Monday Morning Money

Converting to a Roth IRA. We will look at: the factors in your decision, what it might cost, and provide some general guidelines to help you determine if converting to a Roth IRA is a good idea. The Roth IRA is one of the greatest retirement savings programs ever created. You make after-tax contributions. Your money compounds tax free for your retirement. Contrast this to the old way of doing things. You get a tax deduction for your contributions. Your money grows tax deferred. When you retire and use it for income, 100% of those distributions are taxed. You can convert your existing IRA to a Roth IRA. This means you pay the taxes today, and the money then grows tax free over time. But should you? To learn more and to see some charts and details discussed please visit:  https://flemingwatson.com/should-you-convert-to-a-roth-ira/    

Pre-tax 401k or Roth 401k, which is better? This is a question we received from a listener. We dig into what goes behind your decision and nerd out the math. To learn more and see the charts we used in this episode, please visit:  https://flemingwatson.com/pre-tax-401k-or-roth-401k/

How will inheriting money impact your income taxes? This is a common question we hear from both the heirs and the people leaving the money. Today we talk about the basics of retirement accounts, Roth IRA's, and other types of accounts.   To learn more, please visit: https://flemingwatson.com/how-does-inheriting-money-impact-your-income-taxes/

    To learn more, visit: https://flemingwatson.com/the-social-security-quiz/

How does retiring at age 55 impact your Social Security benefits? Today we have an example created using Social Security's detailed calculator. A 45-year-old couple wants to retire in 10 years. Part of the planning process looks at how retiring at 55 impacts their Social Security benefits. To get a copy of your earnings record, please visit: https://www.ssa.gov/myaccount/ To learn more, please visit: https://flemingwatson.com/how-does-retiring-at-55-impact-your-social-security/

Today, we are talking about four things that everybody needs to do to help plan for the worst. "The worst" means your death or becoming incapacitated. These steps will help your loved ones move forward more efficiently. Some of this involves legal documents, and we are not attorneys. We cannot offer you legal advice. We are sharing some of our experiences to make it easier for people to handle these situations. To learn more, please visit:  https://flemingwatson.com/4-things-to-help-you-plan-for-the-worst/

How can a 100-year flood help you prepare for a better retirement?  We will show the impact a generational event can have on a retirement account. To learn more, please visit: https://flemingwatson.com/how-can-a-100-year-flood-help-you-plan-for-a-better-retirement/

One year ago, on March 23, the S&P 500 closed at its bear market low. Today, we are going to talk about five lessons we can learn from that bear market event. To learn more, please visit:  https://flemingwatson.com/5-lessons-from-the-bear-market/

When it comes to stocks, ten percent doesn't necessarily mean ten percent. We will explain this and how setting reasonable expectations can make you a better investor. To see the graphs we use in this episode and learn more, visit: https://flemingwatson.com/10-percent-doesnt-mean-10-percent/

Retirement anxiety. It is the nervous feeling you get in the pit of your stomach when you start to think about your retirement. We'll talk about one of the best ways to ease that stress.

Why does the stock market keep going up? We will give you two reasons why prices continue to increase. We will share three reasons it could reverse course.  And we discuss what you can do to prepare yourself. To learn more, please visit:  https://flemingwatson.com/why-does-the-stock-market-keep-going-up/

How can you invest in electric vehicles? Today we discuss: the two ways you can do this the difference between the two and a valuable lesson we can learn from one of the best-performing stocks over the last quarter-century, Amazon. To learn more, visit: https://flemingwatson.com/how-can-you-invest-in-electric-vehicles/

Can spouses start Social Security benefits at different times?  This was a question we received from a listener.  In today's episode, we answer it.   To learn more, please visit:  https://flemingwatson.com/can-spouses-start-social-security-at-different-times/  

Today we discuss required minimum distributions and cover: when you have to start taking them why it's important to take them the basics of how they're computed when during the year is the best time to take your distribution and, what you can do with the money if you don't need the income Required minimum distributions may not be an interesting topic, but our clients ask a lot of questions about them. If you're heading towards your retirement, it's something that should be on your radar. To learn more, visit: https://flemingwatson.com/required-minimum-distributions/ To ask a question visit: https://flemingwatson.com/askacfppro  

Today we answer a question from a listener.  He asks:  I am looking to retire soon and trying to determine the best way to generate retirement income with interest rates so low. Traditionally, you could have done this with treasuries or CDs. Why wouldn't buying dividend stocks paying 4% to 5% makes sense? In addition to the dividends, you have the opportunity for appreciation. We talk about the challenges of this strategy. To view this episode on our website, visit:  https://flemingwatson.com/why-not-use-dividend-stocks-for-retirement-income/ Do you have a question? Send it to us:  https://flemingwatson.com/askacfppro  

The trading activity in GameStop caused some anxiety in the stock market last week. It serves as a stark reminder there is a difference between investing and speculating. For more on this topic visit: https://flemingwatson.com/investing-vs-speculating/

A good friend sent me an article written by the writers at MotleyFool.com. It was titled 4 Reasons the Market Could Crash in the Next 3 Months. A stock market crash is always coming. To learn more, visit:  https://flemingwatson.com/a-stock-market-crash-is-always-coming/

Today we focus on taxing Social Security benefits. We cover: How to know if your benefits are taxable or not Examples to show you how provisional income is computed. Potential surprises you may encounter in retirement.  To learn more, visit: https://flemingwatson.com/taxing-social-security/

Today we look at how the most common types of retirement income is taxed.  We look at: The common types of accounts retirees use, The types of income taxed at the highest rates Types of income which receive favorable tax treatment. To learn more visit: https://flemingwatson.com/how-retirement-income-is-taxed/

Many people want to retire as early as possible, something we completely understand. But it may not be the right decision. Today we discuss 4 reasons to NOT take Social Security at age 62. The reasons include: Big discounts for early retirement. The negative impact on spousal and survivor benefits. Smaller lifetime benefits. Penalties to continue working. To learn more, visit: https://flemingwatson.com/4-reasons-to-not-start-social-security-at-62/

As you get closer to retirement, should you save more or pay off your mortgage?  This is a question we received from a listener.  Let's take a look at what factors into your decision. To learn more, visit: https://flemingwatson.com/save-more-or-pay-off-your-mortgage/

A listener asks a question about year end tax planning.  Can tax-loss harvesting help your tax situation?  Today we look at this strategy and how it works. If you would like to learn more about this topic, please visit:  https://flemingwatson.com/what-is-tax-loss-harvesting/

Is Bitcoin a good investment? It is the new frontier in the investment world.  Its gains over the past six years will catch your eye.  Today we will answer a listener question about the digital currency and its characteristics. Our question is from Chris. He writes, "A guy at work keeps talking about Bitcoin. I don't understand it. What is it and should I consider investing in it?” To learn more, visit:  https://flemingwatson.com/is-bitcoin-a-good-investment/

A listener writes:  ""I'm trying to choose investments for my 401k. How important are the three-year and five-year returns when picking the funds? What should I be focusing on to choose the right investments?"   To learn more, visit:  https://flemingwatson.com/how-to-pick-investments-for-your-401k/

Whether you are 2 years away from retirement or 20, we all face similar obstacles.  Today we'll talk about the three biggest ones and some things you can do to overcome them.   To learn more, visit: https://flemingwatson.com/obstacles-to-your-retirement/  

A listener was offered early retirement.  There is a lot to consider before making your decision to retire—even if you weren't offered an incentive.  If you're thinking about retiring soon, and don't know where to begin, start here.   To learn more, visit:  https://flemingwatson.com/offered-early-retirement-start-here/(opens in a new tab)   To talk to a CFP® Pro, Click Here

How could your taxes change in 2021?  We're still waiting on election results.  But, we can look ahead to the potential changes to your taxes if Joe Biden wins the election. To learn more, visit: https://flemingwatson.com/how-could-your-taxes-change-in-2021/  

Can you still do the Qualified Charitable Distribution in 2020? This is a question we received from a listener. We'll tell you what a QCD is, who qualifies, how you do it, and offer a few tips. To see more or ask a question, visit:  https://flemingwatson.com/can-you-still-do-qualified-charitable-distribution-in-2020/

A listener asks, "I keep hearing ads advising us to sell our stocks and buy gold or silver. Is gold a better investment than stocks?" Gold is one of the ultimate fear assets.  When things go haywire in the markets, people tend to turn to the shiny metal.  Is it a better investment than stocks?   To learn more, visit: https://flemingwatson.com/is-gold-a-better-investment-than-stocks/ To read the article we mention in this episode, visit: https://assetbuilder.com/knowledge-center/articles/golds-romantic-delusion  

This question is from Lloyd. He asks, "I'm planning to retire in the spring when I turn 62. Should I start taking my Social Security or should I wait?" This is a big decision. The only decision we have when we're looking at social security is when we file for our benefits. To see more: https://flemingwatson.com/should-i-start-social-security-at-62/

This question is from Karen. She asks, "With interest rates so low, we aren't earning anything on our savings. I'm also worried about another significant drop in the stock market. Should I take money from my savings to pay off my mortgage?" There are two parts to this. One is eliminating debt. The other is what is the better use of your money? View on our website here: https://flemingwatson.com/should-i-use-my-savings-to-payoff-my-mortgage/

During a Bear Market, many investors are tempted to sell their stocks and move to cash.  Many financial advisors will tell them to sit tight, and ride out the storm.  Is "doing nothing" the right thing to do?  Today we'll share some interesting data that shows that in the last market, doing nothing was better than panicking. To see the Vangaurd study, click here:  https://personal.vanguard.com/pdf/Cash-panickers-Coronavirus-market-volatility.pdf To visit our website, click here: https://flemingwatson.com/is-doing-nothing-the-right-thing-to-do/  

Can the stock market predict the outcome of the election? What about a back-to-back bear market? And, how big was the stock market drop in dollar terms?   Learn more by visiting:  https://flemingwatson.com/can-stocks-predict-the-election-outcome/  

This is our September Question and Answer Episode.   We answer these five questions: I changed jobs two months ago.  What should I do with my old retirement plan? Can I use a trust to protect my Mom's assets if she goes to a nursing home? My employer announced they are now offering the Roth 401k option.  Should I use it? How do I use my savings to create retirement income? Can I make the maximum contribution to both a Roth IRA and the Roth account in the Thrift Savings Plan? If you'd like to submit a question we can answer on a future show, please visit: https://mondaymorningmoney.com  

Do you need $8 Million to retire?  This was the title of a recent article.  We'll take a look and share our thoughts. visit: https://flemingwatson.com/do-you-need-8-million-to-retire/ More on the 4% Rule: https://flemingwatson.com/the-4-percent-rule/   ----more----Do you have a question about retirement, investing, Social Security, or other personal finance topics?  Send it to us and we will answer it on an upcoming episode.  Click here to ask what's on your mind:  https://flemingwatson.com/askacfppro ----more---- Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

The 2020 Bear Market is over! In this episode:  We'll review what happened. We'll talk about what it means to you We'll talk about the implications of the new high. To see more, including charts and graphs like this one... visit:  https://flemingwatson.com/the-2020-bear-market-is-over!/ ----more----Do you have a question about retirement, investing, Social Security, or other personal finance topics?  Send it to us and we will answer it on an upcoming episode.  Click here to ask what's on your mind:  https://flemingwatson.com/askacfppro ----more---- Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

The Covid-19 pandemic has increased the stress on the Social Security system.  Some experts predict that benefits would have to be cut as soon as 2029.  Are you ready for a 20% cut to your Social Security benefits?  Will it really happen, or is it just clickbait?   To see more, visit: https://flemingwatson.com/cut-to-your-social-security-benefits/ ----more----Do you have a question about retirement, investing, Social Security, or other personal finance topics?  Send it to us and we will answer it on an upcoming episode.  Click here to ask what's on your mind:  https://flemingwatson.com/askacfppro ----more---- Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

How will the 2020 presidential election impact the stock market? That's a big question on the minds of many. Today, we'll dig into some numbers. We'll show you what happened to the stock market in the three months before and after previous presidential elections. To see more, including some charts and graphs, visit: https://flemingwatson.com/how-will-the-2020-presidential-election-affect-the-stock-market/ ----more----Do you have a question about retirement, investing, Social Security, or other personal finance topics?  Send it to us and we will answer it on an upcoming episode.  Click here to ask what's on your mind:  https://flemingwatson.com/askacfppro ----more---- Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

Today on our show, we offer a simple, low-cost estate planning tip to help you avoid probate.  We talk about the current bear market, and share some expert predictions.  And we answer three questions.  The big one: do I need Medicare supplement insurance? Show Timeline 0:00 - Intro 0:50 - Estate Planning Tip: Transfer On Death Provisions. 8:12 - Let's talk about stocks 11:16 - Question: Do I need to keep my Medicare supplement insurance policy? 15:49 - Question: What is your opinion of gold and silver as an investment option right now? 19:59 -  Question: Is the stock market today being influenced by the media—especially the liberal left agenda? Check Out Our Blog Post On This Topic You can get more information including graphs and charts like the one below at: https://flemingwatson.com/do-i-need-medicare-supplement-insurance/   Have a Question? Do you have a question we can answer on a future show?  Ask it here: Click here to ask what's on your mind.    Are you ready to retire?  Learn how you can get you free Retirement Snapshot.   Subscribe To Our Podcast Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa

Here is a highlight from our recent Ask a CFP Pro Show, (You can hear the full version here). Heidi is 10 years away from retirement.  She asks: "What should I be Doing to Prepare, and should I pay off my mortgage before I retire? If you would like to have your questions answered on an upcoming show, you can send it to us using this link:  Do you have a question we can answer on a future show?  Ask it here: Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

Maintaining spending levels in retirement can be a challenge. A recent study showed that nearly half of retirees were forced to reduce their spending because they didn't have adequate resources. What are some of the characteristics of those who were forced to cut their spending? We'll explore that so you can make better decisions about your retirement. Do you have a question we can answer on a future show?  Ask it here: Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

The Coronavirus interupted our lives.  It disrupted the economy.  And it had an impact on the investment markets.  Today, we look back at how the major asset classes performed in the first half of the year.  We also provide an update to our asset allocation quilt.  (For the full size image, visit the link below) To see more, visit:  https://flemingwatson.com/a-wild-start-to-2020/ Do you have a question we can answer on a future show?  Ask it here: Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.

Welcome to our second Ask a CFP® Pro show.  Today we talk about: An update for the stock market for the first half of 2020. (0:46) Some tax relief if you took your Required Minimum Distribution early in the year. (3:07) A tax deduction created by the CARES Act (even if you don't itemize).  (3:44) And answer your questions. Here are the questions: The money in my checking account isn't earning anything, and I probably have too much in that account anyhow.  What can I do to earn a better return on my cash? (5:02) Will the Charles Schwab – TD Ameritrade Merger affect me? (9:31) If we are setting up a college account for a grandchild, do we have to open the account in the state in which they live? Can we set it up in Ohio even though they live in North Carolina? (11:28) What are some of the things people with lower income, who are just getting started invest in? (13:41) How do you select dividend producing stocks? (17:03) What if President trump loses the upcoming election, What will this do to the stock market? (20:45) What is the best way to invest for retirement about 10 years before you retire?  Is it best to pay off your house before retirement? (23:59) We have pictures.  Click here to see them: https://flemingwatson.com/ask-a-cfp-pro-what-happens-to-stocks-if-president-trump-loses/ Do you have a question we can answer on a future show?  Ask it here: Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:  iTunes Spotify Google Play YouTube Amazon Alexa Subscribe where you find your podcasts.    

Many experts are forecasting lower future returns for both stocks and bonds.  If they are correct, this can create a real problem for future retirees. Today, we'll share 3 ideas to help you plan for lower future returns. We talk about.... Delaying your Retirement Tracking what you spend Owning more stocks To learn more visit our webpage:  https://flemingwatson.com/3-ideas-to-plan-for-lower-returns/  Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa

Some experts are forecasting lower returns for both stocks and bonds.  Does this mean the 4% rule for generating retirement income is dead?  What if future returns are between 4% and 5% per year for a well-balanced portfolio? Why we believe in the 4% rule. It works when you use historical return data. What if rates are lower?  Will it still work? What are the challenges a low return environment provides? What if you need more than 4%? Be sure to check this out on our website: https://flemingwatson.com/is-the-4-percent-rule-dead?/ To listen to our Ask a CFP Show, visit: https://flemingwatson.com/are-you-pessimistic-or-optimistic/ Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa      

Lower interest rates create some obvious problems for retirees. Things like savings accounts and CD's just aren't earning much. But there is a longer-term problem with these low yields. Today, I'll discuss how lower interest rates affect your retirement. To learn more visit:  https://flemingwatson.com/how-lower-interest-rates-affect-your-retirement/ To listen to our Ask a CFP Show, visit: https://flemingwatson.com/are-you-pessimistic-or-optimistic/ Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa  

How many times have you heard this? "The long term average return of the stock market is 10% per year."  What if future returns for the stock market are less than average?  How would that impact your retirement? To learn more visit:  https://flemingwatson.com/what-if-future-stock-returns-are-lower/ To listen to our Ask a CFP Show, visit: https://flemingwatson.com/are-you-pessimistic-or-optimistic/ Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:    iTunes Spotify Google Play YouTube Amazon Alexa  

Today is the first episode of our Ask a CFP series.  Each month we will answer your questions about money, investing, and retirement.   Today's Questions: 1.  Are airline stocks a good buy? What's the best way to invest? 2.  My employer stopped matching my 401k, should I stop my contributions, too? 3.  Since my IRA has decreased in value, is now a good time to convert it to a Roth? 4.  With businesses starting to reopen, is now a good time to buy stocks? 5.  Do you think we've seen the end of the bear market? Are you pessimistic or optimistic about where we are going? We'll give our answers to those questions on today's show. Do you have a question? Ask it here: https://flemingwatson.com/askacfppro To hear this episode on our website, visit: https://flemingwatson.com/are-you-pessimistic-or-optimistic/   Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa  

Are credit card rewards such as cash back or travel perks worth it? Should you use multiple credit cards to get better rewards?  To learn more visit: https://flemingwatson.com/are-card-rewards-worth-it/ Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa

The COVID-19 Pandemic forced a lot of major changes to our lives. IT has also created a unique opportunity to guage how we spend money. Today, we'll pose three questions to help you evaluate your cash flow. To learn more, visit:  https://flemingwatson.com/3-questions-to-help-evaluate-your-cash-flow/ Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa

As America begins to reopen, we can set our sights on what we need to do to get our financial situation back in order. What should be at the top of your list? In my mind, Creating your financial safety net should be a high priority. For more information, visit:  https://flemingwatson.com/creating-your-financial-safety-net/ Do you have a question about money?  Get answers from a CFP Pro!.  Click here to ask what's on your mind.  https://bit.ly/AskCFP Are you ready to retire?  Learn how you can get you free Retirement Snapshot. Other ways to listen to Monday Morning Money:   iTunes Spotify Google Play YouTube Amazon Alexa