Retirement Milestones TPWM 11-27-21: Audio automatically transcribed by Sonix

Retirement Milestones TPWM 11-27-21: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
The following paid program is prerecorded and sponsored by Take Point Wealth Management on the Nature Coast of Florida. Take point on retirement, a well-rounded show from a well-rounded team leading you into retirement bliss and Saturday mornings for an hour of simple retirement advice from your friends at take point to wealth management. Just a little reminder there of what you're listening to. It's take point on retirement brought to you from a take point wealth management, nature coast offices, the serve you call them, they'll come to you. Education information is what it's all about. Fiduciary services and so much more true. Take point wealth management Give them a phone call. Now, if you're looking for somebody for your investments, your financial future, your retirement is important to Take Point Wealth management, and they're standing by to take your call and help you with that stress free retirement. (352) 616-0511 is the phone number (352) 616-0511, a local number along the Nature Coast. Check them out online. Take Point Wealth Management and in the studios once again. Erick Arnett, Lead Advisor, Retirement Planner, Randy Woodruff, CPA, the eight-point wealth management team.

Erick Arnett:
Good morning. Good morning to all our retirement warriors out there. Beautiful, whether it's still hanging on there, it's pretty nice getting some nice days out there

Randy Woodruff:
And I actually got some rain this week out where I live.

Erick Arnett:
Gosh, yeah. Fish are biting. That's good stuff. A show about retirement and wealth management. So we should probably talk about some of that stuff. Yeah, today's show. I want to go go over some things a little bit about the market, what we see there and what's going on with inflation and all that good stuff. We're talking about some retirement milestones, some ages that you need to be aware of, that are milestones in your lifetime when it comes to good retirement planning. Of course, always going to talk about taxes with our good friend here, Randy Woodruff, and some strategies that we feel very strongly about to potentially relieve some of that tax burden in the future. And we're not just talking about taxes and income taxes. We're talking about taxation on your Social Security, higher Medicare premiums. All this stuff is related, and that's why you want to come to a firm or a practice that has a top notch CPA. Sure. Who is right on it with me every, every step of the way. While we're reviewing your plans and reviewing your tax, how efficient is that having it all under one roof? That's good stuff. The real estate for lack of better terms, boom. I mean, the real estate market is pretty hot, so we've get a lot of questions every every week on you think it's a good time or bad time to go in real estate? How can I finance this? I'm looking to maybe buy some rental properties.

Erick Arnett:
How does this enter into my retirement picture as far as taxation? And then can I get it done with my IRA? So we're going to I want to talk a little bit about self-directed IRAs because it's been a popular topic and how we can show you here at take point wealth management, how to utilize your IRA or even your 401k to be able to purchase a business purchase, real estate, any type of tangible assets where the experts there we can sit, you down, we can go through all the rules or our rules and conditions, and you've got to be careful as to what you're doing. So you don't make any mistakes, but we want to help you through that to sit around, chat a little bit about that as well. And then we're going to get to our questions. We've got some great questions this week, folks calling in. Thank you to all our listeners out there. Response to the radio show has been overwhelming. We appreciate all the calls, appreciate the appointments, and we appreciate the trust that you show on us to build your retirement plan and and hopefully, more importantly, reach your successful retirement dreams and goals so we can create that tax efficient, be efficient, market efficient and that stress free retirement. That's what we aim for.

Randy Woodruff:
The stress free is definitely what we're aiming for for our clients, and that's what we wanted you to be able to enjoy.

Producer:
See, yeah, you can make it so easy there at Zero Point Wealth Management. I got to say I'm so excited about today's show taxes. We know inflation. We're starting to see it already. You're going to talk about taxes, of course, the 401Ks and how we need to take care of those if we have some old ones laying around or if we're involved in a 401k now. And it looks to me, I see in the news almost every day that they're going to attack those 401k plans. But the big thing that I'm looking forward to is counting down to our retirement because that's so important, especially starting to age 50. That's just incredible.

Erick Arnett:
Yeah, when you're young, you have plenty of milestones turning 10, turning double digits, then the Sweet Sixteen and then can drive and then twenty one, the big one like, hey, I can drink now legally, right? Because we know nobody out there will drink under 21.

Randy Woodruff:
Absolutely no fake ID,

Erick Arnett:
No fake IDs, please. But later on in life, we have to be very cognizant. So let's break down and lists and celebrate some of those.

Randy Woodruff:
Well, why is it? The milestones that are early in life are very exciting and the milestones that were,

Erick Arnett:
Yeah, well, most of them

Randy Woodruff:
Aren't as exciting.

Erick Arnett:
We're going to show you today and talk about most of these start when you when you turn 50 and it just depends on your outlook. You can either be like, Hey, I'm 50, my life is probably more than half over or, Hey, I'm 50. I've learned a lot. I'm smarter and now I'm ready to enjoy the second half of my life.

Randy Woodruff:
I don't think years are ahead.

Erick Arnett:
You're glad. Either half full or half empty, they're right, and I'll be honest with you. Some days my glasses full and other days it's not so full name in when that storm weather comes in that low pressure, I feel like I'm 80 years old. And but when we have days like this dryer, no humidity, I'm like, I feel like I'm twenty one years old, so I have those

Randy Woodruff:
Crazy, broken eight bones. No kidding. Yeah, eight bones. And so to your point, when the other pressures come in, it's like everything starts to snap, crackle and pop. And so, yeah, I feel a bit more so a

Erick Arnett:
Little market update. Unemployment numbers are coming out and also our inflationary data is coming out to show some big numbers. Unemployment is improving. Hiring is on. We just got to get people to go fill out. The applications actually show up to the appointments and their interviews. Just about everybody I know who's in business is looking for help and hiring. We've got to get people back to work and get out there, and that's going to help the economy tremendously, the markets. So let's talk about the market. How relates to retirement planning? If you're close to fifty five sixty sixty five seventy, you've got to look at things a little bit differently. Let's let's face it, you don't have a lot of time to make up from a potential correction or you don't want a big hit or a correction to your retirement plan. You've worked way too hard for that. You had a million dollar portfolio, 20 percent hit, which could happen pretty quickly, is $200000. That's a lot of money. Yes, it is. But we've got to look at ways that we can design your retirement plan and your portfolio to get you two and three retirement in the safest way possible. What the markets are really focused on, even getting more keen on it is CPI this inflationary number. That's really the reason why you've seen a lot of volatility at the top here. The market's kind of flat to down a little bit because waiting to see how is inflation really impacting us and what are those inflationary numbers we know the job market's going to improve. Unemployment came in for on recovery there until we really get a handle on truly understand what inflation is going to do. Temporary inflation based on the COVID effect or inflation that's more permanent, we're continuing to digest the data there and how it impacts your retirement and your assets.

Randy Woodruff:
We're going to talk about inflation is I think last year in Florida, we passed a constitutional amendment to increase minimum wage a $10 an hour. Maybe it's 11 and still go up a dollar a year until it gets to $15 an hour for minimum wage. So talking about inflation, you know that's going to drive up prices for everything you yeah. So figure minimum wage, that's going to basically they'll go up over 50 percent over the next five or six years. Yeah, that's a big, big deal. And so here in Hernando, we have an economy that's driven a lot on services and service industries. All those minimum wages go to $15 an hour. I say here in Hernando, the Nature Coast in general kind of have that population area or a like a macro economy that is different than, let's say, in Miami or Naples in terms of what things cost. So as you're listening to the show and thinking about the next several years, just be thinking about that, that you're going to be paying a little bit more to go to dinner, pay a little bit more for groceries, a bit more for gasoline, a little bit more for everything that you wind up buying going forward.

Erick Arnett:
Yeah, and that's why you have to put a plan together. So when we build our plan, we factor in three percent inflation, four percent inflation a year. We can factor in any number that we want to in our planning software to show you how is inflation going to impact your retirement, your cash flow over the long haul. So we're looking at 10, 20, 30 years when we're planning for your retirement and inflation is a big one. It's a silent killer. It's it's very concerning at this point. Hopefully it's temporary and things kind of turn the other way. But for now, I mean, raising your labor costs is probably not the right thing to do at this point. But I've talked to several business owners. I have a friend that owns a pizza restaurant and delivery. He's like, if they raise minimum wage to $15, I'm going to be charging like $40 for a pizza. It's like by the time he pays his insurance for the drivers and by the time he pays that 15 minimum wage and and all that stuff, you're going to be paying $40 for a cheese pizza.

Randy Woodruff:
And that trickles down from everywhere. So everybody that sells him all the ingredients for the pizzas, they're all paying more money. His landlord's going to charge more money for rent because everybody that the landlord deals with is charging more money. So the consumers where it's all going to trickle down to here again as we're talking about inflation, just just be ready. If you go to Dunkin Donuts and get a cup of coffee, it's going to go up 25 cents nickels and dimes everywhere, but it's going to add up by the end of the month.

Erick Arnett:
Yeah, and this is all a lagging effect. I was listening to Mr. Donald Trump. He's on FOX Business. He showed concern for the markets. He showed concern for inflation and actually made a pretty bold statement what I thought would maybe hit the market, but it didn't as much or at all, I guess, because he's not the sitting president. But he said he would not be an investor in the stock market at this time. But how does inflation impact your retirement, folks? In a lot of ways. One, it's in the components of your portfolio because if you're holding a lot of bonds in your portfolio, they're going. To be highly sensitive to inflation, rising interest rates, we'll be paying close attention to the Fed and what they're going to be looking at and whether they're going to continue to have a policy of easement or if they're going to start raising rates and move rates higher to kind of put a slowdown and maybe hopefully slow inflation down a little bit. We're not sure what's going to happen, so we're paying close attention for you. We'll have that information when it comes out. It's more important than ever to review your portfolio. You got to ask yourself through the year.

Erick Arnett:
Is the market going to go up another 10, 12 percent from here? I highly doubt it. I think we're going to be in a sideways pattern. And if we eke out eight, 10 percent for the year, I think that would be pretty outstanding. You've already got the upside, and that's why the market has no clear direction. It's kind of teetering here at the top, waiting for some kind of catalyst to push it forward, which there isn't at this point. So we're talking about safe strategies, what you can do with your money to safely put it in an investment or a plan that's going to give you unlimited upside if the markets continue to do well, but protect your principal 100 percent. I think at this point, that's a great strategy. It's also a great bond replacement tool because if interest rates start moving up, which they have to your bond portfolio is going to is going to go down. It's not a place to be in bonds right now, for sure. So we've got to get a little more creative and throw conventional wisdom out here. The next segment, let's dove into some of those numbers that are milestones to you and your retirement. Look forward to that

Producer:
And so much more on today's show. Once again, those retirement related milestones coming up next from our sponsor take point wealth management as a show called Take Point on retirement every Saturday at this time and only on this station. In the meantime, write down this number. You're going to need it. (352) 616-0511 The reason for that is to give them a call today that state coined wealth management for your free financial analysis evaluation consultation. Fifteen hundred dollars of value, folks. Yours free for our listeners today (352) 616-0511 This material is provided for informational purposes only and should not be construed as investment advice or an offer for solicitation to buy or sell securities. All data believed to be reliable but not guaranteed are responsible for reliance on this data. Some important information once again from our friends and take point wealth management always here to educate us, to take us back to school and lead us into that stress free retirement. That's what it's all about. By the way, there's a book called Stress Free Retirement. You can ask for that free book from your friends at Take Point Wealth Management, as well as Annuity 360. And of course, that book by Erick Arnett himself. What is your financial speed? You can request all those products in your free blueprint on retirement. That's that take point blueprint on retirement. Everyone's talking about $1500 value. You're as free or listening in on the program to day, but you're going to need the number to call (352) 616-0511. Or, of course, go online. There's a simple form to fill out on their website. TakePointWealth.com. Take Point wealth. Just throw it in the old search engine. It'll bring you there, too. Erick Arnett and Randy Woodruff take point on retirement the name of this show, and we're going to go into those retirement related milestones. Looking forward to it.

Erick Arnett:
Yeah, awesome. Our website is a great way, and it's exciting because people are starting to actually use it, which is exciting. We built this great website and you can actually just at the top right hand corner. There's two buttons financial workbook and set an appointment. You can just click on set an appointment. It's going to offer you a free consultation and retirement blueprint, and all you got to do is enter in a little bit of information. You can actually select an appointment right there instantly. It shares our calendar and you can just click on there and select whatever date and time you want that's available. We'll get on the phone with you and just do a quick 15 20 minute chat to see where you're at, where we think you need some help, or even where you think you might need some help. Life insurance, annuities, wealth management,

Randy Woodruff:
Long term care insurance,

Erick Arnett:
Estate planning, taxation, asset protection, real estate passing on things to your to your beneficiaries. So if you have any questions, folks, or an open book laid back, no one's going to try to sell you whatever it may be that you have questions on. I've been in the industry twenty two years right here in Hernando County for 20, and I don't know Randy. I don't know, 30 something years. Twenty seven, twenty seven years in the business. Twenty seven, twenty seven. Happy twenty seven.

Randy Woodruff:
Seven years for me.

Erick Arnett:
Wow. So I only do the math there. That's like fifty years of experience leverage for you folks. And all you gotta do is click a button and boom. We're there to answer your questions for you and the comfort of your own home.

Randy Woodruff:
I want to circle back to the end of the last segment. They were talking about bonds and a bond replacement strategy and and you made a comment, which is so true that now is not the time to be in bonds. And you're wondering why is it time to be in bonds if you haven't? If you tried to buy a house recently or you bought a house recently got your mortgage refinance, you probably realize that rates are at historic lows. Interest rates on a on a on a 15 or 30 year mortgage. And so you're probably wondering how can the bank make any money as interest rates being so low? Well, if you're a bondholder, guess what? You're the bank, you know, so you're the bank for the business that's borrowing that money, you should be asking. Yourself, you know, if I'm borrowing money to buy a new home at such low rates, why am I lending money to a business that's a low rate kind of giving people a way to think about the concepts we're talking about and prove to them that it is true to your point. Now's not the time to have bonds in your portfolio. And that's the reason why, because rates are just so low and they're going to have to go up.

Erick Arnett:
I can hear somebody out there thinking right now as they're driving in their car and they're thinking to themselves, Well, I don't have any bonds in my portfolio or my 401k and my IRA, but I'm going to venture to guess that you do, because if you have mutual funds in your 401K or IRA or portfolio, you probably do what you probably do. More than likely you have bond exposure in those mutual funds, which is going to cause quite a bit of a drag potential for principal loss. Also, there's a lot of reinvestment risk there. Even so, there's a lot of things hitting your bond portfolio, and it's just not a really a great time to be in. Bonds are extremely overvalued if interest rates move up and bonds lose value. All you need to know it's an inverse relationship, so we would love to talk to folks about a bond alternative for them in this time frame. So talking about those milestones, retirement milestones, the first one is turning

Randy Woodruff:
50, turning 50. The Big five.

Erick Arnett:
Oh, so what is 5th mean? It means ketchup, not the Heinz ketchup. Catch up, meaning that you can catch up on your retirement savings if you need to, so people 50 and older can actually contribute more to their 401ks or for all three b's each year. So that's important. I don't think a lot of people know about that. So you want to be maximizing that 401k those contributions there and getting the match from your company. If they do provide that, those 50 and older who contribute to an IRA or a Roth IRA can now throw an additional thousand dollars. So that's what we mean by catch up time. Once you're 50, they allow you to sock more money away. If you so choose and we can show you, does it make sense to beef up your 401k, or does it make sense to put a little in your four one K put a little in a Roth? Spread it out because we know that ROS in the future are going to be tax free. Your four one K will not be. So let us do that evaluation for you. If you're still working, I don't care if you've got another five years to work and you got a four one K, let's evaluate it for you and see if we can do any Roth conversion or if you need to maybe start contributing to a Roth instead of the 401K completely.

Erick Arnett:
The next one is turning the big five five fifty five. Normally, people have to pay a 10 percent federal penalty along with income taxes when they withdraw money from the retirement accounts before 59 and a half the penalty, but not the taxes disappear on the 401K and for three withdrawals. If you're 55 or older when you quit or get fired or retire, I hope you don't get fired. But sometimes getting fired is a good thing. This is a separation from service, so rules apply during or after you turn fifty five. So that's kind of a cool thing because I know back in the day you had to wait to 59 and a half. They kind of they they changed that law to where they're allowing people now at 55 to be able to start taking money from their IRAs. And we can show you how to do that.

Randy Woodruff:
Hsa catch up contributions as well. Boom, there you go. An extra thousand dollars put into your HSA plan, so let's keep that in mind. So, yeah, yeah,

Erick Arnett:
Very important

Randy Woodruff:
Thing about an HSA plan. I have one myself is you can put whatever the maximum in is every year, take a tax deduction for the amount that you put in, even if you don't spend all the money on health care costs that year. So it allows you, you to continue to accumulate money inside that HSA plan, especially if you're younger or highly recommend starting an HSA plan as soon as you possibly can. You have to have a high deductible insurance plan to be able to do that as we all age. Generally speaking, our health care costs go up. So if you had been putting money away for four years, when you do get to retirement or get older in life, you have a lot more money saved up and then you can you take taking the tax deduction every year for the money. You put that money into the HSA plan. As long as you pull the money out and spend it on health care costs, it comes out tax free, right way to get a tax deduction. And here again at fifty five catch up. That's pretty

Erick Arnett:
Powerful here. So if you're a couple, you can contribute up to seventy two hundred a year. But if you're 55 and older, you can each do an additional thousand. That's good. What does that do exactly? So I get this question all the time and you answer it pretty well, but I kind of fumble on it because you're the tax man. People ask me if I do this HSA account and I get the eighty two hundred dollars contribution in there, which is a deduction. How much am I really going to save on my taxes?

Randy Woodruff:
Great question. So it depends upon your marginal tax bracket. Okay, the tax brackets are what the IRS calls them progressive. We call them oppressive because the more you make, the more you pay. But there are seven different tax brackets, and so as your income increases, you keep jumping up into higher and higher tax brackets. Now, as your income goes up, you still get the benefit of the lower tax brackets. So let's say you've got somebody married couple making a quarter million dollars a year in income, you know, part of their income. Taxed at 10 part at 12, part of twenty two and part of twenty four percent, just because you're in that tax bracket, let's say you're making a quarter million dollars and you moved into that twenty four percent bracket. Not all of your income is taxed at twenty four percent. So if you were making a million dollars in, you're married and you're 55 and younger, you can put seventy one or seventy two hundred dollars into the HSA plan and that comes right off right off your income. And you can do that every year when you pull the money out. As long as it spent on health care related costs, it's not taxable.

Erick Arnett:
Gotcha. I'm going to put you on the spot here.

Randy Woodruff:
Absolutely.

Erick Arnett:
You don't even know what's coming right now. I don't. So get ready. So if our listeners are out there and taxes are so complicated, I'm an investment advisor retirement plan for like twenty two years and it's confusing to me. And so I can't imagine how it is for folks out there listening in more times than not. When people bring in stuff, we tell them to bring in two years tax returns. I have you review them with me. I'm telling you, folks, it's like ninety nine percent of the time you find some something that's been missed, even if you're going to another professional tax firm, I won't name any names out there. They've got tax enrolled agents or even just people popping in the data. One guy told me, Wow, it's so cool. You know, they got my tax return done in like an hour. And I thought to myself, Well, yeah, but was it done right? That's what I was thinking in the back of my head. Would you potentially maybe for our listeners, offer them a free tax evaluation on what they're doing?

Randy Woodruff:
Absolutely. Ok, yeah, we we usually have a free consultation.

Erick Arnett:
You couldn't say no anyway. Yeah, exactly.

Randy Woodruff:
I'm on the spot, so I there on the spot, I'm going to say, Yeah, see what I do for your folks.

Erick Arnett:
I just put on a spot.

Randy Woodruff:
So you know, we can take a look at a couple of years of tax returns. And you're right, you know, we do find white off situations in the past where especially I like to get two or even three years. But I did find one when one year in particular, where someone had some large capital losses and they had moved here to to Florida from a northern state, they had some six figures of capital losses they were carrying forward on their tax return. And if I would not have got that third year back, I would not have seen that one hundred plus thousand dollars of capital losses because of the firm that did their tax returns their first two years here in Florida miss that had no record of it. They didn't pick it up. So if I would not have looked back at three years and I was able to go back, pick it up, amend the two years that were done by somebody else and saved in the $100000 in losses led them to carry it forward. So we always ask everybody to give us two or three years. It can be a hassle to go, dig up tax returns and bring them in. But we do find some things that are missed quite often.

Erick Arnett:
And then what's most impactful for our listeners in retirement warriors is how are those potential mistakes or things that are being done creating issues for our retirees with higher taxation on their Social Security, maybe higher Medicare premiums. But do I take my Social Security now? Do I wait? Does my husband take it? Do I defer it? Or do I take and have him file and suspend? We need to be able to look at that as well, because it's going to be hugely impactful long term on those numbers.

Randy Woodruff:
One of the things that we meet with clients you, Erik and I meet with clients, is that especially when we're talking about some big events you're going to have this year, we're going to do some portfolio reallocation, or maybe they've got some real estate that they want to sell. It's got some is going to cost some capital gains, but for a good reason, it's time to maybe time to sell, you know, that particular asset or that particular asset class. So and one thing to keep in mind is sometimes when you have a big spike in income, if your Social Security has not been taxable or maybe just slightly taxable, it may be up to eighty five percent taxable. And also depending upon how much your income is that year, it could have an impact on how much you pay in Medicare for the following year. So you may have as a surprise, you may be used to get that same check every month, especially when it comes to raising your Medicare costs for a year. Maybe comfortable or used to getting that Social Security check deposited in your account every month. All of a sudden, because you had a good year, one year now it's two or three less that way for a whole year. So just keep that in mind. That does surprise quite a few people when they have a big event.

Erick Arnett:
Yeah, if you can save some bucks, it only takes you a quick little appointment and share your returns. It's worth the effort, I think.

Randy Woodruff:
Thank you. Yes, I agree.

Producer:
Well, it's all about simple, safe investments, securities returns. It's all about your financial, stress free future in your retirement from your friends, my friends at take point wealth management within our listening area just reach out to them. They want to help you. (352) 616-0511 That's number to call. This is a show called Take Point on Retirement. We're going to be back in just a bit after we hear from our sponsor. Take Point Wealth management. In the meantime, that phone number once again. (352) 616-0511. Check them out online. Take Point Wealth Management in the Nature Coast here locally, folks here. Garnett is an Investment Advisor Representative of Retirement and Wealth Advisors Inc., an SEC registered advisor. Take in Wealth Management This station and RWA are not affiliated. Exposure to ideals and financial vehicles discussed should not be considered investment advice or recommendation to buy or sell any financial vehicle. This information should not be considered tax or legal advice, and individuals should consult with professionals specialized in fields of tax, legal, accounting or investments regarding the applicability of this information for their situation. Past performance is not a guarantee of future results. Investments will fluctuate and, when redeemed, may be worth more or less. Then when originally invested, yeah, a little compliance disclosure there for your safety and ours and of course, your secure financial stress free future. We're talking about your retirement on take point on retirement, a show brought to you by take point, wealth management, enemy and time. Are you looking for judiciary services? You need to make some changes in your plan. Maybe need a portfolio built to your specific needs, your age appropriate portfolio, the folks, the call or take point, wealth management, how much better that makes your retirement. They will tell you how, when and what to do to assist and take points on your financial stress free future. We've played segments from a certain book that Eric's going to tell you about that he's offering as well for free.

Erick Arnett:
Yeah, Annuity 360. Great. Great book. Super easy. Read everything you need to know about annuities and then some and retirement planning and how it factors into your long term retirement plan. So awesome book. In fact, I was reading through Chapter nine the other day. Randy and I were discussing that and how important Chapter nine is these days. Chapter nine is how to generate your own pension. We give a lot of consultations on folks that are trying to decide, should I take this pension? Should I take a lump sum? And what is this going to do for me? And how is it going to affect my taxes, my Social Security, my Medicare premiums? It all has ramifications on how you start taking income. It's great to have multiple sources, but sometimes taking that pension option with your employer is not the best option. We feel pretty strongly that there's a lot more options available to you. Reach out to us, just request that free copy. We mail it right out to you. I've had quite a few people do that already, and we believe in educating our clients. The best clients. An educated client, first and foremost, is the educational process that we put them through over and over again through

Randy Woodruff:
The best clients and educated clients.

Erick Arnett:
Yes, yes. I love educated clients because once they're educated and they're comfortable and everything's clear and they're confident about things, they understand things the phone doesn't ring. We do our annual reviews and that's it. And I mean, the phone just doesn't ring once folks are in this smart, safe smart risk plan that we put together for them that that take point portfolio is our blueprint. The phone just doesn't ring anymore. And that's nice for us because you can take care of. We can do our job and take care of other clients, and it's an awesome, awesome plan. We love it. But the the thing that is important is you truly understand your pension and how to take it. If you're about to get a pension, it's likely you can do better on your own by taking a lump sum on your pension and then investing that money into a fixed indexed annuity. We've seen up to 10 percent bonuses on the money right up front. Had a client the other day, a new prospect we were working with and had the option of taking a lifetime annuity or taking a lump sum. And we showed him by taking the lump sum where you actually own the asset now and control it. You could do much better over time, and this actually illustrated about a 10 percent annual return as well. He's doing a million dollar pension roll out, and he's getting a 10 percent bonus on it. So is a gift from the company right there at $100000 free money and that immediately goes to your bottom line and starts earning dividends and interest on that amount.

Erick Arnett:
So it's hugely powerful and it's a great company and they have awesome crediting strategies behind them. It's great for us in our industry because things are getting exciting and they're coming out every year with more and more sophisticated and better, better options for our clients. So and it's a way to manage risk. You've got to get that risk off the table, folks. And I really honestly think that going forward here, it's going to be a rocky road. It's going to be kind of a roller coaster ride can be thrilling, is going to be a lot of ups and downs. And you might have fun on the ride, but you might not be wanting to be on that ride right now, either, depending on where you're at in retirement. So utilizing these index annuities to replace growth, replace pensions and provide income and also to to replace bonds. Imagine in this product just getting an immediate 10 percent growth on your lump sum pension just by choosing the right financial investment path that will keep your money safe based on the claims, paying ability or the issuing annuity company versus putting your money at risk in the market or accepting your pension as your company's dictating it to you. So most pensions are single premium immediate annuities. Those products are very good at paying you your money back. Basically, all you're doing is getting your money back. They're not great at growing your money because the growth is not linked to an actively managed index right now.

Producer:
So in the meantime, let's take a pause for station identification. You're listening to ninety nine point nine fmw WICB Homosassa, creating

Erick Arnett:
Your own pension, taking control of your money and also when you're doing your taxes. If you're taking that pension out every year, which might be a large amount of income that goes directly to the bottom line and creates taxes on your Social Security and Medicare can throw you up in another income tax bracket, which have multiple implications in taxes.

Randy Woodruff:
There we see a lot of people moving down from up north. As we all know those northern states, some of the north, some of the western states have high taxes as those state. Become more and more tax intensive, New York is going to be the highest tax state in the country now, a good question to ask is are those pension plans fully funded if you're getting a pension if to retire and you're retiring from a government system up there? I'm in no way trying to imply that the pension is going to go bankrupt. But are they going to be able to continue to keep up with inflation in terms of the performance if they have a funding problem?

Erick Arnett:
That brings up a great point. You know that we have the ability to look up your pension, whatever what is a state pension, government pension, a corporate pension we can, it's public information. We have a reporting tool that can pull up that pension and show us the liabilities that that pension has. How solvent it is and whether it's going to be able to meet the demands of a growing baby boomer population that's living longer. There are some risk and pensions. I've heard many times I was working with a police officer years and years ago, and they reduced his pension amount and he was about 10 years into retirement. All of a sudden boom, they're like, Hey, we're reducing your pension. You don't have control over that stuff and

Randy Woodruff:
You wrote your pension out. Put it into one of these annuities that Eric's talking about. You get to participate in. The market increases. Your principle is protected if you leave your pension managed by the government, if you will, or their advisors, depending upon the liabilities that their pension plan has. You may only wind up with the Indian cost of living increase every year in terms of your pension growth on an annual basis in terms of the income. Whereas if you roll it out, you could be enjoying a much higher annual income every year. If you've got friends and family thinking about leaving, or maybe you could still, potentially even though you've already retired, maybe you can still opt out and take the rest of your pension plan. I don't know how all that works. We take a look at the pension plan, see if they allow for that. But you left those states for a reason. You don't want to leave your retirement at risk by leaving it there. Manage there as well.

Erick Arnett:
Yeah, great example of a we just met with a couple down from New York and they sold their home. They're going to walk away with like one point one million dollars and they're going to invest about four hundred and fifty thousand of that, and it's going to generate a yearly. This will grow with inflation to there are seventy four and seventy seven years old and finally downsizing, so they're investing forty point nine percent of the proceeds from the sale of their home into a bond replacement strategy that will begin to pay them real money at the beginning of year two so their income is going to increase as they age. Remarkable growth without their money being at risk in the U.S. stock market. Just an awesome, awesome opportunity strategy for those folks.

Randy Woodruff:
Let's go back to that. Yeah, annual growth. Is anybody out there ever received two percent cola from Social Security? Has anybody ever received an increase from your pension that you have, whether it be from a workplace and or a state or local government? No, all the more reason begin looking into other options. There are other options out there. You don't have to just take what they give you and educate a client is a great client. Educate yourself. Look at the options because there are a lot more options out there than than were just 10 or 15 years ago.

Erick Arnett:
I know we had this other couple in and they're fifty five, and they wanted to defer money for ten years till 65 to where this gentleman retires and then they want to start taking income. We did an illustration at ten point five three percent average annual growth. And so think about that. You get some money. You put it away for 10 years and it's going to average ten point five three percent increase in income and growth in the future. I mean, that's huge. That's huge, and that's that's getting out ahead of the curve that's planning, what do we say, failure to plan as a plan to fail? So it's never too early. It's never too late. Get to dove in and get active with that strategy. We have two legs of our master plan and our portfolio. One leg is that active manage tactical style for growth and beat inflation in the future. And Rule one Hunter. We're not going to have more than 40 50 percent over there and the rest of your wealth, and that's smart, safe strategy. That's the other side of the leg. We got this strong two legged stool here that's going to be your bond replacement. Create your income, create your pension. Awesome. Awesome tools that are exposure out there for that. So super excited about that.

Producer:
There you go. Your friends and professionals that Take Point Wealth management, giving you the facts right here on take point on retirement each and every Saturday at this time. Only on this station and you are the last leg in that stool, you got to have safe and a risk free retirement. Well, the folks that see about that is take point wealth management. That's (352) 616-0511, the number to call take point. Welcome. Check it out online. If you have a question, we'll address that question in future shows the email for that is info info at ten point well-thought. That's info at take point welcome. And either way, go to their website. All the information's right there. It's so easy to navigate and it's user friendly, just like the folks that take point wealth management. And we'll be back to wrap up this segment of take point on retirement after this. Erick Arnett is an investment adviser, representative of Retirement Wealth Advisors LLC, an SEC registered advisor, take on wealth management. This station and RWA are not affiliated. Exposure to ideas and financial vehicles discussed should not be considered investment advice or recommendation to buy or sell any financial vehicle.

Producer:
Any comments regarding safe and secure investments in guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by retirement wealth advisors. Oh, a little compliance disclosure to offer you and to give you to let you know that take point and wealth management is a fiduciary service on your side right here along the Nature Coast, within our listening area offices to serve you or even online. Just check it out. TakePointWealth.com (352) 616-0511 A program called Take Point on Retirement Retirement Planner Lead Advisor Erick Arnett and Certified Public Accountant Randy Woodruff, just two members of that well-rounded team of professionals here to assist you in anything in everything. All you got to do is ask. They're here for you now.

Randy Woodruff:
If something is impacting a group of folks somewhere else, it's going to eventually have an impact on us. Somehow, some way we all need to be concerned about that. It's not just a problem for the wealthy, it's a problem for all of us as America, our spending and our debt and how we're going to cope with it. The sooner we deal with it, the sooner the better. But at the same time, here again, if you plan for it and you know about it well in advance when it gets here, it's no big deal because you're ready for it. We've had a lot of folks talk about Roth IRA conversions coming in. The office had some folks doing quite a bit of that and to continue to do that and talk to our younger folks out there listening, put money into a Roth IRA, start as early as you possibly can because tax free income in the future is going to become more and more valuable. I agree. Life insurance is another way to create some tax free income in retirement. If you have a need in retirement, we want you to turn to us first and we can point you in the right direction to work with professionals that we work with, know and trust and have had good success for our clients.

Erick Arnett:
Yeah. One mistake that we see quite often is not taking your employer's 401K match. So if your employer offers to match your four one K contributions to a certain percentage and you don't opt in, you're leaving free money on the table. So make sure you're contributing at least the amount your employer matches each month. I've seen that quite a bit in some reviews with folks that come in so Social Security can provide some financial security, but you shouldn't rely only on your Social Security checks to fund your retirement. Social Security benefits represent about 39 percent of elderly people's income, according to the Social Security Administration, so trying to retire only on Social Security has a lot of hidden costs and risks. And who knows, like they may cut Social Security benefits. Social Security is in trouble. There you have it. Getting back to taking point for our retirees and our retirement worries, it's really important to have a good withdrawal strategy in order to combat taxes and make sure you have the right Social Security plan in place. But one of the things that people often ask Do I take from my 401k, my IRA, my Roth? Which one do I take from first? So drawing from your four one K and your IRA before RMDs kick in? So requirement minimum distributions now kick in at age seventy two, not age seven and a half.

Erick Arnett:
You don't have to take money from those accounts until you're 72, and you can start withdrawing money from your four one K when you turn fifty nine and a half. But that doesn't mean it's a good idea, right? The law is not going to require you to start taking money from your portfolio until you're 72, you're your retirement portfolio. This allows that money to stay in there and keep growing and compounding tax free and gaining compound interest. Tapping into your Roth before exhausting other options, some people think about that, but potentially put off withdrawing money from your Roth IRA as long as possible. You know you paid taxes up front so you can take money out of your Roth IRA, and it won't count as taxable income so that Roth IRA can keep growing tax free. You can take money out whenever you want. Here's what's really important. We might say this a couple of times and emphasize this, and that's why we talk about the Roth conversion ladder. So much is trying to get folks to think about moving their money from a 401K or an IRA today into a Roth and going ahead and paying those taxes at these low tax rates that we're in right now. Because taxes are probably going to increase, there's absolutely no doubt that they are going to increase, especially on the wealthy.

Randy Woodruff:
Well, taxes are probably going be subject to inflation as well over time. They won't go up a little bit every year, but over time, tax rates are going to have to go up just to keep up with inflation as well, right? Good point. If you don't believe in inflation, you aren't paying attention to what's going on economically. Prices go up every year. Now, granted, the taxes are assessed on those higher dollars, but nonetheless taxes are going to have to go up over time. We've talked about that many, many times.

Erick Arnett:
Yeah, and the cool thing too is the difference between the Roth IRA and the regular IRA or 401K is that once you turn 70 to like the government, IRS is going to require you to start having to take money out of there, whether you like it or not, so they can tax it. I can tell you multiple times a year, I get people like, Man, I just don't. I don't need this money. I don't want to take it. I got to take it out. It's going to get taxed. And then also, that income goes to your bottom line, which creates taxes on your your Social Security. The big difference in the big change and the thing that's so impactful with the Roth that I can't emphasize enough is you don't have to take distributions from it ever if you don't want to.

Randy Woodruff:
That's huge when it can pass through your estate to your heirs and they can avoid taking distributions until they retire.

Erick Arnett:
This is the biggest transfer of wealth tax gift tax free.

Randy Woodruff:
I shouldn't say that it's tax free to the person that receives it. Depending upon what the estate tax limits are, there could be a transfer or estate tax. I would make sure I clarify that.

Erick Arnett:
Good point. But being able to take that money whenever you feel like it and then not have to pay tax on it, that gives you control and the power back into your hands. Not Uncle Sam's right.

Randy Woodruff:
As we meet with clients and we so often hear especially clients been fortunate with, either they had great jobs, great income, great planning or combination all the above. They actually have some. I'll use the word excess wealth that they based upon their lifestyle. They're comfortable, they don't really want to spend any more money. They're they enjoy their their days. And so they're not going to need all the money they have to live. And so we hear often, how can I leave money to my children? They can do it and also where it's tax free to the children when they actually withdraw it or need to spend it? What better way to be able to do that than be able to have your money in a Roth? Here again, the children have no taxation consequences and that money in the future.

Erick Arnett:
So yeah, that's huge.

Randy Woodruff:
But the government is in control of your money. And if you don't get the Social Security age, all the money you paid into it just stays in the pool for somebody else to benefit from. So I'm a big fan of letting everybody pay into their own Social Security, but the risk to doing that is we see it happening with a lot of people in our society. There's not a lot of responsibility, unfortunately, and so people aren't saving their money. And if they didn't have Social Security and Medicare, they would have nothing in retirement. And we're in we we see that now with people from time to time where they don't have anything other than Social Security or retirement and or they're living on insurances. Medicare and Medicare is good, but the more more people on Medicare, the more it's going to tax that, you know, tax that system.

Erick Arnett:
So I am split down the middle sort of kind on this subject, but I'll bring up a couple of points that whether we should trust Americans to be responsible enough to save for themselves versus the government, the government already spent all of our Social Security and Medicare. There's nothing in those trust funds. It's gone. They spent all our money, so you took your money and then they spent it. They didn't put it away for you. So the only thing that's going to provide your Social Security and is providing Social Security's current taxes, tax rates, this trust fund, probably the Social Security Medicare Trust, will probably never be paid back. It would be impossible to be paid back. So the only way that our government can continue to provide that for us is to raise taxes or change the benefit or

Randy Woodruff:
Push out the retirement age

Erick Arnett:
Or push out the retirement age. I like people having more control because I truly, really don't have a lot of trust because they've broken that trust. Our government has squandered our money and think about all of our tax dollars that go to other countries, even our enemies. The best way to plan for withdrawals and retirement. You've got to determine that optimal sequence to withdraw money from your retirement accounts, and it's different for everyone. So that's why you it's really important that you sit down and meet with us so we can put together that ultimate withdrawal strategy for you. Boyle Financial found that 79 percent of people who use an advisor said they know how to pursue achieving their retirement goals. Think about that. So 80 percent of all people that actually took the time to sit down with an advisor now feel confident that they can achieve their retirement goals

Randy Woodruff:
Because they get educated,

Erick Arnett:
They got educated. The study also found that 59 percent of those who use an advisor have calculated how much they need to retire, while fifty two percent established a formal retirement investment plan. That's somewhat encouraging, but not the numbers that we need. I mean, we need everybody thinking about and planning for their retirement and having a good solid plan in place and then having the confidence and clarity that they're going to make it to and through retirement. And that's why we bring in that simulation. We throw a thousand scenarios at your portfolio over 30 years, and it's going to show us what your probability of success is. And then we can make changes and tweak things from there to get you as close to 100 percent success as we can. So it's so important to get out ahead of the curve more than ever today. I mean, we have high taxation, we have our government messing around with our Social Security. And when do you take money or do you not take money in taxes increasing in the future? So inflation? Think about all these things that are coming out, our folks and our retirees left and right. That's why you need a leader. You need someone to step up, take point to guide you through all that. And that's what we get excited about. Absolutely.

Producer:
Service is here within our listening area to help you and assist you into that stress free financial future. Your retirement is important to take point. Wealth Management one hour chunk full the information and education you need and deserve from retirement planner lead advisor Erick Arnett with Take Point Wealth Management and certified public accountant Randy Woodruff. So you get these two gentlemen as. The original team members for take point, well, with the management on your side, you can't go wrong as they lead you to that stress free retirement and take point on that secure financial future the one that we all plan for dream of. By the way, that I mentioned that $1500 value yours today at no cost. $500 value evaluation consultation the take point wealth management blueprint on retirement to all of our listeners. If you give them a call now, I wanted to

Erick Arnett:
Go over a few steps that you can possibly take to help weather the market storm on the horizon. Because let's face it the way things are, let's say lining up or being kind of doled out here recently with all the chaos is going to be more and more challenges facing our retirees going forward. One of the things really important that we talk about all the time is that Rule 100 are taking your age and subtracting it from one hundreds and getting the amount of money that you should actually have in the markets or at risk or in growth. So just make sure you're invested appropriately for your age. Take a look at your investments and make sure they're age appropriate. You're in your 60s. Having 90 percent of your IRA and stocks probably isn't the best idea unless you happen to have extremely healthy appetite for risk. And you also have other sources of income robust sources to fall back on outside of your retirement income.

Randy Woodruff:
And we see this so often we have new clients come into the office and we think they're diversified. What are the things that always I want to say a chuckle out of it I'm always amazed by is that people will think because they've got mutual funds at Fidelity, mutual funds at Vanguard Mutual Funds with Eaton Vance, mutual funds with T. Rowe Price that they're diversified because they got fund different fund companies. But when you get into the underlying assets and tied to mutual funds, it's all the same across the board. So they really don't have the diversity that they think they really have. It's unfortunate that people have a false sense of security.

Erick Arnett:
Yeah, and that's and that's that one thing that we talk about, right? Lack of education. It's crazy how most of us go through 13 years of school and high school and then we go off to college for four or five years. But nobody in that whole time frame is sat us down and talk to us about finances. It's insane. And that's one of the most important things to a secure future for all Americans is to have a good sound financial plan and retirement education, education, education and yeah, you know, having a diverse portfolio, maintaining a healthy mix of stocks, bonds, index annuities, real estate commodities, it's really important that you have that in order to protect yourself from volatility. Same time, it's a good idea to diversify within each asset class. That could mean holding not just tech and bank stocks in your IRA, but also some health care, some energy stocks, some financial stocks, industrials as well, some industrial stocks. You could load up on index funds, which also offer kind of a built in diversity, so having mutual funds at different companies is not diversification. Having five or six financial advisors is not diversification.

Randy Woodruff:
We've seen that recently.

Erick Arnett:
Yeah, yeah, it's very interesting. We have always been told that, you know, I need to diversify and that's what they thought diversification was. And it's not. You can be with one advisor and we can diversify your assets for you and multiple asset classes. Now I only have one advisor who kind of knows what's going on. We know your performance. We know your fees, we know your asset allocation. That's the first thing that our analysis pulls out when we're doing that retirement house is that report that shows Are you diversified or not? And you can have one hundred different mutual funds and we find that you're not diversified at all. They're all very highly correlated, which means if one goes down, they're all going down. And that's a very, very common mistake that we see so very important to get a hand on that for sure. A more appropriate balance, if you're in your sixties might be to keep about 60 percent of your portfolio and stocks in the years leading up to retirement, with the remaining 40 percent in fixed income bonds. Indexed annuities, which we don't like bonds right now, so we're utilizing the index annuities to replace bonds. That's our bond replacement strategy. If you want to learn more about that, please give us a call and we'll explain to you that we have a really good bond replacement strategy for you basically having only 40 to 60 percent, maybe in that in that growth and those markets is probably a good plan for you because if you do experience a good downturn, it's going to be hard to recover from that. Keep contributing to your retirement account. When the stock market gets, you know, gets bumpy and wobbly, it can be tempting to pull back on retirement plan contributions until things settle down. But don't do that. You're kind of dollar cost averaging in at that point.

Randy Woodruff:
So I totally agree with you don't want to stop contributing to the market, even when things get sideways volatile, the mindset is below and so high now as I wonder if that mindset kind of trickles over into investing in the market. You can get in the market today and out to day out tomorrow. So I wonder if maybe sometimes when people do get this anxiety about investing in the market, when it's when, when the volatility is there, trying to employ that, buy low, sell high mentality to your point, your dollar cost averaging in.

Erick Arnett:
I actually get a little excited when when the. Market goes down and I get that volatility because I know the money that I'm putting in each month into my retirement is going to be getting some cheaper pricing. Even if you're in your late fifties or early sixties, you still kind of have that have to have that same mentality where you're still you're taking advantage of the dips and your money's kind of averaging in. And that's why we said earlier, if you're shifting now into that accumulation phase or that distribution phase, things have to be much different for you because if we do experience those market downturns at the same time, you just took a big chunk out of your portfolio. Now you're talking about having to get massive returns to get you back above water. So very important when you're getting close to retirement. You know, a volatile stock market can be quite unsettling. But if you choose the right investment mix and stay the course, there's a good chance you'll get through with retirement plans intact. I'm going to top ourselves on the shoulder a little bit. We have quite a few clients and we had those solid plans in place that were ready to weather that storm like wealth guard on their investments, like index annuities instead of bombs that have 100 percent principal protection. So we had a plan in place and our clients knew it before it even happened. They knew like, OK, if there is some kind of crazy correction in the market or something hits my retirement, I already know that we have a plan in place to weather that we go over world events and how crazy events could impact your portfolio, 911s, wars, pandemics. We go over all that and are planning to show you exactly how that will impact and how much impact it could have. And how do we kind of weather that decline? Try to limit it as best we can.

Randy Woodruff:
They know they had a good plan. They're educated on the plan. They're educated on the markets and they're they're involved in the plan as well. And they help us put together that plan because we have a very robust planning process with them in terms of several meetings, getting to know them, getting to know what their current and long term needs are. When you do have these storms that arise with volatility, the clients educated, they know the plan they've got and they know it's going to weather the storm. So it was

Producer:
A little frantic outside the take point wealth management family.

Erick Arnett:
Absolutely. We're able to bring a lot more people into our family during that period of time. And that was great because it had a shelter in the storm. So and that's that's exciting for us because we all work to make a living, but that's really just a means to an end. It doesn't really get you excited. What we work for every day is being able to truly help people and and see where they're kind of out there and in the storm and don't quite know what to do. And we bring them in and we wrap a nice plan around them and protect them and shelter them from all risk going forward. And that's a great feeling for us, as well as our clients and our potential clients. Great stuff. I mean, so much to always talk about on the show when we build what we call our smart plan, our retirement plan for our clients, we don't just focus on one market, the stock market. We bring multiple strategies to the table, smart risk, smart safe plans, smart money, safe money. So the Roth IRA conversion ladders continues to be a hot topic, an important topic to discuss, and we want to just kind of go through that and how that works and how we could do one of those for you very easily. You can go to our website, fill out our financial workbook, you can click on, set an appointment and we'll be happy to take in some data, some information from you and build one of these Roth conversions ladders for you.

Erick Arnett:
So you could see it in real time and see the picture and how that would look for you long term and simply what it is is converting those qualified monies. Those IRA accounts to a Roth, which is not taxable in the future when you take the money out so we can avoid taxation. Roth IRA conversion ladder, what does that mean? It simply means that you're going to be taking a portion of your retirement account could be a four one K. It could be an IRA. You want to take a portion of that each year and convert it into a Roth IRA. We do this all the time for our clients. In fact, like I said earlier, we can put together a nice little spreadsheet for you and show you what this would mean for you. We feel pretty strongly that the most tax efficient Roth Ladder Conversion is involved using your investment account or savings, or even your checking account funds to pay the taxes so that every dollar that is converted from your IRA into your Roth IRA goes into your Roth IRA account. We get this question all the time. Hey, Randy, hey Eric, you've got a hundred thousand sitting in the bank. I've got fifty thousand sitting in the bank. I think I want to pay off my home. In fact, we had a gentleman in the other day.

Erick Arnett:
I'm going to take all this money and pay off my home. Well, does that really make sense right now? Why not take that money, convert your IRA to a Roth and use that money to pay the taxes? As an example, we did the same thing for some clients recently there in the twenty two percent tax bracket, and this is over their entire retirement. There were sixty three years old, so we do a projection going out to ninety five and this. This couple had about seven hundred and sixty thousand in their IRA. They made about one hundred and sixty six thousand a year in income. What we found was when we showed this projection to them over the over their retirement years. They were going to save from eight hundred thirty four thousand dollars in taxes, down to three hundred and fifty six thousand dollars in taxes, so it was a four hundred and seventy eight thousand dollars tax savings over the life of their retirement. That's hard to get people to look out into the future, that crystal ball. I mean, we live for today. We tend to think about tomorrow and that's about it. And some of us even live in the past and think about yesterday, which isn't good either. We look 10, 20, 30 years out. In fact, I was talking to a client the other day and he was like, Wow,

Producer:
I love that. I love.

Erick Arnett:
I don't want any surprises 10 years from now. So I love how clients are starting to really grab this look forward. And then what does that mean if you're not paying all those taxes and those taxes are staying invested? This also gave these clients a total retirement and inheritance tax savings of over seven hundred eighteen thousand dollars. Wow, that's massive money.

Randy Woodruff:
It's a big number. Roth conversions have been around for probably as long as Roth IRAs have been out right now. Is it time to begin considering some of these strategies for the future?

Erick Arnett:
Absolutely. My goal is to we've talked about this too, is try to get as much money as we can into in that tax free bubble. Unfortunately, the majority of folks that come to us, they have most of their money in taxable accounts, which you know, is going to create this huge tax bubble. And then if all of a sudden the government says, OK, you're 72 now you have to start taking money out. And oh, by the way, yeah, we feel like we're going to tax that 50 percent now. I mean, they could change the laws. So 50 percent of everything you pull out in retirement, and that has a huge impact on deteriorating your cash flow and your overall retirement success. So real simple. I mean, if you took $100000 from your IRA, moved it to your off and you happen to be in that 22 percent tax bracket, you're going to pay twenty two thousand in taxes. Well, a lot of us have twenty two thousand thirty thousand sitting around in savings. So pay that tax now and get that money working for you growing tax free. And then when you go to take it out, it's tax free. I know it's tough to write that check and bite the bullet now, but think about the future folks. Think about how happy you're going to be, how happy this couple was when we showed them, Wow, you're going to save on half a million dollars in taxes over the life of your retirement. So it's pretty impactful and we'd love to show you that picture. So just reach out to us and we'll be happy to. Happy to do that for you.

Producer:
And that's where it starts. It starts with take point wealth management. You can we all can have that stress free financial future, that stress free retirement. This is take point on retirement. And after all, the name take point comes from that same concept where they're taking point, they're taking the lead, they're going out in front and clearing for you, for you to enjoy. It's a war zone out there and take in wealth management will take the lead on your financial future. Folks, don't hesitate, activate, call, take point. Wealth Management now we'll see you next week. God bless.