Episode 20231021 - Estate Planning and Tax Planning

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Episode Transcript

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All these years you've saved up planningfor a secure retirement, but if you're
not careful, it will be theirs that's living it up when you retire
by taxing your hard earned money.Welcome to the Maggie Tax and Financial Hour
with Robert and Chris Maggie of MaggieTax Advisory and Financial Group. With over
thirty years of combined experience in taxsavings, income planning, and investment opportunities,

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Robert and Chris share advice and taxplanning strategies designed to protect your retirement
nest egg from Uncle Sam. Yourquestions and comments are welcome during today's program
by calling eight one three three twotwo twenty five twenty. That's eight one
three three two two twenty five twenty, or visit Maggie Tax dot com.
That's Maggi tax dot com and nowyour host for the Maggie Tax Finance Angelauer

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on nine to seventy WFLA. Robertand Chris Maggie, Welcome everyone, and
thanks for joining us today. Myname is Robert Maggie and I'm here with
Chris Maggie. Don't forget go toour website, Maggie Tax dot com and
look for seminars and enroll in oneof our state planning seminars. Also,
we have all the dates there.Visit our website Maggie Tax. Also for
the retirement tax bill, this isso important. We're getting a lot of

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calls on this. See what yourretirement tax bill is going to be.
If you have an IRA four ohone K four oh three b TSP,
I don't care if it what qualifiedplan. Please go to the website.
Many of you have and you havethe report, and we're getting appointments because
now you're starting to understand that whenthe Trump tax cuts expire, you need
to see someone and reduce your taxes. Also, every Sunday at ten thirty

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watch the Maggie Tax and Financial Showand then right after that we're on the
radio again. So we have alot to offer, but be sure to
visit our website Maggie Tax dot com. And Chris, we have a lot
to talk about. We're going totalk about a state planning, but we
also have some other topics that youwant to discuss. And that's it.
So welcome everyone, Thank you somuch for tuning into the show. And
each and every week we talk aboutgetting a plan. We call it the

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Maggie Plan. It's tax planning,it's income planning, it's social security maximization
planning, it's investment planning, andit's also a state planning. And if
you are looking for an advisor wholooks at everything, not just your investments,
but also the tax applications and theincome plan and how everything's going to
pass, then you need to setan apployment and meet with us. So
pick up the phone, schedule timeto meet with us. Visit our website

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at Maggie Tax dot com. That'sm A g GI ta X dot com.
So let's jump into today's show becauseas always, we have a lot
to talk about because many people outthere, just like you listening today,
have questions and you just don't knowwhere to go. But it's very simple.
Just pick up the phone, scheduletime to meet with us. Eight
three three Maggie Tax. So let'sdiscuss one of the topics that we have

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at our three and one seminar.We talk about social security, we talk
about tax planning, and today let'sdiscuss what a state planning documents that you
need in the state of Florida andthe state planning or enhanced plan because some
people call it applies to all ofyou that's listening today. So register today
at Maggie tax dot com, clickon seminars and all the locations and times
are listed. And we do theseseminars at libraries because it's about education and

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a library is a great place tolearn. So we have a lot of
people that have been common. Wehave fifty sixty people attend. And the
funny thing about this, Chris,is that when we start talking about a
state planning wills and trust, manypeople just don't know the difference between what
a will does, what a trustdoes, what something's called a quit claimdeed
or a ladybird deed is and theyjust totally confused. So another reason to

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attend is we will give all ofyou a free copy of our first book
that we wrote. We want toeducate you. Stop funding Uncle Sam's retirement.
Get a plan that's simple and easyto understand. We call it the
Maggie Plan. It's a tax plan, it's an income plan. It's also
an investment plan. And a littlebit later in the show, we're going
to talk about a client that camein and all of this applied to him
because he came to the seminar.So, Chris, you know, this

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is the biggest problem that I seewith people. They don't understand there's a
lot of commotion out there, andyou just don't understand what the heck is
going on. Well, that's justit. You know, there's a lot
to it. We had met witha client last week and they came in
and said, you know, they'relosing money, or they came in and
said, well what can I dowith this market? Well, what's the
rest of the story. Well,they had income planning needs that they had
to attend to. They had tomake sure that they have the income coming

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in every month when they retire.How are they going to get it?
Yeah, the investments play a bigrole in it, because what if you
have market risk and the market goesdown twenty thirty percent and guess what,
you lose income? What about theestate planned? They had no will,
they had no power of attorney,they had no living trust. They wanted
to stay in the family, justdidn't know how to go about doing it.
So they had questions about how dowe file for Social Security? When's

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the best time to do it.These are things that we do each and
every day that you need to lookinto when you talk about your financial plan
and there are many advisors out there, and a lot of them are on
the retail side. They just sellyou something. But on the institutional side,
when you work with the fiduciary whounderstands complete planning like we do,
that's where you want to meet.So we're talking about today a lot of
different things, but you know,we're going to discuss what documents are required

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in the state of Florida for you, because if you want to keep your
money in your pocket and to yourfamily, some of the things have to
happen for you to accomplass that goal. We also are going to give everybody
a free copy of the Social Securitybrochure because what we found out at these
seminars, a lot of you don'tunderstand to leave it earning the earnings test.
They don't understand when you can takesocial Security, why you should take

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it at a different date, thetax are This is all at our seminar,
and again we give this brochure out, so let's discuss what documents are
required in Florida. There's a handfulof things that need to be sorted out
before you can set things in stoneto ensure that everything goes smoothly, but
it can be a lot for asingle person to keep track of, and
not everyone may understand the terminology involvedand what's happening, Chris, that we

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see with widows and widowers they don'tunderstand how to set their a state up
with beneficiaries with wills or trust becausethey just hear it from their neighbor or
their friend or you know, youdon't need this or you don't have a
lot of money, and that's nottrue. And that's why Maggie taxes here
to let you know what documents areneeded for estate planning and an explanation of

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what they are. And we workwith a national group of attorneys to get
all the documents you need. Sothis is important because if you work with
an attorney, sometimes it takes alot of time. Sometimes there's a lot
more expensive. That's why we encourageyou to come. So the question is,
Chris, what is a state planning? Well, that's it. Well
here's a brief summary. You know, things can happen that may put us

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in a situation where we're unable tocommunicate our intentions when it comes to our
assets or to our own well being, and whether it be from a sudden
disability and an ability to speak freely, or the act of passing. There
are a number of reasons that couldcause you to relinquish control you're saying things,
and estate planning prepares you for thoseoutcomes by setting your wishes in place

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should any of these things occur.So estate planning or enhance planning involves a
few types of documentation to ensure theresults that you desire you and your family,
and each of the following papers coversyour rights to their corresponding fields and
you can enjoy peace of mind bygetting it all down in writing. And

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that's why we encourage you to meetwith us. We have attorneys that work
with us. Not only do wedo this state planning and the income planning
and the investment planning, but theestate planning is so important. So just
keep in mind that it's important toavoid common estate planning mistakes since you won't
be able to fix them after it'stoo late. So let's talk about some
of the documents. Well, thefirst thing I want to talk about is
a last will and testament, andthis is often seen as one of the

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most important documents that you can sign. Your last will and testament will make
sure that your assets they go tothe people that you want them to go
to as stated, And this canalso be used to designate specific people to
be the guardian of your mind orchildren. Without this document, Chris,
there's no guarantee that your wishes willbe fulfilled after you pass. The bottom

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line, with a will, it'sjust that it tells the court where you
want to go, but it stillhas to be proven and that goes through
approbate. That's it. So that'sone of the documents that you just should
be aware of. What about aliving trust? And a lot of people
hear about a trust and they reallydon't know what it is. And many
people ask the question do I needa trust or do I just need a

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will? Well, a living trustis this is where how you can make
sure that your possessions will be distributedhow you wish. It speaks from the
grave, So you can personally choosesomeone you know to be the trust you
to handle all of your assets foryou after you pass, to give you
a greater peace of mind. Andyou're also able to change who you designate
who you want these accounts to goto. And you also can designate who

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you want your trustee to be asmany times you like, for as long
as you live. And that's thedifference between a will and a trust.
So when you come to the seminar, or you come and meet with us,
we'll go and explain to both ofthese. But now you starts a
little bit more serious. What aboutpower of attorney And if you are ever
in a situation where you are unableto make important decisions yourself concerning your or

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your financial matters and other assets,of power of attorney they call it a
POA can make those decisions on yourbehalf. Of course, you would want
someone that you can absolutely trust tohandle such important matters. So this document
will establish who will be your POAshould you ever need one. And Chris,
the important thing about that some banksdon't recognize a power of attorney that
you get drawn up. They requireyou to draw up your own, and

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a lot of people don't know that. So that's important when you have you
know, and many of you listeningtoday maybe someone passed away that you know
and you went through probate, andwhat we're telling you, if you don't
have these documents, it just doesn'thelp you get through the process. The
last thing is healthcare directors. Settingup your healthcare directive is almost like having
a power of attorney, but thisone's for medical concerns, and you can

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state what types of treatment you doand do not want. And this is
important. So what surgeries you approveof, whether or not you would like
to donate your organs, and soon. Since this concern is something as
personal as your own body, it'sso important to have such matters clearly written.
So this that's why we encourage youto talk about a will and a
trust. If your advisor is nottalking about it, and Chris and we

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see this all the time. Theydon't talk about passing it on after they
pass it's all about you know,the stock, the bond, the interest
rate, and there's so much turmoilright now, you know this, it's
not the answer, correct, that'sexactly right. I mean, this is
your assets. So it doesn't matterwhat your account has in your checking account
or savings account. Are they titledthe right way? What about your retirement
accounts, your four one K orfor one k's. You know you might

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have multiple retirement plans at different locationsthat you're not working there anymore. Are
they titled the Right Way. Whatdo you want your accounts to do for
you? This is a loaded question, but also it's important because this is
your money. So pick up thephone, schedule time to meet with us.
If you need an estate plan weeknhelp. If you're looking for income
planning and investment planning, and solsecurity planning and medicare planning and want to

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encompass everything together, WEE can help. So pick up the phone A three
to three Maggie Tax, visit ourwebsite at maggietax dot com, and don't
forget Every Sunday on ABC TV,tune in for that a half an hour
show with the Maggie Tax and FinancialShow. There's so much information right there
at your fingertips Maggie Tax dot comeight three three Maggie Tax. Stop planning
for Uncle Sam's retirement and start planningfor your retirement. As we return to

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the Maggie Tax and Financial Hour withyour host father and son Robert and Chris.
Maggie. For additional information on howyou can create a tax free retirement,
visit Maggie tax dot com. That'sMaggi tax dot com or call eight
one three three two two twenty fivetwenty. That's eight one, three,

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three two two twenty five twenty.Now your host for the Maggie Tax and
Financial Hour, father and son fromMaggie Tax Advisory and Financial Group, Robert
and Chris Maggie. Welcome back,everyone, and thanks for joining us.
My name is Robert Maggie and I'mhere with my son Chris Maggie, and
you're listening to the Maggie Tax andFinancial Show today. On this segment,
I want to talk about a clientthat we met, and we meet many

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of our clients because a lot ofyou are listening to the words that we're
saying you are confused, your advisoris not helping you. But this is
a gentleman and his wife that camein and they really they had a million
dollars, to be honest with you, and they came in and the question
we asked them is what brought themin? And they said, well,
guys, we don't know if wecan retire. We're scared, we're not

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sure if we're gonna have enough money. So his biggest question was does he
have enough money to live on?He's sixty two, he's not taking solid
security, but he can I'm goingto have Chris talk about that in a
minute. He can work for anotherthree years before he takes some Social Security
and no one shows him strategies andconcepts. And his conversation to us,
he said that he's taking more riskthan the benchmark, and he didn't understand

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what that meant. So Chris,Ima'll let you talk about what we did
in terms of the social Security report, in terms of comparing what he has
and showing him the difference that hedid not understand from his if you will,
transactional advisor as our institutional I wantyou to kind of go through that
because this was a very interesting coupleand it was an AHA moment for them

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because when they got done, theysat back and they said, Wow,
we didn't know that we could dothis. Well, that's just it.
You know, these are live examplesthat we see each and every day.
And the thing about it was isthey both came in and they worked.
They saved. They said, we'resavers. We did everything right. We
just don't know how to put thisall together. And that's common. That's
why they come in to meet withus because they want to have an income

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plan, they want to have aninvestment plan, they want to have an
estate plan, they want to makesure that they have a tax plan,
they want to make sure that everything'sworking together, and they and they made
a great point, they said,we feel like some of our investments are
working against us. And they justdidn't know what to do. So we
did an evaluation. We put togethera plan. As my dad mentioned,
we looked at their prior year accounts. We analyzed the current risk and what

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they're currently taking, and also thefees and different funds, and we found
out that they're invested in mutual funds. There's no active management. They're taking
a lot of risk. When wedid our risk tolerance, they were taking
actually they were an aggressive portfolio rightnow where they where they currently are at.
But really when we did our risktolerance, they're more of a balanced
portfolio. That's what they really want. They want to be in the middle.

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But they're taking more risk than whatthey really need to take. And
this is important because many people outthere have no idea what type of risk
you're taking with your investments. Youknow, might meet with an advisor five
years ago or ten years ago,and your risk level was very aggressive,
but now what you're older and timeshave changed and maybe your risk tolerance has
gone down. Maybe it's more ofa balanced portfolio or conservative method of growing

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your money. But when it comesdown to it, they didn't know.
So we analyzed that for them thefirst thing we did, and it was
not how moment, because they said, no, one's really looking at this,
and we're approaching retirement and the market'svolatile and they don't want to go
down with it. So that wasa big question that they need to answer,
and we helped them out. Oneother thing that we noticed, which
was very important when we did thecomparison. She had an Ira, she

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had a roth Ira. He hadan Ira. He had a roth Ira.
And the positions in it, Chrisand you can talk about this in
a minute, they were identical.They were the same positions. There was
no management there, there was nodiversification. Ninety three percent of his money
was at risk. And when wetalk about red money green money, when
we showed him that in the beginning, he said, yeah, that's bad.

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Yeah, of course it's bad.And he has market risk and he's
going to and he said to us, you know, back in two thousand
and two and in two thousand andeight he lost money and Chris asked him
the question and looked him out ofthe eye and said, how did that
make you feel? And his answerwas, I'm sick about it. And
he said they lost so much moneythat he's sick about it. And Chris

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said, well, what are yougoing to do about it? And then
we asked the wife the same questionand she had less risk than he did.
Now, granted, you know whenyou do a risk tolerance, the
risk tolarance is different, and that'sokay, but Chris, it was identical.
And ninety three percent of his moneywas at risk in an account that
lost money that he's trying to preservefor retirement. Well, that's just SAIDs.
He made a couple of good pointshere. They've been through nine to

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eleven, they've been through two thousandand eight with the housing market crash,
they've been through COVID. Obviously itwas a quick bounce back, so they're
okay, but I guess what nowit's on the other side and they don't
want to go through this nearing retirement. So he's sick about it. But
that's what we're talking about here,and we showed him and you made a
great point when we analyzed their fourdifferent accounts, current accounts. They had

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the same positions in every one ofthose accounts. There's no diversification, there's
no active management. And that's whythey are here and meeting with us.
So when they came in to meetwith us, they said, after we
got done with the evaluation, that'swhat we were looking for. Now,
how do we make this better sowe can accomplish our retirement goals. So
here's the biggest question that all ofyou and even they led to. How

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much money do you need per monthif you retire today? The question is
how much do you need to goto that mailbox today? And Chris looked
at it, We looked at it. I think it was four thousand and
when Chris ran the social Security reportand his pension report, he could net
seventy five hundred more than he's making. Now, Chris, how did that
make him feel? Was he surprisedor what? Well, that's just said.
So my dad mentioned they have amillion dollars well just from their social

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Security and their social Security income andtheir pension income alone will be three thousand
dollars more a month than they actuallyneed without touching their million dollar investment.
So that was the question, now, what do you want your million dollars
to do for you? And theybasically said, well, we don't want
to lose it. We want tokeep it. We want to keep it
because if inflation happens, we wantto be able to tap into more of
it. We want to make surethat we leave it to our kids.

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We want to do a combination ofall that good stuff. And they said
that we want to eliminate or possiblyreduce the market risk. So that's what
we did. We followed the income. We solve for the income. The
income was there. They've guaranteed incomein the most tax efficient way. I
ran a tax analyst to show themand guess what, they're not paying a
lot in taxes at all. Thatwas great. So it was really cool
to see that the amount of incomethey're getting, and because of the way

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Social Security is taxed, they're goingto be a low tax bracket and have
a huge amount of income, morethan they actually need in retirement. So
the income was taken care of.Now we talked about the investments, and
what we did was we allocated somebodyto green money, somebody to what we
call yellow money, where we haveactive management in the market but also we
show them that there's a purpose witheverything that they have. It's not just
about piles of money. It's aboutbuckets of money with a purpose. Do

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you want that bucket of money tonot go down, Yes, we can
make that happen. Do you wantsome fluctuation with that bucket? Yes,
we can manage that portfolio and dosomething with it. With indifferent portfolios that
we can manage, these are thingswe're talking about. So we put together
not only an income plan, aninvestment plan, and then we talk about
the estate planning. All these accountsthat they have will avoid probate and stay

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in the family, and that's whatthey wanted. So, as my dad
mentioned before, they sat back andthey said, oh my gosh, now
we have a plan. Now wehave something to be excited about, and
you can too. So pick upthe phone. Schedule time to meet with
us. Eight three three Maggie Tax. Visit our website at Maggie tax dot
com. There's so much information ratethere at your fingertips eight three three Maggie
Tax. Schedule unappointment today. Eightthree three Maggie Tax. Stop planning for

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Uncle Sam's retirement and start planning foryour retirement. As we return to the
Maggie Tax and Financial Hour with yourhost father and son, Robert and Chris
Maggie. For additional information on howyou can create a tax free retirement,
visit Maggie Tax dot com. That'sma Ggi tax dot com or call eight
one three three two two twenty fivetwenty. That's eight one three three two

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two twenty five twenty now your hostfor the Maggie Tax and Financial Hour,
Father and son from Maggie Tax Advisoryand Financial Group, Robert and Chris Maggie.
Thanks for tuning into the Maggie Taxand Financial Show. Welcome back everyone.
I'm Chris Maggie and uh, there'sa lot going on in today's environment.
We all know a lot of peopleare scared. Some people really just

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don't know what to do, andthat's why they need to seek advice.
Advice is so important. You know, we're in a yoyo economy. You're
on your own, but you're reallynot if you work with a team who
has a holistic view to help you. In a Magi Tax Advisory and Financial
Group, we do tax planning,We take a tax approach and everything we
do we talk about tax free buckets. We have income planning, we do

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investment planning. There's a lot thatwe do with state planning to help you.
So pick up the phone, scheduletime to meet with us. Eight
three three Maggie. Tax and intoday's volatile political climate, I mean,
two new risks are so important thanever before. And those two risks to
be aware of are closely aligned.Dad, Let's talk about the two risks
that people need to understand what's outthere. Sure. The first is tax

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risk, and tax risk is simplythe risk that your taxes will not be
significantly lower in retirement than they aretoday. And that's pretty much what people
think. Okay, how exposed areyou to tax risk depends on how much
of your investments or your in retirementassets are in tax deferred vehicles. So
think about it for a minute.Most of you have four O one k's

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or IRA's like many of you do, those are tax deferred, which means
you were able to save in thoseaccounts, defer the taxes, you got
a tax break. But the answeris all or most of this is taxable.
If that is your answer, thenit could be you could be faced
with a big and I'll say itagain, a big tax bill in retirement
if your taxes don't go down.So let's just talk about that for a

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second. Because in three years thetax is going to be raised by three
percent, maybe more, we don'tknow. So have you thought about that
and what it's going to do toyour retirement when you're getting when you're planning
to retire. Well, that's justsaid. I mean, how big a
tax bill might you face? Youtalk about it now, think about it
now, and if your current advisoris not talking about it, you need
to pick up the phone and scheduletime to meet with us. Because this

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is a big deal. Your biggestexpense is taxes. It's going to be
big, especially retirement when you needthose funds. What you could do is
you can request an after tax statement. And what I mean by that is
if you have a formal k andIRA, you know, think about it.
Say it's five hundred thousand, Sayit's a million dollars, use even
numbers. Say it's a million dollars. Well you don't have a million dollar

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IRA. Yeah you did a greatjob of accumulating money, but guess what
it's not all a million is yours. So there's an after tax statement.
That we need to generate to showyou really what is really yours because Uncle
Sam's gonna get paid first. Andthat's why when you keep deferring money and
you keep putting money in these accounts, then guess what you're facing an unknown

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question mark tax rate in the future. And that's what's scary, because we're
all going to face that if youhave these iras and form one ks.
But let's be on the other sideof that. Well, we can eliminate
Uncle Sam. So give us acall, pick up the phone eight three
to three, Maggie Tax, requestthe after tax statement and to find out
really how big your tax bill willbe, and then with that you can

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make and do some strategic planning toreduce that tax. We do it for
a lot of clients. So,like Chris said, pick up the phone
eight one three nine zero nine zerozero two two, visit our website,
Maggie tax dot com, and let'sget together. So the second risk that
we're going to talk about is onethat a lot of people don't talk about.
It's called legislative risk. And Ibet many of you never heard of

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legislative risk. So let me explainwhat that is. Because legislative risk is
the risk that Washington change is therules. And remember Congress wrote the rules
in pencil, and you know Congresscan do what they want. They can
change it when they want, andwhen they change it, they're going to
change it to you know, obviouslybenefit them and not benefit you. So

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be careful of that because those changeswill negatively impact your retirement income. And
Chris, we've seen this time andtime again when people come in they don't
understand what their tax is going tobe. We run the income plan,
We've show them what they're going toget, and then all of a sudden
they go, well what about theIRA and the four oh one K?
Well what about it? What aboutit? You're going to pay tax when

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you take that money out because it'sgoing to be added to your income.
Am I right or wrong? Absolutely? And that's where people really just don't
know because they wait the last minuteto do planning. That's why it's so
important now to pick up the phone, schedule time, let's get together.
We have three offices in the TampaBay area we can help you. Let's
sit down, have that conversation todayso you can feel good about your future

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and your retirement years knowing how muchyou're going to pay a tax and what
you're going to keep. We sawa powerful example of legislative risk back in
September as House Democrats unveiled the threepoint five trillion dollars spending bill that made
significant changes to how iras and Formone k's and even WROTH accounts. And
you know, now's the time toreally understand what you have. You know

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a lot of people have statements outthere, they have these accounts that they
get, They get statements every monthor maybe every quarter, and they really
don't know what's taxable or what's taxfree. I mean, now's the time,
especially if you have iras and Formone k's, they have a big
bullseye on them. Government looks todo what raise new tax revenue to fund
runway federal spending, and this iswhat's happening. So now is the time

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to be in controls as opposed tobeing controlled by what they're gonna do.
And one thing that Jeff to understandis financial professionals, it's up to us
to help you understand this. Andthat's why we do the show. That's
why we talk about this, that'swhy we educate you that's why we wrote
books on this because we want youto learn, you know, and prepare

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for it, because you don't wantto be, you know, with a
cold shot to the head and allof a sudden you don't know what it
is. So at Maggie Tax Advisory, we can help you hedge against tax
and legislative risk by using a productwe use Cause Index, Universal Life or
maybe a Roth account because this istax free money. And one thing that's
really important. We do bucket planningand I'll repeat it, bucket planning.

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And if your advisor is not doingbucket planning, then you need to sit
down with us and let us explainwhat that means to you, because maybe
you can do a combination of allthree. Maybe you're rough maybe an indiction,
universal life and maybe bucket planning.And you've done it many times for
clients where we put some in asafe bucket for income, now put some
for you know, future income,and then later on and then maybe if

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they want to put a little bitin the market, they can, but
protect the majority of the money becauseyou need income and tax risk is what
you're talking about, absolutely, andthat's why we have now money, later
money and also never money. Sothink about this. We talk about bucket
planning. When you come to meetwith us, we're going to educate you,
we're going to help you. We'regoing to discover what your goals are
and also how much income you needin retirement. You know, this is

(26:37):
your money. You need to makesure that you put this together the right
way. So pick up the phone, schedule time to meet with us.
Eight three to three MAGI tax.That's eight three to three magi tax.
Some things you need to look outfor if you have an IRA or four
oh one K and it's called aten percent penalty, but there are exceptions.
We want to talk about this becausewe get this question all the time.
And for IRA owners and retirement planparticipants who are under the age of

(27:00):
fifty nine and a half, takinga distribution from a retirement account is typically
off limits. The distribution will mostlikely be taxable, and there was a
good chance that a ten percent penaltywill also apply. And sometimes life gets
in the way and what drole needsto be made and what I mean by
that, like with COVID, andsometimes you need money for something. Maybe

(27:21):
you lost your job out there andyou've got to take it out but be
aware there's a ten percent IRS penaltyif you're under the age of fifty nine
and a half. And that's justsaid, and a lot of people aren't
really not aware of that. Andthen think about it, if you need
to pay thirty thousand, well there'sa ten percent penalty for early distribution.
That's three thousand dollars plus got topay the tax on those funds. So

(27:41):
a lot of people aren't really educatedon how to take or pull money out
of these retirement accounts. And atMAGI Tax Advisory and Financial Group, we
understand iras, we understand the taxcode, we understand what needs to be
done and how you need to handlethese accounts. Some of the exceptions they
do apply to iras, just soyou know, my dad mentioned COVID,

(28:04):
but that wasn't a reason why peoplecould avoid the ten percent penalty. Some
apply only to plans and some applyalso to the ira as well, but
exceptions to both iras and other plans, including step iras and simple iras to
avoid the ten percent penalty are prettymuch a couple of these where if you

(28:26):
die, you know death, thenthere's no ten percent early distribution penalty if
you're under age fifty nine and ahalf, if you're disabled, you can
avoid the ten percent early distribution penalty, or if you do what they call
seventy two T. It's a taxcode that you can use. It's substantially
equal periodic payment. So if someoneis needing income before age fifty nine and
a half, there are tax codesthat you can use, like at seventy

(28:48):
two T to avoid the ten percentearly distribution penalty. So if this is
something that you're looking to do,definitely pick up the phone. Let's have
a conversation, and let's get togetherand put a plan together for you.
You. Some other exemptions are medicalexpenses if they exceed seven point five percent
of your just the gross income,if you have an IRS levy active reservists

(29:10):
you know, even birth or adoption, so some of these avoid ten percent
early distribution penalty. But if youhave iras and formal case, be very
cautious in regarding what you can doand how you take a distribution from these
accounts. And the way we findthe shat is when you come in by
tax time and we see that becausesometimes you don't think about it, but
always ask your plan participant what theexception is. Before you take it out.

(29:33):
Higher education expenses, first time homebuyer, that's a big one.
Health insurance if you're unemployed because thingshave changed, you know, like life
events happen, maybe you lost yourjob. And exceptions applied to plans only,
and they exclude set and simple irasif you're age fifty five, if
your age fifty for public safety employees, section four to fifty seven government plans,

(29:56):
divorce they told quadro qualified domestic relationorder, phased retirement distributions from federal
plans. Why are we talking aboutthis because this is where people Chris make
mistakes. They think they know whatto do, they go ahead and do
it on their own, and theycall us when they get a letter from
IRS and they say, what happened? How come this got applied to me?

(30:17):
What do I do now? Andthat's just it. So these are
things we're talking about because we understandiras. You need to work with an
advisor who understands IRA planning, andat MAGI Tax Advisory, that's what we
do. We do tax planning,InCom planning, retirement planning, investment planning,
that's what we specialize in, doinga complete plan for you. But
one of the things that we didn'tmention here. If you want to convert

(30:38):
before age fifty nine and a halffrom an IRA to a ROTH, well,
there is no ten percent early distributionpenalty. It doesn't apply. Bes
have to pay the tax. Sothat's why it's so important to meet with
the qualified advisor, meet with someonethat is going to go over the tax
side of this, the investment side, the future income. So pick up
the phone, schedule time to meetwith us eight three three Maggie Tax.

(31:00):
Visit our website at Maggie tax dotcom. There's so much information right there
at your fingertips, and now's thetime. Now's the time, especially in
the crucial environment that we're living in, to get a second opinion. Pick
up the phone, schedule time formany US eight three three Maggie Tax.
That's eight three to three Aggie Tax. Stop planning for Uncle Sam's retirement and
start planning for your retirement. Aswe return to the Maggie Tax and Financial

(31:23):
Hour with your host father and son, Robert and Chris. Maggie. For
additional information on how you can createa tax free retirement, visit Maggie tax
dot com. That's ma gg Itax dot com or call eight one three
three two two twenty five twenty.That's eight one three three two two twenty

(31:45):
five twenty now your host for theMaggie Tax and Financial Hour. Father and
son from Maggie Tax Advisory and FinancialGroup, Robert and Chris Maggie, Welcome
back to the Maggie Tax and FinancialShow. And each and every week we
have a show on TV every Sundayon ABCTV for the Meggie Tax and Financial
Show at ten thirty am on ABC, So make sure you tune in and

(32:07):
don't forget visit our website. Wetalk about the RTB oh gosh, the
retirement time pump. You have tomake sure if you have an IRA A
four one k at TSP those accountsare what we call infected with taxes.
So what is your retirement tax billgoing to be? How much do you
have to pay to Uncle Sam?Do you know? Is your advisor talking

(32:27):
to you about that? Probably not? Is your tax advisor talking to you
about that? I'm sure you probablynot. So who's given you the facts
on what your retirement tax bill isgoing to be? We can show you
in two seconds. Pick up thephone. Schedule time to meet with us.
We have office on both sides ofthe bay. But Dad, let's
talk about that the retirement tax billand how important is to know your tax
liability today with your retirement counts becausea couple things are going to happen in

(32:52):
twenty twenty five. The Trump taxcuts are going to expire. At our
seminar, we actually show you whatthe old tax rates were and what the
new ones are going to be.When we ask people how many know about
it, maybe one or two handsgo up, which is shocking. And
we talk about this, Chris andI for years on this thing, because
the Trump tax cuts are going toexpire, Yeah, you can defer your
retirement. Now they're saying it usedto be seventy and a half. We

(33:14):
ask people at the suminar do youknow what RMD is? And some people
don't even know. They call itour DMS. I had a lady come
in the other day and I hada stop her and I said, look,
the terminology is required amendmun distribution Andshe said, well, what is
it. The point is that wetold her from the tax bill calculator that
when she retires now at seventy whenshe has to take it at seventy three,

(33:35):
she's got more a pile of moneythat's going to be taxed at what
rate? Chris, and you talkabout it as an unknown rate, and
you've done the tax returns, Explainwhat happens when we do the mock tax
return and show them what they canbe taken out or will be taken out
at that age. And strategically Ihad a client the other day. I
showed this to you the other day. For ten years we've been strategically taking
money out of the IRA to lowertheir tax bill, and right now they're

(33:58):
not going to have a tax requirementtwenty three. Well, that's just it.
Many people don't understand what the biggestexpense going to be, and it's
called taxes. And as you keepgrowing the leading, these accounts grow tax
deferred and tax deferred and tax deferredfor so many years. Guess what,
at some point you got to payit. That's why it's seventy three right
now. That's called the requirement ofdistribution. So if you have an IRA,
a TSP, A four one K, these accounts are growing tax deferred.

(34:21):
But when you have to start takinga distribution at that time, whether
you want to or not. Buttax rates are going to go up.
They have to go up with allthe debt that we have. It's uncontrollable
debt. That's a scary thing.So what are you doing about it?
So what we can show you isget the money out of a taxable environment
into a tax free zone where it'sforever never taxed. Who wants to be
there? I know many people outthere want to. They want to have

(34:45):
tax free money, but they justdon't know how to get there because your
advisor doesn't know how. And Ican state that because I've seen it over
and over and over again. Thinkabout your current advisor today. Go ask
them the question about taxes, Goask them about how do I roll out
my IRA to tax free zones?And they say, well, go consult
your tax advisor. You go consultyour tax advisor who's doing your tax preparation,

(35:07):
and guess what they say, We'llgo talk to your advisors. So
no one's really helping you. Sowhat are you doing about it? This
is what I'm talking about when you'relistening to today's show. As we talked
about throughout today's show, the wholething is that we do complete planning.
There's tax planning, there's income planning. There's investment planning, there's a state
planning. If your current advisor justtalking to you about investments, you are

(35:27):
missing the boat. You will paya lot more in taxes because of him
or her than you all want tobe and that's what you don't deserve.
Make sure you understand you have atax approach that you can take to reduce
your tax. So pick up thephone, schedule time to meet with us.
Eight three to three Maggie Tax.That's eight three to three Maggie Tax.
So Dad want you to talk abouthow people go to the website Maggie
Tax dot com, click on theretirement tax bill and what does it do?

(35:52):
Oh this is so simple and I'mso glad we did it. Go
to our website Maggie Tax MHGGI taxdot com. On the top right,
you're going to see the retirement taxbill. Just click on it. What's
going to come up as a screenthat's going to ask you to put in
your IRA value, what tax bracketyou want, your name, and an
email and in thirty seconds, thirtyseconds, I kid you not try it.

(36:13):
Right now, you're going to geta report back of what your retirement
tax bill is going to be Now, be honest, all right, you
have to be honest with yourself.I have some people come in and say
they have, you know, twothousand dollars and they actually have two million
dollars. So do it eight threethree Maggie Tax. Give us a call.
We can help you through it.But go to Maggie tax dot com
on the top right. I encourageall of you to do this at our

(36:34):
seminar. When we do it,we actually show an illustration. Folks,
this is for real, this isyour money. So be honest with yourself.
Put the number in and then youknow, I get an email,
We'll give you a call. Comeon in, and what Chris is talking
about from a tax standpoint, wecan basically show you how to strategically put
those buckets together. And Chris,so many people come in and they say
to us, I want that bucketthing, and they don't know what they're

(36:57):
saying. But when we show youthe bucket planning, how it works and
how to reduce your taxes, Chris, it's it's like, well, my
guy's not telling me. Yeah,I know he's not telling you. And
like Chris said before, your CPA, well your tax guy is not telling
you. We know that that's whatmakes us a complete plan. You have
an incomplete plan. And I mightmight offend some people here, but I'm

(37:17):
sorry to tell you you have anincomplete plan. If you're gonna pay a
lot in taxes, well think aboutthis. Say you have a million dollars
or one hundred thousand, doesn't matter. But you see that a million dollars
go down to nine hundred thousand,then it's nine point fifty, and then
it's one point one million, thenit goes back down the nine hundred and
guess what what about when you starttaking distributions the income from it, and
what the tax is gonna be?Do you know? You know? Do

(37:39):
you know what it's gonna be?And that's the thing the ramifications, because
if you have to take more outto pay the tax to net the amount
that you need each month, howlong is your million dollar bucket gonna last?
Because think about it, Uncle Sam, you have a mortgage against your
retirement account. It's going to goto him. So what are you doing
about it? Too? To goahead and diffuse the big time bomb that

(38:02):
you have, So pick up thephone. We can show you eight three
three Maggie Tax. Visit our websiteat Maggi tax dot com. We thank
you so much for listening today anddon't forget. Every Sunday on ABCTV,
tune in at ten thirty am forthe Maggie Tax and Financial Show Maggie Tax
dot Com. Thank you so muchfor listening today eight three three Maggie Tax.
You've been listening to the Maggie Taxand Financial Hour discussing tax planning investment

(38:25):
strategy is presented by Robert and ChrisMaggie from Maggie Tax Advisory and Financial Services
with offices in Hillsboro and Panelas County. Visit Maggie tax dot com or call
eight one three three two two twentyfive twenty. That's eight one three three
two two twenty five twenty and tunein next Saturday at five for the Maggie

(38:47):
Tax and Financial Hour