Episode Transcript
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Speaker 1 (00:00):
Hello, everybody, Welcome to the Greg Hicks Show in the
middle of the hot summer. Greg Hicks here, certified financial planner,
along with Wanda Cooper Financial Advisor and Bo Nicholson, certified
financial planner. And we all work for a small firm
called Financial Resource Management. But it feels big, but it's small.
(00:20):
Does that make any sense?
Speaker 2 (00:21):
We used to half a billion billion with.
Speaker 1 (00:24):
A big yeah. You know. One of our guests on
our show. By the way, if you're a new listener,
we are Financial Planning Show, and Bobby Edgerton is one
of our money managers and he's just a guru. He's
been around so long and he's full of wisdom. And
I always love Bobby has that kind of old Southern
accent and when he's talking about a company, he'll say
(00:46):
they have a half a billion dollars in cash. So
I love I love how that half a billion rolls
then five hundred million. But anyway, that it was a
neat milestone assets under management for our firm, which is
really cool. And you too could grow your firm to
(01:08):
that level if you work forty one years like I have.
And why to join me twenty years ago? And do
join me? Six or seven, twenty.
Speaker 2 (01:17):
Two, I'll joined you in nineteen ninety's.
Speaker 1 (01:20):
It's all vague to me.
Speaker 3 (01:21):
It's me.
Speaker 1 (01:23):
It's all vague for me. Anyway. You just don't jump
to that level, is what I'm saying. And I like,
you know, the joys in the journey. I'm an athlete
and all that, but former athlete, and uh, it is
joy in the journey. That's how you learn. You learn
so much in the journey.
Speaker 2 (01:42):
Well, the relationships with your clients are so important. I
mean just I know everything about every one of my clients.
And you might say, how do you do that? But
a doctor does it too. If you see a doctor
long enough, he recognizes you when you come in, he's
got his notes. But the relationships are they're just very
powerful and very meaningful to me.
Speaker 3 (02:03):
I would argue that the level of interpersonal connection we
have is higher than really any other industry. Yeah, because
with a doctor, you're exclusive to your health. Oftentimes, and
you go see a psychologist or a psychiatrist, you're sitting
on the couch kind of spilling your guts, but you
know that that's your intention. We have a lot of
people that treat us that way. They sit across the
table from us, and they start to open up on
(02:24):
something and we just sit there silently and let them
start flowing. And I've heard about divorces before they've happened.
I've heard about a lot of family dynamics that maybe
you know. I'm like, okay, you want to share this
with me. This is a lot. But they need somebody
to talk to. And it's endearing in a way when
a client feels that way about you, and that's what
(02:44):
this relationship is all. And if you have a relationship
or a current arrangement with a certain advisor and you
don't have that warm and fuzzy feeling like you feel
like you can talk to them about anything, because you
need that when somebody's helping manage your family finances, if
you're lacking in that departartment, give us a call, get
to know us. So I think you might be a
good fit and find this a little more homey than
(03:05):
maybe where you are now. Nine nine eight five six
one nine six eight.
Speaker 1 (03:10):
Yeah, that's really true. And uh, and money's connected to everything,
every decision, every relationship, your career, uh, your legacy, your taxes.
I mean, that's why it comes up all the time.
And it is a love relationship over time, and it's
a one of trust. That's a big thing. You've got
(03:30):
to trust and feel really good about your relationship with
your advisor. Now, today is kind of a unique show
because we have a show called Current Events two or
three times a year, and we like to do that
because current events are fun to talk about. They're fascinating.
And one thing that makes the investment and the financial
planning business cool is this forever changing. There's nothing permanent.
(03:52):
It's like tomorrow's different than yesterday all the time, and
in my forty years in the business, that's exactly what
it feels like. So one of the big events, bigger
than most people think, is the big beautiful bill that
just passed and there was a lot of let's just say,
(04:12):
ninety percent of the media is disinformation, yes, and the
other ten percent is real information. And today's show is
going to be real information. We're just going to tell
you what it did, what it is for, why it
affects you, and so it'll sound political a little bit,
and that's because you've been listening to the media's disinformation.
(04:34):
So we're just going to give you the facts, Jack,
And it's like those two young for this. But remember
the show dragging that one when we were little kids
and Sergeant Friday. Remember Sergeant Friday was the star and
every time he would come in to solve a crime
or a murder scene or whatever the show was about,
the people would be all emotional telling all these things.
(04:55):
And Sergeant Friday would always say this every show. He'd say,
just the facts, ma'am, just the facts. He just he
just operated on facts. So we're going to be Sergeant
Friday today for the for the older listeners, just the facts,
and that's all we're going to talk about. So we
can talk about that from the very beginning of the show.
(05:17):
But I thought, now I'm throwing the curve ball at
my two my two associates here. Uh just yesterday, great timing.
Here's the test. Ten ten questions in the headline in
the Wall Street Journal test your knowledge on the new
tax law. And I went, I took it, and I
passed barely. So I thought I would throw out, okay,
(05:40):
I'm just you had.
Speaker 2 (05:41):
The answers, right, well.
Speaker 1 (05:42):
They give you the answers. But I didn't look at
him until I, okay, i'll give you the the I'll
just do them a short version. What is the top
income tax rate for individuals? Percentage thirty seven? Thirty seven
is correct? It was going to half and they backed uf.
Speaker 2 (06:04):
You gotta know the BBB.
Speaker 1 (06:10):
What is the new standard deduction for single and married
couples for twenty twenty five. This one's a little harder
I can give you, is it?
Speaker 2 (06:17):
Abc D thirty is thirty one thousand from me?
Speaker 1 (06:21):
That's close.
Speaker 3 (06:23):
No, it's more because you get the six thousand dollars bump.
Oh well, if you're over, sorry to h.
Speaker 2 (06:30):
And and you can't make enough.
Speaker 1 (06:33):
Money, Wanda, you want to not qualified me?
Speaker 2 (06:36):
That's what I'm saying.
Speaker 3 (06:37):
I wasn't qualifying my he you were close.
Speaker 1 (06:39):
It's thirty one and a half hours you okay, uh okay,
So see it's it's tricky. I thought I would get
a better score myself. Okay, y'all have heard assault s
c LT. It's just there's a there's a limit on
deductions you can take, you know, record all your deductions
and give them to your CPA.
Speaker 3 (06:58):
And that's state and local taxes, so you can that's
forty thou Yeah, from ten to forty.
Speaker 1 (07:03):
That's great. Good job, y'all got that one yay, okay,
if okay, Now this one we don't work with as much.
If you if you just take the standard deduction. A
lot of our retirees now don't don't itemize anymore. If
you don't even itemize anything, you just do the simple form.
You still get a charitable deduction.
Speaker 3 (07:25):
One thousand bucks for two thousand for a couple.
Speaker 1 (07:28):
Yeah, that's it, one thousand and two single and couple.
I don't want to go.
Speaker 3 (07:33):
That's new. So you know, if you give to church
and it's a modest thing. With the standard deduction being
so high, that has disincentivized a lot of people unrightfully.
So I mean, you're still doing good work giving, but
you're not getting any kind of a tax breaker. You
weren't previously. Now if you're married, you're gonna get a
two thousand dollars tax breaker.
Speaker 2 (07:51):
Yeah, because I do a lot of giving to charities
and wasn't getting any benefit of it.
Speaker 1 (07:55):
That's right. Now, here's an interesting one. We all recommend
five twenty nine plans because they're great for kids, they
grow tax for grandkids and all that. So now what
is what does it including?
Speaker 2 (08:09):
Now?
Speaker 1 (08:09):
Used to just be college? So I'm will give you
the choices, twenty dollars K through twelve? No, what does
it include K through twelve tutoring fees for for AP
SAT and ACT tests or K through tail twelve books
and supplies? All the above?
Speaker 3 (08:24):
All the above, and Greg, you can use it for
CFP courses. Now after college you can use it on
designations or read that in the Wall Street Journal.
Speaker 1 (08:36):
Who would want your grandkid to take a CFP.
Speaker 3 (08:38):
Co if you have money left over a five to
twenty nine account? Oh, after college, you can use it
for a CFP exam or any professional designation.
Speaker 2 (08:48):
There's also that force saving that for I don't want
to call it force that you can do for your
your children. Is that one thousand or something.
Speaker 3 (08:54):
Like that Trump account?
Speaker 2 (08:57):
Yes, yeah, the Trump.
Speaker 3 (08:58):
Yeah, it's like an I right, So we'll talk about
that more later in the show.
Speaker 1 (09:03):
Okay, when when does the electric vehicle credit stop?
Speaker 3 (09:08):
September September?
Speaker 2 (09:10):
What I don't know matter September.
Speaker 1 (09:15):
Tesla to my birthday set particular.
Speaker 2 (09:17):
Well, I'm not buying electric vehicles. I was never good
getting it into.
Speaker 1 (09:19):
September twenty nine, my birthday, it's in September thirtieth. Okay, Okay,
child tax credit is twenty two unless you have multiple guests, right,
you have a lot of his Okay, state tax max
starting next year.
Speaker 3 (09:40):
Thirty thousand couples, fifteen individual.
Speaker 1 (09:42):
Fifteen million million.
Speaker 3 (09:44):
A couple more zeros.
Speaker 2 (09:45):
On the back.
Speaker 3 (09:46):
Yeah, rich people, thirty grand zeros are important.
Speaker 1 (09:50):
Okay, y'all, y'all got about what I did. So again,
it's so much detail, and I got one more. But
hang on and we're going to get into real great
detail and we're going to on what affects you the most,
not everything. Okay, stay duned. Welcome back to the second
segment of the Greg Hicks Show. We're so glad you
tuned in. We are on the radio in Raleigh, North Carolina,
(10:10):
where we record our show every Thursday morning, and we
also on the radio show down that the Crystal Coast,
a beautiful coast. We have an office in Atlantic Beach
right on the Causeway. If you like a view when
you meet for an advisory meeting, that's the meet the
place to meet. And then in Raleigh we have our
nice office, big office here near North Hills, mall of
(10:31):
all things. So I always tell people that are out
of town a little bit, just drive and meet us
and go shop and eat at North Hills, just real
close by. Anyway, glad you tuned in. We are with
a small firm called Financial Resource Management, and we're proud
to say we've been around about forty some years now.
I'm losing track anymore, but it's been a long time.
(10:54):
But anyway, welcome to the show. We're glad you tuned in.
We do a lot of different topics today we have.
This is a first time show because the show is
on the big beautiful Bill that just passed. A lot
of consternation going on in Washington, a lot of lying
political stuff. You know, don't believe what you hear, and
we're going to point that out today. So we're going
(11:15):
to get into real, real details on some of the
bullet points. We did a fun test our first segment,
but I want to mention this, y'all, a lot of
We're not going to talk a lot about Medicaid and
Medicare because, to be honest, we have clients whose parents
and maybe some kids and spouses are dealing with Medicaid,
(11:37):
but we don't have a lot of that. We do
have a lot of clients over sixty five with Medicare,
but a lot of there was a lot of let's say,
lying in consternation on Medicaid cuts. So I just want
to read you. This is in the Wall Street Journal
April third. Is not that old, and I just want
(11:58):
to point out something. This was an as a matter
of fact, three or four times a year. Phil Graham
and John Early, they're economists. They do a special on
the opinion page on poverty. So let me just read
you two or three things. I'm just going to put
it in perspective and we're not going to talk about it.
A whole lot spinning on medicaid. I'm quoting, spinning on medicaid,
internal the IRS service, cash welfare payments, and the Supplemental
(12:23):
Nutrition Assistant program. They call it snap. You heard that
word snap a lot in the last few months. That's
food stamps. Okay, has grown. Here's the facts, has grown
in inflation adjusted dollars by six hundred and seventy one
percent and fourteen hundred and sixty three percent since nineteen ninety.
(12:46):
Medicare and Social Security and the defense industry outlay has
increased three hundred and eighty, three hundred and eighty six
and thirty eight percent. WHOA what happens, it has to
change blue up. Here's you know. And by the way,
the implementation of a person has to work twenty hours
(13:07):
a week to get it. Now, that's repeating Bill Clinton's
nineteen nineties agenda. Democrat Democrat Bill Clinton. Okay, now here's
something that no one knows unless you know. The Census
has for decades overstated the extent of poverty because it
doesn't count income of transfer payments eighty eight percent of
(13:32):
transfer meaning food stamp payments from the government and those
kind of things free money not taxable. By the way,
the Census doesn't count refundable tax credit checks, food stamp
debit cards, Medicaid, and one hundred other federal, state, and
local transfer payment says income to recipients not taxable. So
(13:54):
even the numbers that you hear are way incorrect. Anyway,
if you want to hear about that, just call me
at nine one, nine eight five six, nineteen sixty eight
and I'll connect you up to some of the real facts.
Speaker 3 (14:07):
And we're not against the doubt endowment programs for the
right people and the right causes, but the way they're
written now and how open they've become, they've effectively incentivized
people to stop any motivation to go into job because
you lose your benefits from the government. In often cases,
if you make that effort to go out and get
a job at McDonald's or whatever it is, why would
(14:29):
you not just stay at home and get paid.
Speaker 2 (14:31):
I've said all along, it's not to cut you off
of the knees. They should be lowering it every year
until you get on your feet. That's the way it
should be done.
Speaker 1 (14:40):
Well. In another article written by these same two guys,
just to remind people that if you were a family
for and qualified for every one of the government programs,
that the income is forty nine thousand a year, mostly
tax free. That's actually not bad for not working. Well.
Speaker 2 (14:57):
Listen, how does this affect our clients and all this
That's what we got to get onto is what is
it that they'll be benefiting from? And let's start with
the Social Security because that's huge. That's what people were
waiting on, hoping that Social Security wouldn't be taxed. But
they had to settle, you know, on another type of bill. Yes,
(15:18):
they had to compromise. That was the word I was
looking for. They had to compromise on that. Yeah, So
and believe it or not, Greg, that is still going
to help a lot of people, because I think it's
still they get an additional six thousand if they're a
couple one hundred and fifty thousand and below, right exactly, Okay,
So it still helps a lot of people. So for
people out there to be saying, oh, it didn't do it,
(15:38):
didn't do anything, didn't do anything, well, no, it didn't
if you were above one hundred and fifty thousand. But
there's a lot of retirees that we work with. Their
income is one hundred thousand, maybe eighty thousand, and so
will help them.
Speaker 1 (15:49):
Yeah, an extra six thousand exempted for the next three years,
by the way, and you know that'll shave people around
one thousand dollars a year.
Speaker 2 (15:59):
What's that a thousand year thousand there?
Speaker 3 (16:01):
I mean, yeah, And he couldn't touch Social Security with
the way the rules stand now. It's off limits for
reconciliation bill, which is what this was. It would have
had to be a much broader, bipartisan thing, harder to
pass through Congress. And so yeah, the six thousand dollars
senior deduction is going to help with that. And so
it was targeted in kind of a back door way
(16:22):
to those taking Social Security benefits, but the benefits themselves.
He chose not to touch that, and that was more
strategic than anything else.
Speaker 2 (16:30):
Well, and I think at some point we all gonna
have to raise the ages just like they were raised.
I am too, because we have a lot of retirees
that don't want it right now. They're still working. We
met with, we've met with several listeners over our years
that they're still working at seventy eight seventy nine because
they left a job that their brain is still big
(16:51):
enough that the company.
Speaker 3 (16:52):
Has won in this room.
Speaker 2 (16:54):
Yeah, so there you go. So our point being that
they've got to do some changes on the age, but
I don't think they'll ever cut the security.
Speaker 1 (17:02):
The sixty two age, to me is where they should
rate for.
Speaker 3 (17:05):
Sure to sixty five. Why can you take social security
before you can take that accout? A lot of people
don't understand that. They try to get it as soon
as possible. And so here's my thought really quick on
social Security. By the way, we've got a whole show
on social Security, So if you want to tune into
that and get our detailed, nuanced thoughts on that, check
us out social Security on the Greg Hekh Show. But
just real quick, I am in full support of sliding
(17:27):
the starting age back from sixty two to sixty five,
because remember these rules were put in place back when
Social Security was formed back in the thirties, and you
only live to sixty seven. People died at sixty shit exactly.
Now with medical eventss people living into the nineties, that's
a lot more of a drag on our social security system.
Here's another thing. We mentioned those Trump accounts at the
start of the show. One thousand dollars to all the
(17:49):
babies that are born between this year and like twenty
twenty eight, and you can put up to six or
seven thousand dollars in each year. There's no income requirement.
It works a lot like an IRA. Put money in,
it's tax deferred, it grows and grows, it's taxed when
you take it out. My thought there, could that potentially
be a setup for the reduction of Social Security in
(18:12):
the future, basically privatizing your own retirement savings and starting
all these kids off with, Okay, here's a thousand bucks.
You need to grow it. You need to grow it.
Those kids turn sixty two, sixty five, social.
Speaker 2 (18:23):
Security older, it doesn't know it's.
Speaker 3 (18:26):
Fully taxable when you take money. Yeah, but I my
thought is that could be the other piece of Trump
in an ancillary way, touching Social Security and basically planning
the seeds now for these kids who will in sixty
years have to deal with social Security, because the thing
about politicians, they're all so dang old, they just keep
(18:47):
they just kick these cans down the road for the
next generation. We have to address the debt, we have
to address social security, all these things. You know, I'm
the thirty seven year old looking at it, like, oh god,
you know, the wave is just the title. The tsunami
is getting bigger and bigger and bigger and bigger, and
at some point it's going to crash your money. Y'all
have a good time. You're welcome.
Speaker 1 (19:10):
Yeah. Another thing that I was tickled is they made
the tax brackets permanent. Yeah, you know, ten, twelve, twenty
two percent and those kind of things. But they do
adjust for inflation, which is absolutely critical. And they also
they also kind of bumped up the exemptions and a
lot of people. I'm surprised that the first Trump law
(19:31):
is I think it was twenty nineteen, maybe it passed,
So it's been around a while, but I've been shocked
at how many people still don't realize if you're married,
you get a thirty one thousand, five hundred dollars exemption
from taxes. Yeah, I mean people are still thinking they
get twelve thousand.
Speaker 2 (19:47):
And they are, they really are.
Speaker 1 (19:49):
And they'll go, well, I don't have to itemize anymore.
And I'll go, that's because you get thirty one thousand
free up.
Speaker 3 (19:54):
Front, and I'd rather have that than try to itemize.
Speaker 1 (19:57):
And they they don't even know. It was the Trump
tax law, the original law. There's been adjusted for inflation,
stuff like that. And a single by the way, single
people fifteen thousand, seven fifty and head of household if
you're a single mom or dad with kids, twenty three
thousand and six five yees not taxable.
Speaker 3 (20:12):
And if you're over sixty five, remember retired couples could
have nearly forty seven thousand dollars in total deductions. Forty
seven thousand dollars. You don't have to pay taxes on
the first forty seven thousand dollars you owe. You are
the first forty seven thousand dollars of income you make.
That is huge. That's tax free income. At fifty thousand dollars.
Speaker 1 (20:32):
You're saving eight nine thousand MILLI years.
Speaker 2 (20:34):
Don't sit there and say this only helps the wealthy. Yeah,
because it is not the best best middle America bill
I've seen in forever. Because I read an article recently
that said the Biden tax situation was really hurting middle America,
and it was. So this is the best situation I've
seen in a long time.
Speaker 1 (20:54):
It really is. And speaking of middle class and working,
the working which is by the way we're working, people
say that, like, you know, like I'm here, I've worked
probably sixty hours a week for twenty five years or so.
Now I'm down. I don't work on Fridays unless we
(21:15):
go to the beach and meet clients down there. But
when I added it up the other day, I'm working.
I'm still working ten hours a day, four days a week,
plus Fridays sometimes, and so I'm a working person even
though I'm not working. Yeah.
Speaker 3 (21:33):
So this working class has this antiquated connotation of somebody
like with a pick axe over their back, going into
the mines.
Speaker 1 (21:40):
By the sweat of your brow, But sometimes it's a
by the sweat of your brain, right, and we're going
to take a break. We're at halftime. We're going to
come back and talk a little more about the big
Beautiful Bill and how it affects you personally. Stay tuned,
welcome back to the second half of the Great Hicks Show.
And if you want to call us and set up
an appointment by a person in person or by phone
one nine eight five six nineteen sixty eight is that
(22:03):
number you can call today to leave a voicemail, we'll
meet you. We get a lot of calls on Saturday
and Sunday because people hear our show. We talk about
the number in boom, they call in right away, So
don't be bashful. Call in, or you can call next
week and talk to a real, live human being. Nine
one nine eight five six nineteen sixty eight. And remember
(22:24):
our shows are recorded. You can go back. They're actually
archived on the radio station in Raleigh, one of sixty
one FM Talk. You can also go to our website
f rm NC that stands for a Financial Resource Management
North Carolina frm NC, and we have a nice website,
a lot of information with recent newsletters. But you also
(22:48):
have a little radio tab you can click on and
scroll down and the topics are listed for you to
help you find the show. Let's say you you want
to know how to invest in stocks, or you just
inherited money or unfortunately had a divorce. We have shows
on all that stuff. So in social security, we have
a show on sobid security bow mentioned, So go back
and look and listen to those shows. Our shows are informative,
(23:10):
but they're also highly educational. I can't say how many
times every month's clients will say, oh, I listened to
your show. So even our own clients listen to our
show just for information, right, And today we've got a
special show. It's on the big beautiful bill that just passed,
and we're trying to do the bullet points that affect
our clients the most and affect you listeners the most.
(23:32):
And there's so much of it. I mean, it's a
massive bill, but we do have a bullet point situation here,
and we're just making comments on a lot of the
stuff that we've brought up already, and then there's more.
So I'll kick off this a little bit with y'all.
Remember that President Trump made a couple of you know,
at first they sounded a little radical. I'm going to
(23:53):
get all the waiters and waitresses, you know, income with
no tips, I mean a tip income with no taxes.
And everybody went, what, Well, it actually came through in
the bill temporarily twenty five thousand of tip income. And
by the way, my wife Laurie tips everybody, the nail
polisher person, the hair lady said, and the veterinarian. I said,
(24:17):
is there anybody you don't tip besides me? And she
went no, So she's.
Speaker 3 (24:20):
Helping downstairs at the office. She better believe you.
Speaker 1 (24:23):
Yeah, she probably walks in and tips. Y'all.
Speaker 3 (24:25):
Overtime is change overtime?
Speaker 1 (24:27):
Yeah, So again, tax you know, people are gonna die.
I'm so sick of hearing that garbage. No, people aren't
going to die. The people who get tips are going
to make more money.
Speaker 3 (24:38):
And that's an above that's a below the line deduction.
That means you don't have to itemize. And so think
about it this way. If you're, like we said, over
the age of sixty five, and you're married and both
you and your spouse get that bonus deduction, your total
deductions are forty seven thousand dollars. Call it fifty thousand dollars.
If your husband works and makes fifty thousand dollars. Effectively,
that income is tax free. Maybe you have a side
(25:01):
job and you wait tables occasionally and you make twenty
five thousand dollars. Guess what, Basically the full seventy five
thousand dollars of income that y'all make you pay no taxes.
Speaker 2 (25:10):
Absolutely, So that doesn't help the middle America.
Speaker 3 (25:12):
These are the fact Why are people not excited about
this book when there's something this.
Speaker 2 (25:18):
The media, the media is hyping people are gonna do.
People are not gonna get food. I don't know where
in the heck that comes from, but that's not true.
Speaker 1 (25:27):
It comes from the bowels of the political party that's
pushing it.
Speaker 3 (25:30):
It's all good news.
Speaker 1 (25:31):
It is good news. Yeah. Yeah. Also overtime. Yeah, why
do you mention overtime and talk about the cars if
you're I mean there are patriots like I buy everything American. Well,
now you can buy an American car and borrow money
and not pay interest. Now, bo, you're younger than us.
But back in the days when we grew up, you
(25:52):
could write off interest, debt, credit cards, credit card credit
card interest, car loan interest, all that was right off. Yeah,
I forget what year is probably forty years ago they
changed it. So this is a little bit of a
back door. Yeah, go back to the good old days,
buy car and right off.
Speaker 3 (26:09):
The first only on American cars. Yeah, yes, Mercedes out
e everything.
Speaker 1 (26:13):
Else if they're as symbol here amy.
Speaker 3 (26:17):
Phrase like Hundai has got a big plant down in
South Carolina, so that might qualify that.
Speaker 1 (26:21):
Yeah, yeah, Mercedes has in Tennessee. I think, okay, but
it has to be fully assembled here, and so the
only the only car dealer, and and Ford uses this
on their ads. Now we're the only fully we do
eighty eight percent of our cars in America. I'm not
a forward person, but think about it if you're borrowing
money on the car.
Speaker 2 (26:40):
But Greg, there should be some things that help small
businesses too, like the qualified business what do you call it,
the QBI. So I think that's something that will help
businesses for sure, because there's a twenty percent QBI deduction
that was originally set to expire is now permanent.
Speaker 1 (26:58):
Yeah. Yeah, And I love the fact that in the bill,
you know, big, big, big businesses have just I mean
some of the businesses, some of the stocks we buy, y'all,
it's like like we've been buying periodically Mercedes when they
were down in Pfizer. You know those kind of companies, Nike,
they're they're they're when they're out of favor, and they
(27:19):
pay a great dividend. We we pluck those off the tree.
But when you look at their income, some of them,
their revenue is a billion a week. It's kind of
like our business, y'all, don't we don't we inflow about
a billion a week?
Speaker 3 (27:34):
Do you ever take me?
Speaker 1 (27:36):
I mean imagine so so Wanda, you're your points well taken.
About about seventy five percent of Americans work for smaller businesses,
so the bill is specifically targeting the little guys like
our company. We have six employees, we're considered small business,
so that so we get some exemptions on income that's
(27:58):
not taxed too hurt. And then if we let's say
we spend money on something big, it's deductible one hundred
percent of the first year. Those are huge things to
help because it remember, small businesses filter down to all
the employees. If you don't pass much in taxes, you
got more money for bonuses and different things like that.
So it becomes reality in a hurry.
Speaker 2 (28:20):
When you look at but if you're living on the government.
I'm not trying to diss anybody. You don't have the
big global picture of that. Because I know that big
businesses are small, but they need the tax breaks to
be able to pay employees. Well, I mean, you know,
I took some economics. I didn't necessarily, you know, make
great grades on some of it because it's very hard.
Speaker 1 (28:41):
Let's talk about your GPA one.
Speaker 2 (28:43):
But with the economics and the bonds and all, that
was a little bit difficult. But I did pass it.
Speaker 1 (28:48):
There you go.
Speaker 2 (28:49):
But what I'm saying is if you understand, and I
grew up in a small business family. My family ran
a fish market, so you know, they used us kids.
They had seven of them, so we worked laboriously. So
you know, I get the small business arena. And I
wish people would understand that when you're harping on these
tax breaks are for the wealthy. Will the big businesses
(29:10):
should get more tax breaks because they're paying people. And
Amazon you can bet it's paying people well, right.
Speaker 3 (29:16):
And the whole Like, Okay, Jeff Bezos, he just had
that huge wedding, Oh god, and he needs to pay
his fair share. We need to have a billionaire tax. Okay,
what do you want them to do? I want him
to dump his Amazon shares and crash Amazon, the stock
that so many people have made wealth in. Like, think
about the ripple effects. How many people does he employ?
How many livelihoods is he responsible for? It's just it's
(29:38):
outrageous the intention there is sometimes maybe okay, I get
where you're coming from, but let's think about the details.
And as soon as you turn a little bit more
than one percent of your brain on, you start to realize,
all right, maybe this is not the right thing. Speaking
of that in business deductions, one thing they're getting rid
of and putting more restrictions around are the clean energy
tax credits. Think about this. My wife has a tell
(30:01):
your I can you tell your right? I know you
do too, Wanda. There's I love everything about it except
one thing. There is a feature that you can turn
on and off that will turn your car off at
a stoplight and then turn it back on every time
you break. It turns the car off. And why does
it do that to quote, save gas, to save the planet. Well,
what does it cause? It causes those cars to break
(30:24):
more often than not when you're turning it off and
on and off and on and off and on. Why
did they do that in the first place for a
clean energy tax credit? Stupid rules my dishwasher. I had
the guy come to my house to repair my dishwasher,
and he came over and I was like, it's a whirlpool.
I thought these things were supposed to be incredibly reliable.
He goes, yeah, before twenty twenty two. Why because this
(30:46):
one has the clean energy thing where the top turns on,
then the bottom turns on, then the top turns on,
and it's a water conservation thing. He goes, it's the
dumbest thing ever, if you ask me. And they break
all the time because of the alternator in it. And
there's so many more examples of that, of these.
Speaker 2 (31:00):
Companies ropping them on there just to get it on
exactly exactly.
Speaker 3 (31:03):
These companies are having to bend over backwards to do
the quote clean energy thing and save the planet. Sure
we care about we care about our planet, obviously, but
let's be smart about how we protect it. Right. Glad
they're getting rid of those.
Speaker 2 (31:17):
Yeah, Section one seventy nine that applies to you. They
did increase that to two and a half million. In
case you want to spend the money.
Speaker 1 (31:24):
What are y'all asking for a new new office down? Well,
I will say this, guys, A lot of people back
back to something both said about, don't I was. I
was debating someone the other day about the billionaires. If
that's not fair, they should pay more in taxes. So
I just asked a simple question. I said, do you
have a computer anyway? Yeah? And I said, so, Steve Jobs,
(31:49):
do you have an Apple computer or do you have
a Microsoft? You know, do you use Microsoft? I said, Uh,
those guys were billionaires for a reason, but you use
their stuff all the time. So I'm gonna take away
your computer because you don't like them. You don't like them,
You're a hypocrite. You're a hypocrite. And so sometimes just
I'm not in your face too often, but sometimes I
(32:10):
get angry a family member it was, I'm going to
say who it was? Okay, uh but let me uh
bo you always laugh at me, But let me tell
you the reality. And this is important. Billionaires to get
a tax break, the top one percent of Americans paid
forty five point eight percent of the revenues to the
federal government. The top one percent ninety nine percent paid
(32:33):
the other half. Now here's the one that gets me
the most. The top fifty percent of American taxpayers paid
ninety seven point seven percent of all income revenue from taxes.
What does the bottom fifty percent pay two point one get.
They don't get a tax break because.
Speaker 3 (32:53):
They ain't paying tax taxes back.
Speaker 1 (32:55):
That's right, Okay, Well that we're going to take a break.
Hang on, Welcome back to the last segment of the
Greg Hicks Show. This show is interesting. We're talking about
the Big Beautiful Bill that just passed. And if you've
missed some of it, you can go back on the archives.
Just wait about three or four days from now and
you can find us on the radio station and Riley
one of six to one FM Talk and click on
(33:18):
their website and click on the Greg Hick Show button
and scroll down and listen to this show. And then
also you can go to our personal company website f
r M f r m NC dot com and scroll
over and click on the Greg Kickshow and go down.
Also has many many other topics archived. And by the way,
(33:38):
speaking of shows, originally we were going to jump into
a series of family shows, but we felt like the
Big Beautiful Bill had to be talked about today, so
we kind of bumped it up. But next next week
we're going to talk about some serious things the loss
of a spouse, followed by financial issues and marriage and
divorce issues. So we started the show talking about how
(34:02):
sometimes people share a lot of intimate personal things with
us because they trust us and they know it's confidential,
but it also helps us understand them emotionally. Why are
they making some of their decisions the way they do?
So we we do spend at least one month four
or more shows every year on the family because it's
critical everything you do financially affects your family. So we're
(34:26):
not going to ignore that, right, We're going to We
want you to listen to it, and so tune in
and we'll get into that. So, okay, guys were wrapping
up a little bit the Big Beautiful Bill show, and
I'm trying to think of other things that it might
because that's a big one explain with that stand.
Speaker 3 (34:47):
HSA is your Health Savings Account. Previously it was only
available to people that had high deductible plans, So that
basically means you have a cheaper monthly premium on your
healthcare plan, but you have to pay more out of pocket. Well,
now they've opened it up up to a lot of
other plans. They've also opened up what you can spend
that money on. You can now spend that money on therapy,
(35:07):
whether it's marriage or family counseling, life coaching. You can
spend that money on functional medicine, nutritional counseling, vitamins, some
long term care expenses. And they've increased what you can
put in every single year, so a family can put
in ten three hundred dollars per year and an individual
(35:28):
can put in fifty one fifty. There's a catch up
for people over the age of fifty five, they can
put in a bonus thousand. You can combine accounts now,
so if you have a husband and wife that both
had an HSA, well you can basically roll those together
now and just have one that Simplicity is huge, and
I tell clients that all the time. You know, over
complication does not equal good strategy. Over Complication is not diversification.
(35:52):
Let's get your stuff nice and tight for you and
also for the people that you pass your money on too.
You don't want to leave people a big mess. Simplification
is a big thing, a big piece of what we do,
and the HSA is a huge benefit. If you have
an HSA account of health savings account, it can be
monumental in your retirement planning for healthcare costs. And there
are strategies around using that HSA in an effective way.
(36:15):
So give us a call. If your advisor is not
talking to you about that kind of thing, which again
most advisors don't. They talk to you about the investment piece.
If anything that we're touching on today is kind of
tickling something in your mind and you think, all right,
I could benefit from talking to those guys. We think
so too. We'd love to meet you. Give us a call.
Nine one nine eight five six one nine six eight.
Speaker 2 (36:36):
The thing I like about the bill is the real estate.
I've had people in our area are realizing the impact
of five point forty going through. They're losing their farmland,
you know, their family homes. And Ricky and I are
able to see this, my husband, I are able to
see this every day when we're driving home. These big
(36:58):
beautiful lane that used to be just trees and a
farm or a silo or whatever or being they're cut down.
So and I've had people call because they want to
know how to save taxes on that situation. So there
are ten thirty one exchanges, and they've expanded this bill
(37:19):
to include more opportunity to allow you to do that better.
Speaker 1 (37:23):
And the opsone you're talking about shaving capital game, saving.
Speaker 2 (37:27):
Capital game, which yes, these people have virtually no cost
bases in these family farms and so, and then you've
got the government coming in and saying we'll offer you
this money around books and they'll go hire a professional
surveyor and all that, and the land is worth twice
as much. So and they're winning those cases, but they've
got to figure out a way to save taxes. So
(37:48):
the ten thirty one exchange, if you're being impacted, or
maybe you're at the age which I've had a couple
of calls on this too, where the people are at
seventy five eighty years old and they're like, I don't
want to say any more, how can I save taxes?
So you know, those are huge.
Speaker 3 (38:04):
Ten thirty one exchanges are great, but remember with ten
thirty one exchanges, you've got to put the full value
in there. And so let's say your farm sales for
five million dollars, you got to take that full five
million dollars and put it into a ten thirty one.
You can take a portion of it, but then you're
paying taxes on the remainder. With a qualified opportunity zone,
you can shave off just the gain. So let's just
(38:25):
say your basis in that property is two million bucks,
and then it's worth five million. Three million. Of those
five million that's capital gain. You take that three million,
put it into an opportunity zone. It defers the taxes
on that and effectively you're getting rid of the taxes.
Call us to figure out exactly how that works. But
you take three million dollars, you put it into that investment,
it'll pay you income down the road. You'll get that
(38:47):
money out. Well in the meantime, you take the two
million dollars of cost basis that's untaxable, and you have
that money to spend. And so there's all these different
avenues that you can take. Some might be right, some
might be better for you. So give us a call so
that we can help you navigate that nine one nine
eight five six one nine six eight. Because one thing
that we hate is paying too much to the government
(39:08):
and taxes. Another thing that we hate is the government
coming in and taking your property. Unfortunately, too many people
are doing both those things right now, so get some
guidance nine one nine eight five six one nine six.
Speaker 2 (39:19):
Eight and also on the ten thirty one. You know,
with the situation, we work with a company that has
properties already, so you don't have to identify, you know,
or fine proper. That might break down in the process
because when you identify and then forty five days later
that property might be gone. But these people have property.
Speaker 1 (39:40):
All the time in a pipeline.
Speaker 2 (39:42):
And a pipeline and so getting monthly income and so
forth and so on. So don't sit there and try
to figure out what to do. Because some of these
families I mentioned in our area they never dealt with
anything like this, so they need help. But anyway, give
us a call at nine one nine a five six
nineteen sixty eight and let us navigate. This situation is
(40:02):
very very important for you and.
Speaker 1 (40:04):
That you know, and what we just talked about is
capital gains. That's different than income tax, and a lot
of people don't think about it. They'll just sell, like
they'll sell their beach house because they bought it for
one hundred and fifty and that it's worth four fifty
and they'll sell it and they'll say, well, it's a
second residence, so I don't have to pay capital games. Wrong.
(40:26):
By the way, you have to pay capital gains on
your own house, but each person gets two hundred and
fifty thousand exempted. So if you moved to Riley and
bought a house for three hundred and now it's worth
a million, and you sell it and you're a couple,
you're gonna have seven hundred thousand dollars of capital gains.
You can only write off five hundred of it. Too bad,
you're gonna have to pay tax. But on the second
(40:46):
home it's all cap gain. So, as Bow and Wind
have said, there are all kinds of great solutions. You
don't have to do them. You can just pay the
government and say I'm going to support the government more
because they spend my money so well. But we're of
the opinion, why don't you defer those games or save
cap gains because that's money out of your pocket and
(41:07):
you deserve to keep all of it you can. It's
all legal, and we're not trying to scam anybody at all.
These are legal things, and they're in the tax bill,
the bill that just got approved again. And by the
way of opportunity zones didn't even exist before the first
Trump law. That was something that Tim Scott, Senator of
South Carolina, who was a black senator who grew up
in poverty and learned how to work his way up
(41:30):
to the top. Tippy topic and President Trump, So anyway,
don't listen. We started our show saying, don't listen to
all the garbage on the media about this tax bill.
Ninety percent of it is just lying in distortion. Get
the facts, and if you need to go back and
listen to our show again, I would highly encourage you
to do that. Get the facts so that you know
(41:52):
what's going on. So call us at nine one, nine, eight, five, six,
nineteen sixty eight.
Speaker 3 (41:57):
We also mentioned that it's start of our show, how
well there's increasing change to the tax law and just
everything that has to do with your financial life. The
rules are always changing, it's always a moving target, and
it's so critical for you to have an investment partner
or a financial partner, a team behind you that is
(42:19):
keeping up with those changes, and a team that not
only Greg, Wanda and myself work together and try to
stay up to date on all these things, but also
work with local CPAs and local estate planners and other
people that are important to your financial success. So if
you're not working with a group, or you don't have
the confidence in your current situation that you're keeping up
(42:42):
with all this and that you're navigating all this properly,
get a second opinion. Second opinion is either going to
validate what you're doing now and then you can go
back and everything's hunky dory, or we find some areas
where we can improve your situation. We find some areas
for tax savings, decreased risk, whatever it is. Whatever it is,
(43:03):
use this as a catalyst moment to get a second opinion.
We'd love to meet you. Nine one nine, eight five
six eight.
Speaker 2 (43:12):
I met with a couple recently that had been to
three different firms and gotten proposals on their on the
retirement situation, and uh, and I met with him. I
was a fourth and and I met back with him
to give him my proposal. And he went and got
his three books that were given to him by the
(43:34):
other firms. I said, here, take this home and look
at it. He put them in front of me, and
he said, yours is the only one I've understood so far,
and I had one. I had one had two pages,
a cover page with his objectives and my recommendations and
the proposal. And he said, I don't know what these
And I looked at those and I'm like, I don't
(43:54):
know how in the world you know what it's saying.
Speaker 1 (43:56):
He said, I didn't, so too much information, too much.
Speaker 2 (43:59):
Information and sending at home for him to look over
and call them back. That was just unbelievable to me.
And they were highly reputable firms. I won't give any names.
Speaker 3 (44:09):
But so Munications talking about earlier. That's what we do.
It's got to be digestible for you. You have to understand
what we're doing, because if you don't understand it, you
can't be comfortable with it. And this is a relationship.
We want you to be comfortable. We want you to
be happy. We want you to have that warm and
fuzzy feel And so call us again nine one nine
eighty five six one nine six eight.
Speaker 1 (44:29):
And with that, remember the next three shows are going
to be about the family and how money affects your
family life and decision making and so forth. And remember this,
it's your money, it's your future. Don't blow it.
Speaker 3 (44:41):
Advisory services through Capital Investment Advisory Services LLC. Security is
offered through Capital Investment Group, bing Remember, Finra and SIPIC
one thousand et six Forks Road, Raleigh, North Carolina, nine
one nine eight one twenty three seventy. HOUST performance is
not indicative of future results
Hello, everybody, Welcome to the Greg Hicks Show in the
middle of the hot summer. Greg Hicks here, certified financial planner,
along with Wanda Cooper Financial Advisor and Bo Nicholson, certified
financial planner. And we all work for a small firm
called Financial Resource Management. But it feels big, but it's small.
(00:20):
Does that make any sense?
Speaker 2 (00:21):
We used to half a billion billion with.
Speaker 1 (00:24):
A big yeah. You know. One of our guests on
our show. By the way, if you're a new listener,
we are Financial Planning Show, and Bobby Edgerton is one
of our money managers and he's just a guru. He's
been around so long and he's full of wisdom. And
I always love Bobby has that kind of old Southern
accent and when he's talking about a company, he'll say
(00:46):
they have a half a billion dollars in cash. So
I love I love how that half a billion rolls
then five hundred million. But anyway, that it was a
neat milestone assets under management for our firm, which is
really cool. And you too could grow your firm to
(01:08):
that level if you work forty one years like I have.
And why to join me twenty years ago? And do
join me? Six or seven, twenty.
Speaker 2 (01:17):
Two, I'll joined you in nineteen ninety's.
Speaker 1 (01:20):
It's all vague to me.
Speaker 3 (01:21):
It's me.
Speaker 1 (01:23):
It's all vague for me. Anyway. You just don't jump
to that level, is what I'm saying. And I like,
you know, the joys in the journey. I'm an athlete
and all that, but former athlete, and uh, it is
joy in the journey. That's how you learn. You learn
so much in the journey.
Speaker 2 (01:42):
Well, the relationships with your clients are so important. I
mean just I know everything about every one of my clients.
And you might say, how do you do that? But
a doctor does it too. If you see a doctor
long enough, he recognizes you when you come in, he's
got his notes. But the relationships are they're just very
powerful and very meaningful to me.
Speaker 3 (02:03):
I would argue that the level of interpersonal connection we
have is higher than really any other industry. Yeah, because
with a doctor, you're exclusive to your health. Oftentimes, and
you go see a psychologist or a psychiatrist, you're sitting
on the couch kind of spilling your guts, but you
know that that's your intention. We have a lot of
people that treat us that way. They sit across the
table from us, and they start to open up on
(02:24):
something and we just sit there silently and let them
start flowing. And I've heard about divorces before they've happened.
I've heard about a lot of family dynamics that maybe
you know. I'm like, okay, you want to share this
with me. This is a lot. But they need somebody
to talk to. And it's endearing in a way when
a client feels that way about you, and that's what
(02:44):
this relationship is all. And if you have a relationship
or a current arrangement with a certain advisor and you
don't have that warm and fuzzy feeling like you feel
like you can talk to them about anything, because you
need that when somebody's helping manage your family finances, if
you're lacking in that departartment, give us a call, get
to know us. So I think you might be a
good fit and find this a little more homey than
(03:05):
maybe where you are now. Nine nine eight five six
one nine six eight.
Speaker 1 (03:10):
Yeah, that's really true. And uh, and money's connected to everything,
every decision, every relationship, your career, uh, your legacy, your taxes.
I mean, that's why it comes up all the time.
And it is a love relationship over time, and it's
a one of trust. That's a big thing. You've got
(03:30):
to trust and feel really good about your relationship with
your advisor. Now, today is kind of a unique show
because we have a show called Current Events two or
three times a year, and we like to do that
because current events are fun to talk about. They're fascinating.
And one thing that makes the investment and the financial
planning business cool is this forever changing. There's nothing permanent.
(03:52):
It's like tomorrow's different than yesterday all the time, and
in my forty years in the business, that's exactly what
it feels like. So one of the big events, bigger
than most people think, is the big beautiful bill that
just passed and there was a lot of let's just say,
(04:12):
ninety percent of the media is disinformation, yes, and the
other ten percent is real information. And today's show is
going to be real information. We're just going to tell
you what it did, what it is for, why it
affects you, and so it'll sound political a little bit,
and that's because you've been listening to the media's disinformation.
(04:34):
So we're just going to give you the facts, Jack,
And it's like those two young for this. But remember
the show dragging that one when we were little kids
and Sergeant Friday. Remember Sergeant Friday was the star and
every time he would come in to solve a crime
or a murder scene or whatever the show was about,
the people would be all emotional telling all these things.
(04:55):
And Sergeant Friday would always say this every show. He'd say,
just the facts, ma'am, just the facts. He just he
just operated on facts. So we're going to be Sergeant
Friday today for the for the older listeners, just the facts,
and that's all we're going to talk about. So we
can talk about that from the very beginning of the show.
(05:17):
But I thought, now I'm throwing the curve ball at
my two my two associates here. Uh just yesterday, great timing.
Here's the test. Ten ten questions in the headline in
the Wall Street Journal test your knowledge on the new
tax law. And I went, I took it, and I
passed barely. So I thought I would throw out, okay,
(05:40):
I'm just you had.
Speaker 2 (05:41):
The answers, right, well.
Speaker 1 (05:42):
They give you the answers. But I didn't look at
him until I, okay, i'll give you the the I'll
just do them a short version. What is the top
income tax rate for individuals? Percentage thirty seven? Thirty seven
is correct? It was going to half and they backed uf.
Speaker 2 (06:04):
You gotta know the BBB.
Speaker 1 (06:10):
What is the new standard deduction for single and married
couples for twenty twenty five. This one's a little harder
I can give you, is it?
Speaker 2 (06:17):
Abc D thirty is thirty one thousand from me?
Speaker 1 (06:21):
That's close.
Speaker 3 (06:23):
No, it's more because you get the six thousand dollars bump.
Oh well, if you're over, sorry to h.
Speaker 2 (06:30):
And and you can't make enough.
Speaker 1 (06:33):
Money, Wanda, you want to not qualified me?
Speaker 2 (06:36):
That's what I'm saying.
Speaker 3 (06:37):
I wasn't qualifying my he you were close.
Speaker 1 (06:39):
It's thirty one and a half hours you okay, uh okay,
So see it's it's tricky. I thought I would get
a better score myself. Okay, y'all have heard assault s
c LT. It's just there's a there's a limit on
deductions you can take, you know, record all your deductions
and give them to your CPA.
Speaker 3 (06:58):
And that's state and local taxes, so you can that's
forty thou Yeah, from ten to forty.
Speaker 1 (07:03):
That's great. Good job, y'all got that one yay, okay,
if okay, Now this one we don't work with as much.
If you if you just take the standard deduction. A
lot of our retirees now don't don't itemize anymore. If
you don't even itemize anything, you just do the simple form.
You still get a charitable deduction.
Speaker 3 (07:25):
One thousand bucks for two thousand for a couple.
Speaker 1 (07:28):
Yeah, that's it, one thousand and two single and couple.
I don't want to go.
Speaker 3 (07:33):
That's new. So you know, if you give to church
and it's a modest thing. With the standard deduction being
so high, that has disincentivized a lot of people unrightfully.
So I mean, you're still doing good work giving, but
you're not getting any kind of a tax breaker. You
weren't previously. Now if you're married, you're gonna get a
two thousand dollars tax breaker.
Speaker 2 (07:51):
Yeah, because I do a lot of giving to charities
and wasn't getting any benefit of it.
Speaker 1 (07:55):
That's right. Now, here's an interesting one. We all recommend
five twenty nine plans because they're great for kids, they
grow tax for grandkids and all that. So now what
is what does it including?
Speaker 2 (08:09):
Now?
Speaker 1 (08:09):
Used to just be college? So I'm will give you
the choices, twenty dollars K through twelve? No, what does
it include K through twelve tutoring fees for for AP
SAT and ACT tests or K through tail twelve books
and supplies? All the above?
Speaker 3 (08:24):
All the above, and Greg, you can use it for
CFP courses. Now after college you can use it on
designations or read that in the Wall Street Journal.
Speaker 1 (08:36):
Who would want your grandkid to take a CFP.
Speaker 3 (08:38):
Co if you have money left over a five to
twenty nine account? Oh, after college, you can use it
for a CFP exam or any professional designation.
Speaker 2 (08:48):
There's also that force saving that for I don't want
to call it force that you can do for your
your children. Is that one thousand or something.
Speaker 3 (08:54):
Like that Trump account?
Speaker 2 (08:57):
Yes, yeah, the Trump.
Speaker 3 (08:58):
Yeah, it's like an I right, So we'll talk about
that more later in the show.
Speaker 1 (09:03):
Okay, when when does the electric vehicle credit stop?
Speaker 3 (09:08):
September September?
Speaker 2 (09:10):
What I don't know matter September.
Speaker 1 (09:15):
Tesla to my birthday set particular.
Speaker 2 (09:17):
Well, I'm not buying electric vehicles. I was never good
getting it into.
Speaker 1 (09:19):
September twenty nine, my birthday, it's in September thirtieth. Okay, Okay,
child tax credit is twenty two unless you have multiple guests, right,
you have a lot of his Okay, state tax max
starting next year.
Speaker 3 (09:40):
Thirty thousand couples, fifteen individual.
Speaker 1 (09:42):
Fifteen million million.
Speaker 3 (09:44):
A couple more zeros.
Speaker 2 (09:45):
On the back.
Speaker 3 (09:46):
Yeah, rich people, thirty grand zeros are important.
Speaker 1 (09:50):
Okay, y'all, y'all got about what I did. So again,
it's so much detail, and I got one more. But
hang on and we're going to get into real great
detail and we're going to on what affects you the most,
not everything. Okay, stay duned. Welcome back to the second
segment of the Greg Hicks Show. We're so glad you
tuned in. We are on the radio in Raleigh, North Carolina,
(10:10):
where we record our show every Thursday morning, and we
also on the radio show down that the Crystal Coast,
a beautiful coast. We have an office in Atlantic Beach
right on the Causeway. If you like a view when
you meet for an advisory meeting, that's the meet the
place to meet. And then in Raleigh we have our
nice office, big office here near North Hills, mall of
(10:31):
all things. So I always tell people that are out
of town a little bit, just drive and meet us
and go shop and eat at North Hills, just real
close by. Anyway, glad you tuned in. We are with
a small firm called Financial Resource Management, and we're proud
to say we've been around about forty some years now.
I'm losing track anymore, but it's been a long time.
(10:54):
But anyway, welcome to the show. We're glad you tuned in.
We do a lot of different topics today we have.
This is a first time show because the show is
on the big beautiful Bill that just passed. A lot
of consternation going on in Washington, a lot of lying
political stuff. You know, don't believe what you hear, and
we're going to point that out today. So we're going
(11:15):
to get into real, real details on some of the
bullet points. We did a fun test our first segment,
but I want to mention this, y'all, a lot of
We're not going to talk a lot about Medicaid and
Medicare because, to be honest, we have clients whose parents
and maybe some kids and spouses are dealing with Medicaid,
(11:37):
but we don't have a lot of that. We do
have a lot of clients over sixty five with Medicare,
but a lot of there was a lot of let's say,
lying in consternation on Medicaid cuts. So I just want
to read you. This is in the Wall Street Journal
April third. Is not that old, and I just want
(11:58):
to point out something. This was an as a matter
of fact, three or four times a year. Phil Graham
and John Early, they're economists. They do a special on
the opinion page on poverty. So let me just read
you two or three things. I'm just going to put
it in perspective and we're not going to talk about it.
A whole lot spinning on medicaid. I'm quoting, spinning on medicaid,
internal the IRS service, cash welfare payments, and the Supplemental
(12:23):
Nutrition Assistant program. They call it snap. You heard that
word snap a lot in the last few months. That's
food stamps. Okay, has grown. Here's the facts, has grown
in inflation adjusted dollars by six hundred and seventy one
percent and fourteen hundred and sixty three percent since nineteen ninety.
(12:46):
Medicare and Social Security and the defense industry outlay has
increased three hundred and eighty, three hundred and eighty six
and thirty eight percent. WHOA what happens, it has to
change blue up. Here's you know. And by the way,
the implementation of a person has to work twenty hours
(13:07):
a week to get it. Now, that's repeating Bill Clinton's
nineteen nineties agenda. Democrat Democrat Bill Clinton. Okay, now here's
something that no one knows unless you know. The Census
has for decades overstated the extent of poverty because it
doesn't count income of transfer payments eighty eight percent of
(13:32):
transfer meaning food stamp payments from the government and those
kind of things free money not taxable. By the way,
the Census doesn't count refundable tax credit checks, food stamp
debit cards, Medicaid, and one hundred other federal, state, and
local transfer payment says income to recipients not taxable. So
(13:54):
even the numbers that you hear are way incorrect. Anyway,
if you want to hear about that, just call me
at nine one, nine eight five six, nineteen sixty eight
and I'll connect you up to some of the real facts.
Speaker 3 (14:07):
And we're not against the doubt endowment programs for the
right people and the right causes, but the way they're
written now and how open they've become, they've effectively incentivized
people to stop any motivation to go into job because
you lose your benefits from the government. In often cases,
if you make that effort to go out and get
a job at McDonald's or whatever it is, why would
(14:29):
you not just stay at home and get paid.
Speaker 2 (14:31):
I've said all along, it's not to cut you off
of the knees. They should be lowering it every year
until you get on your feet. That's the way it
should be done.
Speaker 1 (14:40):
Well. In another article written by these same two guys,
just to remind people that if you were a family
for and qualified for every one of the government programs,
that the income is forty nine thousand a year, mostly
tax free. That's actually not bad for not working. Well.
Speaker 2 (14:57):
Listen, how does this affect our clients and all this
That's what we got to get onto is what is
it that they'll be benefiting from? And let's start with
the Social Security because that's huge. That's what people were
waiting on, hoping that Social Security wouldn't be taxed. But
they had to settle, you know, on another type of bill. Yes,
(15:18):
they had to compromise. That was the word I was
looking for. They had to compromise on that. Yeah, So
and believe it or not, Greg, that is still going
to help a lot of people, because I think it's
still they get an additional six thousand if they're a
couple one hundred and fifty thousand and below, right exactly, Okay,
So it still helps a lot of people. So for
people out there to be saying, oh, it didn't do it,
(15:38):
didn't do anything, didn't do anything, well, no, it didn't
if you were above one hundred and fifty thousand. But
there's a lot of retirees that we work with. Their
income is one hundred thousand, maybe eighty thousand, and so
will help them.
Speaker 1 (15:49):
Yeah, an extra six thousand exempted for the next three years,
by the way, and you know that'll shave people around
one thousand dollars a year.
Speaker 2 (15:59):
What's that a thousand year thousand there?
Speaker 3 (16:01):
I mean, yeah, And he couldn't touch Social Security with
the way the rules stand now. It's off limits for
reconciliation bill, which is what this was. It would have
had to be a much broader, bipartisan thing, harder to
pass through Congress. And so yeah, the six thousand dollars
senior deduction is going to help with that. And so
it was targeted in kind of a back door way
(16:22):
to those taking Social Security benefits, but the benefits themselves.
He chose not to touch that, and that was more
strategic than anything else.
Speaker 2 (16:30):
Well, and I think at some point we all gonna
have to raise the ages just like they were raised.
I am too, because we have a lot of retirees
that don't want it right now. They're still working. We
met with, we've met with several listeners over our years
that they're still working at seventy eight seventy nine because
they left a job that their brain is still big
(16:51):
enough that the company.
Speaker 3 (16:52):
Has won in this room.
Speaker 2 (16:54):
Yeah, so there you go. So our point being that
they've got to do some changes on the age, but
I don't think they'll ever cut the security.
Speaker 1 (17:02):
The sixty two age, to me is where they should
rate for.
Speaker 3 (17:05):
Sure to sixty five. Why can you take social security
before you can take that accout? A lot of people
don't understand that. They try to get it as soon
as possible. And so here's my thought really quick on
social Security. By the way, we've got a whole show
on social Security, So if you want to tune into
that and get our detailed, nuanced thoughts on that, check
us out social Security on the Greg Hekh Show. But
just real quick, I am in full support of sliding
(17:27):
the starting age back from sixty two to sixty five,
because remember these rules were put in place back when
Social Security was formed back in the thirties, and you
only live to sixty seven. People died at sixty shit exactly.
Now with medical eventss people living into the nineties, that's
a lot more of a drag on our social security system.
Here's another thing. We mentioned those Trump accounts at the
start of the show. One thousand dollars to all the
(17:49):
babies that are born between this year and like twenty
twenty eight, and you can put up to six or
seven thousand dollars in each year. There's no income requirement.
It works a lot like an IRA. Put money in,
it's tax deferred, it grows and grows, it's taxed when
you take it out. My thought there, could that potentially
be a setup for the reduction of Social Security in
(18:12):
the future, basically privatizing your own retirement savings and starting
all these kids off with, Okay, here's a thousand bucks.
You need to grow it. You need to grow it.
Those kids turn sixty two, sixty five, social.
Speaker 2 (18:23):
Security older, it doesn't know it's.
Speaker 3 (18:26):
Fully taxable when you take money. Yeah, but I my
thought is that could be the other piece of Trump
in an ancillary way, touching Social Security and basically planning
the seeds now for these kids who will in sixty
years have to deal with social Security, because the thing
about politicians, they're all so dang old, they just keep
(18:47):
they just kick these cans down the road for the
next generation. We have to address the debt, we have
to address social security, all these things. You know, I'm
the thirty seven year old looking at it, like, oh god,
you know, the wave is just the title. The tsunami
is getting bigger and bigger and bigger and bigger, and
at some point it's going to crash your money. Y'all
have a good time. You're welcome.
Speaker 1 (19:10):
Yeah. Another thing that I was tickled is they made
the tax brackets permanent. Yeah, you know, ten, twelve, twenty
two percent and those kind of things. But they do
adjust for inflation, which is absolutely critical. And they also
they also kind of bumped up the exemptions and a
lot of people. I'm surprised that the first Trump law
(19:31):
is I think it was twenty nineteen, maybe it passed,
So it's been around a while, but I've been shocked
at how many people still don't realize if you're married,
you get a thirty one thousand, five hundred dollars exemption
from taxes. Yeah, I mean people are still thinking they
get twelve thousand.
Speaker 2 (19:47):
And they are, they really are.
Speaker 1 (19:49):
And they'll go, well, I don't have to itemize anymore.
And I'll go, that's because you get thirty one thousand
free up.
Speaker 3 (19:54):
Front, and I'd rather have that than try to itemize.
Speaker 1 (19:57):
And they they don't even know. It was the Trump
tax law, the original law. There's been adjusted for inflation,
stuff like that. And a single by the way, single
people fifteen thousand, seven fifty and head of household if
you're a single mom or dad with kids, twenty three
thousand and six five yees not taxable.
Speaker 3 (20:12):
And if you're over sixty five, remember retired couples could
have nearly forty seven thousand dollars in total deductions. Forty
seven thousand dollars. You don't have to pay taxes on
the first forty seven thousand dollars you owe. You are
the first forty seven thousand dollars of income you make.
That is huge. That's tax free income. At fifty thousand dollars.
Speaker 1 (20:32):
You're saving eight nine thousand MILLI years.
Speaker 2 (20:34):
Don't sit there and say this only helps the wealthy. Yeah,
because it is not the best best middle America bill
I've seen in forever. Because I read an article recently
that said the Biden tax situation was really hurting middle America,
and it was. So this is the best situation I've
seen in a long time.
Speaker 1 (20:54):
It really is. And speaking of middle class and working,
the working which is by the way we're working, people
say that, like, you know, like I'm here, I've worked
probably sixty hours a week for twenty five years or so.
Now I'm down. I don't work on Fridays unless we
(21:15):
go to the beach and meet clients down there. But
when I added it up the other day, I'm working.
I'm still working ten hours a day, four days a week,
plus Fridays sometimes, and so I'm a working person even
though I'm not working. Yeah.
Speaker 3 (21:33):
So this working class has this antiquated connotation of somebody
like with a pick axe over their back, going into
the mines.
Speaker 1 (21:40):
By the sweat of your brow, But sometimes it's a
by the sweat of your brain, right, and we're going
to take a break. We're at halftime. We're going to
come back and talk a little more about the big
Beautiful Bill and how it affects you personally. Stay tuned,
welcome back to the second half of the Great Hicks Show.
And if you want to call us and set up
an appointment by a person in person or by phone
one nine eight five six nineteen sixty eight is that
(22:03):
number you can call today to leave a voicemail, we'll
meet you. We get a lot of calls on Saturday
and Sunday because people hear our show. We talk about
the number in boom, they call in right away, So
don't be bashful. Call in, or you can call next
week and talk to a real, live human being. Nine
one nine eight five six nineteen sixty eight. And remember
(22:24):
our shows are recorded. You can go back. They're actually
archived on the radio station in Raleigh, one of sixty
one FM Talk. You can also go to our website
f rm NC that stands for a Financial Resource Management
North Carolina frm NC, and we have a nice website,
a lot of information with recent newsletters. But you also
(22:48):
have a little radio tab you can click on and
scroll down and the topics are listed for you to
help you find the show. Let's say you you want
to know how to invest in stocks, or you just
inherited money or unfortunately had a divorce. We have shows
on all that stuff. So in social security, we have
a show on sobid security bow mentioned, So go back
and look and listen to those shows. Our shows are informative,
(23:10):
but they're also highly educational. I can't say how many
times every month's clients will say, oh, I listened to
your show. So even our own clients listen to our
show just for information, right, And today we've got a
special show. It's on the big beautiful bill that just passed,
and we're trying to do the bullet points that affect
our clients the most and affect you listeners the most.
(23:32):
And there's so much of it. I mean, it's a
massive bill, but we do have a bullet point situation here,
and we're just making comments on a lot of the
stuff that we've brought up already, and then there's more.
So I'll kick off this a little bit with y'all.
Remember that President Trump made a couple of you know,
at first they sounded a little radical. I'm going to
(23:53):
get all the waiters and waitresses, you know, income with
no tips, I mean a tip income with no taxes.
And everybody went, what, Well, it actually came through in
the bill temporarily twenty five thousand of tip income. And
by the way, my wife Laurie tips everybody, the nail
polisher person, the hair lady said, and the veterinarian. I said,
(24:17):
is there anybody you don't tip besides me? And she
went no, So she's.
Speaker 3 (24:20):
Helping downstairs at the office. She better believe you.
Speaker 1 (24:23):
Yeah, she probably walks in and tips. Y'all.
Speaker 3 (24:25):
Overtime is change overtime?
Speaker 1 (24:27):
Yeah, So again, tax you know, people are gonna die.
I'm so sick of hearing that garbage. No, people aren't
going to die. The people who get tips are going
to make more money.
Speaker 3 (24:38):
And that's an above that's a below the line deduction.
That means you don't have to itemize. And so think
about it this way. If you're, like we said, over
the age of sixty five, and you're married and both
you and your spouse get that bonus deduction, your total
deductions are forty seven thousand dollars. Call it fifty thousand dollars.
If your husband works and makes fifty thousand dollars. Effectively,
that income is tax free. Maybe you have a side
(25:01):
job and you wait tables occasionally and you make twenty
five thousand dollars. Guess what, Basically the full seventy five
thousand dollars of income that y'all make you pay no taxes.
Speaker 2 (25:10):
Absolutely, So that doesn't help the middle America.
Speaker 3 (25:12):
These are the fact Why are people not excited about
this book when there's something this.
Speaker 2 (25:18):
The media, the media is hyping people are gonna do.
People are not gonna get food. I don't know where
in the heck that comes from, but that's not true.
Speaker 1 (25:27):
It comes from the bowels of the political party that's
pushing it.
Speaker 3 (25:30):
It's all good news.
Speaker 1 (25:31):
It is good news. Yeah. Yeah. Also overtime. Yeah, why
do you mention overtime and talk about the cars if
you're I mean there are patriots like I buy everything American. Well,
now you can buy an American car and borrow money
and not pay interest. Now, bo, you're younger than us.
But back in the days when we grew up, you
(25:52):
could write off interest, debt, credit cards, credit card credit
card interest, car loan interest, all that was right off. Yeah,
I forget what year is probably forty years ago they
changed it. So this is a little bit of a
back door. Yeah, go back to the good old days,
buy car and right off.
Speaker 3 (26:09):
The first only on American cars. Yeah, yes, Mercedes out
e everything.
Speaker 1 (26:13):
Else if they're as symbol here amy.
Speaker 3 (26:17):
Phrase like Hundai has got a big plant down in
South Carolina, so that might qualify that.
Speaker 1 (26:21):
Yeah, yeah, Mercedes has in Tennessee. I think, okay, but
it has to be fully assembled here, and so the
only the only car dealer, and and Ford uses this
on their ads. Now we're the only fully we do
eighty eight percent of our cars in America. I'm not
a forward person, but think about it if you're borrowing
money on the car.
Speaker 2 (26:40):
But Greg, there should be some things that help small
businesses too, like the qualified business what do you call it,
the QBI. So I think that's something that will help
businesses for sure, because there's a twenty percent QBI deduction
that was originally set to expire is now permanent.
Speaker 1 (26:58):
Yeah. Yeah, And I love the fact that in the bill,
you know, big, big, big businesses have just I mean
some of the businesses, some of the stocks we buy, y'all,
it's like like we've been buying periodically Mercedes when they
were down in Pfizer. You know those kind of companies, Nike,
they're they're they're when they're out of favor, and they
(27:19):
pay a great dividend. We we pluck those off the tree.
But when you look at their income, some of them,
their revenue is a billion a week. It's kind of
like our business, y'all, don't we don't we inflow about
a billion a week?
Speaker 3 (27:34):
Do you ever take me?
Speaker 1 (27:36):
I mean imagine so so Wanda, you're your points well taken.
About about seventy five percent of Americans work for smaller businesses,
so the bill is specifically targeting the little guys like
our company. We have six employees, we're considered small business,
so that so we get some exemptions on income that's
(27:58):
not taxed too hurt. And then if we let's say
we spend money on something big, it's deductible one hundred
percent of the first year. Those are huge things to
help because it remember, small businesses filter down to all
the employees. If you don't pass much in taxes, you
got more money for bonuses and different things like that.
So it becomes reality in a hurry.
Speaker 2 (28:20):
When you look at but if you're living on the government.
I'm not trying to diss anybody. You don't have the
big global picture of that. Because I know that big
businesses are small, but they need the tax breaks to
be able to pay employees. Well, I mean, you know,
I took some economics. I didn't necessarily, you know, make
great grades on some of it because it's very hard.
Speaker 1 (28:41):
Let's talk about your GPA one.
Speaker 2 (28:43):
But with the economics and the bonds and all, that
was a little bit difficult. But I did pass it.
Speaker 1 (28:48):
There you go.
Speaker 2 (28:49):
But what I'm saying is if you understand, and I
grew up in a small business family. My family ran
a fish market, so you know, they used us kids.
They had seven of them, so we worked laboriously. So
you know, I get the small business arena. And I
wish people would understand that when you're harping on these
tax breaks are for the wealthy. Will the big businesses
(29:10):
should get more tax breaks because they're paying people. And
Amazon you can bet it's paying people well, right.
Speaker 3 (29:16):
And the whole Like, Okay, Jeff Bezos, he just had
that huge wedding, Oh god, and he needs to pay
his fair share. We need to have a billionaire tax. Okay,
what do you want them to do? I want him
to dump his Amazon shares and crash Amazon, the stock
that so many people have made wealth in. Like, think
about the ripple effects. How many people does he employ?
How many livelihoods is he responsible for? It's just it's
(29:38):
outrageous the intention there is sometimes maybe okay, I get
where you're coming from, but let's think about the details.
And as soon as you turn a little bit more
than one percent of your brain on, you start to realize,
all right, maybe this is not the right thing. Speaking
of that in business deductions, one thing they're getting rid
of and putting more restrictions around are the clean energy
tax credits. Think about this. My wife has a tell
(30:01):
your I can you tell your right? I know you
do too, Wanda. There's I love everything about it except
one thing. There is a feature that you can turn
on and off that will turn your car off at
a stoplight and then turn it back on every time
you break. It turns the car off. And why does
it do that to quote, save gas, to save the planet. Well,
what does it cause? It causes those cars to break
(30:24):
more often than not when you're turning it off and
on and off and on and off and on. Why
did they do that in the first place for a
clean energy tax credit? Stupid rules my dishwasher. I had
the guy come to my house to repair my dishwasher,
and he came over and I was like, it's a whirlpool.
I thought these things were supposed to be incredibly reliable.
He goes, yeah, before twenty twenty two. Why because this
(30:46):
one has the clean energy thing where the top turns on,
then the bottom turns on, then the top turns on,
and it's a water conservation thing. He goes, it's the
dumbest thing ever, if you ask me. And they break
all the time because of the alternator in it. And
there's so many more examples of that, of these.
Speaker 2 (31:00):
Companies ropping them on there just to get it on
exactly exactly.
Speaker 3 (31:03):
These companies are having to bend over backwards to do
the quote clean energy thing and save the planet. Sure
we care about we care about our planet, obviously, but
let's be smart about how we protect it. Right. Glad
they're getting rid of those.
Speaker 2 (31:17):
Yeah, Section one seventy nine that applies to you. They
did increase that to two and a half million. In
case you want to spend the money.
Speaker 1 (31:24):
What are y'all asking for a new new office down? Well,
I will say this, guys, A lot of people back
back to something both said about, don't I was. I
was debating someone the other day about the billionaires. If
that's not fair, they should pay more in taxes. So
I just asked a simple question. I said, do you
have a computer anyway? Yeah? And I said, so, Steve Jobs,
(31:49):
do you have an Apple computer or do you have
a Microsoft? You know, do you use Microsoft? I said, Uh,
those guys were billionaires for a reason, but you use
their stuff all the time. So I'm gonna take away
your computer because you don't like them. You don't like them,
You're a hypocrite. You're a hypocrite. And so sometimes just
I'm not in your face too often, but sometimes I
(32:10):
get angry a family member it was, I'm going to
say who it was? Okay, uh but let me uh
bo you always laugh at me, But let me tell
you the reality. And this is important. Billionaires to get
a tax break, the top one percent of Americans paid
forty five point eight percent of the revenues to the
federal government. The top one percent ninety nine percent paid
(32:33):
the other half. Now here's the one that gets me
the most. The top fifty percent of American taxpayers paid
ninety seven point seven percent of all income revenue from taxes.
What does the bottom fifty percent pay two point one get.
They don't get a tax break because.
Speaker 3 (32:53):
They ain't paying tax taxes back.
Speaker 1 (32:55):
That's right, Okay, Well that we're going to take a break.
Hang on, Welcome back to the last segment of the
Greg Hicks Show. This show is interesting. We're talking about
the Big Beautiful Bill that just passed. And if you've
missed some of it, you can go back on the archives.
Just wait about three or four days from now and
you can find us on the radio station and Riley
one of six to one FM Talk and click on
(33:18):
their website and click on the Greg Hick Show button
and scroll down and listen to this show. And then
also you can go to our personal company website f
r M f r m NC dot com and scroll
over and click on the Greg Kickshow and go down.
Also has many many other topics archived. And by the way,
(33:38):
speaking of shows, originally we were going to jump into
a series of family shows, but we felt like the
Big Beautiful Bill had to be talked about today, so
we kind of bumped it up. But next next week
we're going to talk about some serious things the loss
of a spouse, followed by financial issues and marriage and
divorce issues. So we started the show talking about how
(34:02):
sometimes people share a lot of intimate personal things with
us because they trust us and they know it's confidential,
but it also helps us understand them emotionally. Why are
they making some of their decisions the way they do?
So we we do spend at least one month four
or more shows every year on the family because it's
critical everything you do financially affects your family. So we're
(34:26):
not going to ignore that, right, We're going to We
want you to listen to it, and so tune in
and we'll get into that. So, okay, guys were wrapping
up a little bit the Big Beautiful Bill show, and
I'm trying to think of other things that it might
because that's a big one explain with that stand.
Speaker 3 (34:47):
HSA is your Health Savings Account. Previously it was only
available to people that had high deductible plans, So that
basically means you have a cheaper monthly premium on your
healthcare plan, but you have to pay more out of pocket. Well,
now they've opened it up up to a lot of
other plans. They've also opened up what you can spend
that money on. You can now spend that money on therapy,
(35:07):
whether it's marriage or family counseling, life coaching. You can
spend that money on functional medicine, nutritional counseling, vitamins, some
long term care expenses. And they've increased what you can
put in every single year, so a family can put
in ten three hundred dollars per year and an individual
(35:28):
can put in fifty one fifty. There's a catch up
for people over the age of fifty five, they can
put in a bonus thousand. You can combine accounts now,
so if you have a husband and wife that both
had an HSA, well you can basically roll those together
now and just have one that Simplicity is huge, and
I tell clients that all the time. You know, over
complication does not equal good strategy. Over Complication is not diversification.
(35:52):
Let's get your stuff nice and tight for you and
also for the people that you pass your money on too.
You don't want to leave people a big mess. Simplification
is a big thing, a big piece of what we do,
and the HSA is a huge benefit. If you have
an HSA account of health savings account, it can be
monumental in your retirement planning for healthcare costs. And there
are strategies around using that HSA in an effective way.
(36:15):
So give us a call. If your advisor is not
talking to you about that kind of thing, which again
most advisors don't. They talk to you about the investment piece.
If anything that we're touching on today is kind of
tickling something in your mind and you think, all right,
I could benefit from talking to those guys. We think
so too. We'd love to meet you. Give us a call.
Nine one nine eight five six one nine six eight.
Speaker 2 (36:36):
The thing I like about the bill is the real estate.
I've had people in our area are realizing the impact
of five point forty going through. They're losing their farmland,
you know, their family homes. And Ricky and I are
able to see this, my husband, I are able to
see this every day when we're driving home. These big
(36:58):
beautiful lane that used to be just trees and a
farm or a silo or whatever or being they're cut down.
So and I've had people call because they want to
know how to save taxes on that situation. So there
are ten thirty one exchanges, and they've expanded this bill
(37:19):
to include more opportunity to allow you to do that better.
Speaker 1 (37:23):
And the opsone you're talking about shaving capital game, saving.
Speaker 2 (37:27):
Capital game, which yes, these people have virtually no cost
bases in these family farms and so, and then you've
got the government coming in and saying we'll offer you
this money around books and they'll go hire a professional
surveyor and all that, and the land is worth twice
as much. So and they're winning those cases, but they've
got to figure out a way to save taxes. So
(37:48):
the ten thirty one exchange, if you're being impacted, or
maybe you're at the age which I've had a couple
of calls on this too, where the people are at
seventy five eighty years old and they're like, I don't
want to say any more, how can I save taxes?
So you know, those are huge.
Speaker 3 (38:04):
Ten thirty one exchanges are great, but remember with ten
thirty one exchanges, you've got to put the full value
in there. And so let's say your farm sales for
five million dollars, you got to take that full five
million dollars and put it into a ten thirty one.
You can take a portion of it, but then you're
paying taxes on the remainder. With a qualified opportunity zone,
you can shave off just the gain. So let's just
(38:25):
say your basis in that property is two million bucks,
and then it's worth five million. Three million. Of those
five million that's capital gain. You take that three million,
put it into an opportunity zone. It defers the taxes
on that and effectively you're getting rid of the taxes.
Call us to figure out exactly how that works. But
you take three million dollars, you put it into that investment,
it'll pay you income down the road. You'll get that
(38:47):
money out. Well in the meantime, you take the two
million dollars of cost basis that's untaxable, and you have
that money to spend. And so there's all these different
avenues that you can take. Some might be right, some
might be better for you. So give us a call so
that we can help you navigate that nine one nine
eight five six one nine six eight. Because one thing
that we hate is paying too much to the government
(39:08):
and taxes. Another thing that we hate is the government
coming in and taking your property. Unfortunately, too many people
are doing both those things right now, so get some
guidance nine one nine eight five six one nine six.
Speaker 2 (39:19):
Eight and also on the ten thirty one. You know,
with the situation, we work with a company that has
properties already, so you don't have to identify, you know,
or fine proper. That might break down in the process
because when you identify and then forty five days later
that property might be gone. But these people have property.
Speaker 1 (39:40):
All the time in a pipeline.
Speaker 2 (39:42):
And a pipeline and so getting monthly income and so
forth and so on. So don't sit there and try
to figure out what to do. Because some of these
families I mentioned in our area they never dealt with
anything like this, so they need help. But anyway, give
us a call at nine one nine a five six
nineteen sixty eight and let us navigate. This situation is
(40:02):
very very important for you and.
Speaker 1 (40:04):
That you know, and what we just talked about is
capital gains. That's different than income tax, and a lot
of people don't think about it. They'll just sell, like
they'll sell their beach house because they bought it for
one hundred and fifty and that it's worth four fifty
and they'll sell it and they'll say, well, it's a
second residence, so I don't have to pay capital games. Wrong.
(40:26):
By the way, you have to pay capital gains on
your own house, but each person gets two hundred and
fifty thousand exempted. So if you moved to Riley and
bought a house for three hundred and now it's worth
a million, and you sell it and you're a couple,
you're gonna have seven hundred thousand dollars of capital gains.
You can only write off five hundred of it. Too bad,
you're gonna have to pay tax. But on the second
(40:46):
home it's all cap gain. So, as Bow and Wind
have said, there are all kinds of great solutions. You
don't have to do them. You can just pay the
government and say I'm going to support the government more
because they spend my money so well. But we're of
the opinion, why don't you defer those games or save
cap gains because that's money out of your pocket and
(41:07):
you deserve to keep all of it you can. It's
all legal, and we're not trying to scam anybody at all.
These are legal things, and they're in the tax bill,
the bill that just got approved again. And by the
way of opportunity zones didn't even exist before the first
Trump law. That was something that Tim Scott, Senator of
South Carolina, who was a black senator who grew up
in poverty and learned how to work his way up
(41:30):
to the top. Tippy topic and President Trump, So anyway,
don't listen. We started our show saying, don't listen to
all the garbage on the media about this tax bill.
Ninety percent of it is just lying in distortion. Get
the facts, and if you need to go back and
listen to our show again, I would highly encourage you
to do that. Get the facts so that you know
(41:52):
what's going on. So call us at nine one, nine, eight, five, six,
nineteen sixty eight.
Speaker 3 (41:57):
We also mentioned that it's start of our show, how
well there's increasing change to the tax law and just
everything that has to do with your financial life. The
rules are always changing, it's always a moving target, and
it's so critical for you to have an investment partner
or a financial partner, a team behind you that is
(42:19):
keeping up with those changes, and a team that not
only Greg, Wanda and myself work together and try to
stay up to date on all these things, but also
work with local CPAs and local estate planners and other
people that are important to your financial success. So if
you're not working with a group, or you don't have
the confidence in your current situation that you're keeping up
(42:42):
with all this and that you're navigating all this properly,
get a second opinion. Second opinion is either going to
validate what you're doing now and then you can go
back and everything's hunky dory, or we find some areas
where we can improve your situation. We find some areas
for tax savings, decreased risk, whatever it is. Whatever it is,
(43:03):
use this as a catalyst moment to get a second opinion.
We'd love to meet you. Nine one nine, eight five
six eight.
Speaker 2 (43:12):
I met with a couple recently that had been to
three different firms and gotten proposals on their on the
retirement situation, and uh, and I met with him. I
was a fourth and and I met back with him
to give him my proposal. And he went and got
his three books that were given to him by the
(43:34):
other firms. I said, here, take this home and look
at it. He put them in front of me, and
he said, yours is the only one I've understood so far,
and I had one. I had one had two pages,
a cover page with his objectives and my recommendations and
the proposal. And he said, I don't know what these
And I looked at those and I'm like, I don't
(43:54):
know how in the world you know what it's saying.
Speaker 1 (43:56):
He said, I didn't, so too much information, too much.
Speaker 2 (43:59):
Information and sending at home for him to look over
and call them back. That was just unbelievable to me.
And they were highly reputable firms. I won't give any names.
Speaker 3 (44:09):
But so Munications talking about earlier. That's what we do.
It's got to be digestible for you. You have to understand
what we're doing, because if you don't understand it, you
can't be comfortable with it. And this is a relationship.
We want you to be comfortable. We want you to
be happy. We want you to have that warm and
fuzzy feel And so call us again nine one nine
eighty five six one nine six eight.
Speaker 1 (44:29):
And with that, remember the next three shows are going
to be about the family and how money affects your
family life and decision making and so forth. And remember this,
it's your money, it's your future. Don't blow it.
Speaker 3 (44:41):
Advisory services through Capital Investment Advisory Services LLC. Security is
offered through Capital Investment Group, bing Remember, Finra and SIPIC
one thousand et six Forks Road, Raleigh, North Carolina, nine
one nine eight one twenty three seventy. HOUST performance is
not indicative of future results
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