February 1, 2023 • 38 mins
Whether we’re talking about gall bladders or the SECURE Act 2.0, there’s really no such thing as over-sharing. Right? That’s why on this episode of Retirement Equals Freedom, Host Josh Bretl is diving deep into both topics! In addition to finding out how he’s faring post-surgery, we’re also getting a thorough debrief on the many (in some cases subtle) new SECURE Act provisions adopted by Congress at the end of 2022 – many of which may impact how we manage our retirement accounts and other savings vehicles.
You’ll learn about an adjustment to age limits for required minimum distributions (RMDs) and why tax strategy is key to maximizing assets in retirement. It’s all about being proactive, says Josh: “I like when my clients have control and there’s nothing raining over that could spoil what we believe could be the best part of their lives.”
There’s something for everyone as Co-Host Dave Schmidt takes us into the finer points of his all-time favorite video games and ponders a photo tribute to the gall bladder polyps Josh’s astute doctor sent packing.
In addition to learning all the latest and greatest information about SECURE Act 2.0, you’ll enjoy another round of #Dave Relates to Retirees (aka DR2R) and find out which podcasts our hosts are loving these days. And don’t forget to stay up on all the latest by signing up for the show’s weekly email at this link!
This episode was fueled by Cometeer Coffee, both iced and hot!
Click here to learn more about or listen to previous episodes of The Retirement Equals Freedom Podcast. And don’t miss out on the conversation over at our new private Facebook group, which you can find here.
Click here to explore the services that FSR Wealth Strategies offers and schedule a discovery call with one of the team’s CPAs. When it comes to living your best life, it’s never too early to get started!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Dave Schmidt (00:00):
Whether we're talking about gallbladders
or the Secure Act 2.0,there's really no such
thing as oversharing, right?
In addition to finding out howJosh's faring post-surgery,
we're also getting athorough debrief on many,
new secure act provisionsadopted at the end of 2022.
Josh Bretl (00:20):
To be quite honest, it doesn't have quite the
sweeping changes that 1.0 had,but it is pretty massive still.
So, here's the biggestchange, SECURE Act 1.0,
it changed the RMD age.
It has been 70 anda half for years.
And Secure Act 1.0,increased that to 72.
(00:41):
Secure Act 2.0, effective2023, raised that to 73.
Dave Schmidt (00:48):
You'll also learn why tax strategy is key to
maximizing assets in retirement.
Josh Bretl (00:54):
Because it's a forced income upon you,
that means that more of yourother assets could be taxed.
That could raise yourcapital gains rate.
It could change how much ofyour social security is taxed.
It could put you ina higher tax bracket.
This gives you more timeto take advantage of tax
bracket management, toutilizing the tax brackets.
And another opportunityfor you to take back some
(01:17):
control away from Uncle Sam.
Dave Schmidt (01:19):
We want your retirement to be the
best part of your life.
In order for that to happen,you need to be proactive and
you need to own your retirement.
Josh Bretl (01:28):
I like when my clients have control.
I like when there's nothingraining over them that could
spoil what we believe could bethe best part of their lives.
Dave Schmidt (01:36):
Own it, baby.
Josh Bretl (01:37):
Own it, baby.
Dave Schmidt (01:39):
This is The Retirement Equals
Freedom Podcast.
The host of the show,Josh Bretl, is the owner
of FSR Wealth Strategies.
For the last few decades,he's been helping fine folks
like you make retirementthe best part of your life.
And me?
Hi there, I'm Dave.
Josh's longtime friend,co-host, and fan of
(02:02):
SpaghettiOs with Meatballs.
All right, my intro hasgone on long enough.
Let me let you let me, endthis introduction so we can
learn all about secure Act 2.0.
FSR Wealth Management is aregistered investment advisor
located in Elmhurst, Illinois.
Information and opinionscontained in this audio
have been arrived atby FSR Wealth advisors.
(02:23):
All information herein isfor informational purposes
and should not be construedas investment advice.
It does not constitute an offer,a solicitation or recommendation
to purchase any security.
FSR is not providing legal,tax, accounting, or financial
planning advice in this audio.
These views are as of thedate of this publication
and are subject to change.
(02:55):
Let me get into the beatbox.
Josh Bretl (03:02):
So Dave, last week.
Dave Schmidt (03:04):
Yeah.
Josh Bretl (03:05):
I had the pleasure of, oh, it's two
weeks ago now, I think?
When did I have mygallbladder ripped out?
Two weeks ago.
Dave Schmidt (03:12):
Yeah.
Josh Bretl (03:13):
This was planned.
I had it scheduled, Idon't know, a month,
month and a half out.
And I wasn't having gallstones,but it needed to come
out for medical reasons.
And I never had surgery before.
So, I was at Elmhurst Hospital.
It went laparoscopically.
I started at 9AM.
I was home in bed, minus oneorgan, at 1PM that afternoon.
Dave Schmidt (03:34):
That's efficiency.
Josh Bretl (03:35):
It was amazing.
they have you all anesthesiadout and everything, and they
wheelchaired out, and I rememberthinking, it's kind of weird
to leave the hospital withless organs than you came in.
Dave Schmidt (03:47):
Now, how do you know that you left
with no less than one?
How do you know that?
Josh Bretl (03:53):
It's a good question.
I have no idea.
It's in my medical records.
I got the hospitalbill really fast, and
that was kind of crazy.
And I only got billedfor one removal, so I
guess that might be it.
So, my kids, they know whata bladder is because it helps
them pee, and we have kidswho are at the age where,
if there's some sort of jokeabout a bodily function,
(04:15):
they're going to make it.
They have no ideawhat a gallbladder is.
So when I got home, A, they weresurprised I could still pee.
And B I'm also a humanjungle gym, as you I'm
sure are to Landon at home.
And one of the few requirementsI had afterwards was, don't
lift anything more than eightpounds, and that means my
children, without a doubt.
And Alex was walkingaround telling everyone
(04:36):
I had a bladder infectionand it had to come out.
So, it was kind of funny.
Dave Schmidt (04:40):
I mean, you have some bottles of wine that
weigh more than eight pounds.
I've seen your cellar.
So, how do you handlethat situation?
Josh Bretl (04:47):
Well, one of the things you're not supposed to do
very heavily after gallbladdersurgery is drink alcohol.
So, we've just notbeen having it.
So, that works.
Dave Schmidt (04:56):
Well, Josh, we're all thrilled that
you're feeling better.
And look, I'm going to say it.
You lost some weightand you look great.
Josh Bretl (05:03):
I did.
Actually, I thinkpeople are freaking out
that I've lost weight.
My parents have been inFlorida since Christmas, and
they came back this week andthey're like, "Oh my God,
you've lost so much weight."
I think they're worriedit was the surgery.
I had actually lost alot of weight before the
surgery, actually trying.
I just didn't look like it.
Now they ripped an organ outand I've continued to lose
weight, which is intentional.
(05:23):
This isn't some sortof medical thing.
Dave Schmidt (05:26):
No, I just found it weird that my wife scheduled
me for a gallbladder surgery andI don't even need it removed.
Josh Bretl (05:33):
Oh, Carla.
Dave Schmidt (05:34):
Oh, Carla.
I have decided to stop makingcomments and references
to our new podcast table.
I'm doing it right now,but this is the last time,
because we are continuouslydisappointed by our vendor.
So, here we are.
Video, people, whichis coming in 2023.
Josh Bretl (05:50):
Excited.
Dave Schmidt (05:50):
We're still at the same old, same
old boring table for now.
Josh Bretl (05:54):
So, one more fun thing.
You and I justattended a baby shower.
Dave Schmidt (05:58):
We did.
Josh Bretl (05:59):
Yeah.
So, Brian from my office,our office, his wife
Anna is expecting theirfirst on Valentine's Day.
Dave Schmidt (06:08):
Yep.
Josh Bretl (06:08):
It's all the little boy, they're having a
baby boy, and all the books.
And it kind of bringsback the memories of the
books we used to read.
Dave Schmidt (06:16):
Afterwards I messaged Carla and I said,
"We just had the baby shower,"and I said, " Brian got a Baby
Brezza from Josh and his dad."
And I'm like, "That bringsback so many memories."
And Carla and I, we can'tremember what we had yesterday
for lunch or breakfast, but sheremembers that the first time
our Baby Brezza broke down, Idrove in a snowstorm to Buybuy
Baby to get a new one, becausethat's how desperate we were,
(06:37):
because that thing was awesome.
So then we started reminiscingand like, yeah, you miss those
days, but you kind of don't.
Josh Bretl (06:43):
There's very few random small appliances that
I recommend, that I will belike, "You have to buy this.
It's the best thing ever."
One is a Pizza Pizzazz.
Dave Schmidt (06:52):
I was just going to say.
Josh Bretl (06:53):
One's a Pizza Pizzazz.
It revolutionizes frozen pizza.
And two is the Baby Brezza.
If you're having a baby,this thing is unreal.
And we had twins.
It was literally a lifesaver.
Dave Schmidt (07:06):
Oh, without a doubt.
The Pizza Pizzazz did topizza and other frozen
goods what the Mike TysonGrill, what was it called?
Josh Bretl (07:15):
No, the George Foreman.
Dave Schmidt (07:16):
George Foreman Grill did to processed meats.
I mean, it's revolutionary.
By the way, we need to get oneof those in the office, Josh.
Josh Bretl (07:22):
A Pizza Pizzazz or a George Foreman?
Dave Schmidt (07:23):
Yeah.
A Pizza Pizzazz.
50 bucks.
Josh Bretl (07:25):
Well, I actually have a Pizza Pizzazz
dilemma a little bit.
Dave Schmidt (07:27):
Oh no.
Josh Bretl (07:28):
Yeah.
People tuning in for SecureAct 2.0, because, when you
wrote this out, and we'retalking Pizza Pizzazz and
babies and gallbladders.
Dave Schmidt (07:35):
Yep.
It all ties together nicely.
Josh Bretl (07:36):
We're going to wrap it together with
one big bow at the end.
But you know we're redoing ourkitchen, and we have had our
Pizza Pizzazz now for 20 years.
We got it before we were evenengaged, and we just celebrated
our 18th wedding anniversary, sowe've had it for about 20 years.
It just broke.
Dave Schmidt (07:55):
No.
Josh Bretl (07:56):
It just broke.
Just, the motor wasn'tturning on it anymore.
I mean, we use this thingall the freaking time.
I mean, it was an integralpart to our lives.
And we're good cooks.
This was an integralpart to our life.
And now the question comes,as we put our new kitchen
back together, do weinclude the Pizza Pizzazz?
Dave Schmidt (08:17):
Here's my advice.
And Missy, you're notgoing to listen to this,
but Josh can tell you.
It's either a PizzaPizzazz or a pizza stone
oven in your backyard.
It has to be one of the two.
Whatever you go for.
Josh Bretl (08:30):
I got a story for that one too, came up this
weekend, but I don't know if wehave time for that right now.
Dave Schmidt (08:33):
Maybe episode 32.
Josh Bretl (08:35):
Yeah all right.
Dave Schmidt (08:39):
Are you surprised that I've heard nothing about
Secure Act 2.0 being passed?
I'm being somewhatfacetious here.
Because it seems prettyimportant, but yet no
one's talking about it.
Josh Bretl (08:48):
Well, it's pretty important, but you also
just read Tim Burton news.
Dave Schmidt (08:52):
Yeah, that's true.
Josh Bretl (08:52):
There's not a lot of news that you
watch that I think will berelevant to Secure Act 2.0.
Dave Schmidt (08:58):
I don't like the kid, but he's got a point.
Josh Bretl (09:00):
I mean, I like you when you have a point,
because Secure Act 1.0 got aton of press and 2.0 did not.
It did not get asmuch of a press.
And to be quite honest, itdoesn't have quite the sweeping
changes that 1.0 had, butit is pretty massive still.
It's quite the bill.
Dave Schmidt (09:18):
Now, to be fair, it was passed right before
Christmas, or a few days before.
Josh Bretl (09:22):
Yeah, I think we've been talking about
it for so long that peopleare just tired of it.
December 29th, it was actuallyright before New Year's.
Dave Schmidt (09:29):
Oh, okay.
Josh Bretl (09:29):
So, I mean, this is brand new.
And we're still digestinga little bit, but
there's a lot in there.
Dave Schmidt (09:35):
And just to recap, we did an episode,
it was podcast episode21, where we talked about
the first Secure Act.
So, recommend you goback and listen to that
and then come back here.
Josh Bretl (09:44):
Now, that was back in September.
And I only know that becauseErin put notes in here for us.
When I read this, and I'mgoing to apply the Secure Act
2.0 to retirees for the mostpart, and what does it mean to
them, and how does it impactthem and their retirement?
And where we can, we'llmake some suggestions.
But like every goodeducational topic, please
(10:07):
make sure you talk to someonewho knows your situation.
If you have questionsabout it, don't wait.
I mean, this can make amajor impact and it can
have some benefits too.
So, as we talk to all ofour clients, it's kind
of fun to see how we canincorporate these different
things into their lives.
Dave Schmidt (10:23):
Should they email me with questions?
Josh Bretl (10:25):
Oh yeah, without a doubt.
Yeah.
Do not email Davefinancial questions.
Secure Act 2.0, December 29th.
And a lot of it expandsupon the original Secure
Act 1.0, and Secure Act 1.0is a pretty big difference.
So, here's the biggest change,and we're going to spend the
most time talking about this.
(10:46):
But Secure Act 1.0, so, theoriginal Secure Act, I mean,
the OG, it changed the RMD age.
So, let's take a stepback and talk about RMDs.
RMDs stands for requiredminimum distributions.
That is the age at which theIRS requires you to start
(11:06):
taking money out of your 401ksand IRAs, and they do that so
they can collect taxes on it.
It has been 70 anda half for years.
Decades and decadesit's been 70 and a half.
And Secure Act 1.0, theincreased that to 72.
Secure Act 2.0, effective2023, raised that to 73.
(11:28):
So, for people who wereturning 72 in 2023, you
get a year reprieve.
Dave Schmidt (11:36):
And not four people, F-O-U-R.
For all you people that turn 73.
I just had to makethe distinction.
Josh Bretl (11:42):
I'm going to guess there's more than four,
F-O-U-R people, that aregoing to turn 73 this year.
Dave Schmidt (11:48):
I'm just clarifying.
You never know.
Josh Bretl (11:49):
But thank you for the clar-
Dave Schmidt (11:51):
Sure
Josh Bretl (11:52):
Email Dave your financial questions., He'll
clarify it just like that.
But if you turn 72 in 2023,you do not have to take an RMD.
All right?
You do not have to take it.
Now, if you turned 72 onDecember 31st of 2022, you
still have to take your RMD.
(12:13):
So, that's the rule there.
And that makes sense toyou, because you will
be 73 in 2023 anyways.
But that goes in 2024 now.
Anyone who turns 73 will betaking their RMD at age 73.
Now, they went one step furtherand 10 years from now, I mean,
(12:35):
they made a law that changesan age 10 years from now.
But 10 years from now,the age goes up to 75.
To me, that's kind of funny.
Do you think that'sgoing to stick?
Do you think 10 yearsfrom now, people are going
to be like, "Surprise."
Like, "Oh, we forgotthis age changed."
So, what do you do about this?
How do you takeadvantage of this?
And, Dave you know mybig thing on control.
(12:58):
I always tell people you want tohave control of your situation.
You want to control your future.
And in fact, our entireretirement planning process,
we call it your own yourretirement planning process,
so that you can take controland own your own retirement.
And one of the things that isyour biggest risk is taxes.
Dave Schmidt (13:23):
I mean, the obligatory...
Alex (13:25):
Hashtag tax nerd.
Josh Bretl (13:27):
Thanks Al.
But And the government doeshave a lot of control over you.
So, these RMDs are one of those.
They will force you tostart taking money out.
So what does that mean?
Well, because it's a forcedincome upon you, that means
that more of your otherassets could be taxed.
That could raise yourcapital gains rate.
It could change how much ofyour social security is taxed.
(13:50):
It could put you ina higher tax bracket.
There's all sorts ofthings that could occur.
So, what this does is givesyou more time to plan.
This gives you more timeto take advantage of tax
bracket management, toutilizing the tax brackets.
And this age is anotheropportunity for you to
take back some controlaway from Uncle Sam.
Dave Schmidt (14:11):
And earn an extra year of interest, right?
Josh Bretl (14:14):
You know what, Dave?
That is actually a commonmisconception and it
doesn't really do that.
The biggest thing it does is itsaves you one year of tax on an
RMD, if all else being equal,if you don't plan for anything.
So, the RMD agechange is really big.
And what they didn't do here,what I expected them to do,
(14:35):
was change the stretch ruleagain, but that did not happen.
So, that was kindof a good thing.
So, this was kind ofsomething that Congress
actually helped you with.
This is a good changefor most retirees.
Dave Schmidt (14:44):
Have you come across these changes
recently with your clients?
Have you started planningfor these changes already?
Josh Bretl (14:51):
We've been talking about them.
I mean, we're recording thisin the third week of January,
so we haven't had a lotof chance to implement it.
But we have a client, theyare 10 days apart in age.
Her husband turned 72 onDecember 28th, and she
turned 72 10 days later.
Now, he has to takehis RMD, she does not.
And she's on top of this andshe emailed us right away
(15:13):
and said, "Does this meanI don't have to take it?"
And we said, "Yeah."
Actually, it did change ourplanning for her because if
you have to take an RMD, youwant to plan that into cash
flow and do all that stuff.
So, it was really interesting.
It was kind of fun to get that.
But no, we are activelystarting this already.
And most of the plansthat we do, the own
your retirement planningprocess takes taxes into
(15:33):
consideration heavily anyways.
And what this does is thisactually gives us a little bit
more control, which is fun.
Dave Schmidt (15:39):
And you love control.
You just said it.
Josh Bretl (15:41):
I don't love my, actually, I do.
I'm a control freak.
But I like when myclients have control.
I like when when there's nothingraining over them that could
spoil what we believe could bethe best part of their lives.
Dave Schmidt (15:54):
Own it, baby.
Josh Bretl (15:55):
Own it, baby.
Now, some other changesthat occur, and I'm going
to stick with the RMD front.
This is minor, but if you didnot take your RMDs, the penalty
for not taking it used to be50% of the RMD plus the tax.
Dave Schmidt (16:13):
So if your RMD was five grand.
Josh Bretl (16:16):
Let's use a bigger number.
A hundred grand.
Dave Schmidt (16:18):
Is that even a thing?
Josh Bretl (16:20):
Oh yeah.
We have clients with hundredgrand RMDs all the time.
Dave Schmidt (16:22):
Whoa, okay.
Oh, they'd have a$50,000 penalty?
Josh Bretl (16:25):
$50,000 penalty for missing it.
So, on 10 grand, it'sa $5,000 penalty.
Even that, that'snot a small penalty.
I mean, fivethousand's a big deal.
And 50 was the biggestpenalty the IRS imposed.
Now, what they've done isthey've reduced it to 25, and
if you actually fix it, they'llreduce it even farther to 10.
Now, this looks like a goodthing, but most people who don't
(16:49):
take their RMDs just forget.
And the IRS was actuallyfairly friendly with this.
The first time, theywould usually waive the
penalty if you made it up.
If you talked to them andsaid, "Oh, I'm so sorry, I
won't do it again," they'lljust say, "Don't do it again,"
and they'll waive the penalty.
But they've dropped it to 25and they've actually put some
caveats in how much they'regoing to reduce it even further
(17:09):
if you actually do fix it.
So, I think what's goingto happen is they've
lowered the penalty, butI think they're going to
enforce it a lot more now.
Dave Schmidt (17:16):
Yeah, makes sense.
Get that 10%, right?
Josh Bretl (17:19):
Yeah.
So, they're going tomake sure they actually
get your RMD there.
This next one is also bigfor more pre-retirees,
especially those that gotmy Illinois tax tip on the
401k contribution podcast.
Dave Schmidt (17:35):
Hashtag Josh tips.
Josh Bretl (17:37):
But they've changed the catch-up contributions.
And this one's kind of fun.
In 2023, if you're overage 50, you could actually
save an additional $7,500annually into your 401k.
And that's, they've alwayssaid that at over age 50.
But now, they've addedsome additional layers.
If you're over 62, 63 or64 in 2023, the catch-up
(17:58):
amount increases to $10,000.
And that means you coulddefer a total of over 32,000
bucks in your 401k and 403[b].
Now, that's a big deal.
Dave Schmidt (18:09):
Not only is that a big deal, I'm glad I have
show notes because I'm sittinghere thinking you said ketchup.
Like Heinz ketchup.
"You can save $10,000in Heinz ketchup?
My goodness."
Thank goodness Erin cameup with these notes.
Josh Bretl (18:23):
Yeah, thank goodness.
It is not the K-E-T ketchup.
It is the catch, like a ball.
Dave Schmidt (18:29):
Catch hypen up.
Josh Bretl (18:30):
Yeah, catch-up.
Like when I would startrunning down the street.
"Come on Dave, catch up.
You're not that far behind."
Dave Schmidt (18:36):
yeah, right, because, I mean, you are swift.
Josh Bretl (18:39):
So fast.
Some other things that,if you're still working,
and now, remember, thecatch-up contribution was
important because, again,you're tax arbitraging
in your working years.
Tax arbitraging.
Erin didn't put thatword in the notes.
Dave Schmidt (18:54):
Man.
Guy has one gallbladder removedand all of a sudden he's Mr.
Thesaurus.
Josh Bretl (19:01):
That's has never been my nickname.
But they've also freed upsome privileges to Roth
401ks and Roth 403[b]s.
So, there is some rules nowwhere companies can also make
their matching contributionsas a Roth, which will
benefit a lot of people.
And then, the otherthing with Roth 401ks.
(19:25):
It's funny, Roth IRAshave never had RMDs.
There's no RMDs for a Roth IRA.
You can leave it in thereas long as you want.
But Roth 401ks did.
So if you had a Roth 401k,you did have to do an RMD.
And they've gotten rid ofthat, so now, those rules equal
the Roth IRA rules, which Ithink is probably a good idea
and will save some confusion.
(19:48):
This next one probablywill impact younger people.
So, maybe our listeners'children, or if we have
some young hip listeners.
But student loan matching.
Student loans have become areally big deal, and it's going
to allow companies to match...
If people can't put money intotheir 401ks or 403[b]s because
they're paying off studentloans, that means they're
(20:09):
not getting the matches thatcompanies provide for that.
So, this allows people tospend that money and pay
off their student loans,and still get the matching
contributions with that.
Dave Schmidt (20:21):
I feel like this came up recently.
Was it on our last podcastwe were talking about this?
Or maybe, I don't know.
So, what you're saying is anemployee can make a student
loan payment and their employermay match that student loan
payment and match their 401kto whatever their rules are?
Josh Bretl (20:38):
So, let me use an example here.
If you were to pay $3,000 toyour student loan and you don't
put money in your 401[k] becauseyou need to pay off your student
loan, that would eliminate yourability to get the $3,000 match
if your company allowed one.
But it makes the ruleswhere the company can
still give you the match.
Now, it doesn't go to pay offyour student loan, but it does
(21:00):
go into your 401[k] there.
But it's a pretty cool thing.
It's out there.
Dave Schmidt (21:05):
I see.
And so, that's why yousaid it applies to younger
folks because, yeah,typically retirees won't
have a student loan still.
Unless, of course,they've taken the same
harmonica lessons as me.
Josh Bretl (21:17):
Oh, you took expensive harmonica lessons.
Dave Schmidt (21:19):
200 grand in debt because of it.
Josh Bretl (21:22):
But you now, I mean...
Dave Schmidt (21:25):
I can play Hot Cross Buns
like nobody's business.
Josh Bretl (21:31):
The last one here, and the last little nugget
has to do with 529 accounts.
This is not aretirement account.
529s are collegesavings vehicles.
And they are tax-freecollege savings vehicles.
So, what happens is a parentor a grandparent, or sometimes
even yourself, you would putmoney away, like a Roth IRA,
and it would grow tax-free.
(21:52):
And if you took it out forcollege or some sort of higher
education expense, that moneywould all come out tax-free.
Now, the problem was ifit didn't come out for
an educational expense,the growth was taxed and
you paid a 10% penalty.
So, people were nervous,like, "What if my kid
doesn't go to school?"
Or, "What if theydon't use it all?"
And it was hurting themsaving for college.
(22:14):
So what they did in this,and this is kind of a neat
thing, is if your 529 ismore than 15 years old,
you can actually roll, andthis is limited to 35,000
bucks, it's a lifetime limit,35,000 bucks, to a Roth IRA.
Dave Schmidt (22:28):
Penalty-free?
Josh Bretl (22:28):
Penalty free, it's pretty cool.
So, that actuallydoes two things.
It makes 529s, in my opinion,a little bit more valuable,
as well as give you somefreedom of flexibility
afterwards with that.
Dave Schmidt (22:40):
So, assuming the laws for Secure Act 2.0 stay
in place, if we were to starta 529 for Landon, then when
he turns, whatever, 18, 20,well, 15 years, 23, and he's
not going to college, he couldjust roll it over into a Roth?
Josh Bretl (22:56):
Yeah.
You could roll it rightinto a Roth IRA for Landon.
If he doesn't use itfor school, he can use
it for his retirement.
Dave Schmidt (23:02):
Because he may follow in my footsteps and
be professional Rampageist.
You never know.
You never know.
Kids these days, youknow what I'm saying?
Josh Bretl (23:07):
Rampage as in the Nintendo video game?
Dave Schmidt (23:09):
Yeah, we talked about that last week.
I'm going to be aprofessional Rampageist.
That's how I'm going to turn myhobby into a moneymaking thing.
Remember?
That was your questionfrom last week.
Now, it was a day beforehaving your gallbladder out.
You may have forgotten.
Josh Bretl (23:21):
Maybe I was nervous.
Maybe I didn't hear you.
Dave Schmidt (23:23):
Maybe.
But you said, "If you had totake one hobby and make money
from it, what would it be?"
And I said, "Playing Rampage."
Josh Bretl (23:32):
it was forgettable, apparently.
Dave Schmidt (23:33):
Oh, apparently.
Well, Michael in our officethought it was a great
idea and he's going tohelp me start my own Twitch
channel, whatever that is.
Josh Bretl (23:40):
Well, Rampage is a great video game.
Dave Schmidt (23:41):
Great.
Greatest ever.
Wait, did you just commit togetting one in the office?
Josh Bretl (23:45):
No.
Dave Schmidt (23:46):
Oh.
Because they're only...
Okay.
Well.
Josh Bretl (23:48):
It's a great video game.
I don't play video games.
You're the video gameathlete in this relationship.
Dave Schmidt (23:51):
That's true.
Josh Bretl (23:55):
I'm going to give one last thing, and I don't
know enough about this to goin depth, in detail, but it has
the potential to be really neat.
Qualified charitabledistributions.
This is a tax savings tool thatwe've used for a long time.
It allowed you to takeyour RMDs and donate them
to a 501[c][3] charity.
So, it allowed you to geta bigger tax deduction.
(24:17):
It helps you quitea bit, tax-wise.
But you weren't allowed todonate it to, there's a lot of
charitable trust and there'ssome really cool charitable
planning to do with charitableannuities and things like that,
but that was not eligible.
Well, a lot of them havebecome eligible now.
So, this makes some charitableplanning outside of your
IRAs a lot more beneficial.
(24:38):
So, we will be digging intothat quite a bit as we get
into Secure Act 2.0 andall of its exciting parts.
Dave Schmidt: Sounds like a hoot. (24:47):
undefined
We got 529s and PizzaPizzazzes and QCDs, right?
That's the acronym forwhat you just said.
I mean, I don't know, but-
Yeah.
What?
What?
Okay.
Hey Mr.
Josh, let's take a break.
You've been talking for solong and my ears are sore.
(25:09):
Let's not make them snore.
Listening shouldn't be a chore.
So let's get to know Josh andDave and watch our ratings soar!
Josh Bretl (25:17):
Buggawww!
Dave Schmidt (25:18):
Oh, yes.
I like it.
Spice it up a littlebit there, hey Josh?
Josh Bretl (25:23):
No, I don't remember what I did last time, so-
Dave Schmidt (25:25):
But you said like "Buggawww!"
with a B, like "Buggawww!"
as opposed to like "Kakawww!"
I like it.
I think you're starting a trend.
Josh Bretl (25:31):
Well, it was a different bird this time.
Dave Schmidt (25:33):
Oh, right.
birdnoises.com.
Josh Bretl (25:36):
So, when this goes up onto a video
podcast, and people seeour beautiful table and my
giant freaking water bottle.
Dave normally has thesepod decks where there's
random questions in herethat I pick out and I ask.
And some of them arereally inappropriate, but
I didn't open it this time.
I actually came upwith my own question.
Dave Schmidt: Aren't we fancy, Mr. (25:56):
undefined
Tax Guy?
Josh Bretl (26:00):
That I'm going to ask you.
Dave Schmidt (26:00):
All right, yeah.
Josh Bretl (26:01):
And here's the question.
Dave Schmidt (26:03):
Let's hear it.
Josh Bretl (26:04):
I want you to recommend one podcast to our
listeners, and it can't beours because they're obviously
listening to this already, thatyou think they would enjoy.
Dave Schmidt (26:15):
Wow, what a hard question, because
there's so many genres.
Josh Bretl (26:18):
Just one.
You can only pick one.
I'm now going through mypodcast list to see what I got.
Dave Schmidt (26:22):
Yeah, there's so many at top of mind.
This is really hard becauseI'm an avid podcast listener,
as are you, and there'sso many different genres.
And I mentioned it in an earlierpodcast, but Bone Valley.
Gilbert King has writtena previous book called, I
think, Murder in the Groveor something like that.
But Bone Valley is a fantasticpiece of storytelling about
(26:45):
a wrongfully convictedindividual who's been in
prison for the last 35 years.
It is just so welldone on every level.
It's heartbreaking, it'sinfuriating, it's uplifting.
It's everything.
Bone Valley.
Josh Bretl (27:01):
That's a fun one.
I like that one.
Dave Schmidt (27:02):
Yeah, it's I guess technically a true crime.
Although, I mean, not tospoil anything, but they solve
two murders in this podcast.
Josh Bretl (27:11):
So, I really thought you were going to do SmartLess.
I really thought that'swhere you were going
to go with that one.
So, I didn't pick that one.
I went with one, and I juststarted listening to this one
in the last couple months.
It's called RevisionistHistory by Malcolm Gladwell.
So, Malcolm Gladwell haswritten a ton of books, I think
University of Chicago economist.
Fascinating guy.
(27:31):
But what he does is he andhis team go out and they find
specific topics, kind of likehis books, and they research and
produce the heck out of them.
And he does a great,they're about an hour
long, a great story.
I mean, you learn so muchand it's fascinating.
You usually feelgood afterwards.
I like feel-good podcasts.
But it's really, reallyinteresting as you dig
(27:53):
into the inner workingsof different things.
Sometimes what you thinkto be true isn't always
true, including in historyand stuff like that.
So Revisionist HistoryI think is fascinating.
It's a fun podcast foranyone to listen to.
Dave Schmidt (28:03):
I've heard that name before.
When you said it, I think,Revisionist, I think of
a fictional podcast, likethey're going to take a
story that we all think weknow the story to and then
put their own spin on it.
But doesn't sound likethat's necessarily...
Josh Bretl (28:18):
No.
Sometimes it's what happenedin the past, like a big
event, and they want toknow, did it change history?
Is something differentbecause X happened?
And they go back and theyanalyze what's different, how
it's different, stuff like that.
It's really cool.
It's a neat podcast.
Dave Schmidt (28:32):
He actually, did I tell you he reached out?
He's going to do an episodeon the Retirement Equals
Freedom podcast in 10years, and just how much
we have changed history.
Josh Bretl (28:39):
Wow.
Dave Schmidt (28:40):
Yeah, I know.
We're pretty awesome.
Josh Bretl (28:41):
That's amazing.
I mean, he's writing itbefore we even revise history.
Dave Schmidt (28:44):
I know.
It's so meta.
Speaking of which, Daverelates to retirees, yeah!
Josh Bretl (28:55):
You had to stop me from talking
over at the end of that.
Dave Schmidt (28:57):
You were about to.
Josh Bretl (28:57):
Oh yeah, without a doubt, because
I got to get my word in.
Dave and I right now aresharing an office that
doesn't have a table in itbecause the vendor won't
give us the table apparently.
You wouldn't mention it, butI'm getting a little bitter.
But I walk in here, andDave was taking notes on
the podcast show notes, andI saw him working on it.
And he says, "DR2R."
(29:18):
And I look at him.
I was like, "What?"
"DR2R."
I go, "What's DR2R?"
He goes, "Daverelates to retirees."
Dave Schmidt (29:28):
Wait, are you?
Hold on, are you-
Josh Bretl (29:29):
I was impressed by it.
I never heard that before.
Dave Schmidt (29:31):
No.
Oh my gosh.
This is two times, one episode.
You made a whole spielabout this last episode.
Josh Bretl (29:39):
Oh yeah, I did.
I remember now,it's on your notes.
Dave Schmidt (29:42):
Oh my gosh.
So you really were not inthe right state of mind
in episode 30, clearly.
Josh Bretl (29:46):
No.
People have to realize, whenI do the podcast, once we
finish hitting record, you takeit from that point forward.
Dave Schmidt (29:55):
Yeah, it's true.
Josh Bretl (29:57):
Until it releases.
I don't hear it untilall of our fans hear it.
Dave Schmidt (30:00):
Okay, that's true.
Josh Bretl (30:01):
And so, you spend a long time listening
and editing and I don't.
So, it goes completelyout of my mind.
And I actually haven't finishedour last episode yet, so I
haven't gotten to that part yet.
I apologize.
Dave Schmidt (30:13):
That's fair.
That's fair.
Josh Bretl (30:15):
So Dave, give me your DR2R.
Dave Schmidt (30:18):
Oh, DR2R.
This is, again, like last week,this is a really simple thing
for me because I get retireeson a very deep level here.
Josh Bretl (30:25):
Ramageist.
Dave Schmidt (30:26):
Like every good DR2R, I have to stack my papers
because it's going to be deep.
But Secure Act 2.0, I feellike we mentioned it earlier.
If you're not really payingattention, or if you don't
have somebody paying attentionfor you, it could have
slipped under the radar.
Josh mentioned it's not reallysweeping, huge changes that
(30:47):
happened like Secure Act 1.0.
But they are subtle changesthat could make a huge
difference in any number ofthings financially-related.
Two of my favorite video games,I said it, I'm going back to
video games, ToeJam and Earl.
Josh Bretl (31:03):
There's a video game called ToeJam and Earl?
Dave Schmidt (31:05):
ToeJam and Earl.
Josh Bretl (31:06):
Did that come up when we were kids?
Dave Schmidt (31:07):
Yeah.
Oh yeah.
And I'm going to gowith Rampage again.
But these two video games,they were very, and are
very, simplistic, are,because I still play them.
Where, there'd only bemaybe 15 to 20 different,
air quote, "worlds."
But every time you wouldvisit the world, some
things would be different.
(31:27):
The hidden paths wouldbe different, the enemies
would be different.
And it's so identical to theSecure Act 2.0, where retirees
are pretty comfortable withthe changes in 1.0, right?
But if they're notpaying attention, boom.
2.0 sneaks up and hits them.
Either you got to be payingattention yourself, or
have a really good advisor.
(31:48):
In my case, I was the advisorto my sister Julie, whom was
kind of like you, the retiree.
I was an expert.
She would play ToeJamand Earl with me.
And if she wasn'tpaying attention.
Josh Bretl (31:59):
Did you just insult the retirees?
Dave Schmidt (32:00):
No, not at all.
Why would I?
Josh Bretl (32:02):
I was worried.
You compared them to Julie.
Are you in trouble?
I even thought, "Oh, snap."
Dave Schmidt (32:07):
So, I was like Julie's advisor with this.
I'd be like, "Jules, look.
You think you may know thisworld, we were just here.
But there's somedifferent things.
There's an oogieboogie over there.
There's one of those fatopera singers who's going
to knock you off the stage.
There's the lawnmowerman who runs around."
So, I get it.
Familiar with ToeJam and Earl.
Familiar with Rampage.
(32:27):
But, I'm not payingattention, I can get hit.
I don't know if that laughwas because you're just like,
"Wow, Dave nailed it," or ifyou're like, "How the heck am
I going to Full House this?"
Josh Bretl (32:40):
You know, as you were talking, I was
also thinking, how can Igo back full circle from
our rambling beginnings?
And I'm going to do it.
Dave Schmidt (32:53):
I never doubted you.
Josh Bretl (32:53):
So, they found out I needed to have my
gallbladder out because theywere looking at something else.
And as they were imaging mystomach, and they weren't even
looking at my gallbladder,but they said, "Hey, that
young fellow's got somepolyps on his gallbladder."
Lucky for me, those doctorswere paying attention.
They said, "Hey, we'regoing to monitor that."
(33:14):
Well, the polyps got alittle bit bigger and they
said, "Young fellow, you gotto have those polyps out."
And really, they wantedthe whole gallbladder.
Like your ToeJam andFootball or whatever.
Dave Schmidt (33:24):
ToeJam and Earl.
Josh Bretl (33:25):
ToeJam and Earl.
I didn't know whatI was looking for.
And luckily, my doctor did.
She's amazing.
And she was very calming.
And she said, "Theseare the things you're
going to have to do."
Lucky for Julie, that she hadyou to walk her through where
the oogie boogie was goingto be in ToeJam and Earl.
And to make it a much morerealistic, real world example,
(33:49):
you actually hit the nailon the head when you said a
retiree who has an advisorlooking out, and how you can
be aware of changes that occur.
And when a change occurs, andchanges occur all the time,
you either are going to takeadvantage of it or it's going
to take advantage of you.
And when you have that goodadvisor, you can make sure that
(34:10):
something like Secure Act 2.0isn't an oogie boogie that is
going to come out and get you.
And so, when we say thatour mission statement is to
give clients the confidenceto make retirement the best
part of their lives, what wemean, a lot of that is that
you watch the whole picture.
There's all sorts ofthings that could come on.
And we love to stand by theirside and make sure that even the
(34:33):
oogie boogie of Secure Act 2.0.
Dave Schmidt (34:35):
And the mailbox monsters and the
rabid chickens that get you.
Josh Bretl (34:40):
Oh, we don't do anything with rabid chickens.
Nothing.
Dave Schmidt (34:42):
Don't want to mess around with that.
Josh Bretl (34:44):
No.
Dave Schmidt (34:44):
So, that was a great full house moment.
I'm going to lightenthings up here.
Have you noticed when wesend out those podcast
email club emails, thatI usually put a random
montage of images in there?
Josh Bretl (34:57):
Yeah.
It's really cool.
Dave Schmidt (34:59):
Yeah.
So, the montage is usuallyabout the fun things
that we talk about.
So, ToeJam and Earlis definitely going
to be in the montage.
Should I put some images ofyour polyps in there too?
Josh Bretl (35:11):
My gallbladder polyps?
Dave Schmidt (35:12):
I mean, do we have any images of your
gallbladder after it's removed?
Like it's super gory and gross?
Josh Bretl (35:18):
Some more behind the scenes stuff here, and this is
kind of fun for our listeners,if they're not looking at
the emails or the show notesinside of each show page.
We have a lady, Leslie, wholistens to all of these and she
writes up the show notes for us.
And I've never met Leslieone on one, but she takes
(35:40):
what we do and she makes itsound really, really good.
I can only imagine what she'sgoing to do with this episode.
But she makes these amazingnotes, and with your montage
and also all of her notes,it has links to every single
thing that we talk about.
So, if people aren't visitingthe show page or reading the
emails, this is a reminder.
(36:00):
Sign up for the RetirementEquals Freedom Podcast Club
emails, because Dave putsa lot of work into them
and they are fantastic.
Dave Schmidt (36:08):
They're very entertaining, probably more
entertaining than our show.
And rumor has it in thenext few months, they're
going to be even better.
I won't go into that now.
Josh Bretl (36:17):
Is that when our table gets here?
Dave Schmidt (36:18):
Yeah, right.
FSRwealth.com/podcast.
Dear friends, dear friends.
Please get onto our email club.
Let's just say Josh andI have more time together
these days and some funthings will be happening.
He may not know about them, hemay not approve of them, but
they're going to be happening.
Josh Bretl (36:35):
Or if you told me, I forgot about them
apparently, like our last DR2R.
Dave Schmidt (36:38):
Yeah.
It's true.
You know what Ihaven't forgot about?
These Girl ScoutCookies I ordered from
your daughter, Maggie.
When can I expect them?
Josh Bretl (36:45):
We have so many random stories in this podcast.
So Saturday, Missy, my wifeis in charge of the Girl Scout
Cookies for the entire troop.
And Saturday is when shepicks up the Girl Scout
Cookies for the whole troop.
And we have to be able topick up somewhere around 1900
boxes of Girl Scout Cookiesand bring them back to our
house on Saturday morning.
Dave Schmidt (37:06):
Wait, that number's made up.
Josh Bretl (37:07):
No, it's huge.
It's a huge number ofGirl Scout Cookie boxes.
So, I'm going to guess nextweek, Dave, you're going
to have Girl Scout Cookies.
Dave Schmidt (37:16):
I was just about to do this.
ALF (37:18):
Why must you needlessly complicate everything?
Dave Schmidt (37:21):
But when you dropped that 1900 number?
Josh Bretl (37:24):
It's a stupid number, what she told me.
Dave Schmidt (37:27):
I ordered four and I thought that was a lot.
Josh Bretl (37:28):
I'll try and take a picture of our
living room after she picksthese up so we can see it.
It's unbelievable.
Dave Schmidt (37:34):
I can't wait.
I can't wait.
Well, I look forward to the GirlScout Cookies, especially the
new one that they introduced.
I bought a box of them.
It's the brownie shovedinside of a cookie.
Josh Bretl (37:43):
There's another new one that's being
released on the secondwave of Girl Scout Cookies.
I didn't know,there's two waves.
There's an in-personordering wave and there's an
online, I'll ship it to youordering wave, and it's a
raspberry chocolate cookie.
Oh, it looks amazing.
Dave Schmidt (37:57):
Oh man.
Good thing I stillhave my gallbladder.
Debbie, I hope you have yourgallbladder and I hope you
ordered your Girl Scout Cookies,because we are going to say bye.
Josh Bretl (38:07):
Bye.
Dave Schmidt (38:07):
Thin Mints, Tagalongs, Do-si-Dos.
Josh Bretl (38:13):
I like Thin Mints in a freezer.
Dave Schmidt (38:14):
Samoas.
Yeah, Thin Mints in a freezer.
Josh Bretl (38:17):
One or two of those at the end of the
night is just the best.
Dave Schmidt (38:20):
Oh man.
The best.
Oogie Boogie (38:22):
Oogie boogie boogie.
Alex (38:24):
Hashtag tax nerd.
Whether we're talking about gallbladders
or the Secure Act 2.0,there's really no such
thing as oversharing, right?
In addition to finding out howJosh's faring post-surgery,
we're also getting athorough debrief on many,
new secure act provisionsadopted at the end of 2022.
Josh Bretl (00:20):
To be quite honest, it doesn't have quite the
sweeping changes that 1.0 had,but it is pretty massive still.
So, here's the biggestchange, SECURE Act 1.0,
it changed the RMD age.
It has been 70 anda half for years.
And Secure Act 1.0,increased that to 72.
(00:41):
Secure Act 2.0, effective2023, raised that to 73.
Dave Schmidt (00:48):
You'll also learn why tax strategy is key to
maximizing assets in retirement.
Josh Bretl (00:54):
Because it's a forced income upon you,
that means that more of yourother assets could be taxed.
That could raise yourcapital gains rate.
It could change how much ofyour social security is taxed.
It could put you ina higher tax bracket.
This gives you more timeto take advantage of tax
bracket management, toutilizing the tax brackets.
And another opportunityfor you to take back some
(01:17):
control away from Uncle Sam.
Dave Schmidt (01:19):
We want your retirement to be the
best part of your life.
In order for that to happen,you need to be proactive and
you need to own your retirement.
Josh Bretl (01:28):
I like when my clients have control.
I like when there's nothingraining over them that could
spoil what we believe could bethe best part of their lives.
Dave Schmidt (01:36):
Own it, baby.
Josh Bretl (01:37):
Own it, baby.
Dave Schmidt (01:39):
This is The Retirement Equals
Freedom Podcast.
The host of the show,Josh Bretl, is the owner
of FSR Wealth Strategies.
For the last few decades,he's been helping fine folks
like you make retirementthe best part of your life.
And me?
Hi there, I'm Dave.
Josh's longtime friend,co-host, and fan of
(02:02):
SpaghettiOs with Meatballs.
All right, my intro hasgone on long enough.
Let me let you let me, endthis introduction so we can
learn all about secure Act 2.0.
FSR Wealth Management is aregistered investment advisor
located in Elmhurst, Illinois.
Information and opinionscontained in this audio
have been arrived atby FSR Wealth advisors.
(02:23):
All information herein isfor informational purposes
and should not be construedas investment advice.
It does not constitute an offer,a solicitation or recommendation
to purchase any security.
FSR is not providing legal,tax, accounting, or financial
planning advice in this audio.
These views are as of thedate of this publication
and are subject to change.
(02:55):
Let me get into the beatbox.
Josh Bretl (03:02):
So Dave, last week.
Dave Schmidt (03:04):
Yeah.
Josh Bretl (03:05):
I had the pleasure of, oh, it's two
weeks ago now, I think?
When did I have mygallbladder ripped out?
Two weeks ago.
Dave Schmidt (03:12):
Yeah.
Josh Bretl (03:13):
This was planned.
I had it scheduled, Idon't know, a month,
month and a half out.
And I wasn't having gallstones,but it needed to come
out for medical reasons.
And I never had surgery before.
So, I was at Elmhurst Hospital.
It went laparoscopically.
I started at 9AM.
I was home in bed, minus oneorgan, at 1PM that afternoon.
Dave Schmidt (03:34):
That's efficiency.
Josh Bretl (03:35):
It was amazing.
they have you all anesthesiadout and everything, and they
wheelchaired out, and I rememberthinking, it's kind of weird
to leave the hospital withless organs than you came in.
Dave Schmidt (03:47):
Now, how do you know that you left
with no less than one?
How do you know that?
Josh Bretl (03:53):
It's a good question.
I have no idea.
It's in my medical records.
I got the hospitalbill really fast, and
that was kind of crazy.
And I only got billedfor one removal, so I
guess that might be it.
So, my kids, they know whata bladder is because it helps
them pee, and we have kidswho are at the age where,
if there's some sort of jokeabout a bodily function,
(04:15):
they're going to make it.
They have no ideawhat a gallbladder is.
So when I got home, A, they weresurprised I could still pee.
And B I'm also a humanjungle gym, as you I'm
sure are to Landon at home.
And one of the few requirementsI had afterwards was, don't
lift anything more than eightpounds, and that means my
children, without a doubt.
And Alex was walkingaround telling everyone
(04:36):
I had a bladder infectionand it had to come out.
So, it was kind of funny.
Dave Schmidt (04:40):
I mean, you have some bottles of wine that
weigh more than eight pounds.
I've seen your cellar.
So, how do you handlethat situation?
Josh Bretl (04:47):
Well, one of the things you're not supposed to do
very heavily after gallbladdersurgery is drink alcohol.
So, we've just notbeen having it.
So, that works.
Dave Schmidt (04:56):
Well, Josh, we're all thrilled that
you're feeling better.
And look, I'm going to say it.
You lost some weightand you look great.
Josh Bretl (05:03):
I did.
Actually, I thinkpeople are freaking out
that I've lost weight.
My parents have been inFlorida since Christmas, and
they came back this week andthey're like, "Oh my God,
you've lost so much weight."
I think they're worriedit was the surgery.
I had actually lost alot of weight before the
surgery, actually trying.
I just didn't look like it.
Now they ripped an organ outand I've continued to lose
weight, which is intentional.
(05:23):
This isn't some sortof medical thing.
Dave Schmidt (05:26):
No, I just found it weird that my wife scheduled
me for a gallbladder surgery andI don't even need it removed.
Josh Bretl (05:33):
Oh, Carla.
Dave Schmidt (05:34):
Oh, Carla.
I have decided to stop makingcomments and references
to our new podcast table.
I'm doing it right now,but this is the last time,
because we are continuouslydisappointed by our vendor.
So, here we are.
Video, people, whichis coming in 2023.
Josh Bretl (05:50):
Excited.
Dave Schmidt (05:50):
We're still at the same old, same
old boring table for now.
Josh Bretl (05:54):
So, one more fun thing.
You and I justattended a baby shower.
Dave Schmidt (05:58):
We did.
Josh Bretl (05:59):
Yeah.
So, Brian from my office,our office, his wife
Anna is expecting theirfirst on Valentine's Day.
Dave Schmidt (06:08):
Yep.
Josh Bretl (06:08):
It's all the little boy, they're having a
baby boy, and all the books.
And it kind of bringsback the memories of the
books we used to read.
Dave Schmidt (06:16):
Afterwards I messaged Carla and I said,
"We just had the baby shower,"and I said, " Brian got a Baby
Brezza from Josh and his dad."
And I'm like, "That bringsback so many memories."
And Carla and I, we can'tremember what we had yesterday
for lunch or breakfast, but sheremembers that the first time
our Baby Brezza broke down, Idrove in a snowstorm to Buybuy
Baby to get a new one, becausethat's how desperate we were,
(06:37):
because that thing was awesome.
So then we started reminiscingand like, yeah, you miss those
days, but you kind of don't.
Josh Bretl (06:43):
There's very few random small appliances that
I recommend, that I will belike, "You have to buy this.
It's the best thing ever."
One is a Pizza Pizzazz.
Dave Schmidt (06:52):
I was just going to say.
Josh Bretl (06:53):
One's a Pizza Pizzazz.
It revolutionizes frozen pizza.
And two is the Baby Brezza.
If you're having a baby,this thing is unreal.
And we had twins.
It was literally a lifesaver.
Dave Schmidt (07:06):
Oh, without a doubt.
The Pizza Pizzazz did topizza and other frozen
goods what the Mike TysonGrill, what was it called?
Josh Bretl (07:15):
No, the George Foreman.
Dave Schmidt (07:16):
George Foreman Grill did to processed meats.
I mean, it's revolutionary.
By the way, we need to get oneof those in the office, Josh.
Josh Bretl (07:22):
A Pizza Pizzazz or a George Foreman?
Dave Schmidt (07:23):
Yeah.
A Pizza Pizzazz.
50 bucks.
Josh Bretl (07:25):
Well, I actually have a Pizza Pizzazz
dilemma a little bit.
Dave Schmidt (07:27):
Oh no.
Josh Bretl (07:28):
Yeah.
People tuning in for SecureAct 2.0, because, when you
wrote this out, and we'retalking Pizza Pizzazz and
babies and gallbladders.
Dave Schmidt (07:35):
Yep.
It all ties together nicely.
Josh Bretl (07:36):
We're going to wrap it together with
one big bow at the end.
But you know we're redoing ourkitchen, and we have had our
Pizza Pizzazz now for 20 years.
We got it before we were evenengaged, and we just celebrated
our 18th wedding anniversary, sowe've had it for about 20 years.
It just broke.
Dave Schmidt (07:55):
No.
Josh Bretl (07:56):
It just broke.
Just, the motor wasn'tturning on it anymore.
I mean, we use this thingall the freaking time.
I mean, it was an integralpart to our lives.
And we're good cooks.
This was an integralpart to our life.
And now the question comes,as we put our new kitchen
back together, do weinclude the Pizza Pizzazz?
Dave Schmidt (08:17):
Here's my advice.
And Missy, you're notgoing to listen to this,
but Josh can tell you.
It's either a PizzaPizzazz or a pizza stone
oven in your backyard.
It has to be one of the two.
Whatever you go for.
Josh Bretl (08:30):
I got a story for that one too, came up this
weekend, but I don't know if wehave time for that right now.
Dave Schmidt (08:33):
Maybe episode 32.
Josh Bretl (08:35):
Yeah all right.
Dave Schmidt (08:39):
Are you surprised that I've heard nothing about
Secure Act 2.0 being passed?
I'm being somewhatfacetious here.
Because it seems prettyimportant, but yet no
one's talking about it.
Josh Bretl (08:48):
Well, it's pretty important, but you also
just read Tim Burton news.
Dave Schmidt (08:52):
Yeah, that's true.
Josh Bretl (08:52):
There's not a lot of news that you
watch that I think will berelevant to Secure Act 2.0.
Dave Schmidt (08:58):
I don't like the kid, but he's got a point.
Josh Bretl (09:00):
I mean, I like you when you have a point,
because Secure Act 1.0 got aton of press and 2.0 did not.
It did not get asmuch of a press.
And to be quite honest, itdoesn't have quite the sweeping
changes that 1.0 had, butit is pretty massive still.
It's quite the bill.
Dave Schmidt (09:18):
Now, to be fair, it was passed right before
Christmas, or a few days before.
Josh Bretl (09:22):
Yeah, I think we've been talking about
it for so long that peopleare just tired of it.
December 29th, it was actuallyright before New Year's.
Dave Schmidt (09:29):
Oh, okay.
Josh Bretl (09:29):
So, I mean, this is brand new.
And we're still digestinga little bit, but
there's a lot in there.
Dave Schmidt (09:35):
And just to recap, we did an episode,
it was podcast episode21, where we talked about
the first Secure Act.
So, recommend you goback and listen to that
and then come back here.
Josh Bretl (09:44):
Now, that was back in September.
And I only know that becauseErin put notes in here for us.
When I read this, and I'mgoing to apply the Secure Act
2.0 to retirees for the mostpart, and what does it mean to
them, and how does it impactthem and their retirement?
And where we can, we'llmake some suggestions.
But like every goodeducational topic, please
(10:07):
make sure you talk to someonewho knows your situation.
If you have questionsabout it, don't wait.
I mean, this can make amajor impact and it can
have some benefits too.
So, as we talk to all ofour clients, it's kind
of fun to see how we canincorporate these different
things into their lives.
Dave Schmidt (10:23):
Should they email me with questions?
Josh Bretl (10:25):
Oh yeah, without a doubt.
Yeah.
Do not email Davefinancial questions.
Secure Act 2.0, December 29th.
And a lot of it expandsupon the original Secure
Act 1.0, and Secure Act 1.0is a pretty big difference.
So, here's the biggest change,and we're going to spend the
most time talking about this.
(10:46):
But Secure Act 1.0, so, theoriginal Secure Act, I mean,
the OG, it changed the RMD age.
So, let's take a stepback and talk about RMDs.
RMDs stands for requiredminimum distributions.
That is the age at which theIRS requires you to start
(11:06):
taking money out of your 401ksand IRAs, and they do that so
they can collect taxes on it.
It has been 70 anda half for years.
Decades and decadesit's been 70 and a half.
And Secure Act 1.0, theincreased that to 72.
Secure Act 2.0, effective2023, raised that to 73.
(11:28):
So, for people who wereturning 72 in 2023, you
get a year reprieve.
Dave Schmidt (11:36):
And not four people, F-O-U-R.
For all you people that turn 73.
I just had to makethe distinction.
Josh Bretl (11:42):
I'm going to guess there's more than four,
F-O-U-R people, that aregoing to turn 73 this year.
Dave Schmidt (11:48):
I'm just clarifying.
You never know.
Josh Bretl (11:49):
But thank you for the clar-
Dave Schmidt (11:51):
Sure
Josh Bretl (11:52):
Email Dave your financial questions., He'll
clarify it just like that.
But if you turn 72 in 2023,you do not have to take an RMD.
All right?
You do not have to take it.
Now, if you turned 72 onDecember 31st of 2022, you
still have to take your RMD.
(12:13):
So, that's the rule there.
And that makes sense toyou, because you will
be 73 in 2023 anyways.
But that goes in 2024 now.
Anyone who turns 73 will betaking their RMD at age 73.
Now, they went one step furtherand 10 years from now, I mean,
(12:35):
they made a law that changesan age 10 years from now.
But 10 years from now,the age goes up to 75.
To me, that's kind of funny.
Do you think that'sgoing to stick?
Do you think 10 yearsfrom now, people are going
to be like, "Surprise."
Like, "Oh, we forgotthis age changed."
So, what do you do about this?
How do you takeadvantage of this?
And, Dave you know mybig thing on control.
(12:58):
I always tell people you want tohave control of your situation.
You want to control your future.
And in fact, our entireretirement planning process,
we call it your own yourretirement planning process,
so that you can take controland own your own retirement.
And one of the things that isyour biggest risk is taxes.
Dave Schmidt (13:23):
I mean, the obligatory...
Alex (13:25):
Hashtag tax nerd.
Josh Bretl (13:27):
Thanks Al.
But And the government doeshave a lot of control over you.
So, these RMDs are one of those.
They will force you tostart taking money out.
So what does that mean?
Well, because it's a forcedincome upon you, that means
that more of your otherassets could be taxed.
That could raise yourcapital gains rate.
It could change how much ofyour social security is taxed.
(13:50):
It could put you ina higher tax bracket.
There's all sorts ofthings that could occur.
So, what this does is givesyou more time to plan.
This gives you more timeto take advantage of tax
bracket management, toutilizing the tax brackets.
And this age is anotheropportunity for you to
take back some controlaway from Uncle Sam.
Dave Schmidt (14:11):
And earn an extra year of interest, right?
Josh Bretl (14:14):
You know what, Dave?
That is actually a commonmisconception and it
doesn't really do that.
The biggest thing it does is itsaves you one year of tax on an
RMD, if all else being equal,if you don't plan for anything.
So, the RMD agechange is really big.
And what they didn't do here,what I expected them to do,
(14:35):
was change the stretch ruleagain, but that did not happen.
So, that was kindof a good thing.
So, this was kind ofsomething that Congress
actually helped you with.
This is a good changefor most retirees.
Dave Schmidt (14:44):
Have you come across these changes
recently with your clients?
Have you started planningfor these changes already?
Josh Bretl (14:51):
We've been talking about them.
I mean, we're recording thisin the third week of January,
so we haven't had a lotof chance to implement it.
But we have a client, theyare 10 days apart in age.
Her husband turned 72 onDecember 28th, and she
turned 72 10 days later.
Now, he has to takehis RMD, she does not.
And she's on top of this andshe emailed us right away
(15:13):
and said, "Does this meanI don't have to take it?"
And we said, "Yeah."
Actually, it did change ourplanning for her because if
you have to take an RMD, youwant to plan that into cash
flow and do all that stuff.
So, it was really interesting.
It was kind of fun to get that.
But no, we are activelystarting this already.
And most of the plansthat we do, the own
your retirement planningprocess takes taxes into
(15:33):
consideration heavily anyways.
And what this does is thisactually gives us a little bit
more control, which is fun.
Dave Schmidt (15:39):
And you love control.
You just said it.
Josh Bretl (15:41):
I don't love my, actually, I do.
I'm a control freak.
But I like when myclients have control.
I like when when there's nothingraining over them that could
spoil what we believe could bethe best part of their lives.
Dave Schmidt (15:54):
Own it, baby.
Josh Bretl (15:55):
Own it, baby.
Now, some other changesthat occur, and I'm going
to stick with the RMD front.
This is minor, but if you didnot take your RMDs, the penalty
for not taking it used to be50% of the RMD plus the tax.
Dave Schmidt (16:13):
So if your RMD was five grand.
Josh Bretl (16:16):
Let's use a bigger number.
A hundred grand.
Dave Schmidt (16:18):
Is that even a thing?
Josh Bretl (16:20):
Oh yeah.
We have clients with hundredgrand RMDs all the time.
Dave Schmidt (16:22):
Whoa, okay.
Oh, they'd have a$50,000 penalty?
Josh Bretl (16:25):
$50,000 penalty for missing it.
So, on 10 grand, it'sa $5,000 penalty.
Even that, that'snot a small penalty.
I mean, fivethousand's a big deal.
And 50 was the biggestpenalty the IRS imposed.
Now, what they've done isthey've reduced it to 25, and
if you actually fix it, they'llreduce it even farther to 10.
Now, this looks like a goodthing, but most people who don't
(16:49):
take their RMDs just forget.
And the IRS was actuallyfairly friendly with this.
The first time, theywould usually waive the
penalty if you made it up.
If you talked to them andsaid, "Oh, I'm so sorry, I
won't do it again," they'lljust say, "Don't do it again,"
and they'll waive the penalty.
But they've dropped it to 25and they've actually put some
caveats in how much they'regoing to reduce it even further
(17:09):
if you actually do fix it.
So, I think what's goingto happen is they've
lowered the penalty, butI think they're going to
enforce it a lot more now.
Dave Schmidt (17:16):
Yeah, makes sense.
Get that 10%, right?
Josh Bretl (17:19):
Yeah.
So, they're going tomake sure they actually
get your RMD there.
This next one is also bigfor more pre-retirees,
especially those that gotmy Illinois tax tip on the
401k contribution podcast.
Dave Schmidt (17:35):
Hashtag Josh tips.
Josh Bretl (17:37):
But they've changed the catch-up contributions.
And this one's kind of fun.
In 2023, if you're overage 50, you could actually
save an additional $7,500annually into your 401k.
And that's, they've alwayssaid that at over age 50.
But now, they've addedsome additional layers.
If you're over 62, 63 or64 in 2023, the catch-up
(17:58):
amount increases to $10,000.
And that means you coulddefer a total of over 32,000
bucks in your 401k and 403[b].
Now, that's a big deal.
Dave Schmidt (18:09):
Not only is that a big deal, I'm glad I have
show notes because I'm sittinghere thinking you said ketchup.
Like Heinz ketchup.
"You can save $10,000in Heinz ketchup?
My goodness."
Thank goodness Erin cameup with these notes.
Josh Bretl (18:23):
Yeah, thank goodness.
It is not the K-E-T ketchup.
It is the catch, like a ball.
Dave Schmidt (18:29):
Catch hypen up.
Josh Bretl (18:30):
Yeah, catch-up.
Like when I would startrunning down the street.
"Come on Dave, catch up.
You're not that far behind."
Dave Schmidt (18:36):
yeah, right, because, I mean, you are swift.
Josh Bretl (18:39):
So fast.
Some other things that,if you're still working,
and now, remember, thecatch-up contribution was
important because, again,you're tax arbitraging
in your working years.
Tax arbitraging.
Erin didn't put thatword in the notes.
Dave Schmidt (18:54):
Man.
Guy has one gallbladder removedand all of a sudden he's Mr.
Thesaurus.
Josh Bretl (19:01):
That's has never been my nickname.
But they've also freed upsome privileges to Roth
401ks and Roth 403[b]s.
So, there is some rules nowwhere companies can also make
their matching contributionsas a Roth, which will
benefit a lot of people.
And then, the otherthing with Roth 401ks.
(19:25):
It's funny, Roth IRAshave never had RMDs.
There's no RMDs for a Roth IRA.
You can leave it in thereas long as you want.
But Roth 401ks did.
So if you had a Roth 401k,you did have to do an RMD.
And they've gotten rid ofthat, so now, those rules equal
the Roth IRA rules, which Ithink is probably a good idea
and will save some confusion.
(19:48):
This next one probablywill impact younger people.
So, maybe our listeners'children, or if we have
some young hip listeners.
But student loan matching.
Student loans have become areally big deal, and it's going
to allow companies to match...
If people can't put money intotheir 401ks or 403[b]s because
they're paying off studentloans, that means they're
(20:09):
not getting the matches thatcompanies provide for that.
So, this allows people tospend that money and pay
off their student loans,and still get the matching
contributions with that.
Dave Schmidt (20:21):
I feel like this came up recently.
Was it on our last podcastwe were talking about this?
Or maybe, I don't know.
So, what you're saying is anemployee can make a student
loan payment and their employermay match that student loan
payment and match their 401kto whatever their rules are?
Josh Bretl (20:38):
So, let me use an example here.
If you were to pay $3,000 toyour student loan and you don't
put money in your 401[k] becauseyou need to pay off your student
loan, that would eliminate yourability to get the $3,000 match
if your company allowed one.
But it makes the ruleswhere the company can
still give you the match.
Now, it doesn't go to pay offyour student loan, but it does
(21:00):
go into your 401[k] there.
But it's a pretty cool thing.
It's out there.
Dave Schmidt (21:05):
I see.
And so, that's why yousaid it applies to younger
folks because, yeah,typically retirees won't
have a student loan still.
Unless, of course,they've taken the same
harmonica lessons as me.
Josh Bretl (21:17):
Oh, you took expensive harmonica lessons.
Dave Schmidt (21:19):
200 grand in debt because of it.
Josh Bretl (21:22):
But you now, I mean...
Dave Schmidt (21:25):
I can play Hot Cross Buns
like nobody's business.
Josh Bretl (21:31):
The last one here, and the last little nugget
has to do with 529 accounts.
This is not aretirement account.
529s are collegesavings vehicles.
And they are tax-freecollege savings vehicles.
So, what happens is a parentor a grandparent, or sometimes
even yourself, you would putmoney away, like a Roth IRA,
and it would grow tax-free.
(21:52):
And if you took it out forcollege or some sort of higher
education expense, that moneywould all come out tax-free.
Now, the problem was ifit didn't come out for
an educational expense,the growth was taxed and
you paid a 10% penalty.
So, people were nervous,like, "What if my kid
doesn't go to school?"
Or, "What if theydon't use it all?"
And it was hurting themsaving for college.
(22:14):
So what they did in this,and this is kind of a neat
thing, is if your 529 ismore than 15 years old,
you can actually roll, andthis is limited to 35,000
bucks, it's a lifetime limit,35,000 bucks, to a Roth IRA.
Dave Schmidt (22:28):
Penalty-free?
Josh Bretl (22:28):
Penalty free, it's pretty cool.
So, that actuallydoes two things.
It makes 529s, in my opinion,a little bit more valuable,
as well as give you somefreedom of flexibility
afterwards with that.
Dave Schmidt (22:40):
So, assuming the laws for Secure Act 2.0 stay
in place, if we were to starta 529 for Landon, then when
he turns, whatever, 18, 20,well, 15 years, 23, and he's
not going to college, he couldjust roll it over into a Roth?
Josh Bretl (22:56):
Yeah.
You could roll it rightinto a Roth IRA for Landon.
If he doesn't use itfor school, he can use
it for his retirement.
Dave Schmidt (23:02):
Because he may follow in my footsteps and
be professional Rampageist.
You never know.
You never know.
Kids these days, youknow what I'm saying?
Josh Bretl (23:07):
Rampage as in the Nintendo video game?
Dave Schmidt (23:09):
Yeah, we talked about that last week.
I'm going to be aprofessional Rampageist.
That's how I'm going to turn myhobby into a moneymaking thing.
Remember?
That was your questionfrom last week.
Now, it was a day beforehaving your gallbladder out.
You may have forgotten.
Josh Bretl (23:21):
Maybe I was nervous.
Maybe I didn't hear you.
Dave Schmidt (23:23):
Maybe.
But you said, "If you had totake one hobby and make money
from it, what would it be?"
And I said, "Playing Rampage."
Josh Bretl (23:32):
it was forgettable, apparently.
Dave Schmidt (23:33):
Oh, apparently.
Well, Michael in our officethought it was a great
idea and he's going tohelp me start my own Twitch
channel, whatever that is.
Josh Bretl (23:40):
Well, Rampage is a great video game.
Dave Schmidt (23:41):
Great.
Greatest ever.
Wait, did you just commit togetting one in the office?
Josh Bretl (23:45):
No.
Dave Schmidt (23:46):
Oh.
Because they're only...
Okay.
Well.
Josh Bretl (23:48):
It's a great video game.
I don't play video games.
You're the video gameathlete in this relationship.
Dave Schmidt (23:51):
That's true.
Josh Bretl (23:55):
I'm going to give one last thing, and I don't
know enough about this to goin depth, in detail, but it has
the potential to be really neat.
Qualified charitabledistributions.
This is a tax savings tool thatwe've used for a long time.
It allowed you to takeyour RMDs and donate them
to a 501[c][3] charity.
So, it allowed you to geta bigger tax deduction.
(24:17):
It helps you quitea bit, tax-wise.
But you weren't allowed todonate it to, there's a lot of
charitable trust and there'ssome really cool charitable
planning to do with charitableannuities and things like that,
but that was not eligible.
Well, a lot of them havebecome eligible now.
So, this makes some charitableplanning outside of your
IRAs a lot more beneficial.
(24:38):
So, we will be digging intothat quite a bit as we get
into Secure Act 2.0 andall of its exciting parts.
Dave Schmidt: Sounds like a hoot. (24:47):
undefined
We got 529s and PizzaPizzazzes and QCDs, right?
That's the acronym forwhat you just said.
I mean, I don't know, but-
Yeah.
What?
What?
Okay.
Hey Mr.
Josh, let's take a break.
You've been talking for solong and my ears are sore.
(25:09):
Let's not make them snore.
Listening shouldn't be a chore.
So let's get to know Josh andDave and watch our ratings soar!
Josh Bretl (25:17):
Buggawww!
Dave Schmidt (25:18):
Oh, yes.
I like it.
Spice it up a littlebit there, hey Josh?
Josh Bretl (25:23):
No, I don't remember what I did last time, so-
Dave Schmidt (25:25):
But you said like "Buggawww!"
with a B, like "Buggawww!"
as opposed to like "Kakawww!"
I like it.
I think you're starting a trend.
Josh Bretl (25:31):
Well, it was a different bird this time.
Dave Schmidt (25:33):
Oh, right.
birdnoises.com.
Josh Bretl (25:36):
So, when this goes up onto a video
podcast, and people seeour beautiful table and my
giant freaking water bottle.
Dave normally has thesepod decks where there's
random questions in herethat I pick out and I ask.
And some of them arereally inappropriate, but
I didn't open it this time.
I actually came upwith my own question.
Dave Schmidt: Aren't we fancy, Mr. (25:56):
undefined
Tax Guy?
Josh Bretl (26:00):
That I'm going to ask you.
Dave Schmidt (26:00):
All right, yeah.
Josh Bretl (26:01):
And here's the question.
Dave Schmidt (26:03):
Let's hear it.
Josh Bretl (26:04):
I want you to recommend one podcast to our
listeners, and it can't beours because they're obviously
listening to this already, thatyou think they would enjoy.
Dave Schmidt (26:15):
Wow, what a hard question, because
there's so many genres.
Josh Bretl (26:18):
Just one.
You can only pick one.
I'm now going through mypodcast list to see what I got.
Dave Schmidt (26:22):
Yeah, there's so many at top of mind.
This is really hard becauseI'm an avid podcast listener,
as are you, and there'sso many different genres.
And I mentioned it in an earlierpodcast, but Bone Valley.
Gilbert King has writtena previous book called, I
think, Murder in the Groveor something like that.
But Bone Valley is a fantasticpiece of storytelling about
(26:45):
a wrongfully convictedindividual who's been in
prison for the last 35 years.
It is just so welldone on every level.
It's heartbreaking, it'sinfuriating, it's uplifting.
It's everything.
Bone Valley.
Josh Bretl (27:01):
That's a fun one.
I like that one.
Dave Schmidt (27:02):
Yeah, it's I guess technically a true crime.
Although, I mean, not tospoil anything, but they solve
two murders in this podcast.
Josh Bretl (27:11):
So, I really thought you were going to do SmartLess.
I really thought that'swhere you were going
to go with that one.
So, I didn't pick that one.
I went with one, and I juststarted listening to this one
in the last couple months.
It's called RevisionistHistory by Malcolm Gladwell.
So, Malcolm Gladwell haswritten a ton of books, I think
University of Chicago economist.
Fascinating guy.
(27:31):
But what he does is he andhis team go out and they find
specific topics, kind of likehis books, and they research and
produce the heck out of them.
And he does a great,they're about an hour
long, a great story.
I mean, you learn so muchand it's fascinating.
You usually feelgood afterwards.
I like feel-good podcasts.
But it's really, reallyinteresting as you dig
(27:53):
into the inner workingsof different things.
Sometimes what you thinkto be true isn't always
true, including in historyand stuff like that.
So Revisionist HistoryI think is fascinating.
It's a fun podcast foranyone to listen to.
Dave Schmidt (28:03):
I've heard that name before.
When you said it, I think,Revisionist, I think of
a fictional podcast, likethey're going to take a
story that we all think weknow the story to and then
put their own spin on it.
But doesn't sound likethat's necessarily...
Josh Bretl (28:18):
No.
Sometimes it's what happenedin the past, like a big
event, and they want toknow, did it change history?
Is something differentbecause X happened?
And they go back and theyanalyze what's different, how
it's different, stuff like that.
It's really cool.
It's a neat podcast.
Dave Schmidt (28:32):
He actually, did I tell you he reached out?
He's going to do an episodeon the Retirement Equals
Freedom podcast in 10years, and just how much
we have changed history.
Josh Bretl (28:39):
Wow.
Dave Schmidt (28:40):
Yeah, I know.
We're pretty awesome.
Josh Bretl (28:41):
That's amazing.
I mean, he's writing itbefore we even revise history.
Dave Schmidt (28:44):
I know.
It's so meta.
Speaking of which, Daverelates to retirees, yeah!
Josh Bretl (28:55):
You had to stop me from talking
over at the end of that.
Dave Schmidt (28:57):
You were about to.
Josh Bretl (28:57):
Oh yeah, without a doubt, because
I got to get my word in.
Dave and I right now aresharing an office that
doesn't have a table in itbecause the vendor won't
give us the table apparently.
You wouldn't mention it, butI'm getting a little bitter.
But I walk in here, andDave was taking notes on
the podcast show notes, andI saw him working on it.
And he says, "DR2R."
(29:18):
And I look at him.
I was like, "What?"
"DR2R."
I go, "What's DR2R?"
He goes, "Daverelates to retirees."
Dave Schmidt (29:28):
Wait, are you?
Hold on, are you-
Josh Bretl (29:29):
I was impressed by it.
I never heard that before.
Dave Schmidt (29:31):
No.
Oh my gosh.
This is two times, one episode.
You made a whole spielabout this last episode.
Josh Bretl (29:39):
Oh yeah, I did.
I remember now,it's on your notes.
Dave Schmidt (29:42):
Oh my gosh.
So you really were not inthe right state of mind
in episode 30, clearly.
Josh Bretl (29:46):
No.
People have to realize, whenI do the podcast, once we
finish hitting record, you takeit from that point forward.
Dave Schmidt (29:55):
Yeah, it's true.
Josh Bretl (29:57):
Until it releases.
I don't hear it untilall of our fans hear it.
Dave Schmidt (30:00):
Okay, that's true.
Josh Bretl (30:01):
And so, you spend a long time listening
and editing and I don't.
So, it goes completelyout of my mind.
And I actually haven't finishedour last episode yet, so I
haven't gotten to that part yet.
I apologize.
Dave Schmidt (30:13):
That's fair.
That's fair.
Josh Bretl (30:15):
So Dave, give me your DR2R.
Dave Schmidt (30:18):
Oh, DR2R.
This is, again, like last week,this is a really simple thing
for me because I get retireeson a very deep level here.
Josh Bretl (30:25):
Ramageist.
Dave Schmidt (30:26):
Like every good DR2R, I have to stack my papers
because it's going to be deep.
But Secure Act 2.0, I feellike we mentioned it earlier.
If you're not really payingattention, or if you don't
have somebody paying attentionfor you, it could have
slipped under the radar.
Josh mentioned it's not reallysweeping, huge changes that
(30:47):
happened like Secure Act 1.0.
But they are subtle changesthat could make a huge
difference in any number ofthings financially-related.
Two of my favorite video games,I said it, I'm going back to
video games, ToeJam and Earl.
Josh Bretl (31:03):
There's a video game called ToeJam and Earl?
Dave Schmidt (31:05):
ToeJam and Earl.
Josh Bretl (31:06):
Did that come up when we were kids?
Dave Schmidt (31:07):
Yeah.
Oh yeah.
And I'm going to gowith Rampage again.
But these two video games,they were very, and are
very, simplistic, are,because I still play them.
Where, there'd only bemaybe 15 to 20 different,
air quote, "worlds."
But every time you wouldvisit the world, some
things would be different.
(31:27):
The hidden paths wouldbe different, the enemies
would be different.
And it's so identical to theSecure Act 2.0, where retirees
are pretty comfortable withthe changes in 1.0, right?
But if they're notpaying attention, boom.
2.0 sneaks up and hits them.
Either you got to be payingattention yourself, or
have a really good advisor.
(31:48):
In my case, I was the advisorto my sister Julie, whom was
kind of like you, the retiree.
I was an expert.
She would play ToeJamand Earl with me.
And if she wasn'tpaying attention.
Josh Bretl (31:59):
Did you just insult the retirees?
Dave Schmidt (32:00):
No, not at all.
Why would I?
Josh Bretl (32:02):
I was worried.
You compared them to Julie.
Are you in trouble?
I even thought, "Oh, snap."
Dave Schmidt (32:07):
So, I was like Julie's advisor with this.
I'd be like, "Jules, look.
You think you may know thisworld, we were just here.
But there's somedifferent things.
There's an oogieboogie over there.
There's one of those fatopera singers who's going
to knock you off the stage.
There's the lawnmowerman who runs around."
So, I get it.
Familiar with ToeJam and Earl.
Familiar with Rampage.
(32:27):
But, I'm not payingattention, I can get hit.
I don't know if that laughwas because you're just like,
"Wow, Dave nailed it," or ifyou're like, "How the heck am
I going to Full House this?"
Josh Bretl (32:40):
You know, as you were talking, I was
also thinking, how can Igo back full circle from
our rambling beginnings?
And I'm going to do it.
Dave Schmidt (32:53):
I never doubted you.
Josh Bretl (32:53):
So, they found out I needed to have my
gallbladder out because theywere looking at something else.
And as they were imaging mystomach, and they weren't even
looking at my gallbladder,but they said, "Hey, that
young fellow's got somepolyps on his gallbladder."
Lucky for me, those doctorswere paying attention.
They said, "Hey, we'regoing to monitor that."
(33:14):
Well, the polyps got alittle bit bigger and they
said, "Young fellow, you gotto have those polyps out."
And really, they wantedthe whole gallbladder.
Like your ToeJam andFootball or whatever.
Dave Schmidt (33:24):
ToeJam and Earl.
Josh Bretl (33:25):
ToeJam and Earl.
I didn't know whatI was looking for.
And luckily, my doctor did.
She's amazing.
And she was very calming.
And she said, "Theseare the things you're
going to have to do."
Lucky for Julie, that she hadyou to walk her through where
the oogie boogie was goingto be in ToeJam and Earl.
And to make it a much morerealistic, real world example,
(33:49):
you actually hit the nailon the head when you said a
retiree who has an advisorlooking out, and how you can
be aware of changes that occur.
And when a change occurs, andchanges occur all the time,
you either are going to takeadvantage of it or it's going
to take advantage of you.
And when you have that goodadvisor, you can make sure that
(34:10):
something like Secure Act 2.0isn't an oogie boogie that is
going to come out and get you.
And so, when we say thatour mission statement is to
give clients the confidenceto make retirement the best
part of their lives, what wemean, a lot of that is that
you watch the whole picture.
There's all sorts ofthings that could come on.
And we love to stand by theirside and make sure that even the
(34:33):
oogie boogie of Secure Act 2.0.
Dave Schmidt (34:35):
And the mailbox monsters and the
rabid chickens that get you.
Josh Bretl (34:40):
Oh, we don't do anything with rabid chickens.
Nothing.
Dave Schmidt (34:42):
Don't want to mess around with that.
Josh Bretl (34:44):
No.
Dave Schmidt (34:44):
So, that was a great full house moment.
I'm going to lightenthings up here.
Have you noticed when wesend out those podcast
email club emails, thatI usually put a random
montage of images in there?
Josh Bretl (34:57):
Yeah.
It's really cool.
Dave Schmidt (34:59):
Yeah.
So, the montage is usuallyabout the fun things
that we talk about.
So, ToeJam and Earlis definitely going
to be in the montage.
Should I put some images ofyour polyps in there too?
Josh Bretl (35:11):
My gallbladder polyps?
Dave Schmidt (35:12):
I mean, do we have any images of your
gallbladder after it's removed?
Like it's super gory and gross?
Josh Bretl (35:18):
Some more behind the scenes stuff here, and this is
kind of fun for our listeners,if they're not looking at
the emails or the show notesinside of each show page.
We have a lady, Leslie, wholistens to all of these and she
writes up the show notes for us.
And I've never met Leslieone on one, but she takes
(35:40):
what we do and she makes itsound really, really good.
I can only imagine what she'sgoing to do with this episode.
But she makes these amazingnotes, and with your montage
and also all of her notes,it has links to every single
thing that we talk about.
So, if people aren't visitingthe show page or reading the
emails, this is a reminder.
(36:00):
Sign up for the RetirementEquals Freedom Podcast Club
emails, because Dave putsa lot of work into them
and they are fantastic.
Dave Schmidt (36:08):
They're very entertaining, probably more
entertaining than our show.
And rumor has it in thenext few months, they're
going to be even better.
I won't go into that now.
Josh Bretl (36:17):
Is that when our table gets here?
Dave Schmidt (36:18):
Yeah, right.
FSRwealth.com/podcast.
Dear friends, dear friends.
Please get onto our email club.
Let's just say Josh andI have more time together
these days and some funthings will be happening.
He may not know about them, hemay not approve of them, but
they're going to be happening.
Josh Bretl (36:35):
Or if you told me, I forgot about them
apparently, like our last DR2R.
Dave Schmidt (36:38):
Yeah.
It's true.
You know what Ihaven't forgot about?
These Girl ScoutCookies I ordered from
your daughter, Maggie.
When can I expect them?
Josh Bretl (36:45):
We have so many random stories in this podcast.
So Saturday, Missy, my wifeis in charge of the Girl Scout
Cookies for the entire troop.
And Saturday is when shepicks up the Girl Scout
Cookies for the whole troop.
And we have to be able topick up somewhere around 1900
boxes of Girl Scout Cookiesand bring them back to our
house on Saturday morning.
Dave Schmidt (37:06):
Wait, that number's made up.
Josh Bretl (37:07):
No, it's huge.
It's a huge number ofGirl Scout Cookie boxes.
So, I'm going to guess nextweek, Dave, you're going
to have Girl Scout Cookies.
Dave Schmidt (37:16):
I was just about to do this.
ALF (37:18):
Why must you needlessly complicate everything?
Dave Schmidt (37:21):
But when you dropped that 1900 number?
Josh Bretl (37:24):
It's a stupid number, what she told me.
Dave Schmidt (37:27):
I ordered four and I thought that was a lot.
Josh Bretl (37:28):
I'll try and take a picture of our
living room after she picksthese up so we can see it.
It's unbelievable.
Dave Schmidt (37:34):
I can't wait.
I can't wait.
Well, I look forward to the GirlScout Cookies, especially the
new one that they introduced.
I bought a box of them.
It's the brownie shovedinside of a cookie.
Josh Bretl (37:43):
There's another new one that's being
released on the secondwave of Girl Scout Cookies.
I didn't know,there's two waves.
There's an in-personordering wave and there's an
online, I'll ship it to youordering wave, and it's a
raspberry chocolate cookie.
Oh, it looks amazing.
Dave Schmidt (37:57):
Oh man.
Good thing I stillhave my gallbladder.
Debbie, I hope you have yourgallbladder and I hope you
ordered your Girl Scout Cookies,because we are going to say bye.
Josh Bretl (38:07):
Bye.
Dave Schmidt (38:07):
Thin Mints, Tagalongs, Do-si-Dos.
Josh Bretl (38:13):
I like Thin Mints in a freezer.
Dave Schmidt (38:14):
Samoas.
Yeah, Thin Mints in a freezer.
Josh Bretl (38:17):
One or two of those at the end of the
night is just the best.
Dave Schmidt (38:20):
Oh man.
The best.
Oogie Boogie (38:22):
Oogie boogie boogie.
Alex (38:24):
Hashtag tax nerd.
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