Episode 20250104 - Tax Plans and Investment Debt

Episode Transcript

Speaker 1 (00:00):
All these years you've saved up planning for a secure retirement,
but if you're not careful, it will be the irs
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 Maggie Tax Advisory
and Financial Group. With over thirty years of combined experience
in tax savings, income planning, and investment opportunities, Robert and

(00:22):
Chris share advice and tax planning strategies designed to protect
your retirement nest egg from Uncle Sam. Your questions and
comments are welcome during today's program by calling eight one
three three two two 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 now

(00:46):
your host for the Maggie Tax Financial Hour on nine
seventy WFLA. Robert and Chris Maggie.

Speaker 2 (00:53):
Welcome everyone, and thanks for joining us today. My name
is Robert Maggie and I'm here with my son and
co host, Chris Maggie. Visit our website, Maggie dot com.
There's a lot of information there, click on the retirement
calculator if you have an IRA or a four to
one K, take a look and see what your retirement
tax bill is going to be. And then come in
and let's do some tax planning. Let's do some income planning,
investment planning, insurance planning, and let's talk about the Maggie plan.

(01:16):
Visit Maggie tax dot com. Well, give us a call
eight three to three Maggie Tax. So, Chris, we're getting
a lot of questions about Roth conversions. Some people are
doing it wrong, some people are getting the wrong information.
And as you know, and as everybody else out there knows,
we specialize in tax planning. So let's talk about Roth
conversions today.

Speaker 3 (01:35):
Absolutely, so welcome everyone. I'm Chris Maggie and thank you
so much for tuning into the show. And that's correct.
Wroth conversions many people talk about. Many advisors talk about it,
but they don't complete the story because they don't tell
you what the tax menification is going to be. You
go to your tax prepair and they go ahead and
just do your tax return. But again, how much should
you convert? So a lot of things you need to

(01:57):
be aware of when you do convert it's not just
what everyone should do. Some people should do it, some
people should not. So that's why it's so important to
work with the right advisor who understands investments and income
planning and tax planning, because if you do it the
wrong way, you're going to get this tax bill that
you owe thousands of thousands of dollars for taxes. And
it doesn't have to be that way, So you don't

(02:17):
want to be surprised. And that's what we want to
talk about today. Is a Roth conversion right for you?
Should you do it? And those are things that many
people have questions on. So visit our website at Maggie
tax dot com, pick up the phone, schedule time to
meet with us eight three three Maggie Tax Maggi tax
dot com for more information and we can help you.

Speaker 2 (02:36):
And one of the things that we do that other
advisors do not do is we do it from a
tax return. So if you're thinking of a rough conversion,
don't just go to your tax guy and convert the
money and then pay the big tax. Do it strategically
and have a plan. Here's the question, is it tax
season right now? Chris?

Speaker 3 (02:52):
It's always tax season in our eyes, because taxes are
our biggest expense and you need to always make sure
that you are aware of the tax liability.

Speaker 2 (03:00):
And the reason why I asked that question because in
Maggie Tax, it's tax season all year round. So it's
not just up to April fifteenth, or October or September,
whatever the extensions are. It's all year round, and right
now I think most of you out there are concerned
about if taxes go up. The question is taxes are
going to go up, how is it going to affect you,
whether whether you have an IRA or four oh one K.

(03:21):
That's why we offer the retirement calculator. We do advanced
tax planning. So now is the time to call eight
three to three Magie Tax. Right now, I have operators
standing by eight three to three Magi Tax. Let the
operator know that this is urgent and just tell them
tax planning at eight three to three Maggie Tax. I
don't care how big your IRA or four oh one

(03:41):
K is. Folks, you have a deferred account that you
have not paid taxes on. So strategically, no matter what
age you are, whether it be fifty to fifty five
or sixty or even seventy you're going to pay an
unknown tax, and that's the problem I think that most
investors have. Most investors hate taxes, but honestly, when you
enjoy the challenge of minimizing taxes over the long term.

(04:03):
So why is tax planning is an essential element in
smart investing? Chris? Is that play a big part in
many of the clients that we see, Well, they just
committed to buy a stock bond on mutual fund.

Speaker 3 (04:14):
Well that's it. You know, you want to make sure
you do complete planning. And let's talk about some examples here, right,
So about three years ago, a client came in had
three hundred thousand dollars of their IRA money.

Speaker 2 (04:23):
So what do we do.

Speaker 3 (04:24):
We looked at their tax return and he was receiving
Social Security, he had a pension and then marriage so
she was getting solid security as well. So they had
three income streams. They were getting about five thousand dollars
a month of income, very satisfied covered their need. But
they had three hundred thousand dollars of IRA money. So
this account is fully infected with taxes. And he said
to me, he said, what do we need to do
to get this money out in the most tax efficient way?

(04:47):
So he's thought about it, and he said, well, let's
just rip off the band aid and let's go ahead
and pay the tax. So I ran a couple of
different mock returns and I showed him, let's go ahead
and just take it. Three hundred thousand added to a
solid security his pension, and this is what your tax
liability is going to be. So he sat back and
it was kind of sticker shocked, and he said, I
don't want to do that, and I said, you don't
have to. Let's run some more. So what I did

(05:09):
was do some strategic planning. And what we did was
we took out thirty thousand dollars a year for the
next seven years. Is a plan was what it was
supposed to be, and we did and rom still pays
to do it. But over the past three years he
has paid tax on thirty thousand dollars of conversion. And
again he's only in the eight percent effective tax bracket

(05:32):
on that amount of money. So he's taken money out
of a taxable environment and converting it to a tax
free environment. So over the past three years now he's
got eighty five thousand dollars of money after taxes that
he has an a tax free zone, plus the interest,
which is more than when he converted. So now he's
up to over one hundred and five thousand dollars of

(05:53):
tax free money because his account has now paid the tax,
it's earned money, and now it's on its way to
earning more tax free money in the future. So we
got many more years to do this until he reaches
his required minimum distribution age, which is age seventy three
for him. So he is on a great path moving forward.
And every year we look at this and we're on

(06:13):
a tax return and we talk about should we convert more?
But he is in his sweet spot right now. He
doesn't have to worry about the IRMA tax. He doesn't
have to worry about the Medicare tax, like that's what
IRMA is, increase of Part B premium. And he's sitting pretty.
He's got his income coming in every month. He's converting
money to a tax free zone. His accounts are in
a safe spot. And guess what, he is in control

(06:35):
of his retirement.

Speaker 2 (06:36):
Chris, you just gave everyone a reason out there to
pick up the phone and call eight three to three
Magie Tax. Because there are situations that Chris is talking
about where a long term tax strategy may save you money.
The only thing is you don't know and you don't
see it, even though it requires paying more taxes in
the short term. That's where tax planning comes in and
what Chris and I do. That's what we do advanced

(06:57):
tax planning all year round at Maggie Tax and Folks.
I'll challenge you if you want to come in and
bring in your information and we'll show you and believe me,
if we can help you. We're going to tell you
that we're going to help you understand. But guess what,
like Chris said, if we can make your situation better,
and you're going to make the final decision, not me
or Chris. But life has many changes and you have
to be ready and understand the language why so you

(07:20):
can avoid unnecessary taxes Because what's happening now when the
tax cuts expire, it's going to go up at least
thirty percent. Maybe some of you don't see that, but
when you get your taxes in two years, you're going
to see it and you're going to wonder what I
could have done. So consider the long term tax benefits
of WROTH for on one case, and Roth iras and Chris,
there is a difference, right, absolutely there is.

Speaker 3 (07:41):
And that's one thing that we talk about is all
the time is tax free zones, and there is You're right,
the traditional form and K and also the Wroth form
K if your employer offers these things. But let me
go back to the example that well not example, but
exactly the client that we were working with here that
did this three years ago. When I talk about the
bucket planning, he said to me, well, what do I

(08:01):
do with the money? How can I position it now
where I can have a plan where I can have
safety and some risk and take some chances with some money.
And we put together a bucket strategy using red money,
green money, and yellow money, and he was blown away.
He said, my gosh, this is exactly what I was
looking for. And he said to me, he said, in
two years to now, I might want about maybe another

(08:22):
five hundred dollars a month of income. So I ran
another mock tax return and I showed him if we
take five hundred dollars from his IRA money, this is
a tax for inifications. But if now we use his
tax free account, he can have more money. Next six
thousand dollars a year of income and pay no tax.
And he was blown away. They both were, and they said,
this is exactly what we're looking for. This is a plan,

(08:44):
this is a tax plan, it's an income plan, it's
an investment plan. And to make things even better, we
talked about their accounts again and we said, hey, do
you want this to go through probate or do you
want to make sure it goes to your two kids?
And they said, you know the answer to that one.
We want to make sure the money stays in the family.
So we put that together where he has an estate plan,
he's got proper beneficiary designation, he's got an estate plan,

(09:06):
his house, his assets, everything's going to avoid probate and
go to where they want it to go. So that
can happen to you too. Just pick up the phone
and schedule time to meet with us. Eight three to
three Maggie tax.

Speaker 2 (09:17):
And one other point traditional four and win ks They
became available in nineteen seventy eight as a way to
save for retirement, but the four and one K was
the biggest disappointment created. And think about this. You get
a tax deduction on the front end, and you get
that for many years and that's great, But when you
start to withdraw the money, you're going to be paying
it all back for many years, and you're going to
be paying three to five times more than the tax

(09:39):
deduction that you received. This is why tax planning is
so important. This is why the retirement calculat that I
have on the website is going to help you understand this.
These plans are offered by employers. The amount in employee
contributes to their account is considered pre tax and it
is deducted from their taxable income. That's fine, that's what
a lot of people did. I'm an account is tax

(10:01):
deferred until the money is withdrawn during your retirement. Employers
often contribute a portion of the employer's contributions called the match,
which is in an added benefit. But it's all taxable, Chris,
every bit of it. And then when you start talking
about withdrawals, which we'll talk about in the next segment,
they're taxed as well. But now at what age are
you taking it out seventy three, seventy four to seventy five,

(10:22):
How much and how much is it's going to affect
your income? This is why tax planning is so important.
Right now, pick up the phone eight three to three
Maggie Tax. Sit down with us and go over this.
This is going to be something that's going to be ongoing.
And if your tax prepairer is not addressing these issues
like Chris and I are, shame on them. Eight three
to three Maggie Tax. Visit our website Maggie Tax dot

(10:43):
com and every Sunday listen watch our TV show with
ten thirty, The Maggie Tax and Financial Show. Visit Maggie
Tax dot com today and give us a call at
eight three to three Maggie Tax. That's eight three to
three Maggie Tax.

Speaker 1 (10:58):
Stop planning for Uncle Sam's or time and start planning
for your retirement. As we return 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 a tax free retirement, visit Maggie tax dot com.
That's ma gg I tax dot com or call eight

(11:19):
one three three two two twenty five twenty. That's eight
one three three two two twenty five twenty. Now your
host for the Maggie Tax and Financial Hour, Father and
son from Maggie Tax Advisory and Financial Group. Robert and
Chris Maggie.

Speaker 2 (11:35):
Welcome back. My name is Robert Maggie, and you're listening
to the Maggie Tax and Financial Show. And I'm here
with my son Chris Maggie, and we're talking about debt
to the irs because a lot of folks out there
when they start taking money out of the IRA, and
many of you have great iras in four oh one k's,
you're going to pay a tax. And remember the definition
of debt something especially money owed to someone else. Does

(11:56):
that sound like taxes in an IRA? Chriss, Absolutely so.
If you have saved in a four to one k
on IRA or any tax deferred vehicle, you owe a
debt of taxes to the irs. And let me remind
all of you, you have a debt to the irs,
and the bad news is a debt that grows with interest.
This is the problem that we don't realize, or a
lot of people don't, because as it grows and the interest,

(12:19):
you know it grows as well, you're going to pay
a lot more tax. So you all owe taxes not
only on your contributions, but also on the growth and
the funds in your accounts. You talked about something before
investment risk and investment growth. How does that apply? Like
when we talk about this, when people come in.

Speaker 3 (12:35):
Well, there's a regular debt, and many people think about
credit cards and bad debt, and then you got investment debt,
which is what we're talking about here today, and we
talked about this last segment. It's a question mark tax
rate when you retire. That's the thing when you put
money away and you're doing a great job if you
have an IRA A four one K and a TSP
of your federal employee, but the bottom line is you
really kind of follow the crowd and you're really not

(12:57):
doing it the right way because you're investing and putting
your money away for a question mark tax rate in
the future that when you need the money, you have
no idea what that tax rate's.

Speaker 2 (13:09):
Going to be.

Speaker 3 (13:09):
You have no idea what that amount is going to
be sent to the irs? So what is going to
be yours? And that's where most people when you start
planning and you start planning on what is actually yours,
and they talk about the irs, and it's theirs, thrs,
the to hrs. And what you really want to think
about here is that when you talk about income and planning,

(13:30):
you want to make sure that you have after tax
accounts given you income so you can plan on it.
That's why roth iras is so important. That's why ROTH
form and KSER is so important. But the traditional ira
is and the tax deferred accounts, these accounts are huge
and there's trillions of dollars there that Uncle Sam knows
how much they're going to get in taxes. But that
means less income to you.

Speaker 2 (13:51):
And basically it can add up to a lot of debts.
So call my office at eight three to three Maggie Tax.
Here's what I want you to do. Tell the operator
that it's urgent that you want to get out of
debt to the irs, and set in a point with
Chris and I eight three to three Maggie Tax. And
make sure you tell them it's urgent because it is.
Because a lot of people don't understand, well, let me
defer it, let me worry about it later in two

(14:13):
years when the Trump tax cuts expired, there's going to
be a lot to worry about. People are going to
be shocked, Chris when they see that they're going to
pay another thirty percent more in taxes. Negative of why,
and this hurts a lot of people. So if you
don't do some proper planning, you're going to be hit
with this tax time bomb, and it's ticking, it's ticking louder.

Speaker 3 (14:29):
So one of the things I can do, because let's
talk about this, when you come in and meet with us,
we're going to help you defuse this big tax time bomb.
We're going to show you how much money you have
in pre tax money and how much you haven't after
tax money. And what if there's a strategy where we
can get the money out of an affected area of
taxes into tax free accounts.

Speaker 2 (14:45):
Would you want to know? That's what we'll do for you.

Speaker 3 (14:47):
So when you come in, we'll look at that investment plan,
and we'll look at the debt that you have on
the investments, and we'll show you how you can have
after tax accounts and do it the most beneficial and
strategic way possible to pay lease amount in taxes.

Speaker 2 (15:00):
So one other way to look at this is many
people look at it through a micro lens, which means
right now today, what about a macro lens later on?
How is it going to affect you. That's proper planning,
that's tax planning, that's income planning. One of the biggest
questions we get, well, I think I'm going to run
out of money. We have millionaire clients that come in here,
and Chris, you can tell the story on these, but

(15:20):
they're worried that they're not going to have enough money
to live on. The problem is they don't have no
plan to get what the income they want. And that's
the problem that a lot of people have. So give
us a call eight three to three Magi Tax. Make
sure you visit our website, Maggie Tax, click on the
retirement calculator and see for yourself. You're going to get
a report back in thirty seconds. We're going to give
you a call, or you call us and let's get together.

(15:41):
So the question you might ask Maggie Tax is how
do I reduce my IRS debt? And there are ways
to reduce your debt to the iras, and now it
may be the perfect time to help you do it.
So eight three to three Magi Tax. Tell the operator
it's urgent and we schedule a meeting to get out
of debt with the IRS. That's what you have to
do to take control. You can't sit in the back

(16:02):
and procrastinate. That's not a retirement plan, and many experts
have said the US is likely entering get to a
period of higher taxes for American savers. So here's the question.
Do you think taxes are going to go up? Or
do you think taxes are going to go down? And
what's the question? Answer we get all the time.

Speaker 3 (16:16):
Most people think the taxes are gonna go up, and
it's gonna happen. And why is so important because that's
what they're talking about. Many experts are talking about how
we're going to enter a period of higher taxes for
Americans and what are you going to do about it?
Think about this, say you're retired. You can't do anything
about it. You're retired. You sound like you're gonna go
back to work and earn more money. Now you're gonna

(16:37):
have to sit there and just bite the bullet on
whatever the tax rate's gonna be.

Speaker 2 (16:40):
Do you want to be in that situation?

Speaker 1 (16:42):
No?

Speaker 3 (16:42):
So what do you do? You need the plan? That's
why it's so important to meet with us. Pick up
the phone, schedule time to meet with us. Eight three
to three, Maggie tax Why because you have a debt
to the IRS, investment debt and it's grown each and
every day, and it's a ticking time bomb and it's
getting louder each and every day. If taxes are higher
in the future, actually, when taxes are higher in the

(17:04):
future than they are today, you will be paying the
IRS a higher share of your retirement assets. Don't let
that happen to you. And remember you have a partner
with IRS. That's why you have investment debt, and that's
why you have an incomplete plan. We can help you.
Pick up the phone, schedule time to meet with us.
We have office on both sides of the bay. Eight
three three, Maggie tax. As my dad mentioned before, tell

(17:26):
the operator that it's urgent. Why because you need to
diffuse your big tax time bomb. And again, you did
a great job of saving, you did a great job
of listening to other people. But the end of the day,
it's gonna hurt you because you have an account that's
infected with taxes. I don't care how much is in there.
I don't care if it's one hundred thousand, I don't
care if it's two million. It doesn't matter. The fact

(17:48):
of the matter is you have a debt, an investment
debt to Uncle Sam. So visit our website maggietax dot com.
Schedule time to meet with us. Let's discuss what options
you have, what you have, put together a plan for you.
Eight three three Maggie Tax.

Speaker 2 (18:03):
One of the things Chris just said about options, there's
something called a strategic rollout, and this is something that
we do with a lot of clients. I know you
don't see what I'm talking about now, but we do
it over a five or ten year period to reduce
the tax so that later on, when you're ready to
take out the IRA, your ire is lower, less tax
And on the other side, you may have a roth

(18:23):
IRA that's tax free. Which would you rather have? So
that's the choice you want to make. So when you
come in, we'll go over with this whole thing with you.
We put a balance sheet together, we have questions for you.
We need to get the right answers from you to
design the plan. Eight three to three Magie Tax. And remember,
the Maggi plan is a tax plan, it's an income plan,
it's an investment plan, it's an insurance plan, and it's
in a state plan. So if you don't have any

(18:45):
documents for a state planning, we can help eight three
to three Magi Tax, be sure to visit our website,
Maggie tax dot com, click on the retirement calculator and
see for yourself. In thirty seconds, you'll get to report
back eight three three Magi Tax. And when you call,
tell the and it's urgent that you want to meet
with Chris and Bobby.

Speaker 1 (19:03):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return 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
a tax free retirement, visit Maggie tax dot com. That's
ma gg I tax dot com or call eight one

(19:25):
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty now your host
for the Maggie Tax and Financial Hour, father and son
from Maggie Tax Advisory and Financial Group, Robert and Chris Maggie.

Speaker 3 (19:41):
Welcome back to the Maggie Tax and Financial Show, and
feel free to visit our website, Maggie Tax dot com.
There's so much information right there at your fingertips. Do
you have a tax plan, do you have an income plan?
Do you have an investment plan, and you know what,
do you have an estate plan? If you said no
to any one of those, you need to listen up
because now time to put together a plan for you

(20:02):
and your family. A three to three Maggi tax. That's
a three to three Maggie tax. There's so much there
that we could talk about. You know, at our firm
we talk about the Maggi plan. You know we're talking
about taxes today, but how do they incorporate with your investments?
If you are paying more in tax, guess what, less
income to you and your family. So are you prepared
for the possibility of higher taxes in retirement? And that's

(20:24):
what we're talking about today. You need to have a plan.
You need to have an investment plan, a tax plan,
and also an income plan. A three to three Magi tax.
Schedule time to meet with us. We have obvious on
both sides of the day ad three to three magi tax.

Speaker 2 (20:37):
And by the way, we do tax preparation. So if
you want to make an appointment, come on in. But
let me mention one thing that happened this week. And
it's really simple. Everyone that works you make income, right,
who's the first one that you have to pay Uncle
Sam Oh. So, so let's just say you make twenty
thousand last year and you make fifty thousand this year,
you've increased by thirty thousand. Is that thirty thousand free, Chris, Nope,

(20:59):
you have to pay on Sam Oh. You have to
pay Uncle Sam. See I'm making light of this because
this is where people getting confused. When I talked about
the five ways that taxes are going to go up,
so many of you assume that your taxes will be
lower in the future. Not true, it's not true. But
as today's retiremies are discovering, that's often not the case.
And we see this every day. In a perfect example

(21:20):
is when you make more money, your tax bracket's going
to go up, you have to pay more. So if
taxes keep going up and the tax brackets keep rising,
you get less. So we can help you understand the
five ways your taxes could go up in retirement. And again,
I have a brochure. If you want to call my office,
just give me your email. I'll be glad to send
it to you in an email and you can see
for yourself. Well, come to one of our seminars and

(21:41):
I'll give you that at the seminar and how we
can help you mitigate that tax risk. Think about that.
Does your advisor talk about mitigating tax risk? Now they
talk about putting more money in another account. So from
the congressional spending to tax bracket changes, you're going to
learn how to position taxes in your retirement. And every
news item out of Washington seems to include details of

(22:04):
a new or expanded tax. Let me ask you a question. So,
the total government revenue in twenty twenty two was four
point nine trillion. That's what the government takes in in
revenue that was in twenty twenty two. Total government spending
in fiscal year twenty two was six point three trillion.
Do the math. It's like, you know, you have a

(22:24):
credit card, you got to pay it back, Okay, but
we're not even paying back half of it. Chris, Well,
that's just said. I mean things you can't control. Right,
we know that the government is spending more. That's not
a topic we want to go into right now.

Speaker 3 (22:35):
It is what it is. They're spending more than they
take in. But what does that mean to you? What
does that mean to me?

Speaker 2 (22:41):
Right? What does it mean to our generation?

Speaker 3 (22:43):
It means that we are going to pay more in
tax because they know how much money you have in iras.
They know how much money you have in form one case,
they know how much money you having a TSP if
you're a federal employee. They know these are all qualified
accounts that are infected with tax so very simple that
you're exposed to tax risk. You're exposed to legislative risk

(23:03):
where they can change the rules. What I mean by
that is they can change the rules on how much
they tax you they tax me. Right, these are things
that we need to start controlling today. And you can
if you put together a tax plan. That's why I
ask you, what's your plan? What's your tax plan? If
you don't have one, now is the time to start
really putting one together. And we can help. So pick

(23:24):
up the phone, schedule time to meet with us. Because
when we put together a tax plan, we can put
together an income plan. And what's better having taxable income
or tax free income, and when you can show a
tax return like we do to our clients in retirement
that I don't care if they increase taxes because our
clients' plans have tax free money. So when they retire

(23:45):
and they take income and government says, well, we need
to pay our deficeit and we need to increase taxes.
Our clients aren't affected by that because they have a
tax plan. That's what we can do for you. So
pick up the phone, schedule time to meet with us.
Eight three three Magi tax. That's eight three three Maggie tax.

Speaker 2 (24:01):
And this is a race that we all must learn
to win where we're ahead of it, not behind it,
because that's when people get in trouble. In at every
seminar that we do, this is the question that we
ask the audience, and I'm asking all of you how
many people think taxes are going up in the future,
and I know everybody raises their hand. Nearly everyone raised
their hands because it's going to go up. So the
point Chris and I are making today is tax planning

(24:23):
is essential. You've got to start thinking about it. Whether
you have low income or a high income, it doesn't
make a difference. Yet, while you understand we've entered it
into a rising tax environment, surprisingly few of you have
used that knowledge to change how you save for retirement.
And if your advisor's not talking to you about this,
which is why we say, go to my retirement calculator
on Maggie tax dot com and see for yourself what

(24:46):
your tax is going to be.

Speaker 3 (24:48):
Chris, that's very important. Well, let's just talk about that.
You know, when we meet with clients, what are we seeing.
We're seeing tons of IRA accounts, tons of Form and
K accounts, tons of these accounts that are deferred. We
see this, and they've been with their advice for years.
They're not doing the right job.

Speaker 2 (25:02):
I'll tell you what.

Speaker 3 (25:02):
Yeah, anyone can manage your money. You can manage yourself
with this market where it's at and the amount of
money they're pumping in and the environment they're playing with
the interest rates, everyone's making money. That's easy. That's the
easy part of it. But what about the end of
the game. You know, when you think about a football
game and you're up at halftime, you're all happy because
you're up by forty points, but guess what, you got
to finish the game. And that's where Uncle Sam comes in,

(25:24):
and that's where he blows it right by you and
you lose forty three to forty because you did not
have a tax plan. So pick up the phone, schedule
time to meet with us. Let's put together an investment plan.
Let's put together an income plan. Let's put together that
tax plan that you need to generate guaranteed safety and
also income in the future. What's wrong with going to
the mailbox every month when you're retired, pick it up

(25:46):
a check and that's tax free money, and spending the
heck out of it and doing it all over again
for the rest of your life.

Speaker 2 (25:51):
How cool would that be?

Speaker 3 (25:52):
Because when you hear the news and hear all the
drama and they talk about, oh my gosh, taxes are
going to go up, tax are the highest it's ever been,
you can say and put a smile on your face
and say that doesn't affect.

Speaker 2 (26:03):
They're not higher, they're lower the lowest point now chorus.

Speaker 3 (26:07):
But how cool could it be in the future when
that happens that you don't have to be affected by it.
That's why we can put together a tax plan eight
three three magi tax. Get the tax plan. We have
office on both sides of the day eight three to
three magi tax.

Speaker 2 (26:19):
So if you all continue to defer taxes, which many
of you do in an IRA four oh, one K
four or three B on all or most of your
retirement assets, you're going to have a large tax bill
to pay, So why would you do that if you
can do strategic planning, or like Chris and I talk
about bucket planning where you have income that may be
tax free, you have growth and you have later money,

(26:41):
but you take that money and you have tax free money.
We can do that. That's what we do. That's called
the Maggie Plan. It's a tax plan, it's an income plan,
it's an investment plan, and it's a legacy plan. And
please one other thing. Many of you don't have a
will or a trust and you sit back and say
I don't need it, because well you do, so visit
one of our seminars. Go on to my website Maggie
tax dot com. We have two seminars a month. Take

(27:03):
a look at the dates and times and locations and come.
There's no obligation, no lunch, no dinner, no nothing, just
explaining to you what this is about. I think that's
more important getting you education and understanding the language than
feeding people. And you know what, I've done that for
years and it's okay, but it's not what I want.
If you want information, then you come to my seminar.
I will give you the information because that's what you need.

(27:25):
So how can we help overcome this disconnect of taxes
and legislative risk? And at Magi Tax, we help our
clients face new risks. People work with Maggi Tax because
we help And here's the word mitigate risk. Chris, does
any advisor are talking about mitigate risk?

Speaker 3 (27:42):
No, they don't talk about that. That that's why it's
so disappointing. Think about it. You don't have clients like
we see this. We meet with clients and they come
in with statements, Yeah it's five hundred thousand, Yeah it's
one point two million, Yeah it's three hundred thousand, Yeah
it's four million. It doesn't matter. At the end of
the day, there's no planning. There's no planning. It's just
investment accounts. You've got piles of money. We're seeing this.
This is what advisors are doing. They're just dealing with investments. Yeah,

(28:04):
you have money. I don't care. The fact of men
is what's the end of the game look like for you?
The tax side of this, because yeah, you can have
four million bucks, but guess what when we run the
tax time calculator and that four million dollars is not
worth four million it's worth two million, or it's worth
two point five million. Guess what, Uncle Sam is your partner?

(28:24):
How do you remove Uncle Sam from your partner forever
and ever and ever? So we can show you how
to do this. So here's the misunderstanding that you just
said that people have. I have a lot of money.
I have two million, I have one million, I have
five hundred thousand.

Speaker 2 (28:36):
No you don't. Here's the question that we ask every
single person that comes into meets with us. How much
income do you need per month? Forget about how much
you have. How much do you need per month? Am
I right or wrong? Yeah? And then where are we
gonna get it from? And then when you start looking
at the numbers and you start budgeting and you start
figuring out, well I only need this amount and I'm okay,

(28:58):
let the risk grow and put on a tax rebase.
Why would you not want to do that? So how
do we do that? It's real simple. We use a process.
We have a process at Maggie Tax. We identify the risk.
And this is so important because older people are taking
more risk than they need to and the advisor's not
talking about risk management. We do. We want to quantify
that risk because maybe you're taking too much risk and

(29:20):
we can reduce the risks. We have more tax free money.
And here's the thing, write this down. We're going to
build a plan to mitigate to mitigate that risk. You
know what, I challenge all of you. Go to your advisor,
go to your CPA, and ask them this question, how
do you mitigate my tax risk? And then be quiet.
I guarantee you they're going to look at you and
going to stare at you, like, what are you talking about?

(29:40):
Mitigate lower the tax risk. So it started with the market.
Savers wanted to and this is what Chris was talking
about before, and they needed the power of the stock
market to grow their funds. It was a simple formula,
there was nothing wrong with it. They put money aside,
invest in the stock market and watch it grow. Oh man,
this is growing great, right Chris? Until it did, until

(30:01):
it didn't, and it's gonna happen again. So during the
market downturn, saviors learned about what risks, what kind of risk?

Speaker 3 (30:08):
Chris, there's different types of market risk, right, inflation risk,
we see that, what about tax risk? These are things
we're talking about. So do you have a plan. Many
people out there, don't They just have piles of money.
You get those statements. You have a pile of money,
big deal, But how is it going to come out?
What's the end of the game look like for that account?
Pick up the phone, schedule time to meet with us.

(30:29):
Let's get together. I urge you to do this because
we see this each and every day many people. They
come in, they think they have a plan and guess
what they don't because when we do tax planning and
tax preparation each and every year, guess what they're paying taxes?
And then they're saying, what can I do?

Speaker 2 (30:44):
Well?

Speaker 3 (30:46):
You follow the crowd. You didn't listen, and you didn't
put together a plan. Now is the time to do it.
Don't follow the crowd. Eight three three Magi tax. That's
a three to three Magi tax. Visit our website at
maggitax dot com. There's so much there to help you.
Eight three three Magi tax. Send an appointment today, eight
three three Magie tax.

Speaker 1 (31:06):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return 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 a
tax free retirement, visit Maggie Tax dot com. That's ma
gg I tax dot com or call eight one three

(31:28):
three two two twenty five twenty. That's eight one three
three two two twenty five twenty. Now your host for
the Maggie Tax and Financial Hour, father and son from
Maggie Tax Advisory and Financial Group, Robert and Chris Maggie.

Speaker 2 (31:44):
Welcome back, and you're listening to the Maggie Tax and
Financial Show. And today we've been talking about tax risk
and legislative risk and a whole bunch of other things.
But what thin I want to bring back this is
for the person out there that you know has been
investing in this for a long time. In the advisor community,
they learn to identify that risk by they created using
fancy terms like alpha and beta. How many people know that?

(32:06):
And the industry helped create tools like Monte Carlo simulations
to quantify that risk for clients. How many know that? Okay,
I'm not worried about that. Finally, advisors would use those
tools to build asset allocation models to mitigate market risk,
not mitigate tax risk. So the question is, every time
we see a client come in, did you open up
your statement? Do you know what you have? And they

(32:26):
say no, I don't. They don't know about alpha, beta
and all this other stuff. They just look at the
bottom line and they look at how many 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 was
he doing? He's just grown your assets. The focus on
accumulating wealth was the primary focus until a few things happened.
The dot com bubble burst, followed shortly there after by

(32:49):
the financial crisis, and suddenly savers were reaching retirement age
with depleted assets and no plan to generate income. And
that problem was compounded by the reality that retires were
living longer than ever. So none of these advisors talked
about future tax free money or income. And I asked
it before, how much income do you need for the
rest of your life to go to that mailbox every

(33:11):
month and get the check that you want. Advisors learn
to 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 to make those funds last.
A lifetime Chris, And that's what we see every day
now because people are confused, they're isolated, and they're angry.

(33:32):
Would you think it's because they got the wrong information,
they were taught the wrong language. Well, this is what's happening.

Speaker 3 (33:37):
People come into tax preparation and guess what when they're
not clients of ours, they're clients of other advisers. They
come in and they say, I want to get a plan,
So we do the taxes for them, and guess what.
They're upset they have to pay a tax liability and
they said, well, my advisor never showed me a tax plan.
So what if you could have a plan where you
have buckets of money? Just think about this for a

(33:58):
sec What if you have buckets of money that have
growth with investments that are allocated the right way to
your risk tolerance. What if you have a couple other
buckets that generate guaranteed income so you can go to
the mailbox each and every month and grab that check
and spend the heck out of it and do it
all over again for the rest of your life. And
what if you have like an inflation bucket, right you
can always tap into so when things hit the fan

(34:20):
you can always tap into and have income so you
don't have to worry about the inflation or running out
of money. Then what if you had those buckets, every
one of them, make sure that they pass to where
you want it to go and avoid the probate process.
Then what if you had some of those buckets that
are tax free, So when you use taxes every year,
you take some from a taxable environment, some from a

(34:41):
tax free and you can stay under the threshold income
so maybe you don't have to file a tax return
or your effective tax rate is very low. That's how
you do planning. What if you can have that, Well,
that's what the Maggie Plans all about. That's the holistic
plan that we do. It's not about just giving your money,
let me manage it for you. Anybody can do that.
There's more to it. So when you think about what's

(35:04):
happening right now, you're following the crowd. You're the same
as every one of people out there, and there's a
small percentage of people out there that actually have what
I just talked about, because there's so many people out
there that don't know what to do. If you're listening today,
I urge you to pick up the phone, schedule a
time to meet with us, get a second opinion on
your plan. Eight three to three magi tax. That's eight

(35:26):
three to three magi tax.

Speaker 2 (35:28):
So the question is how do you make your money
last a lifetime? And what happened? Things change in this industry.
Annuities came out guaranteed income riders that people have. That
was the perfect solution to provide a guaranteed check and
clients could retire and outlive their money. In the year
two thousand, advisors became experts in income planning, addressed this

(35:48):
major concern and that's what we do. And shortly thereafter,
most advisors across the industry were using annuities to offset
income risk. Now don't panic when I say the word annuities,
because if you look at your soul, secure in your pension,
that's an annuity. So think about it. You just don't
understand the language and how they apply, and some may
be bad. I get it, Chris understands. But until you

(36:09):
sit down and see how the annuity process 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 do with Maggie, tax are the reason why
we are successful. Many of you know us. Many of

(36:30):
you come 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 if you do
not have a tax plan or an income plan. And
we can apply the same financial process we use to
address market and income risks. We want to help clients
identify your tax risk, quantifying dollars and cents. That's the

(36:50):
bottom line. People say, Bobby, Chris, how much am I
going to get? Bottom line? And let us find the
tools to reduce that risk. That's up to you. You
have to tell us what's concerning you income, Is it
taxes or it's all the above, Because the biggest thing
we hear, Chris, is the market. The market. Oh it's up,
we're making money. No you're not. You got it's not
all yours until it crashes, and then it crashes. Then

(37:12):
you lose what you lose all that you think you had.
That is not a plan for retirement, Chris, I mean,
I'm sorry I get upset. But this is what people
come in. They think the market is the best thing
in the world for what For growth, yes, but for retirement.
You got to start thinking about change and looking at
it through a different lens.

Speaker 3 (37:28):
Absolutely, and that's where there's the complete process. You know
we talked about early on the show. Yeah, you're up
at halftime and it's great, you're all excited, but guess
what the second half comes around, and that's where Uncle
Sam is.

Speaker 2 (37:39):
He comes out.

Speaker 3 (37:39):
That's a silent partner that's there on the other 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 people retire each and every day.
You retire once, so we retire each and 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 have office on both sides of the Bay.

(37:59):
We do radio show. 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 what we do. You're listening today. If 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.

Speaker 2 (38:20):
We can help.

Speaker 3 (38:21):
What are you doing if you do not have a plan,
You need to get one a three to three magi tax.
We look forward to working with you. Forward a meeting
with you. Get the Maggie Plan tax planning, income planning,
investment planning, social security planning as state planning. Get a
plan you deserve it eight three three magi tax. That's
eight three to three tax.

Speaker 1 (38:41):
You've been listening to the Maggie Tax on Financial Hour
discussing tax planning investment strategy is presented by Robert and
Chris Maggie from Maggie Tax Advisory and Financial Services with
offices in Hillsboro and Panelas County. Visit Maggi Tax dot
com or call eight one three three two two twenty
five twenty that's eight one three three two two twenty

(39:03):
five twenty and tune in next Saturday at five for
the Maggie Tax and Financial Hour