Your Money & Your Life Podcast

As we approach the first week of May with tax season behind us, it’s the perfect time to look ahead. With the Tax Cuts and Jobs Act set to expire at the end of 2025, some big changes are in store for the next two years from a tax standpoint. In today’s episode, Don will dive into the changes you need to be aware of for 2024 and beyond.

Here’s some of what we discuss in this episode:

• Changes in the capital gains rule for homeowners + potential planning mistakes with property ownership
• The evolution of the taxation of Social Security benefits over the years
• The importance of integrating Social Security decisions into an overall retirement plan
• Keeping an eye on federal and state estate taxes + the importance of comprehensive estate planning

Get in touch with Don and learn more: https://doncashpodcast.com/

Did you know that roughly 50% of people over 50 lack essential legal documents, such as wills, power of attorney, and healthcare directives? The numbers are even more concerning for younger demographics, with 80% of those under 30 lacking any basic documents. With over $84 trillion in assets set to transfer to the next generation, ensuring your estate is in order has never been more important.

Here’s some of what we discuss in this episode:

• The percentages of individuals across different age groups lacking essential estate planning documents
• The importance of powers of attorney and healthcare directives once one turns 18
• Outdated legal documents, misplacing wills, and updating your estate planning materials as life changes
• Understanding IRA estate rules to avoid complications and tax liabilities
• Carefully selecting executors and trustees + sharing passwords and communicating intentions with family members

Get in touch with Don and learn more: https://doncashpodcast.com/

Spring has sprung, pollen is in the air, and we are in the middle of college basketball March Madness! With tax season also approaching, Don and Marc are here to talk about Health Savings Accounts (HSAs) and the wealth of opportunities they can provide for savers and investors. Listen in as they share some benefits of contributing to an HSA, including significant tax deductions and tax-free withdrawals for qualified medical expenses.

Here’s some of what we discuss in this episode:

• How HSAs work + a little history
• The difference between the HSA-eligible health plan and the health savings account
• The tax benefits an HSA offers + some potential downsides to consider
• The nuances of HSAs for individuals over 65 + strategic approaches for managing HSA funds post-retirement
• Considering HSA depletion rules + keeping proper records

Resources:

IRS Rules for HSAs – Publication 969

https://www.irs.gov/publications/p969

HSA benefits that may surprise you –

https://irahelp.com/slottreport/hsa-benefits-may-surprise-you/

5 HSA rules you need to know –

https://irahelp.com/slottreport/5-hsa-rules-you-need-know/

Get the most out of your HSA – Wall Street Journal –

https://www.wsj.com/buyside/personal-finance/what-is-an-hsa-dff3eb55?st=rxd75zyho7lfd45&reflink=desktopwebshare_permalink

Get in touch with Don and learn more: https://doncashpodcast.com/

In our last episode, we teased a discussion about long-term care insurance deductions and health savings accounts but ran out of time. Don't worry though, because today we're diving deep into these important topics.

Here’s some of what we discuss in this episode:

• Don’s recent conference in Arizona + self-driving cars
• The high cost of assisted living and long-term care + considerations for itemizing deductions on tax returns
• Some missed opportunities that Don often sees when it comes to medical expenses
• How deductions work for life care retirement communities
• Alternate ways to deduct medical expenses for self-employed individuals using Schedule 1 on the 1040 form

Resources for this episode:

Tax forms –1040 form

https://www.irs.gov/pub/irs-pdf/f1040.pdf

Schedule 1 – Income & Adjustments

https://www.irs.gov/pub/irs-pdf/f1040s1.pdf

Schedule A –

https://www.irs.gov/pub/irs-pdf/f1040sa.pdf

Standard Deductions and Tax Brackets – 2023

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

Long-Term Care Insurance Tax Deductions –

https://apps.irs.gov/app/vita/content/00/00_25_005.jsp

Waymo Driverless Cars –

https://waymo.com/

Get in touch with Don and learn more: https://doncashpodcast.com/

Punxsutawney Phil did not see his shadow, the Kansas City Chiefs won the Super Bowl, and Valentine’s Day is here. It’s a busy time of year, and while “Be my little tax deduction” isn’t the most romantic thing to say to your spouse this holiday, we’re going to discuss a tax deduction you can make for your Valentine before April 15th in today’s show.

Here’s some of what we discuss in this episode:

• The randomness and unpredictability of Groundhog’s Day, the Super Bowl, and the stock market
• What is a spousal IRA contribution and how does it differ from a normal IRA contribution?
• How can spousal IRA contributions benefit retirees and pre-retirees in terms of tax deductions and retirement savings?
• The implications of IRA contributions for individuals over age 73 + alternative retirement savings options for self-employed individuals

Resources for this episode:

Wall Street Journal Article – Spousal IRAs

https://www.wsj.com/personal-finance/retirement/theres-still-a-way-to-double-your-retirement-tax-breaks-before-filing-0f689dc1?st=cssro7zcnwkzp8r&reflink=desktopwebshare_permalink

Income limits for IRA deductions

https://www.irs.gov/retirement-plans/2023-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work

Get in touch with Don and learn more: https://doncashpodcast.com/

In celebration of the holiday this week, we thought we’d have a little fun and see what the movie “Groundhog Day,” starring Bill Murray and Andy MacDowell, can teach us about successful retirement planning. Just like Bill Murray’s character, Phil, is forced to relive the same day over and over and learn from his mistakes, retirement planning is an ongoing journey that calls for adaptability, continuous learning, and a commitment to positive change.

Here’s some of what we discuss in this episode:

• The cyclical process of retirement planning + the role of annual rituals and reviews throughout the process
• Getting burned by trying to predict the future when it comes to financial investments + the importance of financial preparedness
• Learning from past financial mistakes and not repeating them
• Adapting to changes in income, expenses, investment performance, health, and more
• How small changes in financial planning can lead to big results

Get in touch with Don and learn more: https://doncashpodcast.com/

It’s that time again when the world attempts to foresee the twists and turns the coming months might bring. As the air buzzes with predictions and forecasts, it's worth stepping back and glancing at the rearview mirror of history. In it, you’ll see that predicting the future isn’t as easy as it seems.

Here’s some of what we discuss in this episode:

• Despite positive economic indicators and predictions, the stock market and investors suffered in 2022
• Despite concerns such as a softening job market, high office vacancies, and geopolitical tensions in the Middle East, the end of 2023 saw a surprising global market rally
• The unpredictability of the future and the impact of past events in shaping the future
• The overwhelming nature of the news + having a financial plan, purpose, and philosophy for your money
• Don’s formula for clarity and confidence in financial planning: C > I + E + P x M (Cognitive Thinking greater than Instinct + Emotion + Perception multiplied by Media)

Episode Resources

Bad News For the Economy is Good News for the Stock Market

https://www.cnbc.com/2023/11/03/bad-news-for-the-economy-is-good-news-for-the-stock-market-as-long-as-it-doesnt-get-too-bad.html%20

The Future is Bright If You Know Where To Look

https://www.wsj.com/tech/ai/the-future-is-bright-if-you-know-where-to-look-98874b3d?st=qz6edtiza4mgqna&reflink=desktopwebshare_permalink%20The%20Future%20Is%20Unpredictable%20Even%20When%20It%E2%80%99s%20Certain%20

The Future Is Unpredictable Even When It's Certain

https://www.wsj.com/articles/the-future-is-unpredictable-even-when-its-certain-2024-political-cycle-71996049?st=nqlq0lflg6nwlg5&reflink=desktopwebshare_permalink

Get in touch with Don and learn more: https://doncashpodcast.com/

The new year is upon us, so we thought we’d take this time to reflect on the past year and chat about starting the new year on the right footing. Join Don and Marc as they discuss a wide array of topics, ranging from health concerns to retirement, relationships, and unexpected global events that took place in 2023.

Here’s some of what we discuss in this episode:

• Some interesting facts on New Year's resolutions in America
• Mental health, social media addictions, and fitness tracking
• Health, relationships, and recreational goals for people over 50
• Setting S-M-A-R-T goals in the new year and learning from last year’s investing lessons
• The unpredictability of the stock market and the danger of making predictions based on the news

Get in touch with Don and learn more: https://doncashpodcast.com/

As we gather around festive tables and share the joy of the season with our loved ones, the holidays provide the perfect backdrop for meaningful conversations. In today’s episode we’re going to explore the three important money conversations that you should consider having during the holidays.

Here’s some of what we discuss in this episode:

• Parents: Breaking the “no talk rule” about money with your parents, keeping legal documents updated, checking for signs of cognitive decline + ensuring appropriate living arrangements are being made
• Kids: Providing them with basic knowledge about tax issues, assets, key financial contacts + encouraging responsible financial habits
• Young Adults: Establishing car and health insurance, contributing to retirement accounts, building an emergency fund + filling out important legal documents
• Your Partner: Conversations about finances, spending, and saving money + focusing on shared goals for the future, such as living arrangements and lifestyle preferences

Get in touch with Don and learn more: https://doncashpodcast.com/

We’re back to wrap up this two-part episode on year-end planning for 2023. As 2024 approaches, it is the perfect time of year for these conversations. If you missed part one, you can catch up on the conversation here!

In this episode, we’ll chat about several topics including the looming expiration of the current tax code in 2026, the increasing national debt, and the potential rise in tax rates. Don will also share how those in need of long-term care can leverage their IRA assets to minimize taxes, talk about the often-overlooked 0% capital gains tax bracket, discuss the importance of proactive tax planning, and more.

Here’s some of what we discuss in this episode:

• How might changes in the tax code impact financial planning, considering the current national debt?
• Some ways that long-term care expenses can be leveraged for significant tax deductions
• How does the 0% capital gains tax bracket work?
• What is the gifting limit, and how can it be strategically utilized for educational or medical expenses?

Get in touch with Don and learn more: https://doncashpodcast.com/