Hosts: Nancy Hecht, CFP®, AIF® and Joe Bert, CFP®, AIF®
Yes indeed, it’s an Ask the Experts weekend on News 96.5 WDBO, and this is On The Money brought to you by Central Florida’s oldest and largest independent firm of certified financial planning professionals, that being the Certified Financial Group in Altamonte Springs. With us this morning we have two of the certificate financial planning professionals. Say good morning to Nancy Hecht.
Good morning Nancy Hecht.
Good morning.
And Joe Bert is back with us in the studio. Hi Joe.
Good morning. Good to be here.
Good morning Joe Bert.
Good morning.
Joe and Nancy are in my eyes the A team.
I’ll take that.
Not that that’s any diss to anybody else with the group.
That’s <Inaudible> an A team of 12.
Yes you do, absolutely.
So how’ve you been Nancy.
Pretty good. <Inaudible> is the cold. And I know it’s going to get colder but I’m tired of the cold.
Yeah. Well, tell everybody what kind of telephone calls do we take care. Joe, Nancy?
Nancy and I are here to take any questions that you might have regarding your personal finances.
As we say, we go through life hoping that we can have a decent retirement. We work hard all our lives trying to accumulate some wealth because at some point in time the paychecks will stop, and when the paychecks stops we have Social Security plus whatever else we’ve been able to save and accumulate in our lifetime. Unfortunately, they don’t teach us how to do that in school, and then we go through life trying some of this, trying some of that, reading Money Magazine, talking to our brother-in-law, our stock broker, our coworkers, anybody else that has a tip or an idea, and we wake up one day finding we have a collection of financial axes <?>. Nancy and I are flinging the doors open to the repair shop this morning to answer any questions that might be on your mind regarding your personal financial decisions that you might be contemplating, and oftentimes revolves around decisions that you have to make around stocks and bonds and mutual funds and real estate and IRA and 401(k) and annuities and life insurance and reverse mortgages, and all that and more. We are here, and the good news for you is that the lines are wide open and all we have to do is pick up the phone and dial.
844-220-0965. 844-220-0965. Or from your mobile device you can text us. Send us a short text at 21232. 21231. Or if you want to have your voice become part of the program, you can use the Open Mic feature. You can find that on the News 96.5 app. Let’s get right to it. Debbie’s on the line and wants to ask you a question.
Hi Debbie.
Hi, how are you this morning.
Good morning. How can we help you?
Good. I have a question. My brother is disabled and he’s been collecting off my father’s Social Security since he was age five. I’m trying to get him on Social Security disability. Do you know if it’s all right that he has money in the bank, that he would be denied?
No, I don’t believe that has anything to do with your assets.
Okay. Because — he collects off my dad.
Does <Inaudible>.
And if he was able to get more due to Social Security disability, but I’m afraid that because he has money in his savings that <Inaudible>.
I don’t — we’ll double check that at the break here, Debbie, but I don’t believe that has anything to do with assets.
No.
It’s kind of like Obamacare. You could have a gazillion dollars in the bank and you can —
<Inaudible> income.
— and you can still qualify for a subsidy.
Right, right. Debbie, it’s dependent — it’s income and it’s — whatever cash or income would come in his name. That’s —
He only collects 550 a month off of my dad’s Social Security, so I thought maybe — someone told me that he could probably get more if he went on Social Security disability because he was labeled mentally retarded at age five.
Right. Well, first of all —
So I’m afraid like when —
I’m sorry, go on.
I’m afraid if I go — when I have to go to my appointment at Social Security, that they’re going to deny him when I show up, they ask for his bank statement.
It’s going to be more dependent on the income that he receives from the assets that he holds versus the amount of assets, but as Joe said we’ll double check.
Okay, so you’ll tell me while the show’s on.
Right, right. So —
Yes. We’ll get a crack research team on this and get it done for you.
I appreciate that. Thanks very much.
Okay, thanks for calling Debbie.
Okay <Inaudible>. By the way, I’d be remiss if I didn’t point out that Nancy, you and your colleague Denise Kogoch are having a Social Security Bootcamp planning strategy coming up soon.
Yes, we are. That next one is Thursday, January 28th. It’s from 6:00 to 7:30 in our offices. We will serve light refreshments. Come with your questions. It’s an opportunity for people to get some up-to-date Social Security information and check us out, learn a little bit about us, see where our offices are and have some questions answered.
Really with so much at stake, when and how to take Social Security. By the way, you can find out all about that at the website <Inaudible>.
Yes. If they just go to financialgroup.com, they’ll be the information on our upcoming Social Security Bootcamp, all of the other upcoming seminars. They can take a look at who we are. There’s a little two-minute video on our firm and our ideologies, all of the white papers and this weeks must-reads. There’s a ton of information at financialgroup.com. And if somebody wanted to schedule a complimentary consultation, there’s a tab for that also.
Okay. 9:12. 12 minutes after 9:00 on News 96.5 WDVO. Dave Wahl is in the news room. Of course we’re keeping an eye on the weather this weekend. He’s catching news about some potentially sever weather coming our way in the not too distant future, so stick around. Coming up in a little over five minutes from now he’ll tell you about that. Let’s go to Scott in Orland. Good morning Scott.
Hi there Scott.
Good morning.
Good morning.
How are you?
Fine, thank you. Happy new year.
Happy new year to you. What can we do for you?
In this economy that we’re in right now, I’m frustrate a little bit with — would it be better to hold onto some rental property that I own free and clear or to divest myself of that and invest it in some other — some other way.
What other way.
Well, I don’t know what other way is there, so out in bonds, ETFs, indexed funds, mutual funds.
Certainly, financial assets are on sale right now. May I ask how old you are, Scott?
- Okay. And are you still working?
No.
Okay, so you’re retired. Okay. The rental property is something that you manage yourself.
Yes.
So you’re reaping some nice tax benefits from that. Is decline in the markets, in the standard stocks and bonds, is that what is making you think of getting out of real estate and taking advantage of some securities that are on sale? Why is this question coming to mind.
Well, I think you get a lot of information about the economy tanking and the stocks and bonds and what have you are probably going to take some losses here and what have you. They do from time to time. It gets to be a little bit of a bother too and I just wondered if it’d be financially — it would be for me to be in a better position just not to have the properties and just have the money invested and go that way.
Do you have a regular renter. Do you have problems <Inaudible>.
How many properties do you have?
Well, I own two homes and then I have two rental properties.
So you have two rentals that are providing you income, I presume?
Yes.
You said you own those free and clear.
Okay. The other thing on real estate you have to look at, there’s a lot of variables as you know in real estate. You’ve got property taxes. You’ve got insurance. You have maintenance. The most important thing is, is the potential appreciation of that property, because depending on its location you could reap the benefits of growth on the property. Conversely, if you’re in an area where you’ve got declining property values, you can see the value in that property staying flat or declining over the years. So that’s a variable that only you can answer.
Scott, did you buy the property for income or did you buy them for potential growth long-term? Or did you not even think about either of those questions?
Probably not, but probably if I had to pick one I would pick the income.
Okay. You have regular renters? You’ve not had a problem keeping them rented and having people pay the rent on time?
That’s true.
If the properties are serving the purpose under which you had originally purchased them, I — at this time I don’t see a reason to change them unless of course it’s becoming burdensome for you to maintain the properties.
What’s your net after-tax income? What’s your net operating income on these property. First of all, what are they worth?
They’re probably — probably the two of them would be worth 400 altogether.
Okay, and how much income are you deriving from them after expenses.
About seventeen five.
Per year?
Yes.
You’re looking at about a 4%-$4.5% rate of return on your money and your depreciating the properties, I presume?
Well, I have an accountant take care of that and I’ve met him for a number of years so I don’t know if they’ve been depreciated out.
Okay, Okay. You’ve got about 4.5% net cash flow after all expenses. He says he has it. Okay, that’s not bad.
Not at all.
Plus you’ve got the growth — hopefully the potential growth on the property. So herein lies the rub. As I said earlier, if those properties are hopefully increasing in value, it’s not a bad investment. Now, the other side of the coin is if you’ve got the aggravation —
Right.
— Of managing the properties that’s a whole different speed <?> then you have to make the personal decision. You can take that $400,000 — of course if you sold those properties, you’re not going to get that after taxes. You know that, right?
Okay. Sure.
You’ll have taxes to pay on the gains and you have some depreciation capture.
Depreciation capture, yeah.
But if you had $400,000, you could invest that today in tax-free bonds and get about the same yield tax-free with no aggravation.
Right. It’s really — it comes down to how much fund is it anymore holding the properties and being the manager versus having it all in liquid assets.
Okay. I thought maybe you could shed some insight into the fact you hear all this about the economy and what have you and that it might take a while to come back, the stock market and all of that, and I thought well —
And might.
— <Inaudible> home is the same way. They could go down in value like they did in the past. I thought well, maybe you’d have some insight into that. Which would you all <Inaudible>.
Sadly Scott, we don’t have a one size fits all and paint everything with a broad brush kind of attitude. We do look at everybody’s situation different, which is why we’ve asked you so many questions today. It comes down to personal preference. If you have solid renters and you are getting a nice cash flow off of it and the percentage is decent in today’s world and it’s not a burden for you to manage them, you might as well hang onto them. On the other hand, if you do believe that looking at some good quality investments there’s an opportunity to buy a lot of things on sale, then you might want to look at selling one of both at the properties.
And I think the starting point is to look at what you’re left with after taxes because that’s what you’ll have to invest, and then figure out how much return you’ll get on that and if that will really make up the difference that you need in income. And you might want to talk to your accountant today and say, if we sell today at this price, what is my net after-tax.
Okay, that’s a good question to ask. I’ll take care of that.
Okay. Thank you for calling.
All right. Thanks for the call Scott.
<Inaudible> thanks for the help.
All right. If you’d like to join us, the number is 844-220-0965 or text us at 21232.
Dave Wahl is in the news room. When we come back from the news center, we’ll talk a little more about that 800 pound gorilla in the room, that being the market and your 401(k) and you’re scratching your children like I am. We’ll also talk about the three important bars for retirement and which candidate is best for your portfolio. Stick around. We’ll talk more with Nancy Hect and Joe Burt from the Certified Financial Group because we’re planning tomorrow today.
This hour was paid for by the host and does not reflect the opinion of News 96.5.
Good morning, I’m Kurt Healy and this is On The Money with the Certified Financial Group. I was just going to say as that disclaimer says, but it should. So send your cards and letters on me on that one, not to management.
All right. With us in the studio, On The Money with the Certified Financial Group. Nancy Hect, author of The Hect Effect and A Man Is Not A Plan. The oracle of Orlando, Joe Burt is in the studio along with her. The telephone number to call, 844-220-0965. The 800 pound gorilla in the room I referred to was the market.
Mm-hmm.
Should we be concerned about the dive that it’s taken over the past few days? Let’s say that we’re going to be maybe three or four or five years away from —
Mm-hmm.
— retirement.
Do we want to talk to Ramone before we get it —
We’ll get to that.
First, we want to reply to Debbie —
Oh yeah, that’s right.
— in reference to her brother.
Debbie, yeah. She’s still driving along the highway.
Debbie, your brother has nothing to worry about. File for the Social Security disability. They are not income limitations. They should not be concerned about the assets that he has. Go ahead and file and see if he can get more.
And what about the market? Should we be worried about it Joe?
No.
If you’re in the accumulation phase, which many, many of our clients are, then you should look upon this as a gift because you are able to buy things on sale as long as you have a well diversified portfolio of quality, and I’ll address a little bit of this when I get into my three R’s.
But I think you have to remember that investing is never a straight line. It’s never always up, it’s never always smooth, and that’s why you in the long run get a better return than you get by clocking in the bank and getting 1%. You have to expect you’re going to have times like this and you shouldn’t be invested with money that you think you’re going to need in the short-term.
<Inaudible> investing and saving.
That’s exactly the point.
Oh yeah. What about my initial question. If we’re three or four years away from retirement, should we be really concerned?
No. This is not a repeat of 2008-2009.
No.
This is typical market correction.
All right. Let’s talk to Ramone in Wildwood. Good morning Ramone.
Ramone.
Good morning, Ramone.
Good morning.
Good morning, what’s up?
My question is I wanted to know what’s the difference between a Roth IRA, a regular IRA, and at the age of 50 should I be investing more in IRAs or my regular company’s 401(k), which I do have diversified.
The Roth IRA is after-tax dollars and under current law accumulates tax-free with no required minimum distribution. I say under current law because things will change with that.
You get no deduction. That’s the difference.
Right, there’s no deduction. If you are not currently contributing as much you can comfortably contribute to your 401(k) Ramone, then that’s what you should be doing, because you have whole dollars, pre-tax dollars going into an account for your benefit versus paying the money to the IRS. If you want to contribute to a traditional IRA, you are using after-tax dollars, which hopefully will be deductible. If you have to do a non-deductible traditional IRA, don’t do that at all.
Ramone, Ramone?
Yes.
Are you married?
Yes, I am.
You file a joint return, I presume. Does your wife work outside the home?
Yes, she does?
What’s your total income, gross income?
Mmmm.
Approximately.
I’d rather not say on the air.
Okay all right.
That’s fine. That’s fine.
Okay, well here’s the deal. Depending on your tax bracket, generally taking the tax deduction is the better way to go and avoid the Roth. If you want, I’ll tell you where to — I’ll direct you to get the real clear information on this <Inaudible>. Google this. Google Roth A Wolf In Sheep’s Clothing —
Okay.
— And it’ll give you the insight into why you might not want to consider using the Roth.
Okay. For now, I’m definitely — I’m not investing in a Roth because I definitely have that question. I want to increase my contributions to my 401(k), so I guess then that would be the way to go.
Yes.
Yes.
Most definitely.
How old are you Ramone?
50.
Okay.
So you can put in $24,000 in your 401(k), that’s what you ought to be doing.
Great.
And because it’s pre-tax dollars and you’re reducing what you’re paying to the federal government in tax, it won’t make as big a difference in your spendable as having to make after-tax contributions.
You can join us as well. Here’s the telephone number. 844-220-0965. We’re planning tomorrow today with the Certified Financial Group.
It is an Asbee expert weekend on News 96.5 WDVO, and as you heard Florida Homes And Gardens coming up right after this. News at the top of the hour. Jim Patarake from Accurate Window and Door will be with us. Joe Burt and Nancy back from the Certified Financial Group. Any truth to the rumor that you guys are the — your newest client is a Powerball winner, like $300M from Melbourne Beach or something.
We cannot divulge information.
You’re not allowed to talk about that kind of stuff.
I’m now allowed to say.
But you could tell me if I was to ask a questions like, say if it’s right <?>. The Certified Financial Group does represent lottery winners.
Yes.
We have some lottery winners.
In the past we have.
And people we have come into wealth.
Yes.
Planning wealth is a blessing and a curse for a lot of people, not matter how it comes. It’s a huge, huge responsibility And it’s life-changing and some people look upon it as the worst thing that has ever happened to them. Most people don’t, but it’s a huge — I said <Inaudible>. I mean, totally changes people’s lives.
<Inaudible>
People get into analysis paralysis and they’re afraid to make decisions.
But one of the things that we do and can do for our clients is act as a firewall. You’re going to get solicited by people you have never met, people you knew in grade school, high school, kindergarten, friends, relatives, neighbors, and —
Your city manager. Like the people in Tennessee.
And the best thing to do is say I don’t make those decisions. My financial advisor does. Here is his or her number. And then we deal with it.
Yeah.
<Inaudible> the movie, The Jerk, with Steve Martin where he was writing out checks everybody was waiting on.
I don’t think so.
No.
Okay, well —
Nancy Heck, Joe Burke, why don’t we take a call <Inaudible> refresh my memory.
<Inaudible> any questions that are on your mind regarding your personal finances <Inaudible> we go through life hoping that all of the investment decisions that we’ve made for our lifetime will work. And we wake up one day and find we’re looking at Social Security plus whatever <Inaudible> we’ve been able to save and accumulate and we find we have a collection oftentimes with financial accidents. So we’re here to clear up those accidents, kind of a repair shop on Saturday morning and to answer questions that you might have on stocks and bonds and mutual funds and real estate and long-term healthcare and IRAs annuities, all that more and you can — good news for you, there’s absolutely nobody in line <Inaudible> so pick up the phone and dial 844-220-0965, 844-220-0965 or text us at 21232, 21232. We’ll get through a couple of those in just a minute. Nancy,
Yes.
You know, we’re looking at an election coming up here. The Iowa caucuses are just around the corner.
Right.
What a weird election. Who would think that a socialist would be running ahead and Donald Trump would be out in the lead.
It’s the year for the far right, far left.
Well anyway, which candidate is best for my portfolio?
Well, and this is not something that I compiled. This came from Money Magazine. But the S&P analyzed how equities performed under partial gridlock where the White House is controlled by one party and Congress by the other, total gridlock where Congress is split in unity, where one party controls all. And in general, stocks delivered the best gains of total unity, averaging 11% annual <Inaudible> over the time of that scenario.
So you’re saying that if it’s —
Right.
<Inaudible>
Democrat President, democrat Congress would be the best, a republican president, republican congress <Inaudible>.
And this is not me, this is <Inaudible> likely unity scenario would be the GOP winning the White House and holding the Senate. Should a democrat win, he or she will probably <Inaudible> the republican-held Congress, which brings the worst scenario. The particular combination that tends to work the best is when there’s a partial. When it’s like the White House is one and it’s 50/50 as far as control goes. And that averages 18%.
There you go.
But I’ll take one party controlling all for an average of 11.
That’s not bad.
So anyway.
Let’s talk to —
Don’t send your comments to me. I didn’t write the article.
Let’s talk to Betty <Inaudible>. Good morning, Betty.
Good morning.
Good morning.
Hi, Betty.
How can we help you?
Well, I have a spouse that’s very, very terminally ill.
I’m sorry.
But, I have a question about I’m working, of course he is not. But someone said to me that he makes more with his Social Security. When he passes, will I have the option of having his Social Security or does that just go away?
No, you’ll get the higher of his or yours. Depends on your age —
I was just going to ask, Betty, how old are you?
I’m going to be 61 in April.
Okay, alright, spousal benefits can be claimed — I mean survivor benefits, as long as you’re over age 60.
Okay.
And as a survivor, you get what your spouse was getting.
Okay, alright. And death certificate, how many — do you pay for those? I know it sounds silly, but —
No, no, no, these are very valid questions. It depends on where you’re making all your final arrangements. They may give you one or two for free. I know that there is a nominal fee and generally, we tell people to get like 5 to 10.
Okay.
It depends on where you may have the five, bank, investments, life insurance, but you can always ask that they be returned to you.
Oh, that’s <Inaudible>.
<Inaudible> death claims to the different mutual fund companies, we always ask that they return the death certificate to us and then the client can use it for another claim.
Betty, but if you’re still working, you may not be entitled to all the survivor benefits. There may be an offset in your income, so you want to have that checked out.
Alright, that’s very good. Thank you so much.
We wish you the best, Betty.
Absolutely. Alright, let’s go to — I don’t know if this is right, but it says Massachusetts.
Alright.
Okay.
And we’ll talk to Joe. Is this Joe?
Yeah, how are you?
Hey Joe, how are you? You sound like you’re from Massachusetts.
Yeah.
Yeah, how are you guys? Great show.
Thank you.
Are you in Massachusetts right now?
No, I’m not.
<Inaudible>
<Inaudible> laws are probably a little different up north.
Yeah.
Yeah.
I’ve been in a 457 plan.
Okay.
And it’s for municipal employees.
Right.
Okay.
And it goes in <Inaudible> but when you take it out, it’s taxed.
Right.
I haven’t used it yet. I was pretty diversified with a major insurance company.
Mm-hmm.
And it’s been fairly good to me for the last — I’m retired, but it’s been fairly good to me for the last 32 years.
32 years.
Okay.
<Inaudible>
<Inaudible> how old are you, Joe?
62 years old. I’ve been retired 10 years with a decent pension.
Okay.
Alright <Inaudible>.
<Inaudible> my question is that I was diversified for years and <Inaudible> six, seven, sometimes 10 <Inaudible> but now that I’m retired, I still get a decent pension. My question is, is that I diversified and they paid me a straight 4% right now but I’m not taking the money.
Okay.
It’s not diversified, it’s with a major insurance company that I’ve been with for over 32 years. I probably can’t get a good <Inaudible> where they put my money.
Uh-huh.
But they guaranteed me a 4% return for years but like I said, it’s just rolling over.
<Inaudible>
<Inaudible>
Is your question how did they have the money invested to get you the 4%?
Yeah. I mean, I took diversified probably shoot for a little bit more money but then it comes with risk.
Yeah.
<Inaudible> with the four.
Okay.
And I don’t know, I mean as far as risk factoring these 4% funds, I mean the company seems to be pretty solid <Inaudible> happy with it, but I guess if the company went <Inaudible> my money would be gone.
No, there’s —
Yes. Yes, but I wouldn’t worry about it.
You wouldn’t worry about it.
No, I wouldn’t worry about it. They’re not taking great risk with your money. Insurance companies are very, very we’ll regulated and believe me, you’re okay. If you’re okay <Inaudible> don’t change anything.
Yeah. <Inaudible>
Yeah, that was my question. I’m happy with it, I don’t use it. I can take it out. I can take 4% a year out of my portfolio, but most if it’s going to be taxed.
Yeah.
Sure.
But take a little out at a time, so that was my question. I’m sure I can diversify some of the money and there’s a pretty good chunk in there.
Yeah.
But you know, you still get <Inaudible> I guess.
Yeah, you know Joe, you can only do that, let that money sit there and <Inaudible> defer for another eight and a half years.
You know how much I have to take out after eight or nine years?
When you’re 70 and a half, you have to take out in the first year, 3.65% of the December 31st prior year’s balance of all your qualified retirement accounts.
Okay. If you live that long <Inaudible>.
Sure you’re going to live that long, Joe.
Thanks for the call.
Appreciate it. We’ve got Trisha and Shula and Ricky and Lyle. Let’s see, who’s next here. Let’s talk to it’s Vicki in Vero.
Vicki in Vero, good morning.
Hi, Vicki.
Good morning.
How can we help you?
I kind of put myself in a kibble <?>. I sold a house down in Del Rey. Bought a house up here in Vero and in the meantime, my son was living with me and I bought a house for him also. Put it in my name and he supposedly was to make payments to me because he couldn’t afford a mortgage or anything. And he’s not holding up his part of the bargain.
That’s not uncommon.
Yeah,
Unfortunately.
So my question, I’m paying the taxes and insurance and all that.
Yeah.
My question is, I mean I hate to just — I don’t want the liability. If I died, he’s my only child. Should I just — I mean, I don’t want to make the situation even worse and I don’t want to kick him out, but should I just gift him his inheritance now, is that possible?
The house is in his name? Who?
It’s in Vicki’s name.
It’s in my name.
Okay, and there is a mortgage on it.
Well no, no. I paid it off.
Free and clear.
So the question is you can give him the house now or wait until you die?
Yeah.
Well if it’s worth more than $14,300, then you’re going to <Inaudible>
<Inaudible>
Yeah, you’re going to chunk into gift tax.
But you have a credit against <Inaudible>
Right, so that’s no big deal. I mean, if you want to give it to him and then it becomes his problem completely, then go right ahead and do it.
Get him off from over your head if your plan is to give it to him anyway, you’re willing to give up the assets.
Yeah.
Yeah, sign it over to him.
Yeah, let him worry about the taxes and all that other stuff.
Yeah, I just think he’s not with it enough. He’s <Inaudible>.
Yeah, but you know Vicki, if you sign it over to him and you gift it to him and he loses it, it’s his own problem. You’re giving it to him and you can’t look back.
But you got to be careful he doesn’t show up at your door and want to live in the basement after he <Inaudible>.
Alright, Lyle is in Clairmont. He wants to talk about the stock market and Vicki, thank you for your call.
Thank you, Vicki.
Shula in Seminole wants to talk about a Roth IRA and <Inaudible> is in Orange and wants to talk about annuities. We can take your phone call too. I think we enough time.
Okay.
The number is 844-220-0965. Joe Burke, Nancy Heck from the Certified Financial Group are in the studio. We got to get to Dave Wall right now.
It’s an ask the experts Saturday morning on <Inaudible> 96.5 and this is on the money brought to you by central Florida’s oldest and largest independent firm of certified financial planning professionals and we have two of the 12 certified financial planning professionals with us in the studio. Nancy Heck, author of The Heck Effect is here with us, along with Joe Burke and the crack research team did some stuff for —
Yes, thanks to Gary <Inaudible> Debbie.
Yes.
Yes.
Yes, Gary <Inaudible> our colleague and CPA, CFP. Debbie, we told you that regarding the disability that your brother is receiving and money that he had in the bank, chances are that the interest that he’s earning on that money is so small that it’s not going to impact his, but there are some income limitations. So if you have a lot of money in the bank and getting a lot of interest and dividends and capital gains, it may affect your Social Security disability payments. But in your case, my guess is, it probably will not.
And to Shula and Lyle, we know that you couldn’t hang on because it was a long break and we’re really sorry. But you know how to reach me, Shula. Lyle, you can contact our office at 407-869-9800 or go to financialgroup.com and leave your question and one of us will answer it next week.
Let’s talk to Trisha. Good morning, Trisha.
Hi, Trish.
Good morning. My problem is right now, I’m in my 80s and I’m looking at assisted living, some kind of care. And I have liquid money so I feel like might carry me.
Okay.
But if I don’t have enough, I have annuities that I’ve left in my children’s names. And if I did have to go on Medicaid, would they touch those annuities?
Yes.
Would that be part of my —
Yes, they’re part of your assets.
Even though it’s insurance.
Yes, what you need to do, Trisha, is get with an elder care attorney and have him or her do an analysis for you as to how those annuities might be converted to Medicaid qualified annuities. And unfortunately, a lot of people are sold annuities that really don’t qualify for Medicaid treatment and you may be able to convert that to protect yourself and get you the care that you need in your later years. <Inaudible> meet an elder care attorney. If you don’t have one, you can call our office. We can connect you with Jodi Murphy who does that for us, and get you on the right path.
That’s the same number that I just called?
No, no, no. That’s for the radio. You want to call 407-869-9800. And our offices are open from 8:30 in the morning to 5:30 in the afternoon.
869
9800
And Trisha, when you call, mention that you talked to somebody on the program today and that you wanted to get in touch with an elder care attorney and we’ll make the connection for you.
Okay, running out of time. Real quick from the text board. Will retire in October at 68. Have a 401k at work. Have an IRA traditional. When I retire, I’ll roll the 401k into an IRA.
Okay.
Will my IRA be subject to, and then it goes blank.
Well required minimum distributions is probably what the question is and all qualified retirement accounts are subject to required minimum distributions at 70 and a half.
Okay, another question. Does the $5,500 contribution limit for health savings account funding include what my employer contributes as well or just my contribution?
Just your contributions.
Okay. Alright. And we’re done. If you need to — oh, we have the workshops coming up.
Yeah, you do.
<Inaudible> Nancy.
Yes.
<Inaudible>
Let me get the <Inaudible> Social Security <Inaudible> is the first one coming up on the 28th of January. When can you retire and know your number is Tuesday, February 9th from 6:00pm to 8:00pm hosted by Gary Abiley. And then Tuesday, March 8th, countdown to retirement, also hosted by Gary Abiley at 6:00pm
Dictation made on 1/21/2016 4:39 PM EST.
