Financial Safari, 9/24

The Financial Safari
Sunday, September 24th

Financial Safari, for September 24.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Imagine a time when. And the resources to do all those things you dreamed of without worrying. That's good a time and place where all your hard earned money or exclude you. Some government. Good. Tax free so. Call them capriati's. 36 again that's. 16 the rings. Information provided is for certain purposes only and does not constitute investment tax or legal advice information has been obtained from sources that are deemed to be rely. But Barack receiving weakness cannot be guaranteed either Peter. Including usage of information discussed always consult with a qualified investment legal or tax professional before taking any action. You get what you pay for but aren't you paying too much for what you're getting. Your local trusted coach Phil Capriati takes a look at that and more on today's financial safari. This is coach speak and if you've got questions on how to properly structured your assets until retirement income. You're in the right place and welcome to the financial safari. I'm consumers have a good Randall Redmond and joining me from the Austin area is our local trusted Kosher and friends built up real audio senior tax and insurance advisors POL's. Sleek. Philip is always a privilege. And elected dive right into this wonderful selection of email questions we have before it. First of all cleric in round rock has this question. Philip true I'd move much on our way away from a place that charges 2.5. Percent in fees. That seems high to me and I'm not sure how to tell upon getting my money's worth. Well Phil what you think well first of all. There's there's an old saying years ago you get what you pay for but sometimes you can overpay for what you get OK so lonely look at this type of thing. It sounds to me like cat clear you have a you have financial planner certified financial planner or at least an asset manager. He's doing what's called feed these planning. Normally fees are based on a range depending on how many assets you have this being managed so. I normally from. From zero a half a million dollars that he may be 2% to end at maybe for a half a 1000001 MIP one point eight depending on who's managing it and what type of managing. Your actually receiving so. When we do tactical asset management with folks which is the type of asset planning that we'd like to work with with our clients. As opposed to passive when your advisors putting a lot of work in your portfolio. And constantly moving you in and out of different asset classes because of what business or economic cycle we may be end and there were or working to save. EU market volatility. I can't really put today yet feeling that now I would say this 2.5 seems I'm demeaning we don't charge. That high and that fee but it also. You need to take a look at your asset manager and and take a look at maybe how many. How many dollars what is his assets under management what is he managing. How dangerous portfolio so on average Claire. And again this is here in our office on average. You look at and around one and a half percent for assets under management. And then again no commission products so we're strictly viewing fee based planning we're acting is a fiduciary. And setting up quite a comprehensive portfolio. For that type of annual management thing. And folks we can get a version general rule book very useful law idea from Philips response to cleric. And Claire had those sound like it's time to get today second opinion and Phil and his team offer you the opportunity to review your portfolio. So you can meet with Philip copper naughty and his team that's senior tax and insurance advisors to deter Armonk. How much risk you're taking on its deer or red flags that could mean problems. And how much you're paying in fees and commissions and how that stacks up. To your own particular goals and needs. Yeah I admire that Claire it's always good to get a second opinion we'd be happy to have Buick that. That definitely. And it's as Randall alluded to get a second opinion come on and we'll be glad take a look editorial no charge. Well there you have it clear you have a promotional limitation on Phil Kara we're gonna and the number has taken what one that is 800. 8511636. Colin that are part of convenient for you but do Colombia and Phillip has opened the door for you and this is a great opportunity. 808511636. Don't go your region is a hot. All of onto Gordon nor is. Both large Aaron Small we have an email from Michael in George dome. Michael says Phil has the over my own company what's the best way for me to be saving for retirement. And Michael good question. There are a number of different ways to save for retirement so normally you only set up for retirement income plan for a client or inferred business. We were with a lot of small businesses midsized businesses. What we like to do number one is run a year as Social Security. Benefits plan for you will wanna see what we get out Social Security. And the reason I like to do that we want to take a look at what's your projected tax rate is going to be based on Carrick tax rates. Then we can determine on. Again what your goal retirement income how much are we gonna get from Social Security because. 285%. Of sort of security income can be considered taxable income would it Karen tax code so we need to look at that most folks don't realize. That in many cases so security is gonna become taxable income if you have IRA 401K. Accounts. We work with clients that in many occasions that literally seven digit IRA accounts well these IRA accounts we have to start taking money out of them according to the higher asked all Erisa plans require us to take out. Required minimum distributions. At seventy and a half. This adds additional layer being count sometimes. PRD's can be 405060. I've had clients in the air where there are these are gonna started over a 100000 dollars a year. Now we're pushing up into that upper tax bracket so the key is let's take a look at what's your earning. How many years to retirement. And what type of retirement accounts that we have there are three separate types of and I call a different colors of money. You have tax deferred money this is money that are in that's in traditional IRAs 401 k.s. A fixed indexed annuities and annuity products whether they be variable or fixed. The next federal money is taxable investments. These would be bad investments that had that joint tenants in common these are. Investment she may have that you already paid taxes on and you only pay taxes on the earnings as you earn in each year you know that because you get a 1099 from your. From your managing firm or the administrator is. And then we have tax free money which is my very favorite kind of money tax free money comes in a form of Roth IRAs Roth 401 k.s. I US house that's indexed universal life income. To us tax free uniform policy loans. Many doctors attorneys many folks who have 401 k.s are concerned with. Matching up those 41 case. We'll look to these other types of products so coach in holes the best way for me to answer your question regarding the best way for you to save for retirement. Is to come in at. Let's sit down let's look at your individual situation. And see what type of account you already have. And how we want to project your retirement income and future. All in all I'm a firm believer in let's paid the taxes now let's take it out interest tax free income. Michael to take fill up on his invitation that number is 800. 851. 1636. And for Michael Liu and for every one that's 808511636. Phil you bring up so many interesting point especially in response to. Michael do business owners especially small business owners face special circumstances. In regard to their retirement. Will they do you have a number of different choices you can put together Roth 401K for instances is something relatively new you can do is set fiery depending on how many employees you have whether we're talking about led a year a single one or two or three employee. Firm William 125. Two one to fifty yards or over a hundred. So there are different types of qualified accounts. That you want to say and what I normally recommend is less used to tax code to save as much as possible while we can and while we're in our earning years because once we do reach a higher were going to be look at them for most of us entrepreneur orders we do not have defined pensions and when I say to find tensions I'm talking about tensions. Like a city worker county workers state worker federal government employee where they had pensions that may or may not have Cole has build and own self. In many cases we wanna create our own pension income. But we have Cindy ever so Cognos and all what type editing time because especially with this twenty trillion dollar debt we have blooming. Unfortunately. In our country many of us in the field and many of the accounts of CPAs are where with we believe taxes are going up and they're going to be going up for the taxpayers so it's extremely important now to begin as as said before economists and sending out tax free retirement income. So folks we're gonna pause replay. Phone will be right back. The war wolf great advice both feel accountability. And your favorite shows keep up with the latest breaking news and more anytime at top thirteen 78 dot com sock thirteen seventy. Right choice. Herewith village everybody who serves the Austin area as our local cluster cold. It is to be more available at 808511636. Or does 800. 8511636. Phil we were talking about. Various. Terms that we all need to know as we approach retirement. How about. In service distribution and how does that work and actually what is it for our listeners. Well there are two different sides of his service distributions and it's simply amazes me how much misinformation. And on information there are out there for folks that have been contributing to borrowing gays. And higher rates for decades. If you have a 41 K it Weathers and orphaned or non orphan and orphaned 401K. Is a 41 K with a company that you've left. Not knoller and her existing 41 K would be eight printing current employer in just about all circumstances. You're entitled to take what's called an in service distribution. A nine hardship distribution means that you can move money out of your 401K. Into a self managed or traditional IRA we have a professional money manager like myself for someone else to. Hopefully is a fiduciary TU. Actually offer you many other choices one of the disadvantages of 41 case is they have limited choices many of them. And I like to call to paint by numbers they have. Decent choices but they don't have a full range of two choices so you can do an end service non hardship withdraw that means you Donovan on ship. You just want to move money out of your 401K. So we can be self managed or managed by professional you need to be 59 and a half once you reach 59 and half. As long as your 401K it's fully vested normally after five years they are. You can move money out and into another qualified account absolutely tax free. Many folks believe that they have a tax consequence here the only time in tax consequence folks. Is when you live it directly in your own personal account so. We recommend in service not a hardship distributions now the other type of its service distribution would be a hardship distribution. If you need money for education and first time homeowner home buyer if you had medical problems medical expenses things and as we you you actually have a hardship. And you need to get your money out. Now you can do that and in many cases. You can even do it prior to 59 and a half without absorbing that 10%. Withdraw penalty. But it has to be a one of five different qualifying events and I'll be glad to review them would be if you. Caller commit or office so. Understand something folks you have a responsibility. To yourself. Understand if you being contributing to a 401K. You're not really sure you saw major downturns in 2008 you're not sure exactly what to do or how to manage it. Call our office come on in let's take a look at it only can show you how to execute and in service not archived distribution. So this money can be more professionally managed. And and again in a fiduciary. Can possibly as filled before we go today could you please share with our listeners exactly what they can take advantage of all believe you do have a special law for that they can grab on to. We do we have three open appointment consultations sponsor for this week for our listening audience. If you've been listening today and you have your question about your higher ranked 401K. Your Social Security. Concerns on whether you help working with a fiduciary or not or maybe you're managing your own money and you would just like a second opinion. Call our office peachy candy shall set up they consultation directly with me. And I'll be happy to share time and our expertise with you. To answer any questions you may have to help you have a more comprehensive. And successful retirement plan put in place. What a wonderful opportunity that's 808511636. There is nothing to lose. That's 800. Eight point one. 1636. Fill in the first segment we have opened our email back and we got some really interesting questions and here comes Gary of Cedar Park. Gary says fill unmet my wits in what might corn employer and I'm not sure how long knocking keep working for these both those. But I'm sixty years old. Yeah and I'm planning to work harder and a couple of viewers anyway so would it be foolish to just walk away now and how to wind no fall held one of monies to be okay well that's actually a couple questions as an at film. It really has and it's a very good question so here's how it works Gary this is how we set up a retirement. Income plan. First of all by now you need to have things in writing your plan should be in writing you should have a retirement income goal. He should have a state retirement income monthly golf acts in other words I wanna achieve I want to retire with 6000 amount their 5000 or 101000 a month depending on what you're spending needs are. You wanna make sure that debt and we use sophisticated software that simplifies the process for clients. So we wanna take a look at. What money's going to come out of 401K. IRA accounts or personal savings accounts I wanna take a look at do you have any pension from work or have you retired maybe you have eight. Maybe you have a pension from the military your baby your city your state pension that's source having town we wanna make sure we understand exactly what we can expect from Social Security if you're married Gary we wanna take a look at spousal benefit options for your wife to allow you to build delayed retirement credits that it so that you can retire. And say receive half their Social Security benefits on your wife's work record at 66 while you were his bills delayed retirement credits of a percent a year and for those of you folks who didn't understand what I just said. You should absolutely come to one of our workshops because it's very possible to collect a partial Social Security Bennett it once you reach full retirement age. Especially if you're married and then switch to a larger benefit later we go through this and indeed tail at our workshops in fact. As we mentioned earlier we had a couple coming up on October 13 and 27. But we won a structure getting back cheering come plan a plan because Gary you wanna make sure we understand that our income is not going to run out or we're not going to be dependent solely on Social Security. At 75. Or eighty or even 85. You know you have a 45%. Chance if you're married and at least one spouse will still be alive at nine beach that's according to the Social Security mortality table rates it was published that and I believe it was 20102011. Just about five or so years ago. So I'd like to put an income plan together. That takes my clients at age 100. Especially if we're dealing with a client that has a spouse. The other thing we need to look at areas we won needled Ted if you are married. What happens you Social Security benefit ended then to you or your spouse pre deceased. When we lose a spouse we lose a Social Security benefit now all we should be in writing in or should all be put into a retirement income plan. And will also should take into account number one inflation each year. And it should also take into account taxes so to answer your question I realize I went through a lot of information there to be more specific. You need to have a plan remember Gary those that plan. Plans succeed. So. If you've put together a plan if you're working with a financial advisors especially one that's a fiduciary. Has the financial responsibility each year best interest. What I would recommend is I would get a second opinion. On that plan. And I'd make sure that I have specific numbers specific income amounts and have it in writing if you do not have that done in writing Gary come into our office let us put retirement income plan together for you and then I can more accurately answer this question. About working with those as you so eloquently put it. Those bozos. You know sometimes that we Wear fur company we may not be happy with the environment that we're living in in our office. But sometimes we have to look forwards so the golden years or retirement. I wanna make sure their golden by having enough income through retirement as opposed to as my dad used to say cutting my nose up to spite my face. Once you retire chances are you're not going to go back to work unless. You had the opportunity maybe to start your company sells come running Gary let's give you some expert advice. And make sure that you have a proper retirement income plan that's been initiated five for. National and put in writing. Truly wise words fill it and it's scary to take fill up on his implication or you have to do is call 800. 85116. 36. You'll listening to the financial safari news next. It's. New York are several glass over when you hear financial turmoil and diversification. And well I think coach beach book have you been talking to financial aliens and we understand your concern in financial vocabulary can become financial jargon if it's not easy to understand talking so let's break it down and diversification means having assets and a variety of investments and more financial vehicles. And their vehicles that are worried for you depend on your own goals and needs. True diversification. Spreads out factors like growth safety risks and expenses in ways that serve you best. And that requires your research so Joseph going to let alone sit down with a financial coach will not only build deploy and for you but one personalized to your tolerance to market risk. And through your retirement goals yeah. We're. You're listening to the financial safari news next. It's. Need a reverse mortgage which has been available since the 1987. It is a special type of home loan for older homeowners 62 years or older that requires you know monthly mortgage payments from borrowers are still responsible for property taxes and homeowner's insurance for a while so until either receive a monthly payments from the issue with companies receive a lump sum or receive a line of credit. The rising loan balance can grow to be greater than the value of the home depending on its market value head of the homeowner decides to stay in the homes for many years. Some regulatory authorities such as the Consumer Financial Protection Bureau. Argued that reverse mortgages are complex products and go to call for consumers to understand. Especially a loyal misleading advertising. Low quality counseling and Briscoe fraud and other scarce. So before you decide to make use of a reverse mortgage you should sit down with a financial professionals to find out if this choice is right for you. It's time for another potential in this. All new fees or less than those months. Well that's a myth. Certainly there or annuities don't do that or a better option for most folks like variable annuities. But there are also a lot of good knew what he's a good serve as a crucial piece of jewelry tournament portfolio. Remember in the financial world there are good and bad investments Tillman both with your. Just better performance of specific tasks that you need them to do. Don't support for everyone's just like an annuity. Like no please avoid fit. Make sure you're getting a customized plan from New York local financial coach to avoid leaving things that don't call. A potential this. Fill our crack research team. Brought up on items that ties right into what you were discussing with gear or. In the Washington Post. Rodney Brooks brings up a recent survey by Bankrate dot com. And which 47%. Of retirees. Or very or somewhat worried. About our livings are savings does that sound about right. Boy it certainly is and primarily one of the main reasons. Is we don't put a plan together. Now we don't take a look at really specific numbers I won't we won't we actually sit down and I've done that literally thousands of these plans of the last ten years. And of course we work for the whole team of professionals here it senior tax and insurance advisors. What I find is that so many of our potential clients so many of the folks to commit to our office. Well we actually help them. Puts the her own retirement income plan together and quoted in writing not only are they so thankful but you can see it. You can see it in writing and you have a great idea just how long your money's going to last. Instead of guessing at it when it comes to retirement. We really don't wanna guests and our retirement income and you know it it reminds me of the story. I had a very good friend of mine his uncle right in 2008 was getting ready for his retirement cash and he was in a EF 401K plan. And it was 22 years from his retirement. And it was in a 401K plan that Los 45%. Because of that sub prime. Mortgage downturn debacle and who literally. He was retired from his company he had to retire with 45%. Or less certain to blend in and around that number less two of the assets that he was planning on. And one of the primary reasons is he really didn't have someone that was looking out for his best interest wasn't using tactical asset management her aura limiting loss ratios and in any way I'm appointed I'm trying to make here is this gentleman actually had to retire and work add. And I won't use the name because I don't rebounding free publicity. Will say one of the local large department stores and heat is still working there and now we have day in the week we had him over and I had an interview with them any said you know I would have never guessed in a million years that here I'd be seventy years old and I still have to go in and I have to work part time 20/20 five hours a week should because I wasn't paying attention to his manager my 401K. And I took that large hit so. What I would recommend for all of you folks especially if you're within that last five to ten years to retirement. You need to look at market volatility a lot of different variables go into this retirement income plan to make sure you put the plan together. Make sure it's with a qualified. Advisor that is safe to do she airy cheat you and your family's best interest. Door listeners you can anticipate trouble boy planning in advance and not by trying to react to a very. Nasty surprise like that gentleman had true. And the way to set up a sound financial plan is with a culture. That you trust and who is dedicated to ignore financial well being in the Austin Oreo. Our local trusted coach an advisor is still Capriati and its full team of professionals they're available at 800. 8511636. 800. 8511636. And still with a kind of anxiety that folks have about. Perhaps how living. There are saving a lot of folks resort to the Internet and tried dude do a lot of planning on their own which may be hap hazzard what are the dangers of using the Internet for financial search. Well you know with the Internet again you get some good advice on the Internet under good information that is really not qualified as far as I'm concerned that we all know that tell you have to be careful on the Internet because some of these so called research is has not been fact checked. Anyone can post anything on the Internet unfortunately. Ended too many people look at the Internet and they they they believe that because Sony Internet it's true. Always work within a fiduciary registered investment advisor or someone who is either a CPA. A certified financial planner and it's always good to have one on one contact. Had an office talk with someone face to face have a team of professionals working with you. You retire any time there's nothing to play teams with and leaving it to the expertise of someone on the Internet or someone you never met before. I recall that highly suspect myself I would until it you look at it this way folks you spent your entire life working seeding raising children. That you wanna spend a little time with your grandchildren don't you wanna spend a little quality time. Make your retirement years truly golden years by putting a comprehensive plan together with someone that you know someone that you trust someone that you can it. See and talk to eyeball to eyeball that's a service that we. Bring to our clients here as senior tax and insurance advisors and of course is for most of you have been listening to the program you realize that we have. You go on our website take a look at and I think we have 1819 folks who works here in our office but the point is not them the quantity it's quality. We have CPAs. We have attorneys that we that would do we have access to. We have every type of insurance professional from long term care to Medicaid planning to move to Medicare Advantage planning. Not only that even property casually so we take a look at it in not to mention assets under management which is extremely important and extremely crucial so you wanna work with a professional that's not one dimensional you wanna work with a professional that has a wide scope wide range of knowledge and expertise. That's my recommendation. To anyone is getting ready to retire. By the way Phil we have one more point here so you can share with the audience please that special invitation that you reserve just for the film. Yes folks I told my office manager candied opened up three spots for next weekend for consultations at no charge. You can commandment you need to call her make an appointment ahead of time. Our office runs like a doctor's office we see anywhere from eight to twelve clients a day. So we have folks coming in and out if you call candy. Teller that tell you heard us on the radio. This fine Sunday morning. Giver an idea what your interest is what you'd like to speak I speak to me about. I will be glad to me would you personally or also set up an appointment with though one of our trained professionals depending on what type of knowledge and expertise you're looking for. What a fantastic opportunity of folks to take advantage of it. All you have to do was call 808511636. Give Candela call at 800. 8511636. So folks we're gonna paused briefly. Both will be right back. For more great advice from bill accountability. We'll be right. You'll listening to the financial safari news next well. It's. In many ways a marriage is a financial enterprise and your bills to trade assets of management and records to keep track got under and in many marriages one partner handles all the money matters and this may work fine until that's for how stress is warning the surviving spouses especially vulnerable fifteen documents and information are hard to find or understand it's a great strategy would treat your pedal problems like keeping the financial loan which would be accessible to their loved ones in the time of loss you don't what is typical conversation get in the way of protecting your loved ones yeah. Catch up on the latest headlines at any time at times they're seen seventy dot com. Cone dot com or local financial coach indoor air or you go to fundamentals so followers don't call. Find your financial rolled out for the future by visiting financials so authorities dollar. Home. The question is. How do you know when did build upon mutual funds. Think it's. Okay great questions so without giving specific advice. Let's take a look at it. There are really two types of planning the ankle one nowadays and and it's becoming ever so clear more and more. Too many folks. Unfortunately there's not enough education out there. You can work would they pass an asset manager and in my professional opinion pass an asset management. Is buying let's say a mutual fund and you can hit you can just pick a funds from the above. And you know it it's seven. You have to look at the sequence of returns when did you buy it. Because I've seen some folks by mutual funds and then all of a sudden the market trots through the floor here they are stuck with this eight shared mutual fund it. They might have paid up front end down load or commission report. Five and a half percent or whatever it happens to be. And gather advisor doesn't want him to sell it because they're concerned and possibly. A funny and having legal repercussions. When we take a look at asset management we take a whole entirely. Different approach. We elected tactical asset management. I don't want to sell my client a commission financial product number one. I have to be at fiduciary make my client. I'm gonna make recommendations to my client then I would make to myself and my family. None of the financial products are trying to end loader back end loader or any type of load for. At manner we charge and assets feet yearly to men it's a client's account will use 101215. Different asset classes. The reason is we need to be able to move clients in and out of asset classes depending on where we are on the economic and business cycle extremely important. So what am I talking about basically. Let's assume we're seeing a collapse in the economy in many advisors and many specialists nowadays believe that we have some sort of a bubble growing with equities may be we do maybe -- out I don't claim to be able to read minds or predict the future but many experts in the area believe that because of the printing of money of governments and putting it into equities that we're seeing a bubble within equities now let's assume for a moment that that's true well. If for addict peak in that bubble during an economic cycle will have a trial we'll have a bottom. And then we'll have growth or expansion. And that will reach a peak and then we'll see a contraction or maneuvered back down to trot this is a normal economic cycle. You know one of the important things and one of the things that I've learned a long time ago is you can make money during every single cycle even a downturn city give an example. Folks still eat day consume alcohol and death and tobacco products from what we understand no matter what the cycle is so might the point that are trying to make is there's a time to be in these mutual funds into the equities there's a trying to beyond them there's a Thai and Indian bonds there's a time to be out of them there's a time to being commodities and precious metals and try to be out of them. Only eight I tactical asset manager can move you in and out of asset classes based on. Research based on proprietary algorithms and software that we used to make sure that your maximizing. And limit your down terror. Many folks who come to me and say fill. Wendy you know went to remove the need be asset into Treasury's cash or what are or what have you and what we tell them is each client actually geeks around risk tolerance but when you use tactical asset management many different assets classes. You when you're using technology to live in it in and out of different classes based on where we are we other words when you have a financial advisor that's paying attention daily to where you are you're less likely to experience these large losses. I'm not really big on mutual funds nowadays folks. We do offer them but I am very very big on it. Actually hands on using research using technology. And making sure we learn all downturns in every one of our clients' portfolios based on their risk tolerance so. Here's a vote for tactical asset management if you're unclear on what it is make an appointment come into our office will be happy to talk with you if you're an Internet individual go ahead and do your Google but basically it's a hands on approach to act an asset management. Phil is offering listeners aid no obligation absolutely free consultation. To take advantage of his fantastic invitation now. Just call Phil Capriati at 80851. 1636. There is nothing to lose sold act now while you're thinking about it that's 800. Eight point 11636. Or Phil thanks so much crawled a greater voice today travel wonderful week and we'll talk next arm. Randy you're welcome god bless you and your family and you folks out there and radio land have a beautiful week we out. We're here for you were a phone call away god bless you all. And thanks to everyone listening. We hope that you felt this hopeful that we'll look Wii U what again next week. Right here on the financial support. Yes currency array. Permission on this for the strip. This is only does not constitute investment tax relief funds information contained. Sources that are deemed to be reliable when the it's. We just cannot be guaranteed you don't hear Jay root forest guess while the usage of information discussed always consult with a qualified for us. What guarantees can easily financial strength and claims paying utility company. Individuals should thoroughly review the contract were specific details of the confidence of withdrawals from deferred annuities are still.