Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
All these years you've saved up planning for a secure retirement,
but if you're not careful, it will be the irs
that's living it up when you retire by taxing your
hard earned money. Welcome to the Maggie Tax and Financial
Hour with Robert and Chris Maggie of Maggie Tax Advisory
and Financial Group. With over thirty years of combined experience
in tax savings, income planning, and investment opportunities, Robert and
(00:22):
Chris share advice and tax planning strategies designed to protect
your retirement nest egg from Uncle Sam. Your questions and
comments are welcome during today's program by calling eight one
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty, or visit Maggie
Tax dot com. That's Maggi tax dot com and now
(00:46):
your host for the Maggie Tax Financial Hour on nine
seventy WFLA. Robert and Chris Maggie.
Speaker 2 (00:53):
Welcome everyone, and thanks for joining us today. My name
is Robert Maggie and I'm here with my son and
co host, Chris Maggie. Be sure to visit our website,
Maaggie Tax dot Com and tune in every Sunday ten
thirty am for The Maggie Tax and Financial Show on
ABC TV, and we just love to talk about retirement
and taxes because our mission is simple. It's to educate
(01:13):
you and help you understand the retirement language so that
you can make better decisions, because better decisions lead to
better outcomes. And here's how we're going to do that.
Each and every week. Chris and I are going to
discuss taxes, income planning, investment planning, and estate planning, and
we're going to discuss red money and green money, discuss
roth conversions. And the most important concern for all of
(01:35):
you is legislative risk and tax risk. What the heck
is that? Well, we're going to talk about it, so
stay tuned and you're about to find out. And remember,
our goal is to help you keep more of your
heart earned money. And there's going to be one clear winner,
and that's you. So sit back and enjoy today's show
and visit Maggie tax dot com today and welcome everyone.
Speaker 3 (01:55):
I'm Chris Maggie. Thank you so much for tuning into
our show. And yes, as my dad mentioned, to talk
about and we want to educate you. That's why we're here.
There's so much to discussed to position yourself in a
better situation to deal with what's about to occur. So
visit our website at Maggie tax dot com. There's so
much information right there at your fingertips and think about this.
(02:16):
Income planning, tax planning, investment planning. That's what we do.
So if you have any questions during today's show, pick
up the phone, schedule time to meet with us eight
three to three Maggie Tax. That's eight three to three
Maggie Tax.
Speaker 2 (02:27):
Now on our website, Maggie tax dot com. There's a
chat box, So sometime today or right now during the show,
go to Maggie tax dot com because we get a
lot of questions. And one of the questions that we're
getting Chris, and this concerns a lot of retirees that
are taking required minimum distribution or r mds, and a
lot of people don't know what R and D is.
Speaker 3 (02:49):
So stabay dere, let's come put a pause button on
this and educate our listeners today. If you have an
IRA or form and K years ago is seventy and
a half where you have to start taking with the
called the requirementium distribution. Due to this Secure Act, they
push that back to age seventy two. So let's just
say you have an IRA of one hundred thousand at
one custodian and then two hundred thousand dollars at another custodian.
(03:12):
That's total three hundred thousand dollars of qualified money that
you have. Well, if you don't need the money, you
have to take some type of distribution at age seventy two.
It's called the required minimum distribution, and if you do
not take it, there's a fifty percent penalty for not
taking it, plus you have to pay the tax on
the money. So this is a question here regarding requirementium distribution.
(03:34):
So that let's just jump in and ask the question.
Speaker 2 (03:37):
And one other thing, this is called legislative risk. This
is what we're talking about before where they change it
from seventy and a half to seventy two. A lot
of folks out there don't get it. So this is
a gentleman who wrote in and said I'm seventy two
and want to start taking rmds. He has multiple accounts
from teaching jobs that he had many years ago, plus
a couple of traditional iras, and he also had a
(03:58):
four h one K with the car employer, and his
question is can I total all of these up as
of December thirty first, twenty twenty one or twenty twenty
two actually and take an R and D based on
that number, or does each account have an rm D
based on its value? And you just talked about it,
so answer the question.
Speaker 3 (04:16):
Well, you know, dear John, and we really appreciate you
taking the time to write that question because it needs
to be addressed the right way. The RMD rules for
aggregating retirement plan accounts are very tricky, so you gotta
be careful. All of your traditional iras can be aggregated
with each other, but not with your four oh three
B from your previous teaching job or your four on
(04:37):
one ks. This means that rmds for each IRA account
must be calculated separately, but the total requirement of distribution
may be taken from one or more of your IRA account,
So your multiple four oh three B accounts can also
be aggregated with each other, but not with your iras
or your four one K. This is very very important
to understand that if a fore one K plan uses
(04:59):
what we call still working exemption, you don't have to
take rm ds from the plan until you actually retire.
At that point, the RMD for your four one ks
must be calculated separately and can taken apart from your
IRA and also your four to three b's. So considering
all these moving parts, it's very wise to consider consolidation
(05:21):
to minimize the future RMD hassle. And that's why we
stress it's very important that you meet with the qualified
retirement specialist. And we met with a gentleman last week.
He has one point five million dollars in his iras
and he had no idea how to calculate the requirement
and distribution. So with that said, I said, well, how
long you've been with your advisor? You said about fifteen years.
(05:43):
And I sat back and I said, he has not
talked to you about the required minimum distribution? And he
said no. He said, well how do you calculate it?
And I said, I was very upset about this because
this is an advisor that he has been with this
person for so long and he doesn't know the rules
and even bring it up to his current client. And
he sat back and he said, well, I got to
do something, don't I? And I said, well, yeah, let's
(06:05):
put together a plan, and that's what we did for him.
Speaker 2 (06:07):
Well, i'll tell you what brought him in the retirement
calculator that I have on Maggie tax dot com. And
for all of you, if this made sense to you
or not, go to Maggie tax dot com. Go to
the retirement calculator, put in the information. And the cool
thing about it, it's going to show you, at age
seventy two, what's your required minimum distribution is going to be.
That is when you need to sit down, like Chris said,
(06:28):
because what he had was multiple qualified accounts and just
remember something, all your qualified accounts, your four oh one K,
your four or three b's, your step plans, your IRA,
you've deferred the tax on it. So it's seventy two,
the government's going to come knocking and say, hey, here's
what you have to pay is based on what your
income is. And Chris, the retirement calculator, you've done it
(06:51):
with me. It blows people away because they had no idea.
And here's a perfect example. My goodness, if he doesn't
take it out correctly, he's got a big penalty to pay.
Speaker 3 (06:59):
Penalty plus a TAXI has to pay. So yes, make
sure if you have an IRA four to oh three B.
We just talked about how you cannot aggregate the two
unless it's an IRA or a four on one K.
So get with us. Let's put together a plan. Let's
calculate this for you. Let's show you and if you
go to a website maggitax dot com the retirement calculators
(07:21):
right there. In thirty seconds, you can figure out what
your required minimum distribution will be. So pick up the phone,
schedule time to meet with us. A three to three
MAGI tax. That's a three to three MAGI tax, you know.
Speaker 2 (07:32):
And I said it in the beginning of this segment
that it's your money. It's your hard earned money. So
if you neglect to take a look at this, like
Chris was mentioning with a client that came in, and
your advisor is not talking to you about this, shame
on them, because the bottom line is that ultimately you're
gonna pay at the end, and it's not a good
surprise when someone opens up your tax return and says, hey, Chris,
(07:52):
hey Bobby, look what you got to pay, and then
you're gonna say, well, gee, nobody told me about it.
That's on them. Chris that's on them and the advisor
should be taught about it. But you know what they
always say, speak to a tax advisor.
Speaker 3 (08:03):
Well, that's just it. Let's stay on that for a minute.
Because a client that came in a month ago, and
he came in, he said, I have an advisor, but
my advisor wants me to talk to my tax guy.
I go to my tax guy and my tax guy said, well,
wyt you talk to your advisor and they're not talking
to one another. So the guy is confused. He has assets,
he has a plan that he wants to put together,
(08:24):
but guess what, he can't implement it because he's not
getting the right advice. So that's what we're talking about here.
There's many people out there, many advisors, they call themselves
advisors that all they do is just invest the money. Well,
anybody can invest the money. You can invest your own money.
You can do it yourself. But what about the complete plan.
If you're looking for a complete plan, a tax plan
and an income plan, an investment plan, a social security
(08:46):
maximization plan, legacy planning, medicare planning, a state planning, that's
what we do. We put together a complete plan for you.
So if that's what you're looking for. If you want
to sit down in one office and have all the
questions answered instead of going back and forth, back and forth,
and we can help. So pick up the phone, schedule
time to meet with us eight three to three, Maggie Tax.
Speaker 2 (09:09):
And the nice thing about it, you're gonna meet with
Chris and I. We have three locations, one in Palm Marboro,
one in Loots and one in Saint Pete. So it's
real simple. Pick up the phone eight three to three,
Maggie Tax. Visit our website Maggie Tax dot com. Folks,
we have everything on the website for you. With today's technology,
it's a lot easier for you to go to the website,
take a look at it, put in the information, and
(09:30):
then make an appointment. We've helped so many people, and
there's a complete plan we're talking about. And here's one
thing we talked to people. Many of you don't have
a complete plan, Chris, they have an incomplete plan. And
basically just what you said, if they don't understand the
arm ds or the taxes, they have an incomplete plan.
Speaker 3 (09:47):
Well that's it, because guess what, what's our biggest expense? Taxes?
So you have these investments, but guess what, Uncle Sam's
gonna come by and take it because of taxes. So
what are you doing about it? What's your tax plan?
Do you have a tax plan with your investments? Do
you have a tax plan with your current income plan?
Do you have a tax plan with your future legacy plan?
(10:10):
Or do you not? If you don't, you need to
get one. So at Maggi Tax Advisor and Financial Group,
that's what we do. We take a tax approach to
help you. We can help you in a lot of
different ways. So pick up the phone, schedule the time
to meet with us. Eight three three Maggie Tax, don't forget.
Visit our website at Maggie Tax dot com. There's so
much information rate there. And also tune in every Sunday
on ABC TV at ten thirty for the Magi Tax
(10:32):
and Financial Show. Maggi Tax dot Com. Eight three three
Maggie Tax, and don't forget. Visit our website at Maggi
tax dot com and on the top right hand corner
click on the retirement tax bill. In thirty seconds thirty
seconds you can understand what your tax bill will be
on your retirement account. Visit us Maggi Tax dot Com.
Schedule time to meet with us eight three to three
(10:53):
Meggi Tax.
Speaker 1 (10:58):
Stop planning for Uncle Sam's or timeirement and start planning
for your retirement. As we return to the Maggie Tax
and Financial Hour with your host, father and son Robert
and Chris Maggie. For additional information on how you can
create a tax free retirement, visit Maggie tax dot com.
That's ma Ggi tax dot com or call eight one
(11:19):
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty. Now your host
for the Maggie Tax and Financial Hour, Father and son
from Maggie Tax Advisory and Financial Group, Robert and Chris Maggie.
Speaker 2 (11:35):
Welcome back and you're listening to the Maggie Tax and
Financial Show. Be sure to visit our website, Maggie Tax
dot com, and during today's show, you can go to
Maggie Tax dot com. There's a chatbox on the bottom right.
Type in a question if you're concerned about things. Will
you have a question, It'll go right to us and
we'll be glad to answer it. At the same time,
go to the top of the website for the retirement
tax calculator. If you're concerned about taxes and retirement, in
(11:58):
thirty seconds, we can show you what your tax bill
will be and then we can have a conversation. So, Chris,
we talked about long term care, we talk about taxes,
we talk about income planning, and also now we're going
to talk about social security because indirect taxes can be
double trouble for seniors and what does that mean. Now?
Many people base their retirement planning on the principle that
(12:18):
income and income taxes are going to drop once the
paychecks stop, and that is why the popularity of pre
tax retirement accounts are important. We talk about that all
the time. Why because contributions save tax currently and future
distributions may fall into low tax brackets. And that may
be the case in some situations, but seniors face two
(12:38):
complex financial demands income tax on social Security benefits as
well as higher than standard premiums for medicare, and this
is a big concern and at Maggie Tax we make
a concerted effort to reduce these potential outlays for clients.
So Chris, talk about some of the tools that we use,
because every time we sit down with a person with
a tax return and they're on Social Security. We see this,
(13:00):
so now Medicare premiums go up. It is so confusing
to a lot of people. And again the interpretation and
the rules they don't understand.
Speaker 3 (13:06):
Sure is and that's it. You've meant it. You hit
on the head. It it's confusion, it's questions, and that's
why we made it so simple. You know, come in,
schedule time to meet with us, let's sit down and
have a conversation. We have office on both sides of
the bay, so just pick up the phone, schedule time
to meet with us eight three to three MAGI tas
or visit our website at magatax dot com and this
chatbox is right there where you can propose your question,
(13:28):
put it down, let's see what's on your mind, and
then let's get together. Let's have a conversation. You know,
we do tax planning and income planning and estate planning
and a lot of different things. Investment planning and among
one of the tools, the prime tools that we suggest
are wroth I Ray conversions and is it right for you?
Possibly ken We can show you if it is or not,
especially before you require minimum distributions are required to be
(13:52):
taken and as you call the rmds and they begin
at eight seventy two. And also this qualified Charitable deductions
CDs from iras available after age seventy and a half,
so the rewards of the roth iras are valuable.
Speaker 1 (14:08):
There.
Speaker 3 (14:09):
It's tax free money, it's tax free growth. And who
cares you eliminated yourself from the future tax increases that
Uncle Sam wants to put later on down the road.
So we place a major emphasis on tax free income
in retirement because taxable income affects many different aspects of taxation,
including the tax on Social Security benefits, and many people
(14:32):
don't know how it's calculated. If you're really bored one day,
just google how is social Security taxed? And when you
go through all the competitions and you see how it is,
add this, take away, this, add this, and if this happens,
you'll get confused. And it doesn't have to be that way.
So just pick up the phone, schedule a time to
meet with us. Because the tax on Social Security benefits
and also Medicare premium searcharges this is huge and many
(14:55):
people in retirement have no idea until they're affected by them.
So let's get together and have these conversations to talk
about them today, a three to three Maggie tax.
Speaker 2 (15:04):
And one other thing, we talk about roth Ira conversions.
They are very appealing after age fifty nine and a
half and five year holding period, so any distributions from
a roth ira are free of income tax, and that
includes distributions on investment earnings. Many people don't know that.
And not only will such distributions avoid income tax, they
won't be counted as income for the purposes of taxing,
(15:28):
which we're talking about now, social Security benefits or raising
Medicare premiums. The roth Ira distributions won't be counted as
income for the purposes of taxing social Security benefits or
raising Medicare premiums. And there are some fine points to
consider here. On the plus side, the five year requirement
really is only four plus years. Many people are confused
(15:49):
about that. The countdown includes the year of a conversion
plus the next four calendar years. So an example, December
twenty two a conversion you can allow tax free gain
which rolls as early as January twenty twenty seven. That's
four years and some days later. It's confusing to a
lot of people. Again, Chris and I talk about the language,
(16:10):
so we need to sit down with you. Also, ROTH
distributions are first in, first out, so the day after
a conversion, funds up to the taxable conversion amount may
be distributed without any additional income tax. And Chris, this
is very confusing to a lot of people because when
the ROTH came out years ago, no one really sat
down and explained the advantage of it, what it's going
to do. And one of the two things we talked about,
(16:31):
it's going to reduce the tax on Social Security and
it's going to reduce the Medicare premiums. That's called a
stealth tax. Nobody saw that coming.
Speaker 3 (16:37):
Well, that's just say you know, there's a lot of
stuff that you just mentioned and people are thinking out there,
what do you just say? Well, that's why it's important
to get together with us, because the bottom line here
is if you have an IRA formk TSP thrift savings
account four to fifty seven plan drop money, it's all
infected with taxes. These are basically very simple. They're taxable.
They're infected with taxes. When you touch this money and
(16:58):
it comes out to a taxable event, you create a
ten million nine taxable event. Now, if you do some
Roth conversions and you already have your money in a
tax free environment, which is the WROTH iray or cash
value life insurance, then guess what, you don't have to
pay the tax anymore. It's done. So now you're an
environment where it's eliminates Uncle Sam forever and ever and ever.
(17:19):
So how do you get there? Will you have to
pay the tax to get there if you want to
convert the money, but let's do it in the most
tax efficient way. So that's one of the things that
we do that we can help you with when you
come to meet with us. Well, schedule time will not
only talk about your investments and your income planning, but
also how to get the money out in the most
tax efficient way. Now you're in a tax free environment
(17:39):
where who cares if Uncle Sam's raised the tax rates
in the future or legislative risk changes, you won't be affected.
So do you want to be in that environment? It's
totally up to you. Pick up the phone, schedule time
to meet with us. Let's do that mock tax return
for you today, a three to three Maggie tax, So.
Speaker 2 (17:56):
Visit Maggie tax dot com. Again, we emphasize as a
chat box on the bottom right. Type in your question.
We will get back to you and you know we'll
answer it, and then let's see if we should make
an appointment get together and go over all your questions
regarding tax as, income planning, retirement planning, a state planning,
long term care? Is your advisor talking to you about this?
And if they're not, we just gave you reason why
(18:18):
to give us a call. Eight three to three Maggie Tax.
Visit our website Maggie tax dot com. We have the
chat box and on the top we have the retirement calculator.
Fill in the information and in thirty seconds we can
show you what your tax bill is going to be. Folks,
this is something that I don't think anyone in this
area has. We have it. We want to sit down
with you and let's have the conversation and don't forget
(18:38):
Every Sunday Tomorrow at ten thirty am, tune into the
Maggie Tax and Financial Show on ABC TV, and then
at eleven o'clock go back to the radio and you
can listen to our show again on Sunday. So we
give you a lot of information. Maggie Tax dot Com
eight three to three Maggie Tax and be sure to
visit our website, Maggie Tax dot com. You're listening to
the Maggie Tax and Financial Show.
Speaker 1 (19:03):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return to the Maggie Tax and
Financial Hour with your host father and son, Robert and
Chris Maggie. For additional information on how you can create
a tax free retirement, visit Maggie tax dot com. That's
Maggi tax dot com or call eight one three three
(19:25):
two two twenty five twenty. That's eight one three three
two two twenty five twenty. Now your host for the
Maggie Tax and Financial Hour, father and son from Maggie
Tax Advisory and Financial Group, Robert and Chris Maggie.
Speaker 2 (19:41):
Welcome back, everyone, and thanks for joining us today. My
name is Robert Maggie and I'm here with my son
and co host Chris Maggie. Today we're talking about the
services that we offer and that many of you need
but don't even know it. And what I mean by
that is we offer financial services, we offer tax services,
in legal and also insurance and that's called a complete plan.
And Chris and I talk about this, and many of you,
(20:02):
whether you know it or not, have an incomplete plan.
But there's still a lot more, Chris, that people need
to understand because when we talk about a complete plan
and we put all this together, the next step is
when do you want to retire? Number one? If you
want to retire now or later. And we had a
client come in this week and we'll talk about it.
They just found out they're going to retire in June.
(20:22):
So the biggest question the wife had was do we
have enough income? And we put this binder together with
an asset map to show them where their money is
because they have money allocated in different things, save money
and some you know, red money, which is fine. But
then we asked them the question how much do you need?
And guess what they said, I don't know. So Chris,
that's a problem. Okay, and let's talk about that. Because
(20:46):
we had to back up the bus to go back
to Social Security because he's going to retire health insurance
and then what the cost is going to be and
then we have to put this whole thing together.
Speaker 3 (20:55):
That's just it. You know, you mentioned a complete plan
and incomplete plan, and we were fortunate to meet with
them a year ago and we put together a whole
plan for them, and he was still working and he's
sixty five years old, and he said, I want to
work maybe a couple more years. And she's retired. So
they live on his income every month and it's four
thousand dollars a month coming in. They have a million dollars.
(21:16):
And we put together a plan last year and we
allocated different buckets and we had bucket planning and some
safe money and some money that's in the market, and
we manage it. And he also has a complete plan
where everything, if anything got for bid happens, it's going
to go to his beneficiaries and avoid the probate process.
But bottom line, when he came in for a review yesterday,
I want to talk about this because it might be
(21:38):
on a lot of people's minds. Even though they had
a million dollars. The perception that many people have is that,
oh my gosh, get to a million dollars or you're
a millionaire and you have no concerns. Well, these people
and these clients really sat down and their next play
was I got to retire. And they thought about this
for a while, and they thought about what's going to
(22:00):
happen because they don't know. And we educated them, and
we sat back and their biggest concern was running out
of money. And these are people who don't need a
dime of these assets, but their main concern sleepless nights
about running out of money. Every purchase that they go
about wanting to execute, they have a second guessing it
(22:24):
because their fear of running out of money. And if
you're listening today, it doesn't matter how much money you have,
whether you have three hundred thousand or a three million,
it doesn't matter a lot of millionaire people are worried
about running out of money. And that's the whole point here.
If you don't have enough income sources and you don't
have your account set up the right way for guaranteed income,
(22:44):
you might run out of money. But these clients here,
when they came in and met with us, that we'll explain.
You talk about the income side of it with the
Social Security and the foundation. But we started and explained
to them the different buckets of money. So let's start
that with the social security and we explained the balance chet.
But where do it go from here?
Speaker 2 (23:02):
Well, when I asked the gentleman, when he's going to retire,
he said, Bobby, I'm going to retire in June. So
I looked at we put a binder together, We do
an asset map and a Social Security maximization report, and
that's what we do for everybody. But the bottom line
was that he's going to take solid Security, which I
think he was going to get twenty six hundred dollars
a month. Now. His wife was sixty five. She won't
be six. I'm sorry, sixty four. Won't be sixty five
(23:24):
till next year. So because he's leaving, problem number one
was they had insurance covered through his work, but then
if he leaves in June, she has no insurance.
Speaker 3 (23:36):
So it was a big gap there with health insurance
because he's going to be on Medicare. But then she
needs to go out to the market and get health insurance.
Speaker 2 (23:44):
For one year. Right now, the reason why I ask
questions like this and all of you, how much income
do you need? Stop and think about what you guaranteed
income for him, it was solid security. For her, she
could take Social Security as well, So about twenty six
hundred I think it was for and I think Couz
was about thirteen hundred. So that's what almost four grand
a month? What was the need of income that you
(24:06):
just said?
Speaker 3 (24:06):
Well, it's interesting. When I sat down and talked to them,
we asked them what was your how much do you
need every month? And they looked at one another. I said,
I don't know, maybe four grand, but we want to travel, okay,
So I said, is it five thousand? I said, well,
we might want to do a couple more things, so
is it six thousand? So what I did was I
used the calculators, the present value calculator, and put their
(24:29):
assets in there and explain to them if they take
out two thousand dollars more a month to get the
six thousand dollars, that's twenty four thousand dollars a year
as distribution off their million dollars. By doing that every year,
they will never outlive their money. If they take out
two thousand dollars a month and we let it grow
at very conservative, very reasonable rates, guess what, they'll still
(24:54):
have one point four million dollars by the time they're
ninety five years old. So right there, they stopped and
looked at one another and said, oh my gosh. And
I said, what does that mean to you? Because you
can take more income every month. You can take five
thousand dollars more income on top of social Security. If
you want to, you can go ahead and not take
that amount. It's up to you. It's about how much
(25:16):
you need and what are your goals. So when they
sat back and they looked at this, it was a
big relief that came off their shoulders. You can see it,
you can feel it, and it was actually more of
a teary eyed visual look in their eyes because they
never were told this. And as my dad mentioned, they're
in their sixties, and with all due respect, a lot
(25:37):
of people out there are listening today and they're older
than me. But the point is that they never got
this information and the education. So why is it so
important we do our show because of these reasons. And
if you're listening today, we're passionate about helping you. If
you're out there and you're listening and you have any
questions and you wake up at the middle of the night,
we'ren't about running out of money in taking these purchases
(25:59):
and can I buy? Do I not buy? What do
I do? And they restrict you, then now's the time
to pick up the phone and give us a call.
It's eight three to three Magi tax. That's eight three
three Maggie tax. But that when you saw the look
and you said, of the field, how did that make
you feel?
Speaker 2 (26:14):
I felt really bad because I know that they didn't
understand they were looking for help, and they were kind
of sitting there dumbfounded, like I think we're gonna run
out of money. But here's what I did, and this
is what Chris and I talk about, the Maggie Plan.
The Maggie Plan is a tax plan. It's an income plan.
I repeat it. It's an income plan, it's an investment plan.
It's a legacy plan. So if you're gonna sit down
(26:35):
with us, this is what we're gonna do with you.
Because the first question I want you to tell us
is how much do you need to retire? Because if
you're gonna work, you're getting income coming in. I get that,
but when you retire, you still have to have income
coming in. Chris, So for this gentleman and his wife,
they did not understand how the guaranteed money is a
(26:56):
base you solid security. You're going to get it, a
pench you're going to get it. And just like Chris
mentioned before, you don't know what you don't know, meaning
that you probably have enough to retire. And Chris made
a simple illustration to them about the future value of money.
The money they had is going to last them more
years than they will live, and not only that, they
(27:18):
could take out more. In the way things are today,
people are worried about inflation, people worried about running out
of money, health insurance, and when you sit down and
do a plan like this, they sat back and Chris
mentioned they were TEARI eide once we told them it
was like a big elephant. Chris off their shoulder when
you told him that, How did I feel? I felt great?
(27:39):
How did you feel? Well?
Speaker 3 (27:41):
The same way. And that's why we do what we do,
and I you know, we're very grateful. We're very thankful,
and we love doing what we do, and we can
do the same thing for you because you know you
need education. Where's the last class you had on how
to develop an income plan or an investment plan, or
how to consolidate your accounts or how to pass my
assets to the generation on the most tax efficient way,
(28:02):
or what about medicare and health insurance? Or what about
sol security maximization or what about college funding? If you
have a child that needs to go to school. These
are the things that we do each and every day.
That's complete planning. That's what we talk about the Maggie Plan.
So pick up the phone, schedule time to meet with us.
Eight three to three Maggie Tax. That's eight three to
three Maggie Tax. Get the Maggie Plan because it's a
(28:24):
tax plan, it's an income plan, it's an investment plan.
It's a complete plan, and.
Speaker 2 (28:28):
They challenge all of you in a good way. Go
to my website, Maggie Tax dot com. Why because I
have free webinars on there. A lot of people don't
want to go to seminars or it's too crowded, or
you know the situation now with COVID. Then go to
my website Maggie Tax dot com. We recorded thirty minute
videos and a website on everything we talk about. You
(28:50):
need to go there because it's going to help you understand. Well,
maybe I'm not so bad, and I have people call
me every day and say, you don't. I don't want
Biden to get by money. He's not going to get it.
If you do a pl Okay, if you do a plan.
I'll give you an example on this one too. They
had qualified money and they had some wroth and the
question was can I start moving my money from the
(29:10):
qualified plan to the wroth plan? We did? What did
we tell them? Chris? Wow?
Speaker 3 (29:15):
So it was like a just an enlightenment right, a
moment in aha moment they had and they said, well,
we can do more. So we talked about what if
you get the money out of this qualified bucket and
make it tax free, eliminate Uncle Sam forever? How would
that make you feel? Say, look at each other again.
They said, well, how can we do that? I said, well,
we'll educate you on that. We'll show you what we
(29:37):
can do, and then you know, let's put it together.
And they said this is the best review they've ever had.
And I felt like I was lecturing them in some way,
and they said, no, no, no, no, we apologize because
we should have known this, We should have taken our
time to go over this years ago and get the advice.
And we're so glad that they came in with us.
Speaker 2 (29:55):
So just go and no, no, are you wrong? And
I'll tell you why, because when you have listen to
radio shows like this, and you listen to financial advisors,
you need to ask them questions. You need to ask
them how am I going to get income? It's not
just about a stock bond, a mutual funnel, your brokerage account.
You know, it goes up, it goes down. Talk about
a plan, and we talk about a complete plan. We
(30:15):
talk about the Maggie Plan. So check out my website
Maggie tax dot com. The Maggie Plan is a tax plan,
it's an income plan, it's a legacy plan, it's so
security plan. It's everything that you need. How many of
you do not have that? And don't look, I don't
care how much money you have. You don't have to
have a million dollars to come in here and work
with us. Everyone out there has a retirement account. This
(30:38):
is your money. Be clear on that you worked for it,
You saved for it. So don't be afraid to come
in and say, well, gee, this is all I have.
Ah ah, that doesn't work. Christ And the point is
that they think that because they've been told that.
Speaker 3 (30:50):
That's exactly right. And you don't have to worry about
that when you come here. So pick up the phone,
schedule time to meet with us eight three to three
Maggie Tax. As my dad mentioned before. There's so much
there on our website eight three three mag at Tax,
but when you come in to me with us and
then we'll give you a lot more eight three three
Maggie Tax. We look forward to meeting with you.
Speaker 1 (31:08):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return to the Maggie Tax and
Financial Hour with your host, father and son Robert and
Chris Maggie. For additional information on how you can create
a tax free retirement, visit Maggie Tax dot com. That's
Maggi tax dot com or call eight one three three
(31:30):
two two twenty five twenty. That's eight one three three
two two twenty five twenty now your host for the
Maggie Tax and Financial Hour, Father and son from Maggie
Tax Advisory and Financial Group, Robert and Chris Maggie.
Speaker 3 (31:46):
Welcome back everyone. Thanks for tuning into the Maga Tax
and Financial Show. We welcome you back to our show,
and as we discussed before, tune in every Sunday on
ABCTV at ten thirty for the Magi Tax and Financial Show.
It's a thirty minute show fill with education to help
you in a lot of different topics, and today we're
talking about the risks, especially in retirement. We talked about
(32:06):
longevity risks, we talked about market risk, we talked about
healthcare risk, we talked about medicare, we talked about just
income risk. Well, what about policy risk, Dad? What's policy risk?
Speaker 2 (32:18):
Great question? And this is the last retirement risk to
be on the lookout for. Is policy risk? And what
is that? This is associated risk associated with any possible
retirement benefit cuts that may occurred during your entire retirement years.
And what I'm talking about is people who have worked
for companies and found out that their benefits have been reduced.
You'll probably get a letter in the mail that they
(32:39):
have cut this and they have cut that. So be
aware of that because things are changing, and it's one
of the most severe risks of them all. Because Social
Security Trust Fund is projected to be depleted of money
in twenty thirty five, which is going to cause a
twenty four percent cut to your Social Security benefits. We've
been listening to that, so prepare for that. So how
do we prepare for that? The only way is to
(33:01):
stay ahead of this retirement risk is to ensure that
your retirement savings plan is not reliant on government benefits
to live and survive. And we talk about legislature risk
all the time, and that's where Congress can change the
rules anytime. And it's always amazing, Chris. Every four years
you get a new election and people go like, oh man,
we're going to wait till the election's over Look, folks,
(33:21):
you know this. They can change the rules anytime because
it's written in pencil. And we know that because we
talk about it. So legislature risk is the biggest one
that you have to be aware of, as well as
the risk of Chris and I are talking about today.
Speaker 3 (33:35):
And that's it. So these risks obviously are there in retirement.
There's risks everywhere, you know, waking up in the morning,
going outside, you know, traveling. But when your financial risks
are there, you can control a lot of these. And
you want to build your retirement plan in such a
way that you're able to live on your own savings alone,
and any potential soci security benefits are just an extra
(33:55):
added income that can be used to supplement your savings
or even use that those funds too. En So a
lot of people can position themselves in a better environment. Well,
don't have to worry about what's going to happen, and
all the news and the noise and rumors and the
noise my gosh, I mean, it just makes people worry
and get concerned. You don't want to live like that,
(34:15):
especially in retirement. You know, you worked hard put together
retirement plan that's going to benefit you, not your advisor.
You pick up the phone, schedule time to meet with this.
We can help you with this eight three to three
magi tax.
Speaker 2 (34:28):
So the point we're trying to make is no matter
what stage of your retirement planning you're at, you want
to be prepared for all of the risks that we
talk about today. So the more steps that you take
to protect to secure your retirement savings and plan because
planning is the big thing, the more fun, the more
travel and memories you're going to enjoy in your golden years.
And if you want to learn more about how you
(34:49):
can protect your retirement or build a strategic and effective
retirement plan is get on the phone and give us
a call a three to three magi tas. Why am
I saying that because we do holistic planning. We do
planning for tax planning, income planning, insurance planning, investment planning,
risk planning, and on and on it goes, and we
build a plan. We use a balance sheet for every
(35:10):
client that comes in because we need to explain to
you what assets you have. Is it qualified, is it
non qualified? Many people come in Chris and they say,
what does that mean? Well, qualified means that you haven't
paid the tax on it yet. Qualified means that this
amount of money that you have, or like Chris says,
piles of money is going to be taxed at some
point when you have to start taking out the required
(35:32):
minimum distribution And people think it's the MDR, the RDR.
It's not Roosevelt, it's our MD. Required minimum distribution. At
a certain age, they change that. It used to be
seventy and a half now it's seventy two. People don't
know that, Chris. And they don't even know about the
standard deduction that when the Trump tax cuts were implemented
and in two years it's going to expire. These are
(35:54):
things Chris, that they don't talk about with their advisor
and they're basically confused and they're sitting in a corner like, WHOA,
what do I do now?
Speaker 3 (36:01):
So that's just it. You know, if you're there, then
what do you do? It's simple, just pick up the phone,
schedule time to meet with us. Why, let's just get together.
We have office on both sides of the bay. You know,
let's see if our philosophies are in line with yours,
and let's put together a plan. You know, that's what
it's about. It's really nice when you can go home
and you have a plan. You know, think about it.
Isn't it really nice sometimes when you clean your house
(36:23):
and at the end of the day you sit down
and everything's clean. It's a great feeling to have. You know,
you don't like the mess everywhere. It's hard to live
that way with all the clutter. But in retirement, yeah,
you don't want to live that way either. You want
to make sure that it's clean. You want to make
sure that you have the options, you have the solutions,
you have a plan in place, and you have a
team around you, behind you, in front of you to
(36:47):
help you through this. And that's what we do. So
pick up the phone, schedule all time to meet with us.
Eight three three Magie tax. That's eight three three Magie tax.
And you know, dad, let's talk about you know, in
today's show with what are they going to do when
when people come in and meet with us, like, what
do we do to to help people get started on
their plan?
Speaker 2 (37:06):
Well, that's a great question. It's very simple. We invite
you in and we have these chains on the chairs
and we lock you down until unt I'm only getting
only kidding. Now, here's the point. Most people are afraid
to come in to me with advisor because they're going
to be sold. That's not our style and that's not
what we do. We want to ask you questions about
what's on your mind. You have to talk, we're going
(37:28):
to listen. We had a client that was with another
advisor and they were really upset with them because they said,
you know, guys, they don't call me, they don't update
my accounts, I don't know where I'm at. And I
kind of sat back and I said to Chris, said
that's not all on the advisor. That's on the client,
because you have to be the one to say, look,
I want to review. I want to go over my
(37:48):
accounts without hesitation and without fear that you're going to
be sold. And Chris, that's what's going to happen when
you come in. We're going to ask you these questions.
We're going to put a plan together. It's called the
Maggie Plan. It's a tax plan, insurance plan, it's an
income plan, and then you're going to make a decision
and when present the plan, how you want to proceed forward.
It's simple. You talk about building a house, Explain that
(38:09):
because that's a simple analogy that you can make. You know,
it's simple.
Speaker 3 (38:11):
When you go and you want to build a home,
you work with an architect, someone who wants to design
a house for you. Right well, you might not know
how many how many floors you want or how many
rooms you have. Same thing with the plan, you know,
when you come in and meet with us, let's put
together the plan. You know, maybe we can make some
changes here and there to make sure that at the
end of the day you have your financial house in order.
That's what it's about, making sure that you are in
(38:33):
control tax planning, income planning, investment planning. Visit our website
at Maggi tax dot com. We'll forward to working with you.
Eight three to three Magi Tax.
Speaker 1 (38:43):
You've been listening to the Maggie Tax and Financial Hour
discussing tax planning investment strategies presented by Robert and Chris
Maggie from Maggie Tax Advisory and Financial Services with offices
in Hillsboro and Panela's County. Visit Maggie Tax dot com
or call eight one three three two two twenty five twenty.
That's eight one three three two two twenty five twenty
(39:06):
and tune in next Saturday at five for the Maggie
Tax and Financial Hour
All these years you've saved up planning for a secure retirement,
but if you're not careful, it will be the irs
that's living it up when you retire by taxing your
hard earned money. Welcome to the Maggie Tax and Financial
Hour with Robert and Chris Maggie of Maggie Tax Advisory
and Financial Group. With over thirty years of combined experience
in tax savings, income planning, and investment opportunities, Robert and
(00:22):
Chris share advice and tax planning strategies designed to protect
your retirement nest egg from Uncle Sam. Your questions and
comments are welcome during today's program by calling eight one
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty, or visit Maggie
Tax dot com. That's Maggi tax dot com and now
(00:46):
your host for the Maggie Tax Financial Hour on nine
seventy WFLA. Robert and Chris Maggie.
Speaker 2 (00:53):
Welcome everyone, and thanks for joining us today. My name
is Robert Maggie and I'm here with my son and
co host, Chris Maggie. Be sure to visit our website,
Maaggie Tax dot Com and tune in every Sunday ten
thirty am for The Maggie Tax and Financial Show on
ABC TV, and we just love to talk about retirement
and taxes because our mission is simple. It's to educate
(01:13):
you and help you understand the retirement language so that
you can make better decisions, because better decisions lead to
better outcomes. And here's how we're going to do that.
Each and every week. Chris and I are going to
discuss taxes, income planning, investment planning, and estate planning, and
we're going to discuss red money and green money, discuss
roth conversions. And the most important concern for all of
(01:35):
you is legislative risk and tax risk. What the heck
is that? Well, we're going to talk about it, so
stay tuned and you're about to find out. And remember,
our goal is to help you keep more of your
heart earned money. And there's going to be one clear winner,
and that's you. So sit back and enjoy today's show
and visit Maggie tax dot com today and welcome everyone.
Speaker 3 (01:55):
I'm Chris Maggie. Thank you so much for tuning into
our show. And yes, as my dad mentioned, to talk
about and we want to educate you. That's why we're here.
There's so much to discussed to position yourself in a
better situation to deal with what's about to occur. So
visit our website at Maggie tax dot com. There's so
much information right there at your fingertips and think about this.
(02:16):
Income planning, tax planning, investment planning. That's what we do.
So if you have any questions during today's show, pick
up the phone, schedule time to meet with us eight
three to three Maggie Tax. That's eight three to three
Maggie Tax.
Speaker 2 (02:27):
Now on our website, Maggie tax dot com. There's a
chat box, So sometime today or right now during the show,
go to Maggie tax dot com because we get a
lot of questions. And one of the questions that we're
getting Chris, and this concerns a lot of retirees that
are taking required minimum distribution or r mds, and a
lot of people don't know what R and D is.
Speaker 3 (02:49):
So stabay dere, let's come put a pause button on
this and educate our listeners today. If you have an
IRA or form and K years ago is seventy and
a half where you have to start taking with the
called the requirementium distribution. Due to this Secure Act, they
push that back to age seventy two. So let's just
say you have an IRA of one hundred thousand at
one custodian and then two hundred thousand dollars at another custodian.
(03:12):
That's total three hundred thousand dollars of qualified money that
you have. Well, if you don't need the money, you
have to take some type of distribution at age seventy two.
It's called the required minimum distribution, and if you do
not take it, there's a fifty percent penalty for not
taking it, plus you have to pay the tax on
the money. So this is a question here regarding requirementium distribution.
(03:34):
So that let's just jump in and ask the question.
Speaker 2 (03:37):
And one other thing, this is called legislative risk. This
is what we're talking about before where they change it
from seventy and a half to seventy two. A lot
of folks out there don't get it. So this is
a gentleman who wrote in and said I'm seventy two
and want to start taking rmds. He has multiple accounts
from teaching jobs that he had many years ago, plus
a couple of traditional iras, and he also had a
(03:58):
four h one K with the car employer, and his
question is can I total all of these up as
of December thirty first, twenty twenty one or twenty twenty
two actually and take an R and D based on
that number, or does each account have an rm D
based on its value? And you just talked about it,
so answer the question.
Speaker 3 (04:16):
Well, you know, dear John, and we really appreciate you
taking the time to write that question because it needs
to be addressed the right way. The RMD rules for
aggregating retirement plan accounts are very tricky, so you gotta
be careful. All of your traditional iras can be aggregated
with each other, but not with your four oh three
B from your previous teaching job or your four on
(04:37):
one ks. This means that rmds for each IRA account
must be calculated separately, but the total requirement of distribution
may be taken from one or more of your IRA account,
So your multiple four oh three B accounts can also
be aggregated with each other, but not with your iras
or your four one K. This is very very important
to understand that if a fore one K plan uses
(04:59):
what we call still working exemption, you don't have to
take rm ds from the plan until you actually retire.
At that point, the RMD for your four one ks
must be calculated separately and can taken apart from your
IRA and also your four to three b's. So considering
all these moving parts, it's very wise to consider consolidation
(05:21):
to minimize the future RMD hassle. And that's why we
stress it's very important that you meet with the qualified
retirement specialist. And we met with a gentleman last week.
He has one point five million dollars in his iras
and he had no idea how to calculate the requirement
and distribution. So with that said, I said, well, how
long you've been with your advisor? You said about fifteen years.
(05:43):
And I sat back and I said, he has not
talked to you about the required minimum distribution? And he
said no. He said, well how do you calculate it?
And I said, I was very upset about this because
this is an advisor that he has been with this
person for so long and he doesn't know the rules
and even bring it up to his current client. And
he sat back and he said, well, I got to
do something, don't I? And I said, well, yeah, let's
(06:05):
put together a plan, and that's what we did for him.
Speaker 2 (06:07):
Well, i'll tell you what brought him in the retirement
calculator that I have on Maggie tax dot com. And
for all of you, if this made sense to you
or not, go to Maggie tax dot com. Go to
the retirement calculator, put in the information. And the cool
thing about it, it's going to show you, at age
seventy two, what's your required minimum distribution is going to be.
That is when you need to sit down, like Chris said,
(06:28):
because what he had was multiple qualified accounts and just
remember something, all your qualified accounts, your four oh one K,
your four or three b's, your step plans, your IRA,
you've deferred the tax on it. So it's seventy two,
the government's going to come knocking and say, hey, here's
what you have to pay is based on what your
income is. And Chris, the retirement calculator, you've done it
(06:51):
with me. It blows people away because they had no idea.
And here's a perfect example. My goodness, if he doesn't
take it out correctly, he's got a big penalty to pay.
Speaker 3 (06:59):
Penalty plus a TAXI has to pay. So yes, make
sure if you have an IRA four to oh three B.
We just talked about how you cannot aggregate the two
unless it's an IRA or a four on one K.
So get with us. Let's put together a plan. Let's
calculate this for you. Let's show you and if you
go to a website maggitax dot com the retirement calculators
(07:21):
right there. In thirty seconds, you can figure out what
your required minimum distribution will be. So pick up the phone,
schedule time to meet with us. A three to three
MAGI tax. That's a three to three MAGI tax, you know.
Speaker 2 (07:32):
And I said it in the beginning of this segment
that it's your money. It's your hard earned money. So
if you neglect to take a look at this, like
Chris was mentioning with a client that came in, and
your advisor is not talking to you about this, shame
on them, because the bottom line is that ultimately you're
gonna pay at the end, and it's not a good
surprise when someone opens up your tax return and says, hey, Chris,
(07:52):
hey Bobby, look what you got to pay, and then
you're gonna say, well, gee, nobody told me about it.
That's on them. Chris that's on them and the advisor
should be taught about it. But you know what they
always say, speak to a tax advisor.
Speaker 3 (08:03):
Well, that's just it. Let's stay on that for a minute.
Because a client that came in a month ago, and
he came in, he said, I have an advisor, but
my advisor wants me to talk to my tax guy.
I go to my tax guy and my tax guy said, well,
wyt you talk to your advisor and they're not talking
to one another. So the guy is confused. He has assets,
he has a plan that he wants to put together,
(08:24):
but guess what, he can't implement it because he's not
getting the right advice. So that's what we're talking about here.
There's many people out there, many advisors, they call themselves
advisors that all they do is just invest the money. Well,
anybody can invest the money. You can invest your own money.
You can do it yourself. But what about the complete plan.
If you're looking for a complete plan, a tax plan
and an income plan, an investment plan, a social security
(08:46):
maximization plan, legacy planning, medicare planning, a state planning, that's
what we do. We put together a complete plan for you.
So if that's what you're looking for. If you want
to sit down in one office and have all the
questions answered instead of going back and forth, back and forth,
and we can help. So pick up the phone, schedule
time to meet with us eight three to three, Maggie Tax.
Speaker 2 (09:09):
And the nice thing about it, you're gonna meet with
Chris and I. We have three locations, one in Palm Marboro,
one in Loots and one in Saint Pete. So it's
real simple. Pick up the phone eight three to three,
Maggie Tax. Visit our website Maggie Tax dot com. Folks,
we have everything on the website for you. With today's technology,
it's a lot easier for you to go to the website,
take a look at it, put in the information, and
(09:30):
then make an appointment. We've helped so many people, and
there's a complete plan we're talking about. And here's one
thing we talked to people. Many of you don't have
a complete plan, Chris, they have an incomplete plan. And
basically just what you said, if they don't understand the
arm ds or the taxes, they have an incomplete plan.
Speaker 3 (09:47):
Well that's it, because guess what, what's our biggest expense? Taxes?
So you have these investments, but guess what, Uncle Sam's
gonna come by and take it because of taxes. So
what are you doing about it? What's your tax plan?
Do you have a tax plan with your investments? Do
you have a tax plan with your current income plan?
Do you have a tax plan with your future legacy plan?
(10:10):
Or do you not? If you don't, you need to
get one. So at Maggi Tax Advisor and Financial Group,
that's what we do. We take a tax approach to
help you. We can help you in a lot of
different ways. So pick up the phone, schedule the time
to meet with us. Eight three three Maggie Tax, don't forget.
Visit our website at Maggie Tax dot com. There's so
much information rate there. And also tune in every Sunday
on ABC TV at ten thirty for the Magi Tax
(10:32):
and Financial Show. Maggi Tax dot Com. Eight three three
Maggie Tax, and don't forget. Visit our website at Maggi
tax dot com and on the top right hand corner
click on the retirement tax bill. In thirty seconds thirty
seconds you can understand what your tax bill will be
on your retirement account. Visit us Maggi Tax dot Com.
Schedule time to meet with us eight three to three
(10:53):
Meggi Tax.
Speaker 1 (10:58):
Stop planning for Uncle Sam's or timeirement and start planning
for your retirement. As we return to the Maggie Tax
and Financial Hour with your host, father and son Robert
and Chris Maggie. For additional information on how you can
create a tax free retirement, visit Maggie tax dot com.
That's ma Ggi tax dot com or call eight one
(11:19):
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty. Now your host
for the Maggie Tax and Financial Hour, Father and son
from Maggie Tax Advisory and Financial Group, Robert and Chris Maggie.
Speaker 2 (11:35):
Welcome back and you're listening to the Maggie Tax and
Financial Show. Be sure to visit our website, Maggie Tax
dot com, and during today's show, you can go to
Maggie Tax dot com. There's a chatbox on the bottom right.
Type in a question if you're concerned about things. Will
you have a question, It'll go right to us and
we'll be glad to answer it. At the same time,
go to the top of the website for the retirement
tax calculator. If you're concerned about taxes and retirement, in
(11:58):
thirty seconds, we can show you what your tax bill
will be and then we can have a conversation. So, Chris,
we talked about long term care, we talk about taxes,
we talk about income planning, and also now we're going
to talk about social security because indirect taxes can be
double trouble for seniors and what does that mean. Now?
Many people base their retirement planning on the principle that
(12:18):
income and income taxes are going to drop once the
paychecks stop, and that is why the popularity of pre
tax retirement accounts are important. We talk about that all
the time. Why because contributions save tax currently and future
distributions may fall into low tax brackets. And that may
be the case in some situations, but seniors face two
(12:38):
complex financial demands income tax on social Security benefits as
well as higher than standard premiums for medicare, and this
is a big concern and at Maggie Tax we make
a concerted effort to reduce these potential outlays for clients.
So Chris, talk about some of the tools that we use,
because every time we sit down with a person with
a tax return and they're on Social Security. We see this,
(13:00):
so now Medicare premiums go up. It is so confusing
to a lot of people. And again the interpretation and
the rules they don't understand.
Speaker 3 (13:06):
Sure is and that's it. You've meant it. You hit
on the head. It it's confusion, it's questions, and that's
why we made it so simple. You know, come in,
schedule time to meet with us, let's sit down and
have a conversation. We have office on both sides of
the bay, so just pick up the phone, schedule time
to meet with us eight three to three MAGI tas
or visit our website at magatax dot com and this
chatbox is right there where you can propose your question,
(13:28):
put it down, let's see what's on your mind, and
then let's get together. Let's have a conversation. You know,
we do tax planning and income planning and estate planning
and a lot of different things. Investment planning and among
one of the tools, the prime tools that we suggest
are wroth I Ray conversions and is it right for you?
Possibly ken We can show you if it is or not,
especially before you require minimum distributions are required to be
(13:52):
taken and as you call the rmds and they begin
at eight seventy two. And also this qualified Charitable deductions
CDs from iras available after age seventy and a half,
so the rewards of the roth iras are valuable.
Speaker 1 (14:08):
There.
Speaker 3 (14:09):
It's tax free money, it's tax free growth. And who
cares you eliminated yourself from the future tax increases that
Uncle Sam wants to put later on down the road.
So we place a major emphasis on tax free income
in retirement because taxable income affects many different aspects of taxation,
including the tax on Social Security benefits, and many people
(14:32):
don't know how it's calculated. If you're really bored one day,
just google how is social Security taxed? And when you
go through all the competitions and you see how it is,
add this, take away, this, add this, and if this happens,
you'll get confused. And it doesn't have to be that way.
So just pick up the phone, schedule a time to
meet with us. Because the tax on Social Security benefits
and also Medicare premium searcharges this is huge and many
(14:55):
people in retirement have no idea until they're affected by them.
So let's get together and have these conversations to talk
about them today, a three to three Maggie tax.
Speaker 2 (15:04):
And one other thing, we talk about roth Ira conversions.
They are very appealing after age fifty nine and a
half and five year holding period, so any distributions from
a roth ira are free of income tax, and that
includes distributions on investment earnings. Many people don't know that.
And not only will such distributions avoid income tax, they
won't be counted as income for the purposes of taxing,
(15:28):
which we're talking about now, social Security benefits or raising
Medicare premiums. The roth Ira distributions won't be counted as
income for the purposes of taxing social Security benefits or
raising Medicare premiums. And there are some fine points to
consider here. On the plus side, the five year requirement
really is only four plus years. Many people are confused
(15:49):
about that. The countdown includes the year of a conversion
plus the next four calendar years. So an example, December
twenty two a conversion you can allow tax free gain
which rolls as early as January twenty twenty seven. That's
four years and some days later. It's confusing to a
lot of people. Again, Chris and I talk about the language,
(16:10):
so we need to sit down with you. Also, ROTH
distributions are first in, first out, so the day after
a conversion, funds up to the taxable conversion amount may
be distributed without any additional income tax. And Chris, this
is very confusing to a lot of people because when
the ROTH came out years ago, no one really sat
down and explained the advantage of it, what it's going
to do. And one of the two things we talked about,
(16:31):
it's going to reduce the tax on Social Security and
it's going to reduce the Medicare premiums. That's called a
stealth tax. Nobody saw that coming.
Speaker 3 (16:37):
Well, that's just say you know, there's a lot of
stuff that you just mentioned and people are thinking out there,
what do you just say? Well, that's why it's important
to get together with us, because the bottom line here
is if you have an IRA formk TSP thrift savings
account four to fifty seven plan drop money, it's all
infected with taxes. These are basically very simple. They're taxable.
They're infected with taxes. When you touch this money and
(16:58):
it comes out to a taxable event, you create a
ten million nine taxable event. Now, if you do some
Roth conversions and you already have your money in a
tax free environment, which is the WROTH iray or cash
value life insurance, then guess what, you don't have to
pay the tax anymore. It's done. So now you're an
environment where it's eliminates Uncle Sam forever and ever and ever.
(17:19):
So how do you get there? Will you have to
pay the tax to get there if you want to
convert the money, but let's do it in the most
tax efficient way. So that's one of the things that
we do that we can help you with when you
come to meet with us. Well, schedule time will not
only talk about your investments and your income planning, but
also how to get the money out in the most
tax efficient way. Now you're in a tax free environment
(17:39):
where who cares if Uncle Sam's raised the tax rates
in the future or legislative risk changes, you won't be affected.
So do you want to be in that environment? It's
totally up to you. Pick up the phone, schedule time
to meet with us. Let's do that mock tax return
for you today, a three to three Maggie tax, So.
Speaker 2 (17:56):
Visit Maggie tax dot com. Again, we emphasize as a
chat box on the bottom right. Type in your question.
We will get back to you and you know we'll
answer it, and then let's see if we should make
an appointment get together and go over all your questions
regarding tax as, income planning, retirement planning, a state planning,
long term care? Is your advisor talking to you about this?
And if they're not, we just gave you reason why
(18:18):
to give us a call. Eight three to three Maggie Tax.
Visit our website Maggie tax dot com. We have the
chat box and on the top we have the retirement calculator.
Fill in the information and in thirty seconds we can
show you what your tax bill is going to be. Folks,
this is something that I don't think anyone in this
area has. We have it. We want to sit down
with you and let's have the conversation and don't forget
(18:38):
Every Sunday Tomorrow at ten thirty am, tune into the
Maggie Tax and Financial Show on ABC TV, and then
at eleven o'clock go back to the radio and you
can listen to our show again on Sunday. So we
give you a lot of information. Maggie Tax dot Com
eight three to three Maggie Tax and be sure to
visit our website, Maggie Tax dot com. You're listening to
the Maggie Tax and Financial Show.
Speaker 1 (19:03):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return to the Maggie Tax and
Financial Hour with your host father and son, Robert and
Chris Maggie. For additional information on how you can create
a tax free retirement, visit Maggie tax dot com. That's
Maggi tax dot com or call eight one three three
(19:25):
two two twenty five twenty. That's eight one three three
two two twenty five twenty. Now your host for the
Maggie Tax and Financial Hour, father and son from Maggie
Tax Advisory and Financial Group, Robert and Chris Maggie.
Speaker 2 (19:41):
Welcome back, everyone, and thanks for joining us today. My
name is Robert Maggie and I'm here with my son
and co host Chris Maggie. Today we're talking about the
services that we offer and that many of you need
but don't even know it. And what I mean by
that is we offer financial services, we offer tax services,
in legal and also insurance and that's called a complete plan.
And Chris and I talk about this, and many of you,
(20:02):
whether you know it or not, have an incomplete plan.
But there's still a lot more, Chris, that people need
to understand because when we talk about a complete plan
and we put all this together, the next step is
when do you want to retire? Number one? If you
want to retire now or later. And we had a
client come in this week and we'll talk about it.
They just found out they're going to retire in June.
(20:22):
So the biggest question the wife had was do we
have enough income? And we put this binder together with
an asset map to show them where their money is
because they have money allocated in different things, save money
and some you know, red money, which is fine. But
then we asked them the question how much do you need?
And guess what they said, I don't know. So Chris,
that's a problem. Okay, and let's talk about that. Because
(20:46):
we had to back up the bus to go back
to Social Security because he's going to retire health insurance
and then what the cost is going to be and
then we have to put this whole thing together.
Speaker 3 (20:55):
That's just it. You know, you mentioned a complete plan
and incomplete plan, and we were fortunate to meet with
them a year ago and we put together a whole
plan for them, and he was still working and he's
sixty five years old, and he said, I want to
work maybe a couple more years. And she's retired. So
they live on his income every month and it's four
thousand dollars a month coming in. They have a million dollars.
(21:16):
And we put together a plan last year and we
allocated different buckets and we had bucket planning and some
safe money and some money that's in the market, and
we manage it. And he also has a complete plan
where everything, if anything got for bid happens, it's going
to go to his beneficiaries and avoid the probate process.
But bottom line, when he came in for a review yesterday,
I want to talk about this because it might be
(21:38):
on a lot of people's minds. Even though they had
a million dollars. The perception that many people have is that,
oh my gosh, get to a million dollars or you're
a millionaire and you have no concerns. Well, these people
and these clients really sat down and their next play
was I got to retire. And they thought about this
for a while, and they thought about what's going to
(22:00):
happen because they don't know. And we educated them, and
we sat back and their biggest concern was running out
of money. And these are people who don't need a
dime of these assets, but their main concern sleepless nights
about running out of money. Every purchase that they go
about wanting to execute, they have a second guessing it
(22:24):
because their fear of running out of money. And if
you're listening today, it doesn't matter how much money you have,
whether you have three hundred thousand or a three million,
it doesn't matter a lot of millionaire people are worried
about running out of money. And that's the whole point here.
If you don't have enough income sources and you don't
have your account set up the right way for guaranteed income,
(22:44):
you might run out of money. But these clients here,
when they came in and met with us, that we'll explain.
You talk about the income side of it with the
Social Security and the foundation. But we started and explained
to them the different buckets of money. So let's start
that with the social security and we explained the balance chet.
But where do it go from here?
Speaker 2 (23:02):
Well, when I asked the gentleman, when he's going to retire,
he said, Bobby, I'm going to retire in June. So
I looked at we put a binder together, We do
an asset map and a Social Security maximization report, and
that's what we do for everybody. But the bottom line
was that he's going to take solid Security, which I
think he was going to get twenty six hundred dollars
a month. Now. His wife was sixty five. She won't
be six. I'm sorry, sixty four. Won't be sixty five
(23:24):
till next year. So because he's leaving, problem number one
was they had insurance covered through his work, but then
if he leaves in June, she has no insurance.
Speaker 3 (23:36):
So it was a big gap there with health insurance
because he's going to be on Medicare. But then she
needs to go out to the market and get health insurance.
Speaker 2 (23:44):
For one year. Right now, the reason why I ask
questions like this and all of you, how much income
do you need? Stop and think about what you guaranteed
income for him, it was solid security. For her, she
could take Social Security as well, So about twenty six
hundred I think it was for and I think Couz
was about thirteen hundred. So that's what almost four grand
a month? What was the need of income that you
(24:06):
just said?
Speaker 3 (24:06):
Well, it's interesting. When I sat down and talked to them,
we asked them what was your how much do you
need every month? And they looked at one another. I said,
I don't know, maybe four grand, but we want to travel, okay,
So I said, is it five thousand? I said, well,
we might want to do a couple more things, so
is it six thousand? So what I did was I
used the calculators, the present value calculator, and put their
(24:29):
assets in there and explain to them if they take
out two thousand dollars more a month to get the
six thousand dollars, that's twenty four thousand dollars a year
as distribution off their million dollars. By doing that every year,
they will never outlive their money. If they take out
two thousand dollars a month and we let it grow
at very conservative, very reasonable rates, guess what, they'll still
(24:54):
have one point four million dollars by the time they're
ninety five years old. So right there, they stopped and
looked at one another and said, oh my gosh. And
I said, what does that mean to you? Because you
can take more income every month. You can take five
thousand dollars more income on top of social Security. If
you want to, you can go ahead and not take
that amount. It's up to you. It's about how much
(25:16):
you need and what are your goals. So when they
sat back and they looked at this, it was a
big relief that came off their shoulders. You can see it,
you can feel it, and it was actually more of
a teary eyed visual look in their eyes because they
never were told this. And as my dad mentioned, they're
in their sixties, and with all due respect, a lot
(25:37):
of people out there are listening today and they're older
than me. But the point is that they never got
this information and the education. So why is it so
important we do our show because of these reasons. And
if you're listening today, we're passionate about helping you. If
you're out there and you're listening and you have any
questions and you wake up at the middle of the night,
we'ren't about running out of money in taking these purchases
(25:59):
and can I buy? Do I not buy? What do
I do? And they restrict you, then now's the time
to pick up the phone and give us a call.
It's eight three to three Magi tax. That's eight three
three Maggie tax. But that when you saw the look
and you said, of the field, how did that make
you feel?
Speaker 2 (26:14):
I felt really bad because I know that they didn't
understand they were looking for help, and they were kind
of sitting there dumbfounded, like I think we're gonna run
out of money. But here's what I did, and this
is what Chris and I talk about, the Maggie Plan.
The Maggie Plan is a tax plan. It's an income plan.
I repeat it. It's an income plan, it's an investment plan.
It's a legacy plan. So if you're gonna sit down
(26:35):
with us, this is what we're gonna do with you.
Because the first question I want you to tell us
is how much do you need to retire? Because if
you're gonna work, you're getting income coming in. I get that,
but when you retire, you still have to have income
coming in. Chris, So for this gentleman and his wife,
they did not understand how the guaranteed money is a
(26:56):
base you solid security. You're going to get it, a
pench you're going to get it. And just like Chris
mentioned before, you don't know what you don't know, meaning
that you probably have enough to retire. And Chris made
a simple illustration to them about the future value of money.
The money they had is going to last them more
years than they will live, and not only that, they
(27:18):
could take out more. In the way things are today,
people are worried about inflation, people worried about running out
of money, health insurance, and when you sit down and
do a plan like this, they sat back and Chris
mentioned they were TEARI eide once we told them it
was like a big elephant. Chris off their shoulder when
you told him that, How did I feel? I felt great?
(27:39):
How did you feel? Well?
Speaker 3 (27:41):
The same way. And that's why we do what we do,
and I you know, we're very grateful. We're very thankful,
and we love doing what we do, and we can
do the same thing for you because you know you
need education. Where's the last class you had on how
to develop an income plan or an investment plan, or
how to consolidate your accounts or how to pass my
assets to the generation on the most tax efficient way,
(28:02):
or what about medicare and health insurance? Or what about
sol security maximization or what about college funding? If you
have a child that needs to go to school. These
are the things that we do each and every day.
That's complete planning. That's what we talk about the Maggie Plan.
So pick up the phone, schedule time to meet with us.
Eight three to three Maggie Tax. That's eight three to
three Maggie Tax. Get the Maggie Plan because it's a
(28:24):
tax plan, it's an income plan, it's an investment plan.
It's a complete plan, and.
Speaker 2 (28:28):
They challenge all of you in a good way. Go
to my website, Maggie Tax dot com. Why because I
have free webinars on there. A lot of people don't
want to go to seminars or it's too crowded, or
you know the situation now with COVID. Then go to
my website Maggie Tax dot com. We recorded thirty minute
videos and a website on everything we talk about. You
(28:50):
need to go there because it's going to help you understand. Well,
maybe I'm not so bad, and I have people call
me every day and say, you don't. I don't want
Biden to get by money. He's not going to get it.
If you do a pl Okay, if you do a plan.
I'll give you an example on this one too. They
had qualified money and they had some wroth and the
question was can I start moving my money from the
(29:10):
qualified plan to the wroth plan? We did? What did
we tell them? Chris? Wow?
Speaker 3 (29:15):
So it was like a just an enlightenment right, a
moment in aha moment they had and they said, well,
we can do more. So we talked about what if
you get the money out of this qualified bucket and
make it tax free, eliminate Uncle Sam forever? How would
that make you feel? Say, look at each other again.
They said, well, how can we do that? I said, well,
we'll educate you on that. We'll show you what we
(29:37):
can do, and then you know, let's put it together.
And they said this is the best review they've ever had.
And I felt like I was lecturing them in some way,
and they said, no, no, no, no, we apologize because
we should have known this, We should have taken our
time to go over this years ago and get the advice.
And we're so glad that they came in with us.
Speaker 2 (29:55):
So just go and no, no, are you wrong? And
I'll tell you why, because when you have listen to
radio shows like this, and you listen to financial advisors,
you need to ask them questions. You need to ask
them how am I going to get income? It's not
just about a stock bond, a mutual funnel, your brokerage account.
You know, it goes up, it goes down. Talk about
a plan, and we talk about a complete plan. We
(30:15):
talk about the Maggie Plan. So check out my website
Maggie tax dot com. The Maggie Plan is a tax plan,
it's an income plan, it's a legacy plan, it's so
security plan. It's everything that you need. How many of
you do not have that? And don't look, I don't
care how much money you have. You don't have to
have a million dollars to come in here and work
with us. Everyone out there has a retirement account. This
(30:38):
is your money. Be clear on that you worked for it,
You saved for it. So don't be afraid to come
in and say, well, gee, this is all I have.
Ah ah, that doesn't work. Christ And the point is
that they think that because they've been told that.
Speaker 3 (30:50):
That's exactly right. And you don't have to worry about
that when you come here. So pick up the phone,
schedule time to meet with us eight three to three
Maggie Tax. As my dad mentioned before. There's so much
there on our website eight three three mag at Tax,
but when you come in to me with us and
then we'll give you a lot more eight three three
Maggie Tax. We look forward to meeting with you.
Speaker 1 (31:08):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return to the Maggie Tax and
Financial Hour with your host, father and son Robert and
Chris Maggie. For additional information on how you can create
a tax free retirement, visit Maggie Tax dot com. That's
Maggi tax dot com or call eight one three three
(31:30):
two two twenty five twenty. That's eight one three three
two two twenty five twenty now your host for the
Maggie Tax and Financial Hour, Father and son from Maggie
Tax Advisory and Financial Group, Robert and Chris Maggie.
Speaker 3 (31:46):
Welcome back everyone. Thanks for tuning into the Maga Tax
and Financial Show. We welcome you back to our show,
and as we discussed before, tune in every Sunday on
ABCTV at ten thirty for the Magi Tax and Financial Show.
It's a thirty minute show fill with education to help
you in a lot of different topics, and today we're
talking about the risks, especially in retirement. We talked about
(32:06):
longevity risks, we talked about market risk, we talked about
healthcare risk, we talked about medicare, we talked about just
income risk. Well, what about policy risk, Dad? What's policy risk?
Speaker 2 (32:18):
Great question? And this is the last retirement risk to
be on the lookout for. Is policy risk? And what
is that? This is associated risk associated with any possible
retirement benefit cuts that may occurred during your entire retirement years.
And what I'm talking about is people who have worked
for companies and found out that their benefits have been reduced.
You'll probably get a letter in the mail that they
(32:39):
have cut this and they have cut that. So be
aware of that because things are changing, and it's one
of the most severe risks of them all. Because Social
Security Trust Fund is projected to be depleted of money
in twenty thirty five, which is going to cause a
twenty four percent cut to your Social Security benefits. We've
been listening to that, so prepare for that. So how
do we prepare for that? The only way is to
(33:01):
stay ahead of this retirement risk is to ensure that
your retirement savings plan is not reliant on government benefits
to live and survive. And we talk about legislature risk
all the time, and that's where Congress can change the
rules anytime. And it's always amazing, Chris. Every four years
you get a new election and people go like, oh man,
we're going to wait till the election's over Look, folks,
(33:21):
you know this. They can change the rules anytime because
it's written in pencil. And we know that because we
talk about it. So legislature risk is the biggest one
that you have to be aware of, as well as
the risk of Chris and I are talking about today.
Speaker 3 (33:35):
And that's it. So these risks obviously are there in retirement.
There's risks everywhere, you know, waking up in the morning,
going outside, you know, traveling. But when your financial risks
are there, you can control a lot of these. And
you want to build your retirement plan in such a
way that you're able to live on your own savings alone,
and any potential soci security benefits are just an extra
(33:55):
added income that can be used to supplement your savings
or even use that those funds too. En So a
lot of people can position themselves in a better environment. Well,
don't have to worry about what's going to happen, and
all the news and the noise and rumors and the
noise my gosh, I mean, it just makes people worry
and get concerned. You don't want to live like that,
(34:15):
especially in retirement. You know, you worked hard put together
retirement plan that's going to benefit you, not your advisor.
You pick up the phone, schedule time to meet with this.
We can help you with this eight three to three
magi tax.
Speaker 2 (34:28):
So the point we're trying to make is no matter
what stage of your retirement planning you're at, you want
to be prepared for all of the risks that we
talk about today. So the more steps that you take
to protect to secure your retirement savings and plan because
planning is the big thing, the more fun, the more
travel and memories you're going to enjoy in your golden years.
And if you want to learn more about how you
(34:49):
can protect your retirement or build a strategic and effective
retirement plan is get on the phone and give us
a call a three to three magi tas. Why am
I saying that because we do holistic planning. We do
planning for tax planning, income planning, insurance planning, investment planning,
risk planning, and on and on it goes, and we
build a plan. We use a balance sheet for every
(35:10):
client that comes in because we need to explain to
you what assets you have. Is it qualified, is it
non qualified? Many people come in Chris and they say,
what does that mean? Well, qualified means that you haven't
paid the tax on it yet. Qualified means that this
amount of money that you have, or like Chris says,
piles of money is going to be taxed at some
point when you have to start taking out the required
(35:32):
minimum distribution And people think it's the MDR, the RDR.
It's not Roosevelt, it's our MD. Required minimum distribution. At
a certain age, they change that. It used to be
seventy and a half now it's seventy two. People don't
know that, Chris. And they don't even know about the
standard deduction that when the Trump tax cuts were implemented
and in two years it's going to expire. These are
(35:54):
things Chris, that they don't talk about with their advisor
and they're basically confused and they're sitting in a corner like, WHOA,
what do I do now?
Speaker 3 (36:01):
So that's just it. You know, if you're there, then
what do you do? It's simple, just pick up the phone,
schedule time to meet with us. Why, let's just get together.
We have office on both sides of the bay. You know,
let's see if our philosophies are in line with yours,
and let's put together a plan. You know, that's what
it's about. It's really nice when you can go home
and you have a plan. You know, think about it.
Isn't it really nice sometimes when you clean your house
(36:23):
and at the end of the day you sit down
and everything's clean. It's a great feeling to have. You know,
you don't like the mess everywhere. It's hard to live
that way with all the clutter. But in retirement, yeah,
you don't want to live that way either. You want
to make sure that it's clean. You want to make
sure that you have the options, you have the solutions,
you have a plan in place, and you have a
team around you, behind you, in front of you to
(36:47):
help you through this. And that's what we do. So
pick up the phone, schedule all time to meet with us.
Eight three three Magie tax. That's eight three three Magie tax.
And you know, dad, let's talk about you know, in
today's show with what are they going to do when
when people come in and meet with us, like, what
do we do to to help people get started on
their plan?
Speaker 2 (37:06):
Well, that's a great question. It's very simple. We invite
you in and we have these chains on the chairs
and we lock you down until unt I'm only getting
only kidding. Now, here's the point. Most people are afraid
to come in to me with advisor because they're going
to be sold. That's not our style and that's not
what we do. We want to ask you questions about
what's on your mind. You have to talk, we're going
(37:28):
to listen. We had a client that was with another
advisor and they were really upset with them because they said,
you know, guys, they don't call me, they don't update
my accounts, I don't know where I'm at. And I
kind of sat back and I said to Chris, said
that's not all on the advisor. That's on the client,
because you have to be the one to say, look,
I want to review. I want to go over my
(37:48):
accounts without hesitation and without fear that you're going to
be sold. And Chris, that's what's going to happen when
you come in. We're going to ask you these questions.
We're going to put a plan together. It's called the
Maggie Plan. It's a tax plan, insurance plan, it's an
income plan, and then you're going to make a decision
and when present the plan, how you want to proceed forward.
It's simple. You talk about building a house, Explain that
(38:09):
because that's a simple analogy that you can make. You know,
it's simple.
Speaker 3 (38:11):
When you go and you want to build a home,
you work with an architect, someone who wants to design
a house for you. Right well, you might not know
how many how many floors you want or how many
rooms you have. Same thing with the plan, you know,
when you come in and meet with us, let's put
together the plan. You know, maybe we can make some
changes here and there to make sure that at the
end of the day you have your financial house in order.
That's what it's about, making sure that you are in
(38:33):
control tax planning, income planning, investment planning. Visit our website
at Maggi tax dot com. We'll forward to working with you.
Eight three to three Magi Tax.
Speaker 1 (38:43):
You've been listening to the Maggie Tax and Financial Hour
discussing tax planning investment strategies presented by Robert and Chris
Maggie from Maggie Tax Advisory and Financial Services with offices
in Hillsboro and Panela's County. Visit Maggie Tax dot com
or call eight one three three two two twenty five twenty.
That's eight one three three two two twenty five twenty
(39:06):
and tune in next Saturday at five for the Maggie
Tax and Financial Hour
Popular Podcasts
40s and Free Agents: NFL Draft Season
Daniel Jeremiah of Move the Sticks and Gregg Rosenthal of NFL Daily join forces to break down every team's needs this offseason.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.