Episode 22: Grasping your Financial Needs, Step 3: Deliver

Join hosts Jason L Smith and Bryan Bibbo with special guest, Dave Alison, as they continue breaking down The Bucket Plan® financial planning process.  This episode covers step three of The Bucket Plan® process, the “Deliver” phase, where we present and deliver the personalized, holistic financial plan we’ve developed for you.   Key Topics Discussed:  Your … Continue reading Episode 22: Grasping your Financial Needs, Step 3: Deliver →

Episode Transcript

(00:00):
Welcome to the holistic wealth and health podcast,
your c host, Jason Smith and Brian Bi
will inspire and teach you to prosper in
your mind, body, and spirit, not just your
financial life, joining forces with field experts, Jason
and Brian are here to help you focus
on what matters most in your life, living
well.

(00:21):
So just to kinda of land the plane
on design.
Organizing everything, putting everything into a family a
estate organizer for the surviving spouse who the
kids are better beneficiaries to have everything in
1 place and organized and everybody to be
on the same page, doing the volatility
tolerance analysis based on the bucket plan and

(00:42):
how much is in the now soon and
later,
scoring the soon bucket, the money you're gonna
use for income or withdrawals or you wanna
have invested more conservatively
different
and separately
from the later bucket
in that volatility.
Tolerance analysis while we utilize the pyramid of
risk to not just educate, but also

(01:04):
understand
past investment and insurance experiences
a client has had with those things. And
and then ultimately,
being able to go to the engineering phase.
Right, between
step 2 and step 3,
And so let's go ahead and start talking
about step 3, and Brian, maybe you can,

(01:25):
let's say the the engineering is done. Right?
We're all the way through a Discover. We're
through design. We're now ready to deliver
the plan. The blueprint finalized.
Try in the in the delivery phase of
the process.
Yeah. No doubt about it. But Jay's really
to your point here, it's... We come back

(01:46):
in and We reset after that design appointment,
and we're coming back in with fresh mites
because we can't do it all once there's
a data overload. So we're coming back in,
we're meeting virtually we're beating in the office,
whatever it may be. And at that time,
we have built up that family a estate
organizer for you. Right? I'm showing the client's
their exact family organizer. After we did some

(02:07):
catch up in the beginning of the meeting.
Right? Making sure whatever's is on their mind
gets addressed, but I'm going, hey, look at
what we've done for you. We've built out
this family estate organizer,
and we've made a turnkey for you from
the bank accounts investment account Social Security health
care taxes just to name a few things
and we put them in there there in
these nicely sleeves where you can remove them

(02:28):
and and putting in the new ones as
the statement comes up. I joke with people
by go. I expect you to update this
every month. And I just stop as a
joke. Right? It is not reality. Right? I
said in all reality, we need you to
update this once a year. Right? That's... And
and if there's problems with it, you let
us know, but update it once a year.
What my wife and I do is every
January. Right have the first year. We actually

(02:49):
go through our family state organizer.
We sit down. We crowd all these statements
and we make sure we're up to date,
which you work with us, we'll be able
to help update your. I'm just doing it
on my own because as you could imagine
being the financial planner of the family.
So what we end up doing after we
deliver that family to organize, we start recap
what we went through last time. And we

(03:11):
start summarizing. We're giving people whether it it'd
be digitally
a full blown financial plan or physically that
full blown financial plan. So it's pretend in
the office, Jason. I'm going, hey. We just
gave me a famous state organizer. Now here,
Jason. Everything we're gonna go over today. Is
gonna be in this binding of your financial
plan. So I'm handing that people that binding

(03:33):
of the financial plan. I'm about to go
over it and I'm minute go, guess what
You have a note notepad here takes notes,
but everything little detail you're seeing is going
to be in that financial plan that you're
gonna be able to digest after that meeting.
So they're getting the full blown plan, but
what I start that meeting with is, we
talked about, Dave in that that first phase

(03:53):
of the discovery, that concerns and the priorities.
Right?
I'm rehash with them.
What were their number 1 concerns employed said
when we met the first time. This is
what you shared with us is in your
minds and in your hearts and what you
care about the most. And let's just say
an example was like tax efficient distribution planning.

(04:14):
Well, Jason, what we've done for you is
within your financial plan, you're gonna retire soon
and you're worried about the taxes, and we
have these different... Funnels of money. You have
some pre tax money, some post tax money
and some tax advantage money. We've integrated all
those dollars together, and have solved this to
make sure you have a tax efficient plan.
We'll talk more about it today. So what

(04:35):
we're really doing is re dying why they
were originally here. There was a pain point
of why you came and sauce. Something had
usually came up in life or retirement had
about or if I needed an addition on
the house, how do I fund it? Right?
All those kind of things is the pain
point of why they're here. Some I'm diving
into that. I'm just recap is like, how
this 1 the D.

(04:55):
What was their income that they needed? So
that's what we're working through at the beginning
of that? And then, Dave, where do we
transfer from there?
Yeah. Well, I mean, Brian, I think big
picture
in this deliver meeting. Like, I always break
it down into... There's probably 3 or 4
main things we're trying to accomplish.
To your point, you mentioned earlier,

(05:15):
the first thing is that we wanna show
them how we could eliminate the things that
are concerning to them. Things like running out
of money in retirement
or a large stock market drop early on
in retire.
So it's about eliminating
concerns.
It's about
addressing the things that they shared are their
priorities,

(05:36):
maybe that's experiment securing long term care funding
or a plan. Maybe that's legacy planning for
the children or the grandchildren
maybe that is
share kind of this copy of a book
and approach to die with 0 where they
wanna go maximize their money while they're alive
and enjoy retirement in the most meaningful ways.

(05:59):
So it's eliminating
concerns,
addressing priorities,
and being able to validate and show the
clients,
how we can help them achieve their goals
and objective dips. All the things that they
shared with us in that discover meeting.
Now, what we then do is walk through
all the elements of the work we've done

(06:20):
together. We walk through their cash flow assessment.
If they're younger, they're still a ways out
from retirement,
it's probably in a
accumulation and savings plan. So that 1 day
they can ultimately
retire, and we wanna show them the maximum
tax efficiency along the way while they're earning
money, earning a paycheck, running their business, whatever

(06:44):
they're doing to accumulate wealth.
If they're approaching retirement or in retirement,
it's the most appropriate cash flow plan.
To secure the reliable
income stream that they need in and through
retirement, and that could be broken into different
phases. I always share with my client that
there's really 3 phases of retirement. There's your

(07:07):
go years, your slow go years and your
no go years. And so maybe in their
buckets plan, they wanna be able to spend
more money in their go years when they
have the health and the wealth. Right? Tied
it into your podcast. You like like that.
They'd be able to go, do more things
in life, travel, and they've got the energy
and then they might get into their sick

(07:28):
logo years, they... They need a little bit
less cash flow, and then ultimately, they're no
go years. And so we help map out
what that cash flow looks like. To be
able to support that cash flow, we then
validate how much money we need in each
bucket.
And again, now we've crunch all the numbers
of things like social security

(07:49):
optimization. Should we delay till late 70? Should
we take it at 62?
Should we do a spread strategy where 1
spouse takes it early and the other spouse
delays it. How does that impact their taxes,
what accounts should they draw their retirement income
from? Should it be all pre tax? Should
it be all post tax and keep their

(08:10):
taxes down? While we strategically do roth conversions
for maybe legacy planning, there's so many different
things to talk through to be able to
validate their buckets land.
And then what we do is we show
them in asset
transition
illustration because a lot of of times when

(08:30):
I show clients, the bucket plan, they're, like,
yep, you nailed it. This is exactly
what we want,
but we have no idea how to get
them Money over to you and to implement
this. And show... So we show them on
the left side of the page, here's all
the accounts that you have today. On the
right side of the page, here's where they

(08:50):
need to be to optimize and implement your
bucket plan. And in some cases,
we could make that move immediately.
Whereas in other cases,
it might be a period of time before
we could make that move. Maybe there's still
work, and they don't have access to roll
over their 04:01 k yet, and we need

(09:10):
to build a timeline of
implementation as well.
Maybe
they've got a bunch of concentrated
stock that we can't just go sell all
in 1 year or we would blow up
their tax... Turn. We need to build a
very strategic tax optimized
distribution or or or, this disposition plan around
how we're gonna sell that stock. So that

(09:33):
asset
transition illustration helps lay out the map of
how they're gonna get from where they are
now to how they're gonna be able to
execute their fully optimized bucket plan.
Then we go through all of the costs
and fees associated
because I know at Gail Smith just like
at Alice and wealth. We are not a

(09:54):
profit.
We do charge for the
implementation, and we want it to be very
and transparent and upfront with what the cost,
the fees and the expenses are gonna be
because 1 of the things that drives me
not about the financial services
industry, is that in many cases, there's a
lack of transparency

(10:14):
of how much clients are actually paying
further investments or further
adviser.
And so we believe in having everything
doc
so that clients can
actually see
down to the dollar what they're paying for
their
in their advisor in their plan and there's
a level of accountability

(10:36):
there. And then from there, we have all
of the resources like the different
illustrations or proposals, the financial modeling, things like
social security
optimization, kinda all that, you know, Jason, what
you mentioned, all the engineering stuff. So that
if clients wanna see how this kinda of

(10:56):
maps out, they can be able to do
so. And that kinda gives the client the
total peace of mind of saying,
alright.
This plan is gonna eliminate my concerns. It's
gonna address my priorities.
It's gonna help my family achieve our goals
and object lives in a very efficient and
meaningful way. We

(11:17):
understand how our assets are positioned We understand
the investments that we own. We understand the
fees and expenses that we're paying.
And they have the total confidence
to be able to move forward into
implementation, and have 1 less thing to worry
about in life, knowing that they have a

(11:39):
team of
like what we provide to our clients
to help can... Continue to guide them along
the way as their life changes, their needs
change, their goals and objectives change and. Quite
frankly, the stock it changes, the economy changes,
public policy, taxes. All of these things are
ever changing

(11:59):
and our team of advisers is there to
stay up to date on these things so
that our clients can go enjoy the things
that actually bring them meaning and fulfillment in
life. I wanna reiterate something you guys both
talked about briefly, and it's just so
crucial. Right? Yeah I think it's a key
differentiator for

(12:20):
both Allison Wealth and Gail Smith and and
our holistic wealth management approach. That we follow
and subscribe to in the bucket plan.
Obviously, when you work with an investment
professional, they're gonna take care of your investments
many of them will also look after your
your protection planning. Your insurance. Right? That is

(12:41):
incorporated as part of the plan.
Whether they bring a neat attorney or whether
they have more experience in regards to legacy
and a state planning,
sometimes that gets by investment. Professional, sometimes it
doesn't.
But the tax planning and management
component
is so
crucial when it comes to what holistic wealth

(13:03):
management really is and the ultimate outcome of
the plan. And both of you guys talked
about this. And you referenced the funnels, And
I think the funnels are just so crucial.
So I wanna just spend a minute or
2 on those because, you know, as Brian
described, we use funnels to fill the bot
kits in the
accumulation phase. And there's 3 funnels. So when

(13:24):
we say funnels, it's how you can basically
stamp your money of how it will be
taxed in the future. It's choices you make
in the
accumulation phase, as to whether that money is
gonna be pre tax
like your traditional 41K
Ira risk saving plan, 04:03 b. A lot

(13:45):
of those the kind of things that people
are familiar with. You are choosing to not
pay any tax. It's pre tax, and then
it all accumulates, but ultimately, when you pull
it out, it's taxed ordinary income. That's the
first of the 3 funnels,
The second is post tax. Post tax. You're
choosing to pay the tax. You're not gonna

(14:05):
put it in that pre tax status, like,
what we just described. But, ultimately, as it
earns year after year, you're gonna get forms
from the
institutions that's gonna cause you to pay tax.
As you go each year. Right? You gotta
pay tax. And the, growth of those investments
throughout. And then the third and final is
the tags advantage or some people call it

(14:27):
tax free. And so it's roth
money. It's Hsa.
There's cash value within life insurance that can
fall into that category.
So the the decisions you make in
accumulation,
of where you deposit your money almost and
funnel it through to fill your buckets.

(14:47):
But then when you go into distribution
Now it's what type of tax you're gonna
pay
throughout retirement, and then ultimately what kind of
tax your spouse for...
Surviving spouse when you pass away or your
kids and beneficiaries are gonna pay. And so
the... There's so much art and science
to blending out income when you get into

(15:09):
that distribution phase. And I just feel like
it's important to reiterate how and... Horton that
really is,
both in the
accumulation phase of filling... Using the buckets to
fill the... Are the funnels to fill the
buckets as well as in the distribution phase
of blending out income to take advantage of
what the government allows us to do pay

(15:32):
legally
pay the least amount of taxes that we
possibly can by making good decisions. Yeah. I
think tax efficiency is crucial. And and I'm
just gonna give you a general overview. So
people here this is
usually, it's tens of thousands if not hundreds
of thousands of dollars
over our lifetime and we put a tax
in place. I'm not kidding and we're able
to actually put this in dollar amounts and

(15:53):
show the individual saying, hey. Instead of you're
just doing the traditional strategy, here's the solution
that we've talked to, and here's how to
implement it, and we live to 90. It's
a hundred 50000 dollars in less taxes. It's
200000 dollars less taxes. It's astronomical
number that that's for...
Normal kind of person. Running? Right not a
real high net worth at their ultra on

(16:15):
network. You start getting into there, you're talking
about millions of adults. Yeah. I mean, yeah.
We clients were saving hundred, 203 hundred, 400000
a year. And imagine,
what that adds up to over 10/20/3040
years. I mean, the reality of it is,
Jason, you mentioned it.
Taxes will be pretty much
everybody what single largest expense throughout their lifetime.

(16:38):
It just will. It pale in comparison to
the cost of healthcare care in the United
States, It pale in comparison to the cost
of your mortgage
or your groceries or your car, life time
taxes or something that we all need to
focus on.
And when you think about taxes,
if you think about those funnels that you

(16:59):
mentioned, Jason, there's the 3 funnels, the pre
tax, the post tax and the tax favored.
For any money that you have in the
first 2 funnels, the pre tax or the
post tax.
Hopefully,
the value of those investments in those funnels
are growing over time.
Which means that your tax liability is growing

(17:20):
over time also.
It's not just growing because you're adding more
money to it. It's growing because that money's
is invested in the stock market in the
stock market is growing. If we look at
the stock market over the last 12 months,
it was up what, 15 to 20 percent.
That means your tax liability just increased 15
percent to 20 percent on that money as
well. So it's not about what you make.

(17:41):
It's about what you keep
and liability that's so much of what step
4 is. That's really our dedicated phase where
we are every single year through out the
year proactively
looking at your income, your cash flow. Your
investments, your savings, your taxes

(18:04):
to figure out if we can do
legal
strategies
to help
minimize what maybe that not just the tax
liability each and every year will be, but
what your lifetime tax liability would be. And
so there's just so much value to be
really paying

(18:25):
keen attention to what the net after tax
impact is of the wealth that you're building.
Well, that's a great way to win the
plane. I think we've done a great job
covering design and deliver.
And so in the next episode, which will
wrap up this series on the bucket plan,
holistic Wealth management process,

(18:46):
we're gonna talk about the dedicated phase, which
is really onboarding the client based on all
the work that we done in discover, design
and deliver. And then, ultimately, the management.
Right? The maintenance of the house, like we
talked about ongoing after that. Given the plane
implemented, Well, Jason, I just wanna share, don't
forget subscribe to our channel, subscribe to our

(19:08):
Youtube page, download these podcasts in. Don't forget
the bucket plan book.
Go ahead and reach out to our office
and we'll send you a complimentary
copy of this book where you can actually
read a true story of Jason taking Jerry
and Irene read through the bucket plan process,
everything we've described in this podcast so far.
So Fellas, it's been fun being here with

(19:29):
you today. Appreciate it. Thanks, Dave. Thank you
for listening to the holistic wealth and health
podcast.
We hope we... Inspired you to make changes
so you can live your best life.
If you wanna find out more about what
we do or if you wanna have a
wealth and health financial plan. Please call 4568337000.

(19:50):
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(20:12):
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(20:32):
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