Secured Retirement Radio - 5/25/2024

Episode Transcript

(00:00):
Here's what our attorneys make us say. We believe all the information we offer
on this program is factual enough todate. However, we cannot guarantee its
accuracy and you should not think ofit as a complete analysis of the subject's
discussed. We are also not givingyou an offer to buy or sell the
investments we talk about. All investmentsinvolve varying degrees of risk, and we
cannot guarantee any specific investment or strategywill be suitable or profitable for your portfolio.

(00:20):
Always consult with a qualified investment,legal, or tax professional before taking
any action. You've worked hard andsave for retirement, but remember it's what
you do with that money that reallymatters. How will you ensure that you
ring every nickel out of your SocialSecurity benefits? Could you pay fewer taxes
in retirement? And how and whenwill you withdraw money from your IRA or

(00:43):
for a one K Welcome to SecuredRetirement Radio with Joe Lucy of Secured Retirement
Financial jose Ah certified Financial Planner,fiduciary and a contributor to The Wall Street
Journal and as nearly twenty five yearsof helping people just like you, this
is where you can count on straightforwardand objective advice on how to make your

(01:06):
money go further in retirement. Andnow here's your host, Joe Lucy.
Let's start off today's program by askinga little question. How much money have
you set aside in your retirement accounts? The iras or four to one k's.

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Now, chances are that these aresome of the largest assets that you
own and they're there to help youwith your retirement. It's important to know
that making contributions to an IRA orfour one K fairly straightforward and easy.
But withdrawing money from these accounts,well, that's when things start to get

(01:47):
a little bit more complicated. Thisis where you can make crucial financial mistakes
that can end up costing you asmall fortune and otherwise derailing it otherwise successful
retirement. So welcome to Secured RetirementRadio. I'm Joe Lucy with me this
morning. I got Nate Zeller,Dylan Mahlberg. And if you have an

(02:07):
IRA, if you have a fourto one K, if you have a
TSP, if you have a SEP, a sept iray pension, any other
of these tax referred accounts, it'sgoing to be a fantastic program for you.
Here today. You know there's lotsof benefits of having an IRA or
four one k, but you needto do a lot more than just make

(02:30):
contributions into these accounts if you hopeto get the most out of the accounts
and make them last as long asthey should. The handful of crucial issues,
problems, concerns, areas that wewant to address here. Which accounts
should you be taking from? First? How can you reduce taxes on the
distributions you're making? Should you convertyour traditional iras or four one ks into

(02:54):
a roth or a roth ira?How should you address and when do you
need to start planning about required minimumdistributions? Now, trust me, the
choices you make here can end upto be a small fortune, have additional
money for you and your golden year. So coming up in today's program here,

(03:14):
let's talk about five specific strategies thatcan help you squeeze a whole lot
more out of your money these irasand four to one k's. Then you
might have even known as possible.Nate, Joe, good morning, Good
morning, Dylan morning. Well,we talk about these retirement accounts this morning,
these iras and four to one k'sand as most of the listeners know
when we take the money out ofthese accounts, you're gonna have to pay

(03:35):
taxes on the money. So withthat being said, how and when you
end up withdrawing these funds from theseaccounts is gonna have a significant impact ultimately
on how much taxes you pay.And if you don't have a strategy before
you start taking the money out ofthese retirement accounts, you can find yourself
needlessly overpaying your taxes. And Nata, I mean, I don't know about
you. I don't want to overpayany taxes that I have to. No,

(03:58):
having recently written a check to theirs here this spring, it's it's
very painful to pay those taxes andseeing how much comes out of every paycheck.
Of course, too many people areyou know, they don't plan ahead.
They don't think about, okay,how am I going to take this
money out? And they don't plan, you know, thinking that this is
going to last twenty thirty or evenmore years with people living longer now.

(04:19):
So Dylan, to your point,that's why it's so important to have a
plan in place before you start towithdraw your money from the IRA ira or
four one K. And you know, there's different strategies with that, and
a lot of people think that,well, it's best just to leave it
there as long as possible because it'stax deferred, and so I'm going to
let it grow at all, worryabout the taxes later. But that's maybe
not even the best strategy either.Oh and Ay, we see that,

(04:41):
Nate, Joe. We see thata lot of families come in and maybe
they have some money in in likea Brokens you acount money they pay tax
on, but there's some capital gainsand interests involved. Maybe they have some
money in the wrath and they havetheir IRA bucket as well. And if
we don't have a planner on whichbucket to take from first, like you
said, Nay, if we're goingto take from maybe the wroth bucket or
the the brokerage account bucket that's there, all we're ultimately doing is continuing to

(05:04):
defer these taxes that are built upin these irases four to one K accounts.
Then ultimately all that is is buildingup your tax bill long term.
Well, but keep in mind,Dylan, that we don't always have to
spend money in these different buckets andnecessary it doesn't have to go to our
checkbook and go for an expense.A lot of times we'll see situations where

(05:26):
maybe somebody has an account that's insavings, understanding that if I spend money
out of my checking account or mysavings account, those are not taxable events,
unlike taking and spending a dollar ora thousand dollars out of my iras.
So imagine this, You're retiring andnow you've got some needs income needs,
So we're gonna take a little bitof money sometimes out of those savings

(05:49):
accounts. It's going to come outtax free. But what do you do
when you've now taken tax free incomeat the end of the year. If
we're doing proper tax planning, wecan oftentimes use this as an opportunity to
find ways to move more of yourafter tax with the tax deferred money into
tax free money, those roth irasthat we talk about so much your on

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Scurity Time Radio. It really comesdown to if I've got different kinds of
money, putting together a strategy anda game plan on how to start to
take this money back. Do Itake it from this one first or this
one there? What is the differencebetween the two. That's what a lot
of our fiducial advisors can share withyou. Sit down with their team here,

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we'll go through different strategies. Alot of times families aren't really aware
of how much bigger difference it canmake just by taking money from different places
and then maybe repositioning some of themoney along the way so that we can
pay a whole lot less than taxesdown the road, that it makes the
money last a whole lot further.Well, and you look at this generation
of her tirese, the taxes aregoing to play a lot bigger role.

(06:51):
Is this is the first generation ofor tyrese that has had to more or
less fund their own retirement. Yes, they're so scaty. There there's some
pensions that are left over, butprimarily these iras and these four to one
k's is how these retirements have beenfunded. And you know when you take
the money out, it's all goingto be taxed, and it gets taxed
at whatever the current tax rate isin your current tax situation. And and

(07:13):
Nate right round right now we're fortyyear laws. But it doesn't look like
that's gonna hang around for a wholelot longer. Well, yeah, I
can't. We talked about the nationaldebt pretty frequently here on Security Retirement Radio,
and right now the clock continues totick. National debts at thirty four
trillion in climbing. They say,what, we're adding trillion dollars every one
hundred days, so about once everythree months. And for the government,
their only source of revenue is taxes, so at some point they're going to

(07:38):
have to do something to start topay some of this down. And it
looks very probable that the tax ratesare going to go higher. And even
if you know they don't, ifCongress doesn't do anything today, we all
know that tax rates are headed higherhere in about eighteen months, you know,
if you're just joining us here todayon Secure Temper Radio, we're talking
about five ways to maximize your irasyour four one case, the retirement accounts

(08:01):
in your retirement years. A lotof times what that really comes down to
is making sure that you have astrategy and a plan in place on which
of the kinds of moneys that youmight have, which one should you be
spending from first, and what differencedoes it make by putting these together in
different ways. A lot of timeswe think of our retirement accounts as all
our money. Understanding that the differencebetween maybe spending or moving some of this

(08:26):
into more tax efficient places can makea whole lot of difference in how much
longer your money will last, howmuch more money may be left behind.
Don't think of all your irais asjust your money. You have to think
of these as joint accounts. They'reprobably the largest opportunity you have for tax
playing. And you have to startthinking about because again, if we aren't

(08:48):
paying attention to how much of thismoney is going to go to the Uncle
Sam. These iras for one case, I like to call them IOUs their
joint accounts. Their money has togo from these accounts out to Uncle Sam,
and the tax access on these accountscan be a whole lot bigger than
you have even thoughts. So here'ssome good news. If you take advantage
of some simple tax baying strategies today, some of these strategies that our fiducial

(09:11):
advisors here can share with you.After a short what we call tax smart
retirement savings analysis, you can makethat money last a whole lot longer,
and it brings a lot of strategiesand clarity and a plan together for you.
Taking advantage of these means a smallfortune for many families that have visits
with us here at Secure Retirement Radio. So that's why we're offering just for

(09:31):
today free customized tax smart savings analysis. Here's how it works. We'll gather
some basic information from you and thenwe'll research the best suit of strategies that
are suited for you and your specificsituation. We'll revisit, we'll sit down,
we'll share the strategies with you,and we'll show you on a simple
report the difference between one strategy oranother so you can make the best decision

(09:54):
for yourself. To be clear,I'm not talking about some off the shelf,
one size fits all report. It'sa customize, personalized report based on
the discussion that you have with ourfiduciary advisor. And there's absolutely no cost.
But there's only one way to getthis, and that's by giving us
a call this morning at nine tofive to two seven seven, seven eighty
eight thirty eight. Call that number, get a tax smart retirement savings analysis,

(10:18):
see how much more your money canlast, and put together a strategy
on how to take back this money. These IOUs so that you can pay
a whole lot less to our favoriteuncle nine, five, two, seven,
seven, seven, eighty eight thirtyEight's the first steps or the next
step that you got to take totake advantage of this great offer. They're
call the IRS's weapons of mass destructionfor a good reason, and we'll tell

(10:41):
you what they are when we comeback. That there's Dylan, I got
Nate with me, and I'm Joe. There's more Security Radio in just a
few moments. He's a certified financialplanner, fiduciary and a contributor to the
Wall Street Journal. And he's noordinary Joe. You're listening to Joe Lucy
on Secured Retirement Radio. He's acertified financial planner, jutiary and a contributor

(11:07):
to the Wall Street Journal. Youmay not realize this, but he's kind
of a big deal. Welcome backto Secure Retirement Radio with your host,
Joe Lucy. Here's an important questionyou might want to ask yourself. If
our national debt is at all timehighs and income tax brackets are forty or

(11:31):
lows, where do you think taxesmight be heading now? If you have
an IRA or four to one Kwhat I call IOUs snatural to think of
all this money being your money,but really joint accounts with you, well
our friends out there in Washington,d C. And remember you still have

(11:54):
to pay taxes when you withdraw fromthese accounts because well they've never been to
before. So welcome Execurityvy Radio.I'm Joe Lucy, certified Financial Planner.
I got Nate Zeer with me,I got Dylan Mahlberg, and today we're
talking about five ways that you cansqueeze even more money out of these important
retirement accounts. Money you set asidethese I rays and four to one k's

(12:15):
in your retirement year. So comingup in this segment here, what are
the dangers with required minimum distributions andwell why they might end up pushing you
into a much higher tax bracket payingeven more taxes on this money than well
you ever dreamed would be possible.Before we dive into the second step to

(12:35):
getting more to these iras than fourone k's, and we're gonna talk about
required minim distributions. But Nate,let's kind of dive into your high level.
What is a required minimum distribution?Yes, so Uncle Sam has been
very generous allowed you to contribute moneyinto a retirement plan for one k IRA
throughout your working years and doing itin a tax deferred basis, it's pre
tax money. But then Uncle Samof course wants his money back. So

(12:58):
at a certain age you're required tostart taking money out and that's called a
required minium distribution, and currently thatage is seventy three, So at age
seventy three and beyond, you haveto take money out of your IRA or
four one K your retirement plan,whether you need the money or not.
And the reason why is then thegovernment can obviously take their tax money off
that. And Dylan, you talkedabout this a little bit too, is

(13:20):
that it can cause you to moveinto a higher tax bracket because maybe that's
income that you don't need or youweren't planning on using, but it all
counts as taxable income. So itreally makes sense to start preparing and being
ahead of the curve and looking aheadprior to age seventy three to do this
tax playing well. And we've workedwith a lot of families that have.
You know, they've built up alot more in these iras than four to

(13:41):
one ks than they could ever havedreamed of. And sometimes the end up
final they end up more or lesspainting themselves in a corner. Where they
never really thought about it. It'skind of been in the background. They've
done a great job of other planning, whether it's Social Security, maybe there's
some pensions, maybe they have someother savings that they've been spending in and
they get to that magic age ofright now seventy three, then all of

(14:01):
a sudden they get the news thatthey have to take out X amount of
dollars that they weren't expecting. Andyou know, maybe upfront it sounds like
great, we get some more cashflow, but until they see this,
this this tax torpedo that's coming theirway, Joe, it could have a
lot of impacts on not just theirincome that they have to pay the tax
they have to pay in the distribution, but there's a lot of other areas

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that it can impact well. Oftentimes, when families are visiting with our fiduciary
advisors here, we'll sit down andyou know, during the tax smart tax
savings analysis, and we'll go throughtheir tax return line in by line up.
Now, this isn't to look formissing deductions. This is to look
for opportunities on how money is goingto be hitting that tax return, whether

(14:43):
it's today or well down the road. So a lot of times we'll sit
down with the family. Maybe they'resixty five years old, recently retired,
and we're going through this analysis,and what we'll share with them is,
you know, here you are,and you are paying let's say twelve percent
tax on their money. That's thebracket. They're in the twelve percent federal

(15:05):
tax bracket through another six and ahalf or so for Minnesota, there may
be about twenty percent. Well,if they're at the twelve percent bracket and
they're doing so to keep themselves frompaying more tax, what we'll share with
them is we'll say, okay,now you've got a retirement account, that
retirement account, and will let themassume what that account could grow to.

(15:26):
We use praierly conservative numbers here atSecure Retirement Radio. I want to say,
if we only got five percent onthe money, your account could be
worth let's call it a million dollars. Are you aware that at age seventy
three, you'll be taking out thirtyseven seven hundred dollars of additional income per
year off these retirement accounts. Becausewe have an opportunity today to possibly pay

(15:50):
a little bit more tax and reducesome of this account or maybe spend some
of this money first without increasing thetax brackets, or we can wait and
we can take it at age seventythree. Now, this thirty seven thousand
dollars may not sound like a wholelot to some of us, but some
of us it's a whole lot ofmoney. But this money is now going

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to start to hit that tax return. Now if that pushes you into the
next higher tax bracket. Today that'dbe a twenty two percent tax bracket,
but in just one year and sevenmonths they're projecting that we're going to see
that back into the twenty five percenttax bracket. All let's think about this.
If I could take money today andpay twelve percent tax, or I

(16:32):
can wait and end up paying twentyfive percent tax on the same distribution,
will it be better wuon? Don'tit make more sense to start spending twelve
instead of paying twenty five? Oreven if it is just twenty two,
it's an eighty some percent increase ifit goes from twelve to twenty two.
That's the tax planning that you shouldbe doing when you're thinking of your retirement
planning. You see, retirement planningis not just about wealth accumulation. Now,

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I know that when I'm in mythirties and my forties and my fifties,
I want to try to get asmuch in these accounts as I can.
But when you start to get seriousand start thinking about what a retirement
looks like, I want to startcombining these wealth accumulation strategies that have worked
up to this point with well strategieson how to make sure I can spend
confidently knowing the money I spend isnot going to be money I wish I

(17:18):
had down the road, how topay taxes more consciously, morally, ethically,
legally. Are there ways that wecan well possibly spend a little bit
of money at twelve percent or twentytwo percent to avoid paying twenty five,
twenty eight, thirty three, whateverthat number is going to be down the
road. You see, it allstarts with bringing in tax strategies with the

(17:40):
overall wealth accumulation strategy. So thewealth accumulation needs to start to support in
my retirement years, how I takemy money back and how tax efficient it
is. If you're just joining ushere this morning, we're talking about five
ways to maximize your I raise infour to one case. One of those
ways is to start thinking about howI am going to take my money back

(18:02):
and start to project what these requireddistributions are going to do for me and
my tax brackets down the road.See families sometimes there are somewhat surprised when
we share with them that some ofus are going to be paying higher Medicare
premiums than in somebody else. Now, how does the government decide who has
to pay more Medicare premiums? It'sobviously, you know, not about you

(18:25):
know, anything other than what I'mreporting on my tax return. They don't
care what my net worth is.I can have because zillions of dollars in
real estate and a bunch of farmlandand a bunch of assets galore. I
can have a huge business worth aton of money. That's not going to
cause me to pay higher Medicare premiums. You know what it is? It's

(18:45):
how much taxes I'm reporting on mytax return, how much income am I
spending there? And if I'm notconsidering how to bring tax planning into my
overall financial planning were then I'm reallynot doing what we call retirement planning tax
smart retirement planning like we do hereat Security tut radio. Well, and
you talked about the tax brackets there, Joe, and that's a really important

(19:07):
thing. But there's a think aboutyour other income that's on your tax return.
You know, if you're at requiredminimum distribution age for ninety five percent
of Americans, most likely around SocialSecurity, and when you get to that
required minimum distribution, you might findyourself paying more taxes on on on Social
Security income that's there. Maybe there'ssome capital gains, some investment income,

(19:30):
we can be paying more income taxon those types of income. So Medicare
premiums, if your incomes at acertain level, you start paying higher Medicare
premums for the same medical service asyour as your neighbor. And and really
what it comes down to is lookingat how is my tax is gonna affect
me in retirement And and one ofthe biggest risks there is really not only

(19:52):
what are taxes today and how doesit impact me? But what are tax
is going to be down the road? Is what is Congress going to do
potential that could impact my retirement withfuture tax rates being hired. You know,
I think that's one thing that I'llsometimes here Dylan as we are visiting
with families and going through these taxmark planning that we do. They'll say,

(20:14):
you know, my my concern,Joe, is if I spend the
money today at today's tax rates,how do I know for sure that I'm
actually going to be paying less taxthan if I spend it down the road
or wait down the road. Andthey bring up a good point. And
the reason I'm bringing this up tois that you had mentioned that you know,

(20:34):
Congress. Congress can make the changesto the tax lot at any time.
Keep in mind, there's not atax law that's written. It isn't
written in pencil. In fact,they like to use their eraser quite often
and make changes to the to whatwe do. In fact, if you
go all the way back to whenyou first started setting aside money into these
accounts, remember how that was supposedto go. You're going to set aside

(20:56):
money into a retirement account, andthe tax rates were going to be at
a much higher rate. But whenyou take the money out, they'll be
at a lower rate. But yet, ten thousand baby boomers a year a
waking up and realizing that as they'retaking their money out of their retirement accounts,
they're spending a whole lot more taxthan had they just pay that stucker
down in the nineteen eighties or nineteennineties or whenever they started sending that money

(21:18):
apart. Here's an important question toask yourself. See the national debts at
an all time high, right,and our federal income taxes at well forty
year tax lows. Do you thinkthe taxes are more likely going higher or
lower over the next few years.Now, if you're like most, you

(21:41):
recognize that with us having thirty fourtrillion dollars in debt, adding another trillion
dollars every hundred days to our nationaldebt, we were at twenty two trillion
dollars just a short period ago twentytwenty, and here we are at thirty
four going to be thirty five maybethirty seven percent thirty seven billion trillion by
the end of this year. Taxesare going to go higher. It's obvious,

(22:03):
and even warm Buffett warned everybody abouttaxes in this last annual meetings.
So that's why many Americans are takingsome proactive tax steps right now, and
they're starting to find ways that theycan Washington prove their retirement savings. I
mentioned it earlier in this segment.Families sit down with our fiducial advisors,
we go through the tax return,and we go line on my line,

(22:25):
and I'm looking for the opportunities.It's not about the simple deductions, that's
what your tax prepared does. Thisis about opportunities on how you can think
about how to take your money back, make it last a whole lot longer,
and oftentimes we can see tens ofthousands or hundreds of thousands of dollars
on potential tax savings just by reinventing how you bring your tax planning in

(22:48):
with the wealth accumulation strategies you mightalready be doing. Here's how it works.
We just gather some information, we'llsit down, we'll get this together,
and we'll put it together, andwe'll research some specific areas and plans
that we can put together for youin your own unique situation. We'll then
share with you some of the opportunities. I'm going to share with you two

(23:08):
numbers, the opportunity of where you'reat, and an opportunity that we can
help you create by bringing in somelook forward tax strategies. If you are
looking for tax smart retirement savings analysis, there's only one way to get that.
You got to call right now ninefive two seven, seven, seven
eighty eight thirty eight. We'll schedulesome time that's convenient for you, and

(23:32):
our team will sit down. Oneof our fiducial advisors will go through the
tax returns, will show you inblack and white an opportunity with two different
numbers, and you'll walk away witha free complimentary tax smart retirement savings analysis.
So you got to call right nownine five two seven seven seven eighty
eight thirty eight. Be patient withour schedulers if their phones are busy,

(23:53):
don't just feel fore you to callright back. Nine five two seven seven
seven thirty eight. It is oneof the most critical pillars of retirement planning,
yet most people overlook it. We'lltell you what it is when we
come back. That there's Delan Mahlberg. I got Nate Zeller with me,
and I'm Joe Lucy. There's moreSecurity Time Radio in just a few moments.

(24:15):
He's a certified financial planner, fiduciaryand a contributor to the Wall Street
Journal, and he's no ordinary Joe. You're listening to Joe Lucy on Secured
Retirement Radio. Fasten your seat beltsand put your trade tables in an upright
and block position. It's another actionpacked segment on how to make your money

(24:37):
go further in retirement. You're listeningto Secured Retirement Radio. So when's the
last time you updated the investments thatportfolio inside you're IRA in four O one
K. When's the last time reviewedthe acid allocation of these accounts large companies

(25:00):
you have, small companies, internationalbonds, or even assessed how much investment
risk you might be taken in theseportfolios. You know, given the market
growth and volatility over the last tenplus years, chances are you can be
taking a whole lot more risk inthese accounts than you're even aware of or
that you even need to be thinkingabout at this age of the game.

(25:22):
So welcome back to Secure Time Radium. I'm a Joe Lucy certified financial planner.
I got n ad Zeller with me. He's our chief investment strategist.
Dila Mahlberg featured guests here often oneof our fiducial advisors, and we're broadcasting
this morning right out of our SaintLouis Park office studios. Today we're talking
about five ways to squeeze even moremoney out of what I call IOU's.

(25:47):
These are the I rays and thefour one ks, the thrift savings plans,
those four H three b's that youmight have, and coming up in
this segment, the key, waitfor it, the key to minimizing your
investment risk. Well, and youlook at minimizing your investment risk, I
think the first step of of minimizingit is just getting an idea where you

(26:10):
sit on that risk scale. Wesee a lot of families that come in
our office, so we sit downand they've kind of just you know,
plugged the investments away, and they'vekind of just kind of set it and
forget it. And then as timegoes by, Nate, I mean,
these the risk levels can be skeweddepending on any kind of you know,
sudden movements of the market, goodor bad. Right, And you know,
if we look back historically, alot of people default to what we

(26:33):
call the sixty forty portfolio sixty percentequities forty percent fixed income. Considered it
to be well diversified, with thefixed income supposedly doing well if the stock
market went down, you know,with the negative correlation there to a certain
extent. But as we've seen thelast few years, even fixed income has
suffered quite a bit, and it'sbeen a you know, those supposed safe
assets really haven't been so safe.And you know, to take it a

(26:56):
little bit further too, with whatthe stock market's done the last couple of
years, you know, a lotof portfolios have become very skewed. They're
taking on a lot of risk.And if you think about it, if
this is your pot of money forretirement, you know, how would you
feel if there was a sudden downturnin the market. And you know,
we go back as recently as twentytwenty two, so just two short years
ago, when there was a prettybig downturn, not just in the stock

(27:18):
market, but also in the bondmarket, and a lot of people I
think were kind of caught unexpected.They're still kind of riding this high after
the recovery coming out of the pandemicin twenty twenty and they thought that these
stocks go up forever and ever.And I think it was a real wake
up call and a lot of retireesthat put them in a very difficult situation.
Well and off. Too often we'llsee somebody that comes in our office

(27:41):
and maybe it was back in twentytwenty Remember when we lost thirty percent,
the world was shutting down. Everythingwas everybody was running into their shelters.
You weren't even allowed to wave withthe neighbors anymore. Remember that period of
time when the markets just quin crashing. Well, families, some of them
sold off. I ended up sellingoff at the wrong time because then they

(28:03):
announced that there would be a vaccineand you know, the world would start
to open up again, and themarkets hit its lows after just thirty days.
But just recently I had a familyin my office here actually got out
of the market at the bottom,waited a couple of years, got back
in at the beginning of twenty twentytwo, and turned around and lost another

(28:26):
seventeen percent that year because they putall their money in safe investments. They
sold out to come back. Inour office, what we need is we
need a strategy to understand how muchrisk you're taking. Now, I'm not
just talking about the emotional risk.See a lot of times we think of
risk when it comes to our investmentportfolio as just how much could I lose

(28:51):
without well wanting to jump off ofthe out of a window. Right.
If there's a period of time whenthat statement has ever come in the May
and it sat on the end ofthe table you know where you collect all
your mail, and it's sat therefor well, not just the weekend,
but it's sat there for a week, and then two weeks, and then
three and then you know, aftermaybe about a month and a half,
you finally got around to shredding itor something, and you were afraid to

(29:15):
open up that statement because you didn'twant to see what the numbers said.
You go back to maybe that periodof time. That is an emotional risk,
but there's other risks that you needto be paying attention to see.
There's a risk capacity even warm.But everybody has a risk capacity number.
It's a number that says that ifI have everything I think I needed to

(29:37):
get to have the retirement that Iwanted, if I lost a certain amount,
I'm going to have to make changesto what my lifestyle is going to
look like. That's a risk apat how much could you lose? It's
not that you're willing to lose it. It's not that the emotionally you'd be
okay losing half your money. Mostof us won. But if that were
your situation, we all know theguy that gets out there at the track

(30:00):
betting on the horses, but doesn'thave two shekels in his pockets, right,
he has a very risk high risktolerance. He's willing to take the
risk, but he really shouldn't becausehe does he should be spending his money
on paying his bills or something.You want to make sure that we look
at risk capacity, how much couldyou lose? Also, look at risk

(30:21):
required? Am I keeping up withinflation? Is my money slowly losing buying
power? And then risk tolerance?And I bring those three together, and
we want to make sure that youbuild a portfolio around that, because in
my thirties and my forties, it'sall about the wealth accumulation game. It's
how much money can I get myfour when k what's the balance? What
can I get it to You getto a certain point, though, it's

(30:45):
more important about how to take itback, how to morally, ethically,
legally pay less taxes. If youwant to spend confidently, you want to
pay taxes consciously, you want tolive comfortably, you want to make sure
that you have portfolios of ports thoseand that's really what we're talking about in
this segment. As we talked herethis morning on five ways to maximize your

(31:07):
iras and four one ks understanding thatwe want to create a tax efficient with
ra all strategy. That's the firstarea that we want to help families.
When they sit down and get atax mark retirement analysis, we'll share with
you how to keep those rm dsfrom pushing you into a much higher tax
bracket. Talked about in their lastsegment about a look forward tax analysis.

(31:27):
How we can take your portfolio andhow your distributions are today and we can
show you the difference between a strategythat minimizes the amount of lifetime taxes you'll
pay in a strategy that's so manyof us the path that we go down.
We're talking here about making sure wemanage the investment risk. It's not
just about how much can I getthe money to grow to, but it's

(31:48):
also not about being too conservative.Because today's inflationary environment, we need to
make sure that we're keeping up withinflation. It's about a balance of these
and as we go through here thismorning on Security Time Radio, five ways
to get the most out of yourIOUs that money that those accounts that are
set aside, they could be yourlargest assets. Understand every penny of these

(32:10):
money has to sooner or later getspent, taken out, and then some
of that's going to go to theiris. We're forty or lows. We
got thirty four trillion dollars in nationaldebt that's climbing every single minute. If
taxes are going higher. How doI put together a strategy and make sure
that I'm not taking more risk thanI need to. Well, you're talking

(32:30):
about taking risk and retirement. Ifyou're essentially taking money out of these retirement
accounts because you have goals and dreamsthat you want to accomplish. What if
you're looking at taking money out ofthese accounts but the market's down, Nate,
I mean sequence of returns risk allyou get into it is a big
factor when it comes to investment risk. Yeah, the sequence of returns risk

(32:51):
is very real, and we've seenit, you know, in the time
that I've been in the market.You know, we're going on twenty five
years or so now, and Ithink back to the early two thousands with
the dot com bus, the techbubble, and again the Great Financial Crisis
and even look into twenty twenty two. You know, the thing about retirement
is what you're trying to do isrecreate that income stream that you had during
your working years. And so that'swhy this withdrawal strategy is so important,

(33:12):
is recreating that income stream. Andso some people what they do is they
say, well, I'm just goingto take out four percent a year,
and that was an old rule thatkind of worked. But Dylan, to
your point, when you bring inthe sequence of returns risk, and if
you happen to hit a very badbear market at the early part of your
retirement, it's probably going to havea very significant impact throughout the remainder of
your retirement. And just a realquick example too, we go back to

(33:34):
twenty twenty two when the stock andbond markets were down in the teens.
If you took out four percent,you know, you happen to have retired
right at the beginning of that year. That meant that you lost one fifth,
you know, twenty percent of youraccount value. And even though the
market retired it is or uncovered recovered, Sorry, the market's not retiring,
it's still in business. Even thoughthe market recovered, you had a smaller
pot of money to work with,so that recovery certainly didn't make up.

(33:57):
And you know, think about thatif you're at or near retirement yourself,
you know what what a twenty percenthaircut due to your lifestyle? Twenty percent
haircut for you, Nate, probablydoesn't leave you a whole lot. I'd
be pretty much bald. Yeah.So anyways, you know, and I've
been doing this here now for thirtyyears, and over the last thirty years,
here's what I've found. Very consistent. Families get to a point that

(34:21):
they want to retire comfortably. Werecognize that to do so, we want
to be able to spend confidently.I want to know that the money I
spend early in retirement, I'm goingto have enough there and a twenty percent
draw down and an account balance becauseof inappropriate timing of my retirement is one
of the biggest areas of the firstareas we got to protect from. I

(34:43):
also want to be able to paytaxes consciously, morely, ethically, legally.
Can I pay less to the uncleSam, Because the less I have
to pay to him, that's morefor me and my family and our portfolio
and our life savings. We understandthat the portfolio is important, but savings
and investment retirement it's not the endall. It's a portfolio. It's it's

(35:06):
you have to have strategies on howto reduce taxes on these IOUs You have
to be able to pay for skyrocketingcosts of healthcare. You want to be
able to generate income in retirement.And there's a lot of different critical issues
that might be more specific to youthat need to be tackled before you can
even think about retiring. So that'swhy we've put together a tax smart Retirement

(35:27):
analysis. Here we sit down withfamilies. There's no size fits all.
We customize it specifically for you.It addresses the biggest challenges, those challenges
around taxes, so security, healthcare, these IOUs the IRA's and four to
one K withdrawals and more. Now, most advisors charge up front for these
time of specialized plans. We don'tcharge a dime. If you want to

(35:51):
schedule yours, give us a callright now at nine to five to two,
seven seven seven eighty eight thirty eight. We call it tax Smart Retirement
game Plan. First way, onlyway to get this is to give us
call right now nine five to twoseven seven seven eighty eight thirty eight.
Coming up in our final segment,are you thinking about leaving your IRA or
four to one K to your estate. You may want to rethink that strategy.

(36:14):
And we'll tell you why when wecome back. Still and I got
Nate and I'm Joe Lucy. There'smore Security Tulet Radio in just a few
moments. He's a certified financial planner, fiduciary and a contributor to the Wall
Street Journal, and he's no ordinaryJoe. You're listening to Joe Lucy on
Secured Retirement Radio. Social Security,Medicare, taxes, risk income. This

(36:39):
retirement stuff can be complicated until now. Welcome back to Secured Retirement Radio with
Joe Lucy. All right, sothis morning on Scarit Tallet Radio, we're
talking about IOUs. We're talking aboutthose iras which I call IRU's four oh
one k stress statings plans. Youknow, there's a lot of better to

(37:00):
having these types of accounts, butthere's more to it than just getting money
into it and the growth within thesestart taking the money out. There's a
handful of critical issues you need tostart addressing, like well, which of
your money should you be spending first? Other ways you can reduce taxes.
Should you convert some of this IRAmoney into roth IRA money that won't be

(37:22):
taxed, how do you manage requirementiumdistribution? So welcome Scary Timent Radio.
I'm Joe Lucy. I got NateZeller with me. I got Dylan Maulburn,
and we've been talking here about fiveways to squeeze even more money out
of your iras and four to oneks. Now, if you've been listening
throughout the program, you know thatif there's five and we've gone through three,

(37:43):
we got two to get through ina very short period of time here.
So Nate tell us a little bitabout what the fourth area is that
we want to be thinking about inaddition to well, how to make sure
you get tax efficient withdrawals, howto make sure that you're thinking about required
distributions, and how to manage theinvestments. What's the fourth theory you wanted
to touch this morning? Yeah,today's fourth area is considering if a conversion

(38:07):
to a wroth iray is the rightthing for you. A wroth iray is
a little bit different than a traditionalira and that you pay the tax money
upfront and then it's allowed to growtax free and you're not taxed on it
when it comes out. Also,you're not subject to required minimum distributions.
There's a misnomer out there that,you know, only certain people can contribute
to roth rays. They have tobe under an income threshold. So the

(38:29):
misnomber is that if you're above thatincome threshold, you cannot convert to a
roth iray. So one state thatthat's not true. Anybody can, regardless
of their income or their assets.So one strategy would be to look at
converting traditional IRA money, taking itout of the traditional IRA, paying taxes
on it up front, and thenconverting it to the wroth ira. The
only thing to caution is that there'sa lot of risk with this and if

(38:50):
you don't do it the right way, you could find yourself in a higher
tax bracket and it might cause youto take more money out of your IRA
to pay that tax bill than Itkind of snowballs from there, you know.
But the one thing around whether ornot you should convert to a roth
iray or or not. Keep inmind that today's tax rates, the job
Cats Tax Acts, and Jobs DylanTax Cuts and Jobs Act, Tax Cuts

(39:12):
and Jobs Act is all set toexpire here in just one year and six
once that means on January first,twenty twenty six, we're going to see
taxes increase. Wall Street Journals saysthirty percent. We might be losing a
little bit of a window of opportunity. If this is a right strategy for
you, you should be spending sometime scheduling a tax mart retirement analysis with
one of the fiducial advisors here thatyou listen to on Secure Retirement Radio,

(39:36):
Dylan, what is the last ofthese five areas that we want to look
at and how to handle these IOUsthe iras and four one case that we've
set aside to support a retirement here. Well, we spent most of the
show this morning on Secure Retirement Radiotalking about how these retirement accounts are going
to work during our lifetime. Andthe fifth thing about how to get the

(39:58):
most out of them is, well, how how is the work when you're
not here anymore? Because Joe,there's different rules around how these ire ways
and four to one case work asfar as with your estates, and if
you're not careful, you can kindof rack up a massive tax bill when
you're not even here anymore. Youknow, back when I first thought started
in the industry, one of mymentors had shared with me said, you

(40:20):
know, we all have to bebrave enough to face our mortality and wise
enough to start planning accordingly. Well, what that means If Joe Lucy is
driving home after recording here this morning, and I don't know, Martian spaceship
comes down, pops him out ofhere, takes them to a different planet,
I know exactly where I want myretirement accounts going. We got all

(40:40):
these other assets, we might haveproperties and what have you, But I
want my retirement accounts all going tomy wife now if she happens to be
in that car with me, aswe get taken away by Martian aliens and
my sixteen year old inherits this money. We need to understand that this it
starts to change from what it wasjust a few years ago. Back in

(41:02):
the old days, when I firstgot started thirty years ago, we could
stretch out these high ra's. Wecould take these things. If I inherited
a retirement account, I could.I could take it from my fifties all
the way up until my nineties.I could get continued growth. I'd take
a lot less tax, but justpaying a little bit over time. Now,
for the most part, these accountshave to be withdrawn in just ten

(41:22):
short years. That means my sixteenyear old, which actually he'd have a
little bit ready because he's a minor, he could actually wait a little bit
longer. But if he's eighteen yearsold, he's got to take this out
over ten years now. He couldbe trying to get college funding or college
education or whatever it is, andhe may not need all this money at
that time because of the tax ratescould be much higher than he thinks we

(41:44):
need. The rules around this haschanged. And if it's been sometimes since
you've revisited how this works, ormaybe you've never really sat down and thought
about what happens, our team canhelp you with it. When we call
it tax mart retirement analysis. What'syour plan? How do you reduce tax
and retirement? How do you makesure that we're looking at the skyrocketing cost

(42:04):
of healthcare? How do I withdrawmoney from my iras in four to one
case, which money should I takefrom first? And how do I get
enough income that I can spend confidentlythroughout retirement so I can have that comfortable
retirement. If you're looking for astrategy, if you're looking for a plan,
if you want unbiased opinion or analysis, give us a quick call,

(42:25):
sit down with one of our fiducialadvisors here and get a tax mark retirement
analysis. The number is nine tofive to two seven seven seven eighty eight
thirty eight. That's nine five twoseven seven seven eighty eight thirty eight.
We're going to go through all kindsof customized planning, but we're going to
look at those iras for one case, healthcare and generating it well, so
much more. Nine five two sevenseven seven eighty eight thirty eight. Shoy

(42:49):
the rest of your long weekend andhave a great day. He's a certified
financial plan fiduciary and a contributor tothe Wall Street Journal, and he's no
ordinary Joe. You're listening to JoeLucy on Secured Retirement Radio.