Big Picture Retirement

Have you thought about using rental properties for retirement income? Is rental real estate a good choice for retirement income for you? John and Devin go through some of the benefits of rental property. For more information, visit the show notes at http://www.bigpictureretirement.net/086

People are always talking about probate, and the many ways to avoid probate. Probate is the legal process of figuring out who gets your stuff. One of the biggest misconceptions about probate is that your estate does not go through probate if you have a will. Be sure that if you have a will, your estate will go through the probate process. But here’s the thing: this process doesn’t apply to non-probate transfers. For more information, visit the show notes at http://www.bigpictureretirement.net/085

The big benefit of the Roth IRA is that you fund it with after-tax money and it grows tax free, and then when you take it out, it is also tax free, if you meet the qualifications. The big problem with a Roth IRA is that there are income limits to be able to make contributions to a Roth IRA. There are a lot of people out there who can't contribute to a Roth IRA. So, how do you contribute to a Roth IRA if you make too much money? You use a backdoor Roth IRA. We have really good notes for you. To read more or to share the show with someone else, visit http://www.bigpictureretirement.net/084

By the end of 2016, there was $660 BILLION dollars in Roth IRAs. So, lots of people are getting this right. Where you can get some of it wrong 1.It lets you put the money in after tax, so you don’t get to deduct the money from your income in the tax year. But, you get to take the money out tax free. 2.If you put money into a Roth, you can pull out your contributions at any time without taxes or penalties 3. You can withdraw from the Roth at any time to purchase a home 4. There’s no required minimum distribution from a Roth IRA For more information, visit the show notes at http://bigpictureretirement.net/083

Is there any value in doing your codicil in blood? A codicil is an amendment to a will. They can be used when there is a smaller change and it seems easier than doing a whole new will. Is there a time and place for a codicil? Yes, if no one is going to be mad and challenge the change that you've made.If you're changing beneficiaries, or executors, and they're going to be upset, you need to do a whole new will. For more information, visit the show notes at http://bigpictureretirement.net/082

Many industries utilize a lot of different types of designations, and that's also true for financial advisors. What do they all mean, and should you care? Devin asked John, "How many designations do you think there are for financial advisors?" John thinks there is really no way to know that for sure. At FINRA, one of the regulatory bodies for financial advisors, there is a page of 180 designations listed, as of today, and close to 100 of them begin with the word "Certified." Why do these designations even exist? Listen in for more, or read the show notes at http://bigpictureretirement.net/081

Listener Becky asks if it is legal to place a surveillance camera in the room of your loved one, specifically in grandma's nursing home. Devin also answers the question "Does keeping a balance on my credit card help my credit score?" For more information, visit the show notes at http://bigpictureretirement.net/080

What are the the moral or ethical considerations of using strategies and loopholes to utilize government programs? Is this ethical? It cheating? Is it getting close to fraudulent? John and Devin go through some scenarios. For more information, visit the show notes at http://www.bigpictureretirement.net/079

While we move into our new recording studio, and with all the new listeners coming on board, we are replaying an episode from 6 months ago: The Tatoo Factor and Predictions that Didn't Happen Devin shared some examples of pretty dire predictions by investment professionals, and asked David and Andrew how they would respond. David points out that the fear of losing everything is pretty compelling – there’s a natural instinct to avoid danger. Andrew recommends that clients focus on their individual plans that has been prepared for their unique situation and risk tolerance. For more information, visit the show notes at http://www.bigpictureretirement.net/052

Devin talks about good reasons to file for Social Security at age 62. Every situation is different, and some folks will benefit more if they file later, but there are many people for whom it makes sense to file early: You need the income You Are Single and Have Health Issues Issues Related To Your Spouse’s Benefits Survivor Benefits Minor or Disabled Children For more information, visit the show notes at http://www.bigpictureretirement.net/episode-77-5-smart-reasons-to-file-early-for-social-security/

Devin and John welcome Brandon Renfro to talk about Real Estate Investment Trusts (REIT). A REIT is a packaged investment product, like a mutual fund, that is invested in real estate related assets. There are a couple of different types of REITS that you can buy. For more information, visit the show notes at http://www.bigpictureretirement.net/076 

For many, going to college is the goal, but the costs can be overwhelming. If you’re a parent, or a grandparent, you’ve got to be thinking, “How do I keep these children from going into that hole?” John and Devin share ideas and tips for how to make college affordable for you or your children/grandchildren. For more information, visit the show notes at http://bigpictureretirement.net/episode-75-ways-to-pay-for-college

Devin and John continue the discussion from Episode 73: The Right Way To Qualify for Medicaid for Long-Term Care Single person: you can have a house, you can have a car, you can have your funeral paid for, you can have $2,000. How can you bring your assets down below the $2,000 limit? There are quite a few good options. Now, if you're part of a married couple, you have a different set of issues. As you can see, this stuff is really complicated. For more information, visit the show notes at http://bigpictureretirement.net/074

What is the right way to qualify for Medicaid for long-term care expenses? Listen in as John and Devin discuss Medicaid eligibility factors, non-countable assets, and what - if anything - needs to be done with assets now to possibly protect these assets down the road. For more information, visit the show notes at http://www.bigpictureretirement.net/073

Warren Buffett made a bet, that came to be known as Buffett’s bet, that the S&P 500 would outperform any basket of hedge funds in the next 10 years. It started on the 1st day of January 2008, and was supposed to conclude at the end of 2017. If you look the final results, the S&P annualized gain was 7.1%, which is impressive considering that this challenge started during a terrible time in the market. The group of hedge funds didn’t even earn an average of 2.1% during that period of time. It’s weird that Buffett made this bet, because he has made his fortune by buying individual stocks. This bet was contrary to the way he invests personally. Letter to shareholders In the event of his death, he directs the trustees to put 90% of the trust funds value in S&P 500 index funds. It does raise the important question, in your own portfolios, should you just stay to with a packaged product? For more information, visit the show notes at http://www.bigpictureretirement.net/072

This idea of dividends sounds good, but chasing yield often ends badly. Dividends aren't guaranteed, but having the right balance for your situation can benefit you when it comes to dividend-paying stocks. Learn what a dividend is and what to look out for when looking at dividend stocks at http://www.bigpictureretirement.net/071

Is a credit score important while you’re in retirement? That depends on your situation. For some people, maintaining good credit can continue to be valuable. For others, who won’t be doing anything that requires credit, there’s no need consider a credit score when making decisions. Find out more at http://www.bigpictureretirement.net/070

Managing your retirement savings can require a lot of knowledge and decisions. Lots of folks don’t want to worry about which funds to be invested in, and what asset allocation is best for them. If that sounds like you, a target date fund might be right for you. Each fund is identified with a year, and generally you would be picking a fund that corresponds to the date when you plan to retire. They’re very popular because they are easy. You can just put your money in one fund, and you’re done. The way the investments are made in the account, the closer you are to the target date, the more conservative the investments become. The further you are from the target date, the more aggressive the investments will be. If you are considering a target date fund, there are a couple of things to figure out. For more information, visit the show notes at http://www.bigpictureretirement.net/069

Devin and John are joined by Roger Whitney, founder of the Retirement Answer Man Podcast and author of the recently released book, Rock Retirement. For more information, visit the show notes at http://www.bigpictureretirement.net/068

Devin and John explore one popular alternatives to traditional health insurance: health care sharing arrangements. John has about 20 employees, and he provides health insurance to the employees (but not the families.) This is a high-deductible plan, so the employee still pays $3,000 to $4,000 per year before the insurance kicks in. So, as a general rule, John knows that he (and his employees) will see virtually no benefit from this very expensive coverage. Because a health care sharing arrangement is not traditional health insurance, there are some important secondary results. For example, these plans don’t make you eligible to use a health savings account (HSA). It also doesn’t count as health insurance to be deducted as self-employment insurance premiums on your taxes. Bottom line: if you are out there in the open market looking for health insurance, you should at least explore these health care sharing arrangements. For more information, visit the show notes at http://www.bigpictureretirement.net/067