Hosts: Nancy Hecht, CFP®, AIF® and Joe Bert, CFP®, AIF®

It is an ask the expert Saturday morning 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.  And every Saturday morning for the last 25 plus years, On The Money has been here every Saturday morning with the Oracle of Orlando, Joe Bert. Good morning, how are you, Sir?

I’m fine.  Good Morning.

And Nancy Hecht, author of the Hecht Effect and A Man Is Not A Plan.  Good Morning, Nancy.

Good Morning.

How are you?

I’m doing well, how about yourself?

Oh, I couldn’t be better.  Thank you very much.  Guys anybody who may be new to this program, what do you all take calls about?

Well, Nancy and I are here to talk about anything that’s on your mind regarding your personal finances.  As we often say, we go through life trying some of this, trying some of that, wake up one day and find out we’re at or near retirement age and we have a collection of financial accidents.  The reason that that happens is because they don’t teach us this stuff in school, so we get well intentioned advice from a lot of good people.  From our neighbors, from Money Magazine, from our co-workers, from our stock broker, from our CPA, from our insurance guy, and we find out it really isn’t a plan.  One of these days, that paycheck is going to stop.  Social Security will be coming in and then what you’re going to live on is Social Security plus whatever you’ve been able to save and accumulate during your lifetime.  So, during our lifetimes, we have to answer a lot of questions that revolve around stocks and bonds and mutual funds and real estate and IRA and 401(k)s and annuities and long-term health care and reverse mortgages.  All that and more.  Nancy and I are here to take your calls and answer any questions that might be on your mind, and  believe me, there’s no such thing as a dumb question.  In fact, you can call and not even leave your real name, if you’d like to do that.  The good news for you is the lines are absolutely wide open this morning.  All you have to do is pick up the phone and dial 844-220-0965, or you could send us a short text from your mobile device.  The text number is 21232, or your voice can become part of the program.  Use your open mike, you’ll find that on the News 96.5 app.  Nancy Hect, of course, you and your colleague are notoriously famous, or should I say famously famous for your workshops on Social Security.


And everyone of them is like a filled up to the brim with folks.  Do you have another one coming up anytime soon?

We have one April 17th.  That’s a Thursday and it’s from 11:30 to 1:00.  We just had one this past Thursday and we had a full house.  So, if you are interested, Denise Kovach and I will serve a light, light lunch and present some current Social Security information, answer your questions, but reservations are a must.  So, they can go to our website, which is and click on the workshop tab and make a reservation for Social Security Boot Camp, April 17th, 11:30 in the morning.

That website again is?

Just click on workshop.  You can make a reservation there for that workshop and all the other fine ones we have coming up.  Once again, these are free, complementary, no charge, leave your checkbook at home.  And people ask why do you do that Joe.  We do it for two reasons.  1. We are seeing folks come into our office that have really made some bad mistakes over the years and we’re trying to give you some education to really trying to help you out and at the same time, tell you a little bit of something about our firm.  How we do planning for a fee, for our clients.  And how we’ve done it for years.  This way when they need financial planning now, or wealth management, perhaps you give us an opportunity to earn your business.  So, you go to our website, that’s

As a matter of fact, next week’s most recent <?> is all about Social Security.  We’ll get to that first, but we need to take some calls.  This is Tim in Orlando.  Good Morning Tim.

Morning Tim.


Hi.  What’s your question Tim?

Yeah, I used to work with the county government here and they sent me a form because I’m no longer with them  and I’m not in the Florida retirement system.  They said I could take — start taking the money now, or wait until I’m 62.  And I just wanted to find out what would be better.  For me to wait until I’m 62, or start drawing the money now?

Is this money that was — is considered tax qualified, is it some type of retirement plan.

Did you say 450?

Yeah, it’s in the Florida Retirement System.

Okay, alright.

It’s called the FRS. Yes.

And you’re how old now, Tim?

I’m 57.  I’ll be 58 in September.

Okay, so, if you take any of the money before 59 and a half, you’re going to pay a 10% penalty.  Do you happen to need to take the money now?

Well, I mean it wouldn’t hurt.  I could use it, but I mean that’s just — that’s why I wanted to find out what would be more beneficial to me because I could always go get another job <Inaudible>

Ahhhh.  Now we’re talking.

So, what would be more beneficial for you, Tim, is to roll that over into a traditional IRA or rollover IRA and let it continue accumulating tax deferred until retirement age.  And if you can get another job, then you do the same thing.  You start saving into your retirement.

Tim, let me ask you some questions here.


This is obviously — how much do you have in the plan, do you want to tell us?

There’s about 25,000 in there.

Do you have any other savings and investments?

Yeah, I do have a Roth and I also have a 401(k) with my current job.

Oh, okay.

Okay, alright, good.

So, you’re going to continue to work? I hope.  Oh, you said your current job.

Yeah pretty much right now yeah.

Okay.  That’s what you need to do my friend, because frankly, unless you’ve got a lot of money stashed away in that Roth and the 401(k), you’re going to be short when it comes time to live.


Because you’re going to continue to have living expenses and Social Security is not going to cut it.

Yeah, I know.

And you’ll want to take Social Security at your full retirement age, which in your case is probably going to be 66 and a couple months.

No, for him it’ll be 67 and 10 months.

<Inaudible> help you know that well, huh?


He’s a little bit older than me, so yeah.  Yeah.


Or maybe, yeah 67.

66 and 10 months, which is basically 67.


So, Tim, this is what you have to focus on and we see this an awful lot with clients coming to our office.  They’re tired of working and 58, 59 years old.  I’m 60.  I want to go fishing, I want to relax, I want to enjoy life and the problem is that they retire too soon and they find out — they wake up when they’re 72 years old, flat broke.


And you’re probably thinking more money today then you were 10 or 15 years ago, I would think.


Okay, so you’re at your peak earning years.  Like most of us, you get up in your 50s, your peak earning years.  You need to be stocking that away and putting that in your 401(k).  You need to max out your 401(k).  At your age–

I’m doing that now.

Alright, then.  Let me ask you about maxing out.  Some people say well I’m getting the match, so that’s maxing out.  That’s not right.  Right, Nancy?

No it’s not.  You’re saving close to what the federal government limits are as opposed to your match.

Yeah, I’m doing 10 cents on the dollar, so that’s —

Well, okay.  The maximum that you can put into your 401(k) pre-tax is $24,000 at your age.  Per year.


Per year.  I don’t know if you can do that, but that’s what you ought to be striving for.


And that will get you a long way to retirement comfort.  Now unfortunately, most people don’t want to do that.  They want to spend the money today, and don’t save for tomorrow.  But, Tim, that’s what you need to do.


Okay, so the answer to your original question.  You need to rollover the 457 and let it work for you for your remaining working years.



Alternatively, you can roll that into your 401(k) plan.


You can do that as well.


But keep it tax qualified.

Right, don’t cash it out and don’t pay the taxes until you have to.


Alright, man, thank you.

Thank you for calling.

Alright, thanks for your help.  Thank you.

9:15.  It’s a quarter past nine on News 96.5 WDBO.  James Wallace in the news center coming up in five minutes.  He’ll tell you about the capture of Europe’s Most Wanted Terrorist and Trump is calling Romney names and vice versa, along with weather.  That’s just in a few minutes.  Barbara is on the phone in Orlando.  Good morning Barbara.

Good Morning.

Good Morning.

Good Morning.  Thanks for calling.

I have a question about — I have a marriage settlement agreement that says I have to collect my Social Security at age 65, even though that’s not really my retirement age.  I was wondering if I could go ahead and collect mine now, at 62 and then when my ex-husband retires in seven years, if I could switch over and collect half of his?

Okay, well there’s a couple things that you need to be concerned about.  First of all, if you start taking your’s at age 62, you’re going to take a permanent reduction in your Social Security, of 25%, because you’re taking it before full retirement age.


One second please.

How old is your husband?

Ex-husband.  He’s 57.

Okay, so and then in regards to that, with the changes that just went through last quarter of last year, to Social Security.  It used to be you could file on an ex-spouse when you reach full retirement age and get the spousal benefits.  Regardless as to whether the ex-spouse has filed or not.  So, this — and that has been set aside.  So if your ex-spouse, when he reaches full retirement age, says well I know I have this thing written and she’s supposed to file at 65 and she can get the spousal benefit on mine, but I don’t want her to get it.  If he does not file for Social Security, you cannot get the spousal benefit at full retirement age.

But if he does file, I could get half of his?

Correct.  But you have to be at full retirement age first.


What’s — I presume you’ve been employed too, Barbara?

Yeah, well not — most of the marriage I was not.


So, I don’t have that much money in to —

Okay, so your benefit is going to be whatever benefit you get.

Yeah, I mean you would do better waiting until full retirement age if you can afford to do that, and then —

I can’t do that because of the marriage settlement agreement.  It’s very specific.  Age 65.

Were you married 10 years?

I was married 25.

25, okay.  So your agreement says you have to wait until 65.

At age 6 — if I reach 65, he gets to reduce alimony by the amount of Social Security that I collect.

Un-huh.  Got it.

Got it, got it.

Yeah, so again if you take it prior to that, then you’re going to have a permanent reduction, even on the spousal benefit.  So, if you can afford to wait, then you should.  If you can’t afford to wait, then you can’t afford to wait.  And you do what you have to to support yourself.

But, I’m still trying to figure out if I can collect on his when he retires, and just switch over to the spousal.

At full retirement age, you can switch over to spousal, but it’s going to be a permanent reduction.  I mean, you know, even if his is more than yours, you’ll get a spousal minus the 25%.

Oh, okay.

Yeah, and that’s the — you carry that through your lifetime.  You take a reduced benefit throughout your lifetime.

Well, I’m stuck.

Yeah, well and the other thing you’ll have to look at is if you do start it at 62 on reduced benefit, you have to look at really getting this decree amended because it says 65.  Because he’s going to reduce his payments to you by a certain amount.


So, you may want to see your attorney and be sure that this can even be done on your behalf.

And then you have to make sure that with the new changes that went through to Social Security that, you know, there’s not a little fact of you know, I’m not going to file and she won’t be able to get mine.  You have to make sure that he absolutely files.  I mean if you have to draw at 65, then he has to file at retirement age.


You might want to revisit your agreement.

Alright.  9 — coming up on 9:20 on News 96.5 WDBO.  Thank you for the call.  You could join us as well.  Here’s the number 844-220-0965.  Or send us a text at 21232.  This hour was paid for by the Host and does not reflect the opinion of News 96.5

It’s an ask the experts Saturday morning on News 96.5 and this is Billy Joel live in concert.  It’s Joe Burt and company.  He’s bringing the next best thing to Orlando.

Certified Financial group that is bringing the Billy Joel, Elton John tribute to the Springs community in Longborough <?> May the 7th, under the stars, around the spring, the natural springs, the Orlando Philharmonic will be projected out there on the water and you sit back with your adult beverage and blanket and sit back and enjoy the music of a fine tribute band that they’re bringing in, backed up by the full complements of the Orlando Philharmonic.  So, if you want more information, you can go right to our website that,  Click on the right at the banner there under the tickets, and it’ll take you right to order your tickets.  I understand the ticket sales are well ahead of what they were last year when we brought in the Eagle tribute.  So, if you want tickets, you need to do this ASAP.

Elton John and Billy Joel.

What a combo, huh?

Well not them, personally.

Close your eyes, you couldn’t tell.

Yeah, yeah.

Yeah, the music up.  You know, I said this last week.  The Philharmonic has been doing this for several years.  I remember when they did the Beach Boys and the Beatles and so forth, and I did not go.  We weren’t active with the Philharmonic back then.  And I presume that the Philharmonic was going to play the music of the Beatles and the Beach Boys and whoever the featured artist was, but they actually bring in a tribute band that does a phenomenal job of playing the music of those bands, backed up by the Philharmonic.  It’s really, a really a great performance.

Yeah, go to the website, to find out more.  Let’s talk to Larry on the cell phone.  Good morning Larry.


Yep, hi good morning.  Thank you for taking my call.

Good morning.

Good morning.

Sure, how can we help you?

Yeah, I’m — I’ll be 70 in August.  I have never applied for Social Security.  I have no clue of what I would get.  I’m sure it wouldn’t be a lot.  It doesn’t matter.  I’ve worked for myself for the last over 40 years, but anyway, my wife passed away a year and a half ago.  I have a lot of real estate.  I have rentals and some other businesses that I kind of attend to.  But my question is, I really don’t know what do.  I owe no one anything and I haven’t for years.  I was kind of wondering what kind — I hear you talk about 401s, I hear you talk about all of that.  I don’t have a 401, I don’t have anything.


<Inaudible> I have about 300,000 in the bank, but I’m just kind of there, you know.

As far as retirement savings goes, Larry.  Because you’re 70 — at 70 and a half, if you have a retirement account, you would have to do required minimum distribution.  If you’re working over the age of 70, unless you have a 401(k), which if you’re self-employed, you could have a solo 401(k).  You cannot make retirement contributions.  If you’ve not taken your Social Security yet, and you don’t know what you’re entitled to, if you go on and set up access, then you can start getting your Social Security because you have waited beyond what is considered full retirement age with Social Security.  You’ve gotten an 8% a year bump up.  So, —

What is the retirement age though,  <Inaudible>

Well, for you it was probably between 65 or 66.  So, you’ve gotten the extra 8% for three or four years so —

How long can I wait?

Well, I mean you can really wait forever, but you’re entitled to the money because you contributed.  Yeah, I mean why — why let it just sit there and you know unless you want to be philanthropic to all the other people that eventually will get Social Security.  But, I mean you’ve paid in to it, you might as well start paying yourself out of it.

There’s no benefit to wait Larry.  Your maximum you get when you turn age 70, so its —

It’s not going grow anymore.

Here’s the incredible thing for you.  It sounds like you’ve done a reasonably good job of accumulating assets.  You have Social Security, you have 300,000 sitting in the bank.  How’s your health?

My health is good, real good actually.

Okay, well that’s good.  That is good news and bad news.  The good news is you’re in good health, the bad news is you’re in good health and you’re going to live a long time.  So, your money really has to last you because there will come some point in time when you’re going to be drawing off of the funds that you have and if you want to maintain your lifestyle.  The best thing for you Larry, is to — at the risk of this sounding self-serving, is to meet with a certified financial planner and have him or her design a plan for you, that you can see clearly as to how it’s going to play out with you.  With inflation, with taxation, so you can maintain the lifestyle that you want.  Take the vacations that you want, buy the cars that you want, do the things that you want and put your head on a pillow at night and be comfortable knowing that you won’t run out of money.  So, that’s the first thing I would do, is I would meet with a certified financial planner and have him or her design a plan for you, for a fee, not for somebody that wants to sell you something that’s not even an insurance policy.

Okay, thanks, exactly.

It’s an ask the expert, Saturday morning on News 96.5 WDBO playing the music of Elton John.

Oh that’s right.  How about that.

The certified financial group is bring your tribute bands here.  We’ll tell you more about that coming up.  And how you can get tickets to the show.  First, lets get back to the phones.  By the way, if you want to join us with a question about, Joe, what are you taking calls about?

Nancy and I.

Let me start at the beginning.

Ha Ha.

Nancy and I are here to take any questions that you might have regarding your personal finances.  As we say, you’re going to reach retirement someday, and what you’ll have is what you’ve been able to save and accumulate during your lifetime, plus Social Security.  So, we’re here to clear up the fog.  Answer the questions about all of the things you wish you knew about stocks and bonds and mutual funds and real estate and long-term health care and IRAs and annuities and reverse mortgages.  All that and more, we’re here and the good news to you,  there’s still a couple of lines open and all you have to do is dial 844-220-0965.  And we were talking with Larry, I believe.

And Larry, I think you had another question.

Yes, my quick questions is I don’t understand how it works when my wife passed away, we had a lot of — we still have a lot of real estate and it was in our joint name Then it was in our joint names <Inaudible> somebody tells me that I can step up on that and not end up paying on the taxes <Inaudible> in the last couple of years.


I’ve been able to, with the depreciation et cetera and came out alright.  But now I’m thinking about selling a couple of $1M worth of property in the next four to five years.


Now I’m getting a little excited.  Can you explain that and I will shut up.  Thank you.

Sure.  Sure.  Sure.  You own the properties joint with your wife, so she owned half, you owned half.  The half that you inherited can be valued at a stepped up basis on either her date of death or I think it is six months forward, whichever is more advantageous.  So if you had bought the properties lets say for $50,000 and then when she passed away her half was worth 150, that’s your basis when you sell for her portion of it.  Yours is still at the original but hers can step up to the appreciated value.


He said he was going to hang up and listen so if you have more questions Larry please feel free to call our office Monday through Friday, 8:30 through 5:30, 407-869-9800.

One thing that’s running through my mind he might be able to get a survivor benefit for a period of years too and then step up and get his at 70.

But he’s already 70.  So —

He’s close to 70.

I thought he said he is 70.

Oh he’s 70 <Background Noise>.

Go and — file through Social Security Larry.

Get that Social Security.

You might as well take it, you paid into it all those years.

Okay lets talk to Stuart here. Good morning Stuart.


Thanks for hanging on how can we help you.

Hey thank you I’ve been a listening Joe for 23 years.

Well great.

This is my first time I’m calling in with a question.

Okay that will be good.

It’s about an IRA contribution.  Here’s the situation, I’m 77, I’m still working and working part-time and I’d like to know if I can contribute to my IRA, as long as I’m working.

If it’s a 401(k) through your employer yes, and you still have to take your required minimum distributions.  If it’s an individual retirement account or a Roth, no you cannot.  So are you working for somebody that has a 401(k) and would allow you to participate as a part-time employee?

Yes.  I think I could do that.  Can you tell me what the maximum would be?  Maximum contribution?

$24,000 is the maximum you can put in the plan, at your age.


Does that help you?

Assuming that —

Yes sir it does.

Assuming that your income is $24,000 <Inaudible>

Well it has to come out of his paycheck, so it has <Inaudible>.

Well it won’t leave me much after that but RMD is eating me up right now.  I just want to kind of offset that.

Yes it could.

You still have to take the RMD.  Actually let me ask you this.  You’ve got a 401(k) — hang on here I just had an idea — you’ve got a 401(k) at work right.

Yeah I’m not in it yet but I can get in it.

Okay.  Alright.  And the RMDs from your IRAs are eating you up.


Do you want to stop the RMDs.

<Background Noise>.

Roll them into your 401(k).

Oh my God, what a great idea.

That’s why we are here.

Now you are telling him over 70 and a half he does not have to take his required minimum distribution, unless you are a 5% or more shareholder.


So you could shut off the RMDs, roll it into your 401(k) —

Assuming that you don’t need the income from them.


Or rollover as much as you want.



Never thought of that.  Thank you very much.

23 years later, at least we got the answer for you.

Alright Stuart thank you for listening.

The number to call is 844-220-0965.  We’ll get to some of these texts here coming up shortly.  But here is Herb.  Good Morning Herb.

Hi Herb.

Hi, good morning Herb.


What’s your question?

My question is that my father-in-law passed away a couple of weeks ago.  He lives in a home that we paid out of pocket.  So there was no Medicare or Medicaid or any of that involved.  It was strictly an out of pocket deal.


Now we sold his house, his condo oh probably three weeks before he passed away, that was an all cash deal, that money was everything that he had, all of his money and some of my wife’s money, which is his daughter.  He has a daughter and a son surviving, and in the will it says to split it evenly.  Which I have no issue with any of this.  My question though is that all the money — the house only went for like 50,000 by the way.  So <Inaudible> joint account with — in his account with his daughter.

Let me make sure — I lost you.

With his wife — yeah.

With his wife?

No, his wife is gone.

With Herb’s wife.


Common term with your former father-in-law and your wife.


I thought you were talking about her brother but go ahead.


Well so there is like $85,000 there.  Between his checking and his savings account.  Now my question is that now do we have to — because we were told that the money <Inaudible> joint account is really my wife’s now.

That’s true.

So —

Wait a minute how did it end up in her account.

Because it was deposited into an account that was already set up that was joint between the father and the wife.

Who is the executor of the estate <Inaudible> that?

He did.  He did six years ago when his wife died he settled <Background Noise>.

So this was set up before he retired.

And the house was set up before he passed away.


Okay.  That’s right.



Okay so your question is does she have an obligation to her brother <Background Noise>.

My question is does that how long do I have to wait before I can just write the brother a check for half the money in that account.

Well as long as all the debts of the estate are settled and paid there really is no time limit.

Okay.  So in other words I don’t want the government to come and say well you owe 25% of some kind of tax or probates or whatever.

Well if it’s in a checking — well probate — there was a will.  Well first off the account is joint so it is going to pass by title.


So that account would not go through probate, so you don’t have to worry about that.

These are accounts.


They are both joint.

As long as they are going to pass by title so you don’t have to worry about that.  I would just be concerned about settling the <Background Noise>


Of the estate and then once that is all done close the accounts.

There is no settling the debt because he didn’t owe anything.

Alright.  That’s fine.

Well then you <Background Noise>.

<Inaudible> already notified Social Security which said that they would and I notified his life insurance policy, which we already each got half the check.


His daughter and his son each got half of the money, they did that right off —

If there is no other use for the account Herb then write your brother-in-law a check for the remainder and we are very sorry for your loss.

Thanks for the call Herb.

Alright Herb thank you very much again.  The number to call 844-220-0965.  Dave Wall is in the news center coming up in just about three minutes he’ll tell ou about <Inaudible> of Europe’s most wanted terrorist.  Lets go to Michael in Titusville.  Good morning Mike.

Good morning thanks for taking my call.

What’s your question.

I retired from the U.S. Postal Service under a RIF three years ago and I had some rental property that is starting to come up to a period that everything will be paid and I’ll start making a profit.


The Social Security supplement that’s provided requires that for every $2 I make, $1 gets depreciated on my supplement.  Am I better off putting the rental properties in some type of business so I don’t lose my Social Security supplement?

Lets stop and go back a second Michael.  So for our listeners that don’t know what you are talking about with the pay back $2 for every $1.  You are under full retirement age, correct?

How old are you Michael?


Okay.  Alright.

It was a RIF.

Right so a deduction <Inaudible> I understand.

Your question is what should you do with the rental — how should you treat the rental properties is the question?

Should it be owned by a business that he establishs or come to him just as it is now.  That’s what he’s asking.

Right because it is going to start making a profit and I think I deserve the Social Security supplement that I put in, and the time and what not.  So I want to see how I can capitalize most of my money.  So I put it in a corporation and <Inaudible> so I sell it for capital gains or —

Let me ask you a question Michael.  Why are you calling it a supplement?

Well because Social Security supplement, it’s not a real Social Security.  They only pay the federal government through the <Inaudible> pays you the Social Security supplement for the value — for how many years divided by 40 that you have.

Okay, it’s the postal service.

It’s not actual Social Security <Background Noise>

I’m not up to speed on what the offset is and how that works Michael, maybe Nancy can.

Well I mean my concern is whether it’s in a business or in your name personally the operative thing is how much are you getting in income, adjusted gross income, being under full retirement age.  Whether it is coming from — your paying yourself from business or you are getting it directly from the renters.  It’s the income that you are showing on your tax return and if it’s above the 15,300 —

15,740 but it could — W-2 income is going to be different than money flowing through from rental properties.  So


Michael this is — this is a CPA question —

I was just going to say yeah you need an accountant.

This is a CPA question because it might not even be worth it depending on how much income we are talking about to jump through all these hoops and file all these tax returns.  Then you have to decide if the one you want to set up is an LLC, an S corporation or a C corporation.  Then how do you transfer the real estate titles into those companies that have bases in those companies to begin withdrawals.  There is a lot of questions that we just can’t answer on the phone.

But if you don’t have or don’t know of a qualified certified public accountant in Titusville then let us know.  A number of us have clients in Titusville and we can ask our clients for referrals.

Right back to the phones because we’ve got a lot of people wanting to talk to you today.

Lets do it <Inaudible>.

Tom go ahead.

Well hello I had a few quick questions pertaining to the 401(k) distributions.  The questions are what is the minimum distribution that must be taking .

3.65% of your 1231 balance of all your qualified accounts from last year.

When you turn 70 and a half.

Did you say 3.5%?

3.65%, and that changes every year.  The percentage and the amount has to be paid out changes every year.

Are you 70 and a half?

Actually it pertains to my sister-in-law husband I was calling about, but yeah.

Unless he still works <Background Noise>.

If he’s still working he doesn’t have to take anything out.

Okay.  Oh if he’s still working he does not need — have to take anything out?

Unless he’s a 5% shareholder than he has to start withdrawing.

Is that taxed — ordinary regular income tax rate or special tax.

That is your regular income.

Then also if the person is supposed to take distributions and they do not — <Background Noise>

50% penalty, plus the regular  taxes.


Plus taxes.

So in other words to say if they were to take out — if they had to take out $1,000 for example and they did not they would have to pay <Background Noise>

$500 penalty plus taxes on the $1,000 they didn’t take out.

Oh my goodness.  This is terrible.

You can’t miss it.

RMDs are important.

I see okay.  Well thank you voicemail.

You’re welcome Tom thanks for the call.

Alright lets see if we get Mike in here.  Good morning Mike.

Hi Mike.

Hi guys.

Good morning how can we help you.

Yeah <Inaudible> but I’m 48.  I owned a small <Inaudible> hotel which is leased right now.  So are deriving income from it.  Kind of my question is specifically debated back and forth whether I should start contributing to an IRA or a 401, <Inaudible> program.  The <Inaudible> I’m getting ready to buy another <Inaudible> which is an income producing <Inaudible>, and I just kind of look at all these rules like you were just talking about with the <Inaudible> and I go jeez at 48 should I just continue on my plan and turn into Larry when he’s 70.

Just to be quick and you are definitely a candidate for full financial planning but do you have full time employees?

No I don’t because — not right now and I don’t forsee that.

So you can do a solo 401(k) and stock the maximum away for yourself in tax qualified plan, then be able to take the deduction.  There is no reason for you not to save for yourself.

Well I just wonder because I reinvest what I would put in a 401 in other buildings and businesses.

That is not <Inaudible> if you are a real estate kind of guy and you want the liquidity it is probably not going to work for you, Michael.

Okay Pat I’m going to ask you to hang on, you are going to get a private consultation with Nancy Heck.  Everybody who texts you are going to  get private answers from Nancy and Joe.  If somebody wanted to get a hold of you Joe and Nancy during the week how would they do that?

Just go to the website, which is I think the quickest way to do it.  Don’t you Nancy.

Sure unless you want to call the office at 407-869-9800.

Alright.  Thanks a lot stay tuned for Dave Wall in the news center and then it is Florida Homes and Gardens.  It is Central Florida’s longest running home fix up show.  That’s straight ahead on this Ask the Experts weekend on News 965 WDBO.

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