Feb 4, 2017|
Automatically Generated Transcript (may not be 100% accurate)
Week's episode of the financial safari has brought to you title filled Capriati and seniors tax. And insurance and bikers PLO. That's totally. Information provided this for it was for purposes only and does not constitute investment tax or legal advice information has been obtained from sources that are deemed to be reliant. What better accuracy and completeness cannot be guaranteed either Peter. Including usage of information discussed always consult with a qualified investment legal or tax professional before taking any action. Incredibly enough one at an eight men see the reason that they retire early is because of work burnout. Don't let that the youth that much more coming up. Hi this is coach Pete and if you've got questions on how to properly structured your assets until retirement income. You're in the right place and welcome to the financial safari. 12%. Of men than they were. Harder because of work burn now. Sold does that mean they're just tired of working what are you hearing. Over the last five closest six years now we've met with all the good 5000 families. Ian the retirement. Planning arena here in Austin well facts we we've done actually over 5000. Retirement income plans including Social Security naturalization light so. I had an opportunity to speak with many men and women many families. Regarding miss in most of our clients range in the 5570. Range. Many of them still working and getting ready to retire earth thinking of retiring. And I would say that this statistic is really quite true one of the biggest issues that we fine. With word burnout you know is there just aren't happy with the job. Their unhappy with their superiors zero unhappy with not so much to work they really enjoyed the work they like going to Wear but there are simply unhappy with what they're doing cash in thanks. Many folks especially men will actually retire. From the air primary career and then go back into the work force and get to have part timer semi part time jobs doing things that they actually like so with that being said. I've counseled folks with respect to this work are now so there's a couple things you can do first of all take smaller and vacations. Take some time spent some time take time off. My brother has a yet theory and I kind of like it. He he works real hard twelve weeks and then takes a week vacation works real hard twelve weeks and he actually looks forward to that week vacation. After two and a half three months of hard work so. I think we need to take a breath and I also think that we need to follow careers or follower has once we hit those sixty's means. We do like the worker. Sometimes we're just not happy whereas. They were important points that are more like take away Phil first of all. The if you had a career that has not been fulfilling for you. Then what is called it Rick tire but especially for baby boomers can now present 182 or third opportunity to do something you really find rewarding about got that wrong. You're absolutely spot on no question about it and many times not just about the money that it's about. Being happy being fulfilled and doing something that you truly enjoy something you have passions substantive brings back your passion. And and in and so so at any rate thinking of retirement. From your full time job if you're suffering this word burnout. Think of what you've always wanted to do and had never done and possibly entertain the thought of pursuing that is a. Career. That gives me a dollar deal fill when you're talking with some more about making that kind of really positive transition on yen to. They retire mode or etc. through career or anyway that's stayed good their financial life sounds like you and your specialist. That senior attacks in insurance advisors. Can't help folks make them transition. You can co over the financial aspects to make that dream come true make it possible for the. Yet he exactly most folks don't realize that they actually can retire financially. So what I normally recommend for folks is number one let's start with the foundation let's start with your Social Security. Not let's take a look at what options what strategies. Can help you get the most out the Social Security. Payments that you have been paying in to let's let's take the most out of your Social Security benefits let's not go into the social security office on prepare. And then had to hazard away so let's look at different options and look at different strategies. Look at what fits you and your family's income needs as the best possible strategy. The second thing that we wanna do is let's take a look at this IRAs for a one k.'s new tour three b.s. Let's talk about. Distributions. How to we reduce taxes on those distributions when should I think there's distributions. When should I proper security. In order to. In order to put together at a retirement income plan that's not only inefficient not only goes to distance. But is also tax favorable tax payroll or not towards the IRS person they. But taxpayer ball towards the client and the damage themselves and to prepare for retirement. That's those forty complex Phil when you're talking about. May be adjusting urine comb because drawn a seven a circle rook or even may be setting up that business that you will always wanted to store yourself. But then when you or draw on Social Security benefit. And maybe then some for a routine comb. Then especially from say what was called retirement account by her 401K or lawyer wade has been rolled over. Then door tax. Implications that really Unita specials to help you well with is that raw right. You truly do end and the reason is it's not just attacks on the distributions. Adventure taking from your higher rates are qualified accounts of when I see qualified accounts folks were talking about any. Account that has not previously been attacked so we're talking about for a one case for a treat each port it to seven satellite. But many times. Many advisors will tell folks to put off taking distributions from these accounts until you absolutely have to pay the taxes now. What we find with some of these IRA accounts especially irate counts was significant values. Is the bar when we put off taking RMDs until let's say we're seven and a half for. Or later in retirement what happens as we close to huge tax problems BR MD is so large that it not only causes us to paying significantly more taxes on our Social Security benefits. But it also may cause us to pay a higher part B premium fuel in it's it it's a shame them many and other advisors aren't CPAs are don't really talk to folks about tax planning that. Really the retirement income plan it's about looking yet. Again maximizing your liquid assets putting together an income plan and minimizing those taxes alone with market volatility. Hopes. Border point out tore loose nor Phil who's just the list of who's just joining us that we are talking with Phil cap real money. And Phil is our local trusted coaxed in the almost two and Arial he and his team of professionals and has seen look at an insurance advisor. Are offering. Advice and sound financial foundations for those making that big transition. By the way infill hole all you mention one thing also Orly were on a belt vacations and that that's a particularly on American disease. Is the American worker is not taking vacations. Even vacation tone that they have calming to resume. Know the area there you're in the greater Austin. You have so many great ways to spend that vacation time don't you. Will you really do you're close to pretty much most vacation destination points from Austin. But more importantly you need to look at quality time with your family. With your wife with your children with your grand children. You need this really is an event the human mind the human body needs this is event. Especially folks after we've been working 404550. Years. So. Don't short change yourself. When it comes to downtime. Yes work hard. Save heart but play hard as well make sure you put quality time in the air for use your spouse your your loved ones. Especially your children and grandchildren. What you'll find this year much more productive at work when you get back after a well needed. Time off so to speak with your family and loved ones one of the things that were offering all of our listening audience is ace the tax special. As you probably know you've been listening to the show for quite some time worry full service accounting firm as well as a retirement income planning end and death investment advisory firm. So for anyone that has the basic tax return you can call our office make an appointment you can command for free consultation you can also come in four and 99 dollar tax special. Now that weren't tax season will do most any return to basic return for an individual. For 99 dollars and misses a return. That is completed by CPA also. One that is certified so we backed up our work. In who were we what we've been told by many folks as we're pleasure to work with. Not only that will get your return done will get it done and expedient lane and out really poor. For a very modest price this is an introductory offer for all of our listeners could need tax help. Feel as though maybe they've been doing their own taxes and would like to. On handed over to a capable licensed tax preparer CPA. Give us a call take advantage of our 99 dollar tax special. The number to call is 808. Point 116368084116. To re sick and folks coming up shortly is your retirement plan would approve. Don't let unexpected cost drain your savings. That and much much more important we return to the financial safari. Phillips recently. I understand that there has been. Big train who's in Washington we all those with president trump kick mall for his presidency. With a number of big statements and actions. Anything to be following through on a lot of those campaign promises. No one the one here on a home do wonder shaping up to be a very business minded presidents say. And on the older here and we or starting to rebel import tariffs. And up perhaps. How are meeting to front the money. For border wall construction. What does all this mean for the future of taxes in the country from your perspective. Well there's this is really gives a lot deeper than than just the border wall run and import tariffs you have to understand folks. We have to take a look at what we're currently dealing last. That is twenty trillion dollars in debt. This that is gonna have to be paid off so when I talked to many of our clients. Well especially when we do consulting work when we set up a retirement plan our last hope very simple question. Do you think taxes are gonna go down in the future. And normally with that question I get quite a few giggles not to mention some cute comments along the way. And then I'll ask do you think they're going to get or stay the same. In India think they're going to go up now inevitably 95 plus percent of the folks tonight interview and asked this question to believe that taxes are going up plain it's simple and her any. And again the common sense approach this as I asked why. And most of them aside we have with Tony trillion dollar debt so with respect to that in all probability taxes are going up so wit. These tax deferred account she can almost be guarantee. That we will see increased taxes. Maybe not so much in this administration but really how many administrations are re going to face over the next 3035 years torn our retirement years. So it's it really important to do tax reduction planning. And make sure that taxes do not train your retirement savings. One of the things that we help folks understand is how to use code 77022. Reboot your IRA. And actually use different insurance products like insurance products to actually pay the taxes on the Ira. And again it's not right for every one book for some folks it is. Also another conversation we'll have. Is judiciously. Converting doing Roth conversions and I'll hear many folks will say enemy well. Gosh. I'm not eligible for a Roth I make too much jump over the limit. Well you may not be eligible Corey Roth contribution. Nobody Roth conversion is totally different than a contribution there are two totally separate events many folks and are not eligible for our Roth contribution can do Roth conversions in fact in 2010. When the government made changes. With these Roth conversions we all now are eligible for Roth conversions so this is another conversation we can have. In order to stop the leaking in this retirement savings account. The other thing that we look at is peace fees and commissions while you working with a broker broker dealer that charge you commissions and fees and some of the vote fees when we run Morningstar reports for for clients on their portfolios. And we try have a conversation about their Karen advisor. Some of these folks don't realize have been some of these fees are one and I have 22 and a half percent higher. Per year and you linked Philip how can people in this fees and commissions that are affecting their pocketbook. Well first of wall sometimes it's really not totally explain nor was explained many many years ago when he seemed to have. Andy seemed to it's one of those it's one of those foggy memory moments a mistake but that but thank be known only actually take a look at fees and I'll talk with Clijsters nothing wrong with paying a fee for service. Especially if you're working with a licensed fiduciary. So wouldn't fees are part of it but but she don't need to pay. Commissioned you don't need to pay prone and load back can load or very large commissions so. What we like to do with clients who come into the office is the first thing we like to do is really give their portfolio of blood test schools say. Well we wanna see how much risk is in it we wanna take a look at what type that fees have been bobbled it and their front end fees bank guarantees. Because understand. Let's assume week you're paying 2% a year in fees. Over a ten year period folks you've just paid 20% in peace Walsh. Over twenty year period is 40% and really over the course of your lifetime and thanks 3035 years. It can be as high as 6070%. In annual peace through the course of your retirement timeline so again stop the leakage. Let's take a look at what the fees are in your Karen can also us look at market volatility. And then again there's another thing that we really need to look at and that's inflation. You would be shocked Randall. We have folks command. And they'll put together retirement plan and you'll say a little of the safer in it for instance well I need 60000 a year for income or I mean 80000 or hundred you pick the number everyone's different everyone's retirement income needs are different and that they won't count for inflation. So. When they put their retirement plan together. They're looking at say 60000 a year will linking and we have to factor in inflation in that because five years from now it might take 65000. Votes 60000 it does today. Tim what about periods of low inflation that's still going to be a factor over the long Karl. Well we like to take an average and we like to take a conservative average we don't wanna overestimate inflation but then again we do not wanna underestimated. Or not in power are not average it at all. You know what we've noticed is in Indian inflation that the consumer paying some wanna say they consumer returning to the taxpayer consumer the want it goes to the grocery stores and actually buys their food but pays for their electric I'm not talking about subsidized through tax recipients for sale. We even though we may see well there was 1% inflation. But when you go into the food store credit and you purchase your your your day answering your milk or herb butter and and things that you eat your consumer staples we find it no wasn't really 1%. It was really more like 22 and a half 3% when you pay your electric bill when you look at your overall inflation hell yeah care inflation and health care. It normally averages somewhere between two and 3% but the point is. When you put together a comprehensive retirement income plan we must look at inflation because this is also. Elite enemies waterproofing. That's an on eye opener of Phil will win sleep historic inflation. Low was. Those figures are based on indexes that may not match up with real. Cost living expenses like you mentioned Woolfolk especially. In ripped harmless in my gut their raw. Absolutely and then when you start to weigh in health care costs and we really start to take an average of true inflation. The consumers taxpayers pay for. We're looking at a two to 3% inflation factor and that's really averaged over one I like to do what's called a twenty year running average so we want to we don't wanna take a look at. The inflation for one particular year let's take a look at the inflation over the last twenty years the last thirty years. And projected forward into the next twenty years the next thirty years. Which is what we need to plan war. Once we move into the retirement red zone. For those of you who are listening today and may and we may have touched on some points that seemed to be appropriate for you were here today. Pity a sore spot. Come into our office call handy I will push it with you and put together a retirement income plan. Then not only takes a look at your Karen investments that fees and commissions. Also risk tolerances. Bitter and as plans but will take a look at inflation will take a look at health care will take a look at taxes and will incorporate. That. Into a stated the our retirement income plan. That actually will clog up the the holes and that retirement income dikes or to speak will also take a look at your Social Security. When you put a retirement income plan. Together. It should be done professionally and it should be done with someone who's experienced in these areas again. We have put together more than 4000 close to 5000 retirement income plan for folks in the Austin area over the last six years. Let us help UN that were quite experienced quite knowledgeable and we take. This business very seriously. The name is Phil cup brought you his team is seeing trucks and ensure its advisors they serve our listeners exclusively. In the Austin and you're up. And you heard that correctly they or just a phone call away. And you can set up a no cost no obligation initial consultation. And that number is 800. Eight point 11636. This is risk free it is guaranteed. And Phil and his team already to talk about your questions and your needs. Gotta make the call that's 800. Eight bought 11636. Gets the ball rolling. And we go rolling in to an inner emotion here Phil -- we've got an awful lot to talk about. We certainly do and when we return we're gonna talk about building your financial house we wanna make sure that your foundation in the financial house is firm insecure. You're not gonna wanna miss this folks so we'll be right back here on the financial safari. It's gone improved financial definition. The rule of 100. As a way to determine when how much risk you should help in your portfolio. Subtract your age from 100. For example a seven year old would get a result on thirty. And that's leave maximum amount of risk that that person should help get their portfolio. Using pool of 100 to make sure fuel. Not overexposed to risk as you approach what color what. It. Phil before last break you mention. Building financial house with my situation I am living on a house that it is. Oh wonderful example of seventy's architecture and I don't say that facetiously. Workman crafts people to only that it's got awfully good bones. But we do need to see Workman and crafts people up occasionally because no matter how great a foundation of a house. Which is a central they're always something to take a look at what is the roof. And gutters exterior were paid. Always something seems to be going on that needs our country and how does that fit into the financial picture won't win your. Trying to establish a foundation and then named as a sometime toward building a house with forget that that's gonna need. Maintenance as we go along give a got the right ideal. You certainly do and as far as the maintenance is concerned. When we look at the foundation okay we're gonna talk about foundation and maintenance folks. Only look at the foundation you really wanna take Social Security. As the foundation for 99.9. Percent of as we've all paid into it Social Security. For decades. Our employers are paid and then matched the so security. For decades. This is an annuity that we learn so we really need to get the foundation right Social Security is it. Really when you think about it of course that makes a much what you just said Social Security. Is and I know woody sometimes weaker our new what he's being discussed as may be you know it's debatable whether you could have an Andrew would you earn our producer annuities at annuity. But you mentioned also security which basically is for everyone. It is under new woody raw. He had absolutely is it's a commercial when nudity it's a government in new Indian it's actually 40% cheaper than any other newly you can find out there on a market. Also we've been paying into this annuity for the last 234. Or five decades when I council folks we talked about it they're like well you know my brother looks how many go collect that 62 well you know my sister launches of financial advisor. She's negotiated as soon as possible to go on broke the well from the funny thing is when we actually sit down and analyze all of the different combinations. Seattle in different strategies that are available. Many of these advisors are called the brother in law sister and loss syndrome football he really unfortunately they're really not giving expert advice what they're doing is they're giving commentary and they're giving opinion. Without actually packing it up with facts as an accountant I like the backed things up with facts and whatever else do we actually listen to war in laws that's what I'd like to know you know what's funny I guess I should mention this but you know we all have bad brother in law I have a brother in law. Who also. Swears that have filed for Social Security 62 and two is the best thing. Here's one at a disadvantage is folks just as we can get it off the beaten path here for many of you highway churn or she must understand and eventually especially with married couples one spouse is going to pass away we know what to be a fact. Many times one bounce passes away before the second spouse this is what you can take to the bank when that first bounce passes away the second spouse is going to be left with a survivor benefit. Mean fewer at the high wage earner and you collect. At 62 or 63 in your collecting 75% of your Social Security benefit or 80% you'd take that actuarial reduction. You were leaving your spouse would be significantly reduce Social Security benefit upon your demise. Chris remember the way it works this is one of the tidbits of information one of the facts you're going to receive when you come in for counseling here. When you lose a spouse he loses Social Security check to larger checked stays the smaller one goes. Yes if you filed early. And settled for an actuarial reduction settled for 75 cents on the dollar eighty cents and a dollar your spouse is going to get seventy by sensory eighty cents in the dollar. This is where we have to build that firm foundation we really have to take a look at it. And we have to make sure I understand that your Social Security it's mailbox money folks it's save money. This is a government anew and you've been paying into it for decades. Don't wasted opportunity and with these new laws. Once you make an election strategy you're pretty much stuck where you are and so what I talked folks go in prepare to go in armed with knowledge I want you to beat as knowledgeable. Or more knowledgeable than any individual you speak to active social security department I want you to be firm on your strategy. Understand why he. And understand where and understand how to implement it. Wolf will put him brag on your tour list or for just a moment that is one reason that you share the good news. Net Social Security mechanization workshops in places like theatre park George down in Rem realm rug you still doing that out. We still do it we do we didn't do a Social Security workshops and again we don't sell any products it's strictly away giving back to the community it strictly. Educational. Too workshops every month twelve months a year we've been doing it for over five years and we're going to continue to do it through 2017. And only the good lord knows how long been with the response that we yet. Through our local libraries with the response that we get from the from the community and the residents they absolutely love it and remember when you come to one horses security workshops. You get a complimentary consultation will actually help counsel you. And actually we have a Social Security mess is a shall report we do for couples for individuals for windows. For anyone that qualifies for Social Security. To help them understand what's the best strategy what's the best age. How to I want to structure my Social Security with the rest of my retirement income and handle wanna put that foundation into my retirement income how so to speak. That's very exciting fill in Libya make sure that the list or has the number to find out a ball the next session. For Social Security my optimization that you and your team more offering that number is 808. Point 11636. That's 80851. 1636. And Phil again a likened brag on you for our Lister. You really are all ball spreading to good ward and you mentioned something that is really key and that is Hume how orient yourself as a consumer. Especially. But not limited to the time that you're in that red zone approaching retirement. Really important to be well educated and I come from a family of teachers and educators and one of the things I learned many many years ago is really. When you go into any project whatever it is whether you're in school and you're going into an example with the go to work and you're going encrypt. Make sure that you are knowledgeable make sure that you are prepared to make sure that you are organized and make sure you have any plan. And a plan that holds water without the leaks so to speak. Make sure that you when it comes to retirement make sure that you have a retirement income plan that's well structured. That means everything Social Security IRA's and pensions taxes inflation. Everything needs to be incorporated and that plan and we need to. Be able to allot funds to. Look at every possible leak. What about health care what about long term care what about assisted living care nursing care all of this should be incorporated in year plan this is exactly what folks can expect when they come into senior tax and insurance advisors. And allow last helped them put together their retirement income plan. Phyllis a long road moving port is like trying to paint the walls are her house walls they've walls keep shifting and moving around on you with a lot to keep track gulf. Well not only that but it has to be adjusted and updated annually so for most of our clients. The larger percentage of our clients. We do an annual review so why we don't just put together a plan once we put together planet then we take a look at the yearly because things change. Situations change children are war folks pass away we have inheritance is we have all types of situation we need we need wills updated. We need tax that tax codes change. Tax laws changed so. Your retirement income plan not only has to be structured professionally folks but it has to be updated. At least on the yearly basis you know since we started doing this radio show a little over a year ago I didn't know how effective who would be. But what we've noticed we've had so much positive feedback from our listening audience every single week we giveaway. We offer three complimentary consultations. Arcane to the marine gone so far this this this week. Feel free to call candy our office manager at our office here. Will put you win foray complimentary consultation we can talk about retirement income planning and tax planning Social Security RMD distributions we can talk about tax free conversions. Would ever is you're in need we're here to help you understand it take advantage of our expertise. Take advantage of our knowledge take advantage of the technology and services that we use. We're here to help and we're happy to help don't miss this fantastic opportunity it's a phone call away. 808. Point 11636. And you've just toured Phil mention it specifically. Paid no cost initial consultation. Waiting just wore you book you've got a call to access it. The number is 808511. 636. Coming up we're gonna talk about not becoming an Orton. Will lower really referring to is an elder or them. So we have tips. To help you take here in the future today put a plan together so stay tuned we'll be back with more. Financial safari. We are social themes and that's important to surround ourselves with friends. With Stanley. With people that allow us to be social. I always talk to clients and especially for folks who may not have a spouse or they may not have children that live close or. They may feel isolated or cut or are we gonna talk about cultivating. You know local networks of friends. Join the senior senator join the club join the join the health club and do something to put yourself out. As my mom used to say don't be a couch potato give up off an account to get out to a little walk he's amazing. And it's amazing how many neighbors Giambi just down on casual walk or. It's so it's important really to surround yourself with the social or local network of friends of fill your family going that's what I hear. I certainly am a father of five absolutely love my children I have that three grandchildren. I'm a firm believer in family I'm a firm believer in hard work come a firm believer in the good lord above and I'm firm believer in treating people the way I wanna be treated just about every single one of our clients refers to us as their extended family and bleached we treat every one of our clients when we take on a client. And they become our gambling. We're in constant touch with them. Either with our weekly newsletter we send out a couple newsletters REIT we send out a newsletter on Tuesday we send out one on Thursday and then we're constantly calling people and contacting. One of the complements that we have gotten from most of our clients we do lane annual client appreciation dinner. It's really a big party for our clients and it's really just our way of thanking clients from BM our clients. And at thanking them for giving us the opportunity to work with them. And it's not designed to some marketing technique and a marketing tool which just again that it's part of that treating folks the way you want to be treated so. I love have a niece parties and and then one of the other things that we do is we do annual. Reviews we do at least one annual review most of our clients will do a quarterly or semiannual ordered review. Now that doesn't mean always coming into the office in May mean a phone call in Mamie in a phone call on an email but I like to see night clients at least once a year physically in the office I want them coming in. I want to share with them what's going on with I wanna know what's going on in their lives with their families what changes. And then also update that retirement income plans so when we take on a client there much more than a client they are truly an extended family member. That is so crucial and that's a differentiator. Rights era because you're looking at the whole person. In when you're talking motto for Fuller you're actually seeing the family that is affected by that portfolio argue. We certainly are and not only that we're we actually worked with multi generations so dear or clients. That we have now where I work with their parents years and many many years ago I met them through their parents and and as their parents that passed away. We will now work with their children and my children working with their grandkids so long we take a look at it. Our practices and family practice we also take a look at folks that we work with again we work with not only the individual but we like to work with the entire family. So Philip you wanna know everyone's story because actually. Many times you're a part of that story I would say three out of ten of our new clients conferees barrels of the existing clients and we track this we've been tracking it for years. In other words this is saying that our existing clients are so happy with our services. When our attention to DT you know within our knowledge. And really with multi facet ness of the way our practices set up where we help them with that. Setting up shrouds sent it to necessary wills. On taxes accounting. Retirement income planning insurance planning cell because we are a full service. Practice. Many of the folks that we work with like it and now I've been we've been called you know the one stop shop we come and a senior tax and insurance advisors and we we get council on just about anything so. When we look at it and you end and again what's most important. Is working with a team of professionals that number one treat you like family. But also treats you like a true. Fiduciary. A Luis people always stapled to the client and always faithful to the family. And that's really our model and it's one of our many Matos and now we look forward to again building. Our family. We've been building our family through this radio show and understand folks. If you need counseling and you were part of our radio listening audience please feel free. To call candy set up a complimentary consultation. We'll be happy to counsel you will be happy to invite issue will be happy to work. With you what a great way to join the conversation you heard Phil called candy that's 808511636. 808. Point 11636. It had Phil it's been great. The import of your radio family today Randall it's always a pleasure and we look forward to talking with you next week god bless and have a wonderful week. And the real store commercial deal Lister. We look forward to having you join us again why you're on the financial self Horry. Currency RA. Information on its way to the strip. Purposes only and does not constitute investment tax advice information has been paying close. Sources that are deemed to be reliable when it. Receiving complete this cannot be guaranteed their Peter Jay root for his gas line for the usage of information discussed most excellent qualified investment. We guarantees copies only a financial strength and claims paying ability patient company. Individuals should thoroughly review the contract specific details of cost income payments of withdrawals from deferred annuities are generally taxable ordinary income in the near near thing.