Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®

Ep 64: Investment Lessons To Learn From 2020

What a year 2020 was. Pandemic. Contested elections. Civil unrest. Rollercoaster investment markets.
As Churchill wrote, "Those that fail to learn from history are doomed to repeat it." Listen to Kevin discuss investment lessons you can learn from 2020 to be a smarter investor and keep your retirement on track for years to come.
 
Timestamps:
2:04 - What Stood Out In 2020?
8:02 - The Market Is Forward Looking
11:53 - Make Sure You Are Diversified
13:22 - Politics & The Market
21:57 - Sticking To The Plan
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 63: 3 Ways To Tax-Optimize Your Charitable Giving

Most Americans donate to charity and many have distinct goals in their retirement plan to meet annual charitable donations. Most also give cash ...the easiest but also least tax-efficient way to give.
Hear Kevin discuss three ways to tax-optimize your charitable giving. Whether through in-kind transfers of appreciated stock, using a donor-advised fund, or via Qualified Charitable Distributions, each can help you gain a bigger tax break and meet your charitable goals in the Retire Smarter way.
 
Timestamps:
6:48 - Making Direct Gifts Of Stocks, Or Shares Of Mutual Funds
10:58 - Navigating Donor-Advised Funds
22:05 - Using IRA Money
26:29 - Two More Considerations For QCDs
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 62: Pension Lump Sums: 2021 May Be The Best Year Ever

Pension lump sums will be much higher in 2021 than 2020. Listen to Kevin discuss timing considerations on how to optimize your pension benefits by understanding the key variables that determine your lump sum. Company pension plans specifically discussed include Akron Children's Hospital, Bridgestone, FirstEnergy, Goodyear, Mercy Health, and Rockwell Automation.
Whether you have a pension from your company or not, you'll benefit from this episode. Why? Anyone can invest money with an insurance company and receive a lifetime income in the form of annuity payments. So these considerations are universal in crafting your retirement income plan.
Want more information on pension claiming strategies? Listen to Episode 38. https://www.truewealthdesign.com/ep-38-pension-lump-sum-or-monthly-payment/
 
Check out Episodes 12 & 13 for more details about annuities. https://www.truewealthdesign.com/episode-12-behind-the-curtain-of-annuities-and-free-steak-dinners/
https://www.truewealthdesign.com/episode-13-beating-up-on-variable-annuities/
 
Timestamps:
2:58 - What Has Changed With Pension Lump Sums?
8:56 - Why These Changes Matter
10:33 - Segment Rates
16:11 - What To Expect In The Future
20:39 - Spreadsheet Story
25:04 - Closing Thoughts
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 61: The True Wealth Team Is Growing - Welcoming Ron Wyatt

We're excited to make a big announcement on this episode of Retire Smarter. Kevin is joined by True Wealth Design's newest partner, Ron Wyatt, who brings more than 25 years of financial planning experience to the firm. A lot of existing listeners will be hearing from Ron for the first time, so we'll spend some time today getting to know his background and professional journey. And new listeners will also get to learn more about Kevin's experiences.
The two will also cover why they've chosen to join forces now, and why it's going to be a benefit for all current and future clients. Join us as we celebrate the growing of True Wealth's footprint from northeast Ohio and southwest Florida to Pittsburgh!
 
Timestamps:
1:11 - Introducing Ron Wyatt
2:21 - Ron shares a little about his background
5:58 - Kevin gives a brief review of his background, including his time as a high school physics teacher
8:23 - Kevin tells us about one of his first clients, Tom, and the lessons learned from an emotional meeting in 2009
10:55 - Ron explains why he and Kevin are joining forces at True Wealth Design
16:56 - How does this impact clients? How will their experience change or remain the same with this transition?
24: 53 - Big picture: becoming a "bigger small firm"
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 60: Why The Cheapest Investment Option May Not Be The Best

The purchase price of your car is one factor to consider. But the Total Cost of Ownership -- adding in costs for insurance, fuel, maintenance and repairs, as well as the residual value upon sale -- is a better way to evaluate financial aspects of a car purchase. In doing so, the cheapest vehicle is often more expensive than initially perceived.
Same too goes for selecting investments. Many solely use the expense ratio to determine what fund to buy. But while the expense ratio is important and easily observable, it does not tell the whole story. In fact, it may tell only a small part.
Listen to Kevin describe total investment costs and related factors to consider when choosing your investments. Having a more complete view will help you make smarter decisions.
 
Timestamps:
0:53 - The Election
8:55 - Kevin’s Burrito Story
12:51 - Expense Ratios
17:24 - Securities Lending Revenue
21:16 - Helping A Client Understand This Process
24:49 - How Do You Reach A Conclusion?
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 59: Retiree Health Insurance Part 2: Pre-Medicare

Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before. And, yes, costs may seem sky high after retiring and before Medicare.
Listen in to hear Kevin and health insurance expert Zig Novak discuss health insurance options from the time you retire to before you can begin Medicare at age 65. Should you take COBRA? What types of plans and are available for Affordable Care Act (ACA or Obamacare) plans, and how much do they cost? How do ACA tax credits work, and how valuable are they? Get informed.
Get destressed. Know what you need to about this important topic to Retire Smarter.
 
Timestamps:
4:00 - Pre-65 Healthcare Planning
8:15 - Floating Cobra
14:27 - ACA Plans
26:00 - Tax Credits
31:37 - Verifying Your Income
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 58: Retiree Health Insurance Part 1: Medicare

Healthcare is a primary concern, especially for retirees. Transitioning from employer-provided coverage you've been on for decades is stressful. Now you have more complexity and choices than ever before.
Listen in to hear Kevin and health insurance expert Zig Novak discuss Medicare-related topics. What will it cost? How may costs change as you age? What are the pros and cons of supplemental and advantage plans, and how do you decide which may be better for you?
Get informed with useful information to help you Retire Smarter.
 
Timestamps:
2:56 - Special Guest Zig Novak
5:18 - Alphabet Soup Of Medicare
8:09 - The Costs Of The Different Parts
21:28 - Services That Medicare Doesn’t Cover
23:24 - Advantage Versus Supplemental Plans
33:25 - Switching Between Plans
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 57: A Tale of Two Decades

Proper investment diversification works ... even when you don't want it to. With the US stock market and particularly large technology stocks having the wind at their backs recently, many are eschewing diversification to chase these high flyers.
As the saying goes, if we forget history, we are doomed to repeat it. In that spirit, hear Kevin tell a tale of two decades.
First is the Lost Decade of the 2000s when, after the Tech Bubble burst, US investors lost money for an entire decade from 2000 to 2009. Second is the recent decade from 2010 to 2019 where US stocks screamed. The two are starkly different and instructive. Combining the entire 20 years allows you to clearly see the benefits of discipline and diversification.
What will the 2020s hold? Only time will tell, but today resembles the late 1990s in some ways. Importantly, in retirement, you can't afford to have a Lost Decade.
 
Timestamps:
6:15 - The Problem With Stock Splits
13:41 - Our Current Environment Is Similar To The Late 1990’s
18:50 - Areas That Are Not Doing Well
22:11 - The Way Diversification Works
25:12 - Avoiding Recency Bias
 
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth

Ep 56: Should The Election Influence Your Investing Strategy?

Biden or Trump? Republicans or Democrats? Who will be better for the economy and your investments? These are questions many are asking with the election quickly approaching.
Many let their political beliefs influence their investment strategy, but should they? Hear Kevin discuss what the evidence shows and how our political beliefs may influence our perceptions of reality. Get ready to check your alternative facts at the door and get real.
 
Timestamps:
6:24 - Keep Politics Separate From Investing
10:47 - Pew Research Poll
14:33 - Perception Becomes Reality
19:49 - Peter Schiff Making The Right Economic Call, But Not The Right Investing Call
29:39 - We Have Beliefs, But 200 Years Of History Is More Insightful

Ep 55: Roth Conversion: Why 2020 Could Be The Best Year

Paying a lower tax rate today vs. what you would otherwise pay in the future on pre-tax IRA/401k dollars is a good move. They way you can do so is by converting money to a Roth IRA and paying tax in the year of the conversion.
The 2017 Tax Cuts and Jobs Act (TCJA) lowered tax rates and significantly widened tax brackets on individuals. Current law has the tax rates under the TCJA in effect through the 2025 tax year and increasing to pre-TCJA rates and brackets in 2026.
Yet, tax rates may go higher sooner. Many election models are currently forecasting Biden to win and for the Senate to flip blue. Assuming these come to fruition, the Biden Tax Plan calls for tax increases to occur before 2026. Then there are the trillions of dollars in unprecedented fiscal stimulus added to the government’s books to deal with the COVID crisis. At some point, the mounting debt has to be paid for, and various taxes are the way it must be paid.
Thus 2020 may be the last best year for conversions. Hear Kevin discuss these considerations in detail to empower you to take action to reduce your tax risk and improve your after-tax, spendable wealth.
 
Timestamps:
4:16 - Why Roth Conversions Should Be Considered Right Now
12:34 - Current Law 
16:09 - What Could Be Potentially Coming Down The Road
20:15 - Items To Consider When Tax Planning
25:55 - Sense Of Urgency