Retirement Reality Podcast
Ep 28: Understanding Roth Conversions as a Planning Strategy

Ep 28: Understanding Roth Conversions as a Planning Strategy

March 26, 2020

With taxes at historically low levels, many people have turned to Roth conversions as a planning strategy. Is this a smart option for you? What all should you consider when it comes to conversions? Let’s breakdown the pros and cons and explain how the process would work for you.

 

Read more and get additional resources here: https://principalpreservationservices.com/ep-27-understanding-roth-conversions-as-a-planning-strategy/ 

 

Today's rundown: 

1:18 – Roth conversions are a topic we talk about a lot in the planning process.  

2:37 – What is a Roth conversion?

3:33 – Why might this be especially helpful for high-income earners?

5:04 – Mike explains tax considerations for a Roth conversion?

6:09 – What are the common mistakes people make with a Roth conversion?

7:25 – Who is someone that might benefit from this strategy?

8:48 – This is a great way for people wanting to leave money to their kids through a retirement account.

9:39 – Who else should not consider a Roth conversion?

10:49 – A common mistake we see people make relating to RMDs.                                                       

11:48 – Every situation is different and you need a personal plan.

13:16 – Mailbag question: I have several thousand in company stock that I want to cash in and put towards land to build a vacation home. Is there any reason I shouldn’t do that?

Ep 27: Coronavirus Update + Getting Lost in Retirement

Ep 27: Coronavirus Update + Getting Lost in Retirement

March 19, 2020

With so much uncertainty in the market right now, we want to get Mike’s opinion on what we’re seeing with the coronavirus and the impact it’s having financially. We’ll then spend the rest of the show discussing ways in which you get lost in retirement. It doesn’t take much to get off track but there are always ways to regain your retirement compass.  

 

Read more and get additional resources here: https://principalpreservationservices.com/coronavirus-upda…st-in-retirement/ 

 

Today's rundown: 

2:17 – What does Mike make of the coronavirus and its impact on the market.

3:42– This is scary if you’re in retirement.

5:20 – You have to know where you are in your retirement planning process.

6:49– Long term we’re not worried.

8:07– Let’s shift to our main topic today on getting lost in retirement planning.

8:31– The first way to get lost is having bad tools.

10:13– The next way is getting poor directions from someone.

12:52– If the first two don’t get you, then you might get lost due to lack of attention.

14:36– How can we get back on track? Let’s start with determining exactly where you are.

15:51- The next thing you need to do is decide where you want to go.

17:27- Don’t be afraid to get help along the way.

Ep 26: What’s Your Level of Desire to Retire?

Ep 26: What’s Your Level of Desire to Retire?

March 12, 2020

When you think about retirement, are you someone that pictures yourself working for as long as you can or do you want to hang it up as soon as financially possible? Everyone has a different level of desire when it comes to retiring and we’ll span the full spectrum on this episode.

 

Read more and get additional resources here:  https://principalpreservationservices.com/ep-26-whats-your-level-of-desire-to-retire/ 

 

Today's rundown: 

2:48 – Getting to Know Mike: What’s your favorite sport?

5:21 – Moving into our main topic on desire to retire.

5:41 – Level 1: ‘I don’t see myself retiring. I love what I do.’

6:49 – Level 2: ‘I guess I could retire but they pay me pretty well and I don’t hate it. So I might as well keep working.’

7:35 – Mike shares a story about a trip to California and a retirement conversation he had.

8:52 – Level 3: ‘I’d like to retire in a few years but I’m not really sure when I can.’

11:05 – Level 4: ‘I always pictured myself working for a few more years but the idea of retirement is looking better and better.’

13:28 – Level 5: ‘I want to retire tomorrow and if I don’t quit this job right now, they might have to put me in an asylum.’

16:28 – Here’s how you can start the planning process regardless of your level.                                 

17:54 – Mailbag question: It appears I’m now able to contribute more to my 401k this year than I was allowed to last year. Is it safe to assume I should put in the extra amount?

Ep 25: What Does the SECURE Act Mean For Your Retirement?

Ep 25: What Does the SECURE Act Mean For Your Retirement?

March 5, 2020

The SECURE Act took effect at the beginning of 2020 and it brought significant changes to retirement accounts. Let’s break down the new legislation and explain what it means to your plan.

 

Get the show notes and additional resources here: https://principalpreservationservices.com/ep-25-what-does-the-secure-act-mean-for-your-retirement/ 

 

Today's rundown: 

0:56 – Here’s what we plan on talking about today.  

1:34 – Most of our clients don’t know the details of the SECURE Act and we’re discussing it with them quite a bit.

2:32 – In the News: Study shows student loans have tripled since 2006 and now stands at $1.6 trillion. How serious is this problem?

6:00 – The SECURE Act got passed at the end of 2019. Here’s an overview of what it means to you.

8:26 – How does the delay in taking your RMDs impact retirees?

9:45 – Two more big changes that came with the SECURE Act involving contributions and Stretch IRAs.

12:17 – If you plan on leaving money behind to your children, what’s the best way to do it?

13:54 – A couple extra tidbits involving the SECURE Act.                                                                         

16:04 – This is significant legislation and it’s a great idea to meet with an advisor.  

16:47 – Mailbag question: I’ve worked with a couple different advisors over the years and like them both. Should I stick to just one or is okay to work with both?