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Mailbag…Ask Andy Anything (Facebook Live, November 24 2021)

Hello, everyone. 8 PM Eastern on a Wednesday which means it is taxes and retirement live. I am Andy Panko, owner of Tenant Financial and moderator slash admin of the Facebook group, Taxes and Retirement which you all obviously are part of since you're watching me now. Thank you for joining. Um tonight is another fun mailbag edition which is open Q&A. Feel free to ask me anything. Um typically about financial planning, tax planning, retirement planning, but could be whatever. I am more or less an open book, I like to think. We do have one question that was sent in ahead of time. So, I will get to that but otherwise, there's nothing on the agenda so far tonight. No precinct questions. So, feel free to plop questions in the comments. I'm just looking here. Okay, yes. Happy Thanksgiving to you too.

Whomever this is. So, I see comments are working. Mark, happy Thanksgiving. Thank you for for joining. and there's a question here, okay? So, yeah. So, so dump your questions in and as always with these, normally, you know, I encourage folks to feel free to chime in and reply to other people's comments or questions but for for tonight's sake, for these mailbag things, I just ask that you don't reply to other people's questions even if you know the answer simply because it I I with my streaming software, I can't see who replies to what.

I see every comment or reply. It it they just stack on top of one another so I can't tell what's attached to what so it makes it a little clunky for me to figure out Someone's already you know, addressed or answered the question. So, anyway, let Rip with your questions but please refrain from answering other people's questions if that's okay. Thank you. Um quick update for those of you who care. I feel like maybe a lot of time to fill tonight. So, I'll kind of ramble a bit. Uh weight loss update. So, I forgot last week to mention where I was at as as you know, I was away for a few weeks, one week on vacation, one week on a at a conference right after that. Both of those weeks involved complete disregard for weight loss. I did go running a few times in each place but otherwise, ate much more than I should, ate much worse than I should, drank more than I should have.

So, no surprise. I was expecting to gain some weight. All said and done. Uh I was this Monday. I was 169 and a half which is two pounds higher than what I was 4 weeks prior which is kind of what I expected. I I ate and drank like a like a sailor on leave for the for those two weeks. So, I was expecting to gain some weight which I did and now, parlay this into Thanksgiving. I'll probably take down three quarters or maybe even a whole pumpkin pie on top of some sides So, we'll see but otherwise, you know, barring tomorrow and excessive eating more or less back on track with kind of eating well and and working out well.

So, things are are getting back to where they should be and just to recap, I started at one 1. I don't remember how many weeks ago it was. I was averaging about a pound and a quarter of loss per week which is which is my goal and as I mentioned, you know, few weeks ago, I got derailed from from two weeks away. Now, slowly getting back to it. So, so all is good for those of you who care, for those of you that don't, sorry for that.

Um dad for the evening. Oh, I do have one that's Quasi Thanksgiving related. Uh what do you call a herd of giggling cows? Laughing stuck. The earth is 70% uncarbonated water. Therefore, the earth is flat. You get it? Know what I'm saying? So, maybe the flat earther is running something. Maybe they were just referencing the fact that the water does not have fizzy bubbles in it and finally, this is the one that's sort of Thanksgivingish. Something great but it at least mentions a Thanksgiving food food commonly eaten at Thanksgiving. Uh what's the difference between a sweet potato fresh out of the oven and a pig thrown off a balcony? Anyone? Anyone? Bueller? One is a yam and the other is a yated ham. I'll be honest, I didn't know what yeeted meant.

Y E T E D Uh so so to yeet means to like hurl or throw something with with force and velocity. So, yielded ham means throwing a pig off a balcony with some force and velocity. So, that's that. That's my dad jokes and before we really get rolling, let me just hit you all with the disclaimer if I can find it. Here we go. This video is only General Explanations Education. It is most definitely not specific tax, legal, or investment advice before considering acting on anything you see in this video. First, consult with your tax legal or investment advisor, which I'm not. I'm just some guy here on the Wednesday before Thanksgiving answering your questions. Hopefully getting them right. Maybe getting them wrong. But I'll try my best to get them right to the best of my knowledge and abilities.

But again I'm not your adviser. I'm just some dude on Facebook. If I am your adviser then I wouldn't be answering your questions here. You know we'd be having our conversations offline and whatever. But for purposes tonight I'm not your tax legal investment adviser. Alrighty. Uh comments. Comments. Comments. I see we got some more questions here. Cool. Thank you all. Um Mark Troutman did ask the tax one of the 2022 tax info getting updated. Sent that out when it was and also farted along the 2022 summary tax sheet in the group the other day. There's another one as I mentioned that comes out from the College for Financial Planning which is not yet available but I will share that when that's out. That that one I actually like a little better. Than the one I already shared. I don't make that one. I just I buy it from some place. I slap my label on it and send it out. I have no control. It's actually in that summary that I shared with you all the other day.

But hopefully you enjoy it. None Okay. Questions. First question is, there was, from Gale. Gail asks, can you talk a little bit about IBONs and your thoughts? My thoughts about Ibons, my thoughts in general. No, I I assume about IBons. Why are we hearing so much about them right now? Great question, Gail. Um So, they they've been discussed in a group a few times and I did share, I don't know, couple weeks ago, a summary that I that I wrote and sent to my clients.

I I'd shared in the group as well. Just kind of explaining my thoughts about iBon. So, I'll try to try to summarize that succinctly. So, basically, in Ibond is a it's kind of more so like a savings account than a bond per se but it is a security you buy direct from the Treasury, United States Treasury. You can only buy em through Treasury Direct.gov right from the Treasury website or you can buy some with your refund and your tax return. If you have a refund on your tax return but outside of that, you can only buy em direct through Treasury Direct.gov.

You cannot buy them through a bank, through a brokerage, whatever. It has to be a treasury website. You can buy per taxpayer up to $10, 000 per year. So, if you're married, that's twenty thousand. Um if you do have a a tax return refund that you want to use to buy some iBons, you can take up to $5, 000 of tax return refund and buy more eye bonds that way. So, I have most married couple can get 10000 per person. So, that's 20 plus maybe another for your tax returns. That's twenty-five. Now, here's a little more complicated.

If you have a trust, specifically, that trust has a different tax return, a different taxpayer ID than you, like a like a irrevocable trust. That trust can also buy up to $10, 000 of iBons per calendar year. So, you buy it and then, so, what's the magic? Why is everyone talking about it? Well, the interest rate they pay changes every six months and that rate is reset based on actual, realized inflation over the prior six months six months, it takes a snapshot of what the change in inflation was and and that's the interest that it pays for the six months. Well, since inflation has has spiked in the last year, specifically in the last like six months, it it really, really, you know, went up. The interest rate is currently really high on iBons. Specifically, for any iBon you buy between now and May first 2022. For the first six months, you hold that bond, you will get an annualized, guaranteed interest rate of seven point 12 percent.

Guaranteed. No risk of loss. You put ten thousand in. You will get an annual rate of 7. 12 over six months. So, you know, over six months, it's it's actually 3. 56% of interest that you're in over six months. Again, annual rate just simply means take this, you know, taken what you would get in a year, divide it by half, that's the amount you actually earn on your first six months. The second six months, you have this bond, we don't yet know what the interest rate will be.

We have to wait until May, first, twenty twenty-two When we realize what inflation there is between now through then, the treasury will then set what the six-month interest rate is at that point and that interest rate is what's what's going to apply on the subsequent 6 months of your bond. So, anyway, so every six months, your your interest rate keeps resetting to whatever inflation is at the time. If inflation stays high or keeps going up, these things are going to keep paying pretty high interest and guaranteed interest.

There's there's no variability, no risk of loss. If and when inflation goes down, the interest rate is going to come back down. So, so that's kind of eye bonds in in nutshell. Now, there's some caveats to know when you make a purchase, you cannot redeem it at all within the first 12 months. It's completely locked up. There's zero option to to get out of it in the first 12 months. After the first year but before the five years is up from when you bought it, you can redeem it but there's a relatively small penalty. The penalty is the the most recent three months worth of interest that you recruit. You have to give that up.

If you sell out of this bond within the first five years, between one year and five years. After five After five years, completely unrestricted ability to redeem. There's no penalty. There's no whatever. Um these bonds throw off interest for, I think it's 30 years. Join a blank. It's either 20 or 30 years. So, you can hold these bonds for 20 or 30 years. They'll keep paying you whatever this inflation-based interest is every six months. After the 20 or 30-year period, they stop accruing interest. At that point, it's just done. There's kind of no point in keeping it. Now, honestly, I don't know if the Treasury Force redeems them on you and just like, no, gives you back your money or if they just sit there doing nothing until you consciously request it. I I'm not entirely sure honestly. So, so, that, that's That's the big buzz about iBons. Um compared to high-yield savings accounts or checking, you know, checking accounts pay interest of literally point zero one percent Typically high-yield savings accounts pay about half percent, maybe a little more.

If you're lucky and you're a member of a of a credit union or something that has a high rate, maybe you're getting, you know, over a percent but for the most part, cash at traditional bank accounts is earning nothing. Now, let me just share with you the history of iBond rates here we go. So again, every six months, they they reset. It's every May 1st and November 1st, they reset based on the actual realized inflation, you know, for each six-month rolling period. Um so, on November 1st, 2021, the six-month rate is 3. 56. So here I and this is right off the Treasury Direct website.

These columns A and B. Here, I just simply took the six-month rate and doubled it just so you all can can look at this on the annual rate because most interest rates are quoted on like an annualized basis. So, seven point 12% is the guaranteed rate of interest you'll earn over, you know, annual interest, you'll earn over six months.

That's high. That's really high. Uh but again, it changes every six months. Who knows what it's going to be after that? You can't redeem at all in the first year. You can only put in $10, 000 per taxpayer plus a little more in a tax return. So, it's not like you can take, you know, $200, 000 of cash that you have sitting in a checking account and swing it on to I bonds. You you just you just can't. So, while the interest rate is really high on these, there's there's kind of like limited value and limited use cases for where they make a lot of sense. Uh if you don't already have a lot of eye bonds, is it worth it now to start piling in to the tune of 10000 per year? I don't know. It's not going to hurt. I don't think but you gotta be careful again of the lack of redemptions in the first year but you're not going to mass a fortune starting to buy eye bonds now because it's going to take you forever to to to keep buying in, you know, ten grand per year per person to get a really big amount of eye bonds but anyway, just just so you can see quickly and and I'll wrap it up here.

So, as of November 1st, the annualized rate was 7. 12 guaranteed. Six months prior is three point five four, one point six eight, 106 202 140 So you can see. So, interest rates have been, you know, for the last sample of years, fairly high, you know, higher than savings account. savings account interest rates have been well under a percent for a while. Um whereas I bonds have been, you know, two ish, maybe a little more. Uh you know, it's flat 2016. It was actually negative in 2015. Now, fun fact, eye bonds will never pay you negative interest even if the actual inflation is negative, meaning deflation, the rate you'll earn will never be less than zero.

So you cannot lose money in these in these I bonds So, anyway, so so the interest rates have been higher than cash. I never thought they were that compelling enough to to tell people, yeah, you know, stop putting money in savings, put in eye bonds, just simply again, because of the restrictions around how much you can buy in the redemption periods, I was like, yeah, for for, you know, for that one or 2 percent, it's not really worth it but now, Shazam, when Guaranteed Interest is 7%, it's like, yeah, I'm, I, I start to notice now and and I feel obligated to tell clients, it's maybe something worth looking to.

Again, it's not going to change your life because you can't put a lot of money into it but at this level I'd be remiss if I did not, you know, point this out to people like, hey, this is a lot of interest. Alright, so that's IBons, Gail. Hopefully, that answered the question. Let me stop the screen share. Um and I got new lights over me. It's a little more washed out and white and future than I was hoping. Uh there there's two big fluorescent overhead fixtures and I didn't realize how the one over me had two bulbs out.

That was kind of dim. So, I went to Home Depot, got some new ones and I put em in. It's like, wow, these are really, you know, bluish and washed out whereas the other light I have is a little more warm and and orangeish. So, I may go try to find from Bobs because I'm already pretty pasty and washed out as it is. I don't I don't need this. Making me look transparent. Alright, let's questions. What do we got here? Craig Root, in preparation for moving, we are selling everything in the basement and barn through online platforms. They have contacted us saying a tax form will be generated.

This is old stuff that we are selling for much less than we paid years ago. We have no receipts. I'm sure we will break the $600 barrier next year. How do we prove we didn't buy this at a yard sale and sell out for a profit as many people are doing? Oh, that's a good question. So, technically, anything you sell is supposed to be reported to the extent you have a gain on it like even I don't know. Yeah. Why am I drawing a blank? You buy a refrigerator five years ago and you and you sell it today. If you have a gain on it, you're supposed to pay tax on it. Now, realistically speaking, nobody does. So, let's assume you bought a used refrigerator a few years ago for a hundred bucks. Someone's unloading it for for dirt cheap. You turn around, you sell it today on Craigslist for 300 bucks. Um you made $2 hundred dollars. You're supposed to report that to the IRS and practice, nobody does. I'm not saying it's right. I'm just saying nobody does. Um because there's no real paper trail especially if you did it as a cash sale through text or whatever.

It's not like the person you sold it to issued you a 1099 But now and I'm not that familiar with this but I did read some some quick headlines that like Etsy and eBay are going to start if they didn't already start issuing 1099s to report people's sales through those platforms. I guess this is what you're getting at Craig. So now how do you prove that the proceeds for what you sold as reported to the IRS on the 109-9s. It sounds like these places will be sending. How do you prove that wasn't more than what you paid for it and that you don't have reportable taxable gains. Man, I don't know. Um I'm going to say the honor system. I mean, realistically speaking, if if you sold, you know, an old desk for fifty bucks. Um and he sold a whole bunch of stuff that was like $1, 000 in total and you get this ten ninety-nine saying you had a thousand dollar in proceeds. I honestly don't know what the form going to look like if any on the tax return, it may just be on our system for you to detail yourself, what you sold, and what the what the basis, what the cost was.

So, I don't know. Um realistically, I don't I I doubt the IRS is going to give people trouble over this if it's only, you know, a thousand bucks, few hundred bucks or whatever. If you, if you have tens of thousands of dollars of reported sales, then, it's probably an issue that then you would want receipts or some sort of substantiated documented However, you can cobble it together of what your original cost was but my guess is for a few 1hundred, a thousand bucks, especially if it's sporadic, you know, every every year or so, you're selling some stuff. I doubt you're going to raise a flag. Unless you're at higher audit risk for something else, I don't think this in and of itself, again, unless it's a lot of transaction, you know, a lot of dollars. I don't think this interview itself will be likely to trigger audits for folks but if you're already high audit risk, self-employed, you know lots of other deductions or you know, what are other audit risk things or you fail to report some things that the IRS gets 10 ninety-nine for, you know, cross all your Ts.all, your Is to try to limit your your audit risk but otherwise, you should be okay.

Uh if they do come asking, just just be honest, be like, I don't know. This is a bunch of random stuff we had from decades ago. I I don't know what we got it for but guarantee now, it's worth less than it was then. Um that's the best I can come up with. Good question, Craig. Sorry, I didn't have a better answer. Mario Sitman, rule of thumb on when to stop collision and or comprehensive coverages on auto insurance. I don't know. This made to mm I was going to say, does it depend on state? I I I don't know. I'm not an insurance expert. I mean, I know enough about property and casualty insurance to to to know what it is, how it works. Maybe some states require you to have a minimum amount of collision and or comprehensive. I don't know. Uh I think most if not all states require liability at least but outside of that, the best I can say is the the the overarching approach with insurance is you really only want to buy and share, I forget what the exact title labeling is but you really want to only buy insurance for things that the probability of them happening are relatively small and if and when they do happen, the financial impact is large and large enough that you can't safely absorb it yourself.

That's why I buy homeowners insurance. Chances of your house blowing up or getting knocked over, burning down, or really slim But if when it does happen, it's hundreds of thousands of dollars and most people can't absorb that. That's something you insure. Life insurance, you're young, you're in your peak earning years, you got young kids, you got people that depend on you financially, you die, that would be bad for your, for your, you know, for your family, chances of you dying, relatively small, financial impact quite large.

That's something you want to insure. Car insurance, kind of the same thing. Um you know, for a lot of people, if a car gets scrapped and they gotta pay 40 grand out of pocket for a car, you know, that's that they can't really do that. So, do the math and figure out. You know, if you have older, not so expensive cars and if it does get scrapped in an accident, not a big deal. You got 20 grand lying around to go out and buy a comparable, you know, replacement used car. Maybe you don't need the coverage Now, I'm not going to tell anyone drop insurance because as soon as I say that, guaranteed you get into an accident the next day but that that's just sort of things to consider with insurance in general. Um again, if it's low probability of happening in large financial impact, it's something you you probably want to insure with a car, you determine, you know, could you comfortably fund the replacement of a car if something happened with collision.

Now, again, you have to check like damage to others and people sue you for liability and pain and suffering like that's something you want insurance for because that can be a lot of money but simply replacement cost of a car or even replacement cost damage to someone else's car. Um that that's that's kind of for you to figure out that the math if you're comfortable ensuring that yourself or funding it yourself as opposed to paying for insurance for it. So, no, no rule of thumb but just food for thought. You know, me personally, I I'd sort of rather just keep insurance. It's relatively low cost.

I mean, I'm in New Jersey. So, it's it's expensive, I guess. But low cost, enough, and I think I have a 000, dollar deductible maybe more just because like I'm comfortable paying for that out of pocket even when there's something big, you know, tens of thousands of dollars. Yes, I'd lean on insurance at that point but otherwise, I see always keeping it just just because. I don't know. I'm also fairly conservative in in in many aspects. So, but that's me. Everyone's answer is going to be a little different. Uh good question. I feel like not a great answer but hopefully at least pick some some things to think about. When making financial decisions, would you discuss good enough versus optimization and how to decide which is better? this kind of sums up tax planning really well.

Good enough is is what people want to shoot for. If it's not good enough, you have problems. Um good enough will suffice. Optimization, it all depends. Are you interested in doing yourself? Do you have the time, the knowledge, the willingness to to figure stuff out yourself. If not, are you willing to pay someone for it? And if so, how much are you willing to pay? Um good advisers that they know stuff about taxes and and what not shouldn't be cheap or or aren't cheap and probably shouldn't be cheap.

Is it worth it to you It all depends. My my thought about optimization whether it's tax location, whether it's tax-efficient distributions and things like that. You probably heard me say this before. Tax planning and getting tax planning right in most cases will make a good plan better but it's not going to derail a plan that's already good enough as long as your expenses are under control, relatives, to your other income sources, and you know, asset size. If your expense is under control, if your overall allocation is right, if you're, if you're of keeping your fees down where you can in your investments and such. that, that's, that that's the big stuff.

That's the stuff you have to get right. Um, and, and to get that at least good enough. Tax planning, getting tax planning wrong, you know, not getting your asset location right, meaning you don't, which asset types you have, which accounts, getting that wrong isn't going to sink an already good base, solid plan. Getting it right. Can make it better and optimize it. So, I don't know. Um, some, some people sweat every detail. Some people want to answer these things to the penny and we'll run simulations and analysis all day long, every day for the rest of your life just because that's who they are.

Always seeking this, this never ending kind of elusive, perfect model, optimized model. It it doesn't exist. You you can always make things a little better but there's never going to be, yes, this is it. This is the perfect. No ifs, ands, or buts. This is the optimize. I don't think that exist. So, this is up to you. Some people are like, I don't care. Just get me good enough. I want to I want to be happy. I want to not run out of money. As long as you say I'm okay there, fine.

Whatever. The rest of it is just gravy if it goes well. If it goes a little wrong, I'm still okay, I don't care. So, it depends on the person Uh good question. Interesting question. Do you have any opinion on real estate syndication including funds or the need especially in retirement to diversify outside of soccer bonds? I don't know. I mean, like any other asset class that's not a traditional stock or bond, traditional financial investment, sure. There there's a case to be made for diversity. Um you know, uncore related to cash flows and or the the the changes in price are reasonably uncorrelated to traditional asset classes like stocks or bonds. In that sense, yes, completely get it. Um but the the things you have to weigh, the trade offs are less liquidity. When you own real whether it's physical real estate like you bought a rental, you can't get out of that quickly. You know, it's going to take you a minimum few weeks to sell it. Uh there's going to be friction cost between realty transfer taxes, legal fees, recording fees, stuff like that.

So, it's not a quick sale and it's not a cheap sale either. So, there's that to consider. Um that's if you're by yourself. With the syndication, you have even less control. You know, you you basically, I guess there's different ways to syndicate. You can go through like a crowdsourcing. You can do a private syndication but the point is you you pull up money with others and this pot of money goes out and buy real estate. You then own a slice of it.

So, I I get it. There there's there's there could be value to be had. I don't I I won't tell clients who want or have real estate get rid of it but I don't personally, my investment approach, I I don't go out and seek every possible combination of alternatives and non-traditional asset classes to tweak things. My approach it's worth is traditional investments, you know, low cost, simple, passive base, control what you can. You can control fees, diversification to some extent taxability. That's it. Um that's what you can control. So, focus on that. I have some clients that have quasi private investments or interval funds, you know, things they, they, they no longer want but can't get out of without selling little portions every quarter.

Real estate's kind of the same thing, right? If and when you want out, well, guess what? You might be stuck depending on this indication set up or depend on the rear, you're in, maybe a private real estate investment trust, you simply can't get out of when liquidity dries up. So, you have to weigh those things in but whether it's real estate or anything else, dare I say crypto. I'm not recommending crypto. I'm just saying it is more or less uncorrelated to traditional assets. Yes, there's a case to be made for any uncorelated or low correlated asset to to potentially enhance not just returns but safety and stability of of a portfolio.

So, that's my opinion a like anything. It could work. Uh maybe it will, maybe it won't but it's, it's all, it's all possible. It's not something I personally focus on, but yes, I, I can see where real estate can play, coming to play for folks. Okay, what else do we have? Does reading the tax code ever make you want to yeet your computer across the room? Ha, yes. Uh sometimes, reading reading like legislation, the reading these bills, like to build back better act, trying to trying to comb through that.

That's hard to read. So, the tax code is hard enough to read. These legislation, these bills and these legislative changes are even harder because a lot of what they do is they reference specific codes, specific sections, and the tax code. So, it'll say like section 807 dash C dash three dash four, add to the end of the last sentence, or the greater of or so, I'm making this up but the point is like you you need to reference a tax code itself with a lot of these bills to see what they're actually doing. These bills don't just say there. We are increasing the tax rate from 5% to 100% blah blah blah. No. You have to dig in the tax code. Look at what they're referencing and and do that. So, yes, sometimes that makes me want to yeet my computer across the room. Um just because they make it so hard to read. Oh, they don't intentionally do just the nature of how the code is but anyway, yeah, interesting question. Do I know of a good resource that compares current tax rates with what they will revert to in several years, inflation adjusted, relevant to making Rothhurst traditional decision.

Um So no, well, I have a few thoughts. So, we know we know what the tax rates will be in 2026. that's easy. It's what they were pre 2018. Um we're we're going back to those same rates. What's changing is the the dollar amounts of the brackets where those rates start and stop. Then, simply just adjust it by inflation. So, every year, those things go up a little bit. Every year, there's inflation I should say. So, no noone really knows what exactly those will be the future in several years. It's anyone's guess what inflation is going to be. So, I'm sure there's sources out there that that make projections and predictions but that they're not necessarily any better or worse than you coming up with your own assumptions of what you think inflation may be and therefore, what you think the you know, the income brackets themselves may may rise to over the years.

So, I don't know. I I did for what it's worth. I kicked around a trial, the software owned by Bloomberg called BNA. It used to be called BNA. It's called something else now but it's this really robust, really like not user-friendly tax software that lets you do different what ifs but it doesn't let you assume tax rates and stuff like that. It's kind of stuck. It has its own inflation assumptions built in but that's it.

You can't add like new taxes to it and things so I didn't find it very useful and I am trying to find this, you know, holy grail of how exactly or what is the best process and software to try to quantify Roth versus traditional and this something doesn't exist, frankly. I'm I'm I'm convinced nothing exist to do this, right? Because there are so many variables and and we don't know what those variables will be. We don't know how high tax rates change. We don't know how high or low stock and bomb markets will go. We don't know what inflation is going to be. We don't know what your own longevity in life's going to be. Maybe you die in two years and all these conversions were for not. You know, you don't get to live long enough to benefit from the the growth and the Roth. Perhaps. So, no. I I don't know of a good software that that really helps the answer which is frustrating because probably the most common question in this group is should I do Ross conversions or how much or when and there's no good way to quantify that the best I can sort of say is like I know a problem when I see it.

You know, if you got three million bucks in an IRA and you're 10 years out from RMDs, and you're in really low tax bracket now because you just retired. Like, you got a problem. Don't let that three million sit there and continue to grow. Take some out now whether it's through distributions or conversions or whatever just just because we know it's going to be an issue. How big of an issue we don't know. That's like, that's pretty obvious to see.

Outside of that, it's really hard to to to try to precisely pin down what is the right amount of rough money to have. What is the right amount of conversions? Should I do conversions? Should I do Roth contributions or traditional contributions? The best I can say which is kind of a cop out answer but it's really the best you can do in the absence of these big ginormous variables that we don't know what they're going to be is just to try to ultimately get to retirement with your assets, spread around in a nice, healthy mix between tax deferred, rough, and like regular like brokerage or cash.

Um what exactly is a healthy mix? I don't know. Third to third a third, 20, percent, twenty percent, 40%, whatever. Just ideally not like 95% of your assets and tax deferred. Cuz then you don't have a lot of control or flexibility around the taxation of that stuff. So the more you can diversify your sources of of a account taxation the better, but there is no right answer as to what's the the best amount or right amount. Alright, kind of got off on a tangent there but man, these are tough questions from you all. These are all things that that don't have clean, concise answers. I don't know if that's coincidence or if I'm just tired.

Um anyway, so anyway, I I apologize for this long, not specific answers but this is kind of the best I can come up with for these for the questions you all are throwing. Here's another one. When considering Ross Conversions, what return expectations on a converted money are generally used. Uh almost, I'm almost afraid to touch this. So, it really depend, it depends how you're going to invest it. Generally, the conventional logic is leave your Roth to be invested with your most aggressive stuff and don't plan on touching the money for a long time.

Let that aggressive stuff build up a lot, hopefully build up a lot of gain over time and all that gain will be tax free because it's in the Roth world. So, with that said, assuming your Roth assets are going to be, you know, your stock funds are most or all of your stock funds. The question is, what rate of return do you want to assume going forward for stock funds? This is where things can get hotly debated and some people may start throwing punches depending who, you know, who you ask and how how passionate they are about it Some folks will say stock market since we're it's been running up so much in the last 10 years.

It simply can't sustain this level of growth going forward. And has to at least kind of stall out. Maybe not crash but has to stall out for a while. So those people are going to say I don't know. Maybe expect four or 5% annual return going forward out of stocks. Uh there's other folks who are eternal optimists and and perennial bulls will say nope. Party's going to keep going. Maybe not as high as it's been. But yeah we still expect 78% Sto returns going forward. And then you have the doom and gloom pessimists who they're just you know always saying the end is near. They're going to tell you no stock market's going to **** out and you know it's going to be negative returns for the next 10 years.

Absolutely nobody knows. So take all that noise and throw it out the window. You pick a figure you think you're comfortable with. If you are invested in stocks and assumed average annual long term return of anywhere from four to eight or 9% is defensible. Not to say it can't be higher. Not to say it can't be lower. But just throwing out a very very broad range. Mid single to maybe high single digits for a well-diversified, you know, globally diversified equity portfolio is probably a fair assumption but it's just an assumption.

You know what happens when we assume things. Um so, anyway, Thanks, Mark. I bonds are thirty immaturity, not twenty. Good, good. Yeah. So, this person, I don't know who this is but some older I bonds have a base interest rate. I I forgot to mention this. So, I bought the interest Ibonds pay technically have two interest rate components. One is a fixed rate and then one is the you know, inflation-based rate that changes every six months. The fixed rate has been 0% for the last few years.

It used to be three plus percent, 20 years ago and then it kind of trickle down over time, bumbled around zero to oneish percent but the last few years, the fixed rate has been zero. If you did buy an eye in like 2000 or roughly, you had a fixed base rate of 3%, meaning that I bond was always paying at least three percent. Then, on top of that, it was paying whatever the inflation is. So, if there's, you know, if you owned an iBon from 20 years ago, you get this base rate of like 3% and you're getting this seven percent inflation on top of it. That's a lot of interest on an eye bond but that, you know, hindsight's twenty 20. If you knew 20 years ago to stock up on these things in advance of interest rates, you know, plummeting twenty in the future, IE now and inflation spiking, then, yeah, you'd you'd be a genius but outside of that, you can't go back in time and and go buy one of these 3% in base rate iBons.

They simply don't exist anymore. Base rate has been zero for a few years. how it continued high inflation with regards to cost of living adjustment payments impact the Social Security Trust Fund. hey, that's a complicated one. So, there's a bunch of moving parts. Um all else equal, higher cost of living adjustments means social securities, paying more benefits out of the system which means the trust fund will will deplete sooner. On the flip side and this is where it gets complicated. As inflation goes up, the wage, you know, a national average wages go up and the wage amount on which people pay social security tax also goes up.

So, there's more money getting paid into the system. That helps offset it but that that's not free lunch. The more people pay in, the more you pay in over your life, the more anyone pays in over their life, the more benefits it ultimately accrue. So, I I don't know the answer is what I'm saying. Um I I don't know which directionality in which inflow and outflow is larger or smaller than the other and which one more or less offsets the other. So, it's tough to say. The best I can respond to say, wait till next June, I think it is when they come out with the next annual Social Security Trust Fund projection.

Then, we'll see in hindsight. what this you know, what they think these cost of living adjustments have done to the trust, or, or will do to the trust fund, but prior to that, I, I really don't know if it's going to help or hurt it. I would assume on net, it would probably hurt it a little bit, but I, I really don't know. It's, it's not that simple. The way the formulation of Social Security works. What do I think about inflation protecting mutual fund to park some cash in for the next several months? Uh Uh I don't know what you mean by inflation protecting mutual fund.

You mean like a mutual fund that invests in treasury, inflation protected securities or is there some other product I'm not aware of that somehow has an inflation-based return in a in a mutual fund. But whatever, that aside, in theory, if it's something that's index to inflation, then then sure that by itself sounds good on paper but it depends what what you give up without looking at the security and the mutual funder knowing exactly what's in it and how it functions. Um you know, it may or may not help.

So, treasure tips, treasury, why am I drawing a blank? Treasury, inflation, protected securities, our bonds, treasury bonds where the interest rate is fixed but the principal amount on which that interest is pays, paid, adjust with inflation. So, so that's how they kind of pay you more interest. If you own these bonds as inflation goes up, the principal value that you own goes higher and so therefore, you're getting a more dollar amount of interest but those don't pay a lot of interest to start with.

The interest rate is is really close to zero on those So, in real terms, you're not really getting a lot of money for it. Plus, because they're bonds, this this gets a bit technical but they trade in the secondary market. There's going to be supply and demand forces that can swing things. So, you can lose money on these bonds. So, you know, you may buy it at one price if the market decides they lose favor in inflation bonds, the price of those bonds may go down, you may actually lose money on these. So, they're not, they're not, they're not riskless, they're not foolproof. Unlike iBons where you cannot lose money in an eye bond because your prince value will never go less than what it was and you can never get negative interest in an ibond. Um so, iBonds and Treasuring Inflation Protected Securities are are different animals. They're both treasury-issued things but the mechanics of how they trade and how they credit interest are very different. So, anyway, it it depends. Um I'd have to know more about the particular security to say whether or not, you know, I think it could make sense.

Oh, thank you, Jeff. I'm no more washed out than usual. Yeah, I'm usually pretty washed out. So, it's good to know. I don't look more washed out. Thank you. Uh what is this? knowledge of IRS enforcement of crypto transactions and gains. I am self-reporting gains, spreadsheeting it. I spreadsheet a lot of my life. Um ain't no shame in that game. Any idea if sites like Coinbase is generating any info to the IRS that would need to match. Just don't want higher chance of audit due to crypto transactions. No, I I don't know. I do know this is a level an area of increased scrutiny from the IRS and and rightfully so, it should be.

Um there's no reason why crypto assets should be any less trans reported than stocks and bonds other than the market simply isn't as developed. The players in the market aren't as developed. The custodians, if you will, you know, these virtual banks aren't as develop so they don't have the pipes and plumbing and reporting infrastructure yet but in theory, yes, crypto should be transacted and reported to the IRS just the same as stocks and bonds and major brokerages. So, I I I don't know if Coinbase and and you know, crypto banks of its ilk are starting to to produce things that they send to the IRS.

I've never personally bought crypto so I don't know. They should. If they don't, they should really soon for everyone's interest other than those trying to hide but whatever. Um with that said, I think spreadsheeting it for now is fine. You know, as long as you keep decent records and you're you're honest about reporting gains and losses, nothing wrong with that. Uh and you know, if and when there these these coin bases and places like it do start to develop formal tax reporting and then you'll need to rely less on spreadsheets because that's going to be the proof. Unless they're flat out wrong in the reporting, in which case, yeah, maybe you want your spreadsheet to try to prove them wrong but otherwise, the source will be whatever form they send you especially copy that get sent to the IRS as well.

Yeah and I don't know whether or not crypto transactions will lead to higher audit risk. Maybe, I guess because it is more of an IRS focus, I don't know what the, you know, how high or how much more of a risk it is. If it goes from negligible to slightly less negligible or if it goes from like, you know, you go from 1% risk to 10% risk. I really have no idea.

My guess is it also be a function of the size of the transactions probably like anything else. Sides, you know, size matters. With the IRS, the the larger is, the larger reported transactions, I think the more likely they are to question things. All else equal but with that in mind, I would think crypto would lead to higher audit risk but I frankly have no idea how much more. Murphy's Law. Here we go. Here we go. I ended collision and comprehensive on my old truck worth about 5000and then it was stolen. Yeah, go figure. Like I said, I don't want to tell people to drop insurance because you know, as you're driving Thanksgiving tomorrow, guaranteed your car gets smacked up. Uh Anyway, I stopped telling him owners insurance 30 years ago. Present value of savings is probably sixty K. Yeah. It could work. Like like any insurance. I I don't want to call insurance a gamble because it it's it's not.

It's insurance. You should lose you should lose money on insurance. You you shouldn't get something insured with the hopes of having to need it. If when you do need it, you'll be glad you have it. But like life insurance for example, you shouldn't be if you buy a 20 year term policy and you live. So, after 20 years, they're like, darn, I just spent whatever, 1000 bucks a year for 20 years from nothing. It's been 20 grand for what? I got zero return. You should get zero return. You you want to live. Well, most people, you should, you probably want to live. That's how to view insurance. Don't view it as a as a people do and I don't know. I'm not knocking you, Perry. I don't know why I got it from this tangent but homeowners insurance, car insurance, life insurance, even to some extent annuities because not not annuities or grossly misold. So, not a great example but I'm I'm saying annuity in the sense of like buying yourself a stream of income is in effect, longevity insurance. Ensuring against if you do outlive standard life expectancy, you're helping ensure you're not going to run out of money because you have this annuity that's going to that's going to you know, that's going to pay off.

It's going to pay monthly as long as you live. That's a form of insurance. It's longevity insurance and like any insurance, you don't buy it to try to make money. You buy it if and when. The unwant event happens, you're at least somewhat protected. That's what insurance is and homeowners is is no different. You don't buy homeowners insurance, hoping your house burns down so you get to make a claim to get paid out. No. You buy it and you spend that how much you, you know, it is, thousand bucks, 2000 bucks, depending where in the country you live and how big your house is, I guess.

Um you you have that expense every year, hoping and not expecting to have to use it but if when you do, you're glad you have it because it's going to cover, you know, 400, 000 bucks, 600, 000 bucks, however much your housing policy is but yeah, if if you Want to take the gamble of of of not ensuring and saying, yeah, I'll I'll save myself a thousand bucks a year, whatever it is and just deal with, if when I have an event, that's completely fine. You know, that that's your prerogative. Um and maybe chances are you probably will win that bet, right? Just because how many people actually have a complete home disaster home casualty? Not many, you know, or not most at least.

Majority of people don't ever in your life. So, people from from a pure odds perspective and I'm not, I'm not advocating this but from pure odds perspective, most people probably need home insurance because they're not going to have a massive home event but if and when you do and that event cost you $500, 000, if that's going to bankrupt or otherwise really break your financial life, you don't want that.

That's something that you should ensure because you can't withstand the loss. So, that's my thoughts on insurance. Karen, assuming you have about the same amount in retirement and brokerage account. What do you think about just rebalancing your retirement account to avoid paying capital gains in the brokerage account. That's what I do in practice, Karen. Um so, for people I manage money for, a lot of them have brokerage accounts that they may have had for a while. If they had it for a while, basically, is up. So, everything's at a taxable gain. So, what we do is generally, just keep the stuff they have in the brokerage account, don't rebalance it, whatever it is, we just fold it into their broader allocation and then, back into the rebalancing we need by way of rebalancing their IRAs or Roth IRAs or 401 (k) s or whatever because there's no no tax implications, rebalancing those.

Now, it doesn't mean we sit in the brokerage stuff forever. This is where it's a little more work involved and a little more function of what's going on in the world in the markets. We look for to sell things either because client needs income and part of the tax plan for that year is okay. We're going to get you 100000 bucks out of your brokerage account. It's going to be at you know, whatever long-term capital gain. You guys paid 15, 000 bucks in taxes versus if we pull 100 grand out of your IRA, it's going to be taxed at 20%.

So we kind of do this analysis every year to see what makes sense. Also, depends what the markets are doing. If things are up or down, what the tax implications of that but yes, generally speaking, I I do this in practice. Don't touch the brokerage account. Only rebalance the other stuff because there's no tax implications to to doing it. So, nothing wrong with not not say nothing wrong but completely valid approach. David Fultz, how frequently should someone check their investments? Do you think that the more we check, the more our behavioral biases come into play.

No doubt, yes. Um quarte rly ish. You know, when you look at it daily, that that that does more likely than not prompt you to feel the need to want to or to have to take action. Action is usually not good. Action means emotions, action means knee-jerk reactions. Um get your allocation right in the first place. Now, what exactly is right? You know, there that's a bit subjective whether it's 60/ 40 or 6535 or 8020. Depends on your stage of life and your emotional use towards risk and your financial assets and what you need them to do for you blah blah blah. Get your outlook right and and again, control what you can't control. Fees, diversification, allocation to some extent taxability. Outside of that, no.

Don't be looking at it. Daily, you know, frequently. Um I look at stuff because I'm in the business and I have to do it because I I you know, I have a fiduciary obligation of clients to make sure the world's not ending or whatever and if it is to, you know, maybe have to do things in their accounts but otherwise, I sit on it as well. Once a quarter, I go in, I rebalance everyone's accounts methodically, emotionally, is that a word? Without Um Yeah. I take all the subjectivity and guesswork. I do not market time. I simply, if a client's allocation was 60 forty, stocks drifted up. Now, they're at sixty-two, 38. I'll go in and I'll rebound. I'll sell some stocks, buy some bonds, or whatever, get them back to 6040. I do that quarterly like clockwork, the middle of every March, June, I had three to June is what? September and December. That's when I rebalance. Um if and when there is a major market move, Intracorder, a huge run up or a huge drop such that, you know, that may really skew the allocations, then, yes, then, I'll go and intercord it and rebalance but otherwise, if their allocations float around a few percent from the target, that's fine.

You know, getting too fancy and you want to rack up a lots of transactions and bit **** spread and stuff like that by rebalancing daily or even weekly. So, just pick a cadence and stick to it. Um whether it's quarterly, semi-annual, I'd say at least once a year, people should rebalancing and looking at statements just to know what's going on but you shouldn't be touching it and around trying to rejig or too frequently because because that's that's probably you know, more likely to not good isn't going to come out of that. Uh thank you, David Fultz. I moved 20, 000 from a 43 B to a traditional IRA I then plan to convert that over to Roth and pay income tax, okay? Is there any rule on the funds has to stay in traditional IRA for any period of time before I'm allowed to convert to Roth? Easy answer, no. Next, no, just kidding. Not to be rude. But no, there there's not. Once the money's in your IRA, you can you can convert it in theory that same day.

As soon as it lands there. Now, in reality, the custodian, the IRA will probably let make the money sit there for a few days to fully settle in in banking only once that cash is actually settled, can you then, you know, convert it out of the account, probably, but no, outside of that, there's no restriction, no IRS rule that says the money needs to sit there in season for a certain amount of time before you can convert it. Uh, good question. how to help a friend who says, I don't trust stocks. I'm keeping my money in cash. Just leave it alone.

I feel like it's dangerous even suggesting that all cash may have inflation risk and is not the best move long term. Do you think I can help if I heavily caveat that stock can do significant value due to volatility and highlight risk or still losing bet? Um I don't know. It depends on your friend and how how stubborn and close minded. He or she is and I don't mean those as as like derogatory mean terms. Just that's kind of the best way I can think about it. If their mind is already made up, I don't trust I don't care what you tell me, then, no. It's like trying to, you know, convince someone on one of the extreme ends of the political spectrum to change their mind and and see the logic in in some of their dumb views. Um it's just, it's pointless. You're going to get yourself angry over it. So, don't bother. Now, sure, if if you love the person, if you're genuinely concerned, I guess you can try.

You know, I don't know the dynamic between you too. So, I'm not a therapist nor do I play one on Facebook. This could be terrible advice for all I know but if you genuinely care about the person and you think he or she, maybe even mildly receptive to listening or at least won't cut you out of their life for trying, then sure that then I guess you can try to make a you know, casual kind of conversation with without getting judgmental or angry at the person but I don't know. It depends what your history is with this person and how he or she responds. Maybe it's just pointless. You're not going to get anywhere and just cause everyone a bunch of undo Ajida or maybe you can actually move the needle a bit.

So, I'm not sure. Good question though. do you find with your clients spending the go go, slow go, and no go phases of retirement? Do you do you find with your clients spending the go go and no go? Um not sure entirely what you're asking defaults. Do you find with your clients spending the go-go silver? Oh, okay. Yeah. So, yes. There's three phases of retirement commonly known as the go go, slow, and no go years or phases.

You can probably figure out what they mean. You know, go go is typically depending when you retire and your your general health but let's just assume, you know, it's your 60s into your mid 60s probably. Everyone's going to be a little different but this is when you're still healthy, vi you know, mobile good mind and body. You can still do travel. You can still physically move around. You don't have any, you know, restrictions physically or or mentally. That's the go-go years. That's when you often spend a lot on discretionary stuff doing those big once in a lifetime trips you wanted to do, doing, you know, massive amounts of pickleball.

Um doing whatever, hiking, and then the mind and our body starts to slow down typically seventy -ish, you know, into your late 70s or mid eighties. I don't know. Everyone's a little different again. That's the slogo years. Um you know, you could still do some travel. You're probably not climbing up mountains at this point. You're probably not paying playing aggressive pickleball. Now, maybe some slower pace pickleball.

Um so, you may spend a little less money on discretionary stuff and then the no go phase is kind of as as it implies, you know, the mind and or body are are kind of losing steam, whether it's physically, you can't climb stairs or you know, you you can't do any sort of real meaningful travel at this point or maybe your mind isn't quite whether it's demand just setting in or or or what it may be. You're not really doing much. You're you're probably unfortunately, not necessarily bedridden per se but you don't really leave the house and do much.

That's the no-go years. In which case, the discretionary spending is in effect nonexistent. Um so, the spending, at least in discretionary stuff is usually highest in the beginning, you know, the go go years starts to taper off in the slow go and the no go years. It it's virtually zero. Uh but that maybe somewhat, you know, or fully offset by increases in in medical expenses. Um but the point is spending in retirement is not linear. And this is why rules of thumb like the 4 percent rule are just super super back of the envelope. Quick sanity checks. They're not a distribution strategy. No one spends and lives exactly linear and even amounts. Life happens. Financial markets happen.

Things change. Typically you do spend more early you know early on and then it does taper off. So for what it's worth you can kind of give yourself permission to spend a little more early with the expectation that you can or you will be spending less as your years progress. Uh with the caveat that maybe, you know, medical expenses really ramp up. So, just another thing to further complicate. All this retirement planning stuff is is the unknown about stages of life, stages of spending, but but yes, I I do see that people want and should spend more in the go go years.

Enjoy it while you got it. Enjoy it while you can still do it and then spending will will typically taper off. Do you feel that a preferred stock exchange trader fund is a good proxy for a corporate bond fund? Is it safer than a stock fund? So, for those who don't know, preferred stock is it's it's like part stock, part bond It's technically stock but it's not common stock. It's it's it's more you know, doesn't have may not have the same voting rights as common stock. The dividend it pays is senior to common stock. Meaning, if and when the company cuts dividends on its preferred stock, it can't pay dividends to the common shareholders typically. Uh it can, you know, only if it is paying out, this preferred dividend to these preferred stockholders, can it then pay out common divide ends.

So anyway, in that sense, it's kind of like more like a bond and that it does typically have this stated annual dividend payment. Um yeah, I don't know. I I can't I don't say it's safer. I mean, what does safe mean exactly? But it definitely is more corporate bond like than traditional stock but it is still stock. Not, it's not formally a form of, it's not technically a form of debt. So, it's not completely a bond proxy. There's a place for it. Um again, preferreds those that do pay dividends are more stable of dividends typically than common stocks. So, so there, from income perspectives may be good. Uh preferreds are often convertible.

Meaning, the company can convert them into orange journal blank into shares of the stock into common shares of the stock. So, that's, you know, that that's a risk that may not exist with stock in the first place. You think you have preferred all of a sudden the company converts it or you know, force converts or maybe you can convert if you want into shares of common stock. So, it's a little more complex Uh god, again, not a great answer from me but it it's not, it's not a simple answer to say whether or not they're they're better or worse or that it's necessarily safer than a stock fund. All is equal. I think it's probably lower risk generally like lower volatility, little higher ongoing dividend but I don't want to necessarily say it's safer because there are some stocks like Melwether stocks that have always done fairly well and will likely continue to do fairly well and fairly consistent and that sense, those stocks can be safer than some, you know, higher risk preferred stock ETF I want to make a generalization to say, one is more or less safe than the other but sure, point is the preferred stock is quasi like a bond or at least more so than a common stock.

Alright, nine o'clock. Well, still a lot of questions. More than I thought. Thank you all. I I thought there'd be like two questions here. Me sitting here, making like like turkey hand signs or something. Uh trying to kill time. We'll wrap this up not too, not too long. I saw your mailback video on ETF versus mutual funds. It seems like ETF is better in mutual fund for passive investment in both regular brokerage and Roth account. So, can you think of any reason why someone can benefit more from mutual funding ETF. the best I can say is check out the video. I mean, that there are potential pros to to mutual fund. One is you always buy it at net asset value.

There's never going to be a difference in bid ask spread because you're not buying it on an exchange like you do with an ETF. So, there's that. Um you can buy partial shares of a mutual fund. You can't always buy partial shares of an ETF. So, like you can invest to the penny in a mutual fund whereas you can't with an ETF. Um some strategies exist only in mutual fund form if you specifically want like an actively managed strategy, You almost certainly have to find it in mutual fund form, not ETF form. If you want I don't know. What else? I guess I'll leave it there for now. Those those are kind of the big ones coming to the top of my mind. So, yes, mutual funds can still make sense.

It also depends where your custodian is like if you if you want a Vanguard Mutual Fund, you probably better to buy that direct at Vanguard because if you buy that through a brokerage account at TV or Schwab or Fidelity, you can but they're going to charge you a trading fee, you know, 20 to forty depending on, you know, 20, 30, 40 buck trading fee per fund per purchase to buy or sell mutual funds there. So, all depends. Um and how I invest in where I have and where clients custody accounts. And for my relatively straightforward buy and hold passive trading style. ETFs work perfectly great both in taxable accounts and IRAs and Roth IRAs.

That doesn't mean mutual funds are bad. It really all depends. Again you know what you're looking for and why and stuff like that. But Any legislative risk of non-qualified deferred comp, non-governmental 447 plans for high-income folks going away such that rather than 15-year payout upon separation, it will all be immediately distributed in tax in one year. I thought I read that a few years ago. They were at risk. Um I have no idea.

Honestly, I haven't heard of this. Anything's possible as you can tell from the last few months attacks legislation, all the stuff that comes out of nowhere, gets kicked around, and then gets, you know, maybe gains team, maybe just dies on the vine, I I really have no idea about this, but good question. Can HSA be opened after year end? Oh, that's a good one. So, can be opened, yes. Can it be funded? Uh that I don't know. So, let let's assume it's January. You open an HSA. I guess the question is, can you fund it for twenty twenty-one still? You know, it's January twenty twenty-two. I don't think so. I could be wrong. Uh I'm almost certain you can't. Here's why I say that. The only reason why you're allowed to fund certain account types after December such as Roth IRAs and IRAs is because their your ability to contribute is based on your income and you don't know your full income necessarily until you actually start doing your tax return in February, March, or April.

That's why the IRS gives you the leeway to make a retroactive contribution, you know, in January, March or April because you need to know your income. HSAs don't have an income-based limit. The only qualifier is you have a a qualifying high deductible health plan Period. Um so that that's not dependent on your income. You don't need to start doing your tax return to know whether or not you can contribute. Either you had the plan during the year or you didn't. So very not 100%, but very confident in saying no. Well you can't open it after you're in but you can't contribute for twenty twenty-one after December 2021. Do you prefer safe bonds such as governmental, municipal, or high-grade corporate or do you believe there's a place for high-yield AKA junk bonds? I worry about a higher correlation between corporate and stocks during decline. man, I'm always hesitant to talk about investments because people may take this as investment advice.

This is not investment advice to anyone listening nor is it a solicitation, a recommendation to buy or sell security. Um my view and this is just my opinion, different people have very different views. I don't personally invest in high-yield AKA junk bonds because they're they're much more correlated to equities than higher grade investment grade, you know, lower risk corporate bond or treasury bonds are. So, what are you really getting with junk bonds? You're squeezing out a little bit of extra coupon, income, sure, because they're higher risk but the price swings are much more like those of equities. So, I don't think junk bonds have a unique enough profile from equities that it's worth the risk. For me, in my approach, the long-term growth assets, long-term risk assets for equities, low cost, low fee, diversified equities. The bonds, they're not really there for because interest rates are so jokingly small Um they're really just there for ballast instability and yes, you know, the bond funds I use throw off one and a half, 1.

6 percent interest per year currently but the price fluctuates some. So, they're not really there to make people out of money. I don't anticipate the bond fund I use is going to get four, five, 6 percent per year on average going forward. I just don't see how that's mathematically possible for interest rates are. But they're there for if and they're off a little bit of interest along the way and hopefully, the prices relatively stable. Um if and when the stock market tanks, economy probably doing poor, interest rates may come down as the Fed tries to rain things in a bit.

Um and which means the bond prices may go up or the situation I'm concerned about which I don't think anyone has a great solution against is staglation and I had this discussion on a call with client today. That's what concerns me. Stagflation it so typically when there's when there's healthy levels of inflation, it's usually good for the economy, for companies. So, stock market usually goes up when when there's healthy inflation. So, stocks are really a good hedge against inflation. But then there's bad inflation. Bad inflation is like stag inflation. Like runaway inflation without good economic growth and health behind it. So what you have is not only do stocks lose value because stocks are going down from poor economy from whatever. Yet inflations are going up. Interest rates are going up. Which means bond prices are going to come down.

That's a bad scenario. That that's when all asset classes basically drop. And that's not good. And noone has a good solution against that. Other than you know, the the fear mongering snake oil salesman that that that got some magical product to say, hey, world's going to end. Go buy this product. I get a fat commission. You're not going to make a lot but guess what? You're not going to lose a lot if when the world ends. Those are the things that people try to sell you in anticipation of stocks that are all time, you know, stock markets all-time high, fake currencies, dollars going to collapse, money's getting printed, blah, blah, blah, world's going to end, go buy my insurance product.

It'll guarantee you no loss, wink, wink. Um where am I going with this? I don't know. What was the question? Man, what am I talking about? So, I I don't know. I I I don't personally use junk bonds. I keep it separate. Equities are for growth, lower risk bonds I have for stability and a little bit of interest but they're not growth assets. They're not going to throw off a lot of money. Junk bonds kind of sit in this weird middle place. They're a bit of both. They're not, they're not different enough from equities to really be safe. They're not what am I trying to say? That that's really it. So, I I don't know.

I don't think they have an enough uniqueness of of a of a spot in there. I don't use em and and yes, there is correlation between especially corporates, even higher-grade corporates, if and when the economy struggles, even the investment grade stuff will come down a bit in price. Uh treasury should go up because treasuries are typically the flight to quality asset when when times get ugly, people flooded the treasuries for safety. So, those prices usually go up but corporate bonds, even the higher rated investment grade stuff. If the economy is hurting, those will come down some in price. So, to your point, yes, they are correlated to some extent with equities.

So, they're not ahead per se. They're just more so ballast and buffer. They shouldn't go down nearly as much as equities. Um yeah. Alright, I'll stop there with that one. How much is that? Oh man, I'm not I'm not getting through all these. Sorry. I may be able. Let's see. See if I can rip through this and stop talking so much. Step up in bases for inherited accounts that transfer ownership to your spouse. Remain invested in same stock and mutual fund.

How is record keeping done whereby the basis is correct? Um The custodian that it's at should do the step up. So, so, if you, if you're, you have a joint account with your spouse, one spouse passes, you inform the brokerage at, hey, my spouse passed as of, you know, give give the day to death. They should take care of the rest. They adjust the basis in their system. Now, the questions may come around, Is it community property? If you're in a community property state, or is it joint property? Because that's going to impact how the step up happens. So, that's a little bit on you and your attorney perhaps and maybe your CPA to figure out if you're in a Property State? Is this in fact community property? In which case it gets a full step up in basis.

Or for whatever reason, did we side to not keep a community property? In which case, they wouldn't get a full step-up basis. So, that all depends but otherwise, the answer is tell the custodian what the date of death was, they should do the rest for you, automatically just basis on their records and the rest should be good. After full retirement age, say at age 67, is it necessary or required to open a separate Roth IRA for Roth conversions or can the converted fund simply come to existing existing Roth the ladder. There's never a need, you never have to open multiple Roth IRAs. You can have just one your whole life and that'll be fine. Now, if for whatever reason, you want to track or delineate between years you contributed or years you converted just because it's easier for you to keep records up in your mind. Sure, you can open open multiple accounts but you never have to, never necessary, never required. Um especially if you're over 59 and a half, you don't have to worry about that five rule, five-year rule around every year you do conversions because you're never subject to 10% penalty at that point.

If you're sixty-five for example, you do a Roth conversion, you'll pay the tax where you convert it, you can turn around and take all that money out the next day with no penalty and no tax because you will have just already paid the tax. So, no, there's no need to open multiple Roths. You can if you want but you don't have to. Alright, wrapping up. Uh getting there. A few more. What are the big health expenses that people worry about later in life? Does it Medicare plus supplement cover a lot and above that is a dairy max out pocket per year? Is it the risk of spending up to the max or is it bigger worry health expenses not covered? Sorry, younger person here at no medicare understanding.

Yeah, a lot of ways can go with this one. So, so yes. Medicare, base Medicare, there's a lot, it does not cover. For example, it doesn't at all cover hearing aids, podiatry, dental, vision, long-term care, a chiropractor or something else big I feel like I'm missing. Did I say vision? I think I said vision. Um it could be something else but it doesn't cover those at all. Even stuff it does cover, hospital visits, basic let's say just basic preventative routine, you know, primary care visits. There's a 80 percent co-insurance, meaning whatever the bill is, you pay 20% of it. Medicare only pays 80%. So even with copays out of pockets premiums, you're still going to owe something with Medicare because Medicare only pays 80% or whatever the bill is.

So, that's why most people often do and should get some sort of supplemental coverage whether it's a meta gap or an advantage plan, that sort of tax on and and some of the rest. Even then, there's still things Medicare doesn't cover. Long-term care, that's a big one. Even if you have a really comprehensive meta gap, you know, supplemental policy, I I don't think any of them cover long-term care or maybe if they do, there's only a very small portion, you know, the first X amount of weeks or something. Um there might be some limited amount of long-term care through part A. I I forget but again, it's not going to cover three years worth. If you have like a multiple year long-term care event. So, that's kind of the big expense people worry about is is the big, what if, long-term care, multiple years, I mean, like around the clock care facility because of, you know, physical issues, dementia, whatever, memory, Alzheimer's. Um that's a big expense.

Some people have enough to take and self fund it or they're going to rely on spouse or other family members for care. So, that drastically cuts down the cost, puts a significant burden on the family members given the care but nonetheless can help saving cost. Uh there's long-term care insurance you can consider. Not cheap and it's expensive to fully insure a multi, you know, multi-year, hundreds of thousands of dollars long-term caravan but not everyone wants a needs coverage for a full event.

They may just get some. They may buy only like two or three 000 of long-term care coverage. Just a little something to take the edge off type of thing but but then fund the rest. So, that's probably the big one but just keep my Medicare again. Base Medicare does not cover hearing dental, vision, podiatry. Now, emergency podiatry like you drop an anvil on your foot and smash it, your hospital coverage will get that but just like, oh, my foot hurts. Let me go to podiatrist. That's not covered under base Medicare and long-term care is not covered. Um good question, whoever was an asset. 401 K with company stock. Over four hundred thousand in growth. Low basis. High tax bracket. Time for NUA. Oh man, I'm not I'm not chiming in on this. Um can't say. Really difficult to say. NUA stands for net unrealized appreciation. you have to look at your it's also a function of the year you do this distribution, what your taxes look like then, how much additional tax you're piling on yourself with doing it. If you got a low basis, it may not be that bad.

Um $400, 000 dollars of unrealized gains. You know, that's still a large amount of gain to pay tax on which is going to be 15 or 20 percent plus the 3. 8% net investment income tax plus state tax anyway. So, all in, the the total amount of tax savings on this may not be substantial, frankly. When when you piece it all together compared to what taxes, you might ultimately pay on this if you just roll into your IRA. So, I'm not saying do or don't do it. I'm just saying anyway is is never a black and white decision or never an obvious answer in in the handful of times that come across it. Just because the savings end up not being as much as as a you know, it it may look on the surface. With $400, 000 of growth, that may be a sizable amount of savings. Um Yeah, but it really depends. It depends how much other tax credit assets you already have. It depends how much income and what tax bracket you're in now when when you do it. So, it's more more to it than CI but worth considering at least but I definitely can't say, you should or shouldn't.

Oh, what is this? Hold on. Hold on. You have until tax filing deadline to fund your HSA, really? Okay, I'm not saying it wrong. I'm saying, I'm surprised by that. It goes against the the reason for why I thought they typically give the you know, tax return deadline to to fund like an IRA or Roth IRA because you need to know your income in order to do it but good to know whoever said this. Um I hope, I'll assume that's accurate. Uh so, whoever asked the question initially, here you go. I'm I'm still surprised it's a nice that they that they do that but that's interesting. Okay. Uh alright, final question of the night. No more questions please. Uh what do you think about using variable universal life or a tax advantage investment? go back and check the video I did with Chris Kirkpatrick on my YouTube channel, Retirement Planning Demystified. That has, he, he's an insurance expert. I'm not.

I I I know enough to have an educated conversation about it. He's the expert. He and I talked for an hour about cash value life insurance as a first and foremost, it's life insurance. It always is, it always will be. The the cash account, the cash value features, the potential growth features, the tax deferral features, our secondary, ancillary benefits of it first and foremost beyond life insurance.

So, anyway, so with that said, sure, the the cash value features can, can play out well, can have cash flow benefits to them, you know, basically, you build up cash value, take a loan against it. It's not really income per se because you're not getting income. You're simply taking a loan from the insurance company and their collateralizing it with your life insurance policy. Not to say it's necessarily bad but these, I think these things are often misrepresented to folks when when they're when they're pitched. So, it's I hesitate to call it an investment because again, it's life insurance first and foremost. Yes, you can accumulate cash value. Yes, you can take that value out or you can take loans against it. Um Sure, it it could work. It's not a slam dunk that that it's always going to be good. You need time for it to bake. Uh you know, there's going to be there there's cost of insurance that are involved because again, first and foremost, it's insurance.

So, you can't compare this apples to apples versus traditional investments because there's this insurance component that cost money. All else equals going to drag on the investment returns. You'd otherwise get inside this policy. So, I don't know but check that video. Chris Kirkpatrick is out of six, seven weeks ago probably. You'll see a lot more thoughts about cash value life insurance. We didn't specifically talk much about variable. We talked about index and whole life. but still I think a lot of the commentary and insight should apply just the same. Alright, that's it. Thank you all. Um happy Thanksgiving. Happy healthy. I will see you again next week. I don't even remember what the topic was for next week but I'll see you again.

We are wrapping up soon. Taking the last two weeks of the year off from doing these lives as we did last year. So, probably only another what? Uh three or four of these left. One more special guest. Steven Jarvis will be coming on in December to talk about how to bridge the gap between your tax return, prepare, and your financial advisor to make sure you're getting ideally getting cohesive, integrated kind of tax planning that that bridges both of those universes. So, that'll be a good one and there's one more mailbag coming up and something else, some other topic, inherited IRAs or inherited R and Bs, something, I don't remember, whatever. Point is, I'll see you again. So, thank you all. Have a happy, healthy, and I will see you in a week. Take care.

.

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3 Steps to a Self-Directed Precious Metals IRA

The three steps to opening a self-directed precious metals IRA. A self-directed IRA enables you to go beyond traditional asset categories and choose alternative assets such as precious metals with a self-directed precious metals IRA, also known as a gold IRA, a custodian buys and holds precious metals on the account holder’s behalf. A self-directed precious metals IRA can help you achieve portfolio diversification and help protect you from economic and inflationary fluctuations. Opening a self-directed precious metals IRA account is easy with U.S. Money Reserve. Step one: Open First contact one of our trusted account executives. and let them know you're ready to open a precious metals self-directed IRA. Once you have contacted an account executive, you will need to complete the required application. Following the completion of your application. Step two: Fund This process involves either a transfer form or a three-way call with your current custodian.

Your U.S. Money Reserve Account Executive will help you do this. After you have taken the appropriate steps to fund your self-directed precious metals IRA, there will be a short waiting period while your funds are finalized. Step three: Secure Once your self-directed precious metals IRA is funded, your knowledgeable U.S. Money Reserve Account Executive will then help you select your inventory. There are certain bullion products that are eligible to be held in a self-directed precious metals IRA account. Some of these products include gold and silver American Eagles, Philharmonics and and Canadian maple leafs. In addition, one can buy gold Australian kangaroos, gold American buffaloes, and silver Australian kookaburra. There are also various gold, silver, platinum, and palladium rounds and bars that are eligible. Once the inventory is selected, Your custodian will handle the payment and ensure that the funds are processed. After your custodian has insured payment Your precious metals are safely delivered to an IRS approved depository of your choosing as the IRS will not allow you to possess the physical metals while they are held in the IRA.

Setting up a precious metals IRA account has never been easier. With U.S. Money reserve, the process is streamlined and anyone can have precious metals within their self-directed IRA account in a matter of days or weeks. Call U.S. Money Reserve today with any questions you may have about a self-directed precious metals IRA. and work with one of our highly trained IRA Account Executives to select the right gold and silver products for you. Click the link in the description to request your free, precious metals IRA information kit. It is full of everything you need to know about getting started on your self-directed precious metals IRA today. You need to know about getting started on your self-directed precious metals IRA today.

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Gold Roth IRA | Gold Roth IRA Rollover | Gold Investing In IRA’s | IRA Transfer

Gold Roth IRA https://www.regalassets.com/a/1237/ You have been following the markets for quite
some time. You're thinking about retirement planning,
but at the same time wondering what investment is best for protecting your future. After doing some research you decide to go
with a physical precious metals investment by executing a 401K rollover into a gold IRA. Now you must decide which precious metals
are right for your gold IRA portfolio and determine whether or not they are permitted. A Gold IRA can also be referred to as a Self
Directed IRA, Gold 401K, and a Roth IRA. Prior to 1997, rules and regulations permitted
only American Gold and Silver Eagles to be placed within a Gold IRA. However, the passage of the Tax Payer Relief
Act of 1997 made it possible to diversify a gold 401k amongst many different precious
metals. Current regulations now permit the placement
of gold bullion coins and bars, silver bullion coins and bars, as well as platinum and palladium
in Gold IRA portfolios.

One very popular IRA gold investment is the
American Eagle Gold bullion coin. This particular coin was first introduced
to America in 1986 to compete with the Canadian Maple Leaf, another gold bullion coin that
is permissible in a gold 401K. The Austrian Philharmonic, American Buffalo,
and Australian Kangaroo gold coins are also permissible investments. Restricted IRA gold investments include the
Krugerrand, Mexican 50 Peso gold bullion coin, as well as rare coins such as the liberty
head, Saint Gaudens, Swiss Franc, and British Sovereign to name but a few. Having outperformed all other precious metals
investments in 2010, silver investing is more popular than ever. American Eagle Silver Bullion coins, the Australian
Kookaburra, Austrian Vienna Philharmonic, Canadian Maple Leaf, and Mexican Libertad
silver bullion coin are all permissible in a Self Directed IRA.

Silver bars and privately minted silver rounds
that are produced by manufacturers accredited by the NYSE or Comex are also permissible
investments. Finally we have platinum and Palladium. Permissible Platinum investments include the
American Eagle platinum coin, the Australian Koala, Canadian Maple Leaf, and Isle of Man
Noble platinum coin. Palladium investments include those bars and
coins that are produced by a national mint. The Self Directed IRA or Gold IRA is a powerful
tool for diversifying your investment portfolio and protecting your future. It can be setup with ease as long as your
current 401K meets certain requirements. To get your free gold investor kit click the
link below: https://www.regalassets.com/a/1237/ Article Source: http://EzineArticles.com/5661525 Gold Roth IRA gold roth ira account
gold roth ira investments gold roth ira
buy gold roth ira can buy gold roth ira
gold roth ira rules.

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How do I rollover my IRA to gold or silver?

foreign how do I roll over my IRA to gold or silver navigating the process of rolling over your IRA into gold or silver can help protect and diversify your retirement portfolio first choose a reputable gold or silver Ira custodian and open a self-directed IRA account with them coordinate with your current Ira custodian and the new custodian to transfer funds from your existing Ira to the new self-directed Ira once the funds are transferred work with your new custodian to select the appropriate gold or silver asset to purchase within the self-directed IRA in conclusion rolling over your IRA to gold or silver involves choosing a reputable custodian transferring funds and selecting the right precious metals assets to diversify your retirement portfolio if you're interested in rolling over your 401k into a gold Ira gold and silver trust can help call us today to discuss your specific retirement needs and download your free gold and silver investor guide this guide provides valuable information on adding precious metals to your Diversified portfolio foreign

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Best 401K To Physical Gold IRA Rollover Benefits Review

Best 401K To Physical Gold IRA Rollover Benefits
Review A 401K plan provides a simple vehicle for
company employees to save a portion of their earnings. Additionally, many 401K plans are qualified
for a firm "match" up to a predetermined amount and/or percentage. These plans can be an extremely convenient
way for workers to spend less on a regular, ongoing basis. 401K plans, however, may be somewhat constrained
in the investment options available. Many investors these days are searching for
added diversification and reassurance. In an ever changing world using geopolitical,
money, stock market and inflation risks, among others, many investors are searching for ways
to own physical precious metals, such as gold or silver. This short guide will outline how a 401K application
from a former employer could be rolled over into a gold or silver IRA. What's a 401K Plan? A 401K plan is a qualified, tax-deferred account
that's defined in subsection 401K of the Internal Revenue Code. In a 401K plan, employees are allowed to contribute
a defined part of the earnings over a pre-tax basis to their accounts.

These earnings are pulled from the employees
pay prior to taxation, and tax on the earnings will be deferred until retirement withdrawals
are made. In addition, employers may contribute to the
workers plan in the form of a business match. The company match can fluctuate, and a percentage
match up to a predetermined percentage is common. These plans do have annual contribution limits. Moreover, you may make only one rollover from
an IRA to a different (or the same) IRA in any 12-month period, regardless of the amount
of IRAs you own. A 401K plan includes numerous potential benefits. Some of these benefits might include: Automated
Savings, Company Match, Tax-Deferred Expansion, Skill To Borrow From – Under Specific Circumstances,
Various Investment Options, Convenience While investment choices inside a 401K plan
may be restricted, many plans offer you numerous ways to commit money within the account.

Given multiple options within a fund, an individual
could be able to market their 401K holdings. In addition, account holders may move money
between funds as time moves or market conditions vary. A business match on donations can be a huge
perk for many employees. Many companies no longer offer pensions for
their workers, but now rather offer some form of business match on capital the employee
prospects. These matching funds can accumulate quickly
and will help one reach their retirement goals faster. Company matches on capital may fluctuate,
in addition to the amount of time until those funds are deemed vested. One has the ability to borrow funds from their
401K account under many programs and under certain circumstances. These conditions may include buying a home,
education or healthcare expenses or economic hardship. Such loans should generally be paid back within
five years, and the interest that you pay on the loan goes right back into your own
account. It is important to note, nevertheless, that
should you depart the company with a 401K loan outstanding, he or she will have a limited
quantity of time to repay the loan.

If this doesn't happen, they may be liable
for taxes on the capital, in addition to premature withdrawal penalties if under the age of 59
1/2. Can I Have Physical Gold in a Typical 401K? While 401K plans may provide several choices
for investments, the total amount of asset classes available to invest in may be limited. Standard 401K plans do not have the option
of physical gold or silver possession. The nearest one can come would be owning precious
metals funds, gold or silver mining stocks or other similar paper goods. Of course, lots of buyers of physical precious
metals desire to own the physical, tangible metals for their inherent advantages. While specific circumstances may allow for
physical metals ownership inside a 401K, like in a self-directed 401K, most people with
a regular 401K account may need to try to find other alternatives in order to own physical
gold or silver. This is the point where a gold or silver 401K
rollover may come into play.

A gold or silver IRA rollover is simply the
moving, or"rolling over" of a 401K account from a former employer into a precious metals
IRA accounts . There are several issues worth noting and exploring about this possible option: If you're still used by the company that sponsors
your 401K plan, you will likely not have the ability to roll over funds to a gold or silver
backed IRA. There may, however, be exceptions. It is best to consult your plan sponsor. One can also possibly keep his or her present
401K plan and buy physical gold or silver via another, self-directed IRA account.

401K accounts from previous employers can
be rolled over into real life gold or silver IRA accounts, a new 401K plan with a current
employer, or might be cashed out. Cashing out, however, can involve tax obligations
and penalties and must be very carefully considered. The practice of rolling over an old 401K account
into a gold or silver IRA is relatively simple and can be accomplished in a brief time period. In a nutshell, the Procedure goes like this: Select a self-directed IRA custodian. Regal Assets is our favorite custodian. Complete all essential paperwork to complete
the transfer of funds from the old 401K into a searchable IRA account. Once the IRA custodian has received all essential
paperwork and money, you may shop various gold and silver retailers for the goods you
wish to purchase.

Once you've decided on a buy and secured in
a price with all the precious metals dealer, the dealer will bill your IRA custodian for
payment. Your IRA custodian will supply you with frequent
account statements on your gold or silver holdings. There are several things to think about when
rolling over an old 401K plan to a self-directed precious metals IRA account. A few issues to consider are: Choice of Custodian,
Choice of Depository, Gold or Silver Merchandise to Purchase, Ongoing Contributions There are lots of gold and silver IRA custodians
to choose from. When comparing IRA custodians, a few things
one may want to compare include duration of time in business, customer reviews and expenses
and fees. Custodians could be compared online from the
comfort of your home or office. The exact same can be said for choosing a
depository. You will find many accepted depositories to
choose from in a variety of locations. You might choose to compare fees and expenses,
in addition to security and/or any insurance provided. When it comes to choosing gold or silver merchandise,
there are regulations in place dictating what can be bought in an IRA account.

These regulations are extremely specific. If Looking to Purchase gold, a number of those
approved products are: American Gold Eagle Coins, Austrian Philharmonics, Canadian Gold
Maple Leaf Coins, British Gold Britannia Coins, South African Gold Krugerrand Coins, American
Gold Buffalo Coins, Chinese Gold Panda Coins, Various Gold Bullion Bars of Minimum Purity
Produced by Approved Mints. If looking to purchase physical silver, in
addition, there are restrictions on what could be purchased in an IRA account. A number of those approved silver products
comprise: Broadly speaking, the gold and silver goods
eligible to be bought within the IRA accounts are extremely liquid and carry lower premiums
compared to many different goods.

There are lots of possible reasons to purchase
a gold or silver 401K rollover. No two investors are exactly the same, and
investors may have different targets or concerns. A number of the potential reasons may include: Inflation is a sustained gain in the costs
of products and services — in other words things are becoming more expensive. As inflation accelerates, one's purchasing
power is eroded. A dollar now buys under a buck did 10 years
ago for example. As inflation increases, one's actual returns
on investments might be less, as well. Some investors think that precious metals
such as gold and silver might not eliminate value like other assets during times of high
inflation.

In reality, many investors believe that the
worth of gold or silver might potentially increase during periods of high inflation
thus offering a hedge against rising costs. DOLLAR DEVALUATION: Some traders purchase
precious metals to hedge against dollar devaluation. Like inflation, since the value of paper currency
is eroded products and services become relatively more costly. Gold and silver have been denominated in U.S.
dollars and often times exhibit a reverse correlation to the dollar. To put it differently, often times once the
dollar falls, gold and silver rise. Conversely, the value of gold and silver may
decline if the dollar is rising. PORTFOLIO DIVERSIFICATION: Many investors
today are looking for ways to further diversify their portfolios. Today's investors are looking for extra asset
classes beyond just stocks and bonds.

Precious metals, like gold and silver, may
provide an extra layer of diversification. Precious metals frequently exhibit little
significance to stocks or bonds and, thus, may be an efficient way to add diversification. They have proven to be a reliable store of
value over that time and are still recognized today for their value. These metals are transacted all over the globe. An ounce of gold in the U.S. is Just like
an ounce of Gold in Japan. GOLD AND SILVER CARRY NO COUNTERPARTY RISK:
Unlike paper investments, physical gold and silver can't go bankrupt or default on an
obligation.

PEACE OF MIND: Physical gold or silver possession
can offer significant reassurance. Due to their history, characteristics, absence
of counterparty risk and liquidity, precious metals ownership may provide a level of relaxation
in a changing universe. Of course, this list can go on and on, but
these are just a few reasons that many investors turn to gold and silver. This manual is meant to be a concise introduction
to rolling over a 401K accounts from a former employer into a precious metals IRA that possesses
physical gold or silver.

That having been said, there are very specific
guidelines which has to be adhered to. If you've got a 401K accounts with your existing
employer, we advise that you discuss your desire for physical gold or silver ownership
with your plan sponsor to see what, if any, options might be accessible to you. If your 401K is by a prior employer, the procedure
to roll it is rather straightforward and simple.

One should always, however, consult their
tax professional before doing anything tax related or that may have tax implications. In order for the rollover to go eloquent,
all regulations must be adhered to. Your tax professional can guide you through
the procedure and answer any tax related issues that you might have. While this guide is supposed to be for informational
purposes only, no investment advice is being given or implied. I hope you have enjoyed this best 401K to
physical gold IRA rollover benefits review. There are many benefits to rolling over your
401K to gold and precious metals.

If this interests you, please visit https://FreeGoldIRARolloverKit.com
Order your Free Gold IRA Rollover Kit: FreeGoldIRARolloverKit.com Call: 1-844-612-7162.

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Should I Convert My 401k To Gold IRA?

should i convert my 401k to gold ira if you're looking for a new destination for the funds in your 401k and you want something that doesn't closely follow the stock market or the economy then a 401k to gold ira rollover could be a good option that said it's always important to diversify your investments can i roll my 401k into gold and silver ira 401k accounts from past employers can be rolled over into self-directed gold or silver ira accounts a new 401k plan with a current employer or may be cashed out can i convert my 401k to physical gold by investing in medals you're taking action to protect your retirement savings with an investment that is backed with the tangible asset of physical gold and not the dollar the good news is you can easily roll over your 401k into a gold ira to do so is a non-taxable event and there are no penalties how does a gold ira rollover work once the gold ira is open you can start the rollover you have two rollover options indirect or direct through an indirect rollover you take the money out of your retirement account and put it into a gold ira with a direct rollover the funds are transferred automatically from the retirement account to the ira can i move my 401k into silver ira a 401k only gives you investment options that your employer or plan chooses once the funds from your 401k have been deposited in an ira they can be used to buy gold or silver rc bullion makes rolling over an old retirement savings plan from a former employer easy for you how do i roll over my 401k to gold without penalty how do i transfer my 401k to silver without penalty how to move 401k to silver or gold without penalty one choose a gold ira company two open an account three initiate a distribution or rollover from your existing retirement account for fund the gold ira account five select the precious metals to hold in the gold ira to learn more about how to roll over your 401k to a gold ira visit https colon slash slash www dot cold era 401 convesting dot com slash gold ira rollover slash click link in the description below

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Can You Roll An IRA Into Gold?

can you roll an IRA into gold to put IRA funds into gold you have to establish a self-directed IRA a kind of Ira that the investor manages directly is permitted to own a wider range of investment products than other IRAs for a gold Ira you need a broker to buy the gold and a custodian to create and administer the account can I roll my IRA into gold or silver yes this process does require paperwork once you've assessed your assets and goals researched and picked a gold Ira company your current Ira administrator will send you the proper paperwork to transfer or roll over whatever amount of money you want to convert to a gold IRA can I roll my 401k into silver a 401k only gives you investment options that your employer or plan chooses once the funds from your 401k have been deposited in an IRA they can be used to buy gold or silver RC bullion makes rolling over an old retirement savings plan from a former employer easy for you how do I convert my IRA to Silver rolling over funds to move your IRA money into physical gold and silver you need to roll the funds over from your traditional IRA into your self-directed IRA the IRS lets you roll over IRA funds once in every 12-month period to learn more about how to roll over your 401k to a gold Ira visit https colon slash www.goldier401convesting.com called IRA rollover slash click Link in the description below [Music]

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Do you have $100,000+ in an IRA/401(k)? You should watch this now…

How does inflation affect your retirement wealth? Here's a free calculator: https://www.augustapreciousmetals.com/inflation-calculator/?apmtrkr_cid=1696&aff_id=1975&apmtrkr_cph=

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Gold IRA Rollover Kit: How To Roll Over Your 401K & IRA To A Gold IRA

Important: Gold IRA Rollover Kit Information
How To Convert Your 401K & IRA To A Gold IRA Thanks for watching this video about how to
get your free 401k and gold IRA rollover kit. If you're watching this video then we don't
have to get into all the benefits of a gold IRA and how it can help you reduce the volatility
of your retirement portfolio. Let's dive in to learning about your free
gold IRA rollover kit now. After you call 1-844-612-7162, or fill out
a simple, short, secure online form you will be mailed your physical free gold IRA rollover
kit. The kit will be coming from Regal Assets.
Regal Assets is an A+ accredited BBB business, they are also a TrustLink Preferred Member
and have over 800 reviews. Regal Assets is also an official retailer listed with United
States Mint.

Regal Assets is an expert in helping people
like you protect your IRA and/or 401K with physical gold and silver, tax-free without
penalties or fees. Included in your free gold IRA rollover kit
will be at the 99 pages of “Insight", a guide to gold and silver investing. In this
free guide you will learn the secrets to roll over your IRA to gold and precious metals,
tax-free without penalties. The second thing you receive with your free
gold IRA rollover kit is the "Secrets of the Federal Reserve" DVD. This amazing documentary
has won awards and it will unveil some of the mysterious secrets about the Federal Reserve
and US money system. The third thing you'll receive with your free
gold IRA rollover kit is the Forbes magazine investment guide, where you can learn how
to secure and shield your precious retirement assets from possible future market volatility. The fourth and last thing that you get with
your free gold IRA rollover guide is the “Untold Story of Gold" special report. In this special
report you will learn about how gold and silver will play a critical role in the future of
our financial system.

To get your free gold IRA rollover kit today
call: 1–844–612–7162 or visit our website at http://www.FreeGoldIRARolloverKit.com.

As found on YouTube

Silver and other precious metals IRA

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