Retirement Ready

March 2nd, 2024

Episode Transcript

(00:00):
Live from the wgy iHeart Studios.Welcome to Retirement Ready with your host Dave
Kopek from the Retirement Ready Show.Every week, Dave and his team discuss
the ways they can help people makeinformed decisions about a wide array of retirement
planning information that can support you anddeveloping a more certain financial future for you

(00:20):
and your family. Now it's timefor Dave Kopec, WGY's retirement Planning Specialist.

(00:50):
Good afternoon, Capitalistic, Region andbeyond. I just had a meeting
with my marketing agent before I cameon the show today. Had a little
telephone call and I'm kind of shocked. We've got a lot of listeners,
Zach outside the five Win to eight, all over the country, Michigan,

(01:11):
Texas, Florida, Tennessee, Carolinas. So we be doing it, brother,
we be doing it. Getting someears out there all over the country,
which is nice for homes you canvisit. Yeah, more apple pie
to test exactly, more apple tie. I try to be nice. You

(01:32):
know that's too aggressive. What'd youmake for me? But good afternoon.
This is Retirement Ready. This isa topic specific show. I'm wg wi's
retirement Planning Specialist. David Kopak,President of the Retirement Planning Group. We
have five locations, soon to besix. We have Aubany, Malta is

(01:52):
our corporate headquarters, Glens Falls,Syracuse, Oneanna, and we will be
opening an office soon in Tampa,Florida. So if you're in Florida,
we'll be down there a little bitmore frequently. I'll be down there next
week, in the following week,two weeks after that, I'm back down

(02:13):
there. So we have a largepopulation now in Florida that utilizes the services
of the Retirement Planning Group, andwe will build that out in much more
greater detail. More to come aboutthat. We're in negotiations right now with
another company maybe to do some worktogether. So very optimistic, very happy

(02:35):
with what's going on. So todaywe've got a topic that I'm hearing more
and more people talk to me about, and I did a little research on
it this week, and more andmore of the millennials want to retire in
their fifties after the pandemic, ashigh as fifty all a little over fifty

(03:00):
point three percent of the millennials wantto go into retirement and they want possibly
to do something else with their lives. But if they've been working for twenty
five or thirty years for XYZ Corporation, they've been good savers, then they

(03:23):
want to see if they can gointo the green pastures of retirement. Now,
the common theme out there for mostof you is that I can't retire
because I don't have health insurance.For some of you, that will be
true. Some that won't be truebecause your spouse might continue to work and

(03:44):
provide health care for the family.The second is that I can't retire because
I can't touch my money until agefifty nine and a half. Not true,
not true. So today's topic onethat we're going to get into and
fairly good detail, is that youcan tap your retirement accounts early without a

(04:12):
penalty. Say that again. Youcan tap into your retirement accounts, those
pre tax accounts iras four oh onek's, four O three b's, you
go through the whole laundry list withouta penalty. But there's a method to
the madness, and we'll go throughthat with you today so you understand exactly

(04:33):
what you can and cannot do.But for those that are sitting at home,
have a nice cup of coffee staringout the window at this a little
bit of rain. Actually, folks, it's been a very, very very
mild winner. For those that arelistening outside the five win eight, this
has really been Probably you agree,is this like the warmest you've ever seen

(04:56):
in Zach? I think for meit is a very winner. Yeah.
I don't know if it's been themost mild Maybe in my lifetime, maybe
in your life. I don't know. But I'm going to go through some
dates in ages that dates, agesthat are important for retirement, ones that

(05:19):
you should probably somehow put in yourmind or write down or talk to your
financial team. The first one isfifty five, and that's one of the
things that we're going to be talkingabout today, the rule of fifty five
versus Section seventy two T of theIRS Code that allows you to tap into

(05:46):
your assets before age fifty nine anda half without a ten percent penalty.
The other age that's important, fiftynine and a half. Why is that
important? That's the money that youcan tap into your retirement assets without that
ten percent penalty. Sixty what's sixtywidow benefits? You can get your SOL

(06:09):
security at age sixty sixty two earlierstage you can get just normal solid security
benefit sixty five. That's a bigone for a lot of US Medicare health
insurance. You qualify for Medicare sixtysix to sixty seven depending on when you

(06:34):
were born, what year FRA fullretirement age for your social security benefits.
And then the magical one if youdelay from sixty two to sixty five to
sixty six to seventy seventy is themaximum amount of money that they'll pay you
for your solid security at age seventyturn it on because you're not going to

(06:57):
get any more than what is beingput on that state or that piece of
paper. So these are all importantages for your retirement. But today we're
just going to take one slice ofthis pyramid. We're going to be talking
about age fifty five. Now.We do a lot of work with National
Grid, and those guys work hardwhat I call hard working savers. A

(07:25):
lot of our clients are hardworking savers, climbing poles, high power lines,
driving trucks, whatever it may be. A lot of them have worked there
for twenty five thirty years in theirage fifty three fifty four. Met a
couple this past week out in ourSyracuse office. He's been working for National

(07:48):
Grid for almost thirty years. Thirtyand he's fifty three years of age,
and guess what he wants to do. He wants to retire. That's why
I'm bringing up this topic today becausehe had no idea. The rule of
fifty five and Section seventy two Tthe IRS Code. Now, a lot

(08:13):
of advisors that are out there providevery impactful and relevant planning and guidance for
individuals. One crucial area of guidancewhat if your clients want or need to

(08:33):
start retirement withdrawals before the age offifty nine and a half, do they
know the ways to go about thatwithout catching the penalty of our good friends
at the IRS. Now I hearI got seven figures, my wife's going

(08:56):
to continue to work. I've gothealth insurance through National Grid. I've got
health insurance through my wife. I'mnot worried about that, but I want
to do something else with my life. It's just not what I want to
do for the next eight to tenyears before I turn magical age of sixty
six to sixty seven for my fullretirement age for my Social Security. So

(09:20):
we'll talk a little bit about thedifferences of what we call the rule of
fifty five and irs rule seventy twot how to get the money out of
the pot without a penalty, andwhich one is more advantageous for you?
And guess what, you don't haveto select one. You can do a

(09:43):
combo. I can do a combomeal. You can do a combo with
this type of planning. So I'mgoing to serve you up a condo retirement
plan. We'll talk about it ifyou have any questions or comments. Believe
it or not, I'm live inthe studio this week. Last week I

(10:03):
was down in Florida freezing. It'sabout sixty degrees in Florida. Last week
it was not warm, but Iget I got a chance. I don't
even know if I told you thissecond saw my Yankees, saw Aaron got
photographs of from right here on thephone. That stadium is beautiful. George
Steinberger Stadium is gorgeous, beautiful.So I'll be back there next week.

(10:26):
I look forward to going back andseeing some more clients. That I'm back
at April, seeing some more clientsin April two and buttoning up the new
office. So again, if youhave any questions or comments, I'm live
you can call in the studio hereeven if it's off topic, that's fine.
Our telephone number here is one eighthundred Talk WGY one eight two five

(10:50):
fifty nine forty nine. I'm DaveKopek. Wg wy's retirement planning specialists look
forward to maybe getting some of yourphone calls. And today we're talking about
I want to get out of thedoor? Can I do it? And
the answer is yes if your agefifty five will be right back the eighty
six percenters. Do you know thateighty six percent of the population has no

(11:11):
defined benefit pension plan. For mostof us, we have to take our
life savings and create a paycheck forthe rest of our lives in retirement.
What is your plan for retirement incomedistribution? How you manage your assets during
the most critical years of your lifetime. Nobel Prize winning economist William Sharp has
called retirement income distribution the nastiest,hardest problem in finance. He points out

(11:33):
that investment, uncertainty, and mortalitycan derail the most careful laid out retirement
income plan. Call our offices todayto start the process of building a retirement
income distribution plan. After forty oneyears of being in the financial services business,
you need to start taking action tostart building your own personal retirement income
distribution plan. How do you dothat? To take action? Five one

(11:54):
eight five eight zero one nine nine. That's five one eight five eight zero
one nine one nine or our PGretire on the web. Don't procrastinate,
motivate to start building your retirement incomedistribution plan five eight five eight zero one
nine one nine. If you haveany questions, call in now at one
eight hundred talk WGY. That's oneeight hundred eight two five five nine four

(12:16):
nine one eight hundred eight two fivefive nine four nine. We are here
live in studio, ready to answeryour questions. Serve them nights. Have

(12:37):
you webb the belt? Serve themnine free, yes, breeze not to
mention the trees with spen tunes thatyou know and love soul, serve them
nine. Let's just listen to music. Just as Goody, one of my

(13:01):
favorite singers are there's played with theBeach Boys. A lot of people don't
know that, mister Campbell all right. Rule of fifty five or IRS seventy
two t The rule of fifty fiveallows penalty free distributions when overemphasize penalty free

(13:24):
from their workplace retirement plan four ohone K four oh three B as long
as they've left their job. Okay, gotta say bye bye. So a
client who wants to retire at fiftyfive could take out their money and their

(13:45):
four O one K with no worryabout that ten percent early withdrawal penalty from
our good friends at IRS. There'sa few stipulations though, all right,
and I'll go through those quick becausethey don't want to bore you. They
have to leave their job in orafter the age of fifty five. They

(14:05):
cannot roll the money into an IRA. Money has to stay in their four
to own K program. We canfix that too. We got a remedy
for that, two folks. Therule can only apply to the plan for
their most recent employer. Here thatrecent employer, they'll be subject to a

(14:26):
twenty percent income tax withholding on distributionsif they don't fill out a distribution form.
And finally, drum roll, please, their plan has to allow them
to use the rule of fifty fiveto take the money out early. So
the TPA, the TPA, theTPA has to have inside the document.

(14:50):
The plan administration has to allow thefifty five rule in order for you to
get the dough ray meet. Nowyou have a question for me, darling.
So we had a caller that saysthat they work for GE and they
want to know RSP. They're notallowed, supposedly to take it out until

(15:11):
they're in their sixties. Is therea difference between that and a pension.
No, they can get to it. Yes, they can give us a
call at the office and we'll gothrough it with you. So there's a
lot of things that you can dothat you're not aware of. So what

(15:31):
we try to do is do someedumacation here and inform you and inform you
there is a thing called an inservice withdrawal where you're allowed to take these
distributions out. We just did thiswith a GE future retiree and we rolled
it into a self directed IRA.With that situation, you have to be

(15:52):
fifty nine and a half. That'sthe magical age fifty nine and a half.
So yes, Mother Ge. Italked about Mother ge today on our
first show. I'll tell you whatcouldn't be happier if you are getting barons,
You're gonna love the article that's onthe front page about Larry Colp.
If you haven't got barons, goget it. If you were a G

(16:15):
shareholder you're thinking about buying GE.It's a wonderful article. I am a
major, major advocate for Larry Colp. What he did at Dana Her he's
doing at GE, and I thinkeverybody's going to be doing the macarena umcoreena.
Is that how it goes? Soyou can get to the money at

(16:38):
fifty five. But you don't dothis, folks by yourself. It's like
the guy that's sitting at the kitchentable. You remember this, and he
goes, you want me to dowhat? He's got a knife and the
knife is up by his chest andhe's on a telephone line and they're directing
him how to do his own.Well, you don't want to do this.

(17:03):
You don't want to do this.You want to have a competent team
of professionals to help you because ifyou screw it up, you're going to
have a huge tax liability and chancesare the horse is not going to get
back in the barn and it's goingto be one of those moments that you're
not going to have a happy smileon your face. The rule of seventy

(17:25):
two T. I told you aboutthe rule of fifty five. Now let's
talk about the rule seventy two T. These are all IRS tax quotes,
okay, and they're all related toearly distributions from tax advantage plans. Section
seventy two T allows taxpayers to takepenalty free withdrawals from an IRA four oh

(17:51):
one K four O three B whenthey've made a series this is the key
word, series of substantial equal periodicpayments. In our business, they call
it a so step so sepp.You can look this up on the web.
A distribution qualifies as a penalty freepayment. It has to be for

(18:17):
five years at a minimum, oruntil they turn the age of fifty nine
and a half, whichever comes later. You're allowed to choose from one to
three calculation. And I'm not goingto bory with the calculation methods, okay,
because that's like watching paint dry.But the three are required minimum distribution,

(18:41):
amateurization method, and annuitization method.Those are the three calculations that you
have to do. When we dothem, usually the people will select select
the one that gives them the mostmoney. Capeche. Now, what you
don't want to do is you don'twant to one of these and put all

(19:02):
your money in it. Why isthat? Because the seventy two T does
not give you the flexibility that theother option, the rule of fifty five
does, which I'll get into alittle bit more detail. Okay, so
you're gonna get a fixed amount fromthe seventy two T. Now which one

(19:25):
is better? This is what I'llsay to you. The rule of fifty
five, as far as I'm concerned, Now, this is my personal opinion,
Okay, offers a number of benefitsover the seventy two withdrawal. The
main benefit is this flexibility. Therule of fifty fives allows four oh one

(19:52):
K withdraws in any amount. Right, I said, seventy two T must
be calculated and they have to bethe same amount for a certain period of
time five years or until the taxpayerturns the magical age of fifty nine and
a half. And there's strict rulesfor so steps that can trigger steep penalties

(20:15):
to violate. You do not warningyou got any like sounds like, uh,
you know, fog horns or youknow alarm going off. You don't
want to do this yourself, folks, I gotta get one of those things
that Kramer has on TV. Yougot all the buttons I need, like
six or eight buttons? Can youget that for me for next week?

(20:37):
Please? Yeah. So the roleof fifty five, of course, comes
with a big catch. It onlyapplies to workplace retirement plans CAPECHE. That
means the money's got to stay inthe four to oh one K and of

(21:00):
course the other one. Not allplans allow it. Most do, but
not all do. So you've gotto start doing a little homework and make
sure that you understand the options thatare available to you through your plan provider
what we call the TPA, thecustodian of the asset. And then you

(21:22):
want to make sure that your financialteam is working out a plan in order
to satisfy what you're going to needfor creature, comforts for quality of life.
It's our job as financial advisors topresent all the options for withdrawing money

(21:48):
from the client's four oh one Kprogram or IRA to help them determine the
most tax efficient, prudent way tosolve for their own personal situation. And

(22:10):
lastly, it's important to note thatif you have a four to one K
loan at the time you leave thejob, the balance is doing full.
The balance is doing full. Okay, there's a lot of people that use

(22:33):
the four oh one K loan provisionas a piggybank nine buying a car,
need something, roof, whatever itis. You're borrowing money and you're paying
yourself. It's a great way inorder to facilitate it. I'm a major
advocate of it. But the thingis is that it all has to go
into this calculation. The fundamentals ofwhat you're setting up now. One of

(23:02):
the things that I'm not going toget into it because I'm gonna have to
take a break care in a coupleof minutes. How do you solve for
the investment selection? If I haveto leave my money in the four to
oh one K program, that's notgoing to be good because I only have
a handful of investments. I've gotthese target date funds which stink. I've

(23:22):
got these other few things. Ireally don't have a large selection. Ding
ding ding ding ding. We theRetirement Planning Group can solve for that because
we have a working relationship with alot of these plan providers to allow you
to do a brokerage window. Wetalked about that this morning too. The

(23:44):
brokerage window allows you the four tooh one K participant to direct these investments
with a multitude of investments as highas nine thousand investment options, depending depending
right, depending what you're trying toachieve. Of course, you're starting the

(24:08):
distributions. I don't know if you'regoing into the green pastures of retirement permanently.
I don't know if you're going tosupplement some of this with a job.
I don't know if you're going tohave your spouse basically take the bull
by the horns, you know,I fly a lot. I fly all
over the country because of the business, and we have clients all over the
country. I'm flabbergasted now by theamount of flight attendants, male and female,

(24:36):
that have changed their career paths intheir fifties. One woman was a
teacher, she homeschooled her kids.Now she's a flight attendant. Her husband
said, go shoot for the moon. You've always wanted to do this,
Go for a girl, and that'sexactly what she did. Flight attendant that

(24:56):
I met this past trip, nurse, she's a nurse. Always wanted to
be a flight attendant because she's anurse and she has a lot of ability
to be selective when she wants towork, when she doesn't want to work,
she does a combo. She doesnursing and also as a flight attendant.

(25:17):
And with Southwest they can work justa handful of days a year.
Folks believe it or not, andstill keep their benefits. So what's the
saying we want to make your dreamscome true? You can. You can
get out the door, maybe soonerthan you think under seventy two t in

(25:38):
rule fifty five. And we'll discussit a little bit more in detail when
we come back. This is theRetirement Planning Show Retirement Ready section. I'll
be right back after this quick message. I've been walking in these streets so

(26:00):
long, singing the same old songI do every cracking these thirty sidewalks abroadly
where hustles the name of the gameand nice guys get washed away like the

(26:22):
snow and the rain. There's beena lot of calm from rising on the
road to my horizon. But I'mgonna be where the lights are shining on
me like a rhyme star cowboy ridingon a fast star Spanger road Yo,

(26:56):
like a Ryde song cowboy. Goodstuff, good stuff, mycer Zach kills
it with the tunes. All right, can you retire at fifty five?
He answers, yes, yes,yes, yes, yes. Now there's

(27:19):
some exceptions and I'll go through thembriefly. Okay, but these are band
aids. These are not plans.You can purchase a first home ten thousand,
pay for health insurance premiums while unemployedyou're totally impermanently disabled. They need
to cover higher education expenses, payreimbursed medical expenses, and they are qualified

(27:42):
reservists who are called to active duty. God bless those people. And bottom
line is that it's still tax though. Okay, if it's qualified assets,
you can get it no penalty,but you're still taxed. You know your
trusted team. It's our job topresent all the options withdrawing money, not

(28:03):
only accumulating money. But what wedo at the Retirement Planning Group, we
have a pretty strategic plan. Allof our business goes through Fidelity. Fidelity.
We are part of FAIWA Fidelity InstitutionalWealth Advisors. That's not everybody's opportunity.
We knock on the door of thescreen and scrub us and they allowed
us to come in and they havea lot of resources, and a lot

(28:26):
of these calculations that we do,we would do through the mothership Fidelity in
order to make sure that they're accurateand we can substantiate it. Now here's
a key to what I'm talking abouthere. Okay, this is important.
Do not roll the money into anIRA ever. Ever, ever, Ever,

(28:48):
if you leave work early at fiftyfive or younger fifty six, fifty
seven, and you think you mightwant to tap into it, do not
touch that money until you decide ifyou need it, because once it's in
the IRA, you've lost the opportunityto have flexibility like you would have under
the rule of fifty five. Ruleof fifty five allows you to have flexibility.

(29:14):
Seventy two T, as you remember, does not, does not,
does not. So it's our belief. And I'll tell you a real quick
story, which twenty years ago,maybe a little bit longer than that,

(29:36):
had a client that came in workedfor a pharmaceutical firm substantial amount of assets,
wanted to retire. This particular individualwas under the age of fifty nine
and a half, had about threeyears to go, and we talked about
seventy two T. I thought itwas the greatest thing since slice bread,
I was unaware of the rule offifty five. What I should have done

(30:02):
is done the rule of seventy twot because he did want a certain amount
of money guaranteed coming in for acertain period of time. But the rule
of fifty five would have gave memore flexibility as far as keeping some money
in the four oh one k fornine to one to one events, or
extra cash or extra trips or anoops, you know, I don't have
enough money in the pot because thatmoney could have been used in order to

(30:26):
facilitate what we call the nine toone ones in lives. So I'm going
to highlight this because, as Isaid, I think it's important for people
that are out there. The worldhas changed, The world has changed,

(30:47):
COVID has changed the attitude for mygeneration, the boomer and also for the
millennials as far as when, where, who, what? When I'm going
to pull the plug and go intothat next stage of my life, what
I call the back nine of ourlives. And if that is the case,

(31:11):
as I say over and over again, this is my twenty fifth year
on radio. This month March mytwenty fifth March of ninety nine, I
started in radio So this is mytwenty fifth year on radio, and I
would say this that if I hada nickel for every time that someone came

(31:33):
into my office and said, youknow what, I probably shouldn't have retired
or I shouldn't have taken my benefitsso early, or I shouldn't have go
and got my solid security when Idid. You got to realize, folks,
sometimes you're going to make decisions thatyou cannot go back and change solid
security. For years, you usedto be able to select your Social Security

(31:53):
as long as you paid it back. If you thought you made a bad
decision, Okay, you could payit all back and you could allowed to
keep on accruing and go for ahigher benefit. Now you got twelve months.
That's it, twelve months pension benefits. Once you select a pension benefit,
boom. Once that check comes,boom, you're locked and loaded,

(32:16):
horses out of the barn. Nowhere's the big thing for everybody that's out
there that has a pension benefit.Now use National Grid as an example.
National Grid they have a great matchprogram for their four own K program,
but they also have a cash balanceaccount. That cash balance account, there's

(32:40):
two options when they retire nuitization becauseit's an annuity, right anutization. Or
they can take that cash and theycan roll it into a self directed IRA.
But at what age? But atwhat age? Remember what I just
said, fifty five seventy two tIt's a tricking landscape here. So you've

(33:06):
got to make sure that whatever decisionsyou're making, fundamentally, you're not going
to get hit with a penalty becauseyou elected the wrong one. Now,
we are advocates of not taking theannuity through the company. We are advocates
of taking the money and keeping itinside your estate because if you die prematurely,

(33:35):
or if you select the wrong option, or mom and dad go away
and they don't come home God forbid, then that money's gone. The money's
gone. If you get a spousalbenefit, if you take the rollover,
okay, if you take the rollover, then you have the ability to control
those assets, control the legacy,control the cash flow the annuity you select

(34:00):
it right versus out of the barn. You can't get it back in.
So going to another combo meal hereand the financial services all right now,
some people say, Hey, Dave, I don't care. Okay, I
don't care, and I'm going tokids. I a wife, I'm taking

(34:22):
the annuity. You take the fouroh one K, and you manage the
four oh one k. Okay,mister Apple, that sounds good to me.
That's what you want to do yourmoney. You've busted your tail,
that's your hard earned dollars. We'llfigure it out for you. But let
me just say one thing to you. We're not rolling the four oh one
k money over, sir. Whyis that, Dave? Because you're not

(34:43):
fifty nine and a half. Whathappens if you need additional assets? What
happens if we don't select the rightdistribution right? What happens if you need
to get to those assets if weroll it into the self directed IRA?
Now, because you're not fifty nineand a half, forget what ding ding?
Go ahead, you're gonna get apenalty. We don't want penalties.
We don't like penalties. Penalties arebad. So let me summarize again again.

(35:13):
Every situation is different, Every familyis different. Everybody's need for income
is different, everybody's social security selectionis different. We have a lot of
male female that lived together. Onedoesn't get married because she knows or she's
got spousal benefit, right, widowsbenefit at age sixty. Right. I

(35:43):
did an analogy about this not toolong ago. And most of my family
on my mother's side and also onmy wife's side of the family are all
carpenters, electricians, construction people.So well, I've been around those people
my whole life, and I alwaysdo the analogy of what I do to

(36:08):
what they do, because I thinkit resonates with people. And here's my
method to my madness here, yourretirement plan is only as good as your
blueprint. Right. If you startoff and say, well, fifty nine

(36:30):
and a half, I'm going toretire, let's go well, let's keep
our fingers crossed, okay, thatwe're making all the right decisions, because
three to five years before you retire, you should be building out your plan.
Three to five years before you retire, I'm me say it again,
you should be building your plan,building out your blueprint right, and understanding

(36:52):
the selections that you make. Theguy that we met with out in Syracuse
has got a seventh figure account,right, He's gared to death. He
doesn't want to go through another twentyand twenty two. He doesn't want to
see his account go down thirty orforty percent. Right, you blame him.
I don't want to blame him.He wants to be out the door
in two years. So what Isaid to him, You're in the red

(37:13):
zone. That's what we call thered zone at the retirement Planning group.
Right, you get kicked in theteeth, something happens dramatically, and now
your portfolio goes from a million dollarsdown to six hundred thousand dollars. Now
now, now, now he's saying, I don't want that. I don't
want that. I don't want that. Seven out of ten you say I
don't want that, but most ofyou don't do it. About ten percent

(37:35):
of you do it. As faras protecting, because everybody is what.
Two things dictate people making decisions.Fear a greed. I want to get
a little bit more, keep itin a little bit longer, and then

(37:57):
it goes down. I'm not gonnaYeah, I'm not gonna sell you on
why didn't you tell me to sell. We're not market timers, mister Apple.
We're financial advisors. We're not markettimers. That's not nobody does it.
That's why Warren Buffett won a milliondollars from a hedge fund guy by
just investing inside an index portfolio.So heed this advice. Marking my twenty

(38:23):
fifth anniversary in radio and now goinginto my forty third year in financial services.
Build a plan, Build a plan. Understand your plan, Understand your
decisions. Understand the reason why you'remaking those decisions. Understand the reason why

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your wife, your loved one,your husband, your significant other needs a
certain amount of money for wealth replacement. The child that has special needs,
a child that might have drug addiction, a child that is unable to manage
assets. Seventy to eighty trillion dollarswill pass over the next twenty to thirty

(39:07):
years, the largest transfer of wealthin mankind, seventy to eighty trillion dollars.
Most of that money, a lotof it, is going to be
passed on through a key document.It's called a beneficiary form, and most

(39:27):
people who pull it, they reallydon't even look at it. They got
mama on there, and they gotthe three kids. They've done basic planning
for trillions of dollars of wealth transfer. So today we talked about can you
get to the money fifty five Yes, rule of fifty five and section seventy

(39:52):
two T which is better for yourfamily and the withdrawals that you need.
Can't tell you that you need tocommit. We offer a complementary consultation.
We have five offices, soon tobe six. We have Syracuse, Oneana,
Aubany corporate headquarters is in Malta,Glen's Falls, and soon we'll have

(40:14):
a new office in Tampa, Florida. I'll be right back. You're a
partner for success. David kopikair WGWISE retirement planning specialists the Retirement Planning Group.
We understand that retirees face many importantdecisions that can affect their long term
financial success. Some of these decisionsrevolve around making investments that will help create

(40:35):
a hedge against outliving their assets,the impact of inflation, taxation, and
rising health care costs. Most ofour clients like the time, the desire,
or the experience to manage their owninvestment portfolios. We consider it to
be an honor and a privilege tohelp our clients make sound investment decisions though
contribute to a secure financial future forthem. Over ninety percent of our clients

(41:00):
or retirees with similar concerns. Weare in the best position to approach such
challenges with experience and skill give usa call today at five one eight five
aad zero one nine one nine fiveone eight five eight zero one nine one
nine, or rpg retire on theweb if you would like to hear more
information on navigating your way to retirementfrom Dave Kopek. Remember you can listen

(41:23):
to this show and past shows anytimein anywhere on the free iHeartRadio app,
or go to iHeart dot com andsearch for a retirement planning show. She
looks in the mirror and stares atthe wrinkles that weren't there yesterday. Thinks

(41:51):
of the young man that she almostmarried. What would you think? Give
me safer this way? She picksup her apron in little girl fashion as
something comes into her mind, slowlystarts dancing, remembering her girlhood and all

(42:13):
the boys she had waiting in suchcharre, the dreams of me, every
day house like you see every weytime of the day, and every day
housewife who gave up to the life. Follow me all right. I love

(42:39):
Blake Campbell. I love him.What great music, fantastic music. I've
only got about ten minutes eight seven, nine, ten nine. Here's my

(43:07):
secret weapon here. You know,we talk all the time about retirement income
distribution. Most of you will listento this show and do nothing. You'll
sit on your hands, you'll procrastinate, you won't motivate. Right, Eh,

(43:27):
I'll get to it tomorrow, maybenext week. And what happens.
Something happens. That's what happens.And the sad part of my business,
and it is very sad, isthat we lose people. People die unexpectedly.

(43:49):
And I know the ones that comeinto the retirement planning group are well
protected because I mandate that. Imandate that. That's our message to male
in female. If something should happento your husband or wife, we will
be there to work you through thedifficult times because there will be many.

(44:14):
And the main benefit of that,okay, the main benefit of that is
to allow the male, the female, the domestic partners, whatever it may
be, to go into the retirementyears and have peace of mind. Because
peace of mind, to me isnot staring at CNBC all day long and

(44:37):
looking at my statement every single day. That's a pretty boring retirement. So
there's three things that I'm going tofocus in on here that I think you
should all take to heart. Thefirst and foremost is the screaming monkeys out

(44:59):
there that know everything, okay,because most of them don't know you know
what. Okay, Monday morning quarterbacksthat have all the answers. I've seen
all of their portfolios. I've seenall the results. And you know stellar
this and Stellar that, and wedo this and we do that. It's
monkey business. It's screaming monkeys,okay. Peace of mind means that you

(45:22):
have baseline income, baseline, thatyou have a certain amount of your money
allocated in order for you to havepeace of mind. I don't care how
you do it. Ladder bond,portfolios, gigs, mygas, annuities,

(45:45):
go through the whole laundry list ofways that you can build guaranteed income streams,
social Security, one spouse has apension. We don't care how you
do it, but we want toshow you on the screen with our software
packaging money. This is where youare are. You're in a real good
spot. This is what your successrate is because we can show you what
we believe is your success rate,right, and we always like to be

(46:07):
somewhere around ninety five to one hundredpercent with your success rate right as far
as your distributions and where you wantto be at age seventy five, eighty
eighty five, ninety Now. I'malso a component of that is that it's
okay to spend a little that moneydown, especially if you've got a whole
hell of a lot of it right, and do the things that you've always

(46:30):
wanted to do, the cruises,the vacations, the things with the kids,
the trips to wherever Disney. BecauseI haven't been to one funeral yet
where I've had one of the kidscome up to me and say, Hey,
can I see my father or mymother's financial statement? Not one.

(46:53):
And I've never had anybody on theirdeathbed. And I've been a lot of
them that has said to me,Dave, how we do well? You
know what they say? I knowyou got me covered, Dave. I
know you got my back. Soflexibility, the ability to be tactical,

(47:16):
and because there's so much money outthere, folks and qualified assets most of
you. The third bullet point,you're top heavy. What do you mean
by that? You got way toomuch pretax, way too much. We
got people that come into the officethey got eighty to ninety percent of their

(47:37):
net worth in four oh and Kplans, iras, whatever it may be
that's all pre tax money. There'sways to navigate that tactically, strategically in
order to get those assets to thenext generation so they don't go to nursing
homes, which Luke Pirol just talkedabout in great detail before I came on

(47:57):
the air, and they go tothe kids because you don't want them to
go to the spouse. I loveyou planning because the spouse has got one
foot on a banana peel and isabout ready to go into a nursing home.
So that money is not going togo to your kids. There's no
legacy. What's the legacy. We'llkeep our fingers crossed that they don't stay
in the nursing home for an extendedperiod of time. So flexibility rule of

(48:24):
fifty five. Make sure you understandseventy two t how that works. Best
thing ever came out of Washington dC was called the roth Rot. Gives

(48:44):
you many more strategic ways to moveassets around without tax liabilities. Tax free
for you, tax three for yourkids. Yes, your kids are going
to have to take rm D.Who cares? It's what tax free?
Tax free is? Tax free?Is tax free you? Spouse? Kids?

(49:13):
And as they say, This iskind of corny. It's not what
you earn, it's what you keep. It's not what you plan to do,
it's what you do do. Don'tplan it and not implement it.
You got to plan it and implementit. Too many plans have been sitting
on people's desks. Yeah, Igot it. It's in the mail.
I'm sitting on my desk and it'scollecting dust. And they don't do anything,

(49:36):
and then they wonder why, youknow, things are a disaster.
I had a gentleman that came innot too long ago, goes, I
listen to your show all the time. Great, he's got money all over
God's creation. You know you gota problem. Yeah, I know.
I hear you every week. Youtell me I got a problem. I
said, what are you going todo about it? Well? I want
to go home and I want tothink about it. He won't come back.

(49:58):
He won't come back. Why won'the come back? Because he needs
to think about it. He needsto think about it until he doesn't do
anything, and then he's something's goingto happen, and then there's this nightmare
for his family and his kids becausethere's multiple death certificates. Money's going to
probably get gobbled up by either anursing home or taxes. And that's his
plan, the no plan plan.So I'm going to highlight a couple of

(50:22):
things I'm going to guide you towhat you should do. What you should
do is to pick up the damnphone and call our telephone number and say,
you know what, I listened toDave, and I know that my
spouse is gonna get upset. Butwe're coming in and we're gonna do it.
We're going to put a plan togetheras far as income, legacy,

(50:47):
acid protection, whatever it may be. Whatever it may be. A lot
of times when people come in,we say, you know what, You've
got a pretty good plan here.There's really nothing that we can do because
your financial advisor or your team thatyou're working with, we're going to grate
them in a there's other people thatcome in we say, you know what,

(51:10):
you got problems and we can help, So we'll go home and think
about it, right because we knowwhat you want to go home and think
about it, and we're going tocall you in about three or four days,
and then you need to either pullthe trigger or kick the can down
the road a little bit more soif you want to get ahold of us,
you can give us a call.Our telephone number at our corporate headquarters

(51:32):
in Malta is five one eight fiveEAT zero one nine one nine five one
eight five EAT zero one nine onenine. Check us out on the web
rpgretire dot com. Again, that'srpgretire dot com and also are five locations
Syracuse, Oneanna, Albany, Maltaand Glen's Falls. Be safe, have

(51:52):
a great week. This is DaveKopek. Thank you for listening to Retirement
Ready hosted buying Dave Kopek, wG wise retirement Planning Specialist. If you'd
like to talk with Dave or someoneof the Retirement Planning Group, call five
one e five EID zero one ninenine. That's five twenty five eight zero
one nine one nine during business hours, or visit RPG retire dot com.

(52:16):
The Retirement Planning Group has five convenientoffices located in Albany, Malta, Glens
Falls, Syracuse, and Oneana.Tune in again next week for retirement planning
strategies with Dave Kopek right here onWG wise Retirement Ready. The information or
services discussed on this show is forinformational purposes only and is not intended to

(52:39):
be personal financial advice. The investmentsand services offered by US may not be
suitable for all investors. If youhave any doubts as to the merits of
an investment, you should seek advicefrom an independent financial advisor.