In this Episode of the Secure Your Retirement Podcast, Radon, Murs, and Taylor discuss the significance of Form 5498 as an essential tax information document. Taylor describes Form 5498 as an informational document that reports contributions, rollovers, and required minimum distributions (RMDs) related to IRAs.

Listen in to learn why Form 5498 is important for record-keeping and verification purposes but does not impact the already filed tax return. You will also learn why the form shouldn’t cause alarm since it doesn’t necessitate any changes to the already filed tax returns.

In this episode, find out:

• The informational purpose of Form 5498 is to verify contributions to and rollovers between retirement accounts.
• The information reported on Form 5498 includes contributions to IRAs, rollovers, and RMDs.
• The difference between the taxable distributions reported on Form 1099 and the informational nature of Form 5498.
• Why Form 5498 does not require any changes to already filed tax returns.
• How Form 5498 helps the IRS verify that contributions reported on tax returns were actually made.
• A practical example of a 401k rollover and how it's reported using Form 5498.
• Why Form 5498 comes out later in the tax year as opposed to other tax return forms.

Tweetable Quotes:

• "Form 5498 is for your records in case you were ever to be audited or need to prove to the IRS that you did something this way or that way."- Murs Tariq.
• "The 5498 reports contributions to accounts, or sometimes custodians will send out 5498s to show what the required minimum distribution should have been for the prior year."- Taylor Wolverton.

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.

In this Episode of the Secure Your Retirement Podcast, Radon and Murs discuss the concept of annuitization and immediate annuities versus deferred annuities. Annuities can come from different sources, such as insurance companies or municipal pensions.

Listen in to learn how immediate annuities work, their pros and cons, and risks such as the potential loss of the principal if the annuitant dies early. You will also learn how deferred annuities work, the fixed type of deferred annuities, and why they make more sense for retirement planning than immediate annuities.

In this episode, find out:

• The concept of annuitization and immediate annuities versus deferred annuities in retirement planning.
• Understanding that annuities can originate from insurance companies or pension plans.
• Annuitization – converting a lump sum into an income stream, plus the implications of this conversion.
• Various protections that can be added to immediate annuities, such as joint annuitization and period certain annuities.
• How deferred annuities allow the principal to grow over time before withdrawals begin.
• Fixed deferred annuities – guarantees the principal and offer growth linked to market indices without market risk.
• The financial suitability of immediate versus deferred annuities for different types of savers.

Tweetable Quotes:

• “You want to be very careful about using the word annuitization because sometimes people are receiving income thinking it’s annuitization and it’s truly not.”- Murs Tariq.
• “If you’re a good saver who’s saved a good amount of money, it’s probably not going to make the best financial decision to do an immediate annuity.”- Radon Stancil.
• "Should a person put all their money into an annuity? Absolutely not. Not in our opinion. But should they consider an annuity? Possibly."- Radon Stancil

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.

In this episode of the Secure Your Retirement Podcast, Radon and Murs discuss the difference between FDIC (Federal Deposit Insurance Corporation) insurance and SIPC (Securities Investor Protection Corporation) insurance. Both FDIC and SIPC offer protection of funds held in accounts at financial institutions like Charles Schwab or Fidelity.

Listen in to learn about the basics of FDIC insurance, which protects bank deposits, and SIPC insurance, which safeguards investors against the loss of cash and securities. You will also learn about strategies to help you maximize coverage using account titling and diversification.

In this episode, find out:

• FDIC – a federally backed insurance on banks created to restore public confidence in the banking system.
• Understanding the types of accounts and the amount of money FDIC insurance covers.
• SIPC – insurance that protects investors against the loss of cash and securities held by a brokerage firm.
• SIPC insurance doesn’t cover market losses but ensures the return of missing stocks and other securities.
• The differences between bank deposits (covered by FDIC) and investment securities (covered by SIPC).
• The importance of having a diversified investment strategy to balance safety and growth potential.

Tweetable Quotes:

• “FDIC was created to make people feel comfortable with the banking system, knowing that there could be issues, but there are covers that their money is protected”- Murs Tariq.

“Let's think through how to make a financial plan and build an investment strategy around it in various buckets and diversification types of strategies so that we've got good strategies working for us.”- Murs Tariq.

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.