TRANSCRIPT FOR THE MARCH 25, 2017 “ON THE MONEY” SHOW

Hosts: Denise Kovach, CFP^®, AIF^® and Joe Bert, CFP^®, AIF^®

Well Hello everybody, welcome to another edition of On the Money, the certified financial group here on News 96.5, WDBO, the Ask the Experts weekend. Joe Bert and Denise Kovach are here in the studio taking your phone calls at 844-220-0965. 844-220-0965, Joe and Denise, good morning.

Good Morning
Good morning.
How are you guys doing today?

We’re doing great.

Fantastic.
I saw Denise ride in on her Harley and enjoying the weather.

You bet.

Was it nice outside.

It’s gorgeous out there, not too hot yet, but it’s going to get up there.

Yeah,

Absolutely.

Well, we are here in the studio, to take your calls about what guys?

We’re here to talk about anything that’s on your mind regarding your personal finances. As we say in our ads, unfortunately our educational system has failed all of us, when it comes to how to save and

No,

Oh yeah, and we see it in the office time and time again. Successful people, people who have great careers, great businesses, their life is often times a collection of financial accidents. Simply because they never really had a plan. They don’t teach us how to do this stuff in school, so we go through life trying some of this, trying some of that, wake up when we’re 55 years old, look across the kitchen table to Loretta, and say, honey, you know, we got to get our stuff together because one of these days the pay checks will stop and we have to turn this stuff we have accumulated into income. So how do we do that. So that’s what planning is all about. So Denise and I and 10 other certified financial planners at CFG do day in and day out, for a fee, and as we like to say on Saturday morning, we do it for free. So if you have any questions regarding your personal finances, anything that’s been on your mind, anything you’ve heard, anything you want to questions about stocks and bonds and mutual funds and real estate and IRAs, your 401(k) and annuities, life insurance, reverse mortgages, all that and more. Denise and I are here to take your calls a and you can pick up the phone and dial these magic numbers.

844-220-0965.844-220-0965. We also have the text machine up here and have been writing as well. 21232, just text in your questions, keep it about 160 characters, because that’s all we can see on our screen, 21232. I will ask the question of the panel and we will get an answer right here on the radio today.
Lots of headlines this week in the news, questioning everything about the GOP health care bill, everybody’s sitting at home, going, will this affect my retirement plan.

It may, because it may, who knows what the cost of medical insurance, or medical care is going to be in the coming years and we really have to address this because as we age as a society, the baby boomers are using more and more of our retirement dollars in heath care and how do we cover those expenses. And unfortunately I think we fumbled the ball. Congress fumbled the ball this year and had an opportunity, but you know sometimes people take these entrenched feelings and get on television and say, I’m not going to do this no matter what. And then they can’t back down.

Yeah,

There’s no room for compromise and then legislation is compromise. Legislating is compromise and there was not compromising this time.

And yeah, well, go ahead, Denise, I didn’t want to bring that up to start a political conversation, but I wanted to bring it up because what’s important, one of the services you guys offer is, you don’t know what’s going to happen in 20, 30 years, and that’s why talking to a financial planner, even at this stage, where ever you are, should always be in the back of your mind, whether you’re 30 years away, 20 years away, retired now, still working on that. Trying to make your money last as long as you possibly can. And that’s what I think the biggest benefit that you guys sitting down with the Certified Financial Group to talk is.

No, <Inaudible> people don’t understand that it is going to cost about $250,000 in retirement just for health care expenses alone. So, we definitely need to plan…

Per person.

Per person

Per person.

Yeah, and that’s huge.

Huge.

Huge as they say.

Huge.

So, when I run my retirement analysis for people, I actually use the rate of inflation of anywhere between 4% and 6%, just on medical stuff. Whether it’s premiums, medical out of pocket medical expenses, it’s a big unknown for — especially me as a planner. And for people, they need to be aware of that. And everybody that I meet with, they’re like, yes, Denise, I need you to run that and let’s be real conservative, because it is what it is.

Yeah, if you don’t know where you’re going, you know any road will get you there, as they say. And that’s what planning is all about to figure out what you need to do now so you don’t look back 10 years from now and say, Gee I wish I would have known, or Gee I am sorry I did. And planning is adjusting as you go. It’s not done one time and it’s not a static look. It’s a good analysis of where you are and what you need to do and be adjusting as time goes on. As tax laws change, as health care situation changes, as portfolios change, as allocate things change in your life, at least you have a road map and you know what adjustments you need to make. Unfortunately most people kind of go through life trying some of this and trying some of that, hoping it all comes together only to find out too late that it doesn’t work.

Exactly.

So the number to call to dial us up is 844-220-0965. 844-220-0965. I know the calendar says March is about to end, April is coming. I know everybody’s had lots of questions their taxes, IRA distribution, requirements, lots of confusion out there. What are some of the questions you have been receiving the last couple days. We got a lot of them here on the show.

Well, you know if you turn 70 and a half last year and you didn’t take your required minimum distribution, your deadline to do that is April 1st, not your tax filing day, which is April 1st, which is right around the corner, which is I think next Saturday. So, you need to have that withdrawn,so if you —

Now I’ve heard —

Pardon me?

No, No,

Does the fact that it’s Saturday make a difference.

No no, no, no , no you have to have it done by then. It’s not like filing your taxes, and talk about filing your taxes, your taxes aren’t due this year until April 18th, because of the weekend and some funky holiday in Washington. I don’t know what’s going on there, but anyway.

Well, you know this time of year, Joe, is a good time to double check your Social Security statement. To confirm that it accurately reflects your earnings history and you need to continue to do this each and every tax season. Perhaps as a reminder, when you have all your documents at your finger tips and why is this important? Because your Social Security is based on your highest 35 years of earnings. What if they missed reporting a year or two, as they did with me. In 2012, they put a big fat zero and in 2015 they put a big fat zero.

Whoa.

An error in your earnings history could cost you a lot of money in retirement. And it happens.

So how do you check it.

Well, basically you will need to provide proof, and oh, yeah, get it on SSA.gov and you look at your statement. And you look at that earnings record and you see where the blanks are. So, but if this does happen to you, you will need to provide proof of earnings, a W-2 a 1099, your tax return and write to them,am requesting them to correct the information. They’ve done so for me, they will do so for you. And if you need the mailing address, feel free to e-mail me at Denise@financialgroup.com. And I will send it out.

There you go.

How many people actually get the maximum of their Social Security benefits?

Well, the high earners, because basically, what is it, 118,000 and change is what FICA is base don this year. And if you make over that, then you are paying in at the full capacity. Does that make sense?

Yeah.

But it’s based on your high 35, and of course the early years adjusted for inflation, so even if you may not have had higher earnings, back in the 35 years ago, it’s adjusted somewhat. So, many people are very close to, well, I shouldn’t say many people, but there are more people that you would thank that are getting their maximum. And as Denise and I see, oftentimes, people claim Social Security for the wrong — speaking of claiming Social Security, you and Nancy Hecht have a workshop, a what do we call that?

A boot camp.
A boot camp.

Get down and dirty with the ins and outs of Social Security and maximizing your benefits and —

Climb the nine foot wall of benefits.

Brokerage

Try to get through the confusion.

Is one of them scheduled?

It’s coming up in our office on April 20th, at 6:00, at —

You’re asking me?

Hmm,

No I am not, it just sounds like it.

So, yeah, expect to spend a good hour to an hour and a half with us and bring a lot of questions and we would be happy to go over those with you.

Leave your check book at home, this is good information that you can use, so if you are looking — staring retirement in the face. And there are a lot of different claiming strategies that have changed in the last year. Some have been eliminated, some of our favorites, but that does mean that there aren’t some that you ought to be aware of. Particularly if you are a widow, if you’re divorced, those kinds of issues. And we hold this kind of stuff in our classroom, up in Altamont Springs, right there on Douglas Avenue, south of 434. You can come on by, Denise and Nancy will provide you with some refreshments and some good information. And why do we do this, people say, we do it for basically two reasons.

1. To help you, guide you through that maze of decision that you have to make. Particularly as you get to a retirement.

2. Is to introduce youth our firm. What we do is we are financial planners and whether you need planning now or some time inn the future, perhaps you will give us an opportunity to earn your business. So once again, go to our website, that’s Financial Group.com. Financialgroup.com. CLick on workshops and everything you need to know is right there.

Hey, if you have a question for Denise Kovach or Joe Bert from Certified Financial Group, the number is 844-220-0965.844-220-0965. We had two people call in and they just wanted to know the office number so they can call right now and make an appointment. So, have a conversation with us on air today. It’s alright. 844-220-0965.844-220-0965. Text matching is up and running as well 21232. We do have a text question here coming in, we will get to that in just a moment. But did I hear, Denise, did you say that divorcees may qualify for Social Security spousal benefits?

Oh, you betcha. I was recently speaking with a woman in her mid 60’s who recently got divorced after 30 years of marriage. She was a stay at home mom, and keeper of the home, the divorce settlement, unfortunately favored her ex husband, and she was basically struggling to pay her basic living expenses. She had no idea that she was entitled to Social Security benefited based upon her ex-husband’s work record, so I explained to her that she could receive as much as 50% of what her ex-spouse is entitled to receive when he is at full retirement age. SO, here’s the low down. The maximum benefit you can get is half the amount your ex is entitled to at their full retirement age. that could be 66, 66 and months, or 67. Okay? The age of your ex when he files to begin benefits really doesn’t affect the amount you are eligible to receive. You are entitled to a divorced spouse benefit, if you are not entitled to receive a higher benefit on your own work record. You were married at least 10 years, you are both at least 62 years old and you’re still unmarried. If you get married, forget it. You’re not going to get any thing.

Really,

Absolutely.

That’s over.

That’s it.

Now survivor benefit, different, okay. And furthermore if you’ve been divorced for at least two years, your ex doesn’t have to be taking the benefit for you to go ahead and file. He doesn’t have to know about a dadgum thing. There’s no deadline for filing for spousal benefits, but you will have to prove the marriage and the dissolution the marriage.

There you go.

And you will cover all this and more at your boot camp.

You betcha.

Alright. 844-220-0965 is the number to drop in. Frank, in Deltona, Frank’s got a question. Frank you’re on WDBO with the Certified Financial Group.

Good morning how can we help you?

Hi good morning, sir, I am calling from Deltona. My question is, I’m 57 years old and I’m thinking about taking my Social Security at 62 years old and I have one pension already and I would like to know if it’s the right time at 62 or 67, in —

Well, Frank, sure, sure. Are you planning on working after 62, first of all.

I would like to stop working, I have been working my whole life, but would like to see if I can

Okay so the most we would

<Inaudible> retire.

Sure, the important thing you want to know is if you start Social Security at 62, plus your pension if you will have enough income for the next 25 years. That’s the key, right, Denise? How do we handle that if Frank was sitting in your office across the desk?

Frank, I would get to know a lot about you and your financial situation to come up with an answer for you. BUt if you are still working at 62, I wouldn’t take a benefit because you chance having to pay some or all of that back to the government if you make too much. Unless, you’re permanently reducing your payout, by 25%. So, those are two factors. Are you married, Frank?

Yes, I am.

Ok, I don’t know what your wife’s earning history is, but I can tell you that my male clients are extremely caring for their wives and wanting to protect them, so the further you wait to take your benefit the more it grows. Typically as women we outlive you guys, unfortunately, but at your death, what you have done is create a nice Social Security benefit for your wife that she can step into. So even of you could wait to age 70, if it makes sense, this is really a personal kind of decision, but if you wait to 70, then from age 67 to 70 it’s going to grow 8% per year, that’s 24%. So, you’re not going to get that kind of match anywhere.

Well, that’s pretty good.

But <Inaudible> your situation.

Frank, what you don’t — Let me tell you what you don’t want to do, Frank, you don’t want to estimate what you need to do. And these are the toughest cases that Denise and I have worked on. Our clients that have done what we call back of the envelop financial planning, which means that they’ve kind of looked at that’d their monthly expenses are, if the gasoline, groceries, electricity, all that stuff, and they say, well, I’m going to get this much from pension, I’m going to get this much from Social Security, we’re going to be ok. Only to find out five or six years into retirement the wheels are coming off, they should have worked longer, they shouldn’t have taken Social Security so soon and really have to make some major lifestyle changes. So before you pull that trigger, before you make that irreversible decision, about retiring and starting Social Security, please sit down with a certified financial planner. Have him or her charge you a fee for their services, you don’t want to go somewhere, go to one of these seminars where they’re going to sell you some product that’s going to be the end all be all, only to find out that doesn’t work. but you need to have a road map, a guide, and that’s what planning is all about. that’s what Denise and I do day in and day out. And we would be delighted to work with you. Just go to our website, that’s FinancialGroup.com, to get more information.

Get the phone number.

One of the things people disregard, or don’t even think of is inflation. Okay, the dollar to day is not going to be worth a dollar five years, ten years from now. So, that’s something to conspire as well. And, Frank, that’s what we do plug into our analysis, along with other variables that people need to thing about.

Like taxes.

Oh, boy.

Taxes, people forget their Social Security can be subject to tax.

MmHmm,

Absolutely.

So factor it in, but Frank, before you launch off, get yourself a plan an we would be glad to help you in that regard. And thanks for the call.

Appreciate it Frank, if you wants Franks line it’s 844-220-0965.844-220-0965. We are planning tomorrow today.

We are Certified Financial Group on WDBO.

Now, the three things you need to know. Three. Now that the republican health care bill is dead, we check in the news at 9:30, what could happen with the white house effort to reform taxes. Two, the NAACP is taking the position the governors decision to remove Orange county state attorney from the death penalty cases. One, there is a smell of smoke in the air in Orlando. And I will tell you where it’s coming from. Right now there’s no rain on News 96.5, WDBO. With your action weather radar. Partly sunny, 67 in Orlando.

We’re on high alert. In <Inaudible> stretched and <Inaudible> and members of the public is <Inaudible>North Korea, they have attempted to launch an intermediate range ballistic missiles. <Inaudible> Not smart not smart at all. <Inaudible> <Inaudible> THey will all move forward today. this is where Orlando turns first for breaking news. News 96.5, WDBO.

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Information presented on this program is believed to be factual and up to date, but we do not guarantee its accuracy, and it should not be regarding as a complete analysis of the subjects discussed. Discussions and answers to questions do not involved the rendering of personalized investment advice but is limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Certified Advisory Corp is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.

This hour was paid for by the host and does not reflect the opinion of <Inaudible> 96.5.

We are on high alert.

North Korea.

They have attempted to launch those <Inaudible> intermediate range <Inaudible>

<Inaudible> Not smart at all.

Stay vigilant. Stay connected.

This is where Orlando turns first for breaking news, News 96.5, WBDO.

Welcome back to On the Money here on News 96.5, WBDO’s Ask the Experts weekend. Joe Bert, Denise Kovach from the Certified Financial Group are here in the studio, taking your phone calls at 844-220-0965, 844-220-0965. We are three minutes away from <Inaudible> news, weather <Inaudible> with Dave Wall in the News 96.5 news room. Joe Bert, why are we listening to Abba?

We’re listening to that as a reminder to our listeners that, May the 6th, once again, Certified Financial Group is a proud sponsor of the annual Concert at the Springs Community in Longwood, this year, featuring the music of Abba. It’s going to be a great night under the stars. Bring your blanket and your adult beverage, kick back, and listen to a tremendous tribute band backed by the full complement of the Orlando Philharmonic Orchestra <Inaudible>. And it’ll be a wonderful evening. Tickets are still on sale, but they are going fast. In fact, I was at a meeting the other night. The ticket sales are 50% ahead of where they were last year.

Ooh.

Really?

So tickets are going very, very fast.

<Inaudible> So, if you want to come, you need to get online. Go to our website, financialgroup.com, financialgroup.com, and you can click on the link right there, or you can go to our Facebook page and register to win two free tickets. So go to our Facebook page, Certified Financial Group, or go to our website if you want to buy some tickets and click on the link right there. It’ll get you right there. Once again, that’s May the 6th at the Springs Community in Longwood, a wonderful evening under the stars with a blanket with your adult beverage and loved one.

All right. Well, let’s get back to our phone callers. Colleen in Orlando, you’re on with the Certified Financial Group. Colleen.

Well, hello, there.

Good morning.

Good morning. How can we help you?

<Inaudible> Well, I am a — <Inaudible> a scheduled pension. And when went down to collect my husband’s Social Security when he passed away, they told me I wasn’t entitled to it because I have a scheduled pension. I’m under TSR <?>.

Uh-huh.

So why is that?

Well, Colleen, you didn’t — well, it’s a good problem to have because you’ve got a great pension. But, over the years, you didn’t pay into Social Security, did you?

No, but <Inaudible> I did. My husband did.

Okay.

But you did not, and this is subject to what is called the government pension offset provision, where, if your pension is too much, there’s a calculation that is used to determine how much of a spousal or survivor benefit you’re entitled to. So, apparently, your pension is large enough that it offsets being able to receive that.

Yeah, that’s pretty much what I was told. I mean, I don’t think it’s fair because what happened to all the money that I put into it and he put into it?

Yeah, it’s the way the government works. But, unfortunately, that’s the way — you’ve got to get the offset because you get — basically, she has a greater benefit than she would’ve gotten from her spouse.

Right.

Is that right? She’s getting a greater benefit from her pension that she would’ve gotten as a survivor benefit from her spouse.

I would imagine.

That’s probably what the situation is.

All right, Colleen. Thanks so much for the phone call. If you want call in live, it’s 844-220-0965, 844-220-0965. We also have some text questions, and we will get to those on the other side of the latest news, weather and traffic. We are planning tomorrow —

Hey!

Hey.

With the Certified Financial Group on WDBO.

This is News 96.5, WDBO, where Orlando turns first for breaking news, weather and traffic 24 hours a day.

Live team coverage starts now.

9:30, News 96.5, WDBO. Our top story, after yesterday’s defeat of the American Healthcare Act, the White House is walking away from its bid to repeal Obamacare. President Trump is saying he now his sights trained on tackling tax reform.

If they thought that healthcare reform was a tall order, revisiting Obamacare, which was just passed a number of years ago, they’ve got another thing coming. All of the interest groups and the special interest that President Trump railed against on the campaign trail will completing into plan on tax reform. And it’s likely to be a very tough battle.

That’s ABC’s David Rice reporting from the White House.

News 96.5, WBDO, where Orlando turns first for breaking news.

Partly cloudy with a 10% chance of passing shower. Still a bit breezy but mild with highs around 82. From Channel Nine, I’m meteorologist Brian Shield.

I’ve Dave Wald <Inaudible> on News 96.5, WDBO, and our active weather radar right now is partly sunny and 67 in Orlando. On the Money with the Certified Financial Group just a couple minutes away. Education Secretary Betsy Devoss meeting with students at the <Inaudible> campus of <Inaudible> College on Friday.

I’m learning a lot by coming here today, and I’m going to be able to take the information and the learning that I have gained today and be able to talk about it more broadly.

<Inaudible> news, the president’s plan for education will pour more money into school choice. Friends of the Utah man killed in Wednesday’s terror attack in London are getting together to raise money for his family.

We can’t forget about the <Inaudible> I know where Kurt is now, and now, we’re just trying to <Inaudible> and then doing whatever we can to help her.

Kurt and Melissa Cochran were celebrating their 25th wedding anniversary in London when Kaleed Massud ran them down in an SUV on the Westminster Bridge. Kurt was killed at the scene. Melissa remains hospitalized. It is 9:32 with news 96.5, WDBO.

Are you losing sleep, tossing and turning? Well, this isn’t an add for a new pillow or mattress. It’s an offer to help put your mind at ease. In a recent survey, 40% of Americans said they are unsure if they will have enough money to last them through retirement. After all, they don’t teach us this stuff in school, and many of us go through life trying some of this and some of that only to wake up in the middle of the night worrying that our financial life could just be a collection of financial accidents. For nearly 40 years, certified financial planner professionals at Certified Financial Group have been providing retirement planning and investment advice for a fee, and they can probably help you get a good night’s rest, too. Working on your behalf for a fee, they won’t be trying to sell you something. So forget the new mattress and get a complimentary consultation right now. Call 407-869-9800. That’s 407-869-9800 or 1-800-EXECUTE, as if you’re executing a financial plan. Certified Financial Group, where they’re planning tomorrow today. Online at financialgroup.com. Fee-only planning and investment management through Certified Advisory Corp, a registered investment group, financialgroup.com.

This is the time of the year that you need to call Rhino Shield and get your home repainted with Rhino Shield. And with Rhino Shield, it’s really set it and forget it. I mean, you’re going to do it once, and you’re not going to mess with it for a couple of decades. Rhino Shield comes with a 25-year transferable warranty. Call right now at 844-GO-RHINO or go to rhinoshieldflorida.com. Rhino Shield comes in any color, goes on any surface. 844-GO-RHINO or go to rhinoshieldflorida.com.

In a recent survey, 40% of Americans said they are unsure if they’ll have enough money to last them through retirement. For nearly 40 years, certified financial planner professionals at Certified Financial Group have been providing retirement planning and investment advice for a fee. And because they’re working on your behalf for a fee, they won’t try to sell you something. Get a complimentary consultation by calling 407-869-9800 or 1-800-EXECUTE. Certified Financial Group, where they’re planning tomorrow today. Online at financialgroup.com. Fee-only planning and investment management through Certified Advisory Corp, a registered investment advisor.

Hey, it’s <Inaudible> Jerry. This is where Orlando turns first for breaking news, weather and traffic: News 96.5, WDBO.

It’ll be pretty nice today, breezy under partly cloudy skies, a 10% chance of a passing shower, highs around 82. Tonight, some patchy fog developing. We’re down to 62. And warmer on our Sunday, mix of sun and clouds, highs around 83. From Channel Nine, I’m meteorologist Brian Shield.

<Inaudible> Security Triple <Inaudible> traffic.

Still dealing with a serious accident on Turkey Lake Road at Stanley Road. That’s blocking a right lane. expect slowdowns in that area. Also, we have a new accident that’s blocking a lane on Colonial Drive. This is east of <Inaudible> Road.

Triple <Inaudible> Traffic on <Inaudible> News 96.5, WDBO.

This is Severe Weather Center Nine chief meteorologist Tom Perry. This is where Orlando turns first for breaking news, weather and traffic: News 96.5, WDBO.

Hey, it’s Joe Kelly. Join me for Orlando’s morning news every weekday morning starting at 5:00. Listen when you wake up using your News 96.5 app then on your radio when you get in the car. I’ll make sure you get to work on time with Triple Team <?> Traffic and the best coverage of the I-4 ultimate project.

Now, our Ask the Experts weekend continues on News 96.5, WDBO.

So welcome back. This is On the Money with the Certified Financial Group here on News 96.5, WBDO. We are talking with Joe Bert and Denise Kovach, taking your phone calls at 844-220-0965, 844-220-0965, or the text machine is up and running, as well, 21232. Joe Bert, for those who just joined us during the latest news, weather and traffic, what can the audience call you about today?

They can call us about anything that’s on your mind regarding your personal finances, questions that might be lingering back there about what do I do with my Social Security, how do I get Social Security, when am I eligible for Social Security. I’ve got an IRA, a 401(k), an annuity, life insurance, reverse mortgage question, missing insurance, anyway, insurance again.

It’s okay.

Anything else that might be on your mind. So we’re here to take your questions. And the good news for you, the lines are absolutely wide open. And all you have to do is pick up the phone. You don’t even have to give us your real name. You can pretend you’re Jack or Daphne or Loretta or Laverne or something.

I always <Inaudible> the names he comes up with.

Yeah.

Yeah, 844-220-0965. 844-220-0965. Again, the text machine is up and running, as well, 21232. All right, we’ve got a couple of text questions here for you, guys.

Let’s do it.

Let’s start here with the first one. I received a check for over $100,000 from my 401(k). What’s the best way to invest for the future?

Oh. Well, let’s clarify this. We hope that he didn’t receive the check payable to him or her.

I hope not.

They texted and said, by the way, I’m 54 years old.

Oh.

Oh. But, again, it depends on how he got that check. Did he lose — did he go to another job? Did he lose his job and therefore request a rollover check made payable to a custodian such as Fidelity Investments? Did we deposit it into a rollover IRA? Or did he take that in cash?

Let’s hope not.

Because that 100,000 is net of, what, 100 — let’s gross up 20% because the IRS would’ve taken it.

It’s going to take — yeah. It’s going to take 20% from — well, if he netted <Inaudible> Actually, about 125 is what the gross amount was. He ended up with 100. So he’s paid taxes, had taxes withheld plus the penalty on top of that. Not good.

Yeah, and the 10% penalty, if that’s the case. I bet he’s got a rollover check.

Let’s hope that’s not the case. Let’s hope that he has a check payable from his old 401(k) payable to a new IRA custodian that will be rolled over into an IRA, and he will avoid the taxes and penalties. And the question is what do I do with it. How do I invest it?

Mutual funds, a very well diversified portfolio of mutual funds.

And why mutual funds?

Well, because, instead of owning one stock, you own hundreds.

And why does he even want to own stocks?

Because that’s where the growth is.

Exactly.

Over time. Over time. So go have somebody like us build a portfolio for you and help you along your journey to retirement.

So what you need to do is get growth on your dollars. You can’t afford to invest your dollars at 1%, 2%, and hope to get there. It’s just not going to work. So you have to — and what you really want to do is you want to own businesses. You want to own pieces of companies spread all over the world that are providing refrigerators and tires and cars and computers and all kinds of stuff to a growing world population. And you want to own pieces of those companies. And as those companies grow, your portfolio will grow over time. There’s never a straight line. It never goes straight up. If it was, investing would be easy, and everybody would be another Warren Buffet. But the key is that you need to be diversified with quality, and in the long run, you will have success. So that’s what we would do for him or her. We would guide them to determine what they need, what their retirement outlook or <Inaudible> it is when you just start taking this money and what other assets they might have and what their plans are in retirement. But you need to have diversification. You need to have growth in your portfolio. And the best way to do that is <Inaudible> the portfolio to have high-quality mutual funds and some of the best money managers in the world. That’s what we do day in and day out.

Yeah. All right. We’ve got some more text questions in at 21232, but let’s get back to our phone lines at 844-220-0965. 844-220-0965. Phil in Orlando’s got a question for you guys. Phil, you’re on with Certified Financial Group on WDBO.

Good morning, Phil.

Hey, Phil.

Hey. Hello. How are you?

Good. What’s up?

Currently, I’m 59 years old. My pension was made available to me. It’s about $0.25M. And I wanted to know — they offered me a Roth IRA or regular IRA, and I want to put it in somewhere where I can, at 59 and a half, take out enough of that money to pay off my house and start using my house payment, putting that in retirement. So what do you think is the best way to do that?

Well, first of all, I’d stay away from the Roth. Do you know why?

No.

Because whatever you put in the Roth, you put that 100 — I don’t know how much you — $0.25M, right?

Yeah.

Is that what you said?

Right.

You’re going to give up about 30% of that right off the top in taxes. So you give up about $75,000. Would you like a 30% drop in your portfolio overnight?

No, no. I don’t want that.

Okay, so you don’t want to do a Roth. The best thing to do is roll it into an IRA, right, Denise?

A rollover IRA.

You take it from there.

Yep. It’s a tax-free transfer, if you will. It’s called a rollover IRA. That’s what you want to do. As far as paying off your mortgage, you should’ve seen Joe’s head and my head. We just both swung our heads when we heard that because that is not a beneficial thing for you to do. Why, Jim?

Well, because you’re going to need to draw from that account somewhere down the road, and if you part-time all your money in your house, you can’t go to the kitchen sink, turn on the faucet, and get cash flow. You’ll get water flow, but you’re not getting any cash flow. So you need to have that money liquid. You need to be able to draw from it. And the house will be there. You’ll continue to make those payments. I know, psychologically, people want to have the house paid for. Financially, oftentimes, it doesn’t make sense. Unless you have a high interest rate, which, hopefully, you’ve been able to refinance in this low market, that you don’t have that. So the best thing to do is to roll that into an IRA, as Denise suggested, don’t do a Roth, have enough diversified, and continue living in your house. And then, somewhere down the road, if you need to, you can always pull equity out of your house that you have built up, use a reverse mortgage to supplement your income.

Because how much is it going to cost for him to —

Yeah, pay off the mortgage.

To pay off the mortgage.

Yeah.

Basically, it’s going to cost him — it’s going to be considered — the withdraw will be considered ordinary income tax. It’s going to probably pop you into a different tax bracket. So let’s say, if you owe $100,000 on your home and you’re in the 25% marginal tax bracket, that could be, let’s just say for convenience, $25,000.

Sure.

So 25% versus a 3% to 4% mortgage rate, I’d really look at that.

You know, there’s people on the radio, and I know them, we know their names, that suggest that you want to have your house paid for. And I understand, psychologically, that’s a great thing to do, but financially, it oftentimes does not make sense. And then that goes contrary to what <Inaudible> hear on the radio, but you really want to look at having some liquidity because the worst thing — then what happens, you know what happens. Then people have their house paid for, and then they need money for medical expenses or whatever. And then they take out a home equity line, okay, and they do <Inaudible>. And then you end up with mortgage payments when you’re 75 years old. So that doesn’t <Inaudible> either.

A reverse mortgage might make sense.

A reverse mortgage might — so you have no — you have no payments. And that only works if you plan to be in your house for the rest of your life and you understand the rules of a reverse mortgage. Doesn’t work in all cases, but in many cases, it does.

Okay, Phil. I hope that helps you, Phil. Good luck. We appreciate the call. If you want Phil’s line, it’s 844-220-0965. 844-220-0965. Text a question in at 21232. I met a guy who guarantees 32% return on an annuity over the next 10 years. Should I buy it?

You know, it reminds me of meeting somebody in the alley, and they roll up their sleeves. I’ve got something here that I want to sell you. A 32% return on my money over 10 years. Now, if he’s talking about a 32% per year annual return, you just turn around and walk away. If he’s talking about a 32% increase on your money, so you put in 100,000, and 10 years from now, it’s worth 132,000, that’s a compound return of around 3% a year, which is no big deal.

Exactly, 3.20.

Yes, yes. Well, if you’re compounding, it’s probably less than 3.2. But nevertheless, that’s no big change. So you’re tying up your money for 10 years for a 3% return. That’s no big deal.

It’s like some kind of an annuity.

Oh, it is an annuity. Yeah, that’s what he suggested. But if he’s talking about 32% return, you want to say no, not only no, but hell, no. It’s just not a good idea.

And especially for 10 years. Could you imagine —

Yeah.

What the person trying to sell that is going to be making?

Yes.

And everybody has a right to make money, but is that really appropriate? No.

And it’s guaranteed for 10 years. You get your money back. It’s going to compound tax-deferred. It’s protected from creditors. But, if you think interest rates are going to be going up in the next three or four years, you’ll be looking back at that annuity that you bought with a 3% guarantee when you could’ve got 4% or 5% or 6%, probably not a good idea.

Yep.

So I was going to say, 844-220-0965. Emily in Orlando’s got a Social Security disability question for you guys. Emily, you’re on the Certified Financial Group.

Hi.

Good morning.

I was wondering if — I really just wanted to see if you could tell me why I can’t collect a veteran’s check like my sister does. My sister and I both have the same — The same things have gone on. We both lost our husbands, they’re both veterans, we’re both collecting Social Security. We’re both in our 70s and he got a VA check every month where I don’t collect a VA check. So I was just wondering if you could tell me — I know there’s probably a simple reason why, but I don’t know what it is.

Well, did your — both of your husbands die under the same circumstances. Of natural causes, or killed in battle, or what do we have going on here. Not that it makes a difference, I’m just curious.

Yes, my husband died of cancer and her husband died of a complications from a heart <?> operation.

Okay natural causes. So they both — they’re both veterans, both died of natural causes. Your sister is getting a VA benefit and you’re not.

Yeah.

And you want to know why. I can’t answer that for you. However, that’s the bad news. The good news is, we work with an attorney who’s a specialist in VA benefits. So if you want to call our office on Monday, we’d be glad to give you that information and she will be glad to help you in that and work through that maze that’s called Veteran’s Administration.

Alright.

Okay Emily, call our office, 407-869-9800. Go to our website, that’s financialgroup.com and you can get some information there and we’ll be glad to pass you on to the attorney that specializes in it.

Give her the number one more time.

407-869-9800.

Alright, Emily, thank you so much for the call. If you want Emily’s line, it’s 844-220-0965. 844-220-0965. Back to the text machine at 21232. Thanks for writing in <?> 34, single, no debt, when could I retire? 100K in savings. 25K Roth IRA, 190K at a 401(k).

Well we kind of ran the numbers. I mean, over the next 32 years, without him putting — or her putting any more money into those accounts that are 7% rate of return average, that amount, which is 315,000 will grow into a little over 2.7M. Okay.

32 years. Here’s the interesting thing about that. 2.7M

Yes.

In 32 years.

Yes.

Okay. If you did it in 30 years, you have 2.4M. Those last two years, $300,000 difference and that’s what the beauty of compound interest is. It’s like a snowball. You get that snowball growing, and it is multiplies a lot faster once you get it bigger. And so it’s — this is what planning is all about. This is why people make the wrong decisions at the wrong time. They don’t realize making that decision of retiring early, what they’re leaving on the table, because then you just start drawing from their benefit.

Right.

And that’s use — and people are saying well, <Inaudible> where am I going to get a 7% return on my money. My CEs are only paying 1.5%.

What did we talk about earlier?

<Inaudible> that.

Right.

I said diversified portfolio of quality mutual funds.

Yes, and historically, you’ve been able to do — you know if we’d have plugged in the historical returns had been a lot more than that, but just conservatively, a 7% return long-term, that’s what that money will grow to, and that’s assuming, as you said, they don’t do anything to it. Now the question is, can they retire.

Well that depends on her lifestyle.

Bingo.

Expenditures are going to be a huge thing.

Bingo.

Well that’s why they should give you a call. What’s the number to do that?

It’s going to be 407-869-9800 or 1-800-execute.

Alright, we got a couple of people on line. We’re going to get you screened <?> so we can get your question answered in the last segment. If you want to join them, 844-220-0965. Right now we’ve paused to get the three big things you need to know.

Now, the three big things you need to know.

Three.

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Two.

A no go for health care repeal and replacement at the white house now, taking on tax reform.

One.

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A federal judge in Hawaii deals a blow to President Trump travel ban.

The order is blocked, with a watered down version of the first order. And let me tell you something, I think we ought to go back to the first one and go all the way.

President Trump fights back.

We’re talking about the safety of our nation.

This is where Orlando turns first to hear the latest developments in the Trump white house. New ninety six five, WDBO.

In a recent survey, 40% of Americans said they’re unsure if they’ll have enough money to last them through retirement. For nearly 40 years, certified financial planner professionals of certified financial group have been providing retirement planning and investment advice for a fee, and because they’re working on your behalf for a fee, they won’t try to sell you something. Get a complimentary consultation by calling 407-869-9800 or 1-800-execute. Certified financial group. For their planning tomorrow today. Online at financialgroup.com. Fee only. <Inaudible> management. For a certified advisory <Inaudible> registered investment advisor.

I want to wish a happy 40th anniversary to the great folks at S&W Kitchens. <Inaudible> back and I can tell you this. You don’t stick around doing what S&W Kitchens has been doing since 1977 without doing it the right away. Look, we have had our kitchen, our new bathrooms remodeled by S&W Kitchens. We could not be happier. Zero surprises with the project because we agreed to everything before hand with Tim and our designer, Krista. The work was done quietly, efficiently. The craftsmanship, it was just second to none. We were really really impressed. S&W Kitchens. They will do the same for you. If you’ve been thinking about transforming that <Inaudible> bathroom, the kitchen, now is the time to do it. Locally family owned since 1977. Visit the updated website. Sandwkitchens.com or call them at 407-487-4901. Live showrooms coast to coast from Ocala to Okechobee. S&W Kitchens is simply wonderful.

Attention home buyers and real estate agents. In this hot market, you need the buyer ready program from People’s Bank. Hi, Cleave Loveland, from People’s Bank. With buyer ready, underwriting is done up front. So with buyer ready, your offer gets accepted because it’s an actual loan commitment, not just a pre qualification. People’s Bank can also rescue loans denied by other lenders. To call People’s Bank now, 407-688-8268. That’s 407-688-8268 and ask about buyer ready. People’s Bank is an equal housing lender. FDIC ensured.

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Good morning, central Florida. Tim Patteraki of Accurate Window And Door. Part of the Florida Homes and Gardens show coming up next year on News ninety six five. We are central Florida’s oldest home improvement radio show, and we always have a group of the best in the business to talk about how to make your home better and more enjoyable. Not only will we take your calls and give you great advice on windows and doors from your home. We’ll also have experts on any plumbing issues or projects you may have. And, we’ll talk about the latest tech and trends in solar energy for your home. Plus, we’ll tell you how to transform your home with stunning kitchen and bath makeovers. These are people who really know their stuff, and they’re ready to share their expertise with you. So join me, Tim Patteraki of Accurate Window And Door, this morning and every Saturday morning at 10:00am for the Florida Homes and Garden show, coming up next her on News ninety six five.

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Hey, welcome back on the money here over by the Certified Financial Group here on news ninety six five, WDBO. It’s our last segment. Last segment with Certified Financial Group <Inaudible> planning tomorrow.

Today.

And if you want to join us, 844-220-0965. If you are on hold, hang on the line. We’ll get to your question in just a moment, but first, we wanted to talk about the workshops coming up real quick.

Got a couple of workshops in Easton. Nancy are doing their Social Security boot camp on the April the 20th at our office at 6:00. Go to our website, financialgroup.com for more information. And we have our annual shredding event that we hold at our office in Elsemont Springs. Brink two banker’s boxes, you’ll be able to see your safe or your secret <Inaudible> confidential —

Confidential

<Inaudible> shredded right before your eyes. Big industrial shredder truck will be there, you can drop it off, just two banker’s boxes and for more information, once again, go to our website, it’s right on the homepage, and tell you everything you need to know. That’s April 22nd, Saturday after the traditional tax day of April 15th.

Alright, let’s go to Lisa. <Inaudible> beach. Lisa, you’re on with Certified Financial Group.

Lisa, good morning.

Good morning.

How can I help you.

I have a question about my husband’s Social Security passed away a little over a year ago and at the time, I was a resident in Alaska and so I called about it, and I was 58 at the time. Or 59 actually, and then they said I couldn’t collect the Social Security until I turned 60 and make less than 15,000 a year. So is that — and then the second question is now that I’m a resident of Florida, can I apply for it in Florida and not in Alaska.

Well Lisa, first of all, I’m very sorry for your loss.

Yeah. <Inaudible> unless you are disabled, at which <Inaudible> entitles you to receive a benefit at age 50, as early as age 50, the earliest that you can take that benefit, it’s called a survivor benefit is age 60. However, in doing so, you only receive 71.5% of the benefit. So excuse me. It might not be in your best interest to do that. And what they were referring to about that $15,000 bill is if you’re still working, and you take a benefit prior to full retirement age, you may have to pay some or all of that back to the government if you make too much money. So that’s what they were referring to. What I would suggest, give us a call at the office. We help people in working with them with Social Security benefits and maximizing things and so forth. Feel free to give us a call and meet with a planner and see what your options are.

Just — but your state of residence has nothing to do with your Social Security <Background Noise>

Absolutely.

<Inaudible> so thanks so much for the call. Let’s get to Jack’s got an IRA question. Jack, go ahead, you’re on the Certified Financial Group.

Morning Jack.

Hey Jack.

Hello, Jack. Jack, you there?

Jack was —

Jack —

Yes I’m here, yes I’m here.

Go ahead.

Turn down your radio, Jack <Background Noise>

Sorry about that. I was curious, <Inaudible> a pension that’s in — that’s freezing at the end of the year and I was — I had heard something about rolling over to an IRA. Is that something that would be — behoove me, or is that —

It may, the pension may allow you to roll it into an IRA. You’ll avoid the taxes. You take full control, and then you’ll have to make investment decisions as to how to invest that. The good news there, when you pass away, whatever’s left will go to your survivors as opposed to taking the pension, which will stop at your death, or if you take the survivor option, it’ll go to your spouse or some —

My spouse, correct.

Yeah.

Correct.

So it all depends on —

That’s why I was curious.

Yeah you know it all depends, Jack, too, on the stability of the company. Because pensions are not — they are guaranteed by the Pension Benefits Guarantee Corporation to some degree, but a lot of pension today are <Background Noise> a lot of pressure on the PBGC, so you want to look at that really really closely. Because you’re looking at a pension to be paid out for the next 25, 30 years, may not — there’s no guarantee that it’ll be there.

Right. Well thank you, I appreciate it.

Okay Jack, thanks for the call.

Alright, Jack. We’ve got about a minute left. I want to get to one last texter here. I’m 23 and have 30K to invest, what should I do.

You’re 23 and 30K to invest. Well, hopefully you have some money set aside for emergencies. The rest of that, I would look at trying to set aside some money into — depending your tax bracket, you may want to use a Roth if you’re in the 10% tax bracket or use a traditional IRA or start to take money out of your paycheck and put it into a 401(k), you can’t go directly, but what you’ll do is reduce your take home pay and use that $20,000 to supplement what you’re not bringing home. Or call our office. <Inaudible>

The number to call the office

<Inaudible> the answer right there.

Well we got 20 seconds, Rebecca, Linda, hang on the line, you’ll get a private consultation off the air. Everyone else, we’ll see you right back here next Saturday at 9:00 or if you want to call the financial group, Joe, what’s the number to do that.

407-869-9800 or on the web at financialgroup.com.

We are planning tomorrow —

Today <?>

With Certified Financial Group on WDBL <sp?>

My oh my —

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