Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The information our services discussed on this show is for
informational purposes only and is not intended to be personal
financial advice. The investments and services offered by us may
not be suitable for all investors. If you have any
doubts as to the merits of an investment, you should
seek advice from an independent financial advisor.
Speaker 2 (00:15):
All right, all right, Sarah cues, how are you. This
is Dave Kopek. We are live today. This is the
Retirement Planning Show. We're here every week to hopefully educate
you on the landscape of the new retirement that we face.
Of the president of the Retirement Planning Group, we have
an office at Carrier Circle. Anything that I'm discussing, if
(00:38):
you want to comm in and have a chat with us,
we'd love to meet with you. Our telephone number is
eighty eight five eight zero one nine one nine eighty
eight five eat zero one nine one nine. And today,
if you want to talk to us, you can call
the studio at three one five four two one ninety
seven ninety seven. That's three one five four to two
(00:58):
one w SYR. And today we're talking about the eighteen
trillion dollar problem that some of us will face in
our retirement years. And believe it or not, folks, that's
how much money is out there and iras right now,
individual retirement accounts iras eighteen trillion dollars. And for some
(01:22):
of us it's great because we're going to utilize that
money in order to facilitate our retirement income. For other
people that have pension benefits and they have social Security,
it can be very problematic asset class, especially as you age,
because of that magical thing called required minimum distribution. I
(01:43):
have my son with me this afternoon. Christopher William Hello, Chris, Hello,
So we're talking about iras, Yes, we are. We're going
to talk about some of the pros and some of
the cons of iras. What are some of the the
pros of iras?
Speaker 3 (02:03):
The pros of iras well, I guess before they came
in IRA you know it's your four toh one K
or whatever investment vehicle you were investing in through your plan.
You know the benefit of them is you're putting money
in before it gets taxed, so you're getting more as
far as a growth potential on that money when you
put it into your retirement account. You know you can
(02:25):
invest it before you're getting hit for taxes so that
it has a higher potential to grow to a bigger number.
Speaker 2 (02:33):
And then one of the biggest things about the iras,
of course, it's what's your money. You know, we used
to live in a world that we worked for thirty
or forty years. We'd walk out the door, they give
you the gold watch, they give you a pension benefit,
a little bit of healthcare, and the way you would
go those days are going Nine out of ten individuals
today have to take their life savings what they've created
(02:54):
in four oh one k's, four or three b's and
now they're going to have to basically create pension benefits
or assets that will last a lifetime. So we're going
to talk a little bit about IRA assets today. You know,
it's estimated that they're worth at the end of twenty
and twenty four, they were a little over seventeen trillion dollars.
Now it's estimated that they're close to eighteen trillion dollars
(03:17):
after the first half of two thousand and twenty five.
But we're going to talk a little bit about how
you want to look at these assets, how you want
to ultimately manage this money during your retirement years, especially
if you need to draw income. And the bottom line
gets down to is that you know how much should
(03:40):
you use of these assets during your go go years,
not your slow go or your nogo years. Because as
we said, the government has a plan for you, and
it's called required minimum distribution. These are distributions that you
have to take whether you want to or not, and
they start at age seventy three. So what are the
(04:03):
three assets that are problematic Chris? What are the assets
that as you age? These are assets that you want
to utilize in your lifetime and not basically pass them
on to the next generation.
Speaker 3 (04:17):
Yeah, that would be an IRA account. That would a
traditional traditional IRA account, not a roth IRA.
Speaker 4 (04:25):
A very good non.
Speaker 3 (04:27):
Qualified annuity in series E bonds, right, And.
Speaker 2 (04:32):
The reason why all of these assets that we just
talked about iras, series E bonds and non qualified annuities
are ird income or respect to the deceit. That means,
if you don't utilize it in your lifetime, what you're
doing is that you're sending a tax liability to your
loved ones, your children, and your grandchildren. So these are
(04:53):
problematic assets to leave the errors due to the tax implications.
These are assets well offering potential benefits during your lifetime,
they can trigger significant tax burden for the beneficiaries when
they inherit it. So we'll talk first about iras estimated
to be about seventeen and a half to eighteen trillion
(05:15):
dollars right now, and these are moneies. Typically, what people
do is what Chris. When they come in, they have
a four to oh one K, they work for XYZ Corporation.
They now have all this money in their four oh
one K. Use National Grid as an example. They have
their four oh one K program at Vanguard, and then
they have a cash balance account.
Speaker 4 (05:36):
What are we going to tell them to do?
Speaker 3 (05:39):
Yeah, So the people who work for a company like
National Grid and with a large chunk of money in
a four to one K and then they have the
benefit of a cash balance plan. You know that large
four oh one K, you know, we would recommend that
you roll it over into a rollover IRA and then
build out some type of investment portfolio that suits your
(05:59):
risk tolerance in retirement and then pull your income from
that account. Then with that cash balance plan, you could
also we always recommend taking the lump sum. You know,
it's offered as an annuity as well, but you can
shop you know, the annuity market on your own through.
Speaker 4 (06:17):
The uh what's it through us? Through US?
Speaker 3 (06:21):
Well, yeah, through us through retirement planning, but through the
insurance companies. That's what I was gonna say, through the
insurance companies that are out there. You know, there's a
lot of annuities that offer you more benefits than then
that would be through your work. But for the recommendation
for that would be you can you can still turn
that into annuity, just do it on your own terms
and create you know, a lifetime income stream for yourself
(06:42):
and your beneficiaries if that's a you know, concern for you.
But you could also roll that into the same pie
of money that you just rolled into your role over
IRA account and just supplement your income in retirement with that.
Speaker 4 (06:55):
Yeah.
Speaker 2 (06:56):
The thing is is that you know, uh, when you
take the company's plan and you basically that's it. You know,
this is what you're going to get. You know the
advantage of rolling it into a self directed IRA, the
cash balance account or the other assets that could possibly
be loaded into a pension benefit through your previous employer.
I personally, after forty three years of doing this is
(07:18):
always more advantageous to have your plan because not there's
no really cookie cutter approach where any one product fits
all the individuals that's out there. You can get lifetime guarantees,
you can get you know, pension benefits that.
Speaker 4 (07:33):
You can create.
Speaker 2 (07:34):
And also there's a legacy piece meaning that if you
get the pension benefit through the company. A lot of
times when you pass away, the benefit passes away, whether
you select an individual or a joint benefit for both
you and your spouse. So the selection that you make
when you roll the money into a self directed IRA
(07:55):
is critical because a lot of times you can't go
back and you can change you can't change it.
Speaker 4 (08:00):
Right.
Speaker 2 (08:00):
So you know, today we're live. We haven't been live
for a while in Syracuse. So I'll give out our
telephone number again.
Speaker 4 (08:07):
Uh.
Speaker 2 (08:08):
We always like phone calls because I always think that
makes it much more interesting for you and us. Our
telephone number at the studio if you have a question,
is three one five four to two one ninety seven
ninety seven. That's three one five four to two one
ninety seven ninety seven. You know, we talked a little
bit today about beneficiary designations, why they're critical. Well, you know,
(08:31):
we'll talk a little bit about the IRA, why it's
important to have named primary beneficiaries and of course contingent beneficiaries.
But first and foremost, the reason why you want to
have your primary beneficiaries intact is because you want to
make sure that the surviving spouse or your loved one
has the ability to carefully, carefully select what option is
(08:55):
going to ensure that they're going to have quality of
life based on this st age of life that they're in.
And what we're going to talk a little bit about
is a disclaimer. Why a disclaimer that's attached to your
IRA is critical because as you age, it's probably not
necessary for you to retain all of those assets. Mean,
(09:15):
I love you, planning I love you, I leave all
the assets to you. That's usually a recipe for major
tax liability. And if there's a health event, it's not
going to go to your loved ones, it's going to
go to the nursing home.
Speaker 3 (09:29):
Right, yeah, you know, setting yourself up in your state
up to avoid the costs of nursing home obviously or huge.
You know, they can definitely liquidate in a state with
you know, the mass amount of monthly payments that we
see these facilities have nowadays.
Speaker 2 (09:47):
So let's start off. Okay, So when's the earliest you
can get the money out of your IRA fifty five
fifty five if you keep it inside your four oh one.
Speaker 4 (09:57):
K fifty nine and a half for majority of peace.
Speaker 2 (10:00):
Right and at fifty nine and a half, what do
we usually ask people to do because we start wanting
we want to if you've worked with XYZ Corporation for
like twenty five years, you got a million dollars inside
your four one K at age fifty nine and a half,
you have the ability to transfer that assets.
Speaker 4 (10:17):
Do a transfer to.
Speaker 2 (10:19):
What they call an in service distribution. It's a non
taxable event and it allows you to basically move the
money over to a self directed IRA in order to
start building out your own personal retirement income distribution plan.
But you know what, we have our first caller of
the day. We have Victoria, and we're glad that we
(10:40):
have a caller Victoria because that always makes it much
more interesting on our part.
Speaker 5 (10:45):
Good afternoon, goody afternoon, thanks for taking my call. I
wanted to ask if you have any suggestions and how
I can get my son to invest. He's forty two
and he makes the good money, and he will not
do anything I asked him to do, like just so
(11:07):
he can start saving money because I did it way
too late. I said, well, I don't just do something
in the market, a little maybe some the money market,
some kind of a saving so you'll have it, you know,
when you retire. So I was just to get any suggestions.
Speaker 2 (11:24):
Does he have does he have does he have an employer?
I'll get back to that question when we come back.
I guess we're gonna I think we're going to have
to take a break here. Employer Okay, he does have
an employer. Okay, So what we'll do is we'll discuss
that I've got to take a hard break here. We'll
(11:46):
discuss how we can get your son into what we
call a discipline approach in order to start setting somebody aside.
You've spent a lifetime saving for retirement. Now it's time
to make that money work for you. Here's the secret
most people miss. You have to create your own retirement
income plant. Social Security is not enough, pensions are rare.
(12:09):
You need a strategy that turns savings into monthly income
that will last a lifetime. At the retirement planning group,
we build customized income distribution pinins so you can retire
with confidence. Retire smart, Live well. Call eight eight eight
five eight zero one nine one nine for your complementary consultation.
You've spent a lifetime saving for retirement. Now it's time
(12:29):
to make that money work for you. Here's the secret
most people miss. You have to create your own retirement
income plant. Social security is not enough, pensions are rare.
You need a strategy that turns savings into monthly income
that will last a lifetime. At the Retirement Planning Group,
we build customized income distribution pins so you can retire
with confidence. Retire smart, Live well. Call eight eight eight
(12:52):
five eight zero one nine one nine for your complementary consultation.
Six percenters, do you know that eighty six percent of
the population has no defined benefit pension plan. For most
of us, we have to take our life savings and
create a paycheck for the rest of our lives in retirement.
What is your plan for retirement income distribution? How you
manage your assets during the most critical years.
Speaker 4 (13:13):
Of your lifetime.
Speaker 2 (13:14):
Nobel Prize winning economist William Sharp has called retirement income
distribution the nastiest, hardest problem in finance. He points out
that investment uncertainty and mortality can derail the most careful
laid out retirement income plan. Call our offices today to
start the process of building a retirement income distribution plan.
After forty one years of being in the financial services business,
(13:36):
you need to start taking action to start building your
own personal retirement income distribution plan. How do you do that?
To take action five one eight five eight zero one
nine one nine. That's five one eight five eight zero
one nine one nine or RPG retire on the web.
Don't procrastinate, motivate to start building your retirement income distribution
(13:57):
plan five one eight five eight zero one nine. We
are living through the greatest wealth transfer in the history
of mankind. Trillions of dollars of wealth will change hands
from one generation to the next. Your money to our
beloved children and grandchildren. Are you ready? Your future is
written by chance, it's written by action. Now's the time
to build your plan, protect your assets, and position yourself
(14:18):
for the opportunity. Don't wait, take action if future favors
those that are prepared. Call eighty eight five eight zero
one nine to one nine. That's eight eight eight five
eight zero. All right, we are back this is the
Retirement Planning Show. I'm Dave Kopek. I'm here with my son,
(14:41):
Christopher William. We have five locations in New York State
and soon to have one in Florida. We welcome your
phone calls. We're going to get the victorious question here.
But our telephone number here is three one five four
Towne seven ninety seven. That's three one five four to
two one w S.
Speaker 4 (14:59):
Y are all right?
Speaker 2 (15:00):
Victoria's got a sun. Seems like he's got a problem
being discipline in order to set some money aside. Chris, right,
So what's your answer? What do we do to help
of Victoria's son to get into some kind of a
disciplined savings plan.
Speaker 3 (15:16):
Yeah, so, I mean, just to reiterate the opportunity lost
now that he's forty two years old, and this is
something that he should have established in his early twenties.
You know, there's a scenario that I just played out
while the commercials were running. If he were to invest
five hundred dollars a month, which is six thousand dollars
a year at an average annual return of seven percent,
(15:41):
and you know, it ran a scenario for Adam and Alex.
These are just example names the h Adam started at
twenty one, Alex started at forty two, her son's age.
They're both contributing to an IRA account at five hundred
dollars a month, six grand a year, Alex who started
at twenty one at the and they both stop at
(16:01):
age sixty five investing into this account at the person
who started at twenty one is going to have one
point five million dollars one point four to nine million
as far as their valuation on that account, with a
seven percent annual growth rate, which is just what the
market tends to grow at year over year, with a
total contribution of two hundred and sixty four thousand dollars
throughout that timeframe. And then you got Alex who started
(16:26):
at age forty two and contributes, you know, for twenty
three years instead of forty four. So from forty two
to sixty five he contributed one hundred and thirty eight
thousand dollars and with that same seven percent growth rate,
at age sixty five he has accumulated three hundred and
five thousand dollars.
Speaker 4 (16:43):
Big difference, huge difference. Yeah, So that's just goes to
show what's.
Speaker 2 (16:47):
That called in financial planning lost opportunity cost.
Speaker 3 (16:50):
You're right exactly. So compounding is exponential. You know, the
more the more time you give your money in the market,
the more it's going to grow on itself over and
over and over again. So you can't make up for
lost time. That's you know, the number one thing I
would reiterate to him over and over again. Every year
that you delay it, you procrastinate it, and you don't invest,
(17:12):
is just delaying more and more value for your future self.
Speaker 2 (17:16):
I know there's one thing for sure. If there's a
company plan, there's a match, always take advantage of that.
So if the company is typically three to five percent,
so if the company matches three percent and you put
in three percent of your wages, you got one hundred
percent return from day one, dollar one. You're foolish. Tell
him he's foolish if he doesn't take advantage of that.
(17:38):
The second thing is is that at the retirement planning group,
we're not big believers. We're not major advocates of pre
tax money. I think it's good out of sight, out
of mind, but a lot of times people want to
have their money tax preference at retirement, meaning when you
go in and you get it you're not gonna have
to pay a whole heck of a lot of tax
iras and four oh one k's are very very taxable,
(18:01):
meaning that a dollar in is a dollar out taxes
ordinary income. A wroth wroth war one k a wroth ira.
To me, it was the greatest thing that the federal
government ever gave us because you get the tax deferred growth,
tax free, however you want to say it. But the
thing is is that once you meet the criteria five
(18:23):
years or fifty nine and a half, all that money
is what all tax right.
Speaker 4 (18:27):
Yeah, that's all tax right.
Speaker 3 (18:30):
Yeah, So even just maxing out of roth ira every
year would while he has earned income would be you know,
the minimum as far as getting investments started. So that's
where I would start, you know, open up a roth
ira because you can always grab once you meet that
five year requirement, you can always grab your contributions penalty free.
Whatever you put into it, you can get out of it.
It's just the gains that need to stay in there
(18:51):
until fifty nine and a half. So that would be
step one, you know, tell them to get a roth
ira opened up and just start set up a periodic plan.
I know, specifically for me, I have a roth Ira.
I set up a periodic plan where it just pulls
money out of my checking account every month.
Speaker 4 (19:08):
It does.
Speaker 3 (19:09):
Yeah, it just pulls it out of my check account
every month. I don't even see it. It just goes
in and invests itself in the investments I have in there.
Speaker 4 (19:17):
So it's automatic.
Speaker 2 (19:18):
It's like anything else, you know, motivation sometimes you know
you can you can lead a horse to water, you
can't make a drink.
Speaker 4 (19:26):
You know it's saying.
Speaker 2 (19:27):
But the thing is is that we're not adverse to
talking to people on the telephone, Victoria. So if you'd
like us to have a chat with them, we be
more than a habit to have a chat with them
and see if we can lead them to the promised
land of investing money and having a future that's going
to be comfortable for himself. So we'll give out our
(19:48):
telephone number throughout today's show. But again we are live
three one five seven ninety seven. That's three one five
four two one w S y R. If you have
a question or I'm at we'd love to hear from you.
Today we're talking about iras. We're talking about how significant
they are to the tune of somewhere between seventeen and
(20:09):
a half and eighteen trillion dollars of money out there.
By the year two thousand and thirty, two thirds of
the investible assets in this country we'll be controlled by
women women. So it's a staggering amount of money. Eighty
five trillion dollars of wealth we'll transfer over the next
(20:32):
twenty to thirty years. What's your plan? Do you have
a plan? And especially with IRA assets, you know, there's
a lot of individuals out there that have specific ways
in order to take distributions. We'll talk a little bit
about it today as far as how we look at it.
So when people come in Chris, they have it. We
(20:53):
have a data collection for them that we look at.
Why don't you kind of go through what our process
is and how we basically hold out a plan for
people that are looking for retirement income distribution.
Speaker 3 (21:04):
Yeah, so for the folks who call us up and
want to set up an initial appointment, our process is
the first appointment, you know, you reach out to the office,
you speak with Jimmy. He gets information from you. We
fill out, you know, a basic questionnaire just to get
your email and what your name is, and that sort
of stuff. But once we have that initial appointment with you,
(21:27):
that's just a cup of coffee and we sit down
and chat about what you filled out in the booklet.
So that confidential questionnaire booklet that we send out to everyone,
that's super important, you know, for everyone to fill out
because that gives us an overall snapshot of your financial picture.
And then from there, you know, the first appointment, we
(21:47):
never do business on the first appointment. It's always a
meet and greet and see if you know we're a
fit for you, you're a fit for us. And from
that point, we then set up a follow up appointment
where we plug in all of that booklet information into
a software system that we utilize for projections. It's called
e money, and from there we can build out different scenarios,
(22:11):
give projections over a turt twenty to thirty year timeframe based.
Speaker 2 (22:15):
Success gives us a percentage of success that we can
have based off some modest assumptions.
Speaker 3 (22:21):
Yeah, and the keyword is modest. You know, we're not
over projecting for anything. We utilize a seven percent annualized
growth rate, you know, and over project for inflation. As
far as numbers that we're looking to achieve within the
account itself. You know, if someone's more conservative, will drop
those growth numbers a little bit, maybe to six percent
or five just to give them a modest outlook on retirement.
(22:43):
We're not looking to show you the ceiling, you know,
We're going to give you the bottom line number what
we feel comfortable with as far as a spend level
for you in retirement. So the most important thing is
to figure out what your baseline income needs would be,
and then from that point in the baseline and income needs,
it's just how much money is going out the door.
How much do you have to live on to live
(23:04):
comfortably with your current standard of living.
Speaker 2 (23:08):
So we know that there's a lot of money out
there in IRA assets. We know that the percentage of
retirement assets right now, about thirty eight percent of wall
us A retirement assets are IRA accounts. In twenty and
twenty four the end of twenty forty four percent of
(23:29):
you held IRA assets traditional versus WROTH iras. Forty four
percent was traditional and twenty six percent has ROTH accounts.
So there is a significant amount of money out there
in these types of accounts. The advantage of the WROTH
is what Chris.
Speaker 4 (23:50):
Tax free, tax free free distributions, no free growth.
Speaker 2 (23:54):
No required minimum distribution either for the primary or the spouse.
There is a required minimum distribution for non spouse beneficiaries,
but who cares because it's all tax free money. So
when you consider making your contributions for your retirement years,
(24:15):
you've got to start thinking about what accounts are going
to give you tax preference when you reach that magical
age of sixty five sixty seven, seventy years of age,
because when you reach into the pot, you want to
have some money that's going to be associated with tax
front preference. Fidelity just came out with their number for
(24:38):
individuals that are retiring healthy sixty five year old couple
in the year twenty and twenty five, three hundred and
fifty thousand dollars is what's expected that you're going to
spend an out of pocket expenses for your medical care,
and that has nothing to do with long term care
insurance three hundred and fifty thousand dollars. If that's the case,
(25:00):
you don't want to keep on dipping into your IRA account.
You're going to want to have some money that's either
in wrath HSA accounts health savings accounts in order for
you to satisfy these bills and not have a major
tax liabilding when you have to reach into the pot
and take the cash.
Speaker 4 (25:17):
Yeah.
Speaker 3 (25:17):
Yeah, No, it is important to diversify within your own
accounts and have accounts for separate things, you know, like
a raw IRA account.
Speaker 4 (25:27):
And also an HSA account.
Speaker 2 (25:29):
You know.
Speaker 4 (25:29):
HSA accounts now.
Speaker 3 (25:31):
Can be utilized on a tax free basis as long
as it's for qualified medical expenses.
Speaker 4 (25:36):
So that's that's another important.
Speaker 2 (25:39):
A lot of people don't realize the high deductible plans
now that in order for you to qualify for an
HSA account are minimal as far as the amount of
out of pocket expense that you have a couple thousand dollars,
I believe it's somewhere in that neighborhood. The advantage, especially
if you're healthy, the hsas is they allow you to
basically grow money on a tax free basis, not only
(26:01):
during your accumulation years, but also during your post retirement years.
When you get into your retirement years, you can go
into that pot and it stays with you. It stays
with you, it's your money. So we're gonna talk more
about iras today. This is the Retirement Planning Show. I'm
(26:21):
Dave Kopek, president of the Retirement Planning Group. We're going
to be back after the news. We'll see on the
other side. Are you ready for retirement or just hoping
it works out? Don't leave your future to chance. At
the Retirement Planning Group, we hope you create a personalized
(26:43):
retirement plan so you can relax knowing you are prepared.
Take action today called eight eight eight five eight zero
one nine nine. That's eight eight eight five eight zero
one nine one nine, or visit us at our website
rpgretire dot com to schedule your complementary consultation. Your future
will say thank you. Six percenters. Do you know that
(27:05):
eighty six percent of the population has no defined benefit
pension plan. For most of us, we have to take
our life savings and create a paycheck for the rest
of our lives in retirement. What is your plan for
retirement income distribution? How you manage your assets during the
most critical years of your lifetime. Nobel Prize winning economist
William Sharp has called retirement income distribution the nastiest, hardest
(27:27):
problem in finance. He points out that investment uncertainty and
mortality can derail the most careful laid out retirement income plan.
Call our offices today to start the process of building
a retirement income distribution plan. After forty one years of
being in the financial services business, you need to start
taking action to start building your own personal retirement income
(27:48):
distribution plan. How do you do that? To take action
five one eight five eight zero one nine nine. That's
five one eight five eight zero one nine one nine
or RPG retire on the web. Don't put frastinate, motivate
to start building your retirement income distribution plan five eight
five eight zero one nine nine. Retirement is in a
(28:08):
Sunday thing. It's a now thing. Whether you're just starting
out or nearing the finish line. The best time to
build your retirement plan is today. Don't wait for the
right moment. Let's create a plan that works for you.
Secure your future and the freedom that comes with it.
Call my office today and take action. Eighty eight five
(28:29):
eight zero one nine nine. That's eighty eight five eight
zero one nine nine and your future will thank you.
Speaker 6 (28:36):
So, why are.
Speaker 4 (28:59):
We are back?
Speaker 2 (29:01):
I don't know what that is. It sounds like a
little ac DC. Sounded pretty good. Let's throw the mics
down and just listen to the tunes.
Speaker 4 (29:09):
Man. Yeah, I've Dave Kopeck.
Speaker 2 (29:12):
This is the retirement Planning show. We're here on the
weekends to hopefully educate you on this new landscape of retirement,
not only for boomers, but also the other segments of
the population that are coming up xyz g's whatever they are.
So you know, there's a lot of money transferring folks
over the next twenty to thirty years, anywhere from eighty
(29:33):
to eighty five trillion dollars of which a good chunk
of that is going to be qualified assets estimated somewhere
between seventeen and eighteen trillion dollars in high rays. You
need to know the rules, you need to know the regulations.
You need to know exactly how important it is to
dotg your rize and crush your t's. But today we're
going to start off about onboarding. My son does a
(29:55):
lot of the onboarding and the team that he works with,
So why don't we talk about how do we on
board the assets into the ir rates.
Speaker 3 (30:03):
Yeah, that from that second appointment that I touched on earlier,
where we go over all of the projections and show
you kind of a financial snapshot of what a turt
twenty to thirty year outlook looks like within your account
and what you know, how we can satisfy that baseline
income need that you need in retirement. You know, from
(30:24):
that point, the next step would be the onboarding process,
which is you know, doing all the paperwork and then
getting the accounts established and the assets rolled into these accounts.
And from that point, you know, we would we would
then review different investment portfolio allocations based on your risk tolerance.
(30:44):
We would have you fill out a risk tolerance questionnaire
and you know, based on that in our conversations that
we have within the office, we would then invest the
money accordingly. You know, a lot of people kind of
seem to be geared towards like an income standpoint, generating
income off their account in retirement, sustainable income, you know what,
while trying to get some growth out of the account
(31:06):
and kicking off that money. So we'll set up you know,
banking instructions that have a direct deposit to your checking
or savings account, whatever you want it to be set
up for, and we'll just send distributions out at that
point in time, once you tell us to, you know,
turn on the income stream the assets can sit there
and you know, reinvest interest and dividends or pay it
(31:27):
out to the to the core holding, you know, and
we just send them out to you once you want
that established, you know, once we have a plan set
up as far as how how we want the account
structured and to be paid out, we then implement it
once everything's set up and established.
Speaker 4 (31:44):
Yeah.
Speaker 2 (31:45):
The big thing of course is to make sure, uh,
you know, one of the things that we always say
is don't touch the money. You know, you want you
want the money to go trustee to trustee transfer. We
custodiaan all of our assets that the mothership fit and
you know, we can basically if you have a Fidelity
four oh one K or if you have a Fidelity
(32:07):
account existing account, we can roll that money over. We
can have it at the retirement planning group, you know
within hours.
Speaker 3 (32:14):
Yeah, it's pretty quick. It's within like a twenty four hour.
The main part is just opening the new account for us.
It's it'll probably be there within a twenty four hour period.
Speaker 4 (32:23):
Right.
Speaker 2 (32:23):
So the thing is is that if you currently have
a Fidelity relationship and you're unhappy, or if you're working
with one of the Fidelity offices and you're looking for
a team to work with. We do a lot of
work you know, of course with Fidelity, and it allows
us to basically facilitate consolidation and simplification. As your friend,
(32:47):
you know, we over emphasize that how important it is
to as you age to simplify the process and basically
consolidate your assets because it makes it much easier for you.
I mean you mentioned something this swarning, Chris, which blew
me away. With the other show that we did, you
had a person that came in that headway over two
(33:07):
hundred positions.
Speaker 3 (33:09):
Yeah, two hundred and twenty four positions in an account
that was an IRA account, which my god, you know,
in what I said in the show we did this
morning was basically with these new direct indexing platforms, you know,
it makes sense to sometimes do that in a non
qualified account, which is just a traditional or an individual account, right,
(33:29):
you know, with non qualified assets, because you can do
tax loss harvesting and there's some you know, benefits of
doing that within the account. But for an IRA account, yeah,
we were, we were pretty blown away when he came
in and showed us that you know, twenty five page
statement of just position after position after position.
Speaker 4 (33:49):
It was something who just out.
Speaker 2 (33:52):
Of curiosity, who was the custodian on the account?
Speaker 3 (33:55):
I don't remember, do you remember? No, I'd have to
look it up in the file. But but yeah, I mean,
the the the point to us was, you know, you
have all these assets spread out, You're gonna have, you know,
positions in here that do great, You're gonna have positions
in here that do bad. But it's hindering your growth
on this because you have five hundred dollars spread out
into like each position, or a couple hundred, you know,
(34:17):
one share here, two shares there, one share here. Yeah,
so it just didn't make any sense. And you know,
we tried to ask them politely. You know, we're not
trying to step on anybody's toes, but we were saying,
how are you compensating this advisor? Because if it was
through positions in the account that we're getting charged you know,
commission one, Yeah, it could have been churning the account,
(34:40):
which is never a good thing to see. So you know,
we ended up consolidating the account, simplifying it, putting them
in some type of model asset allocation where and that's
the other thing we utilize the software system Nitrogen for
all of our portfolio construction, and we'll go over that
with clients in an appointment to sit down and show them,
(35:01):
you know, this is what we're doing on the back
end with all of our relationships, you know, not only Fidelity,
but because we are an oria, we have relationships with
every other financial institution and their wholesalers who come in
and explain to us, you know, ETFs and mutual funds
that are that their company offers, and you know that
(35:22):
are either have a great performance track record, are highly
rated through morning Star, which does all of our you know,
research that we do through them. So we show this
to people not to necessarily confuse them as a sales pitch.
It's more so to know where their money is being invested.
You know, these are the mutual funds and ETFs that
(35:42):
we chose, and here's the reason why. You know, every
one of these has a significant part of your portfolio
and plays a role in your portfolio. And we're not
just putting in five different large cap growth funds that
are all you know, invested in the pretty much as
similar underlying stock positions. You know, each position in here
is has a purpose and is pretty strategic as far
(36:05):
as why we've.
Speaker 4 (36:06):
Implemented it into the model. Yeah.
Speaker 2 (36:09):
So the bottom line is is that anytime that you're
moving assets, we're advocates don't have a check unless it's
mandatory through the employer that they want to send a
check out. A lot of times we like to basically
have the money go directly trustee to trustee, transfer one
custodian to another custodian. But you know, there's been a
(36:30):
lot of changes that have been made over the last
two to three years. I'm not too sure if you're
familiar with the Secure Act, but the Secure Act changed
the dynamics of non spouse beneficiaries inheriting these types of assets.
For years, used to hear about the stretch IRA. The
(36:50):
stretch IRA. You know, take your account, you can basically
stretch it out for decades and it's going to be
able to be worth hundreds of thousands of dollars, if not,
you know, millions of dollars depending on the pool of
money that you started with in order to be generational planning. Well,
those days are gone. Those days are goe. Non spouse
(37:11):
I want to overemphasized non spouse beneficiaries inheriting and IRA
are Now it's underneath the Secure Act, and it mandates
that the entire account balance must be withdrawn within ten
years of the original owner's death. Ten years okay, So
this is often what you hear in the financial services
(37:33):
industry concerned what they call the ten year rule. And
there's exceptions for eligible designated beneficiaries who are chronically ill
or those who are more than ten years younger, but
for practical purposes, most of us are going to basically
be governed by the ten year rule. Now, we've been
in situations I wanted, in particular that we had were
(37:58):
a husband and wife, both successful. The sister was successful,
she passed away, she left the money to the sister.
She didn't have any children. It was a significant amount
of money. And now they have to take these huge
distributions based off of the ten year rule, and it's
causing all sorts of financial tax implications, and it's also
(38:20):
affecting what your Social Security payments. We're gonna be right back.
We got to take a hard break. This is the
retirement planning. Are you ready for retirement or just hoping
(38:41):
it works out. Don't leave your future in the chance
at the Retirement Planning Group. We hope you create a
personalized retirement plan so you can relax knowing you are prepared.
Take action today called eight eight eight five eight zero
one nine nine. That's eight eight eight five eight zero
one nine nine, or visit us at our website rp
gretire dot com to schedule your complementary consultation. Your future
(39:05):
will say thank you.
Speaker 4 (39:17):
All right, you're back. This is a retirement planning show. Again.
Our telephone number.
Speaker 2 (39:22):
We're live. We're actually in the studio if you would
like to talk to us today you having any particular questions,
it's three one five four toweven ninety seven. We are
located in Pioneer Business Park. We are going into brand
new offices hopefully in the next two to three months.
(39:43):
We love the Syracuse region. As I said, we've got
five locations now in New York State. We do a
lot of work in the Syracuse area with the National
Grid employees. We'll be out there. We'll be in Buffalo,
Syracuse this week to do some presentations. But again we're
live today. If you have any questions, three one five
four to two one ninety seven ninety seven three one
(40:06):
five four to two one. That's ws YR. Any question all,
even if it's off topic, that's fine. Today we're talking
about trillions of dollars in an iras. What's your plan?
How proactive are you are you passive? Tucked a little
bit about onboarding, how we transfer assets in and start
building the buckets of money. But the big thing, really, Chris,
(40:26):
this is tenure, you know, the Secure Act. Basically, you know,
you've got to have the money, a non spouse beneficiary
has the money, have it out over a ten year
period of time. And that's for some people, this is
going to be a huge tax consequence.
Speaker 3 (40:40):
Yeah, huge, Yeah, especially if they don't really want the money.
I mean you can delay it till the tenth year
and then take it all at once, or take it
all in the first year and just oh.
Speaker 2 (40:48):
Yeah, it takes something. It takes rm ds. But you
know the bulk of it, you know, has got to
come out in ten years.
Speaker 3 (40:55):
Yeah, well all of it has to come out ten
years per one hundred percent has to be out the
door in ten years.
Speaker 2 (41:02):
So you know, one of the things that we talk
about is distributions from inherit I rays, you know, wroth,
don't worry about it. Because it's all tax free, even
though you're a non spouse beneficiary. There's their rmds that
are required with WROTH accounts for non spouse beneficiaries. But
the thing is is that traditional irase, all those distributions
(41:23):
are going to be taxable as ordinary income the year
that they're received. And you know, if your parents are
living eighties and nineties and you're you're, you know, mid fifties,
early sixties, you're in prime time making the most amount
of money. The last thing you need is to have
a distribution of one, two, three hundred thousand dollars a year,
(41:44):
not because you want it, but because you're forced to
take the distribution.
Speaker 3 (41:49):
Yeah, yeah, force liquidation. You know, the government obviously has
a plan for that money. They want their tax dollars
out of it. So understanding that and then planning around
that is something that you know, we try to overemphasize.
Speaker 4 (42:01):
The people that you know, it's it's going.
Speaker 3 (42:04):
To come out regardless, so you might as well plan
for it and take distributions, you know, at your discretion.
Speaker 4 (42:11):
Yeah.
Speaker 2 (42:12):
So one of the things that we talk about is,
you know, for people that are pre retirement five to
seven years, you know, if you're loaded up right now
with pre tax dollars, which a lot of people are
because of the match with the four and one K.
You want to make sure that you understand is that
you want to have some money tax preference on the sideline.
(42:32):
As I said, you want to be able to go
reach into the pot, grab the money and not have
a tax consequence, especially if you're concerned about your healthcare costs.
A lot of people want to retire before the age
of sixty five. For some of us, we can't afford
to do it simply because of the premiums for healthcare.
One of the pots that's really the what we call
a bridge to sixty five, it's the HSA accounts, the
(42:54):
Health Savings account. We can utilize that because it's distributions
that are basically tax free, and then they facilitate, you know,
the ability for you to go into the retirement years.
So it's important for you to have these types of
conversations with your financial advisor, and it's important for you
to have a conversation is what what you what you
(43:15):
are looking to achieve in your retirement years because, as
I said, the retirement planning group does not have a
cookie cutter approach. Every family, every individual has separate goals
and objectives, and we try to facilitate that. But the
landscape is changing dramatically, folks. And when I say it's changing,
it's kind of an understatement. So we have a caller.
(43:38):
We have Carl on the line. Hey Carl, Yeah, how
are you?
Speaker 4 (43:43):
Sir? Who's there? Who are you trying to get? Ahold of?
Speaker 2 (43:48):
Sir?
Speaker 4 (43:49):
This is Dave Kopek.
Speaker 2 (43:51):
Well they come out of here and widgel and.
Speaker 1 (43:58):
I forget what I.
Speaker 3 (44:01):
But I'm a native.
Speaker 6 (44:03):
I'm a native.
Speaker 2 (44:11):
Thank you for you're breaking up on Carl. Thank you
for calling in though we appreciate your phone call. Uh
very I'm glad you're a native of Syracuse, and God
bless you and I wish you great success and uh,
you know, hopefully we'll meet you face to face someday.
But that's it's not like you're outside a little bit.
(44:32):
We're having difficulty hearing you. But I want to talk
a little bit about I raise and uh why you
want to do planning. You know, there's a gentleman out there.
There's two individuals that I have a lot of respect for,
Ed Slott s l O. T. T. And Natalie Choked
C H O A T. E. They are both what
(44:52):
we considered to be a retirement plan. UH experts. Uh
Ed has been on he's all over the internet, he's
got books. We sponsored him for one of his PBS
presentations in the Capital District region. And I think it's
important for you to understand the train that's going down
the track. If you have a lot of money and
(45:14):
qualified assets pre tax accounts, because those are accounts that
you do not have one control over, the government will
force you to liquidate those assets when you least want
the distribution. And a lot of times it's when you
have bad health or you're in a situation where you
really don't need the money, because you're in a situation
(45:36):
where you're later in life and you're in the slowgo
or the no go years. And these large distributions are
coming out simply because of required venom distribution.
Speaker 3 (45:47):
Yeah, and there's a lot of you know, strategies to
kind of prepare for your required minimum distribution, whether that's
a ROTH conversion before your arm d age. You know,
that's something that a lot of people find, I guess
beneficial for them, you know, if they're trying to avoid
taxes as the ultimate concern they you know, broughth iras
(46:09):
don't have rm ds that they're subject to. Other options
are that are available to you is you know, qualified
charitable distributions, So after your seventy and a half, you
can give up to like one hundred thousand dollars a
year directly to the charity.
Speaker 4 (46:26):
But that counts.
Speaker 3 (46:27):
Towards your R and D H and it's not taxble income,
so that's that's a benefit, you know. So there's a
lot of ways to kind of coordinate around your rm ds.
You can coordinate it with your other income that you're
taking as far as your pension, Social Security, any type
of annuity income that you're taking. So to just understand
that your R and D income is only going to
(46:49):
increase once it starts.
Speaker 2 (46:51):
Well, I think it's critical when when you know the
old saying, know what you own? You know, I know
that's out of side, out of mind. When you keep
on accumulating money and accumulating money in four O one K,
it's important for you to basically do some planning as
far as you know what am I creating here. Tax
planning I think is crucial, especially if you're worried about,
(47:16):
you know, a starving artist or a child that you
want to pass money on to.
Speaker 4 (47:20):
You know, this ten year rule changes the game.
Speaker 2 (47:22):
It has a significant impact on tax and the thing
is is that depending I mean, there's a lot of
people that we work with that have well over seven
figures inside their IRA accounts. Depending on the amount of
children that they have, this could really have a major
impact as far as not only their own personal estate,
but also their own personal tax liability.
Speaker 4 (47:44):
You know.
Speaker 2 (47:45):
I mean, if I'm in my go go years and
I'm making a lot of money and I'm now receiving
you know, one hundred or one hundred and fifty thousand
dollars a year for the next ten years, and that's
that's a major tax consequence that's going to have to
be satisfied.
Speaker 4 (48:01):
Yeah. Yeah, that's true.
Speaker 3 (48:03):
And there's like a lot of tax concerns that are
just gonna inevitably come about with r and ds. You know,
there's a lot of different strategies around it, in different
philosophies on what that money should be spent on. You know,
whether it's just your living expenses, you know, or it's
long term care insurance. You know, that's another avenue you
could go and say, you know, whatever, my R and
(48:24):
D starting in the first year, I'm just going to
take this money and kind of pay it into my
whatever my long term care insurance plan is or gifted.
You know, a lot of people, we just had a
couple of appointments within the last week where people are
more I guess aggressive on trying to gift their children
some money while they're still alive and see and help
(48:47):
their children while you know, they're in their thirties or forties,
rather than when maybe their parents pass away and then
now they're fifty and sixty and they don't necessarily need
the money as much. You know, maybe they have young
kids and they want to see them utilize the money
while it could really help them, rather than later in
life when they don't necessarily need it as much. So
that's something that's a concern to you know, some parents
(49:09):
and people out there. But it's all about what you
ultimately want to do with it and just planning around it.
Speaker 2 (49:15):
Yeah, and it's it's important for you to basically, as
we said, you know, no plan any destination will do.
You know, it sounds kind of corny, It sounds kind
of simplistic, but it's one hundred percent true. We are
major advocates of building out a plan. The software package
that I talk about all the time e Money. It's
(49:35):
basically your financial dashboard. You can basically have that as
in depth as you want it to be or superficial
as you want it to be. It's really very powerful
as far as what it can do. So anything that
we're talking about today, As I said, we offer a
complimentary consultation at our Syracuse office. We will actually be
(49:56):
out there this week if you want to come in
and have a chat with us. It's eight eight eight
five eight zero one nine nine. That's eighty eight five
eat zero one nine. When nine you're getting excited about
seeing some Syracuse basketball this year.
Speaker 4 (50:09):
I am.
Speaker 3 (50:10):
I hope that they become competitive again and get you know,
you got Carmelo Anthony's kid going in there. So hopefully
the program is revamped a little bit, we can see
some success.
Speaker 4 (50:23):
It'll be fun.
Speaker 2 (50:24):
So again, as I said, we are the Retirement Planning Group.
We have an office in Syracuse, Albany, Saratoga, Glenn's Falls Oneanna.
We welcome the opportunity to sit down with you and
see if we can be of benefit of working with us.
And as we always say, you know, the worst thing
that can happen is that we become friends. We have
(50:45):
a chat. It's always good. We had a gentleman nicoled
in earlier this morning we were doing another show. You know,
getting his second opinion is never hurtful. It makes I
always think that it's you know, any time you go
to the doc and they say you need XYZ done,
a lot of people want to go out and they
want to get a second opinion. I think it's true
(51:05):
in the financial services industry. Better fact, we overemphasize when
people come to us that haven't seen another team or
another financial advisor, We basically say, go talk to somebody
else and see what their secret sauce is. How do
they how are they going to build out your plan?
Speaker 4 (51:20):
Big?
Speaker 2 (51:20):
I think you know, we are big believers in integration,
not only as far as investing the money, but also
understanding asset protection and the legacy that you wish to accomplish.
So again, our telephone number is eighty eight five eight
zero one nine one nine. Check us out on the
(51:40):
web rpgretire dot com, rpgretire dot com. I'm Dave Kopek
for my son and myself. Have a great weekend, and
we'll see you next week for another retirement planning show.
The information our services discussed on this show is for
informational purposes only and is not intended to be personal
financial advice. The investments and services offered by us may
not be suitable for all investors. If you have any
doubts as to the merits of an investment, you should
seek advice from an independent financial advisor.
Speaker 2 (00:15):
All right, all right, Sarah cues, how are you. This
is Dave Kopek. We are live today. This is the
Retirement Planning Show. We're here every week to hopefully educate
you on the landscape of the new retirement that we face.
Of the president of the Retirement Planning Group, we have
an office at Carrier Circle. Anything that I'm discussing, if
(00:38):
you want to comm in and have a chat with us,
we'd love to meet with you. Our telephone number is
eighty eight five eight zero one nine one nine eighty
eight five eat zero one nine one nine. And today,
if you want to talk to us, you can call
the studio at three one five four two one ninety
seven ninety seven. That's three one five four to two
(00:58):
one w SYR. And today we're talking about the eighteen
trillion dollar problem that some of us will face in
our retirement years. And believe it or not, folks, that's
how much money is out there and iras right now,
individual retirement accounts iras eighteen trillion dollars. And for some
(01:22):
of us it's great because we're going to utilize that
money in order to facilitate our retirement income. For other
people that have pension benefits and they have social Security,
it can be very problematic asset class, especially as you age,
because of that magical thing called required minimum distribution. I
(01:43):
have my son with me this afternoon. Christopher William Hello, Chris, Hello,
So we're talking about iras, Yes, we are. We're going
to talk about some of the pros and some of
the cons of iras. What are some of the the
pros of iras?
Speaker 3 (02:03):
The pros of iras well, I guess before they came
in IRA you know it's your four toh one K
or whatever investment vehicle you were investing in through your plan.
You know the benefit of them is you're putting money
in before it gets taxed, so you're getting more as
far as a growth potential on that money when you
put it into your retirement account. You know you can
(02:25):
invest it before you're getting hit for taxes so that
it has a higher potential to grow to a bigger number.
Speaker 2 (02:33):
And then one of the biggest things about the iras,
of course, it's what's your money. You know, we used
to live in a world that we worked for thirty
or forty years. We'd walk out the door, they give
you the gold watch, they give you a pension benefit,
a little bit of healthcare, and the way you would
go those days are going Nine out of ten individuals
today have to take their life savings what they've created
(02:54):
in four oh one k's, four or three b's and
now they're going to have to basically create pension benefits
or assets that will last a lifetime. So we're going
to talk a little bit about IRA assets today. You know,
it's estimated that they're worth at the end of twenty
and twenty four, they were a little over seventeen trillion dollars.
Now it's estimated that they're close to eighteen trillion dollars
(03:17):
after the first half of two thousand and twenty five.
But we're going to talk a little bit about how
you want to look at these assets, how you want
to ultimately manage this money during your retirement years, especially
if you need to draw income. And the bottom line
gets down to is that you know how much should
(03:40):
you use of these assets during your go go years,
not your slow go or your nogo years. Because as
we said, the government has a plan for you, and
it's called required minimum distribution. These are distributions that you
have to take whether you want to or not, and
they start at age seventy three. So what are the
(04:03):
three assets that are problematic Chris? What are the assets
that as you age? These are assets that you want
to utilize in your lifetime and not basically pass them
on to the next generation.
Speaker 3 (04:17):
Yeah, that would be an IRA account. That would a
traditional traditional IRA account, not a roth IRA.
Speaker 4 (04:25):
A very good non.
Speaker 3 (04:27):
Qualified annuity in series E bonds, right, And.
Speaker 2 (04:32):
The reason why all of these assets that we just
talked about iras, series E bonds and non qualified annuities
are ird income or respect to the deceit. That means,
if you don't utilize it in your lifetime, what you're
doing is that you're sending a tax liability to your
loved ones, your children, and your grandchildren. So these are
(04:53):
problematic assets to leave the errors due to the tax implications.
These are assets well offering potential benefits during your lifetime,
they can trigger significant tax burden for the beneficiaries when
they inherit it. So we'll talk first about iras estimated
to be about seventeen and a half to eighteen trillion
(05:15):
dollars right now, and these are moneies. Typically, what people
do is what Chris. When they come in, they have
a four to oh one K, they work for XYZ Corporation.
They now have all this money in their four oh
one K. Use National Grid as an example. They have
their four oh one K program at Vanguard, and then
they have a cash balance account.
Speaker 4 (05:36):
What are we going to tell them to do?
Speaker 3 (05:39):
Yeah, So the people who work for a company like
National Grid and with a large chunk of money in
a four to one K and then they have the
benefit of a cash balance plan. You know that large
four oh one K, you know, we would recommend that
you roll it over into a rollover IRA and then
build out some type of investment portfolio that suits your
(05:59):
risk tolerance in retirement and then pull your income from
that account. Then with that cash balance plan, you could
also we always recommend taking the lump sum. You know,
it's offered as an annuity as well, but you can
shop you know, the annuity market on your own through.
Speaker 4 (06:17):
The uh what's it through us? Through US?
Speaker 3 (06:21):
Well, yeah, through us through retirement planning, but through the
insurance companies. That's what I was gonna say, through the
insurance companies that are out there. You know, there's a
lot of annuities that offer you more benefits than then
that would be through your work. But for the recommendation
for that would be you can you can still turn
that into annuity, just do it on your own terms
and create you know, a lifetime income stream for yourself
(06:42):
and your beneficiaries if that's a you know, concern for you.
But you could also roll that into the same pie
of money that you just rolled into your role over
IRA account and just supplement your income in retirement with that.
Speaker 4 (06:55):
Yeah.
Speaker 2 (06:56):
The thing is is that you know, uh, when you
take the company's plan and you basically that's it. You know,
this is what you're going to get. You know the
advantage of rolling it into a self directed IRA, the
cash balance account or the other assets that could possibly
be loaded into a pension benefit through your previous employer.
I personally, after forty three years of doing this is
(07:18):
always more advantageous to have your plan because not there's
no really cookie cutter approach where any one product fits
all the individuals that's out there. You can get lifetime guarantees,
you can get you know, pension benefits that.
Speaker 4 (07:33):
You can create.
Speaker 2 (07:34):
And also there's a legacy piece meaning that if you
get the pension benefit through the company. A lot of
times when you pass away, the benefit passes away, whether
you select an individual or a joint benefit for both
you and your spouse. So the selection that you make
when you roll the money into a self directed IRA
(07:55):
is critical because a lot of times you can't go
back and you can change you can't change it.
Speaker 4 (08:00):
Right.
Speaker 2 (08:00):
So you know, today we're live. We haven't been live
for a while in Syracuse. So I'll give out our
telephone number again.
Speaker 4 (08:07):
Uh.
Speaker 2 (08:08):
We always like phone calls because I always think that
makes it much more interesting for you and us. Our
telephone number at the studio if you have a question,
is three one five four to two one ninety seven
ninety seven. That's three one five four to two one
ninety seven ninety seven. You know, we talked a little
bit today about beneficiary designations, why they're critical. Well, you know,
(08:31):
we'll talk a little bit about the IRA, why it's
important to have named primary beneficiaries and of course contingent beneficiaries.
But first and foremost, the reason why you want to
have your primary beneficiaries intact is because you want to
make sure that the surviving spouse or your loved one
has the ability to carefully, carefully select what option is
(08:55):
going to ensure that they're going to have quality of
life based on this st age of life that they're in.
And what we're going to talk a little bit about
is a disclaimer. Why a disclaimer that's attached to your
IRA is critical because as you age, it's probably not
necessary for you to retain all of those assets. Mean,
(09:15):
I love you, planning I love you, I leave all
the assets to you. That's usually a recipe for major
tax liability. And if there's a health event, it's not
going to go to your loved ones, it's going to
go to the nursing home.
Speaker 3 (09:29):
Right, yeah, you know, setting yourself up in your state
up to avoid the costs of nursing home obviously or huge.
You know, they can definitely liquidate in a state with
you know, the mass amount of monthly payments that we
see these facilities have nowadays.
Speaker 2 (09:47):
So let's start off. Okay, So when's the earliest you
can get the money out of your IRA fifty five
fifty five if you keep it inside your four oh one.
Speaker 4 (09:57):
K fifty nine and a half for majority of peace.
Speaker 2 (10:00):
Right and at fifty nine and a half, what do
we usually ask people to do because we start wanting
we want to if you've worked with XYZ Corporation for
like twenty five years, you got a million dollars inside
your four one K at age fifty nine and a half,
you have the ability to transfer that assets.
Speaker 4 (10:17):
Do a transfer to.
Speaker 2 (10:19):
What they call an in service distribution. It's a non
taxable event and it allows you to basically move the
money over to a self directed IRA in order to
start building out your own personal retirement income distribution plan.
But you know what, we have our first caller of
the day. We have Victoria, and we're glad that we
(10:40):
have a caller Victoria because that always makes it much
more interesting on our part.
Speaker 5 (10:45):
Good afternoon, goody afternoon, thanks for taking my call. I
wanted to ask if you have any suggestions and how
I can get my son to invest. He's forty two
and he makes the good money, and he will not
do anything I asked him to do, like just so
(11:07):
he can start saving money because I did it way
too late. I said, well, I don't just do something
in the market, a little maybe some the money market,
some kind of a saving so you'll have it, you know,
when you retire. So I was just to get any suggestions.
Speaker 2 (11:24):
Does he have does he have does he have an employer?
I'll get back to that question when we come back.
I guess we're gonna I think we're going to have
to take a break here. Employer Okay, he does have
an employer. Okay, So what we'll do is we'll discuss
that I've got to take a hard break here. We'll
(11:46):
discuss how we can get your son into what we
call a discipline approach in order to start setting somebody aside.
You've spent a lifetime saving for retirement. Now it's time
to make that money work for you. Here's the secret
most people miss. You have to create your own retirement
income plant. Social Security is not enough, pensions are rare.
(12:09):
You need a strategy that turns savings into monthly income
that will last a lifetime. At the retirement planning group,
we build customized income distribution pinins so you can retire
with confidence. Retire smart, Live well. Call eight eight eight
five eight zero one nine one nine for your complementary consultation.
You've spent a lifetime saving for retirement. Now it's time
(12:29):
to make that money work for you. Here's the secret
most people miss. You have to create your own retirement
income plant. Social security is not enough, pensions are rare.
You need a strategy that turns savings into monthly income
that will last a lifetime. At the Retirement Planning Group,
we build customized income distribution pins so you can retire
with confidence. Retire smart, Live well. Call eight eight eight
(12:52):
five eight zero one nine one nine for your complementary consultation.
Six percenters, do you know that eighty six percent of
the population has no defined benefit pension plan. For most
of us, we have to take our life savings and
create a paycheck for the rest of our lives in retirement.
What is your plan for retirement income distribution? How you
manage your assets during the most critical years.
Speaker 4 (13:13):
Of your lifetime.
Speaker 2 (13:14):
Nobel Prize winning economist William Sharp has called retirement income
distribution the nastiest, hardest problem in finance. He points out
that investment uncertainty and mortality can derail the most careful
laid out retirement income plan. Call our offices today to
start the process of building a retirement income distribution plan.
After forty one years of being in the financial services business,
(13:36):
you need to start taking action to start building your
own personal retirement income distribution plan. How do you do that?
To take action five one eight five eight zero one
nine one nine. That's five one eight five eight zero
one nine one nine or RPG retire on the web.
Don't procrastinate, motivate to start building your retirement income distribution
(13:57):
plan five one eight five eight zero one nine. We
are living through the greatest wealth transfer in the history
of mankind. Trillions of dollars of wealth will change hands
from one generation to the next. Your money to our
beloved children and grandchildren. Are you ready? Your future is
written by chance, it's written by action. Now's the time
to build your plan, protect your assets, and position yourself
(14:18):
for the opportunity. Don't wait, take action if future favors
those that are prepared. Call eighty eight five eight zero
one nine to one nine. That's eight eight eight five
eight zero. All right, we are back this is the
Retirement Planning Show. I'm Dave Kopek. I'm here with my son,
(14:41):
Christopher William. We have five locations in New York State
and soon to have one in Florida. We welcome your
phone calls. We're going to get the victorious question here.
But our telephone number here is three one five four
Towne seven ninety seven. That's three one five four to
two one w S.
Speaker 4 (14:59):
Y are all right?
Speaker 2 (15:00):
Victoria's got a sun. Seems like he's got a problem
being discipline in order to set some money aside. Chris, right,
So what's your answer? What do we do to help
of Victoria's son to get into some kind of a
disciplined savings plan.
Speaker 3 (15:16):
Yeah, so, I mean, just to reiterate the opportunity lost
now that he's forty two years old, and this is
something that he should have established in his early twenties.
You know, there's a scenario that I just played out
while the commercials were running. If he were to invest
five hundred dollars a month, which is six thousand dollars
a year at an average annual return of seven percent,
(15:41):
and you know, it ran a scenario for Adam and Alex.
These are just example names the h Adam started at
twenty one, Alex started at forty two, her son's age.
They're both contributing to an IRA account at five hundred
dollars a month, six grand a year, Alex who started
at twenty one at the and they both stop at
(16:01):
age sixty five investing into this account at the person
who started at twenty one is going to have one
point five million dollars one point four to nine million
as far as their valuation on that account, with a
seven percent annual growth rate, which is just what the
market tends to grow at year over year, with a
total contribution of two hundred and sixty four thousand dollars
throughout that timeframe. And then you got Alex who started
(16:26):
at age forty two and contributes, you know, for twenty
three years instead of forty four. So from forty two
to sixty five he contributed one hundred and thirty eight
thousand dollars and with that same seven percent growth rate,
at age sixty five he has accumulated three hundred and
five thousand dollars.
Speaker 4 (16:43):
Big difference, huge difference. Yeah, So that's just goes to
show what's.
Speaker 2 (16:47):
That called in financial planning lost opportunity cost.
Speaker 3 (16:50):
You're right exactly. So compounding is exponential. You know, the
more the more time you give your money in the market,
the more it's going to grow on itself over and
over and over again. So you can't make up for
lost time. That's you know, the number one thing I
would reiterate to him over and over again. Every year
that you delay it, you procrastinate it, and you don't invest,
(17:12):
is just delaying more and more value for your future self.
Speaker 2 (17:16):
I know there's one thing for sure. If there's a
company plan, there's a match, always take advantage of that.
So if the company is typically three to five percent,
so if the company matches three percent and you put
in three percent of your wages, you got one hundred
percent return from day one, dollar one. You're foolish. Tell
him he's foolish if he doesn't take advantage of that.
(17:38):
The second thing is is that at the retirement planning group,
we're not big believers. We're not major advocates of pre
tax money. I think it's good out of sight, out
of mind, but a lot of times people want to
have their money tax preference at retirement, meaning when you
go in and you get it you're not gonna have
to pay a whole heck of a lot of tax
iras and four oh one k's are very very taxable,
(18:01):
meaning that a dollar in is a dollar out taxes
ordinary income. A wroth wroth war one k a wroth ira.
To me, it was the greatest thing that the federal
government ever gave us because you get the tax deferred growth,
tax free, however you want to say it. But the
thing is is that once you meet the criteria five
(18:23):
years or fifty nine and a half, all that money
is what all tax right.
Speaker 4 (18:27):
Yeah, that's all tax right.
Speaker 3 (18:30):
Yeah, So even just maxing out of roth ira every
year would while he has earned income would be you know,
the minimum as far as getting investments started. So that's
where I would start, you know, open up a roth
ira because you can always grab once you meet that
five year requirement, you can always grab your contributions penalty free.
Whatever you put into it, you can get out of it.
It's just the gains that need to stay in there
(18:51):
until fifty nine and a half. So that would be
step one, you know, tell them to get a roth
ira opened up and just start set up a periodic plan.
I know, specifically for me, I have a roth Ira.
I set up a periodic plan where it just pulls
money out of my checking account every month.
Speaker 4 (19:08):
It does.
Speaker 3 (19:09):
Yeah, it just pulls it out of my check account
every month. I don't even see it. It just goes
in and invests itself in the investments I have in there.
Speaker 4 (19:17):
So it's automatic.
Speaker 2 (19:18):
It's like anything else, you know, motivation sometimes you know
you can you can lead a horse to water, you
can't make a drink.
Speaker 4 (19:26):
You know it's saying.
Speaker 2 (19:27):
But the thing is is that we're not adverse to
talking to people on the telephone, Victoria. So if you'd
like us to have a chat with them, we be
more than a habit to have a chat with them
and see if we can lead them to the promised
land of investing money and having a future that's going
to be comfortable for himself. So we'll give out our
(19:48):
telephone number throughout today's show. But again we are live
three one five seven ninety seven. That's three one five
four two one w S y R. If you have
a question or I'm at we'd love to hear from you.
Today we're talking about iras. We're talking about how significant
they are to the tune of somewhere between seventeen and
(20:09):
a half and eighteen trillion dollars of money out there.
By the year two thousand and thirty, two thirds of
the investible assets in this country we'll be controlled by
women women. So it's a staggering amount of money. Eighty
five trillion dollars of wealth we'll transfer over the next
(20:32):
twenty to thirty years. What's your plan? Do you have
a plan? And especially with IRA assets, you know, there's
a lot of individuals out there that have specific ways
in order to take distributions. We'll talk a little bit
about it today as far as how we look at it.
So when people come in Chris, they have it. We
(20:53):
have a data collection for them that we look at.
Why don't you kind of go through what our process
is and how we basically hold out a plan for
people that are looking for retirement income distribution.
Speaker 3 (21:04):
Yeah, so for the folks who call us up and
want to set up an initial appointment, our process is
the first appointment, you know, you reach out to the office,
you speak with Jimmy. He gets information from you. We
fill out, you know, a basic questionnaire just to get
your email and what your name is, and that sort
of stuff. But once we have that initial appointment with you,
(21:27):
that's just a cup of coffee and we sit down
and chat about what you filled out in the booklet.
So that confidential questionnaire booklet that we send out to everyone,
that's super important, you know, for everyone to fill out
because that gives us an overall snapshot of your financial picture.
And then from there, you know, the first appointment, we
(21:47):
never do business on the first appointment. It's always a
meet and greet and see if you know we're a
fit for you, you're a fit for us. And from
that point, we then set up a follow up appointment
where we plug in all of that booklet information into
a software system that we utilize for projections. It's called
e money, and from there we can build out different scenarios,
(22:11):
give projections over a turt twenty to thirty year timeframe based.
Speaker 2 (22:15):
Success gives us a percentage of success that we can
have based off some modest assumptions.
Speaker 3 (22:21):
Yeah, and the keyword is modest. You know, we're not
over projecting for anything. We utilize a seven percent annualized
growth rate, you know, and over project for inflation. As
far as numbers that we're looking to achieve within the
account itself. You know, if someone's more conservative, will drop
those growth numbers a little bit, maybe to six percent
or five just to give them a modest outlook on retirement.
(22:43):
We're not looking to show you the ceiling, you know,
We're going to give you the bottom line number what
we feel comfortable with as far as a spend level
for you in retirement. So the most important thing is
to figure out what your baseline income needs would be,
and then from that point in the baseline and income needs,
it's just how much money is going out the door.
How much do you have to live on to live
(23:04):
comfortably with your current standard of living.
Speaker 2 (23:08):
So we know that there's a lot of money out
there in IRA assets. We know that the percentage of
retirement assets right now, about thirty eight percent of wall
us A retirement assets are IRA accounts. In twenty and
twenty four the end of twenty forty four percent of
(23:29):
you held IRA assets traditional versus WROTH iras. Forty four
percent was traditional and twenty six percent has ROTH accounts.
So there is a significant amount of money out there
in these types of accounts. The advantage of the WROTH
is what Chris.
Speaker 4 (23:50):
Tax free, tax free free distributions, no free growth.
Speaker 2 (23:54):
No required minimum distribution either for the primary or the spouse.
There is a required minimum distribution for non spouse beneficiaries,
but who cares because it's all tax free money. So
when you consider making your contributions for your retirement years,
(24:15):
you've got to start thinking about what accounts are going
to give you tax preference when you reach that magical
age of sixty five sixty seven, seventy years of age,
because when you reach into the pot, you want to
have some money that's going to be associated with tax
front preference. Fidelity just came out with their number for
(24:38):
individuals that are retiring healthy sixty five year old couple
in the year twenty and twenty five, three hundred and
fifty thousand dollars is what's expected that you're going to
spend an out of pocket expenses for your medical care,
and that has nothing to do with long term care
insurance three hundred and fifty thousand dollars. If that's the case,
(25:00):
you don't want to keep on dipping into your IRA account.
You're going to want to have some money that's either
in wrath HSA accounts health savings accounts in order for
you to satisfy these bills and not have a major
tax liabilding when you have to reach into the pot
and take the cash.
Speaker 4 (25:17):
Yeah.
Speaker 3 (25:17):
Yeah, No, it is important to diversify within your own
accounts and have accounts for separate things, you know, like
a raw IRA account.
Speaker 4 (25:27):
And also an HSA account.
Speaker 2 (25:29):
You know.
Speaker 4 (25:29):
HSA accounts now.
Speaker 3 (25:31):
Can be utilized on a tax free basis as long
as it's for qualified medical expenses.
Speaker 4 (25:36):
So that's that's another important.
Speaker 2 (25:39):
A lot of people don't realize the high deductible plans
now that in order for you to qualify for an
HSA account are minimal as far as the amount of
out of pocket expense that you have a couple thousand dollars,
I believe it's somewhere in that neighborhood. The advantage, especially
if you're healthy, the hsas is they allow you to
basically grow money on a tax free basis, not only
(26:01):
during your accumulation years, but also during your post retirement years.
When you get into your retirement years, you can go
into that pot and it stays with you. It stays
with you, it's your money. So we're gonna talk more
about iras today. This is the Retirement Planning Show. I'm
(26:21):
Dave Kopek, president of the Retirement Planning Group. We're going
to be back after the news. We'll see on the
other side. Are you ready for retirement or just hoping
it works out? Don't leave your future to chance. At
the Retirement Planning Group, we hope you create a personalized
(26:43):
retirement plan so you can relax knowing you are prepared.
Take action today called eight eight eight five eight zero
one nine nine. That's eight eight eight five eight zero
one nine one nine, or visit us at our website
rpgretire dot com to schedule your complementary consultation. Your future
will say thank you. Six percenters. Do you know that
(27:05):
eighty six percent of the population has no defined benefit
pension plan. For most of us, we have to take
our life savings and create a paycheck for the rest
of our lives in retirement. What is your plan for
retirement income distribution? How you manage your assets during the
most critical years of your lifetime. Nobel Prize winning economist
William Sharp has called retirement income distribution the nastiest, hardest
(27:27):
problem in finance. He points out that investment uncertainty and
mortality can derail the most careful laid out retirement income plan.
Call our offices today to start the process of building
a retirement income distribution plan. After forty one years of
being in the financial services business, you need to start
taking action to start building your own personal retirement income
(27:48):
distribution plan. How do you do that? To take action
five one eight five eight zero one nine nine. That's
five one eight five eight zero one nine one nine
or RPG retire on the web. Don't put frastinate, motivate
to start building your retirement income distribution plan five eight
five eight zero one nine nine. Retirement is in a
(28:08):
Sunday thing. It's a now thing. Whether you're just starting
out or nearing the finish line. The best time to
build your retirement plan is today. Don't wait for the
right moment. Let's create a plan that works for you.
Secure your future and the freedom that comes with it.
Call my office today and take action. Eighty eight five
(28:29):
eight zero one nine nine. That's eighty eight five eight
zero one nine nine and your future will thank you.
Speaker 6 (28:36):
So, why are.
Speaker 4 (28:59):
We are back?
Speaker 2 (29:01):
I don't know what that is. It sounds like a
little ac DC. Sounded pretty good. Let's throw the mics
down and just listen to the tunes.
Speaker 4 (29:09):
Man. Yeah, I've Dave Kopeck.
Speaker 2 (29:12):
This is the retirement Planning show. We're here on the
weekends to hopefully educate you on this new landscape of retirement,
not only for boomers, but also the other segments of
the population that are coming up xyz g's whatever they are.
So you know, there's a lot of money transferring folks
over the next twenty to thirty years, anywhere from eighty
(29:33):
to eighty five trillion dollars of which a good chunk
of that is going to be qualified assets estimated somewhere
between seventeen and eighteen trillion dollars in high rays. You
need to know the rules, you need to know the regulations.
You need to know exactly how important it is to
dotg your rize and crush your t's. But today we're
going to start off about onboarding. My son does a
(29:55):
lot of the onboarding and the team that he works with,
So why don't we talk about how do we on
board the assets into the ir rates.
Speaker 3 (30:03):
Yeah, that from that second appointment that I touched on earlier,
where we go over all of the projections and show
you kind of a financial snapshot of what a turt
twenty to thirty year outlook looks like within your account
and what you know, how we can satisfy that baseline
income need that you need in retirement. You know, from
(30:24):
that point, the next step would be the onboarding process,
which is you know, doing all the paperwork and then
getting the accounts established and the assets rolled into these accounts.
And from that point, you know, we would we would
then review different investment portfolio allocations based on your risk tolerance.
(30:44):
We would have you fill out a risk tolerance questionnaire
and you know, based on that in our conversations that
we have within the office, we would then invest the
money accordingly. You know, a lot of people kind of
seem to be geared towards like an income standpoint, generating
income off their account in retirement, sustainable income, you know what,
while trying to get some growth out of the account
(31:06):
and kicking off that money. So we'll set up you know,
banking instructions that have a direct deposit to your checking
or savings account, whatever you want it to be set
up for, and we'll just send distributions out at that
point in time, once you tell us to, you know,
turn on the income stream the assets can sit there
and you know, reinvest interest and dividends or pay it
(31:27):
out to the to the core holding, you know, and
we just send them out to you once you want
that established, you know, once we have a plan set
up as far as how how we want the account
structured and to be paid out, we then implement it
once everything's set up and established.
Speaker 4 (31:44):
Yeah.
Speaker 2 (31:45):
The big thing of course is to make sure, uh,
you know, one of the things that we always say
is don't touch the money. You know, you want you
want the money to go trustee to trustee transfer. We
custodiaan all of our assets that the mothership fit and
you know, we can basically if you have a Fidelity
four oh one K or if you have a Fidelity
(32:07):
account existing account, we can roll that money over. We
can have it at the retirement planning group, you know
within hours.
Speaker 3 (32:14):
Yeah, it's pretty quick. It's within like a twenty four hour.
The main part is just opening the new account for us.
It's it'll probably be there within a twenty four hour period.
Speaker 4 (32:23):
Right.
Speaker 2 (32:23):
So the thing is is that if you currently have
a Fidelity relationship and you're unhappy, or if you're working
with one of the Fidelity offices and you're looking for
a team to work with. We do a lot of
work you know, of course with Fidelity, and it allows
us to basically facilitate consolidation and simplification. As your friend,
(32:47):
you know, we over emphasize that how important it is
to as you age to simplify the process and basically
consolidate your assets because it makes it much easier for you.
I mean you mentioned something this swarning, Chris, which blew
me away. With the other show that we did, you
had a person that came in that headway over two
(33:07):
hundred positions.
Speaker 3 (33:09):
Yeah, two hundred and twenty four positions in an account
that was an IRA account, which my god, you know,
in what I said in the show we did this
morning was basically with these new direct indexing platforms, you know,
it makes sense to sometimes do that in a non
qualified account, which is just a traditional or an individual account, right,
(33:29):
you know, with non qualified assets, because you can do
tax loss harvesting and there's some you know, benefits of
doing that within the account. But for an IRA account, yeah,
we were, we were pretty blown away when he came
in and showed us that you know, twenty five page
statement of just position after position after position.
Speaker 4 (33:49):
It was something who just out.
Speaker 2 (33:52):
Of curiosity, who was the custodian on the account?
Speaker 3 (33:55):
I don't remember, do you remember? No, I'd have to
look it up in the file. But but yeah, I mean,
the the the point to us was, you know, you
have all these assets spread out, You're gonna have, you know,
positions in here that do great, You're gonna have positions
in here that do bad. But it's hindering your growth
on this because you have five hundred dollars spread out
into like each position, or a couple hundred, you know,
(34:17):
one share here, two shares there, one share here. Yeah,
so it just didn't make any sense. And you know,
we tried to ask them politely. You know, we're not
trying to step on anybody's toes, but we were saying,
how are you compensating this advisor? Because if it was
through positions in the account that we're getting charged you know,
commission one, Yeah, it could have been churning the account,
(34:40):
which is never a good thing to see. So you know,
we ended up consolidating the account, simplifying it, putting them
in some type of model asset allocation where and that's
the other thing we utilize the software system Nitrogen for
all of our portfolio construction, and we'll go over that
with clients in an appointment to sit down and show them,
(35:01):
you know, this is what we're doing on the back
end with all of our relationships, you know, not only Fidelity,
but because we are an oria, we have relationships with
every other financial institution and their wholesalers who come in
and explain to us, you know, ETFs and mutual funds
that are that their company offers, and you know that
(35:22):
are either have a great performance track record, are highly
rated through morning Star, which does all of our you know,
research that we do through them. So we show this
to people not to necessarily confuse them as a sales pitch.
It's more so to know where their money is being invested.
You know, these are the mutual funds and ETFs that
(35:42):
we chose, and here's the reason why. You know, every
one of these has a significant part of your portfolio
and plays a role in your portfolio. And we're not
just putting in five different large cap growth funds that
are all you know, invested in the pretty much as
similar underlying stock positions. You know, each position in here
is has a purpose and is pretty strategic as far
(36:05):
as why we've.
Speaker 4 (36:06):
Implemented it into the model. Yeah.
Speaker 2 (36:09):
So the bottom line is is that anytime that you're
moving assets, we're advocates don't have a check unless it's
mandatory through the employer that they want to send a
check out. A lot of times we like to basically
have the money go directly trustee to trustee, transfer one
custodian to another custodian. But you know, there's been a
(36:30):
lot of changes that have been made over the last
two to three years. I'm not too sure if you're
familiar with the Secure Act, but the Secure Act changed
the dynamics of non spouse beneficiaries inheriting these types of assets.
For years, used to hear about the stretch IRA. The
(36:50):
stretch IRA. You know, take your account, you can basically
stretch it out for decades and it's going to be
able to be worth hundreds of thousands of dollars, if not,
you know, millions of dollars depending on the pool of
money that you started with in order to be generational planning. Well,
those days are gone. Those days are goe. Non spouse
(37:11):
I want to overemphasized non spouse beneficiaries inheriting and IRA
are Now it's underneath the Secure Act, and it mandates
that the entire account balance must be withdrawn within ten
years of the original owner's death. Ten years okay, So
this is often what you hear in the financial services
(37:33):
industry concerned what they call the ten year rule. And
there's exceptions for eligible designated beneficiaries who are chronically ill
or those who are more than ten years younger, but
for practical purposes, most of us are going to basically
be governed by the ten year rule. Now, we've been
in situations I wanted, in particular that we had were
(37:58):
a husband and wife, both successful. The sister was successful,
she passed away, she left the money to the sister.
She didn't have any children. It was a significant amount
of money. And now they have to take these huge
distributions based off of the ten year rule, and it's
causing all sorts of financial tax implications, and it's also
(38:20):
affecting what your Social Security payments. We're gonna be right back.
We got to take a hard break. This is the
retirement planning. Are you ready for retirement or just hoping
(38:41):
it works out. Don't leave your future in the chance
at the Retirement Planning Group. We hope you create a
personalized retirement plan so you can relax knowing you are prepared.
Take action today called eight eight eight five eight zero
one nine nine. That's eight eight eight five eight zero
one nine nine, or visit us at our website rp
gretire dot com to schedule your complementary consultation. Your future
(39:05):
will say thank you.
Speaker 4 (39:17):
All right, you're back. This is a retirement planning show. Again.
Our telephone number.
Speaker 2 (39:22):
We're live. We're actually in the studio if you would
like to talk to us today you having any particular questions,
it's three one five four toweven ninety seven. We are
located in Pioneer Business Park. We are going into brand
new offices hopefully in the next two to three months.
(39:43):
We love the Syracuse region. As I said, we've got
five locations now in New York State. We do a
lot of work in the Syracuse area with the National
Grid employees. We'll be out there. We'll be in Buffalo,
Syracuse this week to do some presentations. But again we're
live today. If you have any questions, three one five
four to two one ninety seven ninety seven three one
(40:06):
five four to two one. That's ws YR. Any question all,
even if it's off topic, that's fine. Today we're talking
about trillions of dollars in an iras. What's your plan?
How proactive are you are you passive? Tucked a little
bit about onboarding, how we transfer assets in and start
building the buckets of money. But the big thing, really, Chris,
(40:26):
this is tenure, you know, the Secure Act. Basically, you know,
you've got to have the money, a non spouse beneficiary
has the money, have it out over a ten year
period of time. And that's for some people, this is
going to be a huge tax consequence.
Speaker 3 (40:40):
Yeah, huge, Yeah, especially if they don't really want the money.
I mean you can delay it till the tenth year
and then take it all at once, or take it
all in the first year and just oh.
Speaker 2 (40:48):
Yeah, it takes something. It takes rm ds. But you
know the bulk of it, you know, has got to
come out in ten years.
Speaker 3 (40:55):
Yeah, well all of it has to come out ten
years per one hundred percent has to be out the
door in ten years.
Speaker 2 (41:02):
So you know, one of the things that we talk
about is distributions from inherit I rays, you know, wroth,
don't worry about it. Because it's all tax free, even
though you're a non spouse beneficiary. There's their rmds that
are required with WROTH accounts for non spouse beneficiaries. But
the thing is is that traditional irase, all those distributions
(41:23):
are going to be taxable as ordinary income the year
that they're received. And you know, if your parents are
living eighties and nineties and you're you're, you know, mid fifties,
early sixties, you're in prime time making the most amount
of money. The last thing you need is to have
a distribution of one, two, three hundred thousand dollars a year,
(41:44):
not because you want it, but because you're forced to
take the distribution.
Speaker 3 (41:49):
Yeah, yeah, force liquidation. You know, the government obviously has
a plan for that money. They want their tax dollars
out of it. So understanding that and then planning around
that is something that you know, we try to overemphasize.
Speaker 4 (42:01):
The people that you know, it's it's going.
Speaker 3 (42:04):
To come out regardless, so you might as well plan
for it and take distributions, you know, at your discretion.
Speaker 4 (42:11):
Yeah.
Speaker 2 (42:12):
So one of the things that we talk about is,
you know, for people that are pre retirement five to
seven years, you know, if you're loaded up right now
with pre tax dollars, which a lot of people are
because of the match with the four and one K.
You want to make sure that you understand is that
you want to have some money tax preference on the sideline.
(42:32):
As I said, you want to be able to go
reach into the pot, grab the money and not have
a tax consequence, especially if you're concerned about your healthcare costs.
A lot of people want to retire before the age
of sixty five. For some of us, we can't afford
to do it simply because of the premiums for healthcare.
One of the pots that's really the what we call
a bridge to sixty five, it's the HSA accounts, the
(42:54):
Health Savings account. We can utilize that because it's distributions
that are basically tax free, and then they facilitate, you know,
the ability for you to go into the retirement years.
So it's important for you to have these types of
conversations with your financial advisor, and it's important for you
to have a conversation is what what you what you
(43:15):
are looking to achieve in your retirement years because, as
I said, the retirement planning group does not have a
cookie cutter approach. Every family, every individual has separate goals
and objectives, and we try to facilitate that. But the
landscape is changing dramatically, folks. And when I say it's changing,
it's kind of an understatement. So we have a caller.
(43:38):
We have Carl on the line. Hey Carl, Yeah, how
are you?
Speaker 4 (43:43):
Sir? Who's there? Who are you trying to get? Ahold of?
Speaker 2 (43:48):
Sir?
Speaker 4 (43:49):
This is Dave Kopek.
Speaker 2 (43:51):
Well they come out of here and widgel and.
Speaker 1 (43:58):
I forget what I.
Speaker 3 (44:01):
But I'm a native.
Speaker 6 (44:03):
I'm a native.
Speaker 2 (44:11):
Thank you for you're breaking up on Carl. Thank you
for calling in though we appreciate your phone call. Uh
very I'm glad you're a native of Syracuse, and God
bless you and I wish you great success and uh,
you know, hopefully we'll meet you face to face someday.
But that's it's not like you're outside a little bit.
(44:32):
We're having difficulty hearing you. But I want to talk
a little bit about I raise and uh why you
want to do planning. You know, there's a gentleman out there.
There's two individuals that I have a lot of respect for,
Ed Slott s l O. T. T. And Natalie Choked
C H O A T. E. They are both what
(44:52):
we considered to be a retirement plan. UH experts. Uh
Ed has been on he's all over the internet, he's
got books. We sponsored him for one of his PBS
presentations in the Capital District region. And I think it's
important for you to understand the train that's going down
the track. If you have a lot of money and
(45:14):
qualified assets pre tax accounts, because those are accounts that
you do not have one control over, the government will
force you to liquidate those assets when you least want
the distribution. And a lot of times it's when you
have bad health or you're in a situation where you
really don't need the money, because you're in a situation
(45:36):
where you're later in life and you're in the slowgo
or the no go years. And these large distributions are
coming out simply because of required venom distribution.
Speaker 3 (45:47):
Yeah, and there's a lot of you know, strategies to
kind of prepare for your required minimum distribution, whether that's
a ROTH conversion before your arm d age. You know,
that's something that a lot of people find, I guess
beneficial for them, you know, if they're trying to avoid
taxes as the ultimate concern they you know, broughth iras
(46:09):
don't have rm ds that they're subject to. Other options
are that are available to you is you know, qualified
charitable distributions, So after your seventy and a half, you
can give up to like one hundred thousand dollars a
year directly to the charity.
Speaker 4 (46:26):
But that counts.
Speaker 3 (46:27):
Towards your R and D H and it's not taxble income,
so that's that's a benefit, you know. So there's a
lot of ways to kind of coordinate around your rm ds.
You can coordinate it with your other income that you're
taking as far as your pension, Social Security, any type
of annuity income that you're taking. So to just understand
that your R and D income is only going to
(46:49):
increase once it starts.
Speaker 2 (46:51):
Well, I think it's critical when when you know the
old saying, know what you own? You know, I know
that's out of side, out of mind. When you keep
on accumulating money and accumulating money in four O one K,
it's important for you to basically do some planning as
far as you know what am I creating here. Tax
planning I think is crucial, especially if you're worried about,
(47:16):
you know, a starving artist or a child that you
want to pass money on to.
Speaker 4 (47:20):
You know, this ten year rule changes the game.
Speaker 2 (47:22):
It has a significant impact on tax and the thing
is is that depending I mean, there's a lot of
people that we work with that have well over seven
figures inside their IRA accounts. Depending on the amount of
children that they have, this could really have a major
impact as far as not only their own personal estate,
but also their own personal tax liability.
Speaker 4 (47:44):
You know.
Speaker 2 (47:45):
I mean, if I'm in my go go years and
I'm making a lot of money and I'm now receiving
you know, one hundred or one hundred and fifty thousand
dollars a year for the next ten years, and that's
that's a major tax consequence that's going to have to
be satisfied.
Speaker 4 (48:01):
Yeah. Yeah, that's true.
Speaker 3 (48:03):
And there's like a lot of tax concerns that are
just gonna inevitably come about with r and ds. You know,
there's a lot of different strategies around it, in different
philosophies on what that money should be spent on. You know,
whether it's just your living expenses, you know, or it's
long term care insurance. You know, that's another avenue you
could go and say, you know, whatever, my R and
(48:24):
D starting in the first year, I'm just going to
take this money and kind of pay it into my
whatever my long term care insurance plan is or gifted.
You know, a lot of people, we just had a
couple of appointments within the last week where people are
more I guess aggressive on trying to gift their children
some money while they're still alive and see and help
(48:47):
their children while you know, they're in their thirties or forties,
rather than when maybe their parents pass away and then
now they're fifty and sixty and they don't necessarily need
the money as much. You know, maybe they have young
kids and they want to see them utilize the money
while it could really help them, rather than later in
life when they don't necessarily need it as much. So
that's something that's a concern to you know, some parents
(49:09):
and people out there. But it's all about what you
ultimately want to do with it and just planning around it.
Speaker 2 (49:15):
Yeah, and it's it's important for you to basically, as
we said, you know, no plan any destination will do.
You know, it sounds kind of corny, It sounds kind
of simplistic, but it's one hundred percent true. We are
major advocates of building out a plan. The software package
that I talk about all the time e Money. It's
(49:35):
basically your financial dashboard. You can basically have that as
in depth as you want it to be or superficial
as you want it to be. It's really very powerful
as far as what it can do. So anything that
we're talking about today, As I said, we offer a
complimentary consultation at our Syracuse office. We will actually be
(49:56):
out there this week if you want to come in
and have a chat with us. It's eight eight eight
five eight zero one nine nine. That's eighty eight five
eat zero one nine. When nine you're getting excited about
seeing some Syracuse basketball this year.
Speaker 4 (50:09):
I am.
Speaker 3 (50:10):
I hope that they become competitive again and get you know,
you got Carmelo Anthony's kid going in there. So hopefully
the program is revamped a little bit, we can see
some success.
Speaker 4 (50:23):
It'll be fun.
Speaker 2 (50:24):
So again, as I said, we are the Retirement Planning Group.
We have an office in Syracuse, Albany, Saratoga, Glenn's Falls Oneanna.
We welcome the opportunity to sit down with you and
see if we can be of benefit of working with us.
And as we always say, you know, the worst thing
that can happen is that we become friends. We have
(50:45):
a chat. It's always good. We had a gentleman nicoled
in earlier this morning we were doing another show. You know,
getting his second opinion is never hurtful. It makes I
always think that it's you know, any time you go
to the doc and they say you need XYZ done,
a lot of people want to go out and they
want to get a second opinion. I think it's true
(51:05):
in the financial services industry. Better fact, we overemphasize when
people come to us that haven't seen another team or
another financial advisor, We basically say, go talk to somebody
else and see what their secret sauce is. How do
they how are they going to build out your plan?
Speaker 4 (51:20):
Big?
Speaker 2 (51:20):
I think you know, we are big believers in integration,
not only as far as investing the money, but also
understanding asset protection and the legacy that you wish to accomplish.
So again, our telephone number is eighty eight five eight
zero one nine one nine. Check us out on the
(51:40):
web rpgretire dot com, rpgretire dot com. I'm Dave Kopek
for my son and myself. Have a great weekend, and
we'll see you next week for another retirement planning show.
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