TRANSCRIPT FOR THE MARCH 4, 2017 “ON THE MONEY” SHOW

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

Hello everybody and welcome to another edition of on the money with Certified Financial Group here on this 96.5 WDBO Ask the experts weekend.  We’ve got Joe Bert and Nancy Hecht Certified Financial Group here in the studio taking your phone calls at 844-220-0965.  Joe, how are you today?
I’m doing great.  How are you?

I’m excellent.  Enjoying this nice cool 58 degree weather.

Just about my threshold.

<Inaudible> no, no no.

85 degrees is great as far as I’m concerned.

I’m always hot.  I’m one of those people.  I’m always hot.  So 60s is comfortable for me.  My wife on the other hand, freezing cold.  No, put the heat on.  Put the heat on?  It’s only 60 out.  Put the heat on.

I’m with her.

Anybody else that’s bundled up in the bedroom today, just turned on the radio and not getting out of bed, go ahead, sit by, enjoy the cup of coffee.  We’ll entertain you for the next couple of hours and may possibly give you the path of how to be a millionaire by the time you retire.  That’s what Joe and Nancy always do each and every week here in on the money.  They look at me and like oh yeah, really, yes I’m going to be a millionaire when I retire because I’ve been listening to this radio show for 10 years.

You’re on track my friend.

What can the audience call you about today?

Nancy and I are here to talk about anything that’s on your mind regarding your personal finances.  As we say, we go through life trying some of this, trying some of that, wake up one day, we’re staring retirement in the face and realizing we have a collection of financial <Inaudible> and don’t have a plan.  That savings and investments, hopefully you’ve been accumulating over your lifetime, you have to turn that into a stream of income and that’s what Nancy and I and other certified financial planner professionals at CFG do day in and day out for a fee.  But on Saturday morning we are here absolutely free.  Should you have any questions regarding your personal finances that have to do with decisions you might make about stocks and bonds and mutual funds and real estate, long-term healthcare, IRAs, annuities, life insurance, or first mortgages, anything along those lines, or anything else I may not have mentioned, just pick up the phone and dial.  Good news for you, those lines are absolutely wide open.  There’s no waiting this morning.  While we’re talking about waiting, I just want to mention that Gary Ablee is having a countdown to retirement or know your number workshop this morning, everything you want to know about retirement, planning, he’s going to be doing that at our office from 11:00 to 1:00.

Actually, actually financial basics.  My strategies for success.

There you go, all the same.  What time, 11:00 right?

11:00 and we’ve got a few seats left.

Yes.  You don’t need to call.  You only show up.  In fact, don’t call because he can’t get the phone.  Just drop on by our office Altamonte Springs.  How to get there, just south of 434 on Douglas Avenue.  You can go to our website financialgroup.com and find the map very easily.  That’s financialgroup.com.  It is casual.  It’s going to be held in our classroom.  He’s going to provide some refreshments and give you some great information.  Once again, that’s our office this morning from 11:00 until 1:00.

The address is:

1111 Douglas Avenue
Altamonte Springs, Florida.

That’s easy to remember.  1111 <Inaudible> Altamonte Springs.  You want to call the show, it’s 844-220-0965.  Text receipt is up and running as well 21232.  Just keep that to about 160 characters because that’s all we can see on our screen.  We can only see one text.  If it goes into two or three long texts, we won’t get to see it.  <Inaudible> more of a conversation, go ahead and give us a phone call 844-220-0965.  Joe Bert and Nancy Hecht Certified Financial Group here in the studio.  Nancy, I was looking at some of your show notes this week.  One, these headlines caught my attention that I could not wait to ask you about it.  Your grandson’s friend doesn’t really care about you.  I’m like oh, okay this is going to be interesting.

I had a couple that were clients and they had because they just — they’re in the process of leaving.  It happens to all of us.  The husband was 92 and passed away.  Wife is 88.  She called me and she said well after discussing with my whole family, decided I’m going to be moving all my assets to XYZ company, which is an insurance company, okay?  I said no, and just like went into a fury for the sake of this woman.  This is the company.  This is what they provide.  She’s 88 years old.  Everything is going to go into annuities.  You know what, there’s nothing wrong with annuities.  It’s just the situation.  Everything in that scene — I’ve seen a lot of annuities proposed to people lately.  Fixed, guaranteed, they’re throwing all these words at her and everything is going to be tied up for 10 or 11 years and tremendous surrender charges.  I said to her who is giving this information to you?  It’s her grandson’s friend.  Alright so she’s in her 80s.  Her kids are in their 60s.  The grandsons are probably my age, maybe a little bit younger.  How long has this guy been in business?  For a really long time?  Has he been in business for <Inaudible> — has he even been in the business for as long as I have known you?

Well he’s an insurance salesman.

Yeah.

Nothing wrong with insurance salesmen.

No, no, but this is just taking advantage of a situation.  It disgusted me to know and whatsoever.

It’s one size fits all, if the only thing you have is a hammer, everything you see is a nail and that’s what’s going on.

Oh my god, I was so heart sick for this woman.  It was a barrier being put up.  It just was disgusting.  It’s the end of the month and commissions and bonuses and here’s somebody who’s out there and how much longer is she going to last so you’ve got to protect her money for the children, the grand — it was motivation and process and product was just so wrong.

It’s not a rational decision.  It’s an emotional decision.

Yeah, definitely.

<Inaudible> anyways.

You know what?  You’ve got to take care of your parents and grandparents.

A lesson for all to be learned this morning here on a Saturday.  Guys, we’ve got some phone callers here ready to start the conversation.

Alright, let’s do it.

Let’s go to Cindy in Palm Bay.  Reminder if you want to get on the  line, it’s 844-220-0965.  Cindy, go ahead.  You’re on with the Certified Financial Group.

Good morning.  Thank you for taking my call.

Good morning.  Thank you for calling.  How may we help you?

I retired in 2015 from 34 years at the same company.  I have a pension.  I’m planning on starting to collect Social Security in June or later on this year so I will have a pension and Social Security.

Okay.

I have a mortgage with about 20 years left on it, a 30-year mortgage with about 20 years left on it.  I could pay off my mortgage with about 1/3 of what I have in my 401k.

Okay?

I’m just wondering if that would be a wise decision.

May I ask first of all, how old are you?  <Inaudible> 65 or 66 if you’re applying for Social Security.

I’m 61.  I retired early.

Oh okay.  Alright, so chances are good you will outlive your mortgage.  Statistically, you could have another 30 years of life ahead of you.  Are you reaping any tax benefit from the interest?  Are you able to itemize?

I am this year because I’m still dealing with a payoff from my early retirement for last year.  My income will be probably around 20,000 a year after that and I live very frugally.  My house <Inaudible> house and it is comfortable <Inaudible> that house.

I presume you’re single Cindy?

Yes I’m single.

Alright.

May I ask what the balance is on the mortgage?

It’s about 100.

So if you were to pull $100,000 out of your retirement savings, it’s going to be 100% taxable.

I understand that.

It’s going to throw you into a whole new tax bracket.  The idea of not having to make that regular monthly mortgage payment, you still have to do taxes and insurance <?> of course.  It may be nice and desirable but the idea of pulling $100,000 out of a vehicle that is not taxable now, subjecting yourself to tax, I think is not a great idea.  The longer you can have this money accumulating and compounding for yourself on a non-taxable basis and then pulling it out as needed, I think is a better idea.  In looking at longevity and life expectancy, you want that money to be there for you so you can enjoy your retirement.

Right.

That $100,000 is probably going to cost you about $20,000 in taxes.

How about doing it over a period of a couple years?

Yeah, at idea of maybe taking a little bit out regularly and if you make one extra mortgage payment directly to the principal per year, you could knock about 10 years off the time of your mortgage.  If you chunk a little bit extra in annually and then you’re just sort of — you have a slow leak coming off of the retirement account as opposed to flooding out $100,000, have the bulk of it working for you still tax deferred, and then the taxes will be easier to manage.

Let’s back up a little bit, Cindy.  How much do you have in your 401k?

A little over 300,000.

300,000.  Do you have any other savings in investments?

No.  Other than — well I do actually have an investment.  I have another home.  It’s a mobile home on an acre of property out in the country that is paid off.  That is probably worth $50,000.

Are you renting it or is it just out there for when you want to go out to the country?

I’m planning on selling it or possibly using part of that money to fix my house up or put it toward my mortgage.

Gotcha.

The reason I started thinking about this is just realizing how much interest I pay a year.  It’s like $6,000, something like that.

What’s your interest rate?

Four something.

It’s not terribly low.  And you should be able to earn better than 4% on your nest egg for it.

Here’s what you need to do, Cindy.  This is going to sound self serving.  This is a time when you need to meet with a certified financial planner and have him or her do a thorough analysis on this decision.  Once you pull that money out, it’s irreversible.  You’re going to pay the taxes and you’ll look back five years from now, said gee, I wish I wouldn’t have done that.  What you want to factor in is your cost of living, what you spend every year.  Factor inflation.  Factor in taxes.  Look at what you want to do in your retirement years.  In your situation, it’s a good news and bad news situation.  You know what the good news is?

What?

You’re a young woman.  You know what the bad news is?

She’s a young <Inaudible>

Yeah, looking at 87 to 90 for life expectancy.

You’ve got 30 years in front of you that have to be planned for and you’re making decisions on a short-term basis that’s really going to impact the rest of your life.  And you’ve already retired?

Yes, she’s said she’s retired.

You’ve already retired?

So what’s your pension amount coming in?

About $1,000.

1,000 a month.  Okay, that loan <?> is Federated.

Cindy, if you look for the Central Florida FPA Association, I’m sure you can find a certified financial planner in your city.  But if not, feel free to give us a call.

Can I ask one little last question?  Do you know anything about health savings accounts?

HSAs, sure.  What would you like to know?

Well is there any way I can decrease — if I do <Inaudible>, I can contribute money — with my employer — I can no longer do it through my employer.  I’m looking for another way to do that on my own and I haven’t had much luck figuring that out.

You have to have a high deductible plan.  You have to talk to your insurance carrier.  They ought to be able to give you the guidance what you need is a high deductible plan.  As a way to do that, you can do that all the way until age 65.  Appreciate the call Cindy and wish you the best.  Cindy, thank you so much for the call.  If you want Cindy’s line, it’s 844-220-0965.  Becky <?> hang on the line <Inaudible> on the other side.  Right now we have to pause to get to three big things you need to know.

In the Trump white house, news 95 WDBO.

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

Welcome back to on the money here on news 96.5 WDBO’s ask the experts weekend.  We are here with the Certified Financial Group Joe Bert and Nancy Hecht.  Excuse me planning tomorrow today.  <Inaudible> during that <Background Noise> absolutely, can’t get any worse than that.  We are listening to the music of Abba Wineco.

<Inaudible> Certified Financial Group would be the sponsor for the sixth consecutive year on the Springs concert held in the Springs community here in Longwood.  This year featuring the music of Abba <Inaudible> full complement of the Orlando Philharmonic Orchestra.  Ladies and gentlemen, if you’ve never had the opportunity to come out to the Springs, bring your blanket, bring your adult beverage, sit around the beautiful Springs with the philharmonic out there and then they have a tribute band do the music of Abba and it is phenomenal, under the stars, under <Background Noise>.  Bring your adult beverage, and sit down, relax.  For more information, simply go to our website.  That’s financialgroup.com.  Right there on the home page, you can click on a link.  Tickets are on sale right now and there is a deal going on until next Friday, $39.

$39?  That’s not bad.

<Inaudible> goes off next Friday so if you want tickets, you need to go to our website financialgroup.com and we’ll take you right to the information.  We look forward to seeing you May 6th, music of Abba and the Orlando Philharmonic Orchestra.

Need a ticket <?> for Saturday?

Saturday night, yeah.

Beautiful, beautiful.

Got plans for May 6th on Saturday night?  You do now.  844-220-0965 is the number to call in and ask your question.  Becky has done just that.  Becky, thanks for holding on.  You’re on with the Certified Financial Group.

Hi Becky.

Good morning.  How can we help you?

I have a tax question.  I know how not — I made $120,000 profit this past year.  But my accountant tells me I owe $20,000 <?> in taxes.  What should I have done.

Okay was this — this was not your primary residence?

No.

No it wasn’t.  It was a rental house.

Okay, sure.

Because it was —

The question is what should you have done?  That’s your question, what should you have done?

Sold it sooner and made less of a profit.

Well, the only other option you can have in real estate is do what’s called a 1031 exchange where

My bad, my bad, my bad.

Alright, we thought we had something going <Inaudible>

No, that was my bad.

Okay, <Inaudible> here.

This is an alert for <Background Noise>

<Background Noise> coffee yet today.  I am sorry central Florida.  I am sorry Joe and Nancy.

Nah, that’s okay.

Radio gold and I’m giving you about <Inaudible> this morning.

That’s okay.  The only option that you would have  had and it probably didn’t make sense on this last transaction is do what’s called a 1031 exchange where you buy another piece of property before you sell that one.  It’s a complicated transaction you need to get a qualified intermediary involved.  So forget it.  That’s out the window.  What you want to look at is what you can do.  You sold it last year, you said?

Yes, the middle of March last year.

Yeah, okay.  There’s really no way to avoid the taxes unless you have an opportunity to put money into an IRA.  Are you working?

I’m retired age 73.

You know what Becky, congrats on making $120,000 profit on the sale of your —

I think it was 20.

120 — a hundred —

Was the profit 20 or 100, Tracy?

In any case, —

20,000

<Background Noise> of profit.

Okay.

<Inaudible> tough to use for buying low and selling high as far as that goes.

The good news for you is that the taxes are reasonable on that kind of transaction.

Only capital gains versus ordinary income so you’re paying a lower tax rate.

Or you may have some recapture but nevertheless, you did fine.  There wasn’t anything — you could have done something but in your case it didn’t make a lot of sense so enjoy the profit and have a great weekend.

Alright, Becky, thank you so much for the call.  If you want Becky’s line, it’s 844-220-0965.  We also have our text machine up and running as well 21232.  Please keep it to about 160 characters.  That’s all we can see on the big screen here in the studio.  <Inaudible> question on the air, Joe and Nancy will answer it.  That’s what we do here on the money show.  This is 96.5 WDBO.  We’ve got a couple of callers hanging on the line we’re going to get to after the latest news, weather, or traffic.  Joe, what’s the number to reach the Certified Financial Group this week?

407-869-8800 or better yet go to our website financialgroup.com.

The news is next.  Now it’s time for the news on this 96.5 WDBO.

Welcome back.  This is on the money with the Certified Financial Group on this 96.5 WDBO ask the experts weekend show where we answer everything to help you get to that retirement finish line.  Joe Bert and Nancy Hecht here from the Certified Financial Group taking your phone calls at 844-220-0965.  Our text machine is up and running as well 21232, Joe, we are enjoying the music of Abba why?

Abba May 6th the Springs community in Longwood, the Orlando Philharmonic Orchestra will be doing an Abba tribute if you will, tribute band, and it will be a wonderful evening under the stars.  Go to our website financialgroup.com.  Tickets are on sale right now and there is a deal going on right now until Friday $39 a ticket and love to see you there.

That’s awesome.  For anybody that joined us during the news, what can the audience call you about today?

Anything that’s on your mind regarding your personal finances and Nancy and I are here to talk about things that might be on your mind, you’re making decisions about to ret, or have retired, and maybe come into some money or want to know what you need to do with your IRA or 401k, about some mutual funds you’re looking at, about annuities, reverse mortgages, long-term care healthcare, all that and more.  Nancy and I are here to Take your calls, and good news for you is there’s a couple of lines still open so all you have to do is pick up the phone and dial —

844-220-0965.  844-220-0965.  Joe in Spring Hill has done just that.  Joe, you’re on with the Certified Financial Group.

Hello, Joe.

Hello.

Hi, Joe, how you doing?

What’s up?

I’m good.  The reason I’m calling is I turn 51 in January.  I have no debt.  I managed to put away about $6,000 into an emergency fund.  I’ve been a nurse for about 20 years now.  Unfortunately I wasn’t too smart in those 20 years as far as saving for retirement or anything, so I’m kind of starting late in the game.  I’d like to still be able to retire at 65.  That doesn’t mean I wouldn’t continue to work, but just not five days a week as I am now if I didn’t want to have to.

Mm-hmm.

The other thing is I own my own property, but I live in a mobile home.  It’s really falling apart, so I’m going to also have to consider either buying a new manufactured home or a house.  But at my age, I’m trying to look at something that I don’t get a really big mortgage because I mean I’m not getting any younger.

Right.

And what’s your question?

Well, I was thinking of putting away 15% in a Roth IRA.  Should I do that now or should I wait until I maybe come up with enough money to pay cash for a new manufactured home in about — so, I’m looking at one that’s — looking at one <Inaudible> 60,000 to 80,000.

So, do you work for a hospital or do you work for a medical group.

I work for the rehab center right now.

Uh-huh.

I also go to school.  See, I’m a licensed <Inaudible> nurse.  I’m kind of working towards getting my RN too.

Okay.  Alright.  And is there any type of 401k, 403b with your employer?

They have a 401k, but they don’t match anything.

It doesn’t matter if they match.  Matching is gravy.  If you save your 15% pre-tax into the 401k, you are going to be worlds ahead versus doing after tax savings into a Roth.  First of all, we know that the money that comes out is whole dollars.  It’s going to make very little difference in your spendable if you save pre-tax.  The money is going into your retirement account as opposed to being paid in federal income taxes.  So, it’s money that you’re spending already, but you’re going to be putting it in your pocket versus that of the federal government.  It’s going to accumulate on a tax deferred basis, and you’ll pay taxes on what you withdraw or what you’ll have to withdraw when you retire.  We know what those rules are.  Chances are good those rules are not going to change.  After tax dollars is going to cost you more to save the same amount of money and we have no idea what’s going to happen with the rules of Roths going forward.  You’re much better off saving pre-tax payroll deducted and if there is a match in yours, then the next place you go after you become an RN, look upon that as gravy.  But that pre-tax savings is the easiest and best thing you can do for yourself.

You’re going to have to make some decisions as to where to invest your money in your 401k at work, Joe.  The easiest thing is to do your — chances are your plan has what’s called target-date funds.  Look at a date that coincides with your retirement date or got near it, and put your money in there, work for the 15%, and don’t look back, and then figure how to live the rest of your life.  You’ve got to get some savings ahead, because if you stop working, the only thing you’re going to have is Social Security and you’ll be living down by the river in a van.  So <Inaudible>.  But, I appreciate the call.

Alright, thank you.

Thank you for calling in.

Alright Joe.  If you want Joe’s line, it’s 844-220-0965.  844-220-0965.  Text machine is up and running as well, 21232.  Luke in Orlando.  Luke’s here on the Certified Financial Group.

Hello, Luke.

Hi.

Hi.

This is Luke, yes.

Hi, Luke.

This is Luke, yes.  I have a planned early retirement because I <Inaudible> on my kids.  Three more years all my three kids is under 17 years old.  So, I look on the Social Security.gov and it’s saying that I will collect 80% <?>.  Now the question — I have the 80% on top of my benefit for a total of myself and three kids, 180%.

I think it’s 180% total of what your benefit is.  That’s what the government will allow you.

Okay.  That’s — okay.  So, thank you very much.  <Inaudible>

Thank you for listening.

Thank you.  Thank you very much.  Yeah.  Alright, bye, bye.

Alright, Luke.  Thanks so much for the call.  If you want his line, it’s 844-220-0965.  844-220-0965.  Our text machine is up and running as well, 21232.  Just keep it to 160 characters.  That’s all we can see.  We had somebody just texting a squiggly line, so I’m not sure if you were trying to write your question.

If we can go back to Joe who is an LPN right now and he’s going to school to be an RN, he’s going to have a lot more choice once he becomes an RN and his income will increase.  His employability will increase and the plans that he can payroll deduct into —

Possibly.

Yes, I mean I haven’t seen any yet that don’t have some type of match.  My daughter is working for a — not a — for a public hospital as opposed to a privately owned one and they have a match.  So, once he gets his RN he’ll have a lot more choice.

And the best investment he can make is in himself.  Get that education and increase your income.  So, good luck to you, Joe.

And one of the first things he mentioned also was that he had an emergency fund, which I think is phenomenal because that’s so overlooked.

And the only challenge he has is his mobile home is falling down around his ears.

Right.

Okay.

A hurdle that can be overcome.

Get some duct tape.

Right.

Cindy in Orlando has dialed us up at 844-220-0965.  Again, 844-220-0965.  Go ahead, Cindy, you’re on with the Certified Financial Group.

I’d like to try to retire at 62.

Okay.

And what I’m trying to figure out is Social Security is going to be affected like if I go part-time <Inaudible> or maybe wait until I’m 66 or 67, and then just go part-time.  Will that affect my amount of Social Security?

Yes.

Because your Social Security is based on your highest 35 years of earnings and chances are you’re earning more now than you were 35 years ago even thought those early years are adjusted for inflation.  And you don’t want to start drawing Social Security.  And if you start earning over about $17,000 between 62 and your full retirement age, you have to give back one dollar for every two.  So, depending upon how much you earn, it might not make sense.  What you really want to do is continue working up until full retirement age and then get that, and then take <Inaudible>

Right, right, but Cindy did you not just say that if you go part-time after 66 or 67 and then work a little bit after that?

Or even part-time after 62.

Okay, well as Joe just said, from 62 until full retirement age, you have to really, really be careful.  But, if you do work until full retirement age and then you collect Social Security and you want to keep working, you only do part-time, it doesn’t matter after full retirement age how much you earn.  But a simple answer to your question, as Joe said, yes.  It will have an impact if you go to part-time before full retirement age.

Before full retirement age.  Because it will then lower my Social Security income.

Yes.

Amount.

Yes, yes.

Yeah, but if you can avoid taking Social Security until full retirement age, you’re going to be much better off.

Here’s what you need to do —

Right, which is what I want to do.  I want to go part-time and not take Social Security, but will then that affect my Social Security amount?

Well, it can, yes.  I mean, one of the things that we do is the Social Security analysis for our clients.  It’s a nominal fee, $150 just to do a Social Security analysis, and we can crunch the numbers for you and play the what-if.  If you stay full-time until full retirement age, if you go part-time at age 62, and then you can have the numbers right in front of you in black and white and make a little bit more informed, less emotional decision.

But Cindy, like our first caller this morning, who I think was Cindy as well — a young lady your same age — the challenge you’re going to have is you’ve got 30 years of life expectancy in front of you.  So, you want to be sure you’ve got enough gas in the tank to get you through those years.  Retiring at 62 sounds attractive, but by God you’re going to need a lot of money to get you through those later years and retiring too early is a mistake that we see many, many people make.  They look back and say gee, if I’d only worked a few more years, the huge difference it would have made.  So, you really need to sit down with a certified financial planner and have that analyzed for you so you don’t make an irrevocable decision that you have that regret somewhere down the road.  Appreciate the call, Cindy.

Cindy, thank you so much.  If you want Cindy’s line, it’s 844-220-0965.  Jon in Altamonte Springs, Jon, you’re on with the Certified Financial Group.

Yeah, good morning.  How you doing today, man?

Good.

Good morning.

I wanted to ask you a quick question.  I’m 71 and I have my IRA.  Is there a special amount that you have to take out?

This year it is, I think, 3.9 —

3.65.  3.65% of the balance when you — on December 31st.

Jon, is this your first one?

No.

Oh.

Okay, it’s your second one.  So, I think it’s 3.9-something.  I have the table in my office.

You can go to our website and do the calculation, financialgroup.com if you want to do that.  But, your custodian should tell you every year how much to take out of your account.

I don’t want to <Inaudible> that I’m dealing with over the last couple — I’m dealing with the third person right now.  The third one that I’m dealing with about what’s going on.

Okay.

Well, give our office a call and see what we can do.

We do manage money.

And here in Altamonte Springs.

We do manage money for our clients.

You’re right down the street.

Feel free to give us a call and schedule a complimentary consultation to have someone look at your investments for you.

Give us a call on Monday, Jon, and we’ll be happy to help you.

You take the 434 to Douglas?

That’s it.  We’re right there.

Piece of cake.  Alright Jon, thanks so much for the phone call.  If you want Jon’s line, it’s 844-220-0965.  844-220-0965.  Doug in Merritt Island, Doug, you’re on with the Certified Financial Group.

Morning, Doug.

Morning.  Thank you for taking my call.

Good morning.

Sure, how can we help you?

Just a quick question.  I’m about to hit 63 years old here in May and I saw a commercial about a company buying out life insurance policies.

Okay.

And I’m <Inaudible> right now I have a universal life and a term life, so I’m wondering what your opinion is, how do those things work, is there any money to be made in those?

Well, the first thing is why did you by the insurance to begin with?

And how long ago did you buy it?

Oh, back in my 20s.  We’ve had it a long time.

Okay.

Alright.

And do you have any dependents?

Just my wife.

Just your wife.  Only your wife.

Yeah.  Well, I mean — yeah.  She’s my soul mate.

Yeah, you don’t have any kids or anything.

Oh no, no, no, no.  It’s just the two of us now.

Okay.

Yeah, and we’re both going to be Social Security eligible here shortly.

Right.

And I’m wondering the need for insurance.  But — how do they buy the insurance policy.  I don’t understand that.

So, what you’re talking about is if you have — if you don’t want to pay it or you don’t feel that you need it anymore, company XYZ will cash you out.

It’s called a life settlement.

Right, right.

And what they will do is they will give you, based on personal — what kind of policy it is, if it has any cash value, what the premiums are, what the death benefit is, and your health.  And they crunch the numbers on that and they will make you an offer on buying that policy from you.

And it works for term and for UL, but I’m guessing, Doug, that you’re probably — I know you’re too young and probably too healthy to be considered as a candidate for a buyout on your policy.

So, I’m curious your opinion of them overall.

I’ve used them a couple times for clients and they’ve been great.

And in fact I’m getting a quote right now for a client.

Oh okay, cool.

Yeah.

In certain circumstances, it makes sense if you just don’t need the insurance.  So.

Alright.  Very good.  Thanks for your help.

I’ll tell you when it works best.  It works best if you don’t need the insurance, if you’re old, and not in good health.

Yeah.

I mean Doug you can look at this in about 10 or 15 years maybe.

Alright.  Appreciate that.

Okay, thank you for the call.

Alright, Doug, thanks so much for the phone call.  If you want Doug’s line it’s 844-220-0965.  844-220-0965.  We’ve got a couple of callers on the line and we’re coming up on our last segment.  It’s your last chance to get your question answered, so if we don’t get to you on the air, hang on the line.  You’ll get a private consultation off the air.  But, it’s got to be on hold.  844-220-0965.  Joe and Nancy, what’s the number to reach you guys during the week?

407-869-9800 or they can go to our website, which is financialgroup.com, and request a complimentary consultation.

Alright.  Wonderful.  We’re planning tomorrow —

Today.

With the Certified Financial Group on WDBO.  Hey, welcome back to On the Money her on News 96.5 WDBO’s Ask the Experts weekend with the Certified Financial Group.  Joe Burt and Nancy Hedge taking your phone calls at 844-220-0965.  844-220-0965.  Joe Burt love the music of ABBA this morning.

Because May the 6th at the Springs Community in Longwood Certified Financial Group will be the proud sponsors of The Springs Concert.  Go to our website, financialgroup.com, for more information.  There is a bargain going on right now until Friday, $39 a ticket.  Bring your blanket and adult beverage, kick back, and enjoy the music of ABBA with a tribute band.  It’s incredible.

And we’re not taking calls anymore.  We’re just going to dance.

I wish.  I wish.  Alright.  JL in Casselberry wants to talk to you, though.  JL, go ahead, you’re on with On the Money.

Good morning, JL.

Hi.

Hi.  What’s your question.

Here’s the situation.  The Veteran’s Administration have a program called <Inaudible> Angels and what it is if you’ve been in the service and honorably discharged and you’re running out of money, they’ll send you a check every month just like Social Security.  And I get <Inaudible>.  My problem is that I haven’t heard a word from them.  They have a local rep that’s an insurance guy, but he doesn’t actually work for the Veteran’s Administration.  And I thought that one of your 12 has some dealings with the Veteran’s Administration.

No, but our attorney that we do a lot of work with is a specialist in that.  Jodie Murphy.  Go to her website, click on estate planning, you can find her information.  Her office happens to be just across the parking lot from us and she is an expert in Veteran’s Affairs.  So, I’m sure she can help you with that.

Do you know Jodie’s number off the top of your head?

I do not.  You can call our office and we can get the number.  407-869-9800.  You’ll have to call on Monday and thanks for your service JL.

And if you need the number again JL, financialgroup.com.  Johnny, go ahead.  Johnny, you’re on with the Certified Financial Group.  Johnny.

Hello.

Good morning.

Hi.

Hi.

Good morning.  I’m actually calling — I would like to know about the retirement.  I’m actually — I’m not familiar of just how the retirement and 401k — my employer doesn’t offer a 401k right now.  But, like to know what is the best thing for me to get prepared.  I know there’s a lot of scary stories about after you turn 65.  And I listen to you on the radio.  I want to know what’s the best thing — what should I do now <Inaudible> to prepare myself for retirement.  <Inaudible> retire <Inaudible>.

Okay Johnny, are you single or are you married?

I’m married.

Okay, and does your wife have a 401k with her employer.

No, she doesn’t.

She does not.

She doesn’t <Inaudible>

And are you — you’re under 50 or you’re over 50?

No, I am under 50.  I am 30 <Inaudible>

Alright, so what you can do without having some type of corporate plan is each of you could put $5,000 aside annually — $6,000, excuse me.  No —

5,500.

$5,500 each into your own individual retirement account and have it be deductible.  So, that will accumulate for you on a tax deferred basis over the next 30-some-odd years that you plan on working.  If you don’t know what to do or how much to save or you want to get some information, retirement planning is a big part of what we do.  Planning is the first step in anything that we do before we recommend any type of investments, or protection items, or anything.  So, for you to meet with a certified financial planner — and you’re not too young.  Kudos for thinking about this at your age because not enough people do in their 30s.  You can sit down with somebody and put a plan in place.  What we’ll look at is your sources of income, and how you’re living your life, and taxes, and inflation, and how much you potentially could save for yourselves on a short-term basis and a long-term basis.  And help you put together the blueprint for the rest of your life leading up to retirement.  That’s really the best thing that we can recommend.  But, if you’re working on your taxes right now and you want to do something for 2016, you can still do a deductible IRA until you — until April 18th.

Well, we’re running out of time.  Johnny, thanks so much for the call.  Real quickly, what’s the number to reach you guys at the Certified Financial Group for Johnny?

407-869-9800.  Or better yet, go to our website, financialgroup.com.  That’s financialgroup.com.

We’ll be back again next Saturday right here on News 96.5 WDBO.

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