Episode 20240504 - Tax Risk Playchecks and Bucket Planning

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 Financial Hour

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on nine seventy WFLA. Robert andChris Maggie, Welcome everyone, and thanks
for joining us today. My nameis Robert Maggie, and you're listening to
the Maggie Tax and Financial Show.And I'm here with my son, Chris
Maggan, and today we're going tobe talking about a lot of topics that
we'll concern all of you that maybeyou don't understand. So when you hear
what we talk about, if youhave questions, pick up the phone,

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give us a call eight three threeMaggie Tax. Be sure to visit our
website Maggie tax dot com and we'regoing to be talking about it as we
always have. Go to the retirementCalculator on the top right and click in
that site there and fill in yourinformation and in thirty seconds will show you
what your tax liability is going tobe. So, Chris, we have
a lot to talk about. We'regoing to talk about tax risk and legislative

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risk. So let's get started.Well, let's just say so welcome everyone,
Thank you so much for listening toour show today. There's so much
to cover, and let me talkabout what my dad was mentioning before.
When you go to our website,the RTB the Retirement tax Bomb, if
you have an IRA A four toone K, you have to stop and
you have to understand what's going onbecause that is a huge tax liability you're

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going to pay in the future.And many people just keep deferring taxes and
put money away in the form oneKS and iras well. Maybe that could
be bucket that year used to having, which is fine because you get a
nice tax deduction. But think aboutcreating other buckets that are tax free because
as things change in this country,taxes are going to go up. And
that's what we're talking about today,tax risk and legislative risk. So what

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the heck is the difference? Well, as things stay hot in Washington,
and they have been and they alwayswill be. I'm getting asked this question
more and more, Chris, andI see clients every day. But both
are intertwined risk that can dramatically impactus savers like you, like all of
us, and both are risk onmost savers are underprepared to address. So
let's talk about the first one,because this is the biggest one tax risk.

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Tax risk is the risk that aperson's taxes are going to be higher
in retirement than planned. And Chris, most of the people that we see
don't see that because they're not readyto retire or they have like you just
talked about with the retirement calculator.Yeah, they're going to defer it.
They don't have to take it outtill seventy three. Now, no problem.
But that's the window that you haveto do the tax strategy you're talking
about bucket planning and reduce the taxrisk absolutely, and those are the strategies

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that we can use and we doit each and every day. But the
misconception is that many people think,well, I'll be in a lower tax
bracket when I retire, And maybethat might be the case, but we
see is a lot of times it'snot. And as taxes increase and people
take more out of qualified accounts likeiras and form and case, it's creating
tax on solid security. It canbe up to eighty five percent tax on

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solid security, and that's where taxrates are going to increase and you're going
to pay more in tax. Sothat's where many people think, well,
I'm just sixty five, I'm gonnapay less in tax. It has nothing
to do with your age. Ithas to do with the income and the
sources of income that you're putting onyour tax return that's generating the tax.
And that's a great point you makethere because a lot of people don't see

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that. And then the other sideof it is when you start transferring money
from a taxable account and you paythe taxes. Now it could if you're
over sixty five, or if you'reon Medicare, it could affect the arm
attax on your Part B, whichis the Medicare tax that you pay for
Part B premium for people don't seethat, Chris, it's ridiculous. So
what does that mean? It meansmore of a retire's income is going to

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the IRS as taxes and less ofthe income is staying with the retiree.
Like you to spend on living expensesbecause think about this, you should be
putting a budget together, Chris,and I always ask you, know you
when you come in, what's yourbudget because a lot of people don't know
what they're spending. And you knowit's not good if you spend more than

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you make. And to prove this, visit Maggie tax dot com and on
the top right you're going to clickon the retirement calculator. Just fill in
the information and in thirty seconds we'llsend you what the retirement tax bill will
look like. Even if you doit, I know people play with it
and they give us different numbers,but it's the tax bracket that you have
to look at. Depending on howmuch you have, you're going to pay

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more to Uncle Sam than you're goingto get and that's where you don't want
to and that's why you have tocontrol of the tax risk. And many
people talk about investments. Yeah,we do investments. We can put together
a plan for you. There's alot of things we do, but taxes
are our biggest expen and it's goingto be the same thing for you.
So think of the phone, scheduletime to meet with us. There's so
much to talk about. We're talkingabout tax risks today, we're talking about

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legislative risk today, but also it'sgoing to affect your investments. So what
about your investments? You know marketsa hi markets have been doing well.
What are you doing when it goesthe other way? Where's your protection?
Where's your tax protection as well?So pick up the phone, schedule time
to meet with us. We haveoffice on both sides of the Bay.
A three to three maggie tax that'seight three three maggie tax. So in

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short, tax risk measures the levelof taxation you a saver experience in retirement.
And unless you sit down with atax person like us who does tax
planning, advanced tax planning, you'renot going to know you're not going to
know until you file that tax return. So we're talking about your IRA,
your four H three B or yourTSP plan. It's a tax time bomb.
And people come in and they laughand they go, I didn't know

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that it was a tax time bomb. Well it is, and it's going
to be worse as time passes by. So check it out and see what
we mean. We're about to seetax risk in action. In twenty twenty
five, several provisions from the twentyseventeen tax will expire. This includes that
reduction in individual income tax brackets.And if you want to copy of the

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tax brackets, send me an emailor call me and I'll send it to
you to prove my point, becausewhen we do seminars, we give this
out and it's going to change,meaning that your tax bracket's going to go
up three percent and you're going tobe paying more in taxes. And I'm
telling you, people just hear it, and they hear it and they don't
do anything about it. And it'slike when you open up the door and
there's a big win come and you'regoing to get hit with it. So
let's try to avoid that. Now, Well, that's just it. So

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when as you listen to our showtoday, you know we're talking about taxes,
and many people say, I'll justdeal with it during tax season,
but it's not the way to goabout this. Taxes are our biggest expense
and they're going to get worse,especially if you're a savior. So if
you have iras and forming case,we need to start doing bucket planning.
What do I mean by bucket planning? We need to position accounts that are

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a taxable into non taxable account accounts. We talk about the level of risk
that you taken with your money.Do you need an income plan? Well,
we can develop an income plan whereyou can have investment safety and preservation,
also investment growth, and also makesure that the money that you receive
is income tax free. So thinkabout this. Would you rather be in
an environment where you're going to gettaxed on everything you take out or would

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you rather be in an environment whereit's tax free. It's never taxed anymore.
And you can develop these buckets ifyou meet with the right advisors.
So pick up the phone, scheduletime to meet with us eight three to
three MAGI tax. That's eight threeto three magi tax and a simple word,
as we call it, strategic planning. You don't want to just put
everything in one bucket. You wantit strategically spread it out. So,

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like Chris is talking about, youhave a plan, you have a complete
plan. And I might insult somepeople here by saying you have an incomplete
plan, because you do. Becauseif you don't have a tax plan or
an income plan, you have anincomplete plan. So do something about it.
Give us a call eight three tothree Magi Tax and don't forget our
website, Magi tax dot com.Yeah, I want to talk about other

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advisors, maybe your advisor right now. They're they're managing your money and the
market's up, so everyone's winning,right. But get this, that's an
incomplete plan. Because if you're nottalking about taxes and your advisor's not showing
you ways to reduce it or createan income stream for you where you never
outlive your money, then you havean incomplete plan. And we're talking about
also a state planning as well.Many people out there don't have a will

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or a trust or documents or properbeneficiary designation to make sure that everything stays
in the family. You have anincomplete plan at Maggie Tax Advisor in financial
group. We do complete planning.It's holistic planning. We take a tax
approach to help you reduce your taxWe deal with investments. We can do
bucket planning and manage the money andrisk. We could talk about income planning,
we could talk about safety and guaranteedretirement buckets. We could talk about

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an estate planning or maximizing your socialSecurity benefits. So what's on your mind
as you listen today, think aboutthe questions you're having and we can meet
with you. So let's get together, have a conversation and let's put together
a plan for you. That's whatwe call the Maggie Plan. Income planning,
tax planning, investment planning, astate planning, social security planning.
That's what we call the Maggi Plan. So visit our website at Maggie tax

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dot com. Write this number downeight three to three Maggie Tax Schedule and
appointment today. Let's get together beforeit's too late. Where you're subject to
one hundred percent tax on your retirement, which again we call it a question
mark tax rate. In the future, you don't want to be there where
Uncle Sam controls the taxes. Youpay. I'd rather pay the tax is

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now on some of the money tomake sure that I'm incomplete control. A
three to three Maggie Tax. Well, let me kind of make another comment
here. We do seminars two amonth. We do them at libraries,
and they're on wills and trusts.And the point is that many people that
come and we talk about wills andtrust we talk about probate, We talk
about how to take your home outof probate because many people don't have certain

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documents that would avoid probate. AndI can go into that more, but
I would suggest to go to mywebsite, Maggie Tax dot com. Click
on the top where it says seminars. It's open for registration now, and
I encourage all of you to comein because if you don't have a will
or a trust or the documents thepowers of attorney what we're talking about and
we're going to get into more detail, this seminar is for you. So

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give us a call. Aight,three to three Maggie Tax, and don't
forget. Every Sunday at ten thirtyon ABC TV, tune into the Maggie
Tax and Financial Show, Chris andI talk about a lot of situations there
that pertain to you. And bythe way, it's not selling, it's
educating because you have to understand thelanguage what Chris and I are talking about
today. I know most of youmight be confused, but we can help

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you with that. Eight three threeMaggie Tax. Visit our website Maggie Tax
dot Com and get the Maggie Plan. It's simple and easy to understand.
It's a tax plan, it's anincome plan, it's an investment plan,
and it's a legacy plan. Eightthree three Maggie Tax and visit our website,
Maggie Tax dot Com. You're listeningto the Maggi Tax and Financial Show
eight three to three Maggie Tax.Stop planning for Uncle Sam's retirement and start

(11:00):
planning for your retirement. As wereturn to the Maggie Tax and Financial Hour
with your host father and son,Robert and Chris. Maggie. For additional
information on how you can create atax free retirement, visit Maggie Tax dot
com. That's ma Ggi tax dotcom or call eight one three three two

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two twenty five twenty. That's eightone three three two two twenty five twenty.
Now your host for the Maggie Taxand Financial Hour. Father and son
from Maggie Tax Advisory in Financial Group, Robert and Chris Maggie, Welcome back
and thanks for joining us today.My name is Robert Maggie and I'm here
with my son Chris Maggie, andtoday we've been talking about taxes as we

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always do, income planning, stateplanning, market planning, everything. So
one thing I would like you allto do invite you to our seminars.
Go to our website Maggie Tax dotcom, click on seminars and you'll see
the seminars coming up. They're free, they're educational. There are different locations,
so just go to Maggie Tax andregister. Also, don't forget go
to the retirement calculator on top andif you want to find out what your

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retirement tax bill is in thirty seconds, we can help you out. So
tax changes can potentially come in twoforms. We're going to talk about that.
First of all, situational changes,which are changes based on your individual
needs and situation. Because everybody's situationis different, so when you come in
and meet with us, your situationis different than your neighbor. We're going
to talk about that Situational changes caninclude how much income that you want to

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generate in retirement, what is thenumber, how much do you want to
get in retirement, and your filingstatus as a single, joint or head
of household filer. They make adifference. And a lot of people Chris
don't understand you know, filing taxes, what it is and the standard deduction,
and I know that's what we're talkingabout today, but when you come
in, we basically analyze that andtake our time, one line at a

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time. Well, when's the lasttime your advisor or your tax prep preparer
actually did a review of your taxAnd most times many people have no idea
how to even read the tax return, and you should. You know,
you're supposed to file your tax returnand you're supposed to understand what's on it.
And many people get scared because ofall the lines and the numbers on

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it. But you don't have tobe. It's not saying you have to
do tax preparation on your own.What I'm saying is understanding what's on it,
and before you file the return,you should understand where the money is
coming from and what you can doin the most tax efficient way to reduce
your tax. And if your advisoror your tax advisor, even your investment
advisor are causing taxes because of theincome that they're taking from the different sources

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of your retirement, then guess what, you're paying more tax than you really
need to. So are you?It can possibly be, and that's why
we need to do a review.Come in, let's do a tax review,
Let's do an investment in review,let's do an income review, let's
do a state planning review. That'swhat we're talking about. And as you
mentioned that situational changes. Things dochange in people's lives, and we don't
do cookie cutter plans. This isthe same plan is not done for everybody.

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This is your money. So whenwe sit down and we talk about
you and your spouse or you individually, we're going to put together a plan
that's going to compose of income andinvestments and your risk and also making sure
that everything stays in the family goesto where you want it to go.
If that's what you want, Sopick up the phone, schedule time to
meet with us. Eight three tothree, Maggie, tax schedule time.
Let's get together. So we talkedabout situational changes, let's talk about one

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that's very important. It's called legislativechanges. What is legislature risk, And
these are changes that are based onnew laws or regulations from the government,
because just remember everything's written in pencil. So legislative changes can include which assets
are subject to taxation, when thoseassets are taxed, and at what level
they are taxed. So that's abig question right now, Like with your

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ires four O one, k's theTrump tax cuts are going to expire in
two years. What's the tax goingto be? People don't see that.
The way we do it, Chris, when we do an analysis like the
retirement calculator, we know what thetax bill is going to be. Now
we have to figure out out therest of the story. What's on the
tax return in addition to that,and then bam, what's the tax going
to be? That's it. Andthen after that you can walk away and

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spend the money and you don't haveto worry about the taxes anymore. And
those two risks are very important,situational risk and legislative risk. But I
would say legislative risk is way moreimportant because you can't control it. Situations,
yeah, some you cannot change,but you could do the things in
order to change your life and tomake sure that you are you have a

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right budget in place, or youcontrol your spending. Those situations that you
can control. But legislative risk isso so scary because if they change the
tax code and they say, well, now when you start taking money out,
it's going to be five percent morein tax and guess what. Now
you have to figure out what thetax penalty with the tax implications are going
to be, and that's less incometo you. So guess what. That

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changes your lifestyle. That changes whatyou can and can't do. So when
you come into meet with us,let's put together playchecks. Let's put together
paychecks. But those play checks areso important because because you can fight inflation.
Many people come in and say,well, how do I in fight
inflation with interest rates being so highand I mean the interest rates at the
bank or kind a fixed account arenot keeping up. Well, we can

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show you how to have an incomebecause if you have enough income sources coming
in the front door every month,guess what, it doesn't matter what inflation's
going to because you have enough moneyto spend for the rest of your life.
So we can help you let's puttogether a play check plan playcheck plan
for you eight three to three MaggieTax. That's eight three to three Maggie
Tax. Are you confused yet,because you should be. But that's okay.
But again, what we're offering everyoneout there today and we do it

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every week, is go to ourwebsite, Maggie tax dot com. Register
for our seminar. They're free andthey're all over Tampa Bay and it's someplace
that you can go to. It'sabout an hour and a half. We're
going to educate you on a stateplanning, on social security planning, on
tax planning, on legislature risk,on market options that you have that you
don't have now that might be better. We're going to talk about red money

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green money in the next segment.But Chris, the point is that people
are not understanding the language because,like we talked about the RMD required minium
distribution, that is confused to everybodysince the Secure Act was changed, and
a lot of people don't even knowwhat the Secure Act was and what it
does. Well, you know,at seventy and a half you were able
you had to take the require miniumdistribution and that's just money out of your

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retirement accounts like IRA's pool and k'sif you're not working anymore for three b's.
These are all qualified accounts that areinfective attack. So you required to
take out a distribution and they changethat to seventy two and then seventy three
and then seventy five with some people. So are you calculating it right?
Well, if not, there's apenalty for not calculating and taking the distribution.
So what are you doing about it? You know many people just don't

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know what to do with it.Well, we can show you what to
do with it. To leverage yourmoney to have tax free money, to
keep the money in your family,you know, for your spouse, or
for your kids, or for yourgrandkids. Many people care about their grandkids.
You know. There's a lot goingon these days with the environment and
the country and the world we livein. So would you want to give
your kids a step in the rightdirection if they need it, as opposed

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to just found the crowd and fallenvictim to everything. Well absolutely you would,
you know, if that's the kindheart that you have, and many
people do. But that's why weneed to create paychecks and play checks and
make sure you have income for life, and you have to make sure that
your investments are in the right spotto take advantage of the opportunities that are
out there. Even if the marketgoes down. Let's take advantage of the

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opportunity. Let's not just say,oh my gosh, everyone lost money,
because that's not the way it works. It doesn't have to be that way
if you have an investment plan.So pick up the phone, schedule time
to meet with us. Eight threeto three Magi Tax. That's eight three
to three Maggie Tax. And don'tforget register for US seminars coming up.
It's very simple. Go to MaggieTax, click on seminars. You'll see
all the dates and times and locations. Pick one and you know, just

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register. It's that simple. Geteducated, understand the language on tax planning,
income planning, social security and everythingelse that's concerning on your mind.
So eight three to three Magi Tax. We have operated standing by right now.
Eight three to three magis stop planningfor Uncle Sam's retirement and start planning
for your retirement. As we returnto the Maggie Tax and Financial Hour with

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your host father and son, Robertand Chris, Maggie for additional information on
how you can create a tax freeretirement, visit Maggie tax dot com.
That's ma Ggi tax dot com orcall eight one three three two two twenty
five twenty. That's eight one threethree two two twenty five twenty. Now

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your host for the Maggie Tax andFinancial Hour, father and son from Maggie
Tax Advisory and Financial Group, Robertand Chris Maggie. Welcome back everyone,
and thanks for joining us today.My name is Robert Maggan. I'm here
with Chris Maggie. So a couplethings here that we want to talk about.
There are many pieces to your financialpuzzle, and let us help you
put your pieces together. When wedesign plans, we talk about income plan

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tax planning, estate planning, legacyplanning. And this all has to do
with everyone listening to our show today. So one of the questions Chris,
we get all the time is whatdo we do, how do we put
this thing called bucket planning together?And what does it really mean? Because,
like you say, many times peoplehave piles of money and you know
the old rule of taking four percentout and think that's going to you know,

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last forever is not the way togo So when we talk about bucket
planning in this let's just go overthis because I think this is so important
to a lot of people listening outthere that might help them. So what
is bucket income planning? Well,let me give you a two minute overview
when we start with the big questionon many retirees' minds, which is what
kind of income can I expect inretirement? Although this is a longer discussion
than we have really time for.You also need to stop thinking about the

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gross paycheck you got from your lastjob or the jobs that we've been working
in the past, and start thinkingabout the net check you received in your
bank account. There are tax strategiesto help reduce the taxes you pay in
retirement, so gross numbers might beso gross, you know a second,
think about it. When thinking aboutthe income plan, we typically plan for

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retirement that is lasting twenty or thirtyyears or even more. So we have
to plan accordingly as no one wantsto run out of money. You know,
many people, even if you're wealthyor you don't have a lot of
money, the main concern that wesee is they're going to run out of
money. Am I going to runout of money. We meet with millionaires
and the big question is am Igoing to run out of money? And

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many people are confused, Well theyhave plenty of money. Well no,
they're worried about running out of money. So it doesn't matter if you have
a lot of money or if youdon't. Running out of money is the
main concern that we see. Sowill you run out of accounts to zero?
Maybe maybe you won't, but probablynot. But running out of money
to us used to mean you haveto change your lifestyle. So there's two

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things that we're talking about here.But also third, think of money this
way. Typically the greater risk youtake and investing can mean greater rewards,
but also brings the potential for greaterlosses and vice versa. So when it
comes to safer retirement strategy is youhave to start having an open mind to
bucket planning and making sure that youhave your money in the right spot.

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And also remember one thing to consideris to safe. To have safe money,
it might bring a very low return. We know that there's you know,
money market accounts, savings account verylow returns. We get that interest
rates used to be higher where weused to be and was spoiled getting more
money because we had higher interest rates. But when you have very low returns
causing you to lose purchasing power toinflation, you know, let's get the

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bucket planning underway. Because what peopledon't see. Most of you listening today
don't know the pile of money youhave and what you can do with it,
meaning set it up for income.The question we ask everybody how much
money do you need today to putyour feet on the ground and get that
paycheck every month that you need tolive. Okay, because that's the main
goal, Chris, what do theyneed today? The budget is a big

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question that people don't know what todo. That's a question that they have
to answer, and that's it.So when you meet with us, we're
going to ask you how much incomeyou need to live each and every month.
Net. There's gross, which isgross before taxes, there's net after
taxes. So we can figure outright in front of you what your tax
liability is going to be. Anda lot of people don't really understand how

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solid security works. It could betaxed up to eighty five percent, it
could be taxed at zero. Soif you structure it the right way,
you might have one hundred thousand dollarsof income coming in the front door and
paying no taxes like a lot ofour clients do because they take the money
from the right source. So that'swhat we talk talk about, income planning
and tax planning. So if youhave questions about is my solid security getting

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taxed or how much will it gettaxed? Pick up the phone, schedule
time to meet with us. Eightthree three Maggie tax. So let's talk
about three buckets. You know.The first bucket we structure for income needed
early in retirement. We want tolook for the percentage of assets that can
deliver enough income to last anywhere betweenfive to seven years. We want this
first bucket to be in retirement vehiclesthat can deliver a decent return to outpace

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inflation. And that's what's really reallyimportant. And you have some downside protection
as well, So we want tominimize investment losses. Why because you need
those funds. When we look atthe second bucket, as you're enjoying the
income from the first bucket, you'reliving your life, you're enjoying it.
Well, we've got the second bucketaccumulating and ready to begin income. When

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that first bucket is exhausted. Sothink of it this way. You get
now money, later money, nevermoney, So the second bucket is pretty
much your later money. So whenyou start taking income from the first bucket,
the second bucket is growing, andwhen you need that most, you
can turn that on for income.Because we aren't immediately reliant on the income

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from this second bucket, we gotthat first five to seven year timeframe to
take a little more risk, sowe have time due to absorb the ups
and downs as market fluctuation occurs.So it's less a a concern right now
because we have time on our side. So ideally the percentage of assets we
place in the second bucket accumulates duringthat five to seven year timeframe, and

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then what do we do after that? We turn it on for guaranteed income
for another five to seven years,for a guaranteed income stream. So let's
talk about the third bucket as well. Well. So post it for a
minute, because you mentioned some numbers, five to seven, five to seven,
that's ten to fourteen years of incomewithout touching what I'm going to talk
about in a minute, the thirdbucket. And I think, Chris,
what people get confused is they haveto stop and think and pause for a

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second and understand that if this isthe income you need for the next five
to seven years, why you're takingrisk with the other money for what reason?
That doesn't make any sense. Whatyou want to do is keep the
bucket safe five to seven years andthen exhaust that bucket, let it get
empty, and then do it again. And then when you get to the
tenth year, which we're going totalk about. Now, now we've got
that last bucket, the third bucket, and the third bucket we ideally aren't

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touching for income for ten to fifteenyears. So now we've got some real
time on our side to let it. Let the market do what the market
does. And our plan would be, excuse me, would be to make
that money last and then do itall again. Place the percentage of assets
in this bucket that could grow overthis time period to the original amount that
we started with ten years ago,and at that point we reassess income needs

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and again things change, okay,interest rates change, and start a new
plan all over again. That's theMaggie plan. That's what we're talking about.
Bucket planning. Chris and people whenthey sit down and we do this
in front of them. It's almostlike, gee, wish no one ever
showed us that. I didn't knowwe could do this with our money.
That's just it. So we madeit sound simple, and again it can
be simple if you work with theright advisors, so we can put together

(26:41):
a plan. There's a lot ofdetail that we talk about. You know,
each bucket has a purpose, andthat's why when people come to us,
you know, they sit down infront of us and they put all
the statements in front of us,and they're opening the mail right there and
they said, I have an accountover here, and they're opening the mail
and then it comes out and theyreally don't know what they have. They
don't have have bucket planning. Theydon't have the first phase, the second

(27:03):
buckets, the third bucket. Theyhave everything in the market, everything is
everything is pretty much their last leg. So can you live on your last
leg? The answer is no,because what if the market does go down
twenty thirty forty percent, then allyour income goes down with it. You
know, here's an example. Alot of people back in two thousand and
one and two thousand and eight theyhad a million dollars and guess what they

(27:26):
would take in four percent income fromit, that's forty thousand dollars of income
for the year. Well what happened, Well, the market went down thirty
forty percent, So your million nowis worth six hundred thousand. So now
you're taking four percent, that's twentyfour thousand. So that's a sixteen thousand
dollars loss of income because the marketwent down. So do you want to
be in that environment where you haveto cut back and you have to have

(27:49):
those fears. You don't have toif you don't want to. And that's
why the importance of meeting with someof those complete planning. Someone who's a
fiduciary is going to do the bestthing for you. Someone who understands tax
planning, investment planning, income planning. We can put together the bucket strategy
for you and show you how muchyou can have and then replenish it all

(28:10):
over again and do it all overagain for years to come. So visit
our website at Maggi tax dot comand pick up the phone schedule time to
meet with us, and when yourschedule time, say to the representative and
to our assistance, we want thebucket plan. We want that bucket plan.
And when you come in, wecan show you eight three to three.
Maggie Tax, I'm going to makeit real easy for all of you
because we do seminars. So wehave a three and one seminar on what

(28:33):
Chris and I are talking about today, bucket planning, and also your retirement
tax bill. We're going to illustratelive at our seminar. So if you
register for our seminar, go toMaggie Tax dot com, click on seminars.
The dates are there, the timesare there. Take the time to
come in and look at tax planning, bucket planning, estate planning, and
social security planning. You know why, because you're not getting the education.

(28:56):
It's the language that's confusing a lotof people out there today. You mentioned
before the word legislature risk. That'snot going to change because Congress can do
whatever they want. I'm holding herea pencil. This is what it is.
It's written in pencil. And everytime we do these shows, we
hear new things that are going on. To offer these to you. Please
don't hide your head in the sand. And Chris, we see that so
many times because people are afraid toask a question. My dad was like

(29:21):
that, and you know what,you can't be like that. The new
rules of retirement right now are hereeight three to three Magi Tax. Register
for our seminar. Go to MaggieTax dot com and come in and we'll
show you bucket planning, We'll showyou the retirement tax bill, We'll show
you about social security. These arethings that you need to have. So
let's put together a plan eight threeto three Maggie Tax. And someone's to

(29:41):
talk about. Times are changing.People are fearful, inflation is here a
lot of questions. Should I buygold? Should I not buy gold?
Where should it be in my plan? How much should I have? My
gosh? People are confused, they'refeeling isolated, and they just don't know
what to do. Well, wehave to empower how are you? And
we will because you'll have the knowledgeto understand what your accounts can do.

(30:03):
And when you come in, we'regoing to ask you how much income do
you need? Is it five thousanda month, is it three thousand a
month, is it eight thousand amonth? Whatever it is, let's put
together a plan and we'll be honestwith you and we'll tell you. Will
you run out of money? Maybemaybe you won't. But what if you
can leave and understand my gosh,I have a plan. I have guaranteed
income for life. I know whatmy tax situation is going to be,

(30:26):
and I can just spend paychecks andplay checks each and every month for the
rest of my life and I don'thave to worry about it. So pick
up the phone. Schedule a timeto meet with us eight three three magtas
that's eight three to three Magi Tas, and don't forget. Every Sunday,
tune in to ABCTV at ten thirtyAM for the Magi Tax and Financial Show.
And we have a lot of differenttopics. We talk about the bucket

(30:48):
plan, we talk about tax planning, investment planning, social security maximization planning,
a state planning. There's so muchthat we discuss to help you.
So pick up the phone. Schedulea time to meet with us three three
Maggie Tax. That's eight three threeMaggie Tax. Stop planning for Uncle Sam's
retirement and start planning for your retirement. As we return to the Maggie Tax

(31:11):
and Financial Hour with your host fatherand 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 I taxdot com. Or call eight one three
three two two twenty five twenty.That's eight one three three two two twenty

(31:33):
five twenty. Now your host forthe Maggie Tax and Financial Hour, father
and son from Maggie Tax Advisory andFinancial Group, Robert and Chris Maggie.
Welcome back, and you're listening tothe Maggie Tax and Financial Show. And
today we've been talking about tax riskand legislative risk and a whole bunch of
other things. But what I wantto bring back this is for the person
out there that you know has beeninvesting in this for a long time.

(31:56):
In the advisor community, they learnto identify that risk by they created using
fancy terms like alpha and beta.How many people know that? And the
industry helped create tools like Monte Carlosimulations to quantify that risk for clients.
How many know that? Okay,I'm not worried about that. Finally,
advisors would use those tools to buildasset allocation models to mitigate market risk,

(32:19):
not mitigate tax risk. So thequestion is, every time we see a
client come in, did you openup your statement? Do you know what
you have, and they say,no, I don't. They don't know
about alpha, beta and all thisother stuff. They just look at the
bottom line and they look at howmany fees they're paying. Well, what
is the advisor doing for you.He's not doing tax risk, he's not
doing income risk. So what washe doing? He's just grown your assets.
The focus on accumulating wealth was theprimary focus until a few things happened

(32:45):
the dot com bubble burst, followedshortly there after by the financial crisis,
and suddenly savers were reaching retirement agewith depleted assets and no plan to generate
income. And that problem was compoundedby the reality that retirees were living longer
than ever. So none of theseadvisors talked about future tax free money or

(33:05):
income. And I asked it before, how much income do you need for
the rest of your life to goto that mailbox every month and get the
check that you want. Advisors learnto identify that income risk or a longevity
risk. That's what we do.And suddenly it wasn't enough to just accumulate
funds. Savers needed a plan tomake those funds last a lifetime. Chris,
and that's what we see every daynow because people are confused, they're

(33:29):
isolating, and they're angry. Wouldyou think it's because they got the wrong
information, they were taught the wronglanguage. Well, this is what's happening.
People come into tax preparation and guesswhat when they're not clients of ours,
they're clients of other advisers. Theycome in and they say, I
want to get a plan, sowe do the taxes for them, and
guess what. They're upset They haveto pay a tax liability and they said,

(33:50):
well, my advisor never showed mea tax plan. So what if
you could have a plan where youhave buckets of money? Just think about
this for a sec What if youhave buckets of money that have growth with
investments that are allocated the right wayto your risk tolerance. What if you
have a couple other buckets that generateguaranteed income so you can go to the
mailbox each and every month and grabthat check and spend the heck out of

(34:10):
it and do it all over againfor the rest of your life. And
what if you have like an inflationbucket right that you can always tap into
so when things hit the fan,you can always tap into and have income.
So you don't have to worry aboutthe inflation or running out of money.
Then what if you had those buckets, every one of them, make
sure that they pass to where youwant it to go and avoid the probate

(34:32):
process. Then what if you hadsome of those buckets that are tax free,
So when you use taxes every year, you take some from a taxable
environment, some from a tax freeand you can stay under the threshold income.
So maybe you don't have to filea tax return or your effective tax
rate is very low. That's howyou do planning. What if you can
have that, Well, that's whatthe Maggie plans all about. That's the

(34:54):
holistic plan that we do. It'snot about just giving your money, let
me manage it for you. Anybodyhe can do that. There's more to
it. So when you think aboutwhat's happening right now, you're following the
crowd. You're the same as everyone of people out there. And there's
a small percentage of people out therethat actually have what I just talked about,
because there's so many people out therethat don't know what to do.

(35:16):
If you're listening today, I urgeyou to pick up the phone, schedule
a time to meet with us,get a second opinion on your plan eight
three three magi tax. That's eightthree to three magi tax. So the
question is how do you make yourmoney last a lifetime? And what happened
things change in this industry. Annuitiescame out guaranteed income riders that people have.
That was the perfect solution to providea guaranteed check and clients could retire

(35:40):
and outlive their money. In theyear two thousand, advisors became experts in
income planning, addressed this major concernand that's what we do. And shortly
thereafter, most advisors across the industrywere using annuities to offset income risk.
Now, don't panic when I saythe word annuities, because if you look
at your Social Security and you pinch, and that's an annuity. So think

(36:01):
about it. You just don't understandthe language and how they apply, and
some may be bad. I getit, Chris understands. But until you
sit down and see how the annuityprocess works. You want guaranteed income for
life, you want a certain amount, we can help you. So today
the headlines are all about taxes.All right. They just bypassed everything,
They shoved it under the blanket.Advisors who understand tax risks today like we

(36:24):
do with Maggie, tax are thereason why we are successful. Many of
you know us. Many of youcome in and see us and you understand
the plan and we do complete planning. And I'll say it again, you
do not have a complete plan ifyou do not have a tax plan or
an income plan. And we canapply the same financial process we use to
address market and income risks. Wewant to help clients identify your tax risk,

(36:46):
quantifying dollars and cents. That's thebottom line. People say, Bobby,
Chris, how much am I goingto get? Bottom line? And
let us find the tools to reducethat risk. That's up to you.
You have to tell us what's concerningyou income? Is it taxes or it's
all the above, Because the biggestthing we hear, Chris, is the
market. The market. Oh it'sup, we're making money. No you're

(37:07):
not. You got It's not allyours until it crashes, and then it
crashes. Then you lose what youlose all that you think you had.
That is not a plan for retirement, Chris. I mean, I'm sorry,
I get upset, but this iswhat people come in they think the
market is the best thing in theworld for what For growth, yes,
but for retirement. You got tostart thinking about change and looking at it

(37:27):
through a different lens. Absolutely,and that's where there's the complete process.
You know we talked about early onthe show. Yeah, you're up at
halftime and it's great, you're allexcited, but guess what the second half
comes around, and that's where UncleSam is. He comes out. That's
a silent partner that's there on theother team that you do not see.
And that's what we're showing you today. So when we think about big picture,
we get it. We have peopleretire each and every day. You

(37:49):
retire once, so we retire eachand every day, and we can show
you how it's going to look.So think up the phone and schedule time
to meet with us. We haveoffice on both sides of the bay.
We do a radio sh shoe obviously, we do a TV show every Sunday
on ABC TV at ten thirty am. Tune in watch. Go to our
website Maggi tax dot com see whatwe do. You're listening today. If

(38:09):
you do not have a plan,we can help. If you want an
income plan, a tax plan,an investment plan and a state plan,
a social security maximization plan. Wecan help. What are you doing If
you do not have a plan,you need to get one A three three
magi tax. We look forward toworking with you. Forward a meeting with
you. Get the Maggi Plan taxplanning, income planning, investment planning,

(38:31):
social security planning, as state planning. Get a plan you deserve eight three
three magi tax. That's eight threethree cogitax. You've been listening to the
Maggie Tax on Financial Hour discussing taxplanning investment strategy is presented by Robert and
Chris Maggie from Maggie Tax Advisory andFinancial Services with offices in Hillsboro and Panelas

(38:52):
County. Visit Maggi Tax dot comor call eight one three three two two
twenty five twenty that's eight one threethree two two twenty five twenty and tune
in next Saturday at five for theMaggie Tax and Financial Hour