Red Barn Financial Podcast

In this episode of the Red Barn Financial Podcast, Sean Moran talks about ways to reduce or eliminate debt.  It's often a strategy and a process and we talk through the ways in which to make this happen for you.   Are you committed to paying down your debt this year?   Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919

In this episode of the Red Barn Financial Podcast, I talk about ways to make your charitable giving go further with some tax efficient ideas.  I share the keys to giving and finding where your philanthropy can have the most impact. The use of a Donor Advised Fund (DAF) or making a Qualified Charitable Distribution (QCD) from an IRA are two potential ways to improve your giving by paying less in taxes, thereby leaving more for the charity or less of a tax burden for yourself. Giving appreciated stock vs. selling the stock and giving cash, and many more topics are discussed.   Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919

When one spouse passes there is a little known and unintended consequence from a tax perspective.  It's often called the Widow Penalty.  This is the result of the fact that generally a retired married couple lives on close to the same amount of money (because of the shared household expenses) when they are both alive as compared to when one passes. The issues comes from the fact that now the surviving spouse is single and their standard deduction is cut in half.  In 2024 that would be from $29,200 married filing joint vs $14,600 if they were single. Additionally, the amount of income they can earn per each tax bracket is roughly half of what it would be if they were still considered married.   For example, a Married couple with $201,050 of taxable income would be at the top of the 22% tax bracket, while a single person with the same income would be in the 32% bracket, some 10% and 2 brackets higher. The best way to avoid this is to be proactive with your tax planning. A financial advisor such as myself can help you with this.   Disclaimer:  This podcast is not tax, legal or financial advice.  Every person's situation is different.   If you would like to discuss your personal situation, feel free to reach out to Sean at 615-619-6919, email smoran@redbarnfinancial or schedule a meeting at Calendly.com/spmoran

In this episode of the Red Barn Financial Podcast, Sean Moran shares the different strategies for investing at different stages of your life.  One example is when you are younger, you might want to put your retirement funds in Roth accounts as your tax liability is low, so a tax deduction might not be as valuable.  As you reach the peak of your career, you may be in the highest tax brackets and want to reduce your taxes, in which case the traditional 401(k) or IRA might be a better choice.   If you have a lot of money in your traditional accounts, you might want to consider Roth so that your RMDs (Required Minimum Distributions) are lower. Working with a financial advisor can help you choose the best strategies.   Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919

Are you the fortunate recipient of an inherited IRA? This podcast episode is your essential guide to understanding and maximizing your inherited IRA. We'll delve into the complexities of different inheritance scenarios, explore the rules and regulations governing inherited IRAs, and provide practical tips for making informed decisions about your financial future. Key Topics: Different Inheritance Scenarios: Understand the nuances of inherited IRAs based on your relationship to the deceased. Required Minimum Distributions (RMDs): Learn about the mandatory withdrawals you'll need to make from an inherited IRA. Tax Implications: Explore the tax consequences of withdrawing funds from an inherited IRA and strategies to minimize your tax burden. Stretching RMDs: Discover how to potentially extend the withdrawal period for an inherited IRA, allowing you to spread out tax payments. Roth Conversions: Explore the benefits and drawbacks of converting a traditional inherited IRA to a Roth IRA. Estate Planning Considerations: Understand how inherited IRAs can impact your overall estate plan and how to plan for future generations.     Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919

Pitfalls of Early Retirement Account Withdrawals The video provides information about early withdrawals from retirement accounts. The speaker discusses what an early withdrawal is, the penalties associated with it, and the circumstances under which you may be able to avoid those penalties. Some of the key points from the video include: Early withdrawals are any withdrawals taken from your retirement account before you reach age 59 and a half. Early withdrawals are subject to a 10% penalty on top of the regular taxes. There are some exceptions to the 10% penalty, including death, permanent disability, unreimbursed medical expenses, birth or adoption, qualified higher education expenses, first-time homebuyer expenses, military reservist duty, and rollovers. It's important to consult with a financial advisor or tax professional to determine if you qualify for any of the exceptions and to understand the potential tax implications of taking an early withdrawal. Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919

Ep. 81 Tax Efficient Funding of a Major Purchase (House, Car, etc.) In this episode I share how I helped a client with funding a home downpayment, but this process can work with any amount and any major purchase.   The key here is to avoid penalties and keep our taxes to a minimum.  Here is the spreadsheet used to walk through this.  When you have an annuity, they often come with surrender charges if you cash them in early.  In this case it was over $20k on one of them and the other we didn't have the information available, but it was going to be some number, likely around 8-10% as well.  This is a hefty fee to pay and made us decide not to use them.  With the inherited IRAs, while they are taxable, to most people they will not have early withdrawal penalties.  An individual brokerage generally will have capital gains but if there are capital losses to offset them it could be a good place to draw from ad there isn't an income tax.  Consolidating accoutns was another factor we took into account.   Disclaimer:  This is not tax, legal or investment advice.  Each person's circumstance is different and your situation may be different.  Feel free to reach out for a consultation.   Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919 

When choosing a financial advisor, there are a number of questions you want to ask.  In this episode of the Red Barn Financial Podcast, Sean Moran answers the Top 5 questions:   Is the advisor licensed?  Are they truly a financial advisor or are they an insurance agent or coach that gave themselves a fancy name? Don't just pick the first advisor you meet.  Make sure you interview a few to determine if you are picking the right one.  Just like you wouldn't buy the first house you looked at without seeing a few more, make sure you know you are picking the best advisor for you. Choose someone who is aligned with your values - whether it's faith based investing, ESG, giving to charity, retiring early or another value you have.  Be sure your advisor understands your goals and is aligned and committed to helping you achieve them. Understand the fees - Does your advisor charge an Assets Under Management (AUM) fee, do they charge hourly, do they get commissions for selling you products?  You want to know which applies and whether you are comfortable with that method.   Do Your Homework - Look at Google reviews, see if the advisor has been recognized in their community, check out their website and understand if they have done the things you need before.   Disclaimer: This podcast is for informational purposes only. It is not tax, legal or financial advice. What is right for one person may not be right for another depending on their circumstances. If you would like to contact us please email smoran@redbarnfinancial.com To learn more about Red Barn Financial and the services we provide visit www.redbarnfinancial.com: 

In this episode of the Red Barn Financial Podcast, Sean Moran talks about the areas in the Bible where it speaks about money.  This is only scratching the surface, because there are over 2,500 verses that talk about money. If you feel convicted to do what God is calling you to do with your money, specifically being a good steward of what has been given to you, reach out.  We can help you with budgeting, intentional giving, putting money away for the future and tax advantaged ways to give.   Disclaimer: This podcast is for informational purposes only. It is not tax, legal or financial advice. What is right for one person may not be right for another depending on their circumstances. If you would like to contact us please email smoran@redbarnfinancial.com To learn more about Red Barn Financial and the services we provide visit www.redbarnfinancial.com

Ep 78 Why Drawing From Your Retirement Account Early is a Costly Mistake   Many times people take money out of their retirement account early so they can pay bills, because they changed jobs or for "easy access" to their money.  In this episode of the Red Barn Financial Podcast, Sean Moran shares why this could be a costly mistake, but in the current year as well as in future years.   This includes the tax cost, the penalties and the fact that you will not have the money there for your future when you take it out today.   Disclaimer:  This podcast is for informational purposes only.  It is not tax, legal or financial advice.  What is right for one person may not be right for another depending on their circumstances. If you would like to contact us please email smoran@redbarnfinancial.com  To learn more about Red Barn Financial and the services we provide visit www.redbarnfinancial.com 

Taxes Done? You're NOT Finished Yet! Here's Why When you finish your tax return you want to understand what happened, what you can do for the next year to save taxes or to strategically prepare yourself for future years. In this episode of the Red Barn Financial Podcast, Sean will talk about what to look for on your tax return and things that you could look into further so that you might potentially pay less taxes in future years. Sean Moran is a financial advisor specializing in retirement planning, college planning, life insurance, disability insurance, Long Term Care insurance and a holistic approach to your personal finances. Sean has clients in NJ, TN, VA, TX and would love to help you either locally or virtually. Sean is an author, former corporate tax professional and entrepreneur. He holds a BS from York College of PA and a Masters of Taxation from Fairleigh Dickinson University. If you are interested in learning more, you can contact Sean at: smoran@redbarnfinancial.com or schedule a meeting here: calendly.com/spmoran Disclaimer:  The information in this podcast is not tax, legal or financial advice.  Each person's situation is unique and you should speak with your financial advisor and tax advisor to be sure your plan works for you.   Red Barn Financial LLC offers securities through Ad Deum Funds, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitationfor the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

In this episode I share some times when spending more money will save you money. As a financial advisor, I often advocate for people to save money for their future, but there are many times when spending more money can save you money in the long run. One example is for a quality "once in a lifetime" experience.  There is a balance between spending the most and the least you can possibly spend, but there are times to splurge a bit. Another place can be quality items like good shoes that last a long time or a good car that will not fall apart. I also share bonus material on how you can spend a bit more and still save.     For more information on Red Barn Financial and what we can do for you, visit www.redbarnfinancial or call us at 615-619-6919 for a consultation. Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com

Ep. 75 Taking Money out of your Retirement Account Can Destroy Your Financial Life In a podcast by Sean Moran, a financial advisor with Red Barn Financial, discourages people from withdrawing money from their retirement accounts before reaching the age of 59 and a half due to tax penalties and the added tax cost. The podcast discusses two real-life scenarios where people made such mistakes. In the first scenario, a couple withdrew $700,000 from their retirement account to buy a vacation home. This resulted in a 10% penalty and pushed them into a higher tax bracket. In the second scenario, a person gave their ex-spouse $25,000 from their retirement account during a divorce. The speaker explains that there could have been ways to avoid the penalty if the money was transferred directly to the ex-spouse's IRA instead. Overall, the podcast emphasizes the importance of consulting with a financial advisor before taking any money out of a retirement account. Planning ahead can help you avoid costly mistakes. In this episode of the Red Barn Financial podcast, I share two different stories of people that have taken money out of their 401(k) or retirement plans. Cashing out your retirement account is often a terrible idea.   Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact us for our free guide or any other reason, please email smoran@redbarnfinancial.com

In this Episode of the Red Barn Financial Podcast I get the opportunity to interview Jackson Matheson of the Wood Group of Fairway Mortgage.   He shares his experiences and the reason why he is passionate about the Home Equity Conversion Mortgage (HECM).  Jackson shares why this tool gives you an opportunity to make sure you are financially secure in retirement and opens up one of the largest assets most of us have to use to fund things we need in retirement. Jackson's contact information: Jackson Matheson Loan Officer NMLS# 1978746   Office: 615-628-7228 eFax: 866-728-8617 Cell: 530.774.8246 1220 Marathon Drive Murfreesboro, TN 37129   Some statistics that Jackson shared: Notable statistics for the Baby Boomer generation: 27% have no retirement savings 70% will need some form of long-term care 39% get divorced 75% have debt Over 50% of boomers rely on social security either heavily or entirely 10,000 baby boomers turn 62 each day (of which 30%-40% will carry a traditional mortgage payment into retirement) Disclaimer: The information contained herein is not tax, legal or investment advice. Please reach out if you would like to discuss you particular circumstances. If you would like to contact Red Barn Financial please email smoran@redbarnfinancial.com or call 615-619-6919.  To learn more about our firm, visit www.redbarnfinancial.com    Note:  Red Barn Financial is independent of it's guests and nothing in this podcast should be construed as an endorsement or recommendation to use any of the products or services discussed.  Each person should assess their financial needs with a financial advisor like us.

A recent study by Boston College recommends ending 401(k) and IRA tax benefits in order to use the extra tax revenue to fund Social Security. I share in this podcast episode why I think that could be a bad idea that would lead to more issues for retirees in the future, which would mean simply transferring the problem to the future. The Center for Retirement Retirement Research at Boston College said that about $185 billion of more revenue would be collected by the IRS each year if people couldn't deduct their 401(k) or IRA contributions.   I believe this would result in less savings for the future.  If people choose not to save for retirement because there is no immediate benefit, they are likely to spend that money instead.   You can learn more about it in this article Disclaimer:  The informaiton contained in this podcast is not tax, legal or investment advice.  Everyone's circumstances are different. If you would like to discuss your informaiton specifically please contact us at 615-619-6919 or email smoran@redbarnfinancial.com