Your Money & Your Life Podcast

What is ESG Investing? Don’t Get Fooled

This episode will help explain what ESG investing is and how it impacts your retirement planning. Plus, are these investments actually helping the environment and why is the government getting involved? Don Cash will sort out a lot of the facts on this topic so you’ll be more informed.
Here’s some of what we discuss in this episode:
What is ESG investing and why we’re talking about this today? (3:00)
Some background on how this began and where the money is being made. (5:33)
The fees can be significantly different for these investments. (8:22)
What classifies a company as an ESG company? (11:10)
What is the government’s role in all of this? (13:48)
Get in touch with Don and learn more: https://doncashpodcast.com/

Is Social Security Going Broke? Myths, Truths & Opportunities

What we want to do in this episode is make sense of what exactly is happening with Social Security and which concerns are legit and which ones might be overblown. This isn’t the first time Social Security has had to make adjustments since it was originally introduced in 1935, and we’ll take you through what has changed over the past nearly 90 years.
 
Here’s some of what we discuss in this episode:
Historical background on where we got to where we are today with Social Security. (4:11)
Here are the facts around Social Security right now. (7:57)
Why do we keep hearing about bankruptcy and whether the benefits will be gone soon? (10:11)
This isn’t the first time changes have been made to Social Security. (12:31)
What changes could be considered in the near future? (16:49)
Do you ever make too much money to qualify for Social Security? (23:12)
 
Additional Resources: 
Proposed SS changes - https://www.ssa.gov/OACT/solvency/
The Social Security Trust fund - https://www.ssa.gov/news/press/factsheets/WhatAreTheTrust.htm
 
Get in touch with Don and learn more: https://doncashpodcast.com/

Threats, Traps, and Tips for Tax Season

Tax season is officially here for 2023 and while many of us will slowly ease into it, now is the time to start thinking about what you need to accomplish over the next few months.
In this episode, Don is going to help you prepare for tax season by explaining the key documents that you’ll want to be on the lookout for, highlighting the financial planning conversations you need to be having with your advisor, and sharing a few tips for finding the right CPA.
 
Here’s some of what we discuss in this episode:
A new tax deadline for 2023. (4:11)
The most common forms you’ll need to be on the lookout for. (7:37)
The top financial planning action points to be considering. (12:04)
What type of CPA would be the best fit for you? (17:28)
Be mindful of these two things when preparing taxes with a CPA. (20:17)
The most common missed tax planning opportunities. (23:13)
 
Additional resources to help you with tax season: 
Groundhog Day - https://www.cnn.com/2023/02/02/us/groundhog-day-punxsutawney-phil-2023-trnd/index.html
 
Tax forms for 2022 filing - https://www.fool.com/taxes/the-13-most-common-tax-forms/
 
Tax Forms for retirees - https://advancedretirementstrategies.com/retiree-tax-document-checklist-what-documents-do-i-need-to-file-taxes/
 
Key Filing dates for 2022 Tax season - https://www.usatoday.com/story/money/taxes/2023/01/09/irs-taxes-file-efile-2023/11018054002/
 
IRA contribution rules - https://www.kiplinger.com/retirement/retirement-plans/traditional-ira/603958/traditional-ira-contribution-limits-for-2022
 
Get in touch with Don and learn more: https://doncashpodcast.com/

Landmines and Opportunities in SECURE Act 2.0

Another round of retirement changes are on the way after President Biden passed SECURE Act 2.0 into law on December 23rd. While we’ve been anticipating this legislation for a while, we didn’t know exactly what we be in the final bill.
Retirees and pre-retirees need to spend some time with their advisor to discuss what this legislation means, how it might impact you, and what planning opportunities this could open up.
 
Here’s some of what we discuss in this episode:
The required minimum distribution age moved back again. (4:11)
The complications with taxes surrounding Inherited IRAs still remain. (11:41)
Significant changes to workplace plans (17:10)
An update on the New Jersey ANCHOR program (21:45)
Don’s overall opinion on SECURE Act 2.0. (27:57)
 
Get in touch with Don and learn more: https://doncashpodcast.com/
 

2022 Year in Review

Market volatility became the norm in 2022. In this episode, we will be discussing the ups and downs of the last year, from volatility to celebrity news.
Here's some of what we discuss in this episode:
Current inflation and the outlook for next year. (5:19)
Examples of volatility throughout this last year. (14:47)
Big events/drama that happened in 2022. (20:34)
Get additional financial information: https://doncashpodcast.com/episodes/

Year End Planning (It’s Not Too Late)

We are heading toward Christmas and The New Year at lightning speed. We are only weeks away from 2023. 
It looks like we came off Black Friday and Cyber Monday with lots of shoppers and over the past week we have had better-than-expected economic data, yet the stock market has dropped. What are we to make of that??
Right now, all of the pundits are trying to read the tea leaves (so to speak) about what is likely to happen at the next Federal Reserve Meeting this week.
Oddly enough, it seems like bad economic news – higher unemployment, weaker consumer spending, and home sales are good for the stock market. It means the Federal Reserve is likely to hit the brakes on rate increases.
A few things to keep in mind as we head into 2023. 
The law pending in Washington to change the IRA rules yet again has not yet been signed into law. They are calling this The Secure Act 2.0, the changes are designed to do things like - 
Expanded access to retirement plans at work. Additional investment options; Increase savings. Simpler plan administration.
The big change for many people planning is a change to the age of the fist Required IRA distribution age from 72 to 73,74,75. This should be known as the “First Mandatory Income Tax Age” for your IRA. The IRS forces you to take money from your IRA and pay taxes. 
Will the Bill pass this year or next year?
So, what moves can people consider now in their end-of-year planning?
A few things come to mind when we do year-end planning with clients –
Roth Conversions – 
The historically low tax rates that exist now expire BY LAW in 3 years. We have an opportunity to move money from the tax later bucket (Traditional IRA) to the tax never bucket (The Roth IRA)
Strategize charitable deductions – 
Last year there was a $300 or $600 donation deduction for non-itemizers. NOT this year. However, due to the increase in the standard deduction in the 2017 tax change.  Currently, 87% of people take a standard deduction. If you are married it’s almost $26,000, If you are over 65 it’s about $29,000.  Why not consider “bunching” your charitable contributions?
What about gifting from an IRA?
That is a great move for someone over the age of 70 1/2 The gift is Called a Qualified Charitable Distribution 
Is this an option for you?
We hope you enjoyed your Thanksgiving and are looking forward to the upcoming holidays. 
 
Here's some of what we discuss in this episode:
How economic news affects the stock market. (3:44)
We discuss the first required IRA distribution age changes. (6:20)
What to consider if you’re in a higher tax bracket or don’t plan on leaving wealth to family. (10:31)
 
Get additional financial information: https://doncashpodcast.com/episodes/

The FTX Scandal: The Difference Between Wisdom & Knowledge

Happy Thanksgiving!
We wish you all the blessings of the holiday as we spend time with family and friends and gather for the long Holiday weekend.
As we rapidly move From Thanksgiving into the Christmas season and New Year’s Day (I can’t believe it’s almost 2023), we want to talk about finishing strong as well as touch on the difference between knowledge and wisdom, the big FTX scandal, and how good thinking affects our planning decisions and helps us avoid disasters.
The FTX bankruptcy is a huge scandal. It comes from the Theranos health technology outrage earlier in the year.
It’s pretty complex but comes down to the fact that a lot of smart young people, mainly only in their late 20’s ran the company and many smart hedge funds and investors lost a lot of money. It’s a collapse that rivals Enron and Lehman brothers.
FTX was basically a cryptocurrency exchange that traded a variety of digital tokens like Bitcoin, Ethereum, Dogecoin, and many others. The entire house of cards came crashing down last week. Billions of dollars just vanished overnight. The CEO, a guy called Sam Bankman-Fried AKA SBF is on the run somewhere in the Bahamas, Dubai, or Hong Kong trying to escape extradition. The young man who ran the company SBF started the company at age 27 only 3 years ago.
It went from a value of zero to 35 billion in 2 years. (1 st red flag) However, he was a super smart MIT graduate who dressed in ratty tee shirts, wore shorts, white sox, and sneakers with a mop of unkempt hair. He purported to “not care” about money and was interested in “Effective Altruism”, the idea of doing the best with money, which is a great idea. It attracted a lot of smart young people to the company and a lot of investors too. However, it was used as a front and type of “virtue signal” saying 'look at how good a person I am'.
You may not have heard much about this company, but your kids and grandkids know about it and may have been sucked into it. FTX ran ads all over social media and spent tens of millions of dollars on Super Bowl Ads with celebrities pitching the scheme. (Tip – Tom Brady doesn’t know much about Cryptocurrency)
How do people get sucked into these things?
Often, it comes down to understanding the difference between Knowledge and Wisdom and not asking the right questions. Wisdom is defined as the quality of having experience, knowledge, and good judgment often developed over many years of living.
Many of us have lived long enough and saved diligently over a long period of time and made mostly good decisions that have averted these types of scandals. (Some have not) However, when it comes to scams like FTX many young people in our lives fall victim to the lure of technology, easy money, and the story of saving the world by “effective altruism”. The wise people ask questions and many just know from experience if something looks and seems too good to be true.
Be sure to ask the right questions.
Finally, let’s reflect this week on all of the good things that we are thankful for like living in this country, family, friends, freedom health, and remember and help those who are struggling without these things.
Happy Thanksgiving!
Don
 
For those who liked to read “Cliff Notes” in college here are the themes and time stamps:
Have you heard about the FTX scandal? Here are the details. (5:50)
How people fell for FTX and why you must be careful not to confuse knowledge and wisdom. (12:12)
Sometimes wanting to believe in something you shouldn’t, can get you into trouble. (14:56)
 
Get additional financial information: https://doncashpodcast.com/episodes/

The Elections are Over! Now What?

The elections are over! (At least most of them are) Now what?
It seems like, over the past month, we have been bombarded with nasty political ads or commercials by Joe Namath, Jimmy JJ Walker, and Tom Selleck pitching Medicare plans. At least the political ads are over for now (except for Georgia). We just have to put up with the Medicare ads for the next month.
In this episode, we discuss the election results and the effects on our planning for the remainder of this year and into 2023. Can you believe it’s only 6 weeks away? It looks like the next two years will bring a solidly divided government. What will that mean to you and your family?
I’ll bet you didn’t know – Every year since 1950 after a midterm election, the stock market has gone up regardless of the party in power! Past performance is no guarantee of future performance (You knew I would say that). Of course, this year came with a very volatile market; interest rates, a war overseas, and soaring inflation, and it’s left many anxiously attempting to search for answers.
Let’s take look a look at history and some facts that might bringsome clarity for the future.
Here’s some of what you’ll learn in this episode:
Here we discuss how the market changes during elections. (7:15)
How current issues and market changes reflect history. (12:52)
Some big changes you should expect in the future. (20:00)
 
Additional resources: 
https://www.prnewswire.com/news-releases/despite-recent-sp-losses-of-nearly-25-federal-government-still-requires-retirement-withdraws--nationally-recognized-ira-expert-donald-w-cash-interviewed-by-the-wall-street-journal-301670524.html