Smart Money Questions

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/

So When is the Next Market Crash Happening?

It’s a question we get a lot from clients. Everyone has enjoyed the long run upwards in the stock market but now we’ve moved into the stage of worry and pessimism. But it’s not your fault. Headlines always make you fear the worst, and that’s why we’re going to address the elephant in the room and how to be prepared for the worst.
On this episode: 
0:36 – We’ve been getting questions about the next market crash for a little while now.
3:17 – Question from Elizabeth: I’m retiring in 6 months and I’m worried about what will happen if we have a market crash before I reach the finish line.    
4:03 – When is the next market crash going to happen?
5:14 – A way to take advantage of long-term market returns is to have different buckets of risk.  
5:43 – My recommendation on when you should start looking and planning your retirement income.
7:24 – Seems like 8 out of 10 people want to know when the next crash is coming.
8:25 – What history tells us.   
9:45 – You have to be prepared for it by structuring your plan correctly.  
12:29 – Explaining the different types of risk buckets.
13:53 – We ask people if they understand what investments they’re in and how much risk is involved? 
15:41 – A story about an old friend who reacted to the drop in 2018.
18:04 – Recapping everything we’ve talked about.  
Get the full show notes and additional resources by clicking here. 

Empowering Women in Financial Planning

Matt will be speaking at an event on the topic of empowering women in financial planning and it got him thinking a lot about examples in his personal and professional life that tie into the topic. This episode will run through statistics you need to know and the most important investment items you need to have in order. 
Click here to see the full show notes.

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.

Unasked Questions About The Stretch IRA

Do you ever wonder what you might not even know to ask about? For instance, do you know what a stretch IRA is and how it works? Or how to designate beneficiaries and joint ownership over your accounts appropriately? Matt talks through the ins and outs of these things, answering your questions before you ask them.
See the full show notes here.