Episode Transcript
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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 (00:52):
Come 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 Tax 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.
(01:15):
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 (01:34):
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 for pair and they go ahead
and just do your tax return. But again, how much
should you convert? So a lot of things you need
(01:56):
to 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
(02:16):
don't 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 Magi Tax Maggi tax
dot com for more information and we can help you.
Speaker 2 (02:35):
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 Roth 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 (02:51):
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 (02:59):
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 to oh one K.
(03:20):
That's why we offer the retirement calculator. We do advanced
tax planning. So now is the time to call eight
three to three Maggie 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 to oh
(03:40):
one K is. Folks, you have a deferred account that
you have not paid taxes on. So strategically, no matter
what age you are, whether you 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, we
enjoy the challenge of minimizing taxes over the long term.
(04:02):
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 4 (04:13):
Well that's it. You know, you want to make sure
you do complete planning.
Speaker 3 (04:16):
And let's talk about some examples here, right, So about
three years ago at a client came in had three
hundred thousand dollars of their IRA money. So what do
we do. We looked at their tax return and he
was receiving Social Security. He had a pension and then
marriage so she was getting sold 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.
(04:36):
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? 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 the three hundred thousand added to
(04:57):
a solid security his pension, and this is what your
tax liability it's 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 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
(05:19):
was supposed to be, and we did and Ron 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 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
(05:41):
he's got eighty five thousand dollars of money after taxes
that he has in 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
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
(06:01):
got many more years to do this until he reaches
his required minium 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
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
(06:22):
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 for his zone. His accounts are
in a safe spot. And guess what, he is in
control of his return.
Speaker 2 (06:35):
Chris, you just gave everyone a reason out there to
pick up the phone and call eight three to three
Maggie 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
(06:56):
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 got 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
(07:19):
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 (07:40):
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 on K and also the Wroth form
on 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
(08:00):
I 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, so now I might want about maybe
(08:20):
another 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 ramifications. 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,
(08:43):
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,
schedule time to meet with us. Eight three to three
Maggie tax and.
Speaker 2 (09:16):
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 to 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 deduction
(09:39):
that you received. This is why tax planning is so important.
This is why the retirement calculate 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. The retirement account is tax deferred
(10:01):
until the money is withdrawn. During your retirement, employers often
contribute a portion of the employer's contributions called a 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,
(10:21):
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
(10:42):
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 three Maggie Tax. That's eight three three Maggie Tax.
Speaker 1 (10:57):
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 Ggi
tax dot com or call eight one three three two
(11:20):
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 (11:35):
Welcome back to the MAGI Tax and Financial Show. I'm
Chris Maggie, I'm here my dad and coast of the
show Robert Maggie. Every Sunday on ABC TV at ten
thirty am, we have our show. It's thirty minutes. It's
a live show. What we do is we we help
people understand their retirement issues from the tax side of it,
from the income side, from the investment side, from the
(11:55):
estate planning. So we do complete planning. And today with
we're focusing on roth conversions. And what is a wroth conversion. Well,
many people out there have iras and formal keys and TSPs.
If you're a federal or a sept plan self employed plan,
these accounts are infected with taxes. They grow tax deferred,
which means when you start taking money out, they have
(12:17):
to hit you with taxes. You get a ten ninety
nine taxable event. So in the future, what can you do?
What are you doing to protect yourself on the income side,
And these are things we're talking about here today to
help you. But you can start converting from the IRA
and get the money out of a taxable environment into
tax free accounts. How do you do that, and that's
(12:37):
what we're discussing today. So Ded, let's talk about the
second question here. How much of your future income will
you need from your investments or sav these accounts.
Speaker 2 (12:46):
And that's a great question that we ask everyone because
you have to tell us what you're looking for. And
when you have a text deferred account with five hundred
thousand or one million dollars, you first thought us, we've
got to take it from there, But do you have
a plan to convert that? So the common portfolio practice
tells us that there's a certain amount of distribution that
an investment portfolio can withstand without depleting itself over time.
(13:10):
What you want to do is have guaranteed income over
your lifetime. So if you're currently distributing a significant percentage
of your IRA on which to pay for living expenses,
and then you have to ask your portfolio to also
pay the taxes for the conversions, you can quickly get
to the no go situation on converting. Now, when I
say that, it's because that's what people think. But there
(13:31):
are ways to convert this where it makes sense to
do it, and we can show you that. So we
like to use a rule of thumb of four percent
as the maximum distribution from your total IRA. And this
does not apply to every situation. So again, when you
meet with us, we're going to go over this and
we're going to show you how it works. But it's
a great starting point to see if you should proceed
with the notion of a conversion. And the reason why
(13:52):
the conversion is so important is because we can show
you strategically over a five or seven year window to
pay that tax and have no tax to pay. And
remember something I said before, when you're saving all your
life for you know, tax retirement, for retirement, you have
a tax deferred account. So when you start taking it
out the R and DS and Chris, the distribution is
(14:13):
so important right now because along with that we look
at the pension solid security and how much do you
really need to make up the difference? And it probably
comes from your IRA, but why not have it come
from a wroth tax free account.
Speaker 3 (14:25):
Well that's just said, so think about this when in
the future you need income. So let's just say you
retire and you get sold security of two thousand a
month and your spouse gets a thousand month, that's three
thousand dollars a month of income. Well, what if you
need five, what do you do? Many people think, well,
let's take it from my IRA. Well that's a two
thousand dollars a month distribution. Well, now you're going to
(14:46):
get a ten ninety nine and that's taxable one hundred
percent taxed. So what if you are able to create
tax free buckets? So maybe you take a thousand from
your IRA and a thousand from your wroth IRA. Now
you have five thousand dollars a month of income. But
guess what you will be under the threshold income, which
means that you won't have to file a tax term
(15:07):
because you won't have to pay any tax. So many
people are thinking, well, how's that happen. Well, many people
don't understand how Social Security is taxed. So in this
situation I just mentioned, you can go ahead and protect
yourself from paying more tax in the future by doing
the planning now, So pick up the phone, schedule time
to meet with us. Let's talk about how you can
(15:28):
create tax free buckets and if you should convert your
money to the rough IRA eight three to three Maggie
tax pick up the phone today. It's so crucial because
tax rates are going to go up. What are you
doing if you have the opportunity to convert, Let's convert
on the most tax efficient way, and we can show
you eight three to three MAGI tax.
Speaker 2 (15:48):
And all of us have a debt to the irs.
So don't don't take that away because you saved on
a tax deferred basis. Now you got to pay the
tax the deal that you save on. And the problem
now is that when taxes go up, and they will,
then most people will not see that Chris, because they
weren't aware of the fact that tax cuts and jobs
actually reduce their taxes years ago. But look right now,
if you have a million dollar IRA, or a five
(16:09):
hundred thousand dollar IRA or a two hundred thousand, I
don't care what's in the IRA of four oh one k,
you need to start thinking about converting because you're going
to pay tax maybe ten to twenty times more than
the tax deduction that you got years ago. So think
about it. You know, I'd rather have tax free money,
and it's it's going to hurt a little bit, But
when you look at it and you say, I have
(16:29):
to pay that tax because then I own it, that's
what you want to do. It's like the mortgage on
your house. You have to pay a mortgage, but when
you pay it off, you own that house. It's the
same thing with your roth account or your RMD or
your IRA. If you pay the tax, then you have
no more rm D, you have no more tax on
Social Security, you have no more ARMA. And if your
advisor's not talking to you about this, or your tax prepairer,
(16:52):
please give us a call. Eight three to three Maggie
Tax eight three three Magi tax. Let Chris and I
run a conversion for you and prove it to you,
and I can go with examples later that I can
show you how we helped a million dollar IRA basically
pay little or no tax, but they got it all
back and now it's a tax free account. Which would
you rather have?
Speaker 3 (17:10):
That's the thing, you know, think about it moving forward.
Tax rates are going to go up. The debt in
this country is high. Where are they going to get
the money? They know how much money you have in
qualified accounts, They know you know. That's what the thing
about it is is that they can increase tax rates
three percent, five percent, eight percent, ten percent in the future.
And guess what that means? More money to them, less
(17:30):
to you. But not if you have tax free buckets,
because then you just eliminated Uncle Sam forever and ever
and ever. Would you want to eliminate Uncle Sam? Absolutely?
If you can, how do you do it? That's the
planning we talk about. So let's do tax planning for you.
Let's do income planning, Let's do investment planning. Let's put
it all together and do a state planning. My gosh,
(17:52):
how many people out there don't have wills or trusts
or power of attorneys where state planning documents? Well, these
are just crucial. And met with a client last week,
five years old. My gosh, has three quarters of a
million dollars and guess what. They have no estate plan,
they have no income plan, they have no investment plan, they.
Speaker 4 (18:08):
Have no tax plan.
Speaker 3 (18:10):
But now they do so because they talked about how
do we convert, how do we put our money in
the right position so we can have tax free money
in the future. They were concerned about the increase in
tax rates. They're concerned about the administration. They're concerned about
the legislative risk. What we mean by that is when
they start changing the tax code just by the it's
written in pencil, they're going to change it. So what
(18:31):
do you do tax planning? Pick up the phone, schedule
time to meet with us. Eight three to three Magi Tax.
We have offices on both sides of the Bay. Visit
our website Maggie Tax dot com. That's m A g
Gi tax dot Com. Once again, schedule time to meet
with us. We look forward to meeting with you and
every Sunday on ABC TV at ten thirty am. Tune
into our show ten thirty am ABC TV on Sunday
(18:54):
for the Magi Tax and Financial Show.
Speaker 4 (18:56):
Eight three to three Magi Tax. That's a three to
three Maggie.
Speaker 1 (19:02):
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 three
(19:25):
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 (19:40):
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 is a time to put together a plan
(20:01):
for you and your family. A three to three Maggie 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
(20:23):
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
Maggi 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?
Speaker 4 (20:49):
Uncle Sam Oh?
Speaker 2 (20:50):
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, you
have to pay Uncle sam Oh. You have to pay
Oncle 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
(21:11):
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 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
(21:32):
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
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
(21:53):
the congressional spending to tax bracket changes, you're going to
learn how to position taxes in your retirement. Every news
item out of Washington seems to include details of 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
(22:14):
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
credit card, you got to pay it back, okay, but
we're not even paying back half of it. Chris, Well,
let's just said. I mean things you can't control.
Speaker 1 (22:30):
Right.
Speaker 3 (22:30):
We know that the government is spending more. That's not
a topic we want to go into right now. 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 (22:40):
Right?
Speaker 4 (22:40):
What does it mean to our generation?
Speaker 3 (22:42):
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. You're
exposed to tax risk. You're exposed to legislative risk where
(23:02):
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 up the phone,
(23:23):
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 and they take income
(23:46):
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 to three
Magi tax. That's eight three to three Maggie tax.
Speaker 2 (24:00):
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
(24:22):
is essential. You've got to start thinking about it, whether
you have low income or 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
(24:42):
Maggie tax dot com and see for yourself what your
tax is going to be.
Speaker 3 (24:47):
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 advisors for years.
Speaker 4 (25:00):
I'm not doing the right job. I'll tell you what. Yeah,
anyone can manage your money. You can manage yourself.
Speaker 3 (25:04):
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,
and that's where he blows it right by you and
(25:25):
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.
Speaker 4 (25:40):
In the future.
Speaker 3 (25:41):
What's wrong with going to the mailbox every month when
you're retired, pick it up 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 4 (25:50):
How cool would that be?
Speaker 3 (25:51):
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 us mile on your face
and say that doesn't affect.
Speaker 2 (26:02):
They're not higher, they're lower the lowest point now, Chris.
Speaker 3 (26:06):
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 (26:18):
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,
(26:40):
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 to my website Maggie tax
(27:00):
dot com. We have two seminars a month. Take 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.
(27:21):
I will give you the information because that's what you need.
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 (27:41):
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 see in them.
This is what advisors are doing. They're just dealing with investments. Yeah,
(28:03):
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.
(28:23):
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?
Speaker 4 (28:49):
Yeah?
Speaker 2 (28:49):
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, let the risk grow
when put on a tax free basis, 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
(29:11):
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 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
(29:33):
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?
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,
(29:54):
invest in the stock market and watch it grow. Oh man,
this is growing great, right, Chris? Until it didn't. Until
it didn't, and it's gonna happen again. So during the
market downturn, saviors learned about what.
Speaker 3 (30:06):
Risks, what kind of risk 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,
(30:27):
schedule time to meet with us. 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?
Speaker 4 (30:42):
And then they're saying, what can I do?
Speaker 2 (30:44):
Well?
Speaker 3 (30:45):
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 Maggie Tax. Send an appointment today eight
three three Maggie Tax.
Speaker 1 (31:07):
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
m a gg I tax dot com or call eight
(31:28):
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 3 (31:44):
Welcome back to the Maggie Tax and Financial Show, and
thank you so much for tuning in. And you know
Asian every week we're we're helping people reduce their taxes.
We're helping people with their tax situation. Regarding tax planning,
you know, tax preparation versus tax planning is a big difference.
We do the tax planning side of this to help
you you income planning, investment planning, and state planning. Wee
can help visit our website at maggietax dot com. Click
(32:06):
on the Retirement Tax Bomb RTB. You have a retirement
tax bomb if you have an IRA Form one K.
These accounts are infected with taxes. So that's what we
talked about today throughout today's show, how to defuse It's
the big tax time bomb that's about to happen if
you have these retirement accounts. So ded what are the
common quotes that we hear people say, and let's deal
(32:27):
with that.
Speaker 2 (32:28):
Well, this is a tax story, so it's affecting everybody
in the most common way we get is don't worry
about it. Don't worry about it. You got to be
kidding me. You have to worry about it, think about it.
You save this, you saved a long time, and then
you think it's yours. Then you got to give it
back to Uncle Sam or the irs. It's just something
you have to deal with. No, that's not true. Either.
You can do tax planning and you could reduce your
(32:51):
tax and have tax free money. So it's something you
should worry about and you'll be in a lower tax
brecket when you retire. No, you won't. Not if the
Trump tax cuts and you see the way they're spending money,
you know, because it's going to cost us more, every
single one of us, and they're going to take it
out of you ira. You four oh one K, you
four three B and that's where the money is going
to come from. Why.
Speaker 3 (33:12):
So that's the big thing. I mean, Uncle Sam knows
how much money is invested in iras. In formal case,
there's a fair market value that they get each and
every year. They know how much there's trillions of dollars
that are before tax that all they have to do
is increase the taxes by a couple of different percentage
points and guess what, that's more revenue. So they know
and they know you're strapped because they know that you
(33:34):
can't do anything about it unless you do planning. So
that's what we're talking about today. If you do not
have a tax plan, if you do not have an
income plan, if you do not have an investment plan,
then pick up the phone, schedule time to meet with us.
Let's show you strategies where you can reduce your taxes.
Let's show you some strategies where you can offset the
money that comes out of an.
Speaker 4 (33:52):
IRA to a roth ira.
Speaker 3 (33:54):
How do you go about doing this, well, we can
help pick up the phone, schedule time to meet with us.
Speaker 4 (33:59):
Eight three three, Maggie.
Speaker 2 (34:00):
Tax.
Speaker 3 (34:01):
We don't want you to hear the stories or your
friends say, hey, don't worry about it, or you're gonna
be in a lower tax bracket in retirement.
Speaker 4 (34:08):
How do they know.
Speaker 3 (34:09):
It's your situation, your situation. So get together with us,
let's put together a plan, and let's show you where
you're at now and where you're going to be in
the future.
Speaker 2 (34:18):
So the story is also tax procrastination. Nobody's worried about
it until you have to worry about it. And most
times when you worry about it is when you do
your taxes every year.
Speaker 3 (34:27):
And it's too late at that point because again, all
you have to file for the previous year. So get
it ahead of it. And that's what we're talking about.
Speaker 2 (34:34):
We call it strategic planning, and you can do that.
So this and this is another thing here. Think about this.
The structure of the four oh one K was always
set up against lower paid or middle class workers from
the very beginning because you're taking money, you're putting in
it tax deferred. Okay, Now you get to retire at
seventy three and you have to take to RMD or
before that, and it's taxable. But many retirees payback decades.
(34:59):
Write this, stay decades worth of tax savings in the
first three to six years of retirement and every three
to six years thereafter. So why are you procrastinating, Why
are you believing those stories that are not true. Take
a stance here and get in front of it. Get
in front of it and do some tax planning. That's
what Chris and I do all the time. And like
I said before, I know this is going to sound weird,
(35:20):
but this over fifteen hundred tax strategies that you can use.
Not that every one of them is going to fit you,
but there are some that you can use. And I'm
telling you right now, you probably don't even know about it.
Christ And that's the mistake people to make it.
Speaker 3 (35:31):
You just don't know what you don't know. So if
you're listening today, you need to know this is your retirement.
Don't get caught up where we've seen clients that they
can't do anything about it because they're stuck. Don't get
stuck in retirement. Get ahead of it. That's what we're
discussing here today. So pick up the phone, schedule time
to meet with us. Let's put together a plan. Let's
look at what you have now'll we tell you. We'll
(35:52):
tell you if you're in a good tax situation or
you're not. We can run a mock tax return right
in front of you, and I can show you what
your future tax is going to be. When you're taking
solid security, you know, when you're taking money from your investments,
when you're taking money from your dividends, whatever it is,
I can show you today what it's going to be,
and then you can say, well, hey, that's not what
I want to pay. I want to pay less. Well,
how do you go about doing it? Then let's put
(36:14):
together a plan and do it for you. AD three
to three, Maggie Tax, get ahead of the game, Magi
tax dot com.
Speaker 2 (36:20):
So let me throw something else at you. The five
risks in retirement. Number one market risk and Chris, I
mean everybody has money, not everybody, but because a lot
of people have money in the market, but it goes up,
it goes down, and when you lose money in the market,
you don't get it back, but you still have to
pay taxes on the game if you do. What about
income risk? How many of you were concerned about how
much income. One of the questions that Chris and I
(36:41):
ask everyone that comes in how much income do you
need at the mailbox every month to live your life?
And that is the most confusing question when we ask
that because people don't think about that because when you retire,
you have to have guaranteed income. What about health risk?
Right now? I had a gentleman the other day. He
called me. He's got a problem with his kid. I
feel very bad for him, but he said, Bobby, I
(37:02):
don't think I have a long time to live, and
I want to make sure my wife is going to
be taken care of. So his health is not good,
but he's got his investments correct and his beneficiary is correct.
He's got a state planning. And I told him, you're okay,
just live your life and just you know, make sure
that if something happens, your wife will be taken care of.
But here's the big one, and we've been talking about it,
Chris and I, tax risk. How many of you know
(37:25):
what your tax is going to be when you retire,
And I'll tell you many of you don't know until
you come in and see Chris and I and are
tax preparers, and we show you that you took out.
Like I said before, a gentleman has to take out
thirty eight thousand of r MD folks, that's all taxable,
all of it, and it could affect your IRMA could
have part be But the last one and this is
the big one. We've been talking about it today, legislative risk. Listen,
(37:48):
Congress wrote the rules in pencil. They're going to change
it every single time, and then this year in the
election it's going to change again.
Speaker 4 (37:55):
And that's just it.
Speaker 3 (37:56):
So what are you doing about it? So pick up
the phone, schedule time to meet with us. My dad
just mentioned and market risk, income risk, health risk, tax risk,
legislative risk. Are you just putting money away and forgetting
about all these risks? You know, what are you doing
about it? So let's help you put together a plan
to help you solve all these risks. So now when
you're in retirement or about to retire, you're ahead of
(38:17):
the game. So whatever happens, it happened, but you'll be
in a better tax situation. So pick up the phone,
schedule time to meet with us. More income on a
tax favored basis, that's what you want. Eight three three
Maggie Tax. Visit our website at Maggie Tax dot com
and don't forget. Every Sunday, tune into ABCTV the Maggie
Tax and Financial Show eight three three Maggie Tax. That's
(38:38):
a three three three tax.
Speaker 1 (38:42):
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 Panela's County. Visit Maggie Tax dot
com or call eight one three three two two twenty
five twenty. That's eight one three three two two twenty
(39:04):
five twenty and tune in next Saturday at five for
the Maggie Tax and Financial Hour
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 (00:52):
Come 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 Tax 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.
(01:15):
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 (01:34):
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 for pair and they go ahead
and just do your tax return. But again, how much
should you convert? So a lot of things you need
(01:56):
to 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
(02:16):
don't 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 Magi Tax Maggi tax
dot com for more information and we can help you.
Speaker 2 (02:35):
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 Roth 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 (02:51):
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 (02:59):
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 to oh one K.
(03:20):
That's why we offer the retirement calculator. We do advanced
tax planning. So now is the time to call eight
three to three Maggie 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 to oh
(03:40):
one K is. Folks, you have a deferred account that
you have not paid taxes on. So strategically, no matter
what age you are, whether you 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, we
enjoy the challenge of minimizing taxes over the long term.
(04:02):
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 4 (04:13):
Well that's it. You know, you want to make sure
you do complete planning.
Speaker 3 (04:16):
And let's talk about some examples here, right, So about
three years ago at a client came in had three
hundred thousand dollars of their IRA money. So what do
we do. We looked at their tax return and he
was receiving Social Security. He had a pension and then
marriage so she was getting sold 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.
(04:36):
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? 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 the three hundred thousand added to
(04:57):
a solid security his pension, and this is what your
tax liability it's 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 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
(05:19):
was supposed to be, and we did and Ron 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 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
(05:41):
he's got eighty five thousand dollars of money after taxes
that he has in 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
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
(06:01):
got many more years to do this until he reaches
his required minium 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
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
(06:22):
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 for his zone. His accounts are
in a safe spot. And guess what, he is in
control of his return.
Speaker 2 (06:35):
Chris, you just gave everyone a reason out there to
pick up the phone and call eight three to three
Maggie 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
(06:56):
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 got 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
(07:19):
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 (07:40):
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 on K and also the Wroth form
on 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
(08:00):
I 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, so now I might want about maybe
(08:20):
another 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 ramifications. 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,
(08:43):
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,
schedule time to meet with us. Eight three to three
Maggie tax and.
Speaker 2 (09:16):
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 to 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 deduction
(09:39):
that you received. This is why tax planning is so important.
This is why the retirement calculate 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. The retirement account is tax deferred
(10:01):
until the money is withdrawn. During your retirement, employers often
contribute a portion of the employer's contributions called a 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,
(10:21):
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
(10:42):
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 three Maggie Tax. That's eight three three Maggie Tax.
Speaker 1 (10:57):
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 Ggi
tax dot com or call eight one three three two
(11:20):
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 (11:35):
Welcome back to the MAGI Tax and Financial Show. I'm
Chris Maggie, I'm here my dad and coast of the
show Robert Maggie. Every Sunday on ABC TV at ten
thirty am, we have our show. It's thirty minutes. It's
a live show. What we do is we we help
people understand their retirement issues from the tax side of it,
from the income side, from the investment side, from the
(11:55):
estate planning. So we do complete planning. And today with
we're focusing on roth conversions. And what is a wroth conversion. Well,
many people out there have iras and formal keys and TSPs.
If you're a federal or a sept plan self employed plan,
these accounts are infected with taxes. They grow tax deferred,
which means when you start taking money out, they have
(12:17):
to hit you with taxes. You get a ten ninety
nine taxable event. So in the future, what can you do?
What are you doing to protect yourself on the income side,
And these are things we're talking about here today to
help you. But you can start converting from the IRA
and get the money out of a taxable environment into
tax free accounts. How do you do that, and that's
(12:37):
what we're discussing today. So Ded, let's talk about the
second question here. How much of your future income will
you need from your investments or sav these accounts.
Speaker 2 (12:46):
And that's a great question that we ask everyone because
you have to tell us what you're looking for. And
when you have a text deferred account with five hundred
thousand or one million dollars, you first thought us, we've
got to take it from there, But do you have
a plan to convert that? So the common portfolio practice
tells us that there's a certain amount of distribution that
an investment portfolio can withstand without depleting itself over time.
(13:10):
What you want to do is have guaranteed income over
your lifetime. So if you're currently distributing a significant percentage
of your IRA on which to pay for living expenses,
and then you have to ask your portfolio to also
pay the taxes for the conversions, you can quickly get
to the no go situation on converting. Now, when I
say that, it's because that's what people think. But there
(13:31):
are ways to convert this where it makes sense to
do it, and we can show you that. So we
like to use a rule of thumb of four percent
as the maximum distribution from your total IRA. And this
does not apply to every situation. So again, when you
meet with us, we're going to go over this and
we're going to show you how it works. But it's
a great starting point to see if you should proceed
with the notion of a conversion. And the reason why
(13:52):
the conversion is so important is because we can show
you strategically over a five or seven year window to
pay that tax and have no tax to pay. And
remember something I said before, when you're saving all your
life for you know, tax retirement, for retirement, you have
a tax deferred account. So when you start taking it
out the R and DS and Chris, the distribution is
(14:13):
so important right now because along with that we look
at the pension solid security and how much do you
really need to make up the difference? And it probably
comes from your IRA, but why not have it come
from a wroth tax free account.
Speaker 3 (14:25):
Well that's just said, so think about this when in
the future you need income. So let's just say you
retire and you get sold security of two thousand a
month and your spouse gets a thousand month, that's three
thousand dollars a month of income. Well, what if you
need five, what do you do? Many people think, well,
let's take it from my IRA. Well that's a two
thousand dollars a month distribution. Well, now you're going to
(14:46):
get a ten ninety nine and that's taxable one hundred
percent taxed. So what if you are able to create
tax free buckets? So maybe you take a thousand from
your IRA and a thousand from your wroth IRA. Now
you have five thousand dollars a month of income. But
guess what you will be under the threshold income, which
means that you won't have to file a tax term
(15:07):
because you won't have to pay any tax. So many
people are thinking, well, how's that happen. Well, many people
don't understand how Social Security is taxed. So in this
situation I just mentioned, you can go ahead and protect
yourself from paying more tax in the future by doing
the planning now, So pick up the phone, schedule time
to meet with us. Let's talk about how you can
(15:28):
create tax free buckets and if you should convert your
money to the rough IRA eight three to three Maggie
tax pick up the phone today. It's so crucial because
tax rates are going to go up. What are you
doing if you have the opportunity to convert, Let's convert
on the most tax efficient way, and we can show
you eight three to three MAGI tax.
Speaker 2 (15:48):
And all of us have a debt to the irs.
So don't don't take that away because you saved on
a tax deferred basis. Now you got to pay the
tax the deal that you save on. And the problem
now is that when taxes go up, and they will,
then most people will not see that Chris, because they
weren't aware of the fact that tax cuts and jobs
actually reduce their taxes years ago. But look right now,
if you have a million dollar IRA, or a five
(16:09):
hundred thousand dollar IRA or a two hundred thousand, I
don't care what's in the IRA of four oh one k,
you need to start thinking about converting because you're going
to pay tax maybe ten to twenty times more than
the tax deduction that you got years ago. So think
about it. You know, I'd rather have tax free money,
and it's it's going to hurt a little bit, But
when you look at it and you say, I have
(16:29):
to pay that tax because then I own it, that's
what you want to do. It's like the mortgage on
your house. You have to pay a mortgage, but when
you pay it off, you own that house. It's the
same thing with your roth account or your RMD or
your IRA. If you pay the tax, then you have
no more rm D, you have no more tax on
Social Security, you have no more ARMA. And if your
advisor's not talking to you about this, or your tax prepairer,
(16:52):
please give us a call. Eight three to three Maggie
Tax eight three three Magi tax. Let Chris and I
run a conversion for you and prove it to you,
and I can go with examples later that I can
show you how we helped a million dollar IRA basically
pay little or no tax, but they got it all
back and now it's a tax free account. Which would
you rather have?
Speaker 3 (17:10):
That's the thing, you know, think about it moving forward.
Tax rates are going to go up. The debt in
this country is high. Where are they going to get
the money? They know how much money you have in
qualified accounts, They know you know. That's what the thing
about it is is that they can increase tax rates
three percent, five percent, eight percent, ten percent in the future.
And guess what that means? More money to them, less
(17:30):
to you. But not if you have tax free buckets,
because then you just eliminated Uncle Sam forever and ever
and ever. Would you want to eliminate Uncle Sam? Absolutely?
If you can, how do you do it? That's the
planning we talk about. So let's do tax planning for you.
Let's do income planning, Let's do investment planning. Let's put
it all together and do a state planning. My gosh,
(17:52):
how many people out there don't have wills or trusts
or power of attorneys where state planning documents? Well, these
are just crucial. And met with a client last week,
five years old. My gosh, has three quarters of a
million dollars and guess what. They have no estate plan,
they have no income plan, they have no investment plan, they.
Speaker 4 (18:08):
Have no tax plan.
Speaker 3 (18:10):
But now they do so because they talked about how
do we convert, how do we put our money in
the right position so we can have tax free money
in the future. They were concerned about the increase in
tax rates. They're concerned about the administration. They're concerned about
the legislative risk. What we mean by that is when
they start changing the tax code just by the it's
written in pencil, they're going to change it. So what
(18:31):
do you do tax planning? Pick up the phone, schedule
time to meet with us. Eight three to three Magi Tax.
We have offices on both sides of the Bay. Visit
our website Maggie Tax dot com. That's m A g
Gi tax dot Com. Once again, schedule time to meet
with us. We look forward to meeting with you and
every Sunday on ABC TV at ten thirty am. Tune
into our show ten thirty am ABC TV on Sunday
(18:54):
for the Magi Tax and Financial Show.
Speaker 4 (18:56):
Eight three to three Magi Tax. That's a three to
three Maggie.
Speaker 1 (19:02):
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 three
(19:25):
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 (19:40):
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 is a time to put together a plan
(20:01):
for you and your family. A three to three Maggie 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
(20:23):
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
Maggi 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?
Speaker 4 (20:49):
Uncle Sam Oh?
Speaker 2 (20:50):
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, you
have to pay Uncle sam Oh. You have to pay
Oncle 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
(21:11):
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 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
(21:32):
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
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
(21:53):
the congressional spending to tax bracket changes, you're going to
learn how to position taxes in your retirement. Every news
item out of Washington seems to include details of 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
(22:14):
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
credit card, you got to pay it back, okay, but
we're not even paying back half of it. Chris, Well,
let's just said. I mean things you can't control.
Speaker 1 (22:30):
Right.
Speaker 3 (22:30):
We know that the government is spending more. That's not
a topic we want to go into right now. 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 (22:40):
Right?
Speaker 4 (22:40):
What does it mean to our generation?
Speaker 3 (22:42):
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. You're
exposed to tax risk. You're exposed to legislative risk where
(23:02):
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 up the phone,
(23:23):
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 and they take income
(23:46):
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 to three
Magi tax. That's eight three to three Maggie tax.
Speaker 2 (24:00):
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
(24:22):
is essential. You've got to start thinking about it, whether
you have low income or 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
(24:42):
Maggie tax dot com and see for yourself what your
tax is going to be.
Speaker 3 (24:47):
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 advisors for years.
Speaker 4 (25:00):
I'm not doing the right job. I'll tell you what. Yeah,
anyone can manage your money. You can manage yourself.
Speaker 3 (25:04):
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,
and that's where he blows it right by you and
(25:25):
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.
Speaker 4 (25:40):
In the future.
Speaker 3 (25:41):
What's wrong with going to the mailbox every month when
you're retired, pick it up 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 4 (25:50):
How cool would that be?
Speaker 3 (25:51):
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 us mile on your face
and say that doesn't affect.
Speaker 2 (26:02):
They're not higher, they're lower the lowest point now, Chris.
Speaker 3 (26:06):
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 (26:18):
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,
(26:40):
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 to my website Maggie tax
(27:00):
dot com. We have two seminars a month. Take 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.
(27:21):
I will give you the information because that's what you need.
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 (27:41):
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 see in them.
This is what advisors are doing. They're just dealing with investments. Yeah,
(28:03):
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.
(28:23):
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?
Speaker 4 (28:49):
Yeah?
Speaker 2 (28:49):
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, let the risk grow
when put on a tax free basis, 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
(29:11):
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 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
(29:33):
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?
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,
(29:54):
invest in the stock market and watch it grow. Oh man,
this is growing great, right, Chris? Until it didn't. Until
it didn't, and it's gonna happen again. So during the
market downturn, saviors learned about what.
Speaker 3 (30:06):
Risks, what kind of risk 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,
(30:27):
schedule time to meet with us. 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?
Speaker 4 (30:42):
And then they're saying, what can I do?
Speaker 2 (30:44):
Well?
Speaker 3 (30:45):
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 Maggie Tax. Send an appointment today eight
three three Maggie Tax.
Speaker 1 (31:07):
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
m a gg I tax dot com or call eight
(31:28):
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 3 (31:44):
Welcome back to the Maggie Tax and Financial Show, and
thank you so much for tuning in. And you know
Asian every week we're we're helping people reduce their taxes.
We're helping people with their tax situation. Regarding tax planning,
you know, tax preparation versus tax planning is a big difference.
We do the tax planning side of this to help
you you income planning, investment planning, and state planning. Wee
can help visit our website at maggietax dot com. Click
(32:06):
on the Retirement Tax Bomb RTB. You have a retirement
tax bomb if you have an IRA Form one K.
These accounts are infected with taxes. So that's what we
talked about today throughout today's show, how to defuse It's
the big tax time bomb that's about to happen if
you have these retirement accounts. So ded what are the
common quotes that we hear people say, and let's deal
(32:27):
with that.
Speaker 2 (32:28):
Well, this is a tax story, so it's affecting everybody
in the most common way we get is don't worry
about it. Don't worry about it. You got to be
kidding me. You have to worry about it, think about it.
You save this, you saved a long time, and then
you think it's yours. Then you got to give it
back to Uncle Sam or the irs. It's just something
you have to deal with. No, that's not true. Either.
You can do tax planning and you could reduce your
(32:51):
tax and have tax free money. So it's something you
should worry about and you'll be in a lower tax
brecket when you retire. No, you won't. Not if the
Trump tax cuts and you see the way they're spending money,
you know, because it's going to cost us more, every
single one of us, and they're going to take it
out of you ira. You four oh one K, you
four three B and that's where the money is going
to come from. Why.
Speaker 3 (33:12):
So that's the big thing. I mean, Uncle Sam knows
how much money is invested in iras. In formal case,
there's a fair market value that they get each and
every year. They know how much there's trillions of dollars
that are before tax that all they have to do
is increase the taxes by a couple of different percentage
points and guess what, that's more revenue. So they know
and they know you're strapped because they know that you
(33:34):
can't do anything about it unless you do planning. So
that's what we're talking about today. If you do not
have a tax plan, if you do not have an
income plan, if you do not have an investment plan,
then pick up the phone, schedule time to meet with us.
Let's show you strategies where you can reduce your taxes.
Let's show you some strategies where you can offset the
money that comes out of an.
Speaker 4 (33:52):
IRA to a roth ira.
Speaker 3 (33:54):
How do you go about doing this, well, we can
help pick up the phone, schedule time to meet with us.
Speaker 4 (33:59):
Eight three three, Maggie.
Speaker 2 (34:00):
Tax.
Speaker 3 (34:01):
We don't want you to hear the stories or your
friends say, hey, don't worry about it, or you're gonna
be in a lower tax bracket in retirement.
Speaker 4 (34:08):
How do they know.
Speaker 3 (34:09):
It's your situation, your situation. So get together with us,
let's put together a plan, and let's show you where
you're at now and where you're going to be in
the future.
Speaker 2 (34:18):
So the story is also tax procrastination. Nobody's worried about
it until you have to worry about it. And most
times when you worry about it is when you do
your taxes every year.
Speaker 3 (34:27):
And it's too late at that point because again, all
you have to file for the previous year. So get
it ahead of it. And that's what we're talking about.
Speaker 2 (34:34):
We call it strategic planning, and you can do that.
So this and this is another thing here. Think about this.
The structure of the four oh one K was always
set up against lower paid or middle class workers from
the very beginning because you're taking money, you're putting in
it tax deferred. Okay, Now you get to retire at
seventy three and you have to take to RMD or
before that, and it's taxable. But many retirees payback decades.
(34:59):
Write this, stay decades worth of tax savings in the
first three to six years of retirement and every three
to six years thereafter. So why are you procrastinating, Why
are you believing those stories that are not true. Take
a stance here and get in front of it. Get
in front of it and do some tax planning. That's
what Chris and I do all the time. And like
I said before, I know this is going to sound weird,
(35:20):
but this over fifteen hundred tax strategies that you can use.
Not that every one of them is going to fit you,
but there are some that you can use. And I'm
telling you right now, you probably don't even know about it.
Christ And that's the mistake people to make it.
Speaker 3 (35:31):
You just don't know what you don't know. So if
you're listening today, you need to know this is your retirement.
Don't get caught up where we've seen clients that they
can't do anything about it because they're stuck. Don't get
stuck in retirement. Get ahead of it. That's what we're
discussing here today. So pick up the phone, schedule time
to meet with us. Let's put together a plan. Let's
look at what you have now'll we tell you. We'll
(35:52):
tell you if you're in a good tax situation or
you're not. We can run a mock tax return right
in front of you, and I can show you what
your future tax is going to be. When you're taking
solid security, you know, when you're taking money from your investments,
when you're taking money from your dividends, whatever it is,
I can show you today what it's going to be,
and then you can say, well, hey, that's not what
I want to pay. I want to pay less. Well,
how do you go about doing it? Then let's put
(36:14):
together a plan and do it for you. AD three
to three, Maggie Tax, get ahead of the game, Magi
tax dot com.
Speaker 2 (36:20):
So let me throw something else at you. The five
risks in retirement. Number one market risk and Chris, I
mean everybody has money, not everybody, but because a lot
of people have money in the market, but it goes up,
it goes down, and when you lose money in the market,
you don't get it back, but you still have to
pay taxes on the game if you do. What about
income risk? How many of you were concerned about how
much income. One of the questions that Chris and I
(36:41):
ask everyone that comes in how much income do you
need at the mailbox every month to live your life?
And that is the most confusing question when we ask
that because people don't think about that because when you retire,
you have to have guaranteed income. What about health risk?
Right now? I had a gentleman the other day. He
called me. He's got a problem with his kid. I
feel very bad for him, but he said, Bobby, I
(37:02):
don't think I have a long time to live, and
I want to make sure my wife is going to
be taken care of. So his health is not good,
but he's got his investments correct and his beneficiary is correct.
He's got a state planning. And I told him, you're okay,
just live your life and just you know, make sure
that if something happens, your wife will be taken care of.
But here's the big one, and we've been talking about it,
Chris and I, tax risk. How many of you know
(37:25):
what your tax is going to be when you retire,
And I'll tell you many of you don't know until
you come in and see Chris and I and are
tax preparers, and we show you that you took out.
Like I said before, a gentleman has to take out
thirty eight thousand of r MD folks, that's all taxable,
all of it, and it could affect your IRMA could
have part be But the last one and this is
the big one. We've been talking about it today, legislative risk. Listen,
(37:48):
Congress wrote the rules in pencil. They're going to change
it every single time, and then this year in the
election it's going to change again.
Speaker 4 (37:55):
And that's just it.
Speaker 3 (37:56):
So what are you doing about it? So pick up
the phone, schedule time to meet with us. My dad
just mentioned and market risk, income risk, health risk, tax risk,
legislative risk. Are you just putting money away and forgetting
about all these risks? You know, what are you doing
about it? So let's help you put together a plan
to help you solve all these risks. So now when
you're in retirement or about to retire, you're ahead of
(38:17):
the game. So whatever happens, it happened, but you'll be
in a better tax situation. So pick up the phone,
schedule time to meet with us. More income on a
tax favored basis, that's what you want. Eight three three
Maggie Tax. Visit our website at Maggie Tax dot com
and don't forget. Every Sunday, tune into ABCTV the Maggie
Tax and Financial Show eight three three Maggie Tax. That's
(38:38):
a three three three tax.
Speaker 1 (38:42):
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 Panela's County. Visit Maggie Tax dot
com or call eight one three three two two twenty
five twenty. That's eight one three three two two twenty
(39:04):
five twenty and tune in next Saturday at five for
the Maggie Tax and Financial Hour
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