Retirement Planning Show

January 18th, 2024

Episode Transcript

Speaker 1 (00:00):
Line from the wgy iHeart Studios. Welcome to the Retirement
Planning Show with your host Dave Kopek from the Retirement
Planning Group. Every week, Dave and his team discuss the
ways they can help people make informed decisions about a
wide array of retirement planning information that can support you
and developing a more certain financial future for you and

(00:21):
your family. Now it's time for Dave Gopec, WGY's retirement
planning Specialist.

Speaker 2 (00:36):
I've been through so many changes in my life. It's
a one day lost moment.

Speaker 3 (00:52):
And I never said how much I need.

Speaker 4 (01:00):
I sure need you bam.

Speaker 3 (01:05):
Man to name it loose Man.

Speaker 4 (01:17):
All right, Good morning to all of our listeners and
new listeners. I'm David Kopek, your host. This is the
Retirement Planning Show. I've been doing it a long time
and we're here every week to hopefully give you some guidelines,

(01:38):
a lot of information this week, a lot of data,
a lot of things to talk about. The world is
a changing with retirement planning dramatically, dramatically, a lot of
information out this morning. I've been up since four o'clock
doing some reading. Baron's has got an article which I
want to discuss with you a little bit as far

(01:58):
as the sixty to forty portfolio isn't doing its job,
and it hasn't done its job for quite some time,
so we'll discuss that in detail. But if you are
a new listener, we are the Retirement Planning Group. We
have locations in New York State to meet with individual Syracuse, Oneana,

(02:19):
Glens Falls, Albany, and of course multi slash Saratoga. If
anything that I'm discussing is of interest to you, any
want to commit and have a chat. Who would be
an honor? If I can't sit down with you, somebody
for my team will, and all you have to do
just give us a call at five one eight five
eight zero one nine one nine or check us out

(02:41):
on the web at rpgretire dot com. Again that's rpgretire
dot com and aause you're quite well aware. We handle
investment management, asset protection, legacy planning, and of course the
large for most of us retire income plans retirement income distribution.

(03:03):
We are independent. Our mothership is Fidelity, meaning all of
our assets are custodian with Fidelity. We are in no biased,
open architecture, no predetermined destination. We do what's in your
best interest, not ours. And our model has always been
and always will be as long as I'm alive, ADTRT
always do the right thing, always do the right thing.

(03:28):
So hopefully we can help some of our listeners have
come in. We had a great year in twenty twenty four.
In twenty and twenty five is starting off. It's not unexpected, folks.
Eleven two hundred people a day are turning the age
of sixty five. Some of the data, though, which is

(03:50):
kind of surprising. More people are opting to delay retirement,
and I think a lot of that has to do
with the ability to work from home. That's my personal feeling.
I know there's all sorts of information, I'll get back
to work, get back to work. A lot of your
large corporations, the government now in Washington saying you're going
to get back to work. But I honestly believe with

(04:14):
the shortage of talent and the amount of people that
are out there, I can't remember the exact number, but
I know that the number is pretty hard. I'll come back.
It's like two hundred and fifty thousand people a month
are going into retirement to boomers, that's a whole heck
of a lot of people. And when you add that up,

(04:37):
that means that you've got two hundred and fifty thousand people.
Whether you like it or not, you're going to have
to replace or find someone to sit in their seat.
So as we sit here today the beginning, believe it
or not, folks, look at your calendar. Today's the eighteenth,
already January eighteenthy Zac. When is the super Bowl? Is

(04:59):
it Monday? Or is it Sunday? Is it this weekend
or night?

Speaker 5 (05:04):
But this coming Monday is the college football Championship?

Speaker 4 (05:07):
I know that, But when's this is the super Bowl? No,
they're still doing the playoffs, right, They're still doing the playoffs.
But don't get too Yeah, let's you know I've lost.
To be honest with you, Zach, I know that you're
a sports bud, and I've played sports and coached in
the whole nine yards. The thing that bothers me is

(05:28):
that I honestly think this money has deluded college football, basketball,
et cetera. And I think it's sad to see because
when you've got kids that are driving around the kid
the quarterback the news this week. I don't know if
you saw it or not the quarterback from Texas. It

(05:48):
was it was anticipated that he was being offered six
million dollars. He came out and said he was offered
eight million dollars by another school to play football for
one more year in college. Eight million. It's just it
blows your mind. It blows your mind.

Speaker 5 (06:07):
Combination between the nil money and the transfer portal is
definitely watered down.

Speaker 4 (06:12):
To sport yep. Kittlen Clark came out and said the
same thing. You know, the transfer portal is. You know,
if you can bounce around like a bouncing ball and
you don't have to make a commitment for an extended
period of time, you know, you get upset the coach
says something to you that you don't like. You say, hey,
I'm out of here, see you later, alligator. And I

(06:33):
think that's why, you know, I love Sienna, huge Sienna fan,
but by being a mid major, I think they're going
to have a hard time. I mean, they'll compete and
they'll probably Jerry will bring in talented kids, but the
top tier kids are going to go where the do
Rey me is you agree?

Speaker 5 (06:52):
Take a look at Jalen Pickett. He went to Penn
State and he had a great season there and now
he's just floating around.

Speaker 4 (06:59):
Yep, it's exactly right. So but whatever the bottom line
gets down to is that we're talking about retirement planning here,
pre and post anything that I'm talking about today, we
do welcome your phone calls, even if it's off topic.
Please be safe and know it's going to get cold
and you're going to get some bad weather and driving
and everything else. Make sure that you've got plenty of

(07:22):
heat and oil in the tank and all that nonsense,
because the weather is going to get very bad. It
looks like next week, and you don't want to be
in a situation where you're going to worry about do
I have enough fuel in my tank? So you know,
I saw a number this morning when I was doing
a little bit of research for the show today, And

(07:44):
I'm always staggered when I see this number, and it's
a number that I know I've talked about over and
over and over again, but when I see it, it
kind of blows my mind. The end of two thousand
and twenty four, the end of the third quarter, we
don't actually have the numbers for the fourth quarter yet.

(08:07):
The total value of IRA accounts traditional iras was fifteen
point two trillion dollars. The average balance was one hundred
and twenty nine thousand, two hundred dollars fifteen point two

(08:28):
trillion dollars. And now here's the one that's going to
blow you away. I say every week, get ready for
the wealth transfer the legacy. Eighty five trillion dollars will
pass on to our loved ones over the next twenty
to thirty years, our children and our grandchildren. Of that,
you ready for this. Forty two point four trillion dollars

(08:53):
is in retirement assets in the United States. Forty two
point four trillion dollars. And a lot of that money
is going to come out, and it's going to be
paid to spouses non spouse beneficiaries. And on top of
that is a big thing called an ioeu. You owe
the taxes on that money. Someone's going to pay the tax.

(09:16):
And that's why it's important when you sit down and
you do your calculation. I was talking to a good
buddy of mine, the best man in my wedding the
other day, and he's doing some calculations right now. He's
an attorney, just retired, and he's trying to figure out
where he's going to reside and he's doing his research
about the Carolinas, you know, some of the tech states

(09:38):
that he would possibly doesn't want to go all the
way down to Florida because he's not a sun guy.
He's an Irishman, so he doesn't like to land in
the Sun. But the thing is is that he's trying
to figure out where is it going to be the
most tax efficient place for me? And that's important because
as a state retiree, he was an attorney with the state.

(09:58):
His pension benefit is exempt from taxation in the state
of New York. The only thing he pays tax on
is the federal So if he moves to another location,
what is the impact. I was talking to his son
last night when flying He's flying to Europe and he
was sitting down at JFK and I ended up having
a chat with him on the telephone when I was

(10:18):
sitting there waiting for his plane. He's just saying is that,
you know a lot of these people are making decisions relocating,
changing zip codes, and before you do that, don't fall
in love with the place until you run some numbers
as far as how it's going to impact you in
regards to your finances. What's going to be taxable, What
is it going to be taxable? What is the situation

(10:41):
in regards to property taxes. One of the biggest things
in Florida now is that when you might buy a
house that's got a two or three thousand dollars tax liability,
but when a new owner goes in now in Florida,
they do a reassessment, and what's happening is that a
three or four thousand dollars tax liability is now becoming
a ten or twelve thousand dollars tax liability. So it's
sticker shock. So make sure you understand exactly. And here's

(11:07):
another figure which I find pretty staggering too, and it's
one that we've been basically talking about right now. In
the United States, there is seven seven trillion dollars in

(11:32):
cash accounts cash equivalents seven trillion. We're going to talk
a little bit about that today. Is that why he
is sitting there because, as we're quite well aware, we're
getting towards that time of year where all the papers
are coming in where you've got to go to the
tax man and time to prepare for twenty and twenty

(11:54):
five and maybe some of the things that you can
do to eliminate eliminate some of these taxes today, but
also put yourself in a position for your retirement years
that you're going to have a lot of money that's
going to be what I call tax preference money, money
that when you come in the door and you start
spending it, you're not spending it, and then you're going
to worry about what the tax liability is at the

(12:16):
end of the year. And there's some ways to do that.
There's a lot of different ways. There's a lot of
different formulas, and it depends on your own personal situation,
what you feel comfortable with, what you don't feel comfortable with. So,
like I say over and over again, there's a lot
of people in my business, and everybody has a different
way that they make the sauce. It's no different if

(12:37):
you go to Mario's up in Lake George, or you
go to whatever other Italian restaurant, right, everybody has a
different way to make the sauce. And it's no different
in the financial services business. Everybody has a different way
that they make their sauce and how they feel comfortable

(12:58):
allocating money for retirees so they have a retirement that
is filled with happiness, not with stress and anxiety, and
that's what we try to accomplish at the Retirement Planning Group.
But I'm going to take my first break. When I
come back, we're going to talk a little bit about
the markets. It was a good week. There is a
new president coming in on Monday. I hate to say this,

(13:21):
but I believe that there is a bounce in a
lot of people step in regards to the financial markets
as far as what his administration is going to do.
So whether you're a Democrat, an Independent, or a Republican
or really doesn't make any difference. You have to set
your priorities straight regards to your investments to make sure
that you're allocated properly. And we'll talk a little bit

(13:43):
about asset allocation and how possibly you might want to
make some changes in regards to your overall asset allocation.
So I'm Dave Kopek again. If you want to call
the station, love to talk to you talk WGY eight
two five fifty nine forty nine. We're here until nine o'clock.

(14:05):
By the way, here's a little tidbit. Loopiro will now
be on at nine, my buddy, So you're not going
to have to wait until eleven o'clock at ten o'clock.
I apologize nine to ten, yeah, eleven, eleven o'clock in
order to hear Luke because he's going to be coming
on now at nine, which will be great, and we'll

(14:29):
be right back the eighty 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 of your lifetime. Nobel Prize winning
economist William Sharp has called retirement income distribution the nastiest,

(14:53):
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 your 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 distribution plan. How do you do that? To

(15:16):
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 procrastinate, motivate
to start building your retirement income distribution plan five win
eight five eight zero one nine one nine. Will you
run out of money in retirement? Will your investments provide
income for possibly decades? How do you navigate the two

(15:38):
greatest risk in retirement sequence of returns in longevity? At
the Retirement Planning Group, our bucket of Money approach addresses
these concerns and we offer a complementary consultation to discuss
this with you. Call our office today for a free
complementary consultation to develop your own personal retirement income distribution
plan at five win eight five eight zero one nine

(15:58):
one nine. That's five eight five eight zero one nine
one nine.

Speaker 3 (16:19):
Baby, there's only one love. I've got some mud and
leading you song my love. You never let I've got

(16:45):
some mud.

Speaker 4 (16:48):
All right, we are back. Let mess up, freshen up
the coffee cup here a little bit. It's good to
be here. Be careful, it's going to be a cold week.
Make sure your car is filled with gas. Make sure
there's fuel in the tank, especially the seniors. You know,

(17:11):
I got sad news. You know, being in the business
as long as I have, a lot of my clients
are getting older, and it seems like every week now
we're losing a client. And I won't mention her last name,
but a client of mine, Sydney, passed away this week
who was just just a phenomenal woman, just a phenomenal woman.

(17:37):
You know, I have great clients. They end up being
like family, and it's sad, and it's sad that you know,
she got a diagnosis of cancer not that long ago.
That's why we have our golf outing every year for
cancer research. And you know, this year, the combination of

(17:58):
both of the charities, I think we generated some like
eleven than six hundred dollars at a golf tournament. But
you know, I always say this, be prepared, be prepared,
And I'm not trying to be Debbie Downer this morning,
but you know, when stuff like this happens, you know,

(18:20):
the son came in and the husband came into the office,
and I always feel comfortable that they understand that we've
got him in a good spot and in order for
us to get them moving forward with their lives and
basically have the time to you know, find some comfort

(18:43):
with the loss of not only a mother but also
a wife. It's it's tough. It's tough, and it's tough
because these are people that my Sydney's with me for
and her husband got them to think for maybe twenty
twenty plus years. It hurts Lisa and the rest of
our staff dramatically that we lose these clients because, like

(19:06):
I said, they become family. So I know that the
family listens. I've got both the brothers as clients. I
think they know that our heart, our thoughts, and our
prayers are with them during this difficult time. The bottom
line gets down to is that, you know, I hate
to say this, but the man upstairs sometimes when it's

(19:27):
your time, he doesn't send you a note and say
this is the date and time that you're going to
have an exit to the pearly gates. Just be prepared
because the last thing you want to worry about is finances.
And I think that's one of the things that resonates
with the people that come into the retirement planning group.
You know, listen, I would be very honest with you.

(19:48):
You know, I say this to people. If we get
six or eight percent a year on a consistenis I'm
happy as hell, all right, I'm not looking. I'm not
looking to hit home runs because when I, as everybody realized,
as you get later in life, you need to get
more conservative. And there's such a difference between managing money

(20:09):
and retirement than there was during the accumulation years because
you've got to basically build out a cash flow machine, right,
You've got to figure out how do we take all
this money in all these different spots four O one,
k's iras, roths, trust funds, inheritance, whatever it may be,

(20:30):
and start building out a plan that makes a lot
of sense, not only for my lifetime, my spouse's lifetime,
but also you know, what do you want to leave?
What's the legacy? How's the assets protected? Sidney's situation was
is when this event happened to her, she was She

(20:52):
was concerned. Zach, why don't you open up what you
want to talk to me about?

Speaker 5 (21:00):
Sorry to jump in, but I know how much you
love compliments. Pete called and he wanted to say that
he met with your team and you guys did such
an excellent job taking the time and giving him options
that he didn't even think were possible. He didn't even
have a remote possibility of retiring at a younger age,
and you guys did an excellent job hooking him up.

Speaker 4 (21:19):
That's nice. That's always nice. Thank you, Pete. It's always
nice to get a compliment, you know. But I appreciate that, Pete,
from the bottom of my heart. Believe me. You know,
at my age, at sixty nine years of age, people
say to me sometimes how much long are you going
to work? I'm going to work as long as I can.
You know, I feel like after being in the business

(21:40):
now this is the beginning of my forty third year,
I can say things to people that not necessarily some
of my staff can say simply because I've been in
the business so long. You know, I'm a dinosaur in
the office. My son, Nicholas Chris McCarthy, Chris is going
to hit forty years in the business in February, and
she and he has no no desire to retire either.

(22:02):
And the bottom line gets down to is that, you know,
having conversations and letting people understand exactly where they are
and what their game plan should be is no different.
You know, I do the analogy of either a construction
project or a sports you know, when you know the
sports teams get ready for a game for the playoffs,

(22:22):
they got a game plan, right, They got all sorts
of film, they got all sorts of history, all sorts
of data and statistics. And when you know, you sit
down building a house, you got the blueprint, right, you
know exactly what you have to do in the process
that you have to go through. And it sounds kind
of corny, but I mean it from the bottom of
my heart. When the first domino drops, you want to

(22:45):
make sure you understand exactly where the rest of the
dominoes are going to go. Right, Who the hell wants
to be there trying to scratch their head and saying,
oh my god, I don't know what's going to happen,
or where am I going to get the money now?
Or where's the wealth replacement for my spouse? Much money?
You know, my wife is sick and ill, but I
got this two million dollar IRA. If I leave it
all to her, where it's going to go? Is it

(23:06):
going to go to the nursing home or is it
going to go to my kids? Right? But people have
the ability, you know, I say this all the time,
and I'm not trying to say it in a negative way.
It's easier to put it on the back burner and
procrastinate than motivate and make some difficult decisions. How many
I told you during the holidays, how many of you

(23:26):
sat down with your family members over the holidays that
basically said, listen, we should probably have a chat of
where we stand mom and dad and if something happens
to mom or something happens to me, you know, what's
our game plan here? What do we have inside of
our you know vault here? Do we have a long
term care policies? Do we have money set aside for
long term care assisted living? That's really your greatest Achilles hill.

(23:49):
If you have plenty of money, if you have more
than enough money in order to get you through your retirement,
what's the thing that can sidetrack you that can really
blow everything up. Well, what can blow you up is
you can and have a health event. You know, my
wife and I talk about this all the time. My
mother in law was a smoker, and she enjoyed her cigarettes,

(24:12):
and she kept on smoking right to the very end.
And then bottom line gets down to is that she
had COPD and she had to go to a nursing
home with a trick bed, and that was over one
thousand dollars a day for that bet. Thousand dollars a
day just for the bet. Multiply that by three sixty five.

(24:33):
That's a pretty sizable chunk of cash that you got
to come up with. Fortunately, we did some planning ahead
of time, and she basically was able to She was
able to get in and get out in a short
period of time. And I have any issues, but I
got to take me a while. That was a quick
half hour. When we come back, we're going to talk
a little bit about what's going on in the marketplace

(24:54):
right now, and we're going to talk a little bit
about what's happening as far as the current interest straight environment.
But if you have any questions or comments, we'd love
to hear from you. One eight hundred. Talk to me,
g Y. I'm Dave Kopek. We'll be right back.

Speaker 3 (25:26):
Some chemistry, you.

Speaker 6 (25:33):
Know now you're telling me again, little girl, David, this.

Speaker 4 (25:44):
Is all right. We're back. This is the Retirement Planning Show.
Glad to be here, Glad to get up and see
some sunshine. We're going to be here until nine o'clock.
If you have any questions or comments we'd love to
hear from me. It's a pretty simple one eight hundred

(26:06):
talk WGI. It's one eight hundred eight two five fifty
ninety nine. I had a question I had a last
week after I did the show. I had somebody quality
office and they asked me, what is the difference between
your organization versus another financial advisor that I know? And

(26:27):
I said, everybody has a different way that they handle money,
and what our job is at the Retirement Planning Group
is to be able to offer you a complement of
investment options that are specific to you, not this boiler

(26:48):
plate investment program. Now, this is a this is a
major investment banking firm, and in my opinion, in my opinion,
this is my opinion, they have a cookie cutter approach.
They have a cookie cutter approach, and their cookie cutter
approaches is that you get on the phone with them,
you answer some questions, and they basically build out your

(27:11):
portfolio no different than probably thousands of other people. And
then this is the portfolio that you go in. And
one of the participants that's in that program called these
people and set prospective clients of a client of ours
and said, listen, I like most of the stuff that you're doing,

(27:31):
but there's certain things that I want to change in
my portfolio, and they wouldn't do it. They wouldn't do it.
They wouldn't change the asset allocation of his portfolio. They
basically said, if you don't like what we're doing, you
can take your money and go now to me. That
doesn't make a lot of sense, right. I'm also not

(27:51):
a big believer that an eight hundred telephone number facilitates
what people need in their retirement years, right, an eight
hundred telephone number? Yeah, okay, you say, you know, I'm
what's your fee structure? Is that how you're going to
judge your relationship with your financial advisor? You know you're

(28:13):
going to say what is your fee structure? Because if
your fee structure is out of line, then we're not
going to work with you. That doesn't make sense because
we all know, I don't care what the organization is,
whether it's Vanguard, Schwab, Fidelity, the whole laundry list of

(28:33):
investment banking firms out there, everybody has to have black
on the bottom line. When you do the double lines
your net return, there has to be a profit in
order to facilitate the lights being on people getting paid
and everything being done in order to have a fully
integrated wealth management platform. Now, I said to this gentleman

(28:59):
when we were discussing this, when we were first having
our conversation, that our fee structure I think is extremely competitive.
We never charge more than one percent and then we
only go down from there depending on the assets that
you have with us. So when I look against the
you know, the our competition and basically see what they're

(29:21):
offering versus what we're offering, and then what added value
services do we bring to the table in order to
facilitate what our clients want, not what we want, but
what our clients want. Then we build out a platform
for them specific to them in order to facilitate what
they're trying to accomplish in their pre and post retirement years. So,

(29:48):
in this ever changing landscape of asset management, you know,
as they tell you, I get up early every morning.
It's just in me. You know, I've been doing it
for decades now. So three thirty four o'clock in the morning,
you know, I'm waking up and I'm ready to get
myself out of bed and start hitting the you know,
the ground running. But that's my time. What I said

(30:08):
last week, it's my time to sit and read and
do all the things that I enjoyed doing as far
as now. I've said this over a couple of times.
And I read an article about this yesterday about the
changing nindemics of what's happening in the financial services industry
and what's happening in our industry, the financial services industry.

(30:32):
There are private equity firms they've chased after me. I've
sat and I talked to them, Okay. I owed it
to my family, my children, my employees to talk to
these people, okay. And what they're doing is that they're
coming in, they're buying books of business such as mine,
and they're giving you a lot of money, okay, in

(30:55):
order for you to basically stick around for three or
four years. And then most of the eyes that are
going to be for three or four years are going
to go out into the sunset because they've built a
succession plan. Now, I'm not too sure if it's good
or bad. Okay. I'm not too sure if this is
good or bad in the business, okay, Because what they're

(31:15):
doing is that they're taking these books of business, they're
aggregating together, and then they're taking the cash flow and
they're selling it to pensions. Okay, the private equity firms.
And I'm in the camp where I honestly believe, from
the bottom of my heart, Okay, what is the relationship
going to be between the investment advisor and the person

(31:39):
that's there building out an extended relationship for an extended
period of time. Now, Cindy that I talked about, God
bless her soul that passed away. She was with us
for twenty years. They're family. Will you have the same
type of relationship with this new structure that's going on
in our industry? All you got to do is go

(32:00):
out and look private equity firms buying out registered investment advisors.
It was the greatest year ever as far as the
acquisition of people like me, registered investment advisors. And to
be very honest with you, one hundred percent not blowing
any smoke up your tailpipe. Julie and I sat down
with some people. We got real close. But I looked
at her and as she looked at me, and I said,

(32:21):
I can't do this. I cannot do this. Yes, it
would make me very very comfortable for the rest of
my life. But I can't do this because it's not right.
Because now I got the tail wagon the dog, and
I asked some basic questions, do I have my independence?
Can I do this? Can I do that? Can I
do this? And the response at the very beginning of

(32:43):
our conversation would come back in an email TBD, TBD
to be determined. And the more I got into it,
and the more I asked questions, TBD to be determined.
And we're getting all sorts of information, conversations or meetings
and all this stuff, and then, to make a long
story short, TVD ended up being what, No, No, we

(33:08):
can't do that for you. And I said, no, I
can't go then, because if I lose my independence and
I lose my ability to do what I want to do,
then you've got the wrong person. Because being independent and
basically having the format that we've created at the Retirement
Planning Group, what do we say all the time. We're independent,

(33:32):
we have no predetermined destination, we have no biases. We're
an open architecture platform, and we're going to try to
give you the most cost effective platform that you can
possibly get in the financial services industry. That's what we're
trying to do and the reason why we're trying to
do it that way is because we want to make

(33:53):
sure that our clients not only understand that in this
yellow brick road of retirement, whether it's pre or post,
there are so many obstacles for you to face, and
there's so many things that you have to be challenged
by that if we have a deterrent or something that
they say, no, you can't do that, or no, we're

(34:13):
not going to allow you to do that, No you
can't do that, but we're going to have somebody else
do it. I say see you later, alligator. Stick it
now what I want and I want my son to habit.
I don't want Nick go to have it. I don't
want Chris McCarthy. I don't want Jimmy Corkoran. I don't
want Lisa Jared. I don't want any of our team
not to be able to have independence in the ability

(34:35):
to do ADTRT sounds count corny. I know the people
are ADTRT well. ADTRT is our brand always do the
right thing. And if if I'm not in a position
where I can always do the right thing and make
the decisions that I think is in the best interest
of the client. Then I've failed you. Not only have

(34:57):
they failed you on radio, I've also failed you as
a client the Retirement Plenty group. So be aware. Okay,
I'm just shooting a blank shot up in the air here.
Be aware of what's going on in our industry. When
you see ABC has been acquired by BBB or Tree,
Tree Tree or XYZ, whatever it may be, go underneath

(35:19):
the hood and find out exactly what's going on. Who
is it who owns them? Well, a lot of them
are owned by private equity firms. That's the captain of
the ship. And their goal is one thing, acquisitions and ROI,

(35:44):
acquisitions and ROI. So a lot of times when we
sit down with people, That's why I have a younger staff.
You know, Chris has been in the business extended period
of time, thirty nine soon to be forty years. Nico's
been in the business, believe it or not. He started
with me as an intern when he was at Siena College.
But he's been with me now for eight years. I'll

(36:05):
match him up to anybody, anybody as far as his
knowledge and experience and what he can do in the
financial services business. Now after eight years being with me
because he knows prem post retirement inside and out. My
son Christopher got a degree from Sienna and financial planning.
You know, I've got younger people on order. So if
I get hit by a bus, you know, I'm realistic.

(36:26):
I'm not a young kid anymore. I'm sixty nine years old.
Do I want to retire?

Speaker 3 (36:31):
No?

Speaker 4 (36:31):
I don't. I keep on saying this to people because
there's all this messaging out there. I got people saying
to people that you know, he's retiring, he's retiring. I
had a guy called me the other Yeah, here are
you're retiring. I'm not retiring. Okay, I'm much louder and
crystal clear. Now this is what I will say to you.
If I have an event, I'm going to retire. If

(36:52):
I have a health issue, I'm going to retire. If
I can't do this with my mental capabilities, I'm going
to retire. Because I'll be the first one to say,
you know what, I can't do this anymore. You young
guys got to step up and basically take the ball
and run with it. But the Retirement Planning Group, as
far as I'm concerned, will be around for decades because
we have the ability with the youth that I have

(37:12):
on the team in order to be around for decades.
Why am I saying this? You know, what the hell
is this guy doing today? Why is he blatting about this? Well,
the reason why I'm saying this is because they think
about Cindy and all the other people that have died
in the last two, three, four five years, clients of ours.
And the thing is is that how simple and ease

(37:33):
the ease of being able to basically settle your estate.
Some people say to me, how quick can I settle
my estate? Well, if you listen to us, you can
settle your estate probably within a week, right, not two
years or three years or four years or five years.
You can settle your estate within a week if you
listen to us and do what you're supposed to do.

(37:55):
As far as titling your assets, you know, that's another
topic that we're going to talk a little bit about today,
as far as titling your assets as you go into
twenty twenty five, but you need you know, people say, well,
we listen to you all the time, and you know,
we eventually decided to give you a call and come
on in, good, good and when you come in, we

(38:16):
always tell go go talk to somebody else. You know,
we we want you to talk to somebody else and
see what their platform is and how you feel about
what's going on with that organization. But I can tell
you one thing for sure, with the Retirement Planning Group,
we're always going to be in the camp as far

(38:39):
as transparency and the ability for you know, why we're
doing what we're doing. You know, it's it's a daunting
task to try to manage people's money. Sometimes you're the
hero and sometimes you're the zero. Remember twenty twenty two,

(39:01):
No matter what you got into in twenty twenty two,
you were a bum unless you were in money market
accounts or you were in a guaranteed rate. That's when
you basically have to have some spine and tell people,
did you just hire me for one year? Is one
year going to make a difference in our long term relationship?

(39:21):
What has changed is how you're gonna judge this. You're
gonna judge us on the performance of one year. Geez, honey,
I had a bad week with you. I want a divorce.
Our relationship is no different than a relationship that you
have with a spouse or a loved one, right Things

(39:44):
are not always the yellow brick road. Things are not
always rosy. You know. I always tell people when they
come in and we sit down and have a chat
with them. Sometimes the guys think I'm too aggressive. There
will be times that you will probably not like us.
There will be times in our we're all situation here
where the markets are going to be not good and
you're gonna say, why didn't you get me out? Well,

(40:06):
we don't believe in that, sir. Why don't you believe
in it? Because there's seven trillion dollars right now sitting
in money market accounts for people trying to figure out
when to get in. That's the number right now. Seven
trillion dollars are sitting in cash people that have either
taken money out of the market or trying to figure
out when to put it in the market. You can't
do it, folks. I've been doing it for forty three years.

(40:27):
You can't do it. Some people do it maybe occasionally
they hit a home run, but you hear about the
home runs. You don't hear about it when they lost
their You know what. So in this new world that
we're living in, we're making changes right now. We went
out and I spent thousands and thousands of dollars this

(40:49):
week on new software packages, new technology that is going
to basically be best of breed for the retirement planning group.
Why am I doing that? Because you deserve it. You
deserve it. As a client of ours, you need to
have the ability to have the best of breed in
regards to the types of services that we bring to
the table. I talk all the time about E money.

(41:13):
I talked about it last week. I talk about how
E money can basically be your savior when all hell
breaks loose. Think about the people in California right now.
My brother lives in California. My brother's a professional actor.
He lives in California. The people out there are scared
to death of these fires. But think about the people

(41:37):
that ran into their house and grabbed a few things
and ran out the door. And all of their other documents, statements, wills,
power of attorneyes, healthcare proxies, all the other stuff, all
the different accounts that I got over God's creation? Am
I going to remember them all? Does that make sense
when you could basically it doesn't cost you anything for

(41:58):
us to put your documents any money, and you can
know exactly by hitting one button, exactly where you stand,
where all your assets are. Sounds too simplistic, right, sounds whoo,
that's a layup. It's got to be more to this
than that. Dave, No, there isn't. That's fact. But most
of you will basically procrastinate and do nothing. So I'll

(42:20):
be right back the eighty 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 of your lifetime. Nobel Prize winning
economist William Sharp has called retirement income distribution the nastiest,

(42:45):
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, you need
to start taking action to start building your own personal
retirement income distribution plan. How do you do that? To

(43:07):
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 procrastinate, motivate to
start building your retirement income distribution plan five win eight
five eight zero one nine one nine. Will you run
out of money in retirement? Will your investments provide income
for possibly decades? How do you navigate the two greatest

(43:30):
risk in retirement sequence of returns in longevity? At the
Retirement Planning Group, Our bucket of Money approach addresses these
concerns and we offer a complimentary consultation to discuss this
with you. Call our office today for a free complimentary
consultation to develop your own personal retirement income distribution plan
at five wine eight five eight zero one nine one nine.

(43:50):
That's five wine eight, five eight zero one nine one nine.

Speaker 3 (44:20):
The Hollow City street speed.

Speaker 7 (44:29):
From the knee hosterns dot to me.

Speaker 3 (44:36):
We were too hot to thing sleep. We had to
get out.

Speaker 4 (44:46):
All right, we are back. I just got a text
message from byways man. You getting carried away today, aren't you?
My brother? I'm not getting carried away. He calls me
the preacher. I'm the financial services preacher. Uh, you gotta laugh, right,

(45:10):
You got any questions or comments? One eight hundred talk
to w G. I that's one eight hundred and eight
two five forty nine. You know I got great friends.
I've got great friends. I got a wonder wonderful wonderful
I mean, I've been blessed. I got a great family,
I got great employees. I got fantastic friends. You know,
I can always tell a friend when you're down and out,

(45:31):
who's going to stand by you, who's going to stand
up and be part of your team. That's when you
know where your friends are. And believe me, I've been there, folks,
I've been there. When Julie and I started off, I'll
tell you what. We didn't have a pot or a window,
if you know what I mean. We started off looking
stamps and basically doing our stick and we did everything

(45:53):
we could credit cards and leveraging. And she looked at
me one day and said, are you crazy? What are
we doing here? So you've got to believe. You don't
believe you're not going to get to your destination. If
we fall, we fail, we fail, But we didn't fail.
We ended up. Our messaging was I guess positive for
a lot of people, and we've got you know, a

(46:14):
lot of clients now and hopefully they realize that they
are very important to us and we're trying to do
the best thing that we possibly can for them, not
only through the Retirement Planning Group, but with all of
our affiliations that we have with strategic partners, and of
course the mothership Fidelity, which brings a lot to the table,

(46:37):
a lot to the table. One of the largest financial
services organization I think right now they manage somewhere ballpark.
Their total assets that are responsible for is like fifteen
trillion dollars, which is goofy when you think about it.
It's huge money, huge money. But today we're talking a
little bit about the dynamics of what's going on. If

(46:59):
you get barons, Okay, if you don't get barons, I'll
tell you a little bit what's in it today. And
this is what you know. I kind of fell off
my chair this morning when I saw this, because you know,
this is you know, I'm the guy like when everybody
else is running out the door, I'm running in the door.
So it says the sixty forty portfolio isn't doing its job.

(47:23):
Maybe a time to ditch bonds. You know what a
sixty forty portfolio is, sixty percent stocks forty percent. That historically,
with modern portfolio theory, you had a good chance of
you know, the money not going away before you go away.

(47:43):
But it hasn't been the case in recent years. Folks. Okay,
the memory what did I talk about? The memory of
twenty twenty two when stocks and bonds tanked altogether, remains
fresh right on the forefront for a lot of us,
right because it wasn't fun. You know, your average portfolio,

(48:05):
especially if you're taking distribution support, was probably down about
twenty percent at a minimum, and you're saying, what's going
on here? This isn't fun. But now you've got a
lot of what I call the Money Morning quarterbacks that
are sitting there and they're basically, with their unbelievable wisdom,
saying that bonds add little to retirees. And I'm not

(48:28):
in that camp. Okay, I am definitely not in that camp,
because who in the right mind here one of the researchers,
who in the right mind is going to do this
in lieu of a balanced stock in bond portfolio. The
researchers found investors were less likely to exhaust their savings.

(48:53):
With an allocation of thirty three percent domestic stocks and
sixty seven percent international stocks. This guy or gal must
be on something, because we can't. We had an organization
that came in about six seven eight years ago that said, listen,

(49:14):
you need to add more international exposure to your portfolio,
and we got crushed. Can you imagine having forty or
fifty percent of your money allocated they're saying sixty seven
percent in international stocks. Now there's a guy. This guy's
all over the internet. He has all sorts of presentations.

(49:38):
I don't know exactly how to pronounce his last name,
so I apologize ahead of time. Maybe somebody can call
in and tell me what his name is. Wade, Pfau, foul, Powell, Pou.
I don't know Pfau. That's a different It's like copek kopyc.
Try to figure that one out when you first look
at it. My brother law went first, saw my name,

(50:00):
She goes, He goes, what is the other way? What
how do you spell it? Ko Pyc says, buy a vowel.
So this guy, Wade says, income oriented retirees could successfully
swap annuities for bonds. In their portfolios. Rather than a

(50:23):
set fixed allocation to annuities. It is best to back
into the account by calculating how much you need to
require income to cover your expenses. H what does that
sound like? But what do we say at the retirement
planning group baseline income? What's your baseline income? Once you

(50:49):
have your needs covered, then you can get a little
bit more aggressive with your overall portfolio. Right with your
overall portfolio. But the bottom line gets down to sixty
forty forty, sixty to fifty to fifty. Okay, the mother's
milk after doing this for forty three years. The mother's milk

(51:14):
of a retirement income strategy is what dividends cash flow? Right,
Remember four or five years ago when you run into
the bank and they're how much one percent? I want
that one? Tie me up. As long as you can
give me that one percenter? Ye crazy? You know now

(51:40):
you know you can give five percent guaranteed right from
you know, certain financial institutions right now, And people are saying, well,
I'll wait a little while, that's not high enough. Well,
I'll tell you what you know. I'm in the camp
where you know you're seeing right now that the Fed
right is not going to be as aggressive, but that
all soul means that there's probably we're at the peak

(52:03):
maybe right now on the yell curve, which could give
you an opportunity. No guarantees here, but the bottom line
is is that usually when you have you know, when
you hear this coming out, it's usually a knee jerk reaction.
It's probably a good time to buy the asset class
that they're basically putting down. So all right, that was
a quick hour. We're gonna come back. We'll talk a
little bit more in our second hour. I'm Dave Kopak.

(52:25):
I'm your host. This is a retirement planning show.

Speaker 1 (52:28):
Line from the wgy iHeart Studios. Welcome to the Retirement
Planning Show with your host Dave Kopek from the Retirement
Planning Group. Every week, Dave and his team discuss the
ways they can help people make informed decisions about a
wide array of retirement planning information that can support you
and developping a more certain financial future for you and

(52:49):
your family. Now it's time for Dave Copek w g
wis for Retirement Planning Specialist.

Speaker 7 (53:12):
I've been alone with you inside my mind and in
my dreams, I've kissed Jo Libs a thousand times. I
sometimes see you pass outside my door.

Speaker 3 (53:35):
Hello, does it me you all right? Good morning?

Speaker 4 (53:40):
Good morning, good morning?

Speaker 3 (53:42):
I can see.

Speaker 4 (53:46):
Maybe morning, good afternoon. I got a lot of listeners
throughout the country now don't listen to us on iHeartRadio.
So that's always a nice compliment. Got nice, you know,
implement the other day from some people. We live in
a world today. I always tell my employees, you know what,

(54:07):
it's easy to criticize. It's harder sometimes to compliment. And
if you are critical of someone about something that is
not being done properly, make sure that one thing that
is being done improperly you tell them the four or
the other five that they're doing fantastic. Because everybody likes

(54:29):
to pat on their back every once in a while.
I know I do, I know I do, and who doesn't, right,
We don't like to be criticized, but we also like
to be able to you know, you did a good job, appreciate.
Thank you so much. It's easy to do. This is

(54:53):
the time of year where we start thinking about taxes
and whether you or pre or post retirement, it's a
good time for you to start looking at how you're
allocating your money, because how you allocate your money during

(55:14):
your pre and your post retirement years right can have
a huge impact on our friends either the states or
at the federal level in regards to the little donations
that we have to make on a quarterly basis. So
I know, when we sit down with individuals and we

(55:35):
talk to them about the zip code that they're going
to live in during their retirement years, it's sometimes a
question that most people are taken back by because they say, well,
we're here for, you know, investment advice. Well, we're giving
you investment advice, but what good is you know, if

(55:55):
I'm going to give you a decent rate of return
on your income distribution where a good chunk of it
is going to go to the state, in the federal government,
or city wherever you may reside. So you know, I
am a huge believer in ROTH huge and there's a

(56:15):
reason for that. The reason for that is that it's
probably the one thing that Washington did without any strings
attached to it, and they did what I considered to
be probably one of the greatest things for high wage

(56:36):
earners because they were kind of locked out of the
wroth IRA. They allowed you to do the Wroth four
one K, and the Wroth four one K gives employees
a unique, when I say unique, extremely unique option when

(56:56):
it comes for planning for your retirement. So if you're young,
what I'm noticing at the retirement Planning group, Now, we
started with Bob. Then we got Bob's son's Craig. Now
we got Craig's all of Craig's kids, So we got
three generations that we're working with right now. And those

(57:20):
three generations have all different methods to their madness in
regards to getting to the finish line of retirement, whether
they're there already or whether they're almost there, or they've
got twenty or thirty years still to go, or maybe
forty years to go before they actually get to the
finish line. And what I say all the time is

(57:42):
that listen, Yes, it's nice to get some tax benefits
when you make contributions to iras or traditional four oh
one k's, but the Wrath four oh one K gives
you everything that you could possibly want and you don't

(58:02):
have to do any income verification in order to qualify
for it. Right, So, both the Wroth four oh one
K and the wroth IRA plans use here, here's the
key after tax dollars, meaning that the owner does not

(58:22):
have to pay income taxes when it comes out the
door for distributions. There's also one other key advantage right
right later in life, right, A lot of people get
these lots of moneys and iras and traditional four oh
one ks TSPs, four H three b's, and what happens.

(58:45):
They get large distributions, not because they need it, but
they're being forced to take the income because that RBD
required beginning date at age seventy three and are MD.
Here's the formula, and this is how much money you
have to take or we're going to penalize the hell
out of you. So when you're sitting down, a lot

(59:08):
of times this is when people sit down, they make
adjustments or they make modifications. The boss gave you a raise,
or you got some extra cash. Sitting on the sidelines, right,
what does it? What makes sense? Okay, Well, you should
sit down with your financial team and you should go
over it, and you should sit down and basically say, listen,

(59:30):
I need to do an overview. I understand that there's
no one size fits all, and it depends on my
own personal financial situation. But when you start withdrawing money
from these accounts, in my opinion, now this is my opinion.
When overemphasized, this is my opinion. If I had a
nickel for every time somebody called me and said, Dave,

(59:52):
I don't want it, Well, too bad, you got to
take it. But I don't want it. Well, what do
you want me to do with it?

Speaker 5 (59:57):
Well?

Speaker 4 (59:57):
Take it out and put it into my money? Mark? Okay,
what CDs that? Right?

Speaker 3 (01:00:00):
Now?

Speaker 4 (01:00:01):
What can I get in the CD? Right? How many
people that are listening to this show? Right now? That's
your plan? Right? You got large amount your top heavy,
You got way too much money allocated pre tax versus
after tax, and now you've got this huge tax liability
and you're trying to figure out, Wow, what do I

(01:00:22):
do with it? So, if you're somewhere in your forties
or fifties or twenties and thirties, and now you're trying
to figure out how should I allocate what's my asset allocation?
How should I put money away from my retirement years? Please,
if there's anything I'm going to say today, please take
a look at the Wroth four oh and K and
the Wroth IRA. Then we're going to talk about some

(01:00:44):
other options too, because this segment is going to be
talking about tax preferenced money. Tax preference money that means
money that comes out the door goes to you tax
free or has huge tax advantages, meaning that a good

(01:01:06):
portion of it is exempt from taxation. But no matter
what I talk about, all right, this is my disclaimer,
there's advantages and disadvantages of both. Okay, make sure that
you understand those differences so you're making the right decision

(01:01:29):
on the front end. Because once you do pre tax
dollars and the horse is in the barn, and then
you ultimately want to let the horse out of the barn,
that's all taxes ordinary income, no way around it. You're
either going to pay the tax, your spouse is going

(01:01:50):
to pay the tax, your kids, your loved ones, non
spouse beneficiary, somebody's going to pay the tax on these trillions.
Say that again, trillions of dollars that are held in
qualified plans pre tax money. So how do you get
ahead of it? Well, if you're fortunate enough to still

(01:02:12):
be working, you're going to have the ability, especially if
you have high wages, you can still do the wroth
four O one K because you do not have to
have income verification in order to qualify for it like
you do with the IRA. So in order to you

(01:02:32):
for you to start facilitating it. As far as your
investment options, right, sit down with your whoever your plan
provider is, ask them to see the investment options. A
lot of times, Nico my Son, Christopher my Son is
doing a lot of this now at the office as
far as investment options. He's technically the financial analyst at

(01:02:55):
the retirement Planning Group, and he's going through a lot
of the investment selections that are basically bailable through your
existing WROTH four oh and K program. Right your WROTH IRA,
you can shop around that song, shop around. You can
shop around, see which custodians that you feel comfortable with

(01:03:17):
and the investment vehicles that are associated with that platform. Now, Fidelity,
even though we're through Fidelity, we can go anywhere. We
can buy anything, okay, any type of investment that either
trades or there's we're not limited to Fidelity products. That's
one of the greatest things working through Fidelity is that

(01:03:40):
they do not mandate that. Okay, So if you're in
a situation and you're trying to figure out how do
I make my contributions. For twenty and twenty five, the
wroth Ira is seven thousand dollars, same as it was
in twenty four, but individuals who are over the age

(01:04:00):
of five h fifty can contribute an additional thousand dollars
for a total of eight thousand dollars. I love wroth
iras for young people, especially college students that work during
the summer. During the year, there's a lot of benefits
for them to start getting a discipline. Savings program grows

(01:04:24):
tax free, comes out tax free. You do it consistently
over an extended period of time, you're going to have
a whole hell of a lot of money. And the
thing is is that it's probably you know, one of
the greatest things that you can do as a parent
or a loved one or a grandparent is to establish
the discipline in order for them to basically have an
investment program. Now, the four oh one k okay the

(01:04:47):
wraw for owin k we know, eight thousand dollars if
you're over the age of fifty seven thousand if you're
under the age of fifty, Now, what's the four oh
one k row for this? Is the thing that will
blow you away. In twenty five it's twenty three thousand,
five hundred dollars. And if you are eligible for what

(01:05:08):
they call catchup provisions, you can add an additional seven thousand,
five hundred for a total of thirty one thousand dollars. Now,
if a husband and wife both do this, sixty two
thousand dollars, it doesn't take too long before you got
a nice little chunk of change in there. That's what
we call tax preferenced money, right, so you have the

(01:05:30):
ability to get to that cash when you retire, you
reach into the bucket. Now, for people that are not
in you know, we'll talk a little bit about this
today too, HSA health savings accounts because if you listen
to the show, you know I'm a major believer in
HSA accounts. But if you're in a situation where you
don't have a high deductible plan through your employer, and

(01:05:52):
you have a traditional plan, but you have a wroth
for own K, the wroth for OW and K is
a great way for you to start building the piggy
bank for healthcare call us during your retirement years. Because
Fidelity came out last year, it's at a healthy sixty
five year old couple is going to be about three
hundred and thirty thousand dollars in your lifetime out of

(01:06:12):
pocket expenses for healthcare. And that does not include what
long term care. Doesn't include long term care. So if
you take the thirty one thousand, right, let's say you're
eligible for the IRA too, that's eight thousand. That's almost
forty thousand dollars a year that you can put away

(01:06:32):
in tax preference money. Now, what a lot of our
clients do, they don't go full till right. Typically, what
they'll do, and we'll do this sometimes and we'll run
the numbers to see they'll take the match from the
employer in the traditional four oh one key, and then
anything in excess, they'll do the WROTH four oh one
ke because that allows them to have that piggy bank

(01:06:56):
account that they can get to they can swipe that
cat fifty nine and a half, they can get to it. Right,
then it's all tax free, never never never required minimum distribution. Right,
So access to your funds and your WROTH four oh
and k before fifty nine and a half is limited

(01:07:18):
is limited. Be aware of that. So tapping netggs before
retirement could always be a matter of last resort. The resort.
We always say that, but just remember, folks, okay. An
advantage of a excuse me, let me take a sip
of my whiskey. Here, black coffee, nothing like it. The

(01:07:42):
advantage of a four to oh one K account is
the ability for you to borrow against it. Right, pretty good.
You become your own banker. I just did this with
my brother law when he wanted to buy a car.
And guess what. You can borrow up to fifty percent
of your account balance or fifty thousand dollars, whichever is smaller.

(01:08:05):
It's a pretty good deal, isn't it. Fill pay back
the loan. Under the terms of the agreement, it's going
to be considered a taxable distribution. Not a good idea,
So make sure you're disciplined enough in order to pay
it back. So Wroth four oh one k's versus iras.

(01:08:25):
What's the difference the wroth IRA? You got to have
income limits, right, it's about one hundred and sixty some
thousand dollars individual two hundred and forty one thousand dollars
for a couple. Wroth furrow and K anybody, anybody can contribute.
As long as you have what earned income, you can

(01:08:48):
do a wroth four oh one k ira or the
wroth ira through fidelity through us. They said, what you
have thousands of investment options typically in a wroth for
oh one K program, It's only as good as the
investment options that the employer provides to you. Okay, right,

(01:09:12):
And then of course over fifty nine and a half
all tax free distributions the wroth for on one K,
just like the traditional four O one K, you can
borrow up the fifty percent to a maximum of fifty
thousand dollars. So if you are in a situation right
now and you're trying to figure out can I do both?

(01:09:35):
Can I have a wroth for O and K and
a roth ira at the same time, the answer is yes,
as long as you meet all the income limits capeche Right.
So the bottom line is this, wroth iras and wroth
for one k's come with their own benefits in perks.

(01:10:02):
It's just a question what are you trying to accomplish
in your own personal situation? And I'm in the camp
where I think maybe a combination of both a trifecta.
You do traditional. You do the wroth Ira, you do
the wroth four oh and K. Multiple buckets of money,

(01:10:23):
multiple objectives, multiple ways for you to have these assets
during your retirement years. As you if you're a listener,
a longtime listener, I am not a big believer in
wroth conversion. They just don't a lot of times people

(01:10:44):
do it. They suffer the tax consequences. They're not disciplined
enough in order to basically do it on a consistent basis.
What I've seen in my forty three years, they start
to train down the track and they don't come to
the final destination. I am a big believer that you
spend down qualified assets and put them into products or

(01:11:07):
investment options that give you tax preference at death. So
when your loved ones receive a dollar, they get a dollar,
it's not a dollar minus all the tax liability, which
is the way you should do it. So I'm going
to take a break. When we come back, we're going
to talk a little bit more about this is the
time of year, this is when you should be discussing

(01:11:30):
or having chats with your financial team about tax preference money.
We'll be right back. The eighty 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

(01:11:51):
during the most critical years of your lifetime. Nobel Prize
winning economist William Sharp has called retirement income distribution the nastiest,
hardest price 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

(01:12:13):
years of being in the financial services business, 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 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 plan five win

(01:12:36):
eight five eight zero one nine one nine. The greatest
risk in retirement. Most of us have no plan for
or insurance to cover the expense a long term care
event can impoverish a spouse, drain your life savings and cost,
stress and anxiety on your family. What is your plan
and how will you pay for a long term care event?
Call the retirement Planning group today discuss options you should

(01:12:56):
consider to protect your estate and have choices in a dependence.
Take action well today. Five when eight five, eight, zero,
one nine nine or RPG retire on the web.

Speaker 3 (01:13:37):
Are you feeling a modly feeling like you can go?

Speaker 8 (01:13:47):
Just remember love fade? Tell me are you going through
the change? Time seems like it's passing.

Speaker 3 (01:14:06):
Just believe that love. Five. I see the da you cry,
I see the pain.

Speaker 4 (01:14:22):
That's a good one. Sac you great.

Speaker 5 (01:14:28):
You show me a lot of songs that I know
that I never realized I knew.

Speaker 4 (01:14:32):
So I appreciate you. You old goat still got uh.
A yellow lab is jumping on my lap here. I
think she either has to go out or she just
loves her daddy to death. So hopefully you're having a great,
great day, great weekend. Hopefully you're healthy, great family, friends.

(01:14:57):
Nothing like it. Love of family and friends, it's what
it's all about. Everything else is kind of like the
stuff on the sidelines. You got that, you got everything.
Like I said earlier, you know, we live in a
world today. We're instantaneous. Everybody wants instantaneous. You know, the

(01:15:18):
kids are you know, the kids are attached at the
end of their noses their phones. I leave the house now,
I don't have my phone with me. I feel like
I'm naked, like I don't have an underwear on. It's
just crazy that these devices have such an impact on
our lives. But this is what my forty three years

(01:15:39):
will tell you. Nineteen ninety nine, I started the Retirement
Planning Group to focus only on pre impost retirement planning.
That's it. So we're in our I guess you could
say the twenty filling out the twenty fifth, going into
the twenty sixth year of pre impost retirement planning. I'm
always flabbergasted why people want to even screw around with

(01:16:02):
managing money during their retirement years, because there's so many
things and wonderful things to do in this world that
it really makes a lot of sense just to hand
it off, especially with all of the bumps in the
road and the technical things that you have to go through,
and when we talk about tax preference money. There are

(01:16:24):
numerous ways to get tax preference money. It's impossible for
me to cover all of them today in today's show.
But the thing is is that on the scale of
one to ten, some are not risky at all. Some
are extremely risky. It's a question what your appetite is
for risk. The farther you go out on the scale,
the more returns are possibilities of returns. The lower you're

(01:16:48):
on the scale one to two, okay, the least amount
of risk and the least amount of return. But that's okay,
just as long as you understand what the options are,
what are available to you in regards to tax preference money.
Now I talked about Roth, okay, and I said, the

(01:17:08):
bottom line, I don't think that there's a better investment
option out there as far as the chassis, whether it's
the Wroth Ira or the Wroth for own k. But
it's up to you in your own particular situation. Okay,
you need to choose the chassis. Now here's something that
I found this morning concerning okay, and this is not

(01:17:31):
something that I think people have not heard. I know
we do a lot of work with National Grid. We've
heard it from them, but Vanguard Vanguard the Mothership, agreed
to pay more than one hundred million dollars to settle
charges by the Securities and Exchange Commission in State Regulars
that it made misleading statements related to what target date

(01:17:51):
retirement funds target date retirement funds that stuck some investors
with big tax bills. Now I'm not pro or conon this,
but target date funds have never been on the top
of my list. Okay, you lose the ability, in my opinion,

(01:18:15):
you lose the ability to have control of your assets
in the timeframe might be entirely different based off of
what your needs are versus what they think your needs are.
So that's something you probably if you're in the plan,
you're going to get something in the mail. I don't
know how they're going to handle it, but that's in
the news today in Barns. So I got to say
goodbye for our first half hour. We're going to come back.

(01:18:36):
This is the Retirement Show, and I'm going to be
back after the news.

Speaker 9 (01:18:57):
Same same, Say it blow. That's the way it should be.

Speaker 3 (01:19:12):
Say you save me, all right, we.

Speaker 4 (01:19:16):
Are back, say it together. Tax preferenced money, tax preference
money why does it make sense. Well, there's a thing
in our business called lost opportunity costs. And what that

(01:19:43):
means is when you write the check to our friends
in Washington or the state that you reside in, the
money's going see you later, alligator. And what have you lost?
You lost the opportunity for you to spend it. You've
lost the opportunity for growth, and then you've lost the
opportunity for what transfer of wealth. So when you sit

(01:20:07):
down and you're building out your plan for your year
twenty and twenty five, whether you're in retirement, just about
ready to get into retirement, or you're trying to figure
out how do I build my chassis here for the

(01:20:29):
next twenty thirty forty years. As far as making contributions,
remember one thing. Ultimately the taxman cometh. You just got
to try to figure out what apple do I want
to pick off the tree? And how many different apples
do I want? Right? Because there are lots of different

(01:20:53):
ways in order to get tax preference money. It's just
a question which one makes you feel warm and fuzzy.
Let me highlight because I can't talk about all these
but I'll talk about the ones that are common that
we hear most about. Okay, you get hsas. I'm a
huge believe as much as roth iraise. I am a

(01:21:15):
huge believer in hsas, especially for young people. And the
high deductible plans. Now, if you're healthy, you want to
pick that one anyway, right, And the high deductibility accounts
right now are a minimal amount of money out of pocket.
So if you're young, professional, you're working, and you have
the ability to participate in a high deductible HSA plan,

(01:21:41):
do it. I forced Nico to do it as soon
as he started working for me. I said, you know what,
you're opening an HSA account. Don't tell me you're not going.

Speaker 3 (01:21:49):
To do it.

Speaker 4 (01:21:51):
Okay, that's one five twenty nine plans, right, benefits. There's
pros and cons T nine which I'm not going to
get in today. But that's another tax preferenced account. A
lot of times people will do five twenty nine plans
for a state planning purposes, and that that's another show

(01:22:13):
into itself, just for five twenty nine. There is the
tax deferred accounts. What's a tax deferred account? Well, traditional
IRA is a tax deferred account. A four oh three
B is a tax deferred account.

Speaker 3 (01:22:30):
The.

Speaker 4 (01:22:31):
TSP, the New York State Deferred compensation, your KIO account,
your simple IRA. Ultimately, someone's going to come knocking at
the door and say, guess what. Now you got to
start paying the tax. So the question becomes how much
money should be allocated into that type of investment structure.

(01:22:54):
The problem that has been in the past by this
dinosaur that's been in the business for forty three years
is that most of you when you were working, didn't
have the raw four oh one K option, didn't have
the HSA option, didn't have all these alternative investments which

(01:23:15):
you do today. So be aware understand that there are
additional options available to you, and how you allocate that
money will have a huge impact on tax free distributions
or tax preference distributions during your retirement years. Okay, now

(01:23:38):
here's here's another thing. A lot of people they'll do
their contributions. They'll do their contributions. Hey, Dave, I need
to put more money away, Okay, but I don't want
to pay tax on it. So non qualified annuities, okay,
non qualified annuities like mygas, the guaranteed ones at multi
year guaranteed annuities. I'm not going to go through all
of them. There's a bunch. Okay, it doesn't make any

(01:24:01):
difference what the chassis is. But an annuity will grow
on a tax deferred basis. Right. That means that all
the growth, you can move the investments around a thousand
times a year. Right, you don't have a tax consequence.
You don't have to worry about, you know, tax short
term capital gains. So if you want to trade, you
want to go in and out, you want to do

(01:24:21):
this and do that, you can do it and you
get the same benefits that you get of traditional deferred
accounts like an IRA four own K, except okay, you're
gonna have a lot more flexibility with those assets because
it isn't technically called a qualified plan. It's a tax
deferred annuity. Now here's my tidbit. Here's my story, and

(01:24:43):
I'm sticking to it. With tax deferred annuities, there are
some benefits that most people don't take advantage of it.
Matter of fact, I know most of you will not
take advantage of it. And there's billions, if not trillions
of dollars out there, and tax deferred annuities one of

(01:25:04):
the greatest benefits of a tax deferred annuity. And I'll
keep it simple. This is all hypothetical. It's off the cuff.
You put one hundred thousand dollars in it, and it
grows to two hundred thousand dollars, and you set that
money aside. That's going to be my money. It's going
to be a supplemental account to my small pension, my

(01:25:26):
social security, and when I retire, I'm going to use
that as an income stream. And so they retire and
instead of doing what they should be doing, which I'm
going to tell you this is the carrot on the stick.
They just take distributions off the portfolio consistently. Give me
five thousand, dave, send me six thousand, give me eight
thousand dollars. Okay, I'll say, hey, Bob, you shouldn't be

(01:25:49):
doing that. That's all going to be taxed, you know,
as ordinary income. Right. Last in first out right, you
understand that you got a tax liability. Here, What is
the greatest benefits of a tax defer to noity denuitization?

(01:26:12):
Why is it? Because when you have fifty percent of
your original corpus, that is your original money that was
already paid tax on, and then you have fifty percent
on gains.

Speaker 3 (01:26:27):
That means.

Speaker 4 (01:26:28):
That means that when you take the income through annuitization,
you create another pension benefit for you and your spouse.
A good portion of that money is not going to
be what reportable as income. It's non taxable. It's called
the exclusion ratio. So you have a good portion of
your income that is excluded from taxes, and you can

(01:26:52):
be over the threshold for taxation of soul security benefits
and still not having tax it's the only way that
you can legally do it, be over the threshold for
income and not have sold security benefits tax. Now, for
some people that's not event because they have so much money.

(01:27:12):
For some people, the hard working savers that come to
the retirement planning group, it means a lot because they
don't want their sold security benefits tax right. They've never
done a cola on that. I've been in the business
forty three years. It's been the same for forty three years.
Twenty five thousand dollars for a single individual, thirty two
thousand dollars for a husband and wife. There should be
a cola on that should be mandatory. Write a letter

(01:27:34):
to Washington and say straighten out the threshold for taxation
of solid security benefits because you haven't changed the damn
thing in decades. So from a lot of people. But
when I say the hardworking savers, right, the people that
have busted their humps their whole life. The plumber, the electrician,

(01:27:54):
the guy that went to ge worked in the factory,
whatever it may be. A to is eight. The farmer,
the guy that had the small little restaurant, little store
on the corner. They'd saved the bust at their tail,
and they want to basically maximize their income and minimize
tax liability. There are ways to do it, folks, but
you got to find the formula. You got to find

(01:28:15):
the opportunity that sits out there in order to maximize
income and minimize tax. Maximize income, minimize tax. In essence,
you're keeping more money for you and send them less
so they can blow it down in Washington. One thousand

(01:28:36):
dollars toilet seats and two thousand dollars hammers. So k
I s S. Keep it super simple, right. There's a
lot of ways in order for you to have simplicity, right,

(01:28:58):
more money in your pocket and the ability for you
to basically have what cash flow that's not taxed cash
flow that's not taxed, right, So we talked about HSA
accounts in detail many times. We talked about the Wroth

(01:29:23):
four to oh one k wroth IRA in detail. We
just talked about tax deferred annuities and how when you
turn them into income it makes a lot of sense
to do annuitization because a good portion of that money
is going to be tax exempt. It's called the exclusion ratio.

(01:29:45):
Exclusion ratio. And what our job is at the retirement
Planning group is to maximize income and minimize tax liability
and give you an affordable, care free run and down
the road to retirement. That's what makes me happy. We'll
be right back after this quick message the eighty six percenters.

(01:30:09):
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 of your lifetime.
Nobel Prize winning economist William Sharp has called retirement income

(01:30:29):
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,
you need to start taking action to start building your

(01:30:49):
own personal retirement income distribution plan. How do you do that?
To take action five one eight, five eight zero nine nine.
That's five one eight five eight zero one nine nine
or RPG retire on the web. Don't procrastinate, motivate to
start building your retirement income distribution plan five eight five
eight zero one nine one nine. The greatest risk in

(01:31:11):
retirement most of us have no plan for We're insurance
to cover the expense. A long term care event can
impoverish a spouse, drain your life savings, and cost stress
and anxiety on your family. What is your plan and
how will you pay for a long term care event?
Call the Retirement Planning Group today. Discuss options you should
consider to protect your estate and have choices and independence.

(01:31:32):
Take action Call today five eight five eight zero one
nine nine or RPG retire on the web.

Speaker 3 (01:31:58):
Well, madu, the time is really ruin.

Speaker 5 (01:32:04):
Have some.

Speaker 3 (01:32:07):
Rough way we work to be done. Let the music.

Speaker 4 (01:32:15):
All right, we are back. Snow's coming. Be careful, folks,
especially seniors. I had a great client of mine who
went out with her dog, slipped and fell and broke
her hip. She just got home, I think yesterday from

(01:32:39):
pet physical therapy. So row. I'm thinking about you. I
love you, you and your beautiful sister, and of course my
girlfriend there Anne Marie. You guys are great people, and
hopefully you're going to have a speedy recovery. There's nothing,
nothing worse. I know that my wife had hip replacement
she got older. You know, the the body starts telling

(01:33:02):
you some things. Right, who said it? Somebody said it.
I don't know if it was Einstein or somebody. Youth
is wasted on the young, right, Youth is wasted on
the young. You take it for granted. So we're talking
about tax preference money. We're talking about options that are

(01:33:24):
available to you in your pre and post retirement years. Now.
I'm going to talk to you right now about I
love you planning, and this is a topic for years
that I've been doing a lot of work in. And
my good friend, my former partner, and a guy that

(01:33:44):
I have all the respect in the world. For Dan
Bouchard was the one that convinced me to go into
a meeting one day and sat at a presentation that
talked about legacy planning transfer of wealth the most tax
efficient way I did, and to be honest with you,
changed my life in a lot of ways because I

(01:34:04):
understood the dynamics of what would happen if you just
sit on the fence and you just allow qualified assets
to just sit there and keep on growing and grown
and grown. And then what happens is that there's no
such thing as the stretch ira anymore. It's going it's
the thing of the past. And now it's ten years
that you have the money. Money has to be out

(01:34:25):
the door by what we call non spouse beneficiaries. There's
a couple of caveats, but it's minimal. So the thing
is is that you basically you're creating this nightmare when
you least want the money is when the distributions become
the greatest because of R and D. And you're sitting
there eating your Mapo and you're getting a check in

(01:34:47):
the mail for one hundred thousand dollars, which is taxes
ordinary income, simply because you sat on the fence and
he didn't do anything. Now I'm in the camp. But
what we call carbots, what's a carve out? If I've
got a million dollar IRA, I've got two small pension
benefits and sold securities, and I know I need some

(01:35:09):
of that money, but I'm not going to need all
of it for my spouse and I. Then what am
I going to do with this big pile of cash? Right? Well,
I'm gonna basically carve off a portion of it. I'm
gonna turn the rest of it into what we call
cash flow distribution for the rest of my life. Right
I'm gonna use it. I'm gonna have fun. We'll take
the cruises, take the kids to Disney, do vacations, I'll

(01:35:32):
always I'll buy the car that I've always wanted done
at meet them. I'm gonna go buy my sixty seven
gto convertible four speed stick right, my dream car. And
then I'm gonna take the rest of the money and
I'm going to replace it what I carved off dollar
for dollar the pool of money that I started with.
So I started with a million dollars and I'll just

(01:35:52):
say I'll keep it simple, Say I need four hundred
thousand dollars. The six hundred thousand dollars, I'm going to
turn it into that what I call the you know,
my dream income portfolio, do all the things that I've
always wanted to do. So what happens. I spend that down,
my wife and I utilize it in our lifetime. The
four hundred thousand dollars we now take it. I'm going

(01:36:13):
to make this simplistic so everybody understands us I take
the four hundred thousand dollars, I don't pay it out
all at once. I pay it out over time, and
hypothetically that will create a million dollars in death benefit
that's hill held inside an irrevocable trust, that's protected from creditors, predators,
evil son and laws and daughter in laws, and that

(01:36:35):
money now, when I pass away and my wife passes away,
it will be totally tax free assets to my children,
my loved ones, my grandkids. And now they can reach
into the pot and they can say, here's a dollar
and that's all I have to do. A dollar in
dollar out right. I don't have to worry about what's
my tax consequence because these are all tax free assets.

(01:37:01):
It sounds simplistic. But the key is, folks, here's the key. Okay,
you listening to this as they tap on the mic.
You pay some tax. You and your spouse have to
pay tax on assets in your lifetime. So when the
kids receive the assets, they're dancing in the streets because

(01:37:21):
it's no different than a roth IRA. It's all tax free,
tax free. I love that word, two words tax free.
You don't have to worry about step up and basis.
You don't have to worry about ird in come and

(01:37:44):
respect to the deceed. You don't have to be concerned
about our mds. The money's got to come out when
I least want the money. And of course, what when
I pass it on to my kids? They're probably in
their go go years making the most amount of money,
and now I'm laying a one million dollar IRA on
their lap. So there are options available to people that

(01:38:11):
have already gotten out the door into retirement. The question
becomes do you sit on the fence and say the
hell with it? They got to pay the tax, so
what No, I don't care. Let them pay the tax.
They're getting a lot more than four. Are you going
to be in the camp that says you know what,
I love my kids and my grandkids. I'll pay the
tax in my lifetime and when they receive the money,

(01:38:32):
they're not going to be burdened by this RMD and
what the tax consequences are going to be. And I'm
going to also here's the key. Hey, Dave, what what Susie?
Billy and I want to make sure that our son
in law is something happens to our daughter. We don't

(01:38:53):
want him to get the money. Okay, Well you got
to have a trust then, okay, and then the trust
will be basically guarantee that that evil son in law
doesn't get the money. Okay. Bankruptcies, creditors, predators, whatever it

(01:39:13):
may be. So here is the key to tax preference money.
Here's the key. You got to get off you're dof
and you got to motivate, and you got to start
making decisions because as you age, some of these opportunities

(01:39:34):
go away, especially when you lose one of the spouses,
then you've lost some of the abilities that you would
have when you're both around, you're both healthy, and you're
either just getting out of the gate or you're getting
into the gate of your retirement years. So we talked

(01:40:00):
about a lot of stuff. Today we talked a lot
of a lot of opportunities that exist beginning of twenty
twenty five. But the key to all of this is you.
Is you. Are you in a situation where you feel
like you're comfortable with how my estate is structured? Are

(01:40:23):
you in a situation do you feel comfortable right that
if I pass away prematurely? Is everybody going to know
where the dominoes fall? First domino drops, then the second one,
where does all of these assets go? And do I
have it set up properly in order to facilitate what

(01:40:46):
my wife and I a or my husband and I want,
or my companion, my loved one. And then finally, this
is something that you have to You know, there's all
sorts of studies that are being and done. There's all
sorts of research as far as how people are going
into the retirements and how you can transform your retirement

(01:41:09):
you can ensure that you're going to enjoy your life
that you've worked so so so hard to achieve. And
the key to all of these studies, the one that
just recently came out basically says is that you need
to have a certain amount of baseline income that whether

(01:41:33):
it's good days or bad days, that you understand that
you have financial stability, that the assets that you've accumulated
in your lifetime will last for your lifetime. That's the key.
There's anything I can overemphasize. For twenty twenty five, we

(01:41:57):
will have another market correction. You know what's going to be.
We will have another event. There will be another black
Swan event. I've lived like three or four already in
my lifetime as a financial advisor. You got to just

(01:42:21):
ask yourself are you prepared for when that time comes?
If you're not, then I highly advise that you pick
up the telephone. Like Peter said that called in and
said that he enjoyed having a conversation with us. We

(01:42:42):
don't alligate or wrestle anybody. We don't try to force
you to do things that you don't want to do.
Our first meeting is a conversation. That's it. Then we
call and we see if you want to come back
for the second meeting. And then that's basically when we
put some of the rubber to the road. It's the

(01:43:03):
third meeting that we really put the rubber to the
road as far as this is what we're going to do,
and this is how we're going to implement your plan.
Do you feel comfortable with it? Do you feel comfortable
with it? Did you go out and talk to other
people and see what their process is and how they
feel about all of these different selections that are available
to you for your retirement years. Make sure your retirement

(01:43:27):
is properly funded on the front end. Make sure your
retirement is properly funded on the front end, because you
don't want to have the challenges that a lot of
people have faced, like in twenty twenty two, the financial crisis,

(01:43:48):
the Internet bubble, all the things that I could go through,
the flashcrafts. So we're going to have to say goodbye.
But hopefully you found today's informative. If we can be
of assistance to you, there's two wadys. Get in contact
with us five one eight five eight zero one nine

(01:44:09):
one night is our telephone number. Ask for a complimentary
consultation sit down. Look at the web rpgretire dot com.
I'm Dave Kopek. Hopefully we could be of assistance to you.
God bless and be safe under this bad weather conditions.

Speaker 1 (01:44:25):
Thank you for listening to the Retirement Planning Show hosted
buying Dave Kopek, w g WISE retirement planning specialist. If
you would like to talk with Dane or someone at
the Retirement Planning Group, call five one eight five eight
zero one nine one nine. That's five one eight five
eight zero one nine one nine during business hours, or
visit RPG retire dot com. The Retirement Planning Group has

(01:44:50):
five convenient offices located in Albany, Malta, glenns Valls, Syracuse,
and Oneana. Tune in again next week for retirement planning
strategies with Dave Kopek right here on wg wi's Retirement
Planning Show. The information or services discussed on this show
is for informational purposes only and is not intended to

(01:45:10):
be personal financial advice. The investments in 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,