Retire Secure!

If you have ever received any investing advice, you have probably heard the disclaimer: past performance is not an indicator of future results. But, studying history also generates an adage: those who do not learn history are doomed to repeat it. The Lange Money Hour is proud to welcome Yale School of Management Professor Emeritus in the Practice of Finance, the esteemed Dr. Roger Ibbotson. Dr. Ibbotson has spent his career analyzing market history to make it a bit easier for investors and economists to attempt to predict how the market might perform in the future.For many economists and financial advisors, the SBBI (Stocks, Bonds, Bills, and Inflation) comparison is an indispensable resource for statistics that are needed to analyze asset class performance. Performance analysis is critical to successful investing; and top quality data is essential to balance risks and rewards.Jim and Roger will discuss the SBBI, the state of the markets in 2017, and multiple investment topics in Roger’s areas of expertise in

Uncertainly has long been the enemy of estate planning as family, financial, and even legal circumstances can change dramatically over time. An estate plan that is intricately thought through and in-line with your testamentary intent today could be inappropriate once you die.However in the early nineties, Jim began thinking creatively about this problem. Lange’s Cascading Beneficiary Plan, as it came to be called, uses specific language and disclaimers to provide the most flexibility when it is needed the most—at the time of the death of the first spouse when the surviving spouse and the family have the most current picture of their finances and family dynamics. No more guess work decades in advance. The plan was first picked up by Jane Bryant Quinn in 2001 and published in Newsweek and from there it has been featured in peer-reviewed journals and in dozens of major publications like The Wall Street Journal and Kiplinger’s.Lange Legal Group, LLC has drafted 2,444 estate planning documents to date, most of whi

Imagine that you’re twenty-two-years-old and you’ve just been drafted into the National Football League. Chances are you haven’t spent a lot of time thinking about financial planning—not many people that age have, truth be told. In a world where the average NFL career lasts just three years, how does a young player avoid the pitfalls of sudden wealth to ensure that a hefty signing bonus puts him on a path to a secure life after his contract ends. How should he plan for retirement?Are you chuckling to yourself? Maybe you think that is not going to be the first thing on his mind? You are probably correct. But, according to the National Endowment for Financial Education, about 70 percent of people who suddenly receive a windfall of cash will be broke a few years later. Is there something even we—those of us whose lives are not so high-profile—can learn from the mistakes of others?On tonight’s edition of The Lange Money Hour, CPA/Attorney Jim Lange interviews the man who has been dubbed “Hip Hop’s Financial Advis

Jonathan Clements spent almost 20 years as the primary personal finance columnist at The Wall Street Journal. He contacted Jim more than 30 times for quotes and recommendations to include in his column. They both share a passion for improving financial literacy. Jonathan is the author of multiple personal finance books, including How to Think About Money. Clearly, he has spent plenty of time thinking about how the markets behave and – perhaps just as important – how investors behave.On tonight’s edition of The Lange Money Hour, Jonathan will share his reflections and observations on some of the financial topics that have occupied his mind in 2017, including:Taming Your Instincts: One of the biggest hurdles investors face is learning to tame their hardwired instincts—good for survival, not so good for modern financial markets. Jonathan will suggest strategies for keeping your emotions in check, such as automating your investments and removing temptation, but he is also convinced that using “social pressure” is

Investing and retirement planning can be derailed by common mistakes. Emotions running the gamut from panic to hopelessness can be spurred by the ups and downs of the market. How do you stay the course? How do you find a course? How much will you need? These can feel like impossible decisions. And when it comes to understanding tax laws and Social Security, most people simply don’t have the know-how to maximize their outcomes.Trying to figure all of this out on your own can be a nightmare – and most people fall victim to a pitfall or two along the way.Tonight on the Lange Money Hour, top CPA/Attorney, and IRA expert Jim Lange will identify some of the most common investing, estate planning, and tax mistakes he has seen over and over again in his 30+ years of helping people plan for retirement.Here are just a few examples:Outdated wills that penalize your spouse.Failure to make Roth IRA contributions or have a Roth IRA conversion plan.Spending too much or too little in retirement.Asset allocation and diversif

Historically, the markets have provided long-term investors with growth that offset inflation.* But, investors without that perspective can to get jumpy when the markets go down, or feel like nothing can go wrong when the markets are up—both sentiments can lead to emotional investment decision making. And emotional decision making in investing can lead to very bad results. So, how do successful investors maintain their cool, exercise patience, and not fall victim to spur-of-the-moment irrational decisions? Having a wealth of experience really helps and having smart people conduct your research also provides a huge advantage.Tonight, P.J. and Jim will share some important lessons from their combined 60-odd years in their respective businesses, as well as some of the wisdom from their research and the research of other experts in the field.Listen tonight to benefit from sage advice from two trusted advisors.Topics will include:How trying to “time the market” can lead to disaster.Why past performance is not a go

In our daily lives, trusting our instincts is often the smartest thing to do. In an emergency, it can even save our lives. But studies have shown that when it comes to investing, your instincts are wrong more often than they’re right. Millions of people panicked and took their money out of the markets during the 2007 financial crisis – and then missed out on a huge turnaround that has segued into one of the longest bull markets in history. This week on The Lange Money Hour, CPA/Attorney Jim Lange will discuss investing with returning guest, Paul Merriman. Paul will discuss why it’s important to invest based on sound strategies and philosophies, and to stick to your plan – rather than reacting to “what just happened” on Wall Street. Paul is a nationally recognized authority on mutual funds, index investing, asset allocation, and passive and active management strategies. And like Jim, he’s spent time talking with and learning from legendary Vanguard CEO, Jack Bogle. On tonight’s program, Jim and Paul will a

What exactly is a Roth IRA conversion? What makes them such a big deal? Why would anyone in their right mind write the government a tax check before they had to? These questions and more will be answered tonight as top CPA/Attorney and IRA expert Jim Lange weighs in on the pro and cons, and the long-term and the short-term benefits of Roth IRA conversions. The fundamental distinctions between a traditional IRA and a Roth IRA is that the Roth IRA grows tax-free vs. tax deferred and there are no required minimum distributions (RMD) for the Roth owner or the owner’s spouse after the owner dies. If a Roth IRA is left to a child or grandchild, the income tax-free growth could potentially be measured in the millions, making them one of the most important and powerful tools in estate and retirement planning. The sticking point for many people is that you must pay income taxes up-front on the amount you convert from your traditional IRA to the Roth. Tonight, Jim will help listeners over this barrier giving people

How do we become leaders? What makes a good leader great? What are some of the common traits that can be found among those who rise to the top of their fields? This week on the Lange Money Hour, CPA/Attorney Jim Lange will interview Alan Olsen, a noted San Francisco-area CPA -- and a fellow radio host. Alan is the host of the Bay Area program, “American Dreams,” where he interviews some of the country’s top business leaders and entrepreneurs. On tonight’s show, Alan will share with Jim some of the lessons he has learned from talking with his impressive guests over more than 500 episodes. Jim and Alan will cover topics such as: • The Psychology of Money: How do people become “savers” or “spenders?” • The Art of Philanthropy and the idea of “universal giving.” • How do we define a true leader? • Lessons learned from prominent athletes including legendary MLB pitcher, Vida Blue. • The importance of service: How we can and should give back. To listen to the MP3 file, http://paytaxeslater.com/radiosho

Pittsburgh Mayor Bill Peduto will likely see a second term in office after defeating two challengers in the May primary election—everyone locally is familiar with his name. But, President Donald Trump’s withdrawal from the Paris Climate Agreement pushed Peduto’s name into the national spotlight. When Trump justified his actions claiming to represent the people of Pittsburgh, the Mayor struck back saying, “I’m appalled that the President used my city to justify his unacceptable decision, as most other Pittsburghers are. I was one of the nation’s mayors who went to Paris to fight for the accords, and my city, which has finally bounced back from decades of industrial carnage, will do all it can to promote its own environmental standards.” Further, he and the mayor of Paris, Ann Hidalgo, published an op-ed in The New York Times. "The Mayors of Pittsburgh and Paris: We Have Our Own Climate Deal" stressing their mutual commitment to “embracing the global challenge of climate change.” So… three week

Investing in low-cost index funds has risen sharply over the last 20 years – and for good reason. Studies have shown that the S&P 500 has historically outperformed the vast majority of active money managers. But that doesn’t necessarily mean you should be a “do it yourself” investor. DIY investors can fall victim to some very common mistakes – the biggest of which is letting their emotions -- rather than logic and data -- dictate their decisions. In fact, the numbers show that when investors listen to their “gut,” they’re wrong two out of every three times! On this episode of The Lange Money Hour, CPA and Attorney Jim Lange will welcome back his frequent guest and nationally recognized investment advisor, P.J. DiNuzzo, CEO of Pittsburgh-based DiNuzzo Index Advisors, Inc. P.J. and Jim will discuss the added value that a qualified, low-fee advisor who takes his or her fiduciary responsibility (acting in your best interest) seriously can bring to the investor/client relationship. Examples include: • Exp

Last month, Donald Trump proposed slashing taxes for both individual taxpayers and businesses. His plan, sketched out in a one-page statement given to reporters in late April, provided few details and didn’t explain how the tax cuts would be financed. The House – led by Speaker Paul Ryan – has its own ideas about tax reform, as does the Senate. There are a lot of unknowns. Which cuts will prevail? How will Congress decide? On this episode of The Lange Money Hour, CPA and Attorney Jim Lange welcomes back Laurence Kotlikoff. Kotlikoff is a renowned economics professor, columnist, and bestselling author. His recent WSJ op-ed piece indicates that he believes that the House plan is better for the economy than the Trump plan. Jim and Larry will discuss the specifics of each proposal, how they might affect you as a taxpayer and investor – and how you can prepare for the future. They’ll cover topics like: • The nuts and bolts of the House and White House plans, and why Larry thinks one is better than the other.

Should you choose a Roth or a Traditional IRA? Is a Roth IRA conversion right for you? What are the tax implications of your choices, both now and taking into account potential future tax law changes? There are so many questions it can seem impossible to develop a sound strategy, but you need to have one. Hoping for the best is not a plan. On this episode of The Lange Money Hour, CPA/Attorney Jim Lange welcomes back Ed Slott, CPA, best-selling author and one of the top IRA experts in the country. The Wall Street Journal calls Ed’s website, irahelp.com, “The best source for IRA advice .” Listen to this show and learn from the best—your financial security depends upon it. On this program, Jim and Ed discuss: • The basics of Roth IRAs • The benefits of the Roth 401K and who is eligible • Common IRA mistakes Ed has come across in recent years • Strategies to help baby boomers minimize the tax impact of required minimum distributions • The importance of long-term planning over quick fixes • What to do if your

New leadership in Washington always brings with it an element of uncertainty for Americans, as both citizens and investors. In 2017, that uncertainty has been heightened following the unprecedented election of Donald J. Trump – the first man ever elected to the nation’s highest office without political or military experience.If you’ve followed the headlines, you know that President Trump’s first 90 days in office have been a rollercoaster ride. And for investors, one of the biggest unanswered questions is what the President will do when it comes to taxes.Last week, the White House announced that the President is scrapping the tax reform plan that he touted during his campaign in favor of a new plan – one that likely won’t be ready by a previously announced August deadline. When the new plan does arrive, will it still resemble the campaign plan? Or will Trump offer an olive branch to Democrats to try to get a deal done?In this episode of The Lange Money Hour: Where Smart Money Talks, CPA/Attorney Jim Lange wil

In this episode of The Lange Money Hour: Where Smart Money Talks, we welcome tax expert Sandy Botkin. Taxes! We are all thinking about them this week—either congratulating ourselves for getting them done early or scrambling to beat the April 18th deadline. While revising the tax code may be on the government’s agenda, we are stuck with what we have for now. Avoiding costly mistakes, or better yet, taking advantage of tax breaks we are eligible for is everybody’s goal, but the IRS code is notoriously complex. Don’t miss this opportunity to learn how you can keep more money in your hands by giving less of it to Uncle Sam. And for those of you who have completed your taxes, if you learn something new, there will still be time to revise. Sandy has spent the past 20+ years teaching thousands of people how to save millions on their taxes. His expertise goes beyond simply saving money--he’ll also talk about the latest tax-related scams and how to avoid them. On the program, Jim and Sandy will comment on topics li

Making decisions about your financial future can be daunting. It’s hard to know which investment path to follow and how much risk you can tolerate. There’s a lot of noise to filter out -- from the talking heads on TV to advisors who aren’t necessarily looking out for your best interests, i.e., they are not fiduciary advisers who are legally bound to act in your best interest. You also need to evaluate whether you can navigate these choppy waters on your own, or if you would benefit from the help of an experienced, reputable advisor. In this episode of The Lange Money Hour: Where Smart Money Talks, CPA/Attorney Jim Lange and Pittsburgh-based investment expert, P.J. DiNuzzo, discuss how to invest successfully for financial independence and how to avoid the retirement pitfalls that can undermine your success. Jim and P.J. will cover: 1. Key personality traits of a successful DIY investor 2. The value of reputable advisor—both financially and in terms of peace-of-mind 3. What Gamma research and behavioral scie

In this episode of The Lange Money Hour: Where Smart Money Talks, CPA/Attorney and retirement and estate planning expert Jim Lange will discuss his flexible estate planning techniques – focusing in particular on Lange’s Cascading Beneficiary Plan. We all face uncertainty when it comes to predicting who the ideal beneficiary for any given asset will be at the time of our death. We don’t know how much money there will be because we can’t know how the market will perform. There is uncertainty about which family members will have the greatest financial need at the time of our death. Will there be an expensive illness that will mean our surviving spouse needs all of the money? Or perhaps our spouse will have plenty of money, and our children or grandchildren could use the money more. If you draft estate planning documents that don’t account for changing circumstances, your heirs likely won’t get the full benefits of your assets. This strategy, which has been featured in The Wall Street Journal, Newsweek, and

In this episode of The Lange Money Hour: Where Smart Money Talks, we welcome Brian Boswell, a subject matter expert on 529 savings plans. He is responsible for all things 529, including contributing content to the Savingforcollege.com web site, quarterly performance rankings, and media relations. Brian has worked with 529's in multiple capacities since 2001. Prior to joining Savingforcollege.com, Brian served as Director of Advisor Distribution to Ascensus College Savings (formerly Upromise Investments, Inc.), the leading administrator of 529 savings and prepaid plans. There he oversaw the advisor-related business of ACS. At FRC (Financial Research Corporation) Brian served as Subject Matter Expert for educational savings research, responsible for developing and overseeing all FRC products and services related to college savings plans. For most American parents, saving for a child’s higher education is a daunting task. Many of us don’t have the resources to begin saving early enough even if we know we s

In this episode of The Lange Money Hour: Where Smart Money Talks, we welcome Larry Swedroe, a noted researcher and nationally recognized investment expert. Larry is director of research for Buckingham Strategic Wealth. He has authored 15 books, including his latest, Your Complete Guide to Factor-Based Investing, as well as Think, Act & Invest Like Warren Buffett, among many others. Larry has made numerous appearances on TV, sharing his ideas with viewers of NBC, CNBC, CNN and Bloomberg Personal Finance. As a researcher, Larry has earned a reputation for evidence-based investing and exposing misinformation coming out in the mainstream financial media. In this episode you’re going to learn what alpha is, why most investors don’t take Warren Buffett’s advice, why active money management is a loser’s game, and we'll review Larry’s list of some of the lessons we learned from the market in 2016. TOPICS COVERED: 1. Introduction of Larry Swedroe 2. Investment Lessons from 2016 3. Active Money Management Is

In this episode of The Lange Money Hour: Where Smart Money Talks, we welcome Dan Penning. Dan is the founding member of the Penning Group Advisors and Attorneys. Mr. Penning is a nationally recognized expert in cottage law and succession planning for family-legacy assets. The Penning Group maintains offices in Suttons Bay, Grand Rapids and Novi, Michigan. Jim and Dan will talk about cottages, second homes, and answer questions such as, is second home really worth it? and is it a consumer of wealth or a producer of wealth? They'll also talk about tax laws affecting second homes, renting out and maintaining those homes, and also planning to pass your property down to the next generation. TOPICS COVERED: 1. Introduction of Dan Penning of Penning Group Advisors and Attorneys 2. Second Home Usually Is a Consumer of Wealth, Not a Producer of Wealth 3. Second Home That’s Far Away Is More Difficult to Enjoy 4. Renting Out Your Second Home Has Tax Advantages 5. Is It Smarter to Rent a Second Home Before Buying