Hosts: Nancy Hecht, CFP®, AIF® and Joe Bert, CFP®, AIF®
Well good morning, everybody, to another addition of On The Money with a Certified Financial Group here on News 96.5 WDBO with Ask the Experts weekend. We’ve got the experts from a Certified Group, Joe Bert, Nancy Hecht, here in the studio taking your phone calls at 844-220-0965. Good morning guys!
How are you today?
I’ve been better?
It’s cold, allergies, I don’t know what’s going on.
You and everybody else in this building.
Yeah, that’s where I got it.
I’m not going back. That’s it.
It wasn’t here last week when you were here. It came Tuesday, Wednesday. Right when it got to like 96, that day. Everybody came in like, I got a sore throat.
And we <Background Noise> this thing down yesterday, when we had the boss out and a couple of other people out. If you look in the parking lot, you can see all of the pollen and dust still sitting there —
And the rainwater did not — yeah we got a lot of rain, but it wasn’t enough to just knock it out. So now that it’s cold, it seems like everybody is just a little bit <Inaudible>.
Yeah, it’s terrible.
It is terrible. But beyond that, no go —
No, I just wanted to wish everybody Happy Passover.
Yes, that’s — absolutely.
Absolutely. So what can the audience call you about today guys?
Well, we are here to answer your questions regarding your personal finances. As we say, we go through life trying some of this, trying some of that, and wake up at 55 years old and have retirement centers in the face to realize that we have to get our act together. So what Nancy and I, and the other certified financial planners at CMG do day in and day out is we help our clients navigate those decisions that you have to make. How to turn those savings and investments that you accumulated into income to supplement your Social Security and if you’re fortunate to have a pension. And what do you need to do now so you can look back 5 or 10 years from now and say, gee, I wish I would’ve known or gee, I’m sorry I did. So we’re here to clear up the mind fog about personal finances. Often times, it revolves around questions that you might have about stocks or bonds, mutual funds, decisions that you’re trying to make about your 401(k) and IRA, looking at life insurance, reverse mortgages, annuities, all that and more, and Nancy and I are here to take your call. The good news for you because it’s early in the morning or early in the show I should say, the lines are absolutely wide open and all you have to do is pick up the phone and dial these magic numbers.
844-220-0965. Yes, an excellent time to get your question. The last couple of weeks the phone line is full at the end of the show and we’ve <Background Noise> interesting in the office like people, here, in the first segment and all other — it’s the perfect time to get in line because you know you get your question answered on the air. 844-220-0965. But we also have the text machine up and running as well, 21232, is that number. So just keep it to about 160 characters and that’s all we can see on our screen. 21232. Well it is tax season, it’s on everybody’s mind, it’s coming up, and it’s not April 15th this year, though.
No, April 18th.
April 18th because the 15th is a Saturday.
Then there’s a holiday on Monday.
And then something on Tuesday?
Tuesday is when you can bow your head.
I thought it was Wednesday, sorry.
Yeah, it’s Tuesday the 18th, so procrastinators rejoice, you’ve got the next three more days. But got a lot of tax questions a couple weeks. But Nancy has got some information here. The most common tax deductions and credits missed by tax preparers.
Right, and we’re getting — and I’m sure you’re getting, Joe, too, a lot of questions from — or e-mails from clients or their CPAs asking for various different information. But one of the things that people don’t think about everybody has to pay, who’s working and paying Social Security tax. And you do not get a deduction for us unless, like us, you’re self-employed. And instead of paying the 7.65%, you have to pay the whole 15.3% of the tax, then you can take a deduction for that half that you’re paying. And there are some self-employed people that neglect to do that, and that is a nice, big deduction that sometimes gets overlooked. People have been doing some home improvements. We’re doing home improvements also. If you are adding some energy efficient items to your houses, windows and things like that, there is a tax credit you can claim up to $500, so that might help you a little bit. If you wanted to take advantage of the current rates before interest rate increase anymore and you end up refinancing, people may have forgotten that when you buy a home or if you’re refinancing, the points that you may be paying, $33 for each thousands of points may be deductible for you. And one other little things is those of us who have kids in college, if you’re paying student loan interest, if the parents are paying that, that is deductible.
What if the kids are paying it?
I guess if the kids are also filing a tax return, then
The kids would have to file their taxes.
And the nice thing that you and Nancy talked about deductions and credits, a lot of folks don’t appreciate the difference between a credit and a deduction. A deduction reduces the amount of taxable income that you have, a credit is a dollar for dollar reduction on your taxes. Dollar for dollar. So if you have a $500 tax credit that reduces your taxes by $500, you get about $500 deduction, that only reduces your taxable income by $500, then you pay <Inaudible> what’s left. Credits are sweet.
Well, especially if you’re running on that fringe of the next tax bracket.
Or being able to itemize or not.
That could be a big deal for a lot of people. So look at everything little thing and see — I’m very adverse, I don’t believe in the, it’s an honor to pay taxes. I don’t believe in paying one cent more than you absolutely have to.
Follow the law.
And that’s all the law requires.
<Background Noise> 844-220-0965 is the number to join us here on the radio today, 844-220-0965. Text machine is up and running, as well, for your text questions, 21232. We do have a text question in here.
File bankruptcy. I’ve been working in the sales business for the last year, back on feet again, 51 years old. What is the best way to start saving for retirement?
Well, I mean, monthly. Dollar cost averaging. Little tiny chunks over regular intervals, that is the easiest way to save. If the person is just getting back on their feet, I would hope that they would make sure that they have an emergency fund, and take care of that at <Inaudible> the stock kind of money. I like to look at three, four, five months worth of income being replaced as opposed to expenses. And then once you have the emergency fund in place, to monthly save a certain amount of money into an IRA or 401(k) or some type of retirement plan is the easiest, most efficient way to save for retirement.
And the best way to do that is set it up with a mutual fund and set it up with automatic bank draft —
Because if you discipline yourself to invest or save what’s left at the end of the month, sometimes there’s nothing left at the end of the month. So if you get in the habit of paying yourself first, and then you spend what’s left, you have 100 probability as far as success.
Good luck to you, never too late to start. But glad you’re through that bankruptcy and getting your life turned around there.
Alright, just like that. If you want to text a question, it’s 21232, or 844-220-0965. 844-220-0965. Another question here from Nancy who’s got some great information on today. I’m at a full retirement — or I’m at my full retirement date, I should say, should I take Social Security now or postpone?
Well, given the opportunity to postpone, I think that you should take advantage of that. Depending on how many years you have, full retirement age for most people is now 67 — or 66 and a number of months. For each year you postpone beyond your full retirement age, you will get an 8% credit up to age 70. So if you can afford to wait, then that’s a really nice gift just for putting a little bit of time on your side. And if the person is married and they have some concerns about the spouse maybe getting a lower Social Security, when they do pass on the wife will get the full, higher, increased benefit at the 8% rate per year for how many years they waited as a survivor benefit. So given the choice to wait, I say take advantage of that 8% gift.
Yeah, the only exception there is if you’re in poor health.
And you won’t move into your 80’s and it’s not such a good idea. But generally — because it’s guaranteed money and there’s no where around that you can get that kind of rate of return and any kind of investment. So a lot of people say, I want to grab it now, but <Inaudible> Social Security will be there, which is not going to happen. That your Social Security won’t be there. So you want to do some planning and that’s what planning is all about.
For some people, it makes sense to grab it early on. For many people, though, it makes sense to defer it as long as you can and get that 8% per year credit.
Well and I had a discussion with one of my clients earlier this week who’s having some health problems and is a year away from full retirement and may end up taking it early. And the crossover point between taking it early and waiting for this person is into their mid 80’s. But the fact that they’re having some health problems, that’s a case where it may make sense to take it now. Everybody is different.
Yep, everybody is different.
Well, we got those couple of phone callers for you guys. 844-220-0965. 844-220-0965. Go to James in Orlando. James, you’re on with a certified financial group on WDBO.
Hey guys. Hey I got a quick advice question here. I’m 33, self-employed, I have about 2,000 a month of extra income to start planning my retirement and just need to know kind of where to go with it.
James, do you have employees?
I do not.
You don’t, okay. You can do a SEP-IRA and that would allow you to put aside 25% of your adjusted gross income up to — I think, for 2017, it’s $54,000. So —
Okay, that’s what I want to do.
But that’s the maximum limit, so it doesn’t mean —
The best option for continued growth.
Well, it gives you the highest ceiling. I mean, just because you can put aside the 54,000 doesn’t mean that you have to, but it gives you the highest ceiling. You could do a solo 401(k), which would allow you to put aside $18,000 for yourself into a retirement account. And that’s certainly more than the 1,500 into a traditional IRA, but those two items, a solo 401(k), or the SEP-IRA for someone who’s self-employed and has no employees, gives you the greatest latitude as to dollars that you can contribute.
If I could ask you one more question here. I’m trying to buy a house here in the next year, but seeing as how I just started my business, it restarts the cost of the mortgage, and I just need to make sure that I’m not taking too many deductions so my income shows a good amount so I can get a good mortgage. Are either of those options too much too deduct?
No, no. I mean, again, just because the 18,000 or the 54,000 is the ceiling, doesn’t mean that you have to contribute that much.
Oh, okay. Outstanding. Okay, well I sure appreciate the advice.
Thank you for calling.
Thank you James for the call. If you want James’ line, it’s 844-220-0965. 844-220-0965. We have to get the three big things you need to know, but we are <Inaudible> tomorrow —
With the certified financial group on WDBO.
Hey, welcome back! This is Don the Money with the certified financial group on News 96.5, WDBO, we are five minutes away from the latest news, weather, and traffic, with Dave Walton <Inaudible> 96.5 newsroom, but plenty of time to get your question answered here on the radio, 844-220-0965. 844-220-0965. Joe Bert, Nancy Hecht, from the certified financial group are here. We’ve got our call here, Lisa, in Orlando. Lisa, you’re on with the certified financial group.
Good morning, how can we help you?
I have a question for you. I have a 37 year old son who is disabled and on Social Security disability. He does work within those guidelines. He does participate in his employer’s matching 401(k). Is there anything else that we can do to save for his retirement or have him save <?> since his income that he’s earning is pretty much discretionary.
Is he saving the max that he can into the 401(k)?
Yes ma’am, he is.
Let’s define the max, because some people are — say, well, the max gives the match. The maximum that he can put in is $18,000 a year, Lisa. Is he putting in $18,000 a year?
No, I was — I’ve misspoken. He is maxing out the match.
See, okay. A lot of people do that. So they’ll say that, I’m going to get a 4% match, so that’s how much I’m going to contribute. So he can up what he’s contributing pre-tax and the match is just sort of gravy, as far as I’m concerned. And he could — if he increases what he’s contributing to the 401(k) $50, maybe $75, $100 a month, because he’s not paying federal income taxes, it will make little or no difference in his spendable income. So that’s one easy thing he could do to try to — to start saving more for his retirement now.
Mhm. And his point, he is also into — his employer has the matching stock program as the major growth <Inaudible> down here. But I’d like to diversify him and get him out of stocks. I’m not a huge fan of stocks, maybe that’s just lack of knowledge, probably.
Yes, it is.
But also wanting — I also want security for him, so do you all deal with stock portfolios, as well?
Lisa, let’s back and let’s try to educate our listeners a little bit. Your fear of stocks, and you’ve pinpointed it right on the head, is lack of education and lack of knowledge. We’re all so always careful of what we don’t know. You know. And getting it — here’s what you need to understand. Your son at 37 years old has a — has statistically a reasonable amount of life expectancy in front of him. Now if he’s assuming his —
Yes he does.
Okay. So we would plan with 45, 50 years in this case of life expectancy.
So he’s going to need a whole pile of money when he can no longer work to draw from in addition to Social Security. And the best way to do that, as Nancy suggested, is to maximize the contribution to the 401(k). But what he also has, he has a great asset. He has time. Which means that if he invests that money in growth, and the way you get growth is to invest in growth mutual funds and through his 401(k) plan, that money will go one half of a lot faster than if you put it in something that’s guaranteed. Guaranteed only says that you’re going to have the same amount of dollars or a few more dollars, but that doesn’t mean that you’re going to have a guaranteed financial security because those dollars are going to purchase far, far less in 25, 30 years from now. So you’ve got to get growth working on you. And using the 401(k) and doing that is one of the best things to do.
But if all of his contributions are going to the company stock, there — I know that there’s a portfolio of mutual funds that are offered for him to take advantage of also. So he should reallocate some of his contributions to some of the mutual funds.
Okay, very good then. Alright, well thank you so much. I appreciate that.
Lisa, to make this easy for you. That plan, I think, also has what are called target-date funds where it’s geared to his projected retirement date. So if he’s 37 years old, that’s statistically 30 years from now, so you look at maybe a 2045 Fund, and that’s a set it and forget it. Just put the money in there every paycheck, paycheck, paycheck, paycheck, and don’t look back. And I guarantee you, he will be — he’ll be in the top 1% of retirees in 30 years from now. If he maxes out his 401(k), he just lets it ride. And don’t look at it.
Okay. Alright, well I’ll definitely be calling.
Thank you for calling.
Thank you. Have a great day.
Absolutely. Alright, Lisa, thanks for a great call. If you want Lisa’s line, it’s 844-220-0965. 844-220-0965. Trevor Jason, hang on the line, we’re going to get to you right after we get the latest news, weather, and traffic with Dave Walton in the news 96.5 newsroom. We are planning tomorrow —
With the certified financial group on WDBO — BO.
And welcome back! This is on the money with a certified financial group here on news 96.5, WDBO. We are taking your phone calls on 844-220-0965. 844-220-0965 with Joe Bert and Nancy Hecht from the certified financial group. Joe <Inaudible> during the latest news, weather, and traffic, what can they call you about today?
Nancy and me are here to take your questions 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, only to wake up and find we have approximate financial accidents and someday that paycheck is going to stop. If you have Social Security coming in, then how do we pay the bills on what we have saved and accumulated. And our job as certified financial planners is to turn that accumulated savings and investments into income that you can use to supplement your Social Security. And as we say, on Monday through Friday, we do it for a fee. But on Saturday morning, we do it for free. So if you have any questions about anything that’s on your mind regarding personal finances, the good news for you, there’s still a couple of lines open. All you have to do is dial these magic numbers.
844-220-0965. 844-220-0965. The text machine is up and running, as well. 21232. Let’s get back our to busy, busy telephone lines here, guys. Talking to Trevor in Winter Haven. Trevor, you’re on with the certified financial group on WDBO.
I’m a truck driver that opened up a business there in January as a sole proprietor. And I understand I’ve got to make tax payments, but I didn’t start pulling loads until pretty much the end of this month, so I’m $4,000 in the hole at this point in my venture. As far as the tax payments go, should I still — what I’ve been doing is I dipped into my savings to fund me through this process, should I still try and make a tax payment this month, or — because I’m in the red, can I avoid that?
I would say, if you have no taxable income or no profits to show, then you don’t have to worry about paying the estimated quarterly taxes. So when you do cross over the line and start moving into positive territory, you want to start contributing, I would say comfortably, 20% for estimated taxes. However, I’m not a CPA and neither is Joe, so —
Are you set up as a S corp, LLC, how are you running your business, sir, just to <Background Noise>
At this point it’s sole proprietor.
Sole proprietor, okay.
Okay, well <Background Noise> don’t forget you’re going to have to pay self-employment tax. That’s what comes and bites people. They think of their regular income tax and then they forget about their self-employment tax. As we said earlier in the show, Nancy had a piece there that you’ve got about 15.3% of your income that you have to set aside for the self-employment task.
Trevor, thanks so much for the phone call. If you want Trevor’s line, it’s 844-220-0465; 844-220-0965. Jason in Daytona Beach. Jason, you’re on with the Certified Financial Group.
Morning <Background Noise> how are you doing <Inaudible>.
How are you?
Good, good. Quick question on capital gains. I sold a home in 2016, January of 2016. Moved out of the home in May of 2013, and trying to figure out how to pay capital gain taxes on that home.
Was this your primary residence for two out of five of the last five years?
Moved out in May, 2013, so yes.
And you’re —
As long as it’s under $250,000 in gain, then you don’t have to worry about paying capital gains tax. But make sure on the date that it was your primary residence two out of the last five years.
That’s how you <?> determine primary residence. I’ll just restate that we had two homes at the time, though.
What was listed? Was the home you sold, you took <?> for identification and tax reporting purposes your primary residence?
Your drivers license, where did you file your tax return, what address did you use and so forth.
Did you use that address?
Okay, then you need to look at the two out of five years and you may not have to worry about capital gains tax.
And if you’re married, you can have $0.5M of profit.
In the last — after we moved out in 2013, we did rent the home. So does that change anything around capital gains?
No, as long as it was your primary residence two out of the last five years when you sold it.
Perfect. <Inaudible> guys.
Have a great day.
Thanks, Jason, for the call. If you want Jason’s line, it’s 844-220-0965; 844-220-0965. Isabella’s in Orlando. Isabella, you’re on with the Certified Financial Group on WDBO.
<Background Noise> good morning.
Good morning. I have a question for you. I am 30 years old and just this year starting putting into my 401k. Unfortunately my firm does not match it, so I was just seeing if that was my best option, or if I should try adding money somewhere else. I make about 150,000 a year and right now I just started <Inaudible> 6.6 <Inaudible> on the 401k.
Okay, payroll deducted money such as you’re doing into your 401k’s the cheapest, easiest way for you to save. Assuming again, as I had said to an earlier caller, that you have a nice, comfort emergency fund, you should do everything you can regardless as to whether there is a match or not, pour yourself into the 401k. And if you work to full retirement age, which is going to be 67 for you, then you’re looking at 47 years to save pre-tax. That is an unbelievable opportunity. So do it <?>.
I got 37.
<Background Noise> 37 years.
<Background Noise> don’t start putting in the maximum, the 18,000 a year, or would you start a little lower.
You do the maximum that you can comfortably do, and if the 18,000 is what you can comfortably do, then, yeah, you go for it. As I had said earlier, match is just gravy.
You want to do as much as you can as early as you can because the eighth wonder of the world is compounding and the longer that that money is in there, the bigger that snowball is going to get when you get to be retirement age. So good for you, you’ve got a good income. And what you want to do is look at growth investments. Stay away from the fixed income, from the bond side in your choices. If you have a target date fund, just put it in the target date fund and don’t look back and the good news for you will be that as you use your automatic contribution coming out of your paycheck, you’ll be doing what we call dollar cost averaging, which as Nancy said earlier, is the best way to take advantage of the natural fluctuations of the market. And really when the market goes down, because it’s going to go down several times over your working lifetime, it’s actually good news for you because every paycheck you’re buying more and more shares, and the name of the game over your working lifetime is to get shares. When the price keeps going up and you keep buying, you’re getting fewer and fewer shares, and the mistake that virtually everybody makes it when it goes down, they stop contributing or they move their money into something safe and they mess everything up. Just stick with it, don’t look back and like that earlier call, we said if you can do that over your working lifetime, you’re going to be in hog heaven.
Isabella, what you’re looking as is you’re either going to send the money to the federal government for taxes or to your 401k.
Okay <Lost Signal>
And when it hits <?>, we’re buying on sale, and we love buying on sale.
Amen. Alright, Isabella, thank you for the call. We appreciate it. 844-220-0965 if you want Isabella’s line. Eighth wonder of the world, compound interest. One day I’m going to figure compound interest out, or I’m just going to ignore, and then when I retire, enjoy the fruits of the labor. Let’s go to Robert on line four. Robert’s in Lockheart. You’re on with the Certified Financial Group on WDBO.
Good morning Robert.
Good morning. I recently got a letter of notification that when my parents passed, there was stock that <Inaudible>. And I’ve gone through as far as I can — I need to come up with letters stating who I am and everything like that. I even went down to the probate court and got those letters. I’ve gotten their death certificates that show and I presented my birth certificate to show that they were my parents, but now I need a letter of activation or something.
Yeah, I don’t think you’re <Inaudible> probate process. You need to have 100% identification that you are in fact the sole heir of these assets and then you need to contact the transfer agent who’s holding these shares. I presume they’re not at a brokerage firm, are they? Where are the shares being held?
Broad Bridge, something like that?
They’re the transfer agent, yes.
So here’s what I would suggest you do. Get an attorney to do this for you because you’re trying to do it yourself and the legal system has got you tripped up and you’re missing —
Yeah, it does.
So if you want to call our office, we’ll be glad to direct you to attorneys we work with. They can do this for you reasonably. But that’s what you need to have done. The good news for you now on this stock is if you’ve inherited it, you’re at what’s called a step-up in basis. How’s that work, Nancy?
Right, right, so what you look at, Robert, is the date that the last parent passed, or six months later, whichever is going to give you a higher price per share, and that’s the value that you’re inheriting the stock at. And that’ll be important —
How about 12 years ago?
Well, you can look it up. If you go on Yahoo Finance, you can get history on a stock price for 15, 20 years back. So there are ways to find it. But that will be important when you decide you want to sell some of the shares. You need to know what the basis is versus the current market value. Bless you.
So as Joe said, getting an attorney to help you is going to make things a lot smoother for you.
I hope so, because I’ve been trying to do it correspondently, faxing, because we’ve been in constant contact when they tell — I need this, this, this, and this. So I went and got that and that and that.
Right, so give our office a call and we’ll be happy to put you in touch with an estate planning attorney. The phone number is 407-869-9800.
Thanks, Robert, for the call. Appreciate the call. 844-220-0965 if you would like Robert’s line. Again, it’s 844-220-0965. The text machine is up and running as well, 21232. We’ll get to that in just a moment.
That’s a classic case of not doing any planning that the parents could have avoided that simply by registering those shares as transfer on death. Robert would have gotten those shares, no paperwork required, or very little, and it would be a done deal. And this is a mistake we see time and time again. People don’t think they’re going to pass away and they don’t have their assets titled correctly and then you’ve got to deal with probate and all the things <Background Noise>.
Probably just don’t know.
Yeah, that’s why people listen to our show.
There’s some people that I was talking with, everyone goes, oh, yeah, you go through probate anyway. No, that’s not true.
And it’s the same with your checking, savings, money market, you just add transfer on death, in trust for, payable on death, and it’s all taken care of.
Some people think, I’ve got my will so I’m going to avoid probate, well no. Your will is your instructions for what the probate court’s going to do to you <Inaudible> for you.
So having a will does not avoid probate.
944-220-0965. John in Orlando. John, you’re on with the Certified Financial Group on WDBO.
Good morning <Inaudible> how are y’all doing?
Good. How can we help you now?
Yes, I am the payee on my fiance’s daughter, but unfortunately my fiance passed away last week.
Thank you my friends. I am just — I wanted to pull the Social Security money that’s in her daughter’s account that was sent to her, that was saved for her and put it into an account for college for when she turns 18 or something like that.
I just want to do it so that, you know, like hands off it and it’s there for her and I can touch it again or something like that, and it’s there for her. Do you all have any suggestions for how I could do that or something?
The best way I like for saving for college is a 529 college savings account.
You would be the owner, and she would be the beneficiary, and then you could name somebody as a successor owner after you. But all the money accumulates tax free and as long as it’s used for a higher education cost, it comes out tax free. And because you, as a non-parent would be owning that account for her, if she has the opportunity to get grants or loans or scholarships, the 529 account does not have to be reported.
Wonderful. Let me ask you, she does have a surviving parent, her dad, who she lives with full time now and everything like that. So do I have to involve him in this or put him as the —
Not at all.
I don’t, right, okay, great. Alright, I appreciate that. Can I come down to your offices, then and maybe you guys can go through with that for me and you guys be my lobbier <?>, like your working for you guys <?>.
Sure. All you have to do is call Monday through Friday, 8:30 through 5:30 407-869-9800, and request a meeting with one of us CFPs or you can go to our website, which is financialgroup.com and request an appointment. So whatever the <Inaudible> on, take advantage of that.
And, John, appreciate the phone call. Absolutely. If you want John’s line, it’s 844-220-0965. We’re about 40 seconds away from naming three big things you need to know, but I believe there’s some workshops coming up. I wanted to give some time to give those out.
The most recent workshop to be on the calendar is Denise Kovecks and myself are hosting our Social Security boot camp on Thursday the 20th of April, and that’s from 6:00 to 7:30, I think.
Two days after taxes <Background Noise>.
And then on April 22nd, two weeks from today is our annual shredding event at our office. We bring in a commercial shredder and you can see your stuff shredded right before your eyes. We’ll be broadcasting live from our parking lot, so hope to meet some of our regular listeners as you drive on through and also offering two free tickets to the upcoming Springs concert on May 6th at the Springs community in Longwood <?>. They are featuring the music of Abba this year. In fact, <Inaudible> complement to the Orlando Philharmonic. So come on by. Register to win two free tickets. Come by and meet us and get your stuff shredded. Just bring two baker boxes. You can’t pull up in a van and pull on <Background Noise>.
Yeah, I can’t pull up my truck with an entire bed full of boxes.
No, you can’t.
Can’t do that.
Alright, well I tried.
We will turn you away.
Well, <Inaudible> get more information on that on financialgroup.com. 844-220-0965 is the number if you want to get your question asked in the last segment here. Again, 844-220-0965, David’s set. There are texters <?> hanging on the line. We’ll get you guys on the other side. We are playing tomorrow with the Certified Financial Group on News 96.5 WDBO.
Welcome back to <Background Noise> Certified Financial Group here on News 96.5 WDBO’s ask the experts weekend. It is the final segment. Last chance to get your question answered, 844-220-0965. Let’s get right back to our busy phone line and we’ll talk to Seth in Claremont. Seth, you’re on the Certified Financial Group with Joe Bert and Nancy Hecht
Hi Seth. This is Kristen.
Hey, how are you?
Okay, how are you?
I just became the custodian of a trust fund for my grandfather. I guess my first question would be, do I need to move banks from — because the bank’s in Oklahoma so would it make sense to take money out and move it to Florida?
It might be easier for you from a management standpoint. You won’t have to do everything online.
And then I was wondering what growth I should choose because I’m at moderate right now, so I didn’t know if I should be aggressive. I’m 24.
Is this money for your grandfather or money you inherited?
No, it’s from my grandfather to me.
Oh, you inherited it.
Okay, yeah, yeah, so move it local. And Seth, you’re exactly right, growth. As we’ve been saying to everybody else in your demographic today, time is on your side and you need to be more stock based than bond based.
It’s all stock, it’s all AT&T stocks right now.
100%? Okay, so then you need to do something else, which is called diversify. So you need to diversify. You can’t have all your eggs in one basket, it’s that simple.
The good news for you is you probably got a step-up in basis, so you can sell that stock with virtually no taxes, probably, and then that’ll allow you take it and diversify it into a broad portfolio of professionally managed investments using mutual funds. And mutual funds will get you built in diversification, but then you have to have diversification with the different kinds of mutual funds where you’re investing in large companies, small companies, international, real estate investment trusts, those kinds of things to minimize your risk and exposure to one particular segment in the market. In the long run, that’ll work for you. So the first thing you need to do is move your money to Florida. The second thing to do is liquidate the account and then get it well diversified. That’s what we do day in and day out.
I was just going to say, before you liquidate, if you’d like to make an appointment with one of us, then do a little bit of planning and get a little bit of education, you might want to do that. So go to our website, financialgroup.com and request a complementary consultation.
Real briefly, let’s get to Russell in Kissimee. Russell, you’ll be the last one today on the Certified Financial Group.
Awesome, how are you guys doing today?
Good. How can we help you?
What can we do for you?
I have a question. How do I prepare for the future financially? What is the best thing? Say I was your son, okay, what would you guys tell me to invest in? For instance, I have a couple of really close coworkers that say, invest in Vanguard. I have no idea what Vanguard is, but I told them, listen, I need to start saving money for the future and then I start <Inaudible> so everybody tells me to start up young. So what would you guys tell me what to do?
The first thing you need to do, Russell, is put together a plan. You need the roadmap, blueprint, anything that you want to use to say, another term for a plan. We need to look at where you’re at now, what types of things you want to do and after you have a plan in place, we know how you’re living your life, what kind of impact taxes and inflation is going to have. Then you can look at the various different places you can invest your money. But you have to have a plan first.
Go ahead, you’ve got 30 seconds <?>.
But what they’re asking or suggesting is you invest in Vanguard. Vanguard is a mutual fund company