featured image for podcast episodeMailbag: Breaking up with your Advisor, I Bonds, 4% Rule, Accounts for Kids, Roth IRAs | Sean Mullaney

Mailbag: Breaking up with your Advisor, I Bonds, 4% Rule, Accounts for Kids, Roth IRAs | Sean Mullaney
Episode 447

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Episode Guide

Breaking up with a financial advisor can be an emotional and complex process, especially when considering the transfer of existing investments to low-cost options. It involves understanding the correct procedures for various accounts, including traditional IRAs, Roth IRAs, and taxable brokerage accounts, as well as the potential tax implications associated with such transfers. The episode details essential steps such as initiating an ACAT (Automated Customer Account Transfer) and ensuring that transfers occur in-kind to minimize tax liabilities. Additionally, listeners learn about I Bonds, their taxation, and strategies related to their maturity, including when to sell and how to navigate the maturity process. The concept of the 4% rule is examined concerning financial independence, taking age and life expectancy into account when determining retirement savings needs. Practical insights and strategies are provided for both new and seasoned investors looking to optimize their financial futures.

Episode Timestamps

In this episode: financial advisor breakups, I bonds, the 4% rule, second generation FI, Roth IRAs, and the listener mailbag.

Breakups are hard, but breaking up with a financial advisor can be harder given the minutia that is often involved in doing so. It's good to have friends to lean on in times like this, which is exactly why we have the FI Tax Guy himself Sean Mullaney with us to help! Listen along as he and Brad dip back into the listener mailbag this week and discuss a myriad of topics submitted by YOU the listener!

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The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual.

Sean Mullaney:

Timestamps:

  • 0:43 - Introduction/Breaking Up With Your Financial Advisor
  • 15:13 - The Taxable Nature of Financial Breakups
  • 22:11 - I Bonds
  • 29:12 - The 4% Rule and Age
  • 35:40 - Second Generation FI and Accounts
  • 43:48 - Early Roth IRA Conversions
  • 48:18 - Roth IRA's and 5-Year Rules
  • 57:24 - Conclusion

Resources Mentioned In Today’s Episode:

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