Audio: Roth IRAs - Advantages, Strategies, Upcoming Tax Law Changes

Kim talks with Sean Monohan, EA, CFP,  of  Chartered Financial Strategies about Roth IRAs

 

MP3 Download: Hi (128k) | Lo (32k)

Length: approximately 20 minutes

 

Notes:

00:52                Differences between traditional  IRA and Roth

03:41                Roth Rollover Limits

05:19                Benefits of Roth over Traditional IRA - Tax Hedging Strategies

07:09                Why the penalty is less in a Roth if you take it out before age 59 1/2

09:21                Why you need to keep good records in a Roth, even after age 59 1/2

10:38                How a Roth fits into tax strategy

11:52                "Gotchas" in converting a Traditional IRA to a Roth IRA

13:35                The mechanics of converting a traditional to a Roth - how to do it

14:55                When are taxes due on the conversion?

16:01                How does the IRS know I have converted?

16:51                Discussion of new tax law change in 2010 affecting Roth conversions

20:37                Contact information for Sean Monohan

No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment or tax advice. All investments involve risk including possible loss of principal. We strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation. Our goal is your financial success. Individual results may vary. Complete information can be found on our website or by calling 1-888-6SNIDER.

Guarantees and Generalizations

This week, I want to do things a little differently. Instead of writing my usual article, I sat down with newsletter editor (and radio show sidekick) James Pecht and discussed some feedback we received from our recent "Red Flag" articles. It's an audio file about 14 minutes long, and you can download it to listen from your computer or move it to your mp3 player.

Click here for the audio Kimmunique (Hi - 128k | Lo - 24k)

Notes:
0:00 Introduction
2:00 What we mean by the statement "If a financial advisor constructs a portfolio with an expected return of less than 10 percent, that's a red flag"
4:40 Why that statement did not reflect a guarantee but rather a goal
5:45 Generalizations in the articles -- why I use inflexible rules
8:25 About the information session scheduled for Saturday, May 31. (After my talk, we'll head over to Boston's the Gourmet Pizza on 635 and MacArthur in Irving to broadcast the weekly radio show live on location. Then we'll stick around to answer questions and talk to folks one-on-one.)
10:45 New virtual office hours -- a twice-weekly conference call.

Details on the office hours: 

• Wednesdays 5 p.m. - 6 p.m. Central Time
• Thursdays Noon-1 p.m. Central Time

Ask anything that's on your mind about the Snider Method, personal finance, the economy -- you name it! We have a special toll-free conference call line -- you can call in and ask your questions, or just listen in to what others are asking. The office hours have an online component, too -- the technology we're using allows me to show you calculations, visit websites, etc. It's like you're sitting right beside me, looking at my computer screen together.

To join me, here's what you do:

1. Call 1-888-617-3400 and enter the access code 791564.
2. (Optional) Go to https://www1.gotomeeting.com/join/597893666.Please note: Attendance is limited for the online component, and you may be prompted to download some software the first time you log on.

---

 

Kim Snider is the President and Founder of Snider Advisors, an SEC Registered Investment Advisor, focused on teaching individual investors a sensible, long-term investment approach focused on maximizing cash flow. For more information on Snider Advisors or the Snider Investment Method and how to stop enriching your investment advisors at your expense, please visit snideradvisors.com. Her book, How to Be the Family CFO: Four Simple Steps To Put Your Financial House in Order, will be in bookstores October 1, 2008.

Snider Advisors makes no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method® Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments, including the Snider Investment Method™ are subject to risk, including possible loss of principal.

Podcast for 11/13/07: Interview with Kim Kiyosaki

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Kim interviews Kim Kiyosaki about her book, Rich Woman, and the lessons of cash-flow investing.

MP3 Download: Hi (128k) | Lo (24k)

Length: 23:22

Notes:
0:45  Kim Kiyosaki tells us about her motivation for writing this book to women, and shares some financial statistics about women

2:55  58 percent of Women Baby Boomers have less than $10,000 saved for retirement.

4:20  Kim Kiyosaki introduces the idea of cash-flow investing

5:10  Why do American women not have a greater interest in investing?

7:07  A couple may be living well in retirement, then the husband dies and the wife doesn't know what to do

8:45  Do you think that there is an industry that preys on the uneducated elderly?

9:51 Who is buying this  book?

10:45 The unspoken rule of "He or she who controls the money, makes the rules."

12:05 Kim Kiyosaki gives us a taste of what we will learn in her book.

Resources:

Rich Woman: A Book on Investing for Women - Because I Hate Being Told What to Do!
Investing for Cash Flow

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

 

Podcast for 11/06/07: Interview with Brian Russell

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Kim interviews Brian Russell of Chronim Advisors about the importance of investing for the long term.

MP3 Download: Hi (128k) | Lo (24k)

Length: 12:32

Notes:
0:55  Brian describes a study that showed how investors balanced hypothetical portfolios based on 1 month, 1 year and 5 year returns.
3:05  Stocks do well over the long term, but investor performance has a lot to do with how investors perceive their returns.
3:50  The market takes large swings. If you're in there for the long run, you can be more comfortable with those swings.
6:00  The importance of developing a plan and sticking with it.
7:31  Basic concepts for the beginning investor
9:01  Look for lower fees when investing

Resources:
Investing for Cash Flow

Podcast for 10/30/07: Interview with Dr. Daniel Bergstresser

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Kim interviews Dr. Daniel Bergstresser of the Harvard Business School about the costs and benefits of brokers in the mutual fund industry.

MP3 Download: Hi (128k) | Lo (24k)

Length: 13:05

Notes:
1:00  Daniel Bergstresser gives an overview of the study.
2:19  He says they found that funds sold through the broker channel, even before you subtract the distribution fees, perform worse than funds sold through the direct channel. (This applied to domestic equity funds)
3:00  He says the findings surprised them.
3:50 The five questions Dr. Bergstresser and his colleagues attempted to answer.
4:26  Some of the hypotheses they tested on where brokers create value for their customers. In the aggregate, he says, it doesn't look like brokers are delivering tangible benefits.
6:36  They looked at whether brokers corrected bad behavior, such as chasing returns. They didn't.
8:40  Load structures (commissions) and their bearing on which funds investors choose.
10:39  If you're looking for the benefits created by brokers, you need to look along less tangible dimensions than the ones Dr. Bergstresser and his peers studied.

Resources:

Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

 

Podcast for 10/23/07: Highlights from KRLD live show

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Highlights from the October 20 show on KRLD in Dallas-Fort Worth.

MP3 Download: Hi (128k) | Lo (24k)

Length: 22:25

Notes:
0:40  Maria asks if she should take money out of her Roth IRA to pay off her debt.
3:55  Alan asks about absolute-return CDs
7:47  Peter asks about the Snider Method and taxes
9:28  Mary is recently retired and doesn't have access to a computer. What should she do to get things in order? Kim recommends going to a fee-only financial planner.
12:32  Jack has $500,000 that isn't invested anywhere, and he wants to retire in the next 10 years. He asks what he should do with his money.
15:59  Junior asks how the Snider Investment Method would perform after a terrorist attack or other major market-moving event.
18:48  Steve, via email, asks about his 401(k) at a former employer.

Resources:
National Association of Personal Financial Advisors

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

 

Podcast for 10/16/07: Interview with Pamela Perun

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Kim interviews Pamela Perun of the Aspen Institute about simplifying savings plans.

MP3 Download: Hi (128k) | Lo (24k)

Length: 18:50

Notes:
1:02  Pamela says that there are too many kinds of savings plans, leaving us with a complicated system of saving that individuals and employers have difficulty maneuvering through
1:36  The most common kinds of savings plans
2:50  Tax advantages are viewed as an incentive for people to contribute to these savings plans.
3:11  Pamela says that the tax advantages encourage those who pay higher taxes to save using these plans. She says there needs to be some kind of incentive to encourage those in lower tax brackets to save, too.
4:48  The differences between intermediary plans and open-access plans
5:55  Intermediary plans have been the most successful-- reasons may be psychological and practical
8:25  Pamela says IRAs have essentially been a failure -- people who don't have access to a 401(k) aren't likely to save in an IRA, either. Most IRAs are funded through rollovers from intermediary plans.
9:15  People do save, but not enough to fund a comfortable retirement -- and this is true across all income levels
9:40  Lots of people don't take advantage of their employer matches. Financial economists are researching which kind of match works best for which types of people.
10:38  Too many choices lead to "investment paralysis."
12:20  Savings plans are quite complicated, and they have numerous fees that not everyone is aware of.
14:25  Steps toward making the savings system better. Step one: Simplify. She suggests one plan for all types of savers, regardless of employer, etc.
15:20  We need fewer, but better, plans, she says.
16:22  Focus on outcomes. People don't save because they have no clue how much retirement is going to cost them, she says.

Resources:
The Aspen Institute, Initiative on Financial Security
"Toward a Sensible System of Saving"

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

Podcast for 10/9/07: Interview with Jesse Anderson

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Kim interviews Jesse Anderson, manager of trading at Chronim Advisors, about options as a source of income.

MP3 Download: Hi (128k) | Lo (24k)

Length: 10:12

Notes:
1:00  Many people don't understand options, which is why they're often apprehensive about using them in their portfolios.
1:48  Options give investors flexibility
2:17  A lot of people think options are inherently risky; they were actually created to reduce risk. Speculators create a lot of the misconceptions about options.
3:01  Two ways to hedge against risk using options
3:55  The Snider Method does NOT use options to speculate.
4:09  Using options as a source of portfolio income
6:38  Some of the things Snider Method investors look for to generate income off their portfolios
7:22  Snider Method investors have a Web-based program that helps them sift through all the stock/option combinations out there.
8:10  Where people can learn more about options.

Resources:
Options Industry Council
Chronim Advisors
KimSnider.com

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

 

Podcast for 10/2/07: Interview with Dr. Burton Malkiel

Kim talks with Dr. Burton Malkiel, author of A Random Walk Down Wall Street, about the latest edition of his book and investing based on sound judgment rather than emotion.

MP3 Download: Hi (128k) | Lo (24k)

Length: 16:26

Notes:
1:10  Interview with Dr. Burton Malkiel
4:01  Dr. Malkiel discusses how 'behavioral finance' affects our ability to make good financial judgments
9:30  The effects of the misleading press
11:05 What to do about your 401(k) and investing when the market is dropping
13:00 The principle of rebalancing your investments

Resource:
A Random Walk Down Wall Street
Make the Right Call for Financial Success

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

 

Podcast for 9/25/07: Highlights from KRLD live show

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Highlights from the live call-in show on KRLD-AM (1080) in Dallas-Fort Worth.

MP3 Download: Hi (128k) | Lo (24k)

Length: 14:05

Notes:
0:37  Terry asks about his 401(k) and whether he can roll it over from his current employer
6:14  Dale talks about his experience with the Snider Method
8:56  Ken sold a business and wanted to know what to do with the money
10:40  Ken (a different Ken) has $200,000 and wants to know if he should pay down his mortgage significantly or invest the money

Resources:
Make The Right Call for Financial Success
How to Turn Your 401(k) into a Million-Dollar Nest Egg

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.