Today’s Mission:

On this all-mailbag edition of the podcast, learn how your Social Security will be taxed. We’ll also explore how cash settlements and inheritances could change your retirement.

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(Click the featured times below to jump forward in the episode)

The Briefing

  • [spp-timestamp time=”2:27″] – In The News: A recent survey shows Americans view discord in Washington as a threat to the economy.

Strategy Points:

7:05 – How Should I Invest My Cash Settlement?  

  • Dianne recently received a cash settlement from an auto accident. She says it will make a big difference in her life because at 57, she hasn’t saved much for retirement. She wants to know how to invest the money.

7:44 – Seek Out An Expert.

  • Find an advisor who can answer all of the questions surrounding this settlement. Work with a fiduciary. A fiduciary advisor is someone who puts your interest before their own. Watch out for advisors who simply want to take your money and sell you a product.

9:05 – Understand The Basics Of Investing.

  • You need an advisor with the heart of a teacher because you’re going to want to educate yourself about investing. You need to know how to put that cash to work.

11:17 – How Is My Social Security Taxed?

  • Paul is frustrated because he assumed he wouldn’t have to pay taxes on his Social Security benefits. He wants to know how taxation on Social Security Works.

12:02 – Why Are Some Folks Taxed More Than Others?

  • If you’re paying more, it’s because you’re above the earnings threshold for when Social Security is taxable. In other words, if you have too much income, you could be taxed more.

12:56 – An Example Of Too Much Income.

  • J’Neanne shares an example outlining how Uncle Sam taxes Social Security.

15:14 – Should My Potential Inheritance Count Toward My Retirement?

  • Rebecca thinks she’ll get a large inheritance from her mother. She wants to know whether she should factor that inheritance into her retirement plan.

15:34 – How To View A Potential Inheritance.

  • It’s not unwise. You certainly want to factor any potential income into your retirement plan. However, it’s worth considering what will happen if you don’t get that inheritance.

16:53 – Communicate With Your Family.

  • You need to stay up-to-date on your parents’ planning process. This will help you to set expectations for your inheritance, and it will help you to better care for your parents. Be mindful of the fact that the World War II generation is hesitant to discuss money.

The Grand Plan:

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The Spy Kit:

Click the image to get a free retirement rescue toolkit.


More Intel:

The host: J’Neanne TheusContact – Call: (443) 718-6310