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Retirement comes with some double-edged swords – things that are both negative and positive. We’ll explain what they are and how to approach them.

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Show Notes

On today’s episode, we’re talking about things that are a double-edged sword when it comes to your retirement, with both positive and negative consequences.

Stocks and investing

You want to sell some stocks and capitalize on your growth, but if you do, you have a tax burden waiting on the other side.

You want to buy low and sell high, but when you sell that could trigger capital gains tax. Depending on how you do it, you could have short-term capital gains. If you sell after a year or longer, you’ll get a more favorable capital gains rate. It all depends on your income bracket.

Ask yourself: Do I need to sell the stock? If you want to capture those gains, you need to find the correct balance over time.

Sudden wealth

If you suddenly come into wealth, through an inheritance for example, that changes your financial picture. The downside is the loss of a person close to you. Now you have an emotional attachment to the money.

The best thing to do is hit pause and take the time you need. Sometimes it’s a few days, a few months or more. You can make your advisor aware of the money so they can help you with tax advice.

Listen to the full podcast or use the timestamps below to jump to a specific section.

[1:25] – Who taught Scott the most

[6:01] – Stocks and investing

[11:29] – Sudden wealth

[14:15] – Roth IRA vs. traditional IRA

[18:30] – Paying off your house

[20:23] – Risk in your portfolio

[24:10] – Question: Flipping houses as investment

Thanks for checking out this episode. We’ll talk to you again soon.

“I find that a lot of people can get overly conservative as they go into retirement.”

-Scott Sierens