TDA, Josh, Margaret discussed on The Financial Quarterback

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If you're in your twenties and thirties so next up Margaret your own with Josh Chillin skew the financial quarterback go ahead. hi here's the question thirty years ago my husband and I were gifted three hundred shares of a stock which are now. wrong to six hundred share I want to give my children. of three hundred shares each to get from there twenty one and twenty two. that a wise idea. well you would. what you have to keep you know the loan with the tax complications when you give. your gifting the lower basis. it would be for better for you to hold on to it. tell you die and then it would pass tax free to them. and just make it Teo de payable on death. unless you want to get rid of the stock is only stop. but from a tax perspective. when you gift you your gifting your basis so let's say you bought it for ten thousand dollars an hour for the hundred thousand if you die and leave that to your children. then there's a step up in basis they pay no capital gains tax on that. if you give them your then gifting them your basis. now we also want to get a CPA involved because the issues of the multi generational gifting but it seems better if you just keep it in your name and leave it to them when you die that makes sense. if you want to keep those stocks. any other questions on that. nope that's good. yeah so we may question we'd be happy to help you but you know what it will give stock I know why they do it. if the whole idea is to give shares to your kids why would you gifted taxable. you can give the tax free you know I mean. I don't know why people do that I mean if I get it it's sentimental and you're giving it to them we're live you also say Hey I'm not going to catch this money I'm dedicating it towards you now the only reason gift would be. Medicaid planning if you go in a nursing home. but it may be better to have some type of insurance policy for that. then to pay all this tax you know due to a. a sale of stock via gift. so that would be my two cents any other follow up to that no thank you very much wonderful a question keep the calls coming folks if you have questions on stocks bonds new please mutual funds. what ever question you have. no question is a dumb one except the one that you do not ask. so call us now. with your questions on any and every financial topic we're here for you we're talking a lot of financial regrets. in. the biggest financial regret the data is suggesting according to Brian magic. that Americans most regrettable financial decisions stack up to focusing on the near term. at the expense of the long term. building a thoughtful budget balances these two things alone Americans to afford the occasional luxury day. without dragging down their credit score or quality of life in the future. the data also shows that it's possible for people to recover from living beyond their means and spending more than they say. notice that the dentist suggests it's possible. that's give me paid all. can scan start saving for retirement now and work to increase contributions as your income growth. millennials interestingly have the basics down when it comes to managing their money but there's still room for growth. millennials surveyed seem to internalize the idea that being financially responsible is the key to stability and security. the top five piece of advice millennials followed led to the greatest positive financial impact CERN is the bedrock of a smart financial plan. so this is the top five advice for millennials financially number one don't live beyond your means. number two build a budget. and stick to it as strictly as possible. you this I don't know many really successful people now who stick to their budget. it's like one out of a hundred that I meet with and I'm with a lot of people. number three build an emergency fund I I I believe you should stick to your budget I'm just saying I don't see the people following usually financially successful people have higher incomes and they just say the percentage and the bills. number four and five. financial tip to live by. based on a survey of millennials when we return to first Bernard. the George yours Bernard. go ahead you're your own with Josh Chillin ski the financial quarterback good morning I have a question mark my wife the issue in the future she passed away here this retirement on so sorry. okay that's the year ago compare no I received everything was process and I recieved with feeding the fun. I wanted goal is two fold one is called a cue PP this is a qualified pension plan the other one is TDA. I opted to loom over the entire amount to my account I was told I could do that because it's a different plan. however I got a call from the bank of my bank. taxi to come in because I think they're telling me. I cannot. ruled that over into my comment I we accounts. I don't understand you know that seems wrong to me. yeah it seems wrong to me as well you're certainly allowed to. when your spouse passes with a TE DA your Q. P. P.. are you generally lose the fixed rate of interest. although we we have a lot of people with the city plan optimize the fixed interest do tax planning we could certainly help you with that but yeah you're able to roll over into spells will roll over now maybe they checked the box wrong and they put traditional Iran so the spousal rollover she got to make sure you do the form right with the TDA. and then you got to make sure you do the form right we use fidelity. for most of our rollovers we also relationship with a trust can be America ease each trade platform you trade as well so if you want to help with low cost investing give us a call eight eight eight nine eight Josh but yeah you should be able to roll over I don't know why. there's an issue there. any other tidbits of information that you can give me because doesn't seem right. what just quickly you mentioned all of the above should check both both both normal. yeah I mean that might be what somebody check the box wrong or something I don't know. I mean I'm looking at the form right here Q. P. P. direct roll over application for lump sum Q. P. P. death benefit to an inherited IRA this is from the teachers retirement system website of the city of New York we have tons of you calling us for our TRS TV a review. because a lot of people realize when you leave that TV a it's all taxable your heirs. so by leaving it to an inherited IRA rolling it over to an inherited IRA then you don't have to take our bodies to your seven and a half. because I had in it have an existing IRA we with the banks is there a particular I don't really yeah a little bit of that. see you're allowed to do that and that could be a very big mistake well I I wouldn't I wouldn't go to them. I mean you can if you want to come to get a second opinion when you have a spouse who dies you could do the two things you could create an inherited IRA which is probably what they're saying. or you could make the rollover up part of your irate is that makes sense. get the US under seventy and a half most likely you should rolled over to your inherited IRA. unless you're under fifty nine and a half and you need the money there are some instances where you want to keep it in inherited IRA that for you generally sounds like spells arteries would go. I don't know why they're not doing it. so if they make it an inherited IRA then the rules don't apply then you got to take your knees every year how old are you. I'm seventy. so you're seventy seven of taking on the anyway well how old your how old's your wife. she was seventy two when she passed okay. so it seems better to make it your own IRA. but in some cases it's better to make an inherited IRA. and that's why you want to call city today Andi Josh. for the what to do with my rollover IRA review okay I any other questions no because I have to go to them on Monday at the foot there we see the fun but it seems like they're telling me they can't. date this call tell you to come in because I guess the thing I can't put the funds to my right now I don't know why so I'm going to see the you know the band has to be a good investment there's the that I get to the little man in the back they live. the gentleman in the corner would love to help you. come and help me yes Sir we we would love to help you. but not for some reason I don't think it's that it sounds like a lot of help to me. I I would get a free review okay. so I didn't do this is because I have to go there okay hold on the funds and then out okay I'll come to you I'll come back to you yeah yeah but you can try to make it a spousal IRA can I rain your name if a lecture not an inherited IRA. you know maybe they wanted in a different account so can be separately co mingled maybe they give you a free toaster your available account maybe it's like. of the bank scandal where they had people open up like thirteen accounts for different reasons you know it seems an odd thing but. you know if you can make it a regular Iranian your name. call the spousal rollover I'm looking right at the form from the TDA. that would probably be advisable but before you would have rolled over I would have said I will I would have called the TDA in the arrest to see what are you giving up because anytime you want to do a rollover we examine for fees expenses all that stuff okay. so thanks so much for the call we really appreciate it. okay did we break at the timers poster okay I get a break now so we'll be back with we got a ton of calls call now one eight eight eight nine eight eight Josh if you want an obligation financial review eight eight nine eight eight Josh and pick up my new book on Amazon the retirement reality.

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