I'm BACK! Live Q&A
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- Опубліковано 6 сер 2024
- After a long break due to back pain, happy to have a live Q&A tonight. I'll share what's been happening and then answer your questions. To ask a question, use this form: docs.google.com/forms/d/12o8t...
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Timestamps
0:00 - Welcome to the Financial Freedom Show!
0:21 - Changes to chat questions
1:31 - My back
6:20 - Poll
6:33 - Credit cards rewards balance
7:55 - CPSM
13:22 - Warren Buffet
16:35 - Financial Advisors
18:52 - Investing regrets
23:41 - Ways to handle cash in Fidelity
26:27 - Bond allocation/fixed income for taxable account
38:30 - New Poll
41:35 - TLT
44:04 - Style box
49:18 - VGSTX vs VSMGX
56:29 - New Retirement assumptions
1:00:10 - Private Equity Credit
1:01:46 - Balancing allocation towards emerging markets In IRA
1:02:54 - Updating Retire Before Mom & Dad
1:03:40 - Tax loss harvesting
1:04:05 - Boglehead conference 2024
1:07:01 - VMFXX
1:10:44 - Annuities
1:17:22 - Fidelity 2% credit card
1:21:40 - New Retirement subscription
1:25:52 - Reviewing Gold
1:28:15 - Chess
1:29:49 - Announcements
1:33:45 - Financial Freedom
#retirement #investing #robberger
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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On the show I discussed estate taxes. As I noted, you should assume everything I say about taxes is WRONG. I'm not a tax guy. Fortunately, one listener sent me an email correcting my mistakes. Here is his email. Keep in mind, this isn't legal advice and you should seek the help of a trust and estates lawyer if you need one:
"Rob, the listener asked you about inheritance taxes, and the answer pivoted to discussing estate taxes. These two taxes are related but not interchangeable. They both are taxes for the transfer of property but the difference is who is responsible for paying it. The recipient is responsible for paying inheritance taxes while the estate (i.e., trustee or executor who is handling the estate after death) is responsible for paying estate taxes. Stated differently, an estate tax is a tax on the transferring of property while an inheritance tax is a tax on receiving property.
In your answer, you discussed a hypo where an individual passes away with a 15 million taxable estate at a time when the exemption is 13.61 million. Your explanation of the logistics is that if one person were the beneficiary, he or she would be taxed on the amount over 13.61; however, if there were two beneficiaries there would be no estate tax due.
Actually, in this hypo there would be an estate tax due over the amount of 13.61 whether there was one, two or thirty beneficiaries. Remember, the tax is a consequence of transferring the assets at death; it is irrelevant to whom it passes or how many.
I'm wondering if you're thinking about giving away money (or assets) during life to multiple beneficiaries. This impacts the annual exclusion for inter vivos gifts. In this scenario, a donor can give up to the annual exclusion (18,000) to as many beneficiaries as he or she wants and there are no tax consequences.
Backing up for a sec, the estate tax and gift tax are linked in that lifetime gifts can reduce the amount of the exemption left at death. For ex, if I give away 1 million at life then my exemption would be reduced to 12.61 at death.
However, a donor can give away up to 18,000 to as many beneficiaries as the donor wants each year and it would not eat into the exemption.
And, by the way, many people think that any amount over 18,000 results in some tax owed. Until one reaches the 13.61 million, the only issue is that a 709 has to be reported to document the gift; no tax is owed. And if there were taxes owed, it would be on the donor, not the donee.
You also discussed ways to get around this IF there were a taxable estate. In a nutshell, if a married couple planned properly, then at the death of the first spouse his or her trust would split into two trusts where one of the trusts would hold the amount over the exemption to avoid all estate taxes at the death of the first spouse.
Now, the assets in this exemption trust would appreciate and NOT be included in the estate of the surviving spouse's death, which means no second step up. This may or may not be ideal.
But if the surviving spouse's estate would not be subject to estate tax for various reasons (e.g., not above the exemption OR a concept called portability where the surviving can carry over the unused exemption from the deceased spouse), then it may make sense from an income-tax perspective to have those assets included in the survivor's estate for a second step up.
There are ways to draft for this.
On another note, many people believe life insurance proceeds are free of tax, but it is generally true only pertaining to income-tax purposes. For estate tax purposes, the death benefit is included in one's estate.
And the one big elephant in the room is state-estate taxes. In Illinois, for example, the estate tax is 4 million so one must prepare their estate plan with that in mind.
Finally, one can name a trust as the beneficiary of a retirement account, e.g., IRA, 401, 457. Generally, this would result in the retirement account needing to be completely distributed out within 5 years because the trust would be deemed a non-designated beneficiary.
However, if the trust meets the criteria of a "qualified trust," it is possible to discard the trust for rmd purposes and use the rules for individuals, which may have a much longer stretch period. "
Wow…. It seems a little ‘complicated’…. 😏
Yes, abdominal core strength helps decrease many spine related issues. One muscle in particular to exercise is piriformis
Rob, look at you “a guy with a UA-cam channel and a microphone “ with 200 thousand subscribers! Your info is the best and want to say thank you for the work. Hope the back continues to improve. Go Bucks
Congrats on 200k!!! Well deserved.
Rob - “Healing Back Pain Naturally” by Art Brownstein, MD. It changed my life.
McGill also recommends if sitting long periods of time get up and stretch over head every 30 min to relieve pressure.
Glad you’re back at it and hope the back gets to 100%
Housing in the military is an allowance just like food and clothing. Allowances are not counted towards Social Security, retired pay compensation if staying for retirement, or TSP if using a percentage of pay calculation. I selected fixed dollar amount for tsp. Disclaimer; I retired in 2015 and how TSP works now I am not up on.
Yeah, yoga and Pilates help me out a lot with my back.
You're back / Your back!
Well done… welcome back!
I’m glad you’re feeling better
good to hear you are feeling better
Welcome Back! Glad to have you back in the saddle.
Love the chapters!
200K, wow! Congratulations, love listening to you
Congrats on 200K Subscribers!!!!
Hope you get better soon
Very glad you are feeling better. Get some rest. It looks like you were suffering a bit. We appreciate that you made it through the show.
🤘 congrats on 200k subs !!!
Get in the pool....water walking and swimming laps . Water does wonders for your back
Most important Q&A of the night 21:59
“Lord willing and the creek don’t rise”… looks like the past couple weeks, the creek rose! Glad your back is feeling better.
Correction for Rob. Robinhood Gold costs $5 per month, of $50 per year. Not $50 per month.
At Schwab it cost $75 to buy a lot of these Vanguard funds. It would be great to have an ETF resource. Which ETFs are equal to each fund?
For the Robinhood transfer, I don't see the cost basis even one month after the transfer. This could be a headache for after-tax account transfer if the cost basis is not carried over.
Isn't the protective put like buying insurance?
basic allowance for housing (BAH) as an allowance doesn't count as income. So, not benefit bearing means a couple of things: first, it doesn't count toward your social security; second, TSP match doesn't include match against BAH. So, if you have a $60k salary with $24k BAH, a 5% TSP match is only match against $60k, not $84k ($60K+$24k). I don't know how that equates to undersaving, except what you concluded if someone were using 20% savings from the 50/30/20 rule on total military compensation rather than what counts toward income. Even then, if you are using the 20% savings rule and you included BAH into your gross or take home, that would mean you would be saving more not less.
Could we get the link to the list of financial advisors that he mentions at 17:00?
Here you go robberger.com/low-cost-financial-advisors/
His website under investing. Looks like he forgot to give the link.
I only know an attorney Jimmy McGill
That’s what I was thinking. 😂
🤙
Egoscue method
Pain free
Why is all this “cash” on Berkshire’s hands not being invested in at least VOO or something similar? That’s almost simply keeping up with inflation these days.
Because VOO is suited to long-term investment not for short-term funds. If VOO suffers a serious decline (a market correction) then it would reduce Berkshire’s cash reserves at precisely the time when Berkshire has historically made large investments: During market corrections. That’s why Berkshire stashes its cash in T-bills.
Lol
They own insurance companies. That is required to cover the once in a century storms happening every year
@@Username_CC_ Berkshire holds far more in short-term assets than required for the insurance float, but yes that's part of it.