Smart Money Questions

Staying Financially Sane During This Crisis

Coronavirus has already impacted all of our lives, be it through social distancing or through the stock market. How can you think strategically and stay level-headed financially?
 
Read more and get additional resources here: https://wp.me/p9B077-Ka 
 
Today's rundown: 
1:13 - What is our new normal going to look like?
3:58 - What’s happening in the market?
8:06 - Everyone wants to know, am I reacting the way everyone else is reacting?
11:25 - Where are you in your financial life?
17:03 - If you are contributing into a retirement plan, do not stop!
18:18 - What if you haven’t done any planning?
22:23 - Do not take your financial advice from the media.

Paying For College In Retirement

It is no secret that college tuition is expensive and many parents want to help out their children pay for a higher education. But is it worth risking your retirement? Today we will look at the factors that parents should consider when paying for their child's education. Especially for those parents that are near, or in retirement. We also answer a question from a listener who is looking to sell their farm for a little under a million dollars and does not know where to invest the money.
 
3:25- What do you do when your ready to retire and the kids need to pay for college.
5:53- How to prioritize saving for retirement and paying for college.
7:59- Matt gives a tip to save money for college. 
10:00- What to look for when picking a school.
15:30- What you need to analyze before entering retirement. 
19:48- How much long term care coverage is recommended.
26:28- Is the benefit payout an expense or an indemnity benefit? How will this affect retirement. 

Coronavirus and Protection Of Assets For Long Term Care

The outbreak and spread of the coronavirus has caused a bit of a panic in the market in recent weeks. We'll talk about how these events should affect your investments, short-term and long-term. We'll also take a look into some important strategies for protecting your assets from the state if you were to move into a nursing home.
 
2:40- How the market has reacted to the coronavirus and the history behind similar events.
3:39- There is going to be increased volatility during this time in the market, Matt explains how your investments are affected.
6:40- Markets go down, but it is important to not let fear drive financial decisions. 
9:02- What needs to be done to protect assets for long term care. 
9:58- Tings to consider before finding care and protecting assets.
12:15- Not all financial assets are the same, which means they need to be protected in different ways.
16:43- Matt explains the look back period the government uses when you start moving assets to other vehicles of ownership. 
 
 
 

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.