Retirement Planning Show

April 27th, 2024

Episode Transcript

(00:00):
Yeah. Live from the wgy iHeartStudios. Welcome to the Retirement Planning Show
with your host Dave Kopek from theRetirement Planning Group. Every week, Dave
and his team discuss the ways theycan help people make informed decisions about a
wide array of retirement planning information thatcan support you and developing a more certain
financial future for you and your family. Now it's time for Dave Gobec WGY's

(00:25):
retirement planning specialist. We've gotta takea little time and good morning, Wake

(00:48):
up, San Francisco. This isNicholastumas, certified Financial Planner with the Retirement
Planning Group. This is a retirementplanning show, doing this a long time
time, well, Dave has I'vebeen doing it for about six seven years
here on the radio now so butbut again, it looks like we're gonna
get some some nice weather today.Hopefully you might find me on the local

(01:12):
golf course in Mechanicville this afternoon.But I've got a two family to clean
out after the show today, We'refinally going over there and rip up some
carpets, do a little painting,a couple door restalls, reinstallations here.

(01:34):
But but no, I'm excited toget to work today with my hopefully my
father makes it over there with me. He's still not snoozing over there,
and I'm sure he's up doing something. But yeah, we've got Chris McCarthy
on the show with me today,another advisor with the firm, new to
us as of a few months ago. Now, yeah, so yeah,

(01:57):
I'm excited for the show today.And uh, we had a good week.
You know, a lot of clientmeetings. You know, it's always
nice catching up with with clients,seeing what they've been up to. The
world spins, you know, theworld spins fast, and it's nice to
kind of just sit down and seewhat's been going on. You know,
kids are being born, you know, houses are going up. People are

(02:22):
buying houses in three hours. Butagain it's if yeah, if not too
and and no, it's just greatsitting down seeing where everyone's at, how
cash flow is going. You know, we help both pre and post retirees
with retirement planning. But uh,that plan changes over time. You know,

(02:45):
it's never the same. It's nota linear type of retirement plan.
It's a constant, ever changing plan. So you have to come back to
that and make sure cash flow issufficient, and if any one time it's
spences pop up, you need toplan for that. You know, which
account am I going to take itoff of? How am I going to

(03:05):
deal with the taxes? If youhave a lot of pre tax assets,
which majority of the folks out there, maybe eighty eighty five percent of their
net worth is are there in afour oh one K deferred comp four oh
three B some sort of pre taxaccount, and you have to come up
with ways to limit that tax liabilitywhen you're pulling money from it. So

(03:25):
a lot of times when when peoplego into retirement, you know, we
start looking at setting up an incomeplan and where's that income going to come
from on a monthly basis. Youknow, you've been working your whole life
receiving a paycheck maybe weekly or biweekly, and now that faust's going to
stop leaking, and now you gotto come up with ways to solve that

(03:49):
income need in retirement and make sureyou're not eating ramen. So so we
do a lot of work with portfoliodesign. You know, we work with
Fidelity. They're the bear behind usand they're able to help us navigate this
ever changing market. You know,I mean, we had a pretty good

(04:10):
week in the markets. Actually,even after that slump on Thursday, the
SMP was up about two point threepercent. So the S and P five
hundred, or of a broad basedin in decks was up about two point
three percent over the five day yearto date, it's up about seven and
a half. Got the Dow,it was relatively flat this week year to

(04:32):
date, up about one and ahalf and then tech or your Nasdaq INDECKS
was up about three and a halfpercent on the week, and then year
to date we're up about seven pointeight percent on the NASDAK so so got
a little run. Some reports cameout this week GDP slowed, so I
think that's kind of caused that Thursdayslump. But we had a nice little

(04:55):
bump on Friday. So but again, I mean we've been talking a lot
about bonds. You know, bondsyear to date are down about three and
a half percent on average, Soif you look at the aggregate bond index,
that's what shows us this. Andthe nice thing is the yields are
kicking off right now. You know, you can get six, seven,

(05:17):
even seven and a half percent onsome of these high high yield fixed income
funds. So there's opportunity out there, you know, in the fixed income
space, and I'm excited to seeit. The ten years up to about
four point seven now, so theten year has been increasing this year.
It was at about five I believeat the end of twenty twenty three,

(05:40):
came back down a little bit,but now it's back up. So so
again there's a lot of fixed ratesout there. You look at the one
year Treasury bill, you can getfive point two percent, so five point
two percent on the one year andthe six months getting an annual or an
annualized yield of about five point fourpercent. So we've been looking at a
lot of multi your products too,you know, multi year guaranteed annuities m

(06:03):
y gas. Right now, thethree in the five year, I mean
I think the three is around fourand a half, don't quote me.
Again, that's as of today,and the five years at about five,
so you still get five for five. I know, if you're someone that's
nervous over the next maybe a yearhere, I mean, we do have

(06:24):
an election coming up in November,there might be some volatility in the market
here, So if you want totake some wind own of the sales,
you know, there's options. I'vebeen having a lot of conversations with folks,
especially those two to three years outwe're just entering retirement. You know,
you need to start looking at whatmakes the most sense for your portfolio.
You know, if you're relying onsocial Security and you don't have pensions,

(06:47):
so you got social security and yourretirement assets, you can't take a
twenty twenty five percent adjustment on yourportfolio. And that's what we try to
show folks. So has been ina lot of appointments with me. He's
been the robbin to my batman.There you go, enjoyed every minute,

(07:09):
every minute of it. I kindof look like Bruce Wayne. Yeah,
which Bruce Wayne? You think yougot that swag? Is it like Ben
Afflac We'll go with that. Haveyou seen the Accountant? I did not.
I watched that one a couple ofweeks that it was pretty good with
with Ben Afflack the the accountant.But he's the numbers guy in that one.

(07:31):
He's multi talented. I'm sure,just just like you try look at
that. God, I gotta giveyou some compliments over there. But no,
you've been You've been a big helpto me, you know, when
I've got something we need to lookinto, You're always right at my desk,
So I appreciate, appreciate it.And I've learned a lot from you,
my friend. Well, I don'tknow what you what you learned.

(07:58):
Let's keep it positive. The Iwas looking last night. I was going
through some articles just to kind ofsee what the feel is for for rates
this year. You know, wherepeople thinking, where people think they're heading.
I was looking at the Mortgage BankersAssociation. They came out with an

(08:18):
article and for the first quarter,mortgages were around six point eight, so
six point eight percent pop. We'reout here taking on very high interest rates,
you know, I say very high. But then I also talk to
people who took rates out in theeighties. They took mortgages out, and
that was at a point where you'relooking at maybe north of ten north ten

(08:41):
percent on a mortgage. But no, they're they're thinking by the fourth quarter
this year, mortgage rates down tosix point one, So that was their
estimate by the fourth quarter. Iwas looking at the federal funds rate right
now, they're target still five anda quarter to five and a half.
Some reports are saying three by theend of twenty twenty five, so that

(09:03):
would be about a year and ahalf from now. But I don't know
if it's gonna get that low.You know, you kind of compare this
to the eighties a little bit.You know, we had a lot of
inflation, we had increasing rates,and the markets still performed pretty well over
that time frame, which was whichwas interesting to me. You know,
you've got this, you've got theserisk free rates over here kicking off maybe

(09:26):
nine ten percent, and people stillwant market exposure, you know. So
it's a very interesting world. Again, we're in a completely different time frame
now that was what forty years ago? What does it feel like this yesterday?
Uh? Yeah, it does,to be honest with you, I
mean landscape has changed quite a bitover the last forty years. Yeah,

(09:50):
I totally agree with you. Likeback in the eighties, you know,
we were just coming out of theseventies high inflation over a lot of high
interest rates. People used to bragit about their CDs being fourteen fifteen percent.
The sad thing is, on theutter ended a spectrum, inflation was
up around eleven or twelve percent.So you know, you can't have one

(10:13):
without the other. But I thinkThere was also a lot of excitement in
the eighties when they dropped tax bracketsso on and so forth, so people
were able to retain more of theirspendable dollars and gave them opportunities when to
put into four one case and traditionalirays. Eventually, the roth iray came

(10:35):
on later on. I think wesaid in an ninety eight in the nineties,
right, But today, yeah,we're faced with a lot of I
think volatility. I've learned a lotfrom you and Dave over the time that
I've been with the firm, andI think we have to take everything into

(10:56):
consideration. And like you said,when we're people to get into fixed income,
maybe still having some market exposure,but where's your money best put today?
Exactly? And it's like we havea caller, who's this Dave from
from Florida. Hey, one andonly, how are you doing today?

(11:20):
How can we help you? Well, I wanted to chirp in and just
let you know it's going to onlybe eighty five down here today and that
I'm sitting here staring at the oceanand it's picture perfect, picture perfect.
Now I know why people live downhere. Now I know why people live

(11:41):
down here, I would I'd hateto be you. Let me tell you
eighty five and sounds awesome. ButNico, I was listening to the show
and you said something that I wantedto interject that I think is extremely important
and just so you know, youknow this opportunity now, the FED is

(12:07):
not cutting rates as aggressively as alot of people thought they were going to.
And I read an article this morningin Barns on the fixed income side
and they were basically saying, youknow, the opportunity has opened itself up
again for a lot of people thatare looking for coupon or yield. And
I think that you just said it. You know, you can get a

(12:28):
guaranteed rate right now for five yearsfor over five percent. Investment grade in
corporate bonds can get you around sevenpercent. So for people that missed the
opportunity, that didn't have the opportunityto get in and lock in some of
these higher yields, you know,ultimately the FED will cut rates, which
will be extremely advantageous for individuals.It's probably probably a good time to look

(12:52):
at your fixed income portfolio and lookat opportunities that might have not been available
to the later art of last yearthe beginning of this year. Yeah,
I agree with you. And we'vehad what five consecutive hold studies by the
Fed. They got another meeting thisweek on Wednesday. But yeah, the

(13:13):
last hike was I think July oflast year. But yeah, I think
what you're going to see, NKOS, You're going to see the it's not
as much. I don't think there'sany anticipation that they're going to do anything
with rates at this meeting. Butthe anticipation, of course, is the
verbiage, what they're going to say, and what Powell's going to do,
and is you know, meeting whenhe you know, sits and takes questions.

(13:35):
So, uh, I know alot of people right now are entering
into retirement. What is the moneymarket paying right now? Over what do
you we stole about five percent ofthe money market accounts. Yeah, we're
just over five percent still in themoney market. Yeah. I think it's
a great opportunity for people, youknow, sitting out there. They might

(13:56):
be waiting to purchase a home,you know, or or start build building,
but everything's so expensive. Rates arestill high, you know, so
they kind of just have cash maybesitting in the bank. It's a lot
of lost opportunity right now with whatyou can get on the other side,
you know. But here's here's anotherWell, you know, I'm down here,
I'm looking for something to buy.And you know, the thing is

(14:18):
is that Julie and I are goingto spend a little bit more time down
here in the winter months, goback and forth. We have a lot
of clients in Florida. But thething is, here's a number that you're
going to find probably staggering, youknow, Chris, the zip codes that
we're looking for. A year ortwo ago, you would be looking for
a house, you'd be hard tofind one for sale. Right now,

(14:39):
there's over thirty five hundred houses forsale down here. I've never seen so
many for sale signs in Florida.And I think it's a combination of a
couple of things. The higher rates. Some people have just said, I'm
not going to go through an Ianevent again, another hurricane like we did
before. So for people that arelooking for properties in Florida, the reduction

(15:01):
in some of these prices have beenfairly substantial, fairly substantial. So are
myself, are you on the westor the East coast? Yeah, no,
we're on the Gulf side. David'sactually my son is in real estate
down here. He's actually taken ustoday for a couple of appointments. So
the thing is is that we're lookingsomewhere between Sarasota and clear Water. That's

(15:28):
kind of a sweet spot for us. We have a lot of clients over
here on this side of it.But also it's close to seventy and seventy
two the route, so I canget over here fairly quickly if I need
to get over here. So youknow, you should, you should talk
to Mike. You should talk toMike down there. Yeah, I know.
A matter of fact, I'm goingto talk to you off air about
that because I'm curious about that conversation. But I want you guys to know

(15:52):
that I'm you know, I haven'thad the chance with you and with Chris
together. You know, we're soproud to have Chris part of the team.
He's made a big difference in theoffice. So I want to say
publicly it's good to have Chris McCarthyand I look forward to getting back.
I fly back tomorrow afternoon, andI'll see you guys Monday morning, seven
o'clock. See you at the office. You got it? Thank you?

(16:15):
All right? All right, ChrisGod bless guys, good too. Good
luck today. Don't spend too muchmoney. Yeah, so day's down in
Florida. But I'm excited. Ireally want to break out the golf clubs.
Have you taken any hacks so farthis year? I have not.

(16:37):
I have not. I got toget back into my groove of loving the
game. The game has not lovedme. It doesn't love you, butits
well, like I said, youknow my favorite thing. I love you
know. I'm happy to be there. But people love to feel better about
their golf game when they see mewith them. Yeah. See, see
that's gonna be nice. I'm gonnaask Jim to golf with you. But

(17:00):
I'm sure you're probably pretty good.You seem like a humble guy. The
league's starting up soon, or golfOur Thursday Night Golf League. I believe
it's the sixteenth is when it's startingup. But but yeah, I've I
have a few clients. I wasspeaking to their league start a little earlier,
so I think one starts on thisWednesday. I was talking to them,

(17:23):
so so now it's last minute.I gotta get over there and start
chipping button. I gotta get afeel for that golf ball again. But
Zach, we run it up ona break, all right. If you
want to call our office, numbersfive eight, five eight zero one nine
one nine again, that's five oneeight, five eight zero one nine.

(17:45):
We offer a complimentary consultation, soyou come in talk to us. We'll
send you a questionnaire booklet you kindof fill that out bringing to the appointment,
sit down and go through it withyou, kind of get a feel
for what you got and see ifwe can be of any assistance. And
that numbers five one eight five eightzero one nine. We're going to take
a break. We'll be back rightafter this. The eighty six percenters,

(18:07):
do you know that eighty six percentof the population has no defined benefit pension
plan. For most of us,we have to take our life savings and
create a paycheck for the rest ofour lives in retirement. What is your
plan for retirement income distribution? Howyou manage your assets during the most critical
years of your lifetime. Nobel Prizewinning economist William Sharp has called retirement income

(18:27):
distribution the nastiest, hardest problem infinance. He points out that investment uncertainty
and mortality can derail the most carefullaid out retirement income plan. Call our
offices today to start the process ofbuilding a retirement income distribution plan. After
forty one years of being in thefinancial services business, you need to start
taking action to start building your ownpersonal retirement income distribution plan. How do

(18:52):
you do that? To take actionfive one eight, five eight zero one
nine one nine. That's five oneeight, five eight zero one nine one
nine, or our retire on theweb. Don't procrastinate, motivate to start
building your retirement income distribution plan fiveeight five eight zero one nine one nine.
Will you run out of money inretirement? Will your investments provide income
for possibly decades? How do younavigate the two greatest risk in retirement sequence

(19:15):
of returns in longevity at the RetirementPlanning Group. Our Bucket of Money approach
addresses these concerns and we offer acomplimentary consultation to discuss this with you.
Call our office today for a freecomplimentary consultation to develop your own personal retirement
income distribution plan at five win eightfive eight zero one nine one nine.
That's five wine eight five eat zeroone nine one nine. If you have

(19:37):
any questions, call in now atone eight hundred talk WGY. That's one
eight hundred eight two five five ninefour nine. One eight hundred eight two
five five nine four nine. Weare here live in studio, ready to
answer your questions. Baby with aWorm live. I can feel you watching

(20:15):
him nine one eight hundred eight hundredeight two five waiting fifty nine forty nine.
And that's one eight hundred eight twofive fifty nine forty nine. If
you want to call in this morningagain. We do the show live so
folks can ask questions. I'm sureyour question will help out other people out

(20:41):
there that might have the same questionon their minds, so feel free to
call in again. That's one hundredeight two five fifty nine forty nine.
You could also call our office ifyou want to leave a message. I
don't believe anyone's there today. Thenumber is five one eight five eight zero
nine. We have a website aswell, rpg retire dot com. Again,

(21:04):
that's rpg retire dot com on theweb. If you want to,
you can see our faces on there. I think are all our bios are
on there also, so feel freeto check it out. We've got some
articles. Usually we have a calculatora video, so it's kind of informative
on there. But again, ifyou just want to have a conversation,

(21:26):
feel free to give us a call. So before the break, Dave called
in. You know, we're talkingabout Florida a little bit, but I
do want to get into some fourh one k options that might be available
to folks. I think we're gonnaget that. We're gonna get into that
in the second half of this hour. It's brought to my attention that a

(21:48):
lot of plans out there might havehigher contribution limits than what you think might
be the might be the limit.So I want to get into that after
the break, but I don't thinkwe have enough time to really dive into
the weeds. So uh So again, I just wanted to talk about where
rates are right now. You know, interest rates are are pretty high.

(22:08):
You know, we're at about atwenty two to twenty three year high.
I was looking at the graft butit just shows I mean, in the
eighties rates were up what almost atwenty percent, fifteen to twenty percent at
one point in the early eighties,and uh everything was still motoring. You
know that the markets, I actuallyprinted out an article and I was looking

(22:30):
through it. The market during theseperiods of high interest rates actually performed relatively
well. So again, you alwaysneed growth exposure in a portfolio, unless
you're someone that's one hundred percent incash or on the sideline or conservative when
it comes to investing. So youneed that market growth. I mean,

(22:52):
inflation's hot and they're telling you it'swhat three point eight four percent right now,
But you see it. I meanwhen you go out, when you're
filling your tank. I've got agas guzzler of a truck and every time
I stopped. I stopped last night, I think I put sixty bucks in
it got half tank and I wasable to get home. Well that's a

(23:14):
good thing. And no, it'sjust a lot of prices out there have
risen, you know. You seeit at My friends always joke about McDonald's.
You know the dollar menu. Nowit's a three or four dollar menu,
you know. So a lot ofprices out there increasing. So you
want to make sure that you're yourdollars aren't sitting in the safe or sitting

(23:38):
under the mattress. You want somegrowth on those dollars as well. And
right now, you're getting rewarded forit. You know, we were in
a big borrower's market over the lastten to fifteen years. You know,
interest rates were down to relatively zeroat one point there. So now we're
more in a savers type of environment. So if you have money in the
bank, you could look at CDoptions, you can look at money market

(24:00):
rates and actually get rewarded for havingthat dollar amount saved up. You know,
credit cards are are huge issue outthere right now. No I was
watching a gentleman discuss kind of debtand what people's goals should be, you
know, and and number one wouldbe getting those credit cards paid off.

(24:23):
You know, set yourself goals.So it's a three step process in this
video that I watched. Number one, try to save up one thousand dollars.
You know, if you're someone that'sbehind on bills and credit card debt,
try to save up a thousand dollarsin your savings. Number two,
pay those credit cards off. Sotry to work on getting those credit cards

(24:44):
paid off. Start at the highestinterest rate, work your way down to
the lowest. And then number three, try to get that one thousand up
to ten thousand. So start saving, start socking. Money away. No,
it might be difficult for a lotof people out there, but just
set short term goals for yourself andit's nice to see you reach those milestones
and kind of carry some momentum.So but again we uh, we are

(25:04):
running up on the half hour,so we're gonna have to take a break
here. I'm gonna go fill upmy coffee a little bit. But if
you want to give us a call, it's one hundred eight two five fifty
ninety nine. Everyone, We're gonnatake a break. We'll be right back.

(25:34):
It comes some, it comes,so I say it's all right,
it's be new Win and we areback. I could let that one play

(25:59):
for It's foldation. That's a goodsong. The Beatles. I just I
just got into him a few yearsago. The Beatles, great music.
What did you use to listen toin the day? Are you a rock
guy? Oh? Yeah, rockand roll? Yeah? I was blessed.

(26:19):
I got to see Queen the conceptfour times you had a Mustang back
then I did sixty nine Mustang.You saw a Queen, I saw a
Queen, the Galileo saw Freddy.Are you going to do the Galileo?
No? You got it? No, I want the listeners to stay on
the show. Someone said it soundslike we're just sitting at a table.

(26:42):
It was it was Rosemary. Shesaid when we were on the radio,
she feels like she's just sitting atthe dinner table with us. Hey,
we love making people feel comfortable.That's that's the goal. I mean,
that's the goal of the show.We're not here to force your car,
force you to call in. We'rehere to educate folks. There's a lot

(27:03):
of people out there that if workedhard, you know, they've saved up.
We've got a sizeable four A oneK or deferred comp or whatever they've
been contributing to a lot of peopleI've seen recently have had nice sized Wroth
accounts, which is great to seethat type of account because a lot of

(27:25):
advantages in retirement, you know,start building up that Wroth bucket. And
there's actually something that Chris and Iwanted to discuss today about WROTH accounts and
how you can take advantage of themwithin your four to one K if if
the plan allows it. You know, each company has a different Summary Plan

(27:47):
Description, so SPD that's a documentthat relates to their four to one K
or deferred, well not deferred compit relates to their four to one K
plan through their company. So againwithin this SPD, there might be guidelines
that allow you to make extra contributionsthat you might not be aware of.

(28:08):
So a lot of people think,you know twenty three thousand, you know,
twenty three thousands the limit, that'swhat I could put into my four
roh one And then for folks overfifty thirty and a half, so thirty
thousand, five hundred would be withthe catch up contribution you know, and
you can do you could do bothbefore tax and WROTH or after tax contributions

(28:32):
to hit that limit within the fourroh one K. But there's also through
I believe it's rule four fifteen iswhat this gentleman was describing when we had
our conference call last week. Excuseme for that coffee is a little warm.
There's a non WROTH or after taxtype of contribution where you can contribute

(28:57):
up to another fifteen percent of yourcompensation. So the maximum for these types
of four toh one ks. Soif this four to oh one k after
tax account is available to you couldbe up to sixty nine thousand dollars the
maximum limit on those after tax contributionsbeing about thirty one thousand. So this

(29:21):
could be very advantageous for folks who'vekind of procrastinated, you know, they
didn't have a lot saved in.They're making a lot of money, they're
spending it, you know, butnow they're at a point where they're starting
to think about retirement in seven oreight years. You know, they just
hit maybe fifty or fifty one yearsold, and now they really want to
start maximizing contributions. This is anaccount or not an account. This is

(29:45):
a contribution that you can make withinyour four to oh one k that allows
you to contribute a lot more intothe plan. So another thirty one thousand
potentially. Again that's based on acompensation of about three hundred and four five
thousand dollars. So Kain you dothe thirty thousand, five hundred plus the

(30:06):
company match. You know, soif you're doing thirty thousand, five hundred
yourself in the company's match, andlet's just say ten matche ten percent,
and you're making let's say two hundredthousand, so the company's putting in twenty
thousand, you're putting in thirty thousand, five hundred so that would be fifty

(30:30):
thousand, five hundred dollars going intothe plan. There's another eighteen thousand,
five hundred dollars that someone or actually, in this case, you're over fifty
because you're doing the thirty thousand,five hundred, so you'd be able to
do up to seventy six thousand,five hundred for that individual. So now
you're at fifty thousand, five hundredwith your contributions the company match, and

(30:53):
then you're looking at another what twentyfive thousand dollars that potentially could go in
there, you know, but you'reon to make it two hundred fifteen percent,
so you could do thirty thousand,so you can do that, you
can max it out, you know, so you could really get a lot
of dollars into the plan. I'vegot is that raj from Schenectady Warning,
raj Ight, good morning. Howcan I help you, sir? Yeah?

(31:21):
Is it possible to roll over afour h three B from a previous
employer to a four one K tomy current employer? Depends on what your
plan allows. So if your currentfour oh one K allows it, you'd
probably want to just open an IRAaccount, you know, for the four
or three B that would give youa lot more investment options. So you

(31:45):
take that fourth three B and whetherthere's ROTH or if it's pre tax,
you open an IRA or ROTH IRAand you get those dollars from the four
three B into that self directed individualretirement account. But but you might be
able to depends on the plan ifthe four one K allows it. Okay,

(32:06):
so is it just straight? Howdo I do? Is it just
the employer will take care of that? Uh? Yeah, so you would.
You'd have to call the current fourone K department right and ask HR.
So I would speak to HR overthere, or like I said,

(32:28):
you just open up some sort ofIRA account and then you call your old
you call your old four oh threeB company and then ask them what you
need to do to roll that intothe IRA. Great, thank you,
Yeah, no, prom RAJ.Hope you have a great day. You
do, you know, Nika wantedWe talked a little bit about this over

(32:52):
the break. When I started inthe business, the four one K was
much more of a simple I thinkit was a twelve thousand dollars that people
could put away. You know,back in the day. It's so nice
and refreshing to see how it hasexpanded so people can take advantage of greater

(33:15):
opportunities. And it's beautiful because itcomes right out of your paycheck and you
can do the pre tax, youdo the wrothy for one K. And
now this other avenue that you throughthe conference call shared with me this week,
and it just really opens a lotof avenues for people, yeah,

(33:37):
to save and a nice thing.I mean, you can contribute to this
after tax. So again it's nonWROTH, it's not a roth, it's
an after tax account within your fouroh one K. And we were talking
about this a lot of plans.A lot of these plans allow you to
take those after tax contributions and thenroll them into a wroth IRA. So

(34:04):
then you convert it from the fourto oh one K and then after tax
bucket into a wroth IRA. Becausewithin the four to oh one K,
if you leave it in that aftertax bucket, all of the gains or
all the market growth associate with thosecontributions, they're considered pre tax within the
four to one K, so allthe gains go to the pre tax bucket

(34:27):
within your four oh one K.You're not getting the benefits of a WROTH
just your contributions would be considered WROTH. You know even that it's an after
tax contribution, but those gains arenot considered. You're not getting the tax
advantages of a WROTH account. Sothat's why you make those after tax contributions
into the four to one and thenyou can open up a WROTH so a

(34:50):
wroth ira somewhere and roll those contributionsout each year if your plan allows it.
So again, I mean it's it'svery advantageous to folks who are also
also over that income limit you know, to where you can't contribute to a
roth ira outside of the four ohone K, right, you know that
the income limit for joint so ifyou're filing jointly, it's two hundred and

(35:13):
thirty thousand dollars is when the phaseout begins. Up to two hundred and
forty thousand is the cutoff. Soonce you get over that two hundred and
forty thousand, you can't contribute toroth. So you can't contribute to a
roth ira at that point, youcan still contribute to the WROTH foural one
K, so that income limits notgoing to affect you within the four to

(35:35):
one K plan. So it's agreat way to fund roth. You know,
if you're someone who's a higher earnerand looking for ways to get money
in there. A lot of peopledid backdoor wroth contributions in the past,
you know, the back door wroth. You contribute to an IRA, you
don't get the tax benefit, butyou converted into a wroth, right you
know. So there's opportunity out there. It's a it's a tricky space.

(36:00):
Know. I tell people all thetime. We meet with electricians, we
meet with plumbers, we meet withyou know, teacher. I mean,
I feel like I could teach alittle bit, but I tell these folks,
I'm not gonna I don't know what. I don't know my arm for
my leg when it comes to installinga light switch. But it is.
But this is what this is whatwe specialize in, right, So this

(36:23):
is what we know how to do. You you stay in your lane,
We'll stay in our lane, andwe'll try to get your your finances to
where they need to be for youto retire comfortably, you know. And
and E money does a great jobof helping us with that. So E
money is a tool that you've beenhelping us out with quite a bit.

(36:44):
I think you have people in therefor the next three months already. I
you do a great job with that, and I never have to worry about
people not being in the program whenthey're coming in because I know you're putting
them in there. But this eMoney software, it allows us to really
run forecasts on what your retirement yearsare going to look like, and what

(37:05):
your spend level is going to be, and where the sources of income are
going to come from. You know, people have pensions, people have Social
Security, people have retirement assets.A lot of times it's hey, I'm
scrolling too much, you know,when I'm on your Money and I'm looking
at the page and there's too manyaccounts all over the place. You know,
it's a good problem to have,but it's time to start consolidating.

(37:28):
You know, you've been contributing tothese accounts, You've been building up retirement
assets, but they're kind of allover the place, you know, and
if there's investments that are overlapping,you know, between accounts, it makes
it difficult to see when it's allspread out. That's why you need to
take all these various iras or oldfour to oh one k's or old four

(37:50):
h three b's and get them intoeither a traditional ira or a rath ira
and start turning those ten eleven ortwelve different accounts into one or two,
you know, and then and thenwe can really start working on an income
plan because we could see how theaccounts invested. At that point, we
utilize riskal eyes to help us withthe investment planning, you know. And

(38:13):
there's some portfolios out there that arekicking off seven point two but as a
weighted yield on the portfolio, whichis which is a very high yield.
Right now, we got Joe,Joe from Leatham. How are you this
morning? Joe, I'm good,Thank you for taking the call. Of

(38:34):
course, I just have a questionabout the four to one k Now,
you have to start taking moneys outwhen ye're what seventy three? Correct?
So it depends on yeah, soright now it's seventy three is when the
r rm D they changed it.Yes, eventually they're going to change it

(38:58):
back to seventy five, Joe,So I think in twenty thirty two they're
planning on changing it back to seventyfive. Okay, I doubt if I'll
be around man, But anyway,my question is what if you don't need
the money, okay, I meando you still have to take it out?

(39:19):
And if you do, can youput it somewhere else? What?
What are the laws as far asthat goes? Oh, my golf budget's
getting pretty high. I'll take itfrom you, Joe. No, I'm
just kidding. You do have totake them, you know, so your
required minimum distributions they start at seventythree. You can't so even like if

(39:45):
you did Roth conversions, those don'tcount towards your required minimum distribution or anything
like that. The only thing youmight be able to do we used to
utilize qualified longevity annuity contracts. Youcould set some money, okay, that
some money and do an annuity andthen those dollars aren't You're not required to

(40:06):
take an R and D off ofthem until I think it's like eighty five
is when you have to turn themon. Don't quote me on that,
but no, you do have totake your rm D. I mean there's
ways to plan for it. Joe. How old are you if you don't
mind me asking, No, seventytwo okay, so you're you're right,
it's right around the corner for you. When did you turn seventy three this

(40:27):
year or next year February. Oh, when's your birthday in February the twenty
first, Oh, when's the twentysecond? Your prices? Wow? But
no, so you actually, Imean so next year your arm deals start
up, so your required minimum anypre tax money, so it's not gonna

(40:52):
it's not gonna be any WROTH dollars. You don't have to take an rm
D on WROTH, but any pretax dollars. The government wants you to
start taking them so that they cantax you on it. But uh,
but again, I mean that thatfirst rm D, Joe, you actually
have until April of the following yearto take that. It's not something I
strongly advise because then you'll have totake two rm ds and twenty twenty six.

(41:13):
Okay, but but yeah, youdo have to start taking it out.
The first one will be about fourpercent. So you take that year
end value, You take that yearend value, you divide it by twenty
six and a half, and that'swhat's gonna give you your first r and
D. Okay, all right,well I appreciate it. Yeah, you
should come in and see us inknowledge. Maybe we'll we'll uh, we'll

(41:35):
celebrate our birthday together or something.Okay, right, thank you, all
right, Joe, you have agood Saturday. You choll bye bye.
Yeah. That's a that's a hugeissue for a lot of people out there.
You know, they don't need themoney when when they're required minimum minimum
distribution startup. Now he's right aroundthe corner. You know, he's gonna

(41:57):
have to start taking next year.But for other people, you know,
if you're ten years out, I'mtwelve, twelve years out, start planning
for it. If someone that haspensions so security coming in, got all
this pre tax money, I wantto talk about ways that you can convert
that more towards legacy at this pointafter the break, but if you want

(42:19):
to call our office numbers five oneeight, five eight zero one nine one
nine, and that's five one eight, five eight zero nine. My name
is Nicholas Dumas here with Chris McCarthyfrom the Retirement Planning Group. 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

(42:40):
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 lifetime.
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

(43:05):
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 fiveeight zero one nine one nine.
That's five one eight, five eightzero one nine one nine or RPG retire

(43:25):
on the web. Don't procrastinate,motivate to start building your retirement income distribution
plan five one eight, five eightzero one nine one nine. The greatest
risk in retirement. Most of ushave no plan for or insurance to cover
the expense. A long term careevent can impoverish a spouse, drain your
life savings and cost stress and anxietyon your family. What is your plan

(43:46):
and how will you pay for along term caravent Call the Retirement Planning Group
today discuss options you should consider toprotect your estate and have choices and independence.
Take action call today five one eight, five eight, L one nine
one nine or RPG retire on theweb. How many of them and we

(44:34):
are back? How many have wesing? How many can say that we
are back in the Beatles. Isaw a there was a movie. I
was watching the trailer and it wasabout a guy. So there was only

(44:57):
one guy who remembered all the Beatlessongs and the rest of the world.
It was like the Beatles never happened. So I watched the trailer. I
really want to watch it, butbut Kendra doesn't want it. Oh,
so it's a must one of thesemovies. One of these days. I
gotta I gotta watch that movie.If she's now, imagine that the Beatles

(45:19):
didn't happen, it's it's hard tobelieve. Well, it's hard to think
of them not happening. I haveone of my best friends in the world,
and she's an avid Beatles fan,and her and I listened to the
Beatles quite often, and it's it'samazing. It's amazing, the music,
the impact they've had on people's lives, the music industry and everything like that.

(45:45):
It's and they lived so many differentlives in the short period of time
that they were together, and howthe sixties was crazy and I was young,
but looking back and you see allthe changes is pretty cool. Yeah,
it's a different different world now thanit was sixty years ago. Oh

(46:07):
boy, fifty years ago. Butbut yeah, the what were we talking
about before the break? The aftertax I want to get back to that
because we had a couple of callersthere. It's good, We've we've got
a good show going. We gotsome callers today. Keep calling in one,
eight hundred and eight, two,five, fifty nine, forty nine.

(46:28):
Again it's a live show. Sowe're taking callers that after tax bucket.
Within your four to oh one K. Again I was talking, you
could do up to sixty nine thousandwithin certain four oh one K plans if
the company allows it within their SummaryPlanned Description Document, so within their SPD

(46:51):
that gives all the rules for thefour oh one K. So getting up
to sixty nine thousand, if you'rebelow fifty, potentially up to seventy six
five hundred total contribution. You canget in you can get into the four
oh one K if you're above fifty, but with that after tax contribution,
so again you could do about thirtyone thousand and about fifty dollars in this

(47:15):
after tax bucket I mentioned every year. You could take that, you know,
and convert it to a ROTH IRAand then get tax fore growth on
those dollars if you leave it withinthe four oh one K. I want
to make sure this is heard.Those gains, any gains on the after
tax account that will go to thepre tax assets that you have within the

(47:37):
four to one CA, so you'renot getting the benefit of the WROTH type
of account within that. It's justan after tax account within your four oh
one K. So a lot ofpeople, they might be fifty or fifty
five. You know. We've donethis with some employees of a local company.
They have an after tax account inthere. It's not a WROTH for
one K, it's an after taxaccount within their four oh one K,

(47:57):
and we've rolled it out into aWROTH IRA and over the last five six
years they've seen WROTH gains, sothey've seen gains in that WROTH account that
aren't going to be taxable to them. In retirement, so know what you
have, know what's available to you, you know, know what you own
as far as your investments. Youwant to understand what you're trying to accomplish,

(48:22):
you know what your goals are.And I think consolidation helps for a
lot of folks and simplifying the estate. Once you get closer to that retirement
age, or once you're past thatretirement age and you finally got a breather,
you know, you finally have sometime to sit down and look at
your accounts, start working on simplifyingand and just in case anything ever happens

(48:44):
to you, it makes the Itmakes it a heck of a lot easier
on your beneficiaries as well. Igot Mike from Latham. Mike, how
are you this morning? Hey,good morning, Thanks for taking a call.
Of course I can barely hear you. Can you hear me? Okay?
Yeah, I've got you. Isthat better? Okay? That is

(49:06):
better? Thanks. I tuned ina little late, so I may be
asking a question that you've already answered. Apologies if that's what I'm doing.
I'm rushing on my way to thegolf course. E gooing. I know
that that that has meaning for you, and anyway, I heard you talking

(49:28):
a little bit about four oh oneK. I heard you talking a little
bit about ROTH. I also heardyou make some remark about high net worth
and I I fortunately fall into thatcategory, I believe. And my question
is, so I've maxed my fouroh one K for a number of years
from early sixties, still working butgetting close to the end. I have

(49:54):
been doing a backdoor ROTH for anumber of years, but in the last
year or two my company has offeredan after tax ROTH, And so my
question is, can I do afour to oh one k, a backdoor

(50:14):
ROTH and the somewhat new after taxROTH at my employer? Yes. So
the first thing you'd want to lookat, Mike, is the four oh
one K. I want to Iwould want to know all the rules within
that SPD, so the summary plandescription, that would that's what lets me

(50:36):
know how your after tax bucket worksin your in your four oh one K,
So that the first thing I wouldI would want to look at that
that after tax bucket. I'd rallyyou just keep socking away at that,
you know, contribute to that.I don't know if you heard me and
Chris McCarthy talking about you could doup to fifteen percent of your compensation into
that after tax bucket. So ifyou're a high earner, you know,

(50:59):
you could really ack away a lotof money in that four oh one k
after tax bucket and then each yearyou just take that and transfer it into
a ROTH IRA outside of the fouroh one k, you know, because
all the earnings on that after taxbucket within your four to one K,
it goes to pre tax, whichI was just talking about. So yeah,
I mean you could still do theback door WROTH. You know,

(51:22):
the IRA contribution is separate from yourfour oh one K, you know,
so you can still max both out. So you're contributing to the IRA,
you're probably not getting the tax deduction, you know, if you're a higher
earner, and then you're converting itover to WROTH. So I'd rather you
really target that four oh one K. I mean, you could do up
to seventy six five hundred and totalcontributions in there if you're earning a certain

(51:46):
amount, you know. So,but we'd have to look at it,
Mike, I really want to takea peek at it, but I don't
know. Maybe we could look atit on the golf course, after a
few holes there you go. Allright, listen, appreciate it. I've
asked that question of four or fivepeople in our HR group and I can't
get anybody to give me an answer, So appreciate you that. Let me

(52:13):
talk to him. I'll call themfor you. Okay, all right,
Mike, hit them straight. Alot of good people out there, you
know absolutely. I've been noticing thatrecently. But all right, we've got
to take a break here. Giveus a call five one eight five eight
zero. It's our office number.We'll be back right after this. Live

(52:37):
from the wgy iHeart Studios. Welcomehim 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
for you and your family. Nowit's time for day go back w G

(53:00):
wise Retirement Planning Specialist. I wouldclimb in a mountain and hello, hello

(53:39):
there, this is the Retirement PlanningShow. My name is Nicholas Thomas,
Certified Financial Planner, Professional plan Ansaultantwith the Retirement Planning Group. I've got
Chris McCarthy with me today, oneof our associates at the Retirement Planning Group.

(54:00):
We're here to talk about simplifying theestate, you know, consolidation of
assets. We're also here to talkabout retirement income. A lot of people
don't have a plan that is aplan, and it's a bad plan to
not have one. So you needto make sure you start crossing your t's,

(54:21):
dotting your eyes. You know,people tie their shoes before they walk
out the door. You know.One thing I would love to add,
and we talked about this. Ican't tell you the number of times we'd
be sitting with clients or prospective clientsand we would see the great job that
they did saving and investing money.But they come in with a dozen different

(54:47):
statements and we show them away thatwe can simplify and consolidate and it's almost
like you see a sigh of relief. Wow, this is pretty cool.
Yeah, you know, and theydon't have to get all those different ten
ninety nine's every year, so onand so forth, and just making their

(55:09):
life easier and simple, simple,and then they feel confident. Wow,
I got a nice game plan goinghere. Yeah, and you can let
us be that partner, you know, help you, help you get there.
If you have twelve thirteen seventy twodifferent accounts, we can hopefully turn

(55:35):
it into maybe three, three orfour accounts, you know, mostly everyone.
I mean, you'll have an IRAaccount, potentially a wrath, maybe
an individual account so some sort ofbrokerage account or a TOD and then potentially
a trust. You know. I'vebeen doing a lot of work on the
estate side of it for a lotof people out there. You know,

(55:59):
they might have their basics. I'vegot the will, healthcare proxy, power
of attorney, you know, butI haven't really looked at in your vocable
trust. If that sounds like youdo you have long term care insurance?
Probably not, you know, nota lot of people look into that or

(56:19):
or purchase that. New York's kindof difficult. It's a difficult state to
find affordable long term care insurance.But there are some options, you know,
we we have people looking at hybridpolicies. So there's a type of
life insurance out there that allows youto access an accelerated death benefit it's called

(56:45):
and you could take that death benefitand start using it for long term care.
So if something happens to you,or if something happens to your your
wife or husband, and they havethis type of policy, can help pay
for their care, you know,instead of depleting your assets to try to
get them into a facility or anursing home. At fifteen sixteen, seventeen

(57:09):
thousand dollars a month, you know, I always think it's kind of it
seems like a very high number,but then these people come in and they've
lived it. You know, alot of people come in they say,
hey, yeah, my mom's justput her in a nursing home a few
months ago, and they're charging herall this money to for her to live

(57:30):
there and and kind of keep her, keep eyes on her and take care
of her, you know, Andit's a it's a huge expense, and
not a lot of people think aboutit. They think they're going to go
over to the Twin Bridges and kindof just trip, you know, But
that's not a that's not a gameplan that you want to have. You

(57:52):
want to make sure you have youryou have your state buttoned up. You
know. The first thing and theeasiest thing is to start utilizing beneficiaries,
So have beneficiaries on your accounts,have transfer on deaths, so TOD or
POD. You know at the bankthey might say POD, but it's technically

(58:13):
the it's the same thing, youknow, transfer on death to whoever your
name beneficiaries are on the account.You know. From there we start looking
at protection options. So if youhave a lot of non qualified dollars,
you have a lot of money atthe bank, maybe real estate, you
have a few different properties, maybein New York and maybe you have a

(58:34):
couple of properties and other states.Start getting those into an irrevocable trust,
you know, that provides protection aftera five year look back period has passed,
so sixty months, So the sooneryou do it, the sooner it'll
get protected. Sooner it'll reach thatfive year time frame, you know,
and then from there you can kindof you can sleep a little bit better

(58:57):
at night. So you know,one of the things I wanted to add
is years ago I started learning muchmore about long term care, and one
of the most common objections was,well, what if I never needed And
it's a very realistic objection when you'retalking about the hybrid policies now that can

(59:22):
solve both avenues, you know,so this way you have the long term
care benefit as well as the lifeinsurance feature, so that might make it
a little easier for people. Youalso talked about, we're seeing it all
over the place. If you haven'tseen it with your family, you're seeing

(59:45):
it with a friend's family. Butpeople are living longer, more people are
needing long term care of some sort. Nobody it's not a goal for everybody
to get into a nursing home.You know. It's not like, oh
my god, a life I can'twait. I know, really, you
know, bingo just foming at themouth to getting that nursing home. But

(01:00:10):
at the same time, with peopleliving longer, the reality and the chances
are greater and greater that it's goingto deplete assets. The proper planning is
not taken. I think the theysay eighty four was the average age for
nursing home, so eighty four yearsold. People are living well, well

(01:00:36):
into their nineties at this point.I hear all the time, you know,
my dad's ninety six, My dad'sninety seven, my mom's one hundred
and two. You know, Ihear that all the time, people coming
in and saying they have longevity.You know, they have longevity in their
family. Some people are going tobe retired longer than the amount of years

(01:01:01):
they worked. You know, ifyou started working when you were eighteen,
worked for what forty years, thatbrings you to fifty eight, and then
forty years that brings it you makeit to one hundred, that's forty two
years in retirement. Especially with thehealthcare system out there nowadays and all these

(01:01:25):
new medications and treatments, and youknow, we've advanced quite a bit from
the fifties. I also remember,like in the late eighties, early nineties,
like I said earlier, you know, when I was learning more about
the long term care marketplace, andthen to be associated with you guys and

(01:01:46):
see it's staggering what the premiums havegone up to in the state of New
York. It doesn't surprise me though, because I think a lot of companies
years ago price the products to getinto the game. They wanted to buy
market share. I don't think theyrealized the claim that we're going to come

(01:02:07):
in Yeah, and then it's survivalof the fittest. Now you have the
companies that have survived, but they'vebeen forced to raise their raids because of
claim or they're trying to buy peopleout. You know, people are getting
these notices, hey we can,We'll give you ten thousand bucks, you
know, and policy's gone where there'sa reduced benefit they're offering you. But

(01:02:31):
I think one and a half ofwhat you put in. You know,
that was during that meeting we hadon Thursday, right an older couple and
you know, I said, Isaid, we can't do it at this
point. I mean, you're inyour eighties. This is when you're getting
to that timeframe when you really mightneed it. So and they had the
assets to support it. So we'rejust gonna monitor it kind of year by

(01:02:53):
year. James, I've got Jameson the on the phone. How are
you, sir. I'm doing good. I'm doing good this morning. How
are you boys? They were gettingthere good. Thank you. I just
wanted to listen to the show here. I've only been listening here for a
little bit, but long enough tokind of get the gist of what you're

(01:03:14):
talking about today. We armam passed, uh six weeks ago. I went
down this road a big time.So during to COVID, she ended up
in a rehabilitation nursing facility for brokenback, and she had fallen and she

(01:03:37):
was there sixteen months wow. Andof course during COVID it was really terrible
because you couldn't go visit them.I mean, you couldn't visit anybody.
Yet he had to talk with herthrough a window from the parking lot,
and it was really bad. Butshe just hated being there with every bit
of her being. And so Imade a pledge to her that no matter

(01:03:58):
what, I would figure out away to get her home. And I'm
so glad I did. We gother home. We we reconfigured the house
a little bit and got her home, and we got some caregivers to help
out that we paid out of ourpockets for a while until my sister was
able to work through all the paidwork with a Medicaid or Medicare whatever that
is is a combination of the two, I guess. But eventually we got

(01:04:20):
the majority of their her care paidfor by that. But it was a
big challenge, and even the bitthat they wouldn't cover we covered out of
our pockets. And like I said, it was there was a lot to
it. And so I've mentioned beforeand these shows about this, that when
it comes to this care. It'sreally important that people think long and hard

(01:04:45):
before they ever get there. Ifthey can what their house should be like,
if they want to stay home,what they're going to need at home,
and they can start those preparations earlierin life versus waiting until the last
minute and having the kids try tofigure it out. And the other thing
I just want to mention is,you know, there's a whole process that

(01:05:08):
you guys are involved with, inthis whole thing where you sell these packages
and these insurance plans that cover thislong term care and this life insurance options
that do this that and every otherthing. Well forty five minutes from where
you're sitting in an office right now, an hour, there's a large community

(01:05:29):
of people that don't have any ofthose options. They've been saving their money
in their whole lives. They livea lot simpler, and believe it or
not, every one of the childrenthat are born into their families get a
large portion of money given to themwhen they get married to build their own
homes buy the parents. And theonly reason the parents are able to do

(01:05:49):
that is because they live a simplerlife and they don't have the fanciest of
everything around them every minute. Butthe beautiful thing at the end is that
one of the two sets of kids, one of them stays in the family
home. They buy the family homefrom mom and dad part of those funds,
build a small house on the property. Mom and dad move into the

(01:06:12):
small house, and the children allparticipate in taking care of mom and dad
to the last day. Yeah.I mean, there's never a policy bought,
there's never money going into anybody else'shands, there's no nursing home taking
fifteen thousand bars. Some people don'twant to do that, James. You
know, there's a lot of peopleout there that want don't want to rely

(01:06:32):
on the children to take care ofthem. Our culture that we live in
says we shouldn't be doing that.Yeah. I mean, there's a lot
of people out there that will,you know, kind of volunteer to take
care of their parents. But Ithink some folks they also want to They
want to allow professionals, or theywant to go to a place that's going

(01:06:54):
to assist them for the rest oftheir lives. So we're running up on
a break. So sorry I hadto cut you off there, James,
but we're gonna take quick break ifyou want to call us again. It's
twenty one hundred and eight five fiftyninety nine. We'll be back right after
this. Will you run out ofmoney in retirement? Will your investments provide
income for possibly decades? How doyou navigate the two greatest risk in retirement

(01:07:15):
sequence of returns in longevity At theRetirement Planning Group, Our Bucket of Money
approach addresses these concerns and we offera complementary consultation to discuss this with you.
Call our office today for a freecomplimentary consultation to develop your own personal
retirement income distribution plan at five eightfive EID zero one nine one nine.
That's five eight five eight zero onenine one nine. The greatest risk in

(01:07:39):
retirement most of us have no planfor We're insurance to cover the expense.
A long term care event can impoverisha spouse, drain your life savings,
and cost stress and anxiety on yourfamily. What is your plan and how
will you pay for a long termcare event? Call a retirement planning group
today discuss options you should consider toprotect your estate and have choices and independence.

(01:08:00):
Take action well today five one eightfive eight zero one nine nine or
RPG retire on the web. Ifyou have any questions, call in now
at one eight hundred talk WGY.That's one eight hundred eight two five five
nine four nine one eight hundred eighttwo five five nine four nine. We
are here, live in studio,ready to answer your questions. When I

(01:08:35):
find myself in times of trouble,Mother Mary comes to me speaking words of
wisdom. Let it be and weare back my hundred talkers, just standing
the Retirement Planning Show for those ofyou just tuning in. We're a local

(01:08:59):
firm here right in upstate New York. We've got several office locations, some
satellite offices. If you need usto travel, we don't mind getting in
the truck and getting out there.Main offices in Malta two six nine one
State Route nine sweet two to ohone. It's right in Malta, New
York. If you want to comein have a chat with us, as

(01:09:21):
we will meet there. Got aspot down in Albany. I met with
a couple individuals a couple of weeksago. It's a nice spot down there.
And then uh, we've got officeout in Oneana and then we've been
working out of Syracuse every now andthen too. I think we're out there
a couple of times, so amonth at least so, and I enjoy

(01:09:43):
going out there because then I getto sit down and eat some chicken tenders
at Tolley's. That place is amazing. But but again, if you want
to call us numbers five eight fiveeight zero h Chris and myself been talking
about a lot on the show today. You know there's options within your four
to oh one K plans if ifyou haven't looked into it, you know

(01:10:08):
there might be the opportunity to startcontributing to an after tax account in there
for someone that earns a lot ofmoney. You know, you make over
the two hundred and forty thousand dollarsbetween you and your spouse, if you're
filing jointly, make over two hundredand forty thousand, you can't contribute to
a wroth high ray. You mightbe able to contribute within the four toh
one K and then start doing rolloversfrom that into some sort of wrath to

(01:10:30):
get tax free growth on the backend. So there's very technical ways to
navigate retirement planning. You know,the government tries to limit you on what
you can and can't do, butthere's there's always ways to kind of set
money aside for your future. Forsomeone that needs liquidity, there's brokerage accounts,

(01:10:50):
non qualified accounts. You can dosome sort of joint account with you
and your spouse. Right now,let's say you got one hundred grant sitting
in the bank. What's that doingfor you. Yeah, again, these
checking accounts aren't going to be givenyou a five percent rates of return.
You know, the money market's gettingfive percent right now, So it's a
great place to park some money.We can link your bank account or you

(01:11:12):
can just transfer money out right online. You know, we give you access.
We utilize Fidelity. Fidelity is acustodian of all of our client's assets.
So if you need cash, Imean, it's your money at the
end of the day, you cango in there and transfer it out to
your bank. I just advise yoube careful if it's some sort of IRA
account. But if it's a brokerageaccount and and do you have access to

(01:11:36):
it, you can go ahead andtransfer dollars out if you need to get
it back in your bank. Butin the meantime, try to grab that
five percent. You know, wecould look at treasury bills too. I
don't think rates are gonna come downas aggressively as we thought maybe a few
years ago. You know, itseems like there's gonna be more of an
extended type of pause with these ratehikes. We've already been through five old

(01:11:57):
steadies and now will be another meetingon Wednesday here May first, and then
we'll see what the Fed says then. But the target still stays between five
and a quarter five and a half. I think that's going to stay that
way for a little while. Youknow, like Dave said earlier, a
lot of the movement is caused bywhat comes out of their mouths after the

(01:12:17):
meeting, what Powell says. Sowe'll be monitoring that. But again,
I think we're going to be kindof flat with rates for a while here.
But we're in a good environment.You know, corporate bonds are getting
six and a half seven percent.Whoa, hey, confetti, we know
where to pivot. Yeah, we'vegot good rates of return for savers.

(01:12:39):
You know, it's been a longborrowers market, so a long time people
were getting low interest rates on mortgages, you know, personal loans, but
even margin accounts. You know,we have the option to do margin with
fidelity and clients accounts. You cantake out a loan against your account.
But even now they're just they're high. These these rates are high, so

(01:13:00):
I really don't advise it for alot of people anymore. But again we're
in a savers world. You know, rates have come up quite a bit.
They are the highest they've been inabout twenty two years, so it's
been a long time coming. ButI was looking, like we mentioned in
the first hour of today, youknow, when inflation was hot, you

(01:13:25):
know, back in the seventies eighties, you know, and you kind of
look at these market returns over thetimeframe and it just reiterates you still got
you still have to stay invested,you know, with a portion of your
assets. I mean, if youlook at the time period from eighty five
to eighty eight, nineteen eighty fiveto nineteen eighty eight, rates started around
six and we had about fifty tworeturns on the SMP five hundred, So

(01:13:54):
the market was doing well even duringyou know, kind of a high rate
environment. But times have changed.You know, we also have an election
this year. It might be somevolatility. You want to make sure you
have enough in cash if you're someonethat's already retired for distributions over the next
ten twelve months, so you don'thave the liquidate assets if the market is

(01:14:15):
if the market's down at all.So that's what we talk about all the
time. You know, the bucketsof money. Start getting those buckets of
money set up. You know youryour first bucket for distributions from maybe months
one through ten. You know yoursecond bucket that's going to be your interest
producer, your yield enhancers. Sowhatever's kicking off dividends and interest that would

(01:14:38):
be your second bucket, and thatkeeps throwing money at the first bucket,
so as you're taking cash off theaccounts, you know it's getting replenished.
And then you've got your third onefor growth. So you've got a growth
allocation in there for long term,long term growth. You want to keep
paced with inflation, and you wantto make sure your your dollar doesn't lose

(01:14:59):
value to your neighbor's dollar. Soyou know, one thing I'd love to
add is in working with you whenwe would be meeting with clients, I
couldn't agree with you more. Youknow, everybody needs to have some sort
of equities exposure. But the bigkey is to what degree. And you

(01:15:20):
know that's why we're here, istoo with the buckets that you're talking about.
You've been grading. You've been gradinga lot of hires I have.
I've gotten pretty good at it.And and that's another thing I think it's
very important is listening to the clients. Knowing where their comfort levels are and

(01:15:44):
more importantly are not equity exposure.You never want to stop doing what got
you to where you are in thefirst place. But I think it's just
taking a real good look learning fromyou, learning it at the fifth income
arena right now is strong. Uh, when the Feds eventually drop rates,

(01:16:09):
I think the bond appreciation sector isgonna be strong. So it's knowing what's
out there, educating the clients andsetting them up in the best way possible.
Yeah, and you're not just waitingfor the Fed to decrease rates to
see returns in bonds, and you'recapturing that interest in the meantime. You

(01:16:30):
know, like we're talking about sixand a half seven, a lot of
these fixed income products you can justcollect that, you know, and it's
not gonna jump around, jump aroundthen a song, it's not gonna jump
around. Hey, Like like thelike the stock market, you know,
fixed income, they respond relative tointerest rate movements, So you're those bonds,

(01:16:55):
the bonds that you hold, whereasthe stock market could respond to a
lot more than just interest rates.So again you want to be careful,
especially for those folks getting closer retirement, you know, three to five years.
I think even longer than that.I think five to seven years should
be the red zone. You're gettingcloser to that goal line, so you

(01:17:17):
want to make sure that you runthe ball a little bit too, You're
not just throwing that deep fly.So have you been watching the draft?
At the draft over the last coupleI know, I know the nights And
how about those commanders Jaden Daniels,I know they got Yeah. Is that

(01:17:38):
McCaffrey guy. Is that Luke's littlebrother? I believe. So he's from
Rice. I was looking at thatthis morning, I believe. And he's
an amazing both of them. Areyou're a Giants fan? I am?
So you guys got the wide receiverNabbers from LSU? Right? Yes?

(01:17:59):
Is he No? No, he'snot from LSU. I'm not sure.
I can't remember, but you mayknow. I was watching I was at
the gym mainly that night, soI was peaking here now, yeah,
I like to watch now. Iwas watching the Rangers though last night we
running up on a break. Wegot thirty seconds. All right, we're
gonna talk more retirement planning when weget back. I don't know that deep

(01:18:24):
fly, so the red zone.I'll talk a little bit more about the
red zone of retirement planning rather thanfootball when we get back. But again,
if you want to call our officenumbers five one eight, five eight
zero, one nine one nine.There is a calling show as well,
So if you want to call usone eight hundred eight two five fifty nine
forty nine, and that's twent eighthundred eight two five fifty nine forty nine,

(01:18:45):
we're here. We'll be here forthe next half hour and we're gonna
take quick break. We'll be back. Pay Jude. Don't make it bye,
take us side and make it banner. Remember du Lettere. Then you

(01:19:09):
can start do make it banna.Hey, you don't be aga and we
are back. You made right hereon w gy W GY we've got a

(01:19:30):
caller. We got Frank from BurntHills. How are you doing, Frank?
Hey? How are you another day? I have a question about an
annuity yet, I own, Yeah, what's going on. It's a premier
retirement B series annuity. It's it'ssupposed to double in twelve years. So

(01:19:57):
my question is, Nico, ifwe don't innuitize this, does it continue
to grow after the twelve years?So we'd have to look at the contract.
Do you know, is it anIRA or is it a non qualified?
No, it's non qualified. It'sas highest daily lifetime income and it

(01:20:20):
says guarantee date is basically right now. We've had it for twelve years,
and my question is if we decidenot to neutize it for another twelve years,
does it double again? So itsays twelve year guarantee two. Okay,
So we'd want to look at it, you know, Frank, all

(01:20:43):
these annuities have different criteria, youknow, so but yeah, I mean
there's usually an account value as well. So it sounds like you're talking about
the benefit base. So there's abenefit base that's guaranteed to grow at six
percent in this case give you adouble in twelve years, right, So
yes, we'd want to take alook at what the benefit based rules are

(01:21:06):
with that annuity. Is the accountvalue close to that benefit based, do
you know, Yes, it's it'sit's more it has the step up thing
where it says it's it's had eightyfour step ups since we we got it

(01:21:27):
in twenty twelve, So is thatcan't be there's no Okay, do you
do you want to call the office? Maybe, Frank, I'd like to
take a look at that for youbecause I can't. Yeah, maybe I'll
do that and you go, yeah, if you want to, I think
that'd makes more sense. I can'treally, just I need to. I
need to get my eyes on it, if you know what I mean.

(01:21:48):
No, I agree, because somany different companies have different setups and everything.
And why haven't you why haven't youturned it on yet? Where you
know, my wife's still relatively young. It's her name, and I just
thought, you know, right nowwe're paying well our bills and not struggling,

(01:22:10):
and it's basically for her if somethinghappened to me, yeah, and
do you mind me me? Andso I figured we would wait until she's
you know, close to seventy yeah, and are you in your sixties?
Yes? So there's different age bandsalso, so that's something you might want

(01:22:31):
to look at before you anutize it. Some people anutize at sixty four even
though sixty five it might increase anotherpercent for the annutization, So you might
get a higher payout if you waitanother year. I'm not sure. Again,
we'd have to look at the contract, see who it's with, so
which company it's with, and thentake a little deeper. Die we're credential

(01:22:56):
again. And it says and couldyou explain what the annuity days it is?
It says annuity date zero nine one, twenty sixty one. That's that's
probably the endowment date, if youwill. I mean, that's probably going
to be when you might be ninetyfive. I'm guessing again, I think

(01:23:16):
Nico set up best. That makessense. Yeah, I think Nico set
it best. I think it's somethingwe need to sit down and look at
it together and see what the rulesare of the annuity and see if that's
the best place for you or isthere another annuity that might be better.

(01:23:38):
Yeah? Are you still working?Okay? I appreciate it. Guys.
Are you still working, Frank orare you did you No? No,
I'm retired. There you go,yep. So what did you pick up?
Some hobbies? You golfer? Ishould be. I have golf clubs,
but I certainly don't use them.En they're just growing, they're getting

(01:23:58):
dust on them. Well, uhyeah, hopefully you call our office.
My my golf. My golf buddymoved to South Carolina, so wow,
I got to find a new golfbuddy. Hey, Chris McCarthy, he
said, if you golf with him, it makes it feel better. So
yeah, all right, guys,you guys have a great weekend. Hey
Frank you too. Yeah. Alot of great uh, lot of great

(01:24:23):
people out there in the Cable district. You know, a lot of our
clients too. Always enjoy when,uh, when they come in the office.
I was kind of talking about thatin the first hour, always getting
caught up, you know, whereeveryone's at. It's uh. I like
the conversations. I think, youknow, find about maybe twenty twenty five

(01:24:47):
percent of the conversation is about theirfinances, you know, seventy five percent
getting to know them, to knowwhat their goals are and how the family
structured, and uh, we talkedthrough what they're going through. You know,
we have a lot of conversations withfolks, and you know, we're
always available. We're here to helpeverybody, you know, the average Joe's

(01:25:09):
out there, hard working savers wehave. We just had a seminar a
couple of weeks ago for a lotof people out there. Dave and Lou
got in front of everybody, andyou know, it was a it was
a good conversation, you know,and a few of our clients went to
that and uh, they were saying, a lot of people at their table,

(01:25:32):
you know, I haven't really startedlooking at their finances or coming up
with a retirement plan yet, andit just felt them. It made them
feel a lot better where they theystood, you know, because they have
a plan, they know where money'sgonna come from when they do retire.
And it's always nice just kind ofchit chatting with our clients. But I

(01:25:56):
was very impressed with the reception ofthe people people that attended, you know,
Uh, they were seemed to bevery engaged to asking a lot of
questions, uh before after the seminar, you know, it was good and
if Bark seedd, I think whatwe were expecting as far as attendance,

(01:26:16):
Yeah, so it was. Itwas a good night. And even I
think Dave danced at one point onthe on the stage. I swear.
I think he I think he splithis pants. He was getting pretty low.
Probably one of not one of ourbrighter moments. But but anyways,
again, the red zone, wewere talking about that before the break,

(01:26:39):
before the the call. We justhad three to three to five years out,
you know, that's what we saidin the past, start coming up
with a game plan. But Ieven think five to seven years out from
retirement, really start mapping out wherethe income is gonna come from, because
that uh, that check is gonnastop coming in once you do retire,

(01:26:59):
you know, is a process.You know, you want to make sure
you understand how to start consolidating yourassets and start utilizing those accounts, whether
they be four oh one k's,four O three b's, deferred comps,
start utilizing them for income. Atthis point, you know, we've all
been growth, growth, growth.You know, we had a great run

(01:27:21):
in the market, very long bowlmarket over the last but fifteen years.
A few times of volatility, butthere comes a point where the account can't
withstand a twenty percent correction or twentyfive percent correction. At this point if
you're that close to retirement, youknow, and there's ways to navigate the

(01:27:42):
market now we'd be having a completelydifferent conversation two years ago. You know,
beginning at twenty twenty two rates,where nothing you're getting one and a
half two percent on a on ashort term bond fund or intermediate term bond
fund. You know, now wherethere's funds out there, you're kicking off
six seven percent interest, So youhave a lot larger horizon to pick and

(01:28:06):
choose from. You know, ifyou're someone that opens up a retail account,
tries to do it yourself, makesure you know what you're getting into.
There's also a lot of investments outthere that lock you up for a
certain time frame where you can onlyonly liquidate a certain amount of shares either
each quarter or every year. Youwant to maintain liquidity, you want to

(01:28:26):
have flexibility with your investments, andyou need to understand what you're trying to
accomplish. You know, if you'resomeone that had a one hundred, one
hundred and twenty thousand dollars a yearspend level before retirement, you know,
they tell you seventy eighty percent ofwhat you're spending in your working years should
be your retirement income. But still, I mean, everyone thinks a million

(01:28:47):
dollars. You know, that's thethat's the number I need to hit.
It might not be you know,depending on what your expenses are. Is
the mortgage going away? Are yougoing to have a mortgage payment retirement?
What's health insurance look like? Areyou sixty five? Are you going to
be on Medicare at that point?Or are you gonna have to go on
the private exchange and find some sortof health insurance policy that's going to cost

(01:29:10):
you two thousand dollars a month foryou and your family? You know,
So you need to understand the environmentand what it's going to look like once
you do exit the workforce. Youknow that million dollars might not be it,
especially if you're someone who has multipleproperties and multiple children that are still
depending on you. So again it'sstructuring the tax side of your estate as

(01:29:32):
well. A lot of people arepre tax, very top heavy, as
David likes to say. So you'revery top heavy. You have a lot
of pre tax assets and you don'thave a lot of maybe in WROTH or
after tax non qualified accounts. Youhave the estate planning side of it all
set up, you know, Daveand Frank, I think I believe last

(01:29:55):
weekend. They were talking a lotabout the estate, you know, and
iras and the laws surrounding those iraysin New York State. So you need
to see an attorney, you know. I for someone that hasn't had their
basic setup will healthcare proxy, durablepower of attorney, and the potential for
an irrevocable trust for your state,you know, it might make sense,

(01:30:19):
especially if you don't you don't havea mortgage on the property. It might
be worth four or five six hundredthousand dollars. It's half a million dollars
that you could protect by putting intoan irrevocable trust and giving it five years
to lock in that protection. Soagain, we're here. So we're here

(01:30:39):
for you. If you want tocall our office numbers five one eight five
eight zero nine nine, or youcan reach us on the web www dot
rpg retire dot com. We geta lot of questions through the website,
you know. So if you justthere's a question box right on that first
page, scroll all the way downthat question I'll get emailed over to us

(01:31:01):
and then we'll make sure to getback to you. I think we're going
to take a break here. Ineed to go fill up my water and
then when we come back, we'llkind of summarize the show. And I
do want to talk about those fourto one K after tax accounts one more
time. Will you run out ofmoney in retirement where your investments provide income
for possibly decades? How do younavigate the two greatest risk in retirement sequence

(01:31:26):
of returns in longevity. At theRetirement Planning Group, our Bucket of Money
approach addresses these concerns and we offera complimentary consultation to discuss this with you.
Call our office today for a freecomplimentary consultation to develop your own personal
retirement income distribution plan at five eightfive eight zero one nine nine. That's
five eight, five eight zero onenine one nine The greatest risk in retirement

(01:31:49):
most of us have no plan forWe're insurance to cover the expense. A
long term care event can impoverish aspouse, drain your life savings, and
cost stress and anxiety on your family. What is your plan and how will
you pay for a long term careevent? Call the Retirement Planning Group today
discuss options you should consider to protectyour estate and have choices and independence.

(01:32:11):
Take action well today. Five oneeight five eight zero one, nine nine,
or rpg retire on the web ifyou would like to hear more information
on navigating your way to retirement fromDave Kopek. Remember you can listen to
this show and pass shows anytime inanywhere on the free iHeartRadio app, or
go to iHeart dot com and searchfor a retirement planning show. You're a

(01:32:38):
rich girl and you're going to focus. You know it don't matter anyway.
You can rely on the old man'smoney. You can mily on old It's
a bitch girl, but it don'ttoo fuck cause you know it don't matter
anyway. Sam a Mona won't getyour too fog at you too far.

(01:33:05):
And we are back here for thelast segment of two day's show, so
again, feel free to call in. We've had quite a few callers today
one hundred eight two five fifty nineone eight two five five nine four nine
if you want to call in.But uh again, there's retirement Planning show.
Everyone. Thanks for tuning in today. If you've got us on your

(01:33:27):
radio right here on WGY, we'rein the studios, so uh again,
this is the Nico and Chris TakeoverShow. Mister David Kopek is down in
Florida. He is looking at someproperties down there. Now we have a
good sized client based down in Florida. Now we listened to the show too,
which we appreciate them tuning in everyweek. But he's down there,

(01:33:50):
and sure we'll be spending some timedown there too. Eventually, a lot
of people retiring they head south,you know, or during the winters they
become snowbirds and they migrate down tothe Orange State, and a lot of
construction going on down there. Floridais uh is definitely a destination for a

(01:34:13):
lot of retirees. You know.Recently, we've had a lot of people
looking at the Carolinas. I thinkSouth Carolina, Tennessee, also Tennessee,
the Nashville area, and uh,I think the North and South Carolina.
We had people looking. Was itGreenville over there in South Carolina? And
then uh, I think that's acouple hours from Charlotte. But I'll be

(01:34:39):
in Charlotte in a month, goingdown there for a weekend Memorial Day weekend.
It's the race hub for NASCAR,So go down there and see some
cars go around. But anyways,back to money, you know, Nico
wanted to share something with you thenice gentleman Frank that caught in about the

(01:35:00):
annuity that he had. Annuities arevery very powerful tools in the planning process,
but they're only as good as theclient's understanding that. And I think
it's very important that people like Frankcontact us, let us take a look
at what he has and see ishe in the best place or is an

(01:35:26):
alternative planning process that would be betterfor him? Yeah? Someone, I
mean there there was someone originally whoprobably sold him the contract, you know,
and they might have received an upupfront sales charge. Maybe they don't
contact him anymore and actually discuss thepoint of it now. So a lot
of times people bring in these statementsand we say, what's going on with

(01:35:48):
this? And you know, Ibought it ten years ago, and you
know, he told me it wasa good product, it was going to
double, and well, now whatare we going to do with it?
And that's where or you know,there's kind of a silence, so you
need to understand what you own.I completely agree with you when you say
that, Chris. Usually I doagree with you. You bring a lot

(01:36:10):
of good points to the table,and yeah, I mean, annuities are
great for people who don't have apension, you know, people who might
just have Social Security. Eventually,a lot of the weight nowadays is being
put on the investor or the employee. So you need to start planning for
your own retirement. You know.The companies aren't really offering those pension benefits

(01:36:32):
as much anymore, specifically in theprivate sector. You know, you might
be a New York State employee andyou're gonna have your New York State pension
available to you, and maybe you'vebeen contributing to a deferred comp plan throughout
your retirement or throughout your working years, and now on your retirement or we
can access that deferred comp for income. What's the game plan with that?

(01:36:53):
A lot of people say, hey, that's for the kids. Now I'm
going to live on my pension andsocial Security. I'm gonna have one hundred
and twenty thousand dollars coming in betweenme and my wife or me and my
husband, and yeah, we're probablynot gonna have to access it, you
know, So what's the game planfor that deferred comp you know, and
I show people this all the time, why not take that account once you

(01:37:14):
retire and then moving into some sortof vehicle that's going to get a tax
free legacy for the next generation.Get it set up in a trust,
you know, So how do youhow do you do this? You take
that deferred comp you put it intoa SPIA, so you get it into
a single premium immediate annuity and youhave that speA of paying towards a life

(01:37:35):
insurance policy and it spreads the taxset out over multiple years. I like
looking at the twenty so you doa twenty year SPIA. So if you
have three hundred thousand dollars in thisdeferred comp plan, over those twenty years,
it might pay out whatever, maybesixteen sixteen thousand, so you get
a little velocity on it, youknow. And then you take that sixteen

(01:37:59):
thousand each year. You know,you're gonna recognize that as income each year,
so it'll be taxable. But thenthat sixteen thousand is going towards maybe
a second to die policy on youand your bride or you and your husband.
And then once you pass away,that policy might pay out x amount
of dollars, you know, andyou have that policy owned by some sort
of trust so that the cash valuewithin its growing protected you know, own

(01:38:26):
it's in ownership of the irrevocable trustat that point, and then when it
gets paid out, it goes rightinto the trust, and then you're able
to dictate how they receive those dollars. You really customize the estate folks by
doing this. So maybe they youmake monthly payments or they can only collect
the interest off the trust. Youmake it some sort of dynasty trust.
It's going to last ninety nine years. You know. There's ways to navigate

(01:38:48):
the estate planning side of your life, you know, and you want to
make sure you have this set upfor protection purposes. Also that life the
cash value life insurance is something thatthey're going to look at, right if
you go in to nursing home.So what are you doing with these policies
right now? You know? Shouldyou get them into some sort of trust,

(01:39:09):
should you maintain ownership of them?What's the purpose of them? I
always go back to the purpose.Why are we doing this? Why are
we doing that? You know thatfirst appointment, when I sit down and
meet with new Perspective clients, it'san interview process. You know, I'm
trying to get a feel for whoyou are. I'm going to ask you
a million questions but that's my job, you know. And then and then

(01:39:30):
we hear, we listen, wehear you out and see what you're trying
to accomplish, and we come upwith alternative strategies to get you there.
You know, not every shoe fits, you know, people wear different sizes.
I wear a size ten, Chriswears a size seven. Little little
feet. But I'm quick, I'mquick, I'm back. No, I'll

(01:39:55):
tell you. And for example,I remember we met with clients recently.
I think they had three hundred andfifty in their IRA, and you we
were able to turn that three hundredand fifty into a million dollars of covered
for long term care and things likethat. It's the type of planning,

(01:40:15):
the experience that we have that wecan take different avenues and maximize what people
can do. Yeah, they mighthave goals for specific buckets, kind of
like I just talked about. Youknow, the deferred count in that situation
was for legacy. Let's optimize it. You know, if we can get
another two three hundred thousand dollars outof a tax free, I think it

(01:40:38):
makes a lot of sense. Andyou spread that tax hit out over your
lifetime. The kids don't get leftwith an account that they have to withdraw
within ten years. Who's to saythey don't change that to five years,
you know, the amount of yearsthey have to withdraw those assets on inherited
IRA accounts. Some people received assets, you know, over the last couple
of years, they inherited some accountounce they think they have to take it

(01:41:01):
out within ten years. They mightbe qualifying beneficiaries, So they might be
qualified beneficiaries. I had that conversationwith a couple, Yeah, a couple
gentlemen about a month or two ago. I still remember that, and he
was looking at just taking the IRAand doing conversions. You know, he

(01:41:23):
thought, once his siblings because hedidn't have any kids, once his siblings
received the assets, they were gonnahave to withdraw it within a certain timeframe.
But no, they were eligible beneficiaries. So that's not the case there.
So just know what you're doing.You know, it's a tricky environment
and we're dealing with hundreds of thousandsof dollars here, and you want to

(01:41:44):
make sure you have it structured correctlyso that the government takes the least amount
possible. You know, that's halfmy job is looking at the tax liability
and how we're going to manage this, and there's a lot of planning that
goes into each and every person thatsteps in that office. I just want
to make sure everyone realizes that it'snot a cookie cutter approach. We're here

(01:42:04):
to try to maximize your retirement years. You know, you want to focus
on the things you want to doin retirement. You're retiring to a destination
and that destination is going to bedifferent for everybody, and we need to
account for your specific plan and yourspecific family. You know, there's a
lot of mixed marriages. A lotof people walk in they've got two kids

(01:42:28):
with an ex spouse. They mighthave a couple of kids together. You
know, how are we going toplan for that, which kids are going
to receive, which assets. There'sspecial needs, so a lot of people
have special needs trusts and maybe thechild's living with them. What's the plans,
what's the plan for where the child'sgoing to go if something happens to
you guys? You know younger folks. You just met with a younger couple

(01:42:51):
on Thursday, and you know,term insurance is a big thing we talk
about with younger individuals that might havea couple children, and maybe they don't
have an adequate amount of coverage forwhere they're at. You know, they
might have a large mortgage. Maybethey just bought a house a few years
ago, they still got twenty sixtwenty seven years left on the mortgage.

(01:43:15):
Maybe one spouse is the bread winner, you know, the other spouse is
kind of staying home taking care ofthe children, and they only have a
multiple of their salary as death benefits, maybe a two or three times multiple.
That's not going to replace their incomefor a long period of time,
right in three three years? Isthat going to give your spouse, you
know, enough time to really figurethings out? You know, So you

(01:43:38):
want to make sure you have adequatean adequate amount of coverage, especially for
the younger people out there that arejust starting to save. They might not
have a lot in the savings orretirement assets. So you need to start
planning for this and saying what if, you know. I think what if
is a big question that you needto answer soon because procrastination is not going

(01:44:00):
to get you there. I thinkanother thing you bring to the table,
and that is when you were talkingabout the life insurance, In many,
many instances, there's certain policies thatmake perfect sense in the life insurance arena.
But many times, what you're sayingright now, coverage is the most

(01:44:21):
important young people, so on replacingincome or paying off the house, so
on and so forth, coverage isimportant. Therefore term makes the most sense,
and we bring that level of planningto encourage people what they should and

(01:44:43):
shouldn't do. Watch out for thegrim reaper, they ever know when he's
showing up. But again, Imean, we're here to help folks of
all different shapes sizes, and we'rehere to help you accomplish what you want
to accomplish in your life. Ifyou want to give us a call,
we got to take off numbers fiveone eight, five eight zero one nine

(01:45:04):
nine. Everyone. We'll be backagain next week. Thank you for listening
to the Retirement Planning Show, hostedby Dave Kopek, w g wise Retirement
Planning Specialist. If you would liketo talk with Dame or someone at the
Retirement Planning Group, call five oneeight, five eight zero one nine one
nine that's five one eight five eightzero one nine one nine during business hours,

(01:45:28):
or visit RPG retire dot com.The Retirement Planning Group has five convenient
offices located in Albany, Maltsa,Glens Falls, Syracuse, and Oneiana.
Tune in again next week for retirementplanning strategies with Dave Kopek right here on
WGY's Retirement Planning Show. The informationour services discussed on this show is for

(01:45:50):
informational purposes only and is not intendedto be personal financial advice. The investments
and services offered by US may notbe suitable for all investors. If you
have any doubts as to the meritsof an investment, you should seek advice
from an independent financial advisor.