Episode #25: In The News: Federal Spending & IRA Contributions

Today’s Prep:

Up, up, up! Today we look at a few things in the news that are going up including federal spending and retirement contribution limits. David discusses these recent items in the headlines and how they can impact your retirement. Then, looking down, we answer a question from the mailbag on how to prepare for a bear market.

(Click the featured times below to jump forward in the episode)

Equipping Points:

[1:25] Federal Spending Out of Control

  • David Walker says federal spending is out of control and there is no party of fiscal responsibility.
  • David responds saying there is not a willingness to reduce spending.
  • Your taxes are going up because they are historically low right now.
  • In retirement, every penny from IRA or 401(k) is taxed as ordinary income.

[5:06] IRA and 401(k) Contribution Limits Increasing

[8:45] Mailbag: Retirement Ready in a Down Market

  • Jon is approaching retirement, and he wants to know the best approach to investing in a down market.
  • David says to keep contributing and make sure to check your allocations.
  • If you can’t withstand a 30-40 percent loss of your invested money, then you have too much risk.
  • Get help from an advisor and make sure you understand how your money is invested.
  • Everyone needs to be prepared mentally for a long rough patch in the market.
  • David explains the current downturn we are experiencing.

Today’s Takeaway:

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More From David:

The host: David Dickens

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