And, good evening.

You've got more than money.

You've got Gene Dickison, your personal financial advisor.

I say that every week, don't I?

I should mix it up a little bit.

Just for fun.

Just for fun.

This is Gene Dickison, your financial advisor.

Welcome to More Than Money.

See that?

That's two different variations.

I'll work on that.

I'll work on that.

We like to let you see behind the scenes once in a while.

That's kind of fun.

We've had live studio audiences.

We get emails from our audiences, coast to coast and border to border.

So many interesting folks out there.

You are very kind to allow us to serve you.

And, gosh, if you're watching us for the very first time, you go.

Why, we can be involved.

Sure.

You can send me your email, Gene at ask MTM dot com, and I can be as brief or as detailed as you wish.

Depending on your question, detailed can be very, very helpful.

And depending on your question, one line can do it.

Gosh, I think in our last show, I think all of our questions were one line, two lines at most.

Very interesting.

Short questions can have very long answers, and long questions can have very short answers.

So it's fascinating and we never know.

We are the most relevant financial show on television today.

Without a doubt, I would say that perhaps some folks are going, wow, he's a little full of himself.

Not.

Well, that part is true.

But in spite of that, the reality is we are.

Because you set the agenda.

You decide what's relevant to you.

I do not drone on and on about something.

I'm either trying to sell you or something.

I just.

Oh, I'm fascinated by the term standard deviation and the relative to the stock market.

And you would fall asleep and you would not be allowed to operate heavy equipment while watching.

So bottom line is we don't do that.

And may be the only financial show ever, to simply focus on what's most important to you.

It's a fascinating idea.

So simple, so appropriate.

So, What?

Useful.

How about that?

Practical answers to questions that really are important to you, that makes us relevant.

And, we're pretty excited about, about the service that we provide.

Now, lots of folks have asked, goodness, isn't this just, like, like, freebies for everybody and answers.

Yeah, kinda.

Yeah.

Kind of a freebie.

We charge nothing to to have your questions asked and answered.

There's no obligation, there's no pressure.

There's.

It's just good information.

And on the one hand, you say, wow, a lot of effort.

For, little or no return as a business.

The answer is, that's the silliest thing I ever heard.

Have you?

The term karma is totally foreign to you.

The the idea that you provide service and and that you're rewarded on, 100 levels.

If that has not been your philosophy up to now, I would strongly encourage you.

Strongly encourage you if you're a business person, if you're an investor, if you're just kind of hanging around trying to be a good human being, I would strongly encourage you to think through your philosophy and make sure that you are serving people as honorably as you possibly can.

It will come back to serve you a many, many, many times over.

I am, I am assuring you.

I am assuring you.

So, let's start serving some folks.

Sir, where do we start this evening?

Very good.

Bubbles, that is, it's not a pet name.

No.

I got out of investing in the stock market about two months ago, and I'm waiting for it to drop to get back in, but it keeps going higher.

Should I bite the bullet and invest now or see if the bubbles burst?

There's where bubbles come in.

Again, simple question.

Gosh, as I think through it, briefly, there's no briefly about it.

This is a fascinating question answered or asked by many, many people.

Various forms, various phrasing.

But over the years, 780 years, I've heard it thousands of times.

The idea that you could determine to get out of the market at a certain point, we'll call that the high point.

And then determined to get back into the market at a certain point.

Watch this.

See how it works.

We'll call that the low point and buy low.

Sell high.

And that's what everybody says you're supposed to do.

And that way you win.

There's only a couple small issues with that.

And if you can figure these out you're on your own.

You're in very good shape indeed.

The first issue is, how do you know when to get out?

This, questioner, for example, got out months ago, and the market kept going up.

So getting out when it when it was high, maybe high.

Yes.

No.

So so so far that part didn't work out so well.

At at the point that we received this email, the market had continued to move up.

As of the moment that we are taping this, the market has dropped about 4%.

Pretty significant drop.

Is now the time to get back in?

How would I know and how would anyone know?

The term psychic, is, largely discredited because no one is psychic.

My wife, Diane, if that is her real name, would suggest to you that I have psychotic covered rather easily, but psychic.

Not so much.

The magic eight ball is as close as I've got to a real psychic tool.

And the reality is that doesn't work.

So the idea of being to, being able to time the market, that's a phrase, has been around forever since there's been markets knowing what time to get in, what time to get out and get back in.

It is so impossible, so impossible, that if someone could figure that out in short order, they would have all the money because you'd be over there.

I would be over here just doing the very best we can.

With with the information we have.

But somebody would have psychic ability.

I'm out at exactly the right time.

I'm back in at exactly the right time.

It doesn't exist.

It doesn't exist now.

Does that mean you can't do well investing?

Absolutely not.

It means you can't do well investing that way.

You can't do well investing based on psychic ability or based on some, misguided, impression that there is a, a magic formula, a an algorithm, an AI that will lead us to know exactly when in, out, in, out doesn't exist.

However, if you are investing appropriately, meaning that if you're investing very short term, it should be in the bank, guaranteed.

No ups and downs.

That's short term because it's reliable.

If you've got a little bit longer term, you might add some bonds into your bank accounts.

So you've got an opportunity to make a little bit better return, but you've got a longer time period, maybe a two year bond, a three year bond, maybe even a ten year bond.

And if you say, well, I've got a little more time than that, I don't need the money immediately.

You might add a little bit of conservative stocks to that, or a little bit of conservative real estate investment to that.

And if you've got a longer time period in my world, a longer time period five years or longer, then adding real estate, certainly stocks maybe, gold, precious metals, maybe, cryptocurrency, if that floats your boat.

The various types of ways that you can be very diversified might very well work.

And, and longer term than that, it's almost as short if you look at any short period of time in investing in anything.

The probability that it's up or down is likely 5050.

Flip of the coin.

There is no intelligence to it.

The likelihood that a quality investment is up over a long period of time starts to approach 70, 80, 90%.

So your odds of success go up dramatically based on the appropriate use of an investment system, as opposed to the magical use wishful use of magic bubbles.

Magic.

It does sound like putting names, sir.

Where do we go next?

Very good indeed.

I want to I want to transfer my money from my retirement account to my IRA.

Despite my explicit directions that I wanted it direct deposited to my IRA.

My pension sent me a check.

I am concerned about penalties and interest.

I'm concerned about tax impacts.

I'm concerned about fighting with the IRS.

Whoa.

Can you advise what I should do with this check?

Or must it go back to the pension fund?

What do you think?

If you got a check.

You said to them, I want a direct deposit.

And they didn't or didn't?

Didn't.

Would you send it back?

Well, the answer is it depends.

This is, By the way.

We received this, oh, a month or two ago from an individual is known for one time, very, very bright guy.

But this is not a process that is, common for him.

For us.

Dozens of times a month for him.

Once, maybe twice or three times in his lifetime.

Taking money from a retirement plan and moving it to an IRA.

So upon further examination of the check, it was appropriately drawn to, in this case, the IRA custodian FBO for benefit of the client.

So the check that he got sent directly to him at his home, that caused him great concern and agita, was actually appropriately drawn to the IRA custodian.

Why do they not send it directly to the IRA custodian?

Fair question.

But we have seen it's about 70, 80%, common that it goes back to the client rather than directly to the IRA custodian.

So the pension did it correctly.

They drew the check correctly.

He could not have cash.

That check, even if he had wanted to.

It is not a withdrawal for tax purposes.

There will be no tax, no penalties, no interest that will need to be paid.

The pension will issue a 1099 1099 retirement showing the money coming out of the pension, the custodian, the IRA custodian, whomever that may be, will issue a statement to the IRS saying we received this money.

So when he receives that 1099 his anxiety will pop again and go, see, I'm going to have to pay tax on this.

The reality is it will be recorded on his 1040 as taxable income.

The 1040 automatically has a line.

All already has a line that says how much of this is taxable.

The answer is zero because all of it was rolled over and because it was rolled over directly.

No harm, no foul.

Yes.

One extra step.

He had to bring that check into the office.

Send it.

He could have sent it that the postal service.

We have some concerns.

So he brought it into the office.

It was easily deposited.

Everything worked out fine.

Now what if it hadn't?

What if the check had been incorrectly drawn to him?

All manner of problems.

All manner of problems.

And yes, all of his anxieties would have been absolutely appropriate.

But in this case.

Sometimes it does work at.

Well, speaking of working out where, sir, shall we go next?

This this is a very interesting question.

For a number of reasons.

You'll find out here in a moment.

If you're looking at our headline, what is a TOD?

And you're wondering, I wonder what is a TOD?

You're getting one of us and very, very carefully, because this information may end up saving you some significant fuss and muss and definitely has the capacity for saving your family some fuss and muss.

Question is, I've watched your show for several years and thoroughly enjoy it.

That is one of the keys to getting your question aired on show.

Just compliment me.

I usually like to read this.

I'm, now in my 80s.

I have a will, but I've heard you talk often about TODs and I think this might be a better option.

For me.

My intention is to leave whatever assets I have at the time of my death to several charities.

So my question is as follows.

If I set up several accounts in the same bank with each having a different Tod, will each be insured to the FDIC $250,000 per account limit?

Also, I assume I will have the ability to use the money in any of these accounts for my own needs until I go home to be with the Lord.

I have a beautiful phrase.

Thank you in advance for your advice concerning this.

Well, thank you in advance.

Well, thank you immediately for your question.

TOD.

Transfer on death.

Important phrase sometimes referred to as pod payable on death.

Sometimes some banks insist on referring to it as in trust for even though it's not a trust, it's not a trust document.

It's in trust.

For some insist on using that phrase.

All of these phrases work exactly the same way.

I have a bank account.

We'll use her example.

I have $250,000 in a savings account.

I have named a TOD transfer on death designation.

As my church at my passing.

The church instantly becomes the beneficiary of that account.

They will need to provide to the bank a death certificate, proof of of of the individuals passing.

And at that point, money is theirs.

It does not go through the well, does not go through probate.

There's no delay.

There's no legal fees involved.

There's no accounting fees involved.

It works beautifully.

Beautifully.

Now, in this particular case, this young lady is talking about multiple accounts of this size.

Will she have all that protection?

The answer is yes.

Can she name individual charities as the, in essence, beneficiaries of these accounts?

The answer is yes.

A question that she does not ask, but is important for everyone to understand, is that one beneficiary, is not a requirement.

It is not required that you only name one per account.

You can name multiples.

So if, for example, you were not as in, in as a what an enviable financial position as this young lady needing multiple accounts of $250,000 or more.

Perhaps you're a bit more modest.

Let's say you have $200,000 total and you have one account.

How many, beneficiaries can you name using a TOD, or pod in your account?

As many as the bank will permit.

So if you're saying I've got ten charities that I'm really committed to, and I'd like to give them ten, I'm sorry, $20,000 each on a $200,000 account.

Simple, easy.

All in one account.

So while she did not ask that she may end up coming back to that or thinking about that later of, hey, how am I going to allocate to the charities so that it meets my needs, my goals, my intentions.

And the answer is basically any way you want.

And another question she did not ask that you may be thinking.

You may be wondering, well, all this well, a lot of paperwork, a lot of effort, a lot of work.

I wonder what the bank charges for all this.

The answer in almost every case.

In every case, I have seen nothing.

And it doesn't have to be just a bank.

It could be a brokerage account.

You could be with Vanguard or Fidelity.

You could be with Charles Schwab.

You can do exactly the same thing.

Now, of course, many accounts, IRAs, for example, pension plans, for example, 401ks, 403bs, life insurance, annuities.

They have traditional beneficiary designations.

So if you have those accounts, in essence, you've already bypassed probate and you've directed those assets to go directly to the beneficiaries that you've named.

So another question that would arise if you've done all of this is how long ago did you set these up?

Because if you set them up a while back, those beneficiaries that you named previously might not be the appropriate ones today.

So for lots of folks who have set up, gosh, we've run into I've lost track hundreds of 401K plans that were set up 30, 35, 40 years ago.

And they had the beneficiary name of maybe mom and dad back then.

Before they were married.

And now they've been married for 25 years and they've got kids.

And yet the beneficiary is still mom and dad.

So examining your beneficiaries extremely important, doing it on a regular basis, reviewing your estate planning documents and your beneficiaries and your Tod is obviously because we're talking about them in the same breath.

Very, very important to do to avoid, Those kind of head scratcher moments.

Not many months ago, we reported on this very show of a gentleman who passed away early 60s, left a 401k in, in, behind, left his 401k behind.

$875,000.

A lot of money.

The beneficiary was his college girlfriend.

Fascinating.

They dated for a very short period of time when he initially got his, job and signed up for the 401K.

Whether he was trying to impress her or maybe trying to woo her back.

That story has been lost to antiquity.

But he named his college girlfriend, who dated for a year and a half as the beneficiary.

Never changed it, never reviewed it, never took a look at it.

So when he passed, his family went, okay, 875,000.

I send it over and the company went.

And it's not yours.

And as you might expect, they lost it.

They they lost it, and they sued and lost and lost.

So TOD, POD, beneficiary designations.

Fabulously important.

One last item that she does ask here that is very, very important to be clear about.

She asks I assume.

Well, she she makes the statement I assume I will have the ability to use this money until I pass very important.

The answer is yes.

Lots of you.

Many of you, more than I wish to think about, have tried to do this same thing in a different way.

You have added one of your children, one of your grandchildren or more to your account.

You have added them to your account so they can sign, etc.. By doing that, you have made them part owners of that account.

So if this young lady has a $250,000 account, she adds her grandson as a, as a as a she adds him to the account.

The idea being when she's gone, it will be his.

Well, the reality is she's already given him half of her account.

He's already a half owner.

There's some real risk there.

If he has financial problems as a divorce, a bankruptcy, a lawsuit, she could end up losing a tremendous amount of money.

So adding them as a as a, as a owner is generally not the way that you want to go.

Even giving them, signature power.

Many cases.

This young lady sounds like she's sharp as a tack.

Is not the way to go.

Too much control.

You want to stay independent and in control?

Right to the very end.

Excellent question.

Thank you, sir, very much.

Sir, shall we do one more?

What do you think?

I think yes.

Converting an inherited IRA.

Question says love a show.

See, I told you compliments.

Very informative.

Educational and entertaining.

Easily amused.

My wife, 62, has an inherited IRA and has been taking the RMD for several years.

Can she convert those funds to a Roth IRA?

This would be a newer account as she does not have a current Roth IRA.

At this time she has no earned income, so she is not currently working with the converted funds be invested?

Would they need to be invested for the five year minimum?

Well, let's start with the last question.

Would they need to be invested for the five year minimum?

The answer is yes.

Five year rule for a Roth IRA is is not waived.

It's also not much of a problem.

Let's say you're putting $10,000 a year for five years into a Roth IRA, and it's earning money right along.

If in year four, not yet five, you decide to take money out, you can take out everything you've put in $40,000 of contributions.

No penalty, no tax.

You simply can't take out the earnings.

So if the first 10,000 made a thousand bucks.

Second 10,000 made 800 in 4 years, you might have three grand worth of profit in a in a $43,000 account.

You can take out 40,000.

No problem whatsoever.

So that's not a problem.

She's not currently working.

Can she contribute to a Roth IRA without having earned income?

No, that's a problem.

If she were convert or if she were contributing.

Meaning?

I'm making some money.

I want to put it into a Roth IRA.

Is it a problem to not have earned income if she's converting?

The answer is no.

That's not a problem at all.

If you are not working, you're 62.

You've got your rollover IRA from your 41K.

It's got $425,000 in it.

You're saying, hey, I've got 11 years until I have to start taking RMDs.

My income's relatively low.

I like to take money out year by year, maybe 25 or 30,000 a year, and move a tremendous amount of money into a Roth long before I have to take RMDs.

Is that a good program?

The answer is likely yes.

Is it a good plan?

Likely, yes.

Save your taxes in the long run.

Likely, yes.

That's not the question here.

Because the IRA I just described was your IRA.

This is an inherited IRA.

And inherited IRAs have different rules.

And I am very sad, very sad to tell you she cannot do this.

Certainly not directly.

Can she take $3,000 out and convert it to a Roth?

The answer is no.

Absolutely not.

Is there a backdoor method?

The answer is maybe.

Maybe if we're assuming that her husband is still working, could she have a spousal Roth IRA that she's contributing to?

The answer's yes.

And at 62 this year, she can put $8,000 in.

So if she wanted to convert $8,000, she would take it out of her, inherited IRA.

They would use those funds to fund a contribution to a Roth IRA.

There's still going to be tax.

There's still going to be tax.

There was going to be tax if she was doing a traditional conversion.

In this case, it's not traditional.

It's kind of a taking an end run.

But if he's still working she can do a spousal and it will work and she can move that money over time, largely or completely from an inherited IRA into a Roth IRA for her financial future.

Cool question.

A little bit is a little bit of strategy there.

Speaking of strategy, it's always a good idea for us to end on time, which means our questions are done, but you are not.

If you have a question that addresses anything important in your life, it is more than money after all.

So it could be financial and have to be.

Some of our most engaging questions have allowed me to be a little snarky with folks who kind of wander off, but send us those questions, Gene at ask mtm dot com, G-E-N-E at ask mtm dot com.

And that works out very very well.

One of my financial advisors will reach out to you and give you as much information as we possibly can.

If that is your intent, fantastic.

Or if it's your intent to hear what other folks are asking, what other advice we might give, then you're going to want to come back next week when we return to this podium for another edition of More Than Money.

Good night.