Downsizing, Old Policies & Portfolio Options

There are many misconceptions that surround the idea of downsizing your house in retirement. Many people think that they will be able to make a huge profit if they downsize, but that is not always the case. We will guide you through some other considerations to keep in mind before you make the big sale. We also discuss reevaluating an old life insurance policy, how much company stock you should invest in, and deciding whether to move your money into cash, or to keep investing.
 
Show Notes
 
2:45- Should you look to downsize when you retire?
5:15- The issues with downsizing and the importance of understanding the real estate market.
7:40- What you need to consider before making the move.
8:30- Matt breaks down what needs to be taken care of in order to have an early retirement. 
13:25- What to do with old policies and how to use the asset properly.
15:22 Matt answers a listeners question on how much company stock should you hold in your portfolio.
18:45- Matt explains deciding on moving to cash or continuing to invest is a question that has many factors for the individual to consider. 

How To Account For Emotions In Your Financial Plan

Most people like to think that they always make decisions based on logic and facts, but the truth is that emotions usually play a role for all of us in the decision-making process. Matt will share examples he has seen where emotions have influenced the thought process of individuals. Understanding the emotions that come from financial planning and putting the right strategies in place leads to making the best decisions. 
 Show Notes:
 
1:26- Peoples concerns are often times driven by emotion. Matt will break down the good and bad behind emotions in financial planning. 
3:34- Matt explains the different types of emotions people have when dealing with money. 
4:53- The emotion of fear is always around us. It is key to be cautious of fear and not let it take hold how we make decisions. 
8:54- Greed is an important emotion to identify and ensure it is not negatively affecting your financial planning. 
12:00- Loyalty to companies and family is an emotion Matt encounters that can has led people to make poor decisions. 
16:38- Matt states the importance of understanding your emotion and using logic to come to answers.
17:00- Strategically making decisions, knowing all the options and potential risks leads to the best approach to financial planning. 

Understanding Property and Casualty Insurance with Ted Wolfer

You’ve likely carried an auto and homeowners policy for many years and don’t think too much about it, but your property and casualty insurance is your protection from major financial disaster. We talk with an insurance specialist to get a better understanding of these policies and what we should be paying attention to.
 
Show Notes and Additional Resources: http://smartmoneyquestions.com/podcastposts/episode-113-understanding-property-and-casualty-insurance-with-ted-wolfer/ 
 
Today's Rundown: 
0:21 – Today we’re talking property and casualty insurance with Ted Wolfer
1:31 – Start by helping us understand what this insurance is?
2:09 – Understanding auto insurance and the requirements vs the add-ons.
5:34 – Are there minimums that are required for vehicles you lease or have a loan on?
6:30 – Understanding the liability minimums you might have seen on your policy.
8:55 – Here are the recommendations Ted and his office makes.
10:40 – The difference in premiums is usually very small.
11:29 – Something that confuses Matt on his policy.
15:31 – Understanding what’s covered and what’s not on homeowner’s insurance.  
14:13 – Again, premium increases to cover a much higher amount is around 5% 
20:22 – Explaining code enforcement and why it’s important for insurance policies.  
23:34 – What does an umbrella policy cover?
29:28 – Property and casualty insurance policies need to be evaluated on an on-going basis.
30:01 – How to get in touch with Ted to get more information or discuss policies.

3 Listener Questions About Investing, 401k, and Retirement

You never know what kind of questions or scenarios you’ll come across when working with clients. But that’s what makes planning exciting. Today we’ll pull three great questions that we’ve heard recently involving 401k rollovers, investing rental property proceeds, and the challenge of spending in retirement. We’ll go in-depth on each answer to show you how we approach each situation.
 
Full Show Notes: http://smartmoneyquestions.com/podcastposts/episode-112-3-listener-questions-about-investing-401k-and-retirement/ 
 
On This Episode: 
0:34 – The plan for today’s show.
3:07 – Question: I’m selling one of my rental properties in the next month or two and I don’t have any plans to buy another one. What’s the best thing to do with the money from that sale?
4:08 – The first thing to consider is your tax obligation when selling the property?
5:19 – What the IRS is looking at when calculating your taxes.
6:26 – Now what to do with that money. Here are some options.  
8:00 – This question reminds Matt of a past client. This is how it played out.   
9:58 – You want to understand your tax costs, much like you would for a 401k.
13:04 – Question: Are there really no tax implications for rolling over my 401k?
13:39 – First thing to do is reach out and see what your company’s policy is for transferring.
14:13 – How the transfer will actually work.                          
17:05 – What about an old 401k? Is it the same process?
18:18 – Question: Ever since I retired, I’ve had a really hard time spending money. Something about not having a paycheck makes me nervous.
19:38 – Matt’s advice to Jay involves a distribution plan.
20:24 – Look at your budget in these three categories.
21:27 – Five places you can generate income in retirement.

3rd and 4th Quarter Financial To-Do List

We’ve already rolled into the third quarter of the year and that presents us with a great opportunity to evaluate our portfolio. Giving your plan a check-up will help keep it on track headed towards your goals so use this checklist focus on the most important questions.
Check out the full show notes by clicking here.

Understanding Tax Laws Can Help You With Investing Decisions

A recent tax bill was signed into law in July 2019 and it serves as a reminder that understanding taxes is an important aspect to planning your retirement. Knowing how much of your money will be yours when you decide to access it will determine how much you actually need. On this episode, we discuss this tax law and answer a few questions sent to us.
Check out the full show notes by click here.

Early Retirement, NOT In A Lower Tax Bracket, & Defining Your Financial Security

We've got a few listener questions on the docket for today. First up, we'll discuss Abe's question about being forced into an early retirement. Should he get another job? What items should he address before he is no longer receiving a paycheck? We'll also answer Blair's question about tax brackets in retirement. What is the real outlook on future tax rates, and how should we prepare? Finally, we'll take a look at how you can define financial security for yourself.

Adam Quiney On Your Relationship With Money

This week we speak with special guest Adam Quiney, an executive leadership coach, about how your relationship with money can define your experiences as an investor and as a retiree. We'll delve into how that relationship is formed and how it then influences your thoughts and decisions throughout each phase of your life.

SECURE Act & Gifting vs. Inheriting

At the end of May, Congress passed the SECURE Act, which will create some major changes to qualified retirement accounts. We'll look into what those changes will be, as well as possible future implications. And later, Matt shares a story about a client that highlights the importance of understanding the difference between gifting and inheriting.

Roth IRA Follow Up And Inheriting Something I Don't Want

We received quite a few responses from listeners after the last episode, so we'll be following up on last weeks's topic by discussing Roth IRA conversions. We'll also talk about what to do if you inherit a piece of property that you don't want, and we'll learn about Stretch IRAs.