Episodes

  • Five Common IRS Letters Explained, Ep #260

    Five Common IRS Letters Explained, Ep #260
    Jun 29 2026
    Six Essential Tips for Any IRS Letter Before diving into the specifics of the five most common letters, we share six universal tips to ground your response: Don't Panic – IRS notices are routine, and millions are sent each year. Receiving one doesn't mean you're uniquely targeted.Read Carefully – Understand exactly what the notice is about, and pay close attention to response deadlines, which are usually 30–60 days.Check the Notice Number – The code (CP2000, CP14, etc.) is a quick indicator of what issue the letter addresses.Verify Accuracy – Make sure you agree with what the IRS claims before responding.Respond Promptly – Ignoring the notice only escalates the situation.Recognize Communication Scams – The IRS will only contact you via postal mail, never by phone, text, or email. Delete any digital messages claiming to be from the IRS. 1. CP2000: Underreported Income The most anxiety-inducing letter is the CP2000, which suggests your reported income doesn't match what the IRS received from employers, banks, or investment firms. It usually happens when a W-2 or 1099 is forgotten or lost—perhaps from an overlooked brokerage account or stock plan. If you agree with the IRS assessment, the fix is easy: sign, pay, and you're done. If you disagree, submit a written response with supporting documentation. The best strategy is to prevent these in the first place by tracking every form and matching them up during tax prep. 2. CP14: Balance Due Notices This is the IRS's formal heads-up that you owe additional tax, interest, or penalties. Often, it's a result of not paying the owed amount with your return or missing a payment deadline. With interest rates rising in recent years, CP14 letters for underpayment penalties have become more commonplace. Quick action on your part reduces further penalties and interest. 3. Letter 5071C/4883C: Identity Verification The IRS likely suspects that your return could be fraudulent—or simply that it contains inconsistencies, such as a new address or a filing status change. Unfortunately, refunds are frozen until you complete verification, which is usually best done online due to IRS call volume. Though inconvenient, this step helps prevent scammers from receiving refunds in your name. 4. CP60/4870: Removed Payments & Bank Errors The CP60 notifies you that a payment or credit applied to your IRS account was reversed, perhaps due to a clerical error like misapplied Social Security numbers or tax years. Closely related, Notice 4870 penalizes you for insufficient funds if your electronic payment bounces—at a rate of 2% of the amount due, which stings when balances are high. Always double-check bank details and ensure funds are present when scheduling payments. 5. CP30A: Underpayment Penalty Charges If you were surprised by an interest charge after filing, it's likely a CP30A. This means your total payments through withholding or estimated taxes fell short, so the IRS is charging underpayment interest—currently around 7–8%. For those with irregular income (like business owners or those with bonuses), you can sometimes reduce the penalty by clarifying when income was received. Stay Diligent and Proactive IRS notices are an unfortunate but normal part of adult financial life. The best defense is to maintain diligent records, clarify any confusion before acting, and, if needed, seek out a qualified financial advisor for help. Many issues are quickly resolved once you respond—just don't let anxiety freeze you from taking action. Outline of This Episode [00:00] Dealing with IRS letter anxiety[05:53] Handling tax discrepancies[09:37] IRS identity verification process[12:48] IRS payment errors explained[15:19] Underpayment interest and IRS notices[18:13] Keeping accurate financial records Resources & People Mentioned The Retirement Podcast Network The Dreaded IRS Letter: Dealing with a CP2000, Ep #95 - Financial Symmetry, Inc. Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINCFollow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    20 mins
  • When Should You Make a Roth IRA Withdrawal?, Ep #259

    When Should You Make a Roth IRA Withdrawal?, Ep #259
    Jun 8 2026
    When it comes to retirement savings, Roth IRAs are among the most powerful tools for achieving tax diversification and financial flexibility. Knowing how and when to tap into your Roth IRA can make a tremendous difference in optimizing your tax situation, ensuring income over the years, and even establishing a valuable legacy for your heirs. On the podcast this week, we're digging into the strategic considerations around Roth IRA withdrawals, covering timing, special scenarios, tax rules, and advanced planning for both your retirement and your family's future. Roth IRA Withdrawal Rules Before you even think about crafting a withdrawal strategy, it's essential to understand the rules that govern Roth IRA distributions: Contributions: The money you contribute to your Roth IRA can be withdrawn at any time, free of taxes and penalties. This is because you've already paid taxes on these funds.Earnings (Growth): The gains in your Roth IRA—the earnings on your contributions—are subject to stricter rules. To withdraw these growth dollars tax- and penalty-free, you generally must:Be at least 59½ years old.Have held the Roth IRA for at least five years Roth IRAs offer unique flexibility since they aren't subject to required minimum distributions (RMDs) during the account owner's lifetime, allowing for long-term, strategic use. Timing Your Withdrawals: Three Key Life Phases Pre-Retirement Flexibility Withdrawing from your Roth IRA before retirement isn't common, but certain life events may make it necessary. Common scenarios include college costs not fully covered by a 529 plan, job loss or layoff, with the Roth IRA serving as an emergency fund if you lack other options, or a first-time home purchase, with special provisions allowing up to $10,000 of earnings to be withdrawn penalty-free for this purpose. While, ideally, your Roth contributions keep compounding for retirement, knowing that you can access them penalty-free if needed provides valuable peace of mind—especially for younger savers balancing competing priorities. Strategic Retirement Withdrawals Once you reach retirement, timing and tax strategy become crucial. Most advisors recommend tapping taxable brokerage and pre-tax accounts (like traditional IRAs or 401(k)s) first, saving Roth IRA withdrawals for years when you need extra flexibility. Scenarios where a Roth withdrawal is especially powerful include when you want to avoid higher tax brackets or Medicare surcharges, or you want to maximize healthcare subsidies. Withdrawing from your Roth IRA rather than from pre-tax accounts can help keep income below the "cliff" and preserve valuable subsidies. Careful coordination, often with personalized modeling or tax projections, ensures you maximize lifetime tax efficiency—not just minimize taxes in a single year. Legacy and Heir Planning For many, the ultimate goal is to leave a financial legacy. The Roth IRA shines here because withdrawals by beneficiaries are tax-free, although subject to a 10-year withdrawal rule for most non-spouse heirs. By positioning the Roth IRA as a legacy asset, you create flexibility for both yourself and your beneficiaries while minimizing future tax headaches. Why a Personalized Withdrawal Strategy Matters Retirement income planning is complex, with countless moving parts: tax brackets, healthcare premiums, surprise expenses, and more. The accumulation phase may seem simpler, but the drawdown phase is where careful coordination—and making the most of your Roth IRA—ensures long-term success and peace of mind. Detailed, personalized planning is the key to maximizing your savings and retiring with confidence. Outline of This Episode [01:08] Roth IRAs will likely be used for withdrawals eventually, but not typically first [03:54] Why you might make pre-retirement withdrawals[06:08] Roth IRA withdrawals in retirement[08:00] Managing withdrawals to optimize taxes[12:19] Managing pre-tax and after-tax accounts[14:55] Personalized financial planning and tax strategies Resources & People Mentioned The Retirement Podcast Network Roth Conversion by the Decades, Ep #171 Which Roth Account Is the Right Scoop for You? Ep #245 Your Retirement Secret Weapon: The Mega Backdoor Roth, Ep 144 Connect With Chad and Cameron https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINCFollow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    16 mins
  • Diversifying Without a Big Tax Bill with Mike Eklund, Ep #258

    Diversifying Without a Big Tax Bill with Mike Eklund, Ep #258
    May 18 2026
    Holding a significant portion of your wealth in one or a handful of individual stocks can be both exhilarating and nerve-wracking. While the rewards of watching a single company's meteoric rise can be life-changing, the risks of a lack of diversification are just as great. The problem is that liquidating these positions often means getting hit with daunting tax bills. We walk through practical solutions and the new tools now available to investors seeking diversification without immediate tax consequences. The Real Risk of Concentration It's tempting to simply hang onto a winning stock, postponing taxes until you're in a lower bracket or retired. But over 90% of stocks underperform the market long term. Individual company fortunes can change abruptly—think Enron, Lehman Brothers, or stock collapses from $50 to $0.50. Banking your whole plan on one company's continued success is a risk that can jeopardize even the soundest of financial plans. Taking calculated steps to shift your assets, even if taxes are due eventually, is often essential for long-term stability. Modern Options for Tackling Concentrated Stock Technology and innovation in the investment industry are opening doors once reserved for the ultra-wealthy. Here are four tax-deferral solutions we discuss: 1. Exchange Funds Exchange funds allow investors to pool their highly appreciated stocks with others, resulting in a diversified basket—often 20–30 stocks. You maintain your original cost basis, and after a 7-year lock-up period, you can access a more diversified portfolio. There are usually high entry minimums ($250,000–$500,000) and the investor must be an accredited. It requires a long holding period and comes with added complexity, costs, and delayed K-1 tax forms. At the end, you still owe taxes if you sell, but you've reduced single-stock risk. 2. Section 351 Funds If you hold several different stocks or even ETFs that no longer fit your strategy, Section 351 exchanges allow you to transfer them into a new, broadly diversified fund with tax deferral. This is similar in spirit to a 1031 real estate exchange but designed for securities. This option gives you flexibility, but it only works with publicly traded investments in taxable (not retirement) accounts 3. Separately Managed Accounts (SMAs) SMAs have become popular for allowing greater customization. In an SMA, instead of owning an index fund, you hold the constituent stocks directly—allowing for tax loss harvesting and the exclusion of specific stocks. This offers personalized values-based investing but creates more complex tax reporting and can create complications for you and your CPA. 4. Tax Aware Long/Short Strategies Recently popular but highly complex, these leverage SMAs and add a long/short overlay, aiming to maximize loss harvesting regardless of overall market conditions. This uses leverage and shorting, increasing risk and management costs. It gives greater potential for tax loss harvesting, but introduces tracking error and liquidity constraints. This is best for specific, high-need scenarios. Keep Your Broader Plan in Mind Always return to your broader financial plan. Look at that accumulated stock position in the context of your overall financial plan and everything else that's happening in your goals and life. These tactics are tools, not silver bullets. Sometimes, the simplest (if less glamorous) move—selling, paying taxes, and reinvesting—might be your best decision. Concentrated stock positions can be both an opportunity and a source of anxiety. Before chasing the latest "shiny object," evaluate your situation with the help of an advisor. Find the approach that aligns with your risk, liquidity needs, and long-term goals. Sometimes, boring really is better—for both your taxes and your sleep. Outline of This Episode 00:00 Discussing tax deferral options03:42 Risks of relying on stocks09:14 Evaluating stock donation options12:49 Explaining Section 351 funds14:29 Using ETFs for tax deferral18:24 Considering life changes for tax planning21:57 Evaluating investment advice sources Resources & People Mentioned The Retirement Podcast Network Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINCFollow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    25 mins
  • Managing Your Portfolio Amid Market Noise in 2026 with Colton Tickle and Mike Eklund, Ep #257

    Managing Your Portfolio Amid Market Noise in 2026 with Colton Tickle and Mike Eklund, Ep #257
    May 4 2026
    The first quarter of 2026 brought a whirlwind of market events—geopolitical shocks, surging energy prices, and a notable shift away from mega-cap US growth stocks. Despite the turbulence, the markets proved remarkably resilient, underscoring the importance of diversification and a long-term approach. We discuss lessons investors can use to navigate uncertainty and build lasting wealth. Market Performance: Weathering the Storm The global markets were down about 2.7% in Q1 2026, a relatively modest decline given the scale of bad news, including significant geopolitical events like military conflicts in Iran and political surprises such as Trump acquiring Greenland. The markets absorbed a lot of negative data, yet diversification protected against steeper losses. Volatility is expected in financial markets. Every year presents reasons to doubt or withdraw, but those who stay invested and look beyond the day-to-day noise are generally rewarded. History shows markets tend to recover and even thrive in the aftermath of geopolitical turmoil, with average positive returns 6 to 12 months after such events. The Power of Staying Invested Over the Long Term Despite periodic shocks, a disciplined investor reaps significant rewards. From 1970 onward, investing a dollar in global equities would now be worth $142, provided the investor simply did nothing and held on. This long-term mindset is crucial. Panicking in response to short-term news and market swings risks locking in losses and missing the eventual recovery and growth. Instead, reframing volatility as the price paid for higher returns can foster the discipline needed for long-term success. Back to Attractive Bond Yields After years of muted performance, bonds are providing meaningful yields again. Short and intermediate-term bonds were roughly flat in Q1, but today's yields—often in the 3 to 5% range—set the stage for more attractive future returns. Focus on high-quality, short maturity bonds to reduce unnecessary risk and secure a reliable income. Gold, Silver, and Bitcoin Safe-haven assets like gold and silver attracted attention amid market turbulence, with gold jumping nearly 8% this quarter. However, over the long run, gold pales compared to the S&P 500: from 1970, $1 in the S&P 500 grew to $341, while gold reached only $132. Gold and silver can take years, even decades, to recover from drawdowns, making them risky for wealth building. Bitcoin's rollercoaster ride further illustrates this point. It's experienced five separate drops of over 70%—far more volatility than traditional stock indices. Diversification and Valuation Discipline and diversification—investing across regions, sectors, and asset classes—remain the best defense against unpredictable events. US small cap value stocks, for example, have outperformed the S&P 500 since 2001. No one can reliably pick the "best" asset every year; a diversified allocation ensures you participate in long-term growth while minimizing drastic falls. Valuations also matter, if not as timing tools then as guides for future returns. Currently, international stocks offer more attractive valuations than US stocks, hinting at potential for higher future gains. Outline of This Episode [00:00] Analyzing long-term market trends[02:12] Volatility is expected in financial markets.[05:37] Conservative bond strategy advice[06:19] Gold, silver, and bitcoin are not substitutes for equities[08:45] Evaluating asset class performance[10:30] The Financial Symmetry three-step process[11:31] Start investing early advantage Resources & People Mentioned The Retirement Podcast NetworkColton Tickle on LinkedInMike Eklund on LinkedIn Connect With Chad and Mike https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINCFollow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    13 mins
  • How Your Money Scripts Impact Your Path to Financial Freedom, Ep #256

    How Your Money Scripts Impact Your Path to Financial Freedom, Ep #256
    Mar 30 2026
    Financial independence isn't just about hitting a certain net worth or reaching a magic retirement number, it's a personal journey shaped by your habits, values, and the emotional baggage that money can carry. In this episode of the Financial Symmetry Show, we dig into Morgan Housel's "The Art of Spending Money," exploring the spectrum from financial dependence to independence. The Financial Independence Spectrum The path to financial independence isn't a straight line, nor is it solely defined by the size of your bank account. You could have a net worth of $10 million, $20 million, or more and still be fully financially dependent—perhaps on an employer, a board, or circumstances outside your control. Morgan Housel's framework outlines 15 levels of financial dependence and independence. Where you fall on this spectrum is shaped as much by your comfort zone, habits, and attitudes toward spending and saving as by your net worth. Someone making several million a year could feel just as constrained as someone living paycheck to paycheck if their spending or obligations keep them tethered to external demands. The Psychology of Spending The art of managing your finances goes far beyond crunching numbers. It requires conscious reflection on your spending habits and your emotional relationship with money. This is where the idea of "money scripts" comes in—subconscious beliefs and habits inherited from our upbringing or past experiences. These scripts can keep us locked in certain behaviors, such as an aversion to debt or an urge to accumulate at all costs, even if we've "outgrown" the underlying need that sparked them. Moving up the independence scale may require challenging these scripts and redefining what financial comfort means to you. Rethinking Wealth: The Value of Unspent Money A powerful theme from Housel's book is the idea that money you haven't spent still offers great value—freedom, flexibility, and the ability to shape your life according to your own terms. Unspent money isn't just idle; it buys intangible benefits like independence and control over your time. This view reframes common advice about spending more freely earlier in life or racing to pay off debts—even if it means missing out on long-term growth or flexibility. For many, retaining a mortgage at a low rate or holding investments for future choices can be as empowering as reaching zero debt. The key is striking the right balance between emotional comfort and financial efficiency. Defining Your Independence The episode spends significant time unpacking levels 8–15 of Housel's spectrum—the stages where true autonomy takes shape. At these levels, you're free from the need for outside validation, able to avoid most debt, and no longer dependent on a paycheck to maintain your lifestyle. For some, a "slim" lifestyle and modest spending can deliver just as much security as a vast portfolio, while for others, continued work remains meaningful and fulfilling. At the highest levels, you possess "walk away money"—the resources to exit any situation, disagree respectfully, and pursue your own path without concern for financial repercussions. Define what you want your money to accomplish—not just for yourself, but for your family and community. Where do you fall on the dependence-to-independence spectrum? What would greater independence mean for your life, your family, and your legacy? Start by identifying your current level, reflect on the beliefs holding you back, and explore new, fulfilled ways of using your resources. Outline of This Episode [00:00] Shifting perspectives on retirement spending [04:16] Understanding financial independence levels [08:24] Examining higher levels of independence [15:45] Facing financial fears in retirement [19:34] Rethinking spending habits and goals [20:26] Finding your current level and setting personal targets Resources & People Mentioned The Retirement Podcast Network The Art of Spending Money: Simple Choices for a Richer Life by Morgan Housel Connect With Chad and Allison https://www.financialsymmetry.com/podcast-archive/ Connect on Twitter @csmithraleigh @TeamFSINC Follow Financial Symmetry on Facebook Subscribe To This Podcast Apple Podcasts <> Stitcher <> Google Play
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    21 mins
  • How Caregiving Affects Women's Financial Health with Hayley Modlin, Niamh Douglas, and Darian Billingsley, Ep #255

    How Caregiving Affects Women's Financial Health with Hayley Modlin, Niamh Douglas, and Darian Billingsley, Ep #255
    Mar 6 2026

    As women are living longer than men—on average, 5 to 7 years more—the later decades of life promise opportunities to cherish freedom and fulfillment. Yet, as this International Women's Day episode of the Financial Symmetry Show reveals, these extra years often come with both unique financial challenges and disproportionate caregiving responsibilities. Allison Berger bring together Haley Modlin, Niamh Douglas, and Darian Billingsley to spotlight how the "Give to Gain" theme resonates deeply with women navigating retirement and caring for loved ones.

    We discuss:

    • The Economic Impacts and Cost of Care
    • Employment Factors & the Financial Impact on Women
    • The Impacts to your Financial Plan
    • Tax Implications

    ***********

    📰 See the full show notes here

    🌐 Sign up here to receive a detailed pre-retirement checklist to ensure you are positioned to experience your ideal retirement.

    🌐Download 5 Questions You Should Ask a Financial Advisor here
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    24 mins
  • Planning for an Unexpected Inheritance in Retirement, Ep #254

    Planning for an Unexpected Inheritance in Retirement, Ep #254
    Feb 17 2026

    Receiving an unexpected inheritance while already in retirement can spark a mixture of emotions—gratitude, uncertainty, and even a bit of overwhelm.

    In this episode, we dig into the practical and emotional aspects of managing an inheritance, answer common questions, and guide listeners toward making wise and meaningful decisions.

    With over $105 trillion expected to change hands in the coming decades, the need to understand how best to handle inherited wealth has never been more important.

    We discuss:

    • Assessing Your Inheritance: What Did You Actually Receive?
    • Understanding Tax Implications
    • Honoring Family and Planning Ahead
    • Proactive Estate Planning
    • A Helpful Framework To Help Start the Discussion Early

    ***********

    📰 See the full show notes here

    🌐 Sign up here to receive a detailed pre-retirement checklist to ensure you are positioned to experience your ideal retirement.

    🌐Download 5 Questions You Should Ask a Financial Advisor here
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    21 mins
  • Is Do-It-Yourself Investing Enough? The Hidden Value of a Financial Advisor, Ep #253

    Is Do-It-Yourself Investing Enough? The Hidden Value of a Financial Advisor, Ep #253
    Jan 28 2026
    Many people begin their financial lives confidently handling everything on their own. They set up retirement accounts, save diligently, and make decisions that feel reasonable at the time. But as life evolves, that confidence can quietly erode. In this episode, we speak directly to the do-it-yourself investor who has started to wonder whether going it alone still makes sense. We unpack the most common reasons people resist working with an advisor, from concerns about fees and loss of control to confusion about what financial advisors actually do. We also share what typically triggers the shift from DIY to professional help, often a late-night moment of uncertainty sparked by taxes, retirement timing, or growing complexity. This conversation offers a candid look behind the curtain of comprehensive financial planning. It explores what advisory fees really buy, how proactive planning reduces costly mistakes, and why time, interest, and expertise eventually fall out of balance for many successful professionals. The goal is not to push a decision, but to help listeners decide when and if partnering with an advisor could add meaningful value to their financial lives. Outline of This Episode [00:00] Who this episode is for and why DIY investors start asking bigger questions [02:00] Why many people prefer to manage their finances alone [05:00] The common misconceptions about financial advisors and fees [07:00] The questions that prompt people to seek professional advice [12:00] What a financial advisor fee actually pays for [18:00] How complexity, risk, and missed opportunities compound over time Why many investors choose to do it themselves For many people, managing finances alone feels simpler. Setting contributions on autopilot and avoiding difficult decisions can be comforting, especially early on when life and finances are relatively straightforward. Cost concerns also play a major role, as do-it-yourself investors often question whether advisory fees are worth paying. Control is another powerful factor. Turning over financial decisions to someone else can feel uncomfortable, even when things are no longer as simple as they once were. Add in confusion about the financial services industry and fear of being judged for past decisions, and it becomes clear why many people delay seeking help, even when doubts begin to surface. The questions that push people to seek an advisor Most people don't wake up one day and decide to hire a financial advisor without a reason. It usually starts with a specific question they no longer feel confident answering. Am I truly able to retire when I think I can? Am I saving enough for college without sacrificing my own future? Why do my taxes feel higher every year? Other common triggers include managing company stock compensation, holding too much cash without a clear plan, or simply feeling overwhelmed by the growing complexity of life. As careers advance, families grow, and assets accumulate, the margin for error narrows and the cost of mistakes increases. What comprehensive financial planning actually includes A key theme in this episode is that financial planning goes far beyond investment management. Comprehensive planning helps turn vague goals into concrete decisions, supported by realistic projections and scenario analysis. It brings clarity to tax planning throughout the year, not just at filing time, and helps diversify not only investments but tax exposure as well. The hosts also discuss personalized investment strategies, behavioral coaching during market volatility, and identifying opportunities that can be missed without an objective third party. Risk management, from insurance coverage to concentrated stock positions, and estate planning round out the picture, ensuring that plans hold up not just today, but across decades and generations. Deciding if the fee is an investment, not just a cost Ultimately, the decision to work with an advisor is deeply personal. The team emphasizes that it's not about finding the lowest fee, but about understanding the value provided. For many, advisory fees represent an investment in better decisions, reduced risk, and greater confidence over time. As financial lives grow more complex, the question often becomes less about whether someone can manage everything themselves and more about whether they still want to. This episode offers a framework for evaluating that decision thoughtfully, with clarity and intention *********** 📰 See the full show notes here 🌐 Sign up here to receive a detailed pre-retirement checklist to ensure you are positioned to experience your ideal retirement. 🌐Download 5 Questions You Should Ask a Financial Advisor here
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    21 mins