Episode 154: Best Of 2021 Listener Questions
Today’s Prep:
What are some of the top questions David received this year? We revisit five questions from the mailbag before ringing in the new year.
Equipping Points:
As we wrap up our year, we look back on some of the top questions submitted in 2021. Whether you missed them the first time around or need a refresher, these five questions are sure to bring a little extra clarity as we enter into the new year.
When trying to avoid probate, you may be tempted to add your children as an owner on your home like Terry did in a past episode. Is this a wise decision? David describes what kind of liability issues this could cause in case the worst were to happen. Instead, you may want to try to name him as a beneficiary through a transfer on death deed. Make sure you have the exact legal description of your piece of property when you go to file the paperwork with the county.
Kate has made a lot of money from Apple stock over the years but is worried now about the taxes when she sells the stock. Should she try to capture the gains or prioritize keeping her taxes low? David explains what her options are, depending on her situation.
Christopher is turning 70 and is annoyed about having to taking money out of his IRA soon. What can be done to avoid required minimum distributions? First David shares why you even have RMDs and when you need to start worrying about it. How will it be taxed? While you can’t get out of RMDs, you do have a few options to help reduce them a little now before you start having to take them through things like a Roth conversion, a reverse rollover, or a qualified charitable distribution.
If your year took a different turn like Greg, you may be wondering what to do with an early retirement package. Should you take a severance package with a pension buyout? This all comes down to your desired lifestyle in retirement. Consider whether or not the severance package provides enough for you to retire or if you will still have to get another job. When it comes to a pension, should you do a lump sum rollover or wait to start it at 65? David talks through the different benefits of each option while factoring in your family needs or inflation.
Mary has been maxing out her HSA contributions for the past few years and feels ready for the next step. Should she use the auto-advisor investor tool (a robo-advisor) to invest additional HSA funds? If you’re young and have a reasonable risk tolerance, go more toward stock, which is likely where a target date fund will put you. If you’re closer to retirement age, you may want to work with an advisor to strategize accordingly.
Listen to the full episode or skip around to certain topics.
1:15 - Is it a good idea to put my son as a joint owner on our home?
5:20 - Should I sell my stock or pay more attention to the tax bill?
8:45 - What can you do about RMDs?
13:37 - Should I consider an early retirement package?
17:54 - Should I use a robo-advisor for my HSA investment?
Today’s Takeaway:
“If you have don’t one, you absolutely need to establish an HSA and contribute to it. "
– David Dickens
KC Financial Advisors Blog


