Wealth from Wisdom

This One Mistake Could Cost You Thousands of Dollars!

February 18, 2017
Wealth from Wisdom
This One Mistake Could Cost You Thousands of Dollars!
Chapters
Wealth from Wisdom
This One Mistake Could Cost You Thousands of Dollars!
Feb 18, 2017
Carson Wealth
Show Notes Transcript

After a 17 year break Ron Carson, Founder and CEO of the Carson Group, NY Times Best Seller and member of the Barron’s Hall of Fame is back on the air! Join us this week as Ron and his Co-Host Mark Lookabill discuss how you might be overpaying taxes in retirement!

Speaker 1:
0:00
Here's some legal Mumbo jumbo, the opinions voiced and wealth and wisdom with Ron Carson and for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. I'll indices are unmanaged. I may not be invested into directly. Investment involves risk including possible loss of principle. No strategy is your success or protects from loss. Past performance is no guarantee of future results. Securities offered through Cetera. Advisor Networks, LLC member fin Ra investment advisory services offered through Cwm LLC. A registered investment advisor is a terror advisor. Networks is under separate ownership from any other names.
Speaker 2:
0:30
this.market hit another all time. Check $10 billion in social security benefits. Go Reserve announced that they will raise interest rates, skyrocketing cost of healthcare and retirement could know this person in the world has turned 117 years old. Planning for retirement today is a whole new ball game. It's loaded with challenges, obstacles, and trap doors. You can do this and we can be your guy. Welcome to wealth from wisdom with Barron's hall of Fame Advisor. Ron Carson, straight forward and objective advice on how you could make your money go further and retirement. And now here's your host Ron Carson.
Speaker 3:
1:15
Okay.
Speaker 2:
1:18
I'm Ron Carson and I'm mark look of l and we welcome you to the first episode of wealth from wisdom radio. Really excited to be able to do this. Mark, you and I, this brings back memories. I mean I did radio for more than a decade, that ending in 2000 and you did it alongside of me in one form or another year actually doing the radio show or you'll fielding the phone calls and it was going to in the questions, the memories being as I say it, the phone boy, you know, and taking those calls in and, and now think fast forward almost two decades, you know, the technology development that we're seeing here in front of us and a and the opportunities that are presented. So I'm really excited to be a part of it. Yeah, I am as well. And you know, what was really different about that period is the financial services really wasn't changing.
Speaker 2:
2:04
It's a little bit like a soap opera that if you miss two or three years, you could catch up quickly. And you know, we had a general age, just a bull market moving higher and so really investors could do pretty well hit their goals and they didn't have to be really honed in a lot of the issues we're going to talk about and the wealth from wisdom radio. It's so important today. I don't think there's nearly as much room for error. Is there used to be? You've got to make more concise decisions. You gotta eliminate the friction. You've got to have a transparent relationship. You know, ultimately it's, it's, it's, it's not difficult, but you got to pay attention more than ever. So really my objective from wealth, from wisdom as we're going to talk about very specific things that can make a huge difference in the amount of wealth that you're going to have pickets and not just about the return, it's a bottle.
Speaker 2:
2:51
A lot of other things. And how a new book come out about a year ago, New York Times bestseller, the sustainable edge. We're also going to get a little bit into best practices, you know, for businesses because there's a lot of business owners out there and you know, wealth from wisdom isn't just about money, it's about, we talk about true wealth, all we have that money can't buy and death can't take away. And we really want you to come away with actionable ideas both on your money, but as well on your life that you can implement a with the confidence that it's gonna, it's going to give you a return on your time and make it worth your while to implement. And that exactly, I was, as I was preparing for this, that was the, those actionable items. So there's things that we actually need to do. Yes, it needs to be proactive.
Speaker 2:
3:35
So it's not a series of random decisions and then you just put it into your roof, your meal mirror, never to take up again. And I'd say most importantly, the transparency, having that communication back and forth with trusted advisors and that whole team around you, it's, it's just going to make incremental gains over a long period of time. So I'm starting, I'm in my 35th year into this profession and so I, I've never been more excited than I am today. You know, some of the new things that are going on, we're going to talk about, but we're gonna Focus in today. Uh, we're going to talk about retirement. One of the biggest and most expensive mistakes you could ever make in retirement is really overpaying taxes. We see this time and time again and at first time meetings with clients, you know, a lot of times we're focused on just fees, no fees, we agree or expand or make they matter.
Speaker 2:
4:29
Expenses matter, investment returns matter. Um, but sometimes you can, there's some traps if future shows we're going to talk about when you're just focusing on fees, what we can really happen. But back to this subject they don't realize is not having a strategy to withdrawal money from all those qualified account. Your Ira, the 401k can cost four more in taxes, penalties, fees, interest. Then they can even comprehend. Matter of fact, if you mess up, you know, on an RMD, the penalty is 50% of what you should have taken. And the IRS just isn't that forgiving. And so you've got to be, you really got to be on this and there's just no going back. I mean, you know, occasionally you can make an appeal and it's a process, but you've still got to pay the penalty and then see if the IRS is willing to work with you, not a position you want to be at.
Speaker 2:
5:20
Well, and I think when you look at these, you know, each one of these decisions, whether you're talking 401k deferral, IRA contributions, Roth airy, they shouldn't be made in a vacuum, a series of random independent decisions. They all have to be taken in context together. Also recognizing that some of the decisions you're making today, we were anticipating, you know, the framework and the rules and environment we're going to have to be in. But we don't know that for sure. So a lot of times when we're talking with clients, it's being able to have enough different choices. So you're not forcing yourself or pigeonholed, oh, this was the only choice I have. Yeah, I've got an alternative. My concern is people listen to the show right now are going to go, you don't give me the big stuff. I don't want to worry about these little things.
Speaker 2:
6:06
And my answer always is, hey, if you're going to do the little things, don't even worry about the big things. It's all the little things done exactly right. That make a huge difference in our lives. And that relates to wealth. It relates really to everything that we do and the way we opened this. I don't want people to be discouraged. There's huge tax advantages and adding to your IRA, your 401k really any retirement savings plan, it's a no brainer for the average working American to do so. And if you're not paying attention, there are a lot of trap doors. So you got to think about it. You gotta be, you gotta have a game plan. Like you said, we see a random series of decisions sometimes without, you know, all the substance put into the thought and you know, by overlooking just one simple thing, they could trigger an avalanche of taxes, penalties and fees, which you don't want to have happen.
Speaker 2:
6:54
Plus we see this, it impacts your social security benefit. It could trigger an investment search tax, like a trigger higher capital gains taxes. It can even trigger higher medicare premiums. And the bottom line is it could cost you a small fortune. So on today's show we're going to talk about how to avoid these retirement tax traps and some little known strategies that can help you save thousands of dollars in retirement so you can keep this money for yourself. Yeah, and I think again, back to making a solid decisions, knowing the overall framework and the goals just had this conversation with, with clients yesterday, she's getting ready to retire. He's got eight years to retirement. There's not a simple solution that they could see on, on an ad, on TV or read in the newspaper that applies to their situation. So it's being able to take a look at that total framework, that total plan of what needs to be doing a be done.
Speaker 2:
7:50
And then again, one of the biggest takeaways is here's the action items that we have. Some of it is up on the professionals that they utilize. Some of it's things that they have to do, but again, working as a team, you know, we saw that with, you know, what, uh, what, uh, uh, well-run team can do with the, with the Superbowl. Yes. Right. Yeah. That doesn't always guarantee success. Well, I have to come back in the third quarter, you know, and have a miracle in order to be able to stay retired because one of the things you don't want to do a, and I unfortunately it's starting to happen in America today, is, you know, we've got zero interest rates. Um, we have a fully valued market and so, you know, you, you're, and people have moved out of cds on traditional safe investments in order to stretch for return.
Speaker 2:
8:32
We see this happening a lot of times and retirement accounts because there's no taxable current taxable kit for making changes. So they incrementally taking on more risk, really important right now. It's a hug your risk benchmark, understand what your risk budget is a because you know, waking up and having more risk in your portfolio, uh, is not appropriate. And matter of fact, if you get the distributions, uh, you can really allow for that money to go a lot longer. And so you're not having to take additional risk and put that principle at risk. You know, and you talk about the r word risk. I mean, I think there's also that aspect and I'm not advocating taking on more risk, but again, it's the, uh, so many people want it, want the quick, simple, high level. Give me the big answer, right? As, as opposed to hugging, what's the appropriate risk benchmark is for their individual situation, their family situation, and recognizing that there's is probably different than their coworkers or their brothers or their neighbors and then all these decisions that have to go along with it.
Speaker 2:
9:33
When you're talking about retirement, minimizing the impact of taxes. Got To look at it on an individual level and not just do the simple, Oh, I'm retired or I'm getting close to retirement so therefore I need need to be more conservative or I'm young and I can be super aggressive. Yeah, I agree. I mean a lot of the old traditional ways of making decisions on how much force you to take a really out the window really needs to be outcome based planning. You know, what is your family index number? What are your goals, what are your objectives? Matter of factors, great research out financial engines, how to study. Vanguard had a study. We see, I've seen it in my practice for 35 years, is that by having an effective coordinated game plan, you can earn net of fees or up to 2.9% according to these studies.
Speaker 2:
10:18
And I don't know if it's too, I don't know if it's 2.9 but your behavior, how you react to the market, not making short term bad decisions is really going to drive, I believe wealth accumulation and not a lot of the things that people focus on. So on today's show we're going to talk a lot about, you know, having a team, having a game plan and make sure you're thinking about the right things or wealth enhancement group does that every day. CPAS, attorneys, a proactive team that's really making sure that you're out in front of this stuff. We're also a little bit about holding the right types of assets in an IRA 401k retirement plan. I mean, you know, you don't want to, you know, you want to have things that are, that would normally be Taxport generate a lot of income in there. You've got to tax protected account.
Speaker 2:
11:03
So it may be a little different than actual type sets that are held. So if you've saved 500,000 in an IRA or 401k, you know it's really not 500,000 because you have to pay taxes on that money, right? You get that? We all know that. Well, maybe not all of us, but sometimes people are surprised, but this is something that's going to shock you. Some people are going to pay through the nose in taxes and withdraw the money from their retirement account while a small savvy few will legally pay their fair share, which is maybe a lot less than what you're paying. You could potentially save thousands of dollars in taxes on your IRA 401k and keep this money for yourself. So what I'd like you to do if you have an IRA 401k or other retirement account of 100,000 be one of the first 10 callers, a schedule your initial analysis at (800) 998-2584 that's (800) 998-2584 (800) 998-2584 this analysis could help you save thousands of dollars, possibly more. So it'd be one of the first 10 callers at (800) 998-2584 it's your choice. Pay Their IRS or keep the money for yourself. That's what I prefer for u (800) 998-2584 today we're talking about a number of trap doors for your Ira, your 401k that could trigger an avalanche of needless taxes, penalties and fees coming up next, learn what they are and more strategies that can help you potentially save thousands of dollars
Speaker 3:
12:40
[inaudible]
Speaker 2:
12:50
easier. Ambassador of Kwan now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson.
Speaker 2:
13:06
Welcome back. I'm Ron Carson here with my cohost mark a and thanks for joining us today on wealth from wisdom. There are huge tax advantages to participate in an IRA, a 401k other retirement savings plans. It's really a no brainer for every working American contributing to these accounts is really super easy. And getting your mouth money out toes, just a totally different story. And if you're not paying attention, there's a number of trapdoors. It could easily wipe out these tax advantages. But in fact, if you overlook one simple thing, you potentially could trigger an avalanche of taxes, penalties, fees, like a cost you thousands of dollars. So coming up in this segment, we're going to talk about how you can avoid the retirement tax trap and more little known strategies that help you save thousands of dollars in retirement so you can keep this money for yourself. And Mark, you know, coming back to the planning, I mean one of the things is seems like a little thing, but a lot of times it's not being done is planning the timing of income, right?
Speaker 2:
14:10
I mean, when are you going to take the distribution? I mean there's so many different strategies that you can take. You could always, you have to make sure that you take out the minimum. That's why I call it the RMD, the minimum distribution. You can always take out more. And there's a lot of times, or wealth enhancement group says we need to bunch income into a period of time because of other things going on in the life. And it could make 10 15 a 20% difference and the amount of taxes you're actually going to pay. Well, no, that's why it's so crucial to be asking those questions and, and, and working cohesively thinking proactively. Because if we know ahead of time that maybe there's a life event, they're going to monetize a business or sell some ground, those types of things, maybe we need to bunch some of those distributions, higher distributions in those years that you're not because of the potential, you know, rates that are applied in those higher income or capital gains years.
Speaker 2:
15:04
So again, it's looking proactively, not just in the rear view mirror. Gotta be thinking ahead. You know. And the other thing I see too is that people will come in, we'll sit down and we'll be talking about it and they'll say, oh yeah, I've already given money. I took it out and I give him the money to my church and it's like, oh no, you know, you should have actually directed that. If you're going to give money, you can direct it directly out of your IRA. Another tax savings idea, it's a little one, and again it doesn't apply for everyone, but for a number of people if you already, if they're already have that in them that they're going to donate to charity qualified charity, it's just bypass themselves, have it go directly to charity. It's satisfies the distribution requirement, but it doesn't count towards income to them and just again, little bits of pieces that can make incremental differences over a long period of time.
Speaker 2:
15:52
You know, and the other mistake we'd see sometimes is a beneficiary designations where wasn't a lot of thought put into it. They simply leave it to their estate versus maybe children, children that can then have options to a spouse. Of course that can be rolled over. Sometimes rolling into the spouse isn't the best option. It may be some other strategies. I, and it's, it's a little bit like social security, I mean with social security planning and this is another, we're going to have a whole show dedicated to this is you know, the difference between the best optimize option and the worst. And by the way, there's software out there that we run to help clients figure this out. It can be several hundred thousand dollars and it's like my gosh and social security. And by the way, I was really surprised and we work with a variety of types of clients from people that have $100,000 that have tens of millions of dollars is just as important.
Speaker 2:
16:44
I've found that even the very wealthy wan optimizer, social security, you want to get the IRA distributions, right? That's why I pay you guys. I want to make sure I'm making the best decisions and you're helping me. So getting, getting these, you know, the income timing, right? Or going to a church stretch up since not being soppy. What that, you know, what's the game plan, how's this particular decision fit into the overall plan? Again, your life and wealth should not be a series of random decisions but a well coordinated game plan. It can change your circumstances change. You need to have a team that can advise you on that. Um, and so thinking about stretch options as well, you know, the difference in age of a beneficiary and how you may be able to stretch those distributions even longer. Well, and I think Ron, you brought, brought up the point, social security, we're going to spend a lot of time on that in a future segment or a future shows, but it's similar in the aspect of so many people want the simple solution.
Speaker 2:
17:40
You know, for social security, it's taken as soon as you can or deferred as late as you can. And for a lot of people, most people at least need to do the analysis. No, the plan, work with the professionals to figure out what's best for you. I say it and I just, when I say it, but it's really true. If we knew on social security or RMDS, you know how long we were going to live and to to maximize or optimize our choices. It'd be easy. You just crunched the numbers, do the math, but we don't know those things. So again, it's knowing what the rules are, knowing the different nuances and options that are available and then taking it back to what fits with their longterm goals and then get it implemented and be, as you said, knowing that things can change, but you have options to modify it going forward.
Speaker 2:
18:26
Yeah. Hey, by the way, something interesting, it sort of relates to this topic, but not directly, but when you think about money and how much time people spend about worrying about money, a friend of mine that I've known for a long time, doctor Dan Crosby, he does a lot of work in behavioral finance. And yesterday he was sharing with me, and I'll ask you to see if you can get this right. Um, what percentage of people that have 500,000 or $500,000 saved? What PR, what percentage of those worry that they're going to have enough money to retire on and had he didn't break it out by age. This simple question was if you have $500,000 what percentage of that those people actually spend worrying that you're going to have enough money for retirement? I'm going to take the easy chicken way out and say 50% it was 19% so I thought it was pretty low.
Speaker 2:
19:20
Yes, and then there was, I went to the other extreme people that had 10 million or more put away saved and one where they're in savings, stocks, whatever, and they liquid portfolio. What percentage of them worried they going to have enough money for retirement? Now I think I get where he's going with this. I'm going to say that number's much higher. [inaudible] 74 she was 33% but it's still shocked to me how low did, and I asked my kids last night and I has to genie and they got it right. They're like, yeah, I think the people I know that have the most money worry. And I got to thinking feather something here. So you know, you don't want Yo, when we, when clients come in and we say, Hey, you're our client, not your money, your money's a tool to help you get what you want out of life.
Speaker 2:
20:05
And you know, philosophically I see that maybe way too much that, that it's, you know, maybe the people don't have a lot that'll have nearly the, you know, the stress in their life thinking about it. And this stuff can be stress or focused on one segment of that. And that's why when you think about your team, whatever team you've assembled, you know what you should, what you should be looking for. And your request from them is, Hey, make the complex simple. I want to understand it. I want straight forward fees. How do you get paid? I want to see all the costs. I'm going to see everything. I want an effective game plan number two. So you know the complex simple, tell me exactly how I'm paying and what value I'm getting in my books. The saint of alleged, I talk about a value beyond a doubt.
Speaker 2:
20:52
Everybody in any business or interacting with, how's that right to get that? How am I going to get there? What's a simple effective game plan that I can understand? I can measure whether I'm actually there or not. And then finally advice on common language. Not a bunch of jargon. You know, I want to feel, I don't want to feel stupid and I don't want to be afraid to ask a dumb question, so please talk to me in a way I understand because if you're comfortable with that, you know people are focused on, you know, the, the lot of things, these things are important. But having confidence in a team is probably the most critical things is going to drive how successful you're going to be handling your wealth. Yeah. I think that's crucial run in terms of particularly the last part in terms of common language.
Speaker 2:
21:33
Because then that just opens up a greater opportunity for open dialogue discussion. They know what, what, what they're getting and the value that is there. And so it's when I have those questions, when I have those concerns or worries we can have, we can have a in depth but basic conversation and figure out, okay, what are the things we need to do to relieve those worries and fears we ask all the time, you know, we get constant feedback from our advisory councils. We actually have to hear, it's interesting at the, from a or traditional advisory council, which we've been doing for 25 years, our millennials, millennial advisory council, all female advisory council and we're getting one thing they all have in common, make it simple on understand what I'm paying Han paying for it, and they've driven really our value proposition and why we do what we do.
Speaker 2:
22:19
There are two questions that come up nearly every first time meeting and they are, have a saved enough to last as long as I do and can I maintain the same lifestyle in retirement? You know, you don't want to, you don't want to have more retirement than money or wealth. That can be a little bit uncomfortable on this show. We talk about a lot of things we're talking about social security, taxes, risk diversification, healthcare, medical expenses, and really, excuse me a lot more, but nothing will be as important as your ability to generate income in retirement. Understanding how to turn your savings and investment into an income workhorse will Trump everything else and it is possible even with interest rates at zero, a fully valued stock market generate income in retirement is more challenging today than ever before. Granted, but it's one of the areas we can really help you.
Speaker 2:
23:12
Let me prove to you how much we can help, how much further we can help your money and your retirement. Go with our five point retirement master plan. Your analysis will not cost you a dime, so there's nothing to lose. If you have saved 100,000 for retirement, be one of the first callers to schedule your initial analysis right now. (800) 998-2584 that's (800) 998-2584 contributing to your Ira, four o one k or other retirement account is easy, but getting the money out can be a different story. So coming up next we'll reveal how you can avoid the retirement tax trap that could needlessly costs you thousands of dollars.
Speaker 4:
24:08
Saving for retirement is a great start, but now what? What are you going to do with the money? Find out now on wealth from wisdom with Barron's hall of Fame Advisor Ron Carson. Welcome back.
Speaker 2:
24:23
I'm Ron Carson and thanks for joining us today with my cohost mark. Look, a bill wealth from wisdom. It's a show. We're going to talk about a lot of things, but primarily how to make your money work as hard for you is you work for it. And mark and I did a radio show together, uh, years ago. Uh, we took a 17 year break and there was so much to talk about. Things have changed so dramatically that you're going to hear us every single week. Bring you tips, not on how to get the most out of your life. True wealth, all that we have that money can't buy death can't take away, but how to maximize those decisions. So you're really do well today we're talking about the millions of baby boomers that are needlessly overpaying taxes to the IRS when they are withdrawing money from their IRA, their 401k or any of their retirement accounts.
Speaker 2:
25:09
And what you make that mistake, the damage is done and the IRS is not very forgiving and they normally will not unwind these mistakes. And if you've ever had an issue with the IRS, I mean even if you're right, it can take forever to get it resolved. For an ounce of prevention is worth a pound of cure when it comes to the IRS. And the crazy thing is it could so easily been avoided in the first place with a little bit of planning, you know, create that strategy so you can pay us few taxes as legally possible, not needlessly give your hard earned money away to the IRS. You know, so coming up in this segment, we're going to talk about how to avoid the retirement tax trap, a little limit on strategies to help you save thousands of dollars in retirement so you can keep all this money for yourself in a couple of them.
Speaker 2:
25:59
Mark. One is, and I continue to be surprised about how often they're existing when they're coming in their existing tax advisers. Not talking about the fact that especially where you have a lot of stock in a qualifier war 401k plan that you know, there's a way you can actually get that stock out, move it into an IRA, treat it as longterm capital gains tax and you actually have a basis in that equity. There's some very specific things that you need to do, but I mean we've seen, we've actually had clients save millions of dollars, you know, with, with that kind of strategy. And there's another strategy I know that you've talked to and been part of the, of our wealth enhancement group and actually executing as well. Yeah. And, and so any of these concepts we talk about is again, going back to being proactive, working with a team that helps you know what your goals are.
Speaker 2:
26:49
Because I think, and I don't want to be critical of tax preparers cause they provide a very valuable service, but so much of what they're doing is in the past they're overwhelmed. That's the other thing is know you're right, I'm not being critical at all because it's more of that then on a lot of time to think and plan, they're reacting. And by the way, by the time you're doing your taxes, April 15th, whatever you could have done is long gone, long gone. Yes. So you know, when we talked about either owning company stock within a 401k or certain types of investments that you can own within your Ira, that by IRS law rules, uh, portion of it does not count towards those RMDs that we've, we've discussed. So you exclude that and so many people say, well I know Uncle Sam's come and you're going to come after some of that when I reach 70 and a half.
Speaker 2:
27:40
You know, in some instances that can be delayed up to age 85. So again, it's going back not knowing all the nuances but working with a team to figure out what's best for you. And is it something I'm interested in? Is that something I should be doing and be thinking about ahead of time and not, oh gosh, I wish I could have done that when I get my, uh, my tax return that might prepare is already done for me and I'm just supposed to sign and pay the taxes. Well, this morning at our morning meeting, we have, you know, a longtime admirer, I guess let's loose, useless the radio show years ago, driving up from St Louis and you know, and, and our tax team is like, oh my God, there's God, there's a lot of hair here because there are certain things you shouldn't do too that can complicate it.
Speaker 2:
28:20
And like holding farm ground, you know, in your Ira and all the hoops that you have to jump through in order to do that. So we're talking about things you should do, but also there's a lot of things that you shouldn't do and you really have to be conscious of and that's why everybody is different. If your brother, your aunt, your friend did something, doesn't mean that is right for you. It's so individual. Every decision that you make. Coming back to Ron Carson family index and Marco lookup, Bill Family Index, I mean what is your objective? What is your goal? What's the outcomes? It's really in an environment where you need to be thinking about outcomes based planning so we can get the civic outcome and let's legally pay as little taxes as possible and that's where the planning advantage comes in. You know, studies show net of fees, you know, vanguard has one financial engines has one, you know, up to 2.9% by just getting these things right.
Speaker 2:
29:14
Estate Planning is another one. You know, we sit there and you know, I want a little higher return, a little less fee, but you can waste 50% or more just on inheritance and estate taxes because there wasn't some planning done on the front end. Well, and, and again, that's where particularly when you look at the longevity and we're going to get into that a little bit, uh, people are just living longer. And so the benefits of long term planning, proactive planning or even more beneficial because people are living longer, we need to be thinking further and further ahead. Um, you know, and you go back to, you know, your own family index or so much of his behavioral, what, how, where you're educated, you want to be educated by our parents or that was our life experiences. What worked well for them probably isn't going to work well for us.
Speaker 2:
30:02
So we need to be thinking ahead of time in terms of, okay, back to, okay, what's my plan, what are my goals and what are the things I need to do to give me the best chance to, uh, to achieve those goals. The other thing that we talk about, particularly on the tax side is a lot of times when we're making decisions, if you make a decision solely based upon tax, a lot of times that ends up being a a a poor decision if that's the sole reason you're doing something. Maybe the farm ground in the IRA as an example, but the crucial part is it can be a huge benefit as part of an overall game time. I saw an example where we had someone who had came in and had a bunch of money in retirement accounts, was paying a fortune out of non qualified assets for nursing home expenses and really not even final income tax return.
Speaker 2:
30:48
Well, they could have been taken all that money out of the retirement plan to offset that against that and, but you know, we're gonna if they ended up dying with all that money in there, it goes to their kids. So we needed a house, some aggressive tax planning, really accelerate that income into those expenses and you're really are getting that income out. You can take up to a certain amount. It's going to be effectively tax-free. You know, coming out of that IRA, little things down. Exactly right. You can have an astonishing impact on the world. 2016 is officially behind us and you're one year closer to retiring. Maybe you're retired and you're one more year, enter your retirement. But that really these kinds of questions and thoughts should serve as a wake up call. Have you made a resolution to get your financial ducks in a row?
Speaker 2:
31:34
If you made a resolution to get clarity about how and when you should retire, how much money can you comfortably take out? Don't overspend the money. You also don't want to get it over taxed. You know, setting that goal is great, but setting the goal alone is not enough. You need to take action. What gets measured gets done. Today's the first day of the rest of your life. Let's make the most of it. So I'm going to make it super easy for you right now with our five point retirement master plan. In our initial analysis, we'll prove to you just how it can make your money go further and retirement. Like how you can wring every nickel out of your social security benefits in retirement, how you can potentially pay fewer taxes and keep this money for yourself. How and when withdrawal the money from your IRA or four o oneK or other retirement accounts to minimize the potential taxes, penalties or potential fees, and how to protect yourself from the skyrocketing cost of healthcare and just so much more.
Speaker 2:
32:28
You know, planning isn't just about the retirement distributions, it's about everything. Total focus, total picture, total plan, but the focus is to make every dollar you've saved to maximize. If you have 100,000 or retirement, call us at (800) 998-2584 now this initial Alison analysis will not cost you a dime. (800) 998-2584 that's (800) 998-2584 well, some people will pay through the nose when they withdraw money from their Iras. 401Ks in retirement with a smart and savvy few will pay far less. The question is which one are you going to be coming up next? More strategies on how you could avoid the retirement tax trap and save potentially thousands of dollars.
Speaker 5:
33:20
He's a published author and he's been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. Welcome back. I'm running
Speaker 2:
33:34
Carson with my cohost mark. Look a bill and you're listening to the wealth from wisdom radio. It's our inaugural show. We were on the air for more than a decade. Uh, we quit in 2000. Just, you know, the errors are full. Everybody's saying the same stuff and we're really wanting to come back because there's a lot of new and interesting things to talk about. A matter of fact, um, you know, regulation, Department of Labor, Ria, A's are starting to take over the world and how they're committed to putting their clients' interests ahead of their own. It's just really an exciting time. So you're gonna hear a lot of things about planning, about life, about true wealth, all the, we have that money can't buy and death can't take away. But today we're focused on taxes and retirement accounts and it's possible you could pay fewer taxes on your IRA or 401k withdraw that money from these accounts for retirement.
Speaker 2:
34:26
And it's possible you could pay higher taxes on social security benefits, capital gains, and higher medicare premiums. The short answer is yes, you could pay higher, you could pay lower, but it's really about planning. So coming up in this segment, we're going to continue to talk about how to avoid these tax traps and a little known strategies to save you thousands of dollars so you can keep the money for yourself. And we're naming just a few. We could go on and on. This show could be a day long because there's just so many nuances, so many little things that you can do that can have such an impact. And we've talked about the stretch IRA, right? Many just within the stretch category. Many options on how you can effectively use that tool. Yeah, I mean the stretch and a lot of these, you know, all you gotta do is take a look at the how thick the IRS code is.
Speaker 2:
35:14
There's lots of nuances and so you really need to have that. Again, proactive planning, working with professionals, working with those experts that really do know the code, but also can bring it back to your own personal real life situation. Recognizing what your goals and objectives are to figure out, okay, is the stretch okay? If we want to do the stretch, what do we need to do to accomplish that? Because there's some really you in the weeds, minute details that need to be followed or you don't need to know. And let's come back to what we said. Make the complex simple. Yes, so go to your team whether it's Carson or another one and you have a right client bill of rights. I want the complex made simple. I went straight forward fees on effective game plan and give me advice and common language. I don't really need to know all the nuances I need to know, you know, and that you're optimizing my plan to reduce my taxes and stretch my income, maximizing income for me.
Speaker 2:
36:07
And then by the way, if there's anything left over for my beneficiary, springs us into the next strategy. Beneficiaries, big deal. Who is it? Is it a spouse? Is it children? Um, you know, are those kids all prepared to handle depending on how much money it is, what's their tax situation? Uh, the worst thing you can do is just have the estate. We see that all the time or no planning went into it at all. So you have to be really, really cognizant of that. You were talking about a little known strategy known as a cue, lack and, and what can be done. Again, just another little tool that doesn't make sense maybe for everyone, but at least something to explore that allows, uh, allows for portion of IRA assets to be excluded from that RMD calculation and, and also extend the time or at the age that you're required to take that money out.
Speaker 2:
36:55
So again, something to explore. Again, you need the experts that are thinking about those things, have that expertise and say, okay, this could work for Ron or this could work for mark. I may not work for everybody. Right? Yeah. So it's going through that. You know, Ron, you mentioned, uh, the beneficiaries. Uh, we spend a lot of time talking with people that, you know, when we meet with beneficiaries, let's say it's the kids and you know, we talk very, very briefly about behavior. But the amazing thing in terms of the planning that goes in and trying to help, you know, now a next generation of trying to pass along that legacy and what their goals are, what their behavior is because they're not their parents. They're different. And let's say you have three siblings. Everyone's situation is different. So again, being proactive and looking at what we need to be do, doing for each individual and bring up another interesting thought.
Speaker 2:
37:42
I mean, sometimes clients will say, run, I'm never going to spend any of this. Money is going to be for my kids. So maybe you start thinking about what their objective is bringing your kids in sooner. If you're comfortable with that, into the discussion, you know, money, wealth doesn't come with instructions. We don't think. I don't, we don't, we don't do a very good job and in colleges and certainly don't really teach it in high schools. You know, we're CFPS, we're committed to education. Um, which more was done but bring them into the fold sooner rather than later. I have three children and I've done this my whole life and I think they're really good and very responsible about handling money. So just some advice from someone who's, you know, been in the, been around for 35 years and I think I have really responsible kids.
Speaker 2:
38:23
We'll get them started sooner. Income timing's a big deal. I mean we talked about with clients that had came in, she had tire nursing home expenses really high, but then I have a bunch of money in a retirement account. Not taking anything out. Could have been taking you out essentially tax free charitable giving if you're going to give it to church anyways, you could have this directly paid from your retirement. And again, so that goes back to knowing the situation. And, and we frequently, particularly on the RMDS, I always find it interesting is when people say, I even have some clients that work directly with that. We'll say, oh well I kind of just save that money for December. And that's the money I use for gifting and sometimes the giftings to kids, right? Or grandkids. And that's absolutely okay. But sometimes it's, well that's what I'm going to do, um, for, for my church.
Speaker 2:
39:07
Well, you know what, there's things you can do. Have it go directly to the church, have it go directly to the school that reduces your tax, your tax liability, but they still get the benefit. The entity still gets the benefit and you still get the benefit of doing good work for others. That's so, that's so true. I mean it's, you know, the do good but maximize the tax of t and the positive impact for your company stock. A lot of people don't know this, but you can if the circumstances, right, you can take a distribution, you can roll it, you can have long term capital gains tax on it as a biggie can save millions of dollars in taxes if you call a Fi, you know you need to, and coming back to, we were talking about this is normally not something the CPA's are focused on.
Speaker 2:
39:51
They are up to their nose and eyes and ears and over their heads sometimes and work. There's just not enough of them for the demand. We have a complex tax system and it's not normally their area of expertise. The only looking at your history, um, they're just, you know, you need to do proactive planning. You need to have a team that's really focused on this and you have the right, you know, we have client bill of rights. One of the things that we eat, you should expect from your team and your wealth is, is making the complex simple, really understanding fees and expensive. What am I going to get? Can you add value beyond a doubt? My book a year old now. So your times bestseller is sustainable ag. Just one of the things I talk about, if you're interested in a copy when we're happy to send it to you can go to Amazon, uh, as well.
Speaker 2:
40:35
But really being proactive with this is so critical to making good decisions and we've seen people of modest incomes and means accumulating massive amount of wealth because they had a game plan. They have proper behavior and decisions they make as it relates to that wealth. If you could go back in time and revisit all the financial decisions you've ever made in the last 10 years, would you change any of those decisions? I can pretty much guarantee you'd change most of those decisions based on what you didn't know. Um, because you just don't know. You don't spend the time. It's not your area of expertise. And so often it's later in life when people actually get a team that works for them and it are within your, we'd reach. A lot of people think they can't afford a team with technology and the way things are operating today, you can really invest like the billionaires do with a wealth management firm like the Carson Group.
Speaker 2:
41:29
They say it takes nearly 10,000 hours to become an expert at something between managing career, raising a family, try to set aside some time to actually enjoy your life. You don't have an extra 10,000 hours to become the financial expert. But the good news, the good news is we have more than 10,000 hours under our belt. We have way more than 10,000 hours under their belt and we can help you avoid, I think potentially lots of mistakes and will help you maximize everything you can, but make decisions that are taking the complex, making it simple for you. And it's a five point master plan. There's no cost, there's no obligation, there's absolutely nothing to lose. And our first meeting, we'll show you how a few simple, smart strategies could help your money go further retirement, avoid. A lot of these trap polls are out there.
Speaker 2:
42:20
Um, and if you have 100,000 in their first 10 callers to schedule this initial analysis at one 809, nine eight two five, eight four p one of the first 10 callers schedule that initial analysis. That's (800) 998-2584 (800) 998-2584. Well, mark, thank you for being on the show today. Wealth from wisdom. It's great. If you like what you heard today, um, [inaudible] we have a lot of great things we're going to be talking about smaller of our shows. We're talking about Wall Street and all the ways there's conflicts, there's fees, there's costs or things that you don't know about. We're a tell wall. We're going to give it all to you. We're an advocate. We put your interests ahead of Wall Street's to help you make the best decisions you can for your wealth. Ron Carson, wealth from wisdom, radio
Speaker 6:
43:06
risks, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of Fame Advisor. Ron Carson.
Speaker 1:
43:19
Here's some legal Mumbo jumbo. The opinions voiced and wealth and wisdom with Ron Carson and for general information only and are not intended to provide specific advice and recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. I'll indices are unmanaged. I may not be invested into directly. Investment involves risk, including possible loss of principle. No strategy is your success or protects from loss. Past performance is no guarantee of future results. Securities offered through Cetera. Advisor Networks, LLC member fin Ra investment advisory services offered through Cwm LLC. A registered investment advisor is a terra advisor. Networks is under separate ownership from any other named entity shit from anyone.