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
The National Park Guide to Retirement Planning
Whether you’re visiting one of the 63 national parks this summer or just hitting a local trail, a lot of the best practices for a great hike apply just as well to your retirement plan. Today, Eric “walks” through a few.
Mailbag: Military Pension Mistakes & Retirement Decision Paralysis
What happens if you make a retirement decision you can’t undo? And how do you know when you’ve done enough research before making an important financial move? In this mailbag episode, Eric answers two listener questions—one from a military retiree looking to protect his spouse after declining a survivor pension benefit, and another from a listener who struggles with overthinking every financial decision.
Movie Quotes That Reveal the Truth About Retirement
Can classic movie quotes actually teach valuable retirement lessons? In this episode, Eric takes memorable lines from films like The Terminator, When Harry Met Sally, and The Wizard of Oz and uses them to explain key retirement-planning concepts. From preparing for inevitable market downturns to understanding why every retirement plan should be personalized, these famous quotes provide surprisingly practical financial insights.
Mailbag: Simplify Your Retirement Accounts
Sometimes, the most valuable retirement lessons come from the questions people are asking every day. In this mailbag episode, Eric tackles listener questions covering investment organization, diversification, and pursuing new opportunities later in life.
Where Does Guaranteed Income in Retirement Really Come From?
What does “guaranteed income” really mean in retirement, and is it actually possible to create a paycheck you can count on for life? In this episode, Eric breaks down the different sources of retirement income, including Social Security, pensions, investments, rental properties, and insurance-based solutions. He explains the risks many retirees overlook when relying solely on portfolios, dividends, bonds, or rental income and discusses why predictable income streams can play an important role in a well-designed retirement strategy.
Mailbag: IRA Withdrawals, Whole Life Insurance & Cash on the Sidelines
In this mailbag episode, Eric tackles a variety of listener questions about retirement and financial planning.
He breaks down complex topics into clear, practical guidance to help you make more confident money decisions.
Retirement Lessons Hidden in Walt Disney Quotes
Sometimes the best financial lessons come from the most unexpected places. Walt Disney built one of the most recognizable brands in history, but some of his most memorable quotes offer lessons that extend far beyond theme parks and animated characters.
Mailbag: Working Forever, Safety Nets, and Target Date Funds
A lot of people think they’ll work forever, until life changes the plan. In this special mailbag episode, Eric answers listener questions about retirement timing, backup planning, target date funds, and how to think about risk as retirement gets closer.
The Financial Impact of Losing a Spouse
Losing a spouse is one of the hardest realities anyone can face, and it can create major financial changes that you may not see coming. In this episode, Eric walks through the potential financial impact of becoming suddenly single in retirement, including Social Security changes, tax surprises, IRA rules, beneficiary updates, and income planning challenges.
Old Accounts Could Be Costing You
Today, Eric discusses why old financial accounts deserve a second look. He explains how reviewing these accounts can uncover missed opportunities, improve efficiency, and help create a more coordinated financial plan.