Episode Transcript
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Speaker 1 (00:07):
All right, Syracuse, Good afternoons, good afternoon, good afternoon, on
a beautiful Saturday. Hopefully everybody's enjoying the day. It's gonna
be a great day. I'm actually broadcasting from my studio
at my home in Lake George, New York, looking at
(00:30):
the lake, looking at the beauty. Saratoga is popping today.
All the horses are racing, the big rais, the travers.
I don't know if you're out on your boat right around,
take care of the yard. Maybe you're working well. We're
going to talk about a topic today that is top
of mind for a lot of people, especially with what's happening,
(00:52):
and I think this might be one of the most
important conversations that I'm going to have with you, the
listeners of WSYR. I'm going to give out the telephone
number if you want to participate, because folks, this is
talk radio. Okay, that means that I talk you call in.
(01:15):
Hopefully I can answer your question. If I can't, that's fine,
I'll let you know and I'll get back to you,
or I'll bring it up the next week. As far
as it but I've been doing this now radio for
twenty five years. I've been in the business for forty
three years and if the Retirement Planning Group, what we
try to do is educate you and inform you on
all the obstacles that you will face during your pre
(01:38):
and post retirement years. But if you have a question,
it's pretty simple. Three one five four to two one
ninety seven ninety seven. Three one five four to two
one ninety seven ninety seven. That's three one five four
to two one wsy R and a very competent engineer.
We'll take your message and forward it to me and
(02:00):
I'll bring you up live on the radio. So if
you want to be a radio star, today's your day
to do it. Eighty five trillion dollars of wealth is
starting to transfer, folks. I've talked about this now for
about a year, and as I said, over the next
two to three decades, you're going to witness one of
(02:22):
the greatest wealth transfers in the history of mankind. It's
estimated somewhere between eighty five and ninety trillion dollars is
expected to pass from the Baby Boom generation to Gen
X and the millennial just in the United States alone,
(02:45):
just here in the good old USA. And this is
an unprecedented, unprecedented financial shift, and it's going to reshape
how individual rules. The boomers children are going to approach
their own retirement planning because of the inheritance that they
(03:08):
will receive in the financial legacy that will pass on
those We're all quite well aware we're living longer lives.
I know the numbers don't read that out when you
look at the statistics, but I can tell you that's
somebody that's been sitting in the seat for forty three years.
We got a lot of clients that are in their
eighties and nineties and you would never know. Our oldest
(03:31):
client has passed away at one hundred and two. He
skied in the Adirondiccks until he was ninety nine. GE Executive.
So as people live longer lives and most families are
becoming a little bit more financially interconnected, as they start
(03:54):
preparing and talking about this massive wealth transition, it is essential.
I'm going to say that a lot. It is essential
for those individuals that are passing on assets, but for
those who will inherit them to have conversations to effectively
(04:19):
understand what is happening. It also means positioning your wealth
in a way that aligns with your own personal values,
minimizing tax liabilities and ensuring a smooth, tax efficient succession
to the next generation. So the Boomers, my generation, for
(04:48):
all those individuals that were born between nineteen forty six
and nineteen sixty four, turn up your radio, pull off
to the side, turn the lawnmower off, tell the kids
to stop jumping in the pool, because you got to
listen to this. Our generation collectively holds more than half
(05:18):
more than half of all the US household wealth, the Boomers,
So of the eighty five trillion dollar wealth transfer, much
of this is tied up in real estate, investment portfolios,
(05:41):
family businesses, retirement accounts, and as this generation enters into
what we call a little bit more advance retirement or
passes away, these assets will eventually transfer to our kids
and our grandkids and our charities. So eighty five trillion
(06:10):
dollars is out there, about seventy three trillion is going
directly to the errors, hopefully a step up and basis,
and they estimate somewhere around twelve the thirteen trillion we'll
go to charities. So it's critical for both the givers
and the recipients planning is essential to preserve this wealth.
(06:35):
Here are that, folks, Planning is essential to preserve this wealth.
If I had a statistic, if I did a calculation
for every person that came into the retirement planning group
and sat down with me and asked me this question,
(07:00):
I would probably say that seventy percent of the time
I always give the same answer, maybe even higher than that.
What do we need to do in order to put
ourselves in a better place? What do we need to do? Dave?
We feel like we're kind of, you know, just moving
(07:21):
through here and we really don't know what's going on.
Guess what, folks, what's it called? You need a plan?
You need a plan? You know, you got all these
screaming monkeys that are out there all the time. They're
doing great managing money, and they're stellar returns and you
(07:42):
know they do this, they do that, and blah blah blah.
But that's great. I applaud them. I'm glad that you're
such a hero as far as managing money. But what
good is ROI when most of it is going to
go bye bye? See a leader alligator, because it's going
to go away in taxes right, Look at that big ira, Well,
that's great, it's not yours. What do you mean it's
(08:04):
not mine? Well, what do you mean, Well, there's a
mortgage on that. There's a mortgage on it. What the
hell's a mortgage on my IRA? Well, the mortgage on
ther IRA is that you ever heard of? Uncle Sam? Well,
he's going to take some of it. And then depending
on your state, right, they're going to take some of it.
And if you know, depending on your state, is there
a state tax mirror federal, they're going to take some
(08:25):
of it. So you have a mortgage on that IRA
that's not your IRA, that your kids, in the government
and whoever else might be around that wants to take
a little clip of it when it's coming out the door.
And that's even before I talk about long term care planning.
That's a topic to itself. What's happening in New York
(08:47):
State when they say iras are protected from a Medicaid
spend down, No, that's not true. That's not true because
now the counties are making you pay on these distributions
based on life expectancy non I periodic payments or uniform lifetimetable.
So you've lived a long life, you got Alzheimer's We
(09:09):
just had a woman empty it out her IRA and
she had long term care insurance. It is essential, folks,
that you know what you're doing, dot in your eyes
and crushing your tea's Because if you're not dotting your
eyes and crushing your te's, this significant amount of money
is gonna go puff. It's gonna go bye bye. Because
(09:32):
you were really good at what I was great at
this procrastination. I was one of the best in the industry.
My wife would come home to me and she would
say to me, you know what, you're so full of it.
That's what the hell you mean. She goes, you go
on the radio all the time, and we don't have
our plan. This is about five six years ago. It's
(09:54):
almost like she kicked me in the head. So about
five or six years ago we put our plan in place.
That's what you need to do to put your plan
in place. It gives you freedom. It gives you confidence
that everything that you've worked so hard for, everything that
you've worked so hard for in your lifetime, allows you
(10:16):
to transfer it to your loved ones the most tax
efficient way. A comprehensive estate plan not only includes wills.
I'm not a big believer in wills, your trust, your
power of attorneys, your healthcare proxies, to ensure that the
(10:36):
assets that you've busted your hump for clear all the
legal hurdles and all your friends with the state and
the federal government and taxes and a state minimization is
not accomplished. You've worked hard for that money. Why do
you need a partner that's going to share in it?
(10:58):
And you can do it by having but say it loud.
Roll down your window in your car. Let's hear you.
I can hear you. You need a plan. You need
a plan. So we're gonna take our first break. I'm
Dave Kopek. We have open lines if you'd like to participate.
This is Talk Radio three one five four two, one
ninety seven ninety seven. We'll be right back. F M.
(11:26):
All right, we are back. Glad to be here. I
just had a good friend of mine to just text
me on my phone. Who's out on skinny Atlas Lake.
He's a new client of ours. He says, you sound great.
I can't wait to see you again. But we're gonna
(11:48):
head out on the boat and we're gonna have a
great day. I can't wait to see you too. Bud,
you and your beautiful life and family. You know, We've
got new offices. They're going to be ready in a
very short period of time. They were supposed to be
ready September first, but I made some modifications and adjustments.
(12:11):
But we're going to have our brand new offices, which
are located at six seven zero zero kirk Phil Road,
Suite one A. We're going to have pull in the
first two spots are going to be retirement Planning group.
And we got beautiful offices and everything's being modernized in
the bathrooms that are being redone. We're excited. We're excited.
(12:37):
If you listen to the show, you know I'm a
big Syracuse fan, love Syracuse sports. I played high school
and college basketball. I coached for a while when my
kids were going to CBA Christian Brothers Academy. So I
love love sports. I love I think it's great for
our children, that competitive spirit, and I think it kind
(13:00):
of followed me through and what I do now into
the financial services indudry story. So be more announcements. We'll
have a little party maybe for some of our individuals
or clients, will do something like a grand opening. It's
six seven zero zero Kirkville Road, and we can't wait
to get there. I don't think we're going to make
(13:21):
it by September first, but probably in the middle of September.
We're talking about problematic money. But again, if you have
any questions or comments, you don't have to text me.
You can actually go live on the radio three one
five four to two one ninety seven ninety seven. Three
one five four to two one ninety seven ninety seven.
(13:41):
Even if it's off topic, that's okay, it's Saturday, it's
no big deal. Well, we're talking about this wealth transfer
and the problematic money that's out there. I raise trillions
of dollars, never a step up a basis. Money is
always taxed as ordinary income. U how you leave it.
Sometimes times you know, it can be gobbled up by
(14:02):
a divorce, a bad marriage, the pol boy people, son
of laws and daughter in laws. So you've got to
make sure that you're dot in your eyes and cross
your teas. Trust. Trust, let's talk about trust. Trust in particular,
offer a lot of control over how and when your
loved ones receive assets. So whether it's a revocable or
(14:24):
an irrevocable trust high net worth. I don't even think
it's high net worth individuals anymore. Most individuals I think
that have created wealth should consider utilizing trust in their lifetime,
not only in order to simplify settling the estate. I
always say this, if we do our job, got the
(14:46):
retirement planning group, and you build out a plan, and
you listen to the attorneys that you're working with, you
should settle your estate in seventy two hours. That's seventy
two months. By titling assets, dotting your eyes and crossing
your t's, you can accomplish a lot a lot, So
(15:10):
make sure make sure you understand not only how you
title assets, the advantages of trust, revocable versus irrevocable, generational trusts,
generation skipping trust, a B trust. There's a lot of
different types of trust, folks. But with the lifetime estate
(15:30):
and gift tax exemption currently at thirteen point six one
million per individual, a lot of affluent people right now
are leveraging this window to gift assets to their errors
before any future reductions. I travel all over the country.
We've got clients in twenty eight states. I was just
(15:51):
in Ocali, where I've got a very good client that
owns a horse farm down there, and we're just discussing
this as far as how we're going to eat and
basically turn on some of these assets that he has
and basically retitle them into the trust that both him
and his wife have. So I can't overemphasize this enough too.
(16:13):
Don't think you can do this by yourself, because you can't.
I'm not not patting myself on the back telling you
how great I am, but I am great. But I
can tell you one thing for sure. All right, you
need to find a financial team, whether it's the retirement
planning group, whether it's someone else in the Syracuse region.
(16:36):
You know, our iHeart Radio travels throughout the country, so
people that are listening to the show in the Syracuse
region right now might be listening in Texas, Arizona, Florida,
whatever it may be, because they can tune in on
the iHeartRadio app. So working with a financial team allows
(17:00):
you to, I think, not only design a tax efficient strategy,
tax preference strategy for your assets, but it also allows
you to basically understand why a Wroth conversion makes sense,
Why spending money down and putting it into a irrevocable
(17:20):
life insurance trust makes sense, why doing charitable donation makes
truck makes sense during your lifetime donor advise funds. How
you manage required minimum distribution? Why a q LAC might
(17:42):
be something for you to consider as far as reducing
rm ds, you know, receiving a significant inherence. It can
be a challenge and it can be a blessing, right.
Sometimes people freak out when they see the type of
(18:05):
money that mom and Dad are leaving to them. Right,
but without proper financial planning or guidance, it's probably a
pretty good chance, folks, that maybe some of the money
gets squandered away that you took decades to build. So
(18:29):
this goes back to the word that I keep on
saying to you over and overgoing over and over and
again and over and over again and again and again
and over again. Planning is crucial for recipients who are
going to receive inherited wealth. But I'm also a big
believer that I want Mom and Dad to enjoy themselves
and do all the wonderful things in their lifetime and
(18:51):
stop worrying about the damn money and go on the
trips and the vacations. Because I'm starting to do it myself.
I'm going to Europe in September, I'm going to Iceland, Germany,
and I'm going to Poland. And I can't wait to
get on the plane to go because I made a
promise to my wife when she retired from teaching that
I was going to spend more time with her and
(19:13):
do see some of the things. But I will never
retire because she would kill me. There's no way that
I could hang around the house for an extended period
of time because I'm a tight triple A. I'm not
a B or a C or a D. You know.
I get up early every day, four four thirty, and
I'm up late in the night, and I sleep for
(19:33):
four or five hours, and then boom, I'm back up
and doing it again. And that's the other thing I
always like talking about. Planning is crucial, but also plan
what you're going to do when you retire. You should
plan that as much as you plan anything else, because
(19:56):
the last thing you want to do is walk out
the door and say, oh Jesus, tell he am I
going to do now? Now? Some people embrace retirement, you know,
here over and over again. I don't know how I
ever worked. I got I'm so busy. I don't know
what to do sometimes because I'm so busy. I don't
know how I got to work. I don't know how
how I worked because I'm so busy. Now, well, that's
(20:18):
what you want to have in retirement. Pickoleball, basketball, golfing,
you know, going to the villages. You go to the villages.
You got everything from A to Z down there that
you could possibly imagine, the things to do. I've got
a lot of clients in Florida that live in the
villages now, and most of them absolutely love it. But
(20:40):
as I said, eventually we becomes either a he or
a shape. And then when that doesn't happen, and the
wheels start falling off the bus and there's health issues
and you're limited as far as travel, maybe the ability
(21:02):
for your cognitive that's when you better have a plan
in place, because that's when things can crater really really quickly.
If you look at nursing, home, assisted living, at any
of these facilities where seniors go, and what the cost is,
(21:24):
you'll blow your eyeballs out of your head as far
as what the cost is for some of these facilities.
So it is imperative not only to have a plan
for your money when you're happy and healthy and bouncing around,
but also have a plan for your money. When you're
not so happy, not so healthy, and you're not bouncing
around what I call not the go go years or
(21:46):
the slogo years. I call it the no no go,
the no go years. When you're no going, you better
have a plan because sometimes it's sudden. Sometimes the impact
that it can have on your retirement assets, your estate
can be cataclysmic. So we talk about iras IRA distributions.
(22:16):
Real estate will always receive a step up in basis,
right as long as you don't gift it. Do not
gift the don't gift real estate to your kids, folks.
You want to have a step up in basis. So
the day to death is what they have is their
cost basis. And as I said, you know, I've got
(22:37):
a wonderful, wonderful couple that we just became clients in Syracuse.
He's a very successful businessman and his wife and they're ready,
they're ready for retirement. Then one of the things that
they're having trouble with because they grew up not so wealthy.
(22:59):
You know, they beasically created everything like a lot of
our clients that they've had in their lifetime they're now
trying to figure out, you know what, I feel kind
of uncomfortable. How am I going to spend all this money? Well,
you're going to spend it. You're going to spend it.
We're going to tell you what you can spend and
what you can't spend. But my son just met with
(23:21):
a couple out there the other day, my son, Christopher,
who works for me, who is a Siana graduate that
has a degree in financial planning. He said, Dad, this couple,
they really are having a hard time spending money. And
I said to my son, who's been in the business
now for five years, and I said, I've been you know,
like I said, I've been doing it for forty three Chris,
you can't change the stripes of a tiger. If they're
(23:46):
using the same ziplock bag ten times over, they're washing
it out, whether they got ten dollars or ten million.
Mama Bear is going to keep on washing out those
zip block bags because that's bana And you're not going
to change my mind. And if Dad is going around
to all of the drive sales, he's not gonna stop
(24:08):
because he's gonna get a deal. He gets a kick
out of getting a deal. No matter what the checkbook
says or what's the you know in the financial statements.
So wealth has to align with your values and also
align with your children's values as long as they understand
the train that's coming down the track. Right. I got
(24:30):
to take a break for the news. When we came back,
we'll discuss this and great, but folks, I'm live call
in three, one, five, four ninety seven. I'll be right back.
All right, good afternoon, We're back. Decopik your host. This
(24:55):
is the retirement planning show. You're here on the weekends.
Fully educate you on the different options that are available
to managing assets, managing your estate, wealth transfer. We really
focus in on four particular areas investment management as a protection,
(25:15):
legacy planning, and number four, which is a big one
for US retirement income distribution. You need a plan. You
need a plan. You need to know what is going
to be there when there is turbulence in the markets.
And after forty three years of doing this, believe me,
(25:36):
there will be turbulence in the future as there has
been in the past, what we call black Swan events.
So today I'm live. I'm staring at Lake George in
my studio at my house. If you want to call in,
it's three one five four to seven ninety seven. Three
one five four to seven ninety seven. Very jealous of
(25:58):
my friend text menion cities out on his boat on
skinny Aatlys. But I will be on on my boat
Chartie too. Three one five four seven. That's three one
five four two one w s y R. If it's
off topic, that's fine. You like phone calls because I
think it makes it a little bit more interesting for
(26:18):
the listener instead of me babbling. This is talk radio anyway, right,
So we're talking about the greatest wealth transfer. We're talking
about I raise required minimum distributions, uniform, lifetimetable. You can
go through the whole laundry list rm ds. You know,
you know all the things that you're going to need
to do in order to facilitate distribution as you age
(26:42):
off of these accounts. Now, if you were smart and
you took that ability to do the Wroth conversion, Remember
we had the ability to take the Wroth conversion and
pay it out over a period of time. Excuse me
fighting a cold a little bit, folks. You know those
(27:03):
four own K programs. It's not uncommon to see individuals
that have hundreds of thousands of dollars in broth for
them ks now in wroth iras, and those are great assets.
Those are un complicated assets because you're not forced to
liquidate them as you age. It's tax free growth, it's
(27:23):
tax free for your spouse, and it's tax free for
the kids when they receive him. The problem that we're
talking about is one that's probably least talked about, and
everybody keeps on looking at it because it's getting bigger
and bigger and bigger, and you've got a bigger, bigger,
bigger smile on your face. Is IRA assets. What Ed
Slot talks about is the retirement time bomb. Ed Slot
(27:47):
is a CPA that is known for his expertise on
IRA distribution planning. We sponsored him for a PBS show,
The Retirement Planning Group, and he's a good friend of mine,
and I think he does a wonderful job educating people.
But what I think is probably one of the most
overlooked part of your overall estate plan. Now, if you're driving,
(28:10):
don't do this, But if you're not driving, close your
eyes and think about your own personal wealth. Then think
about how much do you have pre tax versus after tax,
And how much do you have in home equity Because
a lot of people that are coming into the retirement
(28:31):
planning group, seventy five to eighty percent of their wealth
is tied up in probably two assets, equity in your
home and your four oh one K program. Now, how
do you unwind some of that four oh one k
in order to get some tax preference. Well, if you're
in your forties and fifties, you should be looking at
(28:53):
funding WROTH four oh one K, and if you're eligible,
doing the ROTH I ring, and if you're eligible, doing
a high deductible plan for your your health insurance, and
funding an HSA health savings account. Because, as I said earlier,
(29:14):
Fidelity just came out with their number. A healthy sixty
five year old couple right now each will need one
hundred and seventy two five hundred dollars in their lifetime
in order for him to be able to afford out
of pocket expenses out of pocket expenses. All right, there's
(29:38):
a gentleman that did not want to be on the air,
but wants you to answer what happens when you receive
a significant amount of inheritance. Well, that's a very generic question. Jack,
But I'll try to answer it in the very basic terms.
First of all, God bless thank you that you did
(29:59):
receive that from whoever it was a family member or
a loved one. Hopefully a lot.
Speaker 2 (30:04):
Of it is received in a step up and basis,
meaning that you received it tax free, and hopefully a
lot of it is not IRA assets, because if it's
IRA assets, you get ten years if you are not
the spouse to get the money out the door, and
(30:26):
it's all taxed as ordinary income.
Speaker 1 (30:31):
And that's what's happening when we talk about this eighty
five trillion dollars of wealth transfer. I'll give you an
example and maybe this will resonate with you, Jack. I
talked about it earlier today, and I'm not too sure
if it was on this show or another one that
I do, but I talked about a husband and wife
that are clients of ours, have been clients of ours
(30:52):
for years. He was a teacher at one of the
major school districts in the Capital District region and his
wife was a principal. Both successful. Both have inherited a
significant amount of money from her sister just recently. Her
sister was a nurse at a high power job at
(31:13):
the hospital, made a lot of money loaded up in
her four oh and K program and iras blah blah blah,
and she had well over seven figures inside these assets.
She did not have family children, and she left the
money to her sister, and she had no contingent beneficiaries,
(31:33):
and now her sister has the seven figure ira that
she doesn't necessarily need. She's happy that her sister thought
of her and she left her that kind of wealth,
but now that large wealth transfer is causing a lot
of complications for them as far as tax liability, additional tax,
(31:57):
and their medicare premiums and ultimately Lee. Her sister had
intentions of where she wanted some of that money to go,
and now they have to pay the tax on it
because when it comes out the door, it's all taxes
ordinary income. And now she wants to give some of
that money where it would have been so much easier,
(32:20):
so much easier that if her sister had come and
sat down with us at the retirement planning group. The
one thing she lacked on her beneficiary form was a
contingent beneficiary. She had a primary, she didn't have contingent.
(32:40):
So her sister, right who was the primary beneficiary could
have disclaimed some of that money and got it to
the nieces and nephew that she wants the money to
go to. So hopefully in your situation, you know that
when you receive a significant amount of money from inheritance,
(33:02):
there is I guess a thought process on your part.
You've been blessed, where do you want the money to
go now? And how do you want to protect it?
And is it a life changing event for you and
your spouse and is it a life changing event for
your family? Because that type of planning can really go
(33:27):
on for generation. You could have generational trust that could
basically be Santa Claus every year. As far as distributions,
we have one family that is extremely wealthy and the children,
the children every year from their grandfather, they get a
check for fifty thousand dollars to basically do what they
(33:51):
want to do with the fifty thousand dollars for the
quality of life. He just didn't lay this big egg
on him that here, we're going to leave these assets
for you. So I would say, come on in. We
got a brand new office that we're opening up at
sixty seven hundred Kirkville Road. We're excited to be in Syracuse.
We've been there now for over a year. We're finally
(34:12):
getting our office finished. Give me a call eighty eight
five eight zero one nine one nine eight eight eight
five eight zero one nine one nine and tell them
that you listen to the show. You want to come
in for an appointment, and I'll sit down with you.
Say that you want to meet with Dave, and I'll
be more than happy. I'm out in Syracuse now probably
at least three or four times a month, at a minimum, myself,
(34:33):
my staff is out there quite a bit, so we're
going to take our last break. I like questions, folks.
It always makes it more interesting. Three one five four
to two one ninety seven ninety seven. Three one five
four to two one ninety seven ninety seven. If you
have a question, believe me, there's a lot of other
people out there. You don't have to go on the line.
We can do exactly what we just did. You asked
(34:54):
the question, my very competent engineer will send it to
me and I will try to answer it to the
best my ability. We'll be right back. All right, I'm
tapping my foot here. Well, hopefully you're enjoy the day,
(35:19):
because it's beautiful where I am, and hopefully you're enjoying
your day. Use I know that there's a lot of
wonderful things to do there. I know if I was
out there and the on Skinny Atlas doing a little
bit of boating. What a beautiful, beautiful, beautiful area that is.
My wife and I, my son and his girlfriend had
(35:39):
the opportunity to go there, and it is absolutely gorgeous
and we love it and we'll be back good food.
I met some friends, some clients, some new clients out
there and had a great day. I'm a terrible golfer, folks,
so don't invite me to play golf. It's just I
(36:01):
don't know well golf. And I have a golf league
that we are involved in. I sponsor it. I can't
make it as much as i'd like to because I
travel so much. But I went the other night and
there was three foursomes backed up a whole number three
(36:22):
and I stood there for like fifteen twenty minutes, and
I said, this is the reason why I don't play
golf a lot. You know. It took us over three
hours and played nine holes. That's not golf. That is
anxiety and stress for me, not fun. So again I'll
go up the number three, one, five, four ninety seven.
This is talk Radio. I am the president of the
Retirement Planning Group. Been doing it for forty three years.
(36:44):
So I've seen a lot of things that could possibly
cross my desk. Good markets, bad markets, horrific markets, horrific things.
I used to work for Morgan Stanley, and you know,
I was in the towers all the time. By the
grace of God, I wasn't there the day that the
towers were hit. So you know, we're fortunate a lot
(37:05):
of ways to still be here. Some of my friends,
some of my buddasis that stayed the Vista Hotel that
was between the towers all the time. So you know,
God has a way of kind of waking you up
for what's important in your life. And I know one
thing that is definitely important to me families. Families. You know,
(37:28):
our clients become family and we get very close to them,
and we try to make sure that you do not
make bad decisions. We want you to avoid bad decisions.
So when I say that it will be very very
important for you, okay, to have conversations with your families.
(37:55):
I'm going to try to read this. I think I
have another question here, but I want to make sure
will divinend paying save money saving money versus I don't
understand that we'll diven and paying save money versus four
oh and kuh. Let me try to answer that if
(38:16):
he means buying dividend stocks rather than investing in a
four oh and K. I think our mantra has always
been this. Okay, let's get into the four one ks
a little bitter. Our mantra has always been this. Take
the match from the employer in your four oh and k,
then sit down with your financial team and do some calculations,
(38:39):
because you want to put after tax dollars into your
four oh and k WROTH and if you're eligible, you
want to fund your wroth IRA. And if you're eligible
that you have a high deductible plan, you want to
load up that HSA account. I can't overemphasize this enough.
Listen to me, folks, please listen to this. Tax free
(39:01):
is good good. Tax free is good. Dividends outside of
qualified plans are good because of the tax preference that
you get. Right, So, the more tax preference money that
(39:21):
you can have in your retirement years, and that Nott's
being forced to be liquidated. The better off you're going
to be because someone else is not controlling your cash flow. Right.
RMD means exactly what it says, required minimum distributions, not
(39:44):
hopefully distributions required means you got to take a certain
amount of money out, whether you want to or not.
And guess what, and guess what if you don't take
it out. There's a big old penalty. Right. They kick
you in the teeth for taxes. It's like fifty percent
of what you didn't take out is tax on top
of what you didn't take out is taxes ordinary income too.
(40:07):
So the thing is is that you got this ring
around your neck that's called RMD, and they yank it
every year and they basically say, Dave, give me my
money boom, and I say, no, I don't want to,
but I don't want to pay that tax. So here
it comes. The money's coming out. It's not a fun spot.
(40:28):
And I tease you a little bit about it, because
we like to have fun at the Retirementploying Group. But
pre tax money is complicated money. Never a step up
in basis, as I said, always taxes ordinary income. Trillions
of dollars are being sent to our kids. You're not
sending them a legacy, You're sending them a tax liability.
Doesn't that make you feel real warm and fuzzy? So
(40:50):
what I always say, our team can help you navigate
these estate in tax laws now while you're alive. We
can help you create trus us in legal documents that
will make it more beneficial for your kids to do.
What get the money, protect the money, and ultimately the
money is going to be sent to where you want
it to go, not the evil son in law doing
(41:13):
in law, the pool boy and all the other people
that you don't want it to go to. Right, And
we educate you on financial management, We educate you on
acid protection, We educate you a little bit on dividend portfolios. Right,
So bottom line gets down to the younger generations. Here's
(41:40):
another question, Dale, not on the air either planning on
coming to see you, wants to do the right thing
when saving to provide for some God bless Dale. We
can definitely put you in that position. Brother. You know,
we got a motto at the retirement planning group and
it's been something that has always been with me since
I did this, because when I got involved in this.
I lost my day a very young and it was
(42:02):
not fun growing up without a father. And I always
said to myself when I got into the business, I
was always going to do the right thing because I
never wanted anybody to go through what I went through
as a young child, and seeing my mom work as
hard as she did, and to me going to work,
you know, at thirteen years of age. Not because I
necessarily wanted to go to work at thirteen, but if
I wanted food on the table and I wanted a
(42:22):
roof over her head, I had to go to work.
So we always do adt RT, even if it hurts us,
always do the right thing. So you might not like
what I say to you. Sometimes people think I'm too aggressive,
I'm two in your face. But you know, after doing
(42:42):
this for forty three years, I think I got a
pretty good idea of how wealth is preserved, protected and purposefully,
purposefully passed on. How do you like that, preserve protected
and purposely passed on? Because the last thing I want
to do is all through the pearly gates. And the
man's gonna say to me, hmm, you didn't do you
(43:05):
say you're gonna do digit, and I'll say yes I did, sir,
Yes I did. Jesus. So you know, when you get
to be my age, you realize that this is a
fast trip. And as we sit here today, if you've
(43:27):
pulled off the road to listen to my show because
I told you to stop, close your eyes, well open
your eyes. Now you know we're already at August twenty third, folks,
we're gonna blink our eyes. We're in September. We're gonna
blink our eyes. And Santa Claus's coming down the chimney.
The worst thing you can do, I'll tell Dale, who
didn't come on the air but he wants to plan
(43:49):
to do something right for his son, is the plan.
Don't do it by chance, don't procrastinate, you know, don't
put off tomorrow. All right, what can be done today?
Sounds kind of corny, but that's what I always tell people.
If you're here to get things done, we're going to
do it. But if you want to sit here and
play tittling links and we're going to have verbal ping pong,
(44:12):
then you get the wrong guy. So again, we're gonna
have to break here. In a little bit. I'm goin
to highlight we offer a compliment our consultation in Syracuse.
We never do business with people on the first appointment.
It's a three appointment process. We meet with you, we
have a chat. The second appointment we come back with
ideas and suggestions. We kick you out the door and
(44:35):
we tell you to go home and think about it,
go talk to somebody else. Third appointment. If you call us,
we know we're going to hit the rubber to the road,
and we motivate and we get it done. Get her
done right, get her done. So if you want to
come in for a consultation, it's pretty easy. You doal
my toll free number eight eight eight five eight zero
(44:55):
one nine one nine. That's eight eight eight five eight
zero one nine one nine. Just say I listen to
Dave on the radio, I want to come in and
have a consultation. Now, I can't guarantee it's going to
be me every time, but I got a great team Nicholas,
Chris McCarthy and of course my son Christopher William And
we're not there to sell you. We're there to advise
(45:17):
you and educate you, and if you feel comfortable then
we basically put the plan in place. But as always,
hopefully enjoy today's program. Hopefully you find it informative. If
we can be of assistance, it would be a pleasure
and an honor. And until next week, hopefully I'll be
here if the creek don't rise, and you have a
(45:41):
great week, and we'll see you next week for another
retirement planning show.
All right, Syracuse, Good afternoons, good afternoon, good afternoon, on
a beautiful Saturday. Hopefully everybody's enjoying the day. It's gonna
be a great day. I'm actually broadcasting from my studio
at my home in Lake George, New York, looking at
(00:30):
the lake, looking at the beauty. Saratoga is popping today.
All the horses are racing, the big rais, the travers.
I don't know if you're out on your boat right around,
take care of the yard. Maybe you're working well. We're
going to talk about a topic today that is top
of mind for a lot of people, especially with what's happening,
(00:52):
and I think this might be one of the most
important conversations that I'm going to have with you, the
listeners of WSYR. I'm going to give out the telephone
number if you want to participate, because folks, this is
talk radio. Okay, that means that I talk you call in.
(01:15):
Hopefully I can answer your question. If I can't, that's fine,
I'll let you know and I'll get back to you,
or I'll bring it up the next week. As far
as it but I've been doing this now radio for
twenty five years. I've been in the business for forty
three years and if the Retirement Planning Group, what we
try to do is educate you and inform you on
all the obstacles that you will face during your pre
(01:38):
and post retirement years. But if you have a question,
it's pretty simple. Three one five four to two one
ninety seven ninety seven. Three one five four to two
one ninety seven ninety seven. That's three one five four
to two one wsy R and a very competent engineer.
We'll take your message and forward it to me and
(02:00):
I'll bring you up live on the radio. So if
you want to be a radio star, today's your day
to do it. Eighty five trillion dollars of wealth is
starting to transfer, folks. I've talked about this now for
about a year, and as I said, over the next
two to three decades, you're going to witness one of
(02:22):
the greatest wealth transfers in the history of mankind. It's
estimated somewhere between eighty five and ninety trillion dollars is
expected to pass from the Baby Boom generation to Gen
X and the millennial just in the United States alone,
(02:45):
just here in the good old USA. And this is
an unprecedented, unprecedented financial shift, and it's going to reshape
how individual rules. The boomers children are going to approach
their own retirement planning because of the inheritance that they
(03:08):
will receive in the financial legacy that will pass on
those We're all quite well aware we're living longer lives.
I know the numbers don't read that out when you
look at the statistics, but I can tell you that's
somebody that's been sitting in the seat for forty three years.
We got a lot of clients that are in their
eighties and nineties and you would never know. Our oldest
(03:31):
client has passed away at one hundred and two. He
skied in the Adirondiccks until he was ninety nine. GE Executive.
So as people live longer lives and most families are
becoming a little bit more financially interconnected, as they start
(03:54):
preparing and talking about this massive wealth transition, it is essential.
I'm going to say that a lot. It is essential
for those individuals that are passing on assets, but for
those who will inherit them to have conversations to effectively
(04:19):
understand what is happening. It also means positioning your wealth
in a way that aligns with your own personal values,
minimizing tax liabilities and ensuring a smooth, tax efficient succession
to the next generation. So the Boomers, my generation, for
(04:48):
all those individuals that were born between nineteen forty six
and nineteen sixty four, turn up your radio, pull off
to the side, turn the lawnmower off, tell the kids
to stop jumping in the pool, because you got to
listen to this. Our generation collectively holds more than half
(05:18):
more than half of all the US household wealth, the Boomers,
So of the eighty five trillion dollar wealth transfer, much
of this is tied up in real estate, investment portfolios,
(05:41):
family businesses, retirement accounts, and as this generation enters into
what we call a little bit more advance retirement or
passes away, these assets will eventually transfer to our kids
and our grandkids and our charities. So eighty five trillion
(06:10):
dollars is out there, about seventy three trillion is going
directly to the errors, hopefully a step up and basis,
and they estimate somewhere around twelve the thirteen trillion we'll
go to charities. So it's critical for both the givers
and the recipients planning is essential to preserve this wealth.
(06:35):
Here are that, folks, Planning is essential to preserve this wealth.
If I had a statistic, if I did a calculation
for every person that came into the retirement planning group
and sat down with me and asked me this question,
(07:00):
I would probably say that seventy percent of the time
I always give the same answer, maybe even higher than that.
What do we need to do in order to put
ourselves in a better place? What do we need to do? Dave?
We feel like we're kind of, you know, just moving
(07:21):
through here and we really don't know what's going on.
Guess what, folks, what's it called? You need a plan?
You need a plan? You know, you got all these
screaming monkeys that are out there all the time. They're
doing great managing money, and they're stellar returns and you
(07:42):
know they do this, they do that, and blah blah blah.
But that's great. I applaud them. I'm glad that you're
such a hero as far as managing money. But what
good is ROI when most of it is going to
go bye bye? See a leader alligator, because it's going
to go away in taxes right, Look at that big ira, Well,
that's great, it's not yours. What do you mean it's
(08:04):
not mine? Well, what do you mean, Well, there's a
mortgage on that. There's a mortgage on it. What the
hell's a mortgage on my IRA? Well, the mortgage on
ther IRA is that you ever heard of? Uncle Sam? Well,
he's going to take some of it. And then depending
on your state, right, they're going to take some of it.
And if you know, depending on your state, is there
a state tax mirror federal, they're going to take some
(08:25):
of it. So you have a mortgage on that IRA
that's not your IRA, that your kids, in the government
and whoever else might be around that wants to take
a little clip of it when it's coming out the door.
And that's even before I talk about long term care planning.
That's a topic to itself. What's happening in New York
(08:47):
State when they say iras are protected from a Medicaid
spend down, No, that's not true. That's not true because
now the counties are making you pay on these distributions
based on life expectancy non I periodic payments or uniform lifetimetable.
So you've lived a long life, you got Alzheimer's We
(09:09):
just had a woman empty it out her IRA and
she had long term care insurance. It is essential, folks,
that you know what you're doing, dot in your eyes
and crushing your tea's Because if you're not dotting your
eyes and crushing your te's, this significant amount of money
is gonna go puff. It's gonna go bye bye. Because
(09:32):
you were really good at what I was great at
this procrastination. I was one of the best in the industry.
My wife would come home to me and she would
say to me, you know what, you're so full of it.
That's what the hell you mean. She goes, you go
on the radio all the time, and we don't have
our plan. This is about five six years ago. It's
(09:54):
almost like she kicked me in the head. So about
five or six years ago we put our plan in place.
That's what you need to do to put your plan
in place. It gives you freedom. It gives you confidence
that everything that you've worked so hard for, everything that
you've worked so hard for in your lifetime, allows you
(10:16):
to transfer it to your loved ones the most tax
efficient way. A comprehensive estate plan not only includes wills.
I'm not a big believer in wills, your trust, your
power of attorneys, your healthcare proxies, to ensure that the
(10:36):
assets that you've busted your hump for clear all the
legal hurdles and all your friends with the state and
the federal government and taxes and a state minimization is
not accomplished. You've worked hard for that money. Why do
you need a partner that's going to share in it?
(10:58):
And you can do it by having but say it loud.
Roll down your window in your car. Let's hear you.
I can hear you. You need a plan. You need
a plan. So we're gonna take our first break. I'm
Dave Kopek. We have open lines if you'd like to participate.
This is Talk Radio three one five four two, one
ninety seven ninety seven. We'll be right back. F M.
(11:26):
All right, we are back. Glad to be here. I
just had a good friend of mine to just text
me on my phone. Who's out on skinny Atlas Lake.
He's a new client of ours. He says, you sound great.
I can't wait to see you again. But we're gonna
(11:48):
head out on the boat and we're gonna have a
great day. I can't wait to see you too. Bud,
you and your beautiful life and family. You know, We've
got new offices. They're going to be ready in a
very short period of time. They were supposed to be
ready September first, but I made some modifications and adjustments.
(12:11):
But we're going to have our brand new offices, which
are located at six seven zero zero kirk Phil Road,
Suite one A. We're going to have pull in the
first two spots are going to be retirement Planning group.
And we got beautiful offices and everything's being modernized in
the bathrooms that are being redone. We're excited. We're excited.
(12:37):
If you listen to the show, you know I'm a
big Syracuse fan, love Syracuse sports. I played high school
and college basketball. I coached for a while when my
kids were going to CBA Christian Brothers Academy. So I
love love sports. I love I think it's great for
our children, that competitive spirit, and I think it kind
(13:00):
of followed me through and what I do now into
the financial services indudry story. So be more announcements. We'll
have a little party maybe for some of our individuals
or clients, will do something like a grand opening. It's
six seven zero zero Kirkville Road, and we can't wait
to get there. I don't think we're going to make
(13:21):
it by September first, but probably in the middle of September.
We're talking about problematic money. But again, if you have
any questions or comments, you don't have to text me.
You can actually go live on the radio three one
five four to two one ninety seven ninety seven. Three
one five four to two one ninety seven ninety seven.
(13:41):
Even if it's off topic, that's okay, it's Saturday, it's
no big deal. Well, we're talking about this wealth transfer
and the problematic money that's out there. I raise trillions
of dollars, never a step up a basis. Money is
always taxed as ordinary income. U how you leave it.
Sometimes times you know, it can be gobbled up by
(14:02):
a divorce, a bad marriage, the pol boy people, son
of laws and daughter in laws. So you've got to
make sure that you're dot in your eyes and cross
your teas. Trust. Trust, let's talk about trust. Trust in particular,
offer a lot of control over how and when your
loved ones receive assets. So whether it's a revocable or
(14:24):
an irrevocable trust high net worth. I don't even think
it's high net worth individuals anymore. Most individuals I think
that have created wealth should consider utilizing trust in their lifetime,
not only in order to simplify settling the estate. I
always say this, if we do our job, got the
(14:46):
retirement planning group, and you build out a plan, and
you listen to the attorneys that you're working with, you
should settle your estate in seventy two hours. That's seventy
two months. By titling assets, dotting your eyes and crossing
your t's, you can accomplish a lot a lot, So
(15:10):
make sure make sure you understand not only how you
title assets, the advantages of trust, revocable versus irrevocable, generational trusts,
generation skipping trust, a B trust. There's a lot of
different types of trust, folks. But with the lifetime estate
(15:30):
and gift tax exemption currently at thirteen point six one
million per individual, a lot of affluent people right now
are leveraging this window to gift assets to their errors
before any future reductions. I travel all over the country.
We've got clients in twenty eight states. I was just
(15:51):
in Ocali, where I've got a very good client that
owns a horse farm down there, and we're just discussing
this as far as how we're going to eat and
basically turn on some of these assets that he has
and basically retitle them into the trust that both him
and his wife have. So I can't overemphasize this enough too.
(16:13):
Don't think you can do this by yourself, because you can't.
I'm not not patting myself on the back telling you
how great I am, but I am great. But I
can tell you one thing for sure. All right, you
need to find a financial team, whether it's the retirement
planning group, whether it's someone else in the Syracuse region.
(16:36):
You know, our iHeart Radio travels throughout the country, so
people that are listening to the show in the Syracuse
region right now might be listening in Texas, Arizona, Florida,
whatever it may be, because they can tune in on
the iHeartRadio app. So working with a financial team allows
(17:00):
you to, I think, not only design a tax efficient strategy,
tax preference strategy for your assets, but it also allows
you to basically understand why a Wroth conversion makes sense,
Why spending money down and putting it into a irrevocable
(17:20):
life insurance trust makes sense, why doing charitable donation makes
truck makes sense during your lifetime donor advise funds. How
you manage required minimum distribution? Why a q LAC might
(17:42):
be something for you to consider as far as reducing
rm ds, you know, receiving a significant inherence. It can
be a challenge and it can be a blessing, right.
Sometimes people freak out when they see the type of
(18:05):
money that mom and Dad are leaving to them. Right,
but without proper financial planning or guidance, it's probably a
pretty good chance, folks, that maybe some of the money
gets squandered away that you took decades to build. So
(18:29):
this goes back to the word that I keep on
saying to you over and overgoing over and over and
again and over and over again and again and again
and over again. Planning is crucial for recipients who are
going to receive inherited wealth. But I'm also a big
believer that I want Mom and Dad to enjoy themselves
and do all the wonderful things in their lifetime and
(18:51):
stop worrying about the damn money and go on the
trips and the vacations. Because I'm starting to do it myself.
I'm going to Europe in September, I'm going to Iceland, Germany,
and I'm going to Poland. And I can't wait to
get on the plane to go because I made a
promise to my wife when she retired from teaching that
I was going to spend more time with her and
(19:13):
do see some of the things. But I will never
retire because she would kill me. There's no way that
I could hang around the house for an extended period
of time because I'm a tight triple A. I'm not
a B or a C or a D. You know.
I get up early every day, four four thirty, and
I'm up late in the night, and I sleep for
(19:33):
four or five hours, and then boom, I'm back up
and doing it again. And that's the other thing I
always like talking about. Planning is crucial, but also plan
what you're going to do when you retire. You should
plan that as much as you plan anything else, because
(19:56):
the last thing you want to do is walk out
the door and say, oh Jesus, tell he am I
going to do now? Now? Some people embrace retirement, you know,
here over and over again. I don't know how I
ever worked. I got I'm so busy. I don't know
what to do sometimes because I'm so busy. I don't
know how I got to work. I don't know how
how I worked because I'm so busy. Now, well, that's
(20:18):
what you want to have in retirement. Pickoleball, basketball, golfing,
you know, going to the villages. You go to the villages.
You got everything from A to Z down there that
you could possibly imagine, the things to do. I've got
a lot of clients in Florida that live in the
villages now, and most of them absolutely love it. But
(20:40):
as I said, eventually we becomes either a he or
a shape. And then when that doesn't happen, and the
wheels start falling off the bus and there's health issues
and you're limited as far as travel, maybe the ability
(21:02):
for your cognitive that's when you better have a plan
in place, because that's when things can crater really really quickly.
If you look at nursing, home, assisted living, at any
of these facilities where seniors go, and what the cost is,
(21:24):
you'll blow your eyeballs out of your head as far
as what the cost is for some of these facilities.
So it is imperative not only to have a plan
for your money when you're happy and healthy and bouncing around,
but also have a plan for your money. When you're
not so happy, not so healthy, and you're not bouncing
around what I call not the go go years or
(21:46):
the slogo years. I call it the no no go,
the no go years. When you're no going, you better
have a plan because sometimes it's sudden. Sometimes the impact
that it can have on your retirement assets, your estate
can be cataclysmic. So we talk about iras IRA distributions.
(22:16):
Real estate will always receive a step up in basis,
right as long as you don't gift it. Do not
gift the don't gift real estate to your kids, folks.
You want to have a step up in basis. So
the day to death is what they have is their
cost basis. And as I said, you know, I've got
(22:37):
a wonderful, wonderful couple that we just became clients in Syracuse.
He's a very successful businessman and his wife and they're ready,
they're ready for retirement. Then one of the things that
they're having trouble with because they grew up not so wealthy.
(22:59):
You know, they beasically created everything like a lot of
our clients that they've had in their lifetime they're now
trying to figure out, you know what, I feel kind
of uncomfortable. How am I going to spend all this money? Well,
you're going to spend it. You're going to spend it.
We're going to tell you what you can spend and
what you can't spend. But my son just met with
(23:21):
a couple out there the other day, my son, Christopher,
who works for me, who is a Siana graduate that
has a degree in financial planning. He said, Dad, this couple,
they really are having a hard time spending money. And
I said to my son, who's been in the business
now for five years, and I said, I've been you know,
like I said, I've been doing it for forty three Chris,
you can't change the stripes of a tiger. If they're
(23:46):
using the same ziplock bag ten times over, they're washing
it out, whether they got ten dollars or ten million.
Mama Bear is going to keep on washing out those
zip block bags because that's bana And you're not going
to change my mind. And if Dad is going around
to all of the drive sales, he's not gonna stop
(24:08):
because he's gonna get a deal. He gets a kick
out of getting a deal. No matter what the checkbook
says or what's the you know in the financial statements.
So wealth has to align with your values and also
align with your children's values as long as they understand
the train that's coming down the track. Right. I got
(24:30):
to take a break for the news. When we came back,
we'll discuss this and great, but folks, I'm live call
in three, one, five, four ninety seven. I'll be right back.
All right, good afternoon, We're back. Decopik your host. This
(24:55):
is the retirement planning show. You're here on the weekends.
Fully educate you on the different options that are available
to managing assets, managing your estate, wealth transfer. We really
focus in on four particular areas investment management as a protection,
(25:15):
legacy planning, and number four, which is a big one
for US retirement income distribution. You need a plan. You
need a plan. You need to know what is going
to be there when there is turbulence in the markets.
And after forty three years of doing this, believe me,
(25:36):
there will be turbulence in the future as there has
been in the past, what we call black Swan events.
So today I'm live. I'm staring at Lake George in
my studio at my house. If you want to call in,
it's three one five four to seven ninety seven. Three
one five four to seven ninety seven. Very jealous of
(25:58):
my friend text menion cities out on his boat on
skinny Aatlys. But I will be on on my boat
Chartie too. Three one five four seven. That's three one
five four two one w s y R. If it's
off topic, that's fine. You like phone calls because I
think it makes it a little bit more interesting for
(26:18):
the listener instead of me babbling. This is talk radio anyway, right,
So we're talking about the greatest wealth transfer. We're talking
about I raise required minimum distributions, uniform, lifetimetable. You can
go through the whole laundry list rm ds. You know,
you know all the things that you're going to need
to do in order to facilitate distribution as you age
(26:42):
off of these accounts. Now, if you were smart and
you took that ability to do the Wroth conversion, Remember
we had the ability to take the Wroth conversion and
pay it out over a period of time. Excuse me
fighting a cold a little bit, folks. You know those
(27:03):
four own K programs. It's not uncommon to see individuals
that have hundreds of thousands of dollars in broth for
them ks now in wroth iras, and those are great assets.
Those are un complicated assets because you're not forced to
liquidate them as you age. It's tax free growth, it's
(27:23):
tax free for your spouse, and it's tax free for
the kids when they receive him. The problem that we're
talking about is one that's probably least talked about, and
everybody keeps on looking at it because it's getting bigger
and bigger and bigger, and you've got a bigger, bigger,
bigger smile on your face. Is IRA assets. What Ed
Slot talks about is the retirement time bomb. Ed Slot
(27:47):
is a CPA that is known for his expertise on
IRA distribution planning. We sponsored him for a PBS show,
The Retirement Planning Group, and he's a good friend of mine,
and I think he does a wonderful job educating people.
But what I think is probably one of the most
overlooked part of your overall estate plan. Now, if you're driving,
(28:10):
don't do this, But if you're not driving, close your
eyes and think about your own personal wealth. Then think
about how much do you have pre tax versus after tax,
And how much do you have in home equity Because
a lot of people that are coming into the retirement
(28:31):
planning group, seventy five to eighty percent of their wealth
is tied up in probably two assets, equity in your
home and your four oh one K program. Now, how
do you unwind some of that four oh one k
in order to get some tax preference. Well, if you're
in your forties and fifties, you should be looking at
(28:53):
funding WROTH four oh one K, and if you're eligible,
doing the ROTH I ring, and if you're eligible, doing
a high deductible plan for your your health insurance, and
funding an HSA health savings account. Because, as I said earlier,
(29:14):
Fidelity just came out with their number. A healthy sixty
five year old couple right now each will need one
hundred and seventy two five hundred dollars in their lifetime
in order for him to be able to afford out
of pocket expenses out of pocket expenses. All right, there's
(29:38):
a gentleman that did not want to be on the air,
but wants you to answer what happens when you receive
a significant amount of inheritance. Well, that's a very generic question. Jack,
But I'll try to answer it in the very basic terms.
First of all, God bless thank you that you did
(29:59):
receive that from whoever it was a family member or
a loved one. Hopefully a lot.
Speaker 2 (30:04):
Of it is received in a step up and basis,
meaning that you received it tax free, and hopefully a
lot of it is not IRA assets, because if it's
IRA assets, you get ten years if you are not
the spouse to get the money out the door, and
(30:26):
it's all taxed as ordinary income.
Speaker 1 (30:31):
And that's what's happening when we talk about this eighty
five trillion dollars of wealth transfer. I'll give you an
example and maybe this will resonate with you, Jack. I
talked about it earlier today, and I'm not too sure
if it was on this show or another one that
I do, but I talked about a husband and wife
that are clients of ours, have been clients of ours
(30:52):
for years. He was a teacher at one of the
major school districts in the Capital District region and his
wife was a principal. Both successful. Both have inherited a
significant amount of money from her sister just recently. Her
sister was a nurse at a high power job at
(31:13):
the hospital, made a lot of money loaded up in
her four oh and K program and iras blah blah blah,
and she had well over seven figures inside these assets.
She did not have family children, and she left the
money to her sister, and she had no contingent beneficiaries,
(31:33):
and now her sister has the seven figure ira that
she doesn't necessarily need. She's happy that her sister thought
of her and she left her that kind of wealth,
but now that large wealth transfer is causing a lot
of complications for them as far as tax liability, additional tax,
(31:57):
and their medicare premiums and ultimately Lee. Her sister had
intentions of where she wanted some of that money to go,
and now they have to pay the tax on it
because when it comes out the door, it's all taxes
ordinary income. And now she wants to give some of
that money where it would have been so much easier,
(32:20):
so much easier that if her sister had come and
sat down with us at the retirement planning group. The
one thing she lacked on her beneficiary form was a
contingent beneficiary. She had a primary, she didn't have contingent.
(32:40):
So her sister, right who was the primary beneficiary could
have disclaimed some of that money and got it to
the nieces and nephew that she wants the money to
go to. So hopefully in your situation, you know that
when you receive a significant amount of money from inheritance,
(33:02):
there is I guess a thought process on your part.
You've been blessed, where do you want the money to
go now? And how do you want to protect it?
And is it a life changing event for you and
your spouse and is it a life changing event for
your family? Because that type of planning can really go
(33:27):
on for generation. You could have generational trust that could
basically be Santa Claus every year. As far as distributions,
we have one family that is extremely wealthy and the children,
the children every year from their grandfather, they get a
check for fifty thousand dollars to basically do what they
(33:51):
want to do with the fifty thousand dollars for the
quality of life. He just didn't lay this big egg
on him that here, we're going to leave these assets
for you. So I would say, come on in. We
got a brand new office that we're opening up at
sixty seven hundred Kirkville Road. We're excited to be in Syracuse.
We've been there now for over a year. We're finally
(34:12):
getting our office finished. Give me a call eighty eight
five eight zero one nine one nine eight eight eight
five eight zero one nine one nine and tell them
that you listen to the show. You want to come
in for an appointment, and I'll sit down with you.
Say that you want to meet with Dave, and I'll
be more than happy. I'm out in Syracuse now probably
at least three or four times a month, at a minimum, myself,
(34:33):
my staff is out there quite a bit, so we're
going to take our last break. I like questions, folks.
It always makes it more interesting. Three one five four
to two one ninety seven ninety seven. Three one five
four to two one ninety seven ninety seven. If you
have a question, believe me, there's a lot of other
people out there. You don't have to go on the line.
We can do exactly what we just did. You asked
(34:54):
the question, my very competent engineer will send it to
me and I will try to answer it to the
best my ability. We'll be right back. All right, I'm
tapping my foot here. Well, hopefully you're enjoy the day,
(35:19):
because it's beautiful where I am, and hopefully you're enjoying
your day. Use I know that there's a lot of
wonderful things to do there. I know if I was
out there and the on Skinny Atlas doing a little
bit of boating. What a beautiful, beautiful, beautiful area that is.
My wife and I, my son and his girlfriend had
(35:39):
the opportunity to go there, and it is absolutely gorgeous
and we love it and we'll be back good food.
I met some friends, some clients, some new clients out
there and had a great day. I'm a terrible golfer, folks,
so don't invite me to play golf. It's just I
(36:01):
don't know well golf. And I have a golf league
that we are involved in. I sponsor it. I can't
make it as much as i'd like to because I
travel so much. But I went the other night and
there was three foursomes backed up a whole number three
(36:22):
and I stood there for like fifteen twenty minutes, and
I said, this is the reason why I don't play
golf a lot. You know. It took us over three
hours and played nine holes. That's not golf. That is
anxiety and stress for me, not fun. So again I'll
go up the number three, one, five, four ninety seven.
This is talk Radio. I am the president of the
Retirement Planning Group. Been doing it for forty three years.
(36:44):
So I've seen a lot of things that could possibly
cross my desk. Good markets, bad markets, horrific markets, horrific things.
I used to work for Morgan Stanley, and you know,
I was in the towers all the time. By the
grace of God, I wasn't there the day that the
towers were hit. So you know, we're fortunate a lot
(37:05):
of ways to still be here. Some of my friends,
some of my buddasis that stayed the Vista Hotel that
was between the towers all the time. So you know,
God has a way of kind of waking you up
for what's important in your life. And I know one
thing that is definitely important to me families. Families. You know,
(37:28):
our clients become family and we get very close to them,
and we try to make sure that you do not
make bad decisions. We want you to avoid bad decisions.
So when I say that it will be very very
important for you, okay, to have conversations with your families.
(37:55):
I'm going to try to read this. I think I
have another question here, but I want to make sure
will divinend paying save money saving money versus I don't
understand that we'll diven and paying save money versus four
oh and kuh. Let me try to answer that if
(38:16):
he means buying dividend stocks rather than investing in a
four oh and K. I think our mantra has always
been this. Okay, let's get into the four one ks
a little bitter. Our mantra has always been this. Take
the match from the employer in your four oh and k,
then sit down with your financial team and do some calculations,
(38:39):
because you want to put after tax dollars into your
four oh and k WROTH and if you're eligible, you
want to fund your wroth IRA. And if you're eligible
that you have a high deductible plan, you want to
load up that HSA account. I can't overemphasize this enough.
Listen to me, folks, please listen to this. Tax free
(39:01):
is good good. Tax free is good. Dividends outside of
qualified plans are good because of the tax preference that
you get. Right, So, the more tax preference money that
(39:21):
you can have in your retirement years, and that Nott's
being forced to be liquidated. The better off you're going
to be because someone else is not controlling your cash flow. Right.
RMD means exactly what it says, required minimum distributions, not
(39:44):
hopefully distributions required means you got to take a certain
amount of money out, whether you want to or not.
And guess what, and guess what if you don't take
it out. There's a big old penalty. Right. They kick
you in the teeth for taxes. It's like fifty percent
of what you didn't take out is tax on top
of what you didn't take out is taxes ordinary income too.
(40:07):
So the thing is is that you got this ring
around your neck that's called RMD, and they yank it
every year and they basically say, Dave, give me my
money boom, and I say, no, I don't want to,
but I don't want to pay that tax. So here
it comes. The money's coming out. It's not a fun spot.
(40:28):
And I tease you a little bit about it, because
we like to have fun at the Retirementploying Group. But
pre tax money is complicated money. Never a step up
in basis, as I said, always taxes ordinary income. Trillions
of dollars are being sent to our kids. You're not
sending them a legacy, You're sending them a tax liability.
Doesn't that make you feel real warm and fuzzy? So
(40:50):
what I always say, our team can help you navigate
these estate in tax laws now while you're alive. We
can help you create trus us in legal documents that
will make it more beneficial for your kids to do.
What get the money, protect the money, and ultimately the
money is going to be sent to where you want
it to go, not the evil son in law doing
(41:13):
in law, the pool boy and all the other people
that you don't want it to go to. Right, And
we educate you on financial management, We educate you on
acid protection, We educate you a little bit on dividend portfolios. Right,
So bottom line gets down to the younger generations. Here's
(41:40):
another question, Dale, not on the air either planning on
coming to see you, wants to do the right thing
when saving to provide for some God bless Dale. We
can definitely put you in that position. Brother. You know,
we got a motto at the retirement planning group and
it's been something that has always been with me since
I did this, because when I got involved in this.
I lost my day a very young and it was
(42:02):
not fun growing up without a father. And I always
said to myself when I got into the business, I
was always going to do the right thing because I
never wanted anybody to go through what I went through
as a young child, and seeing my mom work as
hard as she did, and to me going to work,
you know, at thirteen years of age. Not because I
necessarily wanted to go to work at thirteen, but if
I wanted food on the table and I wanted a
(42:22):
roof over her head, I had to go to work.
So we always do adt RT, even if it hurts us,
always do the right thing. So you might not like
what I say to you. Sometimes people think I'm too aggressive,
I'm two in your face. But you know, after doing
(42:42):
this for forty three years, I think I got a
pretty good idea of how wealth is preserved, protected and purposefully,
purposefully passed on. How do you like that, preserve protected
and purposely passed on? Because the last thing I want
to do is all through the pearly gates. And the
man's gonna say to me, hmm, you didn't do you
(43:05):
say you're gonna do digit, and I'll say yes I did, sir,
Yes I did. Jesus. So you know, when you get
to be my age, you realize that this is a
fast trip. And as we sit here today, if you've
(43:27):
pulled off the road to listen to my show because
I told you to stop, close your eyes, well open
your eyes. Now you know we're already at August twenty third, folks,
we're gonna blink our eyes. We're in September. We're gonna
blink our eyes. And Santa Claus's coming down the chimney.
The worst thing you can do, I'll tell Dale, who
didn't come on the air but he wants to plan
(43:49):
to do something right for his son, is the plan.
Don't do it by chance, don't procrastinate, you know, don't
put off tomorrow. All right, what can be done today?
Sounds kind of corny, but that's what I always tell people.
If you're here to get things done, we're going to
do it. But if you want to sit here and
play tittling links and we're going to have verbal ping pong,
(44:12):
then you get the wrong guy. So again, we're gonna
have to break here. In a little bit. I'm goin
to highlight we offer a compliment our consultation in Syracuse.
We never do business with people on the first appointment.
It's a three appointment process. We meet with you, we
have a chat. The second appointment we come back with
ideas and suggestions. We kick you out the door and
(44:35):
we tell you to go home and think about it,
go talk to somebody else. Third appointment. If you call us,
we know we're going to hit the rubber to the road,
and we motivate and we get it done. Get her
done right, get her done. So if you want to
come in for a consultation, it's pretty easy. You doal
my toll free number eight eight eight five eight zero
(44:55):
one nine one nine. That's eight eight eight five eight
zero one nine one nine. Just say I listen to
Dave on the radio, I want to come in and
have a consultation. Now, I can't guarantee it's going to
be me every time, but I got a great team Nicholas,
Chris McCarthy and of course my son Christopher William And
we're not there to sell you. We're there to advise
(45:17):
you and educate you, and if you feel comfortable then
we basically put the plan in place. But as always,
hopefully enjoy today's program. Hopefully you find it informative. If
we can be of assistance, it would be a pleasure
and an honor. And until next week, hopefully I'll be
here if the creek don't rise, and you have a
(45:41):
great week, and we'll see you next week for another
retirement planning show.
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