Admittedly, we’ve been a little excited about the Roth IRA and all of the fancy tricks it can do. At 20 years old, it’s still a young option full of possibilities. It even acts invisible at times. Did you know that since Congress first allowed all owners of Traditional IRAs to make full or partial conversions to Roth IRAs in 2010, savers have done more than one million conversions and switched more than $75 billion from Traditional IRAs to Roth accounts (Wall Street Journal)? 

Today, we are going to talk about when the Roth IRAs don't work. It may seem shocking, but there are times when it just doesn’t make good financial sense. Tune in to hear more.

I (Shea) didn’t grow up dreaming of working in the world of finance. In fact, I had no aptitude for numbers at all. But here at Prout Financial Design, as the resident creative, I have thrown myself headfirst into understanding investments. It’s a world all its own, one that most prefer NOT to understand. We’d rather do what we’re good at, hire someone to set up our investment strategy and move on with our lives.  That being said, a great article from MarketWatch called “The 10 commandments of retirement” was published a few days ago. This article is, hands down, one of the most clear-cut descriptions of not only how to save, but why we need to save. If I’ve said it once on the air, I’ve said it a thousand times, “If I can understand retirement planning, you can too!”  

Dennis loves retirement planning for several reasons. Top of the list? The strategy of it all! Let’s say you want to wait until age 70 to collect your Social Security so that you can receive the full benefit (an 8% increase every year that you postpone collecting). At 66, you’ll have four more years until your benefits kick in. What do you do until then? Where can you draw income to cover the gap?

This is where the fun begins for us! Perhaps it makes sense for you or your spouse to work part-time. Or consider “rightsizing” your lifestyle to save on resources. Or even take a little more from your 401(k). What about the annuity you forgot about? So many options! Tune in to hear the different strategies as you “mind the income gap” while moving into your second chapter in life.

I (Shea) bought my first house at the age of 37. I felt like a late bloomer considering that most of my friends bought homes a decade ago. One year into home ownership, and I can honestly say that home IS where my heart (and Pomeranian “Poppy”) lives. Dennis rented for four years before finding the house of his dreams just a few years ago. Many of his friends said, “Why are you renting? Isn’t that a poor decision for a financial advisor?”

The idea of a home is subjective, isn’t it? Well, so is financial planning.

So, what does one do about that pesky mortgage? Do you pay it off quickly or take your time? With the new tax laws that took effect at the end of 2017, it’s time to rethink your mortgage and how it relates to your retirement planning. And no, winning the lottery shouldn’t be your first line of defense .

Money may talk, but taxes scream for attention. Case in point: If the owner of a retirement plan account neglects to name a beneficiary, the plan will use its default rules, which typically make the owner’s estate the beneficiary. This requires both appropriate federal AND state taxes be withheld before issuing the lump sum to the estate. Not only can this be a costly mistake, it could have been completely avoided.

But there’s hope! Last May, the IRS released a private letter ruling (PLR) that allows a surviving spouse to execute a 60-day rollover of assets inherited from a company retirement plan, even though they were first paid to the decedent’s estate. (ED Slott’s July Newsletter)

While we hope this affects only a small percentage of you, the spousal rollover rulings are extremely important to be aware of. Tune in today to find out what your options are.

The reason most folks set up a trust in their estate plan is simply because they want to keep control of their lifetime investments after they are gone. We are often asked whether or not a trust makes sense for someone. It can, but it’s not for everyone.

Today, we will discuss the benefits of a trust – who should create one, and how to protect it when you’re gone.

Knowing when to claim your Social Security is one of the most strategic decisions a person will make as they near retirement. And it’s also one of the hottest topics in retirement planning because it affects nearly everyone. Currently, there are about 10,000 Baby Boomers turning 65 every day.

What about you? Should you take Social Security at full retirement age, or delay receiving benefits? Were you married and considering taking your ex-spouse’s benefits? Are you considering getting remarried? What about your children? Can they receive your benefits?