TRANSCRIPT FOR THE APRIL 29, 2017 “ON THE MONEY” SHOW

Well, good Saturday morning to you everybody.  I’m Kyle <Inaudible>, this is On the Money with the Certified Financial Group here on News 96.5 WDBO’s Ask the Expert weekend.  We’ve got the phone lines up and running, 844-220-0965, for your questions to be answered by Joe Bert and Nancy Hecht from the Certified Financial Group.  Guys, how are you today?

 

Good.  Great.  Good morning.

 

Staying cool out there.

 

<Inaudible> expected to hit 102 today.

<!–more–>

Yeah, my car said 100 at 2:30 yesterday.

 

I left here, it was 102.  <Inaudible> come down and then <Inaudible> down to 99.  I don’t know if that’s —

 

I do not complain about the heat.

 

Yeah, you like the heat.

 

I hate being cold, so I do not complain about the heat.  Florida is a great place to live.  Central Florida is a great place to live.

 

Yeah, but 102 can get a little — I don’t want to be sweaty.

 

You know what, that’s what you have air conditioning for.

 

Well, that’s true.  That’s true.

 

You have air conditioning.  You can change that.

 

Well, just to remind everybody who may be tuning in for the first time, what can they call you about today?

 

We are here to talk about anything that’s on your mind regarding your personal finances.  What we have seen over the years is that most people go through life trying some of this, trying some of that, and really have no direction as to what they’re going to do when they ultimately stop working, when their paycheck stops coming in.  How do we pay the bills, how do we enjoy that life that we so hope that we would have? And that’s what Nancy and I and the other certified financial planners at CFG do day in and day out for a fee.  But, on Saturday morning we are here absolutely free.  So, if you have any questions regarding your personal finances, all you have to do is pick up the phone and dial these magic numbers.

 

844-220-0965.  844-220-0965.  And you can also text us.  We have a text machine up and running as well.  21232 is the number to do that.  Just keep it to about 160 characters.  That’s all we can see on our screen here.  21232.  Well, Nancy, Joe, I saw a headline this week said there are going to be some changes to the 401k plan, the new tax law.  I had to come in first thing and ask you about that right off the bat to get your thoughts.

 

Okay, so it goes from there are to there were going to be changes.

 

Ah.

 

So, when I read the whole budget proposal after it was released on Wednesday, by late Thursday night, early Friday morning, the parts that I didn’t like about the 401k had already been changed.

 

Oh.

 

There’s really nothing to worry about.

 

At least for the time being.

 

Yeah, I mean, it’s a bit — the funniest criticism I saw of the budget was it’s only 248 words and seven numbers.  I thought oh my gosh, if somebody — if that’s the criticism, somebody’s really grasping.  But I mean the president is known for throwing out the most drastic ideas ever and then going behind doors and negotiating, and coming out with something that is generally good for the majority of the public.  So, the things that they were going to change with 401(k)s all had to do with the taxability and making it more Roth-like.  And anything to dis-incentivize people from saving I think is horrible, so I obviously was not the only person who thought that and everything that was publicized for the radical changes for 401k at this moment do not exist.  So, there’s not going to be any changes to how 401(k)s are structured, 403(b)(s), any type of pre-tax savings which we always tout as the best thing when you’re saving pre-tax is whole dollars going into your pocket versus money that you’re sending to the federal government and it is the best way to save.  So, for the moment, it’s not changing.  So, that makes me happy.

 

The overall provisions of the tax —  proposed tax bill has got a long way to go.

 

Yeah.

 

Because we know what legislation is like now.  It’s like making sausage.  It ain’t pretty and you never know what’s going to come out the other end, but I really like the idea of eliminating estate tax.

 

Yeah.

 

<Inaudible> about the gift taxes.  Did you see anything about the gift taxes?

 

No.  They did not say estate and gift.  It just said estate tax.

 

So hopefully that will be eliminated as well.  I like the reduction to just three brackets <Inaudible> depends on what is allowed and where the cut-off points are like the increase in the standard deduction.  I like the corporate taxation for not only corporations, but pass-through entities like S corporations, and LLCs, and partnerships.  So, there’s — I think a great stimulus package for the economy and people are going to be squealing that it’s helping the rich.  Well the rich are the ones that pay the taxes.

 

Well, and aside from that, if you actually read what was proposed which, again, is not going to be what’s final, it helps everything.  Everybody.  And the article I was reading in the journal yesterday and there was a lot of quotes and interviews with Dems versus Republicans, they were admitting how it was going to help middle America.  So, you can’t —

 

Both sides of the aisle.

 

You can’t panic over the sound bites.  Everybody wants to get their name out there and hang on to one little point, nothing’s been voted on, nothing’s been a hard proposal.  This is a long way to go with all of this.  So, let’s just not panic with it and deal with what is the known quantity right now.

 

Can’t believe what you see on Facebook and Twitter and fake news websites.  Only right here on 96.5.

 

Even the national news.

 

That’s even <Inaudible>.

 

<Inaudible> Saturday mornings at 9:00 at we’ll set you straight.

 

You know, I was talking to somebody who was talking to the show a few weeks ago and I said I didn’t realize how the pre-tax — when you — the taxes <Inaudible> the 401k, it’s all pre-tax.  It’s not a deduction.  It’s <Inaudible> taxable income.  And I went well yeah, do you see the people really struggle with that?

 

And that was one fine point that was made in reference to the 401k yesterday.  It’s not a tax deduction.  You are not paying any tax on that money that’s going in there, period.

 

Period.

 

Yeah, it’s pre-tax dollars.  So, if you have $100 that you want to save, that whole $100 goes into your retirement account versus $100 minus 10%, 15%, 25% and then the net of that being invested.

 

It’s the full $100.

 

That’s the beauty of it.

 

Take advantage of the 401k.

 

Alright.

 

<Inaudible> payroll deducted.

 

Pre-tax.

 

Yeah.

 

Pre-tax.

 

And the rules between 401k and IRA for some of the <Inaudible> well I have an IRA and <Inaudible> job has a 401k, I — the more I do this show the more I learn and the more I go out there and I speak and we talk about retirement, and then <Inaudible> taxes is on everybody’s mind recently because we just all had to pay them and —

 

Well, you’re right to some extent.  It depends on the quality of the 401k plan that you have.  And you know, you’re limited as to how much you can put into an IRA, 5,500 if you’re at age 50 or 6,500 if you’re over the age of 50.  So, you’re limited.

 

Or, potentially less if you’re married and one spouse has a corporate plan.

 

Ah.  So — but, if you’ve got a match — if you have a match at work, that’s the first thing you want to do because that’s free money.  That is free money.

 

The problem I have with the match, though, is a lot of people will save to the match and that’s it.  And they’re doing themselves a huge disservice.

 

Yeah.  They think they’re maxing out their 401k and getting the match and that’s it.  That’s not right.  $18,000 if you’re under the age of 50, 24,000 if you’re over the age of 50, and that’s what you ought to be striving for.

 

Yeah.

 

Because at the end of the day when the paycheck stops, all you have is Social Security, plus what you’ve been able to save.  And friends, that’s the way to save it.

 

And I would imagine that there’s going to be more changes to the Social Security system before there’s ever changes to any type of retirement account.

 

Yeah, I was going through life never expecting to see Social Security by the time I reach 65 <?> in 34 years.

 

It’ll be there and here’s what’ll happen.  It’s going to be pushed out to age 70.  Full retirement age, you can count on it.  It’s going to be pushed out to age 70 as they did back in the 80s when they adjusted it to 65 to 67.  People are living longer and it won’t be pushed out to age 70 for Baby Boomers.  It will be the Millennials and the <Inaudible> so you can prepare for it.

 

Well, I think one huge change that can bring a lot more money into the system is if the deferral guarantee was dropped from 8% to even 5% or 6%.  I mean, you cannot get, right now, unequivocal 8% guarantee anyplace.

 

<Inaudible>.

 

Right, if you defer taking Social Security beyond full retirement age you get an automatic 8% credit a year.  So, by full retirement age being pushed out, that 8% credit is now only three years for most people versus four, so that’s saving money.  But, I think even to offer a 6% or a 5% guarantee would be nice for a lot of people and more than what you can get in the guaranteed realm today.

 

Hey, I’d take it.

 

And would save an awful lot of government money.

 

Absolutely.  Well, if you’ve got a question for Joe or Nancy, it’s 844-220-0965.  844-220-0965 or you can text us, 21232.  That’s 21232.  We do have a text question in here guys.  Is a sub-corp better than an LLC in terms of accumulating wealth?

 

Accumulating wealth.  Well, <Inaudible> company is that the entity in and of itself is going to be taxed the same way.  You can have the same kind of retirement plans and they function pretty much the same way.  I think — I don’t — I can’t think of any <Inaudible>

 

I would have to agree it’s a function of the business.

 

Yes.

 

And what type of cash flow there is.

 

The entity in and of itself <Inaudible> get the same tax treatment.

 

Okay, well that’s pretty — simple enough.  844-220-0965.  Joe, you were going to say something right after Nancy was done speaking before I gave out the phone numbers.

 

Well, sure, the phone numbers once again if you want to call <Inaudible> and the good news is you don’t even have to leave your own name.  You can pretend you’re somebody like Jack or Jessie or —

 

Unless you have a distinctive voice and we know who you are.

 

I just want to know what name to call when I click the number to put you on the air so you can talk.  <Inaudible>

 

Call anonymously.

 

If your name is A, tell me your name is B, I don’t care.

 

There you go.

 

At 844-220-0965 is the number.  844-220-0965.  Or what’s the number to reach you guys on Monday at the Certified Financial Group?

 

They can call us Monday through Friday, 8:30am to 5:30pm, 407-869-9800 or go to our website which is financialgroup.com and there is a ton of information.  We have a lot of things you need to know.  We have the upcoming workshop schedule.

 

Yeah, what is the upcoming workshop schedule?

 

Good question.  We will know at the end of the <Inaudible>

 

I know that the next Social Security workshop is June 20th and I also know that Gary Abley has a couple workshops coming up before then, but at this point we don’t know.

 

No worries.

 

Anyways so you can all look at — there’s a little picture and bio of all of us, directions to our office, you can send in questions, you can request a complimentary consultation.  So, the website has a lot of good information, financialgroup.com.

 

How’d the shred event go last week?

 

It was really nice.  It was really nice.  I did have one person say to me that they were struggling to get two boxes of stuff to shred because now they’re scanning everything and doing so much online, so there’s a shift in that realm.  But we had a nice crowd of people out there and it was nice to be able to see everybody and anybody who wanted a cup of coffee and a donut was welcome to it and —

 

Yeah.  It was a good day overall and <Inaudible>

 

Yeah, and the weather was nice.

 

Kyle was doing a great job here working the board while we were in the parking lot talking to our listeners.  It was great.  I saw this <Inaudible> — just to segue just a little bit into something different — Aaron just sent me — they have just released the details of the I-4, 434 Interchange.

 

Oh yeah?

 

<Inaudible>

 

How bad is it going to be for us?

 

Really?

 

I think it’s going to be very good.  But one thing that I didn’t know, it looks like the express lanes are going all the way to EE Williamson.

 

Wow.

 

Oh.  Okay.

 

That’s a lot further than before.

 

Yeah, they were supposed to stop at 434, so it looks like they’re going all the way to EE, which would be terrific.  I mean, absolutely terrific.

 

I take EE Williamson to <Inaudible> to go to work.

 

Oh yeah, if you want to jump on I-4, it’s better that driving all the way down <Inaudible> road.  That will take a lot of pressure off of Martin Woods.  I hope that’s <Inaudible> reality.

 

Hopefully, it keeps all the tourists in the express lanes.  The locals can use the outside lanes to get to and from.  That sounds great.  Well, we’re up against the three big things you need to know.  But again, the phone number, 844-220-0965.  844-220-0965.  The text machine is up and running as well, 21232.  We are planning tomorrow —

 

Today —

 

With Joe and Nancy from the Certified Financial Group on News 96.5 WDBO.  Hey, welcome back to On the Money with the Certified Financial Group here on News 96.5 WDBO.  That’s the show where we answer everything and help you get your 401k into that retirement finish line.  Joe Bert, Nancy Hecht from the Certified Financial Group are here taking your phone calls at 844-220-0965.  That’s 844-220-0965.  And then the text machine is up and running as well, 21232.  We are listening to ABBA <Inaudible> ABBA because next Saturday evening at the Spring Community in Longwood, Certified Financial Group for the sixth year will be hosting the annual Springs Concert.  And this year featuring the music of ABBA.  They bring in a tribute band, backed up by the full complement of the Orlando Phil.  It’s a great evening under the stars and I would tell you to call, but tickets are all gone.

 

All gone.

 

Sold out.

 

All gone.

 

Sold out.

 

They’re all gone.

 

You sold out.

 

Sold out.

 

Wow.

 

How about that.  Once again we’re proud to be a part of that and bring that service to the community.  We’re looking forward to seeing a lot of our listeners there.  So, if you’re there and you see us, please stop by and say hello.

 

Well, apparently, the after market for the concert can like start to jump up here <Inaudible>

 

Alright, so let’s get back to our phone lines here so we can get some questions answered.  Let’s go to B in St. Cloud.  B, you’re on with the Certified Financial Group.

 

Hello, B.

 

Hi, B.

 

Hi.  I had some questions about my 401k there because it doesn’t seem like I’m making any money off of it.

 

Okay.

 

I mean, at all.  And I don’t know how — I mean, they have the person you know whatever that says how to invest and everything.  My coworkers are making more money than I am, but — they did contribute until the company stopped matching.  But I’m still contributing like $50 a week and they’re making more money than I am.

 

B, I wonder if it’s a function of the investment portfolios you’re taking advantage of versus the investment portfolios that your coworkers are taking advantage of.

 

That’s what I’m saying.  I don’t know what the —

 

Yeah.

 

How to handle this.

 

Okay, have you —

 

I’m doing what they recommended.

 

Yeah.  Well, maybe what they recommended is not what’s performing up to snuff at this moment.  Have you had anybody do an independent analysis for you on what your investment choices are?

 

Well, <Inaudible>.

 

Yeah, so maybe that’s something that you need to do.

 

I just — because it’s easy, you know.

 

I understand that.  But, if you’re not getting the performance that you feel that you should, you need someone else to find all the investment choices and somebody needs to explain them to you — what the composition of stocks versus bonds versus cash, whether it’s foreign, whether it’s domestic, and see what fits in with your risk tolerance and your time horizon, and what might be the best choice for you to make.

 

B, let me ask you.  Let me try to make this a little simpler for you.  And I understand where you’re coming from because people start looking in that stuff and then you start chasing returns and then you start comparing what you have versus what your coworker has.  In your 401k plan, do you have any funds that have years attached to them like 2025, 2035, 2040? Does that sound familiar?

 

They have like a pie chart and I was just looking through the paperwork from my last statement and actually I thought I had it, but I actually have my wife’s.

 

What Joe’s asking —

 

<Inaudible>

 

Is there a fund that has the word target attached to it? Target 2025 or —

 

With a year attached to it.

 

I don’t have the paperwork.

 

How old are you, B?

 

I’m 47 years old.

 

47 years old.

 

Okay, so you have a lot of time.

 

So you’re 18 years out.  Look for, in your plan when you get a chance to look at your options, if you have something that says 2035 or 2040, that’s — I’m talk about years now — 2035, year 2035 or 2040.  That’s what’s called a target-date fund.  Alright, let me tell you how this works.  You put your money in it, set it, and forget it, and don’t look at it, don’t compare it with your coworkers, don’t worry about it until you’re 65 years old.  That fund is managed for you and it will become more conservative as you approach that retirement date.  So, in your early years it’s going to be more aggressive.  As the later years, it’s going to be more conservative so theoretically when you’re ready to retire the bottom hasn’t fallen out.  It’s one size fits all, set it and forget it.  If you don’t have the time, the inclination <Inaudible> working with a professional, that’s the failsafe way to invest in your 401k.  And do not, by any means, compare it with what your coworkers are doing because this isn’t a baseball game that you’re trying to do better.  Because people make the wrong decisions for the wrong reasons.

 

<Inaudible> encourage you to do that.

 

And B, I’m going to tell you that if — when you find your statement and your investment choices, if you want a little bit of help deciphering it, you can feel free to call me next week or it should be an e-mail.  My e-mail address is Nancy@financialgroup.com.  And I can help you find those target funds.

 

Alright, B.  Thanks so much for the phone call.  If you want B’s line, it’s 844-220-0965.  844-220-0965.  The text machine is up and running as well, 21232.  Right now we’re going to pause for the latest news, weather, and traffic with Dave Wall in the News 96.5 newsroom but right now we’re planning tomorrow today with the Certified Financial Group on News 96.5 WDBO.  <Inaudible> no worries, always try to see if I can’t catch you off guard.  So, for the news, here’s Dave Wall.  And welcome back.  This is On the Money with the Certified Financial Group here on News 96.5 WDBO.  We are taking your phone calls at 844-220-0965.  844-220-0965.  The text line is 21232 if you have a text question.  It’s just that simple.  We’ll see it on our monitor here.  I’ll ask it to the panel, and we’ll get your question answered right here on the radio today.  We had a caller that dropped off, guys.  I just wanted to bring — just to get the conversation rolling again — that she was going to get a marital settlement here recently and wanted to know what was the best way to deal with that money.  Should she hang onto it? Should she put it away? She was somewhere In her 40s, so let’s throw it out there, but she’s dropped off <Inaudible> wanted ask that question because I thought it would be pretty good for everybody.

 

From the premise, it sounds like it’s almost like a windfall, like a large amount of money potentially coming to this person that they haven’t had before.  And whenever somebody comes in to sudden wealth, you know there’s a lot of things to be concerned about and there’s a big fear factor so planning is certainly the most important thing to do for looking at where you’re at now, where you want to be.  Is there — some of those <Inaudible>, those if I only had itches that you might want to scratch and take that off the table.  And then look at long-term lifetime planning.  If somebody is in their 40s or their 50s and they’re in this type of situation, you’re looking at a potential 40, 50 year length of time to make this money work for you and you want to be  smart with it.  So first and foremost, what we’d like to do — and it really doesn’t matter what the lump sum of money is for somebody.  Everybody deserves planning.

 

Well here you have a divorce situation, so depending what your income situation is, this person — is this person going to have income, does this money have to be used to provide them income for the rest of their lives?  <Inaudible> sound <Inaudible>.  Do they plan on going to work or going back to work, what’s their lifestyle?  So all of these you mentioned, Nancy, is critical.  And that’s why planning is so important.

 

It is, and that’s — but people look at us as financial planners, money managers.  The planning part is first and foremost.  And we need to help people build their roadmap, their blueprint, any type of —

 

Good investing requires good planning.  Unfortunately, most people don’t do the planning, they do the investing.  Like B over there, he’s chasing is tail, <Inaudible> what his coworkers are doing.

 

Can’t do that.

 

People going to these seminars and then hear about so product somebody wants to sell them as the end-all, be-all, cure-all and think it’ll do what you want to do — don’t do any of that stuff until somebody has done some planning for you.  So you don’t — the most important thing is how conservatively can you invest your money and still have a high probability of not running out of money when you’re 95 years old.  And the only way to do that is to look at all of the variables that go into it.  Taxes, inflation, where your money is coming from, from pensions, from Social Security, what you’ve been able to accumulate.  And then you know — then you have a roadmap and you have a clear guide as to what you need to do now as <Inaudible>.  You don’t look back five years and say gee, I wish I would have known or gee I’m starting again.  I know we’ve got some calls, so let’s take them.

 

Yup, alright well let’s go to Daniel in Orlando.  Daniel has got a question with the Certified Financial Group, go ahead Daniel.

 

Good morning Daniel, <Inaudible>

 

Good morning everybody.

 

Good morning.

 

Hey, thank you for taking my call.  Here’s my question.  I’ve <Inaudible> in January and I’ve started the process I’m going to describe.  I want to have a minimum of 20 rental properties by the time I turn 60.  I’m only getting five year loans on these houses so I’m paying them off fairly quick.  What’s the best way — I’ve not done an LLC, just hold it all like a sole proprietor at the moment.  Is that smart or should I make a change?

 

You have them all in one LLC?

 

No no no, he’s <Inaudible> as a sole proprietor now.

 

No, no you want to set them up as separate properties because you’re going to give liabilities on all of those properties and what you don’t want to do is have the liability upset the whole apple cart.  Because when you’re dealing with somebody in those properties, you’ve got liability for not only what happens in the house, what happens with their guests and the people that trip on the sidewalk and so on.  So what happens is you expose all of the assets that you have in that LLC to a problem that you can have with the <Inaudible> one of the properties.

 

Okay.

 

So that’s a PIA — that means it’s a problem.

 

No sir.

 

Pain in the.

 

Pain in the — yeah <Inaudible>.

 

But Daniel, wouldn’t set up one LLC that you can just copy and number two, number three, number four.  Or I’ve had some clients that have named their LLC by the property’s street name.

 

Okay.

 

But it’s all just — every little house is its own boxed-in business.

 

Okay.

 

You’re <Inaudible> everything.

 

Well good luck.

 

Okay and then after the process — after I get them paid off, what’s the best investment avenue for the profit margin thereafter every month?

 

Well that depends on your time horizon when you hit that, what your risk tolerance is, how you’re living your life, who you might have responsibility for.  So there’s a lot of questions to be answered in the process that we’ve been talking about calling planning.

 

Okay, good to go.

 

Good luck <Inaudible>.

 

Alright, thanks for calling us in and dialing us up.  And if you want Daniel’s line, it’s 844-220-0965.  844-220-0965.  Text machine is up and running as well, 21232.  Let’s go to Ness in Orlando.  Ness, you’re on the Certified Financial Group on WDBO.

 

Yes, good morning.

 

Good morning.

 

Yeah, it’s Neff.

 

Oh, okay. Hi Neff, what’s you’re question?

 

Hi Nancy, well actually one of my questions you just answered about the LLC because I have a property that hasn’t done the LLC and I was thinking about doing that.  And had spoken to my account, and <Inaudible> that off, so that’s a good thing, I’m in the right track there.  Now however, you were mentioning something about a 401k that things are looking better for a 401k versus the Social Security funds.  I missed that because I turned on the radio too late.

 

Oh okay, no we were concerned earlier this week when the budget proposal came out of drastic changes to 401ks but that is not going to occur.  And just throwing out our top of the brain suggestions to try and make the Social Security system last a little bit longer, so that’s really all you missed this morning by turning in things late.

 

Okay.

 

But if you’re — are your properties your sole business or do you do something else?

 

No, well I do real estate, I do — just recently re-located to Florida, so New Jersey, my property is in New Jersey, the one I have rented out.

 

Okay.

 

So I’m here in Florida now and I want to get some more properties to rent them out, so that’s what I’m doing.  But I’m also retired.  I have a 401k, so I just want to know what’s a good package to throw that 401k in, basically?

 

Yeah, the title would be rollover IRA but as far as what investments might be appropriate for you, Neff — again, we need to look at how you’re living your life and what types of things you want to do in the future and pulling it out to age 90 or further.  What your risk tolerances are, what type of cash flow you might need from your 401k, so there’s a lot of questions that need to be answered specifically towards you.  We don’t have a one-size-fits-all kind of program.  <Inaudible>

 

For me is to go see you can so I can get more <Inaudible> information.  Because I’m already 67, so I’m not a young puppy anymore.

 

Well, you still got many years ahead of you, so.

 

But I have a few more years ahead of me I hope.  Okay, so I guess — do I have to set up — I guess I have to set up an appointment.

 

Yes.

 

Okay.

 

Go to our website financialgroup.com, you can click on Nancy’s picture, you can make a <Inaudible> appointment right through the website.

 

Financialgroup.com.

 

I got to know the thought that <Inaudible> just had, had the — was 20 rental properties and that was before Nancy’s suggestion about setting them up all in LLCs.  So he has 20 different LLCs — I’m thinking why not take all of those LLCs and roll them into another master — where they call them master LLC.  Take that cash flow, he’s an employee of the master LLC.  Not only has income coming in, he can set up a 401k through there or cash balance plan <Inaudible> cash flow as he can set aside $0.25M pre-tax.  So depending how this thing is structured, he might be able to have something <Inaudible>.

 

Yeah, well I mean for LLC I was thinking a SEP-IRA with a lot more than a regular 401k, but you know with the cash balance thing, being able to set aside more than 54 <?>, <Inaudible>.

 

Put all of those 20 LLCs into one master LLC, so he has the income coming in there and then he’s the employer <?> of that master LLC, and then he’s on the way to setting up his own retirement plan.

 

So it’s a combination of attorney, CPA, and CFP.  <Inaudible> structured properly.  And seeing as you’re at the begin of it, it’s a great time to do it.

 

Alright, some bad news for <Inaudible> we were hoping for an EE Williamson.

 

<Inaudible> Yeah, <Inaudible>.

 

No, in fact in looking at this more further, it looks like this is where you’ll be able to get on the expressway <?> and you get off — if you’re on I4, but you can’t get on I4 from EE Williamson.

 

Ah.

 

It’s just like the budget <Inaudible> versus reality.

 

Right?

 

Well Neff, thanks so much for the call, we really do appreciate it.  It’s 844-220-0965.  844-220-0965.  Let’s get to Julie in Orlando.  Julie, you’re on with the Certified Financial Group on news 965.

 

Hi, good morning Nancy, good morning Joe.

 

Good morning.

 

I’ve been listening to you folks for a long time.  I have a Medicare question, Nancy.  I’m turning 65 in August and I understand I have to sign up for Medicare.

 

Right.

 

I have not started to take Social Security yet.  My husband is <Inaudible> four years younger than I.  So he’s working full-time and we’ve got insurance coverage through him.  But I’m being bombarded with I should get Medicare part B and supplemental.  I was thinking of taking my Social Security this year when I’ve registered the Medicare.  I wanted to think about that or could I just come in and see you and talk with you about it?

 

Well I mean you can do both, but I mean Julie — if you don’t need to take the Social Security right now from a cash flow standpoint and age 65 is full retirement for you, every year to defer is an 8% increase in your Social Security.  So if can afford to defer, I would do that.  Because — I mean it’s a gift.  So if you don’t need it — and as far as the Medicaid goes, we do have people that are experts in that.  I know many people in this situation that you’re in where the spouse is still working.  And if you’re — if you have health insurance through his, that could be your supplement.

 

Yes, because I did check with him and they said — and I did go to a small free seminar and I checked with the company and they said that I do not have to have Medicare part B in order to continue on his health plan while he’s still working.

 

Right.  And it will <Inaudible>, but you do — unlike being able to defer Social Security, you absolutely have to sign up for Medicare.

 

I do, and I have to do that — I know I put things off — by May 1st?  Because my <Inaudible> in August.

 

Yes, you have to do it a quarter before.

 

Okay.  Okay.  And I can go online — I’m not very computer savvy.

 

Sometime next week you got to get that done.

 

Okay, and if I should need help with that, do you folks help out with that if I need that?

 

Well, as I said Julie, I have somebody that we can refer you to and we would be happy to do that.  If you want to shoot me an e-mail or call our offices, the phone number is 407-869-9800.  Do we have the Medicare referrals on our website or no?

 

No, just call Nancy.  Yeah.

 

Yeah, give a call someday next week and I’ll get you the contact information.

 

<Inaudible> like I said we’ve been listening to you guys for years and we’re planning — because he wants to retire soon, so we’re planning <Inaudible> anyway.

 

Well great <Inaudible> we really appreciate you being a long-time listener, thank you for calling.

 

Alright Julie, thanks so much for the phone call.  If you want her line, it’s 844-220 — I’m sorry Joe, it’s Julie <Inaudible> up next.  Julie, thanks so much for the phone call.  Jean, you’re going to be up next right after we get the three big things you need to know.  But if you want to get behind <Inaudible> it’s 844-220-0965, 844-220-0965.  We are planning tomorrow today with the Certified Financial Group on news 965 WDBO.

 

And welcome back, this is On the Money with the Certified Financial Group here on news 965, WDBO.  It’s our final segment, the last chance to get your question answered by Joe Berg and <Inaudible> Certified Financial Group.  844-220-0965, 844-220-0965.  Text machine is up and running as well, 21232.  We actually <Inaudible> just dropped off, just missed her.  We’re going to go through with — I forget what she had her question — did anybody else remember <Inaudible>.

 

But I do have a question earlier and it was in reference to upcoming workshops.

 

I did, yes.

 

So we have to have that now.

 

So we’re taking a little break in May.  This next workshop is know your number, when should you retire and that’s June 6th in our offices hosted by Gary Abely.

 

6:00.

 

Go to our website financialgroup.com and click on the workshop tab and you could make your reservation and reservations are required.

 

And Gary like us is also a CFP professional in addition to being a CPA, so you’re going to get some great information, leave your checkbook at home as we always say.  Go to our website, financialgroup.com and click on workshops, you can make your reservations right there.  At the break, I was telling Nancy about a case that we were working on this week, the clients were in yesterday we did the presentation of their draft plan.  And these are a couple of young folks, they’re 35 years old, making very, very good money, have a lot of extra cash flow.  And have decided that they want to use the Roth component in their 401k as opposed to getting the tax deduction <Inaudible> with the idea that they get tax-free income somewhere down the road.  Well we did the plan — strangely enough they’re never going to have to take money out of the Roth.  So they’re giving up that tax deduction today with the idea of getting tax-free income that they don’t need somewhere down the road because they’ll have so much capital they’re never going to touch the Roth.  So they’re giving up between the two of them like $10,000 in tax savings today to get something that they’re never going to need down the road.  So this was the benefit of doing the plan, open their eyes, and now they’ll have extra cash flow if they use the deductible portion of their 401k as opposed to the Roth portion.

 

Well <Inaudible> you know what, $133 <?> to save.  100 in the Roth versus saving $100 in the 401k as opposed to the Roth 401k.  So I’m not a fan of being <Inaudible> to the government.  I think I pay enough in taxes as it is.

 

Just pay what you have to pay and <Inaudible>.

 

Yup, that’s it.

 

That’s how I do it <Inaudible> playing by the rules, that’s it. <Inaudible> So Stay tuned, folks, because as this tax proposal winds its way through Congress over the coming several months, we will bring you up to speed on at least what we know.  But once again, it’s never final until it’s final.  We do hope a lot of it passes in its present form because I think it’d be great for the economy, stimulate the economy, which means you’ll have more tax revenue as opposed to less of <Inaudible> run like Reagan did, and let’s make it happen.

 

Ken, we were talking in the beginning of the show how this next tax <Inaudible> was really going to help the middle class.

 

It will, it will.  And if you just do the slightest little search, you can see how much of a difference it will make for everybody.  This is not something that’s for the “wealthy”.  There’s something in there to help every tax bracket, every income demographic.

 

But more importantly, it will stimulate the economy which is really what we need, and that just brings in more revenue and jobs go — we have higher wages because labor is in demand, and it’ll be good.

 

Well, if you think of just the automated services at a lot of fast food restaurants.  And self-checkouts in the front of stores — that’s not being done to make things more convenient for us.  That’s being done to offset taxes and the expenses associated with some of the mandatory benefit plans that —

 

Yup, head counts and all of that <Inaudible> business owners are facing.

 

They would much rather have a person at a register.

 

I much rather be rung up by a person.  I’ve done the self-checkout and go you know what I’m just kind of <Inaudible>

 

I do it if I have to but I prefer to go to where somebody is actually — I want to support that person’s job.

 

That’s it.  Well that’s going to do it for this week <Inaudible> On the Money.  What’s the number of the week — during the week, guys?

 

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

 

Nancy <Inaudible> Joe Berg, thank you so much for dropping in today, we’ll see you guys next week.  Stay tunes for Florida Homes and Gardens, that’s coming up next on news 965, WDBO.

 

Dictation made on 5/3/2017 3:40 PM EDT.

 

Translate »