Episode Transcript
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Speaker 1 (00:00):
Live from the w g y iHeart Studios. Welcome to
Retirement Ready with your host Dave Kopek from the Retirement
Ready Show. Every week, Dave and his team discussed the
ways they can help people make informed decisions about a
wide array of retirement planning information that can support you
and developing a more certain financial future for you and
(00:20):
your family. Now it's time for Dave Kopec, WGY's retirement
planning specialist.
Speaker 2 (00:48):
All right, it's noon time. Hi, Noon, WGY. Look at Zach.
He's got his Barkley. Sure not. You gotta rub it in,
don't you?
Speaker 3 (01:07):
Do you have that?
Speaker 2 (01:08):
On this morning? I was thinking of grabbing some clips.
Not one, not two, but three touchdowns. Oh my god.
The Giants they always make such great decisions, don't they.
If you're a Giant fan, you're crying in your soup, right,
I don't know what you call it anymore, crying in
(01:28):
your milk, just crying. One of the greatest players ever
with the Giants and they get rid of them. The
first game where the Philadelphia Eagles, which has always been
the nemesis, he scores three tds. But whatever it is,
it is, what it is, it is, what it is.
I'm Dave Kopak. This is Retirement Ready. This is a
(01:51):
topic specific show, and it's a show that I always
enjoyed doing. But as always, guess what, today, I'm live,
I'm in the studio. It's not a pre recorded show.
I'm back in the saddle. Summer's over with as far
as I'm concerned. So if you want to participate, you
want to ask any questions. One eight hundred talk to BGY.
(02:15):
That's one eight hundred and eight two five fifty nine
forty nine. We love questions. Questions are good. Questions are good.
Always breaks it up a little bit, even if it's
off topic. But today's program, Retirement Ready program is about
take this job and shove it. The old Johnny paycheck.
(02:38):
Remember that one. I'll have to play that at the break. Okay,
you got can you pick that one up for me,
Old Johnny paycheck, Take this job and shove it. I've
had it. I can't do this anymore. But I'm not
fifty nine and a half. But guess what. There's a
secret sauce, folks. It's called the rule of fifty and
(03:01):
the seventy two T rule and both ways allows you
to access your retirement funds early and not have a penalty,
but they differ in several ways. In several ways, and
we're going to go through that today. The rule of
fifty five and seventy two t and if we get
(03:23):
a chance, we're going to talk about why you want
to do an in service distribution at age fifty nine
and a half and start building out your retirement plan.
But as always we talk about options that are available
for pre and post retirees. This program is going to
be mostly for people that are still pre retirement. But
(03:46):
you know, after COVID hit, a lot of us sat
down and had a chat to ourselves and basically said,
is this really what I want to do for the
rest of my life? Some of us it was yes.
For others it was, you know what, I don't want
to do this for the rest of my life. And
(04:06):
what I want to do is I want to find
a passion. I've made money, kids are off, they're out
of college, mom and dad are home. I don't have
to make a ton of money because I've been a
good saver, but I might have to tap into that
pot of gold. Well. The rule of fifty five and
seventy two t allow you to tap into that pot
(04:26):
of gold without being penalized, without being penalized. And that's
the key, because we all know that early retirement distributions
before fifty nine and a half unlast rule of fifty
five worse seventy two t you get hit with a
(04:47):
penalty ten percent and it's all taxes ordinary income. So
I know there's been a lot of individuals that have
come into the retirement planning group. I have discussed with us.
You know what, I don't need all of it, but
I need some of it. And that is an identifier
(05:08):
to me after doing this for an extended period of
time forty three years, is that we might have a
solution for them in order to satisfy their income needs
until they get up to speed. What does that mean?
Up to speed the passion that they're trying to do
in their life. Some people might say, to hell with it,
I'm just going to go sit on the beach in Tahiti.
(05:30):
You know what, I don't want to do anything anymore.
You know what, I have a lifestyle. I'm frugal. I
don't really need to make a lot more money, but
I also want to be in a position that I
could you know, have these distributions allow my wealth to
continue to grow? And then we'll see where we stand
(05:53):
in four or five, ten years from now. I'm still young.
I'm only fifty five. So let's go over a little bit.
What are the differences between a seventy two team method
versus the rule of fifty five. Let's start off with
the easy one. This is the one I call the layup.
You know what a layup is? Right in basketball? You
(06:16):
can't make a layup or you can't do them pretty consistently.
Chances are the coaches going to say, you know, Zach,
you're not going to be able to plan the team
this year. So the rule of fifty five is only
available for employer provided retirement plans. Let me just say
(06:36):
that again. The rule of fifty five is only available
for employer provided retirement plans such as a four to
one K or a four to ZH three B. In
order to be able to take withdrawals penalty free, you
must be that magical age, not fifty nine and a half,
(06:57):
not sixty, not sixty five, but fifty five years old.
When you leave your job. It allows you to withdraw
funds penalty free. Only hear this now, folks, I'm gonna
over emphasize this, and it's in bold. I'm highlighting it
(07:19):
now in yellow only from the employer's retirement plan. H
What does that mean? It means money's got to stay
with the employer, penalty free only from that employer's retirement plan,
not an IRA. So if you rolled your money into
(07:43):
an IRA, you're fifty five, you left work, you just
you know what, you just hurt yourself. Not all four
oh one K plans offer this provision. Not all Well,
therefore it's necessary to what check with the plan administrator
(08:06):
to see if this is an option that is available
to you. Okay, the rule of fifty five has to
stay with the employer's retirement plan, not in an IRA.
If you moved into an IRA, you negate the opportunity
(08:28):
for you to take money out of your qualified plan
without a penalty. So now there's another option, not only
the fifty five but also what we call seventy two T.
And when we get back from break, we're going to
(08:50):
talk about seventy two T. And then once we do that,
we're going to do the comparison rule of fifty five
versus seventy two T. What's avid what is an advantageous?
What are the drawbacks to both? But bottom line gets
down to anything that I'm talking about today. We have
five offices in New York. We have locations here in Albany,
(09:13):
Malta is our headquarters Glens Falls. We also have an
office in Oneana and the great City of Syracuse. So
if you want to sit down with us, you want
to have a chat, it's pretty easy. Five one eight
five eight zero one nine one nine five one eight
five eight zero one nine one nine. Check us out
(09:33):
on the web rpgretire dot com. That's rpgretire dot com.
I'm Dave Kopek, WGY's Retirement Planning Specialists, President of the
Retirement Planning Group. Live in the studio. If you want
to talk about anything that I'm discussing today, give Zach
(09:54):
a call. Get them off his can. He's laid back.
He's watching a football game right now.
Speaker 3 (09:59):
He's very.
Speaker 2 (10:01):
I know what you're doing in there, you're not. You
need to get them busy, folks. One eight hundred talk WGY.
That's one eight hundred eight two five fifty nine forty
nine will.
Speaker 3 (10:11):
Be right back.
Speaker 2 (10:11):
The eighty six percenters. Do you know that eighty six
percent of the population has no defined benefit pension plan.
For most of us, we have to take our life
savings and create a paycheck for the rest of our
lives in retirement. What is your plan for retirement income distribution?
How you manage your assets during the most critical years
of your lifetime. Nobel Prize winning economist William Sharp has
(10:31):
called retirement income distribution the nastiest, hardest problem in finance.
He points out that investment uncertainty and mortality can derail
the most careful laid out retirement income plan. Call our
offices today to start the process of building a retirement
income distribution plan. After forty one years of being in
the financial services business, you need to start taking action
(10:52):
to start building your own personal retirement income distribution plan.
How do you do that? To take action? Five eight
five eight zero zero one nine nine. That's five one
eight five eight zero one nine one nine or RPG
retire on the web. Don't procrastinate, motivate to start building
your retirement income distribution plan. Five win eight five eight
zero one nine one nine. Will you run out of
(11:14):
money in retirement? Will your investments provide income for possibly decades?
How do you navigate the two greatest risk in retirement
sequence of returns in longevity at the Retirement Planning Group.
Our Bucket of Money approach addresses these concerns and we
offer a complimentary consultation to discuss this with you. Call
our office today for a free complimentary consultation to develop
(11:35):
your own personal retirement income distribution plan at five win
eight five eight zero one nine one nine. That's five
win eight five eight zero one nine one nine. Take
this job and shoving.
Speaker 3 (11:47):
I ain't working, No.
Speaker 1 (11:51):
Calming down them took all the reasons I'm working.
Speaker 4 (11:56):
Fall.
Speaker 3 (11:58):
You better not try stand in my ways, out on
the bulk, out the door. State this job.
Speaker 2 (12:07):
Shove it work all right? How do we solve that?
Take this job and shove it. It's called seventy two
T or the rule of fifty five. So we went
over the rule of fifty five. Now we're going to
go over the rule of seventy two T. Withdrawing money
(12:30):
from a retirement account early, right, sometimes it's the only
option for early retirees. So the seventy two T method
allows you to take a penalty free subs Here. This
is the keyword, folk, Okay, this is how highlight this one,
just like you highlighted the other one. Substantially equal periodic
(12:53):
payments SEPP Substantially equal periodic payments from iras and other
employer provided retirement accounts like a four to one K
or a four or three B before you're reaching that
magical age fifty nine and a half. How they came
(13:17):
up with that, I have no idea. The catch is
that that stream of income, those payments must be continued
for at least five years. There's a formula. I'm not
going to bore you with the formula because there's like
three or four different ways that you can calculate this.
But these payments are made based on that IRS formula calculation,
(13:42):
and it's based on life expectancy. All right, So you've
got a seventy two T, you got a rule of
fifty five. Right. You may not have heard of them before,
but like I said, these are methods in which you
can access your retireronment funds if you retire early. However, however,
(14:09):
remember the seventy two T. Once you're in it, you're
in it. You're going to adjust it. I think once
the rule of fifty five, right, what's the positive about that?
As long as it stays in your employer's plan, you
have much more flexibility. What do I mean by that?
(14:30):
That means the seventy two T is a consistent payment
the rule of fifty five. You need a thousand, you
take a thousand. You need three thousand, you take three thousand.
The nextraor a four hundred bucks, whatever it may be,
you can do it on the rule of fifty five.
That is not the case with seventy two T. So
what I tell people all the time is, if you're
(14:52):
going to do this, make sure you understand the benefits
of both. Right now. The seventy two T team method
allows you to roll the money into a self directed IRA.
That is not the case with the rule of fifty five.
The seventy two TE method allows you to roll it
(15:13):
into a self directed IRA, and you could possibly have
thousands of different types of investment opportunities. The rule of
fifty five, the money that you're leaving in there in
order to take distributions are going to be allocated to
the funds that are being put into the plan by
(15:34):
your employer. So you're limited. You're kind of handcuffed, right.
So maybe it's a situation where you do both. Not
only do you do the rule of fifty five, you
also do the rule of seventy two T. Now, when
I was first in the business, I had a gentleman
that was a very good not only is he a
great client, but he's a very good friend of mine.
Now I made a mistake. I made a mistake because
(15:58):
what I did is that I took his whole pot
out of money and I did the seventy two t Now,
it worked out okay, but it would have been a
lot better if I left some of it money in
the rule of fifty five in his former employer's plan.
But when you're a financial advisor, sometimes you hesitate to
do that right because when you're young, right, all you're
(16:19):
thinking about is that you want to capture as many
assets as you possibly can, and you're not thinking it through. Therefore,
it's necessary in order not only to check with the
plan administrator, but also it's necessary for you to have
a chat right with the individual that you're working with,
husband and wife, and make sure that in essence, you're
(16:39):
doing what needs to get done in order to facilitate
not only what needs to get done today, but also
what needs to get done in the future. So I'm
going to highlight again one more time. Can I get
a little more music? Can I get a little more
Johnny paycheck? Is that possible? Come on, give it to me.
(17:00):
Take this job and shove it there.
Speaker 4 (17:03):
You go work.
Speaker 3 (17:10):
All right, that's what we're saying. Take the job and
shove it.
Speaker 2 (17:18):
Right. You don't want to go there anymore. You've had
it the boss and you are just not hitting it off.
It's not your passion. You want to move into retirement,
you want to move into something else. And you're saying
to yourself, well, I hear all the time you can't
touch my money until fifty nine and a half. Not true,
Not true, So seventy two teen. The rule of fifty
(17:41):
five allows you to basically control your destiny and to
get your hands on the money without a penalty. Right.
Each method varies in the age in which you start
making the withdrawals. But the key is is this. This
is the key. If you're fifty five and older, not
(18:05):
fifty nine and a half, you can get to the money,
and you can go into hr and you can say
to your friends see a later, alligator, I'm out of here.
Here's my notice. I'll be out of here in two weeks. Now,
if you're over the age of fifty nine and a half,
(18:27):
where you're close to fifty nine and a half. One
of the things that we do with the Retirement Planning
Group we do a lot of quote unquote in service distributions. Okay,
what's an in service distribution? Dave Well? An in service
distribution is a way for you to take the current
(18:47):
money that you have in your four to one chaos
that's through your employer and roll it into a self
directed IRA trustee to trustee transfer, a non taxable event, right,
non taxable event. That means that now you have the
(19:08):
ability to start building out your income distribution plan or
what we call it the Retirement Planning Group, the buckets
of money. Now, here's some key things about in service distributions. Right,
you have to be over the age of fifty nine
(19:31):
and a half, right, in service rollovers. As I just said,
the key you don't want to get a check, you
don't want to touch the money. You want to make
sure that the money goes trustee to trustee transfer because
that makes it a what non taxable event, no taxes
(19:53):
are paid, goes from your employer's plan. To the self
directed IRA right the employee. Right. The employee now has
the ability to manage those assets based off of his timeframe,
his investment expectations, and what he's looking for for the
(20:16):
key word here investment options. Investment options. We clear all
of our business through Fidelity. We have thousands of investment options.
Not only do we have Fidelity, we got Golden and Sachs,
we got JP Morgan. We go through the whole laundry
lists of all the investment options that we have. We
(20:37):
have CDs, we have guaranteed rates, we have annuities. You
can go through the whole laundry list. Why is this
important Because you're building out the buckets of money. You're
getting ready for what the greatest exit in your lifetime,
and that's the point of entry of retirement. You're going
(20:58):
to be in a bull market, a bear market, who knows.
But as long as bucket one is filled with the cash,
you don't care. Because at fifty nine and a half
or the eight sixty sixty one, you're going to retire
at sixty five. Let's just say you had a million
dollars inside the IRA allocated it. You know, on a
(21:18):
conservative basis, four or five six percent. That means you
got forty thousand dollars of assets, forty thousand dollars of
assets that are sitting there fifty thousand a year. Multiplied
by four or five years, you get anywhere from two
hundred to two hundred and fifty thousand dollars of money
that's sitting there. That's sitting there, right, that's ready for
(21:41):
what distribution? Distribution critical. So here's a comparison for you
to think about leaving the money in the four one
K right the options that they provide you, or rolling
it into a self directed IRA, which allows you to
(22:02):
have a multitude of investment options. Right, you keep your
investments on your autopilot, on your platform, and it's a
better way in our opinion at the Retirement Planning Group,
at our overall investment platform, and it gives you what
(22:24):
we consider to be a much much more diversified portfolio. So, again,
what is an in service rollover? An in service rollover
allows a current employee, you're still working for the company,
you can still make contributions. You don't have to do
(22:44):
one hundred percent of the money. You can do eighty percent, fifty,
forty percent, whatever it may be. Whatever you feel comfortable with.
It allows you to move the money into a self
directed IRA without a tax consequence, without a tax concept quins.
Many of your four four one K plans allow this,
(23:06):
not all, but you want to make sure most of
the plans will allow this because they don't want to
have the fiduciary responsibility of saying no to you in
order for you to move your assets to a new platform. So,
if you want to sit down with us and have
a chat about all three of these things that I
(23:27):
just talked about in our first half hour, fifty five
the rule of fifty five seventy two T distributions, or
if you want to talk about Hey, I work for
XYZ Corporation. I'm over the age of fifty nine and
a half. I want to start building my bucket some money.
(23:47):
I want to come in and have a chat with
you guys. Do I have the ability to do an
in service distribution for my current employee to a self
directed IRA? And the chances are are probably very high
that you will be able to do that. What age
can I do an in service distribution? Here's your here's
(24:11):
your test. Fifty nine and a half is the magical
number and as I said, we've got five locations in
New York. We have Syracuse, Albany, Maltas are corporate headquarters,
Onianna and of course Glen's Falls. Give us a call
(24:33):
on our telephone number, speak to Jim or one of
our staff. Say I listened to Dave on the radio.
I want to basically have a conversation about building up
my retirement plan. It's five one eight five eight zero
nine one nine. That's five one eight five eight zero
one nine one nine. Take action conversation, doesn't hurt, doesn't
(24:55):
make a commitment on your part or our part. And
again you can check us out on the way rpgretire
dot com. Again, that's rpgretire dot com. And again our
telephone number five one eight five eight zero one nine
one nine. That's five one eight five eight zero one
nine one nine. And today I'm live in the studio.
(25:18):
If you want to sit down and have a chat
with us, great call my office if you want to
call today and ask any questions. One eight hundred talk
wg Y. That's one eight hundred eight two five fifty
nine forty nine. And again RPG retire dot com is
(25:40):
our web page and our office telephone number for you
to take action, Just to call Jim at five one
eight five eight zero one nine one nine. That's five
one eight five eight zero one nine one nine. I'm
Dave Kopek. We'll be right back after this quick message. Ash.
Speaker 5 (26:10):
I tumble out of bed and stumbled to the kitchen
for myself a cup of ambition and yon and stretch
and try to come alive, jumping shower and the blood
starts pomping out on the streets, the traffic starts chopping
the boots like me on the job for nine to five,
working n by w.
Speaker 4 (26:31):
A way to make me live ready getting by. So
I'm taking that nogam. The just use your mind and
they never give you credit. But fine you too for
service and devotion. But thank that I what deserve bair proportion.
(26:56):
Want you move my head the bar.
Speaker 3 (26:59):
You're back.
Speaker 2 (27:04):
Happy weekend to everybody. Drove down from Lake George my
house in Lake George, and I'll tell you what. It's
a little blistery up there today. But I'll tell you
what one thing for sure about Lake George this weekend,
you won't be able to miss it because of the
engines that are roaring up there. It's the car show
or whatever they call it. And there's a lot of
(27:26):
rubber all over the road and they're burning tires, and
I guess they're having fun. Kind of shake my head,
why would you spend all that money for those tires
and then burn them up, But I guess it's it
tis what it is. Right, We're gonna be talking a
little bit about three things today, but we're also going
(27:49):
to talk about this greatest wealth transfer. But I don't
want you to forget about if you're over the age
of fifty five, I want to retire. You don't think
you can because you think you got to wait to
fifty nine and a half. That is not true, not true.
(28:10):
You can take your money out of your four to
oh one k. You got to keep it in there,
but you can take distributions at the age of fifty five.
You can do seventy two t which allows you to
take money out of there at fifty five, and now
you gotta do payments over a five year period of time.
It's a look complicated to talk about over the radio,
but in essence, you can get to the money personally. Myself,
(28:33):
I think you do a combination of both, and you
get the best of both worlds. This morning, I was
in doing the show and I let it be known
that we are now starting to see the early stages,
(28:53):
the tip of the iceberg of this greatest wealth transfer
in the history of mankind. And when I say that,
I'm talking about the forty some trillion dollars that's right,
forty some trillion dollars that's in qualified plans iras four
on one k's TSPs sep iras kyos. You can go
(29:17):
through the whole laundry list, and of course the rest
of the assets that are held in real estate, non
qualified assets, et cetera. And a lot of people are
saying to us, how is this legacy of ours going
to be taxed? And how many of our children are
(29:45):
going to be in a situation that they're going to
be able to handle this wealth transfer. So not only
is it a rag to richest story, because a lot
of the people that come in started with nothing and
they have a significant model wealth. They are truly for
a lot of this money. It's the first generation that
(30:07):
has built it, and it's going to be the second
generation that's going to have to manage it and hopefully
not squander it. And there's a huge fear of this phenomenon,
and it's motivating families to sit down and have a
conversation about something that they probably never thought that they
(30:29):
were going to have to talk about. And it's called
generational wealth planning. What it does is that it maximizes
the wealth transfer minimizes taxation. But here's the key word.
(30:49):
What is the prudent stewardship of the wealth? Who's going
to manage it, who's going to be responsible for it?
Because a lot of today's seniors are definitely, I know
this for a fact, are definitely going to die with
far more assets than they'll ever need in their lifetime.
(31:12):
And this inheritance could possibly be because of what's happened
to pension benefits. Staying with a company for an extended
period of time is going to be needed for their
children and their grandchildren as sources of income during their
(31:34):
retirement years. Starving artists child, a child that has fouled
a passion not the pocketbook, a child that might have
health issues, a child that might have drug addiction, a
(31:58):
child that might have a problem such as autism. So
coupled with this ever increasing amount of wealth is a
concern about how do we slice and dice carve it
(32:19):
up so not only does it get to its final
destination that we wanted to go to, but also hopefully
it will remain as a legacy and won't be squandered away.
Won't be squandered away. Now I know Piro's here there
(32:39):
on just before today, we've worked with Leu and his team.
They do a lot of work and trust protecting assets.
Right now, they can do the documents, but who's going
to manage the money and what are the assets that
you're going to utilize? What are the assets that you're
(33:01):
going to utilize in order to make sure that the
wealth is there and it's not encumbered by a lot
of tax of this wealth transfer forty trillion dollars plus
minus in qualified assets, I did say with the t
(33:23):
folks forty trillion, what's the net result? What's the net
result with forty trillion dollars between state, federal, and possibly
the state tax depending on what your zip code where
you're going to live. So does it make sense for
(33:47):
you to sit on the fence and keep your fingers
crossed for longevity and just keep on looking at that
pot of gold and see it diminish because of what RMD,
Because forty like I said, forty trillion dollars is in
qualified assets, and they're greater the longevity, they're greater the distributions,
(34:08):
which diminishes the wealth, which now you're not leaving a legacy,
you're leaving what more of a tax liability. So generation
wealth planning sometimes is a I'm not saying that it's
(34:32):
an achilles heel, but sometimes it is coupled with increased anxiety.
Am I doing the right thing? Who will be the
steward Like I just said, who's going to be the
stewardship of wealth? Who is the person that's going to
(34:52):
allocate the money for the kids, the children, the great grandchildren,
whoever it may be, for the charity, for the synagogue,
for the church, for the Humane Society, American Cancer Society,
college universities. Typically that's been done by banks trust departments.
(35:19):
Fidelity has trust services. So when we come back from break,
I'm going to talk about some of the things that
we're starting to see that people are looking at as
far as this wealth transfer, and sometimes people are shocked.
(35:42):
We have a software package through Fidelity called e Money.
E Money basically is a p and l who tells
you exactly where all your money is, what the value is,
how it's titled, who the beneficiaries are. You can be
as in depth as you want, or you can just
(36:04):
do it superficially. It has everything from a vault to
legal documents. Some people are scared about that because of
the ability possibly to get broken into where a lot
of that personal information is now exposed. But one of
(36:27):
the things that we've seen is that when we input,
a lot of times people come in, we talk to them,
we have a chat. We put the data into E money,
just the basic stuff, and they'll say, no, I mean no,
I'm not worth that. Yes, you are worth that. These
are the numbers because the form doesn't add it up.
(36:51):
And then if you add in wealth transfer, and then
you add in life insurance, you add in some of
these other components, it only goes up, it doesn't go down.
We live in a society today where a lot of
people are millionaires, where they never expected to be millionaires.
We live in a society today where people are multimillionaires
(37:12):
and they never expected to be multimillionaires. So you have
to start embracing the ability to sit down and start
figuring it out. How do I carve up the pie?
What is the answer to this wealth transfer? So it's fair,
it's equitable if you want it to be. So we
(37:36):
remain to have a legacy for future generations to come
and also to facilitate what mom and dad want in
their lifetime. And we'll talk a little bit about that.
But again I'm here live, I'm in the studio. Anything
that I'm talking about, give me a call when eight
hundred talk to WGY. If not, give me a call
at the office five one eight five eight zero one
(37:57):
nine one nine, say you want to come in for
your compliment mentary consultation. Dave Kopek wg wi's Retirement Planning Specialists.
I'll be right back, your partner for success. David Kopek
here wg WISE Retirement Planning Specialists, the Retirement Planning Group.
We understand that retirees face many important decisions that can
(38:18):
affect their long term financial success. Some of these decisions
revolve around making investments that will help create a hedge
against outliving their assets, the impact of inflation, taxation, and
rising health care costs. Most of our clients lack the time,
the desire, or the experience to manage their own investment portfolios.
(38:39):
We consider it to be an honor and a privilege
to help our clients make sound investment decisions that will
contribute to a secure financial future for them. Because over
ninety percent of our clients or retirees with similar concerns,
we are in the best position to approach such challenges
with experience and skill. Give us a call today at
(39:00):
eight five eight zero one nine nine five eight five
eight zero one nine one nine or RPG retire on
the web. The greatest risk in retirement. Most of us
have no plan for were insurance to cover the expense.
A long term care event can impoverish a spouse, drain
your life savings, and cost stress and anxiety on your family.
What is your plan and how will you pay for
(39:21):
a long term care event? Call the Retirement Planning Group
today discuss options you should consider to protect your estate
and have choices and independence. Take action Call today five
one eight five eight zero one nine nine or RPG
retire on the web.
Speaker 3 (39:56):
Se you're.
Speaker 2 (40:06):
There's wonder We come outside.
Speaker 4 (40:14):
To get it right?
Speaker 3 (40:16):
All right, get it right here, Let's just.
Speaker 4 (40:33):
Stow.
Speaker 3 (40:35):
I'm trying to take in the name of the.
Speaker 2 (40:37):
Scroup something boys is it?
Speaker 1 (40:41):
What is it?
Speaker 3 (40:43):
Lover boy? There you go, ding ding ding.
Speaker 2 (40:46):
Old man wins the prize. I'll take that teddy bear
up on their second deck. You know, there's changes to
watch folks about the state tax this Cure Act, what
it's done, right, Marginal tax brackets might be restored back
to almost forty percent, increased taxation on capital gains, limitations
(41:11):
on the itemized deductions, decreased in these state tax exemption,
and increase in the state tax rate. You know, the
Biden administration wants to make a lot of changes. They're
going to affect the pocketbook. Right. So basically iras wroth
(41:31):
iras qualified plans, because we're all quite well aware, there's
a new thing called the ten years right, ten years
and that bucket of gold has to be transferred. Now,
wroth irays, okay, you can take it all out and
I'll know whether it's ten years and one year. You
can take it all out and it's tax free. Iras
(41:53):
qualified plans for to one case. It's a different story,
different story, right. I spoke this warning about a woman
that inherited about a million and a half dollars. She
needs the money. She wants to do some things. We
did some planning. When it's all said and done, our
guestimate right now is about eight hundred and fifty five
(42:13):
thousand dollars is going to go into her pocket over
the next three to four years. That's a whole lot
of tax by half of it. Right, So are you leaving,
are you leaving a legacy, or are you leaving a
(42:33):
tax liability? Natalie Choke calls it the mortgage on your IRA.
Couldn't be said any clear because you think about it,
that's not all your money. It's not all your money.
You got the state, you got the federal and God
(42:55):
forbid the state tax. Right, so the ten year rule, right,
money goes to your wife surviving spouse. You don't have
to worry about it, right, They can basically run it
out over their life. But most of this money is
being transferred to children when they least want it, prime
(43:17):
of their life, making the most money. And now they
got this huge pot of goal that's being delivered to them.
And guess what a lot of it is going to
go to our friends in Washington State and hopefully not
to the estate tax. So you know, we all know
(43:39):
about rm ds required minimum distributions. We got rm ds too,
an inheritedary, non spouse inherited diaries, you got rm ds.
So you got to start thinking outside the box, mom
and dad. Right, the sooner you do this, the better
off you're going to be, because there's different ways for
(44:00):
you to do this. Right, leaving money to charities, Right,
leaving a certain amount carved off. You buy life insurance
in order to have tax free benefits. Right the disclaimer
where Mama or daddy doesn't receive all the money, you
(44:23):
disclaim some of it and you get it to non
spouse beneficiaries outside the estate because they possibly could be
in a lower tax bracket. Right. You got to be
careful if you have children that are disabled that you're
not going to screw up their benefit as far as
(44:43):
what they're receiving. But if you want to minimize income taxation,
minimize income taxation, sitting on the fence playing totally links
isn't going to help you because traditional rays, flour one ks,
(45:06):
sep iras kios, there's all going to be subject to
what income tax and possibly estate tax. So a lot
of people say, Dave, should I do a roth conversion?
I said, are you going to use the money. Are
you doing it for a legacy or transfer wealth? No,
we're not going to need the money. Well, then you
(45:28):
should look outside the box, because I think there's better
ways for you to convert money, get it over more
tax efficiently to your loved ones, and get the money
inside of trust in order to protect it from creditors
and predators, evil suden laws and daughter laws. Right, you
want it to follow what you want it to follow
(45:50):
the blood. Each child that you have has different goals, objectives, lives, relationships, responsibilities.
Bobby's doing fantastic, Little Susie's not doing so good, and
(46:10):
the marriage isn't good. What do we do about that?
So there's a lot of people out there that are
listening today's show that love to procrastinate. Let me think
about it. I'll get back to you. Then they're also
(46:35):
basically I had a husband and wife that came in
not that long ago. They're radio listeners. They can't figure
out who to give them money to right the one child.
They don't know if the child is a good child.
Speaker 3 (46:52):
Or a bad child.
Speaker 2 (46:54):
And the other child is a child that they have
a good relationship and ship with. They don't see that
child a lot, but they think a little bit better
about that child than the other child, and they're thinking
about leaving all the money to that child because he
or she will do the right thing. So if you
(47:18):
leave it complicated, the chances are being complicated, challenged, a
lot of fees and charges, attorney's fees, high probability, that's
what the end result is going to be. So when
(47:39):
we talk about wealth transfer, this eighty to eighty five
trillion dollars, right, Not only do we talk about the
buckets of money for retirement, income distribution, multi generational planning
has many different buckets, many different buckets. And what I
(48:04):
would say to you is, jn't short change yourself. Find
out all of the options that are available to you
as far as wealth transfer, because there's a lot of concepts,
there's a lot of ideas, there's some what I considered
to be outside the box planning. I was in Boca Raton,
(48:28):
Florida a couple of weeks ago, and there's a gentleman
that has an office in Boca Ratan that is one
of the top financial advisors in this country, and me,
not being bashful, I walked into his office. He was
in a meeting I wanted to introduce myself because I
(48:49):
heard a lot of things about him, and I was
met by his receptionist, secretary whatever that will chat with her,
and I just told her that I was very impressed
by some of the things that I've read about him,
and he is a major, major, major producer in life insurance.
(49:15):
He just wrote a policy for three one hundred million
dollars recently in death benefit in order to cover legacy
and possibly, I guess maybe Taxes works with high net
worth people, probably not only domestically but also globally. So
(49:35):
this is what I'll say to you. I had a
very good friend of mine that worked for Goldman sax Eco,
and he had a great analogy. Do you care what
I call it or what the net is, as long
as it's tax freight right life insurance, if it's set
up properly. There's always one thing, as long as it's
(49:59):
set up proper belief, simplistic guaranteed tax free, simplistic guaranteed
tax free. Now, when I go back, I've asked this
woman that I want to sit down with this gentleman
to have a.
Speaker 3 (50:17):
Chat with him.
Speaker 2 (50:18):
Because the hotel that we stay at in Boca is
right next to his office, and I'm hoping that she
affords me that opportunity because I love I would love
to sit down and just pick his brain. I've listened
to some of his presentations. I've listened to him as
far as some of the data points that he points out.
(50:41):
So if you're in a situation where you feel like, Wow,
this is overwhelming to me, I can't figure this out,
then I would suggest that you give us a call.
This is an area that we're spending a lot of
time at the Retirement Planning Group. You can have hundreds
of millions of dollars. You get millions dollars, You could
have one hundred and fifty two hundred dollars. It doesn't
(51:03):
make any difference. There are ways for you to transfer
wealth tax efficiently with guarantees, and it's tax free. I
like that name, tax free. What's your name? Tax three?
So I got to go. I got about thirty seconds here.
So if you want to get in contact with us,
as I said, we have five offices now in New York, Syracuse, Albany, Malta,
(51:29):
Glens Falls, Oneana. He can give us a call at
one five one eight five eight zero one nine one nine,
five eight zero one nine one nine. Check us out
on the web rpgretire dot com. Again it's rpgretire dot com.
I'm Dave Kopek, WG wise Retirement Planning Specialists. I'll be
back next week for two shows, the Retirement Planning Show
(51:52):
and also Retirement Ready again. If we can be of
assistance five one eight five eight zero one nine one nine,
and again on the web rpgretire dot com. Be safe, gobless.
Speaker 1 (52:05):
Thank you for listening to Retirement Ready, hosted by Dave Kopek,
WG wise retirement Planning Specialist. If you'd like to talk
with day for someone of the Retirement Planning Group, call
five one e five eight zero one nine nine. That's
five twenty five eight zero one nine one nine during
business hours, or visit rpgretire dot com. The Retirement Planning
(52:28):
Group has five convenient offices located in Albany, Malta, Glens Falls, Syracuse,
and Oneana. Tune in again next week for retirement planning
strategies with Dave Kopek right here on WG wise Retirement Ready.
The information or services discussed on this show is for
informational purposes only and is not intended to be personal
(52:49):
financial advice. The investments and services offered by US may
not be suitable for all investors. If you have any
doubts as to the merits of an investment, you should
seek advice from an independent financial advisor,
Live from the w g y iHeart Studios. Welcome to
Retirement Ready with your host Dave Kopek from the Retirement
Ready Show. Every week, Dave and his team discussed the
ways they can help people make informed decisions about a
wide array of retirement planning information that can support you
and developing a more certain financial future for you and
(00:20):
your family. Now it's time for Dave Kopec, WGY's retirement
planning specialist.
Speaker 2 (00:48):
All right, it's noon time. Hi, Noon, WGY. Look at Zach.
He's got his Barkley. Sure not. You gotta rub it in,
don't you?
Speaker 3 (01:07):
Do you have that?
Speaker 2 (01:08):
On this morning? I was thinking of grabbing some clips.
Not one, not two, but three touchdowns. Oh my god.
The Giants they always make such great decisions, don't they.
If you're a Giant fan, you're crying in your soup, right,
I don't know what you call it anymore, crying in
(01:28):
your milk, just crying. One of the greatest players ever
with the Giants and they get rid of them. The
first game where the Philadelphia Eagles, which has always been
the nemesis, he scores three tds. But whatever it is,
it is, what it is, it is, what it is.
I'm Dave Kopak. This is Retirement Ready. This is a
(01:51):
topic specific show, and it's a show that I always
enjoyed doing. But as always, guess what, today, I'm live,
I'm in the studio. It's not a pre recorded show.
I'm back in the saddle. Summer's over with as far
as I'm concerned. So if you want to participate, you
want to ask any questions. One eight hundred talk to BGY.
(02:15):
That's one eight hundred and eight two five fifty nine
forty nine. We love questions. Questions are good. Questions are good.
Always breaks it up a little bit, even if it's
off topic. But today's program, Retirement Ready program is about
take this job and shove it. The old Johnny paycheck.
(02:38):
Remember that one. I'll have to play that at the break. Okay,
you got can you pick that one up for me,
Old Johnny paycheck, Take this job and shove it. I've
had it. I can't do this anymore. But I'm not
fifty nine and a half. But guess what. There's a
secret sauce, folks. It's called the rule of fifty and
(03:01):
the seventy two T rule and both ways allows you
to access your retirement funds early and not have a penalty,
but they differ in several ways. In several ways, and
we're going to go through that today. The rule of
fifty five and seventy two t and if we get
(03:23):
a chance, we're going to talk about why you want
to do an in service distribution at age fifty nine
and a half and start building out your retirement plan.
But as always we talk about options that are available
for pre and post retirees. This program is going to
be mostly for people that are still pre retirement. But
(03:46):
you know, after COVID hit, a lot of us sat
down and had a chat to ourselves and basically said,
is this really what I want to do for the
rest of my life? Some of us it was yes.
For others it was, you know what, I don't want
to do this for the rest of my life. And
(04:06):
what I want to do is I want to find
a passion. I've made money, kids are off, they're out
of college, mom and dad are home. I don't have
to make a ton of money because I've been a
good saver, but I might have to tap into that
pot of gold. Well. The rule of fifty five and
seventy two t allow you to tap into that pot
(04:26):
of gold without being penalized, without being penalized. And that's
the key, because we all know that early retirement distributions
before fifty nine and a half unlast rule of fifty
five worse seventy two t you get hit with a
(04:47):
penalty ten percent and it's all taxes ordinary income. So
I know there's been a lot of individuals that have
come into the retirement planning group. I have discussed with us.
You know what, I don't need all of it, but
I need some of it. And that is an identifier
(05:08):
to me after doing this for an extended period of
time forty three years, is that we might have a
solution for them in order to satisfy their income needs
until they get up to speed. What does that mean?
Up to speed the passion that they're trying to do
in their life. Some people might say, to hell with it,
I'm just going to go sit on the beach in Tahiti.
(05:30):
You know what, I don't want to do anything anymore.
You know what, I have a lifestyle. I'm frugal. I
don't really need to make a lot more money, but
I also want to be in a position that I
could you know, have these distributions allow my wealth to
continue to grow? And then we'll see where we stand
(05:53):
in four or five, ten years from now. I'm still young.
I'm only fifty five. So let's go over a little bit.
What are the differences between a seventy two team method
versus the rule of fifty five. Let's start off with
the easy one. This is the one I call the layup.
You know what a layup is? Right in basketball? You
(06:16):
can't make a layup or you can't do them pretty consistently.
Chances are the coaches going to say, you know, Zach,
you're not going to be able to plan the team
this year. So the rule of fifty five is only
available for employer provided retirement plans. Let me just say
(06:36):
that again. The rule of fifty five is only available
for employer provided retirement plans such as a four to
one K or a four to ZH three B. In
order to be able to take withdrawals penalty free, you
must be that magical age, not fifty nine and a half,
(06:57):
not sixty, not sixty five, but fifty five years old.
When you leave your job. It allows you to withdraw
funds penalty free. Only hear this now, folks, I'm gonna
over emphasize this, and it's in bold. I'm highlighting it
(07:19):
now in yellow only from the employer's retirement plan. H
What does that mean? It means money's got to stay
with the employer, penalty free only from that employer's retirement plan,
not an IRA. So if you rolled your money into
(07:43):
an IRA, you're fifty five, you left work, you just
you know what, you just hurt yourself. Not all four
oh one K plans offer this provision. Not all Well,
therefore it's necessary to what check with the plan administrator
(08:06):
to see if this is an option that is available
to you. Okay, the rule of fifty five has to
stay with the employer's retirement plan, not in an IRA.
If you moved into an IRA, you negate the opportunity
(08:28):
for you to take money out of your qualified plan
without a penalty. So now there's another option, not only
the fifty five but also what we call seventy two T.
And when we get back from break, we're going to
(08:50):
talk about seventy two T. And then once we do that,
we're going to do the comparison rule of fifty five
versus seventy two T. What's avid what is an advantageous?
What are the drawbacks to both? But bottom line gets
down to anything that I'm talking about today. We have
five offices in New York. We have locations here in Albany,
(09:13):
Malta is our headquarters Glens Falls. We also have an
office in Oneana and the great City of Syracuse. So
if you want to sit down with us, you want
to have a chat, it's pretty easy. Five one eight
five eight zero one nine one nine five one eight
five eight zero one nine one nine. Check us out
(09:33):
on the web rpgretire dot com. That's rpgretire dot com.
I'm Dave Kopek, WGY's Retirement Planning Specialists, President of the
Retirement Planning Group. Live in the studio. If you want
to talk about anything that I'm discussing today, give Zach
(09:54):
a call. Get them off his can. He's laid back.
He's watching a football game right now.
Speaker 3 (09:59):
He's very.
Speaker 2 (10:01):
I know what you're doing in there, you're not. You
need to get them busy, folks. One eight hundred talk WGY.
That's one eight hundred eight two five fifty nine forty
nine will.
Speaker 3 (10:11):
Be right back.
Speaker 2 (10:11):
The eighty six percenters. Do you know that eighty six
percent of the population has no defined benefit pension plan.
For most of us, we have to take our life
savings and create a paycheck for the rest of our
lives in retirement. What is your plan for retirement income distribution?
How you manage your assets during the most critical years
of your lifetime. Nobel Prize winning economist William Sharp has
(10:31):
called retirement income distribution the nastiest, hardest problem in finance.
He points out that investment uncertainty and mortality can derail
the most careful laid out retirement income plan. Call our
offices today to start the process of building a retirement
income distribution plan. After forty one years of being in
the financial services business, you need to start taking action
(10:52):
to start building your own personal retirement income distribution plan.
How do you do that? To take action? Five eight
five eight zero zero one nine nine. That's five one
eight five eight zero one nine one nine or RPG
retire on the web. Don't procrastinate, motivate to start building
your retirement income distribution plan. Five win eight five eight
zero one nine one nine. Will you run out of
(11:14):
money in retirement? Will your investments provide income for possibly decades?
How do you navigate the two greatest risk in retirement
sequence of returns in longevity at the Retirement Planning Group.
Our Bucket of Money approach addresses these concerns and we
offer a complimentary consultation to discuss this with you. Call
our office today for a free complimentary consultation to develop
(11:35):
your own personal retirement income distribution plan at five win
eight five eight zero one nine one nine. That's five
win eight five eight zero one nine one nine. Take
this job and shoving.
Speaker 3 (11:47):
I ain't working, No.
Speaker 1 (11:51):
Calming down them took all the reasons I'm working.
Speaker 4 (11:56):
Fall.
Speaker 3 (11:58):
You better not try stand in my ways, out on
the bulk, out the door. State this job.
Speaker 2 (12:07):
Shove it work all right? How do we solve that?
Take this job and shove it. It's called seventy two
T or the rule of fifty five. So we went
over the rule of fifty five. Now we're going to
go over the rule of seventy two T. Withdrawing money
(12:30):
from a retirement account early, right, sometimes it's the only
option for early retirees. So the seventy two T method
allows you to take a penalty free subs Here. This
is the keyword, folk, Okay, this is how highlight this one,
just like you highlighted the other one. Substantially equal periodic
(12:53):
payments SEPP Substantially equal periodic payments from iras and other
employer provided retirement accounts like a four to one K
or a four or three B before you're reaching that
magical age fifty nine and a half. How they came
(13:17):
up with that, I have no idea. The catch is
that that stream of income, those payments must be continued
for at least five years. There's a formula. I'm not
going to bore you with the formula because there's like
three or four different ways that you can calculate this.
But these payments are made based on that IRS formula calculation,
(13:42):
and it's based on life expectancy. All right, So you've
got a seventy two T, you got a rule of
fifty five. Right. You may not have heard of them before,
but like I said, these are methods in which you
can access your retireronment funds if you retire early. However, however,
(14:09):
remember the seventy two T. Once you're in it, you're
in it. You're going to adjust it. I think once
the rule of fifty five, right, what's the positive about that?
As long as it stays in your employer's plan, you
have much more flexibility. What do I mean by that?
(14:30):
That means the seventy two T is a consistent payment
the rule of fifty five. You need a thousand, you
take a thousand. You need three thousand, you take three thousand.
The nextraor a four hundred bucks, whatever it may be,
you can do it on the rule of fifty five.
That is not the case with seventy two T. So
what I tell people all the time is, if you're
(14:52):
going to do this, make sure you understand the benefits
of both. Right now. The seventy two T team method
allows you to roll the money into a self directed IRA.
That is not the case with the rule of fifty five.
The seventy two TE method allows you to roll it
(15:13):
into a self directed IRA, and you could possibly have
thousands of different types of investment opportunities. The rule of
fifty five, the money that you're leaving in there in
order to take distributions are going to be allocated to
the funds that are being put into the plan by
(15:34):
your employer. So you're limited. You're kind of handcuffed, right.
So maybe it's a situation where you do both. Not
only do you do the rule of fifty five, you
also do the rule of seventy two T. Now, when
I was first in the business, I had a gentleman
that was a very good not only is he a
great client, but he's a very good friend of mine.
Now I made a mistake. I made a mistake because
(15:58):
what I did is that I took his whole pot
out of money and I did the seventy two t Now,
it worked out okay, but it would have been a
lot better if I left some of it money in
the rule of fifty five in his former employer's plan.
But when you're a financial advisor, sometimes you hesitate to
do that right because when you're young, right, all you're
(16:19):
thinking about is that you want to capture as many
assets as you possibly can, and you're not thinking it through. Therefore,
it's necessary in order not only to check with the
plan administrator, but also it's necessary for you to have
a chat right with the individual that you're working with,
husband and wife, and make sure that in essence, you're
(16:39):
doing what needs to get done in order to facilitate
not only what needs to get done today, but also
what needs to get done in the future. So I'm
going to highlight again one more time. Can I get
a little more music? Can I get a little more
Johnny paycheck? Is that possible? Come on, give it to me.
(17:00):
Take this job and shove it there.
Speaker 4 (17:03):
You go work.
Speaker 3 (17:10):
All right, that's what we're saying. Take the job and
shove it.
Speaker 2 (17:18):
Right. You don't want to go there anymore. You've had
it the boss and you are just not hitting it off.
It's not your passion. You want to move into retirement,
you want to move into something else. And you're saying
to yourself, well, I hear all the time you can't
touch my money until fifty nine and a half. Not true,
Not true, So seventy two teen. The rule of fifty
(17:41):
five allows you to basically control your destiny and to
get your hands on the money without a penalty. Right.
Each method varies in the age in which you start
making the withdrawals. But the key is is this. This
is the key. If you're fifty five and older, not
(18:05):
fifty nine and a half, you can get to the money,
and you can go into hr and you can say
to your friends see a later, alligator, I'm out of here.
Here's my notice. I'll be out of here in two weeks. Now,
if you're over the age of fifty nine and a half,
(18:27):
where you're close to fifty nine and a half. One
of the things that we do with the Retirement Planning
Group we do a lot of quote unquote in service distributions. Okay,
what's an in service distribution? Dave Well? An in service
distribution is a way for you to take the current
(18:47):
money that you have in your four to one chaos
that's through your employer and roll it into a self
directed IRA trustee to trustee transfer, a non taxable event, right,
non taxable event. That means that now you have the
(19:08):
ability to start building out your income distribution plan or
what we call it the Retirement Planning Group, the buckets
of money. Now, here's some key things about in service distributions. Right,
you have to be over the age of fifty nine
(19:31):
and a half, right, in service rollovers. As I just said,
the key you don't want to get a check, you
don't want to touch the money. You want to make
sure that the money goes trustee to trustee transfer because
that makes it a what non taxable event, no taxes
(19:53):
are paid, goes from your employer's plan. To the self
directed IRA right the employee. Right. The employee now has
the ability to manage those assets based off of his timeframe,
his investment expectations, and what he's looking for for the
(20:16):
key word here investment options. Investment options. We clear all
of our business through Fidelity. We have thousands of investment options.
Not only do we have Fidelity, we got Golden and Sachs,
we got JP Morgan. We go through the whole laundry
lists of all the investment options that we have. We
(20:37):
have CDs, we have guaranteed rates, we have annuities. You
can go through the whole laundry list. Why is this
important Because you're building out the buckets of money. You're
getting ready for what the greatest exit in your lifetime,
and that's the point of entry of retirement. You're going
(20:58):
to be in a bull market, a bear market, who knows.
But as long as bucket one is filled with the cash,
you don't care. Because at fifty nine and a half
or the eight sixty sixty one, you're going to retire
at sixty five. Let's just say you had a million
dollars inside the IRA allocated it. You know, on a
(21:18):
conservative basis, four or five six percent. That means you
got forty thousand dollars of assets, forty thousand dollars of
assets that are sitting there fifty thousand a year. Multiplied
by four or five years, you get anywhere from two
hundred to two hundred and fifty thousand dollars of money
that's sitting there. That's sitting there, right, that's ready for
(21:41):
what distribution? Distribution critical. So here's a comparison for you
to think about leaving the money in the four one
K right the options that they provide you, or rolling
it into a self directed IRA, which allows you to
(22:02):
have a multitude of investment options. Right, you keep your
investments on your autopilot, on your platform, and it's a
better way in our opinion at the Retirement Planning Group,
at our overall investment platform, and it gives you what
(22:24):
we consider to be a much much more diversified portfolio. So, again,
what is an in service rollover? An in service rollover
allows a current employee, you're still working for the company,
you can still make contributions. You don't have to do
(22:44):
one hundred percent of the money. You can do eighty percent, fifty,
forty percent, whatever it may be. Whatever you feel comfortable with.
It allows you to move the money into a self
directed IRA without a tax consequence, without a tax concept quins.
Many of your four four one K plans allow this,
(23:06):
not all, but you want to make sure most of
the plans will allow this because they don't want to
have the fiduciary responsibility of saying no to you in
order for you to move your assets to a new platform. So,
if you want to sit down with us and have
a chat about all three of these things that I
(23:27):
just talked about in our first half hour, fifty five
the rule of fifty five seventy two T distributions, or
if you want to talk about Hey, I work for
XYZ Corporation. I'm over the age of fifty nine and
a half. I want to start building my bucket some money.
(23:47):
I want to come in and have a chat with
you guys. Do I have the ability to do an
in service distribution for my current employee to a self
directed IRA? And the chances are are probably very high
that you will be able to do that. What age
can I do an in service distribution? Here's your here's
(24:11):
your test. Fifty nine and a half is the magical
number and as I said, we've got five locations in
New York. We have Syracuse, Albany, Maltas are corporate headquarters,
Onianna and of course Glen's Falls. Give us a call
(24:33):
on our telephone number, speak to Jim or one of
our staff. Say I listened to Dave on the radio.
I want to basically have a conversation about building up
my retirement plan. It's five one eight five eight zero
nine one nine. That's five one eight five eight zero
one nine one nine. Take action conversation, doesn't hurt, doesn't
(24:55):
make a commitment on your part or our part. And
again you can check us out on the way rpgretire
dot com. Again, that's rpgretire dot com. And again our
telephone number five one eight five eight zero one nine
one nine. That's five one eight five eight zero one
nine one nine. And today I'm live in the studio.
(25:18):
If you want to sit down and have a chat
with us, great call my office if you want to
call today and ask any questions. One eight hundred talk
wg Y. That's one eight hundred eight two five fifty
nine forty nine. And again RPG retire dot com is
(25:40):
our web page and our office telephone number for you
to take action, Just to call Jim at five one
eight five eight zero one nine one nine. That's five
one eight five eight zero one nine one nine. I'm
Dave Kopek. We'll be right back after this quick message. Ash.
Speaker 5 (26:10):
I tumble out of bed and stumbled to the kitchen
for myself a cup of ambition and yon and stretch
and try to come alive, jumping shower and the blood
starts pomping out on the streets, the traffic starts chopping
the boots like me on the job for nine to five,
working n by w.
Speaker 4 (26:31):
A way to make me live ready getting by. So
I'm taking that nogam. The just use your mind and
they never give you credit. But fine you too for
service and devotion. But thank that I what deserve bair proportion.
(26:56):
Want you move my head the bar.
Speaker 3 (26:59):
You're back.
Speaker 2 (27:04):
Happy weekend to everybody. Drove down from Lake George my
house in Lake George, and I'll tell you what. It's
a little blistery up there today. But I'll tell you
what one thing for sure about Lake George this weekend,
you won't be able to miss it because of the
engines that are roaring up there. It's the car show
or whatever they call it. And there's a lot of
(27:26):
rubber all over the road and they're burning tires, and
I guess they're having fun. Kind of shake my head,
why would you spend all that money for those tires
and then burn them up, But I guess it's it
tis what it is. Right, We're gonna be talking a
little bit about three things today, but we're also going
(27:49):
to talk about this greatest wealth transfer. But I don't
want you to forget about if you're over the age
of fifty five, I want to retire. You don't think
you can because you think you got to wait to
fifty nine and a half. That is not true, not true.
(28:10):
You can take your money out of your four to
oh one k. You got to keep it in there,
but you can take distributions at the age of fifty five.
You can do seventy two t which allows you to
take money out of there at fifty five, and now
you gotta do payments over a five year period of time.
It's a look complicated to talk about over the radio,
but in essence, you can get to the money personally. Myself,
(28:33):
I think you do a combination of both, and you
get the best of both worlds. This morning, I was
in doing the show and I let it be known
that we are now starting to see the early stages,
(28:53):
the tip of the iceberg of this greatest wealth transfer
in the history of mankind. And when I say that,
I'm talking about the forty some trillion dollars that's right,
forty some trillion dollars that's in qualified plans iras four
on one k's TSPs sep iras kyos. You can go
(29:17):
through the whole laundry list, and of course the rest
of the assets that are held in real estate, non
qualified assets, et cetera. And a lot of people are
saying to us, how is this legacy of ours going
to be taxed? And how many of our children are
(29:45):
going to be in a situation that they're going to
be able to handle this wealth transfer. So not only
is it a rag to richest story, because a lot
of the people that come in started with nothing and
they have a significant model wealth. They are truly for
a lot of this money. It's the first generation that
(30:07):
has built it, and it's going to be the second
generation that's going to have to manage it and hopefully
not squander it. And there's a huge fear of this phenomenon,
and it's motivating families to sit down and have a
conversation about something that they probably never thought that they
(30:29):
were going to have to talk about. And it's called
generational wealth planning. What it does is that it maximizes
the wealth transfer minimizes taxation. But here's the key word.
(30:49):
What is the prudent stewardship of the wealth? Who's going
to manage it, who's going to be responsible for it?
Because a lot of today's seniors are definitely, I know
this for a fact, are definitely going to die with
far more assets than they'll ever need in their lifetime.
(31:12):
And this inheritance could possibly be because of what's happened
to pension benefits. Staying with a company for an extended
period of time is going to be needed for their
children and their grandchildren as sources of income during their
(31:34):
retirement years. Starving artists child, a child that has fouled
a passion not the pocketbook, a child that might have
health issues, a child that might have drug addiction, a
(31:58):
child that might have a problem such as autism. So
coupled with this ever increasing amount of wealth is a
concern about how do we slice and dice carve it
(32:19):
up so not only does it get to its final
destination that we wanted to go to, but also hopefully
it will remain as a legacy and won't be squandered away.
Won't be squandered away. Now I know Piro's here there
(32:39):
on just before today, we've worked with Leu and his team.
They do a lot of work and trust protecting assets.
Right now, they can do the documents, but who's going
to manage the money and what are the assets that
you're going to utilize? What are the assets that you're
(33:01):
going to utilize in order to make sure that the
wealth is there and it's not encumbered by a lot
of tax of this wealth transfer forty trillion dollars plus
minus in qualified assets, I did say with the t
(33:23):
folks forty trillion, what's the net result? What's the net
result with forty trillion dollars between state, federal, and possibly
the state tax depending on what your zip code where
you're going to live. So does it make sense for
(33:47):
you to sit on the fence and keep your fingers
crossed for longevity and just keep on looking at that
pot of gold and see it diminish because of what RMD,
Because forty like I said, forty trillion dollars is in
qualified assets, and they're greater the longevity, they're greater the distributions,
(34:08):
which diminishes the wealth, which now you're not leaving a legacy,
you're leaving what more of a tax liability. So generation
wealth planning sometimes is a I'm not saying that it's
(34:32):
an achilles heel, but sometimes it is coupled with increased anxiety.
Am I doing the right thing? Who will be the
steward Like I just said, who's going to be the
stewardship of wealth? Who is the person that's going to
(34:52):
allocate the money for the kids, the children, the great grandchildren,
whoever it may be, for the charity, for the synagogue,
for the church, for the Humane Society, American Cancer Society,
college universities. Typically that's been done by banks trust departments.
(35:19):
Fidelity has trust services. So when we come back from break,
I'm going to talk about some of the things that
we're starting to see that people are looking at as
far as this wealth transfer, and sometimes people are shocked.
(35:42):
We have a software package through Fidelity called e Money.
E Money basically is a p and l who tells
you exactly where all your money is, what the value is,
how it's titled, who the beneficiaries are. You can be
as in depth as you want, or you can just
(36:04):
do it superficially. It has everything from a vault to
legal documents. Some people are scared about that because of
the ability possibly to get broken into where a lot
of that personal information is now exposed. But one of
(36:27):
the things that we've seen is that when we input,
a lot of times people come in, we talk to them,
we have a chat. We put the data into E money,
just the basic stuff, and they'll say, no, I mean no,
I'm not worth that. Yes, you are worth that. These
are the numbers because the form doesn't add it up.
(36:51):
And then if you add in wealth transfer, and then
you add in life insurance, you add in some of
these other components, it only goes up, it doesn't go down.
We live in a society today where a lot of
people are millionaires, where they never expected to be millionaires.
We live in a society today where people are multimillionaires
(37:12):
and they never expected to be multimillionaires. So you have
to start embracing the ability to sit down and start
figuring it out. How do I carve up the pie?
What is the answer to this wealth transfer? So it's fair,
it's equitable if you want it to be. So we
(37:36):
remain to have a legacy for future generations to come
and also to facilitate what mom and dad want in
their lifetime. And we'll talk a little bit about that.
But again I'm here live, I'm in the studio. Anything
that I'm talking about, give me a call when eight
hundred talk to WGY. If not, give me a call
at the office five one eight five eight zero one
(37:57):
nine one nine, say you want to come in for
your compliment mentary consultation. Dave Kopek wg wi's Retirement Planning Specialists.
I'll be right back, your partner for success. David Kopek
here wg WISE Retirement Planning Specialists, the Retirement Planning Group.
We understand that retirees face many important decisions that can
(38:18):
affect their long term financial success. Some of these decisions
revolve around making investments that will help create a hedge
against outliving their assets, the impact of inflation, taxation, and
rising health care costs. Most of our clients lack the time,
the desire, or the experience to manage their own investment portfolios.
(38:39):
We consider it to be an honor and a privilege
to help our clients make sound investment decisions that will
contribute to a secure financial future for them. Because over
ninety percent of our clients or retirees with similar concerns,
we are in the best position to approach such challenges
with experience and skill. Give us a call today at
(39:00):
eight five eight zero one nine nine five eight five
eight zero one nine one nine or RPG retire on
the web. The greatest risk in retirement. Most of us
have no plan for were insurance to cover the expense.
A long term care event can impoverish a spouse, drain
your life savings, and cost stress and anxiety on your family.
What is your plan and how will you pay for
(39:21):
a long term care event? Call the Retirement Planning Group
today discuss options you should consider to protect your estate
and have choices and independence. Take action Call today five
one eight five eight zero one nine nine or RPG
retire on the web.
Speaker 3 (39:56):
Se you're.
Speaker 2 (40:06):
There's wonder We come outside.
Speaker 4 (40:14):
To get it right?
Speaker 3 (40:16):
All right, get it right here, Let's just.
Speaker 4 (40:33):
Stow.
Speaker 3 (40:35):
I'm trying to take in the name of the.
Speaker 2 (40:37):
Scroup something boys is it?
Speaker 1 (40:41):
What is it?
Speaker 3 (40:43):
Lover boy? There you go, ding ding ding.
Speaker 2 (40:46):
Old man wins the prize. I'll take that teddy bear
up on their second deck. You know, there's changes to
watch folks about the state tax this Cure Act, what
it's done, right, Marginal tax brackets might be restored back
to almost forty percent, increased taxation on capital gains, limitations
(41:11):
on the itemized deductions, decreased in these state tax exemption,
and increase in the state tax rate. You know, the
Biden administration wants to make a lot of changes. They're
going to affect the pocketbook. Right. So basically iras wroth
(41:31):
iras qualified plans, because we're all quite well aware, there's
a new thing called the ten years right, ten years
and that bucket of gold has to be transferred. Now,
wroth irays, okay, you can take it all out and
I'll know whether it's ten years and one year. You
can take it all out and it's tax free. Iras
(41:53):
qualified plans for to one case. It's a different story,
different story, right. I spoke this warning about a woman
that inherited about a million and a half dollars. She
needs the money. She wants to do some things. We
did some planning. When it's all said and done, our
guestimate right now is about eight hundred and fifty five
(42:13):
thousand dollars is going to go into her pocket over
the next three to four years. That's a whole lot
of tax by half of it. Right, So are you leaving,
are you leaving a legacy, or are you leaving a
(42:33):
tax liability? Natalie Choke calls it the mortgage on your IRA.
Couldn't be said any clear because you think about it,
that's not all your money. It's not all your money.
You got the state, you got the federal and God
(42:55):
forbid the state tax. Right, so the ten year rule, right,
money goes to your wife surviving spouse. You don't have
to worry about it, right, They can basically run it
out over their life. But most of this money is
being transferred to children when they least want it, prime
(43:17):
of their life, making the most money. And now they
got this huge pot of goal that's being delivered to them.
And guess what a lot of it is going to
go to our friends in Washington State and hopefully not
to the estate tax. So you know, we all know
(43:39):
about rm ds required minimum distributions. We got rm ds too,
an inheritedary, non spouse inherited diaries, you got rm ds.
So you got to start thinking outside the box, mom
and dad. Right, the sooner you do this, the better
off you're going to be, because there's different ways for
(44:00):
you to do this. Right, leaving money to charities, Right,
leaving a certain amount carved off. You buy life insurance
in order to have tax free benefits. Right the disclaimer
where Mama or daddy doesn't receive all the money, you
(44:23):
disclaim some of it and you get it to non
spouse beneficiaries outside the estate because they possibly could be
in a lower tax bracket. Right. You got to be
careful if you have children that are disabled that you're
not going to screw up their benefit as far as
(44:43):
what they're receiving. But if you want to minimize income taxation,
minimize income taxation, sitting on the fence playing totally links
isn't going to help you because traditional rays, flour one ks,
(45:06):
sep iras kios, there's all going to be subject to
what income tax and possibly estate tax. So a lot
of people say, Dave, should I do a roth conversion?
I said, are you going to use the money. Are
you doing it for a legacy or transfer wealth? No,
we're not going to need the money. Well, then you
(45:28):
should look outside the box, because I think there's better
ways for you to convert money, get it over more
tax efficiently to your loved ones, and get the money
inside of trust in order to protect it from creditors
and predators, evil suden laws and daughter laws. Right, you
want it to follow what you want it to follow
(45:50):
the blood. Each child that you have has different goals, objectives, lives, relationships, responsibilities.
Bobby's doing fantastic, Little Susie's not doing so good, and
(46:10):
the marriage isn't good. What do we do about that?
So there's a lot of people out there that are
listening today's show that love to procrastinate. Let me think
about it. I'll get back to you. Then they're also
(46:35):
basically I had a husband and wife that came in
not that long ago. They're radio listeners. They can't figure
out who to give them money to right the one child.
They don't know if the child is a good child.
Speaker 3 (46:52):
Or a bad child.
Speaker 2 (46:54):
And the other child is a child that they have
a good relationship and ship with. They don't see that
child a lot, but they think a little bit better
about that child than the other child, and they're thinking
about leaving all the money to that child because he
or she will do the right thing. So if you
(47:18):
leave it complicated, the chances are being complicated, challenged, a
lot of fees and charges, attorney's fees, high probability, that's
what the end result is going to be. So when
(47:39):
we talk about wealth transfer, this eighty to eighty five
trillion dollars, right, Not only do we talk about the
buckets of money for retirement, income distribution, multi generational planning
has many different buckets, many different buckets. And what I
(48:04):
would say to you is, jn't short change yourself. Find
out all of the options that are available to you
as far as wealth transfer, because there's a lot of concepts,
there's a lot of ideas, there's some what I considered
to be outside the box planning. I was in Boca Raton,
(48:28):
Florida a couple of weeks ago, and there's a gentleman
that has an office in Boca Ratan that is one
of the top financial advisors in this country, and me,
not being bashful, I walked into his office. He was
in a meeting I wanted to introduce myself because I
(48:49):
heard a lot of things about him, and I was
met by his receptionist, secretary whatever that will chat with her,
and I just told her that I was very impressed
by some of the things that I've read about him,
and he is a major, major, major producer in life insurance.
(49:15):
He just wrote a policy for three one hundred million
dollars recently in death benefit in order to cover legacy
and possibly, I guess maybe Taxes works with high net
worth people, probably not only domestically but also globally. So
(49:35):
this is what I'll say to you. I had a
very good friend of mine that worked for Goldman sax Eco,
and he had a great analogy. Do you care what
I call it or what the net is, as long
as it's tax freight right life insurance, if it's set
up properly. There's always one thing, as long as it's
(49:59):
set up proper belief, simplistic guaranteed tax free, simplistic guaranteed
tax free. Now, when I go back, I've asked this
woman that I want to sit down with this gentleman
to have a.
Speaker 3 (50:17):
Chat with him.
Speaker 2 (50:18):
Because the hotel that we stay at in Boca is
right next to his office, and I'm hoping that she
affords me that opportunity because I love I would love
to sit down and just pick his brain. I've listened
to some of his presentations. I've listened to him as
far as some of the data points that he points out.
(50:41):
So if you're in a situation where you feel like, Wow,
this is overwhelming to me, I can't figure this out,
then I would suggest that you give us a call.
This is an area that we're spending a lot of
time at the Retirement Planning Group. You can have hundreds
of millions of dollars. You get millions dollars, You could
have one hundred and fifty two hundred dollars. It doesn't
(51:03):
make any difference. There are ways for you to transfer
wealth tax efficiently with guarantees, and it's tax free. I
like that name, tax free. What's your name? Tax three?
So I got to go. I got about thirty seconds here.
So if you want to get in contact with us,
as I said, we have five offices now in New York, Syracuse, Albany, Malta,
(51:29):
Glens Falls, Oneana. He can give us a call at
one five one eight five eight zero one nine one nine,
five eight zero one nine one nine. Check us out
on the web rpgretire dot com. Again it's rpgretire dot com.
I'm Dave Kopek, WG wise Retirement Planning Specialists. I'll be
back next week for two shows, the Retirement Planning Show
(51:52):
and also Retirement Ready again. If we can be of
assistance five one eight five eight zero one nine one nine,
and again on the web rpgretire dot com. Be safe, gobless.
Speaker 1 (52:05):
Thank you for listening to Retirement Ready, hosted by Dave Kopek,
WG wise retirement Planning Specialist. If you'd like to talk
with day for someone of the Retirement Planning Group, call
five one e five eight zero one nine nine. That's
five twenty five eight zero one nine one nine during
business hours, or visit rpgretire dot com. The Retirement Planning
(52:28):
Group has five convenient offices located in Albany, Malta, Glens Falls, Syracuse,
and Oneana. Tune in again next week for retirement planning
strategies with Dave Kopek right here on WG wise Retirement Ready.
The information or services discussed on this show is for
informational purposes only and is not intended to be personal
(52:49):
financial advice. The investments and services offered by US may
not be suitable for all investors. If you have any
doubts as to the merits of an investment, you should
seek advice from an independent financial advisor,
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