Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:08):
All right, this is Retirement Ready. I'm Dave Kopek, I'm
your host. Good to be here. We're live in the studio,
and I've got my son here. Christopher William called him
up and I said, listen, come on in. My lips
are a little bit parshed from this morning from seven
(00:29):
to nine. So good afternoon, Christopher William.
Speaker 2 (00:34):
Good afternoon.
Speaker 1 (00:35):
Before we get into today's show, which is the Retirement
Savings time Bomb, got a little work to do here,
little housekeeping. So why don't you tell people what we're
doing the next couple of weeks.
Speaker 3 (00:51):
Yeah, you went over it this morning with actually members
of the foundation. But we're doing our annual Swing for
a Cure golf tournament coming up. It is on Thursday,
September twenty fifth. So we always do this every year
where we partner with American Cancer Society, and then this
(01:11):
year we're partnering with another charity. It's called Tunnel to
Towers Foundation. It's a great foundation. It's for it honors
the legacy of a firefighter, Stephen Siller, and all the
first responders in military personnel who have made the ultimate
sacrifice and have been you know, or have been catastrophically
(01:33):
injured in the line of duty. So their mission behind
the foundation is to just do good. Reflect the efforts
to provide mortgage free homes to gold star and fallen
first responder families, you know, build smart homes for injured
veterans and combat veteran So it's a great cause. You know,
(01:53):
they're a part of it. This year for us in
they also worked to ensure that you know, the HEROSM
along with nine to eleven, which you know we wanted
to highlight, which just passed the anniversary of it is
never forgotten. So there are a lot of they try
to spread out, you know, their their foundation. They're charitable
donations that go to them to a lot of different
(02:16):
areas of first responders or veterans or you know, veterans
who have been disabled. So it's a great cause. We're
happy to be partnered with them. And any donations can
be made, you know, to either of these foundations, either
American Cancer Society or Tunnel to Towers. All of the
proceeds will be will be split between them.
Speaker 1 (02:40):
And you know, this is something that we've wanted to
do for quite a while. The T two T you
got to go through an approval process, which we did
so on September twenty fifth. If you war in the
uniform where you want to help out some of the
people that are recipient's Tunnel to Tower monies that are
you know, hand it out to these families, we would
(03:03):
love to have you participate and call our office at
five point eight five eights zero one nine one nine
five eight five eats zero one nine one nine speak
to Jim Quirkman and he'll go through the details with you.
But UH registration is eight fifteen. Nine to fifteen is
the start, and again one percent of the proceeds go
to h the American Cancer Society and Tunnel to Towers.
(03:25):
We're going to this year do a seventy thirty split
seventy percent to Tunnel to Towers and thirty percent to
the American Cancer Society because we've already had one golf
outing with our family for the American Cancer Society this year.
So UH, today we're talking about the retirement planning time bomb.
(03:48):
And when I mentioned this, the savings that you have
in IRAS is an astronomical amount of money that's out
there right now and a lot of people have no
idea the magnitude, But as of right now in twenty
and twenty five, there is approximately ballpark sixteen point eight
(04:15):
trillion dollars. That was the end of the first quarter
of twenty twenty five, most recent updated figures in i
RAISE and this not only is traditional irays but also rough.
So bottom line is is that it's a whole hell
(04:35):
of a lot of money and you need to understand
exactly how you can protect it and ultimately where you
want that money to go once you pass away. Because
the government has a plan for you, folks, and it's
called RMD Required Minimum Distribution. Once you hit that magical age,
you have to start taking Required Minimum Distribution. It's not
because you want to, but because the government forces you
(04:58):
to take the list of the distribution. So today we're
going to be talking in the entire hour about ideas
and concepts and things that you can do based off
of your own particular situation. But bottom line gets down
to is that you want to make sure that you
have a plan specifically for your qualified assets. What would
(05:20):
you say, Chris, Probably eighty percent of the people that
we meet with, maybe even higher. Most of their money
is in two assets, their IRA and the equity in
their home.
Speaker 3 (05:31):
Yeah, I mean, I will say we have recently seen
a decent amount of folks with large non qualified accounts
as well, but i'd say the bulk like you were saying,
seventy five eighty percent of the people who we meet
with their largest assets are there four oh one K,
four H three B you know, whatever plan they're contributing
(05:52):
to throughout their working years. And then yeah, the home,
those are the two big assets.
Speaker 1 (05:59):
So well, for a lot of us, we have to
take those assets and turn them into pension benefits. Other
individuals that have been very fortunate in their lifetime that
have pension benefits, they have a lot of money, sometimes
up to seven figures and qualified assets. It's the Achilles
heel with your overall estate plan, and for most individuals,
they really don't know what to do with it, how
(06:22):
to direct those assets in their lifetime. You know, everybody
hears about roth conversion, spend downs, qualified charitable distributions. We're
going to go over all of that today and hopefully
if you have any specific question is about your own
personal situation. As I said, we're live in the studio.
We're here, it's Saturday, September thirteenth, twelve eleven in the afternoon.
(06:47):
So if you want to call us, it's one eight
hundred talk to me gy that's one eight hundred eighty
two five fifty nine forty nine. And any question that
you have, even if it's off topic, that's fine. But
as I said, today's top is what do we do
with all these IRA assets, especially for individuals that really
don't need them for retirement income? So where do you
(07:09):
want to start qualified charitable distributions?
Speaker 3 (07:12):
Chris, Yeah, I guess we can start there, just because
we've seen a couple instances of this recently where people
were looking what they should do with this large IRA
account and now they're thinking about donating some of it
to charity or how does that work? So you must
(07:32):
be at least seventy and a half or older to
make a qualified charitable distribution, So if you're under that age,
you unfortunately cannot do that right now. But the annual
limit on that is you can donate up to one
hundred thousand dollars per person per year directly from an
IRA to a qualified charity. So if you have funds
(07:57):
that you're not necessarily going to use, it's just a
huge IRA account that you've built up. You're not you know,
you're taking withdraws off of it. But maybe you have
a strong pension and strong social security so you don't
really need these funds and you're thinking about charitable giving. Well,
this option is available to you. You know, the donation
(08:17):
is excluded from your taxable income as well, like an
unlike a normal IRA withdrawal.
Speaker 1 (08:23):
That's that's huge. What people need to understand is that
this is a distribution, especially if you're top heavy, and
the distribution is excluded from your taxable income. For the
year twenty and twenty five, Chris, it's one hundred and
eight thousand dollars, So if you have a husband and wife,
that's two hundred and sixteen thousand dollars. So you can
(08:43):
get out of qualified assets and you're going to satisfy,
especially if you're concerned about rm D, you're going to
satisfy your rm D required mon distribution, right.
Speaker 3 (08:55):
So it's a good it's a good tool to utilize
for folks who don't necessarily need this money, or they
have charities that they've been contributing to for years and
years and years and they're looking to tactically tax advantaged.
Get that RMD sent out the door without you know,
paying more taxes on it.
Speaker 1 (09:16):
The key to this, folks is don't do this yourself.
You have to have a form that's going to be
filled out directly from your custodian to the charity. It
has to be filled out properly. You're basically creating a nightmare,
so you need to use your financial team. Of course
we go through Fidelity the mothership, but again we're live.
Do you have any questions today we're talking about I
(09:38):
raise the Achilles Heel for a lot of us and
the type of planning that you need to do during
your pre and post retirement years. I'm Dave Kopek. I'm
here with my son Christopher. We'll be right back after
this quick message.
Speaker 4 (09:56):
Planning for retirement doesn't have to be overwhelming, especially when
you have the right team by your side. At Retirement
Planning Group, Dave Kopek and his team are here to
help you build a strategy tailored to your goals and lifestyle.
Whether you're nearing retirement or just getting started, now's the
time to take control of your future. Schedule your free
consultation today at rpgretire dot com. Or call eight eight
(10:20):
eight five eight zero nineteen nineteen Retirement Planning Group Retire
with Confidence.
Speaker 1 (10:27):
Retirement isn't 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
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.
(10:48):
Eighty eight eight five eat zero one nine one nine.
That's eight eight eight five EID zero one nine one nine,
and your future will thank you.
Speaker 5 (10:56):
Born on America's darkest day of nine to eleven, the
Tunnel two Towers Foundation has been helping America's heroes ever since.
People who put their lives on the line for our
country and our communities need your help now more than ever.
Join Tunnel to Towers on its mission to do good
in their honor. Never forget nine to eleven or the
sacrifices of this country's heroes and their families. Show your support.
(11:20):
Donate eleven dollars a month at T two t dot org.
That's t the number two t dot org.
Speaker 4 (11:27):
Time flies and retirement will be here before you know it.
Are you ready? Don't wait until it's too weight to
get your plan in place. Dave Kopik and the team
at Retirement Planning Group are helping people just like you
take control of their financial future right now. Call eight
eight eight five eight zero nineteen nineteen today or go
to rpgretire dot com to schedule your consultation. Retirement won't wait?
(11:53):
Why should you?
Speaker 1 (12:00):
All right, the son brought his drum set in, So.
Speaker 2 (12:06):
No, I did not.
Speaker 1 (12:10):
I don't think you ever. You never really gravitated towards music,
did you. No? I mean we got I mean you
like music, but I never say, like run around the house,
want to play like, you know, trombone or something.
Speaker 2 (12:21):
No, no, definitely not the trombone.
Speaker 1 (12:25):
Or the guitar or the piano or yeah, I don't know.
Speaker 3 (12:29):
We got a guitar and a drum set number one
year piano, and we just never I feel like it
would have been interesting to learn you.
Speaker 1 (12:39):
Could serenade Marissa.
Speaker 6 (12:41):
Yeah, go down on the bottom floor and ever go
out on the balcony yep, yep, like Romeo, Romeo, Romeo,
where thou or Romeo?
Speaker 1 (12:53):
All right, we're talking about qualified assets. I raise and
not only pre tax, but after tax, traditional and roth
almost seventeen trillion dollars probably is right now in those
types of assets, and they are extremely complicated, and we're
going to talk about some of the complications, but right
(13:14):
now we're talking about if you want a gift, so
you're allowed to gift nineteen thousand dollars a year to
your loved ones without any tax consequence. So if I
want to gift nineteen thousand dollars to you, Chris out
of my ira, is that a taxable event to me? Yes, yep,
(13:34):
yes it is, so I can gift it. So that's
why your annual gift exclusion the nineteen thousand dollars per person, housband, wife,
you do thirty eight thousand dollars for you know, one child,
they got ten children. You know, that's a whole hell
of a lot of money that they can get outside
their estate by gifting. But the problem with that is
(13:57):
that you're going to have to pay the tax. Now, ultimately,
somebody's gonna have to pay the tax. You know, if
you give it to a qualified charitable distribution to a charity.
The positive is you got to be seventeen and a
half or older. In order to do that, it is exempt.
It is exempt from taxable income, which is very powerful. Okay,
(14:20):
And I know a lot of people have intentions. They
don't have children. Maybe their children are doing a hell
a lot better than what they expected. They'd like to
do some of this charitable giving in their lifetime to
basically help out an organization, a synagogue, a church, you know,
an animal shelter, whatever it may be. So there are
(14:44):
strategies out there that will facilitate that. You just have
to be in a position that you understand the landscape
and the options that are available to you. So let's
kind of highlight. So if they want to do a
charitable contribute right, qualified charitable distribution, what's the age that
(15:05):
they have to be at?
Speaker 2 (15:07):
Seventy and a half?
Speaker 1 (15:08):
Right? And if they want to do it, what's the
maximum amount of money? Do you remember what it is?
It's one hundred and nine thousand dollars, which you can
do this year. Ro I'm sorry, so you said it
one hundred and eight You're right, I apologize. I'm having
a brain drain here. One hundred and eight thousand dollars.
I get into these figures, I get dizzy a little
bit so husband and wife one hundred and eight times two,
(15:30):
it's two hundred and sixteen thousand dollars. Not bad, and
I can multiply. But this is the key, folks. Do
not try to do this yourself. Okay. We have one
woman down in the Kingston, Hudson area that does this
on an annual basis. Lisa fills out all the paperworking out.
She does like fifteen or twenty with her fairly sizable
(15:54):
IRA account. You want to make sure it's a direct transfer.
Distribution must be sent directly from your IRA custodian to
the charity. Money that passes through your personal bank account
does not qualify for a QCD. Okay, so that's critical.
And then finally, for individuals that are looking in order
(16:18):
to reduce some of their tax liability, this basically delays it.
But it's also an option that's pretty powerful for usband
and wife. A QULEC. You know about a qule act
Qualified Longevity Annuity Contract. What it does is that you
can basically put this into an annuity contract. You can
(16:43):
do two hundred and ten thousand dollars per person, which
is the lifetime limit on the amount you can contribute.
But you do not You do not have to start
touching that money till the age of eighty five. So
what does it do? It reduces R and DS.
Speaker 3 (16:58):
Yeah, which is good. You know a lot of people
trying to knock that off. I did want to hit
on the annual gift exclusion you were saying earlier. It's
nineteen thousand dollars per person. But you can go over that,
you know, that's just the annual limit that they allow
is where you don't have to fill out a form,
so you don't have to fill out or file the
(17:19):
IRS form. It's a seven h nine form. And what
actually if you wanted to gift over that, you know,
annual amount, you can it would just you have to
fill out a form and then it would come off
of your lifetime estate and give tax exemption, which is
thirteen million, nine hundred and ninety thousand dollars per person.
Speaker 2 (17:43):
So that is what would it would just.
Speaker 1 (17:46):
Not a lot of people are going to fall into that.
Speaker 2 (17:49):
No, not a lot of people would fall into that, Yeah.
Speaker 1 (17:51):
Multiplied by two. For as with wife, you're talking about
twenty seven plus billion of assets. The key is set
to know what you own, know how it's taxed, know
what the law is where you live in the zip code.
And that's one of the other aspects that we're going
to talk about now, because you know, there's a lot
of people out there that are contemplating a Wroth conversion.
(18:17):
And I always say this over and over again, what's
your zip code going to be? And why do I
say that? Because not all states are all counties protect
the IRA it is. I'm going to want to emphasize
this state specific. While some states exempt iras from eligibility
(18:39):
calculations for Medicaid, others do not. So you've got to
make sure that you understand how aggressive this is the
state or the county that you're living in in regards
to your eligibility, especially if you're looking for Medicaid to
pick up your expenses for a long term care facility,
(19:00):
because certain states do not exempt iras, which means what
that means that you're going to have to spend it
in order to qualify for Medicaid. And what's going on
here in the Capitol District region, and I can speak
by experience because my son and I see it all
the time. A lot of people say, you've got to
(19:24):
put your IRA into periodic payment into the payment mode
in order for it to be protected from Medicaid. What
the counties are doing now is that they say that's fine,
but you're no longer going to do it on the
uniform lifetime table. Now, it's going to be done on
the SSO security Medicaid eligibility calculation based on life expectancy.
(19:49):
So if you're eighty years old and they say you
got an eighty five year your life expectancy, that means
you're going to have to take your pool of money
and divide by five, and that's how it's going to
have to get paid out in order for you to
have that Medicaid bed. So beware, beware, because we've seen it.
(20:09):
We've seen individuals that have depleted their irais not because
they wanted to, but because the county that they were
trying to reside in as far as the Medicaid bed
forced them to spend down the money based on life expectance.
Speaker 3 (20:26):
Yeah, and that's huge. I was just talking to someone
about that yesterday out in Syracuse. Because they're you know,
they're trying to think of if they're going to live
locally or in another state. So that's something to always
take consideration of is where are you going to be
living in retirement and what are the local local laws,
(20:47):
you know what affecting how assets are spent down because
Florida is completely different than New York, as is Texas
or California or wherever you end up. So you definitely
want to do a little bit of research and figure
out how all that stuff affects your IRA assets and
how how and what would they come after if you
(21:08):
did end up in a nursing home.
Speaker 1 (21:10):
So you need to understand we're going to kind of
highlight here because it's kind of we're going to give
you a lot of information in a short period of time. Okay, iras,
depending on your zip code and the state, can be
accountable assets that need to be spent down to certain
limits to qualify for Medicaid benefits. Even in some exempt
(21:35):
states such as New York. Right, some of the counties
are using what they call a different calculation, not periodic payments,
are rm D life expectancy based off of the table
that they have with the Medicaid Eligibility table for Qualified
Planned distributions. So roth iras present another unique challenge. Why
(22:01):
is that because they do not have a required minimum
distribution right no rm D, So that's making it harder
to convert into what they call accountable income stream for Medicaid.
Some states, some counties look at that as a resource
that they can go after for Medicaid eligibility. So payout
(22:23):
status is key. States that you live in are key.
Make sure you understand the distribution strategy that you're putting
into place, because, as I said over and over again,
as you age, the thing that's really your achilles heel
is pre tax money and basically your health.
Speaker 3 (22:43):
Yeah, and to hit on the roth IRA portion of it.
There there is strategies around conversions that people will do
with their large IRA accounts pre RMD age. It makes
sense in some case scenarios if if it's more of
a legacy piece asset. If your IRA is you're not
going to utilize the money, it's all pre tax money
(23:07):
and it's kind of just an account you want to
leave for your beneficiaries to enjoy. Well, maybe doing a
roth conversion would make sense because you are paying the
tax upfront and then you can then reinvest that money
into a wroth IRA for growth, so it can be
a legacy asset that they will inherit where it's not
going to step them up into potentially the next tax bracket,
(23:31):
so it's not taxable to the beneficiary, but it does
follow the same ten year window where it has to
be taken out of the account.
Speaker 1 (23:41):
Yeah, that's the thing right there. That's another key change
that has happened. You know when you receive a non
spouse when you're a non spouse beneficiary of an IRA,
it used to be you could stretch it from now
until the end of time. It's no longer the case.
Now you have to have that money out over a
ten year period of time. You got to take distributions
(24:02):
throughout the years the ten years, but of that money
has to be out at the end of the tenth year.
So for a lot of us, that's going to be
in your prime time. It's going to be when you're
making the most amount of money. And basically what you're
doing is that you're taking a very highly taxable income
(24:24):
asset and you're dumping it on your children and your
loved ones when they're basically in the prime time of
their working years. So need understand this, folks. Critical a
lot of money that you've accumulated ROI is not necessarily.
What's going to happen and we turn on investment, it's
ROI minused all that tax liability. So we're coming back.
(24:47):
I'm Dave Kopek. This is retirement ready. I'm here with
my son, Christopher William all right, I got the bass,
my son's got the drums. People have said to me
(25:10):
over and over again, hey, what happened all the music
that you used to play? Well, we were slapped on
the wrists, say you can't play music anymore, because then
if you play the music, you got to give some
vig to the artists. That's why we got this hip
hop and what we would call what would you call
this money? Very generic. I'm gonna get my own guitar
(25:32):
and sing a little bit in the future. So all right,
we're talking about qualified assets. We're talking about the money
that you have pretexts trillions of dollars, almost seventeen trillion dollars.
It's the retirement savings time bomb. The government has a
plan for you, and I'm using that. That's an ed
(25:53):
Slot quote. It's not mine. It's the book, right. And
the reason why you want to conce or this is
because too many people sit they do nothing, they start
receiving these large distributions, and a lot of times when
that starts happening, there's nothing you can do about it
because it's too late. So, you know, I would say
(26:14):
that probably the biggest mistake that most of you are
making right now as far as accumulating assets is that
you have way too much of your money pretex.
Speaker 3 (26:23):
Yeah, not a lot of people utilize their WROTH option.
I mean, if you have it available in your four
to one K plan or whatever you're contributing to, you
should at least look at it and consider it as
an option. You know, you don't have to completely transition
all the funds to it, but haveing a portion of
your assets set aside for WROTH is very beneficial in
(26:44):
the long run. It just gives you an after tax
bucket of money that you can pull from in retirement
and not have to worry about paying the tax on it.
And WROTH dollars are not susceptible to rmds. They do
not You're not going to have a required distribution on
any WROTH dollars.
Speaker 1 (27:03):
So what's great about it is that ROTH is tax free,
tax free, tax free. What do you mean by that?
It's tax free to you as long as you're holding
it for five years, it's tax free to your spouse,
and it's tax free to your non spouse beneficiaries, whoever
they may be. Yes, the third the non spouse beneficiaries
are going to have to have it paid out over
(27:25):
ten years. But who cares. Tax free is tax free.
They're still going to be able to get the growth
if they want, where they can reposition the wealth and
basically allocate it the way that they want. Here's the key, though, folks,
is that you need to understand is that iras. As
much as you hear this literature and this messaging, and
(27:46):
you know, I'm not saying that they're wrong, they're just not.
I don't think you'd give you one hundred percent clarity.
You need to understand, depending on the state that you
live in and the size of your iras four oh
one K four h three B New York State deferred compensation,
if you are not planning how to take distributions off
(28:07):
of those assets, you're basically doing yourself at the service,
because depending on where you will reside will ultimately mean
what happens to those monies. If you have a health
of that.
Speaker 2 (28:20):
Yeah, and we just touched on this.
Speaker 3 (28:21):
You know, you really should figure out where you're going
to be located in retirement, in which county you're going
to be in, and specifically the state. So that's huge.
That's a huge part of the planning process. And then
also planning around what you're going to do with the
money in retirement is huge. We see a lot of
folks come in and they don't and they have these
(28:42):
large IRA accounts and they don't necessarily know how they
want it structured or what they're going to do in
retirement now, So planning at least a few years out
and understanding what your goals are within retirement, whether you're
going to travel, whether you're going to you know, just
spend time with the family and the grandkids and leave
(29:02):
it more as a legacy asset. You know, you kind
of want to plan around these things and make sure
you know that your money is structured the way that
you're it's going to reflect the lifestyle that you want
to have within retirement as well.
Speaker 1 (29:16):
Yeah, and you know that's absolutely but here this is
the thing that I'm trying to drive home for people
to understand the difference. What is the difference because you
hear people say I want to do a wroth iray
or I want to you know, I got wroth I
got a lot of wroth money. The difference is is
that how irays traditional versus wroth irays different. The first
(29:36):
is and the most critical one, right, especially if you
don't have long term care. You know, it's the middle
you know, middle class that really gets kicked in the
teeth with this. As far as medicaid planning, the payout status,
Medicaid rules often exempt traditional irays from being counted as
(29:56):
an asset as long as the owners taking distributions periodic payments. Okay,
the question is do they does the county do rmds
based off the uniform lifetimetable or are they doing distributions
based on life expectancy? Critical that you understand that the
second thing is wroth irays have no rmds, right, They
(30:22):
do not have protection because they don't have a payout status. So,
because a wroth ray is not in a payout status,
the Tolan balance of the account is considered accountable asset.
So if your assets succeed your state's medicaid limit, you
may be required to liquidate the wroth ira and spend
(30:42):
it down in order to pay for your expenses that
are being paid by the county.
Speaker 3 (30:50):
Critical So in that scenario, it would be less advantageous
to have a roth.
Speaker 1 (30:56):
At And I'm going to go through what you should do. Okay,
I'm going to tell you what you should do. So
get your pencil out, pull the car over right, stop
and get a soda, because I'm gonna go through a
strategy that I've used for years. We just did it
with a husband and wife. So if if I do
(31:18):
a let's just do I'll ask you some basic questions.
If I do a wroth conversion and I take ten
thousand dollars out of my wroth, out of my traditional iray,
and I put it into my wrath, what do I
have to do. I got to pay the tax and
then I got ten thousand dollars sitting in a wroth
(31:38):
right now. If I use life insurance, survivorship, life insurance,
second to die insurance, whatever it may be, even an
individual policy, I'll use the couple that we're just doing
this with, with a couple down in the southern Tier,
they're taking thirty six thousand dollars out of their iras,
(31:59):
out his sum out of hers and they're basically getting
tactical that thirty six thousand dollars that they're going to
pay into the insurance, which is held inside an islet,
the Irrevocable Life Insurance Trust, will create one point five
million dollars of guaranteed tax free benefit once they both
(32:22):
pass away.
Speaker 2 (32:24):
Yeah.
Speaker 3 (32:24):
Yeah, we do a lot of work with those, or
at least talk about it with folks, because they have
a lot of pre tax assets and they're not going
to utilize you know, maybe income like we were saying earlier,
strong social security, They have a pension, they live with,
you know, a pretty modest lifestyle that that can be
(32:45):
an avenue that we always look at is can we
fund tax preference assets as an inheritance to your beneficiaries
through the use of distributions off your IRA account that will.
Speaker 1 (32:58):
Be tax free, be held in a trust you've protected
from creditors and predators evil son and laws and daughter
in laws and medicaid spend down because the trust owns
the asset, it's not owned by you individually. Right, critical
that you understand this. Okay, Now, if I do a conversion,
you die in the first year, right, thirty six thousand
(33:21):
dollars in a traditional right, what do I do? I
end up? I end up with thirty six thousand dollars
in an IRA. If I do the thing that I
just talked about, I pass away prematurely the thirty six
thousand dollars. What does my errors get, Well, they get
one point five million dollars tax free. So the velocity
(33:43):
on the money is huge, and it happens day one
dollar one. Sometimes people think that, you know, we've got
a magic wand now it's all based off of actuary
assumptions and statistics by the insurance company. So understand that
there's different options and different oppert tunities for you. It's
just a question, right, do you have long term care insurance?
(34:06):
Do you know the Medicaid rules where you're gonna live?
Are you looking to protect the asset once you actually
do the conversion to a ROTH, and does it make
sense for you to do the ROTH conversion or look
at an alternative strategy such as a legacy using life
insurance that will guarantee the benefit and also guarantee a
(34:28):
tax free solution just like the ROTH.
Speaker 3 (34:32):
Yeah, And how we do this is we're not saying,
you know, we're gonna take a huge chunk of this
IRA out to where it's being spent down. It's usually
so if we typically say take a five percent withdrawal
rate off the account.
Speaker 1 (34:46):
Or carve off a chunk of it.
Speaker 3 (34:47):
If yeah, if that's a million dollar account, for example,
we're saying, you know, you should be able to consistently
take fifty thousand dollars a year off this account to
supplement your income in retirement with social security, YadA YadA,
and if you don't need the full five percent. So
say you have a strong pension and social social security
along with a million dollar IRA, and you're saying, well, geez,
(35:10):
I don't need another fifty thousand dollars off this every year.
Well that's when we would look at and say, okay,
if we took two to three percent of this money,
the money you don't need, took thirty thousand dollars a
year paid into this life insurance policy, we can generate you,
like you were saying, somewhere from one million to one
point five million, and attacks preference death benefit that has
(35:31):
no ten year spend down and it's not taxable to
your beneficiaries.
Speaker 1 (35:35):
Right. I want to overemphasize we're not attorneys. Okay, So
you know, we work with a lot of attorneys in
the capital disagreetion throughout the country, depending on where our
clients are. It is critical, it is critical that you
work with a I'm gonna say this, I'm going to
overemphasize this, a qualified elder law attorney, not an attorney
(35:57):
that does closings, that goes to core, that does litigation.
You need someone that can advise you that understands qualified
elder law, such as a loop Piro in his firm.
That's all they do, right, They work in this arena,
they know it inside and out. They know how to
protect your assets from Medicaid. You want to be in
(36:19):
a position that all this hard earned money that you've
worked for for so long goes to where you want
it to go. So I'm not going to beat the
horn too much. I'm not going to blow it and say,
you know, this is something that you should do. I'm
just saying is that these are options, options that are
available to you. I've seen too many people that have delayed,
(36:40):
sat on the fence. Now they don't do anything. Now
they're in a situation, they need care, they need assistance.
Most of their moneys in iras and basically what I
can say to if folks they're in deep, you know
what they're in deep? You know what. So right, we're
going to take a break here, we're gonna come back.
We're gonna talk about this a little more detail. If
(37:01):
you have any questions, we're live in the studio one
eight hundred talk WGY. That's one eight hundred eight two
five fifty nine forty nine, one eight hundred talk WGY.
This is the retirement ready shore.
Speaker 4 (37:26):
Time flies and retirement will be here before you know it.
Are you ready? Don't wait until it's too weight to
get your plan in place. Dave Kopek and the team
at Retirement Planning Group are helping people just like you
take control of their financial future right now. Call eight
eight eight five eight zero nineteen nineteen today or go
to rpgretire dot com to schedule your consultation. Retirement won't wait.
(37:51):
Why should you.
Speaker 1 (37:53):
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 into monthly income
that will last a lifetime. At the Retirement Planning Group,
we build customized income distribution plans so you can retire
(38:14):
with confidence, retire smart, live well. Call eight eight eight
five eight zero nine one nine for your complementary consultation.
Speaker 5 (38:23):
When US Navy Chief Petty Officer Michael Thomas Ernst was
killed in the line of duty, Tunnel to Towers provided
his wife and children with a mortgage free home. Since
Tunnel to Towers was founded in the aftermath of nine
to eleven, the Ernst family is one of many the
foundation has helped, but many more heroes and their families
are still in need. Together, we can say thank you
(38:44):
by showing them our support. Now donate eleven dollars a
month to Tunnel to Towers at T two t dot org.
That's t the number two T dot org.
Speaker 1 (38:53):
We are living through the greatest wealth transfer in the
history of mankind. Trillions of dollars of wealth will change
hands from one generation into 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, take action. The future
(39:15):
favors those that are prepared. Call eighty eight five eats
zero one nine nine. That's eighty eight five eats zero
one nine one.
Speaker 2 (39:23):
Nine portions of the following program or be recorded.
Speaker 1 (39:31):
All right, we are back. We have a couple of
phone callers, so we're gonna go to them. Let's go
to Sue. Are you Sue?
Speaker 7 (39:41):
I'm doing okay. I have a question in regard to
doing trust just ma'am. I want to know if doing
a trust to protect your homes. If you say you
gave it, put the trust in your son's name and
(40:01):
he get sued any time, are you protect? Is he protected?
Is the property protected? Or is that liable to the laws?
Are they able to attach?
Speaker 1 (40:15):
No, well, you don't want to give it to your son.
You want to give it to the trust. You want
to give the asset to the trust. You're the donor, sure,
and then once something happens to you, you know, once
you pass away, then the assets are owned by the trust.
And depending on who is the beneficiar is, whether it's
your son or your daughter or your nieces and nephews,
then it would be liquidated and the money would be
(40:36):
you know, you know, distributed out to your son and
loved ones.
Speaker 7 (40:43):
Now, is there a better way of doing it? Making
somebody's telling me you could do it set up a
shell a shell business, and then the trust is totally protected.
Do you know anything about that?
Speaker 1 (40:57):
I know everything about it. This is all I've been
doing now for like forty three, forty four years. So
what I would say to you is this, don't sit
down with the guy at the water cooler or somebody
that's got all these great ideas. You need to come
in and have a chat with either us or a
confident elder law attorney, and we will tell you what
you should do based off of the conversation that we have.
(41:18):
You know, we don't do any business in the first meeting.
We just have a conversation. We have a chat. It's
you know, grant us on us. You might not like us,
we might not like you, but it gives us an
opportunity to have a conversation. But you need to talk
to somebody because I think you're getting mixed signals.
Speaker 7 (41:35):
Okay, sounds great. Thank you have a great weekend.
Speaker 2 (41:38):
You too, many good bliss You agree? Yeah, shell company.
I don't. I don't know much about shell companies.
Speaker 1 (41:46):
Well, there's LLC, Shell corporations, there's trust, there's revocable, irrevocable.
You don't want to gift the house to the kid
because then you're giving giving the cost basis to the kid.
You know, that's you know the thing is well, I think.
Speaker 3 (41:59):
She was to hity on if if the trust was
in her son's name, is the house protected if someone
sues him.
Speaker 1 (42:06):
Well, the trust wouldn't be in the Sun's name. The
asset would be owned by the trust, and then the
Sun would be a beneficiary. Right, That's how it works, right,
that's the mechanics of it. So let's go to Mark
from Troy.
Speaker 8 (42:19):
Hi, Mark, Hello, how are you doing today?
Speaker 1 (42:22):
I'm doing absolutely fantastic. Look at it out there, Sonny
warm beautiful.
Speaker 8 (42:30):
I have a question for you. Not on SSD, I'm
being forced onto medicare, but I'm also going to be
getting a.
Speaker 1 (42:38):
No, you're you're being forced on it. You're not being
forced on Medicare. You're being forced on Medicaid, Medicaid.
Speaker 8 (42:46):
I'm sorry, And I also will be getting a settlement
from an insurance. Does that affect medicaid if I put
it into a trust.
Speaker 1 (42:56):
Yes, you need to talk to Loupiro. You need to
speak to a copy it does you need. You need
to sit down with lou He'll give you a free
consultation somebody from his team. There's like twenty attorneys with
his group. But you know, as I just said to
that woman, you need to get competent elder law advice.
(43:18):
He's one of the best. He's one of the best
in the areas. So what I would say to you
is he does a show before us or right after us.
So if you call my office, I can put you
in content. I can put you in contact with him.
Speaker 8 (43:33):
Brother all right, but thank you very much.
Speaker 1 (43:37):
God bless all right. Like I like phone calls, they
always make a little bit more interesting. You got a
question or comment, one talk to me. G y one
eight hundred eight two five fifty ninety nine. You know,
I'll say this and it sounds kind of corny. I
know the last few times I was out in our
Syracuse office, I was talking to some people that listen
(43:59):
to show out there and they're basically saying, you know,
blah blah blah blah blah. And I said, what I
say all the time you need a plan, blah blah
blah blah blah. What do I say all the time
you need a plan? You need a plan. Yeah, you
need a plan. So it's no different. You know, when
you're accumulating assets, it's easy to set aside money and
(44:22):
do pre tax, pre tax, pre tax. I can tell
you a lot of people don't like paying tax. But
the bottom line gets down to as you age, you
want to have some tax preference money. The only way
I know you get tax preference money is money that
you have after tax, after you pay the bills, moneys
that you put into HSA accounts, health savings accounts. But
(44:43):
you have to have a high deductible plan. But that's
not a lot of money today. A high deductible plan
and roth roth four oh one k roth iras, Yeah,
they're to me, that's the trifecta.
Speaker 3 (44:57):
Yeah, I mean the the benefits of pre tax contributions
or that you're deferring the tax so you're putting in
more money into your plan. So if you want to
get your your four to one K to grow faster,
pre tax makes more sense because you're not taking you know,
twenty percent hit upfront on federal taxes or whatever tax
bracket you're in. You're not paying the tax upfront and
(45:18):
then investing the money, so that money will will grow
faster than WROTH contributions. But the benefits of WROTH in
after tax money is always on the back end, so
you're going to take tax free distributions from it, and
then you're not susceptible to r and ds, and when
your beneficiaries inherit it, it's not taxable to them as well.
Speaker 1 (45:42):
You're one hundred percent right on that. So the bottom
line gets down to say, you know what, folks, Uh,
it's easy to do nothing. It's hard sometimes to motivate
and do something. But I can tell you right now,
for a lot of us, the greatest risk, especially if
we have accumulated enough money in our life lifetime, because
we hear almost every single week with appointments that we
(46:04):
have with either current retirees or people that are going
into retirement, the cost of healthcare. It's an astronomical figure
as far as what you can expect to pay during
your pre and post retirement years. And personally, I think
it's only going to get worse, it's not going to
get better. There's no national healthcare.
Speaker 2 (46:25):
Yeah.
Speaker 3 (46:26):
Yeah, I mean that's a huge, huge part of every
conversation we have with I think everybody is the estate
planning side of things, and then the next is up
is healthcare if they want to retire early, so sixty two,
sixty fifty eight, fifty five, whatever it may be, which
we've seen a lot more of people trying to retire earlier,
(46:47):
at least considering it before the age sixty five. They're
looking for ideas on how to bridge now to sixty
five in what would make sense as far as healthcare expenses, sure,
because it's they're extreme.
Speaker 1 (47:04):
Well, I would say that probably nine out of ten
people one of the biggest reasons they work or we're
part time to age sixty five is to you know,
they want to become Medicare, not Medicaid, Medicare eligible. But
here are some dates that dates. These are some ages
you need to understand. Okay, this is my last bullet point,
(47:26):
and then I'm gonna let my son basically go over
or swing for cure golf outing fifty five. You can
get money out of your four O one k without
any penalty. It's not fifty nine and a half. As
long as you keep the money in your four oh
one K, you can take the money out at age
fifty five fifty nine and a half. That's the magical age.
You can take money out of your qualified without any penalty.
(47:47):
A lot of times we tell individuals to do an
in service distribution, get out of your four O one
K and start building your buckets of money. Sixty widow
benefits or widower sixty two is the first age you
can start getting Social Security. Sixty five is Medicare, sixty
six or sixty seven is FRA for most of us
now full retirement age. And of course the magical age
(48:08):
seventy seven to zero is the age for people to
get the maximum Social Security benefit. So, you know, we
talked about a lot of stuff today. Just remember IRA
four O one K four three B pre tax money
is very, very complicated. We offer a complementary consultation. Caller
(48:28):
Office would be more than happy to sit down with
you and see if we can build out a plan
for you. So I'm gonna have my son go over
the golf outing swing for a cure and hopefully God
bless you you can participate. It's a great day. Yeah.
Speaker 3 (48:41):
So once again it's the fifteenth annual Swing for a
Cure golf tournament where we are hosting it at Fairways
of Half Moon and the charities that were benefiting this
year is the American Cancer Society and then tunnels to
Tower Foundation. So it's a great event. If you have
any question or anything on it, call the office and
(49:01):
speak with Jimmy. He's kind of hosting everything and putting
all the pieces together for this. He The golf tournament
includes first and second team prizes, a putting contest, a
longest drive for male and female, Closest to the Pin
for mal and female, and then a ton of raffle Prizeshe.
Speaker 1 (49:21):
Huge amount of prizes and gifts.
Speaker 3 (49:23):
Yeah, he always runs around and gets all this from
our sponsors and people who are sponsoring either holes at
the event or strate strategic partners through yup work and everything.
So it's always great. It's always a good time. And
if you do, you know, you don't have to play
in the tournament. You can just donate to either of
the foundations. Just give the office a call, speak with Jimmy.
(49:44):
He'll give you all of the information on where to
make the check out to or wait to mark the
payments out to or court.
Speaker 1 (49:51):
They can come just to the luncheon too, or.
Speaker 3 (49:53):
Yeah, or you can just come to the luncheon and
try and win yourself some raffle prizes.
Speaker 1 (49:57):
So God bless everybody, got blessed the marri God bless
Charlie Kirk and his family and his wife. A horrific
situation there, the girl down in North Carolina. Just there's
been some horrific things going on in this world. Say
some prayers. We all need some prayers for those people.
And again we'll be back next week for another retirement Ready.
(50:20):
I'm Dave Kopek, president of the Retirement Planning Group. We
have six locations now in New York State, New One's
and Hudson. If we could be of assistance, give us
a call. You're more than happy to sit down with you.
Speaker 9 (50:44):
The information our services discussed on this show was for
informational purposes only and is not 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.
Speaker 5 (51:01):
Double d G y A. M.
Speaker 2 (51:02):
Skin Act, Tody double d g y f M Albaning
Speaker 1 (51:05):
Live on the free iHeartRadio on news Radio one O
three one on eight ten w G y
All right, this is Retirement Ready. I'm Dave Kopek, I'm
your host. Good to be here. We're live in the studio,
and I've got my son here. Christopher William called him
up and I said, listen, come on in. My lips
are a little bit parshed from this morning from seven
(00:29):
to nine. So good afternoon, Christopher William.
Speaker 2 (00:34):
Good afternoon.
Speaker 1 (00:35):
Before we get into today's show, which is the Retirement
Savings time Bomb, got a little work to do here,
little housekeeping. So why don't you tell people what we're
doing the next couple of weeks.
Speaker 3 (00:51):
Yeah, you went over it this morning with actually members
of the foundation. But we're doing our annual Swing for
a Cure golf tournament coming up. It is on Thursday,
September twenty fifth. So we always do this every year
where we partner with American Cancer Society, and then this
(01:11):
year we're partnering with another charity. It's called Tunnel to
Towers Foundation. It's a great foundation. It's for it honors
the legacy of a firefighter, Stephen Siller, and all the
first responders in military personnel who have made the ultimate
sacrifice and have been you know, or have been catastrophically
(01:33):
injured in the line of duty. So their mission behind
the foundation is to just do good. Reflect the efforts
to provide mortgage free homes to gold star and fallen
first responder families, you know, build smart homes for injured
veterans and combat veteran So it's a great cause. You know,
(01:53):
they're a part of it. This year for us in
they also worked to ensure that you know, the HEROSM
along with nine to eleven, which you know we wanted
to highlight, which just passed the anniversary of it is
never forgotten. So there are a lot of they try
to spread out, you know, their their foundation. They're charitable
donations that go to them to a lot of different
(02:16):
areas of first responders or veterans or you know, veterans
who have been disabled. So it's a great cause. We're
happy to be partnered with them. And any donations can
be made, you know, to either of these foundations, either
American Cancer Society or Tunnel to Towers. All of the
proceeds will be will be split between them.
Speaker 1 (02:40):
And you know, this is something that we've wanted to
do for quite a while. The T two T you
got to go through an approval process, which we did
so on September twenty fifth. If you war in the
uniform where you want to help out some of the
people that are recipient's Tunnel to Tower monies that are
you know, hand it out to these families, we would
(03:03):
love to have you participate and call our office at
five point eight five eights zero one nine one nine
five eight five eats zero one nine one nine speak
to Jim Quirkman and he'll go through the details with you.
But UH registration is eight fifteen. Nine to fifteen is
the start, and again one percent of the proceeds go
to h the American Cancer Society and Tunnel to Towers.
(03:25):
We're going to this year do a seventy thirty split
seventy percent to Tunnel to Towers and thirty percent to
the American Cancer Society because we've already had one golf
outing with our family for the American Cancer Society this year.
So UH, today we're talking about the retirement planning time bomb.
(03:48):
And when I mentioned this, the savings that you have
in IRAS is an astronomical amount of money that's out
there right now and a lot of people have no
idea the magnitude, But as of right now in twenty
and twenty five, there is approximately ballpark sixteen point eight
(04:15):
trillion dollars. That was the end of the first quarter
of twenty twenty five, most recent updated figures in i
RAISE and this not only is traditional irays but also rough.
So bottom line is is that it's a whole hell
(04:35):
of a lot of money and you need to understand
exactly how you can protect it and ultimately where you
want that money to go once you pass away. Because
the government has a plan for you, folks, and it's
called RMD Required Minimum Distribution. Once you hit that magical age,
you have to start taking Required Minimum Distribution. It's not
because you want to, but because the government forces you
(04:58):
to take the list of the distribution. So today we're
going to be talking in the entire hour about ideas
and concepts and things that you can do based off
of your own particular situation. But bottom line gets down
to is that you want to make sure that you
have a plan specifically for your qualified assets. What would
(05:20):
you say, Chris, Probably eighty percent of the people that
we meet with, maybe even higher. Most of their money
is in two assets, their IRA and the equity in
their home.
Speaker 3 (05:31):
Yeah, I mean, I will say we have recently seen
a decent amount of folks with large non qualified accounts
as well, but i'd say the bulk like you were saying,
seventy five eighty percent of the people who we meet
with their largest assets are there four oh one K,
four H three B you know, whatever plan they're contributing
(05:52):
to throughout their working years. And then yeah, the home,
those are the two big assets.
Speaker 1 (05:59):
So well, for a lot of us, we have to
take those assets and turn them into pension benefits. Other
individuals that have been very fortunate in their lifetime that
have pension benefits, they have a lot of money, sometimes
up to seven figures and qualified assets. It's the Achilles
heel with your overall estate plan, and for most individuals,
they really don't know what to do with it, how
(06:22):
to direct those assets in their lifetime. You know, everybody
hears about roth conversion, spend downs, qualified charitable distributions. We're
going to go over all of that today and hopefully
if you have any specific question is about your own
personal situation. As I said, we're live in the studio.
We're here, it's Saturday, September thirteenth, twelve eleven in the afternoon.
(06:47):
So if you want to call us, it's one eight
hundred talk to me gy that's one eight hundred eighty
two five fifty nine forty nine. And any question that
you have, even if it's off topic, that's fine. But
as I said, today's top is what do we do
with all these IRA assets, especially for individuals that really
don't need them for retirement income? So where do you
(07:09):
want to start qualified charitable distributions?
Speaker 3 (07:12):
Chris, Yeah, I guess we can start there, just because
we've seen a couple instances of this recently where people
were looking what they should do with this large IRA
account and now they're thinking about donating some of it
to charity or how does that work? So you must
(07:32):
be at least seventy and a half or older to
make a qualified charitable distribution, So if you're under that age,
you unfortunately cannot do that right now. But the annual
limit on that is you can donate up to one
hundred thousand dollars per person per year directly from an
IRA to a qualified charity. So if you have funds
(07:57):
that you're not necessarily going to use, it's just a
huge IRA account that you've built up. You're not you know,
you're taking withdraws off of it. But maybe you have
a strong pension and strong social security so you don't
really need these funds and you're thinking about charitable giving. Well,
this option is available to you. You know, the donation
(08:17):
is excluded from your taxable income as well, like an
unlike a normal IRA withdrawal.
Speaker 1 (08:23):
That's that's huge. What people need to understand is that
this is a distribution, especially if you're top heavy, and
the distribution is excluded from your taxable income. For the
year twenty and twenty five, Chris, it's one hundred and
eight thousand dollars, So if you have a husband and wife,
that's two hundred and sixteen thousand dollars. So you can
(08:43):
get out of qualified assets and you're going to satisfy,
especially if you're concerned about rm D, you're going to
satisfy your rm D required mon distribution, right.
Speaker 3 (08:55):
So it's a good it's a good tool to utilize
for folks who don't necessarily need this money, or they
have charities that they've been contributing to for years and
years and years and they're looking to tactically tax advantaged.
Get that RMD sent out the door without you know,
paying more taxes on it.
Speaker 1 (09:16):
The key to this, folks is don't do this yourself.
You have to have a form that's going to be
filled out directly from your custodian to the charity. It
has to be filled out properly. You're basically creating a nightmare,
so you need to use your financial team. Of course
we go through Fidelity the mothership, but again we're live.
Do you have any questions today we're talking about I
(09:38):
raise the Achilles Heel for a lot of us and
the type of planning that you need to do during
your pre and post retirement years. I'm Dave Kopek. I'm
here with my son Christopher. We'll be right back after
this quick message.
Speaker 4 (09:56):
Planning for retirement doesn't have to be overwhelming, especially when
you have the right team by your side. At Retirement
Planning Group, Dave Kopek and his team are here to
help you build a strategy tailored to your goals and lifestyle.
Whether you're nearing retirement or just getting started, now's the
time to take control of your future. Schedule your free
consultation today at rpgretire dot com. Or call eight eight
(10:20):
eight five eight zero nineteen nineteen Retirement Planning Group Retire
with Confidence.
Speaker 1 (10:27):
Retirement isn't 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
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.
(10:48):
Eighty eight eight five eat zero one nine one nine.
That's eight eight eight five EID zero one nine one nine,
and your future will thank you.
Speaker 5 (10:56):
Born on America's darkest day of nine to eleven, the
Tunnel two Towers Foundation has been helping America's heroes ever since.
People who put their lives on the line for our
country and our communities need your help now more than ever.
Join Tunnel to Towers on its mission to do good
in their honor. Never forget nine to eleven or the
sacrifices of this country's heroes and their families. Show your support.
(11:20):
Donate eleven dollars a month at T two t dot org.
That's t the number two t dot org.
Speaker 4 (11:27):
Time flies and retirement will be here before you know it.
Are you ready? Don't wait until it's too weight to
get your plan in place. Dave Kopik and the team
at Retirement Planning Group are helping people just like you
take control of their financial future right now. Call eight
eight eight five eight zero nineteen nineteen today or go
to rpgretire dot com to schedule your consultation. Retirement won't wait?
(11:53):
Why should you?
Speaker 1 (12:00):
All right, the son brought his drum set in, So.
Speaker 2 (12:06):
No, I did not.
Speaker 1 (12:10):
I don't think you ever. You never really gravitated towards music,
did you. No? I mean we got I mean you
like music, but I never say, like run around the house,
want to play like, you know, trombone or something.
Speaker 2 (12:21):
No, no, definitely not the trombone.
Speaker 1 (12:25):
Or the guitar or the piano or yeah, I don't know.
Speaker 3 (12:29):
We got a guitar and a drum set number one
year piano, and we just never I feel like it
would have been interesting to learn you.
Speaker 1 (12:39):
Could serenade Marissa.
Speaker 6 (12:41):
Yeah, go down on the bottom floor and ever go
out on the balcony yep, yep, like Romeo, Romeo, Romeo,
where thou or Romeo?
Speaker 1 (12:53):
All right, we're talking about qualified assets. I raise and
not only pre tax, but after tax, traditional and roth
almost seventeen trillion dollars probably is right now in those
types of assets, and they are extremely complicated, and we're
going to talk about some of the complications, but right
(13:14):
now we're talking about if you want a gift, so
you're allowed to gift nineteen thousand dollars a year to
your loved ones without any tax consequence. So if I
want to gift nineteen thousand dollars to you, Chris out
of my ira, is that a taxable event to me? Yes, yep,
(13:34):
yes it is, so I can gift it. So that's
why your annual gift exclusion the nineteen thousand dollars per person, housband, wife,
you do thirty eight thousand dollars for you know, one child,
they got ten children. You know, that's a whole hell
of a lot of money that they can get outside
their estate by gifting. But the problem with that is
(13:57):
that you're going to have to pay the tax. Now, ultimately,
somebody's gonna have to pay the tax. You know, if
you give it to a qualified charitable distribution to a charity.
The positive is you got to be seventeen and a
half or older. In order to do that, it is exempt.
It is exempt from taxable income, which is very powerful. Okay,
(14:20):
And I know a lot of people have intentions. They
don't have children. Maybe their children are doing a hell
a lot better than what they expected. They'd like to
do some of this charitable giving in their lifetime to
basically help out an organization, a synagogue, a church, you know,
an animal shelter, whatever it may be. So there are
(14:44):
strategies out there that will facilitate that. You just have
to be in a position that you understand the landscape
and the options that are available to you. So let's
kind of highlight. So if they want to do a
charitable contribute right, qualified charitable distribution, what's the age that
(15:05):
they have to be at?
Speaker 2 (15:07):
Seventy and a half?
Speaker 1 (15:08):
Right? And if they want to do it, what's the
maximum amount of money? Do you remember what it is?
It's one hundred and nine thousand dollars, which you can
do this year. Ro I'm sorry, so you said it
one hundred and eight You're right, I apologize. I'm having
a brain drain here. One hundred and eight thousand dollars.
I get into these figures, I get dizzy a little
bit so husband and wife one hundred and eight times two,
(15:30):
it's two hundred and sixteen thousand dollars. Not bad, and
I can multiply. But this is the key, folks. Do
not try to do this yourself. Okay. We have one
woman down in the Kingston, Hudson area that does this
on an annual basis. Lisa fills out all the paperworking out.
She does like fifteen or twenty with her fairly sizable
(15:54):
IRA account. You want to make sure it's a direct transfer.
Distribution must be sent directly from your IRA custodian to
the charity. Money that passes through your personal bank account
does not qualify for a QCD. Okay, so that's critical.
And then finally, for individuals that are looking in order
(16:18):
to reduce some of their tax liability, this basically delays it.
But it's also an option that's pretty powerful for usband
and wife. A QULEC. You know about a qule act
Qualified Longevity Annuity Contract. What it does is that you
can basically put this into an annuity contract. You can
(16:43):
do two hundred and ten thousand dollars per person, which
is the lifetime limit on the amount you can contribute.
But you do not You do not have to start
touching that money till the age of eighty five. So
what does it do? It reduces R and DS.
Speaker 3 (16:58):
Yeah, which is good. You know a lot of people
trying to knock that off. I did want to hit
on the annual gift exclusion you were saying earlier. It's
nineteen thousand dollars per person. But you can go over that,
you know, that's just the annual limit that they allow
is where you don't have to fill out a form,
so you don't have to fill out or file the
(17:19):
IRS form. It's a seven h nine form. And what
actually if you wanted to gift over that, you know,
annual amount, you can it would just you have to
fill out a form and then it would come off
of your lifetime estate and give tax exemption, which is
thirteen million, nine hundred and ninety thousand dollars per person.
Speaker 2 (17:43):
So that is what would it would just.
Speaker 1 (17:46):
Not a lot of people are going to fall into that.
Speaker 2 (17:49):
No, not a lot of people would fall into that, Yeah.
Speaker 1 (17:51):
Multiplied by two. For as with wife, you're talking about
twenty seven plus billion of assets. The key is set
to know what you own, know how it's taxed, know
what the law is where you live in the zip code.
And that's one of the other aspects that we're going
to talk about now, because you know, there's a lot
of people out there that are contemplating a Wroth conversion.
(18:17):
And I always say this over and over again, what's
your zip code going to be? And why do I
say that? Because not all states are all counties protect
the IRA it is. I'm going to want to emphasize
this state specific. While some states exempt iras from eligibility
(18:39):
calculations for Medicaid, others do not. So you've got to
make sure that you understand how aggressive this is the
state or the county that you're living in in regards
to your eligibility, especially if you're looking for Medicaid to
pick up your expenses for a long term care facility,
(19:00):
because certain states do not exempt iras, which means what
that means that you're going to have to spend it
in order to qualify for Medicaid. And what's going on
here in the Capitol District region, and I can speak
by experience because my son and I see it all
the time. A lot of people say, you've got to
(19:24):
put your IRA into periodic payment into the payment mode
in order for it to be protected from Medicaid. What
the counties are doing now is that they say that's fine,
but you're no longer going to do it on the
uniform lifetime table. Now, it's going to be done on
the SSO security Medicaid eligibility calculation based on life expectancy.
(19:49):
So if you're eighty years old and they say you
got an eighty five year your life expectancy, that means
you're going to have to take your pool of money
and divide by five, and that's how it's going to
have to get paid out in order for you to
have that Medicaid bed. So beware, beware, because we've seen it.
(20:09):
We've seen individuals that have depleted their irais not because
they wanted to, but because the county that they were
trying to reside in as far as the Medicaid bed
forced them to spend down the money based on life expectance.
Speaker 3 (20:26):
Yeah, and that's huge. I was just talking to someone
about that yesterday out in Syracuse. Because they're you know,
they're trying to think of if they're going to live
locally or in another state. So that's something to always
take consideration of is where are you going to be
living in retirement and what are the local local laws,
(20:47):
you know what affecting how assets are spent down because
Florida is completely different than New York, as is Texas
or California or wherever you end up. So you definitely
want to do a little bit of research and figure
out how all that stuff affects your IRA assets and
how how and what would they come after if you
(21:08):
did end up in a nursing home.
Speaker 1 (21:10):
So you need to understand we're going to kind of
highlight here because it's kind of we're going to give
you a lot of information in a short period of time. Okay, iras,
depending on your zip code and the state, can be
accountable assets that need to be spent down to certain
limits to qualify for Medicaid benefits. Even in some exempt
(21:35):
states such as New York. Right, some of the counties
are using what they call a different calculation, not periodic payments,
are rm D life expectancy based off of the table
that they have with the Medicaid Eligibility table for Qualified
Planned distributions. So roth iras present another unique challenge. Why
(22:01):
is that because they do not have a required minimum
distribution right no rm D, So that's making it harder
to convert into what they call accountable income stream for Medicaid.
Some states, some counties look at that as a resource
that they can go after for Medicaid eligibility. So payout
(22:23):
status is key. States that you live in are key.
Make sure you understand the distribution strategy that you're putting
into place, because, as I said over and over again,
as you age, the thing that's really your achilles heel
is pre tax money and basically your health.
Speaker 3 (22:43):
Yeah, and to hit on the roth IRA portion of it.
There there is strategies around conversions that people will do
with their large IRA accounts pre RMD age. It makes
sense in some case scenarios if if it's more of
a legacy piece asset. If your IRA is you're not
going to utilize the money, it's all pre tax money
(23:07):
and it's kind of just an account you want to
leave for your beneficiaries to enjoy. Well, maybe doing a
roth conversion would make sense because you are paying the
tax upfront and then you can then reinvest that money
into a wroth IRA for growth, so it can be
a legacy asset that they will inherit where it's not
going to step them up into potentially the next tax bracket,
(23:31):
so it's not taxable to the beneficiary, but it does
follow the same ten year window where it has to
be taken out of the account.
Speaker 1 (23:41):
Yeah, that's the thing right there. That's another key change
that has happened. You know when you receive a non
spouse when you're a non spouse beneficiary of an IRA,
it used to be you could stretch it from now
until the end of time. It's no longer the case.
Now you have to have that money out over a
ten year period of time. You got to take distributions
(24:02):
throughout the years the ten years, but of that money
has to be out at the end of the tenth year.
So for a lot of us, that's going to be
in your prime time. It's going to be when you're
making the most amount of money. And basically what you're
doing is that you're taking a very highly taxable income
(24:24):
asset and you're dumping it on your children and your
loved ones when they're basically in the prime time of
their working years. So need understand this, folks. Critical a
lot of money that you've accumulated ROI is not necessarily.
What's going to happen and we turn on investment, it's
ROI minused all that tax liability. So we're coming back.
(24:47):
I'm Dave Kopek. This is retirement ready. I'm here with
my son, Christopher William all right, I got the bass,
my son's got the drums. People have said to me
(25:10):
over and over again, hey, what happened all the music
that you used to play? Well, we were slapped on
the wrists, say you can't play music anymore, because then
if you play the music, you got to give some
vig to the artists. That's why we got this hip
hop and what we would call what would you call
this money? Very generic. I'm gonna get my own guitar
(25:32):
and sing a little bit in the future. So all right,
we're talking about qualified assets. We're talking about the money
that you have pretexts trillions of dollars, almost seventeen trillion dollars.
It's the retirement savings time bomb. The government has a
plan for you, and I'm using that. That's an ed
(25:53):
Slot quote. It's not mine. It's the book, right. And
the reason why you want to conce or this is
because too many people sit they do nothing, they start
receiving these large distributions, and a lot of times when
that starts happening, there's nothing you can do about it
because it's too late. So, you know, I would say
(26:14):
that probably the biggest mistake that most of you are
making right now as far as accumulating assets is that
you have way too much of your money pretex.
Speaker 3 (26:23):
Yeah, not a lot of people utilize their WROTH option.
I mean, if you have it available in your four
to one K plan or whatever you're contributing to, you
should at least look at it and consider it as
an option. You know, you don't have to completely transition
all the funds to it, but haveing a portion of
your assets set aside for WROTH is very beneficial in
(26:44):
the long run. It just gives you an after tax
bucket of money that you can pull from in retirement
and not have to worry about paying the tax on it.
And WROTH dollars are not susceptible to rmds. They do
not You're not going to have a required distribution on
any WROTH dollars.
Speaker 1 (27:03):
So what's great about it is that ROTH is tax free,
tax free, tax free. What do you mean by that?
It's tax free to you as long as you're holding
it for five years, it's tax free to your spouse,
and it's tax free to your non spouse beneficiaries, whoever
they may be. Yes, the third the non spouse beneficiaries
are going to have to have it paid out over
(27:25):
ten years. But who cares. Tax free is tax free.
They're still going to be able to get the growth
if they want, where they can reposition the wealth and
basically allocate it the way that they want. Here's the key, though, folks,
is that you need to understand is that iras. As
much as you hear this literature and this messaging, and
(27:46):
you know, I'm not saying that they're wrong, they're just not.
I don't think you'd give you one hundred percent clarity.
You need to understand, depending on the state that you
live in and the size of your iras four oh
one K four h three B New York State deferred compensation,
if you are not planning how to take distributions off
(28:07):
of those assets, you're basically doing yourself at the service,
because depending on where you will reside will ultimately mean
what happens to those monies. If you have a health
of that.
Speaker 2 (28:20):
Yeah, and we just touched on this.
Speaker 3 (28:21):
You know, you really should figure out where you're going
to be located in retirement, in which county you're going
to be in, and specifically the state. So that's huge.
That's a huge part of the planning process. And then
also planning around what you're going to do with the
money in retirement is huge. We see a lot of
folks come in and they don't and they have these
(28:42):
large IRA accounts and they don't necessarily know how they
want it structured or what they're going to do in
retirement now, So planning at least a few years out
and understanding what your goals are within retirement, whether you're
going to travel, whether you're going to you know, just
spend time with the family and the grandkids and leave
(29:02):
it more as a legacy asset. You know, you kind
of want to plan around these things and make sure
you know that your money is structured the way that
you're it's going to reflect the lifestyle that you want
to have within retirement as well.
Speaker 1 (29:16):
Yeah, and you know that's absolutely but here this is
the thing that I'm trying to drive home for people
to understand the difference. What is the difference because you
hear people say I want to do a wroth iray
or I want to you know, I got wroth I
got a lot of wroth money. The difference is is
that how irays traditional versus wroth irays different. The first
(29:36):
is and the most critical one, right, especially if you
don't have long term care. You know, it's the middle
you know, middle class that really gets kicked in the
teeth with this. As far as medicaid planning, the payout status,
Medicaid rules often exempt traditional irays from being counted as
(29:56):
an asset as long as the owners taking distributions periodic payments. Okay,
the question is do they does the county do rmds
based off the uniform lifetimetable or are they doing distributions
based on life expectancy? Critical that you understand that the
second thing is wroth irays have no rmds, right, They
(30:22):
do not have protection because they don't have a payout status. So,
because a wroth ray is not in a payout status,
the Tolan balance of the account is considered accountable asset.
So if your assets succeed your state's medicaid limit, you
may be required to liquidate the wroth ira and spend
(30:42):
it down in order to pay for your expenses that
are being paid by the county.
Speaker 3 (30:50):
Critical So in that scenario, it would be less advantageous
to have a roth.
Speaker 1 (30:56):
At And I'm going to go through what you should do. Okay,
I'm going to tell you what you should do. So
get your pencil out, pull the car over right, stop
and get a soda, because I'm gonna go through a
strategy that I've used for years. We just did it
with a husband and wife. So if if I do
(31:18):
a let's just do I'll ask you some basic questions.
If I do a wroth conversion and I take ten
thousand dollars out of my wroth, out of my traditional iray,
and I put it into my wrath, what do I
have to do. I got to pay the tax and
then I got ten thousand dollars sitting in a wroth
(31:38):
right now. If I use life insurance, survivorship, life insurance,
second to die insurance, whatever it may be, even an
individual policy, I'll use the couple that we're just doing
this with, with a couple down in the southern Tier,
they're taking thirty six thousand dollars out of their iras,
(31:59):
out his sum out of hers and they're basically getting
tactical that thirty six thousand dollars that they're going to
pay into the insurance, which is held inside an islet,
the Irrevocable Life Insurance Trust, will create one point five
million dollars of guaranteed tax free benefit once they both
(32:22):
pass away.
Speaker 2 (32:24):
Yeah.
Speaker 3 (32:24):
Yeah, we do a lot of work with those, or
at least talk about it with folks, because they have
a lot of pre tax assets and they're not going
to utilize you know, maybe income like we were saying earlier,
strong social security, They have a pension, they live with,
you know, a pretty modest lifestyle that that can be
(32:45):
an avenue that we always look at is can we
fund tax preference assets as an inheritance to your beneficiaries
through the use of distributions off your IRA account that will.
Speaker 1 (32:58):
Be tax free, be held in a trust you've protected
from creditors and predators evil son and laws and daughter
in laws and medicaid spend down because the trust owns
the asset, it's not owned by you individually. Right, critical
that you understand this. Okay, Now, if I do a conversion,
you die in the first year, right, thirty six thousand
(33:21):
dollars in a traditional right, what do I do? I
end up? I end up with thirty six thousand dollars
in an IRA. If I do the thing that I
just talked about, I pass away prematurely the thirty six
thousand dollars. What does my errors get, Well, they get
one point five million dollars tax free. So the velocity
(33:43):
on the money is huge, and it happens day one
dollar one. Sometimes people think that, you know, we've got
a magic wand now it's all based off of actuary
assumptions and statistics by the insurance company. So understand that
there's different options and different oppert tunities for you. It's
just a question, right, do you have long term care insurance?
(34:06):
Do you know the Medicaid rules where you're gonna live?
Are you looking to protect the asset once you actually
do the conversion to a ROTH, and does it make
sense for you to do the ROTH conversion or look
at an alternative strategy such as a legacy using life
insurance that will guarantee the benefit and also guarantee a
(34:28):
tax free solution just like the ROTH.
Speaker 3 (34:32):
Yeah, And how we do this is we're not saying,
you know, we're gonna take a huge chunk of this
IRA out to where it's being spent down. It's usually
so if we typically say take a five percent withdrawal
rate off the account.
Speaker 1 (34:46):
Or carve off a chunk of it.
Speaker 3 (34:47):
If yeah, if that's a million dollar account, for example,
we're saying, you know, you should be able to consistently
take fifty thousand dollars a year off this account to
supplement your income in retirement with social security, YadA YadA,
and if you don't need the full five percent. So
say you have a strong pension and social social security
along with a million dollar IRA, and you're saying, well, geez,
(35:10):
I don't need another fifty thousand dollars off this every year.
Well that's when we would look at and say, okay,
if we took two to three percent of this money,
the money you don't need, took thirty thousand dollars a
year paid into this life insurance policy, we can generate you,
like you were saying, somewhere from one million to one
point five million, and attacks preference death benefit that has
(35:31):
no ten year spend down and it's not taxable to
your beneficiaries.
Speaker 1 (35:35):
Right. I want to overemphasize we're not attorneys. Okay, So
you know, we work with a lot of attorneys in
the capital disagreetion throughout the country, depending on where our
clients are. It is critical, it is critical that you
work with a I'm gonna say this, I'm going to
overemphasize this, a qualified elder law attorney, not an attorney
(35:57):
that does closings, that goes to core, that does litigation.
You need someone that can advise you that understands qualified
elder law, such as a loop Piro in his firm.
That's all they do, right, They work in this arena,
they know it inside and out. They know how to
protect your assets from Medicaid. You want to be in
(36:19):
a position that all this hard earned money that you've
worked for for so long goes to where you want
it to go. So I'm not going to beat the
horn too much. I'm not going to blow it and say,
you know, this is something that you should do. I'm
just saying is that these are options, options that are
available to you. I've seen too many people that have delayed,
(36:40):
sat on the fence. Now they don't do anything. Now
they're in a situation, they need care, they need assistance.
Most of their moneys in iras and basically what I
can say to if folks they're in deep, you know
what they're in deep? You know what. So right, we're
going to take a break here, we're gonna come back.
We're gonna talk about this a little more detail. If
(37:01):
you have any questions, we're live in the studio one
eight hundred talk WGY. That's one eight hundred eight two
five fifty nine forty nine, one eight hundred talk WGY.
This is the retirement ready shore.
Speaker 4 (37:26):
Time flies and retirement will be here before you know it.
Are you ready? Don't wait until it's too weight to
get your plan in place. Dave Kopek and the team
at Retirement Planning Group are helping people just like you
take control of their financial future right now. Call eight
eight eight five eight zero nineteen nineteen today or go
to rpgretire dot com to schedule your consultation. Retirement won't wait.
(37:51):
Why should you.
Speaker 1 (37:53):
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 into monthly income
that will last a lifetime. At the Retirement Planning Group,
we build customized income distribution plans so you can retire
(38:14):
with confidence, retire smart, live well. Call eight eight eight
five eight zero nine one nine for your complementary consultation.
Speaker 5 (38:23):
When US Navy Chief Petty Officer Michael Thomas Ernst was
killed in the line of duty, Tunnel to Towers provided
his wife and children with a mortgage free home. Since
Tunnel to Towers was founded in the aftermath of nine
to eleven, the Ernst family is one of many the
foundation has helped, but many more heroes and their families
are still in need. Together, we can say thank you
(38:44):
by showing them our support. Now donate eleven dollars a
month to Tunnel to Towers at T two t dot org.
That's t the number two T dot org.
Speaker 1 (38:53):
We are living through the greatest wealth transfer in the
history of mankind. Trillions of dollars of wealth will change
hands from one generation into 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, take action. The future
(39:15):
favors those that are prepared. Call eighty eight five eats
zero one nine nine. That's eighty eight five eats zero
one nine one.
Speaker 2 (39:23):
Nine portions of the following program or be recorded.
Speaker 1 (39:31):
All right, we are back. We have a couple of
phone callers, so we're gonna go to them. Let's go
to Sue. Are you Sue?
Speaker 7 (39:41):
I'm doing okay. I have a question in regard to
doing trust just ma'am. I want to know if doing
a trust to protect your homes. If you say you
gave it, put the trust in your son's name and
(40:01):
he get sued any time, are you protect? Is he protected?
Is the property protected? Or is that liable to the laws?
Are they able to attach?
Speaker 1 (40:15):
No, well, you don't want to give it to your son.
You want to give it to the trust. You want
to give the asset to the trust. You're the donor, sure,
and then once something happens to you, you know, once
you pass away, then the assets are owned by the trust.
And depending on who is the beneficiar is, whether it's
your son or your daughter or your nieces and nephews,
then it would be liquidated and the money would be
(40:36):
you know, you know, distributed out to your son and
loved ones.
Speaker 7 (40:43):
Now, is there a better way of doing it? Making
somebody's telling me you could do it set up a
shell a shell business, and then the trust is totally protected.
Do you know anything about that?
Speaker 1 (40:57):
I know everything about it. This is all I've been
doing now for like forty three, forty four years. So
what I would say to you is this, don't sit
down with the guy at the water cooler or somebody
that's got all these great ideas. You need to come
in and have a chat with either us or a
confident elder law attorney, and we will tell you what
you should do based off of the conversation that we have.
(41:18):
You know, we don't do any business in the first meeting.
We just have a conversation. We have a chat. It's
you know, grant us on us. You might not like us,
we might not like you, but it gives us an
opportunity to have a conversation. But you need to talk
to somebody because I think you're getting mixed signals.
Speaker 7 (41:35):
Okay, sounds great. Thank you have a great weekend.
Speaker 2 (41:38):
You too, many good bliss You agree? Yeah, shell company.
I don't. I don't know much about shell companies.
Speaker 1 (41:46):
Well, there's LLC, Shell corporations, there's trust, there's revocable, irrevocable.
You don't want to gift the house to the kid
because then you're giving giving the cost basis to the kid.
You know, that's you know the thing is well, I think.
Speaker 3 (41:59):
She was to hity on if if the trust was
in her son's name, is the house protected if someone
sues him.
Speaker 1 (42:06):
Well, the trust wouldn't be in the Sun's name. The
asset would be owned by the trust, and then the
Sun would be a beneficiary. Right, That's how it works, right,
that's the mechanics of it. So let's go to Mark
from Troy.
Speaker 8 (42:19):
Hi, Mark, Hello, how are you doing today?
Speaker 1 (42:22):
I'm doing absolutely fantastic. Look at it out there, Sonny
warm beautiful.
Speaker 8 (42:30):
I have a question for you. Not on SSD, I'm
being forced onto medicare, but I'm also going to be
getting a.
Speaker 1 (42:38):
No, you're you're being forced on it. You're not being
forced on Medicare. You're being forced on Medicaid, Medicaid.
Speaker 8 (42:46):
I'm sorry, And I also will be getting a settlement
from an insurance. Does that affect medicaid if I put
it into a trust.
Speaker 1 (42:56):
Yes, you need to talk to Loupiro. You need to
speak to a copy it does you need. You need
to sit down with lou He'll give you a free
consultation somebody from his team. There's like twenty attorneys with
his group. But you know, as I just said to
that woman, you need to get competent elder law advice.
(43:18):
He's one of the best. He's one of the best
in the areas. So what I would say to you
is he does a show before us or right after us.
So if you call my office, I can put you
in content. I can put you in contact with him.
Speaker 8 (43:33):
Brother all right, but thank you very much.
Speaker 1 (43:37):
God bless all right. Like I like phone calls, they
always make a little bit more interesting. You got a
question or comment, one talk to me. G y one
eight hundred eight two five fifty ninety nine. You know,
I'll say this and it sounds kind of corny. I
know the last few times I was out in our
Syracuse office, I was talking to some people that listen
(43:59):
to show out there and they're basically saying, you know,
blah blah blah blah blah. And I said, what I
say all the time you need a plan, blah blah
blah blah blah. What do I say all the time
you need a plan? You need a plan. Yeah, you
need a plan. So it's no different. You know, when
you're accumulating assets, it's easy to set aside money and
(44:22):
do pre tax, pre tax, pre tax. I can tell
you a lot of people don't like paying tax. But
the bottom line gets down to as you age, you
want to have some tax preference money. The only way
I know you get tax preference money is money that
you have after tax, after you pay the bills, moneys
that you put into HSA accounts, health savings accounts. But
(44:43):
you have to have a high deductible plan. But that's
not a lot of money today. A high deductible plan
and roth roth four oh one k roth iras, Yeah,
they're to me, that's the trifecta.
Speaker 3 (44:57):
Yeah, I mean the the benefits of pre tax contributions
or that you're deferring the tax so you're putting in
more money into your plan. So if you want to
get your your four to one K to grow faster,
pre tax makes more sense because you're not taking you know,
twenty percent hit upfront on federal taxes or whatever tax
bracket you're in. You're not paying the tax upfront and
(45:18):
then investing the money, so that money will will grow
faster than WROTH contributions. But the benefits of WROTH in
after tax money is always on the back end, so
you're going to take tax free distributions from it, and
then you're not susceptible to r and ds, and when
your beneficiaries inherit it, it's not taxable to them as well.
Speaker 1 (45:42):
You're one hundred percent right on that. So the bottom
line gets down to say, you know what, folks, Uh,
it's easy to do nothing. It's hard sometimes to motivate
and do something. But I can tell you right now,
for a lot of us, the greatest risk, especially if
we have accumulated enough money in our life lifetime, because
we hear almost every single week with appointments that we
(46:04):
have with either current retirees or people that are going
into retirement, the cost of healthcare. It's an astronomical figure
as far as what you can expect to pay during
your pre and post retirement years. And personally, I think
it's only going to get worse, it's not going to
get better. There's no national healthcare.
Speaker 2 (46:25):
Yeah.
Speaker 3 (46:26):
Yeah, I mean that's a huge, huge part of every
conversation we have with I think everybody is the estate
planning side of things, and then the next is up
is healthcare if they want to retire early, so sixty two,
sixty fifty eight, fifty five, whatever it may be, which
we've seen a lot more of people trying to retire earlier,
(46:47):
at least considering it before the age sixty five. They're
looking for ideas on how to bridge now to sixty
five in what would make sense as far as healthcare expenses, sure,
because it's they're extreme.
Speaker 1 (47:04):
Well, I would say that probably nine out of ten
people one of the biggest reasons they work or we're
part time to age sixty five is to you know,
they want to become Medicare, not Medicaid, Medicare eligible. But
here are some dates that dates. These are some ages
you need to understand. Okay, this is my last bullet point,
(47:26):
and then I'm gonna let my son basically go over
or swing for cure golf outing fifty five. You can
get money out of your four O one k without
any penalty. It's not fifty nine and a half. As
long as you keep the money in your four oh
one K, you can take the money out at age
fifty five fifty nine and a half. That's the magical age.
You can take money out of your qualified without any penalty.
(47:47):
A lot of times we tell individuals to do an
in service distribution, get out of your four O one
K and start building your buckets of money. Sixty widow
benefits or widower sixty two is the first age you
can start getting Social Security. Sixty five is Medicare, sixty
six or sixty seven is FRA for most of us
now full retirement age. And of course the magical age
(48:08):
seventy seven to zero is the age for people to
get the maximum Social Security benefit. So, you know, we
talked about a lot of stuff today. Just remember IRA
four O one K four three B pre tax money
is very, very complicated. We offer a complementary consultation. Caller
(48:28):
Office would be more than happy to sit down with
you and see if we can build out a plan
for you. So I'm gonna have my son go over
the golf outing swing for a cure and hopefully God
bless you you can participate. It's a great day. Yeah.
Speaker 3 (48:41):
So once again it's the fifteenth annual Swing for a
Cure golf tournament where we are hosting it at Fairways
of Half Moon and the charities that were benefiting this
year is the American Cancer Society and then tunnels to
Tower Foundation. So it's a great event. If you have
any question or anything on it, call the office and
(49:01):
speak with Jimmy. He's kind of hosting everything and putting
all the pieces together for this. He The golf tournament
includes first and second team prizes, a putting contest, a
longest drive for male and female, Closest to the Pin
for mal and female, and then a ton of raffle Prizeshe.
Speaker 1 (49:21):
Huge amount of prizes and gifts.
Speaker 3 (49:23):
Yeah, he always runs around and gets all this from
our sponsors and people who are sponsoring either holes at
the event or strate strategic partners through yup work and everything.
So it's always great. It's always a good time. And
if you do, you know, you don't have to play
in the tournament. You can just donate to either of
the foundations. Just give the office a call, speak with Jimmy.
(49:44):
He'll give you all of the information on where to
make the check out to or wait to mark the
payments out to or court.
Speaker 1 (49:51):
They can come just to the luncheon too, or.
Speaker 3 (49:53):
Yeah, or you can just come to the luncheon and
try and win yourself some raffle prizes.
Speaker 1 (49:57):
So God bless everybody, got blessed the marri God bless
Charlie Kirk and his family and his wife. A horrific
situation there, the girl down in North Carolina. Just there's
been some horrific things going on in this world. Say
some prayers. We all need some prayers for those people.
And again we'll be back next week for another retirement Ready.
(50:20):
I'm Dave Kopek, president of the Retirement Planning Group. We
have six locations now in New York State, New One's
and Hudson. If we could be of assistance, give us
a call. You're more than happy to sit down with you.
Speaker 9 (50:44):
The information our services discussed on this show was for
informational purposes only and is not 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.
Speaker 5 (51:01):
Double d G y A. M.
Speaker 2 (51:02):
Skin Act, Tody double d g y f M Albaning
Speaker 1 (51:05):
Live on the free iHeartRadio on news Radio one O
three one on eight ten w G y
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