As we come to the end of 2022, we reflect on some of our favorite reads and podcasts that we have highlighted in our monthly newsletter. Listen in to hear the insights we gleaned from some of the top minds in finance over the past year.
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4 questions to ask when considering Roth conversions
Author William Reichenstein was interviewed on a recent episode of the Morning Star podcast and he had some thought-provoking questions to ask yourself regarding Roth conversions.
- What are the additional taxes you’ll have to pay?
- How will this affect your medicare premiums?
- Should you make Roth conversions in other years as well?
- What is the marginal tax rate across those years?
This interview helps the listener to think about their withdrawal strategy in retirement so that they can understand how complex retirement decisions can really be. One retirement withdrawal decision can affect multiple facets of your retirement plan over several years which is why it is essential to analyze your choices before jumping into any hasty decisions.
Focus on what you can control
Many people are worried about the bear market, and for good reason. However, fear often gets the best of us and can lead us to make irrational decisions. We feel like we should be doing something to take action, but not every action will help us work through tough times.
This article highlights why it is important to have a written financial plan that prepares you for any eventuality. You can refer back to your written financial plan when you are in the thick of a crisis. Your plan will lay out your spending and investing goals so that you can better understand why you invest the way you invest. By having a spending plan in place you focus on what you can control rather than everything that you can’t.
Balancing purpose and meaning in life
On another Morningstar podcast episode, they interviewed a hospice doctor about regret. People’s biggest regrets center around what they didn’t have the time, energy, or courage to do. Do meaningful things now rather than putting them off indefinitely.
Automate and make your life simpler
Good behaviors are often simple yet not easy. While there are similarities between getting physically fit and financially fit, we can automate financial fitness in a way that is impossible with physical fitness.
We can implement systems that automate investing. Approach investing with a long-term mindset by being a short-term pessimist and a long-term optimist.
Outline of This Episode
- Questions to ask yourself before doing Roth conversions [0:57]
- Focus on what you can control [4:12]
- Balancing purpose and meaning in life [8:44]
- Good behaviors are often simple yet not easy [10:55]
- How to think about investing during a recession [17:23]
Resources & People Mentioned
- BOOK – Social Security Strategies by William Reichenstein
- BOOK – Income Strategies by William Reichenstein
- Episode 101 – Solving the Social Security Tax Bubble Mystery
- Morning Star Podcast – William Reichenstein: Avoiding Tax Headaches in Retirement
- Article – So What’s Your Plan for the Bear Market?
- Morning Star Podcast – Jordan Grumet: A Hospice Doctor Shares Lessons About Work, Money, and Life
- Article – The Long-Term is Not Where Life is Lived
- Article – Save Like a Pessimist, Invest Like an Optimist
- Article – How to Think About Investing During a Recession
- Article – Expectations and Reality