RMD

Year-End Money Moves 2018

Year-End Money Moves 2018

2018 year-end financial planning is a lot different than in previous years, because it is the first full year after the implementation of the Tax Cuts and Jobs Act (TCJA). The good news is that for millions of Americans, the new code should make filing easier. That’s because nearly 90 percent of taxpayers are likely to claim the standard deduction this year, up from 70 percent last year.

Year-End Financial Planning Tips

December is upon us, which means I basically have your attention for about two more weeks max.

After that, let’s face it, we’re all checking out for the rest of 2018.

plan 2.jpg

So while I have you, and as the year comes to an end, it's a perfect time to review some year-end financial planning tips.

For such an occasion there's no better duo than Michael Goodman and Brenna McLoughlin from Wealthstream Advisors. And in the interest of full disclosure, not only is Michael a dear friend of mine, he's also my advisor.

We discussed a variety of financial planning topics to ponder before you shut down for the holidays, including:

  • Selling assets in your portfolio now versus waiting until next year: Losses offset gains that you have taken previously in the year; if you have more losses than gains, you can deduct up to $3,000 of losses against ordinary income.

  • Take Required Minimum Distributions: Generally, once you turn 70 1/2, you must begin withdrawing a specific amount of money from your retirement assets (there are some exceptions). The penalty for not taking your RMD is steep at 50 percent on the shortfall!

  • Consider a Qualified Charitable Distribution (QCD): One way to sidestep the taxation on your RMD is to make a Qualified Charitable Distribution, which allows you to gift directly from your IRA to a charity without having to include the distribution in your taxable income.

  • Making last minute 529 plan contributions: Money saved in these programs grows tax-free and withdrawals used to pay for college sidestep taxes, too. You can invest up to $15,000 in 2018 without incurring a federal gift tax and many states offer state tax deductions for the contributions.

  • Considering how tax changes could affect you: With all the changes to the tax code, there’s plenty of items to keep in mind before filing your 2018 returns. 

So before you completely shut it down and wrap up your 2018 finances, you’ll want to listen to this episode to make sure there’s nothing you’re forgetting.

Have a money question? Email us here.

We love feedback so please subscribe and leave us a rating or review in Apple Podcasts!

Connect with me at these places for all my content:

https://twitter.com/jillonmoney

https://www.facebook.com/JillonMoney

https://www.instagram.com/jillonmoney/

https://www.linkedin.com/in/jillonmoney/ 

http://www.stitcher.com/podcast/jill-... 

https://apple.co/2pmVi50

Roth IRA Q&A

Roth IRA Q&A

The Roth IRA turns twenty years old this year. The retirement vehicle was part of the Tax Relief Act of 1997 and it was seen as such a boon to savers, many believed that it would not survive. Two decades later, it is alive and well. As many Americans consider funding retirement plans this tax season, it’s a good opportunity to provide you with a Roth Q&A.

#261 Tax Prep Boot Camp with Ed Slott

JSminibrand1.png

Ed Slott CPA is a nationally recognized IRA expert, television personality and best-selling author who has dedicated his life to educating Americans on saving for retirement and the intricacies of IRAs.  He was named “The Best Source for IRA Advice” by The Wall Street Journal and is the author of numerous best-selling books. His web site www.IRAHelp.com. He started our conversation with an overview of what has changed for this year's tax filing season (not too much) and then explained why well-prepared taxpayers should not be afraid of an audit. (NOTE: Ed says that the key to the entire  tax preparation process is to keep flawless records and documentation throughout the year!)

  • Download the podcast on iTunes
  • Download the podcast on feedburner
  • Download this week's show (MP3)

Ed also focused on the need for retirees to shift gears in retirement. While there may be some lucrative opportunities, there are also challenges/minefields, like those thorny stealth taxes, which can trip us up.

The old favorites include the whopping 50 percent penalty for not taking your required minimum distribution (RMD) and not making estimated tax payments, but last year's change about IRA rollovers is also causing a new headache among some retirees.

As much as everyone complains about paying taxes, Ed says that tax rates are still the lowest they have been in years. That means that now could be a good time to move funds from tax-deferred vehicles, like 401 (k)s and IRAs into tax free Roth IRAs. Ed also noted that the very best retirement strategy is to work as long as you can. Extra income can prevent you from dipping into your nest egg; with earned income, you can continue to make Roth and spousal Roth IRA contributions (though once you turn 70 1/2, you can NOT make traditional IRA contributions); you may be able to delay your RMDs from your company-sponsored retirement plan; and most importantly, working longer will help you combat the reality of longevity!

Thanks to everyone who participated this week, especially Mark, the Best Producer in the World and the worst LinkedIn User. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

#229 Flying High with Advisor Don Cloud

JSminibrand1.png

Don Cloud, president and founder of Cloud Financial, began his career in financial services industry in the 1990s with a mission to educate and inspire individuals to play an active role in their personal finances. Don discussed what to do if you’re facing an unexpected early retirement; how he manages clients that don't act in their own best interests; and the power of diversification…and he has an awesome accent too!

  • Download the podcast on iTunes
  • Download the podcast on feedburner
  • Download this week's show (MP3)

Can we make dreams come true? That's what Jeannie wants to know! She wants to spend the first few years of retirement in Paris before returning to the US. Can we help make her dream a reality?

The housing market may be recovering, but not enough to help Jeff, who needs advice about selling a house that is underwater. Alex has a question about whether or not to sell a rental property and Chet wants to know about required distributions.

Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

#228 Preparing for Retirement

JSminibrand1.png

Sure it's summer, but that doesn't mean you can't spend a little of your time at the beach or the mountains contemplating your retirement, right? In fact, your time off might encourage you to think a little more seriously about how you might spend those non-working years. In addition to dreaming, you'll have to think ahead and get your portfolio in shape for the transition.

  • Download the podcast on iTunes
  • Download the podcast on feedburner
  • Download this week's show (MP3)

Paul is 70 and asked about his portfolio as well as his Required Minimum Distribution, Angela from Phoenix is preparing her investments for retirement and Sybil has been advised to combine several of her TSA accounts - should she? Scott MI is just 45, but he is "retiring" from a union job--what should he do with his pension?

Our younger listeners are also thinking ahead to retirement. Jack and his wife are in great shape and want to know what to know how to continue to maximize their cash flow; Amey wants to concentrate on accumulation for the next five years; and Christine from Perth, Australia has about $5-$7K each month that she and her husband are saving for a new home in CA. Should they direct the money into a money market account or should they pay down an existing mortgage?

Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

#210 Retirement Planning for Women

JSminibrand1.png

In honor of the recently-celebrated International Women's Day, guest Jennifer Landon, founder and president of Journey Financial Services, says that there are specific - and distinct - issues that women need to consider when planning for retirement. She urges them to consider "hybrid" retirement and to have contingency plans.

  • Download the podcast on iTunes
  • Download the podcast on feedburner
  • Download this week's show (MP3)

Shan is just getting started on his financial journey and it is the perfect time for him to take control! Poor Joe was the victim of tax identity fraud. Check out this post, if you want more information about "How to Protect Yourself Against Identity Theft" or go to FTC.gov .

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

#209 Investment Advice, Retirement Investing

JSminibrand1.png

Bruce kicked off the show with a discussion about how to manage his "fun money" account in conjunction with his advisor-directed funds. One idea is to let the pro do what he or she does best and then you can use the secondary account to fill in the asset allocation gaps.

  • Download the podcast on iTunes
  • Download the podcast on feedburner
  • Download this week's show (MP3)

Cheryl asked about whether her fee for investment advice was reasonable; Wayne is trying to manage his retirement assets after recently getting married and both Sandra and Mike are juggling competing financial goals after the birth of their children.

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE