Gary Allen on Business, Sunday, January 10, 2016 – Podcast Now Available

I wonder if this will effect our social security

Financial Planning is a Series of Trade offs

Financial planning is a complicated subject. There are so many trade offs and variables involved it can be overwhelming for many folks. Recently, long-time financial columnist Jonathan Clements penned an article covering 18 simple steps to creating your own financial plan.

Of course anything with 18 simple steps does not sound so simple, but it was a valiant attempt at back of the napkin financial planning. The reality is life and financial planning involve a series of interconnected trade offs without a concrete answer. My humble advice would be to gather relevant information on the subject and make the best informed decision you can. Life is not perfect and neither are many of the choices we all face.

On the program I follow along with Jonathan’s 18 steps and give my two cents along the way. Also in the program I mention two videos and articles about retirement planning that do an excellent job of providing clear and concise information on the subject. You can find the videos on two of my recent blog posts. You will find links to the short videos as well as links to a couple of robust papers on the subjects. Hopefully you will find them useful and informative.

I hope you enjoy the program this week. Hope you have a great week! – Gary

Here is this week’s podcast of my show that originally was broadcast on Sunday, January 10, 2016 on KNBR.


The information provided on this website is for information and educational purposes only. It is not intended to be investment, legal or tax advice of any kind. Please consult with your investment, legal or tax expert on all matters.



2 thoughts on “Gary Allen on Business, Sunday, January 10, 2016 – Podcast Now Available

  1. You and others talk about withdrawing 4% a year from IRAs, once one turns 70 and one half you have no choice but to take the minimum distribution set by the government. why do you not ever mention that fact. and that the government programs it so you will decrease you IRA balance over the years.

    • James, thanks for your comment. There is a good reason why many people do not mention the Required Minimum Distribution (RMD) in short articles likes this. The RMD requirement is less than the 4% hypothetical withdrawal rate used in Jonathan’s article for the first ten years of someone’s retirement. It is not until the 11th year of mandatory withdrawals (Age 81) when the amount of the RMD slightly exceeds the 4% hypothetical example Jonathan used. Therefore the RMD in this example is not an issue until more than a decade after the person is forced to start taking distributions that are slightly larger than the 4% hypothetical example. Also, please note, there are additional rules if your spouse is more than ten years younger than the IRA owner.

      One other side note of interest is a ROTH IRA. A ROTH IRA is not subject to RMDs. The general reasoning is your tax liability was satisfied upfront. This is one of the major advantages of a ROTH IRA.

      As we always mention, this is not tax advice of any kind. It is provided for information purposes only. Please consult with a tax expert for tax advice. James thanks again for your comment.

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