Bite-sized financial and retirement planning guidance from David Dickens in Kansas City. Dave Dickens is the President of KC Financial Advisors and is a Chartered Financial Analyst (CFA). He has more than 35 years of experience in the investment business.
Health Savings Accounts (HSAs) might just be the most powerful and overlooked tool in your financial toolbox. Today, David is breaking down six key things everyone should know about HSAs, from eligibility and contributions to how they can grow over time and work across job changes. Here's some of what we discuss in this episode:
Retirement planning can feel like a whirlwind, flooded with choices, tight timelines, and the pressure to “get it right.” In this special mailbag episode, David answers real questions from listeners who are navigating this very moment. One is preparing to retire and feeling overwhelmed; the other is already retired and sorting through the complexities of Roth conversions. Here's some of what we discuss in this episode:
Taxes don't stop when your paycheck does, and they certainly don't skip your heirs. In this episode, David tackles two common listener questions that reveal just how much tax strategy plays into smart retirement and estate planning. If you've been worried about how much your kids will owe in inheritance taxes or if you're sitting on a pile of tax-deferred savings, David offers practical tips on ways to help you avoid getting a surprise tax bill. Here's some of what we discuss in this episode:
The headlines are loud, the markets are messy, and your gut might be telling you to do something — anything — right now. But what should you actually do when your portfolio takes a hit? Instead of guessing what's next or obsessing over breaking news, David walks you through four critical questions every investor should ask during turbulent times. From re-evaluating your plan and risk tolerance to exploring rebalancing and tax-loss harvesting opportunities, this episode gives you practical ways to stay grounded and focused. Don't miss this important conversation as David covers what to do and not do in an unpredictable market. Here's some of what we discuss in this episode:
We're back with another mailbag episode! In this week's edition, we're tackling 3 great questions from listeners like you. These episodes are some of David's favorites, as they provide a chance to dive deep into key topics and explore the finer details. Ted is curious about how to manage the wealth he'll leave behind for his children. Roger is wondering if setting up a trust is the best way to help minimize the tax burden on his kids when they inherit his accounts. There are valuable lessons for everyone in this conversation, so don't miss out on what you can learn today! Here are the questions we tackle in today's show: ❓ “How can I determine how much money I can leave behind for my kids without compromising my retirement?” ❓ "My job might have layoffs with a severance package equal to a year's salary. Am I foolish for hoping to get laid off?" ❓“Should I set up a trust to help my kids save money on taxes when they inherit my investment accounts?” For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Each year, David gets a lot of questions from his clients about required minimum distributions. Some are just beginning to take them, while others have been withdrawing for years but still have specific concerns. In this episode, he breaks down the 7 key things you need to know about RMDs. We'll start with the basics, like what they are, when you need to start taking them, and which retirement accounts are affected. Then, we'll dive into some of the trickier aspects, like how to calculate your RMD, what happens if you don't take it on time, and more. The goal of this episode is for you to walk away learning at least a few things you didn't know before. So, tune into this informative discussion today to see what you can learn! Here are the questions we discuss in this episode: 1️⃣ What is an RMD and when do I start taking them? 2️⃣ When should I start thinking about them? 3️⃣ How do I know which retirement accounts are included? 4️⃣ I have a bunch of retirement accounts. Do I take an RMD from each one? 5️⃣ What happens if I just say “no?” 6️⃣ But I don't need all of that money. Can I escape somehow? 7️⃣ How exactly do I calculate my RMD? Check out the survey here: https://www.fa-mag.com/news/retirement-planning-survey-2024-80450.html For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Ever wonder what other people talk about with their financial advisors? A new survey of nearly 400 experienced advisors reveals the biggest concerns and challenges, their clients are facing today. Today we're breaking down the four biggest concerns clients have about retirement and how to overcome them. Here's some of what we discuss in this episode:
Today we are covering two different listener questions. James is asking about starting Social Security at 62. You might be amazed how many times I get that question in my office. And then Barry wants to talk through life insurance, seems to think he has a lot of it and wants to know whether he should cancel some of it. These are two core areas of planning so let's talk through how they should come to a decision. Here's some of what we discuss in this episode: We'll take you through the process for how we determine Social Security claiming strategies. Why it might not be the best idea for this person to take Social Security at 62 to pay off their mortgage. The questions you want to answer before getting rid of a life insurance policy. The different insurance products that you might look into. Check out the life insurance calculator: https://www.bankrate.com/insurance/life-insurance/life-insurance-calculator/ For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Well, the Kansas City Chiefs are going to the Super Bowl again. Their coach Andy Reid probably won't be retiring anytime soon, but let's still see what we can learn about retirement planning from these quotes from the Chiefs coach. Here are the quotes we discuss in this episode: “Every play is an opportunity. Make every snap count.” “We don't focus on the scoreboard; we focus on the next play.” “Adjustments are not a sign of weakness; they are a sign of strategy.” For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Today's show is a little different than normal. Instead of diving into one topic, we're going to tackle two separate planning items thanks to a couple questions from Bobby and Roy. Both questions involve important decisions that will impact retirement so let's jump in. Here's some of what we discuss in this episode: The different ages that matter for Social Security benefits and what you need to know. The reasons why he might want to wait to claim. Why your ‘underperfomance' might just be good diversification. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414
We've all seen stats about how much the average American has saved for retirement. But let's be honest- being “average” when it comes to retirement savings isn't likely to provide the lifestyle you want in your golden years. Instead, David will share some practical benchmarks you can use to measure your progress. He'll also share some actionable steps to set yourself up for long-term success! Here's some of what we discuss in this episode: Benchmarks for retirement savings based on age and income Where this money should be held The importance of starting early A great time to start is right now! New Years Resolutions Episodes https://coveryourassetskcpodcast.podbean.com/e/episode-155-2022-financial-resolutions-part-1/ https://coveryourassetskcpodcast.podbean.com/e/financial-resolutions-part-2/ For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Join David for part two of our series on 2024 stocking stuffers for financial freedom. In this episode, we explore five actionable financial tips to help you wrap up the year and prepare for a prosperous 2025. From managing debt effectively to considering Roth conversions and utilizing Qualified Charitable Distributions, this episode will give you some areas to focus on. Here's some of what we discuss in this episode: The number of people that carry credit card debt is pretty shocking. Consider Roth conversions to help reduce taxes in the future. QCDs are a fantastic way to not pay taxes on money that is otherwise definitely going to come out of your IRA. Why you need to be reviewing your plan annually. Don't forget your Roth contributions! For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The holiday season is here, and while you're stuffing stockings for your loved ones, don't forget to stuff your own financial stocking with tips that can bring you closer to a secure retirement. Today, we're unwrapping 10 bite-sized, actionable ideas to help you save smarter, invest better, and plan for the future you deserve. From maximizing your retirement contributions to revisiting your estate plan, learn how to make the most of your financial situation as we approach 2025. We have plenty of stocking stuffer ideas so stay tuned for part two of the discussion next episode. Here's some of what we discuss in this episode: Have you maxed out your retirement contributions for 2024? The benefits of consolidating old retirement accounts and the best way to it. Two clients stories about estate planning. Why would you want to harvest losses for your next tax return? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The election is finally behind us and it's hard to believe that we didn't have a long, drawn-out process to determine the winner. Now that Trump is returning to the White House, it's time to start looking at what policies his administration is considering and what those decisions could mean for your portfolio. Here's some of what we discuss in this episode: Could the proposed tariffs be inflationary for the US economy? What does David think will happen with the tax cuts set to expire at the end of 2025? Is less regulation a good thing? How quickly will changes start to take effect? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Building a nest egg or inheriting one can involve a lot of moving parts. You want to be strategic and make wise decisions to prepare you for the future and protect your assets against the possibility of a market crash. In today's podcast, David answers three questions from the mailbag, all facing different financial situations. Here's some of what we discuss in this episode: Mailbag: When to stop contributing to a 401(k) and pay off debt instead. Mailbag: How worried should I be about a market crash? Mailbag: How does a trust work? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As we approach the end of the year, it's crucial to ensure your financial health is in top shape. In today's podcast, David provides an essential checklist to help you optimize your financial strategy. Whether you're a retiree or still in the workforce, these practical tips will guide you towards a prosperous 2025. Here's some of what we discuss in this episode: Fully funding your retirement accounts. Remember to make a Roth IRA contribution with money earned, even as retirees. Rebalance before year end. Consider a taxable brokerage account for things you can sell at a tax loss. If you have an FSA, use it or lose it! Resources for this episode: https://www.coveryourassetskc.com/episode-177-making-investment-losses-work-for-you For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Following the news of the rate cuts last week with the Fed, you may be wondering what that means. Is that a good thing? How could it impact your daily life? David breaks down what it means now and what has happened after rate cuts in the past. Based on that, he shares some financial possibilities for the near future and what the market outlook is. For investors, this short and sweet podcast packs a lot of valuable info in. Before you make any bold moves, David suggests a cautious approach as we wait and see what these rate cuts do to our economy. Here's some of what we discuss in this episode: The Federal Reserve announced that they were cutting the Overnight Fed Funds Rate by half a percent. Is the Fed rate cut a good thing or a bad thing? What does the history or Fed rate cuts tell us? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414. What's the key takeaway in all this for investors?
Whether you're facing a layoff, planning a financial gift for a new grandchild, or dealing with an inheritance, today's podcast offers valuable insights and actionable advice. Beyond helping you save for retirement, as a financial advisor, David answers countless financial questions that come up over the course of his clients' lives. Find out what he has to say when answering three questions from the mailbag! Here's some of what we discuss in this episode: Mailbag: How to handle unexpected layoff? Mailbag: How to financially set up new grandchild? Mailbag: What taxes to plan for with inheritance? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As we grow older (and wiser), it's natural to reflect on the decisions we've made and consider what we could have done differently in the past. In today's episode, we delve into the top five retirement regrets of people in their seventies, inspired by a recent YouTube video created by someone else in their 70s. David shares his insight and advice for anyone in their fifties or sixties looking to avoid these common financial pitfalls. Here's some of what we discuss in this episode: People wish they had retired earlier. Some wish they had spent more when they first retired. Retirees wish they took better care of their health. People wish they had taken up a hobby. Many wish they had traveled more. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When it comes to planning for retirement, many people turn to target-date maturity funds for their set-it-and-forget-it appeal. In fact, if you have a 401k or an IRA rollover, chances are you have a target-date maturity fund. These are designed to automatically adjust your investment mix as you approach retirement, gradually shifting from a higher allocation of stocks to a more conservative mix of bonds and cash. This sounds ideal, but is it? In this episode, David and Walter discuss an interesting article by The Washington Post that questions whether these funds truly deliver on their promises. Here's some of what we discuss in this episode: The popularity of target-date funds and how they work The performance of target-date funds over recent years What the 2025 portfolio looks like today The differences between Vanguard, Schwab, and Fidelity funds Understanding the drawbacks of these funds The Washington Post Article: https://www.washingtonpost.com/business/2024/07/23/target-date-funds-retirement-savers-explainer/ For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When it comes to your investments, there are a lot of avenues you can take. How can you know you're taking the best one for you? David answers three questions from listeners who are asking about accounting for taxes in retirement, putting money in a 401(k) or elsewhere, and managing an inherited IRA. Here's some of what we discuss in this episode: Roth IRAs and preparing for rising taxes. How much to contribute to a 401(k) and when to pivot. Managing inherited IRAs. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Procrastination is a common temptation, but when it comes to your finances, it can have serious consequences. Whether you're in your twenties, thirties, or already nearing retirement, it's never too early or too late to start planning. By addressing these key areas and avoiding procrastination, you can secure a more stable and enjoyable financial future. Here's some of what we discuss in this episode: The dangers of financial procrastination. Deferring taxes could be costly in the future. Eliminating debt is like eliminating rust on your car. Setting up legal and estate documents protects your family. Delaying Social Security is a personal decision. Having a plan allows you to enjoy and understand your financial life. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When your heirs inherit a Roth IRA, they are not required to take distributions, which allows the account to continue growing tax-free for up to ten years. This flexibility can be a significant financial boon, especially if your heirs are in their prime earning years and want to defer withdrawals until they are in a lower tax bracket. The question is, should you do a Roth conversion now? Here's some of what we discuss in this episode: Is inheriting a Roth IRA a real positive? What are the primary investment asset types to inherit? Should older parents do Roth conversions to benefit their children's inheritance? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
If you've listened to David for long, you've heard his affinity for the Roth, but does that apply to everyone? When it comes to planning for retirement, high earners need to decide whether to contribute to a Roth account or a traditional IRA. But first, who is considered a high earner? And why does a Roth matter? Here's some of what we discuss in this episode: The two ways to get money into a Roth. How taxes make a big difference on the decision. Why a Roth conversion can be a solid strategy. Who this advice most commonly applies to. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When planning for retirement, most people focus on the rate of return their investments will yield. However, there's an often overlooked risk that can significantly impact your financial future: the sequence of returns. In this podcast episode, David explains why the order in which you earn returns can arguably be more important than the rate itself. Here's some of what we discuss in this episode: What is sequence of return risk, and why is it important in financial planning? How does the order of investment returns impact retirement outcomes? What are some strategies to mitigate sequence of return risk? Download the Sequence of Returns PDF HERE! For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
The choices we make with our money often come down to more than mere numbers. David answers three questions from listeners who are facing different situations in life and looking for what to do next. From wanting to retire ASAP to coming into a financial windfall, it's important to have a strategy in place to make sure the money works toward your goals. Here's some of what we discuss in this episode: Mailbag: Can I retire right now? Mailbag: Should I rollover my 401(k)? Mailbag: What should I do with settlement money? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Are you ready for a retirement income literacy quiz? David recently took the quiz himself to see how he did and puts Walter on the spot for a few of the questions. After you listen and take the quiz yourself, you can identify what you do know and what you don't! Here's some of what we discuss in this episode: How much a negative single year return in your retirement portfolio impacts. How to improve your retirement security. The best strategy with Social Security benefits. The average life expectancy for Americans. Leveraging life insurance. Working part-time in retirement. Income Literacy Quiz: https://theamericancollege.qualtrics.com/jfe/form/SV_5u6YaBWQWFjxkY6 Life Insurance Episodes: https://www.coveryourassetskc.com/episode-186-life-insurance-after-65-three-good-reasons https://www.coveryourassetskc.com/episode-128-how-to-find-and-buy-term-life-insurance For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
How much should you really be saving or already have tucked away toward retirement? As a follow-up to our three-part series where we focused on the retirement questions of every generation, David gets down to percentages and dollar amounts you'll need to answer this common question. Here's some of what we discuss in this episode: If we're living longer, do I need to save more? How much of my current income do I need to replace with my retirement savings? How much should I already have saved? What percentage of my income should I be saving? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
For those in their mid-twenties to mid-forties, this episode is for you! In this final part of our three-part series, we look at the financial questions that millennials are asking. With plenty of working years ahead, the financial advice for millennials is very different than for retirees. From paying off student loans to saving toward retirement goals, David shares some ideas you might want to consider in the years ahead. Here's some of what we discuss in this episode: Should I prioritize paying off my student loans? How do you plan for the potential costs of having and raising children? Will Social Security matter later on? How can I take advantage of employer-sponsored retirement plans? Are there alternatives we should consider? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
If you are between the ages of about 44 to 59 years old, you might be asking retirement questions about whether you have saved enough to retire or even if you can retire early. In part two of our three-part series, today we get into some really good information for Gen X as they begin to really buckle down and think about what retirement might look like and how to successfully prepare. Whether you are trying to catch up on saving or looking to leverage your investments, David has plenty of wisdom to share. Here's some of what we discuss in this episode: Have I saved enough? How do I know if I'm on track? How can I catch up if I started saving too late? How can I balance saving for retirement among other priorities? How can I maximize investment returns without excessive risk? What should I do with my 401(k) from a previous employer? Should I pay off my mortgage before retiring? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
What financial questions are every generation asking? Over the course of this three-part series, there will be something for everyone! Every generation has a different set of scenarios and priorities they are facing. Today, we'll focus on six common financial questions Baby Boomers are asking (and then in future episodes we'll dive into the questions Gen X and Millennials are facing). These are generic questions that David hears every day in his office, but remember that broad advice doesn't always apply to your unique situation. Be sure to reach out to a financial advisor to find out the answers to these questions are for you. Here's some of what we discuss in this episode: How much market volatility should I have as I approach retirement? What's the best approach to transition to retirement account withdrawals? How does the rising costs of healthcare fit into a plan? What's the best way to pass on wealth to my heirs? How can I maximize my Social Security benefits? Should I downsize or relocate during retirement? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
As we wrap up the month of February with a few 60-degree days (not to mention a Super Bowl win!) we take the mailbag as David answers some listener questions. To start, Jason is wondering how to best handle his 401(k) after retiring. Then Megan wants to know the best way her dad can wisely gift money to avoid estate tax. David explains what the state tax exemption is and who to talk to in order to get the right answers on how best to proceed. Finally, we discuss the capital gains implications of Megan's dad signing over his house. Here's some of what we discuss in this episode: Mailbag: It's cumbersome to withdraw from my 401(k). How can I manage it better? Mailbag: Should my elderly dad start gifting money now to avoid estate tax after he passes? Mailbag: Should my parent sign over his house to beneficiaries? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Following the Super Bowl, we can't help but bask in the glow of the Chiefs' victory. David shares four financial insights and comparisons to Sunday's game. For instance, Travis Kelce was shut down in the first half but had 8 catches and 92 yards in the second half. How does that relate to your financial plan? Here's some of what we discuss in this episode: Have a good plan and be open to mid-course corrections. Have discipline and do the little things well. Adversity will come your way, it's really how you deal with it. You don't have to reinvent the wheel. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Diving into the mailbag, David answers three questions about Social Security, 401(k) savings, and bad debt. Whether you are full retirement age, like Jacob who asks when to begin taking Social Security, or you are in your working years like Anna who is saving away in her 401(k), you're sure to learn something from today's show. Here's some of what we discuss in this episode: Mailbag: I've reached full retirement age but don't plan to retire anytime soon. When should I take my Social Security? Mailbag: I'm loving the growth in my 401(k), but how long can it really last and when should I walk away? Mailbag: Should I sell my rental property to pay off all my debt? 4 Simple Strategies to Increase Your Net Worth (Ep 65): https://www.podbean.com/ew/pb-z44z9-d4dade For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Life insurance isn't a fun topic to talk about, but it's an important one. We talk through three reasons you should use life insurance and how to have a life insurance strategy in place--as soon as this week. Remember, with life insurance, you're trying to protect against an unforeseen financial event. Here's some of what we discuss in this episode: The income replacement of a breadwinner. The rising cost of long-term healthcare. Transferring wealth in the future to your heirs. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
For our first podcast of the new year, we are covering five things you can take care of this month to get your year off on the right track. Whether you have big financial plans for the year or simple financial tweaks, each of these five things are important and doable in January. Here's some of what we discuss in this episode: Calculating your financial net worth. Getting the 401k company match. Building an emergency savings account. Avoiding debt. Putting your savings system on autopilot. How to calculate your net worth statement podcast: https://www.coveryourassetskc.com/episode-107-2021-financial-resolutions-part-2 For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Because David loves listener questions so much, we wanted to end the year with a few more! For starters, Amy says she has never been in a hurry to pay off debt, never paid extra on her mortgage, uses a HELOC, doesn't pay cash for cars, and doesn't see a problem with it. Using debt has allowed her to use money for other things, including saving for retirement. Is that okay? Here are the questions we discuss in this episode: Mailbag: I'm not in a hurry to pay off debt, is that bad? Mailbag: Due to a medical diagnosis, should I start Social Security right away? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Today, we do one of the things David does best—answer financial questions! No matter where you are in your financial journey, at least one of these listener questions may relate to your life. From end-of-year charitable donations and how they may (or may not) impact your taxes to deciding what to do with a raise, David shares what you need to keep in mind. Here's some of what we discuss in this episode: Mailbag: Do charitable contributions still benefit me from a tax standpoint? Mailbag: What should I do with money from my raise- retirement savings or pay down my mortgage? Mailbag: Will I have to work forever if I don't have a million dollars saved? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
If you have a pension, you have some choices to sort through when it comes time to use it. Should you take a monthly payment or a lump sum? It's a big decision to make and not one to take lightly. While we've covered this topic in the past, a lot of things have changed between inflation and interest rates. We discuss six key factors to consider. Each of these factors should play a part in your decision to determine what's best for you. Here's some of what we discuss in this episode: What's happening with the interest rates? Are you prepared for future inflation? How will it impact your taxes? How is your health? How financially secure is your employer? Do you want an income stream or asset that can be transferred? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Following the meeting with a client, we dive into what happens when someone inherits an IRA. The rules about inherited IRAs have changed a lot in the last few years and mistakes can be costly. Listen in as we review what changed since the SECURE Act was implemented. We'll also discuss some examples of how it can look to inherit an IRA, both for a spouse or a non-spouse beneficiary. Here's some of what we discuss in this episode: The SECURE Act changed the rules. There are two main categories of people who might inherit an IRA. What you can do without the stretch IRA. What are the exceptions to the rules? David shares an example of how this can look. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
When you go to sell your home, there's a lot to keep in mind! After a few questions from clients, David sets the record straight on today's podcast about what to expect regarding taxes when selling your house. Whether you are in retirement or in your 30s, you'll want to use this as a starting point before you go to sell. Here's some of what we discuss in this episode: After the ownership and use test, how much of the gain can you exclude from tax? Do home improvements reduce the taxable gain? How is it different if you inherit a home and then sell it? What are the rules after one spouse dies? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
David does one of the things he loves to do best—helping listeners! We dive into the mailbag today to hear questions from people in all sorts of different points in their financial lives. We hear from a retiree ready to downsize, a younger listener trying to max out savings, and someone about to retire but shocked by required minimum distributions. Do you relate to any of these situations? Here are the questions David answers today: Mailbag: Planning to downsize our house. Should we pay cash to avoid the high interest rates with a mortgage? Mailbag: I maxed out my 401(k), where else can I save? Mailbag: Can they really make me withdraw that much in RMDs? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Although everyone is unique and has their own journey, today we talk through a list of five “universal truths” when it comes to retirement. David weighs in regarding how true each of these things may be for everyone. From needing an income plan in retirement to under-standing the statistical likelihood of one day needing long-term care, are you prepared? Planning ahead can be of great importance, especially on behalf of your beneficiaries, saving everyone from a lot of heartache and confusion down the line. Regardless of your age, all of these are things to think through, whether they impact you a little or a lot. Everybody needs to do something. It doesn't have to be complicated or expensive, but you need to have several key building blocks in place. Here's what we talk about on today's show: • Everybody needs an income plan. • Everybody needs a plan to address long-term care issues. • Nobody knows how long they are going to live. • Tax implications matter. • Estate planning isn't just for the wealthy. For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
Let's talk about the mandatory withdrawals you'll eventually have to take out of your accounts. Required minimum distributions are something to expect once you hit a certain age, but there are still plenty of ways to be strategic about them. Especially once you're over 60 and in the retirement “red zone,” you'll want to plan for your RMDs and what you can do about them. We talk through different strategies that David has used with his clients and what to keep in mind about RMDs. Here's what we discuss on today's show: Why do we have required minimum distributions? Can I avoid RMDs? How can you plan for RMDs and what are the risks if you don't plan? If you don't need the RMDs to live on, what can you do instead? How has David helped someone plan for RMDs? For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.
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.
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.
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.
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.
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.
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.
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.
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