Podcasts Business Retirement Starts Today Nobody Wants Your Stuff, Ep # 153

Nobody Wants Your Stuff, Ep # 153

Published: Aug. 17, 2020, 8 a.m.

Do you have a lot of stuff? If you said yes, you are not alone. 60% of Americans think that they have too much stuff. We\u2019ll take a look at an article that addresses this problem in the Retirement Headlines segment today. I also have 2 listener questions that I will respond to. But before we get into any of that I would love it if you could help me out and take our annual listener survey. After you take the survey, press play to learn more to help you make the most of the only retirement you\u2019ll get.\xa0

Outline of This Episode
  • [2:42] How to get rid of stuff
  • [10:09] The 5-year conversion rule
  • [15:39] Guyton-Clinger rules
We\u2019re ready to hear your voice with our annual listener survey

Before we get into our Retirement Headline, I would love it if you could help me out and take our annual listener survey. This 10 question survey only takes a few minutes and it helps me guide the topics of the show next year. You can tell me what you love and don\u2019t love about the show. You can also voice your opinion and let me know what kind of topics you\u2019d like to hear more about. I\u2019d love to hear all of your opinions, so please make your voices heard by responding to this survey!

Do you have too much stuff?

I am like most people in America, I feel like I have too much stuff. But with 6 kids at home, I\u2019m just going to have to deal with it for a bit longer. Recently, I came across an article that had an interview with the author of Downsizing. The interview with the \u201cKing of Downsizing\u201d highlights why we have so much and what we can do to get rid of it.\xa0

He remarks that early retirement provides a window of opportunity for downsizing and shedding away those things that you don\u2019t need anymore. Once people reach their 70s, 80s, and beyond the ability to stoop and crouch can be limited which can make downsizing much more difficult.

Tips for downsizing

When we finally decide to relinquish our possessions there is a hierarchy of ways to part with them.

  1. Give it away - when we pass on a special object to someone who shares a similar attachment to the item it makes everyone happy.
  2. Sell it - if the item still has some value then selling it is a great option.
  3. Donate it - giving the item to someone who needs it more can still make you feel good.\xa0
  4. Throw it away - this sometimes has an added cost to it. You may need to pay someone else to help you get rid of it.\xa0

Often the downsizing process takes between 2-6 months. The experts recommend giving yourself a deadline to complete the process. This article had some interesting ideas that I hadn\u2019t thought of. Press play to hear advice for receiving your parents\u2019 stuff.\xa0

A 5-year Roth conversion rule clarification

Gerry had a question about Roth contributions and conversions after age 59 \xbd. We all know that after age 59 \xbd we no longer subject to the early withdrawal penalty, but what about the 5-year rule? What triggers the 5-year rule?\xa0

The 5-year rule can be a bit confusing, so here are the basics. At age 59\xbd, you can withdraw both your contributions and your earnings with no penalty provided your Roth IRA has been open for at least five tax years.\xa0

The 5-year rule is triggered by three circumstances:\xa0

  • You withdraw earnings from your Roth IRA
  • You convert a traditional IRA to a Roth IRA
  • You inherit a Roth IRA

Are you curious to find out what you can do to make sure that you have no issues with the 5-year rule? Make sure to listen in to hear the full answer to Gerry\u2019s question and you\u2019ll also learn what kinds of funds you can use to build a Guyton-Clinger model.\xa0

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