Coasting in Retirement is dedicated to the financial planning and investment management needs of pre-retirees and retirees living an active lifestyle along our part of the Gulf Coast. Host Josh Null and co-host Michelle Melton dive into relevant financial topics, plus have a little fun with the "Michelle with the News of the Week" and "Josh's Crystal Ball & Big Mouth" segments. Josh's practice Gulf Coast Financial Advisors serves clients in the Panhandle of Florida, Lower Alabama, and the Gulf Coast of Mississippi and Louisiana. You can hear the original broadcast of Coasting in Retirement every Sunday from Noon to 1 PM CT on 106.5 FM in Mobile, Alabama.
Investors that read financial news have undoubtably noticed recent headlines like “bond yields hit multi decade high” and “the bond yield curve has inverted, which is a leading indicator of a coming recession”. Why should those of you in or near retirement pay attention to bond yields? We’re going to attempt to answer this question.
As the old saying goes, there’s no such thing as a free lunch, and that applies to your investments. Whether you’re a do-it-yourselfer paying 6 bips using low-cost index funds, or you’re a variable annuity customer paying over 300 basis points(!), you’re paying someone a certain amount to invest your money. The question becomes – are you getting what you paid for?
Rule 72(t) is a section of the IRS code that covers the exceptions and processes that allow you to withdraw money from your qualified retirement accounts be age 59 ½ and not pay the typical 10th early withdrawal penalty.
A Roth Conversion is a pretty simple concept to grasp. Basically, you take a withdrawal from the assets that you have accumulated in a pre-tax qualified account, or in plain English, a traditional IRA, and then that withdrawal is deposited into a Roth IRA account soon thereafter.
What if I told you that there is process that involves both forward looking tax planning and systematically looking into every nook and cranny for tax efficiencies? Would you be interested?
Do you enter into a buy-sell agreement with a partner? If you don’t have a partner, do you bring one on? Do you transition the business to the next generation of family? Do you sell it to the employees? Do you sell it to a third party? And of course, the million dollar question is…what is it even worth?