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December 2, 2023 43 mins
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(00:00):
Here's what our attorneys make us say. We believe all the information we offer
on this program is factual and upto date. However, we cannot guarantee
its accuracy and you should not thinkof it as a complete analysis of the
subject's discussed. We are also notgiving you an offer to buy or sell
the investments we talk about. Allinvestments involve varying degrees of risk, and
we cannot guarantee any specific investment orstrategy will be suitable or profitable for your
portfolio. Always consult with a qualifiedinvestment, legal, or tax professional before

(00:23):
taking any action. You've worked hardand save for retirement, but remember it's
what you do with that money thatreally matters. How will you ensure that
you ring every nickel out of yourSocial Security benefits? Could you pay fewer
taxes in retirement? And how andwhen will you withdraw money from your IRA

(00:43):
or for a one K Welcome toSecured Retirement Radio with Joe Lucy of Secured
Retirement Financial Jose a certified financial planner, fiduciary and a contributor to The Wall
Street Journal and as nearly twenty fiveyears of helping people like you, this
is where you can count on straightforwardand objective advice on how to make your

(01:06):
money go further in retirement. Andnow here's your host, Joe Lucy.
All right, so this week let'stalk taxes. You know most of us
want to avoid them, well likethe plague, so we spend his little
time possible thinking about him and goabout our day not giving them a second

(01:30):
thought. I get it. Idon't love paying, organizing preparing filing taxes
either, even if I'm using myCPA or accountant. But what I do
love is saving money on taxes,and that starts long before the tax preparation

(01:52):
season. If you love paying lesstaxes too, then it all comes down
to proper tax planning. By thetime we're done here, you might love
spending a little bit more time ontax planning like I do. Because a
good hour focused on tax planning,especially for the taxes in your retirement years,

(02:15):
well that can be one of themost valuable hours you invest all this
year. So welcome to scare TimeRadio. I'm Joe Lucy, certified financial
planner. I have Nate Seller withme. He's our chief investment strategist.
Dylan Mahlberg, a fiduciary advisor,and if you're in orneering retirement, we
have a fantastic show plan for youthis morning. You know, most people

(02:36):
don't realize it, but tax planningis probably the most effective tool in retirement
planning. Spend a couple hours ontax planning and you can save a small
fortune, tens of thousands, evenhundreds of thousands of dollars around iory for
one k withdrawals, social Security benefits, investment income, capital gains, Medicare

(02:57):
premiums, and so forth. Sohigher taxes could be just around the corner.
And here's why Washington has got athirty three trillion dollar debt. Now,
trust me, they need the money, they want your money, and
so taxes are their only source ofincome. They don't sell products, they
take taxes. That's how they generaterevenue. And because these taxes, the

(03:23):
higher rates are just around the corner, might be even more reason for us
to start thinking about taking advantage oftax planning today. So coming up in
our program here, let's share ahandful of simple tax planning strategies that can
help you pay less than taxes onceyou retire or as you're getting ready to

(03:43):
retire. Actually, Yack Nick Natejoke. Good morning morning, Good morning.
Well, and the first thing thatwe want to look at as far
as tax planning is making sure thatyou have a tax official withdrawal strategy.
And if you if you think aboutyour personal balance sheet right now, and
you know you might have the houseis probably in there, and then you
think about these retiresment accounts that youhave and the I rays and the four
to one case likely or one ofthe largest assets that you're going to have,

(04:05):
and especially one of the largest assetsyou're gonna have is you go into
retirement. So naturally, how whenyou are going to withdraw the money from
these accounts is going to have adramatic impact on how much taxes you're going
to pay. And if you lookat the iras, the four one k's
your social Security benefits, investment incould maybe you have a pension. There's
one thing that they all have incommon that there's tax planning opportunity up tax

(04:29):
planning opportunities around every single one ofthem. And the key on tax planning
is to get in front of it, maybe before you retire. And this
small investment, like you said,Joe as we started the show, that
one hour that you spend it ontax planning could be one of the most
valuable hours you investing yourselves all year, right, Nate, Well, that's
right, and I think oftentimes taxplanning is often overlooked by most people at

(04:51):
retirement and it's something delling to yourpoint, that should be done well before
you get into it. And thething about taxes is, if you look
at the current generation of retirees,taxes are going to play a much bigger
role than it has for previous generations. That's because this generation is really the
first to have to fund their ownretirements, you know, their own savings
to for one k's iras. Noteverybody has the pensions. Some very fortunate

(05:14):
people do have these pensions, butmost people fund their own retirements. They
build up these huge nest eggs andthese tax deferred retirement accounts, and then
they have to withdraw and obviously it'ssubject to some taxation. And that's why
tax planning is so important. Youknow, if you're just joining us here
this morning on Security Retirement Radio,we are talking about unlocking some of the
hidden retirement gold mine strategies around taxpreparation versus tax planning. You know,

(05:41):
there's really three reasons is I getcloser to my retirement, if I'm on
my golden decade between the ages ofsixty and seventy, we want to start
thinking about incorporating tax planning with thewealth accumulation planning. And here's really the
three reasons you want to think aboutthis. Number One, we can show
you mathematically statistically back testing your incomestrategies, how reducing taxes in your retirement

(06:09):
planning, starting that today will substantiallymake your money last longer. Because one
thousand dollars that's already had a taxpaid on it versus one thousand dollars that
still has to lose some money totaxes. It just makes sense that this
would work that way now. Numbertwo, I want to be thinking about

(06:30):
taxes situationally. There's situations out there. If I'm a married couple when I
pass my retirement accounts or my taxmy income. If I pass away,
my spouse is going to be payingwidows penalties. They can oftentimes pay far
more taxes than a married filing jointcouple. Sit down with your accountant and
ask them why they can go throughthat, or visit with us in the

(06:51):
office here. Number two, there'salso a legislative component to this too.
I will tell you that Washington,Saint Paul there, they don't care what
your network statement is. They don'tWhat they care about and what they're gonna
look at is the tax return thatyou're gonna file sometime here in the spring,

(07:12):
or if you take an extension sometimenext fall. They look at that
return and they look at where yourincome lines up, the adjusted gross income
tax will income after deductions and soforth, and that's how they tend to
decide who gets to pay other typepenalties. What kind of penalties we're talking
about, Well, we're talking aboutthings like higher Medicare premiums. We're talking
about maybe paying tax on capital gainsthat would have otherwise been tax free,

(07:35):
or paying an extra three point eightpercent on those capital gains, or paying
twenty three point eight percent, dependingon your situation. They don't care what
the network statement is and more.And Buffett has gone a long way to
talking about how he makes more moneythan his secretary because he understands that if
you bring and you can control howthe money hits the tax return, you

(07:58):
can control so many other things.We are at a forty year tax low,
we're at a forty year tax low. But we just hit another milestone
thirty three trillion dollars in debt.Now we know that when the Tax Job
or Tax Reduction and Jobs Act waspassed, here did Trump tax plan that
they brought us to a forty yearlow. But when they did that,

(08:20):
they had to put a revision inthere to undo it somewhere down the road.
Keep in mind Donald Trump was thepresident. He didn't have a House
and the Senate on the same team. To get this through, they had
to make certain provisions, and oneof these provisions was that so much of
the tax code that was passed isnow going to expire in a little less
than two years and one month.That's right, because January one, twenty

(08:43):
twenty six, without Congress ever doinganything, with them doing absolutely nothing,
not passing any new laws or anythingelse, we are going to see a
reversion back to we were tax beforethe twenty eighteen change. That means that
for the average American that according toWall Street Journal, we're going to see
a thirty percent increase in our taxrates. They don't have to do anything

(09:07):
to start addressing some of the debtthat's out there, which means that we
have to do something. We haveto start thinking about tax plan We're going
to talk a little bit about howthat is a little bit different from tax
preparation. We all know what taxpreparation is. That's when you bring your
shoe box down to the CPA,say hey, go through this, figure
out what kind of deductions and exclusions. That's gotten a lot simpler here over

(09:30):
the years with the higher standard deduction, reduction on how much we could write
off in taxes and so forth.But tax planning is about thinking about your
tax return, the number one toolthe government likes to use to decide who
gets to pay higher taxes and figureout how we can start to adjust what

(09:50):
that's going to look like for usgoing forward. See Families Hire us here
at Security Retirement Financial. It's notnecessarily because the wealth accumulation, although we
do a good job that, butit's really more about how do I make
sure that I am spending confidently,knowing that the money I'm spending today I'm
going to have when I need itdown the road, and I'm not going

(10:11):
to regret the decisions of the spendingI'm doing today. Now. Tax reduction
strategies, the tax planning we talkabout here goes a long way to building
income confidence. But the other reasonfamilies tend to work with us is because
of the tax planning we do.It's about how we can look at the
situation we're in where we've got taxrates that are going higher, we're at
forty year lows. We also mighthave a very these retirement ac councilor are

(10:35):
a tax we might be retiring,maybe we are retired. There's a lot
of different situational things out there,but there's also the legislative risk. It's
about understanding that if they are goingto make changes to the tax go that
are going to impact Americans, they'regoing to start with what your tax return
looks like. And understanding how wecan control that today when we have so
many other uncontrollable things and we're atforty year tax rates that are sure to

(11:00):
go higher. Is important because ifyou want to maximize how much spendable cash
you have, if you want tospend confidently in retirement, one of the
fastest, the easiest, the mostreliable ways that you should be looking at
doing that is by taking steps todaythey can reduce your tax obligations tomorrow.
This is called tax planning, nottax prep, and it's something we do

(11:24):
for our clients each and every daythrough the tax planning process. And even
if you're not a client yet,I want to help you reduce taxes when
you retire because the less money thatyou have to pay towards Washington, DC
or Saint Paul or whatever state youmight be living in, the more you'll
spend on your family and yourself inretirement. And that's why we put it

(11:46):
aside in the first place. That'swhy we're offering a complementary secured retirement tax
savings analysis. It's pretty straightforward.Here's how it works. Once we get
some information from you, we'll sitdown, we'll share with you some tax
saving strategies that are best suited.They're tailored for your specific situation. We
will then share these strategies with you. You will see that oftentimes the difference

(12:07):
between the tax plan that you mightbe on an a tax training strategy that's
tax smart can be tens of thousands, hundreds of thousands of dollars. But
I'm going to show you exactly howmuch of that money would be there for
you. Call to schedule. You'refree secured retirement tax smart analysis right now
at nine five two seven seven seveneighty eight thirty eight. Not talking about

(12:31):
some well known deductions or just away to save an extra five thousand,
or it's not about deductions. It'sabout planning and how we can save you
tens of thousands and hundreds of thousanddollars in future tax rates in your retirement
years. So call us right nownine five two seven seven seven eighty eight
thirty eight and secure your tax smartanalysis right now. Coming up next,

(12:54):
Uncle Sam wants his fair share ofyour harderned savings. But could that push
you into a higher tax bracket?You may be surprised at the answer.
When we come back, that's DylanWahlberg. I got Nate Zeller with me,
and I'm Joe Lucy. There's moreSecure Retirement Radio in just a few
moments. He's a certified financial planner, fiduciary and a contributor to the Wall
Street Journey. And he's no ordinaryJoe. You're listening to Joe Lucy on

(13:16):
Secured Retirement Radio. He's a certifiedfinancial planner, fiduciary and a contributor to
the Wall Street Journal. You maynot realize this but he's kind of a
big deal. Welcome back to SecuredRetirement Radio with your host, Joe Lucy.

(13:41):
Do you own an IRA or afour to oh one K. Well,
you're probably thinking that this all goeson the balance sheet, it's all
your money, right, But whatit really is is a joint account.
This is a joint account between youand the irs. In fact, those
iras, I like to call themIOUs because remember, you still have to

(14:03):
pay taxes on every penny that comesout of these accounts, whether it's spent
by you and your spouse, oryour surviving spouse or the kiddos. Someday,
every penny in most cases is goingto be taxed somewhere down the road
at a future tax rate yet tobe determined. So welcome back to Secure
Retirement Radio. I'm Joe Lucy,certified financial Planner. I got Nate Zeller.

(14:26):
He's got more initials behind his namethan me. He's a CFA CFP
all right, good looking guy too, and he is an our investment strategist.
I got Dylan Maulberg. He's alsoon the team here as one of
the fiduciary advisors. So today whatwe're doing is we're talking about some tax
smart planning strategies that can help yousave a small fortune in your retirement coming

(14:46):
up in this segment here, let'sdive into some of these retirement accounts,
the iras and four to one case. What I believe these IOUs are ticking
bombs and they can eventually, ifleft untended, pay even higher taxes in
your retirement years than you might bethinking about. Oh, we talked about

(15:07):
unlocking this this goal mine or ontax preparation versus tax planning, and we
look at these required minimum distributions assomething that at some point in time,
everybody's going to get to that point. And I guess, Nate, you
know why is that this ticking timebomb that again a lot of families get
there and they find that out whereif they did a little tax planning ahead
of time, they could have avoideda lot of unnecessary taxes that ended up

(15:28):
paying. Yeah, and let's juststart here, Dylan and talk about what
an rm D is. We usethose initials or the acronym it's required minimum
distribution and the way it works isthat the government and Uncle Sam Joe had
mentioned that it's you know, reallyyou're a four to one K I raise
a joint account between you and thefederal government. Well, it's been growing
tax deferred for so many years thatat some point the federal government wants to

(15:50):
collect their taxes, and so theyrequire you to take money out of the
account. Hence the term required minimumdistribution or RMD. And now that age,
thanks to Secure two point zero,the age that this kicks in is
they age seventy three, and atthat age you're required to take money out
of your accountant. It doesn't matterif this market's up, it doesn't matter
if you need the money or not, but you have to take it out.

(16:11):
Now. A lot of times,what we have is somebody will join
us in our office here and they'llbe surprised because they still might be under
the impression that these required distributions startat seventy and a half, and they
were there for a long time.Right as COVID was hitting, they raised
it to seventy two. Now they'repushing it to seventy three, and there's
actually a schedule that says it goesup to seventy five, although I'm well,

(16:33):
we'll see when that occurs. Ifthat occurs, the opportunity here is
this, and I talked about thisa little bit in the last segment here,
because if we ignore these required distributions, if it's something that we are
required to do sooner or later,sometimes it just makes more sense to start
to address it before it's actually due. This is not an area you necessarily

(16:57):
want to procrastinate on. In fact, fascinating around taking out distributions from the
i rais oftentimes leads to unnecessary taxation. What we're really talking about here in
this segment is how these r andds can push you into higher brackets.
But think about some of the otherhidden expenses. Families with too much required

(17:17):
distributions end up paying higher Medicare premiumsin their neighbors. Families with too much
required minimum distributions the money that theyotherwise would have left deferring, but are
forced to take out and pay taxon, which will be somewhere down the
road at a future tax rate yetto be determined, end up oftentimes paying
more capital gains than they need to, more tax on their interestrate incoming that

(17:38):
they need to. It can pushyou from a twelve percent bracket to a
twenty two, or a twenty twoto a thirty two. There's a lot
of different things we want to thinkabout. And here's what I'm going to
challenge you as you're joining us hereat Security Retirement Radio, to start thinking
about what this required distribution might meanfor you. Think about where you're anycount

(18:00):
balances now most of us know thatnumber. We can get pretty close.
Now, if you are sixty orsixty two and you still get another ten,
eleven, twelve years before you needto start taking this money out,
you may want to take that balanceand think about doubling it. On the
other hand, if you're seventy seventyone, you can use the balance you've

(18:22):
got right now. And if you'rein your fifties, boy, you really
better start thinking about what this mightlook like. But if I start thinking
about where this retirement account is goingto be, what the balance is going
to be at seventy three, Inow want you to take three point seven
percent of that number. So ifyou have a half a million a day
and you end up with a milliondollars and ten years, you would take
thirty seven thousand dollars out. Ifeel like some of the families we visit

(18:47):
with they got two and a halfmillion, They got another few years.
Maybe it's not going to grow tofive, it's going to grow to three
and a half or whatever that is. You take three point you were talking
about one hundred thousand dollars pretty quickly. And oftentimes what this represents this money
that you would otherwise never have tospend out. This is why I call
it the grand allusion. Keep inmind all the way back to the very
first dollar that you allowed to getdeposited into this retirement account because your employer

(19:11):
was sponsoring something. And here's whatthey told us. They said, I
want you to start setting aside thismoney. And what we're going to do
is we're going to give you atax deduction on the money that goes in
this account. You're going to sacrificeit, and you're not going to be
able to touch it for several years, but it's going to be for your
future. Because we started to recognizein the seventies and eighties and nineties that
we were going to be a yoyo society. At some point, the

(19:34):
detentions were going away, and you'reon your own to start setting aside for
your own retirement. So we sacrificesome of these funds. We put it
in the account. We didn't haveto pay tax not But now the money
has been growing, and because ofthe eighth Wonder of the world, we
get this tax compounding growth without anytaxation. The balances have grown, in

(19:55):
many cases the very large numbers thatwe're feeling pretty darn good about. But
understand that if that account balance hasa half a million, a million,
two and a half million, noneof this money's ever been taxed, and
in two years, in less thanone month, tax rates are going to
go higher. Wall Street Journal saysthis is another thirty percent increase for the
average retiree in tax is. Whenthis occurs on January first to twenty twenty

(20:17):
six, that's when the Trump taxgo that Tax Acts and Jobs Act expires.
It's already been set in stone.Congress doesn't have to do anything.
They're going to see a raise intax rates in two years and one month.
I'm going to ask you if youstart to think about this, because
when you start to reject what theie array is going to be worth,
and you start to consider that someof this money that might be coming out

(20:37):
may not necessarily money that you're goingto spend on a vacation a new car,
You're not going to go buy inanother property with it. And you
know what, even if you giveit to the kiddos, they're gonna you
have to pay tax on before youcan give it to them. One of
the only ways to avoid it ischaritable gifting. We can talk about that
maybe later in the program. Butfor most Americans, this money was set
aside for us. We're going totake this money out. It's going to
come out. We're going to averagethree point seven percent the very first year.

(21:00):
It's going to grow to four percentvery rapidly. It's five percent by
the time we're eighty. And ifmy balance is sitting there, it's often
represents large sums of money they're goingto come out. Now, remember back
to that first dollar that went in. You were promised you'd put the money
in and taxes are higher. Youtake the money out and taxes would be
lower. There are ten thousand babyboomers today waking up and realizing that that

(21:26):
was a lie. It did notwork for them that way. They'd put
aside money at a tax rate,and now they're taking out the money at
a higher rate. They're getting hittingwith hidden penalties, the additional capital gains,
are losing out on some deductions,they might be paying higher Medicare premiums.
It goes on and on and on, and it's all because we never
start thinking about what the future ofthe taxes on these accounts are going to

(21:48):
be, because we focus on wealthaccumulation first and not about how to make
sure we're spending confidently and paying taxesconsciously. And that is what we've been
talking about here in this week's program. It's about unlocking some of the hidden
retirement gold mined ideas that will makeyour money go further. It's an important
question I maybe ask yourself here,how would a higher tax rate on your

(22:12):
eraser, for one case, howmuch of that would it eat away at
what you're already planning on to retireon. It's kind of a scary idea
considering how much our national debt hasgrown here, and it's why so many
of you are taking steps today usingsome proven, straightforward, defensive strategies that

(22:32):
will help you Washington proof the retirementassets that you are counting on in your
retirement years. The strategies that weshare will dramatically reduce taxes and retirement.
We can also show you how witha free customized tax mark retirement Savings analysis
will gather the information while bringing togethersome of the tax saving strategies that are

(22:52):
best suited and unique to your situation. That is not a cookie cutter brochure
or anything like that. We aregoing to cut customize every report for you,
and you're going to see exactly howmuch money you could save and how
much longer your money would last withina proactive tax planning approach, what we
call tax smart approach. To scheduleyour tax smart Retirement Savings analysis, give
us a call right now at nineto five two seven seven seven eighty eight

(23:17):
thirty eight. We'll make sure yousit down with one of our fiduciary advisors.
Here. We're not gonna charge youa dime. We're gonna show you
some of the best strategies to helpyou get more from your savings. So
schedule your tax Smart Retirement Savings analysisby calling nine five two seven seven seven
eighty eight thirty eight. We've onlygot a handful of appointments that are still
left on the calendars between now andthe end of this year. So if

(23:41):
saving a bundle of money and taxesdown the road is important to your retirement,
it's important to you give us acall right now nine five, two,
seven, seven, seven, eightyeight, thirty eight coming up next.
Rock conversions are one of the hottesttopics in retirement tax planning today.
But is a rock conversion right foryou? Find out when we come back.

(24:04):
He's a certified financial planner, fiduciaryand a contributor to the Wall Street
Journey, and he's no ordinary Joe. You're listening to Joe Lucy on Secured
Retirement Radio. Fasten your seat beltsand put your trade tables in an upright
and locked position. It's another actionpacked segment on how to make your money

(24:26):
go further in retirement. You're listeningto Secured Retirement Radio. You know,
if you're like most of US Americans, you simply prepare and file those taxes
every year about spring and get thelittle help from the accountant or your CPA.

(24:48):
You get good news or bad newssometime around April fifteenth, eighteenth.
But if you're not taking advantage ofmore than just tax preparation and starting to
think about tax well, then unfortunately, you could be leaving a fortune of
money that is rightfully yours on thetable. And this is especially true if

(25:10):
you're near retirement. So welcome backto Security Timent Radio. I'm Joe Lucy.
I've got Nate Zeel with me DylanMalberg, and we have been discussing
here this morning how using some ofthese tax smart planning strategies that we often
are using with families that we visitwith here at Security Timent Radio, how
it can help you save a smallfortune in taxes. It's not just about
wealth accumulation, it's about how tomake sure that we are paying taxes consciously

(25:33):
that will help you oftentimes spend moreconfidently. So coming up in this segment,
we'll share with you why this mightbe the best time ever to convert
your never taxed traditional IRA or fourto one K money into a tax free,
tax advantaged WROTH type account and howyou should know the little litmus test

(26:00):
here on whether this is the rightstrategy for you. Wow. Right,
And then the Roth conversion is oneof those hottest topics as far as a
tax planning tool. And if youthink about your traditional iras and four to
one case, when you take themoney out of those in whatever year you
do, you pay the tax atwhatever tax sit you're at in those accounts
in a ROTH IRA, You payall that tax upfront when the money goes

(26:22):
into the accounts. Therefore, lateron when you take the money out,
it comes out tax free. You'renot subject to required minimum distributions like you
are on the traditional IRA or fourone K bucket, and it can be
a really powerful tool as far astax plan is concerned, right, Nate,
Yeah, that's right, because Dylanto your point too, when you
withdraw money from a wroth IRA,you do not have to pay taxes on
it. And if when you're withdrawingout of a traditional IRA or four one

(26:45):
K, you're not only paying taxeson the contributions, but also on all
the gains. That's why wroth iraysare so much more advantageous most of the
time. Plus you're not subject tothe required minimum distributions that we've been talking
about on today's program. Well,and you know the other part of this
is actually if we think about thelife time of a retirement account, not
just necessarily our lifetime, but thelifetime on this account. You know,

(27:07):
somewhere down the road, Joe Loocy'sgonna be driving home, the media is
going to come down. He's goingto wipe out his car in every bed
of this money that's set aside inhis I raise that me and my wife
Patty have been taken out. Somedayas a mary finally joint couple will all
of a sudden start to get paidout as a single family member of widow.

(27:29):
Now, it doesn't. If youlook at the numbers, you'll see
that oftentimes the amount of tax getspaid for the same amount of income,
the rates will almost double. That'swhat we call the widow's penalty. But
let's go a little bit further out. What about when Patty's done with this
money and I wanted to go tomy son Gavin, when Gavin inherits our
money, Oh, they're the oldtax rules. I mean, you know,

(27:52):
way back in the day, hewould inherit this and then he could
stretch out this money and it couldgo another forty fifty. I mean he
would take a little bit out andwith the compounding growth on it and everything
else, he pays a little bitof tax. You could see some really
big numbers when you inherited in IRAif you just were patient and didn't take
it all out at once. Butthen they changed the rules on us.

(28:14):
In most cases, your beneficiaries willhave to take out the money in best
case in less than ten years orten years. So I have an account,
I passed it on to my son, he's now got to take it
out ten years now. This stillworks the way, whether it's an iray
or wroth iray. So as Natewas saying, wroth irays, I don't
have a required distribution. Well,it's my money or my spouse's money,

(28:36):
but when I passed it to mybeneficiaries, they do have to take these
distributions as to come out in tenyears. Ask yourself this though. If
I'm thinking about my son and he'spaying tax on the money that I'd deferred,
that I'd avoided paying taxes, hegets to pay my tax would I
rather him have to take money outof these accounts and pay tax on it
along the way and ten years,But we think about what that could do,

(29:02):
or if I have to take adistribution, would I'd rather be a
tax free So a lot of reasonswhy a WRON diary works. And not
all of us are trying to buildthis big dynasty South Dakota or Alaska legacy
for the kids. We want touse the money for ourselves first, and
that's fair even if that's the case, having some control over the amount of

(29:22):
tax station, understanding that tax uiksare going to go up in two years
in one month, if I onlyhave a wealth accumulation approach, if I'm
in the golden decade, in betweenthe ages of sixty and seventy, and
all I'm still thinking about is onlywhich is the right mutual fund to buy?
Should I be buying this CTF?Is it time to start doubling down

(29:44):
on TESLA? If these are thequestions, I'm asking myself that it's a
wealth accumulation strategy alone. If youwant to know how to make sure you
can spend in confidence, it's byknowing that the money you're spending in your
sixties, you don't wish you hadit back in your seventies. If you
want to be paying taxes conscious,it's about recognizing that because of the where
we're at, the thirty three trilliondollars in debt this two years, enlist

(30:07):
them one month before they change thetax rates. Because of the way the
laws were written back in twenty seventeen, we're going to see a reversion back
to a higher tax rate without Congressdoing a thing. If we recognize that
we've got a short window of timehere that we can start to untax ourselves
at a lower tax rate and makeit work more beneficial for us. We're
going to lose some opportunity here injust two years. That's when this starts

(30:32):
to come together. Because the easiest, the fastest, probably the simplest way
that I know that our firm hereat Security Timement Radio can get your money
to last longer, it's by helpingyou reduce the lifetime of taxes that are
going to come from these accounts,right Dylan, Oh, absolutely, And
you said it, Joe, thisexpiring tax code and if you u we've
been talking about this tax planning,and if we're looking forward and we realize

(30:56):
that you're going to be in ahigher tax bracket potentially down the road,
let's take advantage of these forty yearlows and let's look at maybe paying some
of this tax strategically and proactively thatlong term can really tens of thousand and
six sometimes seven figures show the innatethat we see in the office that we've
been able to save families in lifetimetaxes around these retirement accounts. What it
is, what it comes down tois converting some of the money into a

(31:18):
wrath. A lot of people,especially higher wage journers here of a wroth
IRA and think, well, Imake too much money I cannot contribute,
And that's not necessarily we're talking abouthere. We're talking about actually doing a
conversion. You don't have to convertyour entire traditional IRA. You can convert
part of it into a wrath,do a little bit at a time.
And this gets into really the themeof today's program is doing this planning over
a span of a number of years, and not just the tax preparation that

(31:41):
you do once a year. Youknow, I want to kind of as
we come to the closer to theend of this segment here, remind you
that, you know, it hasn'tbeen that long since we were able to
transfer money between friends between linked thesetools called Venmo or PayPal, things like
that. It hasn't really been thatlong. But we were out to dinner

(32:05):
with the neighbors the other day.They put it on the credit card we've
been lowed on before we left.And that's just the way money goes back
and forth. Now it's no longerhaving to run to the ATM to get
your your buddy some money because theyended up picking up the lunch tab or
a beer or something. Well,why am I talking about this because Peter
Teal was one of the co foundersof PayPal, you know, in nineteen

(32:27):
ninety nine. So that's what twentyfour years ago, Peter Teal puts aside
and purchases his one point seven milliondollars of PayPal stock in his wroth I
rate. That's right, he boughtone point seven million all in the WROTH.
Now today his account is worth overfive billion dollars. Now he invested
this money through a roth At accountand he doesn't ever owe another dime on

(32:52):
this five billion. He doesn't alla dime. He has family won't all
a dime it. Now, there'sgoing to be some state planning situations here
he probably has to address, butI'm talking about an income tax he will
not be paying. Think about thepower that this can do for you.
See, at some point in yourlife, you probably asked yourself some of

(33:12):
the more important questions, how muchcould you in your planning save in taxes
by converting some of this IRA moneythat's never been taxed. The IOUs we
talk about the four to one k'sthe four or three b's into a tax
free WROTH account, might ask yourself, should I be converting one hundred percent

(33:32):
of it this year or should Ibe taking a couple of bites at the
Apple over the next few years?Got I do it over a period of
time? Or should I rush intothis? What is the right strategy for
you? And are there other taxfree options besides Roth that I raised that
you haven't considered. There's no onesize fit all to a Roth conversion strategy.

(33:53):
So if you're sitting on a lotof this IOU money, this pre
tax ioraise and four one k's,and you're like to look at converting while
we still have some time two years, in less than a month into some
tax ROTH iory money, then schedulea free customized Roth conversion analysis right here
at Security Retiment Radio. I'm gonnamake this super simple. We're just gonna

(34:15):
gather something information. I will takea customized, a tailored approach to your
unique situation. What do you wantyour money to do for you? What
does your situation look like. It'snot going to be a brochure. This
is not even getting pulled out ofsome kind of computer. We're using forms
that are based on your situation.I'm going to show you ways that we

(34:35):
can save you tens of thousands,hundreds of thousands of dollars by being proactive
today before the situation changes. Nowthere's advisors that charge a lot of money
for this. We don't charge youa dime. You'll sit down with one
of our fiduciary advisors. So getyour secured retirement tax savings analysis. Schedule
it right now at nine five twoseven seven seven eighty eight thirty eight.

(34:57):
That's nine to five to two,seven, seven seven and eighty eight thirty.
I've mentioned a few times dinning today'sprogram. We are at historically low
tax rates and this is the bestopportunity ever. This opportunity is going to
shut down here in two years andone month, more than likely if Congress
does absolutely nothing and we revert backto the higher tax rates. It doesn't
mean you won't be able to doit. It just means that you're losing
in a tremendous opportunity. And we'veonly got five open appointments on this schedule

(35:24):
between now and the end of theyear for good folks like you that want
to learn how to untax themselves.From their retirement saviores, give us a
call right now nine to five totwo, seven, seven, seven eighty
eight thirty eight. This could bethe most important call you make next up.
It's one of the most overlooked pillarsof tax planning and it could save
you a fortune and retirement. Thenwe'll share what it is when we come

(35:45):
back. He's Dylan, I gotan aed Zeller with me, and I'm
Joe Lucy. There's more in justa few minutes. He's a certified financial
planner for do Sharing and a contributorto the Wall Street Journal. And he's
no ordinary Joe. You're listening toJoe Lucy on Secure Retirement Radio. He's

(36:06):
helping people just like you make themost out of every dollar they'd saved for
retirement. And he's got the grayhair to prove it. Welcome back to
Secured Retirement Radio. Here's your host, Joe Lucy. I bet you didn't
know this, but you actually havemore control over how much you're gonna pay
to the tax man in retirement thanany other time in your life. But

(36:30):
you have to be proactive, youhave to be thoughtful, you have to
have a strategy in place, becausethe irs isn't gonna wait for you and
chase you down to tell you howmuch less you could have been paying in
taxes until it's far too late.So welcome to Secure Retirement Radio. I'm
Joe Lucy got Netzellar with me andDylan Mahlberg. We are talking here this

(36:51):
morning on Secure Returnt Radio about sometax smart planning strategies that can save you
a small fortune and retirement. Butmany of these strategies are going to be
expired or they're going to lose muchof their opportunity here and maybe as little
as two years and one month.So coming up in the final segment here
why tax diversification is maybe one ofthe most underrated pillars of retirement planning.

(37:14):
Oh and tax tax diversification is thatcritical piece of an overall financial game plan.
It's it's really off and overlooked inAnd the reality is tax diversification could
really yield you huge results in retirementsas far as tax savings go. Right,
That's right. And tax diversification isall about asset location, not asset

(37:35):
allocation, and where you store yourwealth impacts how much money stays in your
pocket. You know, here's whatwe sometimes will hear because I know that.
Well, there's some of us outthere that have been listening to the
program today, going geah, youknow, I really wish we'd have taken
better advantage of those roth I rayswhen we could, but now our income
is too high, we aren't ableto do that anymore. Or maybe you're

(37:55):
thinking, you know, I'm stillworking, I've got a higher income now
than what I'm going to be spendingin a few years when I retire,
so I should be waiting. Well, as we address that, keep in
mind that while back in the oldold days, like twelve thirteen years ago,
there used to be limits on howmuch you could have for income and

(38:16):
do a wroth conversion. Now intwenty ten they changed this rule. That
means that what twelve thirteen years ago, now they actually changed a rule.
But yet I'd see a lot ofhigher earning families will come in and say,
I've been told I can't do awroth I rate. Now what is
true about this is this, youcannot do a contribution. You can't put

(38:37):
the seven thousand dollars with the catchupinto this account. You can't do that.
If your wages are too high,you actually have to have earnings.
You have to be working someplace.You can't just be collecting soil security and
a pension either to put money asa contribution into a wroth. But every
one of you that are joining ushere today, if you have an iowe

(38:57):
you one of these iras for onethree b's, everybody can do a wroth
conversion. That says, I takethe money that's never been taxed, the
money that's going to have to comeout someday and be taxed, and I
can start to put that into awroth I rate. And the goodness is
it's unlimited on how fast you doit. Now, keep in mind that
there are some tax consequences there.That's why you probably want to have somebody

(39:19):
working through this. I can lookat the tax planning situation in your unique
situation and make sure that they makegood recommendations for you on how to best
do this. You know, therewas some family coming over at Thanksgiving.
Now we had to make some stops. And son and myself we were running
around that Wednesday before Thanksgiving and Iwent into home depot and I was there

(39:44):
and I saw one of those bigred buckets, you know, the big
red home depot type buckets. Myson likes to use him because he puts
us hockey pucks and then he shootsout of him. We also had to
stop buying and get some solo cups, you know, because we had some
family coming over, and yeah,I guess that we're that family. So
everybody was getting red solo cups.And you know, the big ones,

(40:04):
the ones you used to have backin college. And then there are these
little cute ones, the ones thatare like the shot glasses. Right,
so every now and then maybe maybeyou want a little tiny one because you
don't want a full glass. Well, here's why I'm talking about this.
If you think about those three differentbuckets. We got the real big red
one from home deeper, We gotanother one that was the one that you

(40:27):
would pay a couple of bucks forfor the keger in college. And then
you got the little tiny one.Well that that that that are for shots
and things. But I think,and when I see families that come in
our office a lot of times,would all notice is that the lion's share
of what they've set aside for retirementsor in these moneies that have never been
tanks, they're in io use irase. For one case, in fact,

(40:50):
very likely the largest asset you havegoing into retirement. If you're not a
business owner, if you haven't puta lot of money into real estate,
it's probably these IOUs these iras.In forour one case, think of that
as home depot bucket, the bigone. Now we realize that we might
want to start thinking about getting somemoney outside of these irs, so we

(41:13):
put aside a little bit of moneyinto savings. Got a little bit more
disposable income. We're starting to getto that point and we start putting aside
some money in savings. We needit for a safety like an emergency fund.
Anyways, that right there, well, that's the cup that you used
to pay the two bucks for atthe college frat. It's the red solo
cup. I don't know what arethey about twenty ounces or so, And

(41:37):
we know in the back of ourmind we should be getting money in tax
free. Now that is a littleshock less. What we want to do
is we want to show you howyou can start to rearrange those buckets so
that the big bucket the one youwant to take and leave the hockey pucks
in and one have you, that'sthe one that you want the tax free
money on and we can show youhow to do that. I think it's

(42:00):
pretty clear now that a lot ofyou can make them significantly or reduce your
taxes significantly in your retirement years andtax planning. And it's not just about
tax preparation that's done here in April. Biggest challenge is figuring out how much
money you can do, having somespecific strategies, and making sure that you
do this right now. We wantto help get a no obligation secure retirement

(42:22):
tax savings analysis. Give us acall right now at nine five two seven
seven seven eighty eight thirty eight nineseven seven seven eighty eight thirty eight.
We're going to run you through alitmus tests, show you exactly how much
money you can be saving, andI'm going to show you how much money
it could be worth to you downthe road. But you got a call,
it might be one of the mostimportant calls you make in all of

(42:43):
twenty twenty three. Nine five twoseven seven seven eighty eight thirty eight.
Have a great rest of your weekendand enjoy your day. He's a certified
financial planner, fiduciary and a contributorto the Wall Street Joke, and he's
no ordinary Joe. You are listeningto Joe Loosey on Secured Retirement Radio
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