Is the well-known trading adage, “sell in May and go away” actually good advice? Joe Anderson, CFP® and Big Al Clopine, CPA discuss this in YMYW podcast episode 34 before diving into retirement planning, sharing common IRA and Roth misconceptions and beneficiary blunders that could cost your family thousands. Original publish date May 28, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.

00:00 - Intro
02:26 - “You can contribute up to $5,500 (to an IRA); if you’re over 50 you get a $1,000 catch-up so $6,500”
04:01 - “If you’re in a low tax bracket you might not get that much benefit. You might as well do a Roth contribution so you forgo the tax benefit today but all future income, growth and principal are tax-free later. Here’s the caveat – you need earned income”
04:29 - “Earned income has to be salary or positive profits from your self-employment business”
09:01 - “If you don’t have an IRA already established and you try to do a direct rollover, you’re going to find yourself with some problems”
14:59 - “Did you know that you can use your spouse’s earned income if you’re not working to do a Roth or IRA contribution?”
16:03 - “A couple of other basics when it comes to the Roth: there is no required minimum distribution (RMD)”
23:08 - “These are retirement accounts. They’re for retirement; they shouldn’t really be used for other things”
28:52 - “We’re talking about IRAs, some mistakes you might be making with the overall retirement accounts; we talked about the basics – how much you can contribute, AGI limitations, penalties, RMDS. But one that people forget about is the beneficiary designation”
33:10 - “We encourage our clients and I’ll encourage you guys as well to be looking at your beneficiary statements on all IRAs, 401(k)s, 403(b)s every few years; make sure they’re up to date”
36:16 - “There is such thing as an IRA trust”