Hosts: Roger Johnson, CFP®, AIF® and Joe Bert, CFP®, AIF®

Are you losing sleep? Tossing and turning? Well, this isn’t an ad 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’re unsure if they’ll 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 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  Fee-based planning and investment management group are registered investment advisors,

It is an Ask An Expert weekend on News 96.5 WDBO.  My name is Kirk 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, we have two of the 12 certified financial planning professionals with the Certified Financial Group.  Joe Bert and Roger Johnson are in the studio with us this morning.  How you doing?

We’re doing great.

Nice to see you again.

Good to be here thank you.

Anybody who may be new to the program, Joe, tell everybody what you can call about.

Well, as we say in our ad that we run periodically here on WDBO, you go through life hoping that all the financial decisions that we made will come together at an important point in time when we need to start generating some income to supplement our Social Security.  Often times we find that because we were never educated in this stuff, our educational system has failed us miserably when it comes to teaching us how to do that kind of stuff, we find we have a collection of financial accidents.  So, we’re here kind of as the body shop to repair those <Inaudible> and concerns that you might have, financial questions regarding your personal finances to keep you from perhaps falling in the ditch.  So, we’re here to take any questions that you might have regarding your personal finances and how they might relate to questions that you have on stocks, and bonds, and mutual funds, and real estate, and health care, and IRAs, annuities, reverse mortgages, 401(k)s, life insurance, all that and more.  We are here to take your calls.  There is no question, that you may think this is a dumb question because believe me, over these 25 plus years we’ve heard them all.  There’s no such thing as a dumb question and you can call in.  You don’t even have to use your real name.  The good news for you is if you have any questions about any financial topic, all you have to do is pick up the phone and dial.

844-220-0965.  844-220-0965 or you can text us.  Send us a short text from your mobile device.  That number is 21232.  Or, if you want your voice to become part of the program, you can use the open mic feature that you’ll find on the News 96.5 app.  Again, Joe Bert and Roger Johnson, both certified financial planning professionals with the Certified Financial Group in Altamont Springs are waiting on your call.  Joe, do you have a little frog in your throat? Are you all bit under the weather?

Well, I tell you, I got hit by something in the Greensboro office.  I got Roger.  Right Roger?

You sure did.

I got you and about —

My assistant.

— a dozen other people in our office and, yeah.  Yeah, it happened Friday night.  We were out all day Saturday, all day Sunday, and Monday, beautiful day.  Holiday.  The market was closed.  We were off, but I was virtually sick in bed for three days.

Well, I just want to say thanks for sharing.

Yeah, yeah.

Some of the things we’re going to talk about today —

Better me than you, right?

— 401(k)s and some common errors to avoid, Roger.  We’re going to talk about that today and some topics to discuss with your elder parents.  This is always a very tough subject to tackle, isn’t it?

Sure is.  You’ve got to talk to them about things, especially as you get older and you’re worried about have they thought of everything, are they taking care of things? The four main topics you want to try to touch on; legal, medical, record keeping, and their income and expenses.  The legal, make sure that they’ve really got wills, and durable powers of attorney, and all those good documents are taken care of.  Talk to them about their medical situation, what kind of insurance policies they’ve got.  Do they have a long-term care policy maybe that would help them with their expenses? Find out who their physician is.  You probably know it already, but just in case to make sure they haven’t changed things and you have records for that.  Then talk about their records.  Are they keeping good records of their estate documents, their brokerage statements, and their bank accounts, where do they keep their tax returns? Those kind of things.  Where could those be found if they have trouble remembering where they are.  Of course, talk to them about their income and expenses and how they’re doing with any debt issues.  Make sure they’re going to be okay.  All basically is good planning, so one of those things you want to check in with your parents about if you haven’t already.

And if your parents, you know, your kinds aren’t just being nosy.  They want to be sure that you’re taken care of because we’ve seen time and time again that parents kind of clam up when they get to be older.  They don’t want you to — first of all, maybe they don’t want you to worry, or whatever the reason, and then unfortunately stuff happens, and then the kids are scrambling around trying to put things together trying to take care of you, and it is a disaster.  You want to do this at least while you’re of sound mind, and there’s no tension, and there’s no pressure.  Get it laid out, it can always be changed, but at least everybody knows where things are and what needs to happen.  In fact, we have an organizer.

We do.

Do you want to offer that organizer?

Well, are you sure? I have an organizer.  We have an organizer we use at the office for clients to take and it’s kind of a checklist of things they can fill in, keep track of all the documents in one location, or at least copies of documents so that a caregiver can step forward and find everything instead of having to start searching for things when mom or dad gets under the weather or has some mental capacity issues.  So, if you have a caregiver in place, and it’s good to do that when everything is going well, and you can pass that information on, or at least the location of where this is.

And get a copy of that as well through our office.

Either give us a call at our office and ask for it.  It’s a caregiver’s checklist.  The number is 407-869-9800, or go to and send us an e-mail through there for a complimentary consultation.  We’ll also request it through that process for a complimentary consultation.  We’ll be happy to get that out to you.

Let me give out the telephone number of the studio again.  It’s 844-220-0965.  844-220-0965 if you’d like to talk with Joe Bert or Roger Johnson, and you can also text us at 21232.  As a matter of fact, here’s a text.  I retired from my 23 year career until two years ago off to go to nursing school, living on my 401k all that time.  What type of tax implications?

Well, it depends.  Certainly the money that you’ve taken from your — if you’re taking from a 401k, is going to be taxable to you.  If you rolled into an IRA and withdraw from that it will be taxable to you.  If you’ve put it into an IRA and you’re under the age of 59 and a half, you’ll have an extra 10% penalty.  If you’re over the age of 55 and withdrawing from your 401k, you’ll still have an extra 10%.  You may have to do — definitely have taxes and the question is whether or not you’ll have a penalty.  That’s very, very expensive money.  I understand you’re using this for a career change and that’s commendable, but it is very, very expensive money.  So, that’s what’s going to happen.

You’ll get a 1099 from your custodian, whether it’s the IRA or the 401k, and that — then will send that to the IRS and of course you’ll have to record that on your 1040.

You’re taking steps backwards to take steps forward.

Yup, yup.

Some folks have used their 401k money for other reasons than retirement, such as education like this, and it gets very, very expensive like Joe talked about.  All income taxed, every penny of it that you take out is as if you earned it right then.  Income taxed, plus that dreaded 10% penalty if you’re under 59 and a half or 55 through your 401k.  Those odd years that they pick, but 55 for 401k folks and 59 and a half for IRA folks.

You can send us a text at 21232.  Let’s talk to Henry in Orange City.  Good morning, Henry.

Morning, Henry.

Good morning.

How can we help you?

I, last year, was working for a school system.  I had set up a 403b plan.  Now I’m working for a private school that does not offer any kind of a match.  I was wondering if there was — what would be the best invest for my original 403b, if I should keep self-funding it or if there was another program I could put it in.

Well, you can no longer fund your 403b if you’re no longer affiliated with the school system that offered that 403b.


As I said, the school that you’re with, they have a plan, they just don’t have a match?

Yeah, they have a 401k plan, they just don’t have a match.

Okay, Henry, that does not make it a bad plan.  What that school system is offering you is a chance to save for your future and get an immediate tax deduction, and let the money grow for you without being taxed.  Now, it would be nice if you had a match, I understand that, everybody likes free money, but by the same token, they’ve opened a door for you, given you an opportunity, and your task should be to maximize your contribution to that 401k plan.


That will serve you a long way.  You can roll that 403b into the 401k, if you want to do that.

Okay, that’s what I was wondering if I could move that money from one account to another.

Yes, you can.  Now, what you want to look at is where that 403b is because there may be some penalties depending on the particular type of plan.  School systems are notorious for offering insurance company programs that lock you in and you can’t get out without a penalty, so you want to look at that.  You may want to let the penalty period pass and then roll it into your new employer’s 401k, but Henry, you want to definitely use the 401k.  How old are you, Henry?


34, okay.  Well, you can put $18,000 a year, that out to be your target.  I know that may be difficult, particularly on a school teacher’s salary, but what you want to do is maximize the legal contribution on your 401k because when the time comes, as we say time, and time, and time again, when you stop working the only thing you’re going to have is Social Security plus what you’ve been able to save.


And your school system is giving you a great opportunity to save for your future.  Your 401k is the way to do it.

Okay, great.  Thank you very much.

Good luck, Henry, thanks for the call.

And you can join us as well.  The number is 844-220-0965.  The Oracle of Orlando sound a bit under the weather this week, but I guarantee —

The show must go on.

Roger Johnson is also with us this week.  Folks, these gentleman are certified financial planning professionals.  The number is 844-220-0965 or text us at 21232.  Just a couple minutes from now we’ll go to the News Center.  Dave Wohl has today’s top stories, one being while a teacher says I didn’t do it, there was question about some sex in a portable with a 17 year old.  So, 17 year old is <Inaudible> I think.  Well, Dave will have more on that coming up shortly.  The number again 844-220-0965.  I’d be remiss if I didn’t point out that it’s — is it this week that there’s — do you guys have a Countdown to Retirement seminar coming up?

Yeah.  In March we do, but we’d be happy to run through the quick list of upcoming workshops.  We have a Social Security Boot Camp coming Thursday, February 18th.  The Countdown to Retirement is coming up Tuesday —

Two days ago.

You are correct, sir.  We have not done well.

Oh, that’s right.  You’re just waking up from that illness.  You don’t know what happened the last <Inaudible>.  We had a change of presidents last week.

There’ll be another one of those Social Security countdowns coming up again, but that one’s passed.  Sorry.  Countdown to Retirement is coming up Tuesday, March 16th.  The intro of Basics for Life is coming up Saturday, May 14th.  When Can You Retire: Know Your Numbers is Saturday, June 25th.  So, those are quick breakdowns.

All that is past and present.

All of that information you can grab on our website,  Click on workshops, give you some information.  We hold that in our classroom in Altamont Springs.  I need to check with <Inaudible> not try to sell you something.

Alright, Roger.  We love you, Roger.

Yeah, Roger.

Oh hey, I did this on Wednesday and the workshop was Thursday.  I just want that on the record.

Roger had the flu the past couple of days, poor fella.

Oh, I’m alright.

But, he’s finally outside and it’s going to be a beautiful day, I hope.

Coming up on 9:26 on New 96.5 WDBO.

You know, for like the last 25 plus years the Certified Financial Group has been on this radio station?

I know.

That’s got to be like a record.  And for like 30 plus years, the Certified Financial Group has been a presence here in central Florida.  As a matter of fact, I’ve read about them in Forbes magazine.  Was it Forbes?


Forbes magazine.  We’ll tell you about that later.  Let’s talk to Bobby in Ocoee.  Good morning, Bobby.

Bobby, good morning.

Hey, good morning!

Hi, how can we help you?

Hey, just wanted to know where I can put some money.  I’ve been working my whole life and I’ve saved probably, I don’t know, a little over 800,000.  I’ve got a little over 100,000 in a money market account which — it’s paying me nothing.  But the rest of it is liquidable.  All of it’s liquidable, I just need some advice where to put it and a safe place to put it.

Okay, well safe means that you’re not going to run out of money.  That’s what we determine by safe.  Safe means that you’ll always have enough income.  How old are you, Bobby?


How old are you, Bobby?


48, okay so statistically, I’ve got at least 45 years — 40 to 45 years of life in front of you that we’ve got to worry about you having enough income.


So, there’s going to come some point in time where you’re going to stop working, right?


What do you do?

I do landscaping.

So, see, you’re not going to be doing that when you’re 65, 70 years old, I presume.  At least, probably not at the level that you’re doing it today.  Is that a fair statement?

That’s a fair statement.

Okay, so I understand.  I worked labor in my earlier days and I know the toll that that can take on your body.  So, there’s going to come a point in time, Bobby, when okay the income stops and you’ve got to live off of Social Security.  Are you paying into Social Security?

I am.

Okay, so you’re going to have Social Security, plus you’re going to draw from whatever you’ve been able to save and accumulate.  So, what you need to have done right now, Bobby, is have some analysis done as to how conservatively you can invest that money and still be sure you don’t run out of money when you’re 85 years old.  Unfortunately, what most people do is they do what I call back in the envelope financial planning.  Know what that is?


Well, what they do is they look at what their expenses are and, unfortunately, they forget about half of them because they forget to <Inaudible> pet care, and the vacations, and the dining out, and all that other stuff, and then you look to where my money is going to come from and you get a Social Security projection.  Then you figure out, well, I can draw from my money from then to this and I’m going to be okay.  Well, they don’t factor in inflation, they don’t factor in taxes, and they end up about eight years into retirement and the wheels are coming off.  The good news for you —


— here’s the good news for you, Bobby.  The great news, as a matter of fact, you’re still a young guy.  Secondly, you’ve got a lot of money.  I mean, that is a lot of money.  The key is you need to get it working for you in the most conservative way possible.  Now, having it languish in a 1% savings account ain’t going to get you there, my friend.

I know that.

Yeah, you’ve ever heard of what’s called the Rule of 72, Bobby?


The rule of 72 will tell you how long it will take your money to double given the interest rate and divided into 72.  So, if you can earn 6% of your money, your money will double in about 12 years and will quadruple in 24 years.  If you’re earning 1%, it will take 72 years for your money to double.


So, you’ve got to get your money working for you.  The only way to —

That’s why I’m calling you.

Yeah, and the only way to do that is you need to find yourself a certified financial planner, someone who will do planning for you for a fee, they’re not going to try to sell you products on insurance policies, some annuity, some fix-all, end-all, be-all program, and he or she can lay out for you year by year exactly where your money is going to come from, what it needs to do, and how you can live your life and not look back and say gee, I wish I would have known.  That’s what planning is all about and before you make any kind of investment, that’s what you need to do, right Roger?

That is absolutely right.

Tell them how you do it.

You get it, get a plan, and that’s going to be sitting down, talking about things, getting all the information, let the advisor work with you on getting information from you; your lifestyle, your expenses, not only that, how much you’re spending.  I mean, this is huge.  This is $800,000 is a lot of money, Joe says —

I own about 0.5M in equipment.


And I also own my own home.

That’s good.

I paid for it.

That’s good, very good.


All my vehicles are paid for, I don’t own no credit card debt, so I don’t owe nobody nothing.

So, These are the kind of things we’d have to find out and you got great answers for them, so looks like you’re going to have to —

<Inaudible> a long time ago I started figuring it out, not being in debt would —

You may find that your rate of return that you need to get after you do the plan is maybe 3%, 4%, 5%, something like that, but you need to determine that. So that’s what a plan will do for you is help determine what kind of rate of return you’re going to need over your lifetime to make ends meet and not run out of money. Sounds good. Sounds like you’ve got a great start and we’d be happy to sit down and talk to you things like that.


How does he get a hold of the Certified Financial Group.

I heard you on the radio.

Yeah, just give us a call Bobby at 407-869-9800 or 1-800-EXECUTE as if you’re executing a financial plan, or better yet go to our website, You can learn all about us, and you can learn how we’re different, how we’re different from brokers out there that are trying to sell you something. We sell advice, and that’s the strength of our company as we’ve been doing for a long time.

What’s your phone number to your office.

It’s 407-869-9800. 407-869-9800. There’s nobody there right now but you can give us a call on Monday and we’d be glad to sit down with you, offer you a complimentary consultation, a cup of coffee, and we get — Bobby, we get really detailed when we do planning. When we do our plans, it’s got to fit you like a well tailored suit of clothes because every client is unique. Everybody’s got different measurements, so to speak. Some people want to buy a house in the mountains or buy a condo on the beach or buy a new car every three years or want to travel the world or maybe all of the above or none of the above, but what we want to do is show you — if you want to do that kind of stuff, what it’s going to take to do it, or maybe you shouldn’t be doing it, but that’s what planning is all about. So before you invest your money — and you probably need to get it out of a 1% account, I would think that, but maybe not, and <Inaudible>.


Wait, wait, wait. Let me give you — let me say something. If in fact that’s the case, if you can make it on a 1% account, we’re going to tell you that, and you’ll see it in black and white, but if you can’t you <Inaudible> five or ten years from now.


Well you never know. You never know. It sounds like you’ve got a relatively modest lifestyle, got a house paid for, you’ve got some equipment, got $800,000 in the bank. You may be okay. Now that’s assuming that you’re able to work there for remaining years <Inaudible>.

<Inaudible> and what his goals are. He may all of a sudden have plans to <Inaudible>.

<Inaudible> 1.2, but I’m going to hand that over to my son.


You see what I’m saying — but I can still work in the business, he’ll pay me a check.

There you go, alright. That sounds like a plan.

We’re going to flip it around, I’m going to take his check and he’s going to take mine.

There you go.

Sounds like a plan.

Role reversal.

Good luck to you, thanks for the call.

It’s an Ask the Experts Saturday morning on News 96.5, and this is On The Money brought to you by central Florida’s oldest and largest —


Yes sir-ee Bob, independent firm of certified financial planning professionals, the Certified Financial Group in Altamonte Springs, and with us in the studio the Oracle of Orlando, Joe Bert, is in his customary chair along with Roger Johnson <Inaudible>.


Why they call you The Geez, I don’t know.

Neither do I.

He’s an old guy.

That’s right.

No, no, you’re not an old guy, I can tell you that buddy. Alright, here’s the telephone number if you’d like to join us. It’s 844-220-0965, and why would you call those numbers? Joe, why would somebody want to call and talk to you today.

Because they would like some questions answered regarding their personal finances. As we like to say, we go through life trying some of this, trying some of that, and then we wake up one day, look back, and find we have a collection of financial accidents because there’s going to come a point in time when the paychecks stop and you have Social Security coming in and Social Security plus whatever you’ve been able to save and accumulate during your working lifetime, that’s going to determine the kind of life you’re going to have in retirement. So we’re here to answer those questions, anything about stocks and bonds and mutual funds, real estate, IRAs, 401(k)s, reverse mortgages, annuities, life insurance, all that and more, we are here to take your call, and the good news for you, there are a couple of lines open so if you have any questions on any of those topics or anything else that I may have missed, all you have to do is pick up the phone and dial.

844-220-0965. Plus we’ll get some texts here coming up. 21232 is that number, 21232. Tom in Cape Canaveral has been very patient. Tom, go ahead.

Morning Tom.

Thanks Tom.


I hope you can hear me. Your phone seems to be breaking up.

We can hear you fine.

Okay great. My question is pretty simple. Do you guys have expertise dealing with a trust.

Yes — well, we’re not attorneys, but we — all of our — not all of our — many of our clients have various forms of trusts. What’s your question regarding trusts?

Well, as a trustee I made some changes to the trust, and I haven’t had a tax return filed on the trust for several years because it pays no money, and my changes made it $4,000 last year. I think I need to start filing for the trust again.

What kind of trust is it?

Well, I don’t want to go into the details, but — so I need to come in and explain everything in person, I think, and get up to speed — up to date with a tax return 415.


Do you do that?

We do not do tax returns, but I am familiar with what your situation is. So it sounds like you have an irrevocable trust or what’s called a testamentary trust that was created a death <?>, and yes you have to — if you have income you have to file a tax return.

Right, okay.

Well, the good news is you’re making some money though.

Yeah. That’s the scoreboard <?>, making money.

Now the key is, to minimize the taxes you want to distribute that income because if you don’t it’s going to be taxed at the highest rate. Trusts —

The trust wasn’t set up that way. I guess as the trustee I could maybe change some of the wording, <Inaudible> revocable trust, but I don’t know if I can do that.

Without seeing the trust, and once again we’re not attorneys and we’re going to need to get an attorney involved, <Inaudible>.

Which we can —

We can refer you to one.


Give us a call, we’ll help you.

What’s your website?

Financialgroup —

I’m not in a position to write down the phone number.

It’s easy to remember. That’s all it is, piece of cake.

Thanks a lot guys.

Thank you Tom.

Have a good weekend.

You do the same.

Thank you very much. Let’s talk to Ron in Daytona Beach. Good morning Ron.

Good morning, how are you.

Good morning, Ron, how can we help you?

Yes, I’m in my 40s and I own a business and I also have a 401(k) from a previous employment, and I’ve been debating about draining that money to purchase a house. I own a house, so the home would be for an investment, and I want to find out if it makes good financial sense to do that, and I also thought about turning it into a trust for my son, that way he gets the cash flow every month.

Alright, well the — let’s tackle the 401(k) idea, buying a house with it. Maybe making a total withdrawal from that and buying a house would probably be not so wise due to the taxes that will be due. Depending on your situation — and who’s going to live in this house, by the way? Is this going to be a business or is it going to be a residence?

It’s going to be a rental.

Okay, so it’s a business venture, right.


Okay, well then you may choose to do a — use your IRA to purchase a rental property. You have to do it the correct way, don’t do it just willy-nilly. You really need to do the research, talk to the right people about that, but you could use an IRA that is self-directed by you to purchase and maintain a rental property. You just can’t live in it. It can be self-serving like that. So that’s something — I mean we don’t do that at the office but we have referral people that we could talk with you about, see if that really makes sense for you to do, but the numbers have to work and all your expenses need to be paid out of that IRA and it’s quite involved, there’s a lot of accounting involved. You have to get the right trustee to handle that kind of thing, but that’s one of the options. Now, as far as taking money and using it, you were saying something about your son getting income.

Well yeah, what I’ve been debating about doing, my credit score is phenomenal, but because I just opened a business in the last two years, my — I don’t have any real verifiable income, and this home, they’re willing to sell it for like $15,000 under market value due to the fact that it’s basically like an estate sale. And it’s close to me. So I spoke to a few banks, and they said your credit score is good, your <Inaudible> money is good, but we can’t give it to you because you can’t prove income. So then I was looking at my 401(k) that I have enough in there just to purchase the house outright, and what I figured I would do is put my son — set it up as a trust for — I have a minor son, that way he gets —

He could be the beneficiary of that IRA. I don’t know that you really want to get involved in making — getting your son involved in some kind of a trust with a 401(k) and also — again this is all good planning ideas, but to make sure it’s done right it really needs to be — you need to sit down and really get down through the numbers, make sure you’re going the right direction. Joe, what are you thinking?

How much are you talking about taking out of your 401(k) to buy this house?

About 65,000.

65,000. And you have no other income?

I have a business. But it’s not showing — the last two years it’s showing a loss, but I’ve gotten — I’ve been able to meet all expenses with it.

I understand. I understand. Are you married?

I’m divorced.

So you’re filing single.


You have no income, but you’re going to take $65,000 out of your 401(k) — how old are you?

I’m 45.

45. Well, you’re going to get hit with a 10% penalty plus taxes on the $65,000, quick calculation here. You’re probably going to end up costing you about $15,000 to get that $65,000 out of your 401(k). So that’s a decision you have to make. But you know, what the heck. I’m not crazy about this idea about putting this trust deal on your son, that sounds like of convoluted. How old is your son?

He’s 15. Why would you do this for him at this point?

That way he can have money — guaranteed money for the next 20 or 30 years.

How about a job?


Right I mean, what’s — what do you mean you’re going to set him up for an income stream? He’s 15, let’s get him working. Let’s get him trained to go into <Inaudible>.

Oh definitely, but I’m also thinking about it <Inaudible>.

You worry about your income — main thing first is you, planning for your retirement, and then whatever you end up passing away owning goes to your kids. Setting kids up for income streams, I’m not too big on that. Joe, don’t you agree?

Yeah, I mean if your son was —

Now — what do you think about — like I would be pretty much taking my 401(k) down to nothing if I did that.


To pull out the money for the home and to cover all of the taxes.


To buy a house with that versus leaving it into a 401(k).

Well first of all you’re going to take like I said a $15,000 haircut right off the top, so the money you thought you’re buying the house, your $15,000 out of the market, well you just blew that .

Yeah, you just paid it in taxes.

And now you’ve got the aggravation of the rental property. Some people like doing that, some people say it’s the worst thing I ever did.

I would really suggest you look into using your IRA to purchase this real estate if you have to have this real estate and look at an IRA custodian that will do the accounting for you. You’re going to pay a fee each year, but this rental property would be part of your IRA plan. You could sell it, you could take a loan to buy it. You don’t have to pay cash for it, but it all has to be done through this IRA. I suggest you look into that before you go biting off an extra $15,000 in penalties.

But you have to roll the 401(k) into an IRA with a custodian that will allow you to buy the rental property.

It is doable, Ron, but I’m not sure after you’ve jumped through all the hoops that it makes sense unless this is one hell of a rental property. It could be part of your portfolio, and it’s just one thing to consider. Maybe you really have to have this and you have to take the — bite the bullet and take that big expense in addition to paying for it, you may have all these taxes, and maybe that’s the best way, but you really need to consider all the options.

The other thing is you’re starting decisions <?> but I’m sympathetic about entrepreneurs, I love them <Inaudible> myself, but starting a business you’ve got — I don’t need to tell you the challenges you have in your business, and if this is your liquid cash you may need that cash to keep this dream alive in your new business, so if you’ve got it tied up in a rental property, that’s not such a good place to be either. That’s another consideration.

Right, and I thought about that, but then I’ve also thought, I’m in my — I’m 45, I’m kind of at the point where I should just go big or throw it all in and be done.

No, you’re still a young guy. My gosh, you’re 45 years old. Throwing in — you’re <Inaudible>.

You’re in the prime of your life here my friend.

Take another multiple vitamin and get on out there.


I would — there’s a lot of considerations here, hopefully maybe we’ve given you something to think about.

Yes, yes you have. <Inaudible>.

Feel free to give us a call and talk about it, Ron, I mean <Inaudible> radio if you want to come in, sit down, we’ll do a complimentary consultation, and we’ll crunch the numbers. We’re talking, and we don’t know the rest of that story really. We don’t know what else is going on in your life other than what you’ve told us here. We really need to know that before we can give you some good advice. So feel free to give us a call.

Appreciate the call. Thanks Ron.

Alright, let me give you the telephone number here in the studio and we’ll give you the telephone number for the Certified Financial Group as well. The number in the studio is 844-220-0965. 844-220-0965. Text us at 21232. 21232. The number of the Certified Financial Group is 407-869-9800, or 1-800-EXECUTE, as Joe said, as if you’re executing that financial plan. 1-800 —

It’s On The Money brought to you by the Certified Financial Group in Altamonte Springs. Joe Bert’s in the studio along with Roger Johnson. Both these gentlemen are certified financial planners. We’ve got some folks on the phone here. If we can’t get to your call by the end of the program, you hang on, you’ll get a private consult with Roger Johnson here. Oh, we have Deborah on the line and she just dropped off. Deborah, <Inaudible>. Sorry Deborah, I don’t know what happened to you. So we’ll get to Grady who’s on the road. Go ahead Grady.

Grady, good morning.


Good morning.

How can we help you?

Well, I am —

Quickly now.

Let’s see if I can start at the beginning. I — <Inaudible> my wife and I own a trailer repair business and my mom has some stock, and I am completely — I know anything in the world to tell you about trailers, but I know absolutely nothing about stocks. Don’t know where to start. And she’s got these stocks that will come to me upon her death, so they’re transfer on death, and once that happens I don’t know what to do. I know again nothing about stocks.

Okay — the bottom —

Also driving down the road, so it’s difficult for me to write.

Grady the good news is if it’s a transfer on death, it will pass to you without probate. You’ll get what we call a step-up in basis which means you’ll take over the value at her date of death. You can <Inaudible> the next day for absolutely no income taxes. And then you’ll have to decide if you want to keep the stock or if you want to sell it and reposition the assets to provide for different outcomes for you and your wife.

Alright, hey, so how would somebody get a hold of you during the week.

Well, the best way to do it is to go to our website,, and click on consultation, or just pick up the phone and call us at 407-869-9800. We’re at 1111 Douglas Avenue in Altamonte Springs.

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