Speaker 1 (00:00):
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Speaker 2 (00:34):
Stay tuned for on the Money Central Florida’s most listened to financial call and show Bronte You by Certified Financial Group in Altamont Springs. It’s the only show hosted exclusively by certified financial planner professionals. Monday through Friday their CFPs provide financial planning and investment advice for a fee, but on Saturdays the advice is absolutely free and has been for more than 30 years. For their WDBO listeners, if you have a financial question you want answered by real fiduciaries, the lines are wide open. Call five 80 WDBO, that’s 8 4 4 5 80 WDBO at Enjoy the show.
Speaker 3 (01:56):
Hello
Speaker 4 (01:56):
And welcome to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming us live inside your WDBO app. My name is Josh McCarthy. Joined today with a couple of financial experts from the certified Financial Group. We’ve got Certified Financial planner. That is Joe Burke and Nancy Heck joining us today answering your questions. This is a show, a one of a kind show, the only kind of a show where you can call in and get your questions answered by certified Financial Planner professionals. 8 4 4 5 8 0 9 3 2 6 is the number to call. Send in your open mic using that free WDVO app. Send in your text using that same number, 8 4 4 5 8 0 9 3 2 6. A top 100 firm just sitting right next to you on the radio answering your questions. CNBC says this is the people to talk to, the Certified Financial Group. Nancy Joe, how are we doing today? We’re
Speaker 5 (02:50):
Doing great Josh, how are you doing? Good. Good to be here you. I’m doing this
Speaker 4 (02:52):
Fine as always.
Speaker 5 (02:53):
As we said in the intro, Nancy and I are here to take your questions, things that might be on your mind regarding your personal finances. As the intro also says, we do financial planning, retirement planning, investment management for a fee on Monday through Friday, but we are here for you this morning absolutely free. So if you have any questions regarding your IRA regarding your 401k regarding real estate, long-term healthcare, reverse mortgages, life insurance, annuities, all that stuff and more those financial products that are out there might be confusing. Nancy and I are here to clean up, clear up the mind fog if you will. So once again, pick up the phone. That good news for you is the lines are absolutely wide open and you can text us or you can dial and reach us at
Speaker 4 (03:33):
8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO. Send in your open mic using the free WDBO app. Today’s topic, we’ll kick it off today with will these 2024 social security changes impact you?
Speaker 6 (03:50):
Well, there’s not a lot of changes, but the changes that are coming down may have an impact on some people. For a lot of people social security is a huge portion of their retirement income, so the cost of living allocation that is put forth every year has been quite large over the last couple years due to the COVID stuff and that’s going back down to a somewhat normal increase for this year. For 2024, the cost of living increase is only going to be a 3.2% increase. And I say only, I mean I think that that’s somewhat generous, but it’s been what, 7% over the last couple of years. The average over the past couple decades has been 2.6. So the 3.2 is still much larger than what the average is and then there’s a maximum amount of earnings that is subject to social security. So prior to this year, if you earned $160,200, that’s what all of that was subject to social security.
(04:57):
So now that’s being bumped up to a hundred sixty eight, six hundred. So if you thought at one 60 you were clear, I’m sorry, you’re going to be taxed at another 8,000 of your earnings this year. For people that are wanting to retire, the maximum that anybody can get at full retirement age for 2024 is $3,822 up from 3,627. Now, this is for people who are retiring at full retirement age and we both know plenty of people who look at starting social security when they can first get access to it, which for most people is at age 62. So anywhere between that age 62 and full retirement age, which for most people now is somewhere between 67 and eight years old. You have to really be careful because if you’re still working or you’re still earning income from other areas, it might be nice for you to take the social security early, but you’re going to have to pay some taxes on that. Yeah, you
Speaker 5 (06:12):
Got to be careful. It’s a mistake that many people make. They think they’ll grab their social security and they continue to work and find out that they’re not going to get as much income as they thought because of that offset.
Speaker 6 (06:21):
So if you do take early and you are earning income, you’ll pay back $1 for every two that you earn if you earn $22,320 or more. Now, I’m a fan when doing my planning of trying to get my clients to wait to 70 to take social security because right now for every year past full retirement age that you delay, you get an 8% increase, which I think is generous and I think is crazy because we’ve been hearing for years that the Social Security Trust fund’s going to run out when?
Speaker 5 (07:01):
Two years
Speaker 6 (07:03):
In two years?
Speaker 5 (07:04):
No, no, no, 2035. That’s two years.
Speaker 6 (07:08):
Oh no, that’s one year. I’m sorry a minute. We’re in a new year. It’s
Speaker 5 (07:11):
11 years, is it? Well, 20 24, 20 35, that’s right. Okay. It’s there anymore. I’m sorry. Nancy hasn’t had her coffee yet this morning. It’s early.
Speaker 6 (07:18):
I only had one cup of coffee. Okay, so 11 years, which is really not that long a period of time. It will go by in a blink. So thinking of the scheme of time and if you plan on living into your nineties, which I think most people hope to and I plan for when I do my retirement plans 11 years down the road is really not that far away and for the fund or for the taxing of all of us that are still working and for the people coming up that are just starting their jobs for social security, who knows what it’s going to be true. I contend that if that 8% was dropped to five, which is still a generous bonus for waiting, then that would save so much money. It would be
Speaker 5 (08:07):
Ridiculous. Well, there are some easy fixes. You can extend the retirement age as we did back in the eighties when President Reagan made the modification from 65 for the younger people, now 67, and because of life expectancy you could bump it up to 69 or 70 for those that are in their twenties. You can increase the social security wage base where you pay a little bit more into social security once you reach the threshold. So there are ways to fix it. Unfortunately, social security has been the third rail of politics and no politician wanted to touch it because their adversaries immediately jump on it and say that they’re going to take grandma’s social security away. And so nobody wants to talk about it, but unless Congress steps up and it’s up to Congress, it’s not up to the president. However, the president has the bully pulpit, but really Congress needs to step up and make those changes. Otherwise, as you said, in the very near future, we’re going to have some major troubles and Medicare is even in worse shape.
Speaker 6 (08:58):
Well, I guess I’m going to find out about that soon.
Speaker 5 (09:02):
Welcome to the club.
Speaker 6 (09:04):
Well, I’m not there yet. I got a couple months yet, but I’m almost there. But I mean you had mentioned something about the increases. I mean for this year, $3,000 more of earnings is going to be taxed for social security and I’m wondering how hard of a look there is on people taking Social Security disability or the other reasons that you can get Social security benefits if you’re not at full retirement age or if you’ve not paid the full amount into the system. I mean, I know people that are truly disabled and it’s a godsend that they’re getting the Social Security disability, but I also know that there’s people taking other social security benefits that maybe shouldn’t be, and I just wonder how monitored that system, that section of social security is.
Speaker 5 (10:03):
Yeah, well that’s the other challenge. It’s got a hole in the bucket and the money keeps leaking out and nobody’s watching the store, and that is therein lies the challenge of why we have an issue with social security. So you bring up a very good point there, Nancy. You want to factor in social security as part of your future, but you have to plan around that. And so security as we know is not the retirement plan. It’s really a safety net and it’s in addition to what you’ve been able to save through your IRAs, your 4 0 1 Ks, your 4 57, your 4 0 3 B, all those plans that have been put in place to give you a tax incentive to save. Now because social security as we know will not cut it if you’re living on social security as we know, you’re living below the poverty level and that is not a pretty picture and the earlier you start putting money into those kinds of retirement plans, the better off you’ll be.
(10:51):
And therein is the challenge and most people don’t. You live for today and you don’t think you’ll ever be 50, 55, 60 years old and then you look back and say, my gosh, what happened to all this time? And I’ve got a scramble like heck to get caught up and therein it may just or you have to work a lot longer and therein that’s why you need to do planning. What you don’t want to do is start on that long road called retirement and find out that you’re going to run out of gas when you’re 79 years old because you thought you’re going to be okay when you’re 62.
Speaker 6 (11:18):
And in reference to sister security, I have long contended that if more people had to pay social security like us self-employed people where you’re paying both sides of it, they would really get an idea of how much of your income actually is going into the social security system. And if you have to pay both halfs of it, it is a huge eyeopener.
Speaker 5 (11:44):
Yep, that’s correct. Yeah,
Speaker 6 (11:45):
And people don’t realize that employees pay what, 5.6 or I don’t even know what the employee portion it is, but if you had to pay the full
Speaker 5 (11:56):
1315, it’s 7.30.
Speaker 6 (11:58):
7.3, okay. Then it’s another what it averages about a total of 13.
Speaker 5 (12:03):
That’s your Medicare on top of that. Yeah,
Speaker 6 (12:04):
It’s crazy and it is an eyeopener when you’re paying both sides of it. Yep, it
Speaker 5 (12:10):
Is. It is. So that’s the story on social security this morning. I see. We may have a text question there or
Speaker 4 (12:15):
A That’s right. We had an open mic that just showed Go ahead and play that. Now. You can send in your question using the WDBO open mic, just open up that free WDBO app, push the open mic and send in your question.
Speaker 7 (12:25):
Hi, this is for Joe or Nancy, what is the minimum amount of money that one would have to have an account for y’all to manage the account? Thank you.
Speaker 5 (12:34):
Well, generally it’s a half a million dollars. We make exceptions for certain folks that perhaps are the children of some of our clients or something as we expect that your situation will change in near future in order to be, and there are, we will make exceptions in certain cases, but generally it’s about $500,000.
Speaker 6 (12:52):
And one thing that I want to add to it, some people might think, oh, I don’t have that in my general investments or my IRA or something, but we do manage 4 0 1 Ks for people while they’re working and that is part of the asset pot that we look at when we’re looking at if somebody meets the thresholds or not.
Speaker 5 (13:11):
Yeah, that’s a great point. Today thanks to technology, you can leave your 401k where it is your 4 57 where it is and we can help you make those decisions and move those funds around as appropriate. You’re not getting out of your plan, you’re continuing to hold that plan. You’re continuing to make regular contributions as you normally would, but we have the ability to then sort through all those choices that you have and find out the best mix that you have to meet your time horizon and risk tolerance. And I hear the music there Josh, so take it away buddy.
Speaker 4 (13:39):
That’s right. If you want to hop on the show today, hop on board, join the conversation. The number to call is eight four four five eight zero nine three two six eight four four five eighty WDBO text in that same number with your question. I’ll read it off to you with my best impression of you 8 4 4 5 8 0 9 3 2 6. Use that open mic inside the WDBO app you are listening to on the Money where we’re planning tomorrow today with the Certified Financial Group. Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming side, always streaming live inside your very own WDBO app. We have Nancy Hect and Joe Bird, a couple of certified financial planners with the Certified Financial Group on call answering your questions for this hour. The number to call is five eight zero nine three two six. The number to text that same number 8 4 4 5 80 WDBO send in your open mic using the very same previously mentioned WDBO app and that’s not the only way you can pick the brains of these experts if you really want to know more. They have special classes I believe in which you can go and say hi.
Speaker 5 (14:49):
We do have a workshop coming up, Nancy?
Speaker 6 (14:50):
Yes. Our next workshop is being hosted by Gary Ley. It’s entitled, will Your Savings Last A Lifetime? This is Saturday, February 24th. It’s from 10:00 AM to noon. In our workshop, I mean in our
Speaker 5 (15:08):
Learning
Speaker 6 (15:08):
Center. Learning center. I’m sorry. It’s all right.
Speaker 5 (15:11):
You were up in the attic and I think you inhaled a fumes or something. I
Speaker 6 (15:13):
Swear to God. Yeah, too much work this week. The brains are fried. But anyways, so if you go to our website financial group.com, there is a workshop tab and I highly recommend if you want to attend this workshop, which again, Saturday, February 24th, will your savings last a lifetime? Make sure that you make a reservation and you’ll also get to see the other three workshops that we have upcoming over the next few weeks on their site. Also financial group.com and the workshop tab to preserve your spot for will your savings last a lifetime.
Speaker 5 (15:51):
That’s two weeks from today. It is absolutely free. It’s hosted by Gary Ley, C-F-P-C-P-A. In this workshop, Gary’s going to show you how you can do some quick estimates on are you on track and do you have to make some corrections? And he’s got rave reviews on this workshop and I encourage you, if you’re at or near retirement age and you want to see you’re on track, you have enough fuel in the tank, this is one you don’t want to miss. So once again, as Nancy said, go to our website, that’s financial group.com, click on the events tab, you can make your reservation right there and we will save you a seat. We have about 30 seats available in our learning center, accommodate 30 p when the workshop is filling up, there are 30 seats total available and we’d be glad to see you there. That’s two weeks from today at 10:00 AM and we also have Score My Funds, Nancy.
Speaker 6 (16:35):
Yes, we do. This is something that is a nice complimentary feature that we offer Score. My funds will allow you to input the ticker symbols for up to 20 different mutual funds that you own, whether they’re open end or exchange traded funds. We cannot get information on closed end funds through this service. And we have 14 different data points that every mutual fund is held up to and we will send out the report to you. Again, it’s absolutely complimentary to look at the quality of your funds held up against these 14 different data points. It’s score my funds.com.
Speaker 5 (17:12):
This is something that’s been created by the Center for Fiduciary Studies. It’s totally objective. It takes all the various things you need to look at when you determine the quality of a fund is not just a performance. Of course we look at performance, we look at how long the manager has been there, what the fees are, what the risk versus return is on that particular fund and how it stacks up against its peers. So we’re measuring large cap against large cap, small cap against small cap international against international and so forth. So have any questions about the quality of the funds that or ETFs that are in your 401k, your IRA or in your brokerage account. Go to score my funds.com, that’s score my funds.com and as Nancy said, put in the tickers and if you don’t know the ticker, there’s a pull down menu. Just put in the fun name, ETF name and it’ll give you the ticker and we’ll send you a report within 48 hours and follow up with you if you have an interest and a lot of our listeners have taken advantage of, it is absolutely free and we encourage you to do the same. And I hear the music again there Joso. Take it away buddy.
Speaker 4 (18:07):
That’s right. If you want to join the conversation, couple of certified financial planners, Nancy hec and Joe Bird, standing by 8 4 4 5 8 0 9 3 2 6. Text the number, text the question 8 4 4 5 8 0 9 3 2 6. Send in your open mic using that free WDBO app you are listening to on the money where we’re planning tomorrow today with the Certified Financial Group. Welcome back to On the Money right here on WDBO. Thank you so much Stevie Wonder for getting us back into this segment. We got Nancy hec and Joe Bird, a couple of certified financial planners with the certified financial group here answering your questions. Pick up the phone dialed (844) 580-9326. Text us in. We have Lisa texting us in. I’ll get to you right after we go to the phones, but we got Liz on the phone. Again, if you want to send in your open mic, use that free WDBO app, send in the open mic, push that button, send us your best 15 seconds and we’ll play it back. 8 4 4 5 8 0 9 3 2 6 is how you talk to Joe and Nancy and the certified financial group. Liz calling in from Orlando. Go ahead Liz, you’re on the air.
Speaker 6 (19:09):
Hi Liz. How you doing this morning?
Speaker 5 (19:11):
Good morning, Liz.
Speaker 8 (19:12):
I’m good. Hope you guys are too. What’s
Speaker 6 (19:14):
Up? What can we do for you?
Speaker 8 (19:16):
Well, this is kind of an off base question you probably haven’t had before. I run a 5 0 1 C3 nonprofit rescue and the only way they’ll survive is through donations, grants and people who put funds into their trust or their will, whatever to keep it going because they’re supposed to continue no matter who’s in charge. It’s like a continuous however many long years you can keep it going.
Speaker 5 (19:43):
What are you rescuing?
Speaker 8 (19:46):
Bunnies.
Speaker 5 (19:47):
Bunnies. That’s a whole story right there.
Speaker 8 (19:50):
Well people, it happens. People toss them out after Easter, they get bored. It’s rough and we’re overrun. Okay, we’re all overrun with them.
Speaker 5 (20:01):
What’s your question?
Speaker 8 (20:02):
Well, the question is how can I find out if there are people out there to put that into their trust or their will? Is that something you guys could offer when you do their financial planning or is that someone else?
Speaker 5 (20:19):
No,
Speaker 6 (20:19):
If I can just clarify one thing. Liz has said trust a couple times. So there’s something called charitable remainder trust where people will identify specific charities that they want their assets to go to when they pass on or sometimes throughout their lifetime. So a charity such as hers, which is a qualified under the IRS code charity could be listed as one of those beneficiaries in that trust.
Speaker 5 (20:50):
And the way that works is generally you put in that trust assets that are highly appreciated but have a low cost basis to avoid paying gains or taxes when you sell them. So let’s say for instance that you bought Apple stock years ago and you paid $10,000 and today it’s worth a hundred thousand dollars. You can sell that stock for a hundred thousand dollars, pay the taxes on the $90,000 of gain, or you can take that a hundred thousand dollars and put a charitable remainder trust and that trust will then sell that, get the full hundred thousand dollars, you’ll get a tax deductible, you’ll get income for your lifetime based on your age and then that when you pass on, then those assets that will then revert to the charity. So that’s one way to do it. We don’t know who does that. I think your question also was is do we recommend that those to clients? And the answer is definitely yes. We do charitable planning with our clients as part of overall financial planning. And that’s just one vehicle also qualified charitable distributions, right? Nancy and IRAs?
Speaker 6 (21:42):
Yes. And another way that a lot of my clients contribute to charities such as Liz’s is the required minimum distributions. You can do a qualified charitable distribution from your IRA, it counts as your required minimum distribution and it counts as a tax deduction. So that’s another way to be able to contribute to not-for-profits such as Liz’s and many other different charities fulfill the requirements that the law is demanding that you pull out of your retirement account and help your local community.
Speaker 5 (22:19):
Or there’s another option that I’ve used in the past setting up a life insurance trust where you buy a life insurance policy and then the charity owns the life insurance policy. You make the premium payments, the premiums are tax deductible and when you pass on the charity gets the benefits of that life insurance policy. There’s all kinds of charitable tools that are out there. Liz, we don’t know until our clients come to us. Until us they’re charitably inclined. They want to give money to their church, their synagogue, their favorite charity or their favorite money rescue situation. But we are well aware of those and that’s our responsibility as certified financial planners to help our clients figure out those needs both now and sometime in the future.
Speaker 6 (22:58):
If you want to send me the information on your charity, then at least I can keep it in the queue for my clients that are looking for someplace to donate the two that’s local.
Speaker 5 (23:08):
Liz, I have a question for you.
Speaker 8 (23:10):
Fantastic.
Speaker 5 (23:12):
Liz, I have a question for you.
Speaker 8 (23:14):
Sure.
Speaker 5 (23:14):
Have a friend that has known of a bunny rabbit that is house trained housebroken. Do you ever ever heard of such a crazy thing?
Speaker 8 (23:23):
Absolutely. Everyone that comes into our rescue, either from people who have to relinquish them because they can’t keep ’em anymore. Apartment buildings don’t allow some pets anymore or they’re found on the street because breeders turn them loose. Really? We bring them in, we get them spayed or neutered just like feral cats. We litter train them to a litter box like a cat and they are indoor pets only. We never allow them outside. They are in an exercise pen and they’re free roam in the home. They’re very quiet. They’re like the perfect quiet pet.
Speaker 5 (24:00):
That’s what I’ve heard. So what’s the name of your rescue? Liz
Speaker 8 (24:03):
Holly Hops Rabbit Rescue and Rehabilitation.
Speaker 5 (24:07):
Holly Hops Rabbit Rescue and Rehabilitation. Where are you located?
Speaker 8 (24:11):
I’m in Deltona and we don’t have a facility, we just have people that have the bunnies in their home. It’s foster based.
Speaker 5 (24:18):
Oh, I see. Okay. So if somebody was looking for a bunny rabbit to have is a pet and keep inside their home, they can reach you through Holly. You have a website?
Speaker 8 (24:27):
Yep. Holly hops.org.
Speaker 5 (24:29):
Holly hops.org. All right Liz. All
Speaker 8 (24:31):
Right. I appreciate you guys so much. Thank you. And I will send you the information.
Speaker 5 (24:35):
Okay, Liz,
Speaker 6 (24:36):
Have a nice weekend.
Speaker 5 (24:37):
How about that? You
Speaker 8 (24:38):
Too.
Speaker 5 (24:39):
Bunny rescue. Alright,
Speaker 6 (24:41):
Why not?
Speaker 5 (24:41):
Yeah, why not? Alright Josh, we’re back. You back there buddy? I’m here.
Speaker 4 (24:46):
Here, I’m here. We got some calls here. We got some texts. You want to go to the text lines here? Let’s do the text if you want to text in your question. Nancy Heck, Joe Bur with the certified financial group standing by 8 4 4 5 8 0 9 3 2 6. This one comes to us from Lisa in Orange City. Lisa wants to know, it looks like she signed up for social security at 62 and she wants to know if she can come off it if she feels she should have waited a little bit longer.
Speaker 6 (25:09):
So can she have a do-over on social security?
Speaker 5 (25:12):
Yeah, she has to file withdrawal for benefits and that’s social security form SSA 5 21. There may be some restrictions up to 12 months. I think you have to do it within 12 months of doing it. She has to pay back the benefits as well. And also if any family members are getting benefits, they have to consent to it because they have to give back their benefits as well. So you got to be sure that you’re doing that as well. And there’s information on the internet regarding that for her.
Speaker 6 (25:37):
Ssa.gov is a really nice source of information for all things social security. There
Speaker 5 (25:44):
You go.
Speaker 4 (25:45):
Alright. Yep. We got another text message just rolled in so soon. I don’t have a name for us yet. I’ll let you know once they reply. And this texter wants to know is now the time to buy a seven month old CD at five. Sorry, I’m going to start over now is now the time to buy a seven month CD at 5% or a 12 month? At 4.47%?
Speaker 6 (26:07):
Well with the seven month first of all, you’re going to get a smidge more in the way of interest and then you’ll have a shorter timeframe to look at what’s going to happen with rates and make a decision. We were all hoping we were under the impression that the federal funds rate was going to go down in March. I don’t think that that’s going to happen now they’re talking more potentially July. July or not at all this year,
Speaker 5 (26:35):
Not July.
Speaker 6 (26:36):
So I think at this time I would go for the higher rate and the shorter term,
Speaker 5 (26:41):
But I think what the listener needs to when they’re talking about what was the seven month deal, what was
Speaker 4 (26:47):
The rate? It was 5% at seven and 4.47 at 12
Speaker 5 (26:50):
Months. Once again, that 5% for seven, that’s an annualized rate. It’s not like you’re going to get 5% at the end of seven months. That’s when they quote that that’s an annualized rate. So you’ll get less than that because you don’t hold it for the full 12 months. You’re going to hold it for seven months. So you get seven, 12 to 5%, you’ll get the prorata. Right, right, right. So be careful, read the fine print. That’s my heads up there.
Speaker 4 (27:14):
I honestly never knew that whenever I looked at the rank
Speaker 6 (27:18):
Because you see those little letters, a PR at the end, tiny annual percentage
Speaker 5 (27:24):
Rate, that’s annual percentage rate. So heads up on that. How
Speaker 4 (27:27):
About that?
Speaker 5 (27:28):
How about that? See pays to stay tuned here at WB.
Speaker 4 (27:31):
That’s a benefit of being a,
Speaker 6 (27:32):
If you find a money market that’s paying in the four to 5% range, there is no timeframe associated with that. So that’s decent also.
Speaker 5 (27:42):
Yeah, money market accounts today are paying in the range of 5% and they’re totally liquid. Put the money in today, take it out tomorrow. But the 5% is an annual rate. Rates are going to fluctuate, rates go down, but it’s liquid. So there’s all kinds of options out there, but those are not what we would call investments. Right Nancy? That’s a parking place,
Speaker 6 (27:59):
Right. I think cash is important and if you’re a regular listener, you’ve heard me talk ad nauseum about making sure you have decent cash reserves and a money market account would count for cash reserves, checking, savings, money market of the areas where you keep liquid cash that if you need or want to use the dollars, they’re coming out without a penalty,
Speaker 5 (28:21):
Right? Right. You generally don’t. In fact, you never lose money on an investment unless you sell it when it’s down. And that’s why you don’t want to be forced into a sale. You want to have liquidity in your portfolio. When you put together a portfolio, you want to be sure that you’ve got that cushion to draw from when the time comes that you need to replace the air conditioner or the roof or buy a new car or something. So that’s what planning is all about. That’s what we do here at Certified Financial Group. We do financial planning, retirement planning, investment management for a fee as we have now for more than 40 years working with clients. Really now throughout the country. As we’ve said before, we manage all nearly 2.5 billion worth of money. We don’t custody any money here, right Nancy? There’s no safe here. We disappear tomorrow. Your money is never tied up with certified financial group.
Speaker 6 (29:01):
That is correct. I mean most of the money that we manage is through Schwab or Fidelity and there’s various different other sources that we use. But no, we do not hold assets for our clients at all. We do the reporting, we do the research work. There’s a lot that goes into what we’re recommending for our clients for a particular need and not everybody is on the same page in the same place. So we don’t have, as we’ve said in our ads, cookie cutter types of portfolios that we put people in. There is some customization that goes along with everything, but yes, we do not hold assets for our clients here in our
Speaker 5 (29:42):
Offices. But your money does not live here. We are advisors and you get statements directly from either Fidelity or Schwab and your money is there. And in addition to a detailed report from us opining on the quality of what we recommended and what changes we want to make and that’s what we provide for our clients. But before that, we do retirement planning. We look at where you are today with your assets, your income, your time horizon, your risk tolerance and all that. And then determine how those money should be invested. Good investing requires good planning and certified financial planners. That’s what we do. And hear the music again Josh. So take it away buddy.
Speaker 4 (30:12):
You got it. If you want to join the conversation, one more segment coming up 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO text in your questions like Lisa. And that last one was Gary and Mount Dora. Thank you so much Gary for being a part of the show today. 8 4 4 5 80 WDBO. Send us your open mics using that free WDBO app and one more way to pick the brains of certified financial group today. We do have Charles Curry standing by off the air. If you know your question is of the sensitive matter or you want to just skip the middleman and start right working with the certified financial group today, that number is 4 0 7 8 6 9 9 8 0 0. Charles Curry off the air, standing by at 4 0 7 8 6 9 9 8 0 0. You are listening to On the Money where we’re planning tomorrow Today with a certified financial group. Welcome back to our final segment of On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming live inside your WDBO app, Nancy hec and Joe Bur of Certified Financial Planners standing by today answering your questions. And we do have Charles Curry standing by off the air to answer your questions of a sensitive nature or specific finances. That number I want you to write down right now is 4 0 7 8 6 9 9 8 0 0. Tell Charles, Josh said hello right now. We have Nancy and Joe answering your questions. Got a couple of text questions just rolled in. Is it okay if we go through those guys? Let’s
Speaker 5 (31:40):
Do it. Sure. That’d
Speaker 4 (31:41):
Be great. Right? This one says I’ll be turning 73 this year and how do I figure out my RMD?
Speaker 6 (31:49):
Okay, so 73 is the new age for required minimum and distributions. You don’t have to take it before that. You can take money out of your retirement account before that, but you don’t have to when you hit 73 you have to. So there’s tables that are published, excuse me by the IRS as to what you have to pull out. The last thing that I saw, it was 4.06% but I don’t know if that’s been adjusted this
Speaker 5 (32:16):
Year. Yeah, it’s 3 77.
Speaker 6 (32:18):
Okay, 3.77% of your retirement account balances as of 12 31 23 tells you how much you have to take out. So if you have two or three different IRA accounts and they total $500,000 so you know that you have take out 3.7777% of that balance of 500,000 as of December of last year. You don’t have to take a portion from each IRA account. As long as you take the proper dollar amount out, you’re okay. It doesn’t matter which account it comes from.
Speaker 5 (32:58):
The important thing you take it out and it’s got to be done by the end of the year, not on the day you turn 73 and you also your first year, you can defer that. You don’t have to take it out. You can defer it until April 1st, not April 15th, but April 1st, the following the year. However, if you do that, you have to take out, continue to take out. So you’ll be taking out to the subsequent year, right?
Speaker 6 (33:17):
Correct. Alright. Correct. Alright.
Speaker 5 (33:20):
Alrighty. So that wraps that one up. You got another one there Josh? I got
Speaker 4 (33:22):
One more for us. As the show comes to a close, this one says, if I don’t have a family member for a contingent beneficiary, who do I name?
Speaker 6 (33:30):
Okay, so first of all, a contingent beneficiary is the second one after your primary. A lot of people just completely ignore contingent. They have their spouse, their immediate family members as a primary and then nobody after that. So a charity such as we were discussing with Liz could be named as a contingent beneficiary. Friends, family, grandchildren, anybody that you think would be
Speaker 5 (34:01):
Anybody that has
Speaker 6 (34:02):
Deserving of your money or any charity, anybody
Speaker 5 (34:03):
That has a tax ID number
Speaker 6 (34:05):
Right after the primary people. And for contingents, often people name their children and if you have more than one child and you have grandkids from all those people, there’s something called purse stirpes, which means it will go down each family line. So if you have three kids and one gets 34 and the other two get 33 and you put purse stirpes, it will go down their family line to their kids. If you do not do per stirpes and one contingent passes away, then the other two end up being the primary contingent beneficiaries in place of that third.
Speaker 5 (34:42):
And the important thing to remember there is that the beneficiary designation on your IRA, your 401k, your insurance life insurance, your annuities, it overrides anything that your will might say anything that your trust might say. People think, well I’m going to put in my will and I’m going to leave my IRA to somebody or I’m going to leave my 401k or my life insurance. Forget it. It’s whatever that beneficiary designation is on that form. So be sure that those forms are kept current. If there’s been a divorce, a marriage, some change in your family situation, you want to be sure that those forms are always up to date because that could be a legal nightmare trying to sort that out for your survivors.
Speaker 6 (35:17):
And beneficiary designations are discretionary. You can put whomever or whatever qualified charity you wish as your primary or your contentions and you can change them at any time that you see fit.
Speaker 5 (35:31):
Whatever floats your boat at the moment and that can be changed. So that about wraps it up for today. We got Charles Curry taking call seal off the air at 4 0 7 8 6 9 9804 0 7 8 6 9 9800 or one 800. Execute as if you’re executing a legal document. Once again, we’ve got a workshop coming up two weeks from today where your money sur vast, where your savings last a lifetime, man. Right
Speaker 6 (35:54):
Financial group.com, the workshop tab, reserve your seat
Speaker 5 (35:58):
Right. Hope to see you there. Have a great weekend everybody.
Speaker 4 (36:00):
Thank you so much Joe Bur Nancy Hecht with the Certified Financial Group you just listened to on the money where we’re helping you. Plan tomorrow today with the Certified Financial Group.
