We get a lot of questions about trusts. Who should get one? Who shouldn’t? What are the long-term ramifications? Is it a bad idea to name a trust as the beneficiary of an IRA? Excellent questions! Today, we are going to discuss, specifically, naming a trust as the beneficiary of an IRA. This can be quite overwhelming for the trustee if they are not experienced. According to Ed Slott, “Saddling an inexperienced trustee with such a daunting task can lead to egregious mistakes – as a recent IRA private letter ruling states.” We’ll cover the ins and outs of these mistakes along with an “inflation check-in” as we enter into an upcycle that is not transitory in nature. It will be led by these long-term factors: wages, rents and energy prices.

New Retirement Radio with Dennis Prout Podcast

Episode 244: IRA Trust Trustee

Twenty years later and we can all remember the exact moment the attacks on 9/11 happened. I (Shea) was standing at the Folgarelli’s deli counter watching the events unfold on their TV. I assumed at first that I was watching a movie, but sadly I soon realized it was a live news broadcast. The first building was attacked and, in horror, all of us there watched as the second building was taken down. My cell phone rang, and I was told to go home immediately – the board meeting lunch I was scheduled to attend had been canceled.  Today, we will commemorate this day and honor those whose lives were lost. It’s also a time to reflect on how this act of terrorism cost us emotionally and financially. The American spirit should be remembered as resilient even as we face this current pandemic.

Episode 243: Where Were You?

Perhaps one of the best and most rewarding conversation topics we can have with clients is, “You should spend more.” This isn’t the advice they were expecting. In fact, for most clients, it’s a real mind shift to go from saving, saving, saving to spending! But it’s truly a rush! Today, we’re going to call out the real fears people have with spending, along with reasons why you should spend more (we promise … there are some!). In Yahoo! News, Michael Finke, a professor of retirement at the American College of Financial Services, says research he conducted found that 80% of retirees are uncomfortable watching their nest egg get smaller. “To an economist, that’s a mystery,” he said. “Why did you save in the first place?”

Episode 242: Should You Spend More?

As the economy rebounds, the question remains, “What about inflation?” According to Joel Naroff, Chief Economist at Naroff Economics, LLC, “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.” This transition is projected to last longer than expected with hiring challenges, supply-chain bottlenecks, and other disruptions caused by the pandemic. In fact, we could see about 2% in the coming months as the CPI (consumer price index) jumped 5% in May. What do we do if inflation continues to go up and up? That’s the question for Dennis Prout and Heidi Thompson today. Join us LIVE as we navigate the ever-changing economy – the first step in any recovery!

Episode 240: Inflation Up

What better way to celebrate our new and improved studio than to have familiar guests join us! The Bill Marsh Brothers (Jamie, Bill Jr. and Mike) are LIVE and in person with us today. They are going to share some of the most difficult times they have faced in the last year-and-a-half, along with surprising victories. Their family-owned automobile business has been forced to change as people stayed home, drove less, and delayed making large purchases at the beginning of the pandemic (stats here). New vehicle production came to a halt and the demand for used cars began to skyrocket. It’s been a wild ride … and the year isn’t even over! Join all of us in the studio today as we inspire you to keep pushing forward despite the unknown. There’s no going back to how it was before COVID-19, but that might be a good thing!

Episode 241: No Going Back

What makes someone more comfortable in retirement? Studies show four things: guaranteed income, little debt, a clear spend-down strategy and employer-provided assistance. All of this takes a little planning over time with trusted advisors. Lucky you, because we have two in the NEW studio today! Dennis and Heidi will guide you through the planning process and how to face money mindsets that could be holding you back. Dennis will speak specifically on IRA planning for special needs beneficiaries. Teamwork makes the dream work, and we are here for it!

Episode 239: It Takes a Team

Perhaps we’ve been overemphasizing COVID-19 stats, but it’s difficult to look at the numbers without becoming concerned. So much has shifted over the last year and a half, and most of it is out of our control. Our intention is to hold out hope for you. We want you to feel empowered and adapt as needed. That being said, today we are going to focus on the positive side of the pandemic. The downtime allowed for a lot of reflection and bought some folks time to make necessary changes. We are going to share what those are and give you a few tips for transition. As we all know, the only constant is change!

Episode 238: On A Positive Note

“It’s not the economy that’s going to determine your next six years, it’s your philosophy” said the late Jim Rohn, entrepreneur author and speaker. His words outlive him and are just as relevant today as they were decades ago. When it comes to investing – the act of putting our dollars where our values lie, is about philosophy. Before you can be disciplined about the small things, you must first determine what you believe to be true and in the power of your own action-making abilities. Join Dennis today as he applies these principles to the relationship we have with money and the magic of compound interest! After all, life only asks one thing of us … to make measurable progress in a reasonable amount of time!

Episode 237: The Power of Discipline

During the last year and a half, many charities that have relied on fundraising events and in-person relationship building have suffered. The financial insecurity many individuals faced also caused them to withdraw their monthly donations. Meanwhile, according to an article in The Wall Street Journal, “The coronavirus has spurred roughly $13 billion in donations to relief funds and for medical and vaccine research – more than all donations to 12 other big disasters combined, including the 9/11 attacks, the 2008 financial crisis, and hurricanes Harvey and Sandy, according to an analysis by Candid, which tracks and analyzes global philanthropy.” If you want to make charity a part of your financial plan, don’t wait until the holidays, start the process now. There are ways to leverage your portfolio to help the organizations you care about while also benefiting your tax strategies.

Episode 236: Plan to Give Now

I’m not sure about you, but it seems nothing short of surreal to be shopping in stores without a mask and shield. Eating out at a restaurant is thrilling. Gathering with family, giving hugs freely and meeting strangers is almost euphoric. While the pandemic is mostly in the rear window, the effects of it are not. Today, Shea and Heidi will be taking over the show one Shea Stat at a time to highlight the good, the bad and neutral numbers of COVID-19, which is quite fitting considering that women have been impacted by the pandemic more than men. According to McKinsey, 80% of the Americans who have stepped away from the workforce to take on the duties of childcare, education, shopping, cooking and cleaning during the nationwide shutdown were women.

Episode 235: The Covid 19 Effect

Over the last several weeks, we’ve discussed the blind spots that investors can develop. The psychology of investing refers to these blind spots as “cognitive bias,” where our brains are hard-wired to take shortcuts, oversimplify complex concepts or be overconfident in our decision-making processes. The Magellan Group has outlined 10 of those biases, and on our show today we will give examples as we’ve experienced them either with clients or on a global scale. While it’s important to have help with the numbers, it’s also very important to get perspective on the head game behind them. In fact, that’s why people tend to hire advisors … hint … hint! Join us today as we dive deeper into the topic along with a brush-up lesson on income strategies in retirement. That in and of itself is a trip!

Episode 234: It's a Head Game

I (Dennis) was talking to my daughter about her investing options as she and her husband are gaining traction in their careers and financial choices. It’s a very exciting thing to witness, especially as a father who happens to be an investment advisor too! Ironically, as she started to verbally process their options, she also confessed to not knowing as much as she “should.” It triggered a conversation that led me to the topic of today’s show, because even something as simple as a 401(k) plan can feel foreign. Today, Shea will be asking the tough questions like, “Is a 401(k) worth it? What about the fees? What if I need the money for emergencies? What about taxes in retirement? Does the employer really ‘match’ my money?” This will be a lively conversation to help clear up any confusion about 401(k)s so that you can make an informed decision! After all, this investing stuff is supposed to be FUN!

Episode 233: The 401(K) Quandary

Last week, we started the conversation around investor “blind spots,” or careless mistakes. One can argue that the premise of our entire show is about blind spots! Touché! This week, we will continue the discussion and delve more deeply into one area in particular: Changes in the market as you near retirement. The question is, “Can you handle it?” Or, better yet, “How should you handle it?” The prevailing concern over a potential market correction and rising inflation lingers in investors’ minds. It’s understandable and probably unavoidable … but the good news is that it’s manageable!

Episode 232: Can You Handle It?

I (Shea) love to drive. It started with video games then led to learning on two-tracks until I took my drivers’ training courses. My instructor thought I was overly confident behind the wheel, but it quickly became my “thing” and, to this day, I am known as “The Driver” among family and friends. Over the years, however, as I have become more comfortable with driving, I’ve also realized that it’s easier to make careless mistakes. I refer to them as “blind spots.” The same goes with investing. The longer you’ve been at it, and the more familiar you are with it – the more blind spots you develop. Our internal benchmark for success isn’t always the best predictor and, as a result, our long-term gains may diminish. In other words, we may not get to where we intended to go without a different or extra perspective. Today, Dennis and Heidi are hopping into the driver’s seat to show you a few things you might have missed on your investment journey.

Episode 231: Investor Blind Spots

Lawmakers have enacted six major bills, costing about $5.3 trillion, to help manage the COVID-19 pandemic and mitigate the economic burden on families and businesses. Most of us have succumbed to an inevitable tax rate increase. But that’s not the scary part. What’s more concerning is our acceptance of it. Our society is the proverbial “frog in boiling water” as we slowly but surely lose control over how the government allocates money. Guess who is suffering the most? It’s the folks you’d least expect … the savers! And they have a big money problem that can be summed up in two words – CAPTIAL GAINS. Whether you are trying to sell your business, a family farm or stocks, the taxes on capital gains could be significant. Tune in today to listen to Dennis and guest CPA Jon Sluis as they talk about big money problems and what to do about them.

Episode 230: Big Money Problems

The days of simple retirement planning are gone and those who can manage their own portfolio are choosing not to. Prout Financial Design began over 25 years ago as an education based financial planning practice. Dennis Prout, Certified Financial Planner, believes that each client should not only understand their finances, they should be actively involved in the decisions made. Join the conversation! Dennis' radio show can be heard LIVE every Thursday at 10 am on News Talk 580 am or you can listen here instead. Thanks for tuning in! Advisory Services offered through Capital Asset Advisory Services, a Limited Liability Company, and a Registered Investment Advisor. Prout Financial Design does not provide tax, accounting, or legal services. Please consult the appropriate professional regarding your individual circumstance. Not associated with or endorsed by the Social Security Administration or any other government agency.

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New Retirement Radio with Dennis Prout Podcast

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