Retirement Planning Show

July 6th, 2024

Episode Transcript

(00:00):
Line from the w gy iHeart Studios. Welcome to the Retirement Planning Show with
your host Dave Kopek from the RetirementPlanning Group. Every week, Dave and
his team discuss the ways they canhelp people make informed decisions about a wide
array of retirement planning information that cansupport you and developing a more certain financial
future for you and your family.Now it's time for Dave Copec WGY's retirement

(00:26):
Planning specialist, hope you to beby spacious guys and be wives and dreams.

(00:48):
A purple man majesty is run.It made. But now wait a
minute. I made you a mantrue. You see he don't shake his

(01:18):
face on me. You're living becausehe be brown. I'm good he told
me he would. Hey, webother bo see. Happy Fourth July weekend.

(01:46):
Hard to believe, hard to believeto do? Fireworks? Yeah,
I went down to the plaza didyou last second decision? And it worked
out perfectly. We went into theparking garage underneath the Egg and we were
so deep that literally when we wentto go leave, and we left right

(02:07):
before the grand finale, we wentright on the seven eighty seven, right
out of the garage. It wasbeautiful, very nice. I'm gonna have
fire I'm not a fireworks guy,never have been. Some people enjoy it.
I don't know. I just don'tget a bang out of it.
How's that sound like kids, Zach? But make a long story short.

(02:31):
Hopefully you're having a wonderful Fourth ofJuly weekend. We closed the office on
Friday too, so my staff hasa well deserved four day weekend Thursday,
Friday, Saturday and Sunday. AndI know that they are enjoying it.

(02:53):
We've had some communication with them overthe last twenty four hours. So I'm
Dave Kope. This is Retirement PlanningShow. If you're a new listener,
all we talk about is pre andpost retirement planning. If you have any
questions or comments, I'm actually livein the studio, Yes live. I

(03:14):
drove down. If you're driving,it was very, very bad this morning,
very bad this morning. When Igot on the north Way up in
Lake George, it wasn't too bad, but as I got closer to Clifton
Park, I mean it really rainedwhere people had their flashers on and they
were off to the side of theroad. So if you're out and about,

(03:35):
I don't know where it is rightnow. I don't think this is
going to last. I think it'sjust this morning and then I think we're
going to clear off and have adecent day. So if it's going to
rain, now's the time to rain, right before the party start the cookouts.
I know my son is going toturn twenty five, Christopher William on
Sunday. He's gonna have a littlebirthday part with a lot of his friends

(04:00):
up at the lake. So hopefullyit's going to clear off and they'll have
a fun day to do all thethings that they want to do at the
lake. So if you're celebrating,enjoy yourself, behave and as always,
if you're out and about, don'tdrink and drive because you're just asking for

(04:20):
trouble. Also do a little housekeeper. I've been out for a couple of
weeks, folks. We had anotherdeath in the family. We had,
you know three, We've had threedeaths in the last three four weeks,
but the last one's been a toughone. My niece's husband, the father

(04:44):
of her two children, one's eightand the other one as six, got
on a motorcycle and didn't come home. So it's been a horrific, horrific
week trying to digest it, understand it. You know, I talk
about this all the time. Theunthinkable is thinkable. A lot of times

(05:05):
things happen to people. Why youask yourself why. But bottom line is
this is that you know, we'regoing to talk a little bit about putting
your house in order, whether you'retwenty five or eighty five. And as
I've said this a million times,we're a society where people love to procrastinate

(05:29):
from doing things. You know,sometimes it's an emotional sometimes it's never going
to happen to me. But Ican tell you I've lost a lot of
loved ones in the last six months. One was thirty nine, when it
was sixty two, Danny was thirtyfive. So as you can tell,

(05:50):
there was two of them that werestill in their thirties that are no longer
here. But you know, weuh, we plug forward and we say
prayers. My you know, greatestthat greatest fear I shouldn't save me.
Greatest fear, the greatest hurt forme is that those two little boys,
you know, eight and six,we're gonna have to grow up now without

(06:12):
their dad. And uh, youknow, we're going to do everything as
a family to protect them, makesure that they have I guess, the
quality of life without a father.So it's just amazing. It's just amazing.
So uh, I'm going to talk. I'm gonna do a little housework
here before we get into today's show. I'm live in the studio. If

(06:34):
you want to call in love tohear from me, it's one eight hundred
talk WGY one eight two five fiftynine forty nine. I want to thank
all of our listeners. We wehad the greatest first half of any first
half since I've been in business,as far as new clients, just the

(06:57):
overall. I had a long chatwith Nico the other day inside the office
and were kind of summarizing the firstsix months. And one of the things
that Nico said is that we're reallyreally bringing in some wonderful people, and
we are. I think of allthe people that we have as clients,
I just wish I could spend moretime with them face to face. But

(07:19):
as you grow and as you startdelegating. But I always give out my
telephone number and I always tell peoplethat if you need me, you call
me. And if I have tophysically get on a plane or a train
or a car. I'll be therein order to, you know, work
out whatever bumps in the road wemay have, or things that you're trying
to either fix or work out.Now. I will be on a plane

(07:44):
next week. My beautiful daughter,Mikaela, has decided to go to Florida
to college. Did I tell youthat? No, you didn't tell me
that. Florida Atlantic University. Youknow that who that is? Right?
That's the basket Bull Powerhouse. Yeah, they had a great run last year.
Probably with them. They lost theircoach. Their coach went to Michigan.

(08:07):
Yeah, so they brought a newguy in. I think the new
guy is from down in Texas.I can't think of the university, but
he's out of Texas. But menot Butler. What's the other one that's
down there in Texas? I can'tthink off the top of my head.
I had no sleep last night.Really, Yeah, somebody up sick or

(08:31):
you're up there my grandma. Yeah, Well that's not good. That's not
good. Well don't you fall asleepby me? Never that. You always
keep me entertained. But my daughteris going to fau So I'll be flying
into Boca and looking at her doingthe parent walk through, blah blah blah.

(08:52):
So my clients, I know,I got clients in that part of
Florida that listened to the show.So I'll be spent a lot of time
in Florida, which I do anyway, but I'll be spending more time on
the East Coast rather than the GulfCoast the Atlantic side, and I look
forward to it. I think it'sa good move on her part. She'd
liked Syracuse, but she just feltthat she needed to change, and you

(09:18):
know, mom and Dad are supportingher, and you know she's looking forward
to this next stage of her life. So Florida, here I come.
I'll be down there a couple oftimes over the next four to five weeks
and look forward to it. Directflights are good. I like direct flights.

(09:39):
We found direct flights. I'm goingto go over to book a ratan
and then I'm going to drive overto Tampa, fly out of Tampa to
come back home. I think i'dleave on the fifteenth and I come back
on the eighteenth. But what's greatabout Florida is that there's a lot of
direct flights that go from Florida rightinto allbody inter and National Airport. What

(10:03):
else did I want to say?Don't forget about our swing for the Cure
September twenty fourth, fair Ways ofHalf Moon. We're going to do that
in memory of her native honor whodied of cancer this past year, Kelly
Forsina Moran and Kelly. We willmiss her forever. She was a wonderful

(10:28):
soul. We were talking about heryesterday. She was my wife's friend for
fifty three years from first grade on. They were inseparable. And it's just
it's a sad, sad, sad, sad topic for us because Kelly and
her husband Sean were just great peopleand we had a lot of plans and

(10:48):
retirement to do some trips and allthat stuff. But I don't know,
It's just God works in strange ways. I had a guy that sent me
a message, my nephew, andhe's asking the question, why does God
do things that he do that hedoes? And it's the power of faith.

(11:11):
It's the power of faith. Youhave to have faith that the Holy
Father basically knows what he's doing.I know, when you go through a
death like we just had with ayoung father with an eight year old and
a six year old. It's justtough, tough, tough, tough,
tough, tough, So swing fora cure. Fair Way's a half moon

(11:35):
of the proceeds goes to the AmericanCancer Society. I pick up the cost
of the event. We have greatgifts. Jimmy Corkran in my office does
a phenomenal job putting that together.So if you like to go out,
have a great day. If youdon't golf, it's an unbelievable banquet.
The food there is fantastic. Mycousin Carol works there and she handles all

(11:58):
of the setup for the banquets andwe really look forward this year. If
you want to participate, just giveus a call at five eight five eight
zero one nine nine five one eightfive eight zero one nine one nine and
uh, we'll reserve a spot foryou. And the last few years we've

(12:20):
been very fortunate. God has blessedus where we've actually had great weather and
we're praying for great weather again becausenobody likes to play golf in the rain.
Right, So all right, I'mgoing to come back. We're going
to get into our topics. AsI said, I'm live here in the
studio. We got a lot ofexciting news going on right now at the

(12:41):
retirement Planning group. Uh, We'vegot an intern that will be joining us
on Monday, and he's a wonderfulyoung man from the Boston area and he's
going to be working with us onan internship program and if that works out,
just like Nico, maybe will makehim a part of the team permanently.
So and then my son, ofcourse, Christopher William and Chris McCarthy,

(13:07):
Lisa, myself, my wife Julie, we appreciate. I guess this
is a good time to say thankyou to everyone, not only our existing
clients, but also for the peoplethat joined us so far in twenty twenty
four. Means a lot to us. It's a great privilege to work with

(13:28):
you hopefully facilitate what you're looking forwith your pre and post retirement planning.
And if you are in the marketand you're looking for a team, and
I emphasize team. If you listento the show, you know that I
am a big believer in team.I'm not an I person. I'm a
wee person. And I think everybodyrealizes that it's too complicated today. It's

(13:54):
just too complicated. There's just toomany bumps in the road as far as
what can happen. So again Iwant to say thank you to our listeners
and also for our clients, andlooking forward to a bright second half for
twenty and twenty four, looking forwardto hopefully good strong markets we've had.

(14:16):
We'll go over the markets a littlebit. What's happened so far and the
first half of two thousand and twentyfour. Surprising to some, Surprising to
some, it's very narrow. Thebreath of the market is very slim.
Technology is your driver. So asI say all the time, you know,
be careful what you wish for.Sometimes this is a great time,

(14:41):
folks, This is a great timeto look at your asset allocation to make
sure you're allocated properly and readjusting.We'll be doing some of that at the
beginning of this week and next week. But again, thank you. We
appreciate the confidence it's that you placedin us. And for those that listen
to the show on a weekly basis, like a lot of people that say,

(15:05):
hey, I like your show,you do a good job, I
appreciate that too. It's nice toget a compliment every once in a while.
So we'll be right back the eightysix percenters. Do you know that
eighty six percent of the population hasno defined benefit pension plan. For most
of us, we have to takeour life savings and create a paycheck for
the rest of our lives in retirement. What is your plan for retirement income

(15:26):
distribution? How you manage your assetsduring the most critical years of your lifetime.
Nobel Prize winning economist William Sharp hascalled retirement income distribution the nastiest,
hardest problem in finance. He pointsout that investment, uncertainty, and mortality
can derail the most careful laid outretirement income plan. Call our offices today
to start the process of building aretirement income distribution plan. After forty one

(15:50):
years of being in the financial servicesbusiness, you need to start taking action
to start building your own personal retirementincome distribution plan. How do you do
that? To take action? Fiveone eight five eight zero one nine nine.
That's five one eight five eight zeroone nine one nine or RPG retire
on the web. Don't procrastinate,motivate to start building your retirement income distribution

(16:11):
plan five win eight five eight zeroone nine one nine. The greatest risk
in retirement Most of us have noplan for were 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 the Retirement Planning Group

(16:32):
today. Discuss options you should considerto protect your estate and have choices and
independence. Take action Call today fiveone eight five eight zero one nine one
nine or RPG retire on the web. Oh missus zip bed, she's called

(17:04):
in the day cat shall jump in, that paddle will up and that long
keep all fast just won't keep onst verrect. Good morning, happy fourth

(17:30):
of July weekend. We'll talk alittle bit about the markets. You know,
I'm not a big believer looking atthe markets on a week to week,
day by day basis, but therehas been some you know, negative
information which actually turns into be positiveinformation. You know negative two negatives are
equal one positive. So you know, everything is the Fed, the Fed,

(17:53):
the Fed, I've been talking aboutthat for months now. As far
as the monitoring of the Fed inflation. You know, what's the Fed going
to do? When are they goingto cut rates? Well, you know,
the FOMC, which is the FederalOpen Market Committee. Wall Street is
believing they're going to be a littlebit more inclined to start its rate cutting

(18:15):
cycle in the later part of thisyear. Probably the probability now in the
future markets, it's the September lookslike there's going to be a rate cut.
Okay, So what does that meanfor the markets? And I've been

(18:37):
doing it a long time, folks, I've been doing it for forty three
years, and I've saw the Dowbroke two thousand for the first time.
I know I'm a dinosaur in alot of ways in the financiancial markets.
But I believe that history repeats itselfin the financial markets, and history tells
us markets can continue to do well. Markets can continue to do well in

(19:04):
an environment of cooling off, butyou still have economic growth. And the
big thing, of course, hasbeen inflation, moderating inflation. And when
we talk about inflation, I don'tknow about you, but when I go
to the store today and I getone bag of groceries and it's ninety dollars

(19:27):
just for one bag, and partof that, of course is some beef,
some steak, some flabbergasted what itcosts to live. So with what's
happening right now, with the FEDpossibly taking their foot off the gas as

(19:49):
far as interest rates hike or stayingwhere they are over time, over time,
lower rates and lower inflation typically leadsto increased economic activity. Right,
So then you start hearing about revisionsrevisions for what the mother milk of equities

(20:12):
is what earnings the e word right, stocks trade on two things. Anticipation
of earnings were the actual earnings thathad been driven to the bottom line.
Right, we all know that economicsone oh one. So from a stock

(20:33):
market perspective, with economic growth potentiallysoftening, we may continue to see the
megacaps, technology and growth parts ofthe market, especially those that can deliver
on earnings, continue to perform.Well. I've had people say to me,
Dave, Jesus, you know,how can these things go? But

(20:55):
it's like anything else, you know, it's like you go to the you
know, here's the other thing.Too much of anything is not good for
you. Right, So until theFed can lower rates, right, until
you start seeing that they do reducerates in my camp, In my camp,

(21:21):
I love large cap love large capus equities. I believe still have
the ability to go in regards tothis bull market cycle as always, and
I don't have to tell that topeople that have been in the markets for
years. There's always corrections, there'salways corrections, there's always down drafts.

(21:48):
Had a long conversation with this witha new client the other day and he
said to me, he says,Dave, what are you going to do
when the market goes down fifteen,twenty or thirty percent. I said,
I'm not going to do a damnthing, because then we didn't do our
job when we originally got you intothe markets. Because what do you mean

(22:11):
by that? I said, buildingyour acid allocation is not based off of
a month, a week, ayear. We're looking out three to five
years at a minimum, more fivethan three as far as the allocation that
you should have. And I don'tknow if we're in a bull or a

(22:33):
bear, if we're in a pause, but I know one thing for sure.
The markets have consistently had corrections ofat least ten percent. I've been
in markets where they've gone down fiftypercent fifty which is never fun, right,
But I said, as long aswe have the right mix between fixed

(22:56):
income and equity, will be ingood shape, and that leads me to
fixed income. You know, I'vebeen favoring bonds now for lex six twelve,
eighteen months investment great high yield.Uh. You know, money markets
have been paying us five percent justto sit in cash right treasuries over you

(23:21):
know, four and three quarters fivepercent sometimes over five percent, which basically
gives us suspenders and a belt ona portfolio in order to protect us from
any substantial downside that you know thatcould possibly happen. It can happen at
any day in any day, youknow, the Black Swan event. So

(23:45):
in this canvas, this backdrop thatwe have right now, I personally,
Dave Kopek see bonds providing a meaningfulsource of income, coupon in total return.
You just have to be patient,you know, I said this a
couple of weeks ago. Alliance Bernsteinhas a white paper on the internet where

(24:08):
it talks about high yield bonds cangive you equity rates, the returns with
fifty percent less volatility than the stockmarket. Read it and look at it.
Are they appropriate for what you're tryingto achieve? I don't know.

(24:29):
I can't answer that until we sitdown face to face. But what I
can say to you is that wehaven't been here for a while. We
haven't had this opportunity to have strongcoupons and the ability for total return.
So don't throw the baby out withthe bathwater, you know, because bonds
have not done as well right asstocks this year. Right, But you're

(24:55):
paying for that coupon, that yieldthat it's paying you. So when we
come back, we'll talk a littlebit more about this. But I'm here,
I'm live. If you want tocall in, It's one eight hundred
talk to w G Y one eighthundred eight two five fifty nine forty nine.
I'm Dave Kopek, President Retirement PlanningGroup. We'll be right back.

(25:26):
You know how know was meant tobe kind of last the last hogever and
now haunts you here with me fromtonighte till of time. Now, all

(25:52):
right, we are back well Chicago, Chicago. One of the greatest business
trips I think I was ever onwas in Chicago. Who went there for
a conference, and you know,there's certain things that stick out in your
mind. One of the speakers gotup and spoke, and I'll tell you

(26:17):
this real quick, because everybody's justsitting there having their cup of coffee,
trying to wake up. Right,you'll get a kick out of this,
Zach. So the guy gets upto speak out of the blue, and
he's known nationally for his expertise inbuilding investment banking firms or assisting people.

(26:45):
Introduces himself, gets up and hesays, it's great to be here.
I love Chicago. It's a greatcity. And he goes, look at
all these successful guys out here.He says, who's the best financial advisor

(27:06):
in here? Raise your hand?We're all looking at one another like I'm
not going to do that, youknow, make an ass out of myself.
You know, he said it again. He says, who is the
best financial advisor in this room?Please raise your hand? And again everybody's

(27:26):
like looking at one another, kindof chuckling. Right, you know what
is this? And here's his line, which you know, there's certain things
that will stick with you. Hesays, if you don't think you're the
best financial advisor in this room,do you think that people sitting across the
table from you will think that youare? Shebang boom, that's true,

(27:52):
you know, Nico and the team. I always get a kick out of
this because I always say, youknow, when people don't work with us,
I always figure it's their problem,it's not our problem, because I
know what we put into it.I mean, I work seven days a
week. You know, when I'mnot here, I do another radio show

(28:14):
up in the ad Arondecks on Sundays, and I have to get up early,
and you know, by the timeby the time I'm done, you
know, I came back here onSaturday, I do another show from twelve
to one which is topic specific.And that's all right, I love it.
But I always say this over andover again. Uh, with the
knowledge that we have and the platformthat we have and the people that we

(28:36):
work with, you know, we'renot perfect. We don't you know,
sit here and tell everybody that we'reone hundred percent correct or experts, which
I don't like. You know,I don't think anybody's an expert, but
I do think this strategic partners andbuilding out a platform is critical when you're
going through your retirement years. Andso when we build out platforms for existing

(29:04):
clients or perspective clients, a lotof it has to do with the history,
my history of what I've seen inforty three years of being in the
financial services industry. So what doesthat mean for you as a client or
a prospective client. You know,Dan Bouchard used to always get a chuck

(29:26):
a lot of my open architecture pitch, But it couldn't be truer in today's
world. You know, there's certainproducts and investments that are suitable for certain
people and are not suitable for others. But they shouldn't be thrown into the
trash can simply because I have abias or I don't think it's something that

(29:48):
somebody should do. So we talkabout that all the time. You know,
the guy or the gal that wantssafety and guarantees versus a client that
wants to have the pedal to themetal one hundred percent equity. I've got
a client in Florida that's been withme for I think about twenty five years

(30:12):
now, and I said to himnot too long ago, you know,
you think we should get some bondsin this portfolio? Now, you know,
don't you think we should get somestrong day? He says, don't
talk to me about bonds. AllI want is stock, All I want
is equity. I'm willing to rideout, and he does. He rides

(30:33):
out when there's volatility in the stockmarket, he rides it out. When
the market sells off, he's buyingmore and it served him well. But
he doesn't pull his hair out ofhis head and jump up and down and
do screaming because the stock market isselling off, right. He basically looks
at it as the blue light special. It's a buy an opportunity. So

(31:00):
when I when I said to youearlier in today's show that I favor large
cap equities right now, the reasonwhy I'm favoring large cap is because the
market has been trading thinly. Youknow, if you look at the total
returns again this year, right,a lot of your large cap technology is

(31:21):
driving this market, driving the totalreturn in the portfolios. So there has
been some unbelievable returns, and there'salso been some eye popping returns. Will
blow your head off here. Youjust can't believe that these things have gone
up as much as they've gone up. So let's talk a little bit about

(31:45):
what I what I was getting attowards the end of the first segment.
You know, I don't know whenthe Fed's going to make the leap.
A lot of people think, youknow, the futures market is now saying
that statistically it looks like September.But I do know one thing. If

(32:06):
you're in the camp that you're lookingfor coupon and yield, now is the
time to pull the trigger. Nowis the time to pull the trigger.
They get some what I considered tobe very competitive racory turns right now.
In the fixed income market with thelonger duration bonds. You know a lot

(32:27):
of people have been short term midterm with their bonds because of the fear
of the Fed and what they're goingto do. Your bank for your buck
will be in the longer duration bonds, and I think it's in the investment
grade space, and you know theyshould perform well as economic growth cools and

(32:49):
yield soften and as the Fed ultimatelypivots to a rate cut. So get
some of that dry powder you goton the sidelines, or maybe take some
of the profit that you've had onthe equity portfolios and allocate it some maybe

(33:12):
a multi asset class fixed income.There's a lot. There was a gentleman
I just had a big meeting likeGeorgia. I had some people come in
from all over the country, andone of the individuals that came in to
have a meeting with us was highlysuccessful investment grade bond manager, but also

(33:43):
did multi asset classes portfolios, andhe worked for JP Morgan and also for
black Rock. Extremely successful man,extremely intelligent, and he is dancing in
the street for these opportunities right nowbecause he is so positive about the fixed

(34:05):
income market right now. So I'mnot telling you what to do. All
I'm saying to you is that ifyou are sitting down to do your rebalancing
in your portfolios right and you arean income investor, which a lot of
our clients are income investors, historytells us that right now could be a

(34:28):
good opportunity. The environment that we'reinvesting in right now, with a FED
poise to do some cutting of interestrates, might open up some opportunities for
us in the fixed income arena.All right, I'm going to take a
break. I got to take anotherblast of my caffeine. Here again,
I'm live. If you want toask a question, it's one eight hundred

(34:52):
talk to be gy one eight eighttwo five fifty nine forty nine. In
the second half of our program,we're going to be talking about this greatest
wealth transfer that's happening right now.That's happening right now. We're starting to
see the tip of the iceberg ofwealth transfer to the next generation. And

(35:15):
are you ready for it? Areyou positioned properly? Are your documents positioned
properly in your beneficiary forms? We'lltalk about that in greater detail, but
again one eight hundred talk GUI oneeight hundred eight two five fifty nine forty
nine. I'm Dave Kopek. Thisis the retirement planning show of you right
back. The eighty six percenter isDo you know that eighty six percent of

(35:37):
the population has no defined benefit pensionplan. For most of us, we
have to take our life savings andcreate a paycheck for the rest of our
lives in retirement. What is yourplan for retirement income distribution? How you
manage your assets during the most criticalyears of your lifetime. Nobel Prize winning
economist William Sharp has called retirement incomedistribution the nastiest, hardest problem in finance.

(36:00):
He points out that investment, uncertainty, and mortality can derail the most
careful laid out retirement income plan.Call our offices today to start the process
of building your retirement income distribution plan. After forty one years of being in
the financial services business, you needto start taking action to start building your
own personal retirement income distribution plan.How do you do that? To take

(36:21):
action? Five one eight five eightzero one nine one nine. That's five
one eight, five eight zero onenine one nine or RPG retire on the
web. Don't procrastinate, motivate tostart building your retirement income distribution plan five
win eight five eight zero one nineone nine. Will you run out of
money in retirement? Will your investmentsprovide income for possibly decades? How do

(36:42):
you navigate the two greatest risk inretirement sequence of returns in longevity At the
Retirement Planning Group, Our Bucket ofMoney approach addresses these concerns and we offer
a complementary consultation to discuss this withyou. Call our office today for a
free complementary consultation to develop your ownpersonal retirement income to distribution plan at five
eight fighting zero one nine one nine. That's five eight fighting zero one nine

(37:06):
one nine. You don't know me, but I'm your bro almost wasted this

(37:30):
blooming. You don't know my timein your world? Well, soon the
time will tell you telling me thethings about to me. I know,

(37:58):
my God. All right, weare back. You got my blast,
the caffeine and me. Hopefully you'reenjoying your long weekend. For some of
us, we had Thursday, Friday, Saturday and Sunday. If you're working,

(38:19):
that's okay, don't worry about that. I'm working too. Let's go
to Joel in Kingston, the beautifulcity of Kingston. Morning, Joel,
Hey, good morning. How areyou. I'm good? Thanks, I'm
just call enough about my situation.So i moved to this country about eight

(38:40):
years ago, and I'm forty sevenyears old. I have maybe like seven
eight years stayed into social security atthat age. I've just started an IRA
and I have was a small bitof a what's it called it? A
four on one k seven years old. I don't think I'm in a great

(39:00):
position to retire at some point goingforward. I've been considering taking a job
with a state or a town.Well I can get that tension and stuff,
and I'm just wondering, do youthink that's a good a good way
of making a secure retirement. Well, congratulations and welcome to the great USA.

(39:22):
God bless you. You picked agood country to come to, even
with all of our problems. Evenwith all of our problems, it's still
a pretty good place to live,isn't it. That is what I'll say
to you. I don't think youcould go wrong working for any organization that

(39:42):
gives you the p word, thepension, because a lot of times when
you get the pension benefit, youalso get healthcare and some other things that
are do at retirement. At fortyseven years of age, you know,
time is not your friend because there'scertain times that you have to put in
in order to get the percentages ofthe pension benefit. So if you're going

(40:06):
to do it, Joel, Iwould suggest that you do it sooner than
later. But uh, you know, here's the question that I always ask
people. The pension is great,maybe the health insurance benefit for your retirement
years, but you got to enjoythe job that you're going to for the

(40:27):
next eighteen or twenty years. SoI think that's got to be part of
your you know, equation. Also, yeah, I hear you. I'm
kind of realistically, I'm looking tohave to work into them about seventy I
think to be able. The problemwith theire Yeah, at least some kind
of you from Ireland. I'm fromIreland. Yes, you could tell by

(40:51):
your Yeah, my wife's families.My wife's families, the Keiths are from
Ireland. Oh, a lot ofothers seping over here. Yeah. I
did give some time working in thatsystem before, and I didn't join the
job and I had to leave becauseit was a non call situation. Yeah,
but now my kids have gone outto be well and I'm reconsidering that.

(41:15):
So if you went back to whereyou were, do you have time
that you've already that would be creditedto you. Yes, I have two
years and nine months. Okay,good, and I divest. I divested
after five years, yeah, whichis great. I would say, hey,
listen, just just you know,a shot in the dark. You

(41:36):
know people, most individuals today,nine out of ten people do not have
pension benefits. And if you gethealth insurance with that, I think,
my good man, you're going tobe in you know, decent shape.
Decent shape. And then you keepon, yeah, you keep on doing
your four oh one k R Iraise. I would tell you to start

(41:57):
working with a financial advisor because theycan help you. They can be of
assistance to you. If you needsome assistance, give me a call at
my office. I'd love to helpout a brother from Ireland. Yeah,
do you guys have do you guyshave a minimum amount? Do you guys
work with? No? No minimum? We I refuse to do that.

(42:19):
No, I don't care if you'vegot five dollars or five million. We'll
work with you. We'll help youout. Okay, Yeah that sounds good.
Actually I was make an appointment atsome point and I was trying to
get started out next year. Butlook forward to meet and you give us
a call and enjoy the rest ofyour weekend and I look forward to our
chat. Yeah, I was hadagain. Thanks you so much. Okay,
God bless you know. We livein a great country, a country

(42:55):
like no other as far as I'mconcerned. You know, I've met a
lot of people in the forty threeyears that I've been doing this, and
I think anybody that's had success pinchesthemselves sometimes and just says, you know,
this is a great country where youcan basically come from nothing and create

(43:15):
yourself an unbelievable wealth. And youknow the thing is is that I've been
fortunate and I've been blessed in mylifetime, not only as far as the
things that I've created. But also, you know, I'm sixty eight years
of age and I start seeing somefriends of mine a lot younger that are

(43:39):
passing away, and you know,I say to myself, you know,
why them not me? And youknow, how does someone have this secret
sauce where you can go on forseventy five eighty eighty five years? And
I think, you know, thebig thing for us at the retirement planning

(44:00):
group, like this gentleman that justcalled in, shame on us if we're
not willing to sit down with himand help him get himself in a better
position financially because he doesn't have enoughmoney the minimum in order to walk in

(44:21):
our door. So that's going tolead me into a little bit of what
I want to talk about today,because we're starting to see it, folks,
because the early stage of the boomergeneration is now starting to pass away,
and with that passing away is thebeginning steps of the greatest wealth transfer

(44:51):
in the history of mankind. Andit's going to be you know, there's
all sorts of guestimates and estimates howmuch it's going to be, but it's
somewhere between seventy to eighty trillion dollarsof wealth that will be passed on from

(45:13):
one generation to the next. Anda lot of people say, well,
how is that going to affect thestock market the fixed income market. Well,
there's a lot of economists that aredoing some calculations, but I think

(45:34):
what you have to do, andone of the things that we're trying to
figure out here is the amount ofthis wealth transfer. I'll use an example,
and as an example, I hadto chat with a good friend of
mine this past week up in LakeGeorge, and I was very fortunate to

(45:58):
be able to buy home up thereyears ago. Today I wouldn't be able
to because the prices in Lake Georgehave just skyrocketed, skyrocketed, like what
used to be you know X isnow ten X. And I said to
him, he's in the real estateindustry. I won't mention his name because

(46:20):
he's highly recognizable and well known.I said, where is this going?
Where is this going? Lake George? Is this going to be a society
of the have nots and the haves? I mean, the people that can't
afford to stay here anymore are goingto sell, and the people that come
in are going to pay these astronomicalamounts of money. And he said Dave.

(46:45):
Lake George is becoming the Lake Tahoeof the East Coast, and he
says, I have people from allover the country that want to buy properties
here because of the notoriety and thearts getting as far as the quality of
the water, quality of life.Now. Last night, my wife,

(47:06):
my son Christopher, his girlfriend Marissa, my beautiful daughter Mikaela, and her
friend Marissa who's in from California,we went and had dinner up in Bolton
Landing at a place called the Huddle. Beautiful, great dinner. It's just
the whole ambience. I mean,Bolton Landing is so different from the village.

(47:30):
I mean it's an apple to anorange. The Bolton's are a little
bit more of a New England vibewhere I think, you know, the
village is a little bit more WhatI look at is almost like a great
escape. It's almost like a carnivaltype of environment with the arcades and all
the other stuff, which is youknow, it's fine because you know,
kids need that when they're growing up, and it's a good spot for mom

(47:52):
and dad to go to. Butwhat I'm getting at, what I'm getting
at is that if you have threekids and I see this happening. That's
why I'm bringing it up. AndI don't care if it's Lake George or
if it's the Secondaga, or it'sone of these other lakes that are in
the Capitol District region. When someonedies and the family wants to keep the

(48:15):
house, and you've got three kidsand one is living in Colorado, any
other two are local, how doyou facilitate that? How do you facilitate
that? Where's the liquidity? Sowith this greatest wealth transfer that we're starting

(48:38):
to see, it's not as muchof how or what type of asset is
being transferred, it's the mechanics ofcan it be retained? Can it be
retained? Is there a plan inplace for this great wealth transfer that's already

(49:01):
started and in order to facilitate whatmom and dad want and also what the
children want. And when I sayit's complicated, it's an understatement. It
is extremely complicated. Because if youhad told me the first house that I

(49:22):
bought, my first house I boughtin Latham for sixty nine thousand dollars.
I paid more for my pickup truckthan I did for my first house a
year and a half ago. Imean that's how much capital appreciation that we've
had in real estate, in someareas more so than others. So in

(49:45):
the second hour of today, I'mgoing to be talking about the Great Wealth
Transfer, how this seventy to eightyI mean, one company has it at
eighty four trillion dollars. It's awhole hell of a lot of money,
and how that money is going tobe dispersed to your family, and how

(50:09):
you get equalization because not only isit real estate, it's cash, its
bonds, it's equities, it's certainthings that are in the house, it's
guns, it's cars. You cango through a whole laundry list of things
that adult children would like to retain. And I always say it's better to

(50:35):
have the conversation up front and knowexactly exactly what is wanted, and then
it's going to eliminate what I consideredto be probably high anxiety, stress and
the possibility because I've seen it,the possibility of the family deteriorating, because

(50:58):
there wasn't a chat about this unbelievablesurge in values of your home, your
stocks, and the wealth that you'vecreated in your lifetime. This isn't about
asset allocation. This isn't you know, picking the right stock. This is

(51:20):
having a real gut check as faras what you want and looking at it
in today's terms, as far asif something happened to me today or tomorrow
or in the very near future,what have I created for this great wealth
transfer huge? Well, we'll getinto it in great detail. So I'm

(51:46):
Dave Kopek. This is the RetirementPlanning Show. We're going to be back
after the local news and the nationalnews. Stay with us. We'll see
you right after the news, Livefrom the wgy iHeart Studios. Welcome to
the Retirement Planning Show with your hostDave Kopek from the Retirement Planning Group.
Every week, Dave and his teamdiscuss the ways they can help people make

(52:08):
informed decisions about a wide array ofretirement planning information that can support you and
developing a more certain financial future foryou and your family. Now it's time
for Dave Kopec w G wise RetirementPlanning Specialist. Hope you to that spacious

(52:32):
guys am the waves A ray aperfort Man Majesty is r rooted band.

(53:00):
When I wait a minute, Ilove you? You said, shy don't
he do? Shake his face onme New York because me Crown, I'm

(53:22):
good. He told me he won. He the mood from see. God
bless America, God bless our vets, our military, anybody that wears the

(53:50):
uniform today. Tough job, toughjob. Biggest mistake I made my life
was not to serve my country.Had the opportunity, and I didn't do
it when I was at Santa College. But I wish I had done to
it. I wish I had movedforward and served in some capacity. Some

(54:15):
countries mandate. I know that inIsrael, male or female, you have
to serve, and I think itmakes all the sense in the world.
Give you a flavor of what it'slike to protect the USA. Zach.

(54:39):
I didn't want to look this morningbecause I really didn't want to look,
and I just looked. What thehell is going on with the Yankees?
You're a sports buff, get asports show. What is going on with
the Yankees? They got two guys, that's it. I think that's the
problem, Soto and Judge. That'sit. Man, oh man, I

(55:04):
got a stomach ache. They startoff, you know, in the first
few weeks of the year, firstmonth. This could be the greatest team
of all time. They could havethe greatest record of all time. Now
they're lucky they get swept by theReds and they got beat yesterday. I
think they need to get a guythat can be a secondary closer in there.

(55:24):
Well, they better do something prettyquick or they're going to be you
know, they keep on playing likethey're playing now, Aaron Judge is going
to be looking for another job.I'm not a baseball fan that much.
I like the Yankees because my fatherwas a Yankee fan. But bottom line
gets down too, is I don'thave like three or four hours to sit

(55:45):
around and watch a baseball game,do you. There's one hundred and sixty
two games. So I watch themwhen I can, but I don't make
sure I sit down and watch everygame. I'm with you. I'm with
you. So we're going to talkabout some basics about this greatest wealth Transfer.

(56:05):
And the reason why we're going todo that is because there's certain documents.
There's certain documents that you should havein place to make sure that your
money, your assets are going togo where they're supposed to go. And
the most basic one, the mostbasic one, of course, is a

(56:27):
beneficiary form. And when we saybasic because it's on so many documents and
it controls so much wealth. Doyou realize that beneficiary forms on iras four
O one k's sep iras keos youcan go through the whole list is over

(56:52):
forty trillion dollars right now. Fortytwo that's how much money is in qualified
plans today. And it's the documentthat has probably looked over too much and
has done the least amount of incorporationinto your estate planning. And I know

(57:17):
that a lot of people out therehave a few dollars and some people have
millions of dollars that are being controlledby those forms beneficiary forms. So whether
it's life insurance, your four ohone K, your IRA, whatever it
may be, that document, Okay, once you said it, don't forget

(57:42):
it. What do I mean bythat? A lot of times you've heard
me talk about horror stories where peoplehave done IRA forms, filled out the
beneficiary form and then decided, youknow what, I'm going to get married,
and then to get married, getabout the beneficiary form. Something happens

(58:04):
and the wife and the kids orthe husband and the kids, they don't
get the assets because when it wasoriginally set up who was named as the
primary beneficiary, the mother or thefather, And then you got what a
nightmare? This is non uncommon,folks, it's common. All you have
to do is do a little searchon it. So that's one of the

(58:25):
things that we do. We alwaysverify that the beneficiary forms are not only
exactly what people want, but alsothey understand what happens when there is a
death. There's also the ability foryou to do a disclaimer. They talk

(58:45):
about this all the time, andmost people just goes in one ear right
out the other year. They don'tdo anything about it. Why do you
want to do an IRA disclaimer?Because if you have a lot of money
and qualified plans a wife. Notuncommon for somebody walk into our office,
they roll their four O one Kinto their IRA and they have well over

(59:07):
a million dollars. I don't carewhat anybody says. That's still a lot
of money. That's still a lotof money in today's world. Over a
million dollars and mom and dad haveit. And we'll just go with the
statistics, because the guys always diefirst, right, so we'll go with
the statistics. We'll say that thelarge IRA is the father's. Then the

(59:30):
mother needs it for wealth replacement becausethere's no pension benefit. They got great
sold security benefits because they held offand they waited till later in life,
and they got more than adequate amountsof cash flow from solid security and the
required minimum distribution of what they're receivingoff the IRA, plus a little bit

(59:52):
of money that they have in thesideline stocks and bonds and cash. He
has I love you planning on isIRA. I love you, sweetheart,
I leave everything to you. Andshe goes, I love you, sweetheart,
and I leave everything to you.Is that a good plan? Nope?

(01:00:14):
Because what happens if he passes awayand the wife is now in her
eighties and is probably going to goto assisted living or a nursing home.
Where's the money going to go?Depends on the zip code, depends on

(01:00:35):
the state that you live in,especially if they're getting Medicaid benefits. So
if Papa passes away and Mom isstill alive, but Mom has got one
foot headed in the direction of anursing home, she has children, their
children, Bobby, Billy and Susie. She has the ability to disclaim IRA

(01:01:06):
assets. What does that mean?That means before she takes any money off
of that IRA. Do not touchthe IRA. Only take from the IRA
what is necessary for wealth, replacementand quality of life. So what you

(01:01:28):
do is Mama takes Papa's IRA,and she says, you know what,
I don't need this million dollars.It's too much and I'm not really going
to utilize it. My quality oflife right now is more, you know,
the simple things. There's probably notgoing to be too many more vacations

(01:01:50):
and trips, et cetera. Sowhat does she do. She disclaims she
has the ability because the form hasbeen filled out. Fidelity has a form
disclaimer for him. So what doesshe do. She disclaims the percentage that
she wants to retain, and thenthe children get the percentages that are locked
down inside the form. So Billy, Bobby, and Susie a third,

(01:02:20):
A third a third. Right,Mama says, I only need one hundred
thousand dollars of that million dollars IRAfor quality of life. So I'm gonna
get the rest of the money.I'm gonna disclaim it is if she had
predeceased her husband, right, andthat money is gonna go automatically to the

(01:02:42):
children. A third a third,a third three hundred thousand, three hundred
thousand, three hundred thousand, getsit out of her estate, gets the
money to the kids this wealth transfer. And also now the clock is ticking

(01:03:05):
on the kids because they are nonspouse beneficiaries and they have to have that
money out of those iras within tenyears. So the three hundred thousand dollars
has to come out ten years atthe latest. That's a simple step,
that's not overly complicated. That's notmultiple trips to an attorney blah blah blah.

(01:03:30):
That's a trip to your financial advisorand just saying listen, I need
to have a chat about my beneficiaryforms, not only as far as my
four to oh and K, myIRA, my life insurance, my annuity,
anything that has a beneficiary form,where is it going. Now here's

(01:03:54):
a nine to one one because we'veseen this in a hour. There are
annuity contracts, non qualified annuities thathave the ability for beneficiaries to stretch the
money out over an extended period oftime. Some of the insurance companies do

(01:04:19):
not allow you to do that.They want the money out the door in
nothing less than five years. Soif that is the case, you can
do what they call a ten tothirty five exchange, okay, where you
can move money from one insurance contractto another insurance contract, and it allows

(01:04:41):
you to have a longer term inorder to have the distribution paid out.
Why is that important because a lotof times when you're receiving these assets,
you're in your greatest earning years,so you're going to eliminate some of that
tax liability. So beneficiary forms inconjunction with all of the assets that you

(01:05:10):
own under your estate that are controlledtrillions trillions of dollars are controlled by beneficiary
forms. So some of the secretsof wealth transfer are simple. They're not
overly complicated. It's just knowing thelandscape and understanding what has to be done

(01:05:32):
in order to have a successful wealthtransfer. Okay, when we come back,
we're gonna be talking about some othertopics about this greatest Wealth Transfer.
And again, if you have anyquestions or comments, I'm here in the

(01:05:53):
studio, love to have a chat. One eight hundred talk WGY. That's
one eight hundred eight to five nine. Hopefully you're enjoying your Fourth of July
weekend. I know that the weather'sgonna the weather's cleared up a lot since
I've been here, Zach, lookslike it's clearing off, which is good.

(01:06:14):
All right, We'll be right backthe eighty six percenters. Do you
know that eighty six percent of thepopulation has no defined benefit pension plan.
For most of us, we haveto take our life savings and create a
paycheck for the rest of our livesin retirement. What is your plan for
retirement income distribution? How you manageyour assets during the most critical years of
your lifetime. Nobel Prize winning economistWilliam Sharp has called retirement income distribution the

(01:06:38):
nastiest, hardest problem in finance.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

(01:07:00):
you do that? To take action? Five one eight five eight zero one
nine nine. That's five one eightfive eight zero one nine one nine or
RPG retire on the web. Don'tprocrastinate, motivate, and start building your
retirement income distribution plan five win eightfive eight zero one nine one nine.
The greatest risk in retirement. Mostof us have no plan for or insurance

(01:07:21):
to cover the expense a long termcare event can impoverish a spouse, drain
your life savings, and cost stressand anxiety on your family. What is
your plan and how will you payfor a long term care event? Call
the Retirement Planning Group today. Discussoptions you should consider to protect your estate
and have choices and independence. Takeaction call today five one eight, five

(01:07:43):
eight zero one nine one nine orRPG retire on the web. We're out

(01:08:25):
with you. It doesn't matter.Well, when do we im my dear,
that's a matter. Tibass is muchtoo quick. All right, We

(01:08:46):
are back Chicago. Great group,No phobe, another group like that,
the horns. Everything everything's digital today, you know, my wife was yelling

(01:09:08):
about that the other day. Igot a digital water heater and it's been
giving us trouble because it thinks thatit knows better than us and shuts off.
Went to a funeral yesterday where Ilived lately funerals, So I was
at a funeral yesterday. We walkedinto the church, Julie and I and

(01:09:31):
beautiful church. I won't mention whereany of that nonsense, but just a
beautiful church. And there was awoman at the piano, baby grand piano
in the front by the altar,with a microphone, and she played the
piano. In the very beginning,she was just playing music, not singing

(01:09:55):
or anything. And then she startedsinging, you know, the hymns,
the songs. What a voice,I mean, spectacular, And the acoustics
in the church were just unbelievable.And I just looked at Julia, I
said, this woman's unbelievable. Butthe thing is is that I'm always I'm

(01:10:15):
always jealous of people that have thattalent. I wish I could sit down
and play the piano. I wishI could sing, you know, I
just you know, you know,I have a brother that's extremely talented,
who's an actor and plays piano,plays all sorts of instruments, sings,
you know, the whole nine yards. You could have been a male model.
I was my own mind, myown mind. Uh, you're a

(01:10:45):
wise guy. You are a wiseguy. So he's throwing he's throwing hard
balls at me right now. Boom, All right, let's get back into
this wealth transfer. You know,no matter what kind of assets that you're
transferring. There's one particular type ofthing that I am a major believer in,

(01:11:13):
and it's called a trust, andit depends the type of trust and
what you're trying to achieve. Andwhat I can say is this, after
doing this for such a long periodof time, trust can make the transition
go extremely smoothly. And it cango so smoothly that your plans, your

(01:11:40):
plans keeping more of your money inthe hands of your heirs, your children,
your grandchildren, your great gant grant, depending on how big the pool
the money is. And you canretitle a lot of these assets that are
owned by the trust, real estate, cash, securities, your life insurance

(01:12:05):
policy, proceeds, tangible, personalproperty. Almost all types of assets can
be distributed through the trust. AndI'm always flabbergasted that when I sit down
with people and they'll say, whatkind of legal documents do you have in
place? None? You like playingwith dynamite, right, Why? Well,

(01:12:31):
what are you going to do?Something happens? You know, do
you care how this state is goingto be distributed? And it was going
to receive the money? Just haven'tgotten to it. I just told you,
I just had family members thirty nine, sixty two, fifty eight and
thirty five that just died in thepast six months. You got to get

(01:12:55):
to it. That's why people,you know, sometimes Neco and them say,
you know, why, why areyou pushing these people so much?
You know, why are you pushingthem to get this done? And I
push them because stuff happens. Stuffhappens, And shame on us if we

(01:13:16):
haven't pushed you to facilitate. Imean, why'd you walk in the door.
Did you walk in the door forus to just stab a chat patch
you on the head and say,geez, you did a good job.
Can you think about doing some ofthis stuff please? Right doesn't make a
whole hell of a lot of sense. So when you're transferring wealth, this

(01:13:41):
is the key thing about trust.It helps to preserve relationships with your family
and loved ones. Say that again. It helps preserve relationships with your family
and loved ones, right, Andit's incentivizes good behaviors and lifestyles. It

(01:14:03):
encourages good stewardship of this wealth.And it also helps you shield your beneficiaries
from losing the wealth through evil sonand laws, daughter laws, lawsuits,
unsuccessful business ventures, whatever it maybe. Because who owns the asset,

(01:14:26):
the trust right trust, and they'recomplicated. They're complicated. You know.
Lup Piro does a show on hereevery week before I do my show from
twelve to one. I listen tohis show every week because they're smart guys.

(01:14:46):
They are very smart at what theydo. But the bottom line is
this. Simply creating a trust doesnot guarantee that a inflic will not arise.
But if it's done properly, andit's set up properly, it's locked

(01:15:15):
and loaded, right, locked andloaded, because most trust cannot be challenged.
So a lot of people say tome, Dave, you know what,
this is what I'd like to do. You know, I've got these
three kids. All three are different. You know, Bobby's in a situation

(01:15:36):
where he's just killing it. Billyis doing great, but Susie is not
doing so hot. You know,she's had some issues with you know,
marriage, you know, no pensionbenefit. I just want to make sure
that she's okay and when she getsto retirement age, that there's a pool
of money there for retirement. Okay, can you do that with a will?

(01:16:00):
Well, no, you can't doit with will. Most of the
time, you have to do itwith a trust, and you can set
up a pension benefit a lot ofdifferent ways. We'll get into the products
and how to implement it. Butyou're passing your wealth to your family,

(01:16:27):
specifically to the individuals that are receivingit based on their quality and station in
life. And the more dialogue youhave with your family about this, you're

(01:16:53):
not gonna upset anybody your errors becausethere's a lot of different ways in order
to get around equalization. Making surethat the pie is cut three piece pie
for the three kids, right,it's not you know, well, you're
getting a bigger piece than me.That reminds me last night, Zach,

(01:17:23):
I want to hear a sad story. Last night, I said, everybody,
anybody want dessert? No, wedon't want dessert. I said,
you know, they got key linepie here. It's my favorite pie,
key lime pie. I said tome, you can get one to go,
we'll take it home and we'll shareit at home. Guess where it
is still sitting on the table atthe restaurant. I left it there.

(01:17:49):
That made me very sad last night. So if you're interested in passing your
wealth through your family. You're interestedin open communication, in a thorough discussion
of the keys to success of wealthtransfer. We're here. We are the

(01:18:11):
retirement Planning Group. We do thisevery week in some capacity. So if
you want to say, screw it. Whatever happens, happens, they can
fight over it. Well, don'tcall us then, because we're not your
team. That's not what we do. We want to make sure that there's
pillow planning. Put your head onyour pillow, you go to sleep.

(01:18:35):
You have a pretty good idea what'sgoing to happen and allows you to rest
in peace. And the worst thingyou can do is to have a plan
and don't implement it. The Pword procrastination. Start it, finish it,

(01:19:00):
move on with your life. I'llbe back for our last segment.
This is Dave Kopek. This isthe Retirement Planning Show. We'll see you
after the news. Don't feel itdry man say man be back, let

(01:19:32):
him on fy some my say,i'na let me let the people is the
way to make them smile. He'sa letting to do what you gotta get

(01:19:56):
a messy, get it up.I go listen to that all day brings

(01:20:23):
me back to my youth. Goodmusic. The hell with it. Let's
just play music. You're gonna havethe last the last one. You're gonna
have to rock our world a littlebit. So you go into your library

(01:20:45):
there. You did a good jobtoday, though, Doc, you're gonna
have to rock our world with thenext one. Okay, you're gonna have
to kick it. You need akicker. I ra a distribution planning.
There's the topic that I want totalk about because everybody wants to keep their

(01:21:06):
money the same, and it's notgoing to happen because the government is going
to force you to liquidate your IRAwhen you least want the distributions. Think
about that, you have all thatmoney in an IRA four oh one k

(01:21:27):
tsp whatever it may be, andjust sitting there, boy, look at
that, all that money. Wellit's not your money. Well good portion
of it is yours, but there'sa good chunk that's not yours. And
that's what the state and the federalgovernment are hoping that you do. You
just sit there and play tittay winksbecause they're going to get their cash off

(01:21:51):
of R and D required minimum distribution. We are big believe after doing this
for such a long period of timeto get tactical with your IRA assets in
the early stages of your retirement years, because it will facilitate many more options

(01:22:15):
to you as far as wealth distribution. Because if I had a nickel for
every time I sat down with somebodyand they said, you know, I
got this four oh one K,I got this New York State deferred compensation,
I got this TSP, and I'mnot using it. So what are
you doing with it? Let's justsitting there. Well, it's not going

(01:22:36):
to be sitting there too much longerbecause our friends are going to knock at
your door and say, now yougot to take distributions. And the larger
the distribution becomes as you age,they don't get smaller, they get bigger.
The uniform lifetime table is the methodof madness for IRI etribution planning.

(01:23:02):
So for people that are listening tothis show that are still in the accumulation
phase, please do me a favorand start putting some money in rough four
O one K. You don't getthe deduction now, but you will smile

(01:23:23):
from ear to ear when you getinto your retirement ears because you have some
tax preferenced money and I know thatyou've heard me say this a million times,
but a lot of times when peoplecome into us, their home and
their IRA make up seventy five toeighty percent of their net worth, their

(01:23:44):
home in the IRA. Think aboutit in your own personal situation. So
we talked a little bit about disclaimingIRA assets. We talked a little bit
about how to allocate your beneficiary forms. We talked a little bit about the

(01:24:05):
ability for you to utilize the moneyduring the go go years, not the
slow go or the no go.Right, what the hell good is it
if it's sitting there and you're gettingthese large distributions and you're sitting there eating
mapo, Right, you didn't takethe trip, you didn't take the crews.

(01:24:25):
We are also big believers to giftassets. We believe in gifting assets
because when you gift assets, youget that big smile on your face,
and that smile on your face allowsyou to see your children receive some of
the reward of your hard working years. Right, Gifting assets is a great

(01:24:53):
way to utilize some of those qualifiedassets, especially if you're already in the
RMD mode. My buddy Paul inConnecticut, you know Paul I got your
message. I got you. Okay, I got your message. I've been
out of the office for the lastcouple of weeks because I've had a lot
of death in my family. SoI'm sorry. Yeah, I'm sorry too,

(01:25:14):
pell, But you know I lovedI love your message, and I
do have a little surprise that's comingto you. Just so just a little
tidbit. Okay, Well, lookat you're one of about four entities I
call, including a horse racing radionetwork and some local guys here, and

(01:25:35):
that email to you was a directcall to a show that's coming up at
ten, and I thought they gaveme a good answer. But putting that
aside, I'm a big proponent ofroth conversions. Yeah, and I've had
a running battle with my best friend, if you want to call it that
on the obvious reason to do it. And I said, look at,

(01:25:56):
forget this five year holding period thatyou can't touch the money. It's a
issue with you. So the firstthing is people if they accept they're not
going to touch the money for fiveyears. The next argument is always it
depends what you think interest rates aregoing to do, But really no one
can forecast that. So I considerthat a moot issue because it's just like,

(01:26:16):
what's the FED going to do?But the most important reason it's useful,
in my opinion, is because theinterest on the conversion money is forever
tax free. And I've done modelingand after a certain period of years,
the younger you do it, it'sa home run. Yep, it's not

(01:26:40):
even debatable. So if you dostreams of income after tax before tax,
there's a break point. And Iknow you understand what I'm saying, but
I'm trying to figure a way toconvince people in a simplistic way. And
the bottom line on this is it'sa complex area that's hard to convince people

(01:27:01):
to do them. It's just thatthat's when you brought it up. That's
my just between you and I.To me, it's a no brainer.
You said, you said time,and I think time does have to come
into it a little bit. Butthe longer you go, the more you
start salivating that you made the rightdecision. You know, we had no

(01:27:24):
question. Yeah, Nico in myoffice is extremely talented. He's very bright.
He actually had a software package thatbreaks this down for people that have
qualified assets, when you basically showthem a couple of different venues to spend
down into a life insurance policy ownedby a trust and the wroth conversion.
Because you can do both, youdon't have to do one or the other.
And when you look at the numbersover a period of years, it

(01:27:46):
is unbelievably favorable to the person thatactually implements the plan. Hey, one
other point on the wroth out situation. I also went to my best friend
and made a point to him thatand again you're at another level on that

(01:28:08):
point you made with Nico. ButI said, look at I'm big on
cash flows and after tax, beforetax, and I go, Paul,
my best friend's name, Paul.I go look at if I put one
hundred grand in row money as anexample, and had a annuity, because
I'm not a big fan of deferredincome annuities or spis single purpose of median

(01:28:29):
annuities. But if somebody's worried,it's forever tax free. It's really simple
math, like you get seven granda year at my age forever and even
though it's one hundred grand, andyou do one hundred grand times fifteen years
divided rather and it's kind of abreak even. It gives you a stream
kind of like to match your socialsecurity and that's in a scenario where there's

(01:28:55):
no tax forever. So you couldgo the other way. And here's the
other argument. Take the money andput it in the riskiest assets possible.
They could hit a home run andyou have a blowout. And that even
makes sense with a small sell ofmoney. Yep. So that's kind of
my Russ theory. But you broughtup something I don't know. I don't
know a whole lot about. Sowell, that's it, Dave. I'm

(01:29:17):
sorry about your Yeah. Hey,listen, brother, I'll be in touch
and listen. God bless and enjoythe rest of your weekend. Paul,
Hey, take care of yourself,all right, God bless. Very smart
guy, very smart guy, rightthere. Uh, he gets it,
he gets it, but he spendshe spends time. He does his own

(01:29:40):
work though, he does his ownimplementation. So but I'm going to take
the last break. We probably havetime for one more phone caller, if
you'd like to chirp in, andwe're going to talk a little bit more
in detail about IRA distribution planning,especially during the early stages of your retirement,

(01:30:01):
because there are ways in their strategies, Like Paul just said, in
order to implement plans that not onlygive you peace of mind, but when
you pass the money over to thenext generation, it's all tax free.
Hear that it's all tax free.So when they reach in the bucket,

(01:30:23):
they get a bucket of cash minusno taxes. They get a dollar for
every dollar, and I don't haveto worry about Uncle Sam or the state
that they're residing in. It willdiscuss, discuss that. But again,
if you'd like to partake, ourtelephone number is one eight hundred Talk WI
one two five fifty nine forty nine. I'm Dave Kopek. Be safe,

(01:30:47):
Happy Fourth of July weekend. We'llbe right back. The eighty six percenter
is do you know that eighty sixpercent of the population has no defined benefit
pension plan. For most of us, we have to take our life savings
and create a page for the restof our lives in retirement. What is
your plan for retirement income distribution?How you manage your assets during the most
critical years of your lifetime. NobelPrize winning economist William Sharp has called retirement

(01:31:12):
income distribution the nastiest, hardest problemin finance. He points out that investment
uncertainty and mortality can derail the mostcareful laid out retirement income plan. Call
our offices today to start the processof building your retirement income distribution plan.
After forty one years of being inthe financial services business, you need to
start taking action to start building yourown personal retirement income distribution plan. How

(01:31:35):
do you do that? To takeaction? Five one eight five eight zero
one nine one nine. That's fiveone eight five eight zero one nine one
nine or RPG retire on the web. Don't procrastinate, motivate to start building
your retirement income distribution plan. Fivewin eight five eight zero one nine one
nine? Will run out of moneyin retirement? Will your investments provide income

(01:31:56):
for possibly decades? How do younavigate the two greatest risk in retire retirement
sequence 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 ead zero one nine nine. That's

(01:32:19):
five eight five eat zero one ninenine. How right? You know my

(01:33:08):
soft spot, my favorite songs.Ever you heard the story. I told
you about the story, right.He was in Like Georgia a couple of
years ago in Bolton Landing. Walkin the streets of Bolton Landing, mister
Clapton, Yeah, staying at theSagamore. All right. Some of us

(01:33:41):
in our lifetime have been successful withour investments the job that we worked at,
and some of us have been fortunateenough that we have the ability to
have a certain portion of our investmentportfolio that we're not going to need in

(01:34:05):
our lifetimes. And I remember yearsago being in a presentation with Dan Bouchard,
and Dan and I were partners foryears. He was an executive at
Amica Insurance and then left Amika afterhe had his pension and worked with me

(01:34:27):
handling all of our protection products.And he showed me, he says,
Dave, I want to show yousomething. You got to go to this
presentation and it was about IRA distributionplanning for wealth transfer. And I sat
in there and I watched it.Then I came out of the meeting and
I sat down in his office andI said, this just seems too good

(01:34:50):
to be true. He said itisn't. And what we were talking about
is survivorship life insurance versus roth IRAconversions. That was the presentation when I
was just talking to Paul about AndI'm going to keep this simple just because

(01:35:14):
in these don't hold me to thesenumbers, but we'll say that we're somewhere
in the ballpark. Okay. Buta husband and wife had two pension benefits.
They were both retired teachers. Thisis an actual story, and I'm
just trying to remember the numbers becauseI had them up on the board and

(01:35:36):
one of the presentations that we usedto do, and they had no desire
for utilizing their four or three Bwhich is their tax sheltered annuities. One
had like one hundred and eighty thousanddollars and the other one had like one
hundred and thirty thousand dollars. Sowe sat down. They were making two

(01:36:00):
hundred thousand dollars almost of income betweenSocial Security benefits and both of their pensions
from the school districts. And wegot into a discussion what were they interested
in doing with these assets? Andthe wife said, we don't need them,

(01:36:24):
and the husband said, we don'tneed them, but they're kind of
like a safety valve. You know, they're nine one one assets. We
need a roof for a new caror whatever it may be. I said,
well, you're going to need likethree hundred and fifty thousand dollars for
a roof or a car. No, so let's let's look at an option
here. They had great income,they had an ice house, they had

(01:36:50):
no debt. Right, they wantedto leave assets to their children and their
grandchildren. So I said, let'stake one of these tax sheltered annuities four
h three big, and we'll spendit down over the next ten years.
So you'll have limited amount of taxliability because you can get twenty thousand dollars

(01:37:14):
a year in New York State withoutany tax liability on your IRA distribution.
Plus you're getting rid of a problematicasset that you say you don't really need.
And we'll keep the one, thelarger IRA asset, the four oh
three B, we'll keep that foremergency funds. That sounds like a great
idea. What are we going todo with it, Well, we'll buy

(01:37:36):
a second to die life insurance.We'll pay for it for ten years,
and at the end of ten years, the cake is baked. You never
have to make another payment and it'sgood for life. Great. Should we
do a Roth conversion, Well,let me just tell you the difference between
the Roth conversion. The Roth conversionis a great idea, but it takes

(01:37:58):
time. What Paul talked about,it takes time. So we took the
Now don't hold me to these figures, folks, but they're pretty close.
We took the one hundred and thirtythousand. We had it paid out over
the next ten years. It gaveus fifteen thousand dollars a year because we
gave it to an insurance company toguarantee the premiums fifteen thousand dollars for ten

(01:38:21):
years one hundred and fifty thousand dollars, and it created about six hundred thousand
dollars in survivorship death benefit. Thatmeant that when mister and missus went through
the pearly gates, whether it wasthe first year or the tenth year,
the fifteenth year, or once theinsurance company said yes, we're willing to

(01:38:45):
accept this risk, the six hundredthousand dollars becomes part of their estate.
Right wasn't in their estate because wehad it owned by an irrevocable Life Insurance
Trust. Those dollars from day onedollar one, the first fifteen thousand dollars
that went in once the policy wasissued created six hundred thousand dollars at death

(01:39:11):
benefit day one dollar one. Soif they went away and went on a
boat, the boat didn't come backand they got eaten by the alligators,
their kids would have received six hundredthousand dollars plus the other nine payments over
the next nine years fifteen thousand dollarsroth conversion. If I take fifteen thousand

(01:39:39):
dollars out, I got to paythe tax and then I can put the
rest of the money inside the wroth. So the outcomes can vary depending on
the factors and the things that you'retrying to do. As far as here,
here's the key tax consequences of statetaxes, income taxes. Are you

(01:40:00):
you know, do you like marketvolatility? You still want to be in
the stock because everything that I justsaid to you is guaranteed, no variables,
no variables. Set it roll around, papeel. We're going to set
it and forget it done. Sixhundred thousand dollars tax free assets for the
daughter and the sun plus the equityin the house, the other IRA there's

(01:40:27):
still not using it after all theseyears, and any other assets that they
have sitting on the sidelines. Sowhen I say to you that during this
greatest wealth transfer in the history ofmankind, how you set it up and

(01:40:53):
the type of chassis investment that youutilize can be useful for not only the
state planning as far as taxes,but depending on all the other factors.
How good are the kids at managingmoney? How strong is their relationships with
their current partner? Where do youwant ultimately this money? You know,

(01:41:18):
do you want to just to goto them boom, here's you know,
six hundred thousand dollars, or doyou want some kind of control over it
that there's It's in a trust andthe trust will act in a fiduciary capacity
to manage the assets and the distributionswhen you want the distributions to go out

(01:41:47):
life stages. You know, Pauland I just talked about Roth Ira.
I'm always flabbergasted. You're not.You know, do the wroth folks,
You'll be the happiest person on earth. HSA accounts. Do the HSA accounts.
You want tax preference money in yourretirement years, what's your health conditions.

(01:42:08):
You don't know what your health isgoing to be in the future.
When you have have the opportunity tolook at these with your partner, right,
pull the trigger when you think it'stime for you to actually implement these
plans, because tomorrow may never comeand no one has a crystal ball on
our health. We're going to startdoing more topic specific presentations on these type

(01:42:35):
of things because I have found thata lot of people don't even know that
this exists. And believe me whenI say a lot of people will look
at it. You got to lookat the numbers. Numbers don't lie,
Numbers don't lie. Nico is abrain when it comes to numbers. He's
got that thing, that computer,his snap crackle pop, and he can

(01:43:00):
show you what is more favorable foryou, your family, and your loved
ones. In your loved ones.Right, So let's kind of summarize.
We'll summarize a little bit. Thegreatest wealth transfer in the history of mankind

(01:43:23):
is coming. It's not a questionof the amount of wealth that's out there,
it's the amount of titling time spentto basically build a tactical and strategic
plan that's going to maximize wealth,minimize taxes, and if it's necessary,
to have some type of control overthat money so it doesn't get taken or

(01:43:47):
gobbled up by people that you haveno idea who they are, what they
are, and what their intentions are. So if anything that I talked about
today is oft to you, wedo offer a complementary consultation at our office.
You can call us at five oneeight five eight zero one nine one

(01:44:12):
nine. That's five one eight fiveeight zero one nine one nine. You
can check us out on the webat rpgretire dot com rpg retire dot com,
and we have five locations to facilitatemeetings. Oneana, Syracuse, eighty
State Street in Albany. Our corporateheadquarters is in Malta, and of course

(01:44:35):
Glenn's falls again five one eight fiveeight zero one nine nine. Check us
out on the web rpgretire dot com. If you're out and about I just
heard did you hear that thing inthe news where the guy put like this
gigantic firecracker in his head he killedhimself. Did you hear that? I

(01:44:57):
mean, come on, don't bestupid out there folks with that stuff you
can get hurt, so be careful, drive safe, enjoy Today looks like
it's going to clear up and bea beautiful day. I'll be back for
another retirement planning show next week.I'm Dave Kopek. Anything that I discussed,
give me a call five one eightfive eight zero one nine nine.

(01:45:19):
God bless, be safe. Thankyou for listening to the retirement planning show
hosted Buying Dave Kopek, w Gwise Retirement Planning Specialist. If you would
like to talk with Dame or someoneat the Retirement Planning Group, call five
one eight, five eight zero onenine nine. That's five one eight five
eight zero one nine one nine duringbusiness hours, or visit RPG retire dot

(01:45:45):
com. The Retirement Planning Group hasfive convenient offices located in Albany, Malta,
Glens Falls, Syracuse, and Oneanna. Tune in again next week for
retirement planning strategies with Dave Kopek righthere on WG wise Rits Hirement Planning Show.
The information or services discussed on thisshow is for informational purposes only and

(01:46:08):
is not intended to be personal financialadvice. The investments in services offered by
US may not be suitable for allinvestors. If you have any doubts as
to the merits of an investment,you should seek advice from an independent financial advisor.