35 Burst results for "Roth Ira"

"roth ira" Discussed on Retire South Shore Radio

Retire South Shore Radio

08:24 min | 2 weeks ago

"roth ira" Discussed on Retire South Shore Radio

"The market, it drops, right? And it's, let's say, extreme example. It drops by 50%. So now your stock has gone down by 50%, which means your account's gone down by 50%. It doesn't mean that you want to necessarily sell it because you believe that it's going to come back in the future. Well, you're still only able to convert that $20,000 in your tax plan, but now that $20,000 represents twice as many shares in that company. So you be characterize it essentially at a 50% discount and then write it back up in the Roth IRA, completely tax free. I hope people are really paying attention to what you just said. That was something that really opened my eyes what you just talked about. And the strategies that are involved in shifting and converting, but knowing that this is something that has long-term consequences. In this case, positive consequences doesn't look positive on the outside, but it does have possibilities on the inside. Yeah, absolutely. Listen, I say this weekend and week out on the show and webinars, seminars, and meetings with people who are new to the office who haven't become clients yet, and I said, listen, whoever you're paying to help you with your money, and you're paying someone, right? Whether you have a financial adviser, whether you have a broker, whether you went directly to a company, whether your money is sitting just in the bank, somebody is getting paid for that money to be positioned there. Even if you have it in a checking account, if you think about it, you put it in the checking account, you're making next to no interest. You know the bank is lending that money out. So they're getting paid on it. Whoever is helping you with your money, they should be proactively reaching out to you, not you reaching out to them saying, what do we do? They should be reaching out to you saying, this is what I think is the best strategy. And that's what we do with our clients. So Roth conversions are part of the conversation and today's show is just around that. But I think everyone should look at the big picture of what's the best strategy for them. Because it might not be, hey, let's try and Roth convert all of this money. And there's some people out there who are saying, well, let's get it all into Roth IRA. Well, that might not make sense because maybe it makes sense to do half of your money over a long period of time. So when you do hit required distribution, you're dropping yourself into a lower tax bracket anyway because you don't have as much traditional IRA money at that point. So again, not to say that Roth is the be all and end all, but it's a really good strategy in the right situation for clients. And when we do our all hands analysis, we see if it makes sense to do that. Because some people are hitting right up at the limit of their 12% tax bracket and we don't necessarily want a Roth convert because the next tax bracket is 22%. But we also talk to people a lot about your married filing jointly. You've got a traditional IRA. Maybe you've got a great pension, a couple of really good social security. And you don't really think you need any distributions from the Roth. So you're just going to wait? Well, unfortunately, over time and having done this job for a long time, 25 years plus. Sadly, clients pass away. And when somebody passes away in a couple, the survivor is a left without their spouse, which is tragic B generally the lower social security drops away and see, now there are single finer. So there are single filer different tax rates for a single fighter than a married couple filing jointly. And they're left in a situation that if they're over 72, they have to take money out of these accounts, now they're paying higher taxes, potentially on that. So getting ahead of it leaves you or your spouse in a much more comfortable tax efficient situation. If you have particular questions that have been gnawing at you and if anything that we're talking about today raises a question in your mind and you'd like a quick answer and perhaps more in depth answers after that, you can start the process with a 15 minute no obligation strategy call to south your retirement services again. Set it up on the very easy to figure out calendar grid at retire social dot com on the phone from home a very quick opportunity and a very important one to get those questions answered the 15 minute no obligation strategy calls set it up, go to retire at south shore dot com. I guess in summary and we still have a ways to go here. In summary, the answer to the often heard question, am I going to be okay in retirement, especially now, especially during these times? Am I going to be okay? It's a very vulnerable time for a lot of folks and it's psychologically very difficult for most people to not work anymore, right? They've done something for 30 years, 40, 50 hours a week, all of a sudden they have a party, a cake, somebody gives them a gold watch, maybe. And on a Monday they're retired. And that's a very difficult mental shift for folks. So to add the stress of amygdala have enough money, am I going to be okay? Can be overwhelming for a lot of people. And maybe over the last ten, 12 years with the exception of the last two years, because the market has such an incredible run, people aren't that worried about it. They're like, oh, I'm just making money hand over fist. I have clients that were working with us and coming into us that were making more money in their investment accounts than they were in their salaries. But times are different now. You know, things have changed in the world. And I think things will continue to change my opinion. I don't think we've seen the bottom of this. That's nerve wracking for folks who are essentially going into what they would call a fixed income, fixed incomes are a little bit different than what they used to be where I told you my dad worked for this, which I know sounds stereotypical of an Irish person, but the Irish social security and a pension plan. And there wasn't really a lot of choices, but now there's so many choices to so many different financial instruments that you could potentially use. And I think up until recently, the financial world has done a really bad job. This is my opinion in educating people on how to spend their money. It's starting to evolve now because I think they realize they have to move in that direction because there's so many people who are actually starting to use the money. This is how we've always counseled people in a non sexy way. It doesn't, it's not doubling and tripling your money. It's how are you going to be okay? How are you going to make sure that you have enough money? And how we do things like that is stress testing people's accounts, stress testing their portfolios, looking at all of the what if scenarios. What happens if you lose money for three years, how would that impact you? What happens if inflation is 7 and a half percent for the next 9 years? I know it's more than that now. But what happens if that happens? What happens if somebody gets sick? What happens if somebody passes away? Do you have the ability to ride that storm through? And utilizing for a portion of it, Roth IRA, getting rid of the taxes and having a bunch of tax free money, it doesn't matter where it's invested. It's just tax free. That can also add to the bottom line. I think it's obviously really important to make money with your money, even in retirement, but it's equally as important to navigate the tax code because that's making money as well. I mean, missing opportunities and saying, gosh, I wish I'd done that. That's unnecessary if you have the right people helping you. That is, that is the ultimate expression should have could have. You don't want to be in that situation. And you don't think the point is you don't have to be. And we've said this time and time again, everyone has an estate. Everyone has something that they can use in their later years. They've worked for it. And don't sell yourself short and don't whatever you do, wait to the last minute. And that's easy for a procrastinator like me to say. But seriously, don't wait, get it done today. And to breathe easier tomorrow. Couldn't agree with you more. I mean, I think there's a lot of people who listen to the show and we've had people call the office and they're like, I don't know if I want to make any changes because of the way the market is right now. But you don't have to make any changes. You can still build a strategy and I think I had mentioned a couple of minutes ago where if the market is down and you've lost money on your account, it doesn't mean that your account is bad. It just means the market is down. Look for an opportunity. Look for something that you can do when the market is not performing and not making money. Nobody cares about, I shouldn't say nobody cares, but people, when they're making money, they're not as concerned about things. But when they're losing money, they're always looking for what should I be doing? And I don't mean find the next great thing that's bottomed out that's going to make you a ton of money when you put it in there. But if you have IRA money, maybe it's a smart time to start paying taxes on some of that money while the accounts are depressed. You don't have to sell the holdings to re characterize

Roth
"roth ira" Discussed on Retire South Shore Radio

Retire South Shore Radio

08:42 min | 2 weeks ago

"roth ira" Discussed on Retire South Shore Radio

"As a safety measure. Yeah, I bring up a really good point because when people think of a balanced portfolio, most of the time people are thinking of, oh, well I have a nice balance of stocks and bonds. We look at balanced portfolios from the perspective of not only how your money is positioned from an investment standpoint, but also the tax qualifications of your money. So if you have some traditional IRA, some Roth IRA, some brokerage you can't, some money in the bank, some money in savings and CDs and so forth. But different tax qualifications then you can chip away at each of those accounts on an annual basis to try and minimize your lifetime tax bill. It gives you more control over how much taxes you're going to have to pay in retirement when most people that we work with while they're working their W two and they don't really have control over what their tax bracket is going to be. So if you prepare ahead of time, you have much more control over what you're going to pay when you're going to pay it and ultimately how much money you're going to leave in your pocket. I can't believe we've gone this long in the program without the B word mentioned the buckets. You know you're thinking it. Absolutely. I was doing a presentation last week and I must have said buckets of million times I figured if you were in college, it would be a great drinking game. Every time Marx says, I just think that that's the way it should. People should be thinking about positioning their money. And too many people, as they get closer to retirement, their brokers are saying, let's just get more and more and more conservative with all of the money. And if that's comfortable for you, we'll have at it, but we look at it from the perspective of, you grow your money for 2030, 40 years, make contributions put away what you can. And then you retire and let's say you retire on a Friday and on a Monday, you don't need a 100% of your money that day. I mean, if you do, like I said, the other 9th, you didn't save enough money if you needed all that first year. Unfortunately, you didn't save enough. But for most folks, they've saved money, they have social security. They may have a pension plan, and they need some money from their pool, right? From their life savings from their nest egg. But we try to bucket things out and position the money that you need today to be extremely conservative, if not cash, if not savings accounts. And then as you go out further and realistically look at it, while some of the money I don't need till next year, 5 years, ten years, 50 years. And so on and so forth. And the money that you don't need for a longer period of time, make that money work harder. It doesn't mean tie it up. It doesn't mean it's not available to you. But if you have all your eggs in one basket, then ask it has a hole in it and money goes down because the market drops. Well, you've probably still need the income, but now you're drawing the income that you need from an account that's losing value. And that to me is the kiss of death. You know, taking $3000 a month from an account that maybe that $3000 distribution was worth $3300 a week ago. Well, you just lost that $300. You realize that loss, and you'll never get that money back. The pressure that you put on your money if you're distributing income needs on a monthly basis from an account that's losing value, can have a detrimental impact to you actually having enough money and that's what everyone wants, whether your number is $2000 or $22,000, nobody wants to have to worry about running out of money. Everyone wants to know they're going to be okay. So by using buckets and segmenting money out, if an account loses value because you still will be in the market with that account, you just don't take a distribution from that bucket. Roth IRA information continues after this break along with other important issues to help you gain confidence in retirement. We'll be right back. When it comes to making key decisions about your retirement, education is so important. So you're invited to register now for an upcoming free seminar on taxes in retirement. Sponsored by the all hands analysis team at south shore retirement services. A host of taxes and retirement seminars upcoming September 20th at the inn and spa in Plymouth that starts at 6 p.m., then on September 27th and 29th, each of these will take place at davio's Italian steakhouse in Braintree at the south shore of Plaza, and these two are again at 6 p.m., very convenient and accessible locations plenty of free parking and refreshments are served. And you'll have an opportunity to meet representatives from south shore retirement services and learn more about such a key issue, taxes in retirement, register now online at retire south shore dot com. That's retire south short dot com. You can't get a second opinion from the person who gave you the first. That's especially true when it comes to your retirement. You deserve sound advice from qualified professionals, and that's what the all hands analysis team at south shore retirement services is all about Mark roulette, founder and president of south shore retirement services. Nobody should have to worry about running out of money in retirement. Our approach is simple. Build a strategy that can give you consistent income while allowing your money to grow while times are good. Consistent returns are critically important during your retirement, but I would argue that tax management and tax strategy is equally as important. It's not just about reducing your tax bill this year. It's about minimizing and being smart with your total lifetime tax bill. And that takes preparation. Schedule your free 15 minute strategy call today. Visit retire south shore dot com. That's retires south shore dot com. Investment advisory service is made available through AE wealth management LLC AEW M AEW M and sells your retirement services are not affiliated companies. Hello, this is retire south shore radio. I'm Jordan rich with Mark roulette, the founder and president of south shore retirement services, beautiful office in hingham, Massachusetts, but clients from all over with the ease of communication these days. It's really a snap and marks helping a lot of people as is all hands analysis team. Now we've been talking about Roth IRAs and the benefits and some of the things to be aware of. Now, what about the Roth conversion process? That's an important issue. Yeah, I mentioned before the break, you know, there's a lot of limitations to contributing to a Roth IRA. You know that you're only allowed to put a certain amount of money in once you start earning over a certain dollar figure. You can not use Roth IRA anymore, and then when you stop working entirely, you're not allowed to contribute. But Roth conversions are different, where you already have existing IRA money, you can take a portion or all of that money, and convert it, re characterize it to a Roth IRA, and there's no limitations to that at all. You can be making a $1 million a month. You can not be working at all. You can be under 59 and a half. You've got to watch out for that if you're under 59 and a half, but you could be under 59 and a half and still convert from a traditional IRA to a Roth IRA. Why would you want to do something like that? Well, if you have, for example, let's say you're in the 22% federal tax bracket, but you have $20,000 in that tax bracket before you go into the next tax band. Well, maybe you want to utilize that taxes are really low right now. I think the general consensus is the taxes are going to go up in the future. So take advantage of an account that inevitably is going to be taxed at the lowest probably tax rates that we're going to see for the next decade or so and re characterize that money over into the Roth IRA. The reason I mentioned be careful if you're under 59 and a half is that if you use the money that you're converting from a traditional IRA to a Roth IRA and you take the taxes that you have to pay because you still have to pay the taxes on it from that IRA, that's a premature distribution, right? If you're under $15 million. So a lot of the clients, even when they're over 59 and a half, we say to them, listen, you've got money sitting in the bank, you've got cash, savings, whatever it might be. Let's use that money to pay the taxes on the re characterization so we can push more money into the Roth IRA. So if you're under 59 and a half, you can do the same thing. Another huge advantage of doing something like that, especially in light of what's going on in the market right now is if the market is down and you re characterizing some of your IRA money over to Roth IRA, you don't have to sell the holding. You just move it in kind, right? So hypothetically, let's say you are that person who's going to convert $20,000 a year, let's say you build a strategy over the next 5 years. $20,000 a year of your IRA money. And let's just take it a step further and hypothetically say your IRA is all invested in one stock just because it's easier to explain. And whatever that stock is, X Y, and Z company. And you love the company, it's a solid company, your people who are helping you with your money say it's a solid

Roth Mark roulette south shore retirement service inn and spa davio's Italian steakhouse Marx AE wealth management LLC Jordan rich Braintree Plymouth hingham
"roth ira" Discussed on Retire South Shore Radio

Retire South Shore Radio

08:06 min | 2 weeks ago

"roth ira" Discussed on Retire South Shore Radio

"Tax increase. So a lot of people are kind of wisely looking at trying to optimize what they have now, meaning that optimized low tax rates that are out there right now and what to do and not that this is the greatest thing since sliced bread. But in the right situation, the proper use of a Roth IRA, which I want to talk about a bit today. Can have a really big impact on what you're going to put in your pocket ultimately. We're going to talk about the Roth in various aspects. All I can say is kudos to the government for putting it into place when they did many, many years ago, because it has been an outstanding vehicle, but it does have many, many uses. And there are many questions that our listeners have about converting and about required minimum distributions, things like that. So we're going to do a primer. Don't worry, folks. Nothing that will make your hair hurt. Mark is very clear and concise. But give us your sense of where we are with Roth and let's do the interview. I want to talk about the basics and then maybe go into a little bit more slightly more complicated ways of utilizing the current tax codes that we have and you know and we say this at the beginning, middle end of every show I can't give tax advice. We just build tax strategies for folks and we can quarterback with their CPAs or we can have our CPAs help them actually do the filings if they want. But I want to talk about ways of utilizing these accounts where you're still able to avoid any penalties that you potentially could withdraw the money right away if you want to. And what to do if you inherit a Roth IRA, the rules around that because that's a little bit foggy as well. And I thought, if we start with the basics, right? I mean, understanding the difference between a traditional IRA and a Roth IRA, what the two of them are. And very simply a traditional IRA is an account that you can put money into to a certain limit and you get a tax deduction for the money going in. The money then grows tax deferred, so any growth in it is not taxed on an annual basis. It's taxed when you pull the money out. And there's certain government rules around Roth they are excuse me around traditional IRAs, where you have to be 59 and a half to take money out of it with one exception of using certain tax code. And you have to start taking money out of it at 72. There's a Roth IRA is different. A Roth IRA, when you put money into the plan, you don't get a tax deduction. It's after-tax money you're putting into the plan, it grows tax deferred, and then when you take the money out, the money that you put in and the gain assuming that you hit this magical 5 year rule is tax free. You'll never pay tax on that money when you make distributions if you follow those rules, which I'm going to talk about today. Yeah, we'll get into more detail when that occurs. But the people you deal with on a regular basis clients and people who have inquiries, so many of us have these vehicles. I mean, it's a very popular savings device, isn't it? Yeah, yeah. I mean, I think it's probably one of the best rappers around any sort of investment. Doesn't matter what you put the money into, whether it's a CD and annuity, a mutual fund a stock. It doesn't matter. It's the wrapper around it. It's the tax qualification being Roth, where that growth inside of that account, again, once you stick within the guidelines of the rules, the growth inside of it is tax free to you when you distribute it, which is really nice for a lot of people because if you think about it, taxes are very low right now. I think we're all in agreement on that. The highest marginal tax bracket is 37%, which is probably as low as it's been in about 15 years. So taking the tax deduction now might not make sense. So using a Roth IRA, getting the taxes done, putting that money into that account, and then when you do need to take the money out, it doesn't really matter what the taxes are doing at that stage of taxes are twice as much as they are now. You're not paying any tax on the distribution. However, there is some significant limitations to Roth IRAs in that you could only put a certain amount of money in. You know, around $6000 and if you're over a certain age, you can do a catch up at $7000 total, you can put into it. They are talking about increasing that, but they've not done it yet. And once you start earning over a certain amount of money, then you not allowed to contribute to a Roth IRA. And then once you retire, which a lot of our clients are retired and they don't have any earned income, you can not contribute to your Roth IRA. So those are the limitations. However, there are ways and tax codes that former president George W put in place that allow you to re characterize some of your existing IRA money, which we do a lot with our clients and re characterize it to a Roth IRA and there aren't limitations on that currently. You're listening to retire south shore radio. I want to remind you it's easy to arrange. It's a quick way to get information, and it offers help to questions you've been having and particularly questions about where we are right now. It's the 15 minute no obligation strategy call, easy to set up, go to retire south, shore dot com and you do yourself a favor by taking advantage of this opportunity. So let's get into more of the depth and detail here. You talked about withdrawals of money 59 and a half and some of the limitations and so forth. But most people in retirement age were going to say post 59 maybe post 65. We see the 70s looming and that's an important age bracket for this kind of withdrawal information. Give us a bit more detail. Yeah, so most of our clients are over 59 and a half. We have a we do have a number of clients that are not 59 and a half. So once you hit 59 and a half, you can make distributions from a Roth IRA and there's no penalties associated with it if you hit that rule. The 5 year rule, there's no tax on the gain. When you get to that 72 age that you were just alluding to, the required minimum distribution age, though there is no required minimum distribution from a Roth IRA. You don't have to take the money out. So a lot of our clients, they want to leave money to their to their children or their grandchildren, but they're not a 100% sure if they're going to need the money themselves. So it's a wait and see approach of leaving a legacy, right? You may need the money. And if you need it, it's sitting there in your name, and you can distribute a tax free. If you don't need the money, you can leave it to the next generation. And that will also get a tax free, and I'll elaboration on that in a minute as to how they could structure their Roth IRA as an inherited Roth IRA. But I want to talk about the 5 year rule just to clarify this. So there's a couple of 5 year rules that apply to Roth IRAs. There's a contributing 5 year rule, and there's a converting 5 year rule. And I'll get into more detail on what conversions are in the second book. The contributing 5 year rule is it's 5 years from the point in time that you started contributing to a Roth IRA if you're making contributions into it. Conversions when you re characterizing some of your traditional IRA to a Roth IRA, it's 5 years from each time that you make a conversion. So essentially how Roth's work when you take distributions from them is its contributions first, conversion second gains third. And for a lot of our clients when they're doing the conversions at first blush they're like, well, what if I need the money immediately? Well, what you're over 59 and a half, you can take that money immediately. And quite honestly, if you needed the money immediately, you wouldn't be doing Roth conversions. You'd be taking the distribution to spend it, right? Right. So it works fine for most of the people that we talk to. And I don't mean, like I said, a minute ago, this is not the be all and end all and every single person should do this. You should seek advice. You should sit down and figure out what the best strategy is for you. This is just one concept that works quite well. If it fits in your overall retirement, which leads to the very oft used phrase balanced portfolio, planning ahead and building your future anytime you want to think about diversifying and having things in different places, perhaps

Roth Mark George W
"roth ira" Discussed on Money Rehab with Nicole Lapin

Money Rehab with Nicole Lapin

06:20 min | 1 year ago

"roth ira" Discussed on Money Rehab with Nicole Lapin

"Where is your brokerage. td ameritrade cool. And what's going on in there I have about twenty thousand dollars in there now. But that's including whatever money. I've made off of it in the last year and a half or so ran busted. Es yup And that's kind of a mess. Do because i have a variety of just stocks in that i have some index funds. I don't have any bonds. And i know you mentioned like thirty. Percent of my investment portfolio this age probably be bonds. I don't know how to invest in bonds during my brokerage account. You're probably invested in bonds already through your 401k. Okay do you know what your roth allocation ins- Where they're going. Yeah the because. I got them myself Some of them were test. What inside your off. Okay night my roth cool. And then some of them are index funds to. I just don't know which next month's okay. Yeah i mean. S and p five hundred index funds. Probably most likely yes. Okay then great. So it sounds like you're the investments with your roth. Ira are similar to the investments in your brokerage account. We don't know what's in the 401k. But we're going to find out. I'm sure there are bombs. So i'm sure you have bonds. I would just want you to know. W what wanna know. Now i do want to know now. I'm curious i mean you're already invested in a brokerage your twenty-seven you are doing really well. I'm really proud of you. And so you just sounds like you are stepping up and stepping up your gaming's just having more knowledge. Knowledge actually isn't power when it comes to finances its action power. A lot of people know that things or they can find the things. The internet has so many things. I'm sure you did a whole like google search around this roth thing. And there's so much information right and sometimes there's like information overload or decision fatigue. So it's not the lack of knowledge out there. It's just the lack of action and doing something with that knowledge so it sounds like you're leveling up which is awesome. I'm trying you doing it. I've come a long way since reading rich bitch in chicago. Making one hundred fifty dollars a week. It's amazing i tell all my friends and like you have to read this book in relatable. It's easy to read and it's digestible. thank you thank you. today's tip. You can take straight to the bank. Make sure you know how your retirement accounts are invested. Katryn is a super badass rich bitch who has done a diy roth and handpicked investments like a boss but if you're not white ready to dive into the deep end of the investment or retirement pool that's a okay if your soul retirement account is a 401k that your employer manages for you make sure you know how much is in that account and how that money is invested when it comes to investing we love to set it and forget it but remember to periodically check your 401k. So that you know how your money is or isn't working for you money. Rehab is the production of iheart radio. I'm your host nicole. Lapin our producers are morgan lavoix. And mike cost rally. Executive producers are nikki tour and will pearson are mascots are penny and mindy huge thanks you. Og money rehab team. Michelle lands for her development work catherine law for her production and writing magic and brandon dicker for his editing engineering and sound design. And as always thanks to you for finally investing in yourself so that you can get it together and get it all salesforce users. Raise your hand if you enjoy entering your data. Of course you don't enjoy that nobody does so. Have you heard of cirrus insight. They can dramatically reduce your manual data entry by making salesforce. Much more automated. You're not dreaming. You can actually improve your relationship with salesforce by using cirrus insights. That's c. i r. Us insight dot com. Some kids are born book worms while others need a boost. Get your kids reading and loving it with epoch. The leading digital library for kids with epoch kids can access over forty thousand popular and bestselling books plus fun videos than audiobooks anytime anywhere from deep sea. Adventures to magical unicorns to outer space. Journeys whatever they love. Epic has it. All plus epoch grows with your child they'll get personalized recommendations that evolved with their interests and skills over time visit debt. Epic dot com slash. Iheart today for one. Free month of epic unlimited. That's get epic dot com slash iheart. Hey guys i'm saving jay and we're back with season three of my podcasts. Let's be real with sanjay as part of jersey. I love that my generation is inspiring change. And i'm so excited to talk to more celebrities activists athletes and influencers to find out what they're passionate about how they're changing the world normalizing stigmas or helping others feel less alone season. Three is going to be exciting. Revealing and empowering we've got wayne brady realized was like yeah like the name of your podcast. Let me real. that's what it is. Thank goodness for you man. This really we need this method thread in wide. other guests. Include jessica alba meghan trainor josh richards and so many more season three will hopefully make you feel good a time when we're all going through so many changes in the world today listen to. Let's be real with sammy. J starting september thirtieth on the iheartradio app apple podcasts. Or wherever you get your podcast..

morgan lavoix mike cost nikki tour will pearson Michelle lands brandon dicker salesforce Lapin mindy chicago google nicole penny catherine sanjay jay wayne brady jessica alba meghan trainor
"roth ira" Discussed on Money Rehab with Nicole Lapin

Money Rehab with Nicole Lapin

08:23 min | 1 year ago

"roth ira" Discussed on Money Rehab with Nicole Lapin

"Left on the 401k. All right well. Let's introduce you to another candidate. The ira ira stands for individual retirement account similar to a 401k. You can open an ira with pretax money. And you don't have to worry about paying tax until you need to use the money but unlike a 401k an ira is not offered through an employer. You have to set it up yourself and you keep that account forever and always no matter where you work hence the individual part in the individual retirement account. Ira's are all the rage these days that. How do these darlings of the retirement savings world actually work. I found out by opening one. When i was at cnn. I started a 401k. Because it was recommended to me. I never stopped to even consider that there were other options and now of course i wish i had live and learn from me folks when i finally did look into other options. I found that there were three major prose of an ira for me number one. The money i put in actually reduced my taxes. At the time i was in the twenty five percent tax bracket so when i put six thousand dollars into my ira by taxable salary or income was reduced by that amount that met my tax bill was reduced by a cool fifteen hundred bucks which is twenty five percent of six grant which is nice mean is not that i saved that money per se since tax refunds are. Technically you remember this. Just your money coming back to you. But i didn't have to pay more for it number two. i could still have a 401k. And if i had enough money to max both of them out. I cooled number three. The ira rules were withdrawal. Aren't super stringent. If you're using the money for medical expenses to buy a house for educational purposes you can even skirt around that ten percent penalty fee well. Ira is have a lot of pros. There is one notable con- you are limited by the amount you can contribute each year and that contribution limit is lower than 401k's by a lot in two thousand twenty one you can only contribute six thousand dollars if you're under the age of fifty seven thousand dollars if you're older than fifty you can do all of this at once or you can do it at any time up to tax day following the year for which you're making that so for example you have until april fifteenth of twenty twenty two to make the contribution for twenty twenty one assuming of course that's the actual date. It's going to be next year. Once you max out the ira as you should try to do. Annually the show's over until next year. So having an ira alone isn't going to catapult you into retirement rock stardom when i started working for myself. I really didn't know where to start when setting up an ira so here are the steps. That i took step once call companies that offer. Ira is like vanguard or fidelity you can also do this online step to go through the account. Setup process also easily done online step at three decide what to invest the money in index funds. And jill step for fund the account that is put your money in and woah. You have an ira step. Fis claim the amount you contributed as a deduction on your tax return but wait there is more. I have been saving the very best for last the superstar of the team. The roth ira roth ira's or just roths for short are a lot like traditional ira's except you put money in after you pay tax so unlike a 401k or traditional ira. You don't have to pay tax on the money when you take it out when you're an old sexy lady or an old sexy guy because you already paid for it. This makes your nest egg a lot easier to account for over time. I mean we can't see into the future. We can't predict what tax rates are going to be. In the year you retire but tax rates will likely increase so those investing in a 401k. Or ira have this unknown tax bill looming while those with a roth. Ira are going to have no surprises. The rule in twenty twenty one is that you're eligible for a roth. Ira if you make less than one hundred twenty five thousand dollars as a single person. So if you're given the option you should absolutely put money into a roth. Don't hesitate pas the podcast right now and. Please open up an account seriously. Yes you are paying taxes on whatever. You're contributing now but you're paying it before your money has even grown when you pay taxes later like you do with a 401k or traditional ira. You're going to be paying taxes based upon the amount that it has grown to assume you have eighty thousand dollars in the account when you want to take the money out decades from now with a traditional ira that eighty thousand dollars is all taxable as ordinary income. Which is the same rate that you pay tax on for the salary you make. If you assume a twenty five percent tax rate the amount of money you really have. After-tax is sixty grand in other words. You're going to have to give twenty thousand dollars to the government before you can use it for all the fun things you plan for with a rough you get to keep the full eighty grand. That's right you don't have to give twenty thousand dollars to the taxman when you turn fifty-nine because you already paid taxes on the money when you put it in the account in the first place the only thing you gave up on to get this awesome deal was a deduction when you made the original contribution you can't actually deduct the contribution to roth. Ira's lake you would if you qualify for a traditional ira. That would be double dipping. Sticking with our assumed twenty-five percent tax rate. You paid an extra one thousand five hundred dollars of tax when you started twenty five percent of six grand for the privilege to not pay twenty thousand dollars later. That's a very very good deal if you ask me which you are because you're listening to me right now sued. Don't pass up on making roth contributions if you can. Here's today's tip. You can take straight to the bank. A 401k can be good. It can be great but it all depends on you your death situation your goals and your company plan if your employer doesn't match contributions or there are high fees involved or the plan doesn't come with the right investment choices for you you might wanna rethink it if you're eligible for a roth. Ira start one today. The best time to do this is when you're in a lower tax bracket because you'll pay less now and still not later this money. Rehab is a production of iheartmedia. i'm your host nicole. Lapin our producers are morgan lavoix and catherine law money. Rehab is edited an engineered by brandon. Decker with help from josh fisher. Executive producers are men gap cheddar and will pearson huge thanks to the og. Money rehabbed supervising producer michelle lambs her pre production and development work. And as always thanks to you for finally investing in yourself so that you can get it together and get it. All when the brightest minds at the university of florida come together. Something extraordinary happens. Engineering empowers medicine data scientist rice. Agriculture geology fuel space exploration and artificial intelligence transforms learning and research. The ideas that go on to change the world. They're launching right from here. At the collision of big ideas and massive potential something momentous becomes possible at the university of florida ufl dot. Edu paper ghosts is a true crime. Podcast that returns with a new season investigating the tragedy that took place in a small ohio town where the massive farm house of a wealthy family erupted in flames. All four residents died but not because of the fire. My brother says carol. Something's up there is too much. Listen to pay per ghosts on the iheartradio app apple podcasts. Or wherever you get your podcasts..

ira Ira cnn Fis roth ira jill roth morgan lavoix josh fisher michelle lambs Lapin
"roth ira" Discussed on Money Rehab with Nicole Lapin

Money Rehab with Nicole Lapin

08:23 min | 1 year ago

"roth ira" Discussed on Money Rehab with Nicole Lapin

"Left on the 401k. All right well. Let's introduce you to another candidate. The ira ira stands for individual retirement account similar to a 401k. You can open an ira with pretax money. And you don't have to worry about paying tax until you need to use the money but unlike a 401k an ira is not offered through an employer. You have to set it up yourself and you keep that account forever and always no matter where you work hence the individual part in the individual retirement account. Ira's are all the rage these days that. How do these darlings of the retirement savings world actually work. I found out by opening one. When i was at cnn. I started a 401k. Because it was recommended to me. I never stopped to even consider that there were other options and now of course i wish i had live and learn from me folks when i finally did look into other options. I found that there were three major prose of an ira for me number one. The money i put in actually reduced my taxes. At the time i was in the twenty five percent tax bracket so when i put six thousand dollars into my ira by taxable salary or income was reduced by that amount that met my tax bill was reduced by a cool fifteen hundred bucks which is twenty five percent of six grant which is nice mean is not that i saved that money per se since tax refunds are. Technically you remember this. Just your money coming back to you. But i didn't have to pay more for it number two. i could still have a 401k. And if i had enough money to max both of them out. I cooled number three. The ira rules were withdrawal. Aren't super stringent. If you're using the money for medical expenses to buy a house for educational purposes you can even skirt around that ten percent penalty fee well. Ira is have a lot of pros. There is one notable con- you are limited by the amount you can contribute each year and that contribution limit is lower than 401k's by a lot in two thousand twenty one you can only contribute six thousand dollars if you're under the age of fifty seven thousand dollars if you're older than fifty you can do all of this at once or you can do it at any time up to tax day following the year for which you're making that so for example you have until april fifteenth of twenty twenty two to make the contribution for twenty twenty one assuming of course that's the actual date. It's going to be next year. Once you max out the ira as you should try to do. Annually the show's over until next year. So having an ira alone isn't going to catapult you into retirement rock stardom when i started working for myself. I really didn't know where to start when setting up an ira so here are the steps. That i took step once call companies that offer. Ira is like vanguard or fidelity you can also do this online step to go through the account. Setup process also easily done online step at three decide what to invest the money in index funds. And jill step for fund the account that is put your money in and woah. You have an ira step. Fis claim the amount you contributed as a deduction on your tax return but wait there is more. I have been saving the very best for last the superstar of the team. The roth ira roth ira's or just roths for short are a lot like traditional ira's except you put money in after you pay tax so unlike a 401k or traditional ira. You don't have to pay tax on the money when you take it out when you're an old sexy lady or an old sexy guy because you already paid for it. This makes your nest egg a lot easier to account for over time. I mean we can't see into the future. We can't predict what tax rates are going to be. In the year you retire but tax rates will likely increase so those investing in a 401k. Or ira have this unknown tax bill looming while those with a roth. Ira are going to have no surprises. The rule in twenty twenty one is that you're eligible for a roth. Ira if you make less than one hundred twenty five thousand dollars as a single person. So if you're given the option you should absolutely put money into a roth. Don't hesitate pas the podcast right now and. Please open up an account seriously. Yes you are paying taxes on whatever. You're contributing now but you're paying it before your money has even grown when you pay taxes later like you do with a 401k or traditional ira. You're going to be paying taxes based upon the amount that it has grown to assume you have eighty thousand dollars in the account when you want to take the money out decades from now with a traditional ira that eighty thousand dollars is all taxable as ordinary income. Which is the same rate that you pay tax on for the salary you make. If you assume a twenty five percent tax rate the amount of money you really have. After-tax is sixty grand in other words. You're going to have to give twenty thousand dollars to the government before you can use it for all the fun things you plan for with a rough you get to keep the full eighty grand. That's right you don't have to give twenty thousand dollars to the taxman when you turn fifty-nine because you already paid taxes on the money when you put it in the account in the first place the only thing you gave up on to get this awesome deal was a deduction when you made the original contribution you can't actually deduct the contribution to roth. Ira's lake you would if you qualify for a traditional ira. That would be double dipping. Sticking with our assumed twenty-five percent tax rate. You paid an extra one thousand five hundred dollars of tax when you started twenty five percent of six grand for the privilege to not pay twenty thousand dollars later. That's a very very good deal if you ask me which you are because you're listening to me right now sued. Don't pass up on making roth contributions if you can. Here's today's tip. You can take straight to the bank. A 401k can be good. It can be great but it all depends on you your death situation your goals and your company plan if your employer doesn't match contributions or there are high fees involved or the plan doesn't come with the right investment choices for you you might wanna rethink it if you're eligible for a roth. Ira start one today. The best time to do this is when you're in a lower tax bracket because you'll pay less now and still not later this money. Rehab is a production of iheartmedia. i'm your host nicole. Lapin our producers are morgan lavoix and catherine law money. Rehab is edited an engineered by brandon. Decker with help from josh fisher. Executive producers are men gap cheddar and will pearson huge thanks to the og. Money rehabbed supervising producer michelle lambs her pre production and development work. And as always thanks to you for finally investing in yourself so that you can get it together and get it. All when the brightest minds at the university of florida come together. Something extraordinary happens. Engineering empowers medicine data scientist rice. Agriculture geology fuel space exploration and artificial intelligence transforms learning and research. The ideas that go on to change the world. They're launching right from here. At the collision of big ideas and massive potential something momentous becomes possible at the university of florida ufl dot. Edu paper ghosts is a true crime. Podcast that returns with a new season investigating the tragedy that took place in a small ohio town where the massive farm house of a wealthy family erupted in flames. All four residents died but not because of the fire. My brother says carol. Something's up there is too much. Listen to pay per ghosts on the iheartradio app apple podcasts. Or wherever you get your podcasts..

"roth ira" Discussed on Money Rehab with Nicole Lapin

Money Rehab with Nicole Lapin

08:07 min | 1 year ago

"roth ira" Discussed on Money Rehab with Nicole Lapin

"Your shows right. Well then listen up. If you've expanded the internet entertainment starts at free with flex so you can get really into your shows. Find your favorites faster with just your voice. The office from peacock to hbo. Max end disney plus the whole squad. Here the falcon in the winter soldier and he's moving sanity. It's a way better way to watch. Restrictions apply subscriptions required to access streaming services including disney law requires postpaid xfinity internet excluding internet essentials device included additional devices. Five dollars a month got savings goals. Get guac the first advanced savings tool designed for both credit and debit card users. Walk helps you save toward your goals while you spend on what you need. Just set your goals and deadlines then use their percentage based savings feature too easily fund. Each goal once you meet a goal complete your purchase with any of the partners in the guac marketplace all while earning cash back on each purchase all block accounts are insured by the fdic up to two hundred fifty k. Download at walk app dot com or in the app store make saving as easiest spending. Hey guys are you ready for some money. Rehab wall street has been completely upended by player. Game stop amen. Should i have a take. So i do you think on your money will charge for wasting our time. I will take a shack. You recognize her from anchoring on cnn cnbc and bloomberg the only financial expert. You don't need a dictionary to understand the cold lapin these days. We have a lot of choice when it comes to savings plans for retirement back in the day though it was social security medicare and pensions. And that's it today. There are eight different kinds of benefits plans that your employer can offer but employers push the choice onto you because they don't wanna be on the hook for liability. That's a huge responsibility. So how do you make the decision. Charlie writes in with this question. Pinochle amasi just completely fucking when it comes to retirement plans. Most of my friends have a 401k. But my brother has a roth. Ira and feel so strongly about it. Which one is better now. Do you know they're different. We'll charlie. I know this can be super overwhelming right now. But i'll take you through it. Here are the players of 401k as a retirement account established by employers for employees. That's tied to the stock market if you're out of company that offers a 401k. You can make contributions before the money hits your paycheck and then your contribution is invested in an account with your name on it. They will get super excited about 401k's because sometimes the employer can make a matching contribution to your account which is like getting free money and any money. You contribute goes in before taxes. However don't think this money is tax free because you do have to pay tax when you take the money out if you take it out before your fifty nine and a half yes. That's really the number of the. Irs up with you have to pay penalty fees. 401k's do tend to be the most popular retirement plan. But that doesn't necessarily mean it's the best one for you. Remember trusting your employer with your money is trusting your employer with your money. Why not trust yourself instead. Most people don't even realize that 401k's aren't actually meant to be retirement accounts for your entire retirement. They're technically profit sharing accounts because they allow you to have one hundred percent of your money in your company's stock which you should never do hello worldcom tyco and ron lehman brothers folks. Maybe it's just me but the basic idea of having your retirement and your job. So closely linked seems wrong after all familiarity might breed contempt in family but it breeds blindness in business. If you put all your money in your company's stock and the company goes out of business your livelihood is doubly screwed now with losing your job and later with losing your retirement savings. Let me repeat 401k's aren't and were never intended to replace your entire income when you retire. It's just how we started using them once traditional pensions which are meant to replace your income when you retire started becoming less common. Pensions would guarantee you. Money when you're tired and that put the burden on your employer to make sure the money was there when you need it. Nowadays 401k's are cheaper for employers to run because they put the burden unu- a 401k. Is right for you if number one your employer matches your contributions number two. You need something easy or you won't save at all no shame. If that's you just be honest number three. You wanna go crazy with your contributions. The limits were 401k's in twenty. Twenty one is nineteen thousand five hundred dollars for your personal contributions and that's a lot higher than an ira which we will get to injustice number four. You may need to borrow from yourself now. You can take up to fifty grand or fifty percent of your balance. Whichever is less if you need it for an emergency without penalty as long as you can pay it back within five years. Quick side note here. Try your hardest not to exercise this option especially if you have a precarious work situation because if you lose your job you have to pay what you borrowed back within sixty days or it will be considered a default and really hurt your credit score big time the just know that the loan option is there if you absolutely have no other choice well that's that 401k is not right for you if number one don't have six to nine months of emergency reserves in the bank yes you need to save for retirement but you need liquidity i. He can't pay for stuff at the grocery store with a 401k number to your employer doesn't match your contributions many do but not all do so definitely check. Many companies actually suspended 401k matching as a cost saving measure during the pandemic number three. You have a significant amount of credit card debt paying down debt is a form of long-term savings. Because if you don't pay it down now you'll pay more and save less later. Avoid the potential avalanche of debt specially credit card debt and tackle. The mountain of interest accumulating bills. I number four. You want freedom of choice on fees and investment options since this is your employers show. They picked the plan and they picked the fees. You got a few options. But that's basically it even if the fees seem pretty small at the time they definitely add up and you may be able to do better if you feel adventurous and studious enough to tackle it on your own. Hold onto your wallets boys and girls money. Rehab will be right back here on money rehab. We are all about making extra monday. They got it. Growing a business can be difficult. It's confusing to know where to start. But right now you might be sitting inside a john enormous opportunity your home. Four million entrepreneurs have turned their homes into real businesses. Making real money on airbnb. They're called hosts you can be a host to you can host anything anywhere in the world on airbnb. You can host your house your vacation home if you have one your yurt or whatever extra space you have and let your home work for you. Some hosts use their earnings to travel others build a treehouse empire. It's all made possible by hosting with resources and support from airbnb and its community of four million hosts help get you started learn more about becoming a host at.

disney worldcom tyco ron lehman hbo fdic cnbc app store bloomberg Max cnn medicare Charlie charlie airbnb john
Is Your 401k Working for You?

Money Rehab with Nicole Lapin

01:58 min | 1 year ago

Is Your 401k Working for You?

"401k as a retirement account established by employers for employees. That's tied to the stock market if you're out of company that offers a 401k. You can make contributions before the money hits your paycheck and then your contribution is invested in an account with your name on it. They will get super excited about 401k's because sometimes the employer can make a matching contribution to your account which is like getting free money and any money. You contribute goes in before taxes. However don't think this money is tax free because you do have to pay tax when you take the money out if you take it out before your fifty nine and a half yes. That's really the number of the. Irs up with you have to pay penalty fees. 401k's do tend to be the most popular retirement plan. But that doesn't necessarily mean it's the best one for you. Remember trusting your employer with your money is trusting your employer with your money. Why not trust yourself instead. Most people don't even realize that 401k's aren't actually meant to be retirement accounts for your entire retirement. They're technically profit sharing accounts because they allow you to have one hundred percent of your money in your company's stock which you should never do hello worldcom tyco and ron lehman brothers folks. Maybe it's just me but the basic idea of having your retirement and your job. So closely linked seems wrong after all familiarity might breed contempt in family but it breeds blindness in business. If you put all your money in your company's stock and the company goes out of business your livelihood is doubly screwed now with losing your job and later with losing your retirement savings. Let me repeat 401k's aren't and were never intended to replace your entire income when you retire. It's just how we started using them once traditional pensions which are meant to replace your income when you retire started becoming less

Worldcom Tyco Ron Lehman
"roth ira" Discussed on Radical Personal Finance

Radical Personal Finance

04:21 min | 1 year ago

"roth ira" Discussed on Radical Personal Finance

"Keep your flexibility high so you can go where the opportunity is now long way. Take good advice. Take good counsel think and talk to people and take the advice of experts because if you talk to the experts the experts can help you to figure out how to do things smartly tax to to talk about how to structure things. There are a lot of people in this listening audience who have started a company or been involved in a and never went and sat down with a tax expert. Never went and sat down with an ira. Could i put this in my ira right. Your first question should be. Could i put my company era after all. I don't want to leave the united states and moved to or to do by. Just so i can have zero tax. Could i put my mo- my company and my the enter. Maybe yes maybe no but you should ask the questions and be looking for those things as teal did so those are things you can do be involved and the inside. Always try to find the community people who are involved in it right and a couple of weeks. I'll be in malta. ideally I'll be in portugal in multan a couple of weeks and i'm going there and looking into what's happening on the ground. I want to know what's happening with the cryptocurrency space. Now it's less promised seems less promising now at a few years ago but the island of malta in the mediterranean was trying to position itself as the crypto currency island. Well you should pay attention to things like that and say we're going. Silicon valley might work well for a lot of people. But i don't know silicon valley is the place right now But i i hopefully. We'll be in by later this year. Right i think dubai a lot going forward. If i were in the finance space. I'm much more interested in spending time in dubai than i am in in new york city at this point. Although there's still plenty of opportunity in new york city so look for where you think opportunity and put yourself in the way of it and then just be smart about what you're doing because you can model. What -til did you may not wind up with a five billion dollars in your roth. Ira you may not by the way this two hundred sixty three bothers me because like let me let me tell you why it bothers me. I wrote myself just to do this. Bothers me so much. The same thing like these worthless they have these worthless These were completely and utterly worthless Things about well if every person in houston texas all two point. Three million people put two thousand dollars in a bank. Still wouldn't be worth five billion dollars. Okay well what does that. What does that matter really. Human brain doesn't capture big numbers. Here it says assuming a modest six percent annual return no withdrawals his tax free golden egg could be worth about two hundred and sixty three billion dollars in two thousand eight. Eighty seven with plans celebrate his hundred and twentieth birthday. So i have a new baby. So let's say that i put in. I pay my baby to model for my business. And i put in two thousand dollars in to his roth ira by the way. Not saying newbie. Maybe it was two years old now but i put two thousand dollars into his roth. Ira and let's assume that Because of life extension -til thinks he's gonna live to one hundred and twenty. But i think that by then we're gonna live to one hundred eighty so if we start with one hundred and eighty years and we earn. I don't i think six percent is a little bit too high. But maybe he can only earn five percent on his investments then in one hundred and eighty years. Then you know my my son could have thirteen million dollars in one hundred and eighty thousand one hundred and eighty years by the way it actually kind of disproves. My points shows how spectacular is but what going to invest in my business. So he's going to start with this year he's going to have a million dollars. Give me a better man. He's gonna put a million dollars in his account today and then one hundred eighty years. You'll have six point five. What does this trillions. I can remain numbers so the point is that what is two hundred sixty three billion dollars just doesn't it doesn't no not mad at them but the point is these numbers. Let's extrapolate out the national debt. Let's extrapolate out the value of the dollar. We don't know we're all guessing on the future. We don't have any idea on any of these things that wasn't quite the spectacular show any nine -ticipant. I just wanted to say to you that it's a remarkable article but you can do it too. You can do this to you. Can use the exact same valuation.

five billion five percent two thousand six percent thirteen million dollars multan portugal two thousand dollars five billion dollars dubai one hundred and eighty years one hundred and eighty thousan malta two hundred sixty three billio silicon valley Eighty seven one hundred and twenty Silicon valley one hundred eighty years houston texas
"roth ira" Discussed on Radical Personal Finance

Radical Personal Finance

05:58 min | 1 year ago

"roth ira" Discussed on Radical Personal Finance

"He wanted -til use the millions and proceeds from his pay pal windfall to invest in silicon valley startups as well as his own hedge fund according to his financial assistance. Memo once again teals roth scooped up startup shares at bargain basement prices and they go on and talk about pailin. Tear has investment in pailin tear in two thousand four. -til met mark zuckerberg harvard undergraduate. -til invested five hundred thousand dollars. Facebook's first large outside infusion of cash those facebook shares ended up. where else teals roth. Ira and any goes on and continues to To grow grapes. Talk more about the details so at this point in time we see that it's just growing from there. He's got so much So much value in there. Now they do cover a section which i'm going to skip for now the cover section on the mega backdoor roth Et cetera. talk about the romney array. Go on you should read it. But we'll close this out. With the last couple of paragraphs assuming a modest six percent annual return and no withdrawals his tax free golden egg could be worth about two hundred and sixty three billion dollars in twenty eighty seven when teal plans to celebrate his one hundred twentieth birthday. That's larger than the current gross domestic product of new zealand. His adopted homeland. There is good news and bad news. -til told the washington post when asked about living more than a century. The bad news is if you don't believe in the good news you're not saving enough for retirement and likely to spend much of your old age in poverty. The financial planning he'll said takes on a very different character. Now i love this talks about -til stuff of life extension which i think is really fun interesting as well first of all. I hope that -til doesn't stop and start taking garbage. Six percent annual return. I hope that he continues to to use his business. Acumen is investment prowess and. I hope that his account is worth a lot bigger than two hundred and sixty more than two hundred sixty three billion dollars. I hope he does. However it's going to create problems for us you and me who may or may not yet have two hundred sixty three billion dollars because it's hard to imagine a government like the united states sticking with its rules when somebody has been this successful and they will change the rules. I always think about the rinaldo rule in In italy where they changed the entire tax code so that rinaldo would come and pay soccer there and they can have a maximum tax of one hundred thousand euros. Target country will change everything. If there's someone that's high profile enough and so this there's no question. This article is going to be influential Influential around the world and influential in the us american Political and financial conversations. So here the points. That i would like you to make sure that you notice number one. Notice that there's nothing that -til did that you. And i couldn't choose to you and i could choose to work in high risk areas for our career. You and i could choose to work in the market where the change is exciting. You go back to nineteen ninety nine what you see at that. Time was that tech people in those days. They knew there was something new and fresh happening. And there was opportunity all around because there was a fundamental transformation. I see the same thing happening right now. In the financial space with crypto currencies with defy it. Sarah there's innovation happening. There's change people's smell the fact that we could change everything. This entire system has been around for centuries could we could change everything. And if i were looking for opportunity i look for. Where are things changing. 'cause where things are changing there's opportunity there's opportunity to go and sell shovels gold miners. When you see a bunch of people going somewhere be paid clue into that and pay attention. -til did that right in california at the right time looking for opportunities. There are opportunities for people who solve big problems. -til solved the problem. He tackled a big problem. The transfer of money yet big dreams the fact that he was approaching. Those dreams with libertarian. Ideals doesn't mean that his dreams were any different just means that you wanted to solve a big problem and he solved a big problem to this day. You and i use paypal right us. Pay pal even. Though there's lots of competition we still paypal and pay pal transformed the marketplace in a powerful way so he was where the action was and he was willing to take risk. Now what is it that that equipped him to take the risk. I don't know. I haven't read tales book actually But i would say one of the things that equipped -til to take the risk was he was mean he was able to do it and so maybe he came from a very wealthy family. Maybe his parents paid for all of his college bills He had all everything that he needed. I don't know actually don't know. Maybe he came from nothing. Maybe he just kept his expenses. Low all it doesn't matter my answer is you've got to be prepared to take the risk. So how do you do it. Well you become skilled and say. I'm going for opportunity. So can i be good at keeping my expenses low. Can i be good at going for where i can really build something big. Can i make sure that. I set myself up in such a way that i can can can. That can survive to go after something right if you need seventeen hundred dollars to pay a car payment so you don't get your car repossessed. That may be the seventeen hundred dollars that you could have put into your roth. Ira to buy shares of the company that you're excited about so keep your expenses low..

Six percent Sarah Facebook five hundred thousand dollars mark zuckerberg seventeen hundred dollars six percent facebook italy one hundred thousand euros paypal california twenty eighty seven two thousand two hundred sixty three billio new zealand one hundred twentieth birthday Ira first two hundred and sixty more tha
Are Black Creators Really on ‘Strike’ From TikTok?

This Week in Startups

02:07 min | 1 year ago

Are Black Creators Really on ‘Strike’ From TikTok?

"According to my best and friend of the pod taylor law from the new york times of twenty one year old content creator and dancer posted a fake out. Dance on tiktok. His name is eric. Lewis or louis. I'm not sure how he pronounces it in the video. He looks like he's about to dance to Medicine the stallion one of my favorites New single Thought algebra even at that and when the beat drops he basically flipped the bird and says to the camera psych. You don't know what psych means that means like I trust you in Slang from the eighties and he basically puts a caption that says. This app would be nothing without b. l. k. People black people. The video has racked up over one hundred. Twenty eight thousand likes on tick tock And it went viral on twitter. According to laurenz. And i'm going to quote here. Some tweets suggests that black raiders on tiktok had seemingly agreed not to choreograph a dance to the song which would force non black users to come up with dances on their own and prove how essential black raiders are to the platform in a later. Tiktok eric. the person who promoted this video sad black folks have always had to galvanize and riot and protest to get their voices heard that same dynamic is displayed on tiktok. Said we're being forced to collectively protest a user deja on twitter Said that black creators are telling each other to not make a dance to the new megan the samsung to prove they are the backbone of the app another quote. We are being exploited. And that's the core issue. Black folks have had in terms of labor. Mr lewis or louis. Sorry if i'm pronouncing correctly. These millions of likes. That should all translate to something. How do we get real money. Power and proper compensation reserve and the tweet from taylor today to frame this as an issue around dance credits misses the point. It's about so much more and speaks to broader issues of labor in the creator economy. We are being exploited. And that's a core issue. Black folks have always had in terms of labor. Eric said

The New York Times Of Twenty Laurenz Tiktok Tiktok Eric Lewis Eric Louis Twitter Mr Lewis Raiders Megan Samsung Taylor
"roth ira" Discussed on Money Girl's Quick and Dirty Tips for a Richer Life

Money Girl's Quick and Dirty Tips for a Richer Life

01:46 min | 1 year ago

"roth ira" Discussed on Money Girl's Quick and Dirty Tips for a Richer Life

"Out a traditional ira. However some or all of your contributions may not be tax deductible depending on your income so if you're a high earner may be the case that you can max out that traditional ira and your retirement plan at work but it may mean that you just can't get the full tax deduction on your traditional ira contributions but they're still going to grow in the account on a on a tax deferred basis. So you know it's still a good idea as your ira. Investments grow in value. You are never taxed on those earnings until you take them out of the account in retirement or even before retirement if you qualify for an exemption now if you own those same investments in a regular taxable brokerage account you would have to pay tax on your investment gains every single year. You don't have to do that when they're in a traditional ira because that's the protection. That's the tax shelter that you're getting so a traditional. Ira allows you to defer paying taxes. You don't eliminate it you just deferred for both or contributions and your earnings until you withdraw money in the future and you can begin making distributions penalty free once. She reached the official retirement age of fifty nine and a half and you must start taking required minimum distributions or are. Md's after age. Seventy two if you tap a traditional ira before reaching age fifty nine and a half in most cases you must pay income taxes on the withdrawal plus an additional ten percent early withdrawal penalty. So that's why i never recommend breaking. Open your retirement piggy bank. It's just too expensive..

ten percent both Seventy two fifty nine and a half every single year Ira once Md
"roth ira" Discussed on Money Girl's Quick and Dirty Tips for a Richer Life

Money Girl's Quick and Dirty Tips for a Richer Life

03:42 min | 1 year ago

"roth ira" Discussed on Money Girl's Quick and Dirty Tips for a Richer Life

"That's an awesome problem to have right. I you make a non-deductible which is a taxable contribution to a traditional ira and then you roll over those funds into a roth ira. You won't owe taxes. Except on any investment growth in the account earned between the time of your traditional ira contribution and the roth conversion again a lot more information about this and podcast six hundred sixty six but if you already have tax money in a traditional ira like m does tax has to be pro rated over all your ira's which doesn't allow you to avoid additional tax however by rolling over your traditional ira funds into your traditional 401k at work that does not trigger any taxes and it gets around this problem of having existing. Ira funds so that you won't have any traditional ira funds. Yeah gets a little tricky so always get help from your retirement fund administrator if you think you might benefit from doing a back door roth. Ira and again. It's only going to apply to you if your income is too high to contribute to a roth. Ira and we're going to go over what that limit is in the show 'em also mentioned splitting her. 401k contributions fifty fifty at work. And i love that. There's no income limit on a roth at work on a roth for k. Or ross perot three b. So she can max one out every year or even make a partial contribution no matter your income and that's a great idea because having some amount of tax free income to count on in retirement is a smart move so m and jamie. Thank you for your questions. I hope that helped so now. Let's get into today's topic. Which is should you have traditional or a roth ira. This is a pretty foundational finance topic. And i've podcast it about it before. But i think it's worth revisiting not only because various annual limits have changed but because the difference between these accounts can get confusing it trips up a lot of people and unfortunately i found that many people have questions about retirement accounts that keep them from getting one up and keeps them from accumulating wealth for the future. I know that was the case for me. When i was in my twenties and i was just starting out with my first real job. My employer kept talking about participating in a 401k. And i had absolutely no idea what they were talking about. I kept thinking of that serial special k and it sounded like something that had nothing to do with my job. I often say that a confused mind always says no so. That was me. I was confused. And i said no and i did not participate until a year or two later when i moved onto a new job. That did a great job explaining the benefits of a workplace retirement account and they paid free mashing funds. So that's when it clicked for me. It was like okay. I get it now. And i never looked back. But maybe you don't have a retirement plan at work or your self employed and you're just not sure how ira's work or you're not sure about the traditional versus roth benefits that uncertainty could be the barrier that is stopping you from moving forward and taking control of your finances so my goal for this show is to clear up any confusion. You're gonna learn the main differences between these accounts and how to know if traditional or a roth is best.

Ira jamie today fifty fifty twenties a year or first real job one six hundred sixty six two later
"roth ira" Discussed on Just Don't Lose The Money Podcast

Just Don't Lose The Money Podcast

04:42 min | 1 year ago

"roth ira" Discussed on Just Don't Lose The Money Podcast

"Just look up. just don't lose the money. Lots of great content therefore you all right so the market is really going right now. As a matter of fact. I saw a headline this week. That says more money has gone into stocks in the last five months than has gone in the last twelve years. I wow john. That's a big number. It's crazy numbers. So you think about it in the last five months i think it was five hundred. Sixty nine five hundred. Seventy billion dollars has flowed into the the equities and for the twelve years prior to that it was four hundred and fifty two billion. So we're seeing a massive influx of money into the markets which is a good sign for the would drive the marcus up but at the same point in time it's also showing you what's happening with interest rates being so cds like there's no sense of keeping money in a bank so to say if you're not gonna earn anything on it and buying a cd at low interest rate so that's why we're seeing a massive influx of money into the market. But you have to be careful yet to make sure you have the proper risk tolerance. You have to make sure that you're not buying at the peak so to say well. That is one of the fears that people have people are kind of funny when the market's down there all grumbling when the market's going up they get uneasy they go. When's this going to end. That's that's just the emotion a roller coaster of the market as a matter of fact that was part of the conversation just this week on. Cnbc this is west krill. And he says you know what if you're trying to figure out when the market's going to go down forget about it. It just doesn't work about a half a century of evidence. Both from academic says wool practitioners to show that by and large investors are not able to consistently outperformed markets by picking stocks or or trying to market time. Will there is the thing that everybody wants to try to do. But nobody really can do. Successfully in that is time the market so john. If somebody says. I'm scared that the market's going to go down. What do i do. Or i'm in for the ride. Let's go. I mean what do you say to that person right now. I mean every person in the situation is unique to them. So there's not one size fits all this as an cookie cutter. You wanna make sure you have a plan that has really designed for you.

john Cnbc
"roth ira" Discussed on Just Don't Lose The Money Podcast

Just Don't Lose The Money Podcast

03:17 min | 1 year ago

"roth ira" Discussed on Just Don't Lose The Money Podcast

"The great thing about the roth. Ira down the road. The withdrawals attacks free okay. So there's no taxes on the growth but the issue that they have is that you have to qualify there's income limitation. So if you're a mary couple. In you're modified adjusted gross income is above two hundred. Eight thousand you're not able to contribute to a roth. Ira well one of the things that we've talked about in the past is that that limitations kinda thrown out the window if you're going to convert money over right. Yeah so there is this back door roth. Ira so not all is lost. If you're a high income earner the idea is to use the strategy that they called the the back door strategies with that is in twenty ten. I think there was a new tax code. That was created that allowed high income earners to legally make indirect contributions to a roth. Ira using the back door strategy in what it really is an individual's going to open up. An ira account told the pause at six or seven thousand into that account it will be a non deductible contribution so it's not like you put putting seven thousand into the ira and then you deducted that on your tax return so this will be a non deductible contribution then what happens is you'll convert that ira to a roth ira. So you'll take the ira converted to a roth now. That individual has a roth. Ira now moving. Forward that ira. Because the conversion that individual has to keep that money in there for five years before any withdrawals become tax free so that is one way using the back door strategy for high income earners to contribute to a roth. Ira where once before they couldn't another great benefit of a a roth ira is that. There's no required minimum distributions at age. Seventy two as we sting the. Irs has been kind enough to let you grow this money in your ira's tax deferred until eight seventy two then at seventy two. They require that. You take out a minimum distribution that you have to pay taxes on so the roth does not have that. So these are all things that are on. Everybody's mind right now taxes in the way you're thinking about it right now is what's coming out of my check. How much did i pay. How much did i. Oh how much am i getting back but when you get into retirement it kind of shifts a little bit you wanna think about how you're taking your money from a tax standpoint. You wanna have what we call tax forward thinking and putting yourself in a good position when.

roth ira Irs
Taking Advantage of Mr. Bear by JL Collins on Tax Avoidance Investment Strategies

Optimal Finance Daily

05:16 min | 1 year ago

Taking Advantage of Mr. Bear by JL Collins on Tax Avoidance Investment Strategies

"I decided it was time to cuddle up to mr bear and let him help me. Avoid some capital gains taxes as regular readers. Here no for the past few years. We have been homeless and nomadic. It's a lifestyle that agrees with us and when we'd like to keep doing for some time however at some point age will force us to settle down. The trick is deciding when that is act too soon and we miss out on xtra wandering wait too long and i might not have the energy left to easily make the transition but sometime in the next five years. There's a better than even chance that will be buying a final years house to that end we've had money growing. In a taxable account invested in of course vitae ax as i track this against the eventual sale to fund the house. I realized that we be on the hook. For a twenty percent capital gains tax until at least this new market selloff suddenly that capital gain was disappearing indeed with an eight percent drop today it would be completely gone so with the market down about six point. Three or four percent figuring that we'd be close enough. I put in the cell order and moved from visa x to our money market fund conveniently by the market's close. It was down seven point six percent almost exactly when i need it. Good luck so with this sale. I now have the capital freely available and will oh little to no capital gains tax at the same time then sold an equivalent amount of e b t lx bonds and bought v tsa stocks in an ira. Because this was done in an ira. There's no tax consequence. The net effect is that i have moved bonds from the ira and stocks into it again. While freeing up money for the purchase with no capital gains tax to be paid at the end of the day our asset allocation remains the same. This is not a bet that the market has bottomed cuna. Wouldn't you have been better off if the market had continued to rise even if you had to pay the capital gains tax of course but as i learned playing poker. You play the cards. You're dealt not the ones you wish you had. If i had a crystal ball i would have sold before the drop and happily pay the tax. But i didn't. This market declines simply offered an opportunity. And i took it. I prefer the market. Never went down. And i always could sell it again. The market doesn't care about my preferences. Why not wait to see. If the market drops further that way you not only avoid the capital gain but gets a harvest to capitol lost. I want to preserve as much capital as possible for the future purpose. Selling break even is the sweet spot for this gambit. Doesn't this run afoul of the irs. Wash sale rules my thanks to the several readers who raises question and especially to john are who suggested i added here. This was my reply to james. The first who raises question wash sales apply to selling at a loss from the article. You linked to quote loss from wash sales of stock or securities. This ruling provides that if an individual cells stock or securities for a loss and causes his or her ira or roth ira to purchase substantially identical stock or securities within a specified period the loss on the sale of the stock or securities is disallowed under the section ten ninety one of the and the individuals basis. In the ira or roth ira is not increased by virtue of section ten ninety one d end quote in my case the objective was to sell at break even with neither. A loss oregon. Because life isn't perfect. There will likely be a small gain or loss when the dust settles. But it'll be too small to worry about. Why did you move into a money. Market fund rather than bonds with v bt lx mostly because it was easier. And i wanted to get the order in before the market closed i might move into bonds later. Wait but are in bonds. Best held in an ira ordinarily. Yes but remember. This was done to free up capital from stocks for potential future spending money you intend to spend in the next five years or so is best held in cash which is a money market fund is or boss planning any further moves as noted in the addendum to my last post when the market was down about fifteen percent on february twenty eighth. I moved some v. b. t. l. x. to v. Tsa ex if the market continues to drop. I'll do more of that. Taking advantage of drops like this are what bonds or four. Isn't this scary. No wrestling grizzly bear in your garden is scary but this time is different right. Nope every market drop feels like this. Time is different some day. If it truly is nothing will matter. Least of all how. You're invested example 1963 brink of nuclear war between the ussr and the usa a truly civilization ending possibility. Great time to buy no war market goes up. War market doesn't matter.

Mr Bear TSA Roth Ira IRS James John Oregon Wrestling USA
Are You Ready to Make Financial Progress in 2021?

Chris Hogan's Retire Inspired

04:44 min | 1 year ago

Are You Ready to Make Financial Progress in 2021?

"This article runs through the twelve steps to get you financially. Ready for twenty twenty one. Obviously i can't go through twelve but you. Vip's are studious. You guys are on the ball and we'll make sure we have the lincoln. There's you can go read the rest of them. But i'm gonna pick out five. Let's take a look at number. One is review your goals the of years a great time to pause and look over your current financial goals just to see where you are with your progress I know this year was tough. But we're not gonna let it stand in the way of us moving forward with our money. So let's look at this get intentional. I've got the network calculator that you're gonna get over to my website And really figure out kind of where you are. How did this year in and again. I know this year was a challenge And this year has continued to be a challenge for a lot of people. But we still need to know where we stand The next one is update your budget. Obviously you know if you don't have one this is a good time to make one Do an audit of your budget kind of take a look. Are there some things that you could cut or scale back memberships. You don't use Do you have leftover money at the end of the month where you're redirecting that So there's a lotta things we can do and again as we start off the year on the good foot We wanna make sure we're being more intentional than ever Another thing end of year. Max out your 401k. If you haven't hit your full fifteen percent yet or you've got extra to invest you can make sure you get that done before december thirty first And remember you have until april to make contributions towards your ira a roth ira as well jay as hsa. We've got some time. So what does that mean for. A lotta people reach out to a smartvestor pro Make sure you're talking to your tax professional and he lp You've got people you want to get in your corner just to start reaching out. Especially for you self-employed. vip's For you you know. Tax time is a is a lot more paperwork in a lot of details grab up. Let's start getting that stuff. Gathered up right. Now you can get that in the hands of your cpa and the your make him or her's life a lot smoother as well as your own Speaking of find your tax return And again this sound can be can sound crazy. But it's just good to make a list of the things you're going to need get that prior year's return began to just details And talk about you know for some of you does a roth. Conversion makes sense. And what i mean by that real quick to not get into the weeds if you had an old 401k That's out there. You could convert that by paying the taxes on it to a roth Again it's a process of understanding the tax consequences having the cash first and foremost and being able to take care of that. So your smartvestor pro as well as your taxi. Lp can guide you in that Will entrust review your I know those things. Don't sound like fine. But i'm gonna tell you something after twenty twenty it's imperative that we have those things in place Really really important And also let me let me tell you this real quick It's important to make sure that you have beneficiaries updated. And i mean that in your life insurance i mean that in your 401k Because hear me the beneficiary designation 401k or on a life insurance policy will supersede meaning it outweighs anything in a will so the beneficiaries that you've established on a 401k. Four five ten years ago. You need to make sure you've got that updated especially if you've had a change of life if you were married If you got divorced if you adopted a cat or had another baby you just wanna make sure. Those are updated So beneficiaries on life insurance on ira's on 401k's these things are imperative. And do me a favor reach out to your parents To make sure that they've got there's updated as well a lot of times people. Sit and forget it with these things and it can just create some headache and heartache. Later a your estate plan needs to reflect those changes And if you don't have a will do get that thing in place It's imperative Some staggering statistic out there. That almost seventy seventy five percent of people don't have a will which means we leave the government in charge of your stuff Did you hear me say that. Yeah you leave the government in charge of your stuff I the government. Can't take the government's i know they will take care of my stuff So anyway let's get a will place But anyway you know we're twenty twenty one. Start off with the right checklist. Make sure we got things in place so we're able to grow forward interesting article again. They're twelve things. We covered five. You can go over to forbes dot com as always. We'll put a link to

Lincoln JAY IRA Headache Government
"roth ira" Discussed on KSFO-AM

KSFO-AM

02:16 min | 1 year ago

"roth ira" Discussed on KSFO-AM

"A Roth IRA, rare for him, and I never will. My favorite vehicle is called the Laser Fund. It passes liquidity safety rate of return test with flying colors and it's been a grandfather tax free cash cow in the Internal Revenue code for over a century. Okay, so it's like my old Didi in my very, very first book. Good. Better best. Never let it rest. Never let it rest A good gets better and better gets best. I raise him borrow. One case may have been a good way to go when you were accumulating money. But a far cry from the best way better might be a Roth approach. But the best way is what I call the rich man's Rother. Actually, that's what savvy CPS and tax attorneys Call. The laser fund is the rich man's wrath. The laser found has the two benefits of a Roth and for additional benefits that Ross do not have. And I'm going to share with you how you can learn what those are in our upcoming educational webinar. But if you have lump sums I've had one widow who put in a couple of 100,000 years ago, said I'm not going to touch this for 10 years and a few months later, she was in a horrible accident. And she was able to access 120,000 of that in 72 hours. What a blessing at another widow that was able to live in dignity and earn average returns and excessive 8%. On the $1 million that she got in a lump sum because of her husband's death. I had another widow who received $500,000 when her husband passed away, and she's been able to generate over 50,000 year of income for 20 years on a very tax favored predictable basis. What a blessing in their life. And so you want to make sure you learn how to optimize your assets and minimize taxes. Join us for an educational webinar. This is a free webinar. We're going to teach this coming Monday. Now we're going to start right at 12 o'clock noon. That is specific time. That would be 1. P.m. Mountain time. Two PM central. We're going to teach for about 90 minutes and then we're going to follow that up with about 30 minutes of live questions and answers. And when you register for this free webinar, you'll have the opportunity to receive free a.

Laser Fund Didi Ross
"roth ira" Discussed on WJR 760

WJR 760

03:38 min | 2 years ago

"roth ira" Discussed on WJR 760

"Have a little fun today, folks, But I think the point you know, obviously of the show is, you know there's things that you don't know. And and you need to turn to people that deal with this every day to make sure you're not making him stay because the mistakes that you make in my retirement planning are costly, and I mean in dollars and cents. All right, but I'm like I got another one for you here. Because you're right. They are costly and they could be costly. Here's the thing we've said many, many, many times here on America's wealth management showed that a investment mistake can be made up. If you have enough time true, OK, agree a tax mistake. There's no do over. There is no do over because it's for that specific time frame. That's right. Uncle Sam doesn't give you a do over. So, Bud. Which type Retirement account. Gives you the most favorable tax benefit. Is it the 401 K? Is it the traditional IRA? Or is it the Roth IRA or the Roth 401 K. Well, you know, you gave me a softball there, Roth. By far now this is one of the things that you and I have talked about on so many occasions, and that is You. You know, you don't get the deduction on the Roth IRA account. You know from that perspective, but that after tax money, that's the seed or the harvest. Right? It is the fact that People. I think I've got it wrong. We've been doing this pretax, pretax pretax, and we're going to see this situation that when we go into the next when we look at see what Biden is going to bring up, assuming he's gonna have the presidency, all right, here's the thing, though, but That very basic question, which has the most tax benefits, whether it's the traditional IRA or the Roth IRA. Let me tell you where I think that is messed up so often, Okay, okay. You take your tax return, or you're doing your tax return on turbo tax and You're running through there. You're sitting down with your c P A. You're looking at the screen on TurboTax and it says to you, you know If you would make a IRA contribution in the amount of $6000, which is the maximum out you would reduce your tax bill today by $1500 by $2000. Whatever tax rate you're in, right and so What happens is that the typical C p A wants to they? They put on their C p a hat. They're preparing your tax returns. And what they're trying to do is be the knight in shining armor. The guy writing on the white horse and saying I'm here to save the day. Look what I just did. I let you put $6000 into an IRA and reduce your tax bill by $2000 are my hero. And so the tax benefits in the initial year, right are greater for the traditional IRA or traditional for okay, However, the long term tax benefits are far better. In the Roth IRA. Absolutely no doubt about that. This is going back to what you mentioned before, and that is either pack. Pay the tax on the seed or the harvest paid that tax in the year you had to, But that's the last time you're gonna pay that tax. All right. So here's a Here's a little question for you suppose that you have a married couple filing jointly. Earning income five years from retirement. That puts them in the 32% tax bracket in retirement. Five years from now, they will have 100% of their debt paid off and can live. On only $100,000 per year, putting them in the 22% tax bracket. Which type of retirement account. Should they invest in today? Would it be the traditional IRA? Or would it be the Roth IRA?.

IRA Roth Biden America Bud
"roth ira" Discussed on 710 WOR

710 WOR

02:15 min | 2 years ago

"roth ira" Discussed on 710 WOR

"Four on cases. Greater Roth I raise offer. The advantage of no rmds. All you have to take an arm Do with rough for one K number five. Qualified distributions have different rules when it comes to funding either. A Roth Ira Roth four, Okay, the goals to take tax free distributions. Or to leave it tax free to your kids. For this to happen. You must have a qualified distribution. The rules for distributions from Roth IRAs are more favorable than those for Roth for one case. So if you're retired, you want to probably take your RAV 401 K making a Roth IRA. Also your five year period starts with your first contribution to any Roth IRA. Roth for one case, the five year Period for qualified distribution applies separately to each plan. So the five year old is You can take money out tax free if you've had a Roth IRA for at least five years. Number six. Roth IRAs have more favorable distribution, ordering rules. What if you take a distribution that is not qualified? Well, the rules for non qualified distributions are also more favorable from Roth. I raise than Roth for one case with Roth IRA. The order rules state that earnings We'll leave the Roth IRA. I last. This means that the only funds that would be tax will come out after you roll after you take all of your other Roth IRA funds that have been distributed Rock for own case or not, as lucky. Distribution that is not qualified is subject to the pro rat a rule, which means a portion of each distributional be tax. So it's better to have a Roth IRA. When you start taking the money out. She may want to roll that role for one, Kate a Roth IRA. So give us a call 889 today, Josh, if you need help with this aged 89 today, Josh If you want tax planning with regard to your investments. Investment planning, investment management, both tactical and strategic asset allocation. And, yes, we are fiduciary. So give us a call 88 today, Josh will be back after these messages..

Roth Ira Roth Roth Josh fiduciary Kate
Making your money work in a stock market selloff

Clark Howard Show

06:11 min | 2 years ago

Making your money work in a stock market selloff

"So the stock markets here in the United States and elsewhere in the world. Are Having significantly rough days. And I don't know and nobody knows if this is the beginning of a true lasting stock market rout. That would lead to its nose, a correction where the value of your investments in your 401k or an investment account or whatever would fall typically ten percent or more, or this could be the start of a bear market, which is a decline of twenty percent or more, or it's just a few bad trading days. The reality is that what set off? The. Problems for investors. Is the extreme increase in the number of corona virus cases in the United States point where hospitalizations are surging. And we are at what? Public Health people refer to as a critical point is the kindest words they're using. There are some that are like talking about panic about what's going on with Corona. Virus and we do have a real problem because we have the public health aspect. people getting ill we are going to have unfortunately a spike in the number of Americans who die from Corona virus the good news. Is something that I talked about recently that is that the hard working people in medicine. Have come up with better ways to treat people. And so is they've learned over this year and so even the spike in cases, the fatality rates will not be as ugly versus number of cases is they were earlier this year but regardless. This is really ugly for the economy. And the doesn't matter the false choice arguments. About lockdowns not lockdown whatever what really matters. Is What individuals choose to do and individuals by their actions are showing that they are going to do. less eating out less travel, less different activities that will impact how the economy's doing. We had kind of stalled to help with half the jobs lost to corona virus have recovered the other half not. And now we're going to face what could be a very difficult next few months. The good news is that we are closer. To having vaccines that seemed to work. And widely adopted if they are in twenty one. That Corona virus will be defeated in the meantime though it's going to be tough for people's health, their lives and the economy, and that's why the stock. Market. Is Tanking, because economic activity Will. Decline because of this search and. We need a new game plan we need a new roadmap and I think we will get to one about how we do disease management. In the US, we're just not there yet. So. What does that mean to you? With. The concerns have been hearing from people with what may be the most unloved stock market. I can recall where the stock market has had. These great values for a long time people have been really really afraid and polling of investors shows that people have been really worried that we would have the market tank because of how valued stocks been potentially overvalued. So. I don't want you to react emotionally. To this wave of uncertainty. I want you to think about what game you're. If you have money in the stock. Market. The, you need right away. That's dangerous. If you have money in the stock market that you don't need for a good while. Then this isn't dangerous. And I'm a huge believer in something Warren Buffet. was talking about again recently. How for individual investors? You want to invest on a regular schedule. It's an old boring concept. That has the double dull name dollar cost averaging. The idea is that you ignore. Current News about the economy. And what you do is you're steady as you go because you're not investing four today you're investing for the long term. And if you put money on on a regular schedule, most often for most of us that would be through a retirement plan at work or potentially through a Roth IRA. If, you put money in each pay period or each month. You don't have to worry as much about the short term zigzags with what investments are worth. The reason is, is that particularly for those that are under age forty five? calamitous stock market today makes you more money over time for when you will use the money later in your life it's simple math. because when the market declines every dollar you put in from your paycheck. Buys you. The equivalent of more shares of whatever year investing in through retirement plan at work or on your own.

United States Corona Warren Buffet.
"roth ira" Discussed on KLBJ 590AM

KLBJ 590AM

02:05 min | 2 years ago

"roth ira" Discussed on KLBJ 590AM

"When we have our lines available to make sure that I get to your question, and we have ample time for me to do my best to answer it. Start with something they came up last week, and I wanted to get a right off the top of the show. And Gary are right. Your listener. I hope you're listening to second and the question is If I'm going to do a Roth conversion may I use in kind securities? OK, let's help me only just unpacked that So if you own an IRA And you decide that it's to your benefit to have a Roth IRA. You can make initial contributions. As long as you qualify with taxable there a beg your pardon earned income and you don't make over a certain amount of money. Which you can also take money out of an irate and put it in a Roth IRA. And that's called a conversion when you take money from, say, an employer sponsored plan, like a 401 K And put that in an IRA that's called a rollover. So the question is, If I have security, let's just say mutual funds in my IRA. I want to convert some of that over to a Roth IRA, and I'm willing to pay the taxes on that amount, which I convert. Can I just transfer over those mutual funds or do I have to sell the funds and transfer cash and then repurchase the funds that I was miss taken? You can in fact, On a conversion use securities or as if you're putting contribution in meaning. New money versus Ahh Kat versus a conversion you can't say take money out of your own individual or joint securities account in the form of mutual funds and transfer those mutual funds. And count. That isn't a Roth IRA contribution rather. But when you do a conversion, Yes, you can use security. So gotten glad I got that cleared up. And if you were listening last week, and I hope you were Then you'll be be better informed about that. You're listening.

Gary
How Do I Do the Baby Steps on Disability?

Ramsey Call of the Day

04:45 min | 2 years ago

How Do I Do the Baby Steps on Disability?

"Eddie's weathers in Salt Lake City Hi Eddie how can we help? Rachel. Talked to you today you to what's up. Well I I'm wondering how my baby step journey actually is going to look I. most of my. Is actually from disability income. and I've somehow managed to make myself to pass baby sent three gut and. Now, I'm looking at. Trying to save for. The future and possibly by home Do you make a smaller earned income so I'm able to contribute to A. Roth IRA. But. I'm just Kinda wondering that doesn't quite get me to the fifteen percents. And I'm wondering how to do that and balance three be at the same time. On this kind of income. So what is your income? Make about. Forty eight, thousand from disability. What is the nature of your disability? blind blind. Okay. All. Right and who pays. Its from a workplace insurance policy thought I was actually injured on the job my goodness I'm sorry. Are you have you lost one hundred percent of your side or just most of it? Good Chunk of it. I still have. Some people would call functional being able to see. Some objects just no find detail at all just generally you can walk around the room but but but the idea of opening up a website and looking at it's off the off the off the out of the options. What are you doing for your extra earn money? I'm actually still teaching. On teaching. The subject that was trained in. So I was teaching chemistry. Able to do that still how That's so cool. How do you have been doing it for thirty? Years doing it all from memory. YEA, pretty? Much. Okay. All right and you got the lesson plans in Braille or whatever have you learned Braille I have some adaptable software Screen thing okay. Well, good and then after thirty five years off thing or two about it. Yeah. Yeah. That's promising. That's promising. Okay. Cool. Well, the reason I ask all these questions is on your right you can you you know you're doing good and how long ago was the accident? Seven years ago. Okay. How old are you? forty, seven you're over your and overcoming man you've been getting it I'm proud of you and your your impression. Thank you. So I, mean because that's a life altering to say the least and some people just get paralyzed and you just kept rolling man good for you. All right. So how much do you make teaching Eddie? Kind of. It's been as little as about. Nine thousand. And it's been as much as about thirteen. It's all depend on. You know how much I get person master? Okay. Yeah while say because between that and your disabilities or are you are you married kids family situation? Not just me. Okay. Well, I was GONNA say that's a relatively. Average income. That's the positive part is how to do the steps in disability is that people are doing it with this amount of income they're just working their way through it. So if you wanted to pause baby step forward to do baby step three B and go ahead and save up that down payment, you could for a short period of time just kind of accelerate that and actually get that quick win faster than if you were putting your money into that Roth Ira so you could do that as an option. Yeah. I agree I think you're getting there. Let me tell you what I'm hearing I'm hearing you got. Big Future ahead of you. And you've been through hell and so it might be harder for you to grasp that future but. I think I think you could do it I think you could I think you could do tutoring. Thank you. Could you might double your income If you push around and think about this a little bit you don't have to but you're just a survivor man I mean you've gotten after it. I'm so proud of you. So I would be continuing to think about ways you could do the teaching because you know your stuff like you said and anything you can do to get your income up, of course, accelerates all of these issues.

Eddie Roth Ira Salt Lake City Rachel
The stock market has fully rebounded since its collapse in the Spring

Clark Howard Show

06:13 min | 2 years ago

The stock market has fully rebounded since its collapse in the Spring

"I think about over the years. How I never for a long long time ever took any kind of question about investing. We're not an investing show. But over the years gradually, there's been more more people asking me things about Roth IRA's 401k's that sort of thing as people who were never. Focused on the stock market or investing heaven forced to as employer pensions have generally vanished and so people who are not interested in it particularly studied for it are left having to understand enough. To protect themselves building towards financial future. And so a time like right now can get extremely confusing. So we're in the middle of a pandemic. We're in a recession. We been through a time period over the last five months where fifty million of our fellow Americans have fazed at least some time and unemployment we continue today with. Tens of millions still in unemployment people whose job situation has been unstable where they are employed on an. Employed again maybe facing another wave of unemployment. How in the world? In the midst of this could the stock market have cratered when the pandemic started? And now is it all time record highs? In addition. Apple. First Company I guess ever in history anywhere on earth to hit a value of two trillion dollars. I mean that's unbelievable. That's two thousand billion dollars in value. For one company. Well. I want you to drill down on this and understand how it affects you and your wallet. A lot of people are nervous. who have seen their accounts recover but still nervous like is another shoe going to drop. So it is normal with investing. The markets go up and down routinely over time. The recovery in the midst of a recession. Is By itself not unusual many times. The stock market is a leading indicator of where we're headed and remember the corona virus recession. Was Not a recession because of underlying problems with the general economy. It was because of. Health related problem that caused the unemployment and the recession that we're in. So the underlying fundamentals are sound. As for the values being assigned to stocks right now they are normally. So I would not say that this is a bubble. But I would say that stocks are overvalued. Let's say I'm right. What difference does that make to you? If you're putting money in a 401k. or a Roth IRA or something like that. If, you're well diversified in the fun choices in their urine, the target retirement fund choices you're in. Various index choices and you're building money every pay period or every month, and you're building towards future down the road then whether the market is overvalued today, even if some stocks like a tesla are in a bubble. It is insignificant and unimportant for the glide path you're on. So don't let the noise. Of. A market being good or bad. Change, your path if you were well diversified and by being well diverse by being a target retirement fund by itself is an example of you being well diversified with your money spread out across the economy various sectors. Typically thousands of stocks. And other alternative types of things to stocks, the simplest and the least Thing that would be alternative binds many times her in target retirement funds. If. You're in index funds you own. typically five hundred to three thousand stocks and so your money is spread out. I will tell you though, right. If you're an individual investor buying individual stocks. Including all the newbies on Robin Hood. Know that your buying and selling of individual stocks. Is. A? Riskier? Endeavor And a lot of people doing Robin Hood. Is I've been reading or even doing things like. Trading. This is very, very risky to you. And it is not the basis of where your financial life should be built I. Mean you can do whatever you want. I'm just telling you. It's more risky so. No also, there's a big concentration. In the run-up and stocks in a tiny number of high tech stocks plus, Tesla. And so it means that these stocks are priced for perfection. Plus. So. Do I think there could be a correction coming? Of course, there's always correction in the stock market. Do I think there could be a bear market in our future. Yes. But there's nothing imminent. That says something like that is going to happen. It happens typically when we least expect it. So steady is you go with clear goals in mind Is Key to your financial future and security.

Robin Hood Roth Ira Tesla Apple
July Mailbag with Jason Moser

Motley Fool Answers

44:21 min | 2 years ago

July Mailbag with Jason Moser

"The. Multiple answers I'm out Southwick and I'm joined, is always by broke camp. Personal Finance expert here at the Motley Fool. Hey, BRO, well! Hello Alison. It's the July mailbag where we answer your questions and this month it's with the help of multiple analyst Jason Moser. Should you buy a house now? What is modern portfolio theory and also here Jason's thoughts on a lot of stocks all that and more on this week's episode of Molly fully answers. Jason thanks coming back. you know I mean i. told you you invite me. I'M GONNA. Be here every single time. Thanks for having me back. I mean we appreciate it because we know you're a busy man, and so we do appreciate that you carve out time for us in our little show, don't. Always always make time for those important people in my life rule number one make time for allison and Bro I love. It sounds like a good one to me. Everybody wins. All right well, I guess we should just get into it, so the first question comes from Darren I've subscribed to the full for over a year and I'm really pleased with the service. I would like to know your thoughts about my holdings in Shop Affi- I've bought several times over the last three years, and it's now over thirty five percent of my portfolio and I. Don't know if I should continue holding or trimmed down. What would you advise a good problem to have I was gonna say that exact same thing? That's a good problem have? In a very glad, you have subscribed to our services in your really pleased. That's that's what we aim to to do. We aim to please help you make money and so yeah. This is one of those situations that we will find ourselves in from time to time as investors. A nice problem to have but something you do need to address at some point because it is going to be a little bit different for everybody. In so coming from the perspective of I, also own shop, a Fi stock in it's it's a wonderful investment. It certainly is taking up a bigger. Part of my portfolio a not at thirty five percent where you are. I think for me. It really does boil down to. That sleeping at night test in other words, you need to be able to go to sleep at night without worrying about this kind of stuff, and if you feel like shop, a Fi represents too much. Of your portfolio if you feel like you're overly allocated their, then, you may need to consider pulling it back a little, but now I mean it's. It's I think it's always important. Note you know. It's a big difference between building up a position buying a position to make this size to make this type of allocation in your portfolio. It's another thing entirely to have position grow into beat into becoming that size i. mean that that is that is in a little bit of a different dynamic there, so people all the different ways, some sometimes folks will, they will just sort of looking at it from the house money, concept or you. You just sell enough shares to recoup your initial investment, and then you let the rest of it go. Some people are perfectly fine with thirty five percent. Some people are not. They want a pair back so i. do think you need to kind of figure out what helps you sleep at night I do think that shop by a great business. I think the biggest risk in only shop, if I right now is valuation, just because it's dominating, it's space, but it's not making any money yet, and it's probably going to be a little while until they do so that valuation risk is there, but ultimately yeah I think determine. Where you feel most comfortable with it, and if you feel like you need to put a little bit of that money off the table, and he thirty five percents a lot, certainly very understandable. If they've said something you need to do if you do decide to pair it back a little bit. You've made multiple purchases, so you can identify the shares to sell to manage the tax consequence if this isn't a brokerage account and not an IRA. All right next question comes from Steven. If you are forced into unemployment, you are paying federal income taxes on unemployment payments are not contributing to social security nor to Medicare. How does this affect your future calculation of social security benefits and can one contribute to the social security fund during unemployment to mitigate any adverse effects on benefits, it is a little bit adding insult to injury, but you do owe federal income taxes on your unemployment benefits, and if your state charges has a state income tax, you probably have to pay state tax on that, although there are a handful of states that exempt unemployment benefits, so that's good news. And by the way you, you could have taxes withheld from your unemployment benefits you file. This form called form w four V. if you want, they withhold ten percent, or you can do quarterly estimated payments if you wanNA avoid that big tax bill at the end of the year, but if you're strapped for cash is probably just better to get the money now worried about your taxes later Eh. Stephen notes out. You do not pay payroll taxes. Those are the things that go into social security and Medicare so. So. It could result in a lower social security benefit, however, keep in mind that social security is based on your thirty five highest earning years, so if you enter the workforce at say twenty two and you work until you're mid to late sixties. That's more than forty years where the working so hopefully. If you miss out, if this year is not so good somewhere among those other forty, five or so years, you've had thirty five really good year so that this year won't be that big of a deal. So it probably will be okay. And then to address the last question. Unfortunately, no, you cannot make voluntary contributions to social security. There is at least one academic working paper out there. That suggested that people could buy into social security by like extra credits as opposed to contributing to your 401k, but so far that has not been passed by Congress I had an ex. Question comes from Sam. I heard to stocks discussed on another full podcast. When I read articles about them, it mentions they are thinly traded. I have two questions one I'm sure my position would still be quite small so I think I'd still be able to get in and out, but are there other things I should think about when it's a thinly traded stock and question number two. Is there a certain amount of? Daily volume you like to look for when considering a stock foreign investment. What volume do you want to see to not be? Quote thinly traded stock. Yes very good question in thinly traded stock just refers to the either the amount of shares or the dollar volume of shares that would trade on any given. Market Day and so. The. Thinly traded stock. The the problem is that you may not necessarily able to buy and or sell at the prices. You necessarily think you might be able to in other words when you look at a stock's price and you're looking through the. What what's going on throughout the day on the market, you'll see that did ask spread, which is essentially the bid. Ask spread is it's what someone's willing to pay for the stock versus what someone is asking to be paid for the stock? Because you know you have a buyer and a seller on on in every transaction they're. Normally most cases, these business business bread is very tiny, the couple of pennies maybe for most stocks because they're. They're heavily traded right there. There are plenty of dollar volume. But there are a lot of smaller companies small caps in particular in in you know a micro cap, specifically that don't necessarily meet these kinds of thresholds, and so you definitely have to be aware of that now I'll go back in time just a little bit, too. When we were running the service here at the fool called million dollar portfolios Roman Romani portfolio that we help manage members, and it was never really a problem, but we did have a condition in there. We were always looking for at least ten million dollars in average. Trading volume total daily volume now understand I'm not saying the number of shares saying the amount of money so basically shares times price, but we're always looking for at least ten million dollars. That wasn't set in stone it. It was an idea for us. It wasn't ever really a problem because we had a very diversified portfolio with a number of different types of companies, but when you're looking for smaller companies, you would've just keep that in mind that did ask. Spread is is something that just because it says the stock is twenty dollars. That doesn't necessarily mean you'll pay twenty dollars if there is a a big spread there between the bid, and the ask in so I think whenever you're considering stocks that have any lighter trading volume or thinly traded stock. Just be sure to use limit orders. Limit Orders of let us stipulate the price that you are willing to pay for or that you're willing to. To accept a if you're selling a limit, order is just a really good way to protect yourself from any unwanted surprise thinly traded stocks. You might not always necessarily get them when you want them, so you might have to lead that limited are in there for a little while, but but a limit order is a great way to protect you from any unwanted surprises. Next question comes from Randall. I'm in my late thirties now, but earlier in my life. I was very very bad with my money. Collection Calls Welfare and bankruptcy or not strangers to me. I've been at the bottom then I met the love of my life, and she convinced me to turn things around ten, and a half years later and I have done a complete one eighty, I took control of our finances rebuilt my credit and started investing and listening to all you find folks all. I opened it investing account with the goal of saving and building enough a down payment on a home. I'm happy to say we've now reached that goal. I recently sold at a profit because I didn't want that. Money tied up in the market. If we are close to needing it for a house, but now that we're here, I'm not sure what to do. We currently rent a basement apartment and our neighbors general living situation are less than ideal to put it mildly. So, we're champing at the bit to jump into the housing market that being said the experts have been calling for a drop in the housing market for a while, and that was before the pandemic hit now I'm worried that if we buy right away a year or two or three from now, interest rates will spike, and we could be put in a difficult situation. I live near Toronto. Canada or the housing market is already highly inflated in relation to the rest of the country should I be worried? While Randall first of all congrats on turning your financial life around love hearing success stories like that so good job on that. So I'll start with my standard answer with the rent versus buy decision, and that is just pull up spreadsheet and compare the all in cost of renting, including what you could earn on the money that use for down payment versus the all in cost of buying including the opportunity cost of putting down payment as opposed to having invested as well as insurance and taxes and maintenance, and all that stuff and project, where you might be in five to ten years based on various scenarios on what happens to stocks, if you. Rent an invest the down payment versus what happens to? What you'd look like depending on where home prices go. Generally speaking. If mortgage rates go up, that could way down on real estate prices we did see mortgage rates. Go Up for a bit a few years ago, but the housing market did find, but you could certainly envision a scenario where rates went much much higher, making houses, much less affordable and prices would have to adjust. But I don't expect that to happen anytime soon. I think we're. GonNa have low rates for awhile, but beyond that I don't know I've given up trying to predict where interest rates are going or even paying attention to people who try to predict where interest rates are going, so who knows? That said since you live in Canada. I thought I'd check. In where rates are these days and I and I got a brief reminder that things are actually different in Canada so I did a little bit of research. And then realize I had reach out to someone who knows, I reached out to Canadian Motley fool analysts Jim Gillies, and he had some thoughts so first of all just for you non-canadians out there. It is really different so in America. We get this thirty year mortgage than we have the same payment for thirty years. It's fixed. They don't have that in Canada. What's the most common is a twenty five year? But only the first few years or fixed. And then adjusts so in that context you can understand why Randall is worried about interest rates going up because over the next depending on which alone he gets the most popular is a five year fixed, and then you basically have to go get a new loan probably. So that put that in context, a little more, but also Toronto, really is crazy expensive. Vs from the end of last year that put it as the most overvalued real estate market in the world behind Munich. As Jim pointed out in our call here in the US we had our housing peak in two, thousand, six, two, thousand seven, and then we had what he called a reset, which is basically prices came down significantly candidate and have that slight downturn at home prices, but then they just kept on going up, so it really is different there, so when Jim explain all this to me, the difference in mortgages and the difference in home prices. Frankly he was inclined to say to this guy. You Might WanNa rent for while more and see what happens, but he also had the good advice of okay. What if you buy in prices? Come Down Fifteen percent twenty percent. What if they come down to a point where he upside down? You owe more than the home is worth. Are you okay with that? If. You're okay with that. Maybe it's okay to do that. But it certainly sounds like dicey situation than if someone were telling me like I'm thinking of do this in Dubuque Iowa or something like that. couple of other differences. In case you're curious about Canada in the US. Your mortgage is portable in Canada south. You Buy A. Get the five year mortgage, but then move get to take the mortgage with you for the next house and interest is not tax deductible. US Look at you, Robert, broke? Camp Can Canadian real estate experts there you go. Next! Question comes from Chris. I was on twitter the other day and saw that one of your contributors Brian Feroldi tweeted that he doesn't believe in a long list of technical trading terms and then modern portfolio theory. Can you help me understand what not believing an MP? T with mean this? He believed that diversification doesn't reduce risk. Also every financial adviser I've ever talked to his preached empty, so I would love to hear the counterargument. Jason you're not Brian for all the. Question I am not Brian for all the do get the talk of Brian Pretty good bit though. I I must admit I. Don't know what he said here in regard to modern portfolio theory and all of these technical trading arms. But I think I can take a guess. Generally speaking I agree with them, and I think you could sit there and look up the portfolio theory in you know read about it as much as you want. Just go to google modern portfolio theory, and you can dig right in there, but in a nutshell ultimately, what modern portfolio theory is the intention behind it? It's meant to reduce risk while maximizing returns. It assumes that investors don't like risk. They prefer less risky portfolios to riskier ones in order to achieve a certain level of return so right there. I kind of kind of lost me right there because I don't believe that every ever investors risk averse I think some investors have a very. Healthy, appetite for risk, and frankly I would say I got a pretty high tolerance for risk when it comes to investing, made it just because of what I do for a living but I. You know to me I like having that trade off least unhappy. Happy to take some risks there. If I feel like that upside, it's going to be potentially worth. So with modern portfolio theory, it introduces a lot of fancy math in the form of variances and correlations in order to come up with this. Quantifiable, investing strategy that ultimately helps reduce risk while allowing the investor to achieve. Certain returns in. Maybe it works for some not I'm not dismissing it personally I. Don't use it, I don't personally subscribe to it I. Don't need it. I think honestly for us. In a really believe it's extends to to most people in our full universe is that is individual investors I think a more meaningful way to reduce risk. is to just extend your timeline like invest longer. So like Tom Gardner said a number of years back when we were. Working on Motley, fool one basically take your take the time line that you think you want to own any individual stocks you buy shares of starbucks and I plan on owning it for you know five years. Okay, we'll just double it. Cloning it for ten in all of a sudden right there. You've given yourself more time. Time is one of the big advantages we have is individual investors. Money managers don't have that advantage, Wall Street done generally handed abandoned, either, but if you can be patient and just invest in good businesses. That risk really starts to come down over time. There are plenty of studies out there. That show that risk comes down the longer you hold onto those stocks, which into me, just renders modern portfolio, theory, more or less not useful mean on things, not useful for everybody, but it's not useful for me and based on Chris. Question It sounds like a agree with what Brian was saying there. We think I'll add to. That is I agree that risk is really not that much of a consideration if you are saving for retirement. But once you are in retirement man, and just say like you know what the market's not I'm going to extend my time highs in ten years. Because you need to spend money in that situation, I think diversification is important. It's important to have assets that don't always move the same direction at the same time. For some fools. That's just as simple as keeping any money need the next five years in cash, so you're right out any ups and downs, and that can be fine. But I. do think it makes sense to have. A mix of investment so that right now, technology stocks are doing very well, and we hope that continues to do well, but we remember was that happened in two thousand from two thousand to two, and there were down for quite a while anyone who retired in one, thousand, nine, hundred nine, or so it was very happy to have some small caps value maybe a. A little international, some reits to ride out the storm Yeah I think we talk about that often like recognizing where you are as an investor in life, are you in the grow your wealth stage, or are you in the protector stage, because they are two very different strategies, and we're all hopefully going to be in both of them at one point or another right? I personally and still on the grow your wealth stage I. Think we all probably are, but you will at some point get to where you need to focus on protecting the wealth that you've made so that you can then have that money to spend, and that definitely will dictate your investment strategy things that you're invested in and whatnot. Generally speaking I do like the idea for people who are just risk averse and have this notion that investing is just too risky. I mean the fact of the matter is not investing as far away greater risk like not investing. You will never grow your money if you don't the best, so if if if risk is a problem, I think generally speaking. Along the lines of diversification idea that that bros. talking about him, he just invest in invest in SNP index fund is something that just follows the progress and p. you know you're going to be participating in and if you look at that over the over the stretch of time, their five ten twenty thirty years, I mean that trend does go one way. It, but clearly the older you get, the more you need to start focusing on protecting your wealth, and that will change the way you view things. Right next question comes from Alex from Alexandria if I buy Muny bonds from another state in my IRA. Is it still taxable and Alexander with who we have a bond on and we do have a bunch. I know Alex up super excited about having a bunch on in Alexandria to I can't believe I haven't been there. It's like two miles from my house, but we still haven't been oh i. know because there's a global pandemic going on and we. saw. Alyx if we buy me bonds from another state in my IRA is still taxable. Bro, help him out or her or so Muny Barnes. People Invest Immunity bonds because they're free of federal taxes and in many cases. If you're buying bonds issued by the place you live, they might be free of state and local taxes, so that can be doubly triply tax free. That's why people buy 'em. There are some times, however that if you own immune, abound outside of an IRA. Pay Taxes and this surprises some people. There's something called the minimum tax. If you buy immunity bond at a discount, and then it matures at par. If you buy a distress, Muny bond for like you put an eight thousand dollars, and you sell it later for ten thousand dollars as a capital gain. You'll be taxed on that. So, there are some times when you would pay taxes on media. Now, Alex is asking what if it's an IRA? Do I have to worry about paying tax interest. If it comes from another state and the answer is no, you won't have to worry about that. The only thing I would say is. Generally speaking immune bond already has built in tax advantages, so you wouldn't keep it in an IRA, unless there's the example of the stuff I was saying previously like for. It's one of those exceptions when him UNIBOND would result in taxes than you might WanNa keep it an IRA, but generally speaking. If you're going to buy Muny Bond, keep it out of an IRA. Next question comes from Boone. I just did my first. Roth conversion and looked at that old account for the first time in. There was the expected dividend producing fund I remembered, but there was a stock chesapeake energy that I had completely forgotten about since I purchased the stock in two thousand, six fifteen. It's down way down like eight point five percent off the purchase price. What should I do with it now? It's in a tax deferred accounts so I. Don't think the loss is realized until I. Start to pull money out of the account and that might not. Not Be for fifteen years current value of all my shares will be about one percent of the value of the account after the conversion. Do I sell in the very little value? I had left and depend on E. Trade to keep up with lost for me or should I hold on based on the slim chance. The stock will be worth more in the next ten years. Oil Stocks do act unusually on occasion, only oil stocks. Stock everything else makes that usually. Chesapeake has been really. Interesting Story to follow and frankly. I don't I. Don't know that I would look at it today. As a business that I'd WANNA own so typically if I. You know I think it was yet idea. Didn't sound like a position are actively building united investment didn't work out. I mean that that happens to all of us. We don't get them all right. We have a philosophy here at the full. A lot of do we like to? Water flowers and pull the weeds, and that's just a nice way of saying. Add to our winners in to get rid of losers in. This I think is more than likely slated to continue being a loser I mean. Chesapeake has lost a lot of value. In it does sound like based on when you purchased this, these is absolutely busted I mean. There there are all sorts of reasons to sell one of them is if you thesis busted and the reason why you invest in the company is is no longer the case, and I would he probably is the case with Chesapeake so to me like you know, you could sit there and let it go, but but what's the goal trying to get back to even, or are you trying to get back a couple of bucks for me a lot of times? I'll I'll take a little opportunity here and there to just go ahead and pull those weeds sell it. Be Done with it. In even though it's just unique out a little bit value there, you can still take that money and do something more productive with it. So. Yeah T to me. I can't tell you to buy or sell obviously, but I can certainly understand. Selling in this case, but I you know. As as oil and natural gas energy can can turn around. This is going to be one that has a lot of headwinds in in. You might be waiting a very long time to to get any of this money back. I point out here that I it seems that maybe boone has a slight misunderstanding of how taxes in aries work because he talked about realizing the loss when he takes the money out and trade keeping track of the loss for him, it sounds to me that he thinks that he can write the loss off whence he takes the money out. That may not be the case, but just to be clear. One of the great benefits of an IRA is you don't pay taxes on the gains, interest and dividends from year to year. But. One of the drawbacks is. You can't take a capital loss on that as well so there's really no no way to benefit on your tax return from this loss. Next question comes from Benjamin. You recommend seeing a fee. Only financial adviser for check in every so often I know there is the Garrett planning network and others to help find an advisor. But what questions do you ask? And what answers do you listen for when trying to find one that is worth his or her one hundred fifty to two hundred fifty per hour. So I would say start first with asking yourself some questions. What are you looking for? You could go for the whole launch. Lada where someone is managing your money analyzing retirement plan helping new save and a five twenty nine. Maybe even doing your taxes with some financial planners do help with the state planning, or are you looking for something more targeted? You just want advice about am I saving enough for retirement, or are you close to retirement? You're like I just WanNa make sure that I'm doing right when terms like choosing my Medicare plan and claiming social security at the right time, so first of all just be very clear of what you're looking for. Then if it involves investments in any way, you WanNa, make sure that you find someone who is at least in the general same area philosophically and I say this, because many financial planners are hardcore index. And if you come to them as a motley fool, listener member with a lot of individual stocks. They may say okay. I'll give you some general asset allocation guidance, or they'll say I don't care if you like to pick. Stocks are not my advises, sell the stocks and go to index funds, so you want to make sure that if you're gonNA, ask for any sort of investment. Advice that you wanna find someone who's someone somewhat at least aligned for what you're looking for. Once, you've got that then. Just asked some of the typical stuff. You might expect so credentials certified financial planner. Are they a CPA either their personal financial specialist. How long they've been in the business. There are lots of people who. have not been in the business very long. Even though they're not young people, a lot of people choose financial planning as a second career, which I think is great, but just because someone may be look like they're in their forties or fifties. Sixties doesn't mean they've been in the business that long, and you WANNA. See if they've worked with someone like you right so if you have. Maybe. You have a large amount of wealth large income huge portfolio. You WanNa make sure that they have experienced with dealing with those issues, but on the flip side to if if you have, are you know middle income, decent size portfolio, but nothing too complicated. You don't WanNa. Go to someone who's used to dealing with someone who's wealthier partially because those people charge a lot more. You want to find someone who's kind of a little more lined up with what you're doing. Then make appointments with three folks. All of them will do get do free. Get acquainted means, and you're just looking for someone who you feel comfortable with. Since, you mentioned Garrett Big Fan of the Gary Planning Network and other is is not for the National Association of Personal Financial Advisers. But Garrett on their website has a how to choose an adviser section. Just Google attitude visor Garrett Planet Network has a great chapter from a dummies book that they wrote about how to choose adviser, and they have a good questionnaire that you can print out in US asking lots of good questions of financial planner. It's tough. Choosing a financial planner like my mom just went through that Bro! Is You know and she didn't really have a lot of options in Boise Idaho. Maybe two and one of them, she I never called her back, and never got back her, and the other one was just so busy just so busy, and just she just never. It's it can be rough. Finding a financial planner can be I. Think what we'll see is one of the consequences of this. Of the coronavirus pandemic. Just, like we are all used to working from home, many financial advisors and financial planners an now working from home. So in what they're doing is they're becoming licensed in more states. So, if you are more comfortable, working with someone over zoom remotely I think you don't have to stick with someone in your area. You can go beyond your locations, but you know some people don't feel comfortable that if if they're going to have someone managing their life savings, they want to be able to meet them in person. That's just a personal choice. All right next question comes from twitter. Is that right from sully what I hear? Okay? I just listened to the episode mentioning Your Weakness Two. Shopping carts and Tj, Maxx that me or you Jason. Accused me. Thoughts on the stock. If I had a war on Amazon, basket would be Costco TJ maxx Home Depot tractor supply. What would be your basket against online retail? That's funny. Well okay, listen I wouldn't have basket against online retail, because online retails where it's at. The whole idea. The whole idea behind the basket approaches to find a long term trend that you feel like the world is headed toward and so the war on cash basket, for example that was always one about people using cash war, traffic payments now with that said I get the spirit of the question some going to answer it because I do like some of these ideas. And I I would definitely include Costco in their in Home Depot's well. Home Depot gets a lot of my money. Doesn't, but they have a very loyal fan base of customers that just are happy to renew year in year out. So I love those membership models there, so costco and a Home Depot for sure you know I'm going to give a little shout at my wife Robin I. Know that she would approve of my adding target to the mixer. She hasn't been raving about targets APP and ordering on the APP the able to go to the store. Just pick it up right there I've talked with Ron Gross on more than one occasion about target and how this really has. Become a twenty first century resale right they're doing. They're doing everything online and in physical stores. What they call Alma Channel and then my fourth and I'm GONNA. Take this. You probably aren't expecting this when Alison. I'm GonNa Shock and all you. I'm ready. I'm ready Alta. We're going. Make up my I know my daughter's love. It ugly ugly Mug like this. What do I know about makeup? Tell you what. Get! A House with two daughters and a wife. That's what I know about make. There's a lot of it in an Ulta is a really really good business. They actually have a very nice diversified revenue stream. They've got the salon a`dynamic of the business which encourages people to go there they do have an online business. They have an augmented reality function there at where you can actually like. Try things on makeup to see how it looks. Mary Dillon just a phenomenal other adults of that's my fourth, their Ulta but they I appreciate the spirit of the question I like the idea I'm not saying this is the basket. I'm not tracking this basket in a not a not backing this basket, but in the spirit of the question if I had to develop. A basket, such as this one I think it'd go with those four. Yeah, I mean I guess you just have to think about what retail out there is something that you would still physically go to. Because the actual retail experience is being in the space is the experience and what you're there for? And I know I mean before Corona virus we I would go to target and just just couldn't believe how much money I had spent from walking through a few of the aisles. TJ Max is just a phenomenal business I mean what they've done through the years. Is really capitalized on the nature of the business, the advantage they have in that treasure hunt kind of nature like you go to TJ Max, maybe not necessarily looking for something, and then you end up finding a lot of things, and it can be a little bit lumping at times, but but generally speaking like management's a very good job of running that business, and they know how to exploit the advantage of experience. I think they're online game. Though I think they could probably get something going with online, and they just have not have not yet and so I. Haven't since Corona Virus for example. I haven't spent a single dollar there, but I continue to still shop at. Home Depot I. Think Yeah! We still shopping at home depot because we're doing. You know you gotta buy lumber somewhere. And I know my grandparents out in my my inlaws out in rural Virginia. They love tractor supply store, but that's not. That's not in where we live, but. Still New deck at the house there allison. I mean you, can you see? A big exposed beam behind me and some drywall work that needs to happen. Have lots of drywall work that needs to happen now though. Yeah Anyway get to that. All right next question comes from Matthew. I got married to my amazing wife nine days ago in a small Kobe nineteen wedding in our front yard after we postponed it from its original date in April all. It was definitely different, but still very special. My question is in relation to this wonderful event. My salary has been at a level that has allowed me to fund a roth. Ira I love the optionality of it, but after marrying my bad ass, wife are combined. Salaries are now over the limit that would allow me to fund the Roth. IRA does this affect occur immediately? Do I need to now open up a traditional. IRA and begin funding it or do I have until the end of the year. Matthew wants a Roth Bachelor party one last. Well Matthew I have bad news. When it comes to most things in taxes, your status and your age and things like that depends on where you are on the last day of the year, said if you're married on the last day of the year, you were considered married for the whole year. So that means if you contributed started contributing to a Roth IRA for twenty twenty. You need to call up your brokerage. Firm and re characterize that as a traditional. Now don't have any other traditional IRA, as it's very easy to do the back door, Ross which we've talked about before you can just google it or even when you call the brokerage, just say I want to do the backdoor. Roth and they'll tell you what to do. If, you have other traditional IRA as you can still do. It just becomes more complicated and you'll probably pay more taxes. So you, but you may not be totally out of luck and I should say that's only if you have a traditional IRA doesn't matter if your wife has traditional areas. One exception by the way of of what I just said. In terms of tax status and last day of the year is distributions from retirement accounts before it's age fifty nine and a half, you actually have to be age fifty nine and a half to avoid that ten percent early distribution penalty, unless some of the many exceptions that are out there exist. Right next question comes from Warren Warren Buffett. Maybe I don't know that's why I was thinking. He's asking about coq, so maybe maybe. Once James Opinion on coke. By? Or hold? Wants to now. I'd give buffet night give. Kiesel Warren of the same advice and I would say. For some I'm not buying it. Not Buying it I'm not holding it if I own it. I guess that means sell it. Even Atlanta Georgia person like you i. feel like it's almost sacrilege. I am pretty close to probably not being ever even invited back. But the facts are the facts. Okay, I mean you do have to look at the stock itself has been ain't bad stockton for the last five years. I mean I do understand why when you look at it what they do, I mean they have. Four hundred master brands, and less than fifty percent of them are the big global brands that are actually responsible for almost all of their revenue when I say almost only ninety eight percent, so it's a business. It's very reliant on on. You know a small portfolio of really successful grants. The problem is now. We've always talked about cocoa beans such a great distribution story and that's true. They've got a distribution network. It's just phenomenal, but the problem is now. They're what they're distributing is is being seen as not so good for you in so you're seeing them. Have it into to essentially pivot away from what you know brought them all of the success for all these years. Years in soda and that that's not going to change I. Mean you're always GonNa have people to drink soda? People are not to drinking as much soda going forward in the numbers of just kind of the kind of shown that through that through the quarters in the years of Coca, Cola and Pepsi Pepsi. Has the salty snacks division, which I've always been very. Impressed by I, mean I love a good Cheeto, and so I mean anytime you can throw a bag of those cheetos in my Patriot Amok GonNa, turn it their coq. Interrupting, but I think this is also very important point. You tried the Jalapeno White Cheddar crunchy cheetos. The White Shit or so. I've tried to Jalapeno ones but I've not seen the white Cheddar White Cheddar Jalapeno crunchy cheetos. Don't get the puffy. The poofy ones are not as good, but the crunchy white Cheddar Jalapeno Cheetahs. them by them. They're amazing. I have to back. Pain you. I'll get those next time. I promise I, mean Eh. One. crunchy wants the puffy ones, so that people won't you're not? You're not seeing poopie. Who using poofy Joe Copy? We'll be Coca doesn't have that dynamic of their business. They don't have that dynamic to their business, and they've suffered from that Pepsi's Pepsi's outperform coca-cola over the last several years. It's not safe. Pepsi or coke get it back. I'm sure they probably can. But what I am saying is I think there are a lot of better ideas out there, and so I wouldn't be putting new money into Coca Cola and frankly if I did own it. I probably would look at selling it and you know if you've got a beverage company, maybe own starbucks. It seems like the science coming out in support of coffee, right? It's coming and telling you that these sodas. They're gonNA. Make you fat. Coffee, it could extend your life. It could help you live longer. SMART Mexican looking this a starbucks as well is. That sounds like study from the copy roasters of America. Do! Something that Chris Hill sent me the other day. that. We sleep at night. I'm glad I've been drinking coffee as long as I have God knows what I would look like otherwise. You're a good looking man. Rick. good-looking next question comes from. A. I'm trying to save money for my kid's College. Fund while the five nine is a great option. I'm limited to investing in mutual funds, which means at best I'm going to get what the market gets assuming I do some sort of low cost index fund and I be a capital F. Fool investor have been doing much better than the market in the last three years of being a member of. Of Stock Advisor Enroll breakers, even during this pandemic mess by listening to every full podcast and following David and Tom's and yours and every one else's in the full universe. My portfolio of about one hundred stocks is up here today. Thirty percent to the market's down five percent as of day as of today weighed down by three sluggish five to nine plants that are also down five percent each. I feel like throwing away money by using the five to nine, and not being allowed to select my own great companies in which to invest. What's more, my understanding is that the five to nine does not count as an asset for the kid when applying for student aid, but the coverdale does. So I come to you with a simple question. Can I have my cake and eat it, too? What if I wanted to use the coverdell to buy individual stocks? Until the child is nearing college? At which point I then converted to a five to nine. This allows me to get better returns and avoid it being an asset for financial aid and get the favorable tax benefit. So, chose this question, because first of all Dune does a good job explaining the benefits of the coverdell over the five twenty nine, you can buy individual stocks. You can buy and sell them all day long. We recommend that, but you can. Whereas with the five twenty nine, you can only make two changes to the investments a year, and it's all mutual funds. So. That's you did a good job of explaining that. I will point out with the coverdell. It's gotta low contribution limit of only two thousand dollars a year, so for some people save more for college, but they can max out to cover it out, but then put the rest in a five twenty nine. One thing that doomed does not have quite right. Is The financial aid treatment the financial aid treatment? Coverdale's and five twenty nine is identical. They're treated as assets of the parent, not the kid that is favourable from a financial aid perspective. It's not negligible doesn't mean it doesn't have any effect on financial aid, but it's better than an asset that is owned. By the kid. He can. Transfer money from the Coverdell to the five twenty nine. If for some reason, he decides to do that, but you can't transfer it. The other way around so were convinced to try out the covered. You have money in a five twenty nine. You can't move it from the five twenty nine. To the coverdale. What other interesting thing that he pointed out is that he is doing very well with his investments, and he owns about one hundred stocks. We get this question a lot. Either on the show, or on the full live that we run every day for members of full services, and that is how many stocks should I own, and if I owned too many are not just owning index fund watering down my returns, but here's an example if someone owns a one hundred stocks is still crushing the market. Idol last question comes from Cameron thoughts on the valuation of Stone Co in light of the corona virus for a fragile country like Brazil. This could be the tipping point after so many other headwinds. But how does that affect stone? coz Business Jason I. Don't even know what Stone Co is. What is still business? Yes, don't Coz a payments company that's focused on Latin American markets in Brazil and particular in so I guess it could be. Draw you can draw a parallel to to a with square through pay pal at, but generally speaking I mean it's payments. Company focused on Latin America. Primarily Brazil. Is the big money making market kind of like Marco Libra, they're. In I, I, it's a it's. A NEAT opportunity, gained a lot of headline recently, when and it was, it was seen that Berkshire hathaway. Warren Buffett's company Berkshire hathaway taken a five percent position in the company, which is pretty considerable i. Think in the near term. You have to acknowledge the fact that. They're gonNA, be some real headwinds in in Brazil particularly because of the pandemic I mean. The flip side of that is role in same boat kind of in that regard. The entire world is dealing with it, so it's not specifically you know it's. It's not particular to one economy or one country some. To get hit harder than others I, do feel like Brazil. Be at a place where they can recover from this given You know some of the other businesses in the area. I mean that that that I think is. Who knows ultimately how? That's GONNA shake, but generally speaking. I think the move away from cash towards cashless. Transactions in and financial software that's not stopping if anything, this hastens that which which is what I think, Cameron's talking about there and for a company like stone. Co, neither are other companies in the space pags bureau in roquetas libra to but you know moving money around is a big big market opportunity, and there's nothing that says they won't be able to expand well beyond the Latin American markets, too, so I I'd say cautiously optimistic I mean I

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What To Do When Stocks Go Down by The Finance Twins

Optimal Finance Daily

04:07 min | 2 years ago

What To Do When Stocks Go Down by The Finance Twins

"Twins dot com. If you're wondering what to do, when stocks go down, you're not alone. This is a question. We've started to get asked more and more. The stock market has been dropping and everyone is afraid that the incredible market performance is going to slow down and their 401K's will lose a lot of value. So what should you do with your investments? When stocks go down, the short answer is nothing. Don't change a thing. When the stock market drops, and the prices of your stocks go down. The problem with doing nothing is that it's hard. It goes against our natural instinct and desire to be proactive so that we aren't the last to move. Buy High and sell low is the mantra of investing right. Everyone wants to react when they see their investments lose value. When the stock market drops on the other hand. They want to invest more. When the stock market is shooting up, the problem here is that it's impossible to accurately time the market consistently. Don't be fooled by randomness. The research shows that this emotional desire to try to time the market by trying to buy low and sell high actually hurts investors, according to renowned Princeton economists and CIO of wealth, front the behavior. Behavior gap between the S. and P. Five hundred and the average investor returns may be as large as five percent annually over a twenty year period. What the data shows is that most investors will follow recent returns so when the stock market is going up, more money flows into stocks, but when the stock market drops, money will flow out of the market by reacting to performance. Investors are actually selling low and buying high the opposite of what they're trying to do. Won't I be protecting my investments by selling when they are high before their value drops. The problem with this train of thought is that no one knows when a stock has hit rock bottom or has truly peaked. If you knew exactly when to buy or sell, you'd already be a billionaire and would be on a private jet on the way to Paradise. Right now at least what we'd be doing. In an article by Hoffman at all, it is reported that investor risk tolerance decreased during the worst months of the two thousand eight recession. This highlights the emotional reactions taken by investors and the importance of sticking to your investing strategy. If you felt confident investing ninety percent of your 401k or Roth, IRA in stocks and ten percent in bonds when the market was strong, you should stick to your plan when the stock market drops. If you panic can sell, you will only hurt your investments more. So if my portfolio is losing most of its value, I should sit back and watch it drop without changing anything. For the long term investor, this is the perfect strategy. You want to minimize your emotional impact on your returns. If you are investing for the long term, which is what you should be doing know that your portfolio will recover with the markets. If you sell your investments, you will not have as much in the stock market when the prices pick up and you'll be kicking yourself. According to Dalbar is twenty fifteen report, the average mutual fund investor was outperformed by the S. and P. Five hundred by over three percent in two thousand fifteen. But how can you be outperformed by the S. and P. Five hundred, when you invest in a total stock market index fund that tracks the S. and p. five hundred, the answer is because people buy and sell throughout the year in hopes of timing the market, buying and selling based on what the market is doing prevents you from fully capturing the total market return. When should I invest? Should I wait to invest my money when stocks go down or we go into a recession?

Dalbar CIO Hoffman Paradise Roth Princeton
The Benefits of a Roth IRA

Clark Howard Show

05:36 min | 2 years ago

The Benefits of a Roth IRA

"That would be more important to me than having an investment account that you're playing with just my opinion.

Are We Experiencing a Black Swan Event?

Rich Dad Radio Show

09:11 min | 2 years ago

Are We Experiencing a Black Swan Event?

"This is a trick question. I have to ask you okay. You know what the standard pitch in from people on the world's go to school get a job work hard save money get out of debt. Invest long-term above their festival portfolios talks wants which avoids. Atf's so if you're a financial planner and you've been telling people for the last thirty thousand years. Invest along term and the well diversified portfolios stocks bonds mutual funds and. Don't worry you know the market's always bounce back by the dip is going to be probably a V bottom which means it goes down and comes right back up or a w goes up down and then back up again which it has done over the last. Let's say fifty years so if you're a financial planner and your clients are calling you and you've given them that advise of invested a long-term well-diversified for pulling the plug mutual funds. What do you say to them today? Harry well I I say a financial adviser is going to be more hated than I am. That were passing the end. Up this bubble booms When it happens and and that is true most of the time. But what my work shows and clear the bell clears your heartbeat. Every second generational booms come about every forty years technology surges every forty five and then big bubbles every ninety years when you get east. T- turning points like the late sixties and stocks or the late the roaring nineteen twenty nine stocks or now stocked. Go Down Robert. And they don't get back to those levels for twenty three to twenty five years. I think this time with slowing demographics and the US we may never see the dow higher adjusted for inflation than it is recently so this is not the time to sit through it these type of long-term corrections or crashes after bubbles. They're going to be seventy to ninety percent like twenty nine to thirty two that by the way not small-cap stocks or penny stocks blue chip leading stocks like General Motors Ford and RCA. Back then went down. Eighty nine percent. The Dow and two point seven years can talk until nineteen fifty three twenty four years later to get back to even so when a stockbroker tells you that doesn't understand history. Harry hang on you got to take a breath and so what Harry is saying. Nineteen twenty nine with a crash came if you are holding waiting for the market to come back so in one thousand nine hundred eighty nine dollars at three eighty one. It took approximately twenty four to twenty five years to get back to three eighty one and when I was a kid nineteen fifties when I was growing up most of the people who are part of the Great Depression my parents and the people who are pounded by the Great Depression and the stock market crash. They were never in stocks there so gun shy of stocks and then in my generation the baby boom generation that brought back the Sangala 401k defined contribution pension plans and all this at the stock market took off so the baby boomers are caught pro with the proverbial pants down and now comes the next big crash. Which you've been forecasting for a long time airy so what you're saying. This one might be a long one. Yes because this is the culmination not only of the baby. Boom gigantic is your heading the largest generation history and it wasn't just. Us hit globally to to grow up in earnest. Money which is totally predictable. Average person peaks in forty six for the baby boomers and spending forty seven for the millennials today and then and then decline so. We started to see that declined to name her. This is a rich audience. Like me a little slow. We gotta speak a little slower. So what you're saying. Is that when a person hits forty six? That's when they're at the peak. Earning and spending and millennials is forty. Seven is that what you're saying. Yes the average. The average person for more fluent people college educated professionals. It's more like in the mid fifties but still average forty six so baby boomers if that peak collectively in two thousand seven something. I predicted like twenty some years before that. And we've been just what we went down big big crisis worst since the Great Depression but not as bad because they printed so much money to stop it and we've been living on quantitative easing ever since to make up for these slow down in this generation spending. That's simple and we're not coming out so let me so. Let me go back again. So let's talk to you. Know My generation. The boomers you know. What would you say to them? If they bought that they drank the KOOL aid. Let's say they have a 401k on IRA one of those things are Roth IRA. They've they've they've seen their portfolio per se. Go Up and now it's crashing. What advice do you have for them? I mean how do they do? They stay in or they exit. We don't give advice rich TAB. I WanNa hear your advice. No you get the hell out period. I think he may have one more. Little run left could be a couple of months. Could be a couple of weeks because the feds pumping in more money than ever with the Repo crisis and now the Krahn advisors but I think this is the death knell for the stock market. They can print money to stop. A recession stopped banks from failing companies from failing even stocks from crashing too much normally. But they can't stop this virus from spreading and it just kills business businesses. Stop people stop. Traveling people start stop spending. I mean my wife's not going to a of of women stay over tomorrow night. They're all coming in from New York you know. And she's you know she made the virus and she's over sixty like I am and that's what it hit. Its old people like you said earlier. So so this is something. They can't buy with money printing. They have kept this following far beyond when it should've peaked in two thousand seven and now they've got something that this doesn't work on so I think this is it so you have to get out of the way so Harry. I was talking to this young guy. He was He's a laborer. Was Painting parts of my house and he says you know. I bought a house like you told me to back in two thousand eleven you bought it for like I think hundred thousand and the reason round numbers and now it's three hundred thousand and he has no retirement is what should I do. I said I saw my house I went. I don't once again ladies and gentlemen at Rich Dad. We don't give financial advice and I definitely couldn't advise US guys. Only forty got three kids. He's got a job. Painting houses got no snow stocks. You and I are calling for twenty five year possible. Depression long-term deflation. What do you say to people what you because if he sells he sells his house? I sit where do you go? What are you going to do with that money? Let's say you have two hundred thousand dollars. I gotTa Pay Capital Gains Tax on it. What are you GONNA do any? He was clueless. I I got some simple rules Robert. I had become a bubble experts since the tech bubble crashed and early. Two thousand on top of demographics and technology and all these psycho because we are in a bubble era and the last bubble era we saw the roaring twenties. So nobody's lived in a bubble before and real estate was not the bubble back then. Because you couldn't borrow money so easily against housing back is very difficult so now. It's everything the rule for. Housing is real quick bubbles. Go back to where they started that that house if he bought it at the bottom of one hundred eleven and now it's worth three hundred K. My rough estimate is going to go back to near that level if he's comfortable sitting through one hundred eighty nine thousand potential decline in something he probably has a mortgage against maybe some home equity lines that he went on deck that fine. I think anybody with any brains would say oh no. I don't want to sit through that one in by the way The demographics I've got a new real estate model. That doesn't just project peak spending like other consumer categories. I have to subtract the dyers and guess what baby boomers are now dying unprecedented rates and will continue to do so into two thousand thirty nine or forty that takes down the net demand even takes it negative at some point for real estate so homes are never gonNA appreciate like they did this boom even in the next boom so it's better especially older. People who retiring lot of baby boomers are realizing they didn't say per retirement. 'cause they're living in good times thought they didn't need to and now they're saying. Oh wait a minute though might make mansion which I don't need now that my kids are gone. I can sell that instantly. Fund my retirement plan and rent my retirement home. I think that's really excellent vice. Do that

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Stock market volatility and your 401k

Clark Howard Show

06:59 min | 2 years ago

Stock market volatility and your 401k

"Talk right now about the stock market because there's been a lot of anxiety and people about their 401K's Roth. Ira's or regular investment accounts because for many people who were not of age yet during the banking scandals of Oh seven eight nine in the massive decline in stock values during that era. There's really no history. You have to know where this goes from here. Just see you know. During the financial crisis from seven zero nine stocks fell just under sixty percent in value in a relatively short number of months. And I want you to know how this all plays out so the you make what is the potentially the best decisions I am. I going to say right decisions with your money because every situation has its own wrinkles and differences. But I want to tell you what the odds typically are working for or against you. So there was a wonderful chart that morning star put out the shows. Various huge stock market declines starting with one. That was up to that point. The worst in the history of the stock market except for a brief period in Nineteen. Twenty nine and. That's the nineteen eighty-seven stock market crash. We're in just a few days a massive amount of US investments. In just days were wiped out. Now it goes through a variety of things. You may not know except from history. The first Gulf War that happened thirty years ago and what happened with the market then there was also a a back to back thing where in Asia uh breakdown and the financial markets and in the flow of money and caused a huge decline depression in many countries in the late ninety S. Then we had a tech that burst back around two thousand. We had the financial crisis I just talked about. And so you've got these. Instances that had very very very large declines. The one in nineteen eighty-seven ended up being a net decline after the initial much. Larger one of about thirty five percent and that all happened in just several weeks like the situation. We're in now but the losses could be larger today now interesting enough. When the decline stopped the recovery over the next year did not make up. All those losses only made up two thirds of the losses. If people held in the game they had very nice recovery but not following twelve months. People did not make up all their money and it varies from time. After time in the Gulf war scenario stocks fell twenty percent in just a matter of a small number of weeks and then in the next year went up thirty percent when the problem happened in Asia. Us stocks in about five weeks dropped twenty percent and the following year went up thirty eight percent double that now the tech bubble that when that burst in two thousand the decline continued for almost three years and the market loss fifty percent of its value but then in the fourth year stocks gained back. Two thirds of that again again not all of it but two thirds of the loss financial crisis is. I mentioned briefly a minute ago. During the financial crisis stocks fell just under sixty percent over a year and a half period and then over the next year they gained seventy percent the decline seemed like it was. Never GonNa end and we would never recover from it. And so each of these times that had brutal effects on stock investors. The only people who actually got hurt where people who sold and didn't wait for the eventual recovery this psychological harm for people right now seems to be magnified because people have the double fear of their health and the well-being of their fellow family members. And they're not around their normal social networks so they have more time to freak themselves out and then they see the value of their accounts if they're looking to closely going down down down so we're down over the last couple weeks. We have lost three plus years of gains in the stock market so in two weeks we lost three years. But you only lost that three years of gain if you sell so I encourage you to really think once twice three times before you act because if you sell you lock in the losses if you stay you could have more losses. True going forward for now but there's nothing about our economy that fundamentally says it is toast right now. The economy is going in the toilet. It's basically going into hibernation in the short term will be brutal for investors and for every day all of us in our lives living our lives as we're used to but the recovery will

Asia IRA United States
How to Build Remarkable Products to Grow Your Business

Copyblogger.fm

08:04 min | 2 years ago

How to Build Remarkable Products to Grow Your Business

"Without further ADO. Please help me. Welcome meet safety. Hey Rome meets. Thank you so much joining me on on the COB. A buyer podcast. I really appreciate your time my pleasure. Thank you for having me so you are. You really are Amanda. That doesn't need too much introduction over the last ten years you've grown a really sustainable audience and you've you've provided a ton of value to people myself included but before we started recording allergists talking a little bit about how much your work has affected me and my life and I'm sure I can say the same For many other people but for the people who aren't familiar with your work and aren't familiar with the I will teach you to be rich. I like to please just open up with giving you some time to introduce yourself and and and talk about some of the the messaging that you've brought an and given to us over the years so my name is Romy Safety. I'm the CEO of I will teach you to be rich and I know the site sounds like a total scam. It's not I've been writing site. Two thousand four when I was a student at Stanford and I believe that most people want to live a rich life and I believe that most of us have gotten advice. It just doesn't quite fit in with the way we wanna live that rich life today and most of the advice out there that we've heard when it comes to money is cut back on Latinos and the fact that matter is cutting back on. The dollar is not going to change your life in any sustainable way. Most of the money advice is basically by somebody. Who'S PROBABLY THIRTY OR FORTY YEARS? Older than US doesn't really look like us and wagging their finger at US telling us all things we can't do with our. I didn't want to live like that. I wanted to spend. I wanted to buy a round of drinks for my friends. I wanted to use psychology to automate my money and then I wanted to get on with my life. I don't WanNa sit there and run excel simulations everyday so I started writing about money but a rich life is really more than just your Roth. Ira and since then we have expanded into business. So we've helped tens of thousands of people start businesses. We've expanded into careers. I can show you how to get ten or twenty five thousand dollar salary increase. And we've expanded into psychology as well all of this at W. T. dot com. I love the you started off with your concept of bio the lot as you want because I repeat that to myself pretty often when I'm going out to a coffee shop and I'm I'm just sitting down doing some work and relaxing and enjoying myself and then you look at your bank account and you see all those little tiny transactions when if you added up it just doesn't mean a whole lot in the in the grand scheme of things however I've always been curious that I'm I'm really excited to ask you about the origin story of this. Because this this whole concept of living of rich life and as you say focusing on the big wins. Was that something that you just sorted developed over time as you started writing about it or did you have somebody that influenced you to really come up. With that methodology. The concept of big wins. Is that if you get the five or ten big wins right in life you never have to worry about. Three dollar law tastes or seven dollar appetizers and there are five or ten really big wins in life. Some of them more financial right. You WanNA invest automatically as early as you can You want to have a great job and make sure you're paid what you're worth or you could go and start a business but there are also other ones. That are nonfinancial. If you get married you WANNA marry the right person. That's one of the most important decisions you can make in your life and if you get that right then you know your decision about whether to paint the drywall. I don't know I don't know anything about renovation. But getting that decision right is so important in anyone who's married. Certainly anyone who has kids knows that what I discovered was early on the had most of the advice in the world is focused on minutia. It's focused on things like Should I have twenty grams of protein after eleven pm? But make sure that you're only having one gram per pound when in reality what most people need to do is track their food a little more closely and exercise regular same thing with fitness. Same thing with business. Most of the advice. You see out there is you know. Here's what you need to do. In terms of twenty five hundred characters per page the sub headline should never say this word. When in reality you need to right like you talk and you need to write ten times more than you're writing that's how you become a great copywriters okay and I. The the origin of this is that I don't WanNa have to wake up and look at the prices of a bag of salad. If I go to buy in the Grocery Store it drives me insane and I know this because when you know both my parents are immigrants and have four kids in my family so my mom stayed home and she would take us to the grocery store and we would never order a or we would never buy a bag of pre cut vegetables. No way what a waste of money. Of course. We're GONNA CHOP IT ourselves. So I learned that sense of frugality but over time I realized I don't WanNa have to worry about two dollars here or there. I want to focus on bigger more important things and if I get those right then details the minutia. The three dollar law taes will work themselves out. I frankly think is just a much more fun way to live and it lets you accomplish a lot more with a lot less work because once you get those things right. The rest works itself out. I think it is too and I'm going to transition a little bit into your actual brand because as we talked about before the copy lager audience is very interested in in writing and content marketing. But just to touch on that a little bit more. I think anybody listening can get so much value out of that whole idea because I myself know that when you think about the bigger picture and you don't stress the small stuff too much. It's allowed me to live my life with a little less anxiety like worrying about this this little decisions and most importantly it takes away a lot of decisions in my life with which really helps me like. I can't remember the last time I looked at a gas prices. This is the closest place for me to buy gas okay. Great I'M GONNA go fill up my tank move on and not worry about it so so I I love it. That concept is has done a lot for me and and again I think a lot of people get value from that thank you. I just want to point one thing. I think what you just said is so important. The gas example. We all have an example like that in our lives where it's a tiny number and yet it has a disproportionate impact on how we feel. We feel guilty or nervous or just dumb like why. Why did I oversee spend on that? And the fact of the matter is that too. Many people focused on three dollar questions when they really should be asking thirty thousand dollars questions. A free dollar question is about coffee or gas. Thirty THOUSAND DOLLAR QUESTION IS HAVE. I set up investments automatically. Do I have a great business and focusing on creating amazing products for amazing customers and I have my. Kpi's down Pat Right. Those are thirty thousand dollar questions. Is My relationship assaulted. That's you can't even quantify that but if we focus on those thirty thousand dollar questions it is so much more powerful than getting mired in the weeds mired in the details of these three hundred questions.

United States Grocery Store Pat Right Rome Stanford Amanda CEO Romy Safety IRA W. T.
Don't put your tax refund on a gift card

Clark Howard Show

03:33 min | 2 years ago

Don't put your tax refund on a gift card

"I shared a story with you about a deceptive practice by. At and T. Where if you've been a customer of theirs and they owe you a refund a partial refund for months service or something like that that they give you these trashy debit card things. There are stored value cards. That are very difficult to use all the money on. That is the intention of the design of these things instead of sending you a check is to try to keep some of your money through. What's called breakage in the industry so it's a really end thing to try to kind you that it's better to get a refund or get money that's owed to you in a card in the case of. At and T. They don't even give your choice. They just send you the trashy card so it really had my attention big time that several of the tax preparation services this year are trying to get you if you do a tax refund to get it on some kind of stored value card. One of them even does retailer. Gift Card is the way to get your refund. And they'll tell you all kinds of tall tales about. Why is the greatest thing ever to get your refund on one of these cards but I love a write up from life hacker about all the ridiculous junk fees? You get if you get your refund in the form of some kind of prepaid card or stored value card or whatever you call and there's fee on top of fee on top of fee on these things and it is just terrible how you get ripped off One of them charges a seven dollar a month. Monthly fee is just an example and others charge you a per transaction fee every time you use them but the worst of all are the ones tied in with a retailer store. There's one even that tries to get you. Get your refund on an Amazon Gift Card. Okay let's think about it. Could there be a worse idea than a tax refund going on any kind of spending card you know the best thing to do with the tax refund is to either a pay down debt you have or be put money in your own Roth Ira. Now let's review neither of those or about spending. They are both about improving your financial outlook but think about salt in the wounds. Twice with any of these pitches for you to get your tax refund on any kind of stored value card gift card prepaid card. Any of those things. They're all about you spending not saving. They're all about you being feed to death and then they're about breakage the money that never quite empties from the card the you end up forfeiting and it's your money.

Amazon
Paying surrender fees is worth it to ditch high cost

Clark Howard Show

04:01 min | 2 years ago

Paying surrender fees is worth it to ditch high cost

"I WanNa tell you that I have had more confused. People who are schoolteachers workers for nonprofits people work at some hospitals organizations that offer as a retirement tyrant plan the rip off four zero three B four three B plans are. I mean. It's a scandal that this is how we treat. Treat our schoolteachers with these just horrifically inferior retirement plans to what the rest of us have an 401k's four one ks and in questions that have taken from people over the years I've talked about getting getting out getting your money out of the crummy for three B plan. And how you do that. And I've talked about something known as surrender charges. Where are the insurance company handcuffs you to their absolute trash with at times massive penalty fees for exiting being from there rip-off plan and putting the money into your own? Ira If fees that can be one fortieth of what you're being charged in that rip off or three B plan and every time somebody talks to you at school or in a hospital or at a nonprofit about a four three B plan remember four. Zero Three B equals rip-off. Remember that do not forget that. So now I have before me an long-form analysis by a financial planning firm that that found that. If somebody is relatively young you would even make more money paying a forty percent. Four zero percent surrender charge to the Insurance Company over your working lifetime moving that money to an IRA. You'd still make more money than paying the ripoff fees. That the insurance companies impose on you now. That's an extreme example. More often someone will be with surrender. Charge of fifteen percent and the reality is if you got Typically ten years or more left of runway till you're going to be using the money it's worth it by their analysis to even pay the insurance company there rip off fifteen percent sent surrender fee just to get out from under their rip-off phony horrendous charges that you pay in a four three plan now. The only exception to this that I know of the only one I know of is if the plan you're being offered is by Ti Tiaa now. A lot of people work in school districts. Either the union in his getting kickbacks or other people are getting kickbacks at the school district in order to recommend to you a hideous this retirement plan and this should not be allowed. You should not be making other people rich and intern hurting hurting your financial security long-term and unless there's any form of match on a four three plan follow this rule ignore the four zero three B. That's offered to you and find your own Roth. IRA with one of the low cost companies as a way to protect yourself from being cheated and who thought it was a good idea to cheat. Teachers people work at nonprofits and people who work at many hospitals. There's just flat out wrong

IRA Intern Ti Tiaa
Inverse ETFs, Saving For a House and REIT Investing

Listen Money Matters

07:00 min | 2 years ago

Inverse ETFs, Saving For a House and REIT Investing

"Today we're doing I five questions and we're going to be talking about and I hope I'm saying this right ret- investing right Yeah inverse. ETF's and Gold Enin saving for a house and then IRA's on ends Lotta ends there all right. Well it's I mean if you're ready I'm ready. Let's let's get into it. Yeah question number one. What blacks me and this when this comes from? Ra what blocks me from. Investing in real estate is the fear of getting exposed the having to file multiple state tax returns every year. Okay so there's actually like two questions here. One doesn't fund rise expose owes us since they are diversify across many places to having to file tax returns in many states increasing the cost and the headache. So so let's just answer that okay and and even to step back a bit Yeah when when you invest in real estate if you're investing out of state you do have to file in multiple states and and I guess I maybe realize it didn't realize the actual pain in the ASS and so lauren. I have to file in three states. That's fun but you know easily automate edible and we now Kinda like focus fire where we are. Okay but fundraise is a repeat and so. It's actually abstracted that's substracted they. They Kinda with taxes and the taxes you pay our capital gains and then dividends and so eun will. You won't pay in another state okay. Because it's a it's a fund right. And so what happens is they. They do have to pay in multiple states and then technically that cost is passed to you. You in the The expense ratio right. But if you own your own property one single property in another state and you're GONNA be paying taxes in that state right and so Obviously pros and cons to each but if you invest with fundraise that would not be something that you'd have to deal with got it now if you do not do your taxes yourself. What is the extra cost your? CPA charges per state. I mean I think so. I don't know the exact number but marginal like virtually Julie almost nothing additional honestly like I don't know maybe I pay like fifty or a hundred dollars to cover all my state additional filings. uh-huh the kind of like do it for one. I guess it's not a whole big thing. Okay I mean I so I mean essentially like to answer your question here. Arias that fundraise if you're if you're if you're going to be investing in rates with fun rise than you don't have to worry about all that different taxes taxes in different states. Exactly just like I mean if you were to invest in Coca Cola. You're not pain Georgia taxes right. If you're buying or like France taxes right you know you could abide and France. Yeah exactly okay So that makes sense but again if you are investing in real estate you literally buy a house or a commercial property you will be paying taxes in that state correct and so that will be an added expense because it's literally like separate protects warm. Yeah I mean I would say it's going to be the less then. The cost of property management for one month right and hopefully more than what you're hopefully cost less than what you're making on that property. Look like if you if you bought a single family rental property and one hundred dollars a year is blowing the deal up again you. May You bought that. Yeah I also think like a lot of people think you know the headache of of file me you had to deal with this. Filing multiple tax turns different states. It was a headache right When I might for maybe for my tax person they haven't complaints the okay? This is the thing like I always hear my tax person which is kind of like separate from all this which is like stop worrying about trying to pay less taxes like unless you're like some big frigging corporation that like has the like unless you're Bazo you know you know. Just it's just like it's just not worth it like you live in this country and the already pretty frigging low compared to other places you know other other. Yeah I think like you can could make broad swath decisions like you can put your money in a roth. IRA or any IRA and like optimize your taxes but like these little nuance ons. twee exist for us. Yeah So thank you for that question and we're GONNA move on here This question is from Brian. Dan where can I find an online broker to create my own roth. IRA to include only individual stocks not ETF's it's so not Robin Hood Fortunately don't But you can with them when finance and You can do the Golden Butterfly with them on finance. You could obviously like us like Fidelity Schwab Blah Blah Blah insert all of these these companies here and one finances super clean I think the interface is really tight and it just does like one thing really well And that's what is days so what else so there is there any other ones that you know of I would say like any of the typical broker names. Yeah that Oh. Yeah in terms of like Modern started be type. Things like betterment does but you're not GONNA be able to pick her own stocks You kinda like buy into their methodology and when finances really the only one that I know I think it's worth talking about Hopefully they answered our questions. Although although. I'm curious on why you'd want to do that. I don't know you saw the cyber chuck. You're not gonNA sure but like you know. Do that in your brokerage account. I think a roth. IRA like just. I mean you can only attribute fifty five or six thousand dollars to it. You know You know make that easy on yourself and then invest extra in your cyber truck through something in your doesn't matter like really what goes in. What bucket honestly yes? He kinda like have your buckets. Set of good truth be told I only own Tesla in. IRA's really. Yeah I rolled over a four four one K.. So what am I going to do this way back. I was like Tesla brokerage account specifically to own Tesla Stock Not Not specifically for that. But it's I wound up having to roll it into a Roth and traditional dramatic reasons split in half and then both houses and Tesla Yeah I think if I were to you know for example if I were to say to invest in Tesla right now I would just open up a robinhood account and just buy stock in Tesla agreed. And that's what I was aim. Yeah

IRA Tesla Tesla Brokerage France Lotta Coca Cola Schwab Georgia Arias Julie Robin Hood Lauren Brian DAN
The Dos and Don'ts of Hiring Your Children

Entrepreneur on FIRE

05:12 min | 2 years ago

The Dos and Don'ts of Hiring Your Children

"Month we talked about the possibility of paying your spouse as an employee in Your Business and it was a great question from podcast Castro Paradise member and this month we had a great follow up question from podcasters paradise member asking. What about paying your kids from the business and for those who've listened to last month tip read last month tip you saw that there are only a few cases where paying your spouse made sense strictly from a tax perspective and it typically only makes sense if you wanted to contribute to their retirement account? Meaning you already Max out your retirement account you still have more money to contribute you want to contribute beat here spouses in which case giving them payroll will allow you to do that. Otherwise you're probably going to spend more in taxes than than any money you would possibly save but foot pain. Your kids could present a significantly larger opportunity to save money on taxes for several different reasons. I if your child is under the the age of eighteen and your business owned solely by you and or your spouse meaning they had had no has no other owners except you and your husband or wife Right. If that's that's the case they're under eighteen years of the owners. You do not have to withhold social security and Medicare taxes on their wages so those payroll taxes that everyone has to pay. Even you have to pay roane salary. Fifteen point two percent completely wiped out in that scenario if your kids under eighteen you guys are the only owners. That's a huge advantage right from the start. Furthermore furthermore if you pay them less than their standard deduction which is twelve thousand two hundred dollars for two thousand nineteen they will. Oh no taxes whatsoever on that money okay. So they'll will that. The standard deduction will wipe out their wages. They'll oh no taxes they'll oh no payroll taxes and then finally you're GonNa get to deduct that amount paid from your business us all right. So essentially you're taking up to twelve thousand two hundred dollars per kid from your business paying it to them and wiping off of your taxable income with no taxes to them and I know this is probably seems too good to be true. I'm not too good to be true. But as with any good tax strategy Eh. There are several things you have to make sure you're doing right and the first thing is you have to make sure that they are getting paid the proper amount based on their age type of work they're doing etc if you have a two year old you can't go out and pay them twelve thousand dollars say that they're cleaning your office or the IRS has commonsense wants to know that you did not that no two year olds GonNa Make Thousand Dollars Not GonNa pay clean your office look at their age typically you want them to be seven under older before you start doing this. There could be scenarios if you're going to try and count them out as a model or something with that gets very dangerous. Make sure that they are actually working. That what you're paying them is reasonable for the job. They're doing and make sure that you're documenting all this all right so if you kids fourteen and you're having him clean your office for you once a week and you say that's where twelve thousand dollars. Well just be sure that the twelve thousand dollars is the going rate to clean your office once a week for anybody else okay. Okay so make sure. It's reasonable the second thing you have to watch what type of entity your businesses because if your taxes an S. corporation which most profitable small businesses are then. You will have to set up a few other things to be able to waive those Medicare taxes social security taxes are. You can't pay them directly from the escort because that feature does not apply to escorts so what a lot of people do is create some type of management company that is an LLC. A escort pays yellow. See which kids it sounds complicated. It's worth Earth if you're going to pay your kids a decent amount of money but you have to hire a tax professional. Maybe even attorney to make sure it's done properly and finally need to make sure that everything is done properly as far as paying in your kids. Okay so including filling out those payroll tax returns and I know you're probably thinking. Why do I have to do that? You just said I don't have to pay taxes you still have to file the payroll tax returns. Turns so if you don't already you're going to want to hire an actual payroll company to do this. We always recommend our clients. He's Gusto online super easy of use but any of them will work. You have to make sure that they understand that these are your kids. They're under eighteen. And that you were the only owners. So they qualify for not withholding payroll taxes. But if you do that they'll be able to take care of everything else. All the proper forms will be filed to me. This is not something you want to try to yourself. You're gonNA miss something and you're going to jeopardize the whole move and probably cost yourself more than you save all right so those are the three things. Make sure you're paying them a reasonable wage. Make sure you're doing it properly based on your entity and make sure everything's filed properly. If you do those three things things and you have kids under eighteen you can have a significant tax savings opportunity here. And what's more your kids now have earned income so you can turn around and put that into a roth. Ira You can put that into a five twenty nine for the future. College needs okay. So you're paying the money you're saving on taxes and your potentially Z.. Creating retirement or college savings for them at a very young age. I mean could you imagine being twelve years old and and someone contributing to a roth. IRA for you through. Throughout your entire childhood be amazing the great headstart this the opportunity you have to do for your kids if you do this

Medicare IRA Roane IRS Attorney Gusto S. Corporation
Teachers Pay High Fees for Retirement Funds. Unions Are Partly to Blame.

Lucia Capital Group

01:19 min | 2 years ago

Teachers Pay High Fees for Retirement Funds. Unions Are Partly to Blame.

"Teachers unions and public employee unions are taking huge kickbacks from insurance companies to be the recommended four oh three B. plan to public service workers public safety workers and teachers the NEA the teachers union takes millions of dollars in kickbacks from the company that they recommend commissions whatever they call it for recommending teachers be and a particular for thirty people providers plans that cost up to one hundred times in fees what a low cost Roth IRA or four oh one K. would cost the union selling its own members down the river that is unbelievable but it gets better the Wall Street journal reports that the NE a is recommending to teachers that are members of the union all trade Spencer for three point on but for the NBA's own employees is offering an ultra low cost vanguard plan talk about

NEA Spencer NBA Wall Street Journal