top of page
  • roshanloungani

Lightning Round: 9 Financial Planning/Investing Questions Answered

Updated: Aug 4, 2021

RL075 - Retirement Lifestyle: Lightning Round: 9 Financial Planning / Investing Questions Answered

Today on the Retirement Lifestyle Show, Roshan Loungani, Erik Olson, and Adrian Nicholson answer some of the most common and intriguing listener and client questions. They dissect topics such as retirement withdrawal strategies, paying down debts versus investing, and the role of cash in your portfolio.

[10:15] How to Plan your Retirement Withdrawal Strategy

[16:30] How Important is it to have Cash on Hand?

[19:40] Reasons why you Need a Financial Advisor

[22:01] Inherited IRA Rules: Distribution and Beneficiaries

[28:50] Converting a Traditional IRA to a Roth IRA

[31:55] Why do People Invest in Bonds?

[37:10] Paying Down Debts Versus Investing

[48:20] How to Protect Your Children with an Estate Plan

[54:10] Using Life Insurance for Supplemental Retirement Income

[56:50] Deferred Income Annuities

For more links and the full show notes keep scrolling down!

Roshan Loungani can be reached at or at 202-536-4468.

Erik Olson can be reached at or 815-940-4652.

Adrian Nicholson can be reached at or at 703-915-8905.

Listen to the whole episode on our website here:

OR for links to your favorite platform like Spotify, iTunes and so on go here:

Select episodes, like this one can be found on YouTube:

Follow Us At:

Full Show Notes:

How to Plan Your Retirement Withdrawal Strategy

Although saving for retirement is one of the most critical aspects of your investment journey, experts agree that managing your withdrawals is equally essential. This is because sometimes, you may be forced to make your money last nearly as long as you worked. So, how do you make your money last 30 or more years? Retirement withdrawals involve two parts: strategy and mechanics. The mechanical aspect is all about a person's discipline adhering to a predefined spending plan. This plan typically acts as a pay cheque that is structured so that the recipient never runs out of money.

On the other hand, the strategic part involves a deep analytical process using specialized software to figure out the best withdrawal strategies. Based on a person's portfolio, the system dictates how much money will be withdrawn from each of the three tax brackets. People nearing retirement can also use this information to strategically distribute their investments into the three tax brackets (tax-deferred, taxable, tax-free) for maximum flexibility.

How Important is it to Have Cash on Hand?

Cash is the most liquid asset used to perform immediate economic actions such as paying debt or meeting daily needs. Unfortunately, most people don't understand the benefits of having ready cash in hand. Some people even see it as a liability. But during uncertain times, cash, without question, is king. Why? Because cash guarantees immediate or near immediate liquidity to help meet your obligations without incurring losses. Simply put, you can still carry out basic economic actions without using a credit card, taking out a loan, or worse, liquidating your long-term investments when prices are unfavorably low.

Furthermore, money can be used to take advantage of 'hot' investment opportunities without disrupting your portfolio. So, the next time you think about liquid money, always remember that it does have a role, and it's not necessarily a liability.

Inherited IRA Rules: Distribution and Beneficiaries

Inherited IRA accounts are for people who inherit retirement accounts when the original owner dies. For the most, if you're the sole beneficiary of your spouse's IRA, you can seamlessly take over the account. However, for a non-spouse beneficiary, some rules can impact your earnings and, therefore, your tax bracket. First, the IRA passed the Secure Act that states that beneficiaries must exhaust an inherited IRA within ten years of the account owner's death.

Although there are no rules that dictate how a beneficiary withdraws money from the account, the account must be empty by the end of the 10 years. Furthermore, with a traditional IRA, each withdrawal is calculated as taxable income in the year you make withdrawals. So, before you start taking out money from your inherited IRA, analyze how those withdrawals affect your income. This way, you avoid jumping up a tax bracket while cushioning your peak earning years.

All opinions expressed by podcast hosts and guests are solely their own. While based on information that they believe is reliable, neither Arete Wealth nor its affiliates warrant its completeness or accuracy, nor do their opinions reflect the opinion of Arete Wealth. This podcast is for general informational purposes only, and should not be regarded as specific advice or recommendations for any individual. Before making any decisions, consult a professional.

550 views0 comments


bottom of page