TRANSCRIPT FOR THE FEBRUARY 6, 2016 “ON THE MONEY” SHOW

Hosts: Aaron Bert, CFP®, AIF® and Joe Bert, CFP®, AIF®

Central Florida’s oldest and largest independent firm of certified financial planning professionals is the Certified Financial Group in Altamonte Springs.  For the last 25 plus years now here on News 96.5 WDBO the Oracle of Orlando, Joe Bert and staff at the Certified Financial Group has been coming in every Saturday morning to answer all of your questions.  This morning is no exception.  We have with us this morning Aaron Bert, a certified financial planning professional and his big brother, Joe Bert, is in the studio as well.

Good morning.

How are you guys?

Good.

Good to be here.

Nice to see you.

Thank you.

In case anybody may be new to the program what do we take calls about?

Well as we say and maybe the little ad that we ran before the program we go through life kind of hoping that when we retire it will all come together.  We struggle with making financial decisions simply because we were never given the proper tools.  We were never educated.  We went to school and learn hopefully the basics, to allow us to get a job and earn an income.  We go through life trying some of this, trying some of that and hope that got it all together.  So when paychecks stop we’ll have something coming in, in addition to Social Security.  What we find many times is that most people simply are not planning and we do that regularly for a fee Monday through Friday, but on Saturday morning we are here for free to answer the questions that you might have regarding your personal finances.  In other words what do we want to consider when looking at mutual funds and real estate and long-term health care, what to do about IRAs, annuities, 401(k)s, reverse mortgages, life insurance, stocks, bonds all that and more.  We are here so if you have any questions about anything that’s on your mind regarding your personal finances, trying to make decisions, looking at this, looking at that, want some information you just pick up the phone and the other thing is you don’t even have to use your real name.  You can use a pseudo name if you want.  But you have to pick up the phone and dial —

844-220-0965, 844-220-0965.  You can also send us a short text from your mobile device.  That texting number is 21232, 21232.  Of course if you have the news 965 app you could use the open mic feature and your voice can become part of the program.  Some of the things we are going to talk to Aaron and Joe about today are the six tax deductions that you don’t want to miss.  Because they give you the most money.  And the largest wealth transfer in human history.  Along with your phone calls at 844-220-0965.  But first we want to tell you about a workshop that is going on today.

Yeah this coming Tuesday, Tuesday evening at our offices in Altamont Springs Gary Abely, a certified financial planner as well as a CPA will be conducting a seminar for those that are at or near retirement, about what you need to know.  Stuff that you want to consider, what to look at.  Talking about long-term health care, he’s going to talk about how to calculate how much income you are going to need and where it will come from.  It lasts about an hour and a half to two hours.  He’s going to provide some light refreshments.  Leave your checkbook at home folks.  He’s not going to try to sell you an annuity or a life insurance policy or some <Inaudible> idea that is going to cure all your ills in retirement.  He’s going to give you some very very good information and hopefully show you what you need to do so you don’t fall in some of the pit falls or holes I should say that we’ve seen folks fall into.  That is the — Tuesday evening, 6:00 to 8:00 at our office in Altamont Springs.  Right there just south of 434.  If you want more information simply go to our website that’s financialgroup.com.  Financialgroup.com.  Click on the workshops tab and you can make a reservation right there online.  So that’s financialgroup.com Tuesday evening at our office in Altamont Springs from 6:00 to 8:00pm.  The name of the workshop is When Can You Retire.  So when you go the website click on workshops When Can You Retire, that’s the one that’s going to happen on Tuesday.

Thank you for bringing that up.

I’m glad I mentioned it <?>.

Team effort.

Again the number is 844-220-0965.  We’d love to hear from you.  This is Jonathon in Orlando.  Good morning Jonathon.

Jonathon.

Good morning gentleman.

Good morning.

I have about $20,000 in mattress money and I’ve never invested before.  I just wanted to see if you could give me some advice on what to do with it.

Sure, tell us a little bit something about yourself Jonathon.  Are you married?  Single?

Nope, single.  Parent, 38 year old, college educated.  Got a solid job, own a home.

Okay.  So you’re a parent.  How many children?

Two.

Two kids.  How old are the kids?

16 and 14.

16 and 14.  Are you — your employed, you got a 401(k) at work?

No 401(k).

No 401(k), okay.  Wel I have two questions for you.  First of all we need to have some emergency money set aside.  So if the roof falls in, transmission falls out, you lose your job.  We’ve got to have some money set aside.  So you want to have about three to six months set aside in emergency money.  That may be your mattress money.

I have that aside from my mattress.

Good.  Sweet.  Sweet.  Alright Aaron where do we take it from here.

Well my second question to you is do you have life insurance.  So if something happens to you are your children covered for whatever support that they would need for the next 5 to 10 years?

Yes sir.

You do have life insurance.

I do.

So you don’t have a 401(k) at work, are you contributing to an IRA every year?  Putting the  <Background Noise>

No I’m not, I haven’t done any investment at all, and they don’t offer a 401(k) at my job.

Okay, well I think what you first need to look at is contributing to an IRA.  To put some money away for yourself for retirement.  You can put away $5,500 and you are in that sweet spot right now because you could do it for 2015, as long as you do it before April 15th.  Or before you file your taxes.  You could put away $5,500 for 2015 and $5,500 for 2016.  Put that into an IRA and get a tax deduction.  So depending on your tax bracket you are going to save anywhere from 10% to 40% in taxes.  So that’s what I would do with at least half of that mattress money.

Where would you invest it in the IRA?

How old are you Jonathon?  You said 38?

38.

Okay.  Well in your position you have a long time until you are going to retire.  Probably at least 20 to 30 years.  So you can be relatively aggressive, using mutual funds.  I would — in that particular situation I would probably go with some sort of low cost mutual fund.  Not through your bank, you don’t want to put it into a CD but you want to put it in some sort of growth or possibly even a target date mutual fund and try and get the most growth that you can for the next 20 to 30 years.

Okay.

The other question I have though is do you have any college expenses that you are going to be planning on for your children?  Has that be covered too or?

I have not addressed that.  I’m hoping that they are going to get scholarships.

Okay, so that’s not something that you are planning on.

If you have to prioritize Jonathon, is college first?  Not in terms of time horizon but what is more important to you?  To insure you are okay in retirement or paying for your kids college?  Give me the straight answer.

I’ll be honest making sure I’m good in retirement.  I’ve set them up fairly well.

Good.  That’s fine.

They are great students.  So I don’t really have much of a concern if they have to pay on the go we can do that.

No problem.

Then I would focus like I said on the IRAs, start putting away $5,500 a year.  That’s the most that you’ll be able to do.  Then with the remainder of it now you can invest the remainder of it too but when 2017 rolls around I’d like you to take the money out of that investment and roll that into an IRA as well if you can’t afford to pay for it out of cash flow.

Regular IRA or a Roth IRA?

Well what is your tax bracket?

25.

Then you want to do the <Background Noise>

Yeah you want to get the deduction with a regular IRA.

Yes.

Then go talk to your employer and find out why you don’t have a 401(k) because that’s where you can really stock away some serious money for your retirement.

It’s a small business and then financially said they couldn’t.

Sure.

Sure.  Well so you have to take care of yourself because when you stop working the only thing you are going to have is Social Security, plus whatever you’ve been able to accumulate.  So put the money in the IRA, you get an immediate tax deduction.  Let me do the math for you her as a matter of fact.  You are in the 25% tax bracket okay.

Yes sir.

So you bucket in the IRA, it is only going to cost you $0.75 because you get a 25% tax deduction right off the top.  If you were to put that money into a Roth, okay you get no tax deduction.  But you would have to gross $1.33 to end up with $1 after taxes.  So just take 25% off of $1.33 and that’s how you end up with $1 in the Roth.  So the Roth in a 25% tax bracket is very expensive.  There is no guarantee that the tax laws won’t change.  Do yourself a favor if you are considering the Roth or anybody out there that is considering the Roth google Roth a Wolf in Sheeps Clothing.  That’s Roth, A Wolf in Sheeps Clothing.  It’s article I wrote for Kiplinger, got a lot of reviews and it will tell you why we are not big fans of the Roth.  But Jonathon do that, do the IRA.  You can go to Vanguard.com and open it right online, put it in the S&P 500 fund and don’t look at it for 20 years and you’ll be in great shape.

Thank you gentleman.

Alright.

Okay.  Thanks Jonathon.

Thanks for the call.

Joe Bert and Aaron Bert are both certified financial planning professionals with the Certified Financial Group in Altamont Springs.  You could talk to these gentleman at 844-220-0965.  Or text us at 21232.  Quick reminder coming up in five minutes Dave Wall in the news center.  He’s got some stories about Zika Virus being found in Osceola County.  Tonight’s GOP Debate, we’ll be carrying it live here on news 965 WDBO.  From the text board if I start taking Social Security benefits at 66 is there a limit on my earnings per year for taxes?

I’m assuming that that is that persons full retirement age, and that they are approaching age 66.  So once you hit your full retirement age, there is no limit on your earnings.  In other words your Social Security benefit is not reduced.  So if you are before full retirement age and you earn over a certain limit, it is over $14,000, the Social Security administration considers you wealthy and they start penalizing you for your earnings.  So you get a $1 reduction in your Social Security benefit for every $2 you earn over that limit.  So — but once you hit — oh what happened.

Go ahead.

But once you hit full retirement age that earnings limitation goes away.  So you can earn as much money as you want over the age of 66, or over full retirement age and not have your Social Security benefit reduce.  Which is good.

When you change your arms like that you turn off your mic.

Yeah I don’t know what happened.  There’s buttons here I don’t know what they are <Background Noise>

Very <Inaudible>.

By the way when I heard Joe say last week that people who are just planning on living off of Social Security are planning on living below the poverty level, that was a stunner.

Well you know Social Security isn’t going to give you much.  Maximum you are going to get out of Social Security is a little over $30,000 a year and that assumes you’ve been paying the maximum into it.  That is in fact below the poverty level.

So what — here’s another text.  What is the maximum amount I can contribute to my 401(k) at work.  I am 61.

At 61 years old you are over 50 so you can contribute $24,000 a year.  So 24,000, $2,000 a month <Inaudible> is the maximum that you can contribute to a 401(k) plan at work.  If you are under the age of 50, the maximum you can contribute is 18,000.  So a lot of people think t the max they can contribute is up to their match at work.  We see that a lot, the company matches up to 6% or up to 5% and we say well are you contributing the max to your plan and they say yeah we are putting in 5%.  We are always no you can put $18,000 a year if you are under the age of 50, $24,000 a year if you are over the age of 50.

Lets talk to Tony in Eustes.  Good morning Tony.

Tony.

Yeah good morning.  I had a question for you.  I have a very good situation because I’m 66 a couple of months ago.  I had a private pension and Social Security, so my combined income amount is about 2,100 which is great for me.  I had an IRA which is about 19,000 which I could use it whenever I want.  However my question is <Inaudible> my investment in tax sheltered annuity which I started 21 years old ago, when I lived and worked in the northeast.  Right now I have a little over 27,000 is the value of it.  I would like to <Inaudible> somehow into cash because my situation is specific.  My wife is <Inaudible> she’s in assisted living for more than a year.  We don’t have children.  I do not have any relatives, close relatives around here.  Everybody is up north and staying there.  So in case something happens to me they know I would like to use the money now instead of leaving it for someone because I have to figure out who is going to be taking care of me when I drop dead.  I don’t have any life insurance because we don’t have any dependents.  So I know that there’s money <?> but I know that it’s possible to turn it into the cash that I could use it now <Inaudible> don’t leave it for later when I will be dead and gone.

Okay I understand.  So what you want to know the TSA, tax-sheltered annuity.  Do you work for the school system up north or something?

Yes I did <Inaudible> for the board of education yes.

Okay so you have a tax-sheltered annuity worth $27,000 and you want to get the cash out to be able to provide for your needs today is that correct?

Yes.  Yes.

So what do we do Aaron, pretty straightforward?

Well the TSA is basically a type of retirement plan that you did not pay taxes on as the money went into the plan.  If you want to use the funds now you can simply just take a withdrawal from that plan, and since you are over 59 and a half there is not going to be a penalty.  Because you are going to pay ordinary income taxes on that amount that you withdrawal.  So it’s basically like an IRA.  You can roll that TSA into your IRA if you like depending on what the investment is.  Do you know how that TSA is invested?  Because there is several different options.

It is — <Inaudible> 3.5% per year.

So it’s a fixed annuity.

Yeah it’s a fixed annuity.

Okay they may not let you take it out on an as needed basis.  If that’s the case Tony then what I would do as Aaron suggested is roll it into your IRA and then just draw it from your IRA on an as needed basis.  Whatever you take out will be taxable to you, they’ll send you a 1099 and depending on your income, which sounds pretty modest.  You may not even have to pay much taxes on that anyway, depending on what you withdrawal.  So pretty straightforward, that’s what we’d recommend.  Best wishes to you and your wife getting through this situation.

If you’d like to talk to Joe Bert or Aaron Bert the telephone number 844-220-0965.  Joe and Aaron are with the Certified Financial Group in Altamont Springs.  Every Saturday at this time we are planning tomorrow, today.

Joe Bert and Aaron Bert with the Certified Financial Group are in the studio and they are waiting on your phone call 844-220-0965.  Joe what are you taking calls about.  Once again Aaron and I are here to answer any questions that might be on your mind this morning regarding your personal finances.  As we reach those retirement years or perhaps in those retirement years what do we need to do to be sure that we have enough income to enjoy those as we say the golden years, to supplement your Social Security and we have to make decisions throughout our working lifetime regarding the 401(k)s and IRAs ands mutual funds and where should be putting our money today.  How do we get it to grow, what does it look like in the future, what can we do now so that we don’t look back five or ten years from now and say gee I wish I would have known.  That’s why we are here this morning.  So if you have any questions regarding your personal finances, anything that’s been on your mind, anything that you heard, any rumors that you want us to cover we are here to clear up the fog.  All you have to do is pick up the phone and dial —

844-220-0965.  Quick text question.  Hey I heard if you are a firefighter or a police and you take money out of your retirement that you don’t get hit with a 10% tax penalty.

That is a true statement.  But the key there is that you actually — it applies — the 10% penalty applies — or would not apply if you are a qualified public safety employee, state or local government and separated from service on or after you reach the age of 50.  So if you quit at age 49 and then you think you can start taking money out without a 10% penalty you would be mistaken.  You have to be over the age of 50 or older when you actually separate from service and then qualified public safety employees, which I think in general means police and firefighters.  You would then be able to withdrawal from your retirement plan without incurring that 10% penalty.  You would have to pay ordinary income taxes, but the penalty would not apply.  So you are correct <Inaudible> that information.

Cheryl and Debby you hang on we’ll get to your phone calls in just a minute.  First we’ve got to break for the news.  But Joe before we do if somebody wanted to get a hold of the Certified Financial Group, any one of the 12 planners over there, and set up a complimentary consultation how would they arrange that.

Simply pick up the phone and dial 407-869-9800.  Or 1-800-EXECUTE, as if you are executing a legal document.  Better yet go to our website you can learn all about us, see what we are about, how we do it and how we kind of differentiate ourselves from everybody else that call themselves financial advisors, financial planners or whatever.  That is financialgroup.com.  You can always get information as well on the upcoming workshop that gets scheduled for Tuesday evening, 6:00 to 8:00, at our offices in Altamont Springs.  That’s for those folks that are at or near retirement, leave your checkbook at home.  It is totally free and you get some good information as well as <Background Noise>.

Good morning Debra.

Good morning gentleman.

Good morning.

How can we help you?

Well my life is pretty much a mess.  But I’ll start by saying that I’m going through a divorce.  I was married to this gentleman about five and a half years and he left a dog and I hopeless for someone else <?>.  He changed his phone number and so we have no conversation anymore.  Also he is not contributing to these marital debts <Inaudible>.  So it has come to a point where I can’t handle it myself anymore.  So my question is if I — I’m a home owner, I owned the home before I met him, three years before.  I have quite a bit of equity in my home.  But if I were to file bankruptcy I would be able to keep my home it’s my understanding but we also have another asset, about a $35,000 RV that is paid for.  If I bite the bullet and take all the responsibility in the bankruptcy.  Because I have the contract with the creditors because he was not ever credit worthy.  So everything is in my name.  So I would be taking the hit, and so is that going to open up the doors that he’ll get the RV or we’ll have to split it?  I’m just not sure what to do.  If that makes any sense at all.

Why are you considering bankruptcy, are you that much underwater on your assets versus your liabilities.
Actually I am current on everything. I have never been late on a single bill until January 1st. All of my credit cards are one month delinquent. There’s just no way I can catch up. I was making a six figure job, but I lost it. I was involved with a business here in Florida that the governor shut down. So now I’m working for a company that’s 100% commissions, and so it’s not reliable. I have a real estate license that I’m using. So it’s going to get deeper and deeper and deeper.

Debra, first of all, I think you need to see an attorney.

I do have an attorney.

You’re making to me, it looks like, emotional decisions. Not financial decisions. Filing bankruptcy because you’re one month delinquent on your credit cards and you have stellar credit right now. I think you’re approaching this entirely in the wrong way. Unfortunately, this needs more development than what I could do for you over the telephone. If you want to give me a call on Monday and I’ll try to work through this for you at my office.

You know what the worst thing about all of this is I’m paying his car insurance. I’m paying storage <Inaudible>.

Hold on, let me stop you right there. Why are you paying his car insurance. Do you own the car, is the car in your name.

The car is in both of my names and I’m in a home, and he’s — I’m afraid if he doesn’t pay the payments, that I have something to lose here. He’s not contributing to it, so I’m paying it.

So he has the car that’s in your name.

Joint names.

Out of the state.

It’s in joint names or it’s in both of your name.

It’s in both of our names as well <Inaudible> loan.

Alright.

So I’m paying his car insurance because I don’t want to lose my home if he gets in an accident or something like that.

Well no, you won’t lose your home. Your home is protected. If he gets in an accident and he gets sued, you’re not going to get your home. That’s one of the things in the state of Florida, you have homestead protection. So don’t worry about that.

<Inaudible> too is the insurance company states that the car has to be housed in the state of Florida. He’s gone. He’s in Georgia. So that’s very — not a good thing as well. Maybe I better call you. It’s a mess, I know. I’m 62 years old. I never thought my life would end up like this. I’m just trying to fight.

Debra, were you married before.

I was married 20 years ago to a great guy.

For how long.

25 years.

There may be some opportunity here for you on Social Security. Right Aaron?

How old did you say you were, Debra.

62.

I’ll be working until I’m 80.

I understand. What we need to do is bridge the gap. Call me on Monday. 407-869-9800. We’ll see if we can’t <Inaudible>.

<Inaudible>.

I tell you what, I’m going to put you on hold okay.

Well she’s on a cell phone so you can write this down Debra, I don’t want you to run off the road here. We’ll give you the number before the hour’s over.

Or go to the website, financialgroup.com. Our phone number is listed there as well. We’ll be happy to meet with you on Monday.

That kind of stuff happens. This is the type of thing that you encounter weekly, right.

Daily.

Well I mean everybody’s different. Debra’s in a difficult financial situation. We can’t act as Dr. Phil in these kind of arrangements, but I can give her some financial — we’re not attorneys. I’ll point her in the right direction around that but what I sense in her voice is desperation. You don’t want to make quick financial decisions when remain feeling tense because you may be going down the wrong path and making the wrong decision. I hate to see her file bankruptcy being one month behind on her credit cards and we might be able to free up some Social Security money for her and kind of bridge the gap here and give her some breathing room, but I’m concerned some other issues she’s talking about. Let’s move on.

Let’s talk to Patty in Orlando. Good morning.

Patty. Good morning. Hello Patty, are you there.

Patty’s not there.

Let me figure this one out. I’ll put her on hold. Let’s see if Stella is there. Stella, are you there.

Good morning Stella.

We’ve got some technical — maybe you’ve got Debra’s still flashing there, is that the issue.

Debra are you still with us.

Sounds like somebody’s there.

<Inaudible> Debra and go to the other ones. Maybe <Inaudible> got that line tied up.

We’ll figure that out shortly here. Here is the telephone number if you want to get a hold of us. It’s 844-220-0965. Here’s a text for you. What happens to a tax deferred 401(k) if we went to a fair or a flat tax.

Well it’s going to be taxable to you. When it comes out of that — depending on how the law’s written, we’re presuming that everything will be taxed at the flat tax rates or if we have a fair tax, it won’t be taxed at all, but you’ll be dealing with a consumption tax which means that — it’s basically a sales tax. Who knows. Tax law, it has — can have a lot of exceptions and changes and <Inaudible> in it that we have not foreseen. But basically if you have a flat tax, it’ll be taxed at whatever probably whatever rate the flat tax was set up, whether it’s 15% or 20% or 25%. If it’s a fair <?> tax that means probably it won’t be taxed at all but the cost of <Inaudible> is going to go up. That’s the way fair tax works. Okay we’ve got the calls back in business here.

I think <Inaudible> Stella. Good morning.

Okay.

Hello.

<Inaudible> having a snafu on <Inaudible> we’ll get to it. We’ll get to the phone lines <Inaudible>

We’ve got a couple more text questions up there.

How much are you forced to take from IRA 401(k) at the age of 70.

At age 70 and a half, the year you turn 70 and a half, you’re actually required to take what’s called a required minimum distribution which is what this gentleman or lady is referring to. You’re actually required to take 3.65% of your total account value that are in IRA or 401(k) accounts as of December 31st of the year before you turn 70 and a half. I know I just said a whole lot of stuff there. Basically the year you turn 70 and a half, look at your end of year statements and the year prior and you need to take 3.65% of that amount. Unless you are still working and then it doesn’t apply to your 401(k) as long as you’re not more than a 5% shareholder in the company.

Good point.

So what we do sometimes is get a little creative here with Certified Financial Planners if you’re still working and you have a 401(k) and you have some IRAs you can defer taking from your IRAs by rolling it into your 401(k) and now it’s all in the 401(k). You don’t have to withdraw until you stop working and then the RMDs kick in.

I would also say that on that very first required minimum distribution you can push it into the next year, so you have to take it then by April 1st but then you have to take two that year. So then you have to take the one by April 1st and then one by the end of the year.

Text: Is it possible to start an IRA for infant grandchildren.

No. You have to have earned income.

Okay. That settles that one. The firefighter, police pension fund was frozen back in 2011. Does that qualify as separation.

No. Separation means that you left the job. You may be separated from your pension temporarily, but as long as you’re still working, you’re not separated from service.

Even if they disburse the pension.

Even if they disburse the pension.

If they disburse the pension, <Inaudible> take a lump sum of money and then you put that into a retirement plan or an IRA or retirement plan at work and then it would fall into those rules at that point.

Yeah, if you rolled it into an IRA you have the 59 and a half rule.

<Inaudible> yeah when we talk about separation it’s always separation from service, which means have to you have either voluntarily left or just can’t.

Okay. Stella are you there.

No she’s not. We’ll figure that out. The largest wealth transfer in human history.

Human history.

Is that going on right now.

Right before your eyes, you don’t even know it. You don’t even know it’s happening. Actually this is an article that — you said you saw it in the Wall Street Journal. I saw it in Bloomberg. The point of the article was the fact that the oil prices have fallen so extremely much from over $100 a barrel down to hovering around 30 I think is what it closed at on Friday. That there’s actually a huge wealth transfer going on right before our eyes from the oil companies to the consumers, which we have not yet seen the impact of this. I mean you see it in the price of gasoline falling, but that’s a lot of products that are made with oil or petroleum. The price of those products or the price <Inaudible> products obviously is going to continue to fall because oil is getting — continuing to be low priced. But the article basically said the total impact is about $3T a year is what they’re forecasting.

Trillion with a T.

Yeah, $3T a year moving from the oil companies to the consumer.

In the far east — or middle east, I should say, not far — but the middle east, moving from the oil company <Inaudible>

So the problem that we’ve seen so far is the people that have been realizing the savings is we’re not spending the money. They’re actually saving it right now. So the consumers — the U.S. consumers especially haven’t been spending that extra money that they’re saving. They’re not spending that money, they’re actually saving it. So it hasn’t flowed back through the economy.

You know what. Looking a little bit deeper into that, just think about this. You’ve got projected to be $3T of immediate savings, but look at all of the things that you <Inaudible> made with petroleum. Just take plastics alone and just look at — just look around your house or the car you’re driving, how much plastic is in that car. Petroleum affects — I can’t tell you what the percentage is but it’s a huge amount of manufactured items that are made from petroleum of some sort. So that will ripple down so you <Inaudible> it’ll keep prices lower, which is good. That once again gives us more buying power. I think what you’re saying, you said about people not spending the money. I think what’s happening is people — after the  shock of 2008 are paying down debt. There’s less credit card out there today, and they’re also <Inaudible> retirement and they’re increasing their contributions to their 401(k)s and IRAs. So that $3T is a huge wealth transfer and I think in the long run after we get through the shock of how it’s rippling through the oil industry and the jobs that are being lost there, it’s going to have tremendously positive impact I think on the American consumer and consumers around the world, particularly in the developing countries where they’re going to save on gasoline and all of the things that we spend money on.

In the meantime, we <Inaudible> 401(k)s.

That’s temporary, man <?>. Temporary.

So actually, we should increase the percentage of — into our 401(k).

Well you should try to max out your contribution. As we said, 18,000 if you’re under 50. 24,000 if you’re over 50 and just keep putting it in because one day you’re going to want to take it out.

The crazy thing is that the oil companies are being hurt obviously because their profits are — their bottom line is getting hurt, but so many other companies and consumers are going to benefit from this and we just have not seen people realizing that yet.

Alright. Aaron Bert, when we come back, is going to tell us about the six tax deductions that save you the most money. We’ve got our phones back, so Lauren’s going to join us. Hopefully Stella’s going to join us and we’re going to talk about — we have a text about a 401(k) pension plan and Joe, can you answer that question for us.

Well, I’m not sure what he’s talking about. We can talk about what they’re talking about.

Alright. We’re going to take your phone call as well at 844-220-0965. Joe Bert is in the studio, along with Aaron Bert, and we’re planning tomorrow.

Today.

With the Certified Financial Group. Over like the last 25 some years here, Joe Bert, Aaron Bert, and the Certified Financial Group have been coming in to give you some sound financial advise. We’re going to give you their telephone number and website address. So grab a piece of paper coming up here shortly. We’ve got some folks hanging on to talk to you. By the way, Aaron, since we’ve got all of these people <Inaudible> don’t you have those six tax deductions online.

Yeah, we actually posted them to our Facebook page. So if you are on Facebook — or maybe you’re not. If you search Certified Financial Group, we posted the article on our Facebook page of the six tax deductions. If you’re interested, go to our Facebook page, and they are there.

The six tax deductions that what.

Save you the most money.

There you go.

Lovely. Let’s talk to Mike in Lake County. Good morning Mike.

Mike.

Good morning.

Morning. How you doing.

Good. What’s up.

Not much. I was wondering if there was any plan that you all had to come in and get a presentation for an entire union for a fire department. We have a 401(a) plan. We do not have state <Lost Signal> kind of a <Inaudible> entity where we work. We’re kind of hand strong in a way, or <Inaudible> retirement for the options that we have, that are very reactive, not proactive, when I <Inaudible> but <Inaudible> things like that. Is it possible for Certified Financial Group to come in and give a present.

We do it all the time, Mike, because we’re very familiar with what the state and county programs, city programs are. In fact, we manage some city programs here in central Florida. We’d be glad to do it. We’ve got your caller number here. Your cell phone number. We’re going to write it down, we don’t want to give over the air. This is — we’ll reach out to you next week and see what we can do for you.

Alright, that sounds great. I appreciate that.

Thanks for the call Mike.

Alright, you have a great day.

You too. Thank you.

Alright, let’s talk to Stella is back. Remember Stella.

Stella.

Hi Stella

Hi how are you.

Good. How can we help you.

I would like information regarding the estate tax. Has that greatly changed.

Well yes it has. Last couple of years, yes. What is your question.

WHat is it presently. <Inaudible> over what amount.

$5,430,000. You don’t have to pay any estate taxes.

Oh alright. Thank you so much.

<Inaudible> does that put your mind at ease, Stella.

Sure does. I wish I had the 5M though.

Well you might win the lottery and get there. Thanks for the call Stella.

Okay quickly. What is a — my employer switched from a Safe Harbor 401(k) to an American Funds 401(k) pension plan. What is that.

I don’t think there’s an American Funds 401(k) pension plan. What they <Inaudible> means is that they switched who is the custodian or the record keeper on the plan. It’s probably the same plan, but now it’s at American Funds acting as the record keeper and the custodian is my guess.

Quickly, at retirement is it best to pay off the house in order to have no payment or keep that cash invested.

Depends on what your interest rate is. How far you are into your loan and how much debt you totally have and what the cash flow is and how that impacts your cash flow so there’s a lot of things going on there.

Those are all of the things we look at when we do financial planning but Aaron’s right there’s a lot of variables that have to be considered.

Okay we’ve got Kara on the phone from Orlando. We’re plum out of time. So Kara, hold on. You’re going to get a private consultation with Aaron Bert. Hang on. In the meantime, Joe, Aaron, what’s the best way for somebody to get a hold of you to find out more about these workshops, especially the one you’re having on Tuesday.

The best way to get a hold of us is to go to our website, financialgroup.com. That is financialgroup.com, or you can call our office on Monday: 407-869-9800.

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