And good evening.

You've got more than money.

You've got Gene Dickison, your host, your personal financial adviser.

Happy to be with you this evening.

Happy to be serving your best interests this evening, as we are the most relevant financial show on television today, we say that with no reservations whatsoever, since we are focused 100% on you, your questions, your concerns, your observations.

You feed those to us through e-mail and through our crack staff.

We get back to you on every single question.

Hard ones, silly ones, easy ones.

We give you all the information that we possibly can at the low, low introductory price of free.

But, wait, there's more.

You might actually see your question answered live on air.

That would be cool.

And lots of use and very, very interesting questions.

So that's a real possibility.

We can't put every question on air.

We simply don't have enough time.

But we try to get as much of a mix, some interesting different balance between investments and retirement, perhaps estate planning, perhaps tax questions or deductions, 401K's 403B's, the entire alphabet that is retirement.

We try to cover as much as we possibly can, as broad a selection as we possibly can, because we never know exactly which question is going to be most relevant for you.

And that's our goal.

So if you are listening perhaps for the second or third, maybe multiple times, and you've enjoyed our show, we appreciate that very much.

Allow us to serve you as that becomes appropriate for you.

But if you haven't yet heard a question that exactly approaches or exactly addresses your concerns, your situation, please let us know.

We are here to serve.

Due to any number of gremlin-like activities, I am flying solo this week.

If you're a long-time viewer of our show, you know this used to be our standard.

I was a solo act before Megan became our financial correspondent, and now it seems a little strange, but as we go back in time, a little bit of Back to the Future there, if Marty McFly were here, we're going to offer up both the questions, myself, and the answers.

So think good thoughts as we go through the show.

Make sure Gene gets through this in good shape.

Make sure I get the answers that you need.

So let's cut to the, cut to the chase.

Our first question is about getting ducks in line for an RMD.

"I thoroughly enjoy your program.

"I am a geek about financial matters "and you always have pearls of wisdom."

You're very kind.

As you'll notice, there is a trend.

We always put the very kind words.

Those e-mails are always... No, I'm kidding.

That's not how that works.

"I was born in 1951.

"I know my RMD time is coming.

"I'm trying to get an understanding "of how it works and the most "beneficial way to do it with the least tax consequences.

"I have an annuity and IRA accounts.

"Must I withdraw from each or just a total percentage "from wherever I decide to take the distribution?

"I already take a small distribution "from the annuity and one "IRA, I'm assuming they count towards the RMD.

"Thank you very much for your wisdom and guidance to many."

Well, you're very kind.

You're very, very kind.

So getting ducks in a row for RMDs, it's a worthy topic, one that affects almost everyone that approaches a certain age.

In the old days it was 70-and-a-half.

In the current times it is 73.

So there has been kind of an evolution and it continues because for folks who are born I believe after 1960, the age is actually 75.

So the required minimum distribution age has been pushed off.

This young lady is soon to be entering into that that phase.

She has at least three IRAs that we've identified, an IRA, two IRAs and an annuity.

She's already taking distributions from two of the three.

So bottom line is, will those distributions count towards her RMD?

Yes, absolutely.

No question about it.

Her RMD will be a percentage of the total values of all of her IRAs.

So unlike 401Ks, which have special rules , 403B's that have special rules, Roth IRAs have very special rules.

In this case, pretty straightforward.

We have 100,000 approximately in each of three IRAs.

We total that up.

We have $300,000.

In her initial RMD, it will be approximately a 4% distribution, approximately $12,000 in her first year.

She can take that from one account, from multiple accounts.

She can change it up year by year.

She can change it up mid-year and custom-tailor however it fits her best and indeed whatever distribution she's already taking will count towards that.

So assume for a moment she's taking $6,000 a year out now.

She will only need to increase that by an additional $6,000 to get to where the IRS wishes her to be.

Tax consequences are relatively, relatively straightforward in the sense that these are IRAs.

Everything that comes out is taxable.

So there are few, if any, wiggle room opportunities in terms of reducing the taxes.

There may, however, be wiggle room depending on her personal situation.

If there happens to be a year where her income is quite low, she may actually want to take out more than her RMD, get more at a very low tax rate and kind of get ahead of the game, so to speak.

So if she were in a very low tax bracket and really liked that rate and was able to pull out, say, an additional 30,000, that would come off the top of the principal, that would reduce her future RMDS, and if she can do that for a number of years, that may end up being a good process.

She should speak to a trusted, experienced either financial advisor or tax advisor and look at her situation specifically to see if that tax plan might be of value.

Getting ducks in a row.

Good headline.

Now moving on - kids on the deed to my home, question mark.

Should this young lady have her kids added to the deed of her home?

Her e-mail reads this.

"Would it be a good idea for me to turn ownership "of my house to my children before I need to go "into a nursing home?

"I'm 70.

"I don't think the nursing home will ever happen, "or at least not for 20 years.

"But I would like to pass the house "onto my house intact, having it "end up in their hands rather than a nursing home.

"How many months or years before I need to enter "a nursing home must I change ownership?

"Or is there a better idea?"

Well, it's an interesting concern that you have.

You're very wise.

You are looking at this situation well in advance of the concern of kind of your estimate of when the concern will become reality, so well in advance makes a great deal of sense for two reasons.

Number one, it gives you time to make the plans that you wish with relaxation, with no real stress, no anxiety, no urgency.

And number two, as much as you and I would love to believe that you have 20 more healthy years before a nursing home might be an issue, somebody else actually knows when that might occur.

And he's not talking.

So could it be 20 years?

Sure.

Could it be 20 months?

Of course.

Could it be 20 weeks?

We have no idea.

So putting your plan in place is very, very wise.

Now, how many years in advance is an interesting question, really addressing more of the issue of Medicaid.

In order to protect assets, lots of folks divest themselves.

They give away their home, they give away their assets so that they will then qualify for Medicaid, which is medical welfare, which will pay for your care in a nursing facility if you no longer have assets to pay for yourself.

Five years is a good rule of thumb.

The actual rules are a bit more complicated, but for our purposes, five years would be a good place to start.

So if you're looking at, "Hey, I'm going to kind of roll "the dice on this, I don't think I'm going "to need to be protected "until I'm 90, 20 years from now," somewhere between 80 and 85, you should make this move.

If you are buying into my observation, that could happen at any time, you will likely want to make this move sooner rather than later.

But before you make any moves of any kind, particularly about your home, you must sit with a trusted, experienced estate planning attorney.

You must.

This is not optional.

Anyone can add kids' names to the deed, swap them out, do transfers, lots of different companies, title insurance companies, etc.

can do that very inexpensively.

That's not what we're interested in.

What we're interested in is the strategy.

What strategy are we are we using, for example, if, for example, I don't know how many children that she has, let's say there are two.

If, for example, we're going to gift the home to those two children.

What happens to Mom if one of them gets divorced?

What happens to Mom if one of them goes through a bankruptcy?

What happens to Mom if one of them gets sued and has a legal lien placed against their assets and one of their assets is her home?

What happens to Mom?

There are ways to legally protect Mom.

Life estates is certainly one topic that you'll want to explore, but there are others.

And having a trusted, experienced estate planning attorney review those options, go through the pros and cons is mandatory.

So as a financial advisor, my strongest recommendation to you is that you sit with an advisor and an estate planning attorney that you trust and sort out exactly what's in your best interest.

You may end up wishing to explore a reverse mortgage.

That's an interesting alternative.

You may end up wishing to explore long-term care insurance.

A very interesting topic to explore.

These are topics to be indeed explored, become educated, review the pros and cons.

Pick the one that fits you best and live a long and healthy life and never need it.

That's my wish for you.

Excellent.

Excellent.

Right about now, I'd be saying, "Megan, what's our next question?"

And she would say, "Is there anywhere on the 1040 to write off charitable "contributions if you do not itemize deductions?"

I understand the question.

I understand why the question is being asked.

Sadly, the answer is no.

Sadly, the answer is no.

The standard deduction was amplified under the previous presidential administration to a very substantial number.

The vast majority of you watching do not have enough itemized deductions to exceed the standard deduction.

So you are better off, you get a better tax result if you use the standard deduction.

The question of can I still write off charitable deductions, there was a short period of time where you could add an additional $300 per year as your charitable deduction on your 1040.

That has expired.

It no longer applies.

It really does pain me to ever say that a tax deduction has gone away.

We don't need to send them any more money than we absolutely must.

They don't spend it very well.

So bottom line for you is sadly no.

However, if from a planning standpoint, you might find it useful to do what's called bundling, bundling your deductions, where you take one or two years of deductions and put them together so that you do exceed the standard deduction.

So I'm picking out numbers.

If you give a $12,000 a year to your church and now that's under the limit, you're in the standard deduction.

If you double that up, one year zero, the next year 24, it might wreak havoc with the church's budget.

But we'll work through that.

Bottom line, that may qualify you for deduction.

The other thing that you might consider if you're in the 70 plus range is that you can send money directly from your IRAs to your charities, and it does not appear in your tax return, it is not taxable.

That's a huge advantage as well.

A couple of different strategies, tactics that you might consider.

Take a look at them, see what the pros and cons are, see what fits you best.

Good question.

"Hi, Gene and Megan."

Oh.

"My husband and I are devoted fans "of your program.

"This question is for my sister.

"She turned 70 in January of this year "and continues to work.

"Can she claim Social Security benefits now "without being penalized?

"Also, since she hasn't yet applied for benefits, "will the benefits be retroactive from January?

"Thank you so much for your 700 years of experience.

"You are the best."

Well, thank you so much.

That's very, very kind.

It's make-up.

People say, "How do you look so young?"

700 plus years.

It's make-up.

Carmen's amazing.

Amazing.

Yes.

Can she apply?

Of course, she really must.

Social Security increases to a maximum when you turn 70.

She did that in January.

She should have applied last September.

She didn't.

She will apply now.

She can do that online.

It can be very efficiently done.

Will there be retroactive payments?

Almost certainly, yes.

So fixing this problem, pretty straightforward.

Is it a major issue, did she muck up badly?

No, she continues to work.

So this will be income in addition to her employment income.

And that may or may not, it depends on the numbers, cause some, up to 85% of her Social Security to be taxed.

So for folks who say they will never gosh, the government can never cut back on your Social Security benefits, they already have.

Goodness.

It's been around for a very long period of time that if you earn above a very modest amount of money and when I say earn, if your income is above a very modest amount of money, your Social Security begins to be taxable and at the maximum, 85% of it is taxable.

If you're in the 20% bracket, you're losing 17% of your Social Security benefits to tax, exactly the same as if they had cut your benefits by 17%.

So, Social Security, lots of challenges, lots of ways to look at it, make sure that you explore your options before you lock in your Social Security.

And by the way, if you've already made a choice, is it revocable up to a year?

You may make adjustments up to a year, after that you're stuck.

gene@askmtm.com is where we got this next e-mail.

"I currently have 107,000 in the bank.

"I get $2,850 for my Social Security "net of my Medicare premium.

"I keep myself on a budget "and I'm able to save anywhere from 600 to 800 a month."

Good for you.

Oh, my gosh.

Very modest need, obviously.

So very, very good indeed.

"I'm in reasonably good health.

"Had I considered putting money into a CD years ago, "I'd be better off."

Hindsight is wonderful.

"So what would you advise me to do here?

"Invest in mutual funds, the stock market, CDs.

"Cheers."

Cheers.

Thank you.

"Cheers.

And thanks for your time."

I like that part.

Cheers.

You are in this wonderful position where you are continuing to save even though you're retired and receiving Social Security.

So the pressure on your investments is nonexistent.

Lots of folks are in a position similar to yours, and instead of being able to save 600 a month, they need an additional 600 a month from their savings in order to pay their bills.

You're in the reverse.

You're in the catbird seat.

You are in control.

You've done very, very well.

So when you ask, "What should I invest in?

"Should it be in mutual funds?

"Should it be in the stock market or CDs?"

the answer could be, could be, what, D any of the above.

It could be E, all of the above.

It really does depend on what you wish this money to do for you.

If you're very happy keeping it safe, sound and no risk, CDs are wonderful.

Current CD rates are up dramatically and you're going to be well rewarded.

You could pick up easily an extra $5,000 or $6,000 a year.

Just putting it in CDs, No risk.

FDIC insured.

Or could you have a portion of it in the stock market, in mutual funds, in other types of investments?

The answer is, of course, you could, and maybe, just maybe, your rate of return would be a bit higher.

That could work out nicely as well.

It depends on you.

It simply depends on your objective, what you see this money doing for you?

I took a glance.

I don't see your age.

If I'm seeing someone who's 70, for example, knowing that you've got 15, 20, 30 more years, then making your money grow is probably a good idea.

Putting it all in guaranteed accounts, even though the interest rates right now are pretty good, maybe not in your best interest, but maybe it is, because again, you are so disciplined, you are living so frugally that you're saving money, you are likely, unlikely to not only unlikely to run out of money, you're very likely that your savings will continue to multiply during your lifetime.

Well done, you.

I think that's impressive.

And I think sitting with an advisor to look at some options, it doesn't seem to me that you have kind of a full picture yet of what your options might be.

You're looking at several things that are either very safe or pretty aggressive.

There's lots of room in the middle.

And again, diversification.

Not putting all your eggs in one basket.

Easter's coming up.

You'll get the, you get the reference.

Not putting all your eggs in one basket means that if something does falter for a period of time, something else is likely to pick it up.

So a well constructed portfolio, well diversified, well allocated, in your best interest.

Excellent question.

This next question.

Interesting.

Interesting, indeed.

"I have a deferred savings account."

This individual writes annuity in parentheses.

So that's the word I'm going to use.

"I've had since 1980.

"During my working days, I continually put funds "in this account.

"And even after I retired in 1994, "I continued to put my part-time "earnings into the account.

"I've done it for so many years "and sadly did not know until much, "much later that a Roth IRA even existed.

"Is there a way I can transfer any "of these funds from this account into a Roth, "paying taxes along the way?"

Sadly, by the way, there was a lot, a lot of really nice things said, thank you, it gets a little embarrassing when I have to read it, I really like it when Megan reads it, but it's a little embarrassing for me to say what an incredible guy I am and unbelievable, and, I mean, it's all true, don't get me wrong, but so is it possible to go from an annuity, non-qualified meaning it's not an IRA, it's not a retirement plan, it's a deferred savings account, into the Roth IRA, paying taxes along the way.

And the answer, sadly, is no.

This is not a conversion.

This is not taking money from an IRA and putting it into a Roth.

It is taking money from a non IRA and putting it into a Roth or attempting to.

And in order to do that, you would need earned income.

So if you were still working part-time, it does not sound like you are, but if you were and let's say you're making 5000 bucks a year, you can put, take 5000 out of your annuity and put that into a Roth IRA as a contribution.

As a contribution.

So in that way, perhaps that may even encourage you to go back to work.

Lots of good companies out there looking for quality people.

Gosh, there was a time when a gentleman, a gentleman of my advanced years out of work, you'd never get another job.

There wasn't a company that would hire you.

Now companies are begging for seasoned citizens.

People with work ethics and skills and people skills.

So if you are so inclined and wish to do some part-time work, pick up a few bucks and put it into a Roth, knock yourself out.

But going directly from your savings, your annuity, sadly, no.

"I enjoy your program on PBS 39."

Excellent.

"I am 58, full-time employment.

"I have a 401K and a 403B.

"I have savings of over 14,000.

"I have a life insurance policy valued at $15,000.

"Moments when I ponder my financial decisions, "one of my questions is should I leave things "as is or seek financial advice "and money management?"

That's an excellent question.

The heart of this question.

The numbers aside, the heart of this question is really at what point does someone need a financial adviser?

And it's quite different for different people.

There are some folks that need a financial adviser the moment they graduate high school because money is just not their thing, either they're not skilled at it, they're not interested in it.

Fill in the blanks and they really need to be guided the entirety of their life.

For other folks, the decisions they make along the way, raising their family, signing up for a retirement plan, saving for college, pretty straightforward.

They feel pretty capable, pretty informed, and those things seem to take care of themselves.

And then that changes maybe when they get close to retirement.

And now there's a lot of questions that they don't know the answers to.

But how does one know?

Well, the reality is you may not.

You may not know until you actually have a conversation with a financial adviser.

And in many cases, that can be problematic.

There are a number of financial firms out there that they are, and that's their choice, they charge a fairly substantial sum of money for an initial consultation.

Hundreds of dollars is not unusual for you to come in and kind of have somebody take a peek.

And maybe the answer is you don't need us, but you still pay that money.

There are many, More Than Money, MTM Financial Group is one, but there are many, many, coast to coast, border to border, wonderful firms out there who will absolutely at no charge sit with you and give you a second opinion, review what you've done, look at the actual numbers in your 401K, in your 403B, in your life insurance, look at your goals, look at your risk tolerance, look at where you are, who you are, and what your goals are, what your future, what it looks like for you, what you wish it to look like for you, and then be able to tell you, "Hey, I think you're on the right track" or," Hey, I think there's a fair number of things "that need to be adjusted "and here's how that might look."

So sitting with a experienced, trusted financial advisor, a good referral is always a great way to start.

And, and getting that second opinion is, in my opinion, for you, the very best way to go and determine in your own mind, do I or don't I need professional financial advice?

Folks, last possible question we can squeeze in.

I went fast.

Hopefully you picked up a couple of ideas.

Hopefully at least one of those questions was, hey, one that I had, and now I've got that information.

If not or if you'd like to amplify or if you want to get very specific about you, let us help.

gene@askmtm.com is the e-mail address, that comes directly to me.

Your question will be answered whereby one of my absolutely fantastic financial advisers silly, hard, easy, doesn't matter we answer, every single question back to you and maybe next week you'll hear it right here when we return for another edition of More Than Money.

Goodnight.