Annuities: The Good, the Bad, and the Ugly.

Annuities the good, the bad, and the ugly. | TRANSCRIPT

Speaker 1 (00:00):
Information presented on this program is believed to be factual and up to date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment advice, but is limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Certified Advisory Corp is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.

Speaker 2 (00:34):
Stay tuned for on the Money Central Florida’s most listened to financial call and show Bron to 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 (01:43):
Hello and welcome to On the Money right here on WDBO. Your chance to pick the brains of some financial experts, some certified financial planners in your area. Sitting in the studio today with Joe Burt and Nancy Hecht with the certified Financial Group. This is your chance to call to fact check your friend to double check something you heard in the news. Maybe you got a government job lined up and you want to know what’s the difference really between a 401k and a 4 0 3 B. This is your chance to call in just to verify your knowledge because that’s what we like doing here. We got experts in the building with a certified financial group and they are here to help you. Joe, Nancy, how are we doing today? We’re

Speaker 4 (02:22):
Doing great Josh. Good to be with you again. As we said in the intro, we are here to take your questions, things that might be on your mind regarding your personal finances, things you might have heard, things you might have read, things you might have dreamed about last night. We are here to clear up the mind fog on your personal finances, on stocks, bonds, mutual funds, real estate, long-term, healthcare, annuities, life insurance, reverse mortgages, all that and more. We are here and the good news for you is absolutely free. Monday through Friday, Nancy and I and the 14 other certified financial planners here at Certified Financial Group do wealth management retirement planning for a fee, working with our clients as fiduciaries. But on Saturday morning we are here for you absolutely free. So you have questions, anything that’s on your mind, things you’ve been thinking about. The good news for you is the lines are absolutely wide open. You can create the line by simply picking up the phone and dialing these magic numbers.

Speaker 3 (03:08):
8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO. Call us at that number, text us at that number if you want. Just write down your name, your city and your question and I will get you on the air as if you’re sitting next to me asking the question. Text us, call us five eight zero nine three two six. Send in your open mic using the free WDBO app. The topic of today’s show, annuities, the good, the bad, and the ugly.

Speaker 4 (03:41):
I like it.

Speaker 5 (03:41):
It’s appropriate. Yeah, so in its simplest form, an annuity is a contract with an insurance company either to defer money for a long term or to pay yourself an immediate income. And I used to really like the tax deferred annuities years ago when they were plain and simple. You either had a bucket of mutual funds that you could invest your money in or there were guarantees for lifetime either 5%, 6% or 7%. So whichever investment experience was better on an annual basis, the guaranteed rate or the return from the mutual funds you picked is what you were credited with. But on the flip side of that, there’s surrender charges. So surrender charges years ago, used to last maybe five years, surrender charges. If you have to withdraw your principal within that period of time, you pay a percentage to surrender the contract. Now the surrender charges are oftentimes 10 years or more and I don’t like that. No.

Lemme give you an example of how a tax deferred annuity might work for somebody. I had a client who recently passed away at 92, 32 years ago. This person deposited $232,000 into a tax deferred annuity as I had explained originally with one of the fixed rates or the mutual fund performance being the annual credit, and this person decided to start taking withdrawals over the years. They pulled out more than $1.2 million and passed away and there’s death benefit of over $180,000 going to this person’s heirs. There you go. The devil is in the details. That’s the bad part. You have to really pay attention to what you are signing up for. I’ve had some clients recently that we’re not happy with what their pensions are going to be paying them. Had some cash tucked aside, not earning much for them and said, what can I do to turn this into a regular paycheck in their retirement?

That’s known as an immediate annuity. So you deposit a certain amount of money based on your age of the person taking out the contract and potentially their spouse or partner. You can be quoted a regular check that you’ll get monthly for the rest of your life, but you have to know that an immediate new annuity in most cases is an irrevocable decision. I was talking with a woman recently that had deposited some money out, not through me. She was trying to get her money out of an annuity. She didn’t realize what she had signed up for was an immediate annuity. So I don’t know if it wasn’t explained or the person didn’t read the contract or all of the provisions that went along with it, but there’s a lot of details with annuities and you have to make sure that you ask a lot of questions and that you are informed.

There are some other people on other radio shows that poo poo annuities and say, oh, you should never go into something like this. I’m not a fan of anybody painting any type of investment or insurance product with a broad brush. Annuities can be a wonderful asset for people accumulating money on a tax deferred basis. I know for some factions of our country right now is a bad thing to do. You shouldn’t be able to accumulate money and not pay taxes and then years later take the money out. Oftentimes if you do that, you put a lump sum in and then maybe 10, 15 years later you want to start taking some money out. Only part of it is going to be taxable because part of it will be considered return of principle and part of it will be considered earnings. So you’re not going to be paying taxes potentially on a hundred percent of what you take out when people are shopping long-term care.

There’s often annuity features associated with long-term care as a way to maybe access some of the dollars. If your health is much better than you ever expected it to be, you could have the protection of knowing that there’s going to be long-term care insurance, but also access to the cash through withdrawals from a fixed portion that is like a deferred annuity. So there’s a lot of different iterations that fall under the umbrella of what an annuity is. You have to ask a lot of questions. You have to be informed and you have to know what you’re signing up for.

Speaker 4 (08:41):
Yeah, the key is if you’ve chances you’ve gone to one of these free lunch or dinner seminars, you want to stay away from those annuities because those are the ones that have the high commissions and the onerous surrender charges and you can’t get out of them even though they think you can get out of them, and those are the ones that stay away from because that’s how they pay for the dinners. So generally, if you’ve been enticed to buy an annuity through a dinner or a luncheon seminar, chances are it was probably not the best product on the market. And annuities, as Nancy said, are great tools if they’re used the right way, but unfortunately a lot of people think that annuity is the answer to everything and generally it is not. It can be used in the right circumstance, particularly if you have the right structure on it.

In fact, we have available to our clients an annuity rescue plan. If you have an old annuity out there that you bought and you’re not quite sure what it is or you want to get out of it, there are new products today that have no commissions, no loads, no sales charges that can oftentimes take that annuity without any taxation, put it onto a new platform with sometimes no surrender charges and give you a far better product than something that you might be stuck with that you don’t know anything about. So there’s all kinds of things with annuities, things that can work in client’s favor, but you have to understand what they are and as Nancy said, they are insurance contracts and as we’ve been down the path many times with legal issues, they’re written by lawyers and generally they’re there to certainly in to protect the insurance company and they are sold at these luncheon and dinner seminars with all kinds of glossy benefits to ’em. It’s the answer to your retirement dreams. The thing will do everything but wash your dishes. So my general rule of thumb is that I’m sure Nancy agrees to stay away from those products that are offered through the lunch and dinner seminars because that’s how they pay for that steak dinner folks. That’s what it’s all about. So that’s the topic for today there, Josh.

Speaker 3 (10:39):
Wonderful. If you got any questions on that topic annuity or Clint Eastwood, if you do in fact feel lucky. Am I getting my movies confused there? No, you’re doing okay. Okay, gotcha. I know he said I feel

Speaker 4 (10:50):
Yeah, the good, bad and the ugly. That was Clint Eastwood. Yeah.

Speaker 3 (10:53):
Is that the one where he said, do you feel lucky? Seven shots are six. No, that’s dirty hairy, isn’t it? I’m getting them mixed up. It is, but that’s okay. Same genre. I’ll get there. Same genre I’ll Whenever Clint Eastwood is scaring people, it’s a good day. If the finances are scaring you, your financial outlook is not as bright as you’d like it to be, then this is a great opportunity for you to call in and ask any questions of the experts here in studio Joe Bur Nancy Heck with the Certified Financial Group. The number to call is eight four four five eight zero nine three two six eight four four five eighty WDBO Texas at that same number, 8 4 4 5 8 0 9 3 2 6. Send in your open mic using the free WDBO app. Click up that app, hit the open mic button, give us your best 10 to 15 seconds. I’ll put you on the air as if you called right in. It’s very seamless. Again, 5 8 0 9 3 2 6. 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 live inside your very own WDBO app. This is your chance to call in and get any questions you may have answered by experts by certified financial planners with the certified Financial group sitting in studio today with Joe Burt and Nancy Hect with the certified Financial Group and they want to answer your questions. Call in five eight zero nine three two six eight four four five eighty. WDBO is also how you text in or send in your open mic inside the WDBO app straight into the phones, straight to Melbourne where Bob’s got a question. Go ahead Bob, you’re on the air.

Speaker 4 (12:41):
Morning Bob.

Speaker 5 (12:41):
Hi Bob.

Speaker 6 (12:42):
What’s up? Hi, thanks guys. Yeah, in 2023 I started receiving social security for the last three months of the year and it did cost me some taxes. So in 2024 I’ll be getting the full 12 months and so I’ll have a lot more income. And I wondered, as I understand the 10 40 instructions, if I make estimated tax payments for 2024 of at least the amount of tax I paid in 2023, there will not be a penalty. Do you agree with that?

Speaker 4 (13:14):
That’s correct,

Speaker 5 (13:15):
Yes. You have to pay as much if not more than the previous year and you’ll be cool with the IRS.

Speaker 6 (13:22):
So even though I will owe more taxes in 2024, as long as I make the estimated in the amount of 2023, I’m good.

Speaker 4 (13:31):
As long as you have paid in 100% of what your taxes were for 2023 for your 2024 taxes, you’re okay. Yes.

Speaker 6 (13:37):
Yeah, that’s what I plan to do. Okay. That’s it.

Speaker 4 (13:39):
Thank you. Alright, Bob. Thank you.

Speaker 5 (13:41):
Just finished my taxes.

Speaker 4 (13:44):
Yeah, that’s a wonderful thing. Well, fortunately we have the income to pay the taxes. I just wish it was simpler. Easier. Yeah. Anyway, that’s our story here on taxes. Moving on. I see we’ve got another call

Speaker 3 (13:57):
There. It is that time of year. This time of year, everyone’s got a story on taxes, so it’s good to always share what you got, any experience you may have learned. And you guys at the certified financial group have all the experience inside that building. 8 4 4 5 8 0 9 3 2 6 is the number to call. George is calling in. Hey George, how are you doing today? Good

Speaker 4 (14:15):
Morning, George.

Speaker 7 (14:15):
Good, good morning. How are you? All

Speaker 4 (14:18):
Good. What’s up?

Speaker 7 (14:19):
Well, this is for Nancy. Nancy, I want to thank you because you helped my son in Colorado and I had him call you. Do you remember

Speaker 5 (14:29):
That? Yes, I do.

Speaker 7 (14:31):

Speaker 5 (14:31):
It was a pleasure speaking with him.

Speaker 7 (14:34):
Yeah. Can I say something on the lighter side?

Speaker 5 (14:38):

Speaker 4 (14:42):
George, you there?

Speaker 5 (14:43):
We lost you. George, what’s your lighter comment? Well,

Speaker 4 (14:45):
I guess George is gone. Hello? Nope. You there, George?

Speaker 7 (14:49):
Okay, are you back? We back? Yeah. Yep. You know the cuckoo clocks on the wall? Yep. Did you all know that there was a real bird called a cuckoo bird? Yes I did. Oh, you did know that, okay. Yeah, I didn’t know that.

Speaker 4 (15:08):
I know. No you don’t. Yeah,

Speaker 7 (15:11):
They showed them. That’s pretty funny. Yeah,

Speaker 4 (15:14):
Something not on the lighter side, but something I learned last night. In fact, he may be listening. A friend of mine who lives up here in this neck of the woods, we were sitting around yesterday talking about things and did you ever notice that when an ambulance goes to a residence or an apartment for an emergency kind of thing, there’s always a firetruck behind them or with them? Yeah. Did you notice that? I did you know why that is? No, I didn’t know this until last night. So George is talking about cuckoo. We’re a little cuckoo here. It’s because they presume that the injured ill person or injured person may be too heavy for two people to pick up. So they send along support. Also, it allows them to bill for the service and therein is part of the problem in our medical system. So thank you Jean for that update. If you’re listening, I knew I wanted to pass that on for you this morning, but that’s what that’s all about. I see we have another call coming in that Josh is teeing up and we can take it as soon as he’s done doing it. Let’s see what it’s see there. Receiving social security and monthly pension. Go ahead. Yep.

Speaker 3 (16:23):
Bob’s got a question calling in from Winter Garden and if you have a question as well, you can call in. We are coming up against the break though, so we’re going to grab some news first and I’ll finish talking to Bob to get his question teed up for the start of the next break. If you’ve got a question of your own call 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO text the question, send in your question via an open mic, using that free WDBO as we let the eagles carry us into the news you are listening to on the Money where we’re planning tomorrow today with the Certified Financial Group.

Speaker 2 (16:56):
Welcome back to On the Money Central. Florida’s most listened to financial call and show Bron to 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 and enjoy the rest of the show.

Speaker 3 (17:56):
Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming live inside your WDBO app. This is your chance to get any questions answered you may have about your financial future or how to plan your next generation’s financial future or whatever you got going on. You heard it in the news, you read it in the trades, you saw it on the tv. We got Joe Burt and Nancy Hecht with the Certified Financial Group. In answering your questions, pick up the phone five eight zero nine three two six eight four four five eighty WDBO send in your text questions. So that same number, just go ahead and save this number in your phone as WDBO, so you can call it every Saturday morning and talk to the certified financial group. Text us at 5 8 0 9 3 2 6. Send in your open mic using the free WDBO app and one more opportunity we have for you to take advantage of these services of Certified Financial Group. If you’re listening and you want to get right to the office if you want to start working with them today or maybe you got more of a personal question, we do have Charles Curry standing by to answer your calls off the air at 8 6 9 9 8 0 0 4 0 7 8 69 9 8 0 0. Bob is calling in right now, Bob from Winter Gardens and Bob’s got a question about how to plan for retirement. Go ahead Bob, you’re on the air.

Speaker 4 (19:28):
Good morning

Speaker 5 (19:28):
Bob. Hi Bob. What’s

Speaker 4 (19:30):

Speaker 8 (19:31):
Yes, thank you. The question I have is I’m 72, I’m drawing social security next year I’ll beginning, I’ll be forced to start withdrawing out my regular IRA. I’m getting a pension monthly check from my utility company and the question I have is can I direct deposit that into a Roth IRA account since I don’t really need the money? And the second question is can I deposit the gross amount and pay taxes quarterly on it?

Speaker 5 (20:09):
Aside from these forms of income that you’re receiving, do you have any earned income?

Speaker 4 (20:16):
Are you working?

Speaker 8 (20:17):
No, I’m not working.

Speaker 5 (20:19):
So sadly the answer is no. You can deposit to a Roth or traditional if you have earnings,

Speaker 4 (20:27):
You have to have earned income W2 income or 10 99 if you’re self-employed. But pension and social security, although earnings, they do not count as earned income. And unfortunately you can’t put money into a Roth or a deductible IRA or even a non-deductible IRA.

Speaker 5 (20:43):
Do you have a spouse or a domestic partner that’s earning income?

Speaker 8 (20:51):
No, I don’t. But it’s kind of odd that I can take money out of a regular IRA account and roll it into a Roth. Correct. But I find it’s kind odd that I can’t take the pension and put it into a Roth IRA account.

Speaker 5 (21:10):
Well, I mean what you’re talking about first is converting the tax deferred dollars to the tax free dollars and then paying taxes on it by moving from the traditional to the Roth. But yeah, unfortunately those types of retirement savings accounts are for depositing earnings into and not retirement pensions and incomes like

Speaker 4 (21:32):
Your creative thinking Bob. But unfortunately the answer is no.

Speaker 8 (21:36):
Thank you. Appreciate

Speaker 4 (21:37):
It. Alright, you’re welcome. Sorry. You’re welcome.

Speaker 5 (21:39):
It would be nice if you could do that.

Speaker 4 (21:42):
Yeah, but you can’t. You got to have to have earned income. So I see we’ve got some text questions floating in there, Josh.

Speaker 3 (21:47):
That’s right. If you want to text us, go ahead and text us at 4 5 8 0 9 3 2 6. Give me your name, your city and I’ll go ahead and put you on the air like this gentleman. Alright, this one you had a question? Let me find it right now. Okay, we had a question regarding living trust. There’s two options, a revocable and a non revocable and we’re wondering which one is the best option. Thank you for your input. Thank you for your question.

Speaker 4 (22:13):
Well, non revocable is not a living trust. You have revocable and irrevocable trusts and a revocable trust is generally known as a living trust. An irrevocable trust is not a living trust with a living trust or revocable trust. You can put the money in, take the money out, you can control it. You haven’t given anything away as the word implies. If it’s irrevocable it means you put the money in there. You can designate where it goes, what happens to it, but you can never withdraw it and because it’s irrevocable. So you need to understand the distinction. There is no such thing as a irrevocable living trust, right Nancy?

Speaker 5 (22:50):
Correct, yes. Do you want control or do you not want control? Right. That’s the question you have to ask.

Speaker 4 (22:57):
And the irrevocable living trust. There I go. I said it. An irrevocable trust is usually used in estate planning, which means you want to reduce your estate, you want to get it out of your estate, you want to minimize the ultimate tax burden on that. Most people don’t use it. Some people use that in some of their Medicaid planning. You need to see a Medicaid qualified attorney to have that done. But there is a difference between a revocable and irrevocable trust and hopefully I explain those to you

Speaker 5 (23:26):
And I’ve done a couple where people want to have money going to specific charities but still try and get an income off of it over their lifetime.

Speaker 4 (23:37):
Right. That’s a charitable remainder trust, which you put the money in, you can draw an income from it for your lifetime, your spouse’s lifetime, and when you pass on the remainder of that asset goes to the charity, you get a tax deduction today for a certain portion of that depending on your age and what interest rates are and so forth. But anyway, those are creative planning tools that we don’t do. We’re not attorneys, but we do work with attorneys that are very familiar in those areas. So we got another, the text question there Josh.

Speaker 3 (24:05):
You got it. We got Charles Kir standing by off the air as well with the certified financial group. Go ahead and call them eight six nine nine eight zero zero. You want to talk to Joe or Nancy Hect, certified financial planners with the certified financial group. Well they’re live on the air right now, 8 4 4 5 8 0 9 3 2 6. This question comes to us from Lauren and Castleberry and Lauren just read that 401k pre-tax deposits may go away and Lauren wants to know if this is true.

Speaker 5 (24:34):
This really aggravates me. So yes, there’s been a lot in the national papers about this proposal right now the attitude is that allowing people to shelter their retirement money from taxes is a policy that largely favors the well healed and that instead of having money allowing us to defer as much as we legally can right now into various different retirement programs, those dollars could be better used to maybe shore up the Social Security Trust fund.

Speaker 4 (25:14):
Oh really?

Speaker 5 (25:16):
So yeah,

Speaker 4 (25:18):
There’s all kinds of schemes out

Speaker 5 (25:19):
There. The people that are complaining about this right now are saying that 200 billion a year is lost in taxes because people are saving for their own retirement.

Speaker 4 (25:29):
So we’ll give it to the government and they can figure out what to

Speaker 5 (25:31):
Do with it. And I would think that if social security was used for what social security was supposed to be used for, then the trust fund could last a little bit longer. I still find it surprising that if you defer, everybody’s given an 8% bump in what their payments would be. I think if that’s cut down to five or 6%, that could make the trust fund go a lot further also. So trying to take money away from people’s savings so they can be self-sufficient in their retirement. The fund social security does not really sit well with me.

Speaker 4 (26:15):
Take away the responsibilities of the individual, let’s give it to the government and we will take care of you. And it really gets back to what we’ve been saying for years. This has the whiff of then now looking at all those Roth accounts as we’ve been saying, that all that money that’s accumulating in those Roth accounts tax free, the day of reckoning may be coming where they won’t tax you of course on the money that you put in, you pay taxes on, but that tax free accumulation may be subject to means testing. So keep your eyes and ears open folks. The rules change. Be careful how you vote because every time Congress is in session, your money is in jeopardy and you want to be an advised or knowledgeable investor and knowledgeable voter.

Speaker 5 (26:54):
Alright. And you know what the main reason for looking at changing the Roth was don’t you?

Speaker 4 (27:01):
You’re changing the Roth to what? Yeah,

Speaker 5 (27:03):
Well again means testing because unquote from our president it’s not fair.

Speaker 4 (27:10):
Oh, it’s not fair. That’s right. It’s

Speaker 5 (27:11):
Not fair that people accumulating got to spread so much money on a tax basis. Got

Speaker 4 (27:14):
To spread it around. Got it, got it. Alright, got another text question there Josh. Take it away buddy.

Speaker 3 (27:17):
You got it. You always hear that it’s not your father’s Roth IRA anymore. It could change at any time and that’s the benefit of using these experts that we have at our disposal. Not at our disposal, but at our benefit on Saturday mornings, 8 4 4 5 8 0 9 3 2 6. Talk to Joe, talk to Nancy with this certified financial group. Live on the air now 8 4 4 5 89 3 2 6. Daryl in New Smyrna wants to know what is the standard deduction for this year? It is tax season after all,

Speaker 5 (27:48):
Right? Yes. So for people who cannot itemize, if you are single, the standard deduction is 13,850, but if you’re over age 50, you get an extra $1,850 added to that. If you’re married filing joint, then the standard deduction for those under 50 is $27,700. For over 50 it’s an additional $5,000. So this standard deduction of course is you add up all your different forms of income and if you cannot itemize then these figures I just stated are deducted from your gross income and then you get the net taxable income from there. So there

Speaker 4 (28:32):
You go. Alright.

Speaker 5 (28:35):
So it’s a little gift from our governments

Speaker 4 (28:37):
And they’re talking about changing the whole thing in 2026 and getting away the large standard deduction and going back to itemize, who knows what the world will be, but if you stay tuned here to on the money on Saturday mornings, we will tell you what’s going on here in the

Speaker 5 (28:50):
Moment anyways, in the moment I think when I’m doing retirement cashflow plans with my clients and we’re talking about the tax picture, I always say to them that this is the biggest unknown that I have to deal with right now because depending on who’s in office and what the attitude is, taxes are the biggest variable when it comes to somebody’s retirement.

Speaker 4 (29:14):
Yep. Yep. Alright, got another text question there Josh. I

Speaker 3 (29:17):
Do 8 4 4 5 8 0 9 3 2 6. Send them on in. Michael in Bitler wants to know should I pay off my house before I retire?

Speaker 5 (29:26):
So a lot of people that I meet with want to be as debt-free as possible going into retirement. And I think paying off a house is really a personal preference. If you happen to have an old mortgage and your interest rate is in the 3% range, some of ’em are less than that then in today’s world that’s really cheap money and a lot is dependent on what kind of cashflow you’ll have in retirement, what type of pension, what will social security pay you, what type of money have you accumulated in your various different retirement accounts to fund your lifestyle in retirement would determine whether you should pay it off or not. Now I think if somebody is looking at potentially taking a chunk of money out of their retirement account and paying taxes on it to pay off a mortgage, that’s not the best idea in my book. But I think it really boils down to personal preference. What is going to make you feel comfortable in your retirement. So

Speaker 4 (30:35):
Yeah, it’s a lot of folks rush to pay off their houses and that’s okay, but if you’re using your available cash to pay off the house and then you get in a point that you don’t no longer have cash, then you’ve got some difficulties. And when you think about it, when you get down to the last years of paying off that mortgage, you’re really paying mostly principal. So you’re not saving that much at all on interest. And every situation is unique and that’s what planning does. And this is what we look at with our clients when we’re doing financial planning, retirement planning, does it make sense to pay off your mortgage now or does it make sense to do that? And now you plan on really living in that place forever. Your chances are that it’s probably not going to be your final home. Your final home may be assisted living, heaven forbid. And then you have to figure out how to do that. So that’s what financial planning is all about and that’s what we do as certified financial planners.

Speaker 3 (31:27):
Thank you so much Joe. Nancy, if you want to get your text questions in and we just had two roll in the last couple of seconds, so we got those questions coming up after the break. If you want to join Will and Joanne, the number to text is 5 8 0 9 3 2 6 8 4 4 5 80 WDBO you are listening to on the Money where we’re planning tomorrow

Speaker 4 (31:46):
Today with

Speaker 3 (31:46):
The Certified Financial Group.

Welcome back to our final segment of On the Money here on WDBO. If you are listening and you don’t have time to call in the next five minutes, but you still want that juicy, juicy knowledge from the Certified Financial group because they’re such a useful, such an important show here on WDBO. We do have Charles Curry standing by for a few minutes off the air after the show wraps up. Go ahead and write this number down. 4 0 7 8 6 9 9 8 0 0 4 0 7 8 6 9 98 800 Charles Curry of the Certified Financial Group. Variety is standing by to answer your calls or you can text in 5 8 0 9 3 2 6. Let’s see what Joanne from Whitters Springs just sent in during that last break. Joanne wants to know your thoughts about annuity from an American equity.

Speaker 5 (32:45):
Well, Joanne, without looking at what the annuity contract says, it’s a little bit hard to say. I would be happy to take a look at it and spell out in plain English to you exactly what you have in the contract. There’s so many different iterations of annuities right now. I mean, just knowing the name of the company that’s issuing it doesn’t give us enough information to give an opinion. So feel free to call or email me n dot hector financial and I can send you a secure link. You could send me some information about the annuity or feel free to bring it in for me to take a look and explain to you exactly what you have. And if I could take a moment and correct an error I made when I was talking about the deductions, I guess because I’m in 65 denial, I said that the bonuses for deductions were at age 50. They’re actually for the people 65 or older and a couple other things if you’re blind. So

Speaker 4 (33:51):
Whatever. Alright, I’m looking at the annuity. It’s one of those things that you can’t tell the book by its cover because it’s really what’s inside that contract. You can’t tell by the insurance company doesn’t make it good or bad, it’s really what you bought and what that insurance company offered you in that contract. So take advantage of that offer that Nancy made to you and should be glad to do it for you. And you got another text question there, Josh. We

Speaker 3 (34:13):
Do will in Orlando wants to know Will’s accountant wants to set up an IRA through his business and he wants to know what is the difference between a traditional IRA and a simple IRA.

Speaker 4 (34:23):
Well, the traditional IRA you set up on your own, it’s in your name as an individual retirement account, whereas a simple you can set up through your business. And the big distinction is, is that you can put in almost $16,000 into the IRA through your business. So your employer needs to sit down and crunch the numbers for you. And did I say your employer, your CPA? Your C-P-A-C-P-A needs to do that for

Speaker 5 (34:49):
You as simple as one type of IRA and then there’s a SEP IRA, which also allows for a lot more than the traditional IRA contribution. So depending on if this person has employees or not, we’ll determine what might be the best retirement account for him to set up for himself that would allow him to put aside the most deductible dollars.

Speaker 4 (35:14):
Yeah, and if you’re a one man show or you and your spouse, you can set up what’s called a Uni k, which allows you to put in even more money into a retirement plan. So talk to your CPA about that. So there’s all kinds of options or you can give us a call is what we do. We’re working with our clients and getting them the best tax benefits that they can through their company. It’s what we do. And once again, we’ll let our listeners know that Curry is taking calls off the air at 4 0 7 8 6 9 9 800 and we have a workshop coming up, right Nancy? A week from Wednesday. A week from

Speaker 5 (35:45):
Wednesday. Yeah, I just wanted to say the Uni K is also known as sometimes as a solo 401k, so it’s a little bit easier for people to think about. But first of all, we have our annual shred event on April 20th here in our offices from nine until noon. You can bring two boxes of stuff to shred

Speaker 4 (36:05):
Two banker’s boxes,

Speaker 5 (36:05):
Banker’s boxes,

Speaker 4 (36:06):
Not refrigerator, box,

Speaker 5 (36:07):
And watch it and get shredded. We have Charles Curry hosting Social Security Planning Basics Rules and Claiming Strategies on Wednesday, April 3rd from six 30 to eight, and how tax planning changes through four stages of retirement hosted by Matt Murphy on Saturday, April 13th from 10 30 to 1130. If you go to our website financial, there is a workshop tab that you could pull down and make a reservation and I highly recommend that you make a reservation because these workshops fill up really fast.

Speaker 4 (36:43):
Yeah, Gary’s doing one this morning and he’s got almost standing room only. But these workshops are absolutely free. The one coming up a week from Wednesday is your social security options. As we say, time and again, social Security will tell you what your options are, but they will not tell you what the best option is for you and your family. And Charles will be coming that in detail. Should you take this survivor option, widow option, should I continue to work? What’s the penalties if I continue to work? All that stuff that you have to consider and you do not get a do over. So come to that workshop. It’s a week from Wednesday at six 30 here in our office in Altamont Springs Financial is where you can make a reservation. That’s financial

Speaker 3 (37:19):
Thank you so much Joe Bur Nancy Heck with the Certified Financial Group. You the listener, have just listened to on the Money where we’re planning tomorrow today with the Certified Financial Group.


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