Retirement Planning Show

March 16th, 2024

Episode Transcript

(00:00):
Live from the wgy iHeart Studios.Welcome to the Retirement Planning Show with your
host Dave Kopek from the Retirement PlanningGroup. Every week, Dave and his
team discussed the ways they can helppeople make informed decisions about a wide array
of retirement planning information that can supportyou and developing a more certain financial future

(00:20):
for you and your family. Nowit's time for Dave Copec WGY's retirement Planning
specialist. Her day starts with thecoffee, ends with the wanticks forever getting

(00:44):
ready, so she's never on timefor anything. When she gets that coon,
get me looking her, it kindof scares me. And good morning.
She dress me steak music. Yeah, just what you selected? This

(01:04):
was uh, Zach said, itwas my day. You're a country boy.
I am a country huge. Ithought I loved it. Drove down
here from good old Scatico, NewYork this morning, No kidding, Melrose,
actually specific but how long does thattake you to get here? It
was about time to leave six thirtysix thirty five, probably twenty minutes,

(01:26):
Oh not bad, about twenty minutesto get down here. And I got
the Ford f one fifty. Idon't have the I don't have the Lamborghini
like you yet. But uh,but now she she gets me here,
and uh, I like my truck. I use it occasionally. I think
I have to use it this weekend, like we need a new washer over
at the house, so you'll seeme at Low's or our own depot potentially.

(01:51):
I Uh, I tried getting atruck. My wife wouldn't have it,
but I'm not giving up. Ithink it's a totally useful vehicle,
especially when you go on road trips. You don't have to be a logistical
scientist to figure out how to getthe luggage in your car. You just
throw it in the back and callit today. Just throw it in the
in the tailgate. I love it, and you can bring it tonight's football

(02:15):
games. Christmas tree. You justthrow it right in the Christmas tree back
there. You don't have to scratchyour roof. Bodies, bodies right right.
All the clients that make us aggravated, watch out. You don't want
to end up in the in thetailgate. That will be uh, that'll
be your final destination. But anyways, good morning, good morning everybody.

(02:38):
This is the Retirement Planning Show.My name is Nicholas Dumas, financial planner
with the Retirement Planning Group here withDrew Ilo this morning from Fairway Independent Mortgage.
Yes, sir, and Drew's herewith me. So if you have
any questions, the call in numbersone eight hundred talk WGI twenty eight hundred,

(03:00):
eight two five fifty nine what isit? What is it? Zach
fifty nine fifty four, twenty hundredtalk WGY. I always get messed up
with that, but you can giveus a calls live, so it's a
live show. And then also ifyou have any questions that you don't want
to be on the air, youcan call us at our office. Our

(03:21):
office numbers five, eight, five, eight zero, one nine, one
nine. Again, we're here everyweekend, and this weekend I've got Drew
with me, So got quite abit to talk about. Had a lot
of great appointments this week with folksfrom WGY. So it's nice meeting with
everybody and get to sit down kindof hear their situation, what they're going

(03:44):
through, what their future plans are. There's a lot of people out there
that are entering those red zone years, maybe three to five years out from
retirement. You don't have a planso you want to sit down with somebody
and start mapping out a game planhere for if you have pre tax dollars
and iras for rowing k's deferred compplans, it's a potential tax liability.

(04:04):
So we want to start talking aboutspreading that tax liability out during your retirement
years, incorporating social Security if youhave pension dollars, and also a future
legacy for the next generation that's goingto be tax efficient in the in the
transfer of wealth process. So Drew, what's going on over there? All

(04:24):
right? Uh, lot's going onactually that that the housing market. Just
give you an update. Hopefully I'llhave a realtor that owns his own real
estate company. We'll call in kindof give us the pulse of what's happening
in real estate. But we had, as I'm sure you know, and
you follow quite closely, two majorinflation reports that came out last week.

(04:48):
And you think, you know itwas a mortgage guy look at inflation.
But inflation obviously is one of thekey drivers right now in terms of interest
rate decisions and what the Fed's goingto do. And on Tuesday, I
believe it was we had the allimportant CPI index that came out Consumer Price
Index, and that was okay,wasn't bad. Rates did okay. But

(05:14):
then Thursday we had the PPI,the Producer Price Index, and that was
double what they had expected. Sothat was a good kick in the teeth
in terms of a mortgage guy rates. Everything that we've gained over the last
two weeks in terms of interest ratedecreases we lost in about twenty four to
forty eight hours. It's sad tosay. I mean, rates are still

(05:38):
pretty good, you know, backin October they're eight and a quarter.
Now they're down, you know,in the mid to high sixes. So
not not awful. But I wouldhave thought January, February March of this
year we'd have seen some really niceimprovement in terms of interest rates. And
just this inflation is real sticky.It's like stick them, you know,
you can't get it off your hand. Just doesn't go away. And obviously

(06:01):
energy costs don't help. Food costsaren't helping, and that's and that's where
we're stuck at the moment. Sheltercosts, obviously, we look at housing
outside the home and also just homeand rents, equivalent rents, all that
stuff that they look at that makesup that index just seems to be real
sticky. And I don't know ifyou've seen I think David I may have

(06:23):
talked about it before, but justauto insurance, home insurance, things like
that, they've they've gone up.I looked at my bill the other day,
first time in years probably, andI couldn't believe what I'm paying for
auto insurance and home insurance and howmuch that's increased just in the last say
two years. So all that stuffis a big component of inflation, and

(06:44):
we're all feeling it. I thinkthe Fed's got a tough job. They
want to get to their hypothetical twopercent, which isn't a law, by
the way, it's just some madeup number that the FED came up with
years ago. It's gonna be tough. But I think this week will be
interesting because the Federal Open Market Committeemembers all sit down. They did this
back in December. They sit downnext week. They're going to talk about

(07:08):
the state of the economy, inflation, their goals, the targets. They
do that plot map where they've youknow, you're no one puts their name
to it, but they put ona chart basically what they feel will happen
with interest rates interest rates cuts overthe next two three four years, so
that'll be interesting. But I stillsee a weakening economy. I still see

(07:30):
if you looked at the New YorkState Manufacturing Index last week, that was
a real stinker. I think itcame out yesterday. Actually they had a
negative point negative twenty point nine reading, and I think they were expecting a
negative two, so it was abig miss. So you're seeing slowing down
and manufacturing. The unemployment picture thatcame out a week ago was was weak.

(07:54):
I thought, you know, alot of a lot of the jobs
that I think we're seeing with alot of the job creations I think we're
seeing are people getting second and thirdjobs because the employees don't want to let
go of them, so they're actuallylimiting their hours. Instead of say thirty
eight or forty hours, the averagework weeks around thirty five or thirty six
hours, which is the equivalent toa loss of about two and a half

(08:15):
million jobs. But that's not obviouslyfactored in those employment numbers. So we're
starting to see signs of a slowingeconomy. We are definitely seeing a sign
of a slow in kind. Butthis inflation is just u It's sticky.
It's sticky, it's not going away. We've seen it for an extended period
of time now. I mean interestrates. Yeah, the Fed's been increasing

(08:37):
rates to kind of combat the inflation, and they're expecting a soft landing here,
which I think we sort of experienced. We got a good shot at
that, which was nice. Usuallythey just keep cranking until they break.
But they didn't announce the pause inthink January. And now we've been extended
with the pause, and I meanthey're forecasting potentially another three, four,

(08:58):
maybe five months without any rate changes, right potentially. I mean, who
knows what's going to happen at themeeting this week, but they're excited for
March and that's obviously no shot.And then now we're all focused on June.
I think is a potential first timethat they may cut We'll see,
yeah, I mean those meetings tendto have an effect on the market too.

(09:22):
I mean just the words that comeout of their mouths and what they
say tends to kind of shape wherethe market's heating. So we need to
make sure we're watching that and makesure that we keep a close eye on
those reports. So the CPI andthe PPI came out last week. The
CPI was showing a three point twoyear over year and then what was the

(09:43):
PPI people, I was like sixsomething or it was up point six,
and so I think they're expecting uppoint three. So it was a double
on the number. I don't knowthe year over year figure, but yeah,
it was, it was. Itwas a pretty good number. I
don't think anybody saw that coming.Yeah, And you know what what worries

(10:03):
me too, is the Fed's favoritegauge of inflation, the PC personal consumption
expenditure. For for whatever reason,that fixed basket of goods that they like
to look at. That's their favoritegauge apparently of inflation. A lot of
the the CPI and PPI components arein that PC. So I don't expect
the PC to be that great becauseyou have some components that were in these

(10:26):
two last reports are going to bepart of that next report. So I
again probably not we'll hear what theyhave to say this week, but probably
not going to see any cuts tilltill till probably June. I think there's
either an elk or caribou walking throughour parking lot at the moment, look

(10:50):
over your left shoulder, how totake a little the window. The shades
are unshaded on the windows. AndI just saw a four legs get pretty
large animal walking through the parking lot. Dree, What did you did you
eat on the way over here?Probably a deer, but not an alcore
carame, but probably a deer.It's just funny. I don't think they're

(11:11):
known to be in this area whereyou're where you're just sitting here talking,
You're watching these animals walk across yourparking lot. That's the that's the northeast
take. You're lucky it's not abear. Damn. I should stay away
from those microdoses. But but no, you're I mean, you're right.
Everyone's seeing it. I'm seeing itas well. In my mortgage payment.

(11:33):
If you have as scrow, yourASQ girl account might have went up over
the last year. My mortgage jumpedabout one hundred I think one hundred and
fifty bucks a month taxes, right, just due to taxes, tax increases.
Yeah, but also nothing like Floridaseeing Yeah, yeah, I mean
it's a it's a scary environment outthere. Everything's expensive. You see it

(11:54):
at the grocery store, you seeit at the gas pumps. You need
to You need to figure out aplan, especially if you're someone entering retirement
at this point or getting close toit. Start coming up with ways to
account for that. You can doaccount for inflation in your portfolio, depending
on what you need. As faras income, I mean, there are
guarantees out there. You can getfive percent in the money market. You

(12:18):
can get five percent in one yeartreasury bills right now. Even the ten
years stayed around four point two fourpoint three. Over the last few weeks
here it has been jumping around alittle bit. I don't know if you've
been watching that it helps. Doesthat help retirees with interest rates where they
are just because you can buy treasuriesand really safe investments, Yeah, you
can add some safety to the portfolio. Beginning at twenty twenty two, you

(12:41):
really couldn't do that. I mean, interest rates are at one two percent
corp on short term paper, soyou really couldn't have too much guarantees in
the portfolio. You had to lookat alternative investments or dividend producing stocks,
which might have really hurt a portfolioin twenty twenty two. You go to
these more risky type of investments toget income and then you have it down

(13:03):
here in the market as well.So it's about structuring the portfolio in a
way that makes sense with the currentenvironment. You're in, the current landscape
that you're in and interest rates,and we've seen a large shift. There's
a lot of money in cash rightnow. There's about six trillion dollars sitting
in money market funds out there,so there is a lot of I would

(13:26):
call it dry powder. I meanthat's something. If that money goes into
the market, I mean, youcould see an increase in a lot of
those stocks out there. But alsofolks are fine with leaving it in cash.
Right now. They're getting five percent. So who knows when interest rates
might come down later this year,maybe we see a shift and that does
spark the economy a little bit.But I mean I have to agree with

(13:48):
you, Drew. I mean,you're starting to see a slowdown in manufacturing.
I mean, that's the that's theheart of the economy or foundation that
the Luckily, the real estate market, I think, even with the elevated
interest rates, which is unbelievable tome, shows a resiliency right now of
real estate. Uh the buyers areout there. The buyers are out there,

(14:09):
and they're out there with with twofists and they're they're still pushing values
up over asking price. Still multipleoffers, so we're still seeing this supply
demand ratio a little out of balancewhere it's still ah, if you're a
seller, if you're a listing,you know, if you're if you're putting

(14:31):
your house on the market, you'rein the driver's seat at the moment,
you know. I saw a smallhouse Balsam Spa the other day, actually
yesterday, it was two twenty nineto nine, you know, ranch,
thousand square feet. Uh, there'sthere was eight couples outside trying to get
in to take a look at it. They just opened showings yesterday at nine
am and there's eight people. Soone of my agents got in there with

(14:54):
his family, locked the door behindhim. They were on the driveway.
He locked the door very high witheach other in the head locks. He
didn't want, you know, anybodyin there when they're in there, and
elderly couple and they're you know,going through the house and what have you.
One floor raised ranch in Balssa,Spat Saratoga County. Taxes obviously it's
a it's it's not a big house, but but you know, if you're

(15:16):
in your late seventies and you're havingmobility issues, that's the perfect house.
I think there's three bedroom, onebath kind of thing, so they could
probably throw in another bath. Buteight couples, that's the only the ones
that I knew about. I don'tknow what happened after that, So we'll
see. I'm curious to see whenthe offers come in how many are going
to come. And then if itstarts at two twenty nine to nine,

(15:39):
with the eventual purchase prices, Igotta believe it's probably gonna be like two
fifty. Yeah. So we're stillseeing that. There's a lot of a
lot of demand. I see itall the time too, people downsizing in
retirement. You know, they're they'restarting to figure out the house they want
to be in forever, and they'rethinking down the line twenty twenty five years.
You know. I've got one womanshe's looking at putting a ramp in
her house already, all right,and then uh yeah, I mean that

(16:02):
the one story is huge. Peopledon't want to go downstairs to do the
laundry, you know, so thiscouple physically can't you know, one has
a small stroke, the other onehas mobility issues, has a walker,
so literally two steps is a problemfor them. So that's what that's what
they're looking at, and it's eitherfinding a house like that or some sort

(16:22):
of assisted living. So but they'regetting rid of the big house that's five
hundred thousand, that's you know,split ranch, split home, and you
know they have the elevator up thesteps and things like that. So they're
they're out of there and then downsizing. But competition is not for the faint
of heart. I think. Ithink the buyers out there, if you're

(16:44):
listening, you're looking at buying ahouse, you got to get pre approved,
pre qualified, and then even abovethat, you got to get even
a commitment letter before you even finda house. And that's something that we
offer is is like if you cameto me, Nico and and said I
want to go buy a house inClifton Park for three hundred and fifty thousand,
Well you and about a million otherpeople want to do that too,

(17:04):
So you got to kind of raiseyour game and keep yourself above the competition,
and you want to show that you'reready, right, you want to
show that you're more than ready inthe sense that if you can come to
the table instead of a preapproval witha commitment letter. And in our commitment
letters we have language like, iffor some reason, mister seller, we

(17:26):
can't buy your house for financing purposes, we'll pay cash for your house,
or we'll give it. We'll giveyou ten thousand dollars, We'll give it
to the next you can go sellthe house to the next guy. So
we have this really strong language inthere, really solid bonifide commitment letters before
people even find a house that basicallytells a seller there's no issues with financing,

(17:47):
and all we need is title andappraisal to close, so quick closing.
So I just try to give myclients every advantage possible in this environment.
And it's good. It's a goodenvironment. It's hard because I think
people get this courage because I keepgetting beat out with offers. So you
just got to try to separate yourselffrom the crowd. And I don't I

(18:07):
don't think the I don't think thisthis will end. I gotta believe.
I think it's still going to continue, maybe for the next two three years.
Yeah, So it's still a seller'smarket. And Drew, how did
the people get a hold of youif they want to talk to you?
Yeah, the easiest way is Drew'sTeam dot com. That's my website,
personal website, going on Drew's Teamdot com. You see my email,

(18:30):
you see my cell phone. Callme seven days a week, easypasy.
Actually sometimes it's funny and neco.I find myself busier on a Saturday and
Sunday that I do say on aMonday, you know, because everybody's out
there. Today's supposed to be abeautiful day. Everyone's working during the week,
right, so then they on theweekend. Yesterday was was bizarre.

(18:51):
So I could tell you I've beendoing this now almost thirty years. I
started in January of ninety five,so twenty nine years. And I could
tell you without looking at a clockwhat time it is every day time,
because yesterday at three o'clock, fromthree o'clock on, I had seventeen phone

(19:12):
calls. And like to your point, people are working all day long.
Yeah, they're getting out of work. The construction workers, the state workers,
the school teachers. You know,we have a huge employment base here
with a lot of construction and stateworkers, and educators and what have you,
and h the phones kept ringing.I didn't leave the office last night

(19:32):
till eight pm on a Friday night. And it's that was abnormal, like
it happens every day, but notto that extent. So it was it
was great And I don't mind it. I think the busier I am,
the happier I am. You know, it keeps the stress off because you
like you like the action, youlike the busy. I think you should
look into that, Drew, what'sthat? I think you should look into

(19:53):
that. Yeah, exactly. Ithink they have a term for it's called
workaholic. And uh, I knowmy wife texted me last night at seven
forty five, are you coming home? It's almost bedtime? Leaving the leaving
the motel eight now or we're inWe're in our fifties, so bedtime comes
a lot, lot, a lotsooner than most. But yeah, it

(20:15):
was, Uh, it was alot of action and and uh it's good
to see the problem is you Icould preapprove twenty people a week, but
out of those twenty, maybe twoor three actually is lucky enough to get
an offer accepted? Yeah, AndI say lucky enough. Yeah, we've
been sending quite a few over toyou, and they all seem to come
back with smiles and ended up withthe houses that they want. So we

(20:38):
appreciate over here as well. ButZach, should we take a break here
or should we just run it?All? Right? So we got about
five minutes. We're gonna just goto the seven thirty. That is that
drool coming out of Zack's mouth?Was he sleeping on us? I don't
know what's going on over there.He's kind of eat a tissue. I
got excited when I saw you,Drew, I have that effect. I

(21:00):
think he stayed up last night watchingthe NCAA tournament. Oh is this the
so is this? I'm kind ofclueless on this stuff. So right now
is the play? No? No, it's the regional tournaments right, conference
champions Okay, so today there's alot of championship games. Last night yesterday
where there were semis. I've beenwatching the Big Twelve. I'm a big
I like the Big twelve conference.They've got Kansas, Houston, Iowa State,

(21:26):
those big, those big schools overthere, and I watched the Houston
game yesterday. That's I think that'smy team this year. I think Houston's
gonna be unstoppable here in March.But but yeah, it's all the playing
game. So you see those that'sthe beginning of the week, right,
So this weekend's conference and then beginningof the week is playing, right,
and then the tournament starts thirsting yep. Yeah, so I'm not sure when

(21:48):
the playing games are actually, butyeah, these are all the conference once.
So winner of each conference clearly yourYou punch your ticket, and then
they pick and choose the remaining schoolsthat go in it. But it's always
a it's a good time of theyear. I love March madness great and
I love seeing these kids because theyare kids eighteen to twenty two years old

(22:10):
roughly and just playing there you knowwhat's off right, leaving it all out
there. Yeah, this is thewinner go home, No money, nothing,
just just trying to get to thenext level, trying to win a
championship. The efforts unbelievable. Ithink there is some money now, yeah,
I guess they get the name andlikeness thing right. The nil is

(22:30):
you can you can get endorsements.Yeah, so I guess they can make
some money now on their jersey orthere. And it's nil right, I
forget name something in likeness, nameimage likeness. Name what image like that
image? That's it name image likeness. Right. So, but folks,
this is a calling show. Iknow we're we're not going to talk about

(22:51):
the NCAA tournament the whole time.But if you want to call in again,
it's one hundred Talk WGY. It'stwenty one hundred Talk WGY. Why
we're here every week seven to nineam right here on WGY if you if
you want to listen to us.We also have our podcast. Now.
We've been getting a lot of alot of traction with our podcast. I

(23:12):
think Dave was saying we've had overfive thousand listeners. I believe it's on
the iHeart app as well. Ifyou download the iHeart app, you can
find our show. There's a retirementplanning show. We also do a twelve
to one, So at noon todaywe'll have a retirement ready show and that'll
be a little bit more topics specific. On the seven to nine, we

(23:33):
tend to jump around a little bitand we'll take call ins. But but
again the twelve to one is alittle bit more topics specific. If you
want to tune into that one aswell, that one's retirement ready. If
you want to call our office numbersfive one eight, five eight, zero
nine one nine. We have ourhome office in Malta, so two six
nine one State Route nine. It'sright next to the Rape Tomato and the

(23:56):
Malta Speedway over there. I've beentrying to talk David into getting a car
for the multi Speedway. That'd begreat. Two things though, One,
I don't think you could fit ina car. Yeah there his head,
his head, he'd have to putit out the window. He'd have to
wear one of those beekeeper outfits.But but yeah, put your name on

(24:21):
a car RPG. Put Retirement PlaningGroup on a car out there, and
uh, it would be good advertisement. You know, we do the radio
show. But I'm telling you,I think there's a market to be to
be struck at the Multi Speedway overthere. I wonder at the Multi Speedway
if it's your demographic, because you'repre and post retirement heart hard workers,
blue collar folks, you know,but older folks like pre impost or.

(24:47):
Is that I usually go there maybeonce or twice a year, And what's
the what's the age bracket typically?I mean, I would you get anywhere
from. I mean there's kids thatgo to watch the the the races.
Then you have many people in thehaven't you see, So I'll democrat.
You just gotta make sure you wearglasses if you ever go, because the
dirt spits out there. It's funny. I lived. I lived in Luther's

(25:07):
Forest for many years, and Iguess we well, we gotta take a
boat. We'll zoom after the break. We'll resume after this. We're getting
it, are getting the hook.She asked me where that is from?

(25:30):
I see somewhere there be into littletown outside of oxy head and bis and
dog wood trees. She tried talkingwith my accident. We held hands and
weed into that blue water. Shelived her flip flipes by my red wings

(25:52):
on beach heaven. Now dogs andpottles, and we are back. Good
morning, those of you just rollingout of bed getting the crust out of
your eyes. Welcome to w GWide is the Retirement Planning Show. I've
got special guest Drew i Ello fromFairway Independent Mortgage Corp. Thanks for having

(26:18):
me, yeah, of course,getting out of bed nice and early with
me, thank you. I'm usuallya four or five am or so Dave
always knows I'm a showing. I'malready upper. So you're you were watching
a movie this morning. I waswatching a movie this morning. What did
you know I was watching? Iwas watching documentary on Journey Steve Perry,

(26:40):
that's what you were doing. Yeah, the Jermy documentary I watched. There
was a movie last night. Don'tworry, Darling. It's with Harry Styles
on HBO. It was pretty weird. Good, good movie. Yeah.
I like the documentary though they alwayskind of bring it back a little bit.
Well, the whole music thing isalways amazing to me, just because

(27:03):
so much goes on. I'm notreally that educated on music. On Who's
who. I couldn't name a drummeror a guitarist. If my life depends
me, Lenny Kravitz is probably yet. So I like music, but I
just it's not my thing. SoI don't know. I just find it
interesting when I have a few minutesto listen. So what do you listen
to in the car? Talk radio? Talk radio? Yeah, that's good.

(27:25):
Yeah. I always got w GI on right, I get my
Yeah, I get my politics,news, local news, whether I don't
know. I'm My commute is abouta mile and a half, so I
don't really get much time in thecar typically unless I'm going to appointments.
But yeah, I do that,or I go to on the weekends,
I go to one oh six forthe classic rock you know, big hair

(27:48):
bands of the eighties. So doyou So your appointments, you travel to
people's houses sometimes not not necessarily housecalls, but it's more referral partners,
real estate offices, attorneys, CPAs, a lot of open houses, charity
events, seminars, like the partieswe do, holiday parties. We do

(28:11):
like this This Wednesday, we havethe big Women's Council Realtors Breakfast of Champions.
It's like the Academy Awards. OnWednesday, three hundred or three hundred
and fifty real estate agents go tothe casino and anybody that's done six million
dollars or more gets gets an award. Wow, all the way up to
the top. So it's you know, seven thirty eight o'clock in the morning

(28:32):
till about noon. It's it's probablythe biggest event of the year. So
that's Wednesday. So yeah, that'skind of the stuff that I do.
Nice well, we have we havea call on Dave's Dave, Good morning,
Good morning, Good morning from thebeautiful state of Florida. I'm glad

(28:53):
to see that mister Ilo made itout of bed early enough to be there
with you early. I think youand I are a lot of like Dave.
I think they're up about the samehour every morning. I think that
issue. The thing that's always amazingto me is that when I see a
text message or I get a phonecall a little after five o'clock in the

(29:15):
morning, I always know there's twopeople. It's either you were Dave Feltz.
What are you at an MMA eventright now? Dave, Yeah,
I'm at the I just got tothe airport and checked in. You know
how fun that is to check inthe bags and all that. But I
wanted to call in and just giveyou guys, kind of a little bit

(29:36):
of a summary. You know,you come down here to Florida in every
time I come down, I'm flabbergastedby three things. As far as the
quality of life, right, I'malways amazed the how our retirees are doing
down here. The second thing isis the constructions. It's just amazing the

(29:59):
construc direction and uh, it justdoesn't seem to end. I went all
the way from the southern tip ofFlorida all the way up to the Okalla
Saint Augustine area, and no matterwhere you go, Drew and uh Nico,
it's unbelievable construction, unbelievable growth.It's amazing that it's still being fueled

(30:23):
three years later. I'm almost like, I guess you know, it's funny,
it's actually about four years ago todayor yesterday that the whole world shut
down. And is that when itwas? Because they were talking about that
on the news this morning when Iwhen I when I got up. But
the bottom line gets down to isthat it's uh you know, I I
talked to a lot of people.I talked to a realtory the other night

(30:45):
when I was at dinner, andyou know, it's the consensus. It's
not going to stop. It's thequality of life. It's the low taxes
that you pay as far as incometaxes down here. But the thing is
is that LRDA is not as cheap, guys as it used to be.
Insurance. Everybody that I talked towhen I was down here over the past

(31:06):
week, insurance is through the rooffor a lot of individuals. Some their
insurance policies have doubled over the pastyear summer, up fifty percent. The
guy was paying three or four thousanddollars a year, Now they're paying six
or seven thousand dollars a year.That adds up. Yeah, it's cooled
off a little bit. Still,you know, still hot, don't get

(31:29):
me wrong, but it's it's it'sstill robust. We were talking about it
early. I don't know if you'reever to listen in, but still signed
multiple offers. Houses going over listprice continues to be the theme, regardless
of interest rates, which is whichis amazing. Well, that's it's still
happening right right. Is that becauseof lack of supply drew in our marketplace?

(31:56):
Or is it because of contractor werehesitant to put the money into it,
because of the construction cost lack ofsupply. I think I think in
a weird way, what I couldput back to the root of all this
was two thousand and eight, twothousand and nine. Obviously when everything hit
the fan. Back then, nobodywas building, nobody was selling. You

(32:19):
had houses on the market that weresitting for months, and then the builders
obviously shut down, and then theydidn't ramp up fast enough and then COVID
hits, so they're already behind theeight ball. COVID made it worse and
now they can't build fast enough atthe moment, and that's that's that's where
I think the supply has got tocome from. It's new construction, so

(32:40):
I think you're seeing it down well, well, the problem is is that
then I'll highlight this real quick.A friend of mine is a major developer
in the Capitalistic region. I spoketo him before I flew down here,
and he said that there's new rulesand regulations coming in for developers, is
what they're going to have to dowith wet lands, And he says it's

(33:01):
going to put breaks on development veryquickly the first of next year. So
you know, it's it's not goingto be less complicated. It's going to
be more complicated to get the approvalprocess in order to get those houses built,
which is not I guess it's goodfor people that are selling, but
for people that are looking for affordablehousing, it's going to be more difficult.

(33:24):
That is that is I you knowso many people sometimes there's a whole
segment of this market that's shut out. If you have if I have a
buyer that's say an faha loan,which means, you know, small down
payment, three and a half percentfaha. They don't have a lot of
money. They need seller concessions,forget about it. They honestly don't have

(33:45):
a chance. So there's there's awhole segment of buyers that are being shoved
out or pushed out of this marketat the moment. And I know,
I know in the State of theUnion address, he talked about trying to
put in some sort of incentives toget more supply in the market, people
that want to sell their house,first time home buyers that are selling their
first time home. Maybe give themlike a ten thousand dollars tax credit to

(34:07):
try to get more supply, getthem to give up their two and a
half or three percent rate and geta different house. I don't know if
that has any teeth. I don'tknow where it's going to go, but
he did mention it. We'll see, because that's the big issue, you
know. And if you're saying,Nico, how are you doing? There?
Is everything up okay in the Metropolismechanics sol this past week? What

(34:29):
was that I was? I wassleeping over here Yeah, everything, everything's
going great. I was talking aboutit a little bit earlier. We had
a good week, met with alot of folks. Yeah, everything's good
up here. I mean it's notas bright and sunny as it is down
there in Florida. I'm sure.But you're going up to Alabama today?
Are you coming straight home? No? No, no, I'm going to

(34:49):
Alabama in two weeks. So I'llbe in Alabama in two weeks and then
back to Florida with Julie. Sookay. Yeah. But the thing is,
I want to summarize a little bit. The people that I met with,
most of them are very content happy. The move to Florida went well
for them. You know, forsome of them it's been a great,
great move. For others, they'requestioning, you know, whether they're going

(35:13):
to stay there permanently. But fornow, you know, this is where
they want to be. But oneof the things that you guys know,
because you're in the business, whatmotivates people to move as they get older
is what kids. So the thingis is that, Yeah, sometimes sometimes
we have discussions, you know,you know, if something happens to one
of the spouses, you know,are you going to relocate closer to one
of the kids, and typically that'swhat happens. That's what happens. So

(35:37):
well, listen, guys, I'mnot going to steal your thunder. I'm
gonna sit here and listen to youguys with great, great anticipation of all
this information. But I'll be backnext week and I can't wait to see
you guys. All right, travelsafe, all right, we'll see you
on Monday, seven o'clock meeting inOkay. All right, God bless by

(35:59):
the infamous Fearless Leader. Dave Kopek. Yeah, he was. He was
down in Florida last week visiting clients, so he got to see some sunny
weather. And then, uh,I think he's going back down in April.
But we've been traveling quite a bit, Drew over the last few months.
Syracuse, Toniana. We visited FolksHouse in Franklin out there too,
so kind of western. And thenyeah, Dave went down to Florida.

(36:22):
He's going to Alabama in a coupleof weeks. Got clients in Alabama,
a couple of clients down in Alabama. They originally I think his parents were
from Maine, and now he's downin Alabama and then one of his friends
is in Alabama, who's the clientof ours? And yeah, we've got
We've got people, uh, spreadout all over the country. I think

(36:43):
Dave makes a great point. Peoplefollow their kids, right, We've got
We just had this discussion last week. My sister was in town. She
lives down in Jupiter, Florida.She was up skiing, stop by on
the way back down and the samething, they like, Oh, you're
ever gonna move? You ever goton? Like, no immediate plan.
I got an eighteen year old anda twenty three year old. Twenty three
year olds down in Tampa next toDave's sun. My eighteen year old's obviously

(37:07):
in college. And I would sayfor the next ten years, we're status
quo. They'll find out where theyland. You got your roots in the
ground right now. But who knowswho they're going to marry, who's going
to be with, who they're goingto end up, you know, kids,
grandkids, that kind of thing.So we're just a wait and see.
Yeah, I think that will dictatewhat we do. I think this

(37:28):
week, two of my appointments,yeah, they're talking about moving follow their
kids. One is in Michigan andthe other appointment. The child was in
South Carolina. So they're looking atdifferent states and different tax laws. And
there's pensions too, So if youhave a New York State pension, you
have to look into that. Imean, clearly you're not going to get
the state taxation benefit that you're goingto get up here. So moving to

(37:52):
a different state, I mean,depending on which one you go to.
But again, I mean it's amajor decision, right kind of leaving home
base and traveling around to follow yourkids. So you need to plan for
that. You need to make sureyou have the right assets. We heavily
advise that if you're going to doany your vocable trust, you set that
up in New York State before youmove because New York State trust law is

(38:15):
so advantageous compared to other states becausethere is that partial revocation that you can
do into the trust. ZAC sellingat me, you threw me off.
We're going to take a break.If you want to call in. This
is a live show. It's twentyeight hundred Talk wgi's again, that's one

(38:36):
eight hundred Talk WGI. It's myselfand Drew Iilo here this week, so
feel free to call in. We'regoing to take a break. We'll be
back right after this. The eightysix percenters. Do you know that eighty
six percent of the population has nodefined benefit pension plan. For most of
us, we have to take ourlife 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 themost critical years of your life time

(39:00):
Nobel Prize winning economist William Sharp hascalled retirement income distribution the nastiest, hardest
problem in finance. He points outthat investment, uncertainty, and mortality can
derail the most careful laid out retirementincome plan. Call our offices today to
start the process of building your retirementincome distribution plan. After forty one years
of being in the financial services business, you need to start taking action to

(39:23):
start building your own personal retirement incomedistribution plan. How do you do that?
To take action? Five one eightfive eight zero one nine one nine.
That's five one eight five eight zeroone nine one nine or RPG retire
on the web. Don't procrastinate,motivate to start building your retirement income distribution
plan five one eight five eight zeroone nine one nine. If you would

(39:45):
like to hear more information on navigatingyour way to retirement from Dave Kopek.
Remember, you can listen to thisshow and pass shows anytime in anywhere on
the free iHeartRadio app, or goto iHeart dot com and search for a
retirement plan show. If you haveany questions, calling now at one eight
hundred talk WGY. That's one eighthundred eight two five five nine four nine.

(40:07):
One eight hundred eight two five fivenine four nine. We are here
live in studio, ready to answeryour questions. Are you sitting at home

(40:30):
all alone trying to fall asleep?Are you staring in a hole through your
phone praying that and rain? Areyou watching a movie that you've seen a
thousand times, maybe playing some mayorgonna lost in your favorite line? And

(40:52):
we are back. Believe if youwant anything, I'll cut it off before
it gets to the good part.Then I'm not gonna want to cut it
off. You just I think Daveused to sing the rest of it.
I think, yeah, you dothat. He's probably singing it in the
in the airport right now. Yeah. I think the TSA is on the
way. I only do karaoke aftertwo or three Miller Lights. You know

(41:15):
what. I know what. II went to UH seven Bistro yesterday Clifton
Park, that restaurant in the hotelon A one forty six and Route nine.
They UH. I was talking tothe owner yesterday and they had uh
they had people there to like twothree in the morning Thursday night. Well,
it's Saint Patrick's Day weekend. I'mlike, what, what's the attraction?

(41:37):
Not like I didn't mean it inan offensive way. I'm just wondering
why people on a Thursday night areout till two in the morning. Karaoke.
Oh, she said that they gotthey got a killer karaoke lady.
And she's goofy and sometimes she wearlike chicken outfits and things like that.
So she's real lively and it getspeople there and the place was jammed.

(42:00):
She went downstairs. She stayed thenight in her own in the hotel part
because she lives in Saratoga. Shewent downstairs. They get a glass of
water and at like one thirty inthe morning, and place was so there
you go, that could be yournew spot. Yeah, Thursday night karaoke.
They do it quite a few spots. I was I think up in
Saratoga. They do it at eitherTapping Barrel or what really? And then

(42:22):
I know Mechanicville. We have theEnd Zone over there. Oh yeah,
sports Pub. Yeah. I thinkthey had karaoke last night I saw on
their Facebook page. But I likethat place. I'm a supporter of the
local. I love it. I'mall about local. I go to Bubbles
over Mechanicville. Have you ever beenthere? Ugly Rooster, Bubbles and Zone,

(42:43):
end Zone, you name it.I actually sat down at the owner
of the Ugly Rooster last week too, and guy's killing it. I think
he's going to have a nice littleseasonal place near Brown's Beach the summer ice
cream things like Saratoga Lake. Yeah. Yeah, And they've got the spot
in Malta too, right next toour office. That's where it was actually

(43:04):
strove right by your office. Wego. Why didn't you stop? You
never stopped it? I actually Imoaned you guys as I was trying that
Route nine. Yeah, I don'tknow if you saw that. I saw
somebody they had their hand out thewindow with a finger up, but I
didn't know if that was your ornine. I started running down Route nine.
I was upset that Dave wasn't thereto see it. We like to

(43:27):
have fun, but but anyways,we do have to get to some info.
I wanted to go through a situationbefore we take the eight o'clock break
here that I had over the pastweek, which I thought was unique.
I thought it was an interesting ideathat this woman had and and kind of
brought to our attention. I thinkit made a lot of sense. Chris

(43:49):
McCarthy, he's a new hire,so he's a new employee at our firm.
Now. He he's an advisor withthe firm, so he's been sitting
in on these appointments with me andlistening to our client situations and new folks
coming in. But we had asituation where me and Chris were sitting down
with a woman and her husband andshe was talking about taking Social Security.

(44:13):
So she was of the age whereshe was full retirement, so it was
her full retirement age for Social Securitysixty seven in this case, and she
was looking at taking Social Security andshe was still working and sky's the limit.
So we know, once you hitfull retirement age, there's no income
limit on how much you can make, so it's not going to reduce your

(44:34):
social security at all. What isfull retirement age these days? So it's
between sixty six and sixty seven dependingon her day of birth. Okay,
sixty seven for the younger, notseventy I always I don't know why I
had that in my head, Soit's younger than that. Seventy is the
latest age you can delay it,Okay, there's sixty two is when you
can start taking full retirement ages somewherebetween sixty six to sixty seven, depending

(44:55):
on your age. And then thelongest you can delay is seventy. So
at that point it's not going togrow anymore, so you might as well
take it at seventy And then isit still fifty nine and a half that
you can start withdrawing from your retirementfunds and not be penalized yep, So
from iras, so individual retirement accountsyou could start taking at fifty nine and

(45:15):
a half. You can actually takeearlier than that. There's ways substantially equal
periodic payments or seventy two T it'scalled, so you can turn it on
before fifty nine and a half,but you have to take the same amount.
It's also dependent on life expectancy,so there's a formula that they use
that derives that substantially equal periodic paymentamount that's going out on a monthly,

(45:37):
annual, or quarterly basis, Sothere are ways around that early withdrawal penalty.
Also, if you leave your fundsin a four to roh one K,
you can access those at fifty fiveif you're separated from service, so
there's planning around that. But anyways, so for this woman, she reached
her full retirement age, she wantedto start taking Social Security, but she

(45:58):
wanted to take that amount that shewas going to receive on a monthly basis
and contribute directly to so contribute directlydirectly to her four oh one K,
which is pre tax. So Ithought it was a very interesting situation because
if we look at this and backout, let's just use simple numbers.
Let's say she's making one hundred thousanddollars a year, you know, the
maximum she can contribute about thirty thousanddollars into her four oh one K on

(46:22):
the pre tax side, and thenher Social Security Let's say it was twenty
five hundred a month, So thatgets you your thirty thousand dollars in Social
Security. So instead of receiving thatSocial Security we're transferring that directly to the
four oh one k in theory,so she's gonna elect to withhold let's say

(46:43):
thirty percent, right, because you'regonna get thirty percent of your wages to
maximize the four oh one K.So she's only going to show seventy thousand
of income from work, and thenshe's gonna turn her Social Security on,
which is gonna be twenty five hundreda month, and that gets you that
thirty thousand that you're deferring into thefour oh one k. But that's gonna
going right to her bank account.Now, taxes, this is going to

(47:04):
help her out tax wise. Right, social Security is not taxed on the
New York state level, so you'renot gonna be in New York state tax
on the Social Security distributions. Andalso on the federal side, you're only
taxed on up to eighty five percentof that Social Security benefit, so you're
receiving what would that be? Soif she's five or six percent state tax,
she would have been taxed on thethirty thousand if she received it from

(47:25):
work, whereas now she's saving let'ssay what fifteen sixteen hundred bucks on the
state side, and then on thefederal side, you're there's fifteen So fifteen
percent of the Social Security is notgoing to be taxed on the federal side,
So that would be fifteen percent ofthirty thousand, So you're looking at

(47:45):
potentially another maybe nine hundred dollars federaltax that you're not gonna have to pay.
So you're looking at twenty five tothree thousand dollars tax savings just by
taking the Social Security at full retirementagent deferring that same amount from your working
It's a very complicated type of situation, but this just shows you that there's

(48:06):
a bunch of different strategies out theresurrounding Social Security, surrounding income taxes.
You're deferring that income into a fourto one K, which potentially is going
to be taxed less in retirement ifyou're earning less in retirement. So I
think it makes a lot of senseto kind of get around the old Uncle
Sam here and try to pull afast one, right. That's a nice

(48:29):
little neat strategy. It was apretty neat, pretty interesting story. I
mean, I haven't heard of thatbefore. And she came up with the
idea, and I said, youknow what, I'm going to talk about
this on the radio show. Ithink it makes a lot of sense.
You're saving taxes and also starting toreceive your Social Security eventually we'll start withholding
from And she's still putting money away, and she's socking away into a four

(48:50):
to one k. She was onlydoing I think maybe five five thousand dollars
a year before. Now we're goingto maximize it for the next maybe two
or three years. So so again, I think it made all the sense
in the world. And I toldher, yeah, I completely agree with
it. Yeah, so you're actuallygonna save in taxes. No, I
had I had a simp not similar, I guess, but a nice little

(49:10):
strategy. A lady that's turning sixtyone next month, I think sometime in
May or two months. She's shelives in a house three hundred and fifty
thousand dollars house, owns it freeand clear, has about four hundred thousand
dollars in assets with you know,fidelity and some sort of annuity, and

(49:30):
she wants to buy a new constructionhouse for five hundred and forty thousand.
So she but that house probably won'tbe done for another year. Because it's
new. Construction is just starting.I don't even think they have the foundation
or anything like that. So shelikes the fact that right now she does

(49:51):
not have a mortgage payment. Shejust pays her taxes or insurance, and
she's got a Social Security income,you know, a couple thousand dollars a
month, and she gets dividends ofanother seven eight thousand dollars a year.
So she lives very modestly, andshe likes having a no mortgage payment.
So she'll sell her house when thetime comes for three hundred and fifty thousand,

(50:13):
she'll put that down on the newmortgage, and then she'll have a
reverse mortgage for the difference, becauseyou need about fifty sixty percent down depending
on your age, and she'll beat the minimum age of sixty two.
She can still move into a brandnew house fits her needs for the foreseeable
future, maybe you know, theremainder of her life in this house,

(50:35):
and not still not have a mortgagepayment, no no kids, no husband,
anything like that. She's got aniece. She wants to make sure
that she gets some money. Andnow with the way that reverse mortgages are
set up, they only lend youabout forty fifty percent of the value of
the home, so there will beplenty of equities still left over in ten,
fifteen, twenty years, and achunk of money obviously will go to

(50:59):
her her niece. And obviously she'llhave liquid assets that'll probably be growing over
that course of time that shouldn't haveto dip into. So you can take
her. You can take a reversemortgage on it, on a purchase,
on a purchase, even with anoutstanding mortgage. Uh, well, she'll
she'll be She'll sell her house,she'll take the proceeds from the sale of
her house, she'll put it downthe new house, and then the verse

(51:20):
mortgage will finance the remainder. Wow. Yeah, see that's interesting. I
didn't know you could do that.Yeah, it works out perfect for her
because she didn't really want to touchher little nest egge of her fidelity and
annuity money. That's like her littlesafety blanket and she gets dividends from it.
So this is a perfect strategy forher. Wow. Yeah, that's
that's a very unique. Yeah.I actually talked to her last night.
I'm going to send out those packetsthat I left at your office, going

(51:43):
to send her one of those informationalpackets and just to educate herself on it.
You left packets in her office,Yeah, I did. Would you
leave them a while back? Sheleft it with Dave. It's probably it's
probably a year ago. I rememberwhen I was there there was snow on
the ground. Yeah, we didn'tget much of that last last the winner

(52:04):
here but nothing. We're running upon a break here, So again,
this is a this is a callin show. So if you want to
call the call the radio, it'stwenty hundred Talk WGY. You can call
us right in our studios. I'dbe happy to have a conversation answer any
questions. We've got Drew Ilo onthe on the radio with me now too,
So if you want to call it, it's one hundred Talk WGY.

(52:27):
Everyone, we're gonna take a break. We'll be back right after this,
Live from the wgy iHeart Studios.Welcome to the Retirement Planning Show with your
host Dave Kopek from the Retirement PlanningGroup. Every week, Dave and his
team discuss the ways they can helppeople make informed decisions about a wide array
of retirement planning information that can supportyou and developing a more certain financial future

(52:52):
for you and your family. Nowit's time for Dave gopec WGY's retirement planning
specialist, Pooll me, pull meanother drink because I don't want to feel

(53:17):
a thing no more. Hell now, I just want to sip it till
the paint wears off. Pull me, pull me another round, Line them
up and knock them down too.Let's go, because I ain't never heard
like this beefoo. Don't want tothink about her a wear ring thatighter don't

(53:39):
want to hit the killo cabarka singwith thater. Don't make them drink strong
because brother, see he's gone.And if I'm ever gonna move on,
I'm a niece whiskey glasses because Idon't want to see the truth. Strolling
making out on the cow right nowis oh yeah, go drive my tractor

(54:06):
running and uh John Deere till thefields. Some of those deer walking,
the elk and the caribou. Ican't believe you saw one of those jackal
and the bag's going on out there. We got a what is it National

(54:27):
geographic is is out there? Dude? That was my jam back when I
was a kid. Did they evenhave those shows on tv H Yeah,
a little square in the corner.Yeap. I used to be a national
geographic junkie. I used to lovethose shows, Lions, Jacques Cousteau,
Lions Attacking Antelope. Loved all thoseshows. Maybe did I really like nature
that I like the killing? MaybeI have an issue there? Oh God,

(54:50):
you got a couple issues we've we'veThis is a therapy session or is
this a radio show? See?The phone lines are open. Some people
want to intervene and help me withsome I'm open to it. Feel free
to call in. We could talkabout Drew's issues. He's going free to
get back AnyWho. This is theRetirement Planning Show for those of you tuning
in for the eight o'clock hour here, we're here every week seven to nine,

(55:15):
so feel free to tune in.We were also on the iHeartRadio app.
If you want to download that applicationon your phone. You can listen
to past shows. I met witha gentleman on Friday, well yesterday here
and he listens to the show MondayTuesday. He's a truck driver. He
throws it on while he's in histruck and listens to us. Then so,
but again we're on the we're onthe podcast. We're also live here.

(55:37):
So if you want to call intwenty one hundred talk w GI again,
that's twenty hundred talk w G.I would be more than happy to
answer your questions. Or if youjust want to leave a question with Zach,
you can call him ask the question. Then I'll have him run in
here and ask it. If youwant to call our office numbers one well,
actually it's not one eight hundred,it's five one eight five nine zero

(55:59):
one five eight zero one nine onenine. My numbers are all messed up
this morning. It's been a longweek. Now. Who's got issues?
Five eight zero one nine one nine. I've got issues this morning too,
So five zero nineteen nineteen, that'san easy one nineteen nineteen, so that's
when Dave was born. I thinkso, think so, I think so
you're listening. She was a text. Is that your dear, Well,

(56:19):
you're nineteen twenty one of those.I think he's about nineteen ninety one now,
one hundred, one hundred, unreserved, hundred preserved so well. But
uh, but again, we've hada nice show this morning. I thank
Drew for coming on. He's fromFairway Independent Mortgage Corps. What's your title
over there, Branch manager. Branchmanager. Ye've been doing this since nineteen

(56:43):
ninety five, opened the branch forFairway in Uh. Actually, what do
we Yeah, June of twelve,so it'll be two years this June that'll
be in that space. Uh.Fairway's a top three lender in the country,
you know, if you take outthe Chases and Wells, Fargo's and
Bavas of the world. But theindependent mortgage bankers out there probably top three

(57:07):
in the country, licensed in allfifty states too. A bunch of programs
obviously, the basic USDA, VAFHA, conventional programs, jumbou justible eight
mortgages, arms interest only. Obviouslywe talked a little bit about reverse mortgages,
bank statement programs, believe it ornot. Have a few of those

(57:28):
in the hopper right now where Inever could do at the previous firm.
But you can. You can buya house now if you're a self employed
individual. Yeah, and you knowthat game which you sometimes make you don't
really show on the tax returns,or you have an area big expenses and
those your incomes written down to whereyou can't qualify for a traditional mortgage.
I have a lot of borrowers rightnow giving me twelve months and twenty four

(57:51):
months bank statements and looking at theircash flow. And we're qualifying them based
on their cash flow. Wow,and not tax returns or past ups or
W two's some nice little innovative programsfor the proper person, meaning good credit,
decent down payment and all that.Actually, a gentleman closed yesterday.
I had massive cash logoing through thebank and put ten percent down on a

(58:14):
house for seven to seventy five andclosed yesterday. Just bank statements, just
bank statement. Yeah, no taxreturn. Well, we have a we
have a caller, David from Castleton. How are you, David, I'm
good, Thanks, good morning.I had a question. Did I hear
you guys say that if you retirefrom New York State pension fund you have

(58:37):
to pay state tax if you movedto Florida. So Florida doesn't have state
income right, so there's no stateincome tax in Florida. In New York
State, you don't have to payon New York state tax. I was
saying outside of New York State,there might be state tax issues if you
move to a different state. Butbut yeah, I think you'd be fine.

(59:00):
Do you know that, Drew?I don't know if not, how
that works. Not sure. Ihave to look into that for you,
David. Okay, So if youmove, let's say you moved to a
state state income Let's say you movedto someplace other than Florida that does have
like say you moved to North Carolinadoes have state tax. Would you have
to pay the state income tax onthat? I wonder, Yeah, you

(59:21):
would have to because you're outside ofNew York State at that point. But
you work for the state. Yeah, I pay into the or I was
paying into the extension fund. Yethow long you been with them? Uh?
Thirty four years? Wow, soyou're gonna have a nice little pension
hopefully. Yeah, I guess.So I find out this week. Nice,

(59:45):
you're retiring soon, I'm hoping to, hoping to in April. Wow.
Well, congratulations to you. Andhave you been contributing to a deferred
complant at all? Yes? Yeah, there you go. Yeah. I
mean, if you want any help, feel free to give us a buzz.
We could sit down and meet withyou in Malta or We've got a

(01:00:07):
number of other office locations that mightbe suitable. But yeah, we can
we could sit down and review thatwith you if you want us to.
All right, I appreciate it.All right, David, you have a
nice Saint Patrick's Day weekend. Thanksyou too. Bye. Saint Patrick's Weekend
Not true? How did that?You know anything about the history of Saint

(01:00:28):
Patrick? Yeah, like why thisall came about besides drinking. But but
I saw something this morning, somethingcrazy like seven point two billion will be
spent this weekend for the holiday andit's not holiday, but for Saint Patrick's
Day weekend. Seven point two billion. Yeah, it's like, wow,

(01:00:50):
very heavy. That might be heavierthan Mother's Day. Very very heavy,
heavy drinking weekend. So everybody,uh, definitely stay safe, you know,
make sure you're uh you're driving safely. Don't uh, don't pick up
that glass at the bar and thentake your keys out of your pocket.
Call somebody. I heard Drew's goingto be driving around later today picking up

(01:01:14):
people. Free service, Drew Zuber. Yeah, yeah, I guarantee you
to get there in half the timeyou expect. I thought you lived like
right around the corner when you toldme it took you fifteen minutes this morning.
Here it is Americans are expected tospend a record seven point two billion
on Saint Patrick's Day celebrations and betand bet two point seven billion on NCAA

(01:01:39):
men's and women's basketball tournaments. Wow, Holy Christmas. Yeah, I think
that. I mean, that's aten billion dollar. That's a huge issue
going on right now. I Ithat's one of my biggest uh pet peeves
is the gambling situation out there,the younger generator. I mean, that's
it's so all the apps so easy. Oh, we'll give you a thousand

(01:02:00):
dollars if you wage your X blahblah blah blah blah, all that stuff.
I think that's that's I think that'sbad. Yeah. I mean I
met with a gentleman and he wassaying, some of his friends use credit
cards, so they're putting this thisdebt on credit cards that they're transferring over
to their gambling app to place betswith brutal what happens if that doesn't hit?

(01:02:23):
You're paying twenty five percent on aon a loan here APR, so
yeah, take it. It willtake you twenty eight years to pay it
off if you did the minimum payments. Yeah, I mean it's brutal.
I mean even if if if you'regonna be able to pay it off after
that, you know. The Yeah, it's a crazy world we're living,

(01:02:44):
and there's a lot of debt outthere. I think we're at what almost
two trillion, two trillion dollars incredit card debt. That yeah, so
we're we're, we're one of thethings, you know, we point so
we know, inflation seems to besticky. And the big thing originally for
the FED was inflation. Inflation hascome down. We hit a we hit

(01:03:04):
a peek at one point for aboutnine point one percent. Now we're down
into the threes or high two's,depending on what index you look at.
So now it seems like the FEDis really focused on employment and the jobs
numbers. And you know, wehad some decent reports, some you know,
some goldilocks type reports and meaning nottoo hot, not too cold kind
of reports. But you're looking atyou know, what we spend as consumers

(01:03:28):
is probably three quarters of the GDP. And right now you talk about credit
card debt over a trillion dollars,the highest record ever one point one point
two trillion. That's a little often, right, and now we're starting to
see credit card delinquencies and now we'restarting to see some mortgage delinquencies and we
really haven't seen that since COVID becauseof all the all the stimulus and all

(01:03:51):
the money that people were getting.So we're starting to see some some cracks
in the armor. And in aweird and a sad way, that's really
what the Fed's looking for. Theywant they want to slow this economy down.
And now what they're totally seemed liketheir laser focused on is employment.
They want to see higher unemployment,believe it or not, which you would

(01:04:13):
think that's kind of crazy, butthat's what they want to see. And
the consumer, I think, isstarting the weakening. You're starting to see
delinquencies on credit cards, you're startingto see consumer spending slowing down. Retail
sales were much less that expected onthose numbers, so the consumers put is
tapped out, I think, AndI think what got us through the holidays

(01:04:33):
is that buy now, pay laterstuff, and now that's coming to roost
where you got to you can't notmake payments. You got to make payments
on this stuff, and you've gotto make those monthly payments for six months,
twelve months, and if you don'tpay, it's twenty one percent inches
something crazy like that. So Ithink a lot of the consumer spending was
fueled by credit cards and buy now, pay later funding. We've seen a

(01:04:57):
lot of transfers to credit card transfersfrom you're paying a monthly interest amount,
you do a zero percent transfer,and then after six or seven or even
I mean some of them are attwenty months. I mean, you could
transfer these credit card debts over toone company and then you're paying zero percent
for a certain amount of months.But those are going to kick back on
if you don't get on top ofthose and start paying them down. So

(01:05:19):
yeah, you're seeing a lot ofconsumer spending I think slow down, or
you're seeing a transfer from cash onhand to debt and leveraging these purchases.
So that's a that's a major it'snot good. It's a major issue.
Not good. And then if youif you start to see unemployment tick up

(01:05:41):
when you're already a little behind onthings, that's not a good formula.
But I feel like that's in ain a very sad way, necessary evil,
and I think that's what the Fed'skind of looking for, is to
slow everybody down. And I dowant to take a break here, but
when we get back, I wantto talk about how this might affect your
portfolio and how you have your investmentallocation designed right now, So there's a

(01:06:06):
call in show. We just hada call from David over and Castleton.
If you want to call in,it's twenty one hundred talk WGI Again.
That's twenty one hundred Talk WGY.We're going to take a break. We'll
be back right after this. Theeighty six percenters. Do you know that
eighty six percent of the population hasno defined benefit pension plan. For most
of us, we have to takeour life savings and create a paycheck for

(01:06:28):
the rest of our lives in retirement. What is your plan for retirement income
distribution? How you manage your assetsduring the most critical years of your lifetime.
Nobel Prize winning economist William Sharp hascalled retirement income distribution the nastiest,
hardest problem in finance. He pointsout that investment, uncertainty and mortality can
derail the most careful laid out retirementincome plan. Call our offices today to

(01:06:51):
start the process of building a retirementincome 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 incomedistribution plan. How do you do that?
To take action? Five one eight, five eight zero one nine one
nine. That's five one eight,five eight zero one nine one nine or

(01:07:11):
RPG retire on the web. Don'tprocrastinate, motivate to start building your retirement
income distribution plan five one eight fiveeight zero one nine one nine. If
you would like to hear more informationon navigating your way to retirement from Dave
Kopek. Remember you can listen tothis show and past shows anytime in anywhere
on the free iHeartRadio app, orgo to iHeart dot com and search for

(01:07:34):
a retirement planning show. If youhave any questions, call in now at
one eight hundred talk WGY. That'sone eight hundred eight two five five nine
four nine one eight hundred eight twofive five nine four nine. We are
here live in studio, ready toanswer your questions. I hadn't had a

(01:08:05):
good time since you know, andgouts don't tend to going out, which
hopes you were staying in. Iwas feeling like myself for the first time
in a long time until I bombsinto some of your friends over there talking

(01:08:28):
to about bend your road in withyour hair in the wind, your back.
Who's that Luke Luke Bryant who combs? Oh okay, I'm clueless,
I told you, But I gottasay I love music and you may think

(01:08:49):
I'm weird, but I love Americanidol. I love watching the taco maker
minimum wage doing everything he or shecan get to get to the auditions and
just killing it, like belting itout. Yeah he's still there. You

(01:09:13):
got, you got Lionel, LionelRichie, you got him, you got
as a judge, Luke Bryant,Katie Perry. And they've been together I
think six seven years now, andSeacrest obviously came over, you know,
and uh and so the chemistry isgood because now it's been a bunch of
years. But I just love Ilove the audition stages, like the beginning

(01:09:35):
where a nobody uh comes and theyjust kill it and you're like, you
get the chills again. You thinksomething's wrong with me. But I've known
to shed a tear or two watchingthese people. It's moving, it's emotional.
Hear the story. Uh. SoI know now you think differently of
me, but I don't know.It's I think it's inspirational. The audition,

(01:09:57):
you know, the part when theyjust performed, they go to the
top. I don't like that asmuch, but I but I love the
audition part because you never know thesepeople, some of them have zero confidence
and they have the most amazing Godgiven talent. And I don't know,
I just love it. I thinkit's kind of inspiration. My friends make
fun of me. But nothing,nothing, BC original, What was it?
Randy jack Randy Jackson, Randy Jackson, Simon Cowell, Yeah, paul

(01:10:20):
Paula abdul Paula, Paula shut up. I used to. I used to
watch it back then, but butno, I don't really watch a lot
of just kind of live TV anymore. I think we're seeing a shift towards
streaming, you know, unless I'mwatching the news. I haven't had cable

(01:10:44):
in ten years. Yeah, yeah, no cable. Yeah. I have
Internet and I have landline. Idon't know. My bill's like sixty dollars
a month. I got ten TVs. So what do you use Roku?
YouTube TV? I use yeah,YouTube tv TV. Yeah. I can
watch it on my phone right now, my computer, my tablets, like
my kids use it. My motheruses it. Yeah, you know,

(01:11:06):
it's it's it's gotten up quite abit. It used to be like fifty
bucks. Now it's like seventy five, eighty seventy two. Yeah, I
use YouTube TV. I probably paymore now that I cut the cord because
you got YouTube TV, you gotHulu, you got Peacock, you have
you know, you pay for amillion subscriptions. Sorry paramount, I know

(01:11:29):
for you know, Apple, I'mpaying more than I probably was. But
now I have seven million stations tochoose from, even though I only look
at three. Yeah, it's nice. Well as I could watch Steve Harvey
and the Family Food Family Feud.That guy is hilarious. We do that.
There's a game you can play familyFeud, So Kendra and myself will

(01:11:53):
play it. We'll have a coupleof friends over and we'll do family Feud.
Oh reallyatts It'll have a couple ofglass of wine and kind of hang
out. It's a nice way todecompress and yell at each other. That's
what I do it because it's it'sI think it goes on like seven after
the news, and it's usually whenI when I get home and uh exactly
that it's a decompressed thing. Ican shut my brain off and let this

(01:12:15):
guy, you know, make melaugh for the next half hour. I
like the buzzard when they hit himwith the buzzard. Love it so Uh
name a man's name that starts withan H. Jose, Steve he said,
Jose, he said, he saidsomething wrong with you? Boy?

(01:12:38):
So watch the YouTube bloopers not bloopers, but they call it the dumbest answers.
It is you. You just can'tbelieve some of the stuff you're watching,
and you're in stitches. You needa brown paper bag because you're hyperventilating
laughing so hard. Oh boy,all right, we've got like six minutes
left. I need to talk,So before the break, we're talking a

(01:13:00):
little bit about the market. Youknow, some issues out there, outstanding
credit card debt one point one onepoint two trillion dollars right now, spending
potentially going down at some point thisyear. I think people need to tighten
their tighten their pockets a little bit. So what does that mean for your
retirement portfolio? You know, ifwe get any sort of major correction and

(01:13:23):
you're one hundred percent invested in stock, you know clearly that's gonna cause a
ripple effect on your account. Imean, if we face a twenty percent
draw down, it's going to takethirty thirty five percent to make that back.
You're at a million, you godown to eight hundred thousand. I
mean to get that back at atwenty percent return at that point would only
get you to nine hundred and sixtygrand, So you're not fully back.

(01:13:45):
So you need to narrow that bandof returns in retirement, especially if you're
getting closer to retirement as well,and there's ways to do that right now.
Interest rates are high. You cantake advantage of that with corporate bonds,
even tax remunicipal if you have somesort of non qualified account, you
can get a tax for you return. The maybe three and a half four
percent on those corporate bonds are offeringfive and a half to seven percent,

(01:14:10):
depending on which type of corporate bondfund that you want. High yield somewhere
in seven to eight percent range.So there's also covered call strategies that are
getting fourteen fifteen percent out there.There's a lot of different ways to target
income rather than growth at this pointin your life. And you might have
been somebody who has always been onehundred percent invest in stocks and in the

(01:14:32):
market, and you've done extremely wellover the last twenty five thirty years and
your account has grown substantially. Maybeit's time to pump the brakes here and
take some wind out of the salesand get into something a little safer,
something more towards capital preservation at thispoint in your life, and try to
flip that switch to income. Andit's I think it's a huge it's a

(01:14:58):
huge obstacle to to overcome. Mentally, you know, you're always in that
growth mindset. I need to keepsaving, I need to keep growing,
but I think you can do itin a more risk efficient way right now
with fixed income I mean bonds.I mean a lot of people say bonds
are boring, but right now youcan get a really attractive rate rates or
the ice they've been in twenty twoyears. So we've had that conversation a

(01:15:21):
lot over the last five six months. For some folks, we locked into
multi year guaranteed annuities. Nyga's Ohmy god, I said, annuities run,
But no, they were extremely attractiverates. Some got five and a
half five point five percent for threeyears, five years, seven years,

(01:15:43):
and now they're down to four anda half. So some of these multi
year guaranteed annuity contracts are decreasing.The nice thing with those, we've locked
folks in and they have up tofive hundred thousand dollars of protection through New
York State Insurance Fund. So ratherthan having their pension at work and the
potential for some sort of change ordecrease in pension numbers, the New York

(01:16:05):
State Insurance Fund backs these these multiyear annuity contracts. So we were fortunate
enough to put a number of folksinto those multi year contracts towards the end
of twenty twenty three before they startedcoming down a little bit. And those
people are dancing in the streets.They think we walk on water. Right.
The values don't go up on thoseright there. It's just like a

(01:16:28):
like a bond. You know,you bought a bond that five percent and
rates go to three percent. Obviouslythe value of that five percent goes up.
But that doesn't happen with annuities.You can't buy and sell those.
Those are nope. So those don'ttrade on the open market, right.
You know, you buy the fixedcontract and then you'll see your interests accumulate
during the life of that contract,and then if you take the interest off

(01:16:49):
of it, you can receive theincome off of that fixed contract. But
you can also let it compound ontop of itself or grow on top itself.
So after the three years, maybeyou renew it into another three years
if it's non qualified dollars, soif it's not in IRA, then you're
actually deferring that tax as well withinthe contract. When it renews, you

(01:17:12):
just renew it into another three yearterm or five year term, and then
you're deferring that interest that you're accumulatingwithin the contract until you start receiving from
it. So I think they're avery good option for those folks that are
looking for a little bit of safety. Rates are still pretty high, pretty
attractive. I mean I remember doingthese contracts when they were at two two

(01:17:33):
and a half percent. I waslike, wow, that's a good rate
right now. Yeah, but nowwe're at around five so that's gold.
Yeah, that's gold. So Ithink we're in a good spot. But
when I first got I was Davealways talks about investment banker right out of
college nineteen eighty eight eighty nine,and we had twelve percent triple a rated

(01:17:57):
tax remunicipal bonds. No, sorry, it's eight percent. It was a
taxable equivalent of twelve percent, andthat was insane. Obviously it doesn't last
forever. You had hyper inflation lateeighties, Yeah it was. I mean
rates started coming down every year sincethen until recently, so it was.
It was insane. Yeah, Imean I tried showing people like I want

(01:18:21):
to show them historic returns on thesefixed income funds over the last twenty ten
five years. They don't look good. But if you look at the one
year the current yields, I thinkwe're finally in a good spot to really
shift some money over there again.But anyways, this is a live show.
If you guys want to call in, it's one hundred talk WGY.
We're going to take a break forthe half hour here and we'll see you

(01:18:43):
on the other side. I've hada large mouth past bust mile line,

(01:19:03):
A couple of beautiful girls tell megood back, trucks break down, don't
run off my politicians, ibby,I find by the polity takes one hand
kind of things. I can comesnowy, rain't much man, We are
back and letting me good morning.Never did who's this never broke my heart.

(01:19:33):
No, this is uh luke.You never got your harpur. This
is for all you Giants fans.Long neck giant, long neck ice cool
beer. Never broke my heart.There you go, Giants fan, Sorry
stake one broke your heart. God, hey, we got a lot of
Giants fans. You gotta watch yourmouth over there, Zact I got season

(01:19:54):
tickets. I was gonna give youthe Eagles Giants games, but not anymore.
Sorry, too bad. I'll gowith you. It's only five rows
from the field, not good seats. Now the on the on the visitor
side too. Oh, there yougo. You get a real belly up
with your little Eagle friends. Youcould have kissed Jalen Hurts right on the
lips, yeh, which says Ihaven't. I'll be I'll be holding I'll

(01:20:15):
be holding him. I'll be holdingZach by his ankles as he's trying to
go over the side the game.One time and somebody ran into me and
they called me Napoleon because I shovedhim back. Napoleon, he shoved him
back. I'm a I'm a commander'sfan. So we just got I think
Austin Eckler came over and then,uh, who's that Marcus? Marcus Mariota

(01:20:41):
they signed, So they're making afew. He was Tennessee. He here's
what the Eagles lost? Eagles allright, when Tennessee the Eagles on Eagle
Si man. But yeah, welove getting the quarterbacks that didn't work out
in the NFL. Giants are goodat that. Or they drive. They
draft people from Duke are really average. Well, we drift people from UNCRE.

(01:21:03):
They were thinking, what was itDrake May I think he's UNC And
then we had Sam Howell. Hewas from the A SEC quarterbacks. What's
going on? Why are we takingthe ac Sam Howe? That's a blast
in the past. Yeah, howabout they let Garoflo go from the Raiders
and now they have what some guyI don't know. Well, they used

(01:21:26):
to have a Derek Carr. DaredCarr went over to the Saints. Yep,
Saints, he's solid. How aboutCousins Atlanta one hundred and eighty million,
Kirk, he's been in the leagueI think twelve years. Yeah,
he was on this game one hundredand eighty million. He was on the
Commanders. He started out in theCommander one eight million. Yeah, you
like that was it. You rememberthat? Yeah, you like that?

(01:21:48):
Anyways? Stair we he digressed.We yeah, we we try to stay
away from sports, which is sporting, yep, stay away from politics and
religion most definitely sports probably okay,but uh but again this is uh,
this is a retirement planning show.My name is Nicholas dum a, certified
financial planner and professional plan consultant withthe Retirement Planning Group. Uh. Dave

(01:22:10):
Kopak is president. Uh. Someonewas doing hafe. Does that mean boss?
Someone was telling me to call himhafe? Is that boss in Spanish?
Oh? I don't know, noblastin all anyways. Uh. Dave
Copak Google Translator, president of theRetirement Planning Group, is down in Florida.
He's he's flying back today and thenhe'll be back in the office Monday.

(01:22:35):
So I told him this morning we'regonna have a seven am meeting.
He'd better be there. Artist,working man, show business. Yeah,
it was Dave. He works atAlabama, Florida, Syracuse. He's all
over the place. I would say, Malta starts, you name it.
He's all over the joint. Youknow. I don't feel bad for him,
though. Florida is a nice spot. To be right now, especially

(01:22:58):
the cold weather we've been having.I think it's supposed to always tell me
he's gonna snow on Tuesday. Idon't know if you well, I haven't
seen that today is supposed to be. I think there's a lot of parades
today, which is nice. Fiftyfive and Sonny as warm as it was
last week. But I'll take fiftyfive and Sonny. Yeah. Yeah.
But but anyways, we do havedrewry Elo on today. He's been talking

(01:23:19):
quite a bit about the the realestate market. I do want to talk
about adjustable rate mortgages a little bit. So if we could talk about arms,
I think that could benefit some folksout there. I think it's a
good it's a good strategy. Nowyou say, you say adjustable rate mortgage,
and for some people, a lotof people, it's fingernails on the

(01:23:41):
chalkboard, right, yeah, becausethey're always worried about the wood if what
if rates go don't don't go down? What happens to my payment? Uh?
So you got a lot of thewood IFFs. But I think adjustable
rate mortgage has got a bad nameback in the go go years, as
Dave used to likes to call it, you know the two thousands, you
know, two thousand to two thousandfive, where they had some crazy adjustable

(01:24:01):
rate mortgages that were obviously very detrimentalto consumers into the economy, and then
we had the mortgage meltdown. Sothose are gone and you can't associate the
traditional adjustable rate mortgages to what happenedin the two thousands. Nowadays, a
lot of strategies that we're putting forthwith our clients are a seven year adjustable

(01:24:24):
rate mortgage or a seven year ARM, which means it is fixed for seven
years. A lot of questions thatI get are, oh, I can't
do anything for seven years. No, you can refinance any time you want.
There's no prepayment penalties on anything thatwe offer. So that you know,
if someone if a normal rate todayis close to seven on a thirty

(01:24:45):
year fixed rate mortgage, and youcan get a seven year ARM AT's say
five and three quarters, five andseven eights in that neighborhood, you're saving
you know, on a four orfive hundred thousand dollars mortgage, you may
be saving a few hundred dollars amonth, all right, So if I
save three hundred dollars a month forthe next two to three years. That's
a pretty good chunk of change.With the intent that we all feel in

(01:25:10):
terms of a strategy standpoint that overthe next eighteen to twenty four months we're
going to see four and a halffive percent interest rates. When everything slows
down, the fit starts cutting andyou know, unemployment gets where they want
it to be and inflation gets wherethey want to be and they start cutting
rates. So so the strategy istry to get the lowest payment you possibly
can and then refinance in the nextyear or two. So I feel like

(01:25:31):
a lot of people over the thatanybody that got a mortgage last year or
this year most definitely will be refinancingover the next twenty four months when rates
come down. Another cost associated withthe refinancing. That's the only negative is
that the costs associated. But youhave to do an analysis. Typically,
I feel like if you factor inthe cost to what they're going to save
on a monthly basis, if theycan get their money back two three years,

(01:25:56):
they plan on stay in the houseobviously five to seven years, what
have you, then it makes sense, makes financial sense. But that's an
exercise that we go through, meaningall right, if the closing costs are
five thousand dollars and you're saving threehundred dollars a month, you can do
the math and all right, I'llbe ahead of the game in twenty two
months, twenty four months, whateverthat number is. And if you have
to ask yourself that hard question,do you think you're gonna be in the

(01:26:18):
house three years, five years,seven years, then it makes financial sense.
Yeah, you think you're going tosell the house in a year or
two then now yeah, And itgives you the flexibility to lower your rate.
You know, you lock in thatmaybe seven years sable rate and then
yeah, rates come down a littlebit your refinance, maybe cut another percent
or two off your your mortgage payment. It's going to add up in the

(01:26:39):
long run. It's gonna save youa lot in the interest payments. So
and I always feel in New YorkState because obviously, like everything else,
we have more expensive closing costs.We have New York State mortgage tax,
which Florida has a similar version,but we're one of the handful of states
that have mortgage tax or what haveyou. So you really have to think
if you can get a at leastone percentage point below what you currently have,

(01:27:02):
then it makes sense to look atrefinancing and believe it or not,
though, even with rates where theyare right now, we're actually doing quite
a bit of refinances because of whatwe alluded to earlier with the credit card
debt. People have an enormous amountof equity in their houses right now,
and their personal balance sheet might bea little out of balance because of the

(01:27:24):
credit cards, a slowdown, maybean income, their hourly wages, their
work week, all that stuff wespoke about earlier. So they're finding it
harder and harder to meet and makeends meet, so they're putting money on
credit cards. Now that's building,and so there are some people trying to
refinance right now. Advantage equity.Try to save a thousand or two thousand
a month with their credit card paymentsor five hundred a month whatever, and

(01:27:45):
be smart of course going forward.All right, I just save five hundred
dollars a month. I'm just goingto live closer to the vest or maybe
you know, send you the fivehundred a month. Which is the really
smart thing to do is is takewhatever savings that you have and sock it
away, whether the kid's accounts oryour retirement account or your little six month
emergency savings account. You know,if you're going to refinance and use the

(01:28:10):
equity in your home to improve yourcash flow, take advantage of that and
do something smart with it. Don'tgo by jet skis and snowmobiles and things
like that. That's the worst thingyou could do. But sock it away
and then you have that little poolof money growing outside of the house.
Yeah, it's important to have liquiditytoo, so build that savings account up.
If you're someone struggling with credit carddebt, you want to make sure

(01:28:32):
that once you get that paid off, you start saving in some sort of
savings account or even just your checkingstart loading up on cash. I've told
people kind of getting closer to retirementas well, you've been contributing to retirem
accounts your whole life, built upa sizable portfolio. At this point,
maybe it's time to start building thatthat bank account up. Yes, you're
not going to get much of aninterest rate, you know, in the

(01:28:55):
savings or the checkings, but havingsome liquidity there when you enter retirement kind
of figure out what your spend levelis going to be. But but no,
that's kind of beside the point Iunderstand. I mean, I could
see people refinancing to try to payoff their credit cards, looking at very
high percentage rate that you're paying onthose So get that off your back.
Stop paying those interest payments that yourcapital want or whatever discover or your MX

(01:29:19):
card Taylor Swift supports them. Thoseare the worst. I don't know.
I don't have a capital want acard, and I don't want to bash
him, but my clients always seemslike they're complaining about that one the most.
I'm like, well, you gest, Samuel Jackson, He's not working
for free. They're gonna make itback somehow. We got Bob from Rotterdam

(01:29:42):
calling in, Bob, how areyou today? Good morning, Good morning.
Got a quick one here. Iwas listening to the story about the
lady who had sold her house,put the money for the new house,
and got to reverse more from thebank. Can you explain how that finally

(01:30:02):
ends up? Does the bank endup owning the house after she passes away,
or what's the procedure at the endof that story. Yeah, that's
a common thought, and it's it'sso to keep it down and simplify it
to its smallest of terms. Areverse mortgage is exactly like a regular forward
mortgage, except you do not haveto You are not required to make payments.

(01:30:27):
That's the only difference. The houseis still yours, it's still deeded
in your name. You can sellit any time you want when you pass
on. You know, this ladysells a house, say for six hundred
thousand UM, and she always saythree hundred thousand. She's got three hundred
thousand dollars in equity that will eitherbe hers if she sells, or be
her errors if she passes on andthey get the house. So it's still

(01:30:50):
your house. Still got to maintainit, pay the taxes, insurance,
all that stuff. You just don'thave to make a mortgage payment. And
I do get some clients that actuallywill continue every now and then making a
mortgage payment just they like that mentalfreedom of not having to make a mortgage
payment if they don't choose to.So the difference is, you know,

(01:31:11):
the the interest the cruise on thebalance. So if you start out with
say two hundred and forty thousand,like in this example, over some time
that balance could go to three hundredthousand and three fifty because the interest is
are cruing. But the difference betweenwhat's worth and what she owes is your
equity, So that lowers your equityin the home. Correct. So then
at that point, if she passedaway, they sell it, then they

(01:31:32):
get a lower amount than she hadinitially called negative amortization. But it's still
her house. She can do whatevershe wants, so there's no prepayment penalty.
She can pay it off, shecould sell it, she can do
whatever she wants. It's still yourhouse. But that's bob. The only
difference is one you have to makea payment and one you don't have to
make a payment. Everything else isthe same. That's fantastic. Yeah,

(01:31:55):
it'sat It's a great tool. Wedon't hear about it a lot with purchases,
but I'm starting to see it alot because a lot of seniors you
have to be sixty two and over, are selling their houses right now,
trying to downsize or get that twostory home, get into a single,
a one story, or a ranchhome. They have a tremendous amount of
equity in the house, their houseis paid off, but they're finding downsizing

(01:32:17):
doesn't mean the cost is going downbecause obviously a lot of costs have gone
up, so they're getting a smallerhouse for the same or greater money.
So they're taking the equity from theexisting house, putting down maybe fifty percent
on the new house, banking theother fifty percent, and then still not
having a monthly mortgage payment on thenew house. Thank you very much for

(01:32:39):
that explanation. I appreciate it,and I'm sure a lot of other people
will too. Thanks a lot.Yeah, and if you reach out to
the Retirement Planning Group, I didleave some packets there, even though Nico
hasn't seen them. I did leavesome packets there that will give you the
a's and b's and c's of reversemortgages and how they work with either a
refinance or a purchase. That dispelsa lot of them myths and misconceptions.

(01:33:00):
But that's that's a popular one,Bob, So I appreciate the call.
Yeah, thanks, Bob. Ihope you have a great weekend and enjoy
your Saint Patrick's Day. Yeah,that's a that's a great question as far
as so if you take a reversemortgage, you know your equity starts decreasing
in the in the account. Whatwhat happens once that hits zero. If

(01:33:20):
that hits zero, you have nomore equities. So let's let's assume the
worst case scenario. Yeah, andback back ten to fifteen years ago,
that was common because back ten fifteenyears ago, they didn't have the safeguards
that they have now, and everyverse mortgage sometimes would go. I used
to do it in my head interms of what they would they would lend
back then, and if you wereeighty, they would lend seventy. If

(01:33:43):
you were ninety, they'd lend eighty, If you were you know, seventy,
they'd lend sixty percent of the value. It was always about a ten
percent difference. Now those are nothappening. The max they will lend you
is fifty percent of the value,so they're trying to preserve that exact issue.
Then that's the equity and the home. So they're only lending between forty
two and fifty percent as a maxon today's reverse mortgages. So but let's

(01:34:08):
assume you did take one out tenfifteen years ago, and that's on the
home value, or that's on theequity you have in the home. That's
the home value home. So they'regoing to do an appraisal yeah, and
they're going to say, all yourhouse is worth one hundred thousand, the
most we're going to lend to youis forty five percent of that or forty
five thousand. So that's that's themath equation in today's world. Back then,

(01:34:28):
if you had one hundred thousand dollarshouse, they may lend sixty seventy
eighty percent of the value. Andyes, you would get into those situations
where the interest would accrue and youpass on or go to sell the house.
There's zero equity in the house.And what they did, you're still
One really key feature of this isit's a non recourse mortgage. So let's
say you owed one hundred and tenand the house is worth one hundred,

(01:34:51):
you are not responsible for a pennyover what the house is worth. Actually,
they even scale it back to ninetyfive percent so that you could sell
it and pay the real when theygo to sell the house. We've got
rich from Troy Rich. How areyou today? Hi to refa good morning,
gentlemen, good morning. How canwe help you? Yeah, considering

(01:35:14):
purchasing treasuries and for tax benefits,do you think it's more advantageous to purchase
the system and of roll over IRAversus like an individual unqualified account. I
mean, clearly, within the IRA, you're not going to have to pay
tax when those Treasury bills mature.It's just when you pull the money out

(01:35:35):
of that IRA account. Whereas ina non qualified account, as you mentioned,
some sort of individual account, ifyou buy a treasury less than a
year, then you just pay whenit matures. I think longer there might
be some phantom interest going on.But again I would in the IRA,

(01:35:56):
that's going to give you more benefitbecause you're not paying when those Measury bills
come to maturity. So does thatanswer your answer your question? Rich?
Yeah? From what I read online, it seems like when you make the
withdrawal from the ballover IRA a regularIRA, uh, it's that tax at
an ordinary rate, which might bemore advantageous than otherwise too. And non

(01:36:21):
qualified account, Yeah, I meanany withdrawal off in an IRA, that's
going to be taxes ordinary income,right, because you're taking income off money
that you deferred. So depending onyour income level, when you're taking these
distributions off your IRA, that's goingto break down how much you're going to
on tax. But yeah, Imean if you're in the twelve percent federal

(01:36:43):
You know your twelve percent federal taxbracket, then you're only going to pay
twelve percent, so it might makesense, you know, versus the fifteenth
or even if you're retired and youdon't have earned income anymore. Yeah,
exactly, maybe you're only taking yourSocial Security and you're in a lower tax
bracket at that point. So yeah, no, I tuned in a little
bit late today. If you guystalked about treasuries and what your take has

(01:37:06):
been on them lately, Yeah,I think treasuries are are still strong.
I mean you can get five percentfor one year as of I think Friday,
I was just buying some more treasuries. You could do a six month
is still getting about five point threepercent annualized, So five point three on
the six and then a five onthe one year. I mean, uh,

(01:37:27):
if rate to stay flat, youcan get an annualized return of somewhere
around five two five to one.So yeah, I think treasuries are still
a good spot that the ten yearsat four to two or four to three.
So uh, if you want tolock up money for an extended period
of time, you can do it. You can get four four and a
half percent for multiple years. Soyeah, I'm very Uh, I'm bolish

(01:37:49):
on on treasury bills. I don'tthink everybody anybody's ever said that before.
Right, you haven't had that opportunityin so many years. So well to
thank you both. It's a terrificshow. I appreciate it. Yeah,
no problem, Thanks for listen.Yeah, thanks for calling in. Enjoy
your weekend, Enjoy this beautiful weather. I was looking at the weather.

(01:38:10):
By the way, I'm gonna beI'm gonna Tuesday is fine. I'm scared
about going in the parking lot becauseof the most because of the elk caribou.
So was it the mountain lion Maybe, I don't know. I don't
know they are in this area,you know, really the mountain lions.
I think there was a spotting lastyear over across the river from Mechanicsville.
We have some wolves, I thinkwhere we are, I always hear them

(01:38:32):
sometimes. I have two little dogs. Wants ten pounds and one's four pounds.
They're gonna do some damage. SoI let those out back, and
I'm always a little nervous. Yeah, well, you gotta watch out for
the eagles too. Eagles. Wehad a had an eagle nest of eagles
a couple of summers back, anduh, I was a little concerned because
you hear them squealing, you know, all the babies in the nest.

(01:38:54):
They would snatch up my four pounddog in about two seconds. Yeah,
so four pound dog. What doyou? A toy Yorky a Yorkie.
Yeah, and believe it or not, I've had one hundred pound labs over
the years. This is like myfavorite dog ever. It's I don't know
why. I never thought it fitlike your hand. Yeah, a little
tiny thing. That's the best.That's uh, that's great. Yeah.

(01:39:16):
Yeah. My parents just got awhat is it a Pomski, a Pomeranian
and a husky. Oh yeah,he's about I think he's about ten maybe
eleven pounds. But he's cute.He looks like a husky, and he's
the size of a Pomeranian. Yep. But uh yeah, we always used
to I used to have Alaskan Malamutes. So I grew up with one hundred
and twenty pound dog. Oh yeah, you know, and his sister has

(01:39:38):
two of those. Uh those Englishmastiffs one hundred and seventy five pounds.
He's got two of them. Wow, they're like they're like lions and tigers
walking on the rock around there.Hey, that's what was walking around in
the parking lot. Yeah, butanyways, yeah, this is is a
Collin show. We had quite afew costs today. So again, thanks

(01:40:00):
thanks to our audience for calling in. I've had Drew on here with me,
so thanks for coming in today.Drew, good stuff. It's more
enjoyable with you. Well, thankyou. Yeah, I appreciate it.
Dave. Hopefully Dave's listing. No, he's probably in the air right now.
I'm assuming his plane is taken offand he's on his way back and

(01:40:20):
we'll be back up and everyone inthe office next week. Chris Kopec was
out too, he was down inthe Bahamas. Nice. So we'll have
a full office again starting Monday here. So I'm excited. And uh yeah,
we've had a lot of great appointmentsover the last couple of months.
It's been a good year so far, a lot of new people. I

(01:40:40):
think it's going to be an interestingyear for you, and not year,
but years for you guys. I'veread something the other day about the transfer
of wealth between say, my generationto our kids generation. The money that
generation be the richest generation of alltime. I think it was what's seven
eighty trillion? Yeah, read amountof money transfer to the millennials. And

(01:41:05):
there's a lot of money out there, and kind of how are we going
to transfer that money? You know, are we gonna leave a taxable inheritance
or we're gonna try to create amore tax efficient a state. But yeah,
I mean, there's gonna be alot of money in the younger generation's
hands here over the next ten twentyyears. So now I'm optimistic about the
younger generation. I feel like versusthe baby boomers, who spent everything they

(01:41:30):
could get their hands on. Forthe most part, the millennial generation,
which skips over me. Of course, millennial generations seems like they're a little
more closer to the vest. They'renot into the big houses, the big
cars, the jet ski soomobiles,the toys, the motorbikes, you know,
a lot of that stuff that's depreciatingassets. Seems like they're more concentrated

(01:41:53):
on quality of life, having avacation, enjoying life, not being house
poor. You know, I've seentheir buying habits change. It's it's I
like it. I like it,and it seems like, you know,
when they come in the first timehome buyers, they have their paced up
W two's bank statements. They're allorganized, they have money in the bank,
they have good credit, you know, they're only their only biggest issue

(01:42:15):
I think is the student loan debt. For the most part, they're not
racking up credit card debt and personalloans and things like that. They seem
like they have their you know whattogether. They're being responsible, and I
appreciate it. That's my democratic Well, it's it's changed, I think,
And I don't know, maybe thatwas from the economic crisis of two thousand
and eight, two thousand and nine. I don't know if some funds,

(01:42:38):
some of them definitely experience that,because I think it goes to what forty
four down to maybe twenty four twentyfive. Yeah, I think it's like
twenty six or twenty seven now,because then you go into what gen Z
I think gen Z right, Butyeah, I mean a lot of my
peers, you know, kind ofstingy, you know, especially when we

(01:43:01):
go out to eat stuff like that, you're splitting the bill up evenly,
and oh, I've paid for thisand this and this, you don't pay
credit card roulette, pick one outof the hat, and we don't have
the guy who steps up and says, I got this one. Guys,
you know, everyone got this.I'm making a lot of money here.
Everyone pays their share, and uhyeah, there's there's gonna be a large
transfer of wealth here down the road. And hopefully they stay, they keep

(01:43:25):
the same mindset. You know,they don't see this money come into them
and then they blow it on youknow, the sports car and the big
house that has too many bedrooms,and they really, uh they're responsible with
the assets. But I see it. I see it so far. Not
not across the board, but Iwould say eighty ninety of them have a
whole different mindset. Yeah, soit's good to see. And if you're

(01:43:46):
someone who worries about that and andyour children receiving the assets, there's ways
to dictate how they're paid out.We talk about it all the time.
Through some sort of trust, puttingsome sort of either revokeable or irrevocable trust
on the estate, and you canmake specific dictations on how those assets are
paid out to your loved ones oryour beneficiaries that you're passing, whether that's

(01:44:11):
a monthly installment that they receive orsome sort of payout for future expenses such
as weddings or you know, firsttime home purchases and stuff along those lines.
So you can really customize how theestate is structured. And you can
also talk about tax efficiency, whichwe go through quite a bit, especially
for those folks with strong pensions,strong social securities. You might not be

(01:44:34):
looking at your retirement assets as aneed at this point, and you just
kind of see it as a legacy. Why are we leaving pre tax dollars
to the next generation when we cantake the time to spread the tax it
out over a number of years andpurchase some sort of second to die or
life insurance policy to leave a taxefficient estate. But wow, this show

(01:44:56):
went quick. Everybody. Thanks fortoo and thanks for tuning in to Andrew
I. Thank you again and everyonehave a great week. We'll be back
next Saturday. Thank you for listeningto the Retirement Planning Show hosted by Dave
Kopek, w G Wise Retirement PlanningSpecialist. If you would like to talk
with Dave or someone at the RetirementPlanning Group, call five one five eight

(01:45:17):
zero nine nine. That's five oneeight five eight zero one nine one nine
during business hours or visit RPG retiredot com. The Retirement Planning Group has
five convenient offices located in Albany,Malta, Glens Falls, Syracuse, and
Oneana. Tune in again next weekfor retirement planning strategies with Dave Kopek right

(01:45:41):
here on wg wi's Retirement Planning Show. The information our services discussed on this
show is for informational purposes only andis not intended to be personal financial advice.
The investments and services offered by USmay not be suitable for all investors.
If you have any doubts as tothe merits of an investment, you
should seek advice from an independent financialadvisor.