How Will Taxes Change In Retirement?

Join David and Travis Shepherd of Shepherd Wealth Solutions inside the Financial Lab Saturday at 10am on WJBO Newsradio 1150 AM & 98.7 FM to get a better understanding of the financial issues you could face preparing for and in retirement!
Visit shepherdwealthsolutions.com or call [phone] to learn more!

Episode Transcript

(00:09):
Welcome to the show. We appreciateyou joining us here today for the Financial
Lab with David and Travis Shephard.My name is Jessica. Get more details
about the Father's Son team at Shepherdwell Solutions dot com. That are yet
we have team members available to takeyour call off the air. Two two
five four to six five one zerosix to five Again that's two two five
four six five one zero six five. Lots coming up on today's show,

(00:32):
howbell taxes change and retirement. Thenyou've saved for retirement, but now how
do you safely withdraw your money?That and much more before we get started,
guys, welcome, How you doingwell, Good morning, Jessica.
We're doing great, looking forward tothe summer, and congratulations about we have
a lot of tired parents out therewith this being the first week of school.

(00:53):
Yeah, you know, I keeptrying to pawn the kids off on
us. It's probably some tired grandparentsout there to you. Who's that You're
right about that one, that's right. Yeah, schools out for summer,
lots of folks busy, you know, getting those plans on the calendar and
planning these big vacations. If it'sanything like me. I've been to a
million different graduation parties for people inmy family the past couple of weeks.
So it's just been a really excitingtime. You know. It's true.

(01:15):
We got a really good look atwhat it's gonna be like in a few
years. And all the kids graduating, and Ava graduate, Eva got to
graduate kindergarten, then Molla graduated,and then he had Brodie in Sutton,
and he had Amelia. Those fivekids graduations and plus all the new high
school kids sending you all their graduations, right, and sending all this money,
yeah, just immediate family. It'snot even like friends and extended families.

(01:37):
So man, it's gonna be rough. And about eight years it was
Brodie. It feels like Christmas aroundhere all the money going out. Yeah,
it's fun though. Yeah, we'lltalk talking about sending out money left
and right. I mean a lotof us wonder am I going to be
doing the same in retirement or whenI'm retired? Can I afford to send
the grandkids, you know, onehundred dollars or whatever it is when they
graduate or for their birthday because incomebecomes a really heightened conversation because you know,

(02:00):
let's face it the paycheck stops,but the daily living, the lifestyle,
the wants, the needs, theunexpected, these things are happening every
single day for the next thirty fortyyears of that retirement. How do you
make sure that that money is goingto last as long as you do?
And that's the number one fear isrunning out of money. And I was
doing a little research before the showhere and it looks like about half,

(02:22):
actually more than half, fifty fourpercent of retirement savers they're now considering a
type of guaranteed lifetime income. Andthis is something that I know you guys
have been talking about and talking about, and I want you guys to expand
on the options of this lifetime incomewe have. You know, that's probably
one of our best tools in thetool chests when you say, Travis,
is how do we provide a sustainableguaranteed monthly income like us all scary check

(02:46):
are your pension. I mean,it's there every month, it's there on
a certain day of the month.You can count it, just like you
know time on o' clock. It'sjust gonna come in every month, I'm
certain, and I think that relievesa lot of people from worrying from the
market, you know, because here'sthis income coming in every month, it's
taking care of all these centrals.You know, all your bills and stuff

(03:07):
are paid, and you've got extramoney left over. Yeah, we use
it a lot to cover what wecall the income gap. Right. The
income gap real simply is take allyour expenses subtracted from your sources of income
like soul security, pension, rent, stuff like that, and if you've
got money left over, like let'ssay it's ten thousand dollars a year,
actually you need that's your income gap. You got to take your savings and
you got to find a way toturn your savings into a paycheck that's going

(03:28):
to cover that ten thousand dollars everyyear. And we use a lot of
different tools, but one of ourfavorite strategies is creating your own private pension.
Right. I mean, everybody likeseverybody has a pension, likes your
pension, right, But if youdon't have a pension, it's probably something
that you wish you did have,and that is something that we can create
inside the financial lab and we dothe income planning section of your lab.
We can actually run through different optionsof how to cover your income gap.

(03:51):
Do you want to cover it frommister market and some years it's up and
some years it's down, and youknow, you just have to take from
it. In the up years youcan take from it. But in the
down years you got to take two. That's that's kind of worrisome, right,
So we like to do is tocreate a private pension that covers that
didn't come gap every single year.You don't have to worry about it.
My favorite thing to do with thatplanning is to put a little you know,
cherry on top of the Sunday andthey're a little fun money or travel

(04:13):
into that. Right, you cancover that every year too, So every
year your big trip is covered,you don't have to worry about it.
You can just spend it. Infact, we just did a plan for
a new client and just on boardit last week week before last. Maybe
anyways, they have a plan thattheir idea is they want to go and
they want to do everything they cando and enjoy their money because they saw

(04:35):
their parents save up all their livesfor retirement and one of their I think
it was the mother got a stroke. Mom got a stroke at sixty three
day and it left her partially paralyzedfor a few years and they weren't able
to go out and do and thenshe recovered. She never got back to
where she was, but she didrecover more to can get out and do

(04:56):
a little bit more. Her mobilitycame back, but they didn't get to
do all the those things that areon their bucket list anymore because she lost
her mobility so early in retirement.And so they're like, look, we
don't want to wait around and seewhat happens because you don't know how your
health is going to be from oneday to the next, So we wouldn't
have a plan where we can goout and we can we can do these
big trips, these these big travelplans that we have and we can do
in our first ten years. Wewant to know it's okay to spend.

(05:19):
We want to know we can spendit and not have to worry about well
we have enough when we're done.Believe it or not, Jessica, we
do have to coach people and spendingmoney, yes, in retirement, because
they're so tired and don't think theygot enough. But it's a concern because
you're worried if I spend it today, Well I have enough tomorrow. What's
stressful too, man? People arewound up when they come in, you
know, they kind of we haveto unwind them a little bit and show

(05:40):
them how that income is sustainable andit's going to keep coming in and you
don't have to worry about the marketcrash and our dividends stopping, or a
rent or running off and not payingrent. I mean, this is what
do you call it? Mailbox moneyit's there every month. Then the mailbox
it's going to be there on thefifteenth or the twelfth or whatever day we
set it up. And passive incomeit's you don't actively have to pursue like

(06:00):
rent money. I'd like to getchecks every week myself personally. Yeah,
oh yeah, of course like that. I Mean the biggest thing about people
are so anxious about this was whyit's the number one fear of people run
out of money is because they don'tknow how much they can spend and whether
or not they can you know,depend upon that spending. Can I depend
on that paycheck coming in? Youknow? And most of the reason for
that as people number one don't havea plan, are number two they have

(06:21):
a plan on what they're going tospend I had a guy call us up
the other day and he said,hey, look, I currently work with
an advisor, and um, he'stelling me that I can keep pulling.
He's basically pulling eight and a halfpercent out of his account every year,
and his advisors telling me that Ican that I'll last the rest of my
life. What I said, okay, well, what's your How are you

(06:44):
investing your money? He's like,it's in mutual funds. I was like,
so your your retirements depending upon whatmister market, how it feels from
right, because mutual funds invested themarket that goes up and go down.
Yeah exactly. Yeah, yeah,you know, it goes up and it
goes down whichever way the wins blow. And that's such a way it's going
on. And he said, well, you know, I just don't understand
how you can tell me that thatit's gonna work like that. And so
he brought in the plane the planthe guy gave to mean and I really

(07:08):
couldn't understand either until I looked atit. And guess what I figured out
what he used an average ray returnof nine point two percent in order to
show this guy that he'd be ableto pull out that much every single year.
Well guess what, marguts don't movean averages, Well, they don't
move up every single year. Youhave years where it goes up and you
have years where it goes down.So using it as just a standard average

(07:28):
ray return, that's pie in thesky. That's that's not reality. Reality
is you're gonna have an average rayreturn with a standard deviation. What that
means is you're gonna average, youknow, like five percent every year.
However, you've got a standard deviationof five. That means some years are
gonna make ten and some years aregonna get zeros. You need to be
able to know that your return isgonna fluctuate. So this was a creation

(07:50):
in his own mind of nine percentor is this this historical? Probably not.
I don't even know. I don'teven the back testing one. It
did not work as far as howwe do it, so I don't even
know. But I mean, itdidn't pass the sniff test for the guy.
So you saved that guy though,Yeah, we definitely, we definitely
helped him out a pretty good butit came back in. And what's crazy
is he didn't even need that kindof withdrawal or that kind of rate of

(08:11):
return. It's just he could hecould pull out that much. So this
is what he was told. Sohe was I was like, well,
do you really need to spend that? He goes no. I was like,
what are you doing with the money? He goes, well, I
just pull it out and I putsomething too savings two. Yeah, you're
right. See anyways, it justyou know, it's unfortunately. These these

(08:31):
are things you run in and yousee some crazy stuff, but this is
just one of the ones that wasrecent. It just was a way too
big raid of withdrawal. It wasa weight and it was all based on
an average ray of return that it'sjust not realistic, you know. And
on top of that, we don'tlike using average rates of return in order
to your planning because things don't justgo up every single year. And I
don't know if you are out therelistening to this, but when you have

(08:52):
somebody walk you through a plan asan average rate of return, that means
it's gonna earn. Like let's sayyour average of return on your plan is
five percent. That means that youraccount that's in the stock market, it's
going to average five percent every singleyear, positive five percent year after a
year after year after year. Ithink you've all been alive long enough to
know what that ain't. How itgoes has something looked like that in the

(09:13):
last three years, goes up,must come down. But also something you
guys have pointed out before is thatthese income strategies we're talking about here for
guaranteed limetime income. They are protectedbecause when the market goes up, your
check goes up. When the marketgoes down, your check stays the same
exactly. So it's you know alittle bit of best of both worlds there.

(09:33):
That's right, And that's when itcomes to income planning fought out.
Your income plan should be boring.It should be the least sexy part of
your whole retirement package. Right.You know, I don't want that to
be super interesting and crazy and justunbelievably are stressful because I don't get a
check next month because David end stopped, or you know, I can't depend
on the income because it's not consistent. We want that sustainable income each and
every month. It should be boring. That's might just show up and do

(09:56):
it. It should be the BillBelichick of your portfolio, show up and
do its job stress free, right, there, that's how you do it.
Look if you've nobody's ever shown youhow to do that, or you're
sitting out there wondering, how doI make my how do I cover my
income gap? How do I takemy savings and turn into a paycheck that
I can depend on for the restof my life. Come into your financial
lab. The part of the financiallab would do your income planning. We'll

(10:18):
see exactly how to create that privatepension, that Bill Belichick type of paid
type of paycheck that's going to showup and do its job consistently, month
after month after month for the restof your life. Bill Belichick, is
that winning This coach right out there, isn't he He's pretty good. It's
pretty good. So you're saying,you know what, one of my favorite
sayings is from the Navy Seals,and it pays to be a winner.

(10:41):
It does. It does pay tobe a winner, and also pays to
come in for that financial lab andput together these conversations and talk about these
different strategies and tools that can giveyou that guaranteed income for life again.
Or you're protected when the market goesup, and you're protected when the market
goes down and This is all theconversation you have to have with the guys
one on one and the team.Because it's all customizable. They're going to

(11:01):
use your real numbers, your reallife numbers in this financial lab. Give
a call right now two two five, four to six five one zero six
five two two five four to sixfive one zero six five Again that website
Shepherd Wealth Solutions dot Com. Comingup next, the future of taxes and
your retirement. What does that looklike? We'll be right back. There's

(11:28):
a reason potato chips don't come ina clear bag. There's only eight chips
in this bag. That's why it'sonly two thirds fall. The rest is
air. It's a lot like openingup your four oh one k at retirement
when you get two thirds of itand the rest goes to Uncle Sam.
David and Travis Shepherd at Shepherd WealthSolutions can help their tax mapping process can
help forecast what your tax bill willbe in the future. That way,

(11:50):
you can build a strategy now topotentially decrease your tax bill in retirement.
In other words, more for youand less for Uncle Sam. Call today
for your complimentary retirement tax lab.Two two five, four, six,
five ten sixty five or online atShepherd Wealth Solutions dot com. Chet Uncle
Sam's greedy hands out of your retirement. Hey, hey, hey, hey,
you had enough with a complimentary taxlab from Shepherd Wealth Solutions two two

(12:13):
five four six five ten sixty five. Thanks for listening to the show.
For the next five callers, David, Travis and their team are going to
sit down with you personally and createa custom financial lab just for you,
Paul, right now two two fivefour six five ten sixty five. That's
two two five four six five tensixty five. Call today and find out

(12:37):
what David and Travis Shephard cook upfor your retirement with a customized financial lab
called two two five four six fiveten sixty five. Now let's get back
to the show. We appreciate youjoining us. Welcome back to the show.
My name is Jessica. Along signthe father and son team. Right
here David and Travis Shepherd of ShepherdWealth Solutions. The phone number two two

(12:58):
five four six five one zero sixto five again two two five four six
five one zero six five The websiteShepherd well Solutions dot com. A central
question when it comes to tax planningis whether someone will pay higher rates now
or in the future when they reallyneed the money. After all tax cuts
passed in twenty seventeen, you guysknow that the Trump tax code is due

(13:20):
to expire in twenty twenty six.So what kind of tools can you guys
recommend that's right for everyone? Youknow, this is one of the biggest
things that on our first appointment wesit down with someone. This is something
they don't think of, taxes.They'll start telling their goal of paying off
things and pulling a lot of moneyout to pay off the house, cars,
boats and everything, and then weask them about, well, are

(13:41):
you familiar with how much more intaxes you're gonna pay? So if you're
pulling at the three hundred thousand dollarsand you gotta pay fifty six thousand or
sixty two thousand and taxes, wellsuddenly you're gonna be a lot less money
in your projection of what you're goingto have working towards retirement. So,
yes, this is a problem problemfor a lot of people, and there
are a lot of tools out there. You know, we can suggest a

(14:03):
couple of them real quick. Howabout how about moving money out of your
tax trap, your IRA into aRoth Travis. That would be like number
one for most people when you think, yeah, I think that's usually the
most common as people are gonna gowith the Roth conversion. You know,
I hear a lot of people askme. I get asked all the time
about backdoor rowth th I raise,which blows my mind that everybody's talking about
backdoor row THI raise. Hear alot from like doctors and engineers, people

(14:28):
who have highly you know, highlycompensated, right, so they kind of
get phased out of the ROTH contributionlimits. Guess what, if you're listening,
I want you to write this downjust because your phase out of the
income limits on a ROTH IRA,that's a ROW, that's an ROTH contribution
outside of your employer sponsor plan thatyou are not phased out of participating inside
your four one K factor you canmax it out. Which is crazy because

(14:52):
every single person I talked to youabout this the second out time, I
was like, no, I've beentold I make too much money. I'm
like, great, let's just callyour four one K provider right now,
call the four one K provider.Guess a four one casees, No,
you can do it. Yeah,you can go ahead and put that money
and you're a you're all four Oone kme no problem, no factor.
But that's the one that people missall the time. It's really sad because
it's a lot of people who arehighly compensated. Guess what you can't do.

(15:13):
You can't go back and make upfor this. You can't go back
and say, oh, well,I didn't know that three years ago.
Otherwise I would have been doing it. And it's like it's like Jessica said,
too interest rates. I mean,we're in a lower tax bracket right
now, so it makes a lotof sense to look at that tool,
not just are you be in alower tax bracket. You're in a lower
tax bracket. And what are theydoing in DC right now? They're talking
about raising taxes, raising the deaths, they're raising the death seal, Right,

(15:33):
how are they going to pay forstuff? Tax taxes are going up?
I'm pretty sure our uncle Sam ain'tgot a second job. Yeah right,
yeah, that's for us to findthat's right. You'll you'll you'll be
entering the gig economy in order topay your tax bill. Yeah exactly,
you'd be doing that second and thirdjob because you got to pay for the
taxes. Somehow, some way,because Uncle Sam overspent. I mean,

(15:54):
anybody, like, if taxes goup by one percent, you were going
to save a ton of money byconversions. Now just by one percent in
twenty twenty five, they're gonna takeyour standard deduction and they're gonna cut it
in half. Right now, yourstandard deduction is probably around twenty four thousand
dollars. It's gonna go down totwelve. That means you're gonna have twelve

(16:14):
thousand more taxable dollars in twenty twentysix. Five out of your seven tax
tax rates will be increased. They'regonna go up your tax brackets, meaning
how much money you can get intothose tax rates. They're gonna get skinnier,
which means you're gonna push more moneyinto the higher rates. You've got
literally about a little over two anda half years to get prepped for this.

(16:37):
You have till the end of twentytwenty five. You need to drop
on those folks, you know.I'll give you an example. So I
was looking at this the other dayfor a client, and we were doing
the tax map in his lab andhe's like, look, I just you
know, I don't like paying taxes. I know I'm gonna pay a lot
of taxes, but I mean,how much more am I really gonna pay?
So I did the taxes for theguy in between beween him and his

(17:00):
kids. He's going to pay overthree point three million dollars in taxes over
his lifetime. If you was toconvert all of the two an I ray,
it would cost him just over amillion dollars. He's going to save
two million dollars by doing a conversion. Past him, I said, how
important is two million dollars are youare to your family? Think about that?

(17:25):
Right, He's going to pay athird less by converting. And that's
a big example. Apply that toyour math, to your numbers. What
could you do with an extra twothirds of money throughout your lifetime? I
could do a lot of things,But it's not my money, it's yours.
What do you want to do withthat money? And if you're out
there and your wonder if this worksfor you, if you should be thinking
about conversions, you should be findingtaxifishing or tax free tools to apply and

(17:48):
strategies to implement. Coming into yourlab, run the tax map and we'll
show you what we can save youin taxes. And what you can do
with that for yourself and for yourfamily. Yeah, I mean this could
really correct me if I'm wrong,David Travis. But I mean essentially make
or break your retirement, but alsoimprove your retirement greatly. If all of
a sudden you're being saved thousands ofdollars in taxes, that's more money in

(18:11):
your pocket, less than Uncle Sam's. How do you find out if this
is possible? Will you come infor that tax lab that we're talking about
here, And this goes for ifyou're close to retirement, if you're already
retired, no matter where you arein that road to retirement, this is
a great opportunity for you to mapout and find out the best way to
be tax efficient. Two two fivefour to six five one zero six five.
Again that's two two five four tosix five one zero six five.

(18:34):
Make sure you check out the websiteas well. Lots of group resources their
Shepherd Wealth Solutions dot com. Wetalked about this slow earlier, how you
guys have to almost remind people it'sokay to spend your money. While that's
because we've been conditioned right, save, save, save, save, save,
so saving for retirements one thing withdrawingmoney is a completely different story.

(18:55):
There was an article on the smartAsset financial website that talks about the four
worst stakes that people make and withdrawingfrom their accounts. So, guys,
tell me what you think of theseand how do you help determine the best
way to withdraw money. I saywe started with the most common, and
the most common one is soul security. Oh yeah, people ask that question
usually first, more than anything,and the problem is when you take it

(19:15):
too early. Yeah. Well,yeah, I mean I think I think
what it comes down to is mostpeople think, and I think this is
where you're going down. So it'sjust correct me if I'm wrong. But
most people think soul security is allabout how much money I'm gonna get a
month for however long I'm gonna live, And that's all they think about.
I'm gonna get, you know,a thousand dollars a month if I started
at sixty two versus I wait tillseventy and I get three thousand dollars a

(19:37):
month. Right, But I'm gonnadie in my eighties, so you know,
Well, the problem I was talkingabout it is when they want to
continue working, right, and theydraw Soule security and then they find out
too late. Oh my god,I gotta I'm losing fifty cents on a
dollar on this sole security payment becauseI'm making over well, you forgot some
five yeah, and you're getting whatyou're getting taxed too. Yeah. Right,
So you're the Soules Scity administration isgonna penology for making more than seventeen

(20:00):
thousand dollars a year in this.It might be awful, little seven,
whatever it is. There's a maximumyou can earn while you're drawing soul security
before your full retirement age, andyou're getting tax on top of it.
So there's two hits against you.And so my point in saying this earlier,
whether you wait till sixty two orseventy, most people just think it's
about how much you get paid.It's not. It's about how much you're

(20:21):
getting paid and how much of thatpayment are you getting to keep. That's
what the real question around soul securityis. So, if you're going to
keep working and you want to drawit early, you got a lot of
math built up against you. TheSoul Security administration is going to pop you
fifty cents on every dollar when yougo over it. You're also going to
pay taxes on that's whatever your taxbracket is, especially if you're working.
You know, if you're in atwenty two percent tax bracket, well not

(20:45):
only did you lose fifty cents onevery dollar, but those dollars you did
keep eighty five percent of it isgonna get tax at twenty two percent.
Wow, that's a lot of reallylike numbers. Full another, but just
let me put it like this.That's not that's that math is no boy,
Now that ain't good for you.Well you talk about of course,
you know, social security when youclaim it, if you're still working,
not working, you know, allthose are different types of scenarios. I
mean, we've talked before. There'sover like five hundred different ways to claim

(21:07):
social security, and it's different foreverybody. Everybody's different. The one thing
is that always shocks people is yes, it's going to be taxed. So
then folks soko, okay, welllet me leave social security Alan, what
about this four one K that I'vebeen contributing to for the past thirty years?
Can I withdraw from that? That'sthat's you're right, I mean that
that's your next thing. And Ithink the biggest thing in this is and

(21:29):
let's just share some things. Iguess is probably easier to do it this
way. Let's share some of theworst things we've seen people with do.
So. One of the worst thingsI know we saw somebody in the last
twenty four months is guy came in. He's got a pretty decent little dividend
portfolio, but he's coming up aboutfour to five thousand dollars short every year
from his dividends in order to meethis expenses. Well, guess what he's

(21:51):
been instructed to do. Sell offhis dividends. Yeah, sell off shares
of his dividend ping stocks in orderto make up for the shortfall. Wow,
le, Jessica, you don't Wedon't have to be rocket scientists for
this. What do you think isgonna happen the next year? You have
fewer shares, fewer shares, Yougot a fewer things to play with,
right, You got less dividend,fewer dollars coming in, which means you're
going to be even shorter, soyou have to sell more. So instead

(22:12):
of a compound rate of return whereyou're building your money, you essentially have
a compound decaying rate of return likehe's literally it's like plutonium. It's just
decaying. Every year. He's gotless and less income, and he's shorter
and shorter inside of his expenses.Great formula for a disaster right there.
It's a fast way to run outof money. Yes, it's very fast

(22:32):
way to round of money. Sowe do see that a lot. You
be surprised. This may sound like, oh, that would never happen to
me, or there's no way,Like we see this stuff all the time.
It's amazing what comes across our deskand across our tables. So yeah,
I would say, a drawn fromyour four oh one K. Understand
the tax rules if you're under fiftynine and a half, and you will
get a ten percent penalty in youpay the taxes on that. So if

(22:53):
you were going to draw fifty thousanddollars out, not only going to pay
the taxes in the fifty K,you also owe the eye rest five thousand
dollars on top of that. Yikes, that's expensive, Yeah, it is,
right now, there's ways you canget around that, you know,
if you're in that situation, there'sother avenues to take. You know,
seventy two t's come out for alot of people, and that's a structured
withdraw strategy. The IRS approves anddoesn't charge you the penalty. You'll still

(23:15):
owe the taxes, right, butthat's something you can figure out in the
lab when penalty on top of it, but you don't have ten percent penalty.
Yeah, so what was your taxes? You know, I would say,
here's one of my favorites. Allright, so we talk about taxes
all time. Here, tax ratesare historic lows. Conventional financial wisdom is
leave your IRA accounts alone until youhave to take your rm ds. Yeah,
that's essentially creating a tax time bombfor you. Why is that?

(23:37):
It's like pulling from your raw first. Yeah, it's like this. It's
like, Jessica, I want youto imagine you have a cavity. Okay,
Okay, it hurts, sure does. Go see the dentist, and
the dentist tells you what the billis to fix it, and you're like,
oh, that's expensive and it doesn'thurt that bad right now? So
I can what i'ma I'm wait wait, I'm wait till it gets real bad.
Yeah, I'm sixty two years oldand I'm gonna wait till i'm seventy

(23:57):
two in order to take your thiscavity. Well, when you get to
seventy two, Jessica, do youthink it's gonna be any less expensive?
Probably more expensive. Do you thinkit's going to hurt the whole time?
I bet it is. So yourtaxes are like cavities. You don't take
care of them now, they onlyget bigger, and they only get more
expensive, and they get worse.Point they get worse. So while taxes

(24:18):
are low, you should take careof that tax bill, right. You
actually want to do the inverse ofwhat's the conventional financial wisdom, which is
to put off drawing from your Iraise until you're forced to by the government.
If the government is forcing you todo something, it's usually in their
favor, not yours. So whiletax rates are low, you actually want
to look at drawing money out ofyour iraise, paying the taxes now.
Taxes are lower, and if you'reable to convert some of that money to

(24:41):
roth so you don't have to paytax on the money in the future.
But do it now because taxes arecheaper. Don't stress out out there,
Come on in, let's do thatfinancial lab We have a new slogan.
It's called getting retirement right, rI TE. What is that? What
are we talking about? Travis?Yeah, well, you want to get
retirement right. You know. Insideof the getting in right, there's there's
four parts. The first part isgetting your risk managed correctly right. You
want to protect your money now soyou can compound wealth later build an increasing

(25:04):
income. It's gonna last your lifetime, so once you can depend on you
can spend confidently. And then taxesstop overpaying in taxes. Pay less than
the irs, right. Every dollaryou pay less than taxes, that's a
dollar more in your pockets, likegiving yourself a pay race for the rest
of your life in retirement. Andfinally, get your estate taken care of.
Create an estate plan that's going toallow you to navigate the irs and

(25:26):
the court fees so that your lovedones are the charities you care about.
Is who gets the most out ofyour money when you're done using it.
Come in and get your retirement doneright. Perfect. That's what we talk
talking about. Get your retirement rightr TE. Risk and income taxes and
a state planning right, do itright. Come in and see us and

(25:47):
you can do all that at twotwo five, four six five one zero
six five more details Shepherd well Solutionsdot Com. The conversation continues, we'll
talk more about get your retirement rightIn just a few moments. We'll be
right back. Welcome to the show. He appreciate you joining us here today
for the Financial Lab with David andTravis Shepherd. My name is Jessica.

(26:08):
Get more details about the Father's Sonteam at Shepherd well Solutions dot com.
Bet or yet we have team membersavailable to take your call off the air.
Two two five four to six fiveone zero six five. Again,
that's two two five four to sixfive one zero six five. Lots coming
up on today's show. How willtaxes change? And retirement? Then you've

(26:29):
saved for retirement, but now howdo you safely withdraw your money? That
and much more before we get started, guys, welcome, How you doing
well? Good morning, Jessica.We're doing great, looking forward to the
summer, and congratulations about we havea lot of tired parents out there with
this being the first week of school. Yeah, you know, I keep
trying to pawn the kids off onease. It's probably some tired grandparents out

(26:51):
there to you. You're right aboutthat one, that's right. Yeah,
schools out for summer. Lots offolks are busy, you know, getting
those plans on the calendar and planningthese big vacations. If it's anything like
me, I've been to a milliondifferent graduation parties for people in my family
the past couple of weeks. Soit's just been a really exciting time.
You know. It's true. Wegot a really good look at what it's

(27:11):
gonna be like in a few years. And all the kids graduating, and
Ava graduate, Eva got to graduatekindergarten, then Molla graduated, and then
he had Brodie in Sutton, andhe had Amelia. There's five kids graduations
and plus all the new high schoolkids sending you all their graduations, right,
and sending out all this money,yeah, just immediate family. It's
not even like friends and extended families. So man, it's gonna be rough.

(27:33):
And about eight years, Brodie feelslike Christmas around here, all the
money going out. It's fun though. Yeah, we'll talk talking about sending
out money left and right. Imean, a lot of us wonder am
I going to be doing the samein retirement or when I'm retired, can
I afford to send the grandkids?You know, one hundred dollars or whatever
it is when they graduate or fortheir birthday, because income becomes a really
heightened conversation because you know, let'sface it, the paycheck stops, but

(27:56):
the daily living, the lifestyle,the once, the needs, the unexpected,
these things are happening every single dayfor the next thirty forty years of
that retirement. How do you makesure that that money is going to last
as long as you do? Andthat's the number one fear is running out
of money. And I was doinga little research before the show here and
it looks like about half, actuallymore than half, fifty four percent of

(28:18):
retirement savers they're now considering a typeof guaranteed lifetime income. And this is
something that I know you guys havebeen talking about and talking about, and
I want you guys to expand onthe options of this lifetime income we have.
You know, that's probably one ofour best tools in the tool chests
when you say, Travis, ishow do we provide a sustainable, guaranteed
monthly income like I saw scarity checkare your pension? I mean it's there

(28:41):
every month, it's there on acertain day of the month. You can
count it just like you know,time on o' clock. It's just gonna
come in every month on a certainand I think that relieves a lot of
people from worrying from the market,you know, because here's this income coming
in every month. It's taking careof all these essentials, all your bills
and stuff are paid, and yougot extra money left over. Yeah,

(29:03):
we use it a lot to coverwhat we call the income gap. Right.
The income gap real simply is takeall your expenses subtracted from your sources
of income like soul security, pension, rent, stuff like that, and
if you got money left over,like let's say it's ten thousand dollars a
year extra you need, that's yourincome gap. You got to take your
savings and you got to find away to turn your savings into a paycheck
that's going to cover that ten thousanddollars every year. And we use a

(29:26):
lot of different tools, but oneof our favorite strategies is create your own
private pension. Right. I mean, everybody likes everybody has a pension,
likes your pension, right, Butif you don't have a pension, it's
probably something that you wish you didhave, and that is something that we
can create inside the financial lab andwe do the income planning section of your
lab. We can actually run throughdifferent options of how to cover your income
gap? Do you want to coverit from mister market and some years it's

(29:47):
up and some years it's down,and you know, you just have to
take from it. In the upyears you can take from it, but
in the down years you got totake two's. That's the kind of worrisome,
right, So we like to doto create a private pension that covers
that income gap every single year.You don't have to wor about it.
My favorite thing to do with thatplanning is to put a little you know,
cherry on top of the Sunday andthey're a little fun money or travel

(30:07):
into that. Right, you cancover that every year too, So every
year your big trip is covered.You don't have to worry about it.
You can just spend it. Infact, we just did a plan for
a new client and just on boardand last week before last maybe anyways,
they have a plan that their ideais they want to go and they want
to do everything they can do andenjoy their money because they saw their parents

(30:30):
save up all their lives for retirementand one of their i think it was
the mother got a stroke. Momgot a stroke at sixty three and it
left her partially paralyzed for a fewyears, and they weren't able to go
out and do and then she recovered. She never got back to where she
was, but she did recover more. The can get out and do a
little bit more. Her mobility cameback, but they didn't get to do

(30:52):
all those things that were on theirbucket list anymore because she lost her mobility
so early in retirement. And sothey're like, look, we don't want
to wait around and see what happensbecause you don't know how your health is
going to be from one day tothe next. So we wouldn't have a
plan where we can go out andwe can we can do these big trips,
these these big travel plans that wehave and we can do in our
first ten years. We want toknow it's okay to spend they want.

(31:14):
We want to know we can spendit and not have to worry about well
we have enough when we're done.Believe it or not, Jessica, we
do have to coach people and spendingmoney and retirement because they're so tight they
don't think they got enough but it'sa concern because you're worried if I spend
it today, Well I have enoughtomorrow. What's stressful too? Man?
People are wound up when they comein, you know, they kind of
we have to unwind them a littlebit and show them how that income is
sustainable and it's going to keep comingin and you don't have to worry about

(31:37):
the market crashing, our dividends stopping, or a rent or running off and
not paying rent. I mean,this is what do you call it?
Mailbox money? It's it's there everymonth, then the mailbox it's going to
be there on the fifteenth or thetwelfth or whatever day we set it up.
And passive income and you don't activelyhave to pursue like rent money.
I'd like to get checks every weekmyself personally. Yeah, oh yeah,
of course I do like that.I Mean. The biggest thing about people

(32:00):
are so anxious about this. Thisis why it's the number one fear of
people run out of money, isbecause they don't know how much they can
spend and whether or not they canyou know, depend upon that spending.
Can I depend on that paycheck comingin? You know? And most of
the reason for that as people numberone don't have a plan, are number
two they have a plan on whatthey're gonna spend. Like I had a
guy call us up the other dayand he said, hey, look,

(32:22):
I currently work with an advisor,and um, he's telling me that I
can keep pulling. He's basically pullingeight and a half percent out of his
account every year, and his advisorstelling me that I can that I'll last
the rest of my life. WhatI said, Okay, well, what's
you How are you investing your money? He's like, it's in mutual funds.
I was like, so your youryour retirements depending on upon what mister

(32:45):
market. How it feels from right, because mutual funds invested the market that
goes up and down. Yeah exactly. Yeah, yeah, you know it
goes up and it goes down whicheverway the wins blow, and that's such
a way it's going. And hesaid, well, you know, I
just don't understand how you can tellme that that it's going to work like
that, And so he brought inthe plane the playing the guy gave to
mean and I really couldn't understand eitheruntil I looked at it, and guess
what I figured out. But Heused an average ray return of nine point

(33:07):
two percent in order to show thisguy that he'd be able to pull out
that much every single year. Well, guess what, Marcuts don't move an
averages, Well, he don't moveup every single year. You have years
where it goes up and you haveyears where it goes down. So using
it as just a standard average rayreturn, that's pie in the sky.
That's that's not reality. Reality isyou're gonna have an average ray return with

(33:28):
a standard deviation. What that meansis you're gonna average, you know,
like five percent every year. However, you've got a standard deviation of five.
That means some years are gonna maketen and some years are gonna get
zeros. You need to be ableto know that your return is gonna fluctuate.
So this was a creation in hisown mind of nine percent or is
this this historical? Probably not,I don't even know. I don't even

(33:50):
the back testing one. It didnot work as far as how we do
it, so I don't even know. But I mean, it didn't pass
the sniff test for the guy.So you saved that guy though, Yeah,
we definitely, we definitely up tohim out of pretty good but he
came back in and what's crazy ishe didn't even need that kind of withdrawal
or that kind of rate of return. It's just he could he could pull
out that much. So this iswhat he was told. So he was
I was like, well, doyou really need to spend that? He

(34:12):
goes no. I was like,what are you doing with the money?
He goes, well, I justpull it out and I put something into
savings. Yeah, you're right.See anyways, it just you know,
it's unfortunately. These these are things. You run in these things and you
see some crazy stuff, but thisis just one of the ones that was
recent and it just was a waytoo big rate of withdrawal, It was
a weight, it was all basedon an average ray of return that it's

(34:36):
just not realistic, you know.And on top of that, we don't
like using average rates of return inorder to your planning because things don't just
go up every single year. AndI don't know if you are out there
listening to this, but when youhave somebody walk you through a plan as
an average rate of return, thatmeans that it's gonna earn. Like let's
say your average of return on yourplan is five percent that means that your
account that's in the stock market,it's going to average five percent every single

(34:59):
year, positive five percent year aftera year after year after a year.
I think you've all been alive longenough to know what that ain't. How
it goes right? Has something lookedlike that in the last three years goes
up? Must come down. Butalso something you guys have pointed out before
is that these income strategies we're talkingabout here for guaranteed the limetime income.
They are protected because when the marketgoes up, your check goes up.

(35:20):
When the market goes down, yourcheck stays the same exactly. So it's
you know a little bit of bestof both worlds there. That's right,
And that's when it comes to incomeplaining. We fought out your income plans
should be boring. It should bethe least sexy part of your whole retirement
package, right. You know,I don't want that to be super interesting
and crazy and just unbelievably are stressfulbecause I don't get a check next month
because David end stopped, or youknow, I can't depend on the income

(35:44):
because it's not consistent. We wantthat sustainable income each and every month.
It might be boring. It's mightjust show up and do it. It
should be the Bill Belichick of yourportfolio, show up and do its job
stress free. Right there, that'show you do it. Look if you've
nobody's ever shown you how to dothat, or you're sitting out there wondering,
how do I make my how doI cover my income gap? How
do I take my savings and turninto a paycheck that I can depend on

(36:07):
for the rest of my life.Come into your financial lab. The part
of the financial lab would do yourincome planning. We'll see exactly how to
create that private pension, that BillBelichick type of paid, type of paycheck
that's going to show up and doits job consistently, month after a month
after month for the rest of yourlife. Bill Belichick. Is that winning
This coach right out there, isn'the? He's pretty good. It's pretty

(36:28):
good. So you're saying, youknow what, one of my favorite sayings
is from the Navy Seals, andit pays to be a winner. It
does. It does pay to bea winner, and also pays to come
in for that financial lab and puttogether these conversations and talk about these different
strategies and tools I can give youthat guaranteed income for life again where you're
protected when the market goes up andyou're protected when the market goes down.

(36:49):
And this is all the conversation youhave to have with the guys one on
one and the team, because it'sall customizable. They're going to use your
real numbers, your real life numbersin this financial lab. Give a call
right now two two five four sixfive one zero six five two two five
four six five one zero six fiveAgain that website, Shepherd wealth Solutions dot
Com. Coming up next, thefuture of taxes and your retirement. What

(37:14):
does that look like? We'll beright back. Welcome to Willie's Wings Hope
of a secret Sauce. I'll takea dozen wings. Oh, by the
way, I love that sauce.What's in it? Can't tell you?
I'm nine. It's a secret.While many financial advisers claim to have the
secret sauce, they don't. Infact, if their sauce is so good,
why are they keeping it a secret. David and Travis Shepherd, the

(37:37):
father and son team of Shepherd WealthSolutions, don't keep anything a secret.
They know there's much more to retirementplanning than stocks, bonds and mutual funds.
They'll develop a strategy designed specifically foryou. It's your own secret sauce
for retirement. Call Steve today attwo two five four six five ten sixty
five for your personal portfolio x raythat's two two five four six five ten

(38:00):
sixty five, or online at ShepherdWealth Solutions dot com. Mine you want
to know what's in the sauce.Absolutely tables of Herica. Really, we
appreciate you joining us. Welcome backto the show. My name is Jessica
alongside the father and son team righthere David and Travis Shepherd of Shepherd well

(38:21):
Solutions. The phone number two twofive four six five one zero six five
again two two five four six fiveone zero six five the website Shepherd well
Solutions dot com. A central questionwhen it comes to tax planning is whether
someone will pay higher rates now orin the future when they really need the
money. After all tax cuts passedin twenty seventeen, you guys know that

(38:43):
the Trump tax code is due toexpire in twenty twenty six. So what
kind of tools can you guys recommendthat's right for everyone? You know,
this is one of the biggest thingsthat on our first appointment we sit down
with someone, this is something theydon't think of taxes. They'll start telling
as their goal of off things andpulling a lot of money out to pay
off the house, cars, boatsand everything. And then we ask them

(39:05):
about, well are you are youfamiliar with how much more in taxes you're
gonna pay. So if you're pullingat the three hundred thousand dollars and you
got to pay fifty six thousand orsixty two thousand taxes, well suddenly you're
gonna be a lot less money inyour projection of what you're gonna have working
towards retirement. So, yes,this is a problem for a lot of
people, and there are a lotof tools out there. You know,

(39:27):
we can suggest a couple of themreal quick. How about how about moving
money out of your tax trap,your IRA into a Roth travis. That
would be like number one for mostpeople when you think, yeah, I
think that's usually the most common aspeople are gonna go with the Roth conversion.
You know, I hear a lotof people ask me. They get
asked all the time about backdoor rowfireraise, which blows my mind. And
everybody's talking about backdoor row fireraise.Hear a lot from like doctors and engineers.

(39:52):
People have highly you know, highlycompensated, right, so they kind
of get phased out of the ROTHcontribution limits. Guess what, if you're
listening, I want you to writethis down just because you're a phase out
of the income limits on a ROTHiray, that's a row, that's an
RATH contribution outside of your employer's sponsorplan. The you are not phased out
of participating. Inside your four oneK factor. You can max it out.

(40:15):
Which is crazy because every single personI talks to you about this the
second out time, I was like, no, I've been told I make
too much money. I'm like,great, let's just call your four one
K provider right now, call thefour one K provider. Guess with four
one casees, No, you cando it. Yeah, you can go
ahead and put that money. You'reall four O one k, no problem,
no factor. But that's the onethat people miss all the time.
It's really sad because it's a lotof people who are highly compensated. Guess

(40:36):
what you can't do. You can'tgo back and make up for this.
You can't go back and say,oh, well, I didn't know that
three years ago. Otherwise I wouldhave been doing it. And it's like
it's like Jessica said, too interestrates. I mean, we're in a
lower tax bracket right now, Soit makes a lot of sense to look
at that tool. Not just areyou in a lower tax bracket. You're
in a lower tax bracket. Andwhat are they doing in DC right now?
They're talking about raising taxes, raisingthe debts, they're raising the death

(40:57):
sealing, right, how are theygoing to pay for stuff? Tax tax
are going up. I'm pretty sureour uncle Sam ain't got a second job.
Yeah right, Yeah, that's ruin. That's right. You'll you'll be
entering the gig economy in order topay your tax bill. Yeah, exactly,
you'd be doing that second and thirdjob because you've got to pay for
the taxes somehow, some way,because uncle Sam overspent. I mean,

(41:19):
anybody like if taxes go up byone percent, you were going to save
a ton of money by doing conversions. Now just by one percent in twenty
twenty five, they're gonna take yourstandard deduction and they're gonna cut it in
half. Right now, your Stanarddeduction is probably around twenty four thousand dollars.
It's gonna go down to twelve.That means you're gonna have twelve thousand
more tax bill dollars in twenty twentysix. Five out of your seven tax

(41:44):
tax rates will be increased. They'regonna go up your tax brackets, meaning
how much money you can get intothose tax rates. They're gonna get skinnier,
which means you're gonna push more moneyinto the higher rates. You've got
literally about a little over two anda half years to get for this.
You have till the end of twentytwenty five. You need to drop on

(42:04):
those folks, you know. I'llgive you an example. So I was
looking at this the other day fora client and we were doing the tax
map in his lab and he waslike, look, I just you know,
I don't like paying taxes. Iknow I'm gonna pay a lot of
taxes, but I mean, howmuch more am I really going to pay?
So I did the taxes for theguy in between between him and his
kids, he's gonna pay over threepoint three million dollars in taxes over his

(42:29):
lifetime if he was to convert allof it too, and I ray it
would cost him just over a milliondollars. He's going to save two million
dollars by doing a conversion. Passedhim. I said, how important is
two million dollars are you are toyour family? Think about that? Right,
He's going to pay a third lessby converting. And that's a big

(42:52):
example. Apply that to your math, to your numbers. What could you
do with an extra two thirds ofmoney throughout your lifetime. I can do
a lot of things. But it'snot my money, it's yours. What
do you want to do with thatmoney? And if you're out there and
you're wonder if this works for you, if you should be thinking about conversions,
you should be finding tax efficient ortax free tools to apply and strategies

(43:13):
to implement. Coming into your lab, rure the tax map and we'll show
you what we can save you intaxes and what you can do with that
for yourself and for your family.Yeah, I mean this could really you
know, correct me if I'm wrong, David Travis, But I mean essentially
make or break your retirement, butalso improve your retirement greatly. If all
of a sudden you're being saved thousandsof dollars in taxes, it's more money

(43:34):
in your pocket, less than UncleSam's. How do you find out if
this is possible? Will you comein for that tax lab that we're talking
about here, And this goes forif you're close to retirement, if you're
already retired, no matter where youare in that road to retirement, this
is a great opportunity for you tomap out and find out the best way
to be tax efficient. Two twofive four to six five one zero six
five. Again that's two two fivefour to six five one zero six five.

(43:58):
Make sure you check out the webside as well. Lots of great
resources their Shepherd Wealth Solutions dot com. We talked about this slow earlier,
how you guys have to almost remindpeople it's okay to spend your money.
While that's because we've been conditioned right, save, save, save, save
save, So saving for retirements onething withdrawing money is a completely different story.
There was an article on the smartAsset financial website that talks about the

(44:22):
four worst mistakes that people make inwithdrawing from their accounts. So, guys,
tell me what you think of theseand how do you help determine the
best way to withdraw money. Isay we started with the most common and
the most common one is soul security. Oh yeah, people ask that question
usually first, more than anything,and the problem is when you take it
too early. Yeah, well,yeah, I mean I think I think

(44:43):
what it comes down to is mostpeople think, and I think this is
where you're going down. So it'sjust to correct me if I'm wrong.
But most people think soul security isall about how much money I'm gonna get
a month for however long I'm goingto live, and that's all they think
about. I'm gonna get, youknow, a thousand dollars a month if
I started at sixty two versus ifI wait till seventy and I get three
thousand dollars a month. Right,But I'm gonna die in my eighties,
so you know. Well, theproblem I was talking about it is when

(45:07):
they want to continue working, right, and they draw Soule security, and
then they find out too late.Oh my god, I gotta I'm losing
fifty cents on a dollar on thesole security payment because I'm making over.
Well, you forgot something, yeah, and you're getting what you're getting taxed
too. Yeah, right, soyou're the Soulescity administration is gonna penaloge you
for making more than seventeen thousand dollarsa year in this it might be awful
little bit seven whatever it is.There's a maximum you can earn while you're

(45:29):
drawing soul security before your full retirementage, and you're getting tax on top
of it. So there's two hitsagainst you. And so my point in
saying this earlier, whether you waittill sixty two or seventy, most people
just think it's about how much youget paid. It's not. It's about
how much you're getting paid and howmuch of that payment are you getting to
keep. That's what the real questionaround soul security is. So if you're

(45:51):
gonna keep working and you want todraw it early, you got a lot
of math built up against you.The Soule Security administration is gonna pop you
fifty cents on every dollar when yougo over it. You're also going to
pay taxes on that's whatever your taxbracket is, especially if you're working.
You know, if you're in atwenty two percent tax bracket, well,
not only did you lose fifty centson every dollar, but those dollars you
did keep eighty five percent of itis going to get tax at twenty two

(46:13):
percent. Wow, that's a lotof really numbers full another but just let
me put it like this. That'snot that's that math is no boy,
Now that ain't good for you.Well you talk about of course, you
know, social security when you claimit, if you're still working, not
working, you know, all thoseare different types of scenarios. I mean,
we've talked before. There's over likefive hundred different ways to claim social
security. And it's different for everymoney. Everybody's different. The one thing

(46:35):
is that always shocks people is yes, it's going to be taxed. So
then folks Coco, Okay, welllet me leave social security Alan, what
about this four on one K thatI've been contributing to for the past thirty
years. Can I withdraw from that? That's that's you're right, I mean
that that's your next thing. AndI think the biggest thing in this is
and let's just share some things.I guess is probably easier to do it
this way. Let's share some ofthe worst things we've seen people do.

(46:57):
So one of the worst things Iknow we saw somebody in the last twenty
four months is guy came in.He's got a pretty decent dividend portfolio,
but he's coming up about four tofive thousand dollars short every year from his
dividends in order to meet his expenses. Well, guess what he's been instructed
to do. Sell off his dividends. Yeah, sell off shares of his

(47:19):
dividend paying stocks in order to makeup for the shortfall. Wow, well,
Jessica, you don't. We don'thave to be rocket scientists for this.
What do you think is going tohappen the next year? You have
fewer shares, exact, fewer shares. You got a fewer things to play
with, right, You got lessdividends, fewer dollars coming in, which
means you're going to be even shorter, so you have to sell more.
So instead of a compound rate ofreturn where you're building your money, you
essentially have a compound decaying rate ofreturn. Like he's literally it's like plutonium.

(47:44):
It's just decaying. Every year.He's got less and less income,
and he's shorter and shorter inside ofhis expenses. Great formula for a disaster,
right there. It's a fast wayto run out of money. Yes,
it's very fast way to round ofmoney. So we do see that
a lot. You be surprised Thismay sound like, y oh, that
would never happen to me, orthere's no way, Like we see this
stuff all the time. It's amazingwhat comes across our desk and across our

(48:07):
tables. So yeah, I wouldsay a draw from your four oh one
K. Understand the tax rules.If you're under fifty nine and a half,
you will get a ten percent penaltyin you pay the taxes on that.
So if you were going to drawfifty thousand dollars out, not only
going to pay the taxes in thefifty K, you also owe the IRS
five thousand dollars on top of that. Yikes, that's expensive, Yeah,
it is, right Now, there'sways you can get around that, you

(48:29):
know, if you're in that situation, there's other avenues to take. You
know, seventy two t's come upfor a lot of people, and that's
a structure withdraw strategy. The IRSapproves and doesn't charge you the penalty.
You'll still owe the taxes, right, but that's something you can figure out
in the lab when penalty on topof but you don't have the ten percent
penalty. Yeah, so it lowersyour taxes, you know. I would
say, here's one of my favorites. All right, So we talk about
taxes all time here. Tax ratesare historic lows. Conventional financial wisdom is

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to leave your IRA accounts alone untilyou have to take your rm ds.
Yeah, that's essentially creating a taxtime bomb for you. Why is that?
It's like pulling from your raw first. Yeah, it's like this.
It's like, Jessica, I wantyou to imagine you have a cavity.
Okay, okay, it hurts,sure does. Go see the dentist,
and the dentist tells you what thebill is to fix it, and you're
like, oh, that's expensive andit doesn't hurt that bad right now,

(49:14):
Sack? And what I'm I'm waitwait, I'm wait till it gets real
bad. Yeah, I'm sixty twoyears old, and I'm gonna wait till
i'm seventy two in order to takecare of this cavity. Well, when
you get to seventy two, Jessica, do you think it's gonna be any
less expensive? Probably more expensive.Do you think it's gonna hurt the whole
time? I bet it is.So your taxes are like cavities. You
don't take care of them now,they only get bigger and they only get

(49:35):
more expensive and they get worse,they get worse. So while taxes are
low, you should take care ofthat tax bill, right. You actually
want to do the inverse of what'sthe conventional financial wisdom, which is to
put off drawing from your I raiseuntil you're forced to by the government.
If the government is forcing you todo something, it's usually in their favor,
not yours. So while tax ratesare low, you actually want to

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look at drawing money out of youriraise. Paying the tax is now.
Taxes are lower, and if you'reable to convert some of that money to
roth so you don't have to paytax on the money in the future.
But do it now because taxes arecheaper. Don't stress out out there,
Come on in, let's do thatfinancial lab We have a new slogan.
It's called Getting Retirement Right r TE. What is that? What are we
talking about, Travis? Yeah,Well, you want to get retirement right.

(50:17):
You know. Inside of the gettingin right, there's there's four parts.
The first part is getting your riskmanaged correctly. Right. You want
to protect your money now so youcan compound wealth later build an increasing income
that's gonna last your lifetime. Sothat you can depend on, you can
spend confidently, and then taxes stopover paying in taxes, pay less than
the irs. Right, every dollaryou pay less than taxes, that's a
dollar more in your pockets. Likegiving yourself a pay race for the rest

(50:39):
of your life in retirement. Andfinally, get your estate taken care of.
Create an estate plan that's going toallow you to navigate the irs and
the court fees so that your lovedones are The charities you care about is
who gets the most out of yourmoney when you're done using it. So
come in and get your retirement doneright. Perfect, that's what we tall
talking. Get to retirement right,RTE, risk and income taxes and estate

(51:06):
planning right, do it right.Come in and see us and you could
do all that at two two fivefour six five one zero six five More
details Shepherd well Solutions dot Com.As always will apparent from you and we
hope you have a great weekend.We'll see you next week. Thanks for
listening. Remember plan well to livewell. Travis Shepherd is an investment advisor

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representative of Retirement Wealth Advisors, Incorporated, an SEC registered investment advisors. Shepherd
Wealth Solutions, Retirement Wealth Advisors andw JBO are not affiliated. Exposure to
ideas and financial vehicles discuss should notbe considered financial advice or recommendation to buy
or sell any financial vehical. Thisinformation should not be considered tax or legal
advice. Individuals should consult with aprofessional specializing in the fields of tax,
legal accounting, or investments regarding theapplicability of this information for their situation.
Past performance is not a guarantee afuture results. Any comments regarding safe and

(51:47):
secure products and guaranteed income streams referonly to fixed insurance products. They could
not refer in any way to securitiesor investment advice free products, fixed insurance
and a newity product guarantees are subjectto the claims pangability of the issue in
company and are count offered by rWA