investment strategy

Will the Pandemic Rob Your Retirement? 4 Things to Check Now

The Bird’s Eye View:

The fear for many right now is that once the pandemic finally passes, the financial impact will knock them off track for the future. If you’re worried that the coronavirus could rob you of your retirement, there are four areas of your finances that you can check right now. Find out what they are and why they’re good indicators of where you’re headed.

 

Your Guide:

With the coronavirus still creating many economic and financial issues across the country, pre-retirees along with retirees are concerned about their future. How long can they withstand the volatility before it robs them of their retirement?

Our hope is that you already had a solid plan in place when the year started and haven’t spent much time worrying about the state of your finances, but many people did not. And then there are others that just aren’t too sure about where they stand.

On this episode of Your Retirement Elevated Podcast, Scott Dougan will provide you with a list of four items that you can check on right now that will help you determine whether you’re still on track or whether you need to make adjustments.

No. 1 – Check in on your expenses.

How well are you managing you money during the pandemic? You should have a budget in place already but you should check to see if you’re sticking to it. You might even find during this time that you can cut certain expenses out of your life. Plus, look ahead to see if there are any expenses coming so you can allocate that money now.

No. 2 – Check your assets.

These assets give you the ability to generate income and that’s essential to live the way you choose. Take inventory of what you have.

No. 3 – Check your risk tolerance.

Is your portfolio built to withstand the ups and the downs? You might have thought your risk tolerance was higher than you realized you’re comfortable with, but check to see if you have more risk than you actually believe.

No. 4 – Check the income gap.

Finally, take a look at what your expenses are compared to your guaranteed income sources. If there’s a gap, you need to make changes.

We’ll run through all of these in more detail on the show but use this as an opportunity to look through your finances and find out exactly where you stand.

If you’d like to check out the PDF we’ve created, click here. 

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

[0:53] – Will a recession rob your retirement?

[2:07] – Most of the folks we work with still have the same plan now that they did before the pandemic.

[3:29] – No. 1 – Check in on your expenses.

[6:26] – No. 2 – Check your assets.

[9:26] – No. 3 – Check your risk tolerance. Here’s what that means.

[14:18] – No. 4 – Check the income gap.

[18:12] – How does Scott use this checklist with clients?

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

New Rollover Rules for 2020 RMDs

The Bird’s Eye View:

With so much news to process these last few months, financial updates might not be at the top of your list. But part of the recent relief efforts included new rollover rolls that impact people that need to take RMDs. Find out what it all means and whether this impacts you.

 

Your Guide:

When the government rolled out the CARES Act in March, the legislation aimed at providing economic relief and aid for Americans and it did so in many different forms.

The stimulus received most of the headlines along with the PPP loans that were provided to small businesses. But investors need to pay attention to the new required minimum distribution rules that were included in this because it might impact your financial plans for 2020. At the time, it waived RMDs for the remainder of the year.

What about people that made their withdrawals before that time?

In June, the IRS passed new rollover rules that gave people the opportunity to put that money back into their retirement account if they choose to. It’s a nice option to present to people, but should you take advantage of these new rules?

On this episode of Your Retirement Elevated, Scott will explain the new rules that were put into place last month and what they mean to you. We want to make sure you know what the IRS wanted to accomplish but also whether it impacts your planning process directly.

If you haven’t sat down with your trusted advisor yet to discuss the changes in 2020, make sure you prioritize that to give yourself enough time to make any necessary adjustments. Feel free to contact us if you want to learn more and have us look over your portfolio.

Let’s get the show started. Feel free to use the timestamps below by clicking on them to skip around to specific topics. 

[0:52] – How’s everyone doing around the office?

[2:01] – With change comes opportunity.

[5:18] – New rollover rolls were introduced recently.

[6:18] – Who does this apply to?

[6:43] – Provisions from the CARES Act

[9:31] – Just because you can put money back, should you?

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Best Intentions But Bad Financial Advice

The Bird’s Eye View:

Maybe even more so now than ever, we are looking for more and more financial guidance. A lot of times we turn to lots of different sources to find that information. And while these sources might have the best intentions, that doesn’t mean that the advice is always going to fit you. Let’s look at some examples and explore the reasons why we have to be very careful from whom we’re taking this important guidance.

 

Your Guide:

Whether you work with an advisor or not, you likely turn to people close to you to get their opinion on a subject or to get advice on a financial strategy.

Often times we look to these sources because we believe we trust that they’ll give us their best information. But even if these sources have the best intentions, it doesn’t always result in good advice. In fact, sometimes the guidance you receive is completely wrong for what you need.

So this episode of Your Retirement Elevated Podcast, Scott is going to take us through four common places we turn to get advice and help us understand why things might go wrong. We chose these four because they are the sources people that are both convenient and trusted.

Here’s what we’ll get into on the show:

  • Family
  • Friends
  • Your CPA
  • Financial Experts in the Media

Now that’s not to say that all of these people have bad advice, but how well do they truly know your situation and how knowledgable are they about the topics they discuss with you?

We believe there’s some great information in this episode that we hope will help you out next time you do research, but let’s leave you with a couple thoughts. First, no matter where you turn, make sure you ultimately rely on a financial advisor to help you truly determine what is going to be in your best interest. There are so many pieces to a financial plan and your advisor will know better than anyone which actions to take.

The second is make sure you’re separating information from entertainment. It’s easy to get caught up in what you hear and the confidence in which it’s delivered but is it actually providing you valuable information or just a method for ratings?

Let’s get the show started. Feel free to use the timestamps below by clicking on them to skip around to specific topics. 

[1:17] – First day back in the office as a team since the pandemic began. 

[1:52] – Here’s what we’re talking about today.

[2:45] – The first source: Family

[5:32] A great lesson Scott learned from a mentor early in his career.

[9:21] – The second source: Friends

[10:51] – The third source: CPAs

[16:16] – The fourth source: Financial experts in the media.

[19:45] – Here’s the bottomline on getting advice.

[21:30] – Separating experts from entertainers.

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Tax Planning Opportunities with Special Guest David McKnight

The Bird’s Eye View:

Since we aren’t able to bring David McKnight to Kansas City for an in-person appearance, we decided to do the next best thing and bring him on the podcast. Join us as the author and tax planning expert gives us his perspective of what we’re experiencing with a turbulent economy and what opportunities investors have to move closer to a zero percent tax bracket.

 

Your Guide:

We’ve been excited for a while to bring David McKnight back to Kansas City to spend some time with people who want tax-planning guidance. Unfortunately, that plan had to be delayed due to the coronavirus health crisis.

But this is such an important time financially. With taxes at historically-low levels and debt rising rapidly, we thought it would be very valuable to hear from McKnight, even in a scaled-down capacity. He was gracious enough to accept an invitation onto the podcast so we could discuss a number of different tax-planning topics.

If you haven’t had the opportunity to hear from McKnight or read any of his books, go visit his website here. We reference one of his books, The Power of Zero, all the time with clients and even have copies available if you’re interested. All you have to do is reach out to our office.

And that goal of moving into the zero percent tax bracket has never been more accessible. The current tax plan runs to 2026 but the question is what happens after that? Many people assume and expect rates to rise, especially on the heels of multiple stimulus packages being rolled out to help Americans with this financial crisis. Just take a look at the US Debt Clock. That debt total is about to cross $25 trillion when this podcast was released and continues to climb higher and higher.

McKnight believes this is a tremendous opportunity for investors to move money into tax-free accounts and move closer to that goal of zero. Keep in mind that you might no be able to get all of your money into that tax bracket, but it’s important to try because there’s a jump to the next bracket. And that might be even higher by the time your taxes are due.

So he’ll share his perspective on what we’re witnessing right now and what that means for you. What tax-planning options are available right now and why is this such a crucial time? He’ll take us through that and then share some final words of wisdom.

Make sure to keep an eye on McKnight’s website because his new book will be published in November of this year. Don’t forget to ask us about it either because we’ll likely have more copies on hand. And stay tuned for details on when we can expect the author to visit again.

Let’s get the show started. Feel free to use the timestamps below by clicking on them to skip around to specific topics. 

[1:02] – Special guest David McKnight joins us on the show today.

[1:21] – Some background on David.

[2:22] – What has the coronavirus done to the economy and how will it effect tax rates in the future?

[3:36] – As the national deficit increases, politicians have two options.

[5:15] – The state of the economy now that the health crisis has hit.

[6:55] – Our job as advisors is to navigate the current circumstances. What options or opportunities are available now?

[11:16] – How we’re working with clients right now.

[12:12] – If you can’t get to the zero tax bracket, what’s the next best thing?

[13:50] – Last words of wisdom from David.

[16:07] – If you want to get a copy of the book, here’s what we’re doing for listeners.

[17:18] – David’s new book is coming out earlier. 

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact