Not Your Average Financial Podcast™

Think different about your money, your economy and your future. Be curious. Be stable. Be sane.

Episode 30: Will You Pay Tax on the Seed or the Harvest?

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In this episode, we ask:

  • What is the “Rich People’s Roth?”
  • Are there required minimum distributions (RMDs) on ROTH IRAs?
  • What other elements make up a ROTH IRA?
  • What accounts have contribution limits?
  • What accounts can you contribute to tax free and take distributions tax free?
  • What’s smaller? The seed or the harvest?
  • Would you like to defer your taxes?
  • Would you like to pay your taxes now?
  • Are taxes going up?
  • How can you get access to a death benefit while you’re still alive?
  • How do Long Term Care policies work?
  • Do you need Long Term Care?
  • What is the average cost of a nursing home today?
  • Do you know how much your taxes are going to be this year?
  • Will you get a refund? What happens to the refund?
  • Can you use a Bank On Yourself policy for taxes?
  • What about Self Employed individuals?
  • Would you rather prefer a dollar today or a dollar tomorrow?
  • Do you have to prove to the IRS that that’s your money?
  • How will your bigger paycheck affect your taxes?
  • Have you gone to the IRS website to see what your estimated taxes will be?
  • Are you giving the IRS a no interest loan?
  • Are you proud when you receive a tax refund?

Episode 29: Tax Advantages with Bank on Yourself

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In this episode, we ask:

  • Is there someone at the IRS who you’re particularly fond of?
  • Do you have more than one beneficiary on your IRA or 401(k)?
  • What did we mention over and over in our last episodes?
  • Are taxes likely to go UP or DOWN in 2025?
  • What changes can we anticipate?
  • What are the tax advantages from Bank on Yourself?
    • How are distributions taxed from Bank on Yourself policies?
  • Would you like Tax Free Retirement Distributions and Withdrawals?
  • Would you like to take the anxiety and guesswork out of retirement?
  • Do I have to hold on to the S&P with white knuckles?
  • What are the two key unknowns in the government-sponsored qualified plans?
  • How do Bank on Yourself policies grow?
  • How are Bank on Yourself policies like ROTH plans?
  • How do dividends affect policy performance?
  • How do you access cash value tax free?
  • How do you pay your taxes now on life insurance premiums?
  • Will you get a 1099 for the growth in your life insurance policy?
  • How many withdrawals can you take from a policy without any tax consequences?
  • Once you’ve exceeded the cost basis, how can you get money from the policy tax free?
  • What about the possibility of a policy lapse?
  • What about the horror stories?
  • How do you know you’re working with the right advisor?
  • What are some ways we can avoid lapse?
  • What happens to couples who earn over $44K annually?
  • What’s the problem with required minimum distributions (RMDs)?
  • How does a Bank on Yourself plan affect your capacity to apply for student aid?
  • How do business owners use Bank on Yourself policies for paying taxes and financing big purchases?
  • What is the tax treatment for a death benefit?
  • What are the tax implications with an inherited IRA?
  • How are life insurance death benefits treated in probate court?
  • Can creditors and predators come after money in probate court?
  • Can creditors and predators come after death benefits?
  • Can you save as much as a death benefit?
  • What inheritance options are drama free?

Episode 28: Hug Your CPA and your IRS Agent

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In this episode, we ask:

  • What is going on with the new tax law (the Tax Cuts and Jobs Act)?
  • What’s new with personal taxes?
  • What does the tax code encourage?
  • Where are the tax breaks?
  • How is the effective tax rate different from the marginal tax rate?
  • How does this affect the Mortgage Interest Deduction?
  • How much will this raise the federal deficit?
  • What about the Affordable Care Act / Obamacare tax?
  • How does this affect the socioeconomic structure in the U.S.?
  • What is the hope of the tax law?
  • What about the Estate Tax?
  • What about the Child Tax Credit?
  • What’s the difference between the credit and a deduction?
  • How do we stack up compared to the rest of the world in corporate tax rates?
  • What’s new with corporate taxes?
  • What are the updates with pass-through income?
  • What happens to the net interest deduction?
  • What about the carried interest loophole?
  • What are some of the areas where it’s all stayed the same?
  • Tax handling of Qualified Plans will continue unchanged (529s may be accessible for K-12 tuition needs, this varies by state.)
  • Will more people choose the standard deduction over itemized deductions?
  • Will people continue charitable giving?
  • Did the new law simplify the code?
  • Does the new tax law truly provide cuts?
  • Are you seeing an increase in take-home pay with the tax shift?
  • Why is the word “Jobs” in the title?
  • Are we in the lowest tax brackets of our lifetimes right now?
  • When do most of these changes expire?
  • What should we be doing with our money in light of these temporary changes?
  • Is this the best time to be deferring taxes?
  • How is every 401(k) being taxed?
  • What is something we can pay the tax on TODAY, so we don’t have to pay tax on it in the future?
  • How many trillion dollars is currently sitting in qualified accounts?
  • What is the amount of the government’s unfunded liabilities?

Note: We are not tax experts. Please consult your CPA, your attorney and your tax specialists as you navigate the new tax law.

 

Single filers, 2018-2025
Taxable income over Up to Marginal rate
$0 $9,525 10%
$9,525 $38,700 12%
$38,700 $82,500 22%
$82,500 $157,500 24%
$157,500 $200,000 32%
$200,000 $500,000 35%
$500,000 And up 37%
Heads of household, 2018-2025
Taxable income over Up to Marginal rate
$0 $13,600 10%
$13,600 $51,800 12%
$51,800 $82,500 22%
$82,500 $157,500 24%
$157,500 $200,000 32%
$200,000 $500,000 35%
$500,000 And up 37%
Married couples filing jointly, 2018-2025
Taxable income over Up to Marginal rate
$0 $19,050 10%
$19,050 $77,400 12%
$77,400 $165,000 22%
$165,000 $315,000 24%
$315,000 $400,000 32%
$400,000 $600,000 35%
$600,000 And up 37%
Married couples filing separately, 2018-2025
Taxable income over Up to Marginal rate
$0 $9,525 10%
$9,525 $38,700 12%
$38,700 $82,500 22%
$82,500 $157,500 24%
$157,500 $200,000 32%
$200,000 $300,000 35%
$300,000 And up 37%

Source: Joint Committee on Taxation.

Episode 27: A College Degree from Bank on Yourself

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In this episode, we ask:

  • What does the Wall Street Journal say about qualifying for student aid?
  • What is a 529 plan?
  • How does it affect aid on the Federal level? When colleges set up their own aid?
  • How do financial aid officers look at 529 funds? How do they treat it?
  • Do you know which college your kids / grandkids are applying for?
  • What are some ideas for managing the 529 plan as you approach paying for college?
  • How are the 529 plans like other qualified plans, for example the 401(k)?
  • What is one of the most predictable and reliable ways for saving for big purchases?
  • How do you maintain control of the money, so you can spend it without strings attached?
  • How do you eliminate the opportunity cost with this large amount of money?
  • Who does the money ultimately benefit with a Bank On Yourself college solution?
  • When do loans kick in for kids?
  • Who’s in charge of the loan payback schedule?
  • What about a parent matching program?
  • Who wants to leave an inheritance to Sallie Mae?
  • What about kids that don’t pay the parents back on these loans? What recourse do the parents have?
  • How do Bank On Yourself policies get reported on the FAFSA forms?
  • Where does your money live?
  • What if your money lives in a 529 plan? A savings account? A checking account?
  • What are the restrictions on a 529 plan?
  • What if you or your kid needs a laptop? To get married? To buy a car?
  • How does the money work double duty?
  • How can you pay for college tuition and long term care?
  • How can you pay for college tuition and retirement?
  • How can you pay for college tuition without going broke?
  • How can you pay for college tuition without being a burden on your kids, financially, as you age?
  • How can you get federal student loans that are subsidized?
  • How do subsidized loans work well with a Bank on Yourself policy?
  • Would you like 0% interest for four years?
  • How can you wipe out student loan debt with a Bank on Yourself policy?
  • What happens to your plan at the end? Do you have to work on it or does it self complete?

Episode 26: Paying for College? What are my options?

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In this episode, we ask:

  • If college aid is so complicated, why are we expected to do this on our own?
  • Can an accountant help with college planning?
  • How do I find a college funding specialist?
  • How is paying for college like flying on an airplane?
  • What’s Holly’s story with flying?
  • What key questions should you ask a potential college specialist?
    • What exactly are you going to do for me?
    • Can you make this problem go away?
    • Are you going to help me with my income and asset allocation?
    • Will you help me pick a school?
    • Will you help me fill out forms correctly?
    • Will you help me negotiate?
    • Will you make sure that I get a fair offer?
    • Can you eliminate the administrative errors?
    • Will you integrate sound financial strategies?
    • Do you offer any guarantees?
    • Do you offer a refund if we’re not happy?
    • Will you coach my student?
  • How do the test results matter?
  • How old do my kids need to be to start considering college planning?
  • What years in high school do the financial aid offices look at potential students?
  • How can we get the lowest EFC (expected family contribution) possible?
  • How can we know the chances of a student getting into a certain school?
  • Does your student need an objective third party to talk to (other than parents) about college planning?
  • How can we get more merit-based aid?
  • What’s the difference between a full-ride and having to pay for college?
  • Do you have a negotiator in your corner?
  • Are you interested in knowing what your financial aid package is before you even apply to a certain school?
  • What questions do you have?
  • Would you like to meet with Holly to talk about your college planning needs?
  • How much does the average family receive in financial aid?
  • What is the quote from T. Boone Pickens? “A fool with a plan is better than a genius with none.”
  • Is there life after college?
  • How do you get the best college aid plan possible?

Episode 25: Where Will I Get the Money for College?

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In this episode, we ask:

  • What are the four main sources of college aid?
    • What does the Federal Government offer?
    • What does a work study program offer?
    • What about Stafford and Perkins loans?
      • Who borrows money on these loans?
      • Which loans require cosigning?
        • What happens if your kid quits school or the kid doesn’t find an income stream soon after graduation?
    • What about Parent Plus loans?
    • Which loans balloon or stack up?
    • On which loans are the interest deductible?
    • Is there a Parent Plus loan in your aid package?
    • What does the State Government offer?
    • What about the colleges themselves?
      • How do you get most aid from the college you want to attend?
  • How does one start to plan for sending kids to college?
  • What percentage of FAFSA forms are submitted incorrectly?
  • What happens on October 1st of your high schooler’s senior year?
  • What is the CSS profile form?
  • What paperwork does each higher education institution require?
  • What forms do you need to consider if you are divorced?
  • What happens to the Family Contribution when there are more than 2 parents involved?
  • How does this affect how much aid you’re eligible for?
  • What does each school require?
  • How do you navigate all of this on your own?
  • How might we help you with our tools?
  • Will you pay the sticker price for the school?
  • Are private schools always more expensive than public schools?
  • Do you have to take the award offer as it’s stated?
  • How do you negotiate your award offer?
  • Is your award offer fair?
  • Who do we partner with to review award offers?
  • What laws and amendment have recently been passed regarding education costs?
    • College Cost Reduction Act (2007)
    • American Recovery and Reinvestment Act (2009)
    • American Opportunity Tax Credit Extension (2011)
    • How do these impact how you plan, save and pay for college?
  • When should you start to plan?
  • Who needs to be on your college planning team?
  • What questions should you ask a potential college planning advisor?
  • How can you put you and your child in the best position possible?

Episode 24: How to Pay for College with as Little Out of Pocket as Possible

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In this episode, we ask:

  • If you have a sophomore in high school, how much will college cost for a 4 year public university?
  • How does this affect your unique situation?
  • What are the biggest concerns of college planning?
  • What are the deadlines?
  • What mistakes are common?
  • How much time does the college planning process take?
  • How are you going to pay for college?
  • How might you hurt your kid’s chances for going to a certain school?
  • What about prepaid college tuition?
  • What are five ways people can pay for college?
    • Savings
    • Loans
    • Scholarships
    • Choose a more affordable school
    • Avoid college entirely
  • How much will your existing savings ding you?
  • Are you going to borrow money?
  • Would you like a tax deduction?
  • Would you like a fixed payment or an increasing payment?
  • Would you rather have an interest free loan or a high interest loan?
  • How do subsidized loans work?
  • Of the $275 billion in aid, what percentage came out in the form of scholarships?
  • What is fastweb.com?
  • What are some myths about college planning?
  • Do you make too much money to pay for college?
  • Where does your money live?
  • How does my student’s academic performance affect scholarships?
  • How do schools factor home equity into the equation?
  • Why is college planning so time consuming?
  • Where does the anxiety come from, as we approach the college years?
  • What about the high school guidance counselor?
  • What’s the ratio of student to guidance counselor?
  • What about the college financial aid office counselor?
  • Did you know the IRS will help you prepare your taxes?
  • What’s the formula for determining the cost of college?
  • How do you determine the family need?
  • Who needs proper college planning?
  • How does college funding affect retirement?
  • How do you help your kids get through college without going broke in the process?

Episode 23: 3 Strategies for Becoming A Retirement Planning Expert

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In this episode, we ask:

  • How is “retirement” or receiving passive income like climbing a mountain?
  • How many people make it up Everest?
  • What is it like coming down a mountain?
  • How do we take this finite amount of money and make it last for this unknown number of years?
  • What are the secrets of the Sherpas?
  • What is investment planning designed to do?
  • Why aren’t AUM called Assets Turning into Income?
  • What guarantees are there?
  • What if you have a big IRA with a ton of mutual funds?
  • How long have annuities been around?
  • Which generation in your family was best prepared for retirement?
  • Why are we in a retirement crisis now?
  • What intergenerational cash plays provide security for years to come?
  • What do Congressmen and women have their portfolios wrapped up in?
  • What is our one-two punch strategy for retirement income?
  • How do we work with the problem of longevity?
  • How would it feel if you never ran out of income?
  • How do you know if an annuity is terrible or terrific?
  • How do you know you’re working with the right annuity?
  • How do we work with the need for liquidity?
  • How would it feel if you could access your money anytime without penalty?
  • How do Bank On Yourself® policies factor into retirement?
  • How do we set up pay raises in retirement?
  • How do we work with lump sums and turn that into retirement income?
  • What is laddering?
  • How do we use the “taming the bear” strategy during passive income stages?
  • How do we take income when the market is down?
  • How do you work with an IRA in retirement?
  • How do you work with life insurance loans?
  • Has Wall Street left us stranded at the top of the mountain?
  • Do you want to guess at your retirement income?
  • Do you want the entire pathway down the mountain to be question mark or a certainty?
  • How does retirement income affect quality of life?

Episode 22: [Income in Retirement] What’s Your Magic Number?

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In this episode, we ask:

  • Is income important to you now?
  • Do you see your future self as a stranger?
  • How much do you need coming in?
  • What is the first thing you need to do?
  • What are your expenses?
  • What income do you currently have?
  • Do you qualify to receive Social Security?
  • Will Social Security cover your income needs?
  • How often will your income arrive? i.e. Monthly?
  • Will you have enough?
  • Do you have a gap?
  • What about asset allocations?
  • How does the sequence of how you withdraw affect income?
  • How might we help you?

Episode 21: [Income in Retirement] Streams of Income and Retirement Planning Gotchas

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In this episode, we ask:

  • What are the possible streams of income in retirement?
  • What can you build up now, so you can rely on them later?
  • Would you like passive income? What is passive income?
  • What about passive income from Social Security?
  • What about defined benefit plans?
  • What about personal savings / investments?
  • What about annuity income and life insurance?
  • How much is the average Social Security check?
  • What is the maximum SS amount for this year?
  • What are the best things about Social Security?
  • What do you have set up with your employer?
  • What are the restrictions on defined benefit plans?
  • What are RMDs (Required Minimum Distributions)?
  • When do you have to start taking RMDs?
  • Which plans are considered qualified plans?
  • What is the penalty for not taking RMDs?
  • How does qualified plan savings affect Social Security?
  • What happens at age 70.5? How much does the IRS charge each year in retirement?
  • Who sets the interest rates?
  • How do you allocate your assets to become income providing?
  • What are dividends? How do they help generate income?
  • What streams of income are taxable?
  • What about CDs?
  • What are some efficient ways to generate income?
  • What about cryptocurrency?
  • What about Whole Life Insurance and Annuities?
  • What about Bank on Yourself?
  • What income is guaranteed?
  • What about interest rates and dividend rates?
  • What did Mark find at the Oriental Institute on the University of Chicago’s campus?
  • What are some helpful annuities for guaranteed income in retirement?