Episode Transcript
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Speaker 1 (00:09):
All right, I'm Dave Kopek. Glad to be here on
this Saturday, August ninth, which is hard to believe. We're
in August already, and I'm live. I'm in the studio,
just left the lake, came down to do today's show
(00:29):
and also the show that we do in Syracuse from
one to two. But I'm live in the studio. If
you have any questions while I'm doing the show, don't
be afraid to call one eight hundred Talk WGY. That's
one eight hundred eight two five fifty nine forty nine,
one hundred Talk WGY. We're going to talk about something
(00:53):
that we're starting to see and as you're quite well aware,
this show is retirement Ready. It's a top specific show,
and I'll talk a little bit about what's happening at
the retirement Planning Group. What's happening is that my generation
is starting to pass. It means that we're now starting
(01:17):
to transition the wealth that the boomers have created in
their lifetime. And that's what we call about the retirement
planning The eighty five trillion dollars of wealth transfer over
the next twenty to thirty years. It's the largest wealth
(01:41):
transfer in the history of mankind, and it's something that
it's unprecedented and for some of us, it's going to
reshape our lives. And you also need to sit down
and have an understanding of the type of wealth that's
(02:02):
being transferred. It's not uncommon for me to sit down
with individuals and I'll say to them, do your children
have any idea how much wealth is going to be
transferred here to the next generation? No, not really, which
is not good. Which is not good because they need
(02:26):
to understand, especially with IRA assets, and that's what we're
going to focus in on today. IRA assets. Why IRA
assets are very complicated, especially for non spouse beneficiaries. So
(02:46):
we're going to talk a little bit how this unprecedented
financial shift is reshaping how individuals are setting up their
beneficiary designations. But we're also want to talk a little
bit about what you, as a beneficiary should be thinking
about if mom and dad are having to chat with
(03:08):
you as far as the wealth transfer. You know, the
positive is is that we're living longer lives and that
means for a lot of us what we anticipated as
far as this wealth transfer might take a little bit
longer than what we anticipated, but effective planning means more
(03:34):
than just ensuring that you don't give it all away
to the federal and the state. It means how do
you reposition your wealth that allies not only with your values,
minimizes tax liabilities, and also ensures a smooth succession as
(03:54):
far as the transfer of wealth. So we're going to
talk to the people out there that are born between
forty six and sixty four, which we call the Boomers.
Boomers collectively hold more than half of the wealth in
the United States right now. Half of the wealth is
(04:16):
controlled by the Boomers. Much of this is tied up
in real estate, investment portfolios, businesses, and a good chunk
of money is in retirement assets. So, as I said,
(04:37):
depending on who you look at and who you read,
it's estimated that somewhere between eighty to eighty five trillion
dollars of wealth will transfer between now and the year
two thousand and forty five two thousand and fifty. A
lot of it will go to charities, but forgivers and recipients,
(05:02):
when overemphasized, planning is essential not only to preserve the wealth,
but also to make sure that it's going where you
want it to go. So for some of you that
have been blessed with great retirements, great savings, You've had
(05:22):
significant assets that you've accumulated. The state planning is critical
for your retirement strategy. Critical. So do you have a
comprehensive estate plan. Do you have wills, durable power of attorneys,
(05:46):
health care proxies, trust beneficiary forms that are set up properly.
Do you understand what it means to disclaim assets? So
retirees people of my generation should be working with advisors
(06:08):
today to basically employ what we call a tax efficient
strategy in order to transfer the wealth to the next generation.
You know, receiving a significant inheritance where a lot of
our kids can be both a blessing and a challenge
(06:29):
for some of us. A lot of our kids might
not have the financial literacy or guidance. You want to
make sure that they don't squander these assets. You want
to make sure that they understand the amount of wealth
that's being transferred. Maybe you need to have a trust
(06:50):
or a fiduciary in order to manage these assets for
a specific period of time in order for them to
basically have the wherewithal in order to manage this type
of wealth transfer. So as We're all quite well aware.
When you win the lottery, it's an influx of wealth. Suddenly.
(07:13):
They can have a major impact, not only in your
regards to your ability to deal with it, but what's
your lifestyle is going to change? What's your strategy? You know.
One of the things that I consistently hear over and
over and over again with prospective clients is that we
(07:37):
haven't had discussions about this. And I don't think it's
rare because of the generation we were the ones that
created it. Maybe there's a little bit of a hesitancy
to show our cards to our children. But I'm going
to focus in today and what I think are probably
the most complicated wealth transfer for assets that a lot
(08:02):
of us have. But as I said, we should hold
intentional discussions with our kids clarify what we want to
do with our estate plans. Legacy planning is not only
about transferring money. It's about passing on family heirlooms, you know,
(08:29):
passing on things that are dear to our soul. So
not only should there be some kind of a discussion
about it, I think it needs to be in black
and white. There's a lot of moving parts that's quite
well aware of Washington, the state of New York. They
love changing tax laws. Stock markets are volatile, family dynamics
(08:52):
are volatile. Working with a team of financial advisors, I
think is critical, and you need to coordinate approach that
basically involves not only your financial team, the state planning attorneys,
tax professionals. Is for some of us, it's not a
bad idea to basically have some kind of counseling. Possibly
(09:16):
know that sounds kind of weird, but when you're laying
millions of dollars or hundreds of thousands of dollars in kids,
you want to make sure that they understand exactly what
is being laid on their laps as far as the
ability for them to change their life, maybe in a
very very very positive way. So we're going to take
(09:38):
our first break when we come back. This is retirement Ready,
and we're going to talk a little bit more about
this legacy that's transfer. You've spent a lifetime saving for retirement.
Now it's time to make that money work for you.
Here's the secret most people miss. You have to create
your own retirement income plant. Social Security is not enough.
Pensions are rare. You need a strategy that turns savings
(10:00):
into monthly income that will last a lifetime. At the
Retirement Planning Group, we build customized income distribution plans so
you can retire with confidence, Retire smart, Live well. Call
eight eight eight five eight zero nine one nine for
your complementary consultation. Are you ready for retirement or just
hoping it works out? Don't leave your future to chance.
(10:23):
At the Retirement Planning Group, we help you create a
personalized retirement plan so you can relax knowing you are prepared.
Take action today. Called eight eight eight five eight zero
one nine one nine. That's eight eight eight five eight
zero one nine one nine, or visit us at our
website rpgretire dot com to schedule your complementary consultation. Your
(10:43):
future will say thank you. We are living through the
greatest wealth transfer in the history of mankind. Trillions of
dollars of wealth will change hands from one generation to
the next, your money to our beloved children and grandchildren.
Are you ready? Your future is written by chance, it's
written by action. Now's the time to build your plan,
protect your assets, and position yourself for the opportunity. Don't wait,
(11:07):
take action. The future favors those that are prepared. Call
eighty eight five eight zero one nine one nine. That's
eighty eight five eight zero one nine one nine. Retirement
is in a Sunday thing. It's a now thing. Whether
you're just starting out or nearing the finish line, the
best time to build your retirement plan is today. Don't
(11:28):
wait for the right moment. Let's create a plan that
works for you. Secure your future and the freedom that
comes with it. Call my office today and take action.
Eighty eight five eat zero one nine one nine. That's
eighty eight five EID zero one nine nine, and your
future will thank you. All Right, we are back. I'm Dave.
(12:00):
I am the president of the Retirement Planning Group. We've
got five locations in New York. We used the Regis
Corporation outside of New York, which is Executive Suite. So
whether you're in Boca, whether you're in Atlanta, any of
the major cities, Regis has offices and we have the
(12:23):
ability to sit down with you, have a chat, either
come to your home, boat, train, plane, whatever it may be.
We have clients now in twenty eight states and it's
always a pleasure to help people. I've been doing it
a long time. This is my forty third year in
the business, going into my forty fourth year. So I've
(12:47):
seen good markets, bad markets. I've seen Pinocchio's and non Pinocchio's.
I've seen you know, everybody that things are the greatest
thing since sliced bread. But the bottom line is that
understanding exactly where you are, where you want to go,
and having a plan. They keep on saying that over
and over and over again to people. If you don't
(13:10):
have a plan, any destination will do. Sounds simplistic, but
I'm telling you most of you that are listening right
now have no plan. You have no idea what the
hell you're doing. You're just spinning your wills. And I
don't say that in a negative way because it's the
majority of the people that come into the retirement planning group.
(13:32):
So we're talking about this wealth transfer. For some people,
it's going to be a sudden impact of wealth and
how theyre going to deal with it and how are
they going to basically handle this unbelievable inheritance. Whether you
have one child, five, ten, fifteen, whatever, it may be
(13:55):
one of the most overlooked elements of retirement and inheritance planning.
His communication, his communication, and it's I think critical that
families basically don't avoid the conversation about money, death and legacy.
(14:17):
You no one likes uh to sit there. I was
had dinner last night at a fantastic restaurant in Bolton Landing,
New York. If you haven't been there yet, Beyond the Sea,
Beyond the Sea. I went there with my wife, my son,
(14:40):
his beautiful girlfriend, and my daughter and we had this
fantastic dinner. And if you're in Bolton Landing, you go
up until Dave and his wife Mary. You got a referral.
They had a unbelievable staff, couldn't been nicer. And those
(15:03):
are the things that you want. Those are the things
that you want as you age. You want to sit
with your family. You want to have great conversations. But
the reason why I'm saying this, folks, is that for
doing this for as long as I have, you don't
want to lead your family into confusion, disputes, and misaligned
(15:25):
expectations as far as what mom and Dad's intentions were.
So when I say that you should hold intentional discussions,
it's an understatement. Legacy planning all this money that we've accumulated,
(15:45):
the boomers half of the wealth It's not only about
transferring money, it's about passing on the stories, the lessons.
You know, my kids have heard too many times how
hard mom and data worked. Okay, but I think it's
important that they understand that none of this was given
(16:07):
to us. We worked like dogs for years. Right, So
you want to have kind of like a family mission
statement to solidify this legacy, this transfer of wealth to
the next generation. So I'm gonna give you some healthful hints,
and we're gonna have to take a break here shortly
(16:28):
for the news at the bottom of the hour. Right,
laws change, stock markets change every day, the stock market
change in the bottom market up or down. It is critical.
It is critical that you find someone to work with
(16:50):
that can coordinate a plan that facilitates what you're trying
to accomplish, not only as far as your estate plan,
but also the legacy that you wish to leave for
your family, your loved ones, your charities, your grandchildren, et cetera.
So you can ensure that the wealth is preserved protected.
(17:13):
And here's the word purposely passed on. So here's my
bullet points on this first segment of today's show. You know,
there's a lot of people out there that like to
pooh pooh financial advisors, and I always kind of scratch
(17:34):
my head because we do it fifty sixty seventy eighty
hours a week, depending on how busy we are, And
the reason why we do it is that I think,
deep down inside, most financial advisors have a passion for
helping people. So this is the things that I think
that a financial team can help you with. The first
(17:57):
and foremost is laws change. The state tax laws change
depending on the amount of wealth that you've created. You
need to understand that inside and out. Secondly, what will
your zip code be? Where will you live? Critical not
(18:19):
only as far as the state tax, but also asset preservation.
I heard Lou Piro today talk on his show that
the average cost in the Capital District right now is
somewhere between seventeen and eighteen thousand dollars per month for
a long term care facility here in the Capitol District region.
(18:43):
Should you do a trust? Is it a revocable or
is an irrevocable? What are the legal documents that you need?
Do you need a will you need an orb of
power attorney? Do you need a health care proxy? Vocable?
Irrevocable dynasty, all the different trusts that are out there.
(19:08):
For a lot of us that have been very fortunate
and been blessed, charitable givings is basically for some of
us on the top. But do you know the strategies.
Do you understand how to plan charitable giving a lot
of different strategies out there, a lot of different ways
(19:29):
to gift assets. Educating your family. You know, I've been fortunate.
All three of my children have gone to college. My
son David, my oldest son, has done extremely well in
the real estate business. My son Christopher works with me
(19:49):
in the financial services industry. My daughter is going to
fau to be a child psychologist. So they're pretty balanced kids,
pretty educated, and they're also I think, in my opinion
this is a father's opinion. They understand that what mom
and dad went through in order to create the estate
(20:12):
that we have, but they also need to understand that
there are certain things out there that can basically be
pits pits that they can be bumps in the road,
they can really have a financial impact not only on them,
(20:34):
but also as far as what ultimately what we want
to do as far as our legacy. So educating the
family on these different assets that you might be transferring
to them, and ultimately they're going to have to make
(20:54):
the final decision. I mean, I've been fortunate in my life.
I have a home unlike George. My wife loves it,
my children love it. I want to make sure that
it continues for years to come. And I've seen nightmares
(21:17):
with families because it wasn't set up properly as far
as the transfer of wealth and what would happen with
a vacation home. And I don't care if it's in
Lake George, if it's in a skihouse in Vermont, and
go through all the multitude of different properties that our
clients have that they basically want it to have longevity
with it. They want to make sure that the property
(21:40):
stays in the family for decades. Maybe you won't. I mean,
there are there as certain criteria that would have to
happen in order for the property be sold, and that's
something that needs to be addressed also. But bottom line
gets down to it, and I'll say this heartfelt. You
(22:08):
want to make sure that you have the ability to
allow your kids to adjust. Whatever your wishes are, your
legacy and your intention are not necessarily going to be theirs,
and then finally the last one, the younger generation, my grandkids.
(22:36):
How do you protect them? How do you make sure
that the legacy continues, or the transfer of wealth continues.
Working with your financial team and with your advisor, you
can build out this holistic financial plan that'll not only
optimizes what we call tax strategies, but also maybe possibly
(22:57):
retirement a legacy for them, depending on how much money
you've accumulated. So again, there's this huge transfer of wealth
and it's happening as I speak. As I speak, this
is happening. We have people that are all over the
(23:22):
country that are calling us because they listen to our
show and they understand that this is something that they
really need to make a forefront. They got to put
it on the top of the list. Now at the
bottom of the list, people are living longer, families are
more financially secure, and the bottom line gets down to
(23:43):
you need to have an effective retirement plan. So I
got to take a break for a couple of minutes
here for the bottom of the hour, we have news.
But when I come back, I'm more than happy to
take your phone calls. Today we're talking talking about retirement
planning in the age of the eighty five trillion dollar
(24:06):
wealth transfer. Let's say that again. Retirement planning in the
age of the eighty five trillion dollar wealth transfer. It's
pretty astonishing, folks. What's going on right now. We're seeing it,
We're in the mix of it. Right now. We're talking
about people and children. They're gonna their eyes are going
(24:29):
to pop out of their heads when they see how
much money mom and Dad have accumulated. So when I
come back, we'll talk about this in greater detail. But
we have open lines one eight hundred talk WGY will
be right back. All right, we are back on Dave Kopek.
(24:53):
This is retirement ready. It's a topic specific show, folks.
We try to focus in on things that I'm seeing
after forty three years of being in this business. And
I can tell you right now it's happening. As I speak,
This wealth transfer is happening. It's happening probably quicker than
(25:17):
I would like, because I'm part of that generation, the
Baby Boom generation. It's eighty five trillion dollars of wealth.
It's all the money that we've accumulated. Well over fifty
percent of the wealth in the United States right now
is controlled by bombers and it's all heading down the
road to another destination. So are you prepared? So I'm
(25:39):
not going to let this nice man wait much longer
because he's been very patient. Mike in Aubany, Hi, Mike, Hi.
Speaker 2 (25:50):
Well, first, I didn't catch all of your I called
just before you went to the news break. Yes, sir,
and I didn't know that you were focusing on a
certain aspect of investing or what to do with money.
Speaker 1 (26:04):
Now we're open. Whatever you want, whatever your talk about,
my good man, I'm more than happy to talk about awesome.
Speaker 2 (26:12):
I'll make it short and sweet. I've retired when I
was sixty, going to be sixty six soon. I work
for the state. I've got the wealth. I never did
anything to protect it. I've got about three quarters of
a million in deferred comps still sitting in two funds,
Admiral Shares of the Vanguard Admiral Shares and the Wellington Fund,
(26:38):
like a sixty forty split joint. Two funds I got.
They've been doing so good. I hate to pull out
of them because the twenty year has been I made
so much money it's unbelievable. I mean more money since
I retired, just the compounding. But anyway, Yeah, in the
pension it's like seven thousand a month, so I'm not
really touching that investment money yet. But you know, I
got to start drawing on that before it gets too
(27:00):
late and I got to draw it too much. And
I haven't protected myself as far as God forbid. Something
health related happened. I got to do what's my best
step to take at this point? Do you think?
Speaker 1 (27:10):
Well, let me ask you. The seven thousand a month,
does that include your social Security benefit?
Speaker 2 (27:17):
That's my pension and my Social Security And that's the
actual take home, that's what's put into my account every month.
Speaker 1 (27:24):
So you're making eighty Yes, you're making about eighty five
thousand dollars a year without touching any of the qualified assets.
Speaker 2 (27:32):
Yes, about eighty three eighty four?
Speaker 1 (27:35):
Yes, So when you say you haven't protected anything, have
you done a trust for your house?
Speaker 2 (27:41):
The only thing I've done is a will? Is everything's
left to one person? Everything?
Speaker 1 (27:46):
And do you have a wife?
Speaker 2 (27:47):
Oter than that I've do?
Speaker 1 (27:49):
You have a white? No?
Speaker 2 (27:50):
Single?
Speaker 1 (27:51):
Okay? Now do you care where it goes?
Speaker 2 (27:56):
Well? Yeah, I mean I'd like to donate some, but
I hate to see me spending all that money. In
two months from now, three months from now, something real
bad happens and I got to go someplace and it
wipes out that money. That's what I'm afraid of. You
don't hear the horror stories of going into a home
(28:17):
or something and they just wipe you out.
Speaker 1 (28:19):
Wind all about it, because I see it. I mean,
I've been doing it for forty three years. No imagine,
you know, I've seen people. I've seen people go through
their life savings for home care assistant living in a
long term care facility.
Speaker 2 (28:30):
Yeah, and that's what I'm afraid of. Is there a
way do you think I could protect that?
Speaker 1 (28:34):
We definitely, there's definitely a way for you to protect it.
It's just a question you want to motivate and do it.
Speaker 2 (28:41):
Well, that's why I'm calling. And you are the guy
that I hear all the time, and you got a
good rep. Well, I would like to speak with you.
Speaker 1 (28:50):
Well you can if you call my office. You can
say that you spoke to me on the air today
and I'll sit down with your face to face. I
hate to say this, I'm very busy and I travel
all over the country and I don't I'm not I'm
not patting myself in the back or I'm not an
ego maniac. Uh. Sometimes I'm very yourself on the back. Well,
sometimes I'm very direct with people because I I don't
(29:13):
have time to spend my wheel, so I'll tell you
exactly what you need to do and U Sometimes people
get a little bit taken back. Sometimes my staff says me,
you know what, you're kind of kind of direct with
that person. But you're easy to fix. You're easy to fix, Mike,
You're easy to fix. But if you listen to me,
I can put you on I think a lot better situation.
Speaker 2 (29:36):
My good man. Okay, and that's what I'm looking for.
Speaker 1 (29:40):
Call my office. Call my office and you're telling me
I talked to you today, and I'm here. I'm here
now until the end of December, pretty much. I'm going,
uh for two weeks in September, I'm traveling. I'll be
more than happy to sit down with you and I'll
tell you exactly what I think.
Speaker 2 (30:01):
Can you give your number out sure? Or is that something?
No station?
Speaker 1 (30:04):
No, it's five eight five eight zero.
Speaker 2 (30:11):
Zero yep, nineteen nineteen nineteen.
Speaker 1 (30:15):
Just say that you talk to me on the radio
today and then you want to come in and have
a face to face down. We have offices in Albany, Malta,
you know, throughout throughout Syracuse, Oneada, Glens Walls, So wherever
you want to meet, and if you know, I'll tell
you exactly. I understand exactly how you feel because there's
(30:35):
a lot of people that come in and have the
same conversation with me. But there are things, Mike, that
you can do. The problem that you have right now
is that you're fully exposed. You don't have a spouse.
I know you don't have a spouse right now. That
if something happens to me, to you right now, all
hell's going to break loose.
Speaker 2 (30:52):
I know it. I never already had a scare so
that that's why I'm calling it.
Speaker 1 (30:56):
Am I scared? Am I scaring you?
Speaker 2 (30:59):
Yet?
Speaker 1 (31:00):
No?
Speaker 2 (31:01):
No, I know it's gonna The bottom line is gonna.
It's gonna go some money to protect me, and I'm
okay with that. I'd rather see you go towards protecting
me than having it just taken away from me.
Speaker 1 (31:10):
Well not only that, but I'd rather I'd rather see
the money go to your family and loved ones and
things that you have a soft spot in your heart
for rather than basically going to the county.
Speaker 2 (31:21):
Well, is a new Zeo six Corvette. Okay too, I
get to it by myself.
Speaker 1 (31:28):
I get one, I get one. I would get one
for Sunday, and you get one for Wednesday.
Speaker 2 (31:34):
Well, as long as it doesn't rain, if there's a
if there's a cloud in Buffalo, the car wouldn't go out.
Speaker 1 (31:39):
I'll tell you what.
Speaker 2 (31:39):
That's my dream car.
Speaker 1 (31:41):
Well, i'll tell you what. A couple of years ago,
I'll tell you a real funny story, real quick here.
My wife has always been my best friend, and she's
always been my rock, and she always wanted a Corvette.
A few years ago, I went out and I bought
her a brand new Corvette. And I said to this,
and I said to I said, this is for standing
beside me, being my rock, good times and bad. I
(32:04):
can't fit in the damn thing. So I call I
call it the Barbie car. I call it the Barbie car.
Speaker 2 (32:11):
What color did you get? What color did you get? White?
Speaker 1 (32:13):
Red? Now? Red?
Speaker 2 (32:15):
Red?
Speaker 1 (32:16):
Oh? The red?
Speaker 2 (32:17):
Yeah, the red is nice. I gotta admit the red
is nice, and.
Speaker 1 (32:20):
She loves it.
Speaker 2 (32:22):
I gotta go black.
Speaker 1 (32:23):
And well, i'll tell you what. Black black black Bart
black Bart. Mic Well, I'll tell you what if you
want to go, if you want to, if you want
a Corvette brother, we can probably help you.
Speaker 2 (32:35):
I think I can do that. I already got the
money saved my checking account. Just waiting to find the
twenty nineteen I'm looking for. It's the last style of
that body style before they went to the rear engine.
And uh, I just love that twenty nineteen. The lines
on the twenty nineteen is amazing. But I know we're
getting way off track.
Speaker 1 (32:53):
We're no, no, that's all right, that's all right. I'll tell
you what you know, you know what, You're only here once.
You might as well maximize it and have fun. I
look forward to I look forward to having a chat
with you, Mike.
Speaker 2 (33:06):
Okay, thank you so much. I appreciate your time. You
are awesome. Thanks be okay, good care, have a great day.
God bless God, bless thank you.
Speaker 1 (33:14):
Yeah, that's why we're here. That's why we're here. We're
here hopefully to.
Speaker 2 (33:21):
You know.
Speaker 1 (33:21):
I'm always kind of flabbergasted. A lot of times we'll
sit down with individuals and they'll say to us that,
you know, if our kids are doing great and We've
got all this money and we don't know what to
do with it, and you know, we're kind of sitting here.
We're reluctant to spend. We were never spenders. It doesn't
(33:42):
necessarily mean that you have to spend. But what it
does mean is that, you know what sometimes basically giving
yourself kind of a surprise or a gift for everything
that you've gone through. You know, life's tough. Life is
tough a lot of things. I sat with some friends
of mine the other day and we kind of went
(34:03):
through a history of what they've experienced in their lifetime
and what I experienced in my lifetime. But life will
throw your curve balls. This is just a question how
you deal with it and how you keep on marching forward.
But you know, I think as you age and if
you've got enough money and there's you don't have to
(34:24):
worry about, is their adequate amounts of dollars in order
to satisfy income needs and protecting the estate, etc. Go
for it. Go buy yourself the corvette, Go get yourself
the boat, Go on that vacation, Go do the things,
do the Disney vacation with the family and friends. Those
are things that you can never replace, never replace. I've
(34:48):
lost a lot of good friends and clients over the
last few years. Very sad, very sad. I just lost
a really good friend of mine just recently, and it
was an awakening for me that, you know, life isn't
just about work. You know, it's about basically having certain
(35:12):
things in your life, events, memories. So that's what we
try to facilitate the Retirement Planning Group. We try to
make lifetime events meaningful so you can basically live your life,
have fun and know. What I always talk about is
(35:33):
the domino effect. Sounds kind of corny, but I mean it.
The first domino drops, you know where the rest of
them are going to go. So when we come back
from break, we're gonna have to take a break here.
In about a minute or so, we're going to talk
about what I consider to be probably the most complicated
asset that most of us have. Those are pre tax dollars.
(35:57):
Whether it's a New York State defer comp whether it's
an IRA. New York State has a plan for us
as far as when that money's going to come out
New York and the federal government as far as required
minimum distributions, and you needn't understand is that if you
have not set it up properly and there is an event,
(36:21):
there's a good chance that money's going to go away
before you go away. So there's ways to tactically manage
qualified assets. I'm a big believer. I'm a big believer
to only retain the assets that are necessary for quality
of life when the first spouse passes away, and get
the money down the road to the kids and the grandkids. Okay,
(36:46):
why is that? Because you don't want incidents of ownership
so they can go after it. So when we come back,
we'll talk about IRA assets and what to do with them.
As you age. You've spent a lifetime saving for retirement.
Now it's time to make that money work for you.
(37:06):
Here's the secret most people miss. You have to create
your own retirement income plan. Social Security is not enough,
pensions are rare. You need a strategy that turns savings
into monthly income that will last a lifetime. At the
Retirement Planning Group, we build customized income distribution plans so
you can retire with confidence, retire smart, live well. Call
eight eight eight five eight zero nine one nine for
(37:29):
your complementary consultation. Are you ready for retirement or just
hoping it works out. Don't leave your future to chance.
At the Retirement Planning Group, we hope you create a
personalized retirement plan so you can relax knowing you are prepared.
Take action today called eight eight eight five eight zero
one nine one nine. That's eight eight eight five eight
(37:50):
zero one nine one nine, Or visit us at our
website rpgretire dot com to schedule your complementary consultation. Your
future will say, we are living through the greatest wealth
transfer in the history of mankind. Trillions of dollars of
wealth will change hands from one generation to the next,
your money to our beloved children and grandchildren. Are you ready?
(38:12):
Your future is written by chance, it's written by action.
Now's the time to build your plan, protect your assets,
and position yourself for the opportunity. Don't wait. Take action.
The future favors those that are prepared. Call eighty eight
five eid zero one nine one nine. That's eight eight
eight five eight zero one nine one nine. Retirement is
in a Sunday thing. It's a now thing. Whether you're
(38:35):
just starting out or nearing the finish line. The best
time to build your retirement plan is today. Don't wait
for the right moment. Let's create a plan that works
for you. Secure your future and the freedom that comes
with it. Call my office today and take action. Eighty
eight eight five eight zero one nine one nine. That's
eighty eight five aid zero one nine one nine, and
(38:58):
your future will thank you. All Right, we are back.
I'm Dave Kopek. It's good to be here. It's a
Saturday and upstate. It's absolutely fantastic. It's beautiful outside. Hopefully
(39:19):
you're enjoying it. We've had a pretty good run of
weather here. I went to the track the other day.
I'm not a track person, but Fidelity had an event
there and I was invited to go and it was nice.
Enjoyed it. Saratoga is an absolutely beautiful city, so if
you get a chance to go up and experience her.
(39:41):
You know, I'm not a gambler, so it doesn't excite
me to lose money. You know. I know that a
lot of people enjoy they might enjoy going there and
you know, taking the risk. But I you know, I
always figure I've worked so hard to make a few bucks.
I don't know anything about horses, and for me to
(40:03):
lose my cash always makes me feel like I can't
get out of Dodge quick enough. But Saratoga is a
beautiful area. So if you're out and about and you're
in Saratoga, God, bless God bless enjoy the day. I'm
heading back to Lake George in a very short period
of time after the show. And like I said, if
(40:25):
I want to find God or see God, I get
out on the lake and I just I turn it off.
I turn it off. We live in a beautiful part
of the world, folks. There's nothing like Upstate New York.
(40:45):
I was trying to think of the name of it.
That's why I'm hesitating. A friend of mine is a
devout Christian and he's part of a group Word of
Life up in Screen Lake, and he's one of the
nicest guys you would ever want to meet in the world.
He's just a phenomenal person. Then him and I are
(41:09):
like the North and the South Pole. But we are
good friends and we've known one another for long. He's
in my business and he said to me, Dave, I
want you to come to a special place. I don't
think he's bringing me to church, right, He's trying to
convert me over to the good side, and he brought
(41:32):
me to a place called Elk Lake Lodge. And I'm
telling you, folks, if you haven't been there yet, it's
off at exit twenty nine in the north Way. You
take a left and not too far you take a
right and you go down the stirt road for about
five miles and you come into this. When I say spectacular,
(41:53):
it's an understatement. It's like out of a movie. This
unbelievable beauty, lake and mountains and just unbelievable scenery. So
you get a chance, go to Elk Lake Lodge and
tell them that Dave Kopek sent you there. We had
an unbelievable dinner, we had a beautiful afternoon, and they're
(42:17):
just the most wonderful people there. So Elk Lake Lodge.
If you're looking for something to do, go to Elk
Lake Lodge. And I'm not getting paid for this, folks,
believe me. You know, Ira Assets, we were always motivated
to in our four oh one k's in any account
(42:41):
that we get to match some kind of a matching
contribution by our employer to accumulate money pre tax, pre tax,
pre tax. And what happens is we wake up one
day and we're in our sixties or mid sixties to
find out that, Wow, I like a lot of money
in there. Problem is is you haven't paid the tax
(43:07):
on it, and that's all taxable money, and the government
has a plan for you. Currently it's age seventy three
that they force you to liquidate it. For most of us,
we're going to take that money from our four oh
and K, We're going to roll it into an IRA,
and that IRA is going to basically become our pension plan,
(43:29):
our income stream for the rest of our lives. What
you need to understand is that this is a complex
process and I think most individuals can't navigate it by themselves.
As a matter of fact, I know most of you
can't navigate this by yourselves. You need to understand that
(43:53):
if you got a New York State deferred comp if
you have IRA four oh one K, four h three
B any pre tax money, the money is going to
come out. It's a question doesn't come out in your terms.
For the government's terms. There is no more stretch IRA
(44:15):
for years. That's all we heard, stretch, stretch, stretch, We're
going to stretch it out for many, many years. Well,
that doesn't happen anymore. The Secure Act basically eliminated the
stretch IRA, and now most beneficiaries have to take distributions
(44:37):
out on what they call the ten year rule, and
that limits the ability for you to have tax deferred
growth for an extended period of time. So when you
least want the money, me and you thus old birds,
and you've got this large pool of money, pre tax
(44:58):
distributions become greater when we least want the money, And
now you're forced to liquid ad assets when technically probability
wise you might be in the need for assistance, long
term care, etc. So I tell all the young people today,
(45:18):
as much as they'll listen, take the match from the employer.
Then put all the rest of the money that you
have in after tax money, whether it's wroth four oh
one k roth ira and that magical thing which I
most people don't take advantage of and they should HSA
He'll save your accounts. So RMD starts. Now it's seventy three,
(45:43):
and as you age the uniform lifetime table, the divisor
gets smaller, meaning that the distributions get larger. And then
you're sitting there eating your Mapo in your rocket chair
and you got a big IRA and you getting these
checks not because you want them, but because the government
is saying we want our money, we want our money.
(46:04):
So starting in twenty and twenty five, as I said,
the ten year rule will face a lot of us
to take rm and ds for non spouse beneficiaries, right,
non spouse beneficiaries. Spouses can basically continue the account, but
non spouse beneficiaries have to have the money withdrawn over
(46:26):
a ten year period of time. So there's different types
of beneficiaries spouse, non spouse, right. And then you've got
two rules here, individuals that are less than ten years
young siblings, right, and then chronically ill or disabled individuals
(46:49):
they have different rules which I'm not going to get
into today. I'm just going to because ninety nine percent
of the people that we're going to be talking to
about beneficiaries and rm ds and money that you have
to take to qualified accounts are going to be non
spouse beneficiaries. So what happens money gets rolled into a IRA.
(47:16):
Then you're gonna be sitting there and you're gonna say, Wow,
that's a lot of money, and then you're gonna get
a checked out because you want it because you're forced
to take it and at the end of ten years,
it all has to be empty. The money has to
be going And what does this happen? Usually in your
heyday when you're making the most amount of money in
(47:37):
your lifetime, in your fifties and sixties. Right, So what
should you do if you've got a large IRA and
you're trying to figure out how am I going to
transfer this wealth to my kids and my grandkids? Well,
(47:58):
what you need to do is to have Listen, this
sounds kind of like shocking. You have to have a
plan specific for the IRA. Can't over emphasize this enough.
You have to have a plan that is specific for
your IRA. Do you know what a disclaimer is? Gives
(48:22):
your beneficiaries the ability to disclaim the IRA, refusing to
accept it and doing so effectively allows the IRA to
pass to the next designated beneficiary. Right. Why is that important?
Because if my wife or my loved ones have health issues,
(48:43):
they don't want the IRA. They want to get it
to the next generation. Right, you can disclaim an IRA.
It's legally, it's a legal ability for you to do. Right.
You say, I don't want it, I don't need it,
I disclaim it it goes to my kids or my grandkids.
(49:07):
Stretch IRA option, which allowed beneficiaries to take distributions over
their lifetimes, is no longer available. I want to overemphasize
that no longer available. The most problematic money that's out
there right now are three assets, qualified pre tax money,
(49:30):
Series E bonds and non qualified annuities. If you're sitting
on them, you're sitting on ird income or respect to
a decedent. You're not leaving a legacy, You're leaving a
tax liability. Please give us a call. That's an area
that we have I think a lot of experience and
(49:52):
expertise in. We can tell you what you should do
and how you should do it as far as getting
that money to the next generation the most tax efficient way.
Our telephone number at the office eight eight eight five
eight zero one nine one nine eight eight eight five
eight zero one nine one nine. I'm Dave Kopek. This
has been retirement Ready see you next week. The information
(50:16):
or services discussed on this show is for informational purposes
only and is not intended to be personal financial advice.
Speaker 2 (50:22):
The investments in services offered bias may not be suitable
for all investors.
Speaker 1 (50:26):
If you have any doubts as to the merits of
an investment, you should seek advice from an independent financial advisor.
All right, I'm Dave Kopek. Glad to be here on
this Saturday, August ninth, which is hard to believe. We're
in August already, and I'm live. I'm in the studio,
just left the lake, came down to do today's show
(00:29):
and also the show that we do in Syracuse from
one to two. But I'm live in the studio. If
you have any questions while I'm doing the show, don't
be afraid to call one eight hundred Talk WGY. That's
one eight hundred eight two five fifty nine forty nine,
one hundred Talk WGY. We're going to talk about something
(00:53):
that we're starting to see and as you're quite well aware,
this show is retirement Ready. It's a top specific show,
and I'll talk a little bit about what's happening at
the retirement Planning Group. What's happening is that my generation
is starting to pass. It means that we're now starting
(01:17):
to transition the wealth that the boomers have created in
their lifetime. And that's what we call about the retirement
planning The eighty five trillion dollars of wealth transfer over
the next twenty to thirty years. It's the largest wealth
(01:41):
transfer in the history of mankind, and it's something that
it's unprecedented and for some of us, it's going to
reshape our lives. And you also need to sit down
and have an understanding of the type of wealth that's
(02:02):
being transferred. It's not uncommon for me to sit down
with individuals and I'll say to them, do your children
have any idea how much wealth is going to be
transferred here to the next generation? No, not really, which
is not good. Which is not good because they need
(02:26):
to understand, especially with IRA assets, and that's what we're
going to focus in on today. IRA assets. Why IRA
assets are very complicated, especially for non spouse beneficiaries. So
(02:46):
we're going to talk a little bit how this unprecedented
financial shift is reshaping how individuals are setting up their
beneficiary designations. But we're also want to talk a little
bit about what you, as a beneficiary should be thinking
about if mom and dad are having to chat with
(03:08):
you as far as the wealth transfer. You know, the
positive is is that we're living longer lives and that
means for a lot of us what we anticipated as
far as this wealth transfer might take a little bit
longer than what we anticipated, but effective planning means more
(03:34):
than just ensuring that you don't give it all away
to the federal and the state. It means how do
you reposition your wealth that allies not only with your values,
minimizes tax liabilities, and also ensures a smooth succession as
(03:54):
far as the transfer of wealth. So we're going to
talk to the people out there that are born between
forty six and sixty four, which we call the Boomers.
Boomers collectively hold more than half of the wealth in
the United States right now. Half of the wealth is
(04:16):
controlled by the Boomers. Much of this is tied up
in real estate, investment portfolios, businesses, and a good chunk
of money is in retirement assets. So, as I said,
(04:37):
depending on who you look at and who you read,
it's estimated that somewhere between eighty to eighty five trillion
dollars of wealth will transfer between now and the year
two thousand and forty five two thousand and fifty. A
lot of it will go to charities, but forgivers and recipients,
(05:02):
when overemphasized, planning is essential not only to preserve the wealth,
but also to make sure that it's going where you
want it to go. So for some of you that
have been blessed with great retirements, great savings, You've had
(05:22):
significant assets that you've accumulated. The state planning is critical
for your retirement strategy. Critical. So do you have a
comprehensive estate plan. Do you have wills, durable power of attorneys,
(05:46):
health care proxies, trust beneficiary forms that are set up properly.
Do you understand what it means to disclaim assets? So
retirees people of my generation should be working with advisors
(06:08):
today to basically employ what we call a tax efficient
strategy in order to transfer the wealth to the next generation.
You know, receiving a significant inheritance where a lot of
our kids can be both a blessing and a challenge
(06:29):
for some of us. A lot of our kids might
not have the financial literacy or guidance. You want to
make sure that they don't squander these assets. You want
to make sure that they understand the amount of wealth
that's being transferred. Maybe you need to have a trust
(06:50):
or a fiduciary in order to manage these assets for
a specific period of time in order for them to
basically have the wherewithal in order to manage this type
of wealth transfer. So as We're all quite well aware.
When you win the lottery, it's an influx of wealth. Suddenly.
(07:13):
They can have a major impact, not only in your
regards to your ability to deal with it, but what's
your lifestyle is going to change? What's your strategy? You know.
One of the things that I consistently hear over and
over and over again with prospective clients is that we
(07:37):
haven't had discussions about this. And I don't think it's
rare because of the generation we were the ones that
created it. Maybe there's a little bit of a hesitancy
to show our cards to our children. But I'm going
to focus in today and what I think are probably
the most complicated wealth transfer for assets that a lot
(08:02):
of us have. But as I said, we should hold
intentional discussions with our kids clarify what we want to
do with our estate plans. Legacy planning is not only
about transferring money. It's about passing on family heirlooms, you know,
(08:29):
passing on things that are dear to our soul. So
not only should there be some kind of a discussion
about it, I think it needs to be in black
and white. There's a lot of moving parts that's quite
well aware of Washington, the state of New York. They
love changing tax laws. Stock markets are volatile, family dynamics
(08:52):
are volatile. Working with a team of financial advisors, I
think is critical, and you need to coordinate approach that
basically involves not only your financial team, the state planning attorneys,
tax professionals. Is for some of us, it's not a
bad idea to basically have some kind of counseling. Possibly
(09:16):
know that sounds kind of weird, but when you're laying
millions of dollars or hundreds of thousands of dollars in kids,
you want to make sure that they understand exactly what
is being laid on their laps as far as the
ability for them to change their life, maybe in a
very very very positive way. So we're going to take
(09:38):
our first break when we come back. This is retirement Ready,
and we're going to talk a little bit more about
this legacy that's transfer. You've spent a lifetime saving for retirement.
Now it's time to make that money work for you.
Here's the secret most people miss. You have to create
your own retirement income plant. Social Security is not enough.
Pensions are rare. You need a strategy that turns savings
(10:00):
into monthly income that will last a lifetime. At the
Retirement Planning Group, we build customized income distribution plans so
you can retire with confidence, Retire smart, Live well. Call
eight eight eight five eight zero nine one nine for
your complementary consultation. Are you ready for retirement or just
hoping it works out? Don't leave your future to chance.
(10:23):
At the Retirement Planning Group, we help you create a
personalized retirement plan so you can relax knowing you are prepared.
Take action today. Called eight eight eight five eight zero
one nine one nine. That's eight eight eight five eight
zero one nine one nine, or visit us at our
website rpgretire dot com to schedule your complementary consultation. Your
(10:43):
future will say thank you. We are living through the
greatest wealth transfer in the history of mankind. Trillions of
dollars of wealth will change hands from one generation to
the next, your money to our beloved children and grandchildren.
Are you ready? Your future is written by chance, it's
written by action. Now's the time to build your plan,
protect your assets, and position yourself for the opportunity. Don't wait,
(11:07):
take action. The future favors those that are prepared. Call
eighty eight five eight zero one nine one nine. That's
eighty eight five eight zero one nine one nine. Retirement
is in a Sunday thing. It's a now thing. Whether
you're just starting out or nearing the finish line, the
best time to build your retirement plan is today. Don't
(11:28):
wait for the right moment. Let's create a plan that
works for you. Secure your future and the freedom that
comes with it. Call my office today and take action.
Eighty eight five eat zero one nine one nine. That's
eighty eight five EID zero one nine nine, and your
future will thank you. All Right, we are back. I'm Dave.
(12:00):
I am the president of the Retirement Planning Group. We've
got five locations in New York. We used the Regis
Corporation outside of New York, which is Executive Suite. So
whether you're in Boca, whether you're in Atlanta, any of
the major cities, Regis has offices and we have the
(12:23):
ability to sit down with you, have a chat, either
come to your home, boat, train, plane, whatever it may be.
We have clients now in twenty eight states and it's
always a pleasure to help people. I've been doing it
a long time. This is my forty third year in
the business, going into my forty fourth year. So I've
(12:47):
seen good markets, bad markets. I've seen Pinocchio's and non Pinocchio's.
I've seen you know, everybody that things are the greatest
thing since sliced bread. But the bottom line is that
understanding exactly where you are, where you want to go,
and having a plan. They keep on saying that over
and over and over again to people. If you don't
(13:10):
have a plan, any destination will do. Sounds simplistic, but
I'm telling you most of you that are listening right
now have no plan. You have no idea what the
hell you're doing. You're just spinning your wills. And I
don't say that in a negative way because it's the
majority of the people that come into the retirement planning group.
(13:32):
So we're talking about this wealth transfer. For some people,
it's going to be a sudden impact of wealth and
how theyre going to deal with it and how are
they going to basically handle this unbelievable inheritance. Whether you
have one child, five, ten, fifteen, whatever, it may be
(13:55):
one of the most overlooked elements of retirement and inheritance planning.
His communication, his communication, and it's I think critical that
families basically don't avoid the conversation about money, death and legacy.
(14:17):
You no one likes uh to sit there. I was
had dinner last night at a fantastic restaurant in Bolton Landing,
New York. If you haven't been there yet, Beyond the Sea,
Beyond the Sea. I went there with my wife, my son,
(14:40):
his beautiful girlfriend, and my daughter and we had this
fantastic dinner. And if you're in Bolton Landing, you go
up until Dave and his wife Mary. You got a referral.
They had a unbelievable staff, couldn't been nicer. And those
(15:03):
are the things that you want. Those are the things
that you want as you age. You want to sit
with your family. You want to have great conversations. But
the reason why I'm saying this, folks, is that for
doing this for as long as I have, you don't
want to lead your family into confusion, disputes, and misaligned
(15:25):
expectations as far as what mom and Dad's intentions were.
So when I say that you should hold intentional discussions,
it's an understatement. Legacy planning all this money that we've accumulated,
(15:45):
the boomers half of the wealth It's not only about
transferring money, it's about passing on the stories, the lessons.
You know, my kids have heard too many times how
hard mom and data worked. Okay, but I think it's
important that they understand that none of this was given
(16:07):
to us. We worked like dogs for years. Right, So
you want to have kind of like a family mission
statement to solidify this legacy, this transfer of wealth to
the next generation. So I'm gonna give you some healthful hints,
and we're gonna have to take a break here shortly
(16:28):
for the news at the bottom of the hour. Right,
laws change, stock markets change every day, the stock market
change in the bottom market up or down. It is critical.
It is critical that you find someone to work with
(16:50):
that can coordinate a plan that facilitates what you're trying
to accomplish, not only as far as your estate plan,
but also the legacy that you wish to leave for
your family, your loved ones, your charities, your grandchildren, et cetera.
So you can ensure that the wealth is preserved protected.
(17:13):
And here's the word purposely passed on. So here's my
bullet points on this first segment of today's show. You know,
there's a lot of people out there that like to
pooh pooh financial advisors, and I always kind of scratch
(17:34):
my head because we do it fifty sixty seventy eighty
hours a week, depending on how busy we are, And
the reason why we do it is that I think,
deep down inside, most financial advisors have a passion for
helping people. So this is the things that I think
that a financial team can help you with. The first
(17:57):
and foremost is laws change. The state tax laws change
depending on the amount of wealth that you've created. You
need to understand that inside and out. Secondly, what will
your zip code be? Where will you live? Critical not
(18:19):
only as far as the state tax, but also asset preservation.
I heard Lou Piro today talk on his show that
the average cost in the Capital District right now is
somewhere between seventeen and eighteen thousand dollars per month for
a long term care facility here in the Capitol District region.
(18:43):
Should you do a trust? Is it a revocable or
is an irrevocable? What are the legal documents that you need?
Do you need a will you need an orb of
power attorney? Do you need a health care proxy? Vocable?
Irrevocable dynasty, all the different trusts that are out there.
(19:08):
For a lot of us that have been very fortunate
and been blessed, charitable givings is basically for some of
us on the top. But do you know the strategies.
Do you understand how to plan charitable giving a lot
of different strategies out there, a lot of different ways
(19:29):
to gift assets. Educating your family. You know, I've been fortunate.
All three of my children have gone to college. My
son David, my oldest son, has done extremely well in
the real estate business. My son Christopher works with me
(19:49):
in the financial services industry. My daughter is going to
fau to be a child psychologist. So they're pretty balanced kids,
pretty educated, and they're also I think, in my opinion
this is a father's opinion. They understand that what mom
and dad went through in order to create the estate
(20:12):
that we have, but they also need to understand that
there are certain things out there that can basically be
pits pits that they can be bumps in the road,
they can really have a financial impact not only on them,
(20:34):
but also as far as what ultimately what we want
to do as far as our legacy. So educating the
family on these different assets that you might be transferring
to them, and ultimately they're going to have to make
(20:54):
the final decision. I mean, I've been fortunate in my life.
I have a home unlike George. My wife loves it,
my children love it. I want to make sure that
it continues for years to come. And I've seen nightmares
(21:17):
with families because it wasn't set up properly as far
as the transfer of wealth and what would happen with
a vacation home. And I don't care if it's in
Lake George, if it's in a skihouse in Vermont, and
go through all the multitude of different properties that our
clients have that they basically want it to have longevity
with it. They want to make sure that the property
(21:40):
stays in the family for decades. Maybe you won't. I mean,
there are there as certain criteria that would have to
happen in order for the property be sold, and that's
something that needs to be addressed also. But bottom line
gets down to it, and I'll say this heartfelt. You
(22:08):
want to make sure that you have the ability to
allow your kids to adjust. Whatever your wishes are, your
legacy and your intention are not necessarily going to be theirs,
and then finally the last one, the younger generation, my grandkids.
(22:36):
How do you protect them? How do you make sure
that the legacy continues, or the transfer of wealth continues.
Working with your financial team and with your advisor, you
can build out this holistic financial plan that'll not only
optimizes what we call tax strategies, but also maybe possibly
(22:57):
retirement a legacy for them, depending on how much money
you've accumulated. So again, there's this huge transfer of wealth
and it's happening as I speak. As I speak, this
is happening. We have people that are all over the
(23:22):
country that are calling us because they listen to our
show and they understand that this is something that they
really need to make a forefront. They got to put
it on the top of the list. Now at the
bottom of the list, people are living longer, families are
more financially secure, and the bottom line gets down to
(23:43):
you need to have an effective retirement plan. So I
got to take a break for a couple of minutes
here for the bottom of the hour, we have news.
But when I come back, I'm more than happy to
take your phone calls. Today we're talking talking about retirement
planning in the age of the eighty five trillion dollar
(24:06):
wealth transfer. Let's say that again. Retirement planning in the
age of the eighty five trillion dollar wealth transfer. It's
pretty astonishing, folks. What's going on right now. We're seeing it,
We're in the mix of it. Right now. We're talking
about people and children. They're gonna their eyes are going
(24:29):
to pop out of their heads when they see how
much money mom and Dad have accumulated. So when I
come back, we'll talk about this in greater detail. But
we have open lines one eight hundred talk WGY will
be right back. All right, we are back on Dave Kopek.
(24:53):
This is retirement ready. It's a topic specific show, folks.
We try to focus in on things that I'm seeing
after forty three years of being in this business. And
I can tell you right now it's happening. As I speak,
This wealth transfer is happening. It's happening probably quicker than
(25:17):
I would like, because I'm part of that generation, the
Baby Boom generation. It's eighty five trillion dollars of wealth.
It's all the money that we've accumulated. Well over fifty
percent of the wealth in the United States right now
is controlled by bombers and it's all heading down the
road to another destination. So are you prepared? So I'm
(25:39):
not going to let this nice man wait much longer
because he's been very patient. Mike in Aubany, Hi, Mike, Hi.
Speaker 2 (25:50):
Well, first, I didn't catch all of your I called
just before you went to the news break. Yes, sir,
and I didn't know that you were focusing on a
certain aspect of investing or what to do with money.
Speaker 1 (26:04):
Now we're open. Whatever you want, whatever your talk about,
my good man, I'm more than happy to talk about awesome.
Speaker 2 (26:12):
I'll make it short and sweet. I've retired when I
was sixty, going to be sixty six soon. I work
for the state. I've got the wealth. I never did
anything to protect it. I've got about three quarters of
a million in deferred comps still sitting in two funds,
Admiral Shares of the Vanguard Admiral Shares and the Wellington Fund,
(26:38):
like a sixty forty split joint. Two funds I got.
They've been doing so good. I hate to pull out
of them because the twenty year has been I made
so much money it's unbelievable. I mean more money since
I retired, just the compounding. But anyway, Yeah, in the
pension it's like seven thousand a month, so I'm not
really touching that investment money yet. But you know, I
got to start drawing on that before it gets too
(27:00):
late and I got to draw it too much. And
I haven't protected myself as far as God forbid. Something
health related happened. I got to do what's my best
step to take at this point? Do you think?
Speaker 1 (27:10):
Well, let me ask you. The seven thousand a month,
does that include your social Security benefit?
Speaker 2 (27:17):
That's my pension and my Social Security And that's the
actual take home, that's what's put into my account every month.
Speaker 1 (27:24):
So you're making eighty Yes, you're making about eighty five
thousand dollars a year without touching any of the qualified assets.
Speaker 2 (27:32):
Yes, about eighty three eighty four?
Speaker 1 (27:35):
Yes, So when you say you haven't protected anything, have
you done a trust for your house?
Speaker 2 (27:41):
The only thing I've done is a will? Is everything's
left to one person? Everything?
Speaker 1 (27:46):
And do you have a wife?
Speaker 2 (27:47):
Oter than that I've do?
Speaker 1 (27:49):
You have a white? No?
Speaker 2 (27:50):
Single?
Speaker 1 (27:51):
Okay? Now do you care where it goes?
Speaker 2 (27:56):
Well? Yeah, I mean I'd like to donate some, but
I hate to see me spending all that money. In
two months from now, three months from now, something real
bad happens and I got to go someplace and it
wipes out that money. That's what I'm afraid of. You
don't hear the horror stories of going into a home
(28:17):
or something and they just wipe you out.
Speaker 1 (28:19):
Wind all about it, because I see it. I mean,
I've been doing it for forty three years. No imagine,
you know, I've seen people. I've seen people go through
their life savings for home care assistant living in a
long term care facility.
Speaker 2 (28:30):
Yeah, and that's what I'm afraid of. Is there a
way do you think I could protect that?
Speaker 1 (28:34):
We definitely, there's definitely a way for you to protect it.
It's just a question you want to motivate and do it.
Speaker 2 (28:41):
Well, that's why I'm calling. And you are the guy
that I hear all the time, and you got a
good rep. Well, I would like to speak with you.
Speaker 1 (28:50):
Well you can if you call my office. You can
say that you spoke to me on the air today
and I'll sit down with your face to face. I
hate to say this, I'm very busy and I travel
all over the country and I don't I'm not I'm
not patting myself in the back or I'm not an
ego maniac. Uh. Sometimes I'm very yourself on the back. Well,
sometimes I'm very direct with people because I I don't
(29:13):
have time to spend my wheel, so I'll tell you
exactly what you need to do and U Sometimes people
get a little bit taken back. Sometimes my staff says me,
you know what, you're kind of kind of direct with
that person. But you're easy to fix. You're easy to fix, Mike,
You're easy to fix. But if you listen to me,
I can put you on I think a lot better situation.
Speaker 2 (29:36):
My good man. Okay, and that's what I'm looking for.
Speaker 1 (29:40):
Call my office. Call my office and you're telling me
I talked to you today, and I'm here. I'm here
now until the end of December, pretty much. I'm going,
uh for two weeks in September, I'm traveling. I'll be
more than happy to sit down with you and I'll
tell you exactly what I think.
Speaker 2 (30:01):
Can you give your number out sure? Or is that something?
No station?
Speaker 1 (30:04):
No, it's five eight five eight zero.
Speaker 2 (30:11):
Zero yep, nineteen nineteen nineteen.
Speaker 1 (30:15):
Just say that you talk to me on the radio
today and then you want to come in and have
a face to face down. We have offices in Albany, Malta,
you know, throughout throughout Syracuse, Oneada, Glens Walls, So wherever
you want to meet, and if you know, I'll tell
you exactly. I understand exactly how you feel because there's
(30:35):
a lot of people that come in and have the
same conversation with me. But there are things, Mike, that
you can do. The problem that you have right now
is that you're fully exposed. You don't have a spouse.
I know you don't have a spouse right now. That
if something happens to me, to you right now, all
hell's going to break loose.
Speaker 2 (30:52):
I know it. I never already had a scare so
that that's why I'm calling it.
Speaker 1 (30:56):
Am I scared? Am I scaring you?
Speaker 2 (30:59):
Yet?
Speaker 1 (31:00):
No?
Speaker 2 (31:01):
No, I know it's gonna The bottom line is gonna.
It's gonna go some money to protect me, and I'm
okay with that. I'd rather see you go towards protecting
me than having it just taken away from me.
Speaker 1 (31:10):
Well not only that, but I'd rather I'd rather see
the money go to your family and loved ones and
things that you have a soft spot in your heart
for rather than basically going to the county.
Speaker 2 (31:21):
Well, is a new Zeo six Corvette. Okay too, I
get to it by myself.
Speaker 1 (31:28):
I get one, I get one. I would get one
for Sunday, and you get one for Wednesday.
Speaker 2 (31:34):
Well, as long as it doesn't rain, if there's a
if there's a cloud in Buffalo, the car wouldn't go out.
Speaker 1 (31:39):
I'll tell you what.
Speaker 2 (31:39):
That's my dream car.
Speaker 1 (31:41):
Well, i'll tell you what. A couple of years ago,
I'll tell you a real funny story, real quick here.
My wife has always been my best friend, and she's
always been my rock, and she always wanted a Corvette.
A few years ago, I went out and I bought
her a brand new Corvette. And I said to this,
and I said to I said, this is for standing
beside me, being my rock, good times and bad. I
(32:04):
can't fit in the damn thing. So I call I
call it the Barbie car. I call it the Barbie car.
Speaker 2 (32:11):
What color did you get? What color did you get? White?
Speaker 1 (32:13):
Red? Now? Red?
Speaker 2 (32:15):
Red?
Speaker 1 (32:16):
Oh? The red?
Speaker 2 (32:17):
Yeah, the red is nice. I gotta admit the red
is nice, and.
Speaker 1 (32:20):
She loves it.
Speaker 2 (32:22):
I gotta go black.
Speaker 1 (32:23):
And well, i'll tell you what. Black black black Bart
black Bart. Mic Well, I'll tell you what if you
want to go, if you want to, if you want
a Corvette brother, we can probably help you.
Speaker 2 (32:35):
I think I can do that. I already got the
money saved my checking account. Just waiting to find the
twenty nineteen I'm looking for. It's the last style of
that body style before they went to the rear engine.
And uh, I just love that twenty nineteen. The lines
on the twenty nineteen is amazing. But I know we're
getting way off track.
Speaker 1 (32:53):
We're no, no, that's all right, that's all right. I'll tell
you what you know, you know what, You're only here once.
You might as well maximize it and have fun. I
look forward to I look forward to having a chat
with you, Mike.
Speaker 2 (33:06):
Okay, thank you so much. I appreciate your time. You
are awesome. Thanks be okay, good care, have a great day.
God bless God, bless thank you.
Speaker 1 (33:14):
Yeah, that's why we're here. That's why we're here. We're
here hopefully to.
Speaker 2 (33:21):
You know.
Speaker 1 (33:21):
I'm always kind of flabbergasted. A lot of times we'll
sit down with individuals and they'll say to us that,
you know, if our kids are doing great and We've
got all this money and we don't know what to
do with it, and you know, we're kind of sitting here.
We're reluctant to spend. We were never spenders. It doesn't
(33:42):
necessarily mean that you have to spend. But what it
does mean is that, you know what sometimes basically giving
yourself kind of a surprise or a gift for everything
that you've gone through. You know, life's tough. Life is
tough a lot of things. I sat with some friends
of mine the other day and we kind of went
(34:03):
through a history of what they've experienced in their lifetime
and what I experienced in my lifetime. But life will
throw your curve balls. This is just a question how
you deal with it and how you keep on marching forward.
But you know, I think as you age and if
you've got enough money and there's you don't have to
(34:24):
worry about, is their adequate amounts of dollars in order
to satisfy income needs and protecting the estate, etc. Go
for it. Go buy yourself the corvette, Go get yourself
the boat, Go on that vacation, Go do the things,
do the Disney vacation with the family and friends. Those
are things that you can never replace, never replace. I've
(34:48):
lost a lot of good friends and clients over the
last few years. Very sad, very sad. I just lost
a really good friend of mine just recently, and it
was an awakening for me that, you know, life isn't
just about work. You know, it's about basically having certain
(35:12):
things in your life, events, memories. So that's what we
try to facilitate the Retirement Planning Group. We try to
make lifetime events meaningful so you can basically live your life,
have fun and know. What I always talk about is
(35:33):
the domino effect. Sounds kind of corny, but I mean it.
The first domino drops, you know where the rest of
them are going to go. So when we come back
from break, we're gonna have to take a break here.
In about a minute or so, we're going to talk
about what I consider to be probably the most complicated
asset that most of us have. Those are pre tax dollars.
(35:57):
Whether it's a New York State defer comp whether it's
an IRA. New York State has a plan for us
as far as when that money's going to come out
New York and the federal government as far as required
minimum distributions, and you needn't understand is that if you
have not set it up properly and there is an event,
(36:21):
there's a good chance that money's going to go away
before you go away. So there's ways to tactically manage
qualified assets. I'm a big believer. I'm a big believer
to only retain the assets that are necessary for quality
of life when the first spouse passes away, and get
the money down the road to the kids and the grandkids. Okay,
(36:46):
why is that? Because you don't want incidents of ownership
so they can go after it. So when we come back,
we'll talk about IRA assets and what to do with them.
As you age. You've spent a lifetime saving for retirement.
Now it's time to make that money work for you.
(37:06):
Here's the secret most people miss. You have to create
your own retirement income plan. Social Security is not enough,
pensions are rare. You need a strategy that turns savings
into monthly income that will last a lifetime. At the
Retirement Planning Group, we build customized income distribution plans so
you can retire with confidence, retire smart, live well. Call
eight eight eight five eight zero nine one nine for
(37:29):
your complementary consultation. Are you ready for retirement or just
hoping it works out. Don't leave your future to chance.
At the Retirement Planning Group, we hope you create a
personalized retirement plan so you can relax knowing you are prepared.
Take action today called eight eight eight five eight zero
one nine one nine. That's eight eight eight five eight
(37:50):
zero one nine one nine, Or visit us at our
website rpgretire dot com to schedule your complementary consultation. Your
future will say, we are living through the greatest wealth
transfer in the history of mankind. Trillions of dollars of
wealth will change hands from one generation to the next,
your money to our beloved children and grandchildren. Are you ready?
(38:12):
Your future is written by chance, it's written by action.
Now's the time to build your plan, protect your assets,
and position yourself for the opportunity. Don't wait. Take action.
The future favors those that are prepared. Call eighty eight
five eid zero one nine one nine. That's eight eight
eight five eight zero one nine one nine. Retirement is
in a Sunday thing. It's a now thing. Whether you're
(38:35):
just starting out or nearing the finish line. The best
time to build your retirement plan is today. Don't wait
for the right moment. Let's create a plan that works
for you. Secure your future and the freedom that comes
with it. Call my office today and take action. Eighty
eight eight five eight zero one nine one nine. That's
eighty eight five aid zero one nine one nine, and
(38:58):
your future will thank you. All Right, we are back.
I'm Dave Kopek. It's good to be here. It's a
Saturday and upstate. It's absolutely fantastic. It's beautiful outside. Hopefully
(39:19):
you're enjoying it. We've had a pretty good run of
weather here. I went to the track the other day.
I'm not a track person, but Fidelity had an event
there and I was invited to go and it was nice.
Enjoyed it. Saratoga is an absolutely beautiful city, so if
you get a chance to go up and experience her.
(39:41):
You know, I'm not a gambler, so it doesn't excite
me to lose money. You know. I know that a
lot of people enjoy they might enjoy going there and
you know, taking the risk. But I you know, I
always figure I've worked so hard to make a few bucks.
I don't know anything about horses, and for me to
(40:03):
lose my cash always makes me feel like I can't
get out of Dodge quick enough. But Saratoga is a
beautiful area. So if you're out and about and you're
in Saratoga, God, bless God bless enjoy the day. I'm
heading back to Lake George in a very short period
of time after the show. And like I said, if
(40:25):
I want to find God or see God, I get
out on the lake and I just I turn it off.
I turn it off. We live in a beautiful part
of the world, folks. There's nothing like Upstate New York.
(40:45):
I was trying to think of the name of it.
That's why I'm hesitating. A friend of mine is a
devout Christian and he's part of a group Word of
Life up in Screen Lake, and he's one of the
nicest guys you would ever want to meet in the world.
He's just a phenomenal person. Then him and I are
(41:09):
like the North and the South Pole. But we are
good friends and we've known one another for long. He's
in my business and he said to me, Dave, I
want you to come to a special place. I don't
think he's bringing me to church, right, He's trying to
convert me over to the good side, and he brought
(41:32):
me to a place called Elk Lake Lodge. And I'm
telling you, folks, if you haven't been there yet, it's
off at exit twenty nine in the north Way. You
take a left and not too far you take a
right and you go down the stirt road for about
five miles and you come into this. When I say spectacular,
(41:53):
it's an understatement. It's like out of a movie. This
unbelievable beauty, lake and mountains and just unbelievable scenery. So
you get a chance, go to Elk Lake Lodge and
tell them that Dave Kopek sent you there. We had
an unbelievable dinner, we had a beautiful afternoon, and they're
(42:17):
just the most wonderful people there. So Elk Lake Lodge.
If you're looking for something to do, go to Elk
Lake Lodge. And I'm not getting paid for this, folks,
believe me. You know, Ira Assets, we were always motivated
to in our four oh one k's in any account
(42:41):
that we get to match some kind of a matching
contribution by our employer to accumulate money pre tax, pre tax,
pre tax. And what happens is we wake up one
day and we're in our sixties or mid sixties to
find out that, Wow, I like a lot of money
in there. Problem is is you haven't paid the tax
(43:07):
on it, and that's all taxable money, and the government
has a plan for you. Currently it's age seventy three
that they force you to liquidate it. For most of us,
we're going to take that money from our four oh
and K, We're going to roll it into an IRA,
and that IRA is going to basically become our pension plan,
(43:29):
our income stream for the rest of our lives. What
you need to understand is that this is a complex
process and I think most individuals can't navigate it by themselves.
As a matter of fact, I know most of you
can't navigate this by yourselves. You need to understand that
(43:53):
if you got a New York State deferred comp if
you have IRA four oh one K, four h three
B any pre tax money, the money is going to
come out. It's a question doesn't come out in your terms.
For the government's terms. There is no more stretch IRA
(44:15):
for years. That's all we heard, stretch, stretch, stretch, We're
going to stretch it out for many, many years. Well,
that doesn't happen anymore. The Secure Act basically eliminated the
stretch IRA, and now most beneficiaries have to take distributions
(44:37):
out on what they call the ten year rule, and
that limits the ability for you to have tax deferred
growth for an extended period of time. So when you
least want the money, me and you thus old birds,
and you've got this large pool of money, pre tax
(44:58):
distributions become greater when we least want the money, And
now you're forced to liquid ad assets when technically probability
wise you might be in the need for assistance, long
term care, etc. So I tell all the young people today,
(45:18):
as much as they'll listen, take the match from the employer.
Then put all the rest of the money that you
have in after tax money, whether it's wroth four oh
one k roth ira and that magical thing which I
most people don't take advantage of and they should HSA
He'll save your accounts. So RMD starts. Now it's seventy three,
(45:43):
and as you age the uniform lifetime table, the divisor
gets smaller, meaning that the distributions get larger. And then
you're sitting there eating your Mapo in your rocket chair
and you got a big IRA and you getting these
checks not because you want them, but because the government
is saying we want our money, we want our money.
(46:04):
So starting in twenty and twenty five, as I said,
the ten year rule will face a lot of us
to take rm and ds for non spouse beneficiaries, right,
non spouse beneficiaries. Spouses can basically continue the account, but
non spouse beneficiaries have to have the money withdrawn over
(46:26):
a ten year period of time. So there's different types
of beneficiaries spouse, non spouse, right. And then you've got
two rules here, individuals that are less than ten years
young siblings, right, and then chronically ill or disabled individuals
(46:49):
they have different rules which I'm not going to get
into today. I'm just going to because ninety nine percent
of the people that we're going to be talking to
about beneficiaries and rm ds and money that you have
to take to qualified accounts are going to be non
spouse beneficiaries. So what happens money gets rolled into a IRA.
(47:16):
Then you're gonna be sitting there and you're gonna say, Wow,
that's a lot of money, and then you're gonna get
a checked out because you want it because you're forced
to take it and at the end of ten years,
it all has to be empty. The money has to
be going And what does this happen? Usually in your
heyday when you're making the most amount of money in
(47:37):
your lifetime, in your fifties and sixties. Right, So what
should you do if you've got a large IRA and
you're trying to figure out how am I going to
transfer this wealth to my kids and my grandkids? Well,
(47:58):
what you need to do is to have Listen, this
sounds kind of like shocking. You have to have a
plan specific for the IRA. Can't over emphasize this enough.
You have to have a plan that is specific for
your IRA. Do you know what a disclaimer is? Gives
(48:22):
your beneficiaries the ability to disclaim the IRA, refusing to
accept it and doing so effectively allows the IRA to
pass to the next designated beneficiary. Right. Why is that important?
Because if my wife or my loved ones have health issues,
(48:43):
they don't want the IRA. They want to get it
to the next generation. Right, you can disclaim an IRA.
It's legally, it's a legal ability for you to do. Right.
You say, I don't want it, I don't need it,
I disclaim it it goes to my kids or my grandkids.
(49:07):
Stretch IRA option, which allowed beneficiaries to take distributions over
their lifetimes, is no longer available. I want to overemphasize
that no longer available. The most problematic money that's out
there right now are three assets, qualified pre tax money,
(49:30):
Series E bonds and non qualified annuities. If you're sitting
on them, you're sitting on ird income or respect to
a decedent. You're not leaving a legacy, You're leaving a
tax liability. Please give us a call. That's an area
that we have I think a lot of experience and
(49:52):
expertise in. We can tell you what you should do
and how you should do it as far as getting
that money to the next generation the most tax efficient way.
Our telephone number at the office eight eight eight five
eight zero one nine one nine eight eight eight five
eight zero one nine one nine. I'm Dave Kopek. This
has been retirement Ready see you next week. The information
(50:16):
or services discussed on this show is for informational purposes
only and is not intended to be personal financial advice.
Speaker 2 (50:22):
The investments in services offered bias may not be suitable
for all investors.
Speaker 1 (50:26):
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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