So you want to rollover your unwanted RMD (required minimum distribution) into an IRA? Not so fast! It’s not 2020 anymore (thank God!) when no one had to take an RMD, and that ONE-TIME exception allowed by the CARES Act no longer applies. The rules for 2021 say that you cannot, we repeat, CANNOT roll over your RMD into an IRA or any other retirement account. As Ed Slott would say, “How money moves matters!”
This year, you must take your RMD and follow the rules or the consequences will be expensive. Join Dennis and Heidi this week as they refresh your RMD memory. Also, this is a good week to have our own Shelley Osborne live to give you a few tips on understanding tax forms and filing taxes this year. Her advice … “Pay attention to the form changes!”
We think it’s fair to say that the main goal in retirement is to do it once. No one dreams of going back to work once you have punched the proverbial time clock for the last time. According to InvestmentNews and a study done by Clever Real Estate, the pandemic has doubled retiree debt partly because of the need for credit. Many retirees are struggling to live the pre-retirement lifestyle and are going into debt to cover basic expenses. This begs the question, “How much should one save for retirement?”
We’re so glad you asked! Today, Dennis and Heidi are going to share what the average retirement savings per age should be vs. what the national average is. This will help you benchmark your situation and adjust as you approach the retirement time clock!
The last time Ed Slott, “America’s IRA Expert,” joined us on the air, we were waiting on pins and needles to see who the next U.S. President would be. Well now that we know, we also know a few more things about the coming year … like that you must take your RMD (required minimum distribution) and that tax rates might be changing. Ed has a few surprises to share as well.
The anxiety folks are feeling hasn’t disappeared, but it has shifted to, “What now?” We’re hoping to give you some measure of control from Ed’s perspective.
The American College New York Life Center for Retirement Income released a QUIZ. last year to test your retirement knowledge. It might be worth your time to take it and then tune in to our show. Why? Because retirement is now 100% your responsibility. Gone are the days of simple retirement planning, which included a pension, Social Security and savings. Today, we are left to our own resources and knowledge to create a plan. Plus, there are a lot of factors to consider outside of different savings vehicles. For example, when surveyed, young Baby Boomers changed jobs 11.7 times in their career. Add to this longevity and the responsibility of caring for elderly parents and adult children, and there’s a lot more to consider when planning where the money needs to go.
We don’t want to … but we must look back on 2020. Why? Because it was a BIG year for IRA rulings and Social Security. As much as we’d like to think that you’ve been listening, we want to repeat ourselves once again. Moving forward into the New Year will require you to check your lists twice. Dennis will cover the IRA rulings and Heidi will review the Social Security list.
Tune in today and grab your pen and a pad of paper. There will be a lot to remember.
If you haven’t heard already, the second stimulus passed, and it has quite a few implications for business owners. Jon Sluis shares details of the package in this video, and we will discuss it LIVE on the air today. SPOILER ALERT: Forgiveness of the PPP loan could possibly save business owners 30% and meals are 100% deductible in 2021. Those are two great surprises!
Dennis will also weigh in on economists’ projections for the New Year, which include rumors of inflation based on historical trends.
This week I continue my “Real Retirement Stories” series by interviewing my friend Paul. He began his career at GM the week after graduating high school. He attended what is now called Kettering University, a GM co-op program that was highly competitive. Less than half of his class made it through. As an engineer, he started in operations, moved to assembly, and then landed his dream job with the team that built the Corvette. He loved every minute of his 40-year career and felt thankful to have found it. My uncle Burt used to say, “If you love what you do, you’ll never work a day in your life.” Paul agrees!
Paul and I both love cars and finding wisdom in the unexpected places. Tune in to hear how his career, view of money and retirement evolved as life played out in unexpected ways.
It’s always good to end on a good note, and Paul is someone that did just that!
We hope this Christmas season finds you tucked into your home with family nearby as you all huddle by the radio. Today’s show is unlike any we have done before. Dennis will read a short Christmas story by O. Henry called, “The Gift of the Magi,” which was published in 1905. In addition to the story, you’ll also hear many of Dennis’ favorite Christmas songs sprinkled between segments.
Merry Christmas and Happy Holidays from all of us at Prout Financial Design. When we count our blessings, you definitely top the list!
In the age of DIY, should you manage your own portfolio? That’s a great question! And we’d like to weigh in. According to the financial experts at The Balance, one of the world’s largest investment companies, Vanguard, has been examining this question for 15 years. Based on research, analysis and testing, Vanguard has concluded that there is, in fact, a quantifiable increase in return from working with a financial advisor. Vanguard calls this advantage the “Advisor’s Alpha.” When certain best practices are followed, the result can be an Alpha in the 3 percent per year range. Read more about this topic HERE.
Beyond the math, there are plenty more reasons to get an advisor on your team. On today’s show, Dennis and Heidi will give you a few good ones when considering an advisor in 2021.
Not sure about you, but we’re getting a little excited thinking about 2020 coming to an end. When we joked about 20/20 vision and getting more clarity – we never imagined a pandemic as the impetus to get us there. For a lot of you, the disruption has caused you to reevaluate your careers, goals and travel plans. We no longer take for granted our health, seeing family on a regular basis or even having enough toilet paper.
Join us today for the checklist to end all checklists! We will cover the changes in 2020, milestone ages, life events and, of course, how to talk to your beneficiaries about your plans.
Bring your list. Check it twice. This year was naughty. Not nice.
My hope is that the real retirement stories we’ve been featuring this fall have inspired you to consider what retirement could look like for you. It’s one thing to imagine a life after work and it’s another to realize that dream. Speaking of which, have you taken the time to dream? Most pre-retirees who meet with us have only a vague vision of what they will do ... not because they lack imagination but, simply, because life itself has been so demanding. We get it.
Perhaps you can take time today and start by joining Heidi and Dennis as they share some of the realities (both good and bad) of retirement, including doubling your budget for things like … BOOKS!
There are two kinds of people in this world: dreamers and doers. Then, there are those who do BOTH! Meet our guest, Sally Manke. During her career as a teacher, she managed to raise two children while also running a seasonal hotel in Manistee with her husband. It wasn’t until retirement that she found her dream job as a fiber artist.
As an artist, Sally’s work has been featured at juried quilt shows throughout the U.S., including the American Quilter’s Society events and International Quilt Festival. Her innumerable awards include a blue ribbon at QuiltWeek in Paducah, Kentucky – ostensibly the Red Carpet of quilt guild shows – and a Red Hot Best nod as Northern Michigan’s Best Visual Artist in 2016. She enjoys sharing her expertise through trunk shows, classes, and workshops at quilt shops and guilds.
President-elect Joe Biden has proposed a tax plan that will increase taxes on corporations and the wealthy with no increase for individuals earning less than $400K annually. This is just one of several key takeaways that you can read about here, or you can join our special guest, CPA Jon Sluis, LIVE today to learn more. He’s also going to help dispel some of the rumors swirling around in the media and give prudent tax guidance as we head into 2021. And with only six weeks until the end of the year, there are still things you can do for own tax planning.
There’s never a dull moment when we have Jon on the air! Tune in and get the details. In fact, you might want to take some notes.
Ed Slott might have summarized it best when he said, “Look, there will be a president for the next four years and another one after that. Everything changes. You must focus on your own plan.” We couldn’t agree more! But we all know it’s easier said than done. What happens on a large scale affects us. And it’s not realistic to ignore the bigger picture even if we don’t have control over it. However, it is easier to execute on our own plans.
Today, Dennis and Heidi will give you practical tips on how to take advantage of the good things. There will always be a reason to be negative. Stay positive by managing your own plan.
I (Shea) have a very vivid memory as a child riding around in my grandfather’s vintage truck and snacking on prunes. He said they were “dessert.” My grandfather did push-ups every morning, took his supplements and didn’t eat much sugar. He also saved his pennies. I wonder what he would think about today’s health care stat:
According to Fidelity research, the cost for health care post-age 65 is $295,000 per couple, excluding long-term care.
Health care is one of the largest expenses that people face in retirement. But don’t despair because there are ways to strategize and fill in the gaps.
Today we have guest expert, Laverna Witkop, from Ford Insurance. She specializes in working with retirees who are navigating the complex world of health insurance. Join us!
If 2020 were a candy bar, it would be a baker’s chocolate-covered sour patch with an endless sucker for the center (that’s our opinion anyways). Is it a trick or is it a treat? Well, maybe both! Our guest and America’s IRA expert, Ed Slott, has a few things to say about the tricks and treats of 2020. He’ll discuss the potential disadvantages and possibilities of the SECURE Act and CARES Act. And we’ll also get his take on the best strategic moves for the remainder of the year, how to plan for taxes and whether or not you should convert to a Roth IRA.
Today’s show will be a mixed bag.
There is one thing we can all agree on: 2020 isn’t the year we hoped it would be. We also realize that this year’s pandemic has forced many of you to revisit your estate planning, which might not have been at the top of your New Year’s Resolution list. A hot topic regarding estate planning and retirement saving is life insurance vs. Roth IRAs.
Both life insurance and Roth IRAs have something in common: they are wealth transfer tools that help facilitate an efficient transfer of assets from one generation to the next and can provide a tax-free legacy. And yet, they are very different because they play by different rules.
Today, Dennis and Heidi will give you three important differences between the two along with tips on how to investigate both!
A lot can change in a year (insert sarcastic laugh). Maybe the job you thought would never end has been eliminated. Or perhaps you’re retiring earlier than expected. Or maybe this year has brought a lot of clarity and you’ve decided to change directions.
If you have a 401(k) company plan, you have options for the distribution of it. In fact, you have SIX options! How exciting is that? Today, Dennis and Heidi will go through the six options with you along with tips on how to invest if you’re over 70 and working.
It’s hard to believe it’s already October! This time of year is not only breathtakingly beautiful up here in northern Michigan, it’s also a good time to slow down and review important financial details. On a national level, considering that both the Democrats and Republicans have spent a lot of money to stimulate the economy, it’s important to understand why the U.S. deficit matters as well as how this spending will eventually affect you.
We’ll also discuss the multiple investment deadlines you need to be aware of, cover the Coronavirus-related distributions from the federal government, and review how the CARES Act has affected your investing strategies (like waiving required minimum distributions deadlines).
Bob Simpson, District Manager of the Traverse City Social Security Administrative office, wants to be clear: “There are NO secrets when it comes to Social Security despite what the headlines say.” After 35 years on the job, one would think he’d would know a thing or two about that. On today’s show, Bob will join Heidi and Shea to talk about how to schedule an appointment with one his office’s 17 representatives who are working remotely. He will also give you the ins and outs of some more complex issues related to collecting Social Security and how to avoid scams.
Remember, the Social Security office is there to provide you with options, not give you advice. After you’ve collected the facts, consider meeting with your financial advisor and CPA to decide on your income strategies in retirement.
Doug Godbe worked for himself as an estate planning attorney in California. He began the retirement planning process at the age of 30, always running the numbers and calculating the outcome. It wasn’t until his late 50’s that the deadline became more important. He witnessed his friend (another attorney) decide mid-litigation to put in his two weeks’ notice because he wanted to collect his pension. But for Doug it wasn’t an easy task … he had a business to transfer to his son as well as his wife’s retirement to consider.
I sat down with Doug and he shared his retirement success, fails and surprises. We talked about everything from careers, empty nesting, marriage, health, remodeling houses and taking on professional projects after the fact. Lastly, over the years as he observed and handled the estate plans of his clients, he saw firsthand what made them successful in retirement.
I recently interviewed Doug Godbe for an upcoming show that will air on September 24. Doug is a retired estate planning attorney who started to plan for his own retirement when he was 30. Between spreadsheets and careful calculations, he is still surprised by a few things in retirement and would even admit that he is “failing” in several areas. If the extreme planners are reexamining their plans, what about the rest of us? According to a 2015 study, only one-third of retirees retired when they had intended. This means that 60% of retirees age 55 to 65 left their careers unexpectedly. That’s a lot.
Are you on track? How do you know?
Tune in today as Dennis and Heidi share some of the benchmarks for a healthy review of your plan.
Did you know … if you’re a business owner and offer your employees a 401(k) plan, you also have a fiduciary responsibility to those employees. Add that to your growing list of responsibilities in a year of disruption, not including the rules and regulations to 401(k) plans stipulated in the SECURE Act, CARES Act and DOL Fiduciary Rulings. Are you up-to-date? If not, we are here to help!
Prout Financial Design has served as the 401(k) fiduciary for many businesses over the years, and we are seeing an urgent need for business owners with this burden. This is why we have partnered with our long-time friend and business associate, Christian Whitehead, from Wealth Advisory Group.
Join us on the show today as we talk to Christian about all of these changes and how our 401(k) audit can help your business get back on track.
Guess what? The market is not the economy. Maybe you’ve read this before as investors are trying to help us make sense of the contrast we’re seeing. So many people have lost their jobs, another shutdown is being threatened and, meanwhile, the stock market has completely rallied since March. Visually, it’s like seeing a dilapidated house with a newly remodeled front porch. It just doesn’t make sense.
Join us today as we discuss why it is important to pay attention to both the market and the economy while keeping our balance down the middle. To put it simply, the economy is what happened yesterday, and the stock market is what is in the future. What are we supposed to do with that?
Now that the dust has (mostly) settled from the almost weekly legislative changes these past few months, today’s guest, CPA Jon Sluis, says, “It’s time to start paying attention and start dealing with the change that happened.” He’s referring to the disconnect between what many are hearing in the media and what they are seeing in their own financial positions.
As a result of the flood of stimulus money injected into the economy, limited businesses went down; the same for individuals. In fact, many businesses and individuals pivoted as a result of all the changes thrown at them. Whether from increased support from clients, creative marketing or quick cost-cutting initiatives, many businesses and individuals are feeling more cash flush than before. While some saw declines in top-line revenue or investment returns, many are actually seeing an increase in bottom-line taxable income – which means there may be a tax liability coming. And when you are cash flush, it’s usually a good indication that you may need to start tax planning now and shift to those discussions.
This show will discuss the repercussions of what happened and how to deal with it now. Tune in and take control! There’s never enough time when we have Jon on the air.