Today’s Prep:
Estate planning is just one piece of a comprehensive retirement plan but it’s an important one because you only get one opportunity to get it right. The problem is many individuals have very little experience with inheritances and often make mistakes when handing them down or receiving them. Let’s try to change that today by informing you about inheritances and the steps you need to take.
Equipping Points:
There are two sides to every inheritance and mistakes can be made on either if people aren’t prepared adequately to handle the wealth.
We’ve seen a number of common missteps people make that end up costing them and their loved ones. No one wants to see the IRS benefit the most from an inheritance so you need to make sure your finances are in order.
On this episode of the Retirement Ready podcast, we’re going to talk all about inheritances and help you understand where mistakes are often made and how tax implications can play a big part in your planning strategy, especially now that the SECURE Act is in place. Now, more than ever, you should be paying attention to your estate and how you want to maximize your legacy.
Then there’s the other side of the inheritance. If you’re fortunate enough to receive this gift, how prepared are you to put it to work for your retirement? Many people don’t know the first step to take when they receive money and it ends up turning into frivolous spending. Don’t let that happen to you or your loved ones.
If you think you might receive an inheritance or you have plans to pass down your wealth, this episode should valuable to you. We want to help you protect your legacy and set your family up for a secure future.
Listen to the full episode or click on the timestamps to skip around to different topics.
0:49 – Let’s tackle the biggest questions around an inheritance.
1:09 – First, what about taxes. What implications are there with an inheritance?
1:35 – Iowa does have inheritance tax if it comes from outside of a ‘straight line.’
2:21 – Here’s what happens if someone leaves you an IRA or 401k.
3:55 – What are some of the changes coming from the SECURE Act relating to inheritances?
5:34 – These are the common mistakes people make with inheritances.
7:33 – Some companies allow a per Stirpes designation. Here’s how that works.
8:46 – Are there some common mistakes on the receiving end of an inheritance
Related Resources:
Retirement Savings Options: IRA Contributions & Roth Conversions
Understanding The SECURE Act, Part 1
Understanding The SECURE Act, Part 2: Stretch IRAs
Today’s Takeaway:
[spp-tweet tweet= “Understanding the tax consequences of these things is critical because you want to maximize the amount you’re going to get. You don’t want to leave money to your family and have Uncle Sam or the IRS be the largest beneficiary. –Eric Peterson“]
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Bracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read MoreAre Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read MoreWhat Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read MoreMailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read MoreFinancial Planning Conversations for Couples
This episode is focused specifically on that planning we do with couples with insights on how we help them navigate tricky conversations about money and retirement.
Read MoreIs Your Retirement Based on Wishful Thinking?
Many people fall into the trap of wishful thinking when it comes to what they expect will happen in retirement, but a successful retirement isn’t built on hope and assumptions.
Read MoreSpending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read MoreWatch Out For These Financial Half Truths
Eric pulls back the curtain on some of the most common financial half-truths that many retirees and investors encounter. As someone gearing up for retirement,
Read More