Mailbag: Does It Matter Who Gets What Asset in My Legacy Plan?

Today’s Prep:

Think about the taxes! Eric answers three questions from the mailbag today that all involve financial decisions with tax implications.

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

Equipping Points:

Allison in Johnston is about to turn 65 with plans to work another 2-3 years. She just found out that her previous employer’s pension requires her to take money as soon as she turns 65. Should she take the lump sum or monthly payment? Eric says to think about the tax implications. It all depends on your plan, how much income you have, and what you need to make your plan work. Getting a retirement review with a financial advisor may help as you make this big decision.

Larry in Ankeny has retirement savings, credit card debt, and a mortgage. Should he take out the retirement savings to pay off the debts? Eric says the answer really depends on your age, where your assets are, and the taxes. The credit card debt with the high-interest rate should be paid off sooner. Whereas the mortgage payment, you might want to consider if it is worth paying off just yet.

Renee in Des Moines does not have a complex legacy plan, but wants to leave something behind to her son, sister, and the church. She has life insurance, retirement savings, and then a house. Does it matter who gets what? Eric says, yes! Think about how things will be taxed and what will be more beneficial.

Listen to the entire episode or skip ahead to a particular question using the timestamps below.

[0:46] – Mailbag: Should I take the lump sum or monthly payment for my pension?

[4:55] – Mailbag: Should I use my retirement savings to pay off debts?

[9:57] – Mailbag: Does it matter who gets what asset in my legacy plan?


Today’s Takeaway:

What people don’t look at is: how about the tax nature of that pension? That pension is 100 percent taxable.

-Eric Peterson


More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: Which Investment Should I Withdraw From?

September 29, 2022

Whether you are nearing retirement or wanting to buy a new car, taxes are often a big part of the conversation. Thinking through how and when to withdraw from your investments strategically can make all the difference in what taxes you pay afterwards.

Read More

Investing and Coffee

September 22, 2022

In the fall, a lot of people are ready to cozy up with a coffee or latte in their favorite mug. For fun, we talk about the different types of coffee drinks and what kind of investor that might make them. Do you take your coffee the same style you do your investing? Which one are you?

Read More

The Different Kinds Of Annuities

September 15, 2022

To some people, an annuity is almost like a dirty word. In reality, there are a lot of different kinds of annuities, and some are better for your financial plan than others.

Read More

Financial Fortune Cookies

September 8, 2022

What small piece of wisdom can we take away and apply to our financial plan? Eric talks through five fortune cookie statements and what they mean.

Read More

The Worst Investor

September 1, 2022

Which investors will end up ahead in the end? Eric talks through the types that might look successful…until they aren’t.

Read More

What Happens in a Periodic Review With Your Financial Advisor?

August 25, 2022

Think about the taxes! Eric answers three questions from the mailbag today that all involve financial decisions with tax implications.

Read More

More than Just a “Nice Person”

August 11, 2022

Financial advisors are people who want to get along with, but you probably want more than just a nice person. We talk through what you should expect with a fiduciary and when you should get a second opinion.

Read More

Mailbag: How Much is Too Much to Spend on a Forever Home?

August 4, 2022

Retirement decisions involve a lot more than just the money, but also the emotional and lifestyle decisions, too. Eric answers three questions from the mailbag from listeners making retirement decisions.

Read More

Financial Jeopardy

July 28, 2022

We play the game of Jeopardy as Eric answers financial questions on today’s show. Do you know all the answers?

Read More

401(k) Weaknesses

July 21, 2022

If you have a 401(k), what are some of the downsides? Eric talks through what a 401(k) is best for and when it is better to invest elsewhere.

Read More

Leave a Comment