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!