Retirement Ready with David Kopyc-Should You Have a Goal for Your 401K

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Episode Transcript

(00:00):
Fridays are always great because I getto talk with my friend David Kopek,
who is president of the Retirement PlanningGroup. And you know, Dave has
his own show on our sister stationeight ten and one O three one WGY
that happens every Saturday morning from sevento nine. Good morning, David,
how are you, Jamie? Goodmorning, Happy Friday. It's a sunny
day, and it's time for usto rock and roll because the weekend is

(00:24):
here. Amen, brother, Amen, and I want to jump in and
talk about some really important stuff,especially as I get closer and closer to
retirement. When you start accumulating moneyfor retirement, is there a goal you
should have of how much money you'regoing to need? Or do you just
keep throwing money in there? Youknow, Jamie, one of the biggest

(00:44):
problems that people have is that theydon't have a goal. They do it
just by you know, I'm goingto keep on putting money in, keep
on putting money in. We alwayssay, take the match from the employer,
then start looking at how much moneyyou've accumulated in four O one k's
iras what we call pre tax dollaraccounts, because those are really the assets

(01:08):
that you should be utilizing to createincome and your own personal pension benefit during
your retirement years. Okay, allright, so then what are the pros
and cons of overfunding your four oweK or your IRA. The problem with
doing that, Jamie is twofold.The first is is that these are always

(01:32):
moneys that are going to come outas ordinary income, always taxable as ordinary
income, whether you take it outor your loved one, or your children,
or your spouse or your grandkids,whatever it may be, whoever you
designate as your contingent or your primarybeneficiaries, there's a thing called ird income

(01:53):
and respect of the decedent. Sowhen you pass away those dollars ever get
a step up in basis, theywill always be taxed as ordinary income.
And typically what happens, Jamie islater in life, because we're all living
longer lives, when you least wantthe distribution, it's when they become the

(02:13):
greatest. Because it required minimum distribution. The government will force you to take
that money out, not because youwant it, but because there is a
time frame and it's called uniform lifetimetable, and they mandate that you have
to take that money out whether youneed it or not. Wow, Wow,
So what do you do? Whatactions do you take? I think

(02:36):
what you have to do, especiallyfor people that have got another ten,
twelve, fifteen years, what wesee is there's way too many people that
are top heavy. They have waytoo much money pre tax. We try
to tell people take the match andthen look at the Roth four oh one
k and if you qualify for itthe roth IRA the Row four o one

(02:57):
K, you can make a kazilliondollars a year. You can still put
money in it. That is notthe case with the raw thire eight because
there are wage limits on that salarylimits. So what I would say is,
like I always say, build ateam, start working with your financial
advisors sooner than later, and justrealizes that make sure you have what we
call some tax preference money in yourretirement years. Wow, this is all

(03:23):
so important, and I am hopingyou're going to tell me that you're going
to go more in depth on thistomorrow morning. Ding ding ding ding ding
you on the prize. I'm justglad because this is something I'm really interested
in and so I will be tuningin. You should tune in too.
It happens tomorrow morning, Saturday morning, from seven to nine on our sister
station eight ten and one on threeone WGY The Retirement Planning Show. Do

(03:46):
not miss it. So much importantinformation and you can always get in touch
with David yourself. You know,it's really easy five one eight five eight
zero one nine one nine or goonline rpgretire dot com, rpg retire dot
com. David, thank you somuch, such great information today. Thank
you brother Jamie. Have a beautifulweekend. I'll talk to you next week.

(04:11):
Bye bye,