Phil's Tax Hacks

Ep 24: Managing Cash & Debt in Retirement

Do you believe you need to be completely debt free to retire successfully? Or are you comfortable carrying some balances beyond your working years? Having a strategy for managing your debt along with the amount of cash you possess are two key pieces to a successful retirement.
 
Show notes and additional resources: https://philstaxhacks.com/podcast/ep-24-managing-cash-debt-in-retirement/ 
 
Today's rundown: 
0:42 – It’s that time of the year for brutal weather.
3:01 – We’re talking about cash and debt and how they can get us into a retirement predicament.   
3:30 – We all love cash but is too much of it a bad thing?
4:19 – What are the best uses for cash? Phil uses a three bucket structure.
5:57 – With cash you give up growth because inflation.
6:56 – How much cash to you recommend someone having?
8:11 – What about people that are comfortable having a lot of cash?
9:35 – How many months should your emergency fund cover?
12:51 – Do you need to be debt free when you retire?
16:15 – Is debt management a part of the plan when we work with clients?
19:58 – Mailbag Question: I have about $50K in cash value in an old life insurance policy. I don’t really need the insurance anymore. Should I cash it out and invest the money some place else?

Ep 23: Beware of Bias in Financial Media

How closely do you pay attention to the sources that provide you with information about investing? Just like other outlets of media, financial news is not immune from bias. Let’s discuss the landscape today and how you can protect yourself from being misled by incorrect information.  
 
Show notes and additional resources: https://philstaxhacks.com/podcast/ep-23-beware-of-bias-in-financial-media/ 
 
Today's rundown: 
1:17 – We’re well into 2020 at this point but make sure you’re writing out the full year to prevent scams.
1:58 – The Stretch IRA has been eliminated as part of the SECURE Act. How important is this?
6:30 – Let’s talk about our main topic: financial media bias.
7:19 – Today it seems like you have to look at multiple sources of information to get the complete picture.
8:40 – Financial news is no exception. There often seems to be a motive or an angle to a headline.
9:32 – Be aware of paid placement material.
11:42 – Every advisor has their own opinion and investors should expect that.
12:38 – It also could be good advice but maybe it’s intended from someone else and not applicable to you.
14:24 – Another thing to keep in mind is someone providing the info just might not be up-to-date on a specific product.  
18:14 – Mailbag Question: I told myself that once I hit $1 million in my portfolio, I’d move that money to cash. But now that I’m there, I’m wondering if I can get to $1.2 million first. What do you think?

Ep 22: Are These Excuses Keeping Your From Retirement?

Have you ever heard someone tell you they don’t want to retire? Sometimes they might mean it, but other times it’s just a defense mechanism for the fact that they don’t feel prepared for retirement. Let’s take a look at some of the most common excuses and what they might actually mean.  
 
Show Notes and Additional Resources: https://philstaxhacks.com/podcast/ep-22-are-these-excuses-keeping-your-from-retirement/ 
 
Today's Rundown: 
1:19 – Happy new year! Should be an interesting year.
2:31 – Let’s talk about excuses that may keep us from retiring.
3:49 – Excuse: ‘I love my career.’
6:08 – Excuse: ‘I would be bored if I retired.’
11:17 – Excuse: ‘We don’t have enough money to retire.’
13:29 – Excuse: ‘I don’t have enough confidence in my plan to walk away from work.’
15:55 – Planning for retirement is like planning a road trip.
19:25 – Mailbag Question: My husband’s military pension has been a very nice benefit but I’ll no longer get a penny of that after he passes away. This was a mistake in retrospect but what can we do moving forward?

Ep 21: The Ins and Outs of Mutual Funds

Mutual Funds have long been a very popular way for people to invest, but is that landscape changing? Let’s explore this investment option, explain some key terminology, and determine what the future might hold for mutual funds.
 
Show Notes and Additional Resources: https://philstaxhacks.com/podcast/ep-21-the-ins-and-outs-of-mutual-funds/ 
 
Today's Rundown: 
1:19 – Getting ready for the holidays and the new year.  
2:49 – In the News: President Trump recently made Florida his permanent residence. Do you see that often from your clients in Michigan?
5:26 – Mutual funds have been a popular investment option but is that trend changing?
6:08 – What percentage of your clients own mutual funds when they first come to see you?
6:53 – Explain ‘expense rations’ for us.
8:29 – What does the term ‘loaded’ mean?
11:18 – What tax considerations do you have to keep in mind for mutual funds?
12:45 – Do you feel like mutual funds are going away?
15:33 – Mailbag Question: I’ll be retiring in exactly one year. What’s on the list of things I need to do before I walk away?

Ep 20: 5 Biggest Social Security Misunderstandings

Myths, rumors, and misunderstandings are pervasive in the world of Social Security. How do you know what to believe and what to ignore? On this show, we’ll clear up the top 5 misunderstandings about Social Security.
 
Show Notes: https://philstaxhacks.com/podcast/ep-20-5-biggest-social-security-misunderstandings/ 
 
Today's Rundown: 
0:52 – Is Phil ready for Christmas?
2:26 – On to our main topic on Social Security Misunderstandings
2:39 – No. 1: Social Security is going broke
6:42 – No. 2 and 3: Starting early is best. Waiting as long as possible is your best strategy.
8:53 – No. 4: The folks at the SSA office can help you choose the best claiming strategy or yourself.
10:42 – No. 5: You don’t have to pay taxes on Social Security.  
12:36 – Mailbag question: I’m selling one of my rental properties soon and don’t have plans to buy another one. What’s the best thing to do with the money from that sale?
14:12 – Mailbag question: My parents bought a whole life insurance policy when she was born and we’ve been paying for it since they passed away. Now she’s about to graduate college. Should we keep paying for this because it’s not cheap?

Ep 19: Are You Making These Critical Estate Planning Errors?

Not everyone wants to leave behind a financial legacy, but for those that do, it’s important to eliminate some of the common estate planning mistakes. Today we’ll identify five of those and explain what you need to do to keep your plan on track.
 
Show Notes: https://philstaxhacks.com/podcast/ep-19-are-you-making-these-critical-estate-planning-errors/ 
 
Today's Rundown: 
 
 
0:43 – Excited for the holidays and getting some time with family.
1:45 – In the News: Any market effects from the impeachment hearings?
3:38 – Moving into our main topic this week and that’s estate planning mistakes.
4:00 – Failing to plan for expenses that you can expect to happen, like healthcare.  
5:34 – When is the last time you’ve updated your beneficiary designations?
8:02 – Failing to take steps to avoid conflict for your heirs and family.
10:17 – We had a family that held an auction with fake money that family could bid on items.
11:11 – Don’t make the mistake of transferring real estate while living rather than at death.
13:12 – Don’t forget to consider the tax implications of your estate.  

Ep 18: Finding Silver Linings in Unfortunate Financial Situations

Life never goes as planned but how you react to each situation determines how your affected. Let’s look at a handful of negative scenarios that retirees and pre-retirees face and find the silver lining that can help you make the best of a bad situation.  
 
Show Notes: https://philstaxhacks.com/podcast/ep-18-finding-silver-linings-in-unfortunate-financial-situations/ 
 
On This Episode: 
1:21 – Getting ready for the holiday season.
2:47 – In the news: A baggage handler in Nevada just got a cease and desist letter from the SEC for pretending to be an investment advisor.
4:19 – Moving into our main topic this week: finding silver linings in difficult situations.
5:18 – Situation: Company is forcing you into early retirement. How can we turn this into a positive?
7:41 – Situation: You find out the life insurance premiums are going up.
8:42 – Situation: The company is doing away with pensions and giving you a lump sum instead.
10:07 – Situation: Your company is being bought out and you have to adjust to management changes.
12:47 – Mailbag question: I’m in my mid-50s and don’t have much saved toward retirement. I own my own business and I’m having a huge year. I’ll have some profits to invest. Can you give me some ideas where to start?

Ep 17: 5 Ways We Sabotage Our Own Retirement

With so many aspects of the financial world out of your control, why would you sabotage your portfolio by not controlling what you can? Let’s discuss the ways in which people hurt their own financial health so you can keep from making the same mistakes.
 
Show Notes: https://philstaxhacks.com/podcast/ep-17-5-ways-we-sabotage-our-own-retirement/ 
 
On This Episode: 
1:36 – In the news: Social Security Administration announced retirees will get a 1.6% cost of living increase. How much of a difference will this make?
3:04 – Sometimes that increase gets offset by Medicare costs.  
3:55 – Turning to our main topic today: sabotaging our own retirement.  
4:50 – Obsessing over the ups and downs of the market.  
7:51 – Starting Social Security at the wrong time can cost you.
10:23 – Ignoring the potential for a need to use nursing home care.   
11:59 – You just assume that you’ll still love your job as much in 10 years as you do now.
13:15 – Underestimating how much income you’ll actually need in retirement.
16:12 – Mailbag Question: Are there really no tax implications to rolling over my 401k?

Ep 16: How To Have Those Awkward Financial Conversations

Your financial plan is more than just the numbers. Having these sometimes awkward conversations now could save you a lot of trouble later on and provide clarity in a tough situation.
 
Show Notes: https://philstaxhacks.com/podcast/ep-16-how-to-have-those-awkward-financial-conversations/ 
 
Today's Rundown: 
1:36 - Quote: “Time is more valuable than money. You can get more money, but you can’t get more time.” - Jim Rohn
4:58 - How do you handle the financial plan when the first spouse passes away?
7:50 - What will you do if someone needs long-term care?
11:01 - What if you have to work longer than you wanted to?
15:12 - What kind of legacy do you want to leave (and do you agree)?
18:42 - What do you do if you feel like you’ve got the wrong financial advisor?

Ep 15: Retirement Constants That Will Affect Everyone

Retirement planning is all about finding the right mix of investments that fit your needs and your situation. There’s no such thing as a ‘one-size-fits-all’ approach, but there are factors that will impact every single on of us in retirement. Understanding these constants and planning for them will put your portfolio in a great position.
On this episode: 
0:46 – We’re not happy about the officiating in the Lions’ game.
2:37 – What’s Phil’s opinion on how to handle health insurance costs?
6:02 – Here’s our main topic for today’s show: retirement constants.
7:16 – Retirement constant: Inflation
8:42 – How does Phil plan for inflation with his clients?
11:12 – Retirement constant: Taxes
12:22 – Ronald Reagan used to make just two movies a year because of tax brackets.
13:04 – Retirement constant: Healthcare
13:23 – Retirement constant: Fees and Commissions
15:56 – Mailbag question: My employer is going to stop matching 401k contributions to offset rising healthcare costs. Without the match, should I continue contributing to my 401k or look at other options?
Get the full show notes and additional resources here: https://philstaxhacks.com/podcast/ep-15-retirement-constants-that-will-affect-everyone/