Episode 20251108 - IRA and Roth Conversions

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Episode Transcript

Speaker 1 (00:00):
All these years you've saved up planning for a secure retirement,
but if you're not careful, it will be the irs
that is living it up when you retire by taxing
your hard earned money. Welcome to the Maggie Tax and
Financial Show with Robert and Chris Maggie of Maggie Tax
and Wealth Advisors. With over four decades of combined experience
and tax savings, income planning, and investment opportunities, Robert and

(00:22):
Chris share advice and tax planning strategies designed to protect
your retirement nestay from Uncle Sam. Call them at eight
three three Maggie Tax or online at Maggie Tax dot
com and now your host for the Maggie Tax and
Financial Show, Robert and Chris Maggie.

Speaker 2 (00:41):
Welcome everyone, and thanks for joining us today. My name
is Robert Maggie and I'm here with my son and
co host, Chris Maggie. Visit our website, Maggie Tax dot com.
There's a lot of information there. Click on the retirement
calculator if you have an IRA or a four oh
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.

(01:04):
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 (01:23):
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 modification is going to be. You
go to your tax prepair and they go ahead and
just do your tax return. But again, how much should
you convert? So a lot of things you need to

(01:45):
be aware of when you do convert. It's not just
what everyone should do. Some people should do it, some
people should not. So that's why it's so important to
work with the right advisor who understands investments and income
planning and tax planning because if you do it the
wrong way, you're going to get this tax bill that
you owe thousands of thousands of dollars for taxes. And
it doesn't have to be that way, So you don't

(02:05):
want to be surprised. And that's what we want to
talk about today. Is a Roth conversion right for you?
Should you do it? And those are things that many
people have questions on. So visit our website at Maggie
Tax dot com, pick up the phone, schedule time to
meet with us eight three three Maggie Tax Maggi tax
dot com for more information and we can help you.

Speaker 2 (02:24):
And one of the things that we do that other
advisors do not do is we do it from a
tax return. So if you're thinking of a rough conversion,
don't just go to your tax guy and convert the
money and then pay the big tax. Do it strategically
and have a plan. Here's the question, is it tax
season right now? Chris?

Speaker 3 (02:40):
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 (02:48):
And the reason why I asked that question because at
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 a four oh

(03:08):
one K. That's why we offer the retirement calculator. We
do advanced tax planning, So now is the time to
call eight three to three Magi 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

(03:29):
oh 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.

(03:51):
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 with they just
committed to buy a stock bond on mutual fund. Well
that's it.

Speaker 3 (04:03):
You know, you want to make sure you do complete
planning and get 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 solid security. He had a pension
and then marriage so she was getting solid security as well.
So they had three income streams. They were getting about
five thousand dollars a month of income, very satisfied covered

(04:24):
their need. But they had three hundred thousand dollars of
IRA money. So this account is fully infected with taxes.
And he said to me, he said, what do we
need to do to get this money out in the
most tax efficient way? 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

(04:45):
added to a solid security his pension, and this is
what your tax liability is going to be. So he
sat back and it was kind of sticker shocked, and
he said, I don't want to do that, and I said,
you don't have to. Let's run some more. So what
I did was do some strategic planning. And what he
did was we took out thirty thousand dollars a year
for the next seven years, as with a plan was

(05:07):
what it 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.

Speaker 2 (05:27):
So over the.

Speaker 3 (05:28):
Past three years now he's got eighty five thousand dollars
of money after taxes that he has an a tax
free zone, plus the interest, which is more than when
he converted. So now he's up to over one hundred
and five thousand dollars of 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

(05:48):
money in the future. So we got many more years
to do this until he reaches his required minium distribution age,
which is aged seventy three for him. So he is
on a great path moving forward. 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

(06:10):
the Medicare tax, like that's what IRMA is, increase of
Part B premium. And he's sitting pretty. He's got his
income coming in every month. He's converting money to a
tax for his zone. His accounts are in a safe
spot and guess what, he is in control of his return.

Speaker 2 (06:24):
Chris, you just gave everyone a reason out there to
pick up the phone and call eight three to three
Magie Tax. Because there are situations that Chris is talking
about where a long term tax strategy may save you money.
The only thing is you don't know and you don't
see it, even though it requires paying more taxes in
the short term. That's where tax planning comes in and
what Chris and I do, that's what we do advanced

(06:45):
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 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

(07:08):
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 (07:29):
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 one K and also the Wroth Form
o 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

(07:49):
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 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, toron now I might want about maybe another

(08:10):
five hundred dollars a month of income. So I ran
another mock tax return and I showed him if we
take five hundred dollars from his IRA money, this is
a tax for invocations. 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.

Speaker 2 (08:27):
And he was blown away.

Speaker 3 (08:28):
They both wore and they said, this is exactly what
we're looking for. This is a plan. 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

(08:48):
put that together where he has an estate plan, he's
got proper beneficiary designation, he's got an estate plan, his house,
his assets, everything's going to avoid probate and go to
where they wanted to go. So that can happen to
you too. Just pick up the phone and schedule time
to meet with us. Eight three to three Maggie tax.

Speaker 2 (09:05):
And one other point traditional four and one k's They
became available in nineteen seventy eight as a way to
save for retirement. But the four and one K was
the biggest disappointment created. And think about this. You get
a tax deduction on the front end, and you get
that for many years, and that's great, but when you
start to withdraw the money, you're going to be paying
it all back for many years and you're going to
be paying three to five times more than the tax

(09:27):
deduction 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

(09:49):
deferred 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 And then when you start talking about
with drolls, 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, seventy five,

(10:10):
how much and how much is it going to affect
your income? This is why tax planning is so important.
Right now, pick up the phone eight three 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 preparer 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

(10:31):
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 (10:49):
Stop funding Uncle Sam's retirement and start planning for your
own successful retirement. As we return to The Maggie Tax
Financial Show with your host Robert and Chris Maggie with
Meaggie Tax and Wealth Advisors for information on how you
can create a tax free retirement. Call eight three three
Maggie Tax, or visit Maggie Tax dot com. Now you're

(11:11):
host with Maggie Tax and Wealth Advisors. Robert and Chris Maggie.

Speaker 3 (11:16):
Welcome back to the Maggie Tax and Financial Show. And
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 help
people understand their retirement issues from the tax side of it,
from the income side, from the investment side, from the

(11:36):
estate planning. So we do complete planning. And today we're
focusing on roth conversions. And what is a roth conversion. Well,
many people out there have iras and formal keys and TSPs.
If you're a federal or a sept planned self employed plan,
these accounts are infected with taxes. They grow tax deferred,
which means when you start taking money out, they have

(11:58):
to hit you with taxes. You get a ten nine
taxable event. So in the future, what can you do?
What are you doing to protect yourself on the income
side and these 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.

Speaker 2 (12:17):
How do you do that?

Speaker 3 (12:18):
And that's what we're discussing today. So Dad, 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 (12:27):
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 a million dollars. Your first thought is 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.

(12:50):
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

(13:11):
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

(13:33):
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 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 so important

(13:55):
right now because along with that we look at the pensions,
so security and how much do you really need to
make up the difference in that it probably comes from
your IRA, but why not have it come from a
wroth tax free account.

Speaker 3 (14:06):
Well that's just say 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 a month. That's
three thousand dollars a month of income. Well what if
you need five what do you do? Many people think, well,
I'll just take it from my IRA. Well that's a
two thousand dollars a month distribution. Well, now you're going

(14:27):
to get a ten ninety nine and that's taxable one
hundred percent taxed. So what if you were able to
create tax free buckets? So maybe you take a thousand
from your IRA in 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

(14:48):
term 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 solid security is taxed. So in
this in this situation I just mentioned, you can go
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 create tax free buckets and if

(15:11):
you should convert your money to the roth ira eight
three three Maggie.

Speaker 2 (15:15):
Tax.

Speaker 3 (15:15):
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 three Magi tax.

Speaker 2 (15:28):
And all of us have a debt to the irs,
so don't take that away because you saved on a
tax deferred basis. Now you've got to pay the tax
that they'll let 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 act
to reduce their taxes years ago. But look right now,
if you have a million dollar IRA or a five

(15:50):
hundred thousand dollar IRA or a two hundred thousand I
don't care what's in the IRA of four to 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

(16:10):
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 ARM. And if your
advisor's not talking to you about this or your tax prepairer,

(16:33):
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 (16:51):
That's the thing, you know, think about it? Moving forward,
tax rates are going to go up. The debtonus 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 to you.

(17:12):
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, how many people out

(17:33):
there don't have wills or trusts or power of attorneys
or state planning documents. Well, these are just crucial. And
I met with a client last week, sixty 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 have no
tax plan. But now they do so because they talked
about how do we convert, how do we put our

(17:55):
money in the right position so we can have tax
free money in the future. They were concerned about out
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 do you do tax planning? Pick up the phone,
schedule time to meet with us eight three to three.

(18:16):
Maggie 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 for the Maggie Tax and Financial Show eight three

(18:37):
to three Maggie Tax. That's eight three to three Magi Tax.

Speaker 1 (18:43):
Stop funding Uncle Sam's retirement and start planning for your
own successful retirement as we return to the Maggie Tax
Financial Show with your host Robert and Chris. Maggie with
Maggie Tax and Wealth Advisors. For information on how you
can create a tax free retirement, call eight three three
three Maggie Tax, or visit Maggie tax dot com. Now

(19:05):
you're host with Maggie Tax and Wealth Advisors, Robert and Chris.

Speaker 2 (19:08):
Maggie.

Speaker 3 (19:09):
Welcome back to the Magi 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's the time to put together a plan for

(19:31):
you and your family a three to three MAGI 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 Maggie 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

(19:53):
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. Eight three to three mag
attack schedule time to meet with us. We have obvious
on both sides of the day aid three to three
magi tax and.

Speaker 2 (20:06):
By the way, we do tax preparations. So if you
want to make an appointment, come on in. But let
me mention one thing that happened this week. And it's
really simple. Everyone that works you make income, right, who's
the first one that you have to pay? Uncle Sam? Oh?
So 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

(20:28):
have to pay Uncle Sam. Oh, you have to pay
Uncle Sam. See I'm making light of this because this
is where people getting confused. When I talked about the
five ways that taxes are going to go up, so
many of you assume that your taxes will be lower
in the future. Not true, it's not true. But as
today's retirees are discovering, that's often not the case. And
we see this every day. In a perfect example is

(20:49):
when you make more money, your tax bracket's gonna 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 can could go up in retirement. And again, I
have a brochure. If you want to call my office,
just give me your email. I'll be glad to send
it to you in an email and you can see
for yourself. Well, come to one of our seminars and

(21:09):
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? No, they
talk about, you know, putting more money in another account.
So from the congressional spending to tax bracket changes. You're
going to learn how to position taxes in your retirement.
And every news item out of watching con seems to

(21:31):
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 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,

(21:52):
you know you have a credit card, you got to
pay it back, okay, but we're not even paying back
half of it.

Speaker 3 (21:57):
Chris, Well, that's just said. I mean things you can't control.
We know that the government is spending more. That's not
a topic we want to go into right now.

Speaker 2 (22:03):
Is what it is.

Speaker 3 (22:04):
They're spending more than they take in. But what does
that mean to you? What does that mean to me?

Speaker 2 (22:09):
Right? What does it mean to our generation?

Speaker 3 (22:12):
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 formal case,
they know how much money you have in a TSP.

Speaker 2 (22:21):
If you're a federal employee.

Speaker 3 (22:23):
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 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.

(22:44):
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, 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,

(23:07):
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 and government says, well, we need to
pay our deficet 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 a time to meet with us. Eight

(23:27):
three to three Maggie Tax. That's eight three three Maggie Tax.

Speaker 2 (23:30):
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 it. 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

(23:52):
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 rousing 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

(24:12):
Maggie tax dot com and see for yourself what your
tax is going to be. Chris, that's very important.

Speaker 3 (24:18):
Well, let's just talk about that. You know, when we
meet with clients. What are we seeing. We're seeing tons
of RRAH accounts, tons of form with K accounts, tons
of these accounts that are deferred. We see this and
they've been with their advisors for years. They're not doing
the right job. I'll tell you what. Yeah, anyone can
manage your money. You can manage yourself. With this market
where it's at and the amount of money they're pumping
in and the environment they're playing with the interest rates,

(24:40):
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've got to finish the game. And
that's where Uncle Sam comes in, and that's where he
blows it right by you and you lose forty three
to forty because you did not have a tax plan.
So pick up the phone, schedule time to meet with us.

(25:01):
Let's put together an investment plan, Let's put together an
income plan. Let's put together that tax plan that you
need to generate guaranteed safety and also income in the future.
What's wrong with going to the mailbox every month when
you're retired, pick it up a check and that's tax
free money and spending the heck out of it and
doing it all over again for the rest of your life.

Speaker 2 (25:19):
How cool would that be?

Speaker 3 (25:21):
Because when you hear the news and hear all the
drama and they talk about, oh my gosh, taxes are
going to go up. Tax are the highest it's ever been,
you can say and put a smile on your face
and say that doesn't affect.

Speaker 2 (25:32):
Not higher, they're lower is the lowest point.

Speaker 3 (25:35):
But how cool could it be when 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 bay eight three to
three magi tax.

Speaker 2 (25:48):
So if you all continue to defer taxes, which many
of you do in an IRA four to 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,

(26:10):
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

(26:30):
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.

(26:51):
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. Maggie Tax We help our clients face
new risks. People work with Maggie Tax because we help.
And here's the word mitigate risk. Chris, does any advisor
are talking about mitigate risk? No, they don't talk about that.

(27:12):
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.

Speaker 3 (27:22):
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 see in this. This is
what advisors are doing. They're just dealing with investments. Yeah,
you have money.

Speaker 2 (27:33):
I don't care. The fact of the man is what's
the end of the game look like for you?

Speaker 3 (27:37):
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.
How do you remove Uncle Sam from your partner forever
and ever and ever?

Speaker 2 (27:58):
So we can show you how to do this. So
here's is understanding 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. 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

(28:18):
or wrong? And then where we going to 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 and 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

(28:40):
more risk than they need to and the advisor's not
talking about risk management we do. We want to quantify
that risk because maybe you're taking too much risk and
we can reduce the risks you 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
advice or go to your CPA and ask them this question,

(29:02):
how do you mitigate my tax risk? And then be quiet.
I guarantee you they're going to look at you and
gonna 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,

(29:23):
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, savers learned about what risks, what kind of
risk Chris, there's different types. Are at market risk? Right?

Speaker 3 (29:39):
Inflation risk? We see that, What about tax risk? These
are things we're talking about. So do you have a plan?
Many people out there don't. They just have piles of money.
You get those statements. You have a pile of money,
big deal, But how is it going to come out.
What's the end of the game look like for that account,
pick up the phone, schedule time to meet with us.
Let's get together. I urge you to do this because

(30:01):
we see this each and every day. Many people. They
come in, they think they have a plan, and guess
what they don't because when we do tax planning and
tax preparation each and every year, guess what they're paying taxes?
And then they're saying, what can I do?

Speaker 2 (30:13):
Well?

Speaker 3 (30:15):
You follow the crowd. You didn't listen and you didn't
put together a plan. Now's the time to do it.
Don't follow the crowd. Eight three three Maggie Tax. That's
a three three Maggie Tax. Visit our website at Maggie
tax dot com. There's so much there to help you.
Eight three three Magi Tax. Send apployment today. Eight three
three Magi Tax.

Speaker 1 (30:36):
Stop funding Uncle Sam's retirement and start planning for your
own successful retirement. As we return to the Maggie Tax
Financial Show with your host Robert and Chris, Maggie with
Maggie Tax and Wealth Advisors for information on how you
can create a tax free retirement. Call eight three three
Magie Tax, or visit Maggie Tax dot com. Now your

(30:58):
host with Maggie Tax and Wealth Advisors Robert and Chris Maggie.

Speaker 2 (31:02):
Welcome back, and you're listening to the MAGA Tax and
Financial Show. And today we've been talking about tax risk
and legislative risk and a whole bunch of other things.
But what thing I want to bring back this is
for the person out there that has been investing in
this for a long time. In the advisor community, they
learn to identify that risk by they created using fancy
terms like alpha and beta. How many people know that?

(31:24):
And the industry helped create tools like Monte Carlo simulations
to quantify that risk for clients? How many know that? Okay,
I'm not worried about that. Finally, advisors would use those
tools to build asset allocation models to mitigate market risk,
not mitigate tax risk. So the question is every time
we see a client come in, did you open up
your statement? Do you know what you have? And they

(31:45):
say no, I don't. They don't know about alpha, beta
and all this other stuff. They just look at the
bottom line and they look at how many fees they're paying. Well,
what is the advisor doing for you? He's not doing
tax risk, he's not doing income risk, so what was
he doing he's just grown your assets. The focus on
accumulating wealth was the primary focus until a few things happened.
The dot com bubble burst, followed shortly there after by

(32:07):
the financial crisis, and suddenly savers were reaching retirement age
with depleted assets and no plan to generate income. And
that problem was compounded by the reality that retirees were
living longer than ever. So none of these advisors talked
about future tax free money or income. And I asked
it before, how much income do you need for the
rest of your life to go to that mailbox every

(32:29):
month and get the check that you want. Advisors learned
to identify that income risk or a longevity risk. That's
what we do. And suddenly it wasn't enough to just
accumulate funds. Savers needed a plan to make those funds
last a lifetime. Chris, And that's what we see every
day now because people are confused, they're isolated, and they're angry.

(32:50):
Would you think it's because they got the wrong information,
they were taught the wrong language. Well, this is what's happening.

Speaker 3 (32:55):
People come into tax preparation and guess what, when they're
not clients savars, their clients of other advisors and they
come in and they say, I want to get a plan,
So we do the taxes for them, and guess what,
they're upset they have to pay a tax liability. And
they said, well, my advisor never showed me a tax plan.
So what if you could have a plan where you
have buckets of money? Just think about this for a

(33:16):
sec What if you have a buckets of money that
have growth with investments that are allocated the right way
to your risk tolerance. What if you have a couple
other buckets that generate guaranteed income so you can go
to the mailbox each and every month and grab that
check and spend the heck out of it and do
it all over again for the rest of your life.
And what if you have like an inflation bucket, right
you can always tap into so when things hit the fan,

(33:38):
you can always tap into and have income so you
don't have to worry about the inflation or running out
of money. Then what if you had those buckets, every
one of them, make sure that they pass to where
you wanted to go and avoid the probate process. Then
what if you had some of those buckets that are
tax free, so when you use taxes every year, you
take some from a taxable environment from a tax free

(34:01):
and you can stay under the threshold income. So maybe
you don't have to file a tax return or your
effective tax rate is very low. That's how you do planning.
What if you can have that, Well, that's what the
Maggie plans all about. That's the holistic plan that we do.
It's not about just give me your money, let me
manage it for you. Anybody can do that. There's more
to it. So when you think about what's happening right now,

(34:24):
you're following the crowd. You're the same as every one
of people out there, and there's a small percentage of
people out there that actually have what I just talked
about because there's so many people out there that don't
know what to do. If you're listening today, I urge
you to pick up the phone, schedule time to meet
with us, get a second opinion on your plan. Eight
three to three MAGI tax. That's eight three to three

(34:45):
Maggie tax.

Speaker 2 (34:46):
So the question is how do you make your money
last a lifetime? And what happened things change in this industry.
Annuities came out guaranteed income riders that people have. That
was the perfect solution to provide a guaranteed check and
clients could retire and outlive their money. In the year
two thousand, advisors became experts in income planning, addressed this

(35:07):
major concern and that's what we do. And shortly thereafter,
most advisors across the industry were using annuities to offset
income risk. Now, don't panic when I say the word annuities,
because if you look at your Social Security and your pension,
that is that's an annuity. So think about it. You
just don't understand the language and how they apply. And
some may be bad. I get it. Chris understands. But

(35:27):
until you sit down and see how the annuity process works.
You want guaranteed income for life, you want a certain amount,
we can help you. So today the headlines are all
about taxes, all right. They just bypassed everything. They shoved
it under the blanket. Advisors who understand tax risks today
like we do with Maggie, tax are the reason why
we are successful. Many of you know us. Many of

(35:48):
you come in and see us and you understand the plan,
and we do complete planning. And I'll say it again,
you do not have a complete plan if you do
not have a tax plan or an income plan, and
we can apply the same financial process we used to
address market and income risks. We want to help clients
identify your tax risk, quantifying dollars and cents. That's the

(36:08):
bottom line. People say, Bobby, Chris, how much am I
going to get? Bottom line? And let us find the
tools to reduce that risk. That's up to you. You
have to tell us what's concerning you income, Is it
taxes or it's all the above, Because the biggest thing
we hear, Chris, is the market. The market. Oh, it's up,
we're making money. No, you're not. You got It's not
all yours until it crashes, and then it crashes. Then

(36:30):
you lose what, you lose all that you think you had.
That is not a plan for retirement, Chris. I mean,
I'm sorry, I get upset, but this is what people
come in. They think the market is the best thing
in the world for what For growth, yes, but for
retirement you got to start thinking about change and looking
at it through a different lens.

Speaker 3 (36:47):
Absolutely, And that's where there's the complete process. You know
we talked about early in the show. Yeah, you're up
at halftime and it's great, you're all excited, but guess what.
The second half comes around, and that's where Uncle Sam is.
He comes out. That's a silent partner that's there on
the other team that you do not see. And that's
what we're showing you today. So when we think about
big picture, we get it. We have people retire each
and every day. You retire once, so we retire each

(37:10):
and every day and we can show you how it's
going to look. So pick up the phone and schedule
time to meet with us. We have office on both
sides of the Bay. We do a radio show. Obviously,
we do a TV show every Sunday on ABC TV
at ten thirty am. Tune in watch. Go to our
website Maggie Tax dot com. See what we do. You're
listening today. If you do not have a plan, we

(37:31):
can help. If you want an income plan, a tax plan,
an investment plan, and a state plan, a social Security
maximization plan, we can help.

Speaker 2 (37:39):
What are you doing?

Speaker 3 (37:41):
If you do not have a plan, you need to
get one a three to three Maggi tax.

Speaker 2 (37:45):
We look forward to working with you. Forward a meeting with.

Speaker 3 (37:47):
You get the Maggie Plan, tax planning, income planning, investment planning,
soial security planning.

Speaker 2 (37:52):
A state planning. Get eight planned.

Speaker 3 (37:54):
You deserve eight three three mag Attacks that's eight three
to three Magi Tax.

Speaker 1 (37:58):
Thank you for listening to Maggie Tax and Financial Show
with Robert and Chris Maggie of Maggie Tax Wealth Advisors.
Listen here five to six pm every Saturday and from
eleven am till noon every Sunday, or any time on
the free iHeartRadio app. And remember you can pay less
tax with Maggie Tax Program. Content provided by Maggie Tax

(38:19):
Wealth and Advisors. Call them at eight three three Maggie Tax,
or visit them online at Maggietax dot com