Queries and Clarity

Talking Real Money - Investing Talk

Don McDonald

Business, Education, Investing, How To

4.2 • 680 Ratings

🗓️ 23 May 2025

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this lighter (but still info-packed) Friday Q&A episode, Don tackles a mixed bag of real-world money questions—from Roth conversions and selling the family home to foreign tax credits and the emotional overload of trying to do everythingat once. Listeners wrestle with software vs. strategy, gifting real estate to their kids, and finding financial sanity in mid-life. Don reminds us: good advice doesn’t come with a magic wand, but it does come with a bit of permission to slow down. 0:56 Roth conversions vs. tax software forecasts Don breaks down a listener’s dilemma between believing Bolden software’s results and the unpredictable future of taxes. 3:16 Selling a $1.3M home to your daughter at a discount Creative estate planning meets real estate risk. Don dives into the tax, gift, and legal landmines. 9:21 Should I worry about foreign tax credits with VT? A listener’s ETF portfolio prompts a discussion on whether VT’s structure means missing out on foreign tax credit benefits. 14:13 “Is Tom using a money multiplier?” A sharp-eared listener catches a math slip and asks whether Tom is secretly using margin or magic. 15:35 Holistic financial planning for a stretched young family In a heartfelt question, a 30-something couple wonders how to juggle mortgage, saving, and life without burning out. Don gives them more than advice—he gives them permission. 21:59 Don’s guest appearance on Personal Finance for Long-Term Investors If you want more Don, check out his chat about annuities with Jesse Kramer. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	While you enjoy this podcast, remember to reserve your place at the unmissable Keer Electric Experience.
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0:17.0	Discover our award-winning electric range, including this year's UK and World Car of the Year, the EV3.
0:22.9	Secure your exclusive place today.
0:25.0	Search the Kia Electric Experience.
0:27.1	Kia, movement that inspires.
0:34.9	Reality Radio for a really great future.
0:37.9	We're talking real money.
0:40.1	Well, if it's a Friday, then I guess it's question and answer day, which means it's the day on which I answer questions that you've recorded by going to talking real money.com, clicking the contact form, and then recording your questions.
0:55.3	And we've got a lot of them, not as many as we had.
0:58.3	So we don't have to make this episode as long as the last couple, but we've still got several, and that's a great thing.
1:05.7	So thank you for all of those.
1:06.9	And also remember, you can call us live on Saturdays during our radio show, which is 3 to 5
1:12.1	Eastern Time, noon to 2 Pacific at 855-935-935-835-8-5-8-5-8-3-55. Now, let's get to our first question that came in to
1:24.3	Talking Real Money.com. Hello, Don and Tom.
1:29.0	Really like your advice.
1:32.4	I like how you don't push Roth conversions for investors who would have to pay the tax from their tax-affirred retirement account.
1:36.4	I'm 59.5, retired in all my money is in pre-tax 401k or IRA.
1:42.0	I believe if I did Roth conversions, it would be done in the 22% tax bracket. I prefer not to pay any taxes before their time. I think you agree with this. Here's the but. I'm sure you've heard of the bold and retirement software. When I run the numbers through the software, if I do Roth conversions, my effective tax rate decreases and my total network increases. Should I not believe
2:03.1	the software? Since we don't know the taxes in the future, and I have to pay the taxes with
2:08.4	pre-tax money, should I just ignore the results? Either way, the Monte Carlo simulation says it will not
2:14.6	run out of money. Thank you for your two cents. Well, that's the good thing, the Monte Carlo simulation. But again, Monte Carlo simulations are only as
	...

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