June 2, 2025 • 23 mins
Wealth Management Managing your money experts
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Ask The Experts Florida is broadcast live Mondays at 9AM ET and Thursdays at 5PM ET on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Ask The Experts Florida is viewed on Talk 4 TV (www.talk4tv.com).
Ask The Experts Florida Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions expressed in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:26):
Welcome to the Ask the Experts Show on W four
CY Radio and Talk for TV, where we bring you
educational information from top local experts in the fields of legal, health,
financial and home improvement. Now sit back and listen to
experts in family law, association, law, hearing laws, business brokers,
(00:47):
home care, along with many other topics. Now here are
your hosts, Stevo and Sophia.
Speaker 3 (00:55):
Hey, Good morning, Florida. Welcome to another Asked the Expert Show.
We bring you the top experts in the field of legal, health, financial,
and home improvement. We have got this is the first
Monday of the month. I can't believe we're already in June.
That also means pro vised management Group. I got to
(01:16):
tell you they have been with us now for over
three years and they are the most respected financial management
group that we've ever had on any of our showows
over the last fifteen years. We are so blessed to
having me. Welcome you to Ray Ferrara. Good morning, Ray,
Good morning Steve.
Speaker 4 (01:37):
How are you doing. I hope you are doing it.
Speaker 3 (01:40):
Yes, wasn't long enough. It never is. But oh my god, Ray,
I just heard that there's already a disturbance out in
the Atlantic. That's early, Yes it is.
Speaker 5 (01:52):
But you know, we had a storm last year in May.
That was the first name named storm even before the
season started. So at least this and waited until the
second day of the season to maybe show up.
Speaker 3 (02:04):
Well, I hope we'll be safe. I hate some of
the things I'm reading, especially from the farmer resolved on that,
but hey, Ray, you know what, we get emails almost
weekly people finding your show for the first time and listen.
Podcasts have become just a way of life now. People
(02:25):
love the fact that they can listen to a show
on their time, and so because we get so many
new people tell people about provided Management Group.
Speaker 5 (02:37):
Steve Provide Management Group is a financial planning and investment
management firm based in Clearwater and Tampa, Florida, although we
have clients in over thirty states, about eleven hundred families
that were happening with their helping with their financial planning
and investment management, and we see investment management as a
(02:58):
subset of the finance planning process, which is always continuing
because this very scientific term stuff happens. We're managing somewhere
around two billion dollars of assets on behalf of our
eleven hundred families and adding new people every every month,
and would welcome the opportunity for anyone watching the show
(03:20):
today to join our our family. All they have to
do is give us a call at one eight hundred
six three three three zero four nine, that's one eight
hundred six three three three zero four nine and ask
for our complementary one hour consultation totally without any cost
(03:41):
at all. We'll visit in either Tampa or Clearwater or
by zoom if it's more convenient to get for you
to get to know us better, or simply go to
ww dot provis dot com, p r o bi se
dot com and kind of gander around our website. If
(04:01):
you like what you see, then give us a call
at eight hundred six three three three zero four nine.
Speaker 3 (04:08):
And you know, we decided made a decision that this
show is so important that we opened it up for
the entire entire state of Florida, even though you've got
even clients all over the world, but we opened it
up for Frauda. So if you're in Boca and you're
watching listening today, or if you're in Orlando, please give
(04:33):
Ray a call. Also, people keep asking me about your website.
It's provis dot com, right.
Speaker 5 (04:40):
That is correct, provis pro bi se dot com.
Speaker 3 (04:46):
Well, Ray, you know, we as much as we try
to stay away from making this a political shows, sometimes
it's really hard. But you know that one Big Beautiful
Bill is still on everybody's mind. And of course, last
week the House passed that bill. I don't think they're
going to have such an easy time with the Senate.
(05:08):
What are the are the major provisions of the bill
and what's going to happen now.
Speaker 5 (05:14):
So let's talk about it passing in the first place.
While while while the President and the Republicans have built
it as the One Big Beautiful Bill Act, it's actually
the name of the act itself, the one Big Beautiful Bill.
The Democrats, if you listened to any of them yesterday
(05:37):
on the Sunday talk shows, we're calling it one.
Speaker 4 (05:40):
Big ugly bill as opposed to beautiful.
Speaker 5 (05:47):
Anyhow, it passed by literally one vote in the House
because there was a lot of wrangling that occur, particularly
with the conservative block in the in the House, not
one Democrat voted for the bill, two Republicans voted nay,
and two fifteen to fourteen was enough to get it passed.
(06:11):
So major provisions in the bill. First of all, it
extends all of the income tax brackets that came out
of the twenty seventeen bill, so thirty seven percent is
the top tax tax rate. It's a very complicated bill
(06:31):
because there are things that sunset in three years, other
things that set sunset in five years, some that are
made permanent, and as we've talked about on the show before,
it's only permanent until the next Congress changes it, you know,
back to whatever it wants it to be. But in
addition to extending the tax brackets and continuing at the
(06:57):
present level, the big areas of concern.
Speaker 4 (07:02):
Were the salt.
Speaker 5 (07:05):
Deductibility, and that State and Local Taxes SA LT SALT.
It's been ten thousand dollars. It was capped at ten
thousand dollars since two thousand and seventeen, and there was
a lot of wrangling. The President originally was good with
the twenty thousand compromise to thirty to get it passed.
(07:28):
It went to forty thousand, So there's still a cap
on the assault taxes, but it's four times bigger than
what we have today. The other large controversy was over
cutting waste abuse, as the Republicans referred to it, and
the one that is taking the biggest hit would be Medicare.
(07:48):
Now they're saying there isn't a hit to Medicare, and
that sounds good. It's just that they've put in a
work provision to keep people from just taking advantage of
the quote unquote system. But the fact is it is
a deep cut to Medicare, and that is going to
be one of the things in the Senate that is
(08:09):
going to be discussed at great length and is likely
to be changed before it goes back to the House.
On the income tax side, the President had pledged to
make tips tax free. It didn't make them tax free,
(08:29):
but he did exempt in the Republican bill, did exempt
taxes on the first twenty five thousand dollars of tips
that someone got. So I'm willing to bet there's going
to be a lot of people that are working for
tips that will report.
Speaker 4 (08:44):
Twenty three twenty four.
Speaker 5 (08:45):
Thousand dollars of income somehow not report the rest of it,
you know, so that's a pretty good deal for them.
He also promised to eliminate taxes on Social Security. There
was we talked about this and said there's just no
way to do that because of having to go back
into the trust fund. But what he did do is
(09:06):
again with some caveats around it for people who are seniors.
And interestingly, seniors was not defined in the build, so
everyone is thinking it's sixty five and over and who
make less than a certain amount of money, we'll be
able to get an extra deduction of four thousand dollars
per person. So for a couple, it would be an
(09:28):
added eight thousand dollars. And that's even if you're itemized.
Excuse me, even if you're a non itemizer, you'll be
able to deduct that money on the and again, there's
no sense talking anymore about all of the little minor
provisions that are in their corporate taxes were held the
same because whatever happens now is going to change when
(09:52):
it gets into the Senate. Everybody is optimistic then in
the next thirty two days, by July fourth, they'll be
able to get a bill on the President's desk. I've
said before, I didn't think that they would make it
by the June first deadline that was initially set. I
don't think they're going to make July fourth, because with
(10:14):
the Senate making changes, it's got to go back to
the House. They're going to have a conference over compromise,
et cetera. But we will be doing a special report
once the bill is done and making it available all
of the listeners here at ask the expert. So it's
a very comprehensive bill. Touches on a lot of areas,
(10:34):
both taxes and otherwise. Mostly people are concerned about the
tax front.
Speaker 3 (10:39):
I have to ask you about something I heard this
weekend that is in the bill that I had not
heard about. I know, I don't know if you know
about this or not, but they want to give a
thousand dollars per student we put into a into the
(11:00):
stock market. They can't draw it out until they're eighteen.
Do you know anything about that?
Speaker 5 (11:06):
Actually, it's not per student, it would be per child.
That is bold, and they would put I believe it
is one thousand dollars into a one time account that
would be invested into the stock market.
Speaker 4 (11:22):
I'm assuming the S and P.
Speaker 5 (11:23):
Five hundred, but who knows. And you're right the child
would not be able to touch it until they are
eighteen at the earliest. There are a couple of exceptions
as to when it can be taken out for health reasons, etc.
And perhaps for education. But it's designed to give them
(11:47):
a boost at the time that they become a age
of majority, which just happens to be the age in
most states in which somebody can vote. So isn't it
coincidental that this little gift is occurring the same time
you're able to start voting? So remember us Republicans, we
gave you that money. I can hear that. I can
hear that many years from now.
Speaker 3 (12:08):
They said that it could possibly worth as much as
fifty thousand dollars when.
Speaker 4 (12:14):
They I don't think that's really very possible. You know,
there's what we call.
Speaker 5 (12:20):
The rule of seventy two, and it says that if
you divide a certain rate of interest into seventy two,
it would tell you how long it would take money
to double. And if we took a let's say a
modest just say, I'm saying modest, and when I'm doing that,
(12:40):
I'm saying not any crazy numbers. An eight percent return
divided into seventy two, that's nine years. So the money
would double in nine years. So one thousand would go
to two thousand, two thousand nine, and two thousand will
go to four thousand when they're eighteen eighteen. So there's
no way that that's going to go to fifty thousand dollars.
(13:03):
There's some conversation about whether additional money can be added
to that by others, and then it might be possible
for the money to be higher.
Speaker 3 (13:14):
Well, that's why we have you here, to make sure
that we really understand what's going on. We got a
tux from Sally and Sarasota. He said, now that I
have turned seventy three, I need to take my required
distributions from my IRA. But I don't need the money,
(13:34):
So why am I forced to take it? What can
I do? Well?
Speaker 4 (13:38):
Xactly?
Speaker 5 (13:38):
It fits in perfectly with our prior conversation. It's all
about the government getting money. You know, when you put
money into your four to oh one K, your tax
sheltered annuity.
Speaker 4 (13:51):
Over the years.
Speaker 5 (13:52):
In most cases that money was tax deductible, so you
didn't pay any taxes on it when you put it
in to start start with, and then it remained tax deferred,
essentially growing without you having to pay any taxes over
the years.
Speaker 4 (14:08):
And you're not alone. There are lots of people in
your situation who really don't want it.
Speaker 5 (14:13):
But what we have is a government that does want it,
and that is they want you to pay taxes on
that money.
Speaker 4 (14:21):
And they recently a.
Speaker 5 (14:23):
Couple of years ago, I guess it was now raised
the age from seventy and a half to seventy two,
and then seventy three, and then another few years. It's
actually going to go up even higher before you have
to start taking the distributions. But specific to your question here,
other than having to take the money, you don't have
(14:45):
to spend it, although no reason you shouldn't. I mean,
after all, enjoy your retirement. But most people are going
to pay their taxes and then roll over the rest
of it. And put it into their non retirement money
so that it can continue you to grow, albeit on
a taxable basis, not tax deferred sally. The one thing
I'd recommend to you, however, is to work with your
(15:09):
accountant or your financial advisor, if you have one, And
what we suggest to our clients is what we call
fill up the bracket. So let's suppose that you are
forced to take out just ten thousand dollars of additional
income this year, and we'll suppose that you're in the
twenty percent tax bracket. If you look then at what
(15:32):
your taxable income is, and if you're not at the
very top of that bracket, you may want to look
to fill up that bracket with even more money from
your withdrawal from your IRA, and the amount above the
required minimum distribution, take it and roll it over into
a roth IRA where it will grow tax free and
(15:54):
you don't have to take it out, so you're not
paying any higher tax than you would be today because
you'll still stay within the same tax bracket, not moving
yourself up to a higher level. You'll take that money
that excess, let's say it's another eight thousand dollars, and
you'll move that whole eight thousand dollars back.
Speaker 4 (16:16):
Over into the roth IRA.
Speaker 5 (16:19):
It's just a way to turn some of that tax
deferred growth into tax free growth for the future, and
you're not required to take that money out at some
time in the future.
Speaker 3 (16:29):
Linda and Miami, I want to help my grandson pay
for his college education. Wish I had a grandparent like
that when I was going to school, but she once
to know pay for his college education when he enters
school this fault. Will he be texted on the money.
Speaker 5 (16:46):
Well, the good news is that you're able to give
away seventeen thousand dollars directly to your grandson and you
will have no gift tax and he will have oh
income tax implications unless you're giving him something other than
cash which might have appreciated in value. And if you
(17:12):
do that, look for those things that have the highest
capital gains in them, because he's going to be in
a much lower tax bracket than you are, most likely,
and so you're kind of shifting that tax burden over
to him. But him being in a lower tax bracket,
he's not going to pay nearly as much as you
might if you if you sell it. The other thing
(17:32):
you can do however, is if you are really wanting
to pay a large portion of the room and board
and the college tuition and everything, if you write a
check directly to the university, then not giving it to
your to your grandson, but giving it directly to the
(17:53):
university and pay for the tuition, room and board, and
some certain fees that will be charged by the college.
There is no gift tax to you on that gift.
It could be literally the most expensive college in the country,
which is about eighty thousand dollars a year this past
(18:13):
school year, and you could write a check for eighty
thousand dollars directly to the school and there's no gift
tax implications. You're a great grandmother for wanting to make
sure that he stays out of debt, because unfortunately, the
average student today comes out of college with something just
under forty thousand dollars in debt, which can be a
(18:36):
very and is a very heavy burden, and some who
went on to professional school are going to come out
with a couple hundred thousand dollars of debt. So a
kudos to you for wanting to helping. Those are two
ways that you can continue that you can think about
helping them. If you have other grandchildren that are coming
up the line, you could think about opening up a
five twenty nine education plan and start making gifts to
(19:01):
that today and allow that to accumulate on a tax
free basis and as long as it's used for qualified expenses.
So gift to him direct payment to the university five
twenty nine plans for those that may be coming behind
him at some dime in the future.
Speaker 4 (19:18):
And Steve, I just want to find me.
Speaker 5 (19:21):
Steve, I just want to remind everybody that if they
want to take advantage of our one hour complementary consultation,
happy to meet in our Clearwater office, our Tampa office,
or by zoom, whatever is most comfortable. All you have
to do is give us a call at one eight
hundred six three three three zero four nine. That's eight
(19:43):
hundred six three three three zero four nine. And if
you just want to explore us and look around at
us a little bit, go to Provis p r B
I SE dot com, provis dot com and you can
see what we're all about and join our family of clients.
Speaker 3 (20:01):
Marvin and Tampa just wrote us. He said, I love
the show. I've been watching your show for the last year.
I really respect your opinion. Ray All. I keep hearing
about is AI this AI that? Is it good to
invest in AI stocks now?
Speaker 5 (20:20):
So Marvin, the short answer is yes, but you need
to look at those companies that are in real businesses
making money today and not those that are trying to
do something with AI that may or may not ever
get off the ground. You know, if you say we're
(20:41):
doing this with artificial intelligence and AI, people are just
gravitating to those without really investigating a company. But yes,
there's no question that artificial intelligence is here to stay.
There's no question that we are in the infant stages
(21:02):
of artificial intelligence. But let me also say to you
that it's a long slog. The Magnificent Seven last year
were up dramatically, and all of it was the hype
around AI. Suddenly people are beginning to understand just as
we've been telling folks, it's going to take five, maybe
(21:23):
ten years before AI starts to really begin to be
able to make a difference to the bottom line of companies.
So sure, no harm in investing, but invest in real companies,
companies that are using AI and making money with it today.
(21:45):
And the last thing you want to do is take
a stock tip from your friend next door who's going
to tell you about the latest and greatest. The reason
I got into the business fifty three years ago is
somebody gave me a stock tip when I was a young,
wet behind the ears kid, fresh out of college, and
I lost all of the money I invested because I
(22:07):
listened to that tip, and that's what got me into
this business in the in the first place.
Speaker 4 (22:11):
So work with your advisor and we'd love to help you.
If you would like.
Speaker 5 (22:16):
To again, give us a call at eight hundred and
six three three three zero four nine.
Speaker 3 (22:23):
Right. Your show goes by so fast, but great news.
Ray's going to be back in two weeks with more
on as the Experts. Thanks so much, Ray.
Speaker 4 (22:31):
Steve, take care.
Speaker 5 (22:32):
I'm a wonderful week and I'll look forward to seeing
you in two weeks.
Speaker 3 (22:35):
See you then, thank you. That's Ray fer Our provised
management that'll do it first today. We'll be back next
week with more sc experts.
Speaker 2 (22:46):
Thanks for tuning in today to the Ask the Experts
show on the W four C Y Radio and Talk
for TV. Tune in next week and every week to
hear more from our experts on personal injury. Insurance, air
condition repays, estate planning, medicare, and many other topics in
the areas of legal, health, financial and home improvement. See
(23:09):
you next week.
The topics and opinions expressed in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:26):
Welcome to the Ask the Experts Show on W four
CY Radio and Talk for TV, where we bring you
educational information from top local experts in the fields of legal, health,
financial and home improvement. Now sit back and listen to
experts in family law, association, law, hearing laws, business brokers,
(00:47):
home care, along with many other topics. Now here are
your hosts, Stevo and Sophia.
Speaker 3 (00:55):
Hey, Good morning, Florida. Welcome to another Asked the Expert Show.
We bring you the top experts in the field of legal, health, financial,
and home improvement. We have got this is the first
Monday of the month. I can't believe we're already in June.
That also means pro vised management Group. I got to
(01:16):
tell you they have been with us now for over
three years and they are the most respected financial management
group that we've ever had on any of our showows
over the last fifteen years. We are so blessed to
having me. Welcome you to Ray Ferrara. Good morning, Ray,
Good morning Steve.
Speaker 4 (01:37):
How are you doing. I hope you are doing it.
Speaker 3 (01:40):
Yes, wasn't long enough. It never is. But oh my god, Ray,
I just heard that there's already a disturbance out in
the Atlantic. That's early, Yes it is.
Speaker 5 (01:52):
But you know, we had a storm last year in May.
That was the first name named storm even before the
season started. So at least this and waited until the
second day of the season to maybe show up.
Speaker 3 (02:04):
Well, I hope we'll be safe. I hate some of
the things I'm reading, especially from the farmer resolved on that,
but hey, Ray, you know what, we get emails almost
weekly people finding your show for the first time and listen.
Podcasts have become just a way of life now. People
(02:25):
love the fact that they can listen to a show
on their time, and so because we get so many
new people tell people about provided Management Group.
Speaker 5 (02:37):
Steve Provide Management Group is a financial planning and investment
management firm based in Clearwater and Tampa, Florida, although we
have clients in over thirty states, about eleven hundred families
that were happening with their helping with their financial planning
and investment management, and we see investment management as a
(02:58):
subset of the finance planning process, which is always continuing
because this very scientific term stuff happens. We're managing somewhere
around two billion dollars of assets on behalf of our
eleven hundred families and adding new people every every month,
and would welcome the opportunity for anyone watching the show
(03:20):
today to join our our family. All they have to
do is give us a call at one eight hundred
six three three three zero four nine, that's one eight
hundred six three three three zero four nine and ask
for our complementary one hour consultation totally without any cost
(03:41):
at all. We'll visit in either Tampa or Clearwater or
by zoom if it's more convenient to get for you
to get to know us better, or simply go to
ww dot provis dot com, p r o bi se
dot com and kind of gander around our website. If
(04:01):
you like what you see, then give us a call
at eight hundred six three three three zero four nine.
Speaker 3 (04:08):
And you know, we decided made a decision that this
show is so important that we opened it up for
the entire entire state of Florida, even though you've got
even clients all over the world, but we opened it
up for Frauda. So if you're in Boca and you're
watching listening today, or if you're in Orlando, please give
(04:33):
Ray a call. Also, people keep asking me about your website.
It's provis dot com, right.
Speaker 5 (04:40):
That is correct, provis pro bi se dot com.
Speaker 3 (04:46):
Well, Ray, you know, we as much as we try
to stay away from making this a political shows, sometimes
it's really hard. But you know that one Big Beautiful
Bill is still on everybody's mind. And of course, last
week the House passed that bill. I don't think they're
going to have such an easy time with the Senate.
(05:08):
What are the are the major provisions of the bill
and what's going to happen now.
Speaker 5 (05:14):
So let's talk about it passing in the first place.
While while while the President and the Republicans have built
it as the One Big Beautiful Bill Act, it's actually
the name of the act itself, the one Big Beautiful Bill.
The Democrats, if you listened to any of them yesterday
(05:37):
on the Sunday talk shows, we're calling it one.
Speaker 4 (05:40):
Big ugly bill as opposed to beautiful.
Speaker 5 (05:47):
Anyhow, it passed by literally one vote in the House
because there was a lot of wrangling that occur, particularly
with the conservative block in the in the House, not
one Democrat voted for the bill, two Republicans voted nay,
and two fifteen to fourteen was enough to get it passed.
(06:11):
So major provisions in the bill. First of all, it
extends all of the income tax brackets that came out
of the twenty seventeen bill, so thirty seven percent is
the top tax tax rate. It's a very complicated bill
(06:31):
because there are things that sunset in three years, other
things that set sunset in five years, some that are
made permanent, and as we've talked about on the show before,
it's only permanent until the next Congress changes it, you know,
back to whatever it wants it to be. But in
addition to extending the tax brackets and continuing at the
(06:57):
present level, the big areas of concern.
Speaker 4 (07:02):
Were the salt.
Speaker 5 (07:05):
Deductibility, and that State and Local Taxes SA LT SALT.
It's been ten thousand dollars. It was capped at ten
thousand dollars since two thousand and seventeen, and there was
a lot of wrangling. The President originally was good with
the twenty thousand compromise to thirty to get it passed.
(07:28):
It went to forty thousand, So there's still a cap
on the assault taxes, but it's four times bigger than
what we have today. The other large controversy was over
cutting waste abuse, as the Republicans referred to it, and
the one that is taking the biggest hit would be Medicare.
(07:48):
Now they're saying there isn't a hit to Medicare, and
that sounds good. It's just that they've put in a
work provision to keep people from just taking advantage of
the quote unquote system. But the fact is it is
a deep cut to Medicare, and that is going to
be one of the things in the Senate that is
(08:09):
going to be discussed at great length and is likely
to be changed before it goes back to the House.
On the income tax side, the President had pledged to
make tips tax free. It didn't make them tax free,
(08:29):
but he did exempt in the Republican bill, did exempt
taxes on the first twenty five thousand dollars of tips
that someone got. So I'm willing to bet there's going
to be a lot of people that are working for
tips that will report.
Speaker 4 (08:44):
Twenty three twenty four.
Speaker 5 (08:45):
Thousand dollars of income somehow not report the rest of it,
you know, so that's a pretty good deal for them.
He also promised to eliminate taxes on Social Security. There
was we talked about this and said there's just no
way to do that because of having to go back
into the trust fund. But what he did do is
(09:06):
again with some caveats around it for people who are seniors.
And interestingly, seniors was not defined in the build, so
everyone is thinking it's sixty five and over and who
make less than a certain amount of money, we'll be
able to get an extra deduction of four thousand dollars
per person. So for a couple, it would be an
(09:28):
added eight thousand dollars. And that's even if you're itemized.
Excuse me, even if you're a non itemizer, you'll be
able to deduct that money on the and again, there's
no sense talking anymore about all of the little minor
provisions that are in their corporate taxes were held the
same because whatever happens now is going to change when
(09:52):
it gets into the Senate. Everybody is optimistic then in
the next thirty two days, by July fourth, they'll be
able to get a bill on the President's desk. I've
said before, I didn't think that they would make it
by the June first deadline that was initially set. I
don't think they're going to make July fourth, because with
(10:14):
the Senate making changes, it's got to go back to
the House. They're going to have a conference over compromise,
et cetera. But we will be doing a special report
once the bill is done and making it available all
of the listeners here at ask the expert. So it's
a very comprehensive bill. Touches on a lot of areas,
(10:34):
both taxes and otherwise. Mostly people are concerned about the
tax front.
Speaker 3 (10:39):
I have to ask you about something I heard this
weekend that is in the bill that I had not
heard about. I know, I don't know if you know
about this or not, but they want to give a
thousand dollars per student we put into a into the
(11:00):
stock market. They can't draw it out until they're eighteen.
Do you know anything about that?
Speaker 5 (11:06):
Actually, it's not per student, it would be per child.
That is bold, and they would put I believe it
is one thousand dollars into a one time account that
would be invested into the stock market.
Speaker 4 (11:22):
I'm assuming the S and P.
Speaker 5 (11:23):
Five hundred, but who knows. And you're right the child
would not be able to touch it until they are
eighteen at the earliest. There are a couple of exceptions
as to when it can be taken out for health reasons, etc.
And perhaps for education. But it's designed to give them
(11:47):
a boost at the time that they become a age
of majority, which just happens to be the age in
most states in which somebody can vote. So isn't it
coincidental that this little gift is occurring the same time
you're able to start voting? So remember us Republicans, we
gave you that money. I can hear that. I can
hear that many years from now.
Speaker 3 (12:08):
They said that it could possibly worth as much as
fifty thousand dollars when.
Speaker 4 (12:14):
They I don't think that's really very possible. You know,
there's what we call.
Speaker 5 (12:20):
The rule of seventy two, and it says that if
you divide a certain rate of interest into seventy two,
it would tell you how long it would take money
to double. And if we took a let's say a
modest just say, I'm saying modest, and when I'm doing that,
(12:40):
I'm saying not any crazy numbers. An eight percent return
divided into seventy two, that's nine years. So the money
would double in nine years. So one thousand would go
to two thousand, two thousand nine, and two thousand will
go to four thousand when they're eighteen eighteen. So there's
no way that that's going to go to fifty thousand dollars.
(13:03):
There's some conversation about whether additional money can be added
to that by others, and then it might be possible
for the money to be higher.
Speaker 3 (13:14):
Well, that's why we have you here, to make sure
that we really understand what's going on. We got a
tux from Sally and Sarasota. He said, now that I
have turned seventy three, I need to take my required
distributions from my IRA. But I don't need the money,
(13:34):
So why am I forced to take it? What can
I do? Well?
Speaker 4 (13:38):
Xactly?
Speaker 5 (13:38):
It fits in perfectly with our prior conversation. It's all
about the government getting money. You know, when you put
money into your four to oh one K, your tax
sheltered annuity.
Speaker 4 (13:51):
Over the years.
Speaker 5 (13:52):
In most cases that money was tax deductible, so you
didn't pay any taxes on it when you put it
in to start start with, and then it remained tax deferred,
essentially growing without you having to pay any taxes over
the years.
Speaker 4 (14:08):
And you're not alone. There are lots of people in
your situation who really don't want it.
Speaker 5 (14:13):
But what we have is a government that does want it,
and that is they want you to pay taxes on
that money.
Speaker 4 (14:21):
And they recently a.
Speaker 5 (14:23):
Couple of years ago, I guess it was now raised
the age from seventy and a half to seventy two,
and then seventy three, and then another few years. It's
actually going to go up even higher before you have
to start taking the distributions. But specific to your question here,
other than having to take the money, you don't have
(14:45):
to spend it, although no reason you shouldn't. I mean,
after all, enjoy your retirement. But most people are going
to pay their taxes and then roll over the rest
of it. And put it into their non retirement money
so that it can continue you to grow, albeit on
a taxable basis, not tax deferred sally. The one thing
I'd recommend to you, however, is to work with your
(15:09):
accountant or your financial advisor, if you have one, And
what we suggest to our clients is what we call
fill up the bracket. So let's suppose that you are
forced to take out just ten thousand dollars of additional
income this year, and we'll suppose that you're in the
twenty percent tax bracket. If you look then at what
(15:32):
your taxable income is, and if you're not at the
very top of that bracket, you may want to look
to fill up that bracket with even more money from
your withdrawal from your IRA, and the amount above the
required minimum distribution, take it and roll it over into
a roth IRA where it will grow tax free and
(15:54):
you don't have to take it out, so you're not
paying any higher tax than you would be today because
you'll still stay within the same tax bracket, not moving
yourself up to a higher level. You'll take that money
that excess, let's say it's another eight thousand dollars, and
you'll move that whole eight thousand dollars back.
Speaker 4 (16:16):
Over into the roth IRA.
Speaker 5 (16:19):
It's just a way to turn some of that tax
deferred growth into tax free growth for the future, and
you're not required to take that money out at some
time in the future.
Speaker 3 (16:29):
Linda and Miami, I want to help my grandson pay
for his college education. Wish I had a grandparent like
that when I was going to school, but she once
to know pay for his college education when he enters
school this fault. Will he be texted on the money.
Speaker 5 (16:46):
Well, the good news is that you're able to give
away seventeen thousand dollars directly to your grandson and you
will have no gift tax and he will have oh
income tax implications unless you're giving him something other than
cash which might have appreciated in value. And if you
(17:12):
do that, look for those things that have the highest
capital gains in them, because he's going to be in
a much lower tax bracket than you are, most likely,
and so you're kind of shifting that tax burden over
to him. But him being in a lower tax bracket,
he's not going to pay nearly as much as you
might if you if you sell it. The other thing
(17:32):
you can do however, is if you are really wanting
to pay a large portion of the room and board
and the college tuition and everything, if you write a
check directly to the university, then not giving it to
your to your grandson, but giving it directly to the
(17:53):
university and pay for the tuition, room and board, and
some certain fees that will be charged by the college.
There is no gift tax to you on that gift.
It could be literally the most expensive college in the country,
which is about eighty thousand dollars a year this past
(18:13):
school year, and you could write a check for eighty
thousand dollars directly to the school and there's no gift
tax implications. You're a great grandmother for wanting to make
sure that he stays out of debt, because unfortunately, the
average student today comes out of college with something just
under forty thousand dollars in debt, which can be a
(18:36):
very and is a very heavy burden, and some who
went on to professional school are going to come out
with a couple hundred thousand dollars of debt. So a
kudos to you for wanting to helping. Those are two
ways that you can continue that you can think about
helping them. If you have other grandchildren that are coming
up the line, you could think about opening up a
five twenty nine education plan and start making gifts to
(19:01):
that today and allow that to accumulate on a tax
free basis and as long as it's used for qualified expenses.
So gift to him direct payment to the university five
twenty nine plans for those that may be coming behind
him at some dime in the future.
Speaker 4 (19:18):
And Steve, I just want to find me.
Speaker 5 (19:21):
Steve, I just want to remind everybody that if they
want to take advantage of our one hour complementary consultation,
happy to meet in our Clearwater office, our Tampa office,
or by zoom, whatever is most comfortable. All you have
to do is give us a call at one eight
hundred six three three three zero four nine. That's eight
(19:43):
hundred six three three three zero four nine. And if
you just want to explore us and look around at
us a little bit, go to Provis p r B
I SE dot com, provis dot com and you can
see what we're all about and join our family of clients.
Speaker 3 (20:01):
Marvin and Tampa just wrote us. He said, I love
the show. I've been watching your show for the last year.
I really respect your opinion. Ray All. I keep hearing
about is AI this AI that? Is it good to
invest in AI stocks now?
Speaker 5 (20:20):
So Marvin, the short answer is yes, but you need
to look at those companies that are in real businesses
making money today and not those that are trying to
do something with AI that may or may not ever
get off the ground. You know, if you say we're
(20:41):
doing this with artificial intelligence and AI, people are just
gravitating to those without really investigating a company. But yes,
there's no question that artificial intelligence is here to stay.
There's no question that we are in the infant stages
(21:02):
of artificial intelligence. But let me also say to you
that it's a long slog. The Magnificent Seven last year
were up dramatically, and all of it was the hype
around AI. Suddenly people are beginning to understand just as
we've been telling folks, it's going to take five, maybe
(21:23):
ten years before AI starts to really begin to be
able to make a difference to the bottom line of companies.
So sure, no harm in investing, but invest in real companies,
companies that are using AI and making money with it today.
(21:45):
And the last thing you want to do is take
a stock tip from your friend next door who's going
to tell you about the latest and greatest. The reason
I got into the business fifty three years ago is
somebody gave me a stock tip when I was a young,
wet behind the ears kid, fresh out of college, and
I lost all of the money I invested because I
(22:07):
listened to that tip, and that's what got me into
this business in the in the first place.
Speaker 4 (22:11):
So work with your advisor and we'd love to help you.
If you would like.
Speaker 5 (22:16):
To again, give us a call at eight hundred and
six three three three zero four nine.
Speaker 3 (22:23):
Right. Your show goes by so fast, but great news.
Ray's going to be back in two weeks with more
on as the Experts. Thanks so much, Ray.
Speaker 4 (22:31):
Steve, take care.
Speaker 5 (22:32):
I'm a wonderful week and I'll look forward to seeing
you in two weeks.
Speaker 3 (22:35):
See you then, thank you. That's Ray fer Our provised
management that'll do it first today. We'll be back next
week with more sc experts.
Speaker 2 (22:46):
Thanks for tuning in today to the Ask the Experts
show on the W four C Y Radio and Talk
for TV. Tune in next week and every week to
hear more from our experts on personal injury. Insurance, air
condition repays, estate planning, medicare, and many other topics in
the areas of legal, health, financial and home improvement. See
(23:09):
you next week.
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