Ready to Retire? Assessing Your Retirement Readiness

Episode Transcript

(00:00):
And our phone lines are open foryou right now at six oh eight three
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(00:23):
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(00:44):
of years ago, sign up forthe weekly Market Pulse newsletter. It's a
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Telephone number six eight four four twofive six three seven. Don't forget
no charge for that initial gets toknow you appointment at Class Financial. It

(01:06):
will be complimentary to you again theirnumber six oh eight four four two five
six three seven, and of courseto get on the air six oh eight
three two one thirteen ten. That'ssix oh eight three two one thirteen ten
and joining us this morning from ClassFinancial, our retirement planning professional CJ Closs
and Malia Quavis. CJ, howyou doing this morning? I'm doing great,

(01:26):
Reach, I'm doing really well.Malia, how are you this morning?
Excellent? It was fantastic getting tosee both of you yesterday outside of
the radio station at a chance toget together just talk about some things.
And we've got speaking of talking aboutthings, we've got a fun and exciting
program today talking about retirement readiness,which I don't want to make promises,

(01:48):
but I will say this. Thisis probably one of those shows that no
matter who you are, I promiseyou you are going to take some great
information away from the program. AndI could almost say that, actually should
say almost I could that every week. I can give that guarantee. But
it's in a fantastic show. Iwas going over the notes. It should
be a really really informative this morning. Don't forget as we talk with Cjen

(02:08):
Malay, the phone lines they areopen six oh eight three two one thirteen
ten, the website It's always therefor you, Class Financial dot Com and
their telephone number six oh eight fourfour two five six three seven. Before
we get rolling on this week's conversationabout retirement writing this One of the other
cool features of the show is theCloss Quiz. Question the week your chance
to win a fantastic prize this week, no exception, a chance for you

(02:30):
to win a twenty five dollars giftcard to Texas Roadhouse. Little tip listen
closer to the show. Oftentimes boththe question and answer come up during the
program and before we get rolling onthe conversation this week, let's actually take
a look back at last week's program. Get the question and the answer there
as well. Yeah, so lastweek we had a great conversation about those

(02:51):
listeners who actually have the opportunity toperhaps have a pension for themselves in retirement.
And just a shout out to oneof our listeners who actually called in
last week who corrected us me exactly. They corrected a mistake I said,
which was that the state of Wisconsin. When we looked at the pensions for

(03:12):
state of Wisconsin, including the pensionsfrom the Wisconsin Retirement System, I would
like to formally correct myself. Isaid it was not taxable. That is
incorrect. It is taxable. Soall you excited people that heard me say
it wrong, I said it wrong. So I apologize, but thank you
for listening so carefully. This informationis really important and it does impact your

(03:34):
future, so we appreciate you callingin for that clarification. So when we
talked about pension options last week,the question actually was which pension option usually
provides the highest monthly payout? Isit a single life or is it a
fifty percent joint and survivor option.So Lauren of some Prairie congratulations to her.

(03:55):
She correctly answered single life usually hasthe highest. So listen carefully to
today's show, and of course you'relistening part of last week's program or any
of the shows, don't forget youcan listen to the podcast subscribe as well
at Cossfinancial dot com. That's Clossk l aa S Financial dot com.
Phone lines are open here at stationto get you right on the air with
CJ and Malia ah yet to dois give us call six oh eight three

(04:17):
two one thirteen ten. That's sixoh eight three two one thirteen ten will
get you on the air with CJcost and only equibus our retirement planning professionals
from Class Financial their office telephon numbersix soh eight four four two five six
three seven no charge for the innacialgets to know your appointment at Class Financial
again the number six oh eight fourfour two five six three seven. So
as mentioned this week, we'll betalking about retirement readiness and maybe we're thinking

(04:40):
that you know, mentally or physicallyit's time to retire, but what about
suggestions for folks who really want tomake sure everything is in place before they
make that decision. I'm assuming that'sthat's pretty important, isn't it? It
is? Yeah, there's there's alot of talk about this subject, particularly
this year. Twenty twenty four willbe a record year for retirement in the
US, with an average of eleventhousand Americans a day expected to celebrate their

(05:05):
sixty fifth birthday this year, Soapproximately four point one million Americans will turn
sixty five this year, in theyear twenty twenty four, and every year
through twenty twenty seven moving forward,and this is according to a report from
the Alliance for Lifetime Income. Thefigure represents the largest surge of retirement age

(05:27):
Americans in history. So, obviously, for retirement planning firms like us,
it means we have a large poolof people that we can serve. But
for those individuals who are being served, they have to kind of understand am
I ready for retirement and what arethe considerations of retirement? So many of
the people we speak with have beenthinking about retirement for a while, but

(05:50):
the question comes up, how doyou know? What is that checklist?
What's the specific age, what arethe possibilities, so on and so forth.
That's what we're going to go throughis a checklist of your retirement readiness.
So the first consideration is choosing yourretirement date. Obviously, the longer

(06:11):
you work, you are likely tobe financially better off as you can delay
portfolio withdrawals. You can add additionalfunding into your retirement plans that offer continued
tax deferral or tax compounding, whichalso translates into a larger Social Security benefit
in the future. Well, it'sworthwhile to consider your expected retirement date from
several additional angles, not just thefinancial dimension. You also want to consider

(06:34):
your quality of life issues and yourhealth and whether you can continue to do
your job later in life. We'vetalked about this on previous shows, but
there's actually a disconnect between when Americansthink they will retire and when they actually
do. And actually, when youdig into that, the reason for why
there's that disconnect, it is oftenan earlier than expected layoff, or a

(06:59):
health shoe that pops up, ora health issue of a loved one.
So that disconnect between when you thinkyou're going to retire with that age and
when you actually do is you canimagine that could be many years of income,
many years of benefits that suddenly poofgoes away, and the question is
are you ready for that? Soresearch suggests that people often do a poor
job of estimating when they expect toretire. As it turns out, people

(07:24):
who thought they would retire on theearlier side often end up working longer,
and then people who thought they weregoing to retire later end up retiring earlier.
So unfortunately, there's a pretty bigdisconnector that we see between expectations and
reality. Talking this morning with ourretirement planning professionals CEJ Closs, Emilia Quavis.
Of course they come to us fromClass Financial. You can learn more

(07:46):
online thewebsite class financial dot com.That's Klaasfinancial dot com. Great website to
learn more about Class Financial. There'sseparate divisions. Also chance to sign up
for the weekly Market Pulse newsletter aswell as listen back to this in previous
shows podcast. Again that available toyou at classfinancial dot com. Speaking of
things available to you, the telephonenumber for Coss Financial six oh eight four
four two five six three seven.No charge for that initial get to know

(08:09):
you appoyment dec Class Financial. Itwill be complimentary to you again their number
six oh eight four four two fivesix three seven and the full nine six
oh eight three two one thirteen ten. That's six soh eight three two one
thirteen ten. Talking about retirement readinessthis week in Malia, how important is
it to consider how much income you'llbe needing in retirement. It's kind of

(08:31):
important, you know, we needthe income to live our lives. So
number two on our retirement readiness checklistis to take a close look at how
much you currently spend on a yearlybasis versus how much you think you will
spend in retirement, so those numbersreally can look quite different. So we
would have you sit down for cashyour anticipated income needs, hopefully with your

(08:56):
your financial planner, to make surethat your craft out the retirement plan that
makes sense for you, and youreally do want to right size your income
needs by looking at line by lineitems in your budget. I know people
don't always like that word budget,but budget really is about how much do

(09:16):
you spend on a monthly basis,So you want to make sure that what
you're spending now kind of aligns towhat you're planning on spending and retirement and
what's going to need to be adjusted. So one common rule of thumb,
we don't like common rules of thumb, but everybody still asks us what are
they is maybe the eighty percent rule. So what that means is in retirement,

(09:39):
you'll need to replace about eighty percentof your working income, so your
income tax rate may go down andyou won't be adding to retirement accounts as
you did when you were working,and that represents the bulk of that twenty
percent reduction. So that's where theeighty percent idea comes out. But then
there's other people will say you know, I wreck commend you plan to replace

(10:01):
one hundred percent of your income becauseyou are planning on doing maybe extensive travel,
or you're going to be in pickleballtournaments across the United States. Who
knows what that might look like,but understanding what kind of income you're actually
going to need is really really important, So so you know. Another item
to consider is, although you mayno longer be paying payroll taxes towards Social

(10:24):
Security, you'll need to consider thecost for Medicare. So just a reminder.
In twenty twenty four, the standardmonthly premium for Medicare Part B and
that's the part that covers most ofyour doctor services, is one hundred and
seventy four dollars and seventy cents orhigher depending on your income. And then

(10:45):
you'll also have to pay twenty percentof Medicare proved amounts for most medical services,
as well as an annual deductible oftwo hundred and forty dollars. These
are surprises to people as they enterretirement post age sixty five, and they're
like, I just thought Medicare wasgoing to cover everything and I don't have
to pay anything. And so that'swhere we start saying, well, you

(11:05):
want your income to be generated tocover all the great things you want to
do and all the things that youhave to do, which obviously includes your
health insurance coverages. So the otheritem to be really clear on is that
you're spending is not going to bestatic year to year. So generally earlier
in retirement, we see people spendinga little bit more than they might ten

(11:28):
years from now, and you knowthat's to be expected. Their health is
good and they want to get outthere and visit grandchildren and travel the world,
so those years might be more expensivethan what you're forecasting ten years from
now or later. And finally,again, new retirees may not necessarily find
themselves living une less. So whatthat really means is that, you know,

(11:54):
I think I'm not going to needto buy clothes to go to work,
I'm not going to be driving thecar as much, et cetera,
et cetera. But what we foundthrough a research survey done by the Employee
Benefit Group, they found that someretirees reported their spending as much higher than
they thought, or a little higherthan what they could actually afford. So

(12:16):
in twenty twenty two to twenty sevenpercent of retirees report spending more than they
had originally expected. So we wouldsay plan to spend that you're going to
spend more, quite honestly, andif you have to ratchet it back because
you're not spending it, that's evenbetter. And I know one of the
things that we've talked about it onprevious shows that you've mentioned is oftentimes people
think we may change our spending habitsand retirement. Now, oh yeah,

(12:39):
there is. It doesn't always workout that way. We are who we
are and we've got to work withit. Really really great advice this morning
from CJ Class and Malia Quaves.Fantastic program. Don't forget if you've got
a question, love to have youjoin us six h eight three two one
thirteen ten. That's six h eightthree two one thirteen ten, gets you
right on the air with Malia andCJ. Of course, they come to
us from claw Financial their website cossfinancial dot com. That's Klaasfinancial dot com.

(13:03):
The telephon number six O eight fourfour two five six three seven no
charge for the initial gets to knowyou appointment at costs financial. It will
be complementary to you. Again thatnumber six oh eight four four two five,
six three seven. What about incomesources and retirement. We'll get the
details on that. We'll also takeyour call next as Money in Motion with
Cost Financial continues here on thirteen tenWIBA and our phone lines are open for

(13:28):
you right now. We'll love tohave you join us. Six oh eight
three two one thirteen ten. That'ssix oh eight three two one thirteen ten.
You're probably this morning if you areon the Beltline going westbound. We're
gonna get an update here coming upin about seven minutes. You're probably sitting
in traffic right now at an accidentat Seminal Highway, which basically has the
westbound belt Line closed from Stone Roadall the way up through Seminal Highway.

(13:48):
Again, we'll get you an updateon that. It's a great show also
to be listening to. If youare new to the program, maybe you're
running a little later than normal,Welcome to the show. I mentioned the
website coss financial dot com and whata great resource it is for you not
even learn more about COSS Financial,learn about their separate divisions. Also,
what great place is to sign upfor that weekly Market Pulse newsletter. It's
a cool little informative weekly email.It'll snapshot of what's been going on in

(14:11):
the Market's also linked to the mostrecent podcast that available to you at cossfinancial
dot com. That's COSS k la A S Financial dot com and their
telephone number six oh eight four fourtwo five six three seven. No charge
for the initial get to know yourappointment at COSS Financial. It will be
complimentary to you again their number sixoh eight four four two five six three
seven. Talking this week about thesteps and some important points when it comes

(14:35):
to retirement readiness and we think aboutpotential sources of income, where's the money
going to come from when we're inretirement. Also, I know one of
the things that folks fear, andwho can blame them is that question about
what if I run out of money? And how what do we need to
know? There? And CJ andwe're looking at this stuff. These are
these are the type of things wethink about, things that keep folks up
at night. These are those typeof questions, aren't they? They sure

(14:58):
are? Yeah. So, asjust said, we're going through our retirement
readiness checklist. We've gone through numberone, which was choosing your retirement date.
And there's a lot of things thatcan impact when you retire, at
what age, what's going on aroundyou. Malia then just went through taking
a look at how much you earnnow and how much income comes in versus

(15:18):
how much you will need in retirementto kind of replace that standard of living,
and then yes, now we're goingto be looking at where are you
going to derive that income from tomeet those needs? So how much of
your income needs will be supplied fromother sources than your portfolio? This is
critical. So listen to anybody who'slistened to like ads or shows. They'll

(15:41):
be like, what's your retirement number? I think there was a company that
did a number, and there waslike a little squirrel that would walk around
with the number that you needed,and people were walking around their numbers everywhere.
But the idea being is that reallythe way it works? That they're
just there's some number that I needto get to, and then once I
get to that number, I'm fine, and I can compare my number against

(16:02):
other people's numbers, And the answeris no, not really, not really,
that's not really the way it works. Because an example of this would
be within the number that I mightneed, whatever that number is it's not
going to show how much I havein pensions or Social Security or other outside
sources, because those outside sources whenmy spouse and I die generally have no

(16:22):
value to the estate. That's notalways true, but generally true. And
so therefore, you could have aState of Wisconsin employee, as an example,
who has an ETF pension that generateseighty thousand a year in income in
retirement that they might need very littleto nothing in their portfolio to retire comfortably.

(16:44):
Let that sink in. And bythe way, in the state of
Wisconsin, you state employees both payinto the ETF pension or the WORS pension,
and you also pay into Social Security. So unlike other states where you
opt out of one or the other, you pay into both. Now I
know for for the State of Wisconsinemployees, they're going, yeah, but
that means my take home pay isway lower. That's true. That's true.

(17:04):
You do get hit on the frontend, but on the back end
you have a much better retirement benefitthan a lot of your private employee counterparts.
And so long story short here islike understanding where your income is going
to come from is key. Sothe first question is how much do I
need. That's what Malia just wentover. The second question is where will

(17:26):
that income come from? And oftenwe come to find out that Social Security
could be supplying I don't know halfof that, and if you're a State
of Wisconsin employee, maybe you've gota pension that covers the other half.
Now, in many circumstances, whatI just described is not true where you
go, Yeah, I'm not aState of Wisconsin employee. I've got my

(17:47):
Social Security, but we need maybedouble that to live comfortably. Which then
this is where your private four toone K plan and private investments and savings
and other resources like that come into play. So long story short here
is just be aware of not onlywhat you need, but then where that

(18:07):
income will come from, and justmake sure that where it's going to come
from is a source that can last. Talking this morning with CJ. Coss
and Maleia Quavis, our retirement planningprofessionals from Class Financial working through this retirement
Ready checklist. Of course, missany part of the program, you can
always listen back at classfinancial dot com. That's k l Aasfinancial dot com.
It is the website for Class Financial. Their telephone number six soh eight four

(18:30):
four two five six three seven.No charge for that initial gets to know
you appointment at COLSS Financially eight willbe complementary to you again their number six
oh eight four four two five sixthree seven. Enjoin us on air if
you've got a question six soh eightthree two one thirteen ten. That's three
two one thirteen ten. And whenwe start talking social security your pension,
CJ. I know we've talked indepth on both those quite a bit in

(18:52):
the past. These are important decisionsand you really don't want to just kind
of take them lightheartedly, do you. You don't to know, so there's
a lot of decisions you have tomake, be as it relates to claiming
a pension especially and then also whenyou draw your social security. So we've
dedicated entire shows to this topic.If you're ever interested, you can go
to our podcast or our website andjust do a search for the topic of

(19:15):
social security or the topic of pensionand you'll find probably dozens of shows on
the topic that we just dug inon that alone. But yes, you
want to be aware of again howmuch income do I need? And then
and then where will that income comefrom? Which then naturally leads into our
fourth retirement readiness checklist item, whichis is it going to last throughout your

(19:40):
retirement? So where is this incomecoming from? And is it sustainable?
So once once you've determined your inretirement income needs and how much of them
will be covered by Social Security andpensions, then your portfolio is going to
have to supply the leftover. Andwhen we say portfolio, people get co
used by this. Portfolio is anyany money you have set aside that is

(20:06):
not your emergency reserve at the bank. Let me repeat that, quote unquote
portfolio is any money you've set asidethat is not your emergency reserve or I'll
say like your general checking account atthe bank. So that portfolio could be
money in a money market account.That could be money in a stock that
could be money in a mutual fund. It could be money in a four
oh one gay and irate, ataxable account. It doesn't really matter.

(20:27):
We just use the term portfolio toencompass all that stuff. Now, what's
key about this is all that stuffhas to cover that difference. So I'm
going to do some math for youall here. If I have one hundred
thousand dollars income, need. We'llcall it a post tax income need in
retirement, and between my spouse andI, our social securities cover fifty percent

(20:52):
of that. So that's fifty thousanddollars a year of post tax post Medicare
income. By the way, ifyou're tracking with me, that probably means
my way might have spouse and Iwould have sixty thousand of gross social security
income, we might net fifty.So we have to what we have fifty
thousand dollars of an unmet need?Where does that come from our quote unquote

(21:15):
portfolio? So what if our portfoliois I'm just going to grab a number
out of the air, five hundredthousand dollars, Well, that would mean
that we would need to generate fiftythousand dollars a year, which is our
gap, right, fifty thousand dollarsa year of net income out of our
portfolio. Anybody who's listened to ourshow right now, their alarm bells should

(21:36):
be going off, which is uh, that's probably not sustainable, which is
correct because what you want to dois you want to look and say,
whatever that gap is that I needto cover, I need to divide that
gap into the amount of money thatI have set aside in my portfolio to
find what is called a distribution rateor a withdrawal rate. And depending upon

(21:56):
how old I am and my healthand how long I have retirement, typically
a ten percent withdrawal rate from aretirement portfolio, especially if I'm a healthy
sixty five year old, is nota sustainable distribution rate. It's too high.
Therefore, you would need to reallysit down with an advisor or yourself

(22:18):
to figure out do I need towork longer? Do I need to save
more? Do I need to adjustdown my spending? Do we need to
move How can we make this mathwork? Because what you don't want to
do is enter retirement just saying we'regood. You know, I've got half
a million dollars and I've got fiftythousand a year coming in from Social Security.
We'll just we'll kind of figure itout. And by the time you
do figure it out, it's toolate, because the way it happens is

(22:40):
you come rushing into our office orsomebody else's going we thought we were good,
but we've got one hundred grand leftand we're seventy five years old,
and like, how do we makethis work? Unfortunately, when that happens.
Your options are really limited, soI cannot encourage you all enough prior
to just kind of like pulling theplug and walking away from from work,
sit down with a retirement planning expert, just to make sure you've dotted all

(23:03):
your eyes, crossed all your t's, and that you're confident you can,
you know, live live throughout along retirement with your portfolio. Talking this
morning with CJ. Closs and MaliaEquavis, our retirement planning professionals from Class
Financial. The website colss Financial dotcom. That's COSS k l a a
s Financial dot Com. They're telephonnumber six so eight four four two five
six three seven. No charge forthe financial get to know you appointment at

(23:26):
COSS Financially. It will be complementaryto you again their number six oh eight
four four two five six three seven. And the website COSS Financial dot com
that's k l a a s Financialdot Com. We'll talk about taxes,
we'll get to the Money in MotionListener question corner. We'll also do the
COSS Quiz Question League. We willdo all of that next as Money in
Motion with COSS Financial continues right hereon thirteen ten. WI b A.

(23:51):
Talking with our retirement planning professionals C. J. Closs and Malia Quavis.
Of course they come to us fromCOSS Financial, the website coss financial dot
com. That's k L a AS Financial dot com there telephone number six
So eight four four two five sixthree seven, talking this week about a
retirement readiness checklist, getting some great, great information and kind of walking through

(24:11):
the process checking off each of thosepoints. And something we haven't talked about
it is vital is understanding tax managementwhen it comes to retirement income, isn't
it, Malaia, Yeah, itwould just be fun to just talk about
the income side of things. Unfortunatelythere's the other side, and so this
is super important that you understand thetaxation of what your retirement income is going

(24:32):
to look like. So this wouldbe number five on our checklist. Again,
it'd be simple if we could justbring a single portfolio into retirement,
but generally that's more complicated. We'vegot retirees. They hold their assets in
a variety of what we would considerkind of tax silos. There's some that's
tax deferred. For many of us, as a majority of our income that

(24:52):
we've put aside into four oh,one ks or four three b's. We
have our portfolios there all so includetaxable after tax accounts that have been earning
money in investments and we pay taxalong the way. And then finally,
many people have wroth accounts that asthey take that money out someday it won't

(25:12):
be taxable. And then perhaps youhave money just sitting in savings and making
a little bit. So each ofthose accounts carries a treatment, and then
there's implications for as you take thatmoney out, how that's going to affect
your overall income. And it's importantthat you know you sit down and understand

(25:33):
the taxation of your Social Security alongsidethe pensions as we spoke of earlier,
because what you're going to want tofigure out as you sit down with your
financial planner is how to harmonize themoney as it comes out, Meaning you
know, when does it make senseto take more out of those pre tax
accounts before you're forced to with requiredminimum distributions? Are you going to look

(25:56):
at perhaps taking one social Security incomeand waiting and delaying the second one in
the household because of other factors,Does it make sense to perhaps consider actually
converting some of your traditional I raysover to Roth. So if this all
sounds complicated, we're just going tosay it can be. It is,

(26:18):
and that's why we would prefer thatyou get some tax guidance as you plan
your withdrawal strategy. So keep thatin mind that all dollars do not come
out the same, and you wantto know what's going to be ahead of
you as you file taxes the followingyear. Some other important items to have
in your checklist should include do youhave a plan for health insurance? We've

(26:41):
had whole shows on this. IfI am pre sixty five? Is most
of my debt paid off? Veryvery important? As you enter retirement,
are your estate plans in order?And finally, do I have ample emergency
funds? Because even in retirement,emergencies come up. So we want you
to be ready for retirement where it'sfor you to get there. So please

(27:02):
just sit down with someone who canguide you through the process. Really good
show this morning, and don't forgetif you want to listen back if you
miss part of the program. Ifyou're new to the show, welcome,
I don't forge you can listen back. We mentioned some of the previous shows
podcasts you can listen back to allof those as well as this one right
at the website classfinancial dot com.That's Klaas Financial dot com. Tell if
a number six soh eight four fourtwo five six three seven, no charge

(27:25):
for that initial gets to know youappointment at Class Financial. It will be
complimentary to you again their number sixoh eight four four to two five six
three seven mentioned the website as well. A great feature over there, it's
the opportunity to submit a question tobe answered here on the program the Money
in Motion Listener Question Corner, Andthis week Christy writes in says, I
have inherited an ira approximately twenty fivethousand dollars from the passing of my aunt

(27:47):
or aunt What are your choices?What are my choices? I receive this
inheritance and that's from Christy. Seefor submitting the question. And as you
can imagine, Christy, it's easyfor us to get these ahead of time
because then we can kind of likemake sure we've got our ducks in a
row to answer it. So,but first things first, it's so sorry
to hear about the loss of afamily member. I'm not sure exactly when

(28:11):
this happened, but always tough tolose a family member, So condolences on
your situation there, but you dohave some choices and likely you'll want to
meet with a financial advisor or anaccount and just to get clarifications on your
situation. So a couple high levelreminders here. Remember an inherited IRA,
also known as a beneficiary IRA,is an account that you open up when

(28:34):
you inherit an IRA after the originalowner dies. Now Christy, since this
was your aunt, that means that, by definition, you are not the
spouse. If you were the spouse, if it was a spouse that passed
away, then you would have otheroptions that are not available to non spouse
beneficiaries of a retirement account. Butin this case, you're a non spouse

(28:57):
beneficiary of a retirement account and soyour options we'll call it simpler. Well
I shouldn't say simpler. Your optionsare more complicated but straightforward. So what
you can do with that money isyou could transfer that money into an inherited
IRA. If you do so,then typically what you have to do as

(29:18):
a non spouse beneficiary is you haveto begin taking a minimum distribution from that
account December thirty, first of theyear after the owner died. If that
owner had reached their required beginning date, which think of this as we'll just
call it seventy four to keep thingssimple. So if the individual who owned
that account, this is your aunt, Christy, your aunt was over seventy

(29:42):
four years old, had reached therequired beginning date, then generally speaking,
you will have to take a minimumdistribution each year over the next ten years.
By the end of the tenth year, all the money has to be
out of the account. Now,Christy, if your aunt died before reaching

(30:03):
her required beginning date, which againfor simplicity, I'm just calling it seventy
four, it's actually a little bitmore com or nuanced than that. But
if your aunt did not reach thatthen typically you do not have to take
out a minimum distribution, but allthe money must be out of that account
by the end of the tenth year. And remember, since this is an
inherited retirement account, there is noten percent penalty in the event that you

(30:29):
are under fifty nine and a half. Christi, because many people say,
but CJ, when I move itinto the inherited IRA, I can't touch
it till fifty nine and a half. Nope, that's not true. That
rule applies to your own IRA,but it does not apply to inherited irays.
So just remember has to be outwithin ten years. That is part
of the new rule as part ofthe Tax Cuts and Jobs Act and Secure
Act. Over time is that we'vehad to adjust. Actually it's not Tax

(30:52):
Cuts and Jobs Act, it's theSecure Act. It's part of the Secure
Act. You now have to havethe money out within ten years. And
I'm assuming Christy that your aunt diedhere within the last year or two.
So lots of things to consider.Kind of bounce on all over the all
over the place here with my answer, but by all means, make sure
you reach out to an advisor orto an accountant to work through your situation

(31:15):
individually. It can really be ablessing, but it can also be something
that you want to make sure thatyou manage properly. A really great email
don't forget you two can be likeChristy. Emails accepted at Coassfinancial dot com.
That's k Laasfinancial dot Com. Thetelephon number for COSS Financial six oh
eight four four to two five sixthree seven, No charge for the initial
gets to know your appointment at ClassFinancial. It will be complimentary to you

(31:37):
again their numbers six oh eight fourfour two five, six three seven.
Want to hold on to that telephonenumbers well, because it's time now for
the coss quiz question of the week. It works like this. In just
a moment, I'll ask you theclass quiz question the week. You will
then have thirty minutes from the edToday's program to call the Class Financial Office
right here in Madison at six oheight four four two five, six three
seven. If you are the firstcall with correct answering, win this week's

(31:57):
prize, which is a twenty fivedollars gift card to Texas Roadhouse. This
week's class quiz question the week isthis approximately how many Americans will turn sixty
five and twenty twenty four? Isit two million or more than four million?
Telephone number six oh eight four fourtwo five, six three seven.
First garth correct answer won that twentyfive dollars gift card to Texas Roadhouse.

(32:21):
Don't forget as well. Let's ClassFinancial Office right here in Madison. Six'
oh eight four four two five sixthree seven. C. J. Malia.
It's always great talking with you guys. You enjoy this beautiful day.
Thanks. We are seven days fifteenhours, fifteen minutes away from the world's
largest broadfast. We'll get some detailson that next as Madison in the morning
and ask the experts continues here onthirteen ten Wiba