Financial Lessons from Mark Twain & Picking the Right IRA

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The Story:

We look at several quotes from Mark Twain in today’s episode to see how it may apply in our own financial life. Then, we talk through traditional and Roth IRAs to see which is better for you.

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The Show:

If someone told you life would look like what it does now, would you believe them? Probably not. Mark Twain said, “There is nothing that cannot happen today.”  That notion feels so true right now as we deal with the impact of coronavirus. Because we can’t always know what’s coming, it’s important to structure your savings and your financial plan in a way that allows for the unexpected.

All of the evidence shows that timing the market doesn’t work. People tend to do the opposite of what they should do, which is to buy low and sell high. You have to consider what kind of investments you are making and what is happening with your emotions.

Do you understand what you are talking about when you mention the stock market? What stock market has done the best this year? Do you have a balanced portfolio? What is your range of returns?

Finally, Don talks about the power of the Roth IRA. Do you know whether you should contribute to a traditional or Roth IRA? Where did the traditional IRA start and why is it popular? What benefits could you gain from contributing to a Roth IRA instead?

Listen to the full episode or click on the timestamps to jump ahead to a specific segment.

[0:31] – Don shares his summer plans and how they’ve had to change.

[2:17] What can we learn about money from Mark Twain?

[4:13] – Thinking the market will always go up can lead to panic when it doesn’t.

[6:18] – October…and basically all of our months are dangerous for stocks.

[7:57] – What are people talking about when they mention the stock market?

[9:34] – A balanced portfolio does better during turbulent times.

[11:19] – Choosing between a traditional and Roth IRA.

[13:12] – What is the power of the Roth IRA?

[14:33] – What’s the difference between a Roth conversion and contribution?

[16:23] – Who should contribute to a traditional and who should contribute to a Roth IRA?

[18:25] – How does the Roth conversion work?

Resources from the Show:

Roth Conversions –

https://www.kiplinger.com/article/retirement/T046-C000-S004-a-great-year-for-a-roth-conversion.html

Seinfeld – Do the opposite

https://youtu.be/cKUvKE3bQlY

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Additional Resources:

Phone: (732) 784-2867

Email: don@donaldcash.com

Website: http://www.donaldcash.com/

About Don:

Donald W. Cash – CPA, CFP® is an independent advisor. Don began his career in 1985 as an accountant after graduating Rutgers University. In 1990 he entered the field of Estate Planning with a concentration in long term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs. He advocates a holistic approach to Estate and Financial Planning as has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers. Don is married to Cathy and have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.

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