Podcasts about rmds required minimum distributions

Many people assume their taxes will be lower in retirement, but that's not always the case. In fact, as Peter with Richon Planning explains to Erin Kennedy, there are 4 good reasons you can plan on your taxes being higher in retirement: 1. You won't be spending less: if you need the same amount of money to enjoy your retirement, you'll be in the same tax bracket when you're not working.  2. Tax rates are set to increase: many financial experts believe that the Tax Cuts and Jobs Act of 2017 reduced federal income tax rates to the lowest level they may ever be. And those cuts are set to expire at the end of 2025. 3. RMDs: Required Minimum Distributions can push you into a higher tax bracket 4. Government debt: our nation's debt stands at $35 Trillion dollars! The government has two options to make up that deficit, reduce spending or increase revenue, i.e. raise taxes. Without proper planning, taxes may be one of your biggest expenses in retirement. To create a strategic tax plan that minimizes your taxes, please reach out to Peter at (919) 300-5886 or visit www.RichonPlanning.com

In this episode, The Annuity Man and Steve Parrish discuss:  What are QLACs?  Transferring longevity risks  Creating a secure income floor in retirement  How annuities are priced    Key Takeaways:  QLACs (Qualified Longevity Annuity Contracts) are a pro-consumer annuity product that allows transferring longevity risk by using IRA assets for lifetime income guarantees via insurance companies. Longevity risks require pooling mortality credits via longevity annuities from highly-rated carriers to ensure lifelong income. QLACs provide a secure income floor in "chapter two" (retirement), avoiding RMDs (Required Minimum Distributions) and offering no fees. Annuities are better for longevity risk pooling and income than the flawed 4% withdrawal rule. Annuities are primarily priced based on life expectancy, interest rates play a secondary role in that computation.    "Older you is not going to be the same as the younger you. Take my word for it. You want to have peace of mind. You're not going to want to have to call your broker every month when the economy is going crazy. You want to play with your grandkids, go golfing, whatever, and to know that you've locked in some income." —  Steve Parrish   Connect with Steve Parrish: Blog posts: https://www.forbes.com/sites/steveparrish/?sh=61590d633079    Connect with The Annuity Man:  Website: http://theannuityman.com/  Email: Stan@TheAnnuityMan.com  Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!   

Free Copy of My Book: Building Wealth In the TSP: Your Road Map To Financial Freedom as A Federal Employee: https://app.hawsfederaladvisors.com/free-tsp-e-book FREE WEBINAR: "The 7 Biggest FERS Retirement Mistakes": https://app.hawsfederaladvisors.com/7biggestmistakeswebinar Want to schedule a consultation? Click here: https://hawsfederaladvisors.com/work-with-us/ Submit a question here: https://app.hawsfederaladvisors.com/question-submission I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

In this episode, the conversation covers various aspects of long-term care, including qualifying for long-term care insurance, alternative options for funding long-term care, and the role of Medicaid. Alex and Wade also discuss the importance of planning for long-term care and the potential challenges faced by individuals who cannot afford to pay for care. The conversation concludes with a discussion on how to invest funds set aside for long-term care. The conversation covers various topics related to financial planning and investment management. They discuss fee-only planners, annuities, engaging a fee-only planner, strategies to lower risk during retirement, buying whole life insurance for teenage children, and investing to keep up with inflation. They also touch on the reinvestment of dividends and capital gains for a 74-year-old to offset RMDs. The conversation ends with a lighthearted discussion about push-ups. Listen now to learn more!   Takeaways Traditional long-term care insurance is difficult to qualify for if you have chronic conditions. Alternative options for funding long-term care include hybrid life insurance with long-term care, annuity with long-term care, and deferred income annuities. Medicaid can be an option for long-term care if you have depleted your other resources. Investing funds set aside for long-term care depends on your liquidity mindset and the timeline for needing the funds. Transparency and client preferences should guide the choice of compensation models for financial planners. Fee-only planners charge a fee for investment management and financial planning, while commission-based planners earn a commission on annuity sales. Engaging a fee-only planner may be worth it if you have enough assets, typically around $500,000 or more. Whole life insurance for teenage children can be used to protect their insurability in case of future health issues. Lowering risk during retirement can be achieved through strategies like adjusting asset allocation, creating bond ladders, and building an income floor. Investing in TIPS (Treasury Inflation Protected Securities) can help preserve the inflation-adjusted value of your principal. Dividends can be taken out to offset RMDs (Required Minimum Distributions) for IRA accounts. Both Wade and Alex need to get back on track with their push-up routines. Chapters 00:00 Episode 130 starts 00:17 Exploring Alternative Options for Long-Term Care Funding 07:23 Considering Medicaid as a Long-Term Care Option 14:35 Investing Long-Term Care Reserve Assets 19:59 Transparency and Client's Best Interests 23:34 Lowering Risk During Retirement Transition 31:13 Reinvesting Dividends and Capital Gains for RMDs 39:32 The Importance of Regular Exercise   Links Register now to attend the next webinar with Retirement Researcher, "The Election and The Stock Market: Understanding the Effects on Your Investments" on 6/25/24 at 1PM ET hosted by Bob French. Visit risaprofile.com/podcast to reserve your spot! The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean's free eBook, “Retirement Income Planning”

RMDs (Required Minimum Distributions) apply to traditional TSP contributions, where the IRS mandates withdrawals based on age to collect taxes. In the past, RMDs were also taken from Roth contributions, although it didn't align with taxing Roth accounts. However, the law has been updated to only require RMDs from traditional TSP contributions, making the process more logical and in line with tax principles.

In this podcast, hear Tyler Emrick, CFA®, CFP®, delve into the often misunderstood world of Required Minimum Distributions (RMDs). Join us as we uncover the essential strategies and tips to help you navigate RMDs and make informed decisions for a secure and fulfilling retirement. Whether you're new to RMDs or seeking to optimize your distribution strategy, this podcast is your go-to resource for mastering the art of income and distribution planning.    Here's some of what we discuss in this episode: An explanation of SECURE Act 2.0 and the legislation that was passed. A high-level overview of Required Minimum Distributions and how to calculate them. Highlighting the key changes brought about by the SECURE Act. What planning opportunities does this present?   Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals. http://bit.ly/calltruewealth

Required Minimum Distributions (RMDs). What are they, and what are the new rules surrounding these IRS restrictions on retirement savings? In this show we go through an extensive FAQ on the rules and changes to this unpopular part of the tax code.

Let's continue to learn how to reduce your taxes while increasing your giving potential!  More specifically, with the help of Qualified Charitable Distributions! In this episode, Zacc Call and Laura Hadley discuss the benefits of Qualified Charitable Distributions (QCDs) for individuals aged 70.5 or older. They explain how QCDs (Qualified Charitable Distributions), made directly from pre-tax IRA accounts to charities, can reduce taxable income and potentially lower Medicare premiums.    They also discuss the importance of timing these distributions to maximize tax savings. They cover the limitations of QCDs, such as the inability to donate to donor-advised funds.    Zacc and Laura discuss:   The potential of your QCDs (Qualified Charitable Distributions) Why timing is everything: How to time your charitable contributions effectively Everything you need to know about RMDs (Required Minimum Distributions) when charitable giving How to use your Qualified Charitable Distributions to satisfy your personal Required Minimum Distributions And more   Resources: Guided Path 7-1 Charitable Giving: Donating Cash vs. Stocks Guided Path 7-2 Timing Your Charitable Giving   Connect with Capita Financial Network: info@capitamail.com tfc@capitamail.com (801) 566-5058 Capita Financial Network LinkedIn: Zaccary Call  LinkedIn: Laura Hadley LinkedIn: Capita Financial Network Facebook: Capita Financial Network

It's time to start taking your RMDs (Required Minimum Distributions) but you don't need the money…In this episode, Frank and Frankie Guida explore the strategies you may be able to utilize.   Charitable giving through QCDs (Qualified Charitable Distributions), Roth conversions, or using the funds for long term care may all be options within your plan.   Additionally, Frank and Frankie stress the significance of optimizing your entire financial plan, including lowering risk, reducing costs, and planning for taxes all to help enhance your retirement experience.   Connect with the team at  A Better Way Financial.com to learn more about these strategies.   Read our book! Amazon Best Seller, “The Book on Retirement: A Better Way to Stretch Your Retirement Dollars While Living the Lifestyle of Your Dreams.”See omnystudio.com/listener for privacy information.

Whether you prefer to ignore your natal day … or you still celebrate with gusto every year, there are a few birthdays we all need to recognize.  We're referring to the birthdays with financial implications.   HERE'S OUR LIST OF FINANCIALLY IMPORTANT BIRTHDAYS: Day One: Newborns can be registered for Social Security immediately.Childhood: At age 15, one can get a learner's permit which affects parents' insurance rates. It's advised to research and shop around for auto coverage.Age 18: This is the legal age of adulthood. Key actions include registering to vote, potential military service registration, and self-medical decision making. Parents are advised to discuss financial responsibilities with their 18-year-olds.Age 19: Parents can't claim you as a tax dependent anymore, but college students have until age 24.Age 21: Self-employed individuals can invest in a SEP-IRA.Age 24: College students filing as dependents need to prepare to file taxes independently.Age 26: Individuals must leave their parents' health insurance.Age 50: You can contribute more to retirement plans and might consider investing in a gym membership.Age 55: Senior discounts become available.Age 59 ½: One can withdraw from tax-advantaged retirement plans without penalties.Age 60: Widows/widowers can receive full spousal benefits from Social Security.Age 62: Eligibility for Social Security begins, but delaying can increase monthly benefits. For assistance, visit FaithFi.com.Age 65: Enrollment for Medicare begins, spanning a total of 7 months.Age 66/67: Full retirement age, with potential benefits increasing by delaying sign up until age 70.Age 72/73: RMDs (Required Minimum Distributions) start for retirement accounts, with penalties for non-compliance.Age 73+: Retirement becomes more complex, with considerations for housing, driving, caregiving, and health.No matter what birthday you'll be celebrating this year, we hope you will make your relationship with God a priority.   Psalm 71:18 says, “Even when I am old and gray, do not forsake me, my God, till I declare your power to the next generation, your mighty acts to all who are to come.” On today's program, Rob also answers listener questions: Do I pay income tax on the interest accrued by my I bonds as it accumulates, or do I pay when the bonds are cashed in?After selling a home below market value to my daughter and her fiancé, will she owe $20,000 in capital gains tax upon their resale?With our 2% mortgage interest and good investment returns, should we pay more on our mortgage or invest the extra?Should I continue to pay off my mortgage quickly despite earning higher interest from my bank products and investments, especially when I also have home projects in mind?With my children's savings accounts currently earning minimal interest, should I move their funds into CDs at a 5% rate for six months, or invest longer given the current market conditions? RESOURCES MENTIONED:The Sound Mind Investing HandbookSoundMindInvesting.org Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.   Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.

Run-DMC, an iconic musical group, best described RMDs (Required Minimum Distributions) in the song "It's Tricky." If you feel like you understand hip-hop lyrics better than you understand what kinds of taxes you will have to pay on the retirement savings that you put away, check this out. Our professionals bring clarity to what you should do to prepare for the fact that tax deferred is not deferred indefinitely.

Required Minimum Distributions work differently depending on the type of account. How can you most effectively plan for them? Today we're talking through everything you need to know about RMDs so you can understand their nuances and create a plan to best address them.Questions Answered:At what age do you need to take an RMD?What accounts do you have to take an RMD on?Timestamps:0:00 Intro2:59 At what age do you need to take out an RMD?4:19 How much is the RMD going to be?7:40 What accounts do you have to take an RMD on?9:25 Basic rules11:26 Spouse and non-spouse inherited IRAs16:11 Extra benefit20:07 Exceptions to the rules23:54 Keep this in mind25:55 Example32:26 OutroCreate Your Custom Strategy ⬇️ Get Started Here.

In this 2-minute episode, Brian discusses required minimum distributions from your portfolio. 

Caroline and Tim discussed some highlights of SECURE ACT 2.0 and how it impacts us:1. The age changes of RMDs (Required Minimum Distributions).2. Allowing direct transfers from 529 plans to Roth IRAs under certain circumstances.3. Changes with 401(k)s.4. 401(k) catch-up contributions.5. New Roth SIMPLE/SEP IRAs for small businesses and self-employment.6. Employer's match for emergency savings.All these new rules have nuances/circumstances built around them; please consult an Advisor and see if they make sense for you.

Do you understand how the changes to the Secure Act will affect you?  Don't worry, we won't ask you to read the 4,155-page document to find out.  Instead, Jeff Green and Lauren Smith will discuss some of the key takeaways of the Secure Act 2.0 and how it may impact you in this episode of The Green Zone Podcast. Together they discuss: What the Secure Act is and who it applies to The updated age for RMDs (Required Minimum Distributions) and how to be strategic about taking yours How RMD penalties have been reduced The way increased catch-up provisions can benefit you Why you may want to consider a larger charitable donation this year And more!  Connect With Green Financial Group: jeff@greenfinancialgrp.com (713) 244-3030 Schedule A Call With Jeff or Lauren Green Financial Group LinkedIn: Jeff Green LinkedIn: Lauren Smith  Please Note: While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. RMD's are generally subject to federal income tax and may be subject to state taxes. Consult your tax advisor to assess your situation. Opinions expressed those of the Jeff Green and Lauren Smith and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.   

For this episode, we address the timely topic of RMDs (Required Minimum Distributions). Listen in, as we dive into 9 questions you should be considering when it comes to your RMD planning. Often one or two of these are overlooked, so let me know what you think and if you have any to add to our list!   Schedule an Intro Call with Loren 5 Tax Planning Opportunities- previous episode discussed on today's show   What is a Fiduciary? About Me Podcast Page  For questions, comments, or to receive your own RETIREMENT RISKS ANALYSIS, you can start with a 2 minute quiz here: Share More & Get in Touch  You can also find Loren at shermanl@integrityguidance.com    Additional Resources Discussed on the Show Healthy, Wealthy, & Wise YouTube

Acronyms can sometimes make things easier to understand or remember, but there are a few of them that relate to your retirement that are very complex. Two of them are RMDs (Required Minimum Distributions) and the SECURE Act (Setting Every Community Up for Retirement Enhancement). The rules for RMDs have changed due to the SECURE Act, and it's vitally important that you understand them In this episode of The Guided Retirement Show, Will Doty joins me to explain RMDs, tax planning opportunities surrounding RMDs, how RMDs factor in when leaving money behind for the next generation, and so much more.   In this podcast interview, you'll learn: How the rules for RMDs changed because of the SECURE Act Why the SECURE Act is secure in name only When to start thinking about RMDs How to plan around taking your RMDs     START PLANNING To get a full recap of today's conversation, including the biggest takeaways, transcripts, and links to all the resources mentioned, visit GuidedRetirementShow.com/74   Learn More about Retirement Planning Find out more about retirement planning and Barber Financial Group, by visiting BarberFinancialGroup.com

In this episode of Ready for Retirement, James discusses the best strategies for reducing RMDs (Required Minimum Distributions).Questions Answered: How can you minimize Required Minimum Distributions?What's the best account for your specific goals?How do your investments connect to your overall retirement plan?Check out the podcast on YouTube here!Check out our main channel on YouTube here!LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it here

Jim and Chris sit down to discuss the IRS guidance/ideas surrounding RMDs (Required Minimum Distributions) and the SECURE Act. The post IRS Guidance On RMDs and The Secure Act Part 1: EDU #2221 appeared first on The Retirement and IRA Show.

Required minimum distributions: how do they work, when do you have to take them, and do Roth IRAs have RMDs too? Plus, were the fellas being misleading when they talked about claiming Social Security early vs. late if you save and invest the benefits? Listen for their rebuttal. When you change 401(k) custodians, is it a transfer, or a whole new plan? Can you convert your entire 401(k) to Roth, and should you? Finally, If you're worried about high tax brackets in retirement, should all your contributions now go to Roth? Show notes, free financial resources, Ask Joe & Al On Air: https://bizlink.to/ymyw-378

Scott and James discuss if you should borrow money to invest. Listener Question Currently have a 401k company match up to 7%. They also allow us to borrow against our 401k up to $50,000. Also have a Roth IRA but not able to make the max contribution. 401k loan is a 5% note on a 60 month term (only option) but maxes out at $50k and can have multiple loans against the 401k (only pay off early option is to pay note in full).  Knowing the risks of losing the job or leaving, we have a HELOC to bail us out in a pinch. Realizing we lose the compounding interest on the loan amount but taking that loan and putting it towards to Roth would offset that lost gain and help with my tax advantages when the withdrawal party starts all the while my interest payments are going back into the 401k.  My thoughts are to take out a loan each year to apply towards the Roth until I either max out the loan amount or I can make the full contribution amount again. Am I crazy to think this is a good idea? Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 3:54 - Cash Flow 6:49 - HELOC Example 9:16 - RMDs (Required Minimum Distributions) 11:47 - Gross Income v. Net Income 14:18 - Retirement Savings 16:35 - Tax Optimization 19:05 - Aligning Your Financial Goals  LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don't miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play. Leave us a review on iTunes. Have a money question you want us to answer? Submit one here

Want to schedule a consultation? Click here: https://hawsfederaladvisors.com/work-with-us/ TSP Cheat Sheet https://hawsfederaladvisors.com/tsp-cheat-sheet-landing-page/ Submit a question here: https://hawsfederaladvisors.com/question-submission-page/ Check out the full article here: https://hawsfederaladvisors.com/how-rmds-required-minimum-distributions-actually-affect-your-tsp/ Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

Want to schedule a consultation? Click here: https://hawsfederaladvisors.com/work-with-us/ TSP Cheat Sheet https://hawsfederaladvisors.com/tsp-cheat-sheet-landing-page/ Submit a question here: https://hawsfederaladvisors.com/question-submission-page/ Check out the full article here: https://hawsfederaladvisors.com/how-rmds-required-minimum-distributions-actually-affect-your-tsp/ Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

Segments 1-4: Terry Savage joins John Williams as they discuss RMDs (Required Minimum Distributions), social security, and taxes on charitable donations. They also answer listeners’ questions.

Scott and James discuss the important milestones you should be aware of. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 2:00 - Introduction 4:29 - Dependent Care 5:50 - Tax Credits 6:58 - Investing v. Gambling 8:02 - UGMA / UTMA 10:25 - Kiddie Tax 12:47 - Catch-up Contributions 15:40 - Social Security Benefits 17:55 - Qualified Charitable Distributions 19:00 - Charitable Giving Strategy 20:27 - RMDs (Required Minimum Distributions) 21:51 - Aligning Your Financial Goals   LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don't miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play. Leave us a review on iTunes. Have a money question you want us to answer? Submit one here

Our topic on this episode of the Ready for Retirement podcast is about answering multiple questions that have been recently submitted surrounding RMDs (Required Minimum Distributions), Social Security Taxes, Income Annuities, and Dividend Reinvestment.Questions answered: What are the best strategies to manage RMDs (Required Minimum Distributions)? How should I be determining when to collect Social Security and what can I expect from a tax perspective? When does an income annuity make sense? Should I be reinvesting dividends? What is the best approach for my individual situation? Are you ready to start focusing on the things that truly matter when it comes to your financial future?We're on YouTube! Check us out here for more content to help you create a secure retirement: YouTube - Root Financial PartnersLET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it here

Many investors and retirees can be surprised and shocked by taxes in retirement. One of the foundational pieces for minimizing taxes during retirement is knowing the 3 different ways retirement assets and investments are taxed. When you understand how your retirement assets are taxed it can help you make vital decisions about retirement income, pay less to Uncle Sam, and reduce retirement anxiety. UNDERSTADING TAX BRACKETS Depending on how you file your taxes (i.e. single, married filing jointly, etc.) and the amount of income you have, you'll find yourself paying a percentage of that income in taxes. In the United States, we have a progressive tax system, meaning that every dollar you earn isn't taxed at the same rate. If you're filing jointly, for 2021, for example, you'll pay 10% in tax up to $19,750. Then from $19,751 to $80,250 you'll pay 12%. Then from $80,251 to $171,050 you'll pay 22% and $171,051 to $326,600 is 24%. The bottom line is that when you find yourself in a tax bracket, not all your income is taxed in that bracket. Make sense?  This is important because there are a number of strategies that can be employed during retirement to proactively address taxes. Not to make this too complex, but your taxable income (the amount that determines your tax bracket) is figured by taking your adjusted gross income and then subtracting deductions, including your itemized deductions or the standard deduction, whichever is greater. By understanding the basics of taxable income, you'll be empowered to strategize about how your retirement income will be impacted by taxes. 3 WAYS RETIREMENT ASSETS ARE TAXED #1 - Taxable Accounts and Investments Examples: Bank, Taxable Brokerage Tax Treatment: These are after-tax and tax-as-earned As you earn interest in a bank account or CD, it will be taxed as interest income, which flows down to your taxable income and will impact your tax brackets.  Taxable brokerage accounts are more complex and have several ways they are taxed. If you earn interest, you'll pay taxes. If your investments produce dividends, they will be characterized as either qualified or non-qualified. Qualified dividends, which are most common, are taxed at lower long-term capital gains rates and nonqualified dividends will be taxed as ordinary income. If you own a single stock and it grows, you won't pay tax until you sell that stock. When you sell the stock, if you own the stock for one year or less it will be taxed as ordinary income but if you hold it more than a year it will be taxed at long-term capital gains rates, which are generally much lower. Mutual funds may report gains or losses that you'll pay as well as dividend income. #2 - Tax Deferred Investments Examples: 401(k)s and IRAs Tax Treatment: Money is put in these accounts before tax, grows tax-deferred, and is taxed on withdrawal Tax-deferred accounts don't make you report gains, dividends, or interest inside an account each year, as long as the money stays inside the account. As you start withdrawing money out of your accounts to create retirement income, this money will be taxed as ordinary income. Even if you don't need the money for retirement income, at the age of 72 you'll be required to take RMDs (Required Minimum Distributions). If you don't take at the least the required amounts each year, you'll owe a 50% tax on the amount you should have withdrawn. Also, if you have several tax-deferred accounts, you can determine the RMD on each account and you may be able to take it all out of one account in some instances. #3 - Tax-Free Assets Examples: Roth 401(k), Roth IRA, Cash Value Insurance Tax Treatment: Money is put into these accounts after tax, grows tax-deferred, and can often be taken out tax-free In retirement planning, tax-free investments and financial vehicles are powerful tools. They can allow families to have income, yet pay no tax on the money. This in turn can reduce Social Security taxes, keep you in your current tax bracket,

As you draw closer to retirement, one of the greatest retirement dangers is sequence of return risk. Sequence of return risk is the hazard of withdrawing money from your investments when the balance is down due to market volatility. Sequence risk can increase the likelihood that you can run out of money and also reduce your investment performance. WHEN IS SEQUENCE OF RETURN RISK MOST IMPACTFUL? Sequence of return risk rears its head in three common situations: Income Needs - Drawing income from your retirement investments for living expenses Emergency or Unanticipated Needs - Life happens, as we all know. RMDs - Required Minimum Distributions will need to be taken starting at 72 from your tax-deferred investments such as a 401(k) or IRA. Your overall portfolio can suffer, because you need your money and can't wait. INVESTMENT AND INCOME PLANS THAT ARE DESIGNED FOR UP AND DOWN MARKETS Before we dive into an example, it's important to understand that the stock market is very difficult to predict. If you're trying to time the market with a majority of your assets, especially as you are close to or in retirement, you're setting yourself up for failure.You need an investment and income plan that works in both up and down markets. EXPLORING SEQUENCE OF RETURN RISK IN TWO INVESTMENT SITUATIONS There are three primary phases of investment planning. The first is accumulation, the second is preservation, and the third is distribution. Here is an example of a sequence of returns when you're in the accumulation stage of planning. Example 1: Accumulation with No Withdrawals (See pg. 19 in the Bucket Plan by Jason Smith) From a mathematical perspective both started with $100,000 and averaged 6% over 10 years. Neither are taking any distributions and ended up with $154,764. Once again, they aren't taking distributions and are in the accumulation stage.  In other words, the sequence of return risk does not impact the accumulation balance if no money is being added or taken out. The rate of return and market loss will impact the balance but whether the variations are at the beginning or the end does not. Example 2: Accumulation with Withdrawals (See pg. 21 in the Bucket Plan by Jason Smith) In this example both started with $100,000 and average 6% over 10 years but this time both are withdrawing $6,000 per year out for retirement income. Remember in these examples that they are the same average returns but one has the down years first and the other has the down years later. Ms. Lucky, who had up years first, finished with $105,544, while Mr. Unlucky had only $38,898! RATE OF RETURN CAN BE MISLEADING IN THE DISTRIBUTION PHASE When in the accumulation phase, you often measured investment success by rate of return. I'd suggest that while rate of return is important during the preservation and distribution phase, it isn't how you measure success. What is more important is avoiding the sequence of return risk. A question Jason shares in his book is, “When does -30 + 43 = 0?” While you may simply think this is bad math, it is completely correct with investing. When you lose 30%, you need to have a 43% rate of return to make your money back. If your investments are down 50%, you need 100% return! When in the distribution phase, your account balance is more important than rate of return. It may not seem realistic but lower rates of return mixed with downside protection can beat greater rates of return during the distribution phase. A POWERFUL STRATEGY TO FIGHT SEQUENCE OF RETURN RISK When you approach retirement (within ten years), in my opinion, it's time to start shifting from the accumulation phase and begin to transition into the preservation phase, which works alongside the distribution phase during your retirement years. When my team and I work with clients, we use a three-bucket income planning approach. We separate money needed now (in the next year), from money needed soon (in the next 10 years),

https://youtu.be/ZW_BQ9ag6VU The SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 (the “Act”), which notably modifies Required Minimum Distribution (RMD) rules, went into effect January 1, 2020. Below are the five things that many people need to know. This is just an overview to get an idea of the overall rules. The previous distribution percentage is as follows: Age % distribution 10           1.4% 20           1.6% 30           1.9% 40           2.3% 50           2.9% 60           4.0% 70           3.6% 80           5.3% 90           8.8% (Section 401, Modifications to Required Minimum Distribution Rules), if you leave a retirement plan (IRA, 401k, 403b) to your descendants (or receive an inherited retirement plan), they will generally no longer be able to take the proceeds over their life expectancies, rather the maximum deferral period will be ten years. Relevant details: This does not apply to leaving the retirement plan to your spouse. This does not apply to those who have already inherited a retirement plan. (opened before 12/31/2019) This does not apply to a beneficiary who is a disabled person, a chronically ill person, a minor child or someone fewer than 10 years younger than the original IRA owner. For minors, the exception only applies until the child reaches the age of majority. At that point, the 10-year Rule kicks in. If a trust is named as a beneficiary of your IRA, the SECURE Act may have further negative consequences. There are two types of IRA trusts, conduit and accumulation.  A conduit trust passes the IRA distributions, if worded correctly, to the IRA beneficiaries.  If you do not want your beneficiaries to receive your entire IRA after ten years, then consider an accumulation trust.   With an accumulation trust, the trust dictates how much the beneficiary will receive.  The downside of the accumulation trust is that the IRA distributions will be taxed at trust tax rates which are the highest income tax rates.  In 2019, the Federal income tax rate reached 37% at only $12,751 of taxable income.  For those needing an accumulation trust, a Roth conversion is essential.  However, you must have sufficient assets in nonretirement accounts to pay the income taxes on the conversion. (Section 114, Increase in Age for Required Beginning Date for Mandatory Distributions) there is a small, yet favorable, change. For those who are not yet 72, RMDs (Required Minimum Distributions) from retirement plans will now begin at age 72 rather than age 70½. QCDs (Qualified Charitable Distributions) continue to have a 70½ start age. (Section 106, Repeal of Maximum Age for Traditional IRA Contributions) there is another small, yet favorable, change. For those over age 70½ who have earned income you can now contribute to an IRA. In the spending bill itself, but not the SECURE Act, the change in the “kiddie tax” (basically tax on unearned income for a child under 18, or under 24 and a full-time student) that was made by the 2018 Tax Cuts and Jobs Act (TCJA) is repealed. Those earnings will again be taxed at the parent's marginal rate as they were previously rather than at trust tax rates. Unrelated to this bill, beginning in 2021 the IRS is changing its life expectancy table for the calculation of RMDs. To use just two examples, previously an 80-year-old using the standard table would have used a life expectancy of 18.7 years but in 2021 it will be 20.2. A 90-year-old will change from 11.4 to 12.2. Not a huge change. There was no change to the 50% tax penalty for failure to take an RMD, which could be very significant if distributions by the designated beneficiaries (DBs) are planned to be taken in the 10thyear but the 12/31 date at the end of year 10 is missed. An unofficial new term for the financial services profession is “Suggested Minimum Distribution (SMD).” The SMD is merely the account value on 12/31 of the prior year divided by the number of years left ...

Greg Fulton, President of the Colorado Motor Carriers Association, talks about challenging times for the trucking industry to get goods to the store to build up inventory due to panic buying. Matthew Durkin, candidate for JeffCO District Attorney, joins Kim to discuss community safety.  There is an agenda to reduce the prison population. Jason McBride examines RMDs—Required Minimum Distributions.  One provision of the CARES Act is the waiver of RMDs.   The post The Pandemic and Supply Chain Challenges appeared first on The Kim Monson Show.

Do you know how Social Security benefits are taxed? State income taxes? How Medicare premiums are calculated? Ever heard of NIIT? What your RMDs (Required Minimum Distributions) will do to your tax bracket? How about other lump sum distributions? What kind of taxes will your surviving spouse pay? How about the taxes you pass on to your kids? All of the above will be affected by distributions from your tax-deferred retirement accounts. In this book I'll share with you example after example of how your tax-deferred accounts can greatly increase your overall taxes and even Medicare premiums. The numbers, once they're laid out for you to see, simply cannot be refuted. In this book, you will see how the Roth is the most powerful financial planning tool ever created to increase your family's wealth. Unfortunately, most people do not understand the significant benefits of the Roth. They see it only as a pay-tax-now vs. pay-tax-later option. The typical analysis as to whether or not one should do a Roth goes something like this: “I expect my tax bracket to be lower in the future, so it doesn't make sense to do the Roth. Why pay a higher tax rate today to avoid paying tax at a lower rate tomorrow?” Makes sense, right? WRONG! I've seen what happens to clients when IRA distributions account for a larger portion of their income in retirement. Taxes grow and Medicare premiums increase, leaving retirees with less net income even though they have more gross income! Widows, in particular, can find themselves in a very bad financial position with limited options. The Roth, when understood and used correctly, can eliminate much of these higher taxes and premium increases. Now, in fairness, I'll share four reasons how the Roth can't help you any more than a tax-deferred account can. Not that these four reasons should dissuade you from going full-throttle with the Roth. But I feel it's important to show how the Roth can improve one's financial life and how it can not. My hope is that after you read this you'll have a much deeper appreciation of the how Roth IRA can enhance your family's wealth--tax-free--for generations. And that you will take advantage of it. --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Are you considering retirement within the next five years? If so, you already know that the clock is ticking. Hopefully, you're on the right track and planning as you should. Unfortunately, what so many soon-to-be retirees aren't planning is all the careful calculating and financial preparation it takes to retire strategically. This week on the David Lukas Show, our host David of David Lukas Financial talks about how too many people are risking more than they should or are comfortable with. Throughout the hour explains how following the five critical steps, listed below, can help safeguard your hard earned retirement funds and future happiness.     David's Five Critical Steps everyone should be taking before retiring: Know the tax efficient strategies that could help you save thousands of dollars in retirement How to claim your Social Security and avoid catastrophe Implement the successful strategies to generate income, after retirement, while minimizing your financial risk Take your RMDs (Required Minimum Distributions) as you should Don't leave any benefits owed to you by Social Security behind Interested in hearing David discuss all the important information above? Listen to the entire show today! Want to know about The DLF Retirement Advantage™ Process?  CLICK HERE! ----------------------------------------------------------------- David Lukas Financial is planning its next  Maximizing Your Social Security Course. You can call our 24-Hour Reservation Line at: 501-574-0677 to check availability for upcoming October classes. ----------------------------------------------------------------- The Guide to Social Security can help you understand how to keep up to 32% more of your money for retirement. Since you have a choice of when to start Social Security and also your individual or employer-plan qualified retirement money, can be coordinated to maximize your Social Security. Request your Free Guide To Social Security today! (Must be a resident of Arkansas) ----------------------------------------------------------------- Want to know more about how David Lukas Financial can save you money on unnecessary taxes and fees—call David Lukas Financial, (501) 218-8880, today to learn more about The WorryFree Retirement® process. David Lukas Financial is conveniently located right here in North Little Rock, Arkansas.

Too many unknowing Americans are putting too much of their retirement hopes, dreams, and funds right into the government's clutches. One simple misstep could cost them thousands. The key is to plan well in advance before withdrawing. According to Forbes, “some taxpayers over seventy-and-a-half can find themselves subject to a fifty five percent marginal income tax rate due to  a combination of RMD income, social security benefits, and capital gains.”   This week, on the David Lukas Show, David discusses just how important it is to know exactly what your 401k(s) will and won't be doing for you once you retire. Throughout the hour, David elaborates upon the specific entities that we, as potential retirees, can rely on. This includes entities such as: navigating withdrawals, estate planning, RMDs, predicting Wall Street, and what you can expect from CPAs and financial advisors.     Main points touched on in today's show: The five most common ways you can crater your 401k Implement intelligent strategies that can help you pay fewer taxes on your 401k Know the critical role RMDs (Required Minimum Distributions) play in retirement Put a stop to hidden fees and expenses Learn why your 401k and other retirement accounts need to be treated differently in your estate plan By diversifying the ways you pay taxes on retirement funds   *This installment of the David Lukas Show is filled with great information and tips on how you too can pay less taxes in retirement, entire episode here online today! You won't be sorry that you did! ------------------------------------------------------------------- Want to know about The DLF Retirement Advantage™ Process?  CLICK HERE! ------------------------------------------------------------------- David Lukas Financial is planning its next  Maximizing Your Social Security Course. You can call our 24-Hour Reservation Line at: 501-574-0677 to check availability for upcoming October classes. ------------------------------------------------------------------- The Guide to Social Security can help you understand how to keep up to 32% more of your money for retirement. Since you have a choice of when to start Social Security and also your individual or employer-plan qualified retirement money, can be coordinated to maximize your Social Security. Request your Free Guide To Social Security today! (Must be a resident of Arkansas)

If you're a Saver, saving and investing for retirement has been the easy part. In fact, it's second nature. But when it comes to knowing what fees and penalties you'll pay if you don't set everything up correctly when you're set to collect or even access your own money many haven't a clue.   This week on the David Lukas Show, David talks about all the ways you can be penalized when accessing your money too early or too late of your retirement date or age. Throughout the hour he expands upon each of the topics listed below... Claiming your SS benefits Enrolling in Medicare Withdrawing money from your IRA 401k withdrawal RMDs (Required Minimum Distributions) for both account holders and Inheritors Other trap doors and challenges The little know options you in fact have to protect your retirement To hear all of the excellent information that David Lukas of David Lukas Financial has about planning proactively for retirement, listen to the entire show today.   ---------------------------------------------------------------------- David Lukas Financial is now accepting reservations for the March Maximizing Your Social Security Course: You can call our 24-Hour Reservation Line at: 501-574-0677 to check availability and reserve your seat today for March's classes.   Upcoming Classes Available: Thursday, March 29, 2018 6:00 PM Friday, March 30, 2018 6:00 PM MORE DATES COMING SOON! HELD AT THE HAMPTON INN: 11920 MAUMELLE BLVD, MAUMELLE, ARKANSAS 72113   CLICK HERE TO REGISTER TODAY! ------------------------------------------------------------    The Guide to Social Security can help you understand how to keep up to 32% more of your money for retirement. Since you have a choice of when to start Social Security and also your individual or employer-plan qualified retirement money, can be coordinated to maximize your Social Security. Request your Free Guide To Social Security today! (Must be a resident of Arkansas) Also be sure to check out the upcoming Maximizing Social Security Classes taught by David and held right here in North Little Rock. To get more details and register for a class go HERE.  ---------------------------------------------------------------------- Want to know more about how David Lukas Financial can save you money on unnecessary taxes and fees—call David Lukas Financial, (501) 218-8880, today to learn more about The WorryFree Retirement® process. David Lukas Financial is conveniently located right here in North Little Rock, Arkansas.

Retirement is meant to be the period of calm after the rocky road of years of career(s) and earning. The actual act of retiring used to be fairly simple, back in the day. But now, future retirees NEED to know a multitude of things and require a specific gameplan to retire right—without penalty and most importantly WorryFree®.       This week on the David Lukas Show, our host David Lukas gives us listeners the ABCs of RMDs. Throughout the hour David explains what RMDs (Required Minimum Distributions) specifically are and why they are important to your overall retirement strategy.   Facts about RMDs discussed in today's show: What types of accounts are subject to required minimum distributions How to delay an RMD if applicable When the magical 10 year “penalty free” period of withdrawal starts  and ends for specific ages How much must be taken out, specifically, per applicable account How to prepare for paying taxes on your RMD(s)   What does the acronym ABC stand for? A: is for the aggregation of each tax deferred account B: is for beginning withdrawals C: is for consider your taxes   To hear all of the important information discussed in this show, listen to the entire episode today. The Guide to Social Security can help you understand how to keep up to 32% more of your money for retirement. Since you have a choice of when to start Social Security and also your individual or employer-plan qualified retirement money, can be coordinated to maximize your Social Security. Request your Free Guide To Social Security today! (Must be a resident of Arkansas) Also be sure to check out the upcoming Maximizing Social Security Classes taught by David and held right here in North Little Rock. To get more details and register for a class go HERE.   Want to know more about how David Lukas Financial can save you money on unnecessary taxes and fees—call David Lukas Financial, (501) 218-8880, today to learn more about The WorryFree Retirement® process. David Lukas Financial is conveniently located right here in North Little Rock, Arkansas.