Smart Money Questions

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. 

Changes To Retirement Planning

Recently, there was a COLA increase of 1.6% for Social Security benefits. Matt will give his thoughts on the long term benefit of having a COLA increase, even though the percentage may not seem impressive at first. We will also discuss why working past age 65 is not so uncommon anymore and the importance of mapping out a plan with how you would like to spend your time in retirement.
Show Notes and Additional Resources:
Working Past 65 Article: https://www.cnbc.com/2019/12/30/why-retiring-at-65-could-become-a-thing-of-the-past.html
Retiring Abroad Article: https://www.foxnews.com/real-estate/12-affordable-places-retire
 
2:57- Learn how the COLA increase has a better long term benefit than you think.
5:00- Collecting Social Security early and how the increased income threshold could affect you. 
7:03- The IRS changed the contribution limits to qualified retirement accounts. 
9:44- The SECURE was passed and significant changes were made that will affect retirement planning. 
11:28- The implementation of the 10 year rule so could create new tax obligations for those who are affected. 
14:54- Find out why working past 65 is becoming more common.
17:40- What does an ideal retirement look like according to this client?
20:40- Matt explains what questions need to be answered before retiring abroad. 

Establishing Residency In A New State, Pension Problems & Consolidating Accounts

Today's episode will look at how you could possibly establish residency in a different state as part of your tax planning. We will also answer questions regarding what to do when you have a pension with no survivor benefit and how to consolidate your retirement accounts.
Show Notes and Additional Resources:
 
 
Today's Rundown:
0:28- Bring on the new year and take us back to Y2K.
4:11- A women in California died but was still enrolled in a cable contract leaving the early termination fee to her kids. 
5:30- President Trump changed his residency from New York to Florida which raises the question, should you consider this too?
6:20- Lets look at how tax planning can help determine where you should establish residency. 
7:23- How does income and estate tax factor into the planing?
10:15- What other factors should be considered before making the move?
11:07- The importance of sponsorship planning. 
12:30- What do when you will be receiving a pension. 
14:05- What can be done after a pension plan has been chosen. 
21:00- Why your accounts should be consolidated and how to organize them. 
23:55- A look at better organized accounts after consolidation. 

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.

Teaching Children Lessons About Money with John Lanza

Are you worried that your child is accumulating too many things? Do you wonder if you’re spoiling your child? John Lanza, author of The Art of Allowance, joins the show to give us an overview of his Money Mammals empowerment kit that teaches children how to share, save and spend. This is a great place to start if you want to lay a foundation for money management for your child.
 
Show Notes: http://smartmoneyquestions.com/podcastposts/episode-111-teaching-children-lessons-about-money-with-john-lanza/
 
Today's Rundown: 
0:29 – Introducing today’s guest, John Lanza.
1:10 – Give us the background on how you got this all started.
3:31 – How young can children be to start learning these smart money basics.  
5:12 – Has the teaching process changed at all as we move further and further away from physical money?
6:57 – It’s important to children to see the transaction happen with the money in your hand so they can see that money has to go in.  
7:38 – At what age should an allowance start and does it still need to be tied to something like chores?
11:53 – At what point do you want the budgeting lesson to begin?
15:27 – How does the conversation go in regards to the sharing side of money?
17:50 – Do you talk about how giving actually makes you a happier person?
20:18 – Sharing and giving is an important lesson to learn early on.   
22:10 – What’s your relationship with credit unions?
25:21 – How to find this program Money Mammals.
26:17 – John also has a podcast.

Want to Know How We’re Investing Our Money?

Have you ever stopped to think about what your financial advisor invests in? You get a lot of advice and guidance but do they actually follow their own suggestions? We’re going to pull back the curtain and tell you how we manage our entire portfolio for the three businesses.
 
Show Notes: http://smartmoneyquestions.com/podcastposts/want-to-know-how-were-investing-our-money/
 
Today's Rundown: 
0:34 – What we’re doing on today’s show.
1:10 – In the news: Local Pennsylvania couple facing a felony charge after spending more than $100,000 that was accidentally deposited into their bank account.
1:59 – This came up in my office recently from a client: I read an article that suggested I ask my advisor what they invest in.
2:47 – So today, I want to go through this question and discuss everything we are involved with in our office.
5:56 – Where is our emergency fund.
6:44 – Our tax money is also sitting in another bank account.
7:17 – We also have money invested in our three companies.  
8:54 – Let’s talk about investable assets. First our Health Savings Account.
10:55 – Maggie and I also put money away into an after-tax brokerage account that is invested in the same funds that I advise clients to invest in.
13:01 – We have established a company 401k plan, both traditional and Roth.     
15:27 – After investable assets, here’s what else we have. Our legal documents are in place and recently updated.
18:18 – On a quarterly basis, we review the financials of each firm.
18:56 – Looking at tax-planning opportunities as well.
19:58 – This is a look at what we’re doing and how we’re doing it.
21:23 – You might not be a business owner but hopefully you can get a better idea of what you should be considering.

Incorporating Giving Into Your Retirement Plan with Arlene Cogen

So much of our focus during retirement planning is saving money to protect ourselves and provide for our family, but there’s such a great opportunity to improve our lives even more by giving to others. Not only does it improve the lives of others but it also creates financial benefits for your portfolio. Arlene Cogen, a philanthropic leadership consultant and author, joins us to discuss this important topic.
On this episode:
0:26 – Today we have a special guest on the show, Arlene Cogen.
1:21 – Arlene shares her background on how she got into Philanthropic Leadership
3:55 – She wrote the book ‘Give to Live’
5:19 – When people think about giving, many feel they can’t incorporate that into their retirement.
5:53 – The idea of giving while you’re living.
6:49 – There are studies that show philanthropy provides real joy to our lives.
10:16 – What are the strategies to consider if you want to give while you’re living?
12:18 – Advantages to having a charity listed as a beneficiary.  
13:54 – Some states have inheritance taxes.
14:40 – How to endow an annual gift.                                   
17:18 – Understanding charitable trusts.
21:00 – Multi-generational gifting.
26:37 – Personal reflection is a part of her book and it’s something we should be doing.
29:16 – The purpose of our money.
30:02 – Wrapping up the conversation.
Show notes and additional links: http://smartmoneyquestions.com/podcastposts/episode-109-incorporating-giving-into-your-retirement-plan-with-arlene-cogen/

Financial Questions You Need to Ask Before Getting Remarried Later in Life

With 50 percent of marriages ending in divorce, there’s a good chance you or someone you know is going to face the choice later in life to remarry or stay single. Many things will factor into that decision but understanding how your finances will be impacted is a significant part of that discussion. These are the questions you need to be asking.  
Today's rundown:
1:03 – The backstory behind today’s main topic.
4:31 – Here’s the question I was asked last week.
5:40 – These are the initial questions that I asked her to get a grasp on all the assets and expenses.
8:00 – For those that don’t know, I’ve been through this same situation.
9:17 – Here are some of the reasons you would not get remarried.
12:06 – A very important thing you have to figure out is what debt situation am I walking into and will I be assuming responsibility for this debt.
12:39 – Let’s talk about the idea of estate planning. Each option results in distinct differences.
15:31 – Let’s talk specifically about where your assets are – IRAs, 401(k)s, etc. How do taxes impact these?
17:02 – What if we want to give all our assets away and we are single versus married?
19:42 – Recapping everything we need to be asking.          
21:55 – Once you go through this process, don’t stop. Create the plan and follow through with it.
Get the full show notes and additional resources by visiting our website here: http://smartmoneyquestions.com/podcastposts/episode-108-financial-questions-you-need-to-ask-before-getting-remarried-later-in-life/