Your Money, Your Wealth

Joe Anderson, CFP® and Big Al Clopine CPA answer your burning financial questions in episode 61 of the YMYW podcast, ranging from how to avoid gift taxes to why it's worth it to invest in a 401(k). Original publish date September 3, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro  04:17 - "When we talk about long-term care planning, a lot of people assume we mean you have to buy insurance and that's one way to solve an issue, but not the only way." 06:20 - "Medicare covers skilled care; they don't necessarily cover custodial care. Custodial care means you're not necessarily going to get better. Skilled care can patch you up and get you out the door." 11:20 - "What type of loan should I use to buy out my sibling for inherited property?" 16:59 - "You may have a will or a trust and that will spell out how the assets will be divvied up, but a letter of instructions and meeting beforehand goes a long way." 20:24 - "Can I avoid paying gift tax? Can a grandparen

Pensions in lump sum vs monthly payments, 401(k) rules, the fiduciary standard, and more as Joe Anderson, CFP® and Big Al Clopine, CPA answer listeners' investing and personal finance questions on episode 60 of the YMYW podcast. Original publish date August 27, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.  02:00 - "Does the early withdrawal penalty on my IRA apply to me?" 04:40 - "Never use your IRA (individual retirement account) for anything other than retirement." 05:23 - "Do 401(k) contributions have any effect on MAGI (modified adjusted growth income)?" 08:40 - "Think of 'above-the-line' as things like income and direct expenses to that income whereas 'below-the-line' is generally personal expenses." 11:14 - "Which should I take, a monthly pension or lump sum buyout?" 16:56 - "Why should I hire a fiduciary advisor?" 20:03 - "Everybody needs a financial plan, but not everybody needs a financial planner." 23:08 - "If you can save money on taxes, your money is goin

Did you know there are strategies you can use to reduce your required minimum distributions (RMDs) from your individual retirement account? In episode 56 of the YMYW podcast, find out six ways to do this so you can keep more of the money you've earned, saved, and invested through your entire working life. Original publish date August 27, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 01:45 - "Once you turn 70 ½, you have to start pulling money out of an IRA (individual retirement account). If you are 70 ½ and still working, and own less than 5% of the company, you can delay your required minimum distribution until you retire." 04:13 - "Once you turn 59 ½ you can withdraw money from your tax-deferred accounts without paying a 10% penalty." 06:54 - "A lot of people don't realize that you can do these Roth conversions even before 59 ½. You could be any age and do a conversion." 10:45 - "This is a valid way to reduce your RMDs – invest in a QLAC (quality long

Joe Anderson, CFP® and Big Al Clopine CPA answer personal finance questions about real estate investments, financial planning in your 20s, retirement, and controlling income taxes from Investopedia in episode 58 of the YMYW podcast. Original publish date August 20, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:49 - "I have 2 town home units, 9 & 10. I lived in #10 since 2006 and rented #9. I want to sell both and buy a new larger home using capital gains. I will have approximately $200,000 from #10 and $150,000 from #9 in capital gains. The new home will cost approximately $500,000. If I use these gains as down payment for a new home, do I qualify for capital gain exclusion under Taxpayer Relief Act of 1997?" 07:21 - "If you're in a divorce situation and this applies to you, you want to be careful how you do the property selling." 08:10 - "How do I become financially strong and independent at 22 years old? I have one full time job ($10,800 annuall

In episode 57 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA shed light on scary statistics regarding the rise of healthcare costs and share strategies to show how listeners can protect themselves. Plus, how traditional retirement planning has changed over the years. Original publish date August 20, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  01:43 - "The typical inflation rate has been around 3% historically; we use about 3.7% to be conservative. Medically right we do about 5.7% because that's what it's been growing at." 02:55 - "If you want to get an hour full of Medicare [education] go to purefinancial.com and check out our recent webinar." 05:33 - "A lot of people don't realize that Medicare does not cover [all] long-term care stays." 9:00 - "Age 70 ½ is when you have to start taking your required minimum distribution out of your IRA and 401(k)." 15:45 - "When it comes to parents' children and how much they're spending on athletics…how much are

Joe Anderson, CFP® and Big Al Clopine CPA answer frequently asked financial planning questions about divorce, tax deductions, business profits, Roth IRAs, IRA rollovers and more from Investopedia in episode 56 of the YMYW podcast. Original publish date August 13, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 02:32 - "I am paying off a loan for CDL (commercial driver's license) school, and wondering if it is tax deductible. Does it matter if I no longer work in the trucking industry? I'm fairly inexperienced in the area of tax deductions. I understand the interest on loans is the only part that is deductible, right?" 04:11 - "After a divorce, can assets be distributed to into an account that is not in my ex-spouses name?" 06:54 - "Can a company have an extremely high gross margin and negative operating margin at the same time?" 07:58 - "Will I have to pay capital gains tax on the sale of two different homes?" 11:20 - "Can I draw $30,000 out of my ROTH IR

Presidents can bully the Federal Reserve, but they can't set central bank policy. Joe Anderson, CFP® and Alan Clopine, CPA explain how the Fed impacts overall markets in YMYW podcast 55. They also discuss a recent article covering three reasons why you should ignore Hillary Clinton and Donald Trump's economic promises. Original publish date August 13, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 03:06 - "The president doesn't control the Federal Reserve system. The way the Fed was set up was quasi-independent and answers to Congress on monetary policy." 07:56 - "Stocks are priced based upon future predictions of what we all think the future's going to be." 12:41 - "The moment you turn 50, you can put more into your retirement plans, and then that can give you a better tax benefit via deduction because you can shelter more money via tax or have more money grow tax-free depending on what planning you're doing." 15:36 - "Any time you pull money out of a 4

The IRS changed the rules for IRA rollovers and not everyone is catching on. Taxpayers can only perform one 60-day IRA rollover in a 12-month period, no matter how many IRAs they own. Joe Anderson, CFP® & Alan Clopine, CPA go over this new rule and share how you can avoid getting hit with high tax bills in YMYW podcast 54. Original publish date August 6, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 01:04 - "[We made a] 7-minute video on how to plan your finances in your 20's and 30's. The sooner you start, the better off you'll be." 04:41 - "We've been talking about costly retirement mistakes, and this is a relatively new one [60 day rollover rule]. It's indirectly rolling more than one IRA in a 12-month period - it's no longer allowed." 08:11 - "It's the direct rollover where the IRS won't withhold taxes but if you select rollover, they will." 12:19 - "If you're pulling money out of your retirement account for your own purposes, whatever they migh

Joe Anderson, CFP® & Alan Clopine, CPA share common retirement mistakes they've seen for years. These mistakes that could cost you thousands, if not more, can easily be avoided if you learn how. Original publish date August 6, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 02:27 - "What we have found with a lot of you is that potentially you're not going to be in a lower tax bracket." 05:37 - "The people we work with have assets in retirement accounts, and in most cases they will be in the same tax bracket or higher because most people that will come into our office want to at least maintain their same lifestyle." 09:32 - "You have to put a plan together to take a look at a forward-looking strategy." 13:37 - "The first one (mistake) seems so obvious but we see it over and over again – it's not having beneficiaries on your retirement plan or IRA or having the wrong ones on your IRA." 17:34 - "As a CPA (Certified Public Accountant) for over 30 years, i

Joe Anderson, CFP® & Alan Clopine, CPA answer frequently asked investing questions and explain key factors to look for when choosing a financial advisor on YMYW podcast 52. Should you choose a fee-only or fee-based advisor and does it matter if they follow the fiduciary standard? Find out. Original publish date July 30, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 02:27 - "I'm currently employed by two employers, which brings my yearly income to $170K. I understand my pre-tax contributions. One of my employers now offers a Roth contribution. Am I eligible to contribute to only one employer's Roth?" 04:54 - "Yes, you can contribute to both plans…can you contribute to a Roth in either or both plans? The answer is yes." 08:15 - "I just purchased a home in January 2015 and I'm now wanting to sell with a potential profit of about $60K. I am newly married as of May 2016, and would like to file Head of Household to avoid paying Capital Gains. My income al

On YMYW podcast 51, Joe Anderson, CFP® & Alan Clopine, CPA discuss three major tax-saving strategies that might be going away: the backdoor Roth IRA, net unrealized appreciation (NUA) and the stretch IRA. Learn how you can take advantage of them before it's too late. Original publish date July 30, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 04:07 - "That's why the government is trying to get rid of it (the backdoor Roth IRA), because it's a way for those who make a lot of money to do a Roth contribution kind of the backdoor way." 05:25 - "The downside of doing a conversion is that you have to pay the tax on the dollars that go into the Roth." 05:45 - "If you're under 70 ½ and you have earned income, you can contribute to a traditional IRA." 09:57 - "The most important investment, by far that you can make is an investment you make in yourself." 11:56 - "Our opinion is that if you don't have a Roth [IRA], start one now." 17:17 - "You want to make sur

How often do you come out on top if you try to beat the odds? Most active-fund managers fail to beat the market. Joe Anderson, CFP® and Big Al Clopine CPA share a more reliable way to invest for your future in YMYW podcast episode 50. Original publish date July 23, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 04:12 - "As the market declines, we are buying the same great companies at a discount, so now is the time to invest." 06:24 - "You want to make sure you're diversified." 07:03 - "Small companies and value companies tend to outperform large and growth companies over the long-term. But we haven't seen that the last few years. Does that mean we abandon that strategy? No, it still works if you give it enough time – that's where patience is really important." 11:01 - "We have all-time lows for the 10-year treasury…" 12:29 - "If you're a U.S. investor and getting 60% of your portfolio going to return 6% and 40% going to return 1%, you're talking about a

Markets are at all-time highs despite recent events. In episode 49 of the YMYW podcast, Joe and Al share smart investment strategies you can learn from past performance and give advice for investing in a bull market versus a bear market. Original publish date July 23, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  10 Steps to Improve Investing Success - free download 00:00 - Intro 02:33 - "If you're invested in the stock market today, the question is: now what? Should you keep your money in the market? If you've been sitting on the sidelines sitting in cash, is it a good time to jump in?" 03:23 - "Trying to time the market is a fool's game, not to mention pretty dangerous." 05:36 - "By being fully invested when you need to be fully invested – that's the appropriate way to do it. Get invested properly and stay invested." 09:02 - "Because the stock market is volatile and you can lose money, over the long term you make a lot more money and that's the premium that you hav

Your generosity can pay off in more ways than one: when you give a charitable gift, the IRS will forgive a tax. In episode 48 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA share how to make tax-smart charitable donations. Original publish date July 16, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 – Intro 02:47 – "Here's what does create a tax deduction for volunteering: your mileage to and from some type of charitable event you go to…supplies you purchase directly for charity, and there are some fundraising expenses that will qualify for tax deductions. A lot of people miss those deductions. Those deductions reduce your taxable income which ultimately reduces the amount of taxes you pay." 04:36 – "If you're spending money for charitable purposes or for a specific charity, then those expenses may be tax-deductible." 07:00 – "Give appreciated stock directly to charity because the tax deduction you get is the current value of the stock on the day

The landscape of retirement is changing. The cost of living is rising and we are living longer than ever before. In episode 47 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA share financial tips for this new age of retirement and they welcome Medicare expert, Dr. Katy Votava to share her best ways of coping with rising Medicare premiums in 2016. Original publish date July 16, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.  Download the Medicare Checkup Guide 00:00 - Intro 01:57 - "When you turn age 62 or 63, the income that you make is going to determine what your Medicare premiums are." 07:58 - "A lot of you are probably overspending or will overspend for your Medicare coverage and healthcare coverage so we want to talk to Dr. Katy to figure out what the solution is there to make sure you keep a little more money in your pocket." 12:11 - "We see five different expenses on the horizon that can threaten your lifestyle in retirement and that could dramat

There are plenty of options when it comes to IRAs, but with plenty of options can come plenty of mistakes. In episode 44 of the YMYW podcast, learn from Joe Anderson, CFP® and Big Al Clopine, CPA how to ensure you don't blow it with your IRA. Find out how to avoid the 10 most common IRA mistakes you don't want to make. Original publish date Junly 2, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 01:09 - "Now we're in the month of July and the Baby Boomers are turning 70 ½ and having to take the required distributions. There are a lot of mistakes (made) and a lot of penalties." 07:14 - "With regards to the 401(k), if you are still working in the company and you're not more than a 5% owner of that company, you're able to delay that required beginning date to April 1st of the following year that you finally separate from service" 09:22 - "I've been a CPA for over thirty years and it does amaze me how many people fail to get the message about tax planning an

Joe Anderson, CFP® and Big Al Clopine, CPA recap recent Brexit headlines and take a look at how the markets have reacted, in episode 43 of the YMYW podcast. Plus, is the US in a retirement crisis? If so, how can it be solved, and what can you do to achieve your financial independence? Original publish date July 2, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 02:17 - "If you think about the market, in one particular day it might go up, and the next day it could go down. So-called experts quote the same things…" 06:09 - "When markets go down, what you want to do is be more strategic. You want to look at tax-loss harvesting and rebalancing the overall portfolio. [It's a better time to do] Roth IRA conversions or distributions." 08:26 - "Achieving financial independence only comes from having a thoughtful and comprehensive financial plan. The sooner you create that plan, the sooner the independence will come." 19:39 - "When markets go down, people stop inve

The fiduciary rule change will bring some changes to the financial planning industry. In episode 42 of the YMYW podcast, find out what the new rule could mean for your savings, then learn about tax reduction strategies. Original publish date June 25, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 00:46 "If you're not familiar with a 529 plan, it's a college savings plan that you can invest after-tax dollars that will grow 100% tax-free if it's used for qualified education" 01:52 - "Other states actually offer extra benefits if you go to college in their state with their plan; California is not one of them" 07:03 - "Shouldn't all advisors offer advice in your (the client's) best interest?...That's the foundation of Pure Financial Advisors" 07:15 - "We're a Registered Investment Advisor, a fiduciary and fee-only. That means there's never a commission generated" 07:32 - "We're trying to eliminate a lot of the different conflicts in the industry" 12:43 - "Th

The markets are panicking over the Brexit vote. Original publish date June 25, 2016 (hour 1). In episode 41 of the YMYW podcast, learn what the news can mean for your investment portfolio. Note that content may be outdated as rules and regulations have changed.  00:00 - Intro 02:08 - "Important British trading partners like India and China indicated that they were worried that the exit would create regulatory and political volatility that could harm the economies of everyone involved" 07:07 - "It's complicated; there are a lot of treaties that have been set up between countries that have to be re-negotiated" 09:37 - "I know volatile times make people a little uneasy, but that's just part of being invested in the overall global economy" 14:00 - "We can't be ultra, ultra conservative with our money because we won't keep up with inflation" 20:46 - "I'm going to talk about the seven biggest financial challenges senior citizens are facing in retirement, according to the Motley Fool" 22:28 - "We're at historically

Financial expert Larry Swedroe joins Joe Anderson, CFP® and Big Al Clopine, CPA, on YMYW podcast episode 40 to discuss active versus passive investing, comparing past performance numbers to illustrate which investment strategy has a more reliable outcome. Original publish date June 18, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 - Intro 07:07 - "The fact of the matter is, the most successful investors understand that markets will go down and they have a strategy of what they're going to do when they go down" 08:16 - Start of Interview with Larry Swedroe 09:13 - "Let's go over real quickly this active versus passive debate" 09:36 - "He [Eugene Fama, Nobel Prize winner] defines 'active' as those who are engaged in individual stock selection and/or market timing" 12:13 - "Any decision to own any asset allocation that's different from the market is an active decision in terms of your strategy" 15:06 - "You have to be prepared to accept long periods and stay the co