Today’s Smart Money Question:

We love to feature your questions on the podcast. Join us as we answer your email questions on Social Security, market recessions, and inherited stocks.

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

Here Are Just A Handful Of Things You’ll Learn:

[2:02] – When To Start Your Social Security.

• Angie is planning to retire at 60, but she’d like to delay the start of her Social Security until she turns 66. She wants to know if it’s unwise for her to live on her savings for that many years.

[2:22] – Angie Needs To Define “Savings.”

• To answer Angie’s question, we need to determine what she means by savings. Each account functions differently, and each account comes with its own set of tax consequences as well.

[2:46] – Matt Explains The Concept Of A “Doughnut Hole.” 

• Matt shares the story of a client who found himself in the “doughnut hole,” meaning this client’s wife was retired yet not eligible to receive Medicare.

[7:12] – How To Survive A Market Recession. 

• Lockheart wants to know how to prepare for a market downturn as she nears retirement. Of course, the same question could be asked about a bull market. Regardless of the market’s movement, you want to put your money in different areas. Some of your money needs to be protected, while other parts of your wealth should remain invested in the market.

[9:09] – Matt Shares His Take On The Current State Of Wall Street.

• Pundits are always going to wax poetically about the doom and gloom on Wall Street. Others will laud its ability to create wealth. The trick is to ignore the financial noise and stick to your plan.

[13:40] – Gretchen Has A Large Tax Burden On Her Hands.

• Gretchen inherited several stocks and mutual funds from a relative. A stock broker friend is telling her the IRS will tax her investments as gains, simply because she doesn’t know the starting price of these investments. She wants to know if this is accurate.

[14:20] – Answering Gretchen’s Question.

• The short answer is it depends. We’re not a CPA or a tax attorney, but we can tell you it depends on the type of account in which those investments were housed. It’s important to determine where the money originated. Furthermore, it depends on where you live. Each state has its own regulations regarding inheritance taxes.

[22:43] – Matt Shares A Bit Of News.

• Walter is stepping away from the podcast. While we’re sad to see him go, we’re excited bring new guests on the podcast in 2019. We plan to feature other advisors, current clients, and experts in other fields as we seek to continue answering your questions about retirement.

The Answer:

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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003