Your Money, Your Wealth

Last-minute tax questions answered: should Brad in Wahoo, NE save to his regular 401(k) instead of his Roth 401(k) so he can claim the American Opportunity Tax Credit? Should Jennifer and Zeke in NY set up a Roth IRA and file taxes for their 13-year-old that’s got some earned income? Does Cindy in San Diego have to report her Medicare Advantage over-the-counter medication benefit on her taxes? And should our buddy Carl Spackler wait until the new year to deposit his rollover check? Plus, Em in FL needs ideas for moving her Mom from a low-cost-of-living area to a high-cost-of-living area, Wannabe Landlord wonders about creating an LLC for his real estate, and can CJ in FL and IN report pro-rated real estate expenses on schedule E? Finally, the 5-year rule on Roth withdrawals once again, this time for Brutus Buckeye, and Bruce from Joisey is back, this time he wants to pay cash for a car.  Timestamps: 01:08 - American Opportunity Tax Credit and Other Tax Strategies (Brad, Wahoo, NE) 05:07 - Tax Filing for 13-Y

Planning to retire early? Joe and Big Al spitball on bridging the gap to your retirement income when there’s a pension in the mix, today on Your Money, Your Wealth® podcast 456. Manley and his wife are in their early 50s and have teacher’s pensions. Can they retire in 2 and a half, or even one and a half years? Can Bucky in the Midwest retire in 2024, and can Henry Karl Kittensburg III retire in about 3 years, with all the milk his heart desires? How should Paul in Houston choose his pension options for early retirement? Is Greg in Southern California’s CalSTRS teacher’s pension enough for his retirement? Keaton Money in Colorado needs the fellas to help him decide between his pension’s fringe benefits and brokerage account returns, and big Paw in a mid-Atlantic state asks for a spitball on how to reduce taxes on an impending headcount reduction lump sum payout.  Timestamps: 00:58 - Early 50s, Teacher’s Pensions. Can We Retire Early in 1.5 or 2.5 Years? (Manley, Nashville) 08:17 - How to Choose Pension Optio

Steve & Sharon in Minnesota are high earners - can they get more money into their Roth IRA without paying more tax? Should Fred in western New York do Roth conversions before required minimum distributions kick in? If Mike in Utah saves on healthcare premiums now, will that mean large RMDs and tax bills for him later? Should Mark in Maryland do a backdoor Roth after maxing out his 401(k)? And should Joseph in Kansas contribute to his new employer’s traditional or Roth 401(k)?  Timestamps: 00:49 - Should We Do Roth Conversions Before RMDs Kick In? (Fred, western NY) 10:22 - Will Saving on Healthcare Premiums Now Mean Large RMDs and Tax Bills Later? (Mike, UT) 19:36 - Where to Invest After Maxing Out 401(k)? Backdoor Roth? (Mark, MD) 28:04 - How to Get More into Roth Without Paying More Tax? (Steve & Sharon, Roseville, MN) 39:24 - Roth 401(k) or Traditional 401(k) With New Employer? (Joseph from Wichita, KS) 47:08 - The Derails Access this week's free financial resources in the podcast show notes at h

Will Ron and Candy in Connecticut ever be able to retire, and are Bruce and Selina in Philly saving enough to retire? That’s today on Your Money, Your Wealth® podcast 454 with Joe Anderson, CFP® and Big Al Clopine, CPA. Plus, are Pebbles and Bam Bam in Kentuckystone missing anything when it comes to using their brokerage account to pay Roth Conversion taxes? And Susan in San Diego is 55, spends about $36K a year, and has almost a million saved - can she retire yet? And finally, our buddy Will knows he shouldn’t time the market, but….  Timestamps: 00:50 - Will We Ever Be Able to Retire? (Ron, CT) 09:54 - Are We Saving Enough to Retire? (Bruce and Selina, Philadelphia) 17:36 - What Am I Missing? Brokerage Account Spitball (Pebbles & Bam Bam, Kentuckystone) 27:05 - Nearly $1M at 55, Spending $36k/Year: Can I Retire Early? (Susan, San Diego) 31:36 - I Know We Shouldn’t Time the Market, But… (Will) 40:46 - The Derails Access this week's free financial resources in the podcast show notes at https://bit.ly/ymy

Can Jessie and Becky in Iowa retire now at age 52? Should Robert and his wife file their taxes separately, to pay less tax on their required minimum distributions? Can Joe and Al validate Mike in Minnesota’s retirement plan, and does a backdoor Roth make sense for him? How in the world will Mike in New York be able to retire at a reasonable age? And what will retirement income look like for Marty in San Diego? Just spitballs here, no retirement advice! Timestamps: 00:49 - Can We Retire Now at Age 52? (Jessie and Becky, IA) 10:09 - Should We File Taxes Separately to Minimize Taxes on RMDs? (Robert) 19:56 - Validate Our Retirement Plan: Does a Backdoor Roth Make Sense? (Mike, MN) 25:11 - How in the World Am I Going to Retire at a Reasonable Age? (Mike, Utica, NY) 29:19 - What Will Our Retirement Income Look Like? (Marty, San Diego) 35:06 - The Derails Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-453  Retirement Readiness Guide - free download Retirement Pop Qui

Why does Becca in Florida’s advisor "poo-poo" her strategy for funding 529 plans for education? Keith, commenting on Spotify, wants to know about reimbursing yourself from a 529 plan for the scholarship amount used for education without penalty, and Wendy way up in New York wants to know if she should use retirement funds to pay for college and home renovations. Plus, what are the pros and cons of starting Roth conversions for Renee in Wisconsin, and is she on track for retirement? Will the IRS penalize Dan in Michigan for not paying Roth conversion tax in January? With the 5-year Roth clock, how does compounding interest work when Aaron in Ohio changes custodians? And Kirk in Iowa wonders how the Affordable Care Act tax credit works with dependents.  Timestamps: 00:55 - Why Doesn’t My Financial Advisor Want Me to Fund 529 Plans? (Becca, FL) 08:19 - Is 529 Plan Self-Reimbursement for Scholarships Okay? (Keith) 10:22 - Should We Use Retirement Funds to Pay for College and Home Renovations? (Wendy, way up in n

Should Jim in New Jersey do the YMYW-infamous Megatron (the Mega Backdoor Roth IRA) or use his Roth 401(k) - and how can he keep bonds out of his Roth accounts? Joe and Big Al discuss the January first start date when it comes to the 5-year rule on Roth conversions for Nancy in Wisconsin, and they spitball on those Roth clocks for withdrawals and tax-efficient investments for Johnny Mercer in Savannah, GA, who also wants to know the pros and cons of bonds vs. bond funds vs. CDs. Plus, should Brad in St. Louis incorporate bonds into his investment portfolio, given the fact that he will have pensions and Social Security providing 5 streams of fixed income in retirement?  Timestamps: 00:58 - The Megatron: Mega Backdoor Roth IRA vs. Roth 401(k) (Jim, NJ) 14:42 - 5-Year Rule on Roth Conversions: How Does January First Default Start Date Apply? (Nancy, WI) 19:43 - 5-Year Rule on Roth Conversions vs. Tax-Efficient Investments, Bond Funds Vs. Bonds Vs. CDs (Johnny Mercer, Savannah, GA) 32:42 - What’s the Best Strate

How much can you safely spend in retirement? Is the four percent rule outdated? Joe and Big Al spitball on a safe retirement distribution rate for those in the 55-60 age range for Clay in Ohio. They also spitball on withdrawal rates when there’s a pension in the mix for Jonny and June in the Bay Area of California, and for William in Maryland, who is concerned he might be exposing himself to sequence of returns risk by spending too much in early retirement. Plus, when does Dan have to take required minimum distributions from the IRA he inherited from his Dad in 2021? Finally, Wayne in San Diego wants to know how to protect his bank accounts from FedNow, the Federal Reserve’s new peer-to-peer payment system. Timestamps: 00:53 - What’s a Safe Retirement Distribution Rate? (Clay, OH) 07:57 - Can We Retire at Ages 50 and 48? (Johnny & June, East Bay, CA) 19:01 - Spitball My Retirement Withdrawal Rate (William, MD) 24:50 - When Am I Required to Take Money From My Inherited IRA? (Dan) 28:54 - How to Protect Mo

What should Martin do about his outrageously fee-heavy 403(b) plan? Should EF hedge his pre-tax non-qualified 415 excess plan? What should Max do with his old TIAA plan, and what are the pros and cons of a cash balance defined benefit plan for self-employed people like Brent Money? Plus, Mike needs Joe and Big Al’s spitball on the highly compensated employee rule and excess 401(k) contributions, and the fellas explain how employee stock purchase plans are taxed for Big Cheese Bob the Tomato.  Timestamps: 00:55 - What to Do About My Outrageous Fee-Heavy 403(b)? (Martin, Miami, FL) 05:56 - Should I Hedge My Pre-Tax Non-Qualified 415 Excess Plan? (EF, Kansas) 14:25 - What to Do With My Old TIAA Retirement Plan? (Max, Seattle) 24:29 - Highly Compensated Employee Rule and Excess 401(k) Contributions (Mike, Castleton, NY) 29:16 - How Are Employee Stock Purchase Plans (ESPP) Taxed? (Big Cheese/Bob the Tomato) 32:26 - Cash Balance Plans Pros and Cons for Self-Employed (Brent Money, Bennington, NE) 40:52 - The Derail

Coach Dobber and his wife in Edina, Minnesota have a low mortgage interest rate and a decent amount of home equity. Should they put that equity to work and take the risk on buying a higher value home at a reduced price, even if it means a much higher interest rate and higher monthly payments too? Plus, Joe and Big Al spitball for Adam, in the birthplace of aviation, on the taxation of passive rental income, and capital gains from his portfolio and the sale of his business, prior to his early retirement. They also spitball for Charles in Idaho, on taxes on the sale of his mother-in-law’s house. And should Dan’s wife and business co-owner retire from the business and take Social Security Disability? And will Social Security be reduced for everyone? Steve in Vegas has a cautionary tale to tell. Timestamps: 00:55 - Stay With a Low Mortgage Rate, or Buy Up at a Reduced Price? (Coach Dobber, Edina, MN) 16:10 - Early Retirement Taxes on Rental Income and Capital Gains? (Adam, Dayton, OH) 24:55 - How to Figure Taxes

Can Sven and Olga in Minnesota shorten their working years? Should PJ in Michigan take his pension lump sum or the annuity payments, and should he maintain an aggressive asset allocation in retirement? Plus, the fellas spitball early retirement strategies for Joe in Massachusetts and Nick in California, and they discuss how to tell the difference between post-tax contributions and pre-tax funds converted to Roth at tax time for Victor.  Timestamps: 00:45 - Can We Shorten Our Working Years? (Sven & Olga, MN) 07:50 - Pension Lump Sum or Annuity? Aggressive Asset Allocation in Retirement? (PJ, Michigan) 23:31 - Can We Retire at Ages 55 and 52? (Joe, MA) 29:54 - Help Me Spitball Some Retirement Goals (Nick, CA) 35:07 - Post-Tax Contributions and Pre-Tax Funds Converted: How to Tell the Difference? (Victor) 39:40 - The Derails Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-447  Retirement Income Strategies Guide Register for the Investing 101 webinar, Wednesday,

Should Jackson and Elsa from Wyoming fire their financial advisors and shop for lower fees, or switch to do-it-yourself financial planning? Can 34-year-old Bob in Texas retire early at 50, and what’s the best way for him to put an extra $30K to work? How much should 35-year-old Matthew in the middle of nowhere Wisconsin be saving for retirement in pre-tax accounts vs. post-tax accounts? And finally, should Michelle in Minnesota leave excess education savings in a 529 plan or move it to a Roth IRA?  Timestamps: 00:58 - Should We Fire Our Advisors and Go DIY or Shop for Lower Fees? (Jackson & Elsa, WY) 11:51 - Can We Retire at Age 50? Best Way to Put Extra $30K to Work? (Bob, TX) 19:51 - How Much Should We Save for Retirement Pre-Tax vs. Post-Tax? (Matthew, Middle of Nowhere, WI) 28:27 - Excess 529 Plan College Savings: Leave it or Move it to Roth? (Michelle, MN) 35:34 - The Derails Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-446 DIY Retirement Guide - lim

How will a diet COLA on a pension affect retirement plans for Joe and Barb in Tulsa? Percy in South Carolina has a pension too. He’s timing the market, but should he change his investing strategy as he approaches retirement? Plus, Michael in Virginia needs ideas to fund a custodial Roth IRA for his 3-year-old and 2-month-old kids, and Rocco in NYC catches Big Al on capital gains exclusions. But first, will scary future events mean Michelle in San Diego will have to pay more tax and the highest possible Medicare premiums? Timestamps: 00:44 - Will Scary Future Events Mean Paying More Tax and Highest Medicare Premiums? (Michelle, San Diego) 10:46 - Market Timing, Pension & Roth Retirement Spitball (Percy, North Myrtle Beach, SC) 18:34 - FERS & Military Pension Diet COLA Retirement Spitball (Joe and Barb, Tulsa, OK) 26:49 - Can I Employ My 3-Year-Old and 2-Month-Old Kids to Fund a Custodial Roth IRA? (Michael, VA) 29:38 - Capital Gains Exclusion: Both Members of a Married Couple Need to Be on Title? (Roc

Charles has had it with Joe and Big Al stumbling through the Roth 5-year rules, so he explains to Joe and Big Al, once and for all, the rules for withdrawing money from a Roth IRA. Plus, is Shane missing any retirement risks before he retires early at age 55? Nick wants to know if employers are required to adopt all of the provisions in the SECURE Act 2.0, or if they can pick and choose which to implement, like they can with the rule of 55? Plus, how can Stew offset huge capital gains on the sale of an inherited house, and we revisit whether George can move investments in-kind from an inherited trust to a brokerage account.  Timestamps: 01:57 - Roth IRA 5-Year Rules for Withdrawals Explained (Charles) 10:39 - Any Retirement Risks I’m Missing Before I Retire at Age 55? (Shane, Chester County, PA) 16:42 - Do Employers Have to Adopt All of SECURE 2.0? (Nick, OH) 21:10 - How to Offset Huge Capital Gains Taxes on the Sale of an Inherited House? (Stew, Clairemont) 25:49 - Can I Move Investments In-Kind From Inheri

Harsh realities of life can very quickly change your retirement plans and your entire financial future. In this episode, Joe and Big Al spitball on dealing with these realities. What financial strategies can they suggest for William and his 33-year-old wife, who has metastatic breast cancer? Debbie and Emily each experienced the unexpected sudden passing of their partners. Is it possible to minimize the capital gains tax on Debbie’s son’s inheritance, and can Emily retire in a year? Josie has lousy longevity in her family and wants to plan for the worst case scenario of dying before her husband. Alfred is 81 and concerned that he’s going to run out of money before he runs out of time, and Richard has a sobering story that changed his thoughts about when to collect Social Security. Finally, Irene is subject to the Government Pension Offset (GPO) - can she withdraw the money she paid into Social Security?  Timestamps: 01:03 - Financial Strategies for the Young and Disabled (William, TX) 08:16 - How to Minimize

What’s the best strategy for E-Dog’s restricted stock units with his employer, how are RSUs taxed, and how do Roth conversions fit into the mix? Plus, should Jay in Raleigh liquidate his annuities or follow “Stan the Annuity Man’s” advice and take the annual payments? Elisa wants to know how a mutual fund portfolio would work in retirement, and what’s a good way for listener Joe to invest in bonds in a taxable account to bring his portfolio back into proper balance? Finally, the fellas spitball on Medicare savings vs. Roth conversions for David, and an unrealized gain strategy on an UTMA education savings account for Jay in California. Timestamps: 00:50 - Restricted Stock Units: RSU Spitball Analysis (E-Dog, Boulder, CO) 14:44 - Annuity Retirement Spitball Analysis (Jay, Raleigh, NC) 26:36 - How Would a Mutual Fund Portfolio Work in Retirement? (Elisa) 31:13 - Asset Location: How to Invest in Bonds in a Taxable Account to Rebalance? (Joe) 35:09 - Medicare Savings Vs. Roth Conversions (David, Logan, NM) 40:04

Does the math work for Chris’ early retirement plan? What’s a safe retirement withdrawal rate for Luke, who wants to be part of the financial independence / retire early or FIRE movement - and what does Joe have against FIRE? Plus, Jake is about to change jobs, can Joe and Big Al uncover any tax planning opportunities for him? The fellas also explain capital gains tax for our buddy Carl Spackler, and they spitball on those capital gains when it comes to selling a house for Olga and for LJ, and Jim wonders about the impact of selling a house on Affordable Care Act subsidies.  Timestamps: 00:54 - Early Retirement Spitball: Does the Math Work? (Chris, Philadelphia) 04:27 - FIRE Withdrawal Rate for Long-Term Capital Preservation? (Luke, Ft. Collins, CO) 14:26 - We’re 38 and 33. Any Tax Planning Opportunities Before I Change Jobs? (Jake, VA) 20:48 - Capital Gains Tax Explained (Carl Spackler, FL) 23:55 - House Sale Tax Strategy (Olga, Chula Vista) 26:32 - Do I Need to Worry About Investment Property Sale Proceeds

Christine isn’t sure that Roth conversions are all they’re cracked up to be. Erick needs a retirement spitball analysis for his Roth conversions, annuities, and the real estate in his self-directed IRA, Billy the disgruntled attorney wants to know if he can retire now, and Zach wonders just how bad is it to rely on the lottery for retirement? But first, Joe and Big Al spitball military retirement strategies. Timestamps: 01:16 - I'm 22, Military. Should I Be Spending More Instead of Saving So Much? (Cole - voice) 06:19 - I'm 27. How Should I Max Out Military and Second Job Retirement Contributions? (Adam) 09:08 - Retiring With Pensions at Ages 59 & 63. Is Our Retirement Plan Sound? (Scott, AL) 16:55 - I’m Not Sure Roth Conversions Are as Good as They Sound! (Christine, Seattle) 26:44 - Roth Conversion, Annuities, Real Estate in Self-Directed IRA Strategy? (Erick, CA) 37:23 - Can a Disgruntled Attorney Quit and Retire Now? (Billy, Joplin, MO) 39:53 - Just How Bad an Idea Is Relying on the Lottery for Retir

Should Carl Spackler stick with his backdoor Roth strategy, or go for lower fees? Should Kevin go all Roth, or stick with his current three tax-diversified buckets strategy? (That depends - would he rather have $7 million tax-free, or $10 million in tax-deferred retirement accounts?) Can Lily claim all the extra allowances she can, to jam as much money as possible into her Roth? Can Dave retire now and ride his motorcycle into the Bavarian Alpine sunset, and does Peggy Lee need to be feverish about the tax underpayment penalty with her Roth strategy? Timestamps: 00:53 - Do I Need to Worry About a Tax Underpayment Penalty with My Roth Strategy? (Peggy Lee, North Dakota) 07:17 - What Am I Doing Wrong? Can I Retire Now? What About Taxes? (Dave, Germany) 15:28 - Back Door Roth vs. Lower Fees: Which Would You Choose? (Carl Spackler, FL) 21:40 - Should We Go All Roth or Three Tax-Diversified Buckets? (Kevin, NJ ) 28:53 - Can I Claim Extra Allowances to Contribute More to Roth IRA? (Lily, San Diego) 33:46 - Should

Steven has got "one more year" syndrome. Can he retire at age 65? Today on Your Money, Your Wealth® podcast 438, Joe and Big Al spitball retirement for him, and for MB - can she and her husband live comfortably if she retires at age 59½? And for Johnny - does he have enough to fill the gap until retirement, and should his dad do Roth conversions before Johnny inherits his wealth? Is Austin maximizing his future gains by saving to his 401(k) at age 29, rather than his Roth IRA? But first, how can Mike and his wife leave their kids a lower tax bill when they pass? Timestamps: 00:45 - How to Leave the Kids a Lower Tax Bill When We Pass? (Mike, Boerne, TX - voice) 04:24 - I Have "One More Year" Syndrome. Can I Retire at 65? (Steven, Exton, PA) 08:30 - Can We Live Comfortably If I Retire at 59½? (MB, Louisville, KY) 12:49 - Do I Have Enough to Fill the Gap Until Retirement? Should Dad Convert My Inheritance to Roth? (Johnny, El Dorado, CA) 21:49 - Am I Maximizing Future Gains By Saving to Pre-Tax 401(k)? (Austin,