Podcast

Episode #30: How To Take Tax-Friendly RMDs

Friday, February 1 2019

“RETIRE WITH INTEGRITY” PODCAST

The Principle:

Required minimum distributions are a reality of retirement, but there are ways to take them in a tax-friendly manner. Brian explains.

(Click the featured times below to jump forward in the episode)

Honest Takes:

00:16 – Searching For Tax-Friendly RMDs.  

  • Required Minimum Distributions (RMDs) are an inevitable fact of retirement. For those of you not familiar with RMDs, they are the minimum amount the government requires you to withdraw from your retirement accounts once you reach the age of 70 and 1/2. Basically, the government lets you grow your money tax-deferred for a time, but they eventually want their piece of your wealth. Once you take your RMD, the government can tax the money that’s withdrawn if it comes from a tax-deferred account like an IRA.

00:36 – Ways To Make Your RMDs More Tax-Friendly.  

2:40 – What Is A QCD? 

  • Let’s say your IRA is with Fidelity. When the time comes to take your RMD, write a check for that amount, and send it from Fidelity directly to your church or organization of preference. In turn, the government will count that donation as your RMD for the year. This is what’s called a qualified charitable distribution. In turn, you’ll also be given a tax deduction. You could save 30 percent in taxes, but you wouldn’t save that 30 percent had you simply donated from your checkbook.

00:56 – Why Can’t You Just Give From Your Checkbook?

  • The new tax code raised the standard deduction limit. It’s now more than $24,000 if you’re married filing jointly. Basically, this means that your standard yearly donation would have to be greater than $24,000 to receive any type of tax deduction. A QCD lets you bypass that stipulation while using your RMDs to your advantage.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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Episode #29: The Trouble With Roth Conversions

Thursday, January 24 2019

“RETIRE WITH INTEGRITY” PODCAST

The Principle:

Roth conversions might not be for everyone. There is no one-size-fits-all retirement strategy. Discover how Roth conversions might impact your retirement.

(Click the featured times below to jump forward in the episode)

Honest Takes:

00:31 – Ed Slott Warns Roth Conversions Aren’t For Everyone.  

  • Ed Slott is an expert on IRAs. In an interview with Morningstar, he suggested Roth conversions aren’t the best investment strategy for everyone. He suggests if you’re over 70, you might not get the benefit of a Roth conversion in your lifetime.

2:03 – The Problems With A Fragmented Financial Industry.  

  • To determine whether certain investment strategies make sense for you, you need to see how they’d affect the other areas of your financial life. To use an example, Roth conversions can be effective, but they usually come with large tax consequences. To determine whether a Roth conversion makes sense for you, you need to consider the tax implications alongside the investing implications of this move. Unfortunately, we tend to look at one piece or another of our investing life, rather than trying to see each piece as part of a bigger puzzle.

2:41 – Roth Conversions And Required Minimum Distributions. 

  • Brian suggests a Roth Conversion can lessen the amount you’ll have to withdraw at age 70 and 1/2 in required minimum distributions. This in turn can in fact lower your tax bill. He uses the story of an existing client to illustrate this concept.

5:39 – IRAs Are A Debt To The IRS.

  • IRAs function as tax-deferred accounts. This means while your contributions to these accounts won’t be taxed up-front, the IRS will be waiting to collect their cut once it’s time for you to withdraw your investments later on.

7:11 – Invest For The Future.

  • Perhaps you’d like to leave an inheritance for your children or grandchildren. If so, you need to consider the tax implications of your investments now. Otherwise, your heirs could wind up with that hefty tax bill. Tax planning should absolutely factor into your legacy planning process, and that’s why it’s important to work each element of your retirement together into a comprehensive plan.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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Episode #28: Bull Or Bear?

Thursday, January 17 2019

“RETIRE WITH INTEGRITY” PODCAST

The Principle:

With recent volatility on Wall Street, pundits have declared it’s time for a bear market. Brian discusses whether the long bull market is over.

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Honest Takes:

00:31 – Investing Guru Jeffrey Gundlach Warns Of A Bear Market.  

  • Jeffrey Gundlach is an investor worth about $2 billion. He appeared on CNBC to warn other investors the ten-year bull market has come to an end.

1:02 – What Does Brian Think Of Gundlach’s Argument?  

  • We should note he’s truly just another economist with an opinion. After all, you can’t time the market. To determine whether we’re in a bear market, you really need to examine the overall health of the economy.

1:36 – Indicators Of A Bear Market In 2008. 

  • In 2008, and really in 2007, investors weren’t buying homes and unemployment was headed upward. These economic factors are key indicators of a bull market.

2:08 – Business Owner Confidence In The Market Is Huge.

  • Business owners are often telling of a bull or bear market. If business owners aren’t making money, they aren’t going to invest. Instead, they’re going to focus on investing in their business because they have to keep their doors open.

3:43 – Are We In A Mess?

  • Politically, we’re certainly in a mess. Brian outlines his frustration with what’s happening in Washington. However, this doesn’t necessarily mean we’re in a bear market. It’s too early to tell what the economy is going to do.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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