Episode Transcript
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Speaker 1 (00:00):
Live from the wgy iHeart Studios. Welcome to Retirement Ready
with your host Dave Kopek from the Retirement Ready Show.
Every week, Dave and his team discuss 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 your family.
(00:21):
Now it's time for Dave Kopec, WGY's Retirement Planning Specialist.
Speaker 2 (00:48):
All Right, happy weekend.
Speaker 3 (00:51):
I'm Dave Kopek, president of the Retirement Planning Group, WGY's
Retirement Planning Specialist.
Speaker 2 (00:57):
It's good to be here.
Speaker 3 (00:58):
This is Retirement Ready, which is a topic specific show.
Today we're going to be talking about generational wealth, what's
happening in regards to our overall investments and how we
are handling are transferred.
Speaker 2 (01:21):
Wealth to the next generation.
Speaker 3 (01:25):
Zach, let me take a break here, please, Your partner
for success, David Kopik, heir WG WISE Retirement Planning Specialists
the Retirement Planning Group. We understand that retirees face many
important decisions that can affect their long term financial success.
Speaker 2 (01:41):
Some of these decisions.
Speaker 3 (01:43):
Revolve around making investments that will help create a hedge
against outliving their assets, the impact of inflation, taxation, and
rising healthcare costs. Most of our clients like the time,
the desire, or the experience to manage their own investment
portfolios to be an honor and a privilege to help
our clients make sound investment decisions, though, contribute to a
(02:06):
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 five one eight, five
eight zero one nine one nine five one eight five
eight zero one nine one nine or RPG retire on
the web the eighty six percenters. Do you know that
(02:29):
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.
Speaker 2 (02:43):
Of your lifetime.
Speaker 3 (02:44):
Nobel Prize winning economist William Sharp has 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 to to
start the process of building a retirement income distribution plan.
After forty one years of being in the financial services business,
(03:06):
you need to start taking action to start building your
own personal retirement income distribution plan. How do you do that?
To take action? Five one eight five eight 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,
start building your retirement income distribution plan. Five win eight
(03:27):
five eight zero one nine one nine.
Speaker 4 (03:50):
Some folks lock to get away, take a holiday from
a neighborhood, have a flight to Miami Beach.
Speaker 2 (04:04):
All right. I am back. It's good to be here.
I'm Dave Kopek.
Speaker 3 (04:11):
And you can tell in the background, I am watching
a dog which is not being very patient with me
right now, and I apologize, but hopefully she will.
Speaker 2 (04:23):
Sit down and behave and I apologize for the noise
in the background.
Speaker 3 (04:29):
Hopefully we're going to resolve this and they're gonna go
outside and they're gonna get some fresh air. All right,
we're talking about wealth transfer. As you're quite well aware.
We've had discussions about this over the last two to
(04:50):
three years, about the greatest wealth transfer in the history
of mankind of which a lot of it is what
we call problematic money. IRA money four oh one K
four three B money that there's never a step up
in basis always tax does ordinary income money that if
(05:14):
you don't use in your lifetime, you're sending a tax
liability to the next generation.
Speaker 2 (05:22):
I'm live.
Speaker 3 (05:23):
If you want to interject at all, I would welcome
your phone calls today, but today is irray.
Speaker 2 (05:32):
I can't even say it.
Speaker 3 (05:34):
I are a wealth transfer and how you're basically going
to leave this large amount of money to your errors.
Inherited IRA is probably, in my opinion, one of the
most complex issues you can handle in your overall estate plan.
(05:56):
And if you have recently inherited aray, you know how
complicated it can be. But bottom line gets down to
is that if you do not have a plan, the
government has a plan for you, one that's already in place,
and you don't want that plan, believe me.
Speaker 2 (06:17):
So today's topic is what.
Speaker 3 (06:20):
Is your plan for the wealth transfer that's in qualified plans?
How can you basically get proactive and avoid some unbelievably
costly mistakes to your errors, and we'll talk about who
is receiving the assets, what's advantageous, what is an advantageous,
(06:41):
Who is ultimately going to receive the money at the
end of the rainbow, Because there's different rules for different individuals.
But as I've said over and over again, IRA assets
four one K assets, four row three B assets, money
that's in TSPs New York State deferred compensation. Someone has
(07:07):
to pay the tax. Someone has to pay the tax
on these assets. And whether you pay the tax or
someone else pays the tax, typically it's your children and
your grandchildren. You're going to have to make the decision
who is going to be the ultimate person to pay
(07:28):
the tax. So that's today's topic. I'm going to take
a quick break again and I'm going to come back
and we're going to go over this who is inheriting
your IRA and how you ultimately want to have that
money taxed in either in your lifetime or the people
that are receiving the assets.
Speaker 2 (07:44):
I'll be right back.
Speaker 3 (07:46):
Your partner for success, David Kopak, here, your retirement planning
specialists at WGI Tirement Planning Group. We understand that retirees
face many important decisions that can affect their long term
financial success. Some of these decisions revolve around making investments
that can help create a hedge against outliving their income,
the impact of the PLATI taxation, and rising healthcare cost.
(08:08):
Because over ninety percent of our clients are retirees with
similar concerns, we are in the best position to approach
such challenges with experience and skill. Most of our clients
lack the time, the desire, or the experience the manage
to their own investment portfolios.
Speaker 2 (08:23):
We consider it an honor and a.
Speaker 3 (08:25):
Privilege to help our clients make sound investment decisions that
will contribute to a secure future. We welcome the opportunity
become your partner and establishing your retirement plan. Give us
a call today for your complementary consultation at five point
eight five eight zero one nine one nine. That's five
eight five eat zero one nine one nine or rpg
retire on the web. The greatest risk in retirement most
(08:48):
of us have no plan for We're 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 we pay
for a long term caravent? 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
(09:11):
eight five eight zero one nine or RPG retire on
the web. All right, I am back. Thank you for
(09:37):
being patient. Never bring a dog with you to the studio.
That's the golden rule. I want to get back into this.
Things that you need to know is the owner of
the IRA and what beneficiaries must know with this great
wealth transfer. It's estimated, depending on the organization, the publication,
(10:03):
the association, there's anywhere between seventy to ninety trillion dollars
that's anticipated that's going to transfer over the next twenty years.
Right now, there's about sixteen trillion dollars trillion. This is
with the t folks in IRA assets. That does not
include other qualified plans such as four oh one K
(10:25):
four h three BS defined benefit plans. So it's a
whole lot of money estimated to be somewhere around the
forty trillion dollar mark. So you want to make sure
that you're not making costly decisions, not only for yourself,
but also for the individuals that are going to inherit
this unbelievable amount of inherited IRA wealth. Most individuals that
(10:50):
retire will transfer those monies into an inherited IRA. That
means mom dies, Dad dies, the money passes on to
the children. Non spouse beneficiaries have to make a decision.
It used to be for years you would hear over
and over and over again the benefits of owning an
(11:16):
inherited stretch IRA, where you could basically take this money
for decades and stretch it out over decades and it
would become hundreds of thousands of dollars could possibly become
millions of dollars. That is no longer the case. Back
in two thousand and nineteen, the federal government came out
(11:38):
with what they call the Secure Act, And to say
that it shook up long standing practices is an understatement.
A lot of quote unquote expert advisors that had all
of these plans as far as the stretch IRA, throw
it out the window, throw it out the window. There's
(12:02):
no longer the stretch IRA. To keep it simplistic, you
got ten years to get the money out the door.
For a lot of us, you're going to be taking
these distributions when you least want the money, when you're
basically in your high earning years, and the bottom line
gets down to is always taxed as ordinary income. Now,
(12:25):
the worst thing you could do is to cash it
out because pre tax money four oh one k IRA
New York State Deferred Compensation TSP will always be taxed
as ordinary income. So if you have three, four or
(12:46):
five hundred thousand dollars of assets, you don't want to
cash it out because you're going to have a tax
liability in that year of the gross amount of dollars
that you are receiving from the IRA. One of the
things that you want to make sure that you're doing
(13:07):
is to understand the landscape and the options that are
available to you, okay, because they have changed. Not only
have they changed, but you need to understand them because
once the horse is out of the barn, you can't
get back in. The bottom line gets down to is
once you make a decision, they're not going to allow
you to basically say, oh, I made a mistake, put
(13:28):
the money back into the four one k ope, I
made a mistake.
Speaker 2 (13:31):
Put it back in the IRA.
Speaker 3 (13:33):
So you got to make sure that you're dealing with
competent individuals that understand this landscape. Let's go to our
first caller. We got Dave on the phone. Morning, Dave,
I guess it's afternoon now.
Speaker 5 (13:45):
Good morning, am I on the air. You're on the air,
Oh BI, this is Dave Kolpex. Thank you very much.
You're definitely in my wheelhouse today. Just at Somembnail sketch.
My father passed away. Did he had three I ras
that were given to my mother. My mother still around
(14:06):
as near as I understand it, My siblings and I
are the beneficiaries of these I ra's on paper. So
what you're talking about today is something I really need
to hear. You're you have an office in Malta, right right, David?
Speaker 2 (14:22):
Yes, do sir? I have five.
Speaker 3 (14:25):
I've got got five offices in New York State. My primary,
my corporate office, my headquarters is in Malta.
Speaker 5 (14:33):
How when are you there? Because I think I think
what I need to do is call your office, make
an appointment to come in and talk to you, because
basically what I have is a there there's there. There
are three I ra's through a mayor Price Financial Uh
there there. You know some of them are roths. Some
(14:53):
of them are regular iras. I don't I know I
have to take uh, you have to take money out
of them every year and pay taxes on it and
all that. I just I just need to speak to
somebody who isn't going to try to sell me something,
that's going to just tell me, look, this is the deal,
this is what you got, this is what you need
to do.
Speaker 3 (15:11):
Let me ask let me, let me ask you a question, Dave,
just real quickly, a couple of basic questions. You said
that your mother is still alive. Did your mother become
the primary beneficiary of these accounts and you're the contingent beneficiary?
Speaker 5 (15:27):
Yeah, when my father passed away, they automatically went to
my mother. I met with the financial people about a
week ago and we signed. My mother signed paperwork. I
signed the paperwork to transfer them to her, all the accounts.
So they closed the accounts in my father's name, put
(15:47):
them all in my mother's name. And then as part
of that transaction, she had to decide who we're going
to be her beneficiaries for these accounts, and we listed
myself and my three siblings.
Speaker 3 (16:01):
Let me let me ask you another question. Does your
mother need this money, and what kind of health is
she in? Uh As far as needing, no, the money.
We don't need the money. We need money, But there's
other money like my father. My father knew what he
was doing when he when he before you passed. So
(16:22):
there's some CDs sloating around out there. There's bank accounts
as far as liquid assets.
Speaker 5 (16:28):
We have cd so I can get my hands on those.
As far as I'm concerned, this is money that's just
put away, that is invested for whatever rainy day, whatever,
And that's just money to me. It's just money that
I have to manage. That's all it matters to me.
Speaker 2 (16:45):
I'm not you know, and your mother had, Yeah, your
mother had at the time.
Speaker 5 (16:51):
Mother's health is not good.
Speaker 2 (16:52):
Okay.
Speaker 3 (16:53):
The reason why I say that, at the time that
your mother received these assets, as long as she as
long as you and your siblings were named as contingent beneficiaries,
she could have disclaimed those assets and they would have
went to you and not to your mother. But if
that paperwork has already been filled out and they've already
expedited it, then you know the horse Like what I say,
(17:15):
don't do anything until you understand exactly all the options.
Speaker 2 (17:18):
That are available to you.
Speaker 3 (17:19):
So why don't you do me a call my office
and tell them that you talk to me and you
want to have a chat with me face to face,
and we'll set up an appointment. But the bottom line
gets down to is that this is a complicated landscape
and you need to make sure you're dotting your eyes
acrossing your t's. So I'll give you a You got
a pen and a piece of paper. I give out
the telephone number a lot during the program, So just
(17:43):
grab a pen and a piece of paper and.
Speaker 2 (17:44):
Just say that you spoke to me and you want
to come in for an appointment. Great.
Speaker 5 (17:49):
Yeah, no, I actually have a pen and piece of
paper and I've been writing down notes that you've been
talking about here.
Speaker 3 (17:54):
Let me let me yeah, let me give you my number.
It's five and eight five aids are all one, nine, nine,
five eights.
Speaker 2 (18:07):
You got it, brother, And.
Speaker 5 (18:09):
You're and you're right on Route nine, a little bit
north of the Albany Start Tugus Speedway.
Speaker 3 (18:14):
Right, it's exactly right right between the speedway and the restaurant.
Speaker 5 (18:19):
Yeah, oh yeah, I live up here. I know. I
used to actually work at that restaurant. So oh yeah,
I know exactly where your office is.
Speaker 2 (18:27):
Joe.
Speaker 5 (18:28):
You've been very helpful and uh, I'm looking forward to
meeting with you and getting some answers.
Speaker 2 (18:34):
God bless, God bless you have great weekends.
Speaker 5 (18:36):
All right, thank you very much, man, Thank you.
Speaker 2 (18:38):
Okay, brother, God bless all right, we'll go through that.
Speaker 3 (18:41):
I'm gonna I'm gonna talk a little bit more about
what I just talked to David about.
Speaker 2 (18:45):
As far as disclaiming assets.
Speaker 3 (18:48):
It's a it's a viable option. Matter of fact, I'll
go through it right now. I got about seven minutes before.
If if you're in a situation where your mother or father,
whoever it may be, doesn't need the money, then the
first parent passes away and there's a significant amount of
(19:09):
money in IRA assets, and the surviving spouse is named
as the primary and the three kids are named as
contingent beneficiaries, you can basically do what they call disclaim
and inheritance, as unlikely as it may seem. Right beneficiaries
some prefer not to receive the inheritance for a lot
(19:30):
of reasons, health requirementium distributions. They don't need the money.
It's better for the kids to get it than for
the mom to get it because she's in bad health,
like he said, she might have to go into a
nursing home, whatever it may be. So you can you
can disclaim IRA assets, whether it's a traditional IRA or
(19:52):
it's a roth IRA, and basically, if it's properly done,
the status is the primary beneficial, which would be the
mother in this situation is fear fully ill note doesn't exist,
and those assets pass on to the contingent beneficiaries. It's
a non taxable event as almost as if the mother
(20:13):
had already passed away and now the money's outside the
estate and the children can now manage that money based
on the ten year rule which we have right now,
from the non spouse beneficiaries and the money comes to you,
it doesn't go to the spouse that might have health issues,
(20:33):
long term care issues, doesn't need the money. So a
disclaimer has to meet certain requirements under the federal and
straight law, but it is a very very viable option,
especially for people that have significant amounts of money in
IRA assets. If I have a million dollar IRA and
(20:57):
my wife has attention, she's going to get a part
of my pench. We got great sold security, we have
other money, outside and we don't need this IRA. It
makes a lot of sense to get it over the
hill outside the estate and get it to the next generation.
Disclaiming inherited assets avoids tax liability, and now you can
(21:20):
take the money based on your life expectancy, not on
mom's distribution, based off of her RMD required minimum distribution.
So if there's anything that I'm saying today about this
great wealth transfer that's happening and how the impact on
(21:41):
IRA assets was basically put into effect in twenty nineteen
with what they call the Secure Act. It had a
dramatic impact because it minimized the ability for you to
stretch it out over an extended period of time. Okay,
(22:01):
So typically you'll have a spouse, you have non spouse beneficiaries.
Sometimes people will take the assets or apportion the assets,
then they'll send them into a charitable trust of some type.
There are a lot of different ways trust charities. What's
the size of your overall estate. But the big thing is, okay,
(22:22):
is to make sure you understand all of the options.
I'll say that again. You do not have to send
the money to your spouse. You can do a partial
what's necessary for wealth replacement for the surviving spouse, how
much money that spouse is going to need in order
to put a roof over your head, pay for the utilities,
(22:43):
do all the things that you need to do, but
only retain what is necessary, not the full pie the assets.
So beneficiaries have a lot of options, but understand when
they change the rules, the ten year rule, that means
ten years, you have to basically end the amount of
(23:05):
money that's inside that pot. That could be significant. It
can be a huge amount of money that's going to
have to be paid out. So just understand, beneficiary forms
are extremely important. Primary contingent. Okay, the beneficiary must must
(23:29):
understand the rules that are uh the primary benefici You
must understand these rules, especially if it's not necessary for
the full amount of wealth to be transferred.
Speaker 2 (23:39):
To the surviving spouse.
Speaker 3 (23:41):
Okay, we'll talk a little bit more about this, but
again I'm live if you have any questions or comments.
I think it always makes it a little bit more
interesting for the individuals. As I said, the bottom line
you need to understand is that there is a form,
there's a document that you must complete to disclaim inherited assets.
(24:01):
Once you take control of that money. Once the money
comes to you and you have allowed it to be transferred.
Speaker 2 (24:08):
To you, you've lost.
Speaker 3 (24:09):
The opportunity to disclaim assets. So the benefitary who's considering
disclaiming assets should seek legal and financial advice before they
make any decision whatsoever with this great wealth transfer that's
going to happen over the next ten, fifteen to twenty years.
(24:31):
It's already happening. We're already starting to see this at
the retirement planning room. There's a significant amount of money
out there right now, trillions, trillions of dollars in qualified plans.
Make sure you're doting your eyes and crossing your t's.
You understand exactly what you have to do in order
to receive qualified assets as a beneficiary. But again, anything
(24:55):
that I'm talking about, I give out our telephone number
like Dave.
Speaker 2 (24:58):
I just gave to Dave.
Speaker 3 (25:00):
We offer a complimentary consultation. You can call us at
five one eight five eight zero one nine one nine.
That's five one eight five eat zero one nine one nine.
Check us out on the web rpgretire dot com. Again,
that's rpgretire dot com. Just said, listen to Dave on
the radio. I want to come in and talk about
(25:20):
IRA distribution planning. But remember, okay, do not do anything,
don't take any distributions, don't release any money until you
know exactly that you're dott in your eyes and crossing
your t's and you're facilitating exactly what makes economic and
(25:40):
economic and financial sense. And I'll give out our telephone
number one more time. It's five one eight five eight
zero one nine one nine. Our corporate headquarters is in Malta.
We have an office in Glens Falls, Albany, Oneona and Syracuse.
Five one eight five eight zero one nine one nine.
I'll be right back after this QUI message.
Speaker 2 (26:15):
Arm out Virginia.
Speaker 5 (26:17):
Anyways, the captain the girl start much too late.
Speaker 1 (26:21):
M lady jumps down.
Speaker 4 (26:23):
The baby might as well. Will be the ones where
they showed you the statue his bread.
Speaker 2 (26:32):
All right, you're a fact you haven't done any of that.
Wild billy Joel good to hear. I felt like a
billy Joel day, Yeah.
Speaker 3 (26:44):
It did, it did. I'm selling this dog too. So
if you're looking for a dog exact I'm trying to
sell this dog, they'll give you a deal.
Speaker 2 (26:55):
It comes to one head.
Speaker 3 (26:57):
You get a doggie again. If you weren't with us
at the beginning of the show. Of course, I'm trying
to do a show here with my dog, who is
I don't know, either smelled something or something ran by
it or whatever.
Speaker 2 (27:13):
It is. What it is the joy doing live radio.
Speaker 3 (27:18):
You have a question or comment, it is live radio.
I'm here, love it here any question you might have.
We're talking about IRA distribution planning, and if you go
on the web folks and you do a little research
on this, it's an astronomical amount of money that's going
to be transferring. You know, it's somewhere between seventy trillion
dollars and some that says HI as one hundred and
(27:40):
twenty trillion dollars.
Speaker 2 (27:41):
There's one right here.
Speaker 3 (27:43):
Currillion Associates projects that the wealth transfer through two thousand
and forty eight will be one hundred and twenty four
trillion dollars. Now, I don't know what it is, whether
it's seventy trillion or one hundred and twenty trillion dollars.
I know there's a lot of money out there and
IRA assets, and it's money that is very problematic, money
(28:05):
that what we call has an achilles heel to it,
meaning that someone has to pay the tax on this money.
It gets very complicated, very complicated as you age because
of required minimum distribution with pre tax money after tax.
Of course, WROTH four on one K does not have
rm D unless it's a non spouse beneficiary. So that
(28:31):
means that even if you receive WROTH assets, you are
still subject to required minimum distributions if you are a
non spouse beneficiary. The benefit is it's all tax free.
Some people say, to hell of it, give me all
the money. I'm going to do it my way. I'll
invest the money as I see. Okay, so we'll talk
(28:53):
a little bit about the seven key things that you
should know about inherited IRA rules. The first one, the
spouse has the most leeway. The spouse has the ability
to receive these assets in several different choices. They can
treat the IRA as if it was their own right.
(29:18):
They could basically roll the money into their IRA and
they can treat it as their own. They basically can
do IRA and they can leave it under the distribution
rules by their spouse. Typically nine out of ten times
the money is going to get rolled into their own
personal IRA. Why are we doing that? Because it's going
(29:39):
to give you more options it's going to provide you
to basically tactically do what I just talked about with
the gentleman David that called in. You can now name
primary and contingent beneficiaries right.
Speaker 2 (29:54):
You can choose.
Speaker 3 (29:55):
You can choose the percentages, the allocations, and how that
money is ultimately going to be paid out upon your demise.
So when you inherit an IRA, you'll need to take
action to avoid what IRS rules and penalties.
Speaker 2 (30:13):
So if you are.
Speaker 3 (30:14):
A non spouse beneficiary, there are some caveats. An individual
that is ten years younger, it has to be assembling
a chronically ill or a distable child. There's different rules,
but in general it's what we call the ten year rule.
You have to have the money paid out right over
(30:34):
a ten year period of time. RMD now is seventy three,
so your required minimum distribution kicks in at seventy three.
So that means that no matter what the rules are
and how you feel about the IRA asset, the government says, listen,
you turn the age of seventy three right now, you're
(30:57):
required to start taking distributions out of that account RMD.
There's a table called the Uniform lifetimetable that basically gives
you a divisor, and that divisor basically says, this is
how much you're going to have to take out of
the IRA. Over the next few years, the divisor gets smaller,
(31:22):
which means your distributions get larger. And now when you
least want the money, when the distribution becomes the greatest.
So make sure you understand that, okay, especially if you
have the ability to do IRA disclaimer before the assets
even come to you. I can't overemphasize this enough. I
(31:46):
can't tell you how many people that I've met in
my lifetime that have said, listen, Dave, I don't need
all this money. It's too much. You know, I'm just
basically taking it out. I'm paying the tax, and I'm
basically repositioning it, and I'm just putting in a money
market account, whatever it may be. So when you take
your distributions right, make sure you understand most of this
(32:11):
is going to have some form of tax consequence depending
on your zip code the state that you live in,
So you at a minimum, you're going to have federal
tax and depending on the state that you live in,
you could possibly have state tax liability also, so understand
the tax consequences, and also understand the amount of minimum
(32:32):
amount that you're going to have to start taking out
as far as required minimum distribution. The most powerful document
beside your will you trust any of the other documents
that you have as far as life insurance policy, it's
called the beneficiary form. Right, you should be looking at
(32:56):
that at least on an annual basis to make sure
that it mirrors what you're trying to accomplish.
Speaker 2 (33:02):
Why is that.
Speaker 3 (33:04):
Families change? Unfortunately loved ones pass away prematurely. Monies don't
necessarily are going to go to where you want it
to go to if you don't dodg your eyes and
cross your te's. If you have three children and one
(33:24):
of the children passes away, what happens to that child's inheritance.
Does it go to your grandchildren, does it go to
his wife. It sounds simplistic just to name three children,
but you also need to understand. You know, for most
people that come into the retirement planning group, they basically say, listen, Dave,
(33:45):
we want our money to go to our children and
then ultimately to our grandchildren. I hate to say this,
but the reality is is a lot of times we
heard people say, I don't want it to go to
the daughter in law because I don't want her and
to get a new boyfriend, and off they go, and
the harder money that was for my children and my
grandchildren ends up somewhere else. There's a way to draft
(34:08):
the documents in the beneficiary forms that it follows your blood,
that it follows your blood. Were the other thing is,
I want to make sure that you understand one other
thing that's critical here, and it's one that I go.
(34:29):
I'll tell you exactly. I go to Lupero and his team.
I have a lot of respect for them. There are
ways that you can use trust documents in order to
facilitate the distribution off of IRA assets. It is a
very technical and it's someone that has to have great
experience with the rules leaving irase to trust. It's not
(34:54):
what we do as financial advisors. We refer this out
to attorneys that have expertise and utilizing trusts in order
to be a custodian of these assets so the beneficiaries
receive them at the distributions that you wish them to
and also going to the right people. So make sure
you understand that that is an option that's available to you,
(35:18):
but the document. It is critical that you understand that
that document be draft properly. I got another phone call.
Good morning, good afternoon. I apologize.
Speaker 6 (35:30):
Hi, how are you. I'm doing great, Thank you for
taking my call. Yeah, you're talking about issue that is
super important. And you know, I'm not quite retirement age yet.
I'm married with two kids, but we have a lot
of leftover money after our wroth and the five twenty
(35:52):
nine distribution, after saving for a roth and saving for
four ok and doing the five twenty nine. And my
question is it's like we're taking this money that's post
that's post tax, you know, after text already in our
paychecks coming out, and then we're putting it somewhere to
invest this extra money, and then we're taxed on that
is as far as capital gains distributions go. Do you
(36:15):
have any additional ideas to put money that's not going
to be taxed?
Speaker 2 (36:21):
Well, let me ask you a question just out of curiosity.
Speaker 3 (36:24):
Uh, I'm assuming that you're married, you have a spouse.
Speaker 5 (36:27):
Yeah, yeah.
Speaker 2 (36:29):
Are you contributing to a four oh one K program?
Speaker 6 (36:33):
Yes?
Speaker 3 (36:34):
Okay, Uh, does your provider your your employer? The provider
that's managing the four oh one K. Do they afford
you the four oh one K option at work?
Speaker 5 (36:45):
Yes, they do.
Speaker 2 (36:48):
Well.
Speaker 3 (36:48):
To me, that's the greatest one because the limits the
amount of money that you can put into a wroth
four oh one K versus a traditional wroth is much greater.
But also it'll allows you to basically exceed the contribution
levels for the IRA wroth. But you can also have
(37:08):
the same benefit the tax free growth and the tax
free income. So I would start there, are you are
you maximizing those dollars through the employer?
Speaker 6 (37:18):
Yes, so we're doing the twenty You said that we're
doing the four to one k roth. Yep, and we're
all but the matching has to go in as the
as the pre tax.
Speaker 2 (37:29):
That's exactly right, Yep, that's exactly right.
Speaker 6 (37:31):
Okay, I didn't know that.
Speaker 3 (37:34):
No, no, no, there's nothing that you can ask me
that could possibly be dumb.
Speaker 2 (37:38):
So you're doing the right thing. We're taking.
Speaker 3 (37:40):
You're taking the match and then anything after the match.
What you're doing is your fund. You're funneling it into
the wroth for oh one K. So that's phenomenal.
Speaker 6 (37:52):
Ros for both of us. We don't hit the limits,
so we can still do the roths for both of us.
And we're doing the ten thousand a year for the
five twenty nine. And I guess my question too is like,
I mean, that's a good problem to have, right, but
we've also left over money. It's already been taxed, you know,
through a paycheck, and I don't want to put it
into an investment again. I'm getting taxed again.
Speaker 3 (38:12):
Well, here's the answer to it, no way around that. Okay,
what kind of health insurance do you have.
Speaker 2 (38:19):
For the employer inductibles?
Speaker 6 (38:20):
We have it, we have backed better, H say, so you're.
Speaker 3 (38:24):
You've alsold on the HSA accounts also the hell savings account.
Speaker 6 (38:29):
I didn't know. A friend told me I could invest that.
So yes, I was using it every year and are
using as much as I could. I stopped and because
I decided to just use as another investment vehicle. It's
triple tax phrae. It's amazing, I think, I don't. I don't,
and now we don't.
Speaker 2 (38:45):
What's your first name?
Speaker 6 (38:49):
See? And what my problem is that it's extra bloosy.
Speaker 2 (38:54):
Oh.
Speaker 3 (38:54):
The reason why I say is that you're doing everything right.
I mean, you've got the ROTH four one k you
got the ROTH IRA and you're doing the HSA accounts.
The only thing that I would say is that if
you have after tax dollars now and you're gonna have
that yet, Yeah, if you have after tax dollars now
that you're looking to position and tax preference types of investments,
(39:16):
they're out there. It's just a question of when do
you need to touch the money and ultimately how much
risk do you want to be associated with your investment portfolio.
So there are you know, you got tax free municipal bonds,
which have you know, recently done very well under the
low interest rate environments, and the bond portfolios of five
(39:38):
or six years ago they were getting kicked in the
teeth a little bit. But if you have a long term,
hot time horizon, you'll probably be fine because tax freeze,
you can do short duration portfolios and you get all
the benefits of tax free growth and tax free distributions
in the future. So I would start looking at alternative
(39:59):
investments because if you're maximizing what's available to you, either
through your employer or what you're doing out of pocket
in your own personal savings with WROTH, what let me
ask you one other question, do you have pension benefits
with your employers?
Speaker 6 (40:15):
No, no, we do not.
Speaker 2 (40:17):
Okay, well what I would Are you working with a
financial advisor?
Speaker 6 (40:22):
I'm not. I actually was meeting with Vanguard and like
on the dotted line of going with them, and then
I stop because I have a lot of money going
in and out of treasuries and I don't want to
have to pay a fee on that through their their
brokerage or their advisory services.
Speaker 3 (40:38):
Yeah, okay, well we do treasuries. No, we do treasures.
We're not charger our clients for treasuries. But listen, this
is what i'd say to you. We do one hundred
percent of our business through Fidelity, okay, and they're the
custodian of our assets. But we also have the ability
to go anywhere we want, whether it's Vanguard, GP, Morgan,
Golden Sacks. So we have a pretty broad, diversified platform.
(41:03):
But it never hurts to have a sounding board or
a team of advisors. You know, if you want to
do a lot of your own investing and you're worried
about fees and charges, that's negotiable with us. If you're
going to take responsibility, We're not going to charge a
fee for it. But if we take the responsibility, the
highest fee that we charge at the retirement Planning Group
(41:24):
is one percent.
Speaker 2 (41:25):
That's it. That's the maximum that we charge and it
goes down from there.
Speaker 3 (41:29):
So what I would say to you is that it
sounds like you really got your act together. But what
I say is, because we do it fifty sixty hours
you know, a week, and I've been doing it for
forty three years, we can probably give you some suggestions
that can.
Speaker 2 (41:44):
Help you out.
Speaker 6 (41:46):
I do think that's a good idea because you see,
I have a lot of overlap who you know, money
spread all over the place, and have a financial company.
Look at stock spawn versus b.
Speaker 2 (41:58):
It would be it would be an eye to sit
down with you.
Speaker 3 (42:01):
I give out the tele on the phone number quite
a bit, so you know, if you nothing happens. I
mean the first appointment, we just have a chat. We
don't do any business with it. No, we're not obligated.
You're not obligated. What we do is we have you
come in, you bring your spouse in, We have a chat,
and we tell you whether we can help you or not.
You go home, you think about it, and if you
want to move forward, At the second appointment, we get
(42:22):
into more detail what we can do.
Speaker 6 (42:25):
And this is silly to say, but I'd rather pay
like a financial professional than pay the I R S.
Speaker 2 (42:33):
I think we lost you. I'm gonna take a break
right now. I'll be right back. Give us a call.
Speaker 3 (42:38):
No, that's that's fine. I just I think I'm losing
you on your cell phone. Give me give me a
call at the office. I'll be more than happy to
sit down and have a chat with you, my dear.
Let's take a break, Sack. We'll be right back after
this quick message. Your partner for success David Kopik here
w g WISE Retirement Planning specialists the Retirement Planning Group.
We understand that retirees face many important decisions that can
(42:59):
have afect their long term financial success.
Speaker 2 (43:03):
Some of these decisions.
Speaker 3 (43:04):
Revolve around making investments that will help create a hedge
against outliving their assets, the impact of inflation, taxation.
Speaker 2 (43:12):
And rising health care costs.
Speaker 3 (43:14):
Most of our clients like the time, the desire, or
the experience to manage their own investment portfolios. We consider
it to be an honor and a privilege to help
our clients make sound investment decisions. Though contribute to a
secure financial future for them. Because over ninety percent of
our clients or retirees with similar concerns, we are in
(43:35):
the best position to approach such challenges with experience and skill.
Give us a call today at five one eight five
eight zero one nine one nine five eight five eight
zero one nine one nine or RPG retire on the web.
We run out of money in retirement where your investments
provide income for possibly decades, How do you navigate the
two greatest risk in retirement sequence of returns in longevity?
(43:58):
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 your own personal retirement income
distribution plan at five eight five EID zero one nine nine.
That's five eight five eat zero one nine nine.
Speaker 4 (44:32):
If it seems that damp and lusting, let's remember.
Speaker 2 (44:37):
All right, we are back. It's good to be here.
Speaker 3 (44:41):
I'm Dave Kopak, President of the Retirement Planning Group, and
uh we're here. On the weekend, we do two shows,
Retirement Planning Show from seven to nine, and of course
we do Retirement Ready, which is a topic specific show
(45:02):
is from now twelve until one, and we repeat it
on Sunday evenings from eight to nine. The woman Lucy
that just called in, I applaud her because I think
she gets it and her husband gets it. They're trying
to build a portfolio of tax preference money rather than
one that's going to be burdened by taxation as they
(45:26):
go into the retirement years. And typically what we see
at the retirement Planning group is a lot of individuals
that have a lot of money pre tax and ultimately
the taxman cometh. That means someone's going to have to
pay the tax, whoever it may be, whether it's you,
whether it's your beneficiaries. That's why today's topic Inherited. I
(45:51):
raise this windfull windfall of trillions of dollars that's going
to be transferred to the next generation, my generation, to
our children and our grandchildren. And we've had decades of
tax advantage growth, but now it's time to pay the piper.
(46:11):
So if you're navigating this process, whether you're in your forties,
your fifties, your sixties, your seventies, eighties, there are options
and there's also pitfalls, and unfortunately, the older you get,
you're going to have more pitfalls than options. So you know,
(46:33):
whether you're looking for some easy answers, whether you're looking
for a simplistic process in order to facilitate this, it's
not going to happen because a lot of this.
Speaker 2 (46:46):
I was on Lupiro Show.
Speaker 3 (46:47):
Today from nine until ten, and we talked about the
dynamics of this and how all of this has to
fit in, not only in regards to your family, how
you ultimately want to transfer wealth, how you ultimately want
to have investment decisions. Who's going to make them? You know,
(47:11):
we live in a society today which I've set up
a million times over and over again. We have a
lot of drug addiction, we have a lot of alcoholism,
We have dysfunctional families, We have loved ones that have
health conditions. We have a lot of children that have
(47:32):
special needs, autism. You can go through the whole laundry list.
So in order for you to basically have a fully
integrated plan to understand exactly all the options that are
available to you, I can tell you right now it
takes a four letter word. Time takes time. There's no
(47:54):
easy answers to this very complicated thing that we're going
through now, which is the greatest wealth transfer in the
history of mankind. Oh, you can transfer assets, you can
push them down the roadation there are times where it
(48:14):
actually makes sense to get proactive and spend some of
the money down in your lifetime. So some of this
monstrous tax liability is going to be absorbed by the parents,
and ultimately the transfer of wealth, whether it's in a
traditional ira or wroth ira, whatever it may be, some
(48:35):
of the money is always going to be unburdened by
a tax liability, tax preference money. So be aware. Okay,
there are options available to you. I'm not going to
bore you with all the investment options, but probably one
of the most important forms that you have in your
(48:57):
overall estate, it's that beneficiary form. I've said this a
million times on the radio. Right, many people assume that
they've filled out the form correctly, and many people find
out when there's an event that it wasn't filled out properly.
And guess what, Once that person is deceased, you can't
(49:19):
go back and change it. So if you want to
go back, you don't have the right person. The beneficiary
is not who you wanted it to be. You accidentally
forgot to put a name on there too bad. The
horse is out of the barn. And just like I said,
(49:40):
you know, there's different ways in order for you to
sidestep the tax liabilities during your accumulation years, but you're
going to have to pay the tax such as the
Roth four oh and K and the Wroth IRA, which
I love personally. I think it's one of the greatest
things that Washington has done. So where do you turn
(50:04):
for help in this unbelievable wealth transfer that we're starting
to see? First of all, search for competent legal and
financial advice, one that you feel comfortable with that you
have some kind of a synergy. You're building a bond
(50:25):
that you understand that they're working for you and they
understand exactly what you're trying to accomplish. It's been proven
over and over again through Vanguard, through Fidelity, through Schwab,
through any major investment banking firm. Working with a financial
team is beneficial. It helps you you get more net
(50:45):
results working with a financial team. Some IRA custodians are
more invested than others in complex rules and regulations with
iras eight hundred telephone number, or you know one eight
hundred cheap investing. You're going to get what you pay for.
(51:07):
The problem is is that a mistake, bad advice made
on that part of the custodian can create difficulties not
only for your beneficiaries, but can send windfalls of cash
down the road to the federal government and the state government.
And they're not going to be sympathetic.
Speaker 2 (51:24):
Right.
Speaker 3 (51:25):
So this is what I would say. If we can
be of assistance at the Retirement Planning Group, give us
a call. As I said to Dave when he our
telephone number is five one eight five eight zero one nine.
That's five one eight five eight zero one nine one nine.
Say hey, listen, I listened to Dave on the radio
(51:46):
and uh, you know, I want to commend I want
to have some advice, or I want to have a
conversation about IRA distribution planning, wealth and management, asset protection,
whatever it is. But our telephone number five one eight
five eight zero one nine one nine five one eight
five eight zero one nine.
Speaker 1 (52:07):
Thank you for listening to Retirement Ready, hosted by Dave Kopek,
w g wise retirement planning specialist. If you'd like to
talk with Dave. For someone of the Retirement Planning Group,
call five one eight five aid zero one nine one nine.
That's five twenty five eight zero one nine one nine
during business hours, or visit RPG retire dot com. The
(52:30):
Retirement Planning Group has five convenient offices located in Albanin 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
(52:51):
intended to be personal 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 wgy iHeart Studios. Welcome to Retirement Ready
with your host Dave Kopek from the Retirement Ready Show.
Every week, Dave and his team discuss 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 your family.
(00:21):
Now it's time for Dave Kopec, WGY's Retirement Planning Specialist.
Speaker 2 (00:48):
All Right, happy weekend.
Speaker 3 (00:51):
I'm Dave Kopek, president of the Retirement Planning Group, WGY's
Retirement Planning Specialist.
Speaker 2 (00:57):
It's good to be here.
Speaker 3 (00:58):
This is Retirement Ready, which is a topic specific show.
Today we're going to be talking about generational wealth, what's
happening in regards to our overall investments and how we
are handling are transferred.
Speaker 2 (01:21):
Wealth to the next generation.
Speaker 3 (01:25):
Zach, let me take a break here, please, Your partner
for success, David Kopik, heir WG WISE Retirement Planning Specialists
the Retirement Planning Group. We understand that retirees face many
important decisions that can affect their long term financial success.
Speaker 2 (01:41):
Some of these decisions.
Speaker 3 (01:43):
Revolve around making investments that will help create a hedge
against outliving their assets, the impact of inflation, taxation, and
rising healthcare costs. Most of our clients like the time,
the desire, or the experience to manage their own investment
portfolios to be an honor and a privilege to help
our clients make sound investment decisions, though, contribute to a
(02:06):
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 five one eight, five
eight zero one nine one nine five one eight five
eight zero one nine one nine or RPG retire on
the web the eighty six percenters. Do you know that
(02:29):
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.
Speaker 2 (02:43):
Of your lifetime.
Speaker 3 (02:44):
Nobel Prize winning economist William Sharp has 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 to to
start the process of building a retirement income distribution plan.
After forty one years of being in the financial services business,
(03:06):
you need to start taking action to start building your
own personal retirement income distribution plan. How do you do that?
To take action? Five one eight five eight 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,
start building your retirement income distribution plan. Five win eight
(03:27):
five eight zero one nine one nine.
Speaker 4 (03:50):
Some folks lock to get away, take a holiday from
a neighborhood, have a flight to Miami Beach.
Speaker 2 (04:04):
All right. I am back. It's good to be here.
I'm Dave Kopek.
Speaker 3 (04:11):
And you can tell in the background, I am watching
a dog which is not being very patient with me
right now, and I apologize, but hopefully she will.
Speaker 2 (04:23):
Sit down and behave and I apologize for the noise
in the background.
Speaker 3 (04:29):
Hopefully we're going to resolve this and they're gonna go
outside and they're gonna get some fresh air. All right,
we're talking about wealth transfer. As you're quite well aware.
We've had discussions about this over the last two to
(04:50):
three years, about the greatest wealth transfer in the history
of mankind of which a lot of it is what
we call problematic money. IRA money four oh one K
four three B money that there's never a step up
in basis always tax does ordinary income money that if
(05:14):
you don't use in your lifetime, you're sending a tax
liability to the next generation.
Speaker 2 (05:22):
I'm live.
Speaker 3 (05:23):
If you want to interject at all, I would welcome
your phone calls today, but today is irray.
Speaker 2 (05:32):
I can't even say it.
Speaker 3 (05:34):
I are a wealth transfer and how you're basically going
to leave this large amount of money to your errors.
Inherited IRA is probably, in my opinion, one of the
most complex issues you can handle in your overall estate plan.
(05:56):
And if you have recently inherited aray, you know how
complicated it can be. But bottom line gets down to
is that if you do not have a plan, the
government has a plan for you, one that's already in place,
and you don't want that plan, believe me.
Speaker 2 (06:17):
So today's topic is what.
Speaker 3 (06:20):
Is your plan for the wealth transfer that's in qualified plans?
How can you basically get proactive and avoid some unbelievably
costly mistakes to your errors, and we'll talk about who
is receiving the assets, what's advantageous, what is an advantageous,
(06:41):
Who is ultimately going to receive the money at the
end of the rainbow, Because there's different rules for different individuals.
But as I've said over and over again, IRA assets
four one K assets, four row three B assets, money
that's in TSPs New York State deferred compensation. Someone has
(07:07):
to pay the tax. Someone has to pay the tax
on these assets. And whether you pay the tax or
someone else pays the tax, typically it's your children and
your grandchildren. You're going to have to make the decision
who is going to be the ultimate person to pay
(07:28):
the tax. So that's today's topic. I'm going to take
a quick break again and I'm going to come back
and we're going to go over this who is inheriting
your IRA and how you ultimately want to have that
money taxed in either in your lifetime or the people
that are receiving the assets.
Speaker 2 (07:44):
I'll be right back.
Speaker 3 (07:46):
Your partner for success, David Kopak, here, your retirement planning
specialists at WGI Tirement Planning Group. We understand that retirees
face many important decisions that can affect their long term
financial success. Some of these decisions revolve around making investments
that can help create a hedge against outliving their income,
the impact of the PLATI taxation, and rising healthcare cost.
(08:08):
Because over ninety percent of our clients are retirees with
similar concerns, we are in the best position to approach
such challenges with experience and skill. Most of our clients
lack the time, the desire, or the experience the manage
to their own investment portfolios.
Speaker 2 (08:23):
We consider it an honor and a.
Speaker 3 (08:25):
Privilege to help our clients make sound investment decisions that
will contribute to a secure future. We welcome the opportunity
become your partner and establishing your retirement plan. Give us
a call today for your complementary consultation at five point
eight five eight zero one nine one nine. That's five
eight five eat zero one nine one nine or rpg
retire on the web. The greatest risk in retirement most
(08:48):
of us have no plan for We're 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 we pay
for a long term caravent? 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
(09:11):
eight five eight zero one nine or RPG retire on
the web. All right, I am back. Thank you for
(09:37):
being patient. Never bring a dog with you to the studio.
That's the golden rule. I want to get back into this.
Things that you need to know is the owner of
the IRA and what beneficiaries must know with this great
wealth transfer. It's estimated, depending on the organization, the publication,
(10:03):
the association, there's anywhere between seventy to ninety trillion dollars
that's anticipated that's going to transfer over the next twenty years.
Right now, there's about sixteen trillion dollars trillion. This is
with the t folks in IRA assets. That does not
include other qualified plans such as four oh one K
(10:25):
four h three BS defined benefit plans. So it's a
whole lot of money estimated to be somewhere around the
forty trillion dollar mark. So you want to make sure
that you're not making costly decisions, not only for yourself,
but also for the individuals that are going to inherit
this unbelievable amount of inherited IRA wealth. Most individuals that
(10:50):
retire will transfer those monies into an inherited IRA. That
means mom dies, Dad dies, the money passes on to
the children. Non spouse beneficiaries have to make a decision.
It used to be for years you would hear over
and over and over again the benefits of owning an
(11:16):
inherited stretch IRA, where you could basically take this money
for decades and stretch it out over decades and it
would become hundreds of thousands of dollars could possibly become
millions of dollars. That is no longer the case. Back
in two thousand and nineteen, the federal government came out
(11:38):
with what they call the Secure Act, And to say
that it shook up long standing practices is an understatement.
A lot of quote unquote expert advisors that had all
of these plans as far as the stretch IRA, throw
it out the window, throw it out the window. There's
(12:02):
no longer the stretch IRA. To keep it simplistic, you
got ten years to get the money out the door.
For a lot of us, you're going to be taking
these distributions when you least want the money, when you're
basically in your high earning years, and the bottom line
gets down to is always taxed as ordinary income. Now,
(12:25):
the worst thing you could do is to cash it
out because pre tax money four oh one k IRA
New York State Deferred Compensation TSP will always be taxed
as ordinary income. So if you have three, four or
(12:46):
five hundred thousand dollars of assets, you don't want to
cash it out because you're going to have a tax
liability in that year of the gross amount of dollars
that you are receiving from the IRA. One of the
things that you want to make sure that you're doing
(13:07):
is to understand the landscape and the options that are
available to you, okay, because they have changed. Not only
have they changed, but you need to understand them because
once the horse is out of the barn, you can't
get back in. The bottom line gets down to is
once you make a decision, they're not going to allow
you to basically say, oh, I made a mistake, put
(13:28):
the money back into the four one k ope, I
made a mistake.
Speaker 2 (13:31):
Put it back in the IRA.
Speaker 3 (13:33):
So you got to make sure that you're dealing with
competent individuals that understand this landscape. Let's go to our
first caller. We got Dave on the phone. Morning, Dave,
I guess it's afternoon now.
Speaker 5 (13:45):
Good morning, am I on the air. You're on the air,
Oh BI, this is Dave Kolpex. Thank you very much.
You're definitely in my wheelhouse today. Just at Somembnail sketch.
My father passed away. Did he had three I ras
that were given to my mother. My mother still around
(14:06):
as near as I understand it, My siblings and I
are the beneficiaries of these I ra's on paper. So
what you're talking about today is something I really need
to hear. You're you have an office in Malta, right right, David?
Speaker 2 (14:22):
Yes, do sir? I have five.
Speaker 3 (14:25):
I've got got five offices in New York State. My primary,
my corporate office, my headquarters is in Malta.
Speaker 5 (14:33):
How when are you there? Because I think I think
what I need to do is call your office, make
an appointment to come in and talk to you, because
basically what I have is a there there's there. There
are three I ra's through a mayor Price Financial Uh
there there. You know some of them are roths. Some
(14:53):
of them are regular iras. I don't I know I
have to take uh, you have to take money out
of them every year and pay taxes on it and
all that. I just I just need to speak to
somebody who isn't going to try to sell me something,
that's going to just tell me, look, this is the deal,
this is what you got, this is what you need
to do.
Speaker 3 (15:11):
Let me ask let me, let me ask you a question, Dave,
just real quickly, a couple of basic questions. You said
that your mother is still alive. Did your mother become
the primary beneficiary of these accounts and you're the contingent beneficiary?
Speaker 5 (15:27):
Yeah, when my father passed away, they automatically went to
my mother. I met with the financial people about a
week ago and we signed. My mother signed paperwork. I
signed the paperwork to transfer them to her, all the accounts.
So they closed the accounts in my father's name, put
(15:47):
them all in my mother's name. And then as part
of that transaction, she had to decide who we're going
to be her beneficiaries for these accounts, and we listed
myself and my three siblings.
Speaker 3 (16:01):
Let me let me ask you another question. Does your
mother need this money, and what kind of health is
she in? Uh As far as needing, no, the money.
We don't need the money. We need money, But there's
other money like my father. My father knew what he
was doing when he when he before you passed. So
(16:22):
there's some CDs sloating around out there. There's bank accounts
as far as liquid assets.
Speaker 5 (16:28):
We have cd so I can get my hands on those.
As far as I'm concerned, this is money that's just
put away, that is invested for whatever rainy day, whatever,
And that's just money to me. It's just money that
I have to manage. That's all it matters to me.
Speaker 2 (16:45):
I'm not you know, and your mother had, Yeah, your
mother had at the time.
Speaker 5 (16:51):
Mother's health is not good.
Speaker 2 (16:52):
Okay.
Speaker 3 (16:53):
The reason why I say that, at the time that
your mother received these assets, as long as she as
long as you and your siblings were named as contingent beneficiaries,
she could have disclaimed those assets and they would have
went to you and not to your mother. But if
that paperwork has already been filled out and they've already
expedited it, then you know the horse Like what I say,
(17:15):
don't do anything until you understand exactly all the options.
Speaker 2 (17:18):
That are available to you.
Speaker 3 (17:19):
So why don't you do me a call my office
and tell them that you talk to me and you
want to have a chat with me face to face,
and we'll set up an appointment. But the bottom line
gets down to is that this is a complicated landscape
and you need to make sure you're dotting your eyes
acrossing your t's. So I'll give you a You got
a pen and a piece of paper. I give out
the telephone number a lot during the program, So just
(17:43):
grab a pen and a piece of paper and.
Speaker 2 (17:44):
Just say that you spoke to me and you want
to come in for an appointment. Great.
Speaker 5 (17:49):
Yeah, no, I actually have a pen and piece of
paper and I've been writing down notes that you've been
talking about here.
Speaker 3 (17:54):
Let me let me yeah, let me give you my number.
It's five and eight five aids are all one, nine, nine,
five eights.
Speaker 2 (18:07):
You got it, brother, And.
Speaker 5 (18:09):
You're and you're right on Route nine, a little bit
north of the Albany Start Tugus Speedway.
Speaker 3 (18:14):
Right, it's exactly right right between the speedway and the restaurant.
Speaker 5 (18:19):
Yeah, oh yeah, I live up here. I know. I
used to actually work at that restaurant. So oh yeah,
I know exactly where your office is.
Speaker 2 (18:27):
Joe.
Speaker 5 (18:28):
You've been very helpful and uh, I'm looking forward to
meeting with you and getting some answers.
Speaker 2 (18:34):
God bless, God bless you have great weekends.
Speaker 5 (18:36):
All right, thank you very much, man, Thank you.
Speaker 2 (18:38):
Okay, brother, God bless all right, we'll go through that.
Speaker 3 (18:41):
I'm gonna I'm gonna talk a little bit more about
what I just talked to David about.
Speaker 2 (18:45):
As far as disclaiming assets.
Speaker 3 (18:48):
It's a it's a viable option. Matter of fact, I'll
go through it right now. I got about seven minutes before.
If if you're in a situation where your mother or father,
whoever it may be, doesn't need the money, then the
first parent passes away and there's a significant amount of
(19:09):
money in IRA assets, and the surviving spouse is named
as the primary and the three kids are named as
contingent beneficiaries, you can basically do what they call disclaim
and inheritance, as unlikely as it may seem. Right beneficiaries
some prefer not to receive the inheritance for a lot
(19:30):
of reasons, health requirementium distributions. They don't need the money.
It's better for the kids to get it than for
the mom to get it because she's in bad health,
like he said, she might have to go into a
nursing home, whatever it may be. So you can you
can disclaim IRA assets, whether it's a traditional IRA or
(19:52):
it's a roth IRA, and basically, if it's properly done,
the status is the primary beneficial, which would be the
mother in this situation is fear fully ill note doesn't exist,
and those assets pass on to the contingent beneficiaries. It's
a non taxable event as almost as if the mother
(20:13):
had already passed away and now the money's outside the
estate and the children can now manage that money based
on the ten year rule which we have right now,
from the non spouse beneficiaries and the money comes to you,
it doesn't go to the spouse that might have health issues,
(20:33):
long term care issues, doesn't need the money. So a
disclaimer has to meet certain requirements under the federal and
straight law, but it is a very very viable option,
especially for people that have significant amounts of money in
IRA assets. If I have a million dollar IRA and
(20:57):
my wife has attention, she's going to get a part
of my pench. We got great sold security, we have
other money, outside and we don't need this IRA. It
makes a lot of sense to get it over the
hill outside the estate and get it to the next generation.
Disclaiming inherited assets avoids tax liability, and now you can
(21:20):
take the money based on your life expectancy, not on
mom's distribution, based off of her RMD required minimum distribution.
So if there's anything that I'm saying today about this
great wealth transfer that's happening and how the impact on
(21:41):
IRA assets was basically put into effect in twenty nineteen
with what they call the Secure Act. It had a
dramatic impact because it minimized the ability for you to
stretch it out over an extended period of time. Okay,
(22:01):
So typically you'll have a spouse, you have non spouse beneficiaries.
Sometimes people will take the assets or apportion the assets,
then they'll send them into a charitable trust of some type.
There are a lot of different ways trust charities. What's
the size of your overall estate. But the big thing is, okay,
(22:22):
is to make sure you understand all of the options.
I'll say that again. You do not have to send
the money to your spouse. You can do a partial
what's necessary for wealth replacement for the surviving spouse, how
much money that spouse is going to need in order
to put a roof over your head, pay for the utilities,
(22:43):
do all the things that you need to do, but
only retain what is necessary, not the full pie the assets.
So beneficiaries have a lot of options, but understand when
they change the rules, the ten year rule, that means
ten years, you have to basically end the amount of
(23:05):
money that's inside that pot. That could be significant. It
can be a huge amount of money that's going to
have to be paid out. So just understand, beneficiary forms
are extremely important. Primary contingent. Okay, the beneficiary must must
(23:29):
understand the rules that are uh the primary benefici You
must understand these rules, especially if it's not necessary for
the full amount of wealth to be transferred.
Speaker 2 (23:39):
To the surviving spouse.
Speaker 3 (23:41):
Okay, we'll talk a little bit more about this, but
again I'm live if you have any questions or comments.
I think it always makes it a little bit more
interesting for the individuals. As I said, the bottom line
you need to understand is that there is a form,
there's a document that you must complete to disclaim inherited assets.
(24:01):
Once you take control of that money. Once the money
comes to you and you have allowed it to be transferred.
Speaker 2 (24:08):
To you, you've lost.
Speaker 3 (24:09):
The opportunity to disclaim assets. So the benefitary who's considering
disclaiming assets should seek legal and financial advice before they
make any decision whatsoever with this great wealth transfer that's
going to happen over the next ten, fifteen to twenty years.
(24:31):
It's already happening. We're already starting to see this at
the retirement planning room. There's a significant amount of money
out there right now, trillions, trillions of dollars in qualified plans.
Make sure you're doting your eyes and crossing your t's.
You understand exactly what you have to do in order
to receive qualified assets as a beneficiary. But again, anything
(24:55):
that I'm talking about, I give out our telephone number
like Dave.
Speaker 2 (24:58):
I just gave to Dave.
Speaker 3 (25:00):
We offer a complimentary consultation. You can call us at
five one eight five eight zero one nine one nine.
That's five one eight five eat zero one nine one nine.
Check us out on the web rpgretire dot com. Again,
that's rpgretire dot com. Just said, listen to Dave on
the radio. I want to come in and talk about
(25:20):
IRA distribution planning. But remember, okay, do not do anything,
don't take any distributions, don't release any money until you
know exactly that you're dott in your eyes and crossing
your t's and you're facilitating exactly what makes economic and
(25:40):
economic and financial sense. And I'll give out our telephone
number one more time. It's five one eight five eight
zero one nine one nine. Our corporate headquarters is in Malta.
We have an office in Glens Falls, Albany, Oneona and Syracuse.
Five one eight five eight zero one nine one nine.
I'll be right back after this QUI message.
Speaker 2 (26:15):
Arm out Virginia.
Speaker 5 (26:17):
Anyways, the captain the girl start much too late.
Speaker 1 (26:21):
M lady jumps down.
Speaker 4 (26:23):
The baby might as well. Will be the ones where
they showed you the statue his bread.
Speaker 2 (26:32):
All right, you're a fact you haven't done any of that.
Wild billy Joel good to hear. I felt like a
billy Joel day, Yeah.
Speaker 3 (26:44):
It did, it did. I'm selling this dog too. So
if you're looking for a dog exact I'm trying to
sell this dog, they'll give you a deal.
Speaker 2 (26:55):
It comes to one head.
Speaker 3 (26:57):
You get a doggie again. If you weren't with us
at the beginning of the show. Of course, I'm trying
to do a show here with my dog, who is
I don't know, either smelled something or something ran by
it or whatever.
Speaker 2 (27:13):
It is. What it is the joy doing live radio.
Speaker 3 (27:18):
You have a question or comment, it is live radio.
I'm here, love it here any question you might have.
We're talking about IRA distribution planning, and if you go
on the web folks and you do a little research
on this, it's an astronomical amount of money that's going
to be transferring. You know, it's somewhere between seventy trillion
dollars and some that says HI as one hundred and
(27:40):
twenty trillion dollars.
Speaker 2 (27:41):
There's one right here.
Speaker 3 (27:43):
Currillion Associates projects that the wealth transfer through two thousand
and forty eight will be one hundred and twenty four
trillion dollars. Now, I don't know what it is, whether
it's seventy trillion or one hundred and twenty trillion dollars.
I know there's a lot of money out there and
IRA assets, and it's money that is very problematic, money
(28:05):
that what we call has an achilles heel to it,
meaning that someone has to pay the tax on this money.
It gets very complicated, very complicated as you age because
of required minimum distribution with pre tax money after tax.
Of course, WROTH four on one K does not have
rm D unless it's a non spouse beneficiary. So that
(28:31):
means that even if you receive WROTH assets, you are
still subject to required minimum distributions if you are a
non spouse beneficiary. The benefit is it's all tax free.
Some people say, to hell of it, give me all
the money. I'm going to do it my way. I'll
invest the money as I see. Okay, so we'll talk
(28:53):
a little bit about the seven key things that you
should know about inherited IRA rules. The first one, the
spouse has the most leeway. The spouse has the ability
to receive these assets in several different choices. They can
treat the IRA as if it was their own right.
(29:18):
They could basically roll the money into their IRA and
they can treat it as their own. They basically can
do IRA and they can leave it under the distribution
rules by their spouse. Typically nine out of ten times
the money is going to get rolled into their own
personal IRA. Why are we doing that? Because it's going
(29:39):
to give you more options it's going to provide you
to basically tactically do what I just talked about with
the gentleman David that called in. You can now name
primary and contingent beneficiaries right.
Speaker 2 (29:54):
You can choose.
Speaker 3 (29:55):
You can choose the percentages, the allocations, and how that
money is ultimately going to be paid out upon your demise.
So when you inherit an IRA, you'll need to take
action to avoid what IRS rules and penalties.
Speaker 2 (30:13):
So if you are.
Speaker 3 (30:14):
A non spouse beneficiary, there are some caveats. An individual
that is ten years younger, it has to be assembling
a chronically ill or a distable child. There's different rules,
but in general it's what we call the ten year rule.
You have to have the money paid out right over
(30:34):
a ten year period of time. RMD now is seventy three,
so your required minimum distribution kicks in at seventy three.
So that means that no matter what the rules are
and how you feel about the IRA asset, the government says, listen,
you turn the age of seventy three right now, you're
(30:57):
required to start taking distributions out of that account RMD.
There's a table called the Uniform lifetimetable that basically gives
you a divisor, and that divisor basically says, this is
how much you're going to have to take out of
the IRA. Over the next few years, the divisor gets smaller,
(31:22):
which means your distributions get larger. And now when you
least want the money, when the distribution becomes the greatest.
So make sure you understand that, okay, especially if you
have the ability to do IRA disclaimer before the assets
even come to you. I can't overemphasize this enough. I
(31:46):
can't tell you how many people that I've met in
my lifetime that have said, listen, Dave, I don't need
all this money. It's too much. You know, I'm just
basically taking it out. I'm paying the tax, and I'm
basically repositioning it, and I'm just putting in a money
market account, whatever it may be. So when you take
your distributions right, make sure you understand most of this
(32:11):
is going to have some form of tax consequence depending
on your zip code the state that you live in,
So you at a minimum, you're going to have federal
tax and depending on the state that you live in,
you could possibly have state tax liability also, so understand
the tax consequences, and also understand the amount of minimum
(32:32):
amount that you're going to have to start taking out
as far as required minimum distribution. The most powerful document
beside your will you trust any of the other documents
that you have as far as life insurance policy, it's
called the beneficiary form. Right, you should be looking at
(32:56):
that at least on an annual basis to make sure
that it mirrors what you're trying to accomplish.
Speaker 2 (33:02):
Why is that.
Speaker 3 (33:04):
Families change? Unfortunately loved ones pass away prematurely. Monies don't
necessarily are going to go to where you want it
to go to if you don't dodg your eyes and
cross your te's. If you have three children and one
(33:24):
of the children passes away, what happens to that child's inheritance.
Does it go to your grandchildren, does it go to
his wife. It sounds simplistic just to name three children,
but you also need to understand. You know, for most
people that come into the retirement planning group, they basically say, listen, Dave,
(33:45):
we want our money to go to our children and
then ultimately to our grandchildren. I hate to say this,
but the reality is is a lot of times we
heard people say, I don't want it to go to
the daughter in law because I don't want her and
to get a new boyfriend, and off they go, and
the harder money that was for my children and my
grandchildren ends up somewhere else. There's a way to draft
(34:08):
the documents in the beneficiary forms that it follows your blood,
that it follows your blood. Were the other thing is,
I want to make sure that you understand one other
thing that's critical here, and it's one that I go.
(34:29):
I'll tell you exactly. I go to Lupero and his team.
I have a lot of respect for them. There are
ways that you can use trust documents in order to
facilitate the distribution off of IRA assets. It is a
very technical and it's someone that has to have great
experience with the rules leaving irase to trust. It's not
(34:54):
what we do as financial advisors. We refer this out
to attorneys that have expertise and utilizing trusts in order
to be a custodian of these assets so the beneficiaries
receive them at the distributions that you wish them to
and also going to the right people. So make sure
you understand that that is an option that's available to you,
(35:18):
but the document. It is critical that you understand that
that document be draft properly. I got another phone call.
Good morning, good afternoon. I apologize.
Speaker 6 (35:30):
Hi, how are you. I'm doing great, Thank you for
taking my call. Yeah, you're talking about issue that is
super important. And you know, I'm not quite retirement age yet.
I'm married with two kids, but we have a lot
of leftover money after our wroth and the five twenty
(35:52):
nine distribution, after saving for a roth and saving for
four ok and doing the five twenty nine. And my
question is it's like we're taking this money that's post
that's post tax, you know, after text already in our
paychecks coming out, and then we're putting it somewhere to
invest this extra money, and then we're taxed on that
is as far as capital gains distributions go. Do you
(36:15):
have any additional ideas to put money that's not going
to be taxed?
Speaker 2 (36:21):
Well, let me ask you a question just out of curiosity.
Speaker 3 (36:24):
Uh, I'm assuming that you're married, you have a spouse.
Speaker 5 (36:27):
Yeah, yeah.
Speaker 2 (36:29):
Are you contributing to a four oh one K program?
Speaker 6 (36:33):
Yes?
Speaker 3 (36:34):
Okay, Uh, does your provider your your employer? The provider
that's managing the four oh one K. Do they afford
you the four oh one K option at work?
Speaker 5 (36:45):
Yes, they do.
Speaker 2 (36:48):
Well.
Speaker 3 (36:48):
To me, that's the greatest one because the limits the
amount of money that you can put into a wroth
four oh one K versus a traditional wroth is much greater.
But also it'll allows you to basically exceed the contribution
levels for the IRA wroth. But you can also have
(37:08):
the same benefit the tax free growth and the tax
free income. So I would start there, are you are
you maximizing those dollars through the employer?
Speaker 6 (37:18):
Yes, so we're doing the twenty You said that we're
doing the four to one k roth. Yep, and we're
all but the matching has to go in as the
as the pre tax.
Speaker 2 (37:29):
That's exactly right, Yep, that's exactly right.
Speaker 6 (37:31):
Okay, I didn't know that.
Speaker 3 (37:34):
No, no, no, there's nothing that you can ask me
that could possibly be dumb.
Speaker 2 (37:38):
So you're doing the right thing. We're taking.
Speaker 3 (37:40):
You're taking the match and then anything after the match.
What you're doing is your fund. You're funneling it into
the wroth for oh one K. So that's phenomenal.
Speaker 6 (37:52):
Ros for both of us. We don't hit the limits,
so we can still do the roths for both of us.
And we're doing the ten thousand a year for the
five twenty nine. And I guess my question too is like,
I mean, that's a good problem to have, right, but
we've also left over money. It's already been taxed, you know,
through a paycheck, and I don't want to put it
into an investment again. I'm getting taxed again.
Speaker 3 (38:12):
Well, here's the answer to it, no way around that. Okay,
what kind of health insurance do you have.
Speaker 2 (38:19):
For the employer inductibles?
Speaker 6 (38:20):
We have it, we have backed better, H say, so you're.
Speaker 3 (38:24):
You've alsold on the HSA accounts also the hell savings account.
Speaker 6 (38:29):
I didn't know. A friend told me I could invest that.
So yes, I was using it every year and are
using as much as I could. I stopped and because
I decided to just use as another investment vehicle. It's
triple tax phrae. It's amazing, I think, I don't. I don't,
and now we don't.
Speaker 2 (38:45):
What's your first name?
Speaker 6 (38:49):
See? And what my problem is that it's extra bloosy.
Speaker 2 (38:54):
Oh.
Speaker 3 (38:54):
The reason why I say is that you're doing everything right.
I mean, you've got the ROTH four one k you
got the ROTH IRA and you're doing the HSA accounts.
The only thing that I would say is that if
you have after tax dollars now and you're gonna have
that yet, Yeah, if you have after tax dollars now
that you're looking to position and tax preference types of investments,
(39:16):
they're out there. It's just a question of when do
you need to touch the money and ultimately how much
risk do you want to be associated with your investment portfolio.
So there are you know, you got tax free municipal bonds,
which have you know, recently done very well under the
low interest rate environments, and the bond portfolios of five
(39:38):
or six years ago they were getting kicked in the
teeth a little bit. But if you have a long term,
hot time horizon, you'll probably be fine because tax freeze,
you can do short duration portfolios and you get all
the benefits of tax free growth and tax free distributions
in the future. So I would start looking at alternative
(39:59):
investments because if you're maximizing what's available to you, either
through your employer or what you're doing out of pocket
in your own personal savings with WROTH, what let me
ask you one other question, do you have pension benefits
with your employers?
Speaker 6 (40:15):
No, no, we do not.
Speaker 2 (40:17):
Okay, well what I would Are you working with a
financial advisor?
Speaker 6 (40:22):
I'm not. I actually was meeting with Vanguard and like
on the dotted line of going with them, and then
I stop because I have a lot of money going
in and out of treasuries and I don't want to
have to pay a fee on that through their their
brokerage or their advisory services.
Speaker 3 (40:38):
Yeah, okay, well we do treasuries. No, we do treasures.
We're not charger our clients for treasuries. But listen, this
is what i'd say to you. We do one hundred
percent of our business through Fidelity, okay, and they're the
custodian of our assets. But we also have the ability
to go anywhere we want, whether it's Vanguard, GP, Morgan,
Golden Sacks. So we have a pretty broad, diversified platform.
(41:03):
But it never hurts to have a sounding board or
a team of advisors. You know, if you want to
do a lot of your own investing and you're worried
about fees and charges, that's negotiable with us. If you're
going to take responsibility, We're not going to charge a
fee for it. But if we take the responsibility, the
highest fee that we charge at the retirement Planning Group
(41:24):
is one percent.
Speaker 2 (41:25):
That's it. That's the maximum that we charge and it
goes down from there.
Speaker 3 (41:29):
So what I would say to you is that it
sounds like you really got your act together. But what
I say is, because we do it fifty sixty hours
you know, a week, and I've been doing it for
forty three years, we can probably give you some suggestions
that can.
Speaker 2 (41:44):
Help you out.
Speaker 6 (41:46):
I do think that's a good idea because you see,
I have a lot of overlap who you know, money
spread all over the place, and have a financial company.
Look at stock spawn versus b.
Speaker 2 (41:58):
It would be it would be an eye to sit
down with you.
Speaker 3 (42:01):
I give out the tele on the phone number quite
a bit, so you know, if you nothing happens. I
mean the first appointment, we just have a chat. We
don't do any business with it. No, we're not obligated.
You're not obligated. What we do is we have you
come in, you bring your spouse in, We have a chat,
and we tell you whether we can help you or not.
You go home, you think about it, and if you
want to move forward, At the second appointment, we get
(42:22):
into more detail what we can do.
Speaker 6 (42:25):
And this is silly to say, but I'd rather pay
like a financial professional than pay the I R S.
Speaker 2 (42:33):
I think we lost you. I'm gonna take a break
right now. I'll be right back. Give us a call.
Speaker 3 (42:38):
No, that's that's fine. I just I think I'm losing
you on your cell phone. Give me give me a
call at the office. I'll be more than happy to
sit down and have a chat with you, my dear.
Let's take a break, Sack. We'll be right back after
this quick message. Your partner for success David Kopik here
w g WISE Retirement Planning specialists the Retirement Planning Group.
We understand that retirees face many important decisions that can
(42:59):
have afect their long term financial success.
Speaker 2 (43:03):
Some of these decisions.
Speaker 3 (43:04):
Revolve around making investments that will help create a hedge
against outliving their assets, the impact of inflation, taxation.
Speaker 2 (43:12):
And rising health care costs.
Speaker 3 (43:14):
Most of our clients like the time, the desire, or
the experience to manage their own investment portfolios. We consider
it to be an honor and a privilege to help
our clients make sound investment decisions. Though contribute to a
secure financial future for them. Because over ninety percent of
our clients or retirees with similar concerns, we are in
(43:35):
the best position to approach such challenges with experience and skill.
Give us a call today at five one eight five
eight zero one nine one nine five eight five eight
zero one nine one nine or RPG retire on the web.
We run out of money in retirement where your investments
provide income for possibly decades, How do you navigate the
two greatest risk in retirement sequence of returns in longevity?
(43:58):
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 your own personal retirement income
distribution plan at five eight five EID zero one nine nine.
That's five eight five eat zero one nine nine.
Speaker 4 (44:32):
If it seems that damp and lusting, let's remember.
Speaker 2 (44:37):
All right, we are back. It's good to be here.
Speaker 3 (44:41):
I'm Dave Kopak, President of the Retirement Planning Group, and
uh we're here. On the weekend, we do two shows,
Retirement Planning Show from seven to nine, and of course
we do Retirement Ready, which is a topic specific show
(45:02):
is from now twelve until one, and we repeat it
on Sunday evenings from eight to nine. The woman Lucy
that just called in, I applaud her because I think
she gets it and her husband gets it. They're trying
to build a portfolio of tax preference money rather than
one that's going to be burdened by taxation as they
(45:26):
go into the retirement years. And typically what we see
at the retirement Planning group is a lot of individuals
that have a lot of money pre tax and ultimately
the taxman cometh. That means someone's going to have to
pay the tax, whoever it may be, whether it's you,
whether it's your beneficiaries. That's why today's topic Inherited. I
(45:51):
raise this windfull windfall of trillions of dollars that's going
to be transferred to the next generation, my generation, to
our children and our grandchildren. And we've had decades of
tax advantage growth, but now it's time to pay the piper.
(46:11):
So if you're navigating this process, whether you're in your forties,
your fifties, your sixties, your seventies, eighties, there are options
and there's also pitfalls, and unfortunately, the older you get,
you're going to have more pitfalls than options. So you know,
(46:33):
whether you're looking for some easy answers, whether you're looking
for a simplistic process in order to facilitate this, it's
not going to happen because a lot of this.
Speaker 2 (46:46):
I was on Lupiro Show.
Speaker 3 (46:47):
Today from nine until ten, and we talked about the
dynamics of this and how all of this has to
fit in, not only in regards to your family, how
you ultimately want to transfer wealth, how you ultimately want
to have investment decisions. Who's going to make them? You know,
(47:11):
we live in a society today which I've set up
a million times over and over again. We have a
lot of drug addiction, we have a lot of alcoholism,
We have dysfunctional families, We have loved ones that have
health conditions. We have a lot of children that have
(47:32):
special needs, autism. You can go through the whole laundry list.
So in order for you to basically have a fully
integrated plan to understand exactly all the options that are
available to you, I can tell you right now it
takes a four letter word. Time takes time. There's no
(47:54):
easy answers to this very complicated thing that we're going
through now, which is the greatest wealth transfer in the
history of mankind. Oh, you can transfer assets, you can
push them down the roadation there are times where it
(48:14):
actually makes sense to get proactive and spend some of
the money down in your lifetime. So some of this
monstrous tax liability is going to be absorbed by the parents,
and ultimately the transfer of wealth, whether it's in a
traditional ira or wroth ira, whatever it may be, some
(48:35):
of the money is always going to be unburdened by
a tax liability, tax preference money. So be aware. Okay,
there are options available to you. I'm not going to
bore you with all the investment options, but probably one
of the most important forms that you have in your
(48:57):
overall estate, it's that beneficiary form. I've said this a
million times on the radio. Right, many people assume that
they've filled out the form correctly, and many people find
out when there's an event that it wasn't filled out properly.
And guess what, Once that person is deceased, you can't
(49:19):
go back and change it. So if you want to
go back, you don't have the right person. The beneficiary
is not who you wanted it to be. You accidentally
forgot to put a name on there too bad. The
horse is out of the barn. And just like I said,
(49:40):
you know, there's different ways in order for you to
sidestep the tax liabilities during your accumulation years, but you're
going to have to pay the tax such as the
Roth four oh and K and the Wroth IRA, which
I love personally. I think it's one of the greatest
things that Washington has done. So where do you turn
(50:04):
for help in this unbelievable wealth transfer that we're starting
to see? First of all, search for competent legal and
financial advice, one that you feel comfortable with that you
have some kind of a synergy. You're building a bond
(50:25):
that you understand that they're working for you and they
understand exactly what you're trying to accomplish. It's been proven
over and over again through Vanguard, through Fidelity, through Schwab,
through any major investment banking firm. Working with a financial
team is beneficial. It helps you you get more net
(50:45):
results working with a financial team. Some IRA custodians are
more invested than others in complex rules and regulations with
iras eight hundred telephone number, or you know one eight
hundred cheap investing. You're going to get what you pay for.
(51:07):
The problem is is that a mistake, bad advice made
on that part of the custodian can create difficulties not
only for your beneficiaries, but can send windfalls of cash
down the road to the federal government and the state government.
And they're not going to be sympathetic.
Speaker 2 (51:24):
Right.
Speaker 3 (51:25):
So this is what I would say. If we can
be of assistance at the Retirement Planning Group, give us
a call. As I said to Dave when he our
telephone number is five one eight five eight zero one nine.
That's five one eight five eight zero one nine one nine.
Say hey, listen, I listened to Dave on the radio
(51:46):
and uh, you know, I want to commend I want
to have some advice, or I want to have a
conversation about IRA distribution planning, wealth and management, asset protection,
whatever it is. But our telephone number five one eight
five eight zero one nine one nine five one eight
five eight zero one nine.
Speaker 1 (52:07):
Thank you for listening to Retirement Ready, hosted by Dave Kopek,
w g wise retirement planning specialist. If you'd like to
talk with Dave. For someone of the Retirement Planning Group,
call five one eight five aid zero one nine one nine.
That's five twenty five eight zero one nine one nine
during business hours, or visit RPG retire dot com. The
(52:30):
Retirement Planning Group has five convenient offices located in Albanin 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
(52:51):
intended to be personal 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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