April 15, 2025 • 15 mins
Does B&H Wealth Strategies Provide Tax Planning Or Advice?
Taxes are inevitable, but paying more than necessary isn't. In this illuminating discussion, Jeff Bingham of B&H Wealth Strategies breaks down practical strategies that can help you keep more of what you earn while staying fully compliant with tax regulations.
We explore the powerful impact of retirement account contributions on your current tax situation. For 2024, individuals can contribute $8,000 to IRAs (with additional catch-up provisions for those over 50), potentially reducing taxable income by thousands. When coupled with employer-sponsored 401(k) plans that offer matching contributions—essentially free money—these strategies create both immediate tax relief and long-term wealth accumulation.
Whether you're currently working or approaching retirement, these tax strategies can significantly impact your financial trajectory. Schedule your free 20-minute consultation today by phone or visit online and discover how personalized tax planning can transform your financial future.
To learn more about B&H Wealth Strategies visit:
https://www.BHRetire.com
B&H Wealth Strategies
423- 247-1152
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Welcome to the Four Seasons Podcast brought to you
by B&H Wealth Strategies,serving Northeast Tennessee and
Southwest Virginia since 1966.
Here we guide you through theever-changing seasons of your
financial journey, offeringinsights to help you grow,
protect and enjoy your wealth.
Ready to turn your financialdreams into reality, dare to
(00:27):
dream.
And now here's your host.
President of B&H WealthStrategies, jeff Bingham.
Speaker 2 (00:46):
Taxes, the one thing we all love to hate.
But can smart planning turn taxseason from dreadful to doable?
Let's break down how B&H WealthStrategies helps clients
navigate tax strategies to keepmore of what they earn.
Because who doesn't want to payless and save more?
Speaker 3 (01:03):
Welcome back everyone , skip Monty here co-host slash
producer back in the studio withJeff Bingham Jeff how's it
going?
Speaker 2 (01:14):
It's going great.
How are you doing this morning,skip?
I'm doing just fine.
Doing just fine, although it istax season and I regret to say
that I am just now starting towork on that, so I'm sure
there's a lot of folks like me.
So big question on the top ofmy mind today is does B&H Wealth
Strategies provide tax planningor advice?
Speaker 3 (01:31):
I need it, as my dad used to always say, without
question.
The caveat to this is that I amnot a tax preparer, I'm not a
CPA, but we're wealth advisorsand in the financial planning
process, obviously taxes are akey component to that.
So I just want to lay that outthere to everybody.
So I'm not an expert in taxpreparation and filing.
(01:55):
What we try to make sure thatwe do is to minimize taxes as
much as we can.
When you take all of yourdocuments to your CPA or tax
preparer, or if you're doingthem yourself with TurboTax or
however you might be doing thattoday that you are minimizing,
you're already prepared for that, because when you do your taxes
(02:15):
, it's really just a scoreboard.
The tax preparer, the CPA, isreally a scorekeeper.
What we want to do is make surethat we are minimizing your
taxes so you can maximize yoursavings, your earnings and your
income.
Speaker 2 (02:29):
Very good.
Well, this is a question.
I've got two dogs.
Have any clients ever asked ifthey could deduct a dog as a
dependent?
That was a suggestion of mywife.
Speaker 3 (02:43):
Well, in some instances the expense that we
utilize and the raising of ourpets and our dogs, let's say you
would think you might be ableto, because they certainly are
dependent, but I don't know thatthat would fly with the IRS.
I'd be very careful about that.
I do appreciate your question.
People try a lot of reallycreative things like that.
I don't think that would passan audit, but who knows?
(03:04):
It's a strange world we live in.
Speaker 2 (03:06):
Yes, sir.
What specific tax planningservices does B&A Wealth
Strategies offer?
Speaker 3 (03:12):
Well, I think that's a good question and it's a
pretty big and broad questionright there.
So I'll try to paint a bit witha broad brush as well on these
lines, some of the things thatyou'll see people doing.
As a matter of fact, just rightbefore I went on air here, I
had a client that was in hereand they were making their
individual retirement accountcontributions.
(03:33):
You can make your 2024 IRAcontributions all the way up
till tax filing time April 15th,as we move forward to that, and
that's certainly one way to doit.
You can put $8,000, I think isthe number for 2024, depending
on what your age is.
There's a catch-up provision inthere.
It's less than that.
If you're under 50, you've gota thousand dollar catch-up
provision.
(03:53):
That's in there and I won't gointo the depth on that.
But when you make thesecontributions your IRA
contributions such as I justdescribed right there you're
reducing your taxable income bythe amount that you put in there
.
So if a husband and a wife youknow put $16,000, let's say,
into his and her IRA account,then you reduced your taxable
(04:14):
income by $16,000.
And, you know, if you do thearithmetic on that and you
assume you're at a 20% effectivetax rate, you reduce your
income tax liability by $3,200.
That's just real simple math.
So don't everybody kind of takethat and run with that, as
that's how it would work for thefolks that are out there
listening.
(04:34):
That's just kind of again abroad stroke of looking at that.
But that's one way to minimizeincome taxes.
Another way to do it make surethat you're taking advantage of
your 401k plans at work.
If you're still working, or a401k plan or some equivalent
thereof to where you can put inpre-tax dollars, you may get
some match from your employer.
If you're lucky enough to dothat, you certainly want to
(04:55):
contribute to those plans, notjust for the tax advantage of
doing that, which is certainly agood thing, but also if your
employer is matching some ofthat.
That's free money in a sense,right that's, if they're
matching.
You know if they, if you put in5% of your income, they match
dollar for dollar at 5%, that's100% return on that 5% that
you're putting in there, right?
(05:15):
So you want to take advantageof those things and that's kind
of tax planning and efficiencyof what your workplace is
offering you right there.
So those are some ways toreduce your income tax while
working, you can certainly makecharitable contributions.
I mean, there's a lot of thingsthere.
But the other thing with yourinvestments that you want to
look at, I think you want to do,is that you can use tax
(05:37):
efficient investing with yourafter-tax dollars that you're
putting in.
There are deferred investmenttype of annuity contracts that
are out there and annuities canhave some negative connotation
from kind of the popular pressthat's out there, but they're
just tools like anything else inthe investment world.
But you can grow your money,your earnings on your money can
grow on a tax deferred basis.
(05:59):
And there's other ways to do it.
You can invest in funds andETFs that are out there with
your extra tax, or individualstocks.
Even those have tax advantagesbecause as those gains go up, if
you're investing in a growthmutual fund or a growth ETF or
an individual stock or a groupof individual stocks, the growth
on those stocks is not subjectto income tax.
(06:20):
You don't get a 1099 on those.
You're only subject to incometax on those types of things was
when you would sell them theywere subject to in most cases
not all depending on the lengthof time that you own them
capital gains tax, not toregular income and capital gains
taxation is at a lower ratethan regular income is.
So that was a bit of a weedy,probably kind of wandering down
(06:43):
that path right there.
So apologies to the listeningaudience out there for that.
What we really want to do, likeI said, is when it goes back to
the first conversations thatwe've had.
We want to talk to folks andlisten.
But where are you, where youwant to go, how you want to get
there?
And everybody wants to reducetheir income tax liability.
Because you said everybody hatesit.
You're looking, you know payingincome tax.
(07:05):
You know I think there's asaying out there.
It's that you know, I'm verypatriotic and I love this
country, but I can be just aspatriotic and red, white and
blue by paying half the incometax liability that I have to pay
.
So you know we want to be verycareful in ways we minimize, but
the code is very complex andconvoluted.
That's out there.
We want to use everything thatis within our legal rights to
(07:30):
use to minimize those incometaxes.
When you move into retirement,we can talk a little bit about
that too.
How do you minimize income taxthere?
It's not how much money youmake, it's how much money you
get to keep.
Speaker 2 (07:43):
Amen, brother.
Well, here's a question for you.
I had a friend who was tellingme who's really been loading up
his 401k and he has a retirementaccount and ran into some
financial difficulties and endedup doing some disbursements
prior to he's 60.
So I know there's big issueswith that, including penalties
(08:06):
and that sort of thing.
Can you talk about that?
Speaker 3 (08:10):
Yeah, now you mentioned that your friend was
60 years old, so that's key toit, because the penalties that
you're speaking of right there,the tax penalties, are
associated with pre 59 and it'skind of the magic age there.
If you take money out ofretirement plans, whether it be
401k plans or an individualretirement account there are
(08:31):
some exceptions to this, but Iwon't talk about those yet.
If you take the money outbefore reaching age 59 and a
half, you're not only going topay income tax on every dollar
that comes out of it becauseagain, you put in pre-tax
dollars, the money's grown on atax deferred or a tax free basis
.
So every dollar that comes outof us can be subject to income
tax, but pre-59 and a half issubject to a 10 percent tax
(08:55):
penalty.
So if you think about what thatamounts to on a pre-59 and a
half, let's say you take a$25,000 disbursement out of that
, as you said right there,because of whatever
circumstances have come up, thatappears to be the only place
where you have enough funds tokind of take care of this
emergency that has arisen rightthere.
(09:15):
So if you take $25,000 out andyou're under 59 and a half,
right off the top.
You're going to pay a $2,500tax penalty because that's the
10% depending on your otherincome, because you're going to
stack that $25,000 distributionon top of your other income for
the year yours and your wife'sand let's say that puts you in
an effective tax rate of 20%.
(09:35):
There's not a 20% bracket.
We'll talk about effectiverates if we want to here in a
moment.
That's your effective rate.
So you're going to pay.
If we want to here in a moment,that's your effective rate.
So you're going to pay 20% of$25,000, that's $5,000 plus the
tax penalty.
So in effect, you pay a 30% tax, $7,500 on that $25,000.
So you've turned it into$17,500.
(09:56):
I did my arithmetic right there.
I believe I did the $17,500 outof $25,000 that you needed to
get.
That's an expensive place totake care of emergencies.
The clients have had to do itover the years.
No question, like your friendthat you're talking about right
there, as he was loading up that401k plan.
If you're proactive on that,what if he were talking to
(10:17):
someone like me?
It would be like okay, well,let's make sure that we load
this up, put as much money asyou can in there, take advantage
of the tax deduction that youget, reducing your taxable
income, letting the money growon a tax deferred or tax free
basis as it grows, takingadvantage again of the employer
match.
But let's also make sure thatwe've got some emergency
reserves, cash in the banksavings, money markets that kind
(10:40):
of thing, or home equity loans.
I mean, there's a lot ofdifferent ways to look at this.
What might be available foremergency reserves.
But, like I said, sometimes it'sthe only place you can take,
but it is an expensive place totake money out of.
But in some cases it's the onlyplace that you've got to do it.
But you've got to understandwhat the ramifications of doing
(11:01):
that are.
You've got to take care of thecurrent you, but it's damaging
the future.
You right, it's damaging that,your future income, and so you
just got to calculate all thosethings out.
What you try to do there is,again, be proactive in the
planning process of sitting downwith myself and going okay,
here's what we're doing in the401k plan, what are we doing to
take care that we have ouremergency reserves, other
(11:22):
savings, college funds, dah, dah, dah all the things that can go
into an overall comprehensivefinancial plan.
So long answer to that question,but it's there it can be done.
Oftentimes it's the only placewhere you have money but, like
when we have clients that needthat type of emergency or
whatever comes up, it could bean opportunity, it could be an
(11:44):
emergency, it could be a desire,it could be a want right.
All those things kind of comeinto play when that occurs is
that we look at everything.
We look at the 401k plan, welook at the assets we have here.
We look at the money that theyhave in the bank.
Do they have a lot of equity intheir home?
And then you try to lay thatout and determine which is the
most efficient way to get thatmoney that we're looking for
(12:07):
from your resources that youhave available to you, to take
care of it today, but also tomake sure we're being good to
the future you and not damagingyour future retirement plan, so
you can be successful today andtomorrow.
Speaker 2 (12:21):
Very good to know.
I'm going to make sure myfriend gets to see this episode,
although it's a little too latefor him, but maybe we can help
some other folks out that arethinking about doing the same
thing.
Speaker 3 (12:30):
Thinking about your friend.
And another thing that I didn'tpoint out here is in many 401k
plans, as you're describingright there, you can borrow
oftentimes from a 401k plan, soyou can borrow from your own
funds and avoid the taxes andthe tax penalty, but you've got
to pay yourself back and soagain, you've gotta be careful
and understand that.
So that's a very broad strokeof that.
(12:52):
But that's another way to do itwhere you don't have to incur
the tax liability and perhapsthe tax penalty, depending on
what your age is.
But again you've got to makesure that you're going to get
that loan paid back before youretire from that employer,
because that has its own set ofproblems that I won't
necessarily go into during thisepisode.
(13:14):
That's a little more in depth,but it can create some problems,
but it also might be able tosolve a problem in the short run
, as long as we know we've gotto deal with something over the
long pull.
Speaker 2 (13:24):
Very good, very good to know.
Well, jeff, I appreciate yourtime today.
Taxes is a huge subject foreverybody and maybe we can
address some other issues withtaxes in another episode.
Speaker 3 (13:39):
Yeah, I think that'd be good, because there certainly
are some other things that areout there and which we didn't
get into, which I would like totalk about at some future time,
and I think the listeningaudience will probably
appreciate.
This is that how do you havethe most efficient and effective
income stream during retirement, protecting that so you pay as
little tax as you can duringretirement when it really
becomes very, very critical, andyou've got social security and
(14:00):
401k plans and pensions andsavings and all those kinds of
things that come into the mixright there, how do you utilize
that at its most efficient andlong-term success for each
individual and that's differentfor each person.
Speaker 2 (14:14):
Sounds like about three episodes.
Actually it's a lot.
Well, jeff's different for eachperson.
Sounds like about threeepisodes actually it's a lot.
Speaker 3 (14:23):
Well, jeff, appreciate your time today and
we'll see you in the next one,all right.
Speaker 1 (14:30):
Thanks everybody.
Have a great weekend.
Hey, you too.
Thanks for tuning into the FourSeasons Podcast brought to you
by B&H Wealth Strategies, whereyour financial success is our
priority.
Schedule your free 20-minuteconsultation today by calling
423-247-1152 or by visitingbhretirecom.
Take the first step towardmaking your financial dreams
(14:52):
come true.
Until next time, remember everyseason is the right season to
plan for your future.
Securities and registeredinvestment advisory services
offered through Silver OakSecurities Inc Member FINRA,
sipc.
B&h Wealth Strategies andSilver Oak Securities Inc are
not affiliated.
Welcome to the Four Seasons Podcast brought to you
by B&H Wealth Strategies,serving Northeast Tennessee and
Southwest Virginia since 1966.
Here we guide you through theever-changing seasons of your
financial journey, offeringinsights to help you grow,
protect and enjoy your wealth.
Ready to turn your financialdreams into reality, dare to
(00:27):
dream.
And now here's your host.
President of B&H WealthStrategies, jeff Bingham.
Speaker 2 (00:46):
Taxes, the one thing we all love to hate.
But can smart planning turn taxseason from dreadful to doable?
Let's break down how B&H WealthStrategies helps clients
navigate tax strategies to keepmore of what they earn.
Because who doesn't want to payless and save more?
Speaker 3 (01:03):
Welcome back everyone , skip Monty here co-host slash
producer back in the studio withJeff Bingham Jeff how's it
going?
Speaker 2 (01:14):
It's going great.
How are you doing this morning,skip?
I'm doing just fine.
Doing just fine, although it istax season and I regret to say
that I am just now starting towork on that, so I'm sure
there's a lot of folks like me.
So big question on the top ofmy mind today is does B&H Wealth
Strategies provide tax planningor advice?
Speaker 3 (01:31):
I need it, as my dad used to always say, without
question.
The caveat to this is that I amnot a tax preparer, I'm not a
CPA, but we're wealth advisorsand in the financial planning
process, obviously taxes are akey component to that.
So I just want to lay that outthere to everybody.
So I'm not an expert in taxpreparation and filing.
(01:55):
What we try to make sure thatwe do is to minimize taxes as
much as we can.
When you take all of yourdocuments to your CPA or tax
preparer, or if you're doingthem yourself with TurboTax or
however you might be doing thattoday that you are minimizing,
you're already prepared for that, because when you do your taxes
(02:15):
, it's really just a scoreboard.
The tax preparer, the CPA, isreally a scorekeeper.
What we want to do is make surethat we are minimizing your
taxes so you can maximize yoursavings, your earnings and your
income.
Speaker 2 (02:29):
Very good.
Well, this is a question.
I've got two dogs.
Have any clients ever asked ifthey could deduct a dog as a
dependent?
That was a suggestion of mywife.
Speaker 3 (02:43):
Well, in some instances the expense that we
utilize and the raising of ourpets and our dogs, let's say you
would think you might be ableto, because they certainly are
dependent, but I don't know thatthat would fly with the IRS.
I'd be very careful about that.
I do appreciate your question.
People try a lot of reallycreative things like that.
I don't think that would passan audit, but who knows?
(03:04):
It's a strange world we live in.
Speaker 2 (03:06):
Yes, sir.
What specific tax planningservices does B&A Wealth
Strategies offer?
Speaker 3 (03:12):
Well, I think that's a good question and it's a
pretty big and broad questionright there.
So I'll try to paint a bit witha broad brush as well on these
lines, some of the things thatyou'll see people doing.
As a matter of fact, just rightbefore I went on air here, I
had a client that was in hereand they were making their
individual retirement accountcontributions.
(03:33):
You can make your 2024 IRAcontributions all the way up
till tax filing time April 15th,as we move forward to that, and
that's certainly one way to doit.
You can put $8,000, I think isthe number for 2024, depending
on what your age is.
There's a catch-up provision inthere.
It's less than that.
If you're under 50, you've gota thousand dollar catch-up
provision.
(03:53):
That's in there and I won't gointo the depth on that.
But when you make thesecontributions your IRA
contributions such as I justdescribed right there you're
reducing your taxable income bythe amount that you put in there
.
So if a husband and a wife youknow put $16,000, let's say,
into his and her IRA account,then you reduced your taxable
(04:14):
income by $16,000.
And, you know, if you do thearithmetic on that and you
assume you're at a 20% effectivetax rate, you reduce your
income tax liability by $3,200.
That's just real simple math.
So don't everybody kind of takethat and run with that, as
that's how it would work for thefolks that are out there
listening.
(04:34):
That's just kind of again abroad stroke of looking at that.
But that's one way to minimizeincome taxes.
Another way to do it make surethat you're taking advantage of
your 401k plans at work.
If you're still working, or a401k plan or some equivalent
thereof to where you can put inpre-tax dollars, you may get
some match from your employer.
If you're lucky enough to dothat, you certainly want to
(04:55):
contribute to those plans, notjust for the tax advantage of
doing that, which is certainly agood thing, but also if your
employer is matching some ofthat.
That's free money in a sense,right that's, if they're
matching.
You know if they, if you put in5% of your income, they match
dollar for dollar at 5%, that's100% return on that 5% that
you're putting in there, right?
(05:15):
So you want to take advantageof those things and that's kind
of tax planning and efficiencyof what your workplace is
offering you right there.
So those are some ways toreduce your income tax while
working, you can certainly makecharitable contributions.
I mean, there's a lot of thingsthere.
But the other thing with yourinvestments that you want to
look at, I think you want to do,is that you can use tax
(05:37):
efficient investing with yourafter-tax dollars that you're
putting in.
There are deferred investmenttype of annuity contracts that
are out there and annuities canhave some negative connotation
from kind of the popular pressthat's out there, but they're
just tools like anything else inthe investment world.
But you can grow your money,your earnings on your money can
grow on a tax deferred basis.
(05:59):
And there's other ways to do it.
You can invest in funds andETFs that are out there with
your extra tax, or individualstocks.
Even those have tax advantagesbecause as those gains go up, if
you're investing in a growthmutual fund or a growth ETF or
an individual stock or a groupof individual stocks, the growth
on those stocks is not subjectto income tax.
(06:20):
You don't get a 1099 on those.
You're only subject to incometax on those types of things was
when you would sell them theywere subject to in most cases
not all depending on the lengthof time that you own them
capital gains tax, not toregular income and capital gains
taxation is at a lower ratethan regular income is.
So that was a bit of a weedy,probably kind of wandering down
(06:43):
that path right there.
So apologies to the listeningaudience out there for that.
What we really want to do, likeI said, is when it goes back to
the first conversations thatwe've had.
We want to talk to folks andlisten.
But where are you, where youwant to go, how you want to get
there?
And everybody wants to reducetheir income tax liability.
Because you said everybody hatesit.
You're looking, you know payingincome tax.
(07:05):
You know I think there's asaying out there.
It's that you know, I'm verypatriotic and I love this
country, but I can be just aspatriotic and red, white and
blue by paying half the incometax liability that I have to pay
.
So you know we want to be verycareful in ways we minimize, but
the code is very complex andconvoluted.
That's out there.
We want to use everything thatis within our legal rights to
(07:30):
use to minimize those incometaxes.
When you move into retirement,we can talk a little bit about
that too.
How do you minimize income taxthere?
It's not how much money youmake, it's how much money you
get to keep.
Speaker 2 (07:43):
Amen, brother.
Well, here's a question for you.
I had a friend who was tellingme who's really been loading up
his 401k and he has a retirementaccount and ran into some
financial difficulties and endedup doing some disbursements
prior to he's 60.
So I know there's big issueswith that, including penalties
(08:06):
and that sort of thing.
Can you talk about that?
Speaker 3 (08:10):
Yeah, now you mentioned that your friend was
60 years old, so that's key toit, because the penalties that
you're speaking of right there,the tax penalties, are
associated with pre 59 and it'skind of the magic age there.
If you take money out ofretirement plans, whether it be
401k plans or an individualretirement account there are
(08:31):
some exceptions to this, but Iwon't talk about those yet.
If you take the money outbefore reaching age 59 and a
half, you're not only going topay income tax on every dollar
that comes out of it becauseagain, you put in pre-tax
dollars, the money's grown on atax deferred or a tax free basis
.
So every dollar that comes outof us can be subject to income
tax, but pre-59 and a half issubject to a 10 percent tax
(08:55):
penalty.
So if you think about what thatamounts to on a pre-59 and a
half, let's say you take a$25,000 disbursement out of that
, as you said right there,because of whatever
circumstances have come up, thatappears to be the only place
where you have enough funds tokind of take care of this
emergency that has arisen rightthere.
(09:15):
So if you take $25,000 out andyou're under 59 and a half,
right off the top.
You're going to pay a $2,500tax penalty because that's the
10% depending on your otherincome, because you're going to
stack that $25,000 distributionon top of your other income for
the year yours and your wife'sand let's say that puts you in
an effective tax rate of 20%.
(09:35):
There's not a 20% bracket.
We'll talk about effectiverates if we want to here in a
moment.
That's your effective rate.
So you're going to pay.
If we want to here in a moment,that's your effective rate.
So you're going to pay 20% of$25,000, that's $5,000 plus the
tax penalty.
So in effect, you pay a 30% tax, $7,500 on that $25,000.
So you've turned it into$17,500.
(09:56):
I did my arithmetic right there.
I believe I did the $17,500 outof $25,000 that you needed to
get.
That's an expensive place totake care of emergencies.
The clients have had to do itover the years.
No question, like your friendthat you're talking about right
there, as he was loading up that401k plan.
If you're proactive on that,what if he were talking to
(10:17):
someone like me?
It would be like okay, well,let's make sure that we load
this up, put as much money asyou can in there, take advantage
of the tax deduction that youget, reducing your taxable
income, letting the money growon a tax deferred or tax free
basis as it grows, takingadvantage again of the employer
match.
But let's also make sure thatwe've got some emergency
reserves, cash in the banksavings, money markets that kind
(10:40):
of thing, or home equity loans.
I mean, there's a lot ofdifferent ways to look at this.
What might be available foremergency reserves.
But, like I said, sometimes it'sthe only place you can take,
but it is an expensive place totake money out of.
But in some cases it's the onlyplace that you've got to do it.
But you've got to understandwhat the ramifications of doing
(11:01):
that are.
You've got to take care of thecurrent you, but it's damaging
the future.
You right, it's damaging that,your future income, and so you
just got to calculate all thosethings out.
What you try to do there is,again, be proactive in the
planning process of sitting downwith myself and going okay,
here's what we're doing in the401k plan, what are we doing to
take care that we have ouremergency reserves, other
(11:22):
savings, college funds, dah, dah, dah all the things that can go
into an overall comprehensivefinancial plan.
So long answer to that question,but it's there it can be done.
Oftentimes it's the only placewhere you have money but, like
when we have clients that needthat type of emergency or
whatever comes up, it could bean opportunity, it could be an
(11:44):
emergency, it could be a desire,it could be a want right.
All those things kind of comeinto play when that occurs is
that we look at everything.
We look at the 401k plan, welook at the assets we have here.
We look at the money that theyhave in the bank.
Do they have a lot of equity intheir home?
And then you try to lay thatout and determine which is the
most efficient way to get thatmoney that we're looking for
(12:07):
from your resources that youhave available to you, to take
care of it today, but also tomake sure we're being good to
the future you and not damagingyour future retirement plan, so
you can be successful today andtomorrow.
Speaker 2 (12:21):
Very good to know.
I'm going to make sure myfriend gets to see this episode,
although it's a little too latefor him, but maybe we can help
some other folks out that arethinking about doing the same
thing.
Speaker 3 (12:30):
Thinking about your friend.
And another thing that I didn'tpoint out here is in many 401k
plans, as you're describingright there, you can borrow
oftentimes from a 401k plan, soyou can borrow from your own
funds and avoid the taxes andthe tax penalty, but you've got
to pay yourself back and soagain, you've gotta be careful
and understand that.
So that's a very broad strokeof that.
(12:52):
But that's another way to do itwhere you don't have to incur
the tax liability and perhapsthe tax penalty, depending on
what your age is.
But again you've got to makesure that you're going to get
that loan paid back before youretire from that employer,
because that has its own set ofproblems that I won't
necessarily go into during thisepisode.
(13:14):
That's a little more in depth,but it can create some problems,
but it also might be able tosolve a problem in the short run
, as long as we know we've gotto deal with something over the
long pull.
Speaker 2 (13:24):
Very good, very good to know.
Well, jeff, I appreciate yourtime today.
Taxes is a huge subject foreverybody and maybe we can
address some other issues withtaxes in another episode.
Speaker 3 (13:39):
Yeah, I think that'd be good, because there certainly
are some other things that areout there and which we didn't
get into, which I would like totalk about at some future time,
and I think the listeningaudience will probably
appreciate.
This is that how do you havethe most efficient and effective
income stream during retirement, protecting that so you pay as
little tax as you can duringretirement when it really
becomes very, very critical, andyou've got social security and
(14:00):
401k plans and pensions andsavings and all those kinds of
things that come into the mixright there, how do you utilize
that at its most efficient andlong-term success for each
individual and that's differentfor each person.
Speaker 2 (14:14):
Sounds like about three episodes.
Actually it's a lot.
Well, jeff's different for eachperson.
Sounds like about threeepisodes actually it's a lot.
Speaker 3 (14:23):
Well, jeff, appreciate your time today and
we'll see you in the next one,all right.
Speaker 1 (14:30):
Thanks everybody.
Have a great weekend.
Hey, you too.
Thanks for tuning into the FourSeasons Podcast brought to you
by B&H Wealth Strategies, whereyour financial success is our
priority.
Schedule your free 20-minuteconsultation today by calling
423-247-1152 or by visitingbhretirecom.
Take the first step towardmaking your financial dreams
(14:52):
come true.
Until next time, remember everyseason is the right season to
plan for your future.
Securities and registeredinvestment advisory services
offered through Silver OakSecurities Inc Member FINRA,
sipc.
B&h Wealth Strategies andSilver Oak Securities Inc are
not affiliated.
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