Qs and Stuff

In this Q&A episode of Talking Real Money, host Don McDonald addresses a series of listener questions spanning investing strategies, financial products, and tax planning. He begins by discussing the distinction between passive market exposure and actively tilted portfolios like Paul Merriman’s 10-fund buy-and-hold strategy, explaining that while small-cap and value stocks historically outperform, the complexity and risk make it unsuitable for most investors. He recommends more balanced alternatives like AVGE or DFAW. Don then shares a personal note about narrating the Auschwitz exhibit at the Cincinnati Museum Center, expressing pride in the work. He addresses concerns about Bread Savings Banking, clarifying that withdrawal limits are temporary and that the bank’s FDIC insurance and high yields outweigh the drawbacks of its partner, Comenity. For a retiree seeking tax and Medicare planning help, Don advises hiring a CPA or hourly fee financial planner—especially an enrolled agent—over full-service advisors. He debunks the idea of converting Roth to traditional IRA to reduce FAFSA income, noting the IRS now adjusts for such maneuvers. Finally, he explains how investors can use specific identification of tax lots to sell shares with minimal capital gains, avoiding unnecessary taxes. The episode closes with gratitude, a reminder to subscribe for MP3 downloads, and an invitation to access free, no-pressure advice from Vestry advisors.