Time Bomb Ticks Louder gives readers important information about the Secure Act 2.0, Charitable Gifting, Required Minimum Distributions and more... and David will highlight some of those strategies and more for listeners.

On November 7, 2024, American's voted to elect Republican Donald Trump back to the White House for a second, nonconsecutive term - the first President to do so since Grover Cleveland in 1893.   In this latest episode, David is joined by Rod Holloway, Equity Portfolio Manager for CFCI, to discuss the the election and how the markets reacted to Trump's election. David and Rod also address government spending, debt and strategies to address inefficiencies, Federal Reserve rate cuts and their implications on the economy and consider different scenarios of what may happen in Trump's second term of office. The economic landscape may be evolving in 2025 - make sure you keep listening to the podcast!

In 2001, Congress approved the 402A rule to the US tax code, allowing employees to designate a portion or all of their elective deferrals as Roth contributions within employer-sponsored retirement plans like 401(k) and 403(b) plans.  This designation means that employees pay income taxes on contributions upfront rather than when they withdraw the funds... or, in essence, paying tax on the seed instead of the harvest. In this episode David dives into the "Rothification" of retirement accounts... why it's important to understand the math behind this process from both the individual perspective and the federal government viewpoint.  David will also share about how savers can use other ways to boost Roth IRA and 401(k) balances ahead of the 2025 tax deadline

With the Presidential election just days away, it's important to look at where the candidates stand on Social Security, the national debt and more.   In this episode, David Hays and guest Doug Hughes talk about financial control by Americans and by the US government. With the 2025 tax cuts up in the air, a lot is on the line for millions of people – David and Doug talk about the financial needs of Baby Boomers and their children and the value of diversification. There is a lot to consider when listening to this episode – enjoy!

We're back with a new season of 2025: The Final Drive! In this episode, David discusses the idea of “Bond Vigilantes” – when are countries going to stop buying American debt?  The US is nearing the point where it will spend more money on debt than defense spending.  Listen to David talk about how the US got out of debt after World War II and what the next President will need to do about the national deficit.  What does that mean for Americans?  You'll have to listen to the full episode to find out. 

A silver tsunami is coming this year, as more than four million Baby Boomers turn 65 in 2024.   In the episode, David shares about some of the top IRA rulings for 2023, the importance of emergency savings, federal estate taxes, what listeners can expect this year as part of the SECURE Act… and the possible benefits of moving to Florida. Grab a slice of pie (there's a reason for that teaser) and enjoy! https://www.cfci.us/2025-the-final-drive

With 2023 ending in just a few weeks, David has a few things to consider regarding taxes. Mutual fund gain distributions, tax penalties, lost harvesting, wash sale rules and phantom gains are all touched on in the podcast. Take the time to listen and take necessary action before the end of 2023! https://www.cfci.us/2025-the-final-drive

With the end of 2023 just weeks away, many people are looking to pay the taxes on a Roth IRA conversion… but what is the best way to do so?  This week David will offer some different ideas, including paying out-of-pocket or taking a 401k loan. Listen in to hear some options on minimizing the pain of paying those taxes now… and remember the pain later could be a lot worse. https://www.cfci.us/2025-the-final-drive

Depreciation may sound like a bad thing to some people, but it can be a benefit when it comes to finances.  On this episode, David Hays welcomes Martin James, CPA, back to discuss various aspects of depreciation on property, the differences in active versus passive real estate investing, land leases and the potential tax benefits of loans. https://www.cfci.us/2025-the-final-drive

Description – Debt is a part of life for many people, and it's always important to manage your debt appropriately.  On this episode, David and Marty James, CPA, discuss the benefits of having cash available versus using credit, as well as the importance of having a steady income stream in retirement.  David and Marty also share about the potential benefits of doing a Roth IRA conversion in preparing for retirement. https://www.cfci.us/2025-the-final-drive  

Marty James, CPA, is back on the podcast to share about potential incentives Americans can take when purchasing a “clean vehicle,” aka an electric car or truck.  Did you know that if you are making a purchase of a clean vehicle, your MAGI – Modified Adjusted Gross Income – could impact the incentive credit?  Marty and David will have the details on the incentives… https://www.cfci.us/2025-the-final-drive

For Americans planning to retire before becoming eligible for Medicare, there can be challenges in finding affordable health care. In this episode, David welcomes Martin “Marty” James, CPA, to the podcast to discuss potential ways to minimize the impact of higher-cost insurance. https://www.cfci.us/2025-the-final-drive

Join David as he discusses how the IRS is affecting your retirement accounts. They are hungry and guess who is going to feed them....your money. David explains why moving your IRA into a Roth account will prevent your children from being taxed considerably when they inherit your IRA; thus preventing the IRA from feeding on your children through taxes. Coming up in our next episodes we will have Martin James back!   https://www.cfci.us/2025-the-final-drive

There are 3 years left until the end of the 2017 tax cuts. Let's focus on what we can do this year of 2023. As the advisor, I have an action plan for you regarding your retirement and estate planning opportunities.  Timing is everything. How can you take advantage of up to a $5,000 catch up?  Inflation adjustments and more explained in this episode. https://www.cfci.us/2025-the-final-drive

David is back in the studio! After taking a step back he is ready to discuss again, the importance of planning for 2025. We begin this episode with Tax Free Bonds.  Are tax free bonds really tax free? Who should even consider tax free bonds, and how do coupons work when purchasing a bond? Find answers to these important questions and more in this episode.  https://www.cfci.us/2025-the-final-drive

What's the answer to the looming Social Security trust fund being exhausted? In Short, more taxes!  Join David to discuss how to avoid being part of the solution and what are they likely to do, or could do, to fix Social Security.  https://www.cfci.us/2025-the-final-drive

This episode David discusses more about the Secure Act 2.0. Specifically, he will be talking about Qualified Longevity Annuities and what changes in the Secure Act make this, rarely used tool, more attractive. What is a Qualified Longevity Annuity (QLAC), and why would now be a good time to consider one? https://www.cfci.us/2025-the-final-drive

If you are still working and want a clever way to pay the tax on your Roth conversions in a less painful way, join me today in our new episode. With S&P down around 18%, is this the best time for that Roth conversion for 2023 now, or should you wait?   All the things you should be doing now, to make your retirement in the future brighter. https://www.cfci.us/2025-the-final-drive

Congress just passed the new 2.0 Secure Act!   What does this mean for 2025?   How will this affect our retirement account rules?   Have you considered the change this could bring to your children's 529 Plan?   Why are required minimum distributions starting at 75 when we need the money now?   Is this increasing again in 2033?   The peak of the baby boom occurred around 1962, which brings them to 70-75 in the next couple years.   What can you expect?   As long as insurance companies, other countries, etc. are willing to buy our debt we can expect these kinds of changes in our future.    Join me in this episode to learn how, why, and when this is happening.   https://www.cfci.us/2025-the-final-drive

Is Life Insurance a better Investment than an IRA? What a great topic starting off the New Year! While life insurance is a protected class in the Internal Code, it is also tax free. How does this happen? The advantages of a life insurance policy include a death benefit for your children - leaving a legacy, cash value grows, borrowing against a life insurance policy, and it grows tax free. When looking at your IRA you are limited on your options, including the conversions you need to make into your Roth. However, with life insurance you have more opportunities: universal life, term, or whole life. If you are worried about changes in the law on ROTH IRA's, your life insurance planning now can save you later because IRS codes are like whack-a-mole, but the IRS Code 7702 is the most sacred tax code in all the laws. Listen in to learn more. https://www.cfci.us/2025-the-final-drive

Let's look at Installment Sales: How do you structure them? What makes sense? What's good for the buyer might not be good for the seller. This episode discusses 2 things: Selling A Business and Selling Real Estate. We want to minimize that awful tax bite. Did you know what's taxable to the seller may not be favorable for deprecation for the buyer? We've discussed tax deferred exchanges in a previous podcast, but what about a contract sale or an installment sale?  Where is the cheapest place to get my money? Is it my loan? 401K? My IRA accounts? Join me as we begin this conversation today. https://www.cfci.us/2025-the-final-drive

Are you wondering what to do with your Estate Planning before 2025?    What are the benefits of an Estate? Life Insurance? IRAs? Business?   The simple answer:   Everything!   In this episode I get into the ins and outs of your Estate Planning and how to navigate the upcoming changes. https://www.cfci.us/2025-the-final-drive

Act Now!   The ability to take your Required Minimum Distributions (RMDs) and Qualified Charitable Distributions (QCDs) end on Dec 31st!   In this episode I lay out 5 easy steps on how to calculate your RMD total and how to navigate your QCDs. Remember QCDs can be made from an inactive SEP, Simple IRA, or Roth account.   As the Holidays are upon us, I enjoy discussing Gift Giving Ideas for the whole family.   In the episode I will discuss 5 easy ways you can use IRAs to help children.   https://www.cfci.us/2025-the-final-drive

What is a Net Unrealized Appreciation (NUA)? How does this affect your portfolio? Just this week, I had a guy come into the office with an NUA from his previous employer. Listen in to learn what we did with it. We discuss calculating NUA in 5 easy steps and when you should consider even using an NUA.                                                          More 5 easy steps to come and I give you a teaser on To Convert or Not Convert, that is the question! https://www.cfci.us/2025-the-final-drive

As we stated in last week's episode - taxes are going up.   I am already getting mutual Fund estimates and get this - one of them is facing a downward spiral of 29.1%!    How can we get ahead of these small caps changing?   Don't let a good loss go to waste.   It gets better though, if you are over 50 years of age you can begin saving more money!   What are the ordering rules and are you withdrawing earnings?    Listen in this week to learn more about the 5 easy steps of determining tax on Roth IRA Distributions.    https://www.cfci.us/2025-the-final-drive

Here we are in Quarter 4 of the year and guess what...?   Everything is down, Stocks are down Bonds are Down, nearly everything is down.    How does this play into the wash sale rule?   If you're looking to sell a security at a loss and buy the same, how will this affect your portfolio?   Working with bonds can be the same.   This something I have never really talked about in my nearly 29 years in practice.    You can sell one Bond fund, buy another Fund – that's fine to do, and the wash sell rules won't catch up to you.   Let's end this year strong together!    https://www.cfci.us/2025-the-final-drive

You own an investment property and want to sell it; but you also don't want to pay all that tax.  In this week's episode David discusses the benefits of doing a 1031 Tax Deferred Exchange for investment properties.  Plus, learn how to have your cake and eat it too, by pulling out some money tax free, before or after a transaction is complete! This is not a recommendation for a 1031 Exchange, the mention of a 1031 Exchange in this Pod Cast is for Educational and Informational Purposes only.  https://www.cfci.us/2025-the-final-drive

You are ready to gift one of your investment properties to a family member, but unsure how to go about it. Your son has been living in a home of yours, and paying you rent, but you want to gift him the property.  What steps do you begin to take? Do we need to sign a new deed? Will this affect mine or his taxes next year?  We have seen this scenario more than once in our office, and David sits down to discuss what steps he has taken to help navigate this thoughtful gift. https://www.cfci.us/2025-the-final-drive

Student Debt. This is a hot topic and we just added fuel to the fire. Biden has set out to eliminate $10-20k worth of student debt. While this helps many people now, mathematically this could potentially hurt us long term. With thousands of students going further into debt every year, this responsibility should be on the colleges. We need an educational reform. But when? https://www.cfci.us/2025-the-final-drive

Special Edition on the “inflation reduction act of 2022” or should we call it the “we hope it doesn't cause more debt act”? More spending with the hopes of increasing revenue with a minimum corporate tax and increasing IRS audits – we'll see if it works, but it rarely does. It just reinforces we are addicted to debt that we never intend to pay back, even though we will try. The passage of this new bill simply reinforces that fact that taxes must go up to pay for our past, and now our future promises.  We must act now to get ourself out of the cross hairs of higher taxes! https://www.cfci.us/2025-the-final-drive

Getting more personal with Martin James in our last installment of part 3 of 3. Join David and Martin in their discussion of QCDs: How can you help your own CPA when filing? Later they get into how to manage a step-up cost basis. How can you manage a step-up cost basis with married couples? This hasn't been on David's radar yet, but thanks to Martin's own research and advice David learns more about how it works. Did you know there are different rules for this basis in other states? https://www.cfci.us/2025-the-final-drive

Join David and his Guest Martin James as they embark on a 3-part series, this is part 2 or 3. Martin, a recovering CPA, has also projected tax changes coming at the end of 2025 due to our Marginal Tax System. How will this affect our current bracket rates?  Have you ever thought to yourself: What is Stealth tax? How does this affect me? What is the history? https://www.cfci.us/2025-the-final-drive

Bloomington roots grow deep when these 2 individuals get to talking. Join David and his Guest Martin James as they embark on a 3-part series, this is part 1 of 3.  Martin James is a recovering CPA now turned Fly Fishing Instructor. Martin is a Charter Member in the Ed Slott's Elite Group with David.  This episode begins with discussions about previous Final Drive episodes on managing your taxes: Medicare Premiums, Roth Conversions, tax changes coming, and more. https://www.cfci.us/2025-the-final-drive

Prescribing a Roth to reduce Pre-Medicare Premiums – or maybe eliminate the cost all together. Listen to David as he discusses a real-life scenario where a client saved money doing this exact thing!  https://www.cfci.us/2025-the-final-drive

Am I too OLD to do a ROTH Conversion?  Think again. Join David as he describes why you're NEVER too old for conversions. https://www.cfci.us/2025-the-final-drive

Little known ways to get money out of your retirement plan, before age 59 ½, without a tax penalty.    Do you have company stock in your 401K?    Don't miss out on one of the littlest known opportunities to potentially pay no tax on that Stock. https://www.cfci.us/2025-the-final-drive

So you think you'll be in a lower tax bracket when you retire? The narrative of getting a deduction when you put money into your retirement account, grow tax deferred, and pay the tax when it comes out, has been flipped! https://www.cfci.us/2025-the-final-drive  

Out of control debt and spending how does inflation help or hurt our debt problem? What's the appetite of Washington to do anything about it?  Not much for now – but nothing happens in America until there is a crisis. More reasons to take a proactive approach to move your retirement out of the cross hairs of higher taxes coming. https://www.cfci.us/2025-the-final-drive

Why are they proposing our Required Distribution age on our IRA's and 401K's be 75 as part of The Secure Act 2? David explains how budgets are made, by occasionally pulling forward expenses and pushing out revenue to cover the cost.  How demographics, projected retirement plan balances, line up perfectly to the new RMD age to pay for our projected spending. Once again proving our Retirement accounts are squarely in the crosshairs of higher taxes and what you should do about it. https://www.cfci.us/2025-the-final-drive

Listen to David explain how to get a full step up of cost basis on a Marital asset and avoid paying capital gains?  Learn about the Marital Gifting Strategy that almost no one knows about!  Hear how to take advantage of your life time, gift exclusion amount, without the fear of an IRS claw back. https://www.cfci.us/2025-the-final-drive

What types of investments should you hold in which type of accounts? Taxable, Tax Free & Tax Deferred Why Auto Enrollment is good for America, but what are they missing big time? https://www.cfci.us/2025-the-final-drive

Are tax free bonds truly tax free?  Not always. Who should consider tax free bonds and who shouldn't? What are the alternatives? When you're looking at regular Bonds vs I-Bonds there is a difference. Join me in this episode as we learn how to calculate your tax equivalent yield. https://www.cfci.us/2025-the-final-drive

When should you use your ROTH IRA money? While your living or when you're dead? Maybe the answer is – whenever you want! https://www.cfci.us/2025-the-final-drive

Did you know that the IRS will tell you exactly when you have to take money out of your retirement accounts, how much and how much is theirs? Take control, the time to act is now to keep the IRS from telling you what to do! Are you single?  Taking care of an aging Parent? Find out if you qualify to change your tax filing status from Single to Head of Household, and enjoy the most favorable tax treatment for yourself of all. https://www.cfci.us/2025-the-final-drive

Capital Gain Taxes are different! Short term vs. Long Term How to maintain the stepped up cost basis if you want to transfer title to your kids before your passing. https://www.cfci.us/2025-the-final-drive

What is the most sacred Tax Code the IRS has? You might be surprised! How can you take advantage of this misunderstood tax free product and maximize your tax free life? https://www.cfci.us/2025-the-final-drive

If you own your company stock in your 401K plan, how you handle that stock could save you a ton in income taxes. Learn about this little known opportunity to save thousands https://www.cfci.us/2025-the-final-drive

Maxing out your plans for tax free money in retirement? Lots of ideas on how to avoid this in the episode! Check out a few David covers: • Having your Roth 401k's and IRA's work together to max out your tax free savings • Catching up now that you have the money (in our 50's) • Non-Profit Employees have an even greater opportunity to save more money tax free. https://www.cfci.us/2025-the-final-drive

What do you do if you want to a Roth conversion, but don't have the money to pay the tax?  David will discuss a great method to get the job done! https://www.cfci.us/2025-the-final-drive

Where can you get a tax deduction, let it grow tax deferred and take it all out tax free?  It's the triple threat of retirement – the Health Savings Account https://www.cfci.us/2025-the-final-drive

David discusses more on delaying Social Security and how to fill the income gap between early retirement and maximum Social Security. Thus creating one of the most tax efficient, inflation adjusted income streams in retirement! https://www.cfci.us/2025-the-final-drive