The Financial Answer with Nathan O’Bryant

We’re back to breaking down the SECURE Act once again on the podcast. Back in July, we covered a couple of the provisions under the proposed act like penalty-free distributions for the birth or adoption of a child, tax credits, and the lifetime income disclosure for defined contribution plans. But we only briefly touched on the removal of provisions for the Stretch IRA. On this episode, we’ll spend some more time on the Stretch IRA and how the SECURE Act could reshape it if it passes into law.
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1:32 – A refresher of what the SECURE Act is.
2:10 – Myth: The Stretch IRA isn’t being fully “shut down”. It’s being changed, but not necessarily eliminated.
3:23 – It really impacts high earners because of how quickly you’ll have to withdraw large sums.
5:10 – Does this also impact inherited IRAs?
5:56 – The rule could go in place by end of the year.
6:38 – Could people still do a spousal rollover?
7:18 – Nathan & Marc play out a hypothetical situation of what someone will need to do once the law passes.

If you’re someone that keeps a close eye on the stock market, it’s going to be impossible to miss the dips. That’s especially true when the market drops close to 10 percent, which happened recently. This is never easy to stomach but understanding how common this is and what you can do to offset these losses will ease your mind.
Check out the show notes by clicking here.
Today's rundown:
0:54 – It’s been a big week in Nathan’s life.
1:47 – Ways to fight the fears during a market decline.
2:38 – Loss of money creates a stronger reaction than earning money.
3:41 – Market declines are part of investing.
4:41 – 10% dips every year are common, even during this 10-year bull run.
5:33 – You only have to go back to December 2018 to see the last big dip.
7:12 – Diversification matters and this is a time you really see why.
9:03 – Best performing assets vs the worst performing in recent years.
10:33 – How to counter-balance your stocks with something less volatile.
11:33 – Why every portfolio should have fixed income.

Ever stop to think about what happens to all of your online accounts when you die? Does someone else have the password in order to gain access just in case? Making a plan for this now will make it easier on your loved ones.
Check out the full show notes here.

We all want it, but what exactly is financial security? Everyone defines it differently and today will discuss some of those meanings. But first, in the news, we talk about how technology is changing the road ahead (literally!) and what that means as an investor.
Check out the full show notes for this episode by clicking here. 

Did you know…? Looking at some crazy and random financial facts can be fun, interesting, and at times, even a bit confusing. Maybe you know where the stock market is now, but do you know what it looked like in the 1970s? What about the 1930s? We’ve come a long way, and it’s important to understand the facts of the past in order to know what to do in the present.
Read more on this topic and see the show notes here. 

We’ve been trained to believe that more is better but is that always true in the financial world? Having more than one advisor might seem like a great way to diversify your portfolio, but can it end up doing you more harm than good? This episode focuses on that topic to help you decide what will benefit you the most.
To read more about this topic and see the show notes, click here. 

The SECURE Act will bring several changes that may impact your retirement planning, and Nathan will go over four more of those provisions. This concludes our two-part series on the SECURE Act 2019.
Full show notes: https://thefinancialanswer.com/podcasts/understanding-the-secure-act-part-2/

Recently passed through the House, the SECURE Act has a lot of new retirement implications. You’ll want to hear the next two episodes of the podcast as we break down the act in a two-part series. We’ll cover what this might mean for your retirement plan.
 
Confidence Corner
1:34 All about the SECURE Act of 2019
First major retirement legislation since 2006.
SECURE Act stands for “Setting Every Community Up for Retirement Enhancement” Act.
Passed through the House but still has to go through the Senate.
4:42 Small business retirement plans
Title 1, Section 101 will help small business employers to increase access to retirement plans.
The majority of Americans are employed by small business owners. It will give the employer tax benefits.
For small companies, 401(k) costs are big, so this will help incentivize small business owners. To do this, businesses will be lumped together potentially to the share the cost of a retirement plan.
7:56 Increased annuity options inside retirement plans
A lot of 401(k)s allow annuitization options when you retire in order to turn your 401(k) into a pension. This will be a required option inside the 401(k)s to provide a guaranteed number.
10:29 Increasing the RMD age
This is what is gaining the most publicity. Right now, you have to take required monthly distributions at age 70 and a half. Under this bill, that will increase to 72 years old.
People are living longer, so this may help spread the distributions out.
For a lot of people, Nathan doesn’t feel like this will make enough of a difference. If people need to take these distributions earlier anyway, then it’s not as big of a benefit.
15:01 Removing age limitations on IRA contributions
Right now, you cannot contribute to an IRA after age 70 and a half due to RMDs.
If you are still working, you can continue to contribute to a 401(k) or a Roth.
 
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 Presidents are known for leaving us with memorable quotes that live on for decades after they’ve left office. On today’s show, we’ll take a look at some famous presidential quotes and see what financial planning lessons we can extract. And in current events, Nathan will take stock in how the market is currently performing (pun intended).
 Full show notes here: https://thefinancialanswer.com/podcasts/presidential-financial-planning/

There are lots of theories and techniques that no matter what, just doesn’t work. On the podcast today, Nathan will respond to some of these common ideas in the financial world (as well as a few fun ones outside of it). Have you tried any of these?
Check out the full show notes of this episode: https://thefinancialanswer.com/podcasts/stuff-that-doesnt-work/