『Would You Trade $600 a Month to Protect Your Spouse?』のカバーアート

Would You Trade $600 a Month to Protect Your Spouse?

Would You Trade $600 a Month to Protect Your Spouse?

無料で聴く

ポッドキャストの詳細を見る

概要

 One of the biggest retirement decisions people make doesn’t involve the stock market at all. It’s a choice hidden inside their pension paperwork. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381 ----more---- Transcript: Speaker 1 00:00 Hey, time once again, to plan with the tax man, and we are going to talk about the biggest retirement decisions people make that doesn't involve the stock market or could make, right? So it's a choice hidden inside the pension paperwork. Let's get into it. Would you trade $600 a month to protect your spouse? Look up in the sky. It's a bird. It's a plane. Speaker 2 00:21 No, it's the tax man. He may not be a superhero, but Tony Morrow has saved many retirement plans with his extreme knowledge of tax planning strategies. It's time for plan with the tax man. Speaker 1 00:34 Welcome into the podcast, folks. This is another edition of plan with the tax man, with Tony Morrow from tax doctor. Inc, and you can find them online@yourplanningpros.com and again, yourplanningpros.com and Tony, this week, we've got a listener question, a variation. Anyway, I'll change it up just a little bit. And you've been getting some of these lately yourself as well. And so we want to talk about this, the pension trade off conversation. And so we'll, I'll just set it up. Let me read the email and then, and then we'll dive into it. All right, okay, all right. So with my pension, the person says I can get $3,500 a month, but the wife gets nothing when I die, or I can take 2900 a month and she'll continue to get all of it after I'm gone. As always, I'm wondering which is better and Tony. It seems cut and dried, like the spouse is sitting there, probably listening, going, duh, take the one where I get money after you die. But let's, at least, for the sake of the conversation, talk about, you know, the pros and cons of both ways. And I think that's what people need to think about when this situation comes up, right? It's not Yes, probably 80% of the time, it probably does make sense to take the spousal continuation, but maybe not always. So let's discuss it. How you doing? Tony Mauro 01:47 I'm doing good. I've been doing good since first year. So getting ready to dwell into tax season. And we do get this question a lot. And you know what I find with tax clients is I find more of the clients that I've talked to, they actually take the higher amount not knowing. They don't read over their paperwork. Very, very well true. And you know, so I find that, you know, make sure you're before you even dwell into this read this paperwork, make sure you understand before you check boxes. And make sure that you get some advice you have any questions on it, yeah, because one can, you know, really devastate you if you pick the wrong one, but you're, you know, in this case, and this is a topic of mine, because as I get a little closer to the end, my wife has worked for the government for it'll be probably 47 years, but she goes, Oh, wow. And so we'll have this choice in our public retirement plan called IPERs, and, you know, so yeah, me, as a spouse, I'm just like you said, you know, let's take the lower amount, because I want to make sure you know that if something happens to you, that I've got this till I die, right? But the nice part about IPERs, in our case in Iowa, is, if I go first and we're at the lower amount, she can actually bump herself back up to the higher amount. Oh, it's rained or her life. So, yeah, you know, that works. But what a lot of people need to take a look at in this and make some decisions and talk to their advisors about is, you know, the very first thing is, what kind of longevity does the covered person, meaning the you know, person that's going to get this benefit, have within their lifetime? And you know, use that, you know, to make this decision, because obviously, you know, the higher payout shifts the risk to the surviving spouse, correct, and you know that that's kind of a risk. And so that's why we kind of titled this, you know, is this reduction or this $600 a month worth it? Because it does act like a little bit of insurance, you know, Speaker 1 03:38 if, yeah, for sure, it's like a little insurance policy and that. And I guess we can skip around a little bit, because that really it's easy for us to walk to that conversation piece, because that's what a lot of people tend to think. They go, Well, why don't I take the bigger amount, the 3500 in this example, and invest that $600 difference, and I'll buy my own life insurance, right? And so that's certainly something that people think, and I in their statistics that show I can probably do better and leave some tax free money, because it'll be in a tax in a life insurance policy. And that's fine, that's totally possible, but you need to run the math first and see, and to your point about longevity, that's going to play into that. Because if you don't really have longevity...
まだレビューはありません