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Revisiting the Benefits of Tax Deferred Savings | TRANSCRIPT

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Stay tuned for on the Money Central Florida’s most listened to financial call and show Bronte You by Certified Financial Group in Almont 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 show.

Hello and

Welcome to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming live.

Excuse me, inside your very own WDBO app, 1 0 7 3 FM AM five 80. Open up your app, push play wherever you are, wherever you got some of that juicy internet, you can take your favorite financial show with you on the go. This is on the money brought to you by the certified financial group with over 40 years of being. No, it’s 400 years of being on the air. My goodness, I cut you down by tenfold there nearly 40 years being on the air, answering your questions. This is one of the only the financial shows of its kind in the country, the only one in the state. Answering your questions live on the air right now. We have Rodney Ombi and Joe Bird with a certified financial group. Maybe you heard something from a friend, something from a family member and you want to just run it by the experts. That’s what this whole show is. Joe Rodney, how are we doing today? We are here

Doing great. Thanks for the intro there, Josh. As you said, we’ve been here now I’m going to knock this microphone number before the morning’s over. I keep banging it. We are here to take questions that might be on your mind, things that you may have heard about, things you’re kind of questioning. As you said in the intro, we work with our clients. Maybe you didn’t say this but I will say it. We work with our clients Monday through Friday, Rodney and I and the 14 other certified financial planner professionals providing retirement planning and investment management for a fee working with two national custodians that would be Fidelity and Charles Schwab. We work with those folks and we are here this morning for you absolutely free. So if you have any questions that you’d like answered or if you want to text us, you can do that as well.

This is live radio this morning here on Saturday. If you’re happening to listen to us on Sunday mornings or early Saturday on seven, it is recorded and we’re proud to do that as well because people ask can we get the show a little bit earlier? So we’re glad to do that as well. So anyway, Rodney and I are here to take your questions and the good news for you is that the lines are absolutely wide open. Rodney, as you may know if you’re a regular listener, in addition to being a certified financial planner, is also a world renowned CPA and we’re delighted to have him on our staff working with our clients, providing tax advising and helping us with those difficult tax questions. So we’re here to help you this morning as we have been now for over 40 years with WDBO and proud to do it. This morning’s topic is, I’ll let you get that call. You want to get that call Josh, I see it coming in. You want to coordinate this? What do you want to do here?

Yep, I’ll get this call right off the air if you want to join the conversation. The number to call is eight four four five eight zero nine three two six eight four four five eighty WDBO Send in your question using the open mic feature inside the WDBO app or you can now text us, show your question. That’s the same number as the call in. So go ahead and save it in your phone as WDBO (844) 580-9326. Call us, text us, get your questions in while we got the experts on the air. Those experts are Rodney Oby and Joe Bur with the certified financial group. And today’s topic is revisiting the benefits of tax deferred savings.

Yeah, we talked about this a few weeks ago and Rodney was on the air. We’re talking about how the dynamics of not paying taxes on your earnings while it’s compounding.

Compounding Exactly.

That’s compounding interest on a tax deferred or maybe a tax free basis and you don’t have to scrape off 10, 12, 22, 30 7% of your earnings off every year. You got more in the pot to grow. So how does

That work? Right, exactly. And we’ll call this part two in the series part two because you had asked for additional information there we

Are. You aim to please.

We went back and crunched the numbers. Okay, so just to refresh everybody’s memory, the example we were dealing with was two different individuals each with a salary of a hundred thousand a year. Okay. Each saving 11%, one doing it on a tax deferred basis and the other doing it after tax.

So we’re putting 11 grand a year into our 401k or 4 0 3 B or 4 57, something like that. Exactly.

Got it. Okay. And something to keep in mind, we kept this salary constant over a 10 year period.

So this guy didn’t get any raise for 10 years but okay, got

It. So the numbers are probably in reality only better than what we’ve looked at. But if we just look at that comparison over the 10 year period, which is what we did back in January over a 10 year period and we assumed a 6% return on the after tax because it was a mixture of stocks and bonds and we looked for the best five year CD rate for comparison purposes. Got it. For the after tax scenario and that was 5.0, I’m sorry, 4.3%.

Okay, so let’s what we came up with, all right, let me recast this. So this guy’s making a hundred grand a year. He’s putting 11 grand a year into his retirement plan and then we took two portfolios, one which is tax deferred, which would be his retirement plan, which is a mix of stock mutual funds and bond mutual funds. Correct. What we call a moderate portfolio. Exactly. And the other one is just dumping into the cd. I don’t want to take any risk, I don’t want to be in the market, I just want to put it in the bank and know it’s there.


Okay, so we have two

Accounts, right, with CD rates better than they’ve been in probably what, 10 years? Yeah, so pretty good, right? Decent returns. And keep in mind there are two components here. Got it. There’s the savings component and then there’s the increase in discretionary income because you you’re saving


Exactly. So you get a slight bump there as well. Exactly right. So we do that comparison over a 10 year period and the after tax scenario yields an additional $68,000 in savings

Over this. So in my retirement plan, I’d have $68,000 more than the money would be sitting in the retirement account. However, if we let time go on, what happens?

So if we extrapolate this out over a 25 year period, oh, one more thing. We’re 22% tax bracket on this. Got it. We’re consistent with the income levels that we’ve built into this example. So what do you think? You want to take a stab or you want me to just

No, lemme take a stab. So how much better is the tax deferred account versus the taxable account over 25 years?

Yes. This is inclusive of the discretionary income bump that you get and the compounding growth of the pre-tax savings. Well, it’s

Got to be substantial. The difference you’re talking about.

Right? So with the $68,000 difference over a 10 year period, this compounding effect over an additional 15 years. Okay, tell us what do you think you get? Tell us over half a million dollars. Whoa is the difference? Whoa. Which is what you were driving at and the point that you made back in January when we originally spoke about this topic. Significant

And see we this time and time again, unfortunately they don’t teach you this stuff in school. They don’t teach you the value, the time value of money getting started earlier. Don’t touch it, let it compound and grow and hopefully grow within a retirement account. You’re not paying taxes. Exactly. So the difference is, okay, so now in my retirement account 20 years later to start at 50 and 8 65, I have half a million dollars more than I would’ve had in that guaranteed CD sitting there. Now people come along and say, well yeah, but I don’t have to pay taxes on that extra half a million dollars, so I’d rather have a half a million dollars more and pay some taxes out of the rest of my life a little bit every year. Let that mean the other thing in the retirement account, you don’t have to cash it out so at 65 you can let it grow and grow and grow and grow and then when you 73, then you have to start peeling it

Off. Well and you get another 10 years of compounding right before and this is just the difference. This is the total savings.

Exactly. So tell us difference in the two accounts. Did you calculate that?

Oh, in the actual dollar amount? Yeah, what

Would I have in the two accounts? So if I was putting my money in my 11% for 25 years in my retirement account and my 11% in my CD account, what would the two accounts be at the end of 25 years?

So that would be the total would be, bear with me just a second. Bear

With you. You’re doing this on the fly now. I know you’re CPA. Yeah, go ahead.

So about 900,000 versus 400,000. Oh there you


So for the five, the half a million dollars, there you go. Substantial. Yeah. And then keep in mind you said this goes to age 65, you have an additional 10 years of compounded growth before the government forces you to take that money out. Got it. This is significant. And think about it in this comparison, we’re looking at CD interest rates that are better than they’ve been in years. So this is a sort of an optimal case for that after tax.

So the lesson for the morning is if you have access, well, even if you don’t have access to retirement account where you work, at least you can put it into an I A an I A. Exactly. Do an IRA. Exactly. So this is the benefit that at least under current tax law, we have the benefit of getting a tax deduction when you put the money in. And the thing is, if you put the money in, I’ve said this before, but maybe some of our listeners don’t remember or never heard it, you put the money in, let’s say you put the dollar in 22% tax bracket, it really only costs you 78 cents because you’re getting a tax deduction.

Exactly. However, immediately. Yeah.

However, if you try to put a dollar into your savings account outside of your retirement account in a 22% tax bracket, the math is you’ve got to earn a dollar and 28 cents. So take a buck 28, take 22% off of that to end up with the dollar that you’re going to put in the retirement and equal that. Yes, exactly. So retirement plans are so important to use and unfortunately that people don’t, I mean they don’t teach you the stuff in school and the kids don’t understand it. However, our listeners are astute, they’re in tune. They tune in every morning to get this information and that’s why we are here. Alright, enough of that. You want to say anything else on that? I said we’ve got a caller here.

No, let’s take the call. Take call. There’s a couple more things we can talk about later.

Alright, well we don’t want to keep our caller waiting. Good morning caller. Hello Vicki, you’re on the air. Good morning Vicky.

Hi Vicky.

Morning. How are you?

Good. What’s

Up? I have a 4 0 3 B and a 4 57 B and they were getting, or they could go up to 4%, but I talked to my financial person and he said that they had a new program that can go up to 11% and so I’m going to start paying into that program and what we’re going to be doing is taking 10%, I can’t remember a month or a year and having the 4 0 3 and the 4 57 money get taxed and then put it into the 11% thing and I don’t actually understand what the 4% is in the 11% and I don’t know if that was a good decision.

I think we’re missing something here. I think probably what he’s suggesting is to take maybe the 4% that you’re putting in one of the accounts and maybe make that a Roth contribution. That sound familiar?


Okay, so that’s what he’s suggesting. So you’re paying taxes, you’re paying taxes on the money that you put in the Roth. You’re not getting a tax deduction with the idea that when you take it out it’ll be tax free and then the other 11%, let’s say that’s what he suggested, the 11% go in the pre-tax, you get a tax deduction for that and when you take it out that will be taxable. So I’m not quite sure what he’s talking about. When you take it, you understand that

It sounds like what happened, one of these plans now has a Roth component and she was doing a total of 15% and they’ve split the four and the 11 to get that 15%, but he’s suggesting that one piece of it be after tax in a Roth. Yes, that’s what it sounds like. That’s what

It sounds like to me. So that may make sense for you. The key is I would want to know your tax bracket. Are you married?


Okay. And your husband working outside the home?


Okay. Okay. Well if your combined incomes are over a taxable income, married filing jointly is about over $89,000 or so. You’d be in the 22% tax bracket if you’re in that high tax bracket. I don’t like doing Roths because you’re giving up, like I said, you got to earn 28 cents to put in a dollar afterwards and a dollar 28 put in a dollar and then there’s no guarantee once again that that Roth will always be tax free. The earnings will always be tax free because the government is always doing crazy stuff trying to get into our pocket books. So if you are in the 22% tax bracket, I would put all of it in pre-tax, get that tax deduction today and don’t wait for a promise tomorrow that your Roth will be tax free. You’re not giving up much if you’re in the 10 or 12% tax bracket. Does that make sense?

I think so. So taking the money out of those 4 0 3 and the 4 57 and putting it into the other account?

No, no. You’re keeping and

Having it tax?

No, you’re keeping both accounts. I don’t want you cashing in any accounts because that’s a tax consequence. I want you to continue putting money in the pre-tax accounts 4 0 3 B 4 57 for both plans. For both plans if you are in fact in the 22% tax bracket. If you are below that, I have no problem putting 4% in the Roth.

Yeah, we’re in 22.

Okay. I would do pre-tax

And my husband works overseas.

Oh, okay. Oh gotcha, gotcha. We’re talking about the not putting money in the Roth and so on and so forth. I’ve mentioned this to our listeners in the past. I did a piece for Kiplinger some time ago, I still think it’s valid. Go to Roth, a wolf in sheep’s clothing, Roth a wolf in sheep’s clothing and it’ll tell you our reservations about using a Roth if you’re in a higher tax bracket.


Alright Vicki, I appreciate the call.


Vicki. Thank you so much. Vicki. If that maybe jogged a question in your mind or if you had something pop up or you just had a question that you’ve been waiting all week to talk to the certified financial group with, I want you to pick up the phone and dial eight four four five eight zero nine three two six eight four four five eighty WDBO. You can also text in your question to that very same number 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 WDBO app. My name is Josh McCarthy. Joined today with Rodney Obe and Joe Bird with the Certified Financial Group. This is a live call in financial questionnaire program. We got people here who have the answers to the questions that everybody has. So pick up the phone right now, dial eight four four five eight zero nine three two six eight four four five eighty WDBO texting your question as well. Or you can call Charles Curry standing by in the office off the air at 8 6 9 9 8 0 0 and you want to have that number down one. That’s the number you can call Monday through Friday, but two, it’s the number you can call for off air questions live or during the show while the show is live in case you want to give out some personal information or you’re a little nervous to go on the air. That’s what Charles Curdy is doing now off the air 4 0 7 8 6 9 9 8 0 0. Rodney, Joe, how are we doing so far?

We’re doing good. Rodney, want to make one more point on the tax deferred account.

We mentioned this earlier, but it’s probably worth mentioning again, just to put a bow on this topic. We didn’t assume any salary increase, which isn’t realistic. So if you defer, if you take those, say two 3% salary increases every year and you defer that over this 25 year period, what do you think you’re looking at? Probably an additional a hundred thousand over and above the 500 easily, right? Easy. Yes. Maybe 200. Yes. So it just makes that tax deferred savings all that much more better as a result of the

Compounding. And we were talking at the break of our previous caller, Vicky had a 4 0 3 B and a 4 57 plan and we were talking about how much they can put in that. And Rodney reminded me and enlightened me once again as he does so often because he’s a CPA and I’m not, is that Vicky has the opportunity to put in max out both plans.

Both of those plans. Both

Plans. So if she’s over 50, she can put in over $73,000 pre-tax into the That’s ridiculous. Ridiculous. That’s great.

That’s wonderful. Yeah,

It’s wonderful. So folks that have that kind of circumstance, give her office a call on Monday, we’ll be glad to walk you through it, but there are opportunities out there that the government gives you and if you don’t know about it, the years go by, you don’t take advantage of them and all of a sudden you wake up and say, geez, I wish I’d have known about that. So that’s why you’re tuning in here on Saturday morning with Rodney and me and I hear the music Josh, so take it away buddy.

That’s good. It’s always nice when one of those two good to be true things ends up being true. So some of those things sometimes a lot of people call and say, Joe, I heard from a friend that I can do this and you got to say, ah, I’m sorry that friend is either misinformed or trying to pull one over on you. That is too good to be true, but able to max out two different plans. That one is always good to find out that that’s capable and available to Vicky who called just a few minutes ago. If you want to join the conversation, 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO or text us. We just had a text come in from Philadelphia, so we’ll get to that here after this break. You can text us at same number 8 4 4 5 8 0 9 3 2 6. Send us an 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 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 p, 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 8 4 4 5 80 WDBO, that’s 8 4 4 5 80 WDBO and enjoy the rest of the show.

Welcome back to On the Money right here on WDBO 1 0 7 3 FM five 80, always streaming live inside your WDBO app. If you find yourself inside that app and you’re listening to on the Money as you do every Saturday morning at nine live on the show, your financial chance to get some financial answers, go ahead and click the open mic button, send in your question and we’ll play it back. For these guys live on the air for the listeners of the surrounding area who all might have a similar question or might pop in their head to jog a new question. And if you’re listening now live and you want to call in, the number to call is five eight zero nine three two six eight four four five eighty WDBO. Text us in that very same number to get your question read on the air by me. I’ll do my best impression of you, but I’m not sure I can ask. As eloquently as you may have inside the text message, we have Rodney Obe and Joe Bird standing by with the certified financial Group answering your questions live on the air. What do you say we take? Go back to work guys. Let’s do it. We got Keith calling in from Lake County. Go ahead Keith. You’re live on Good morning, Keith. Hey Keith.

Hi. Morning guys. What’s up? Hey, I got a follow up question from last year. Okay. I have an arm adjustable rate mortgage on my home. It’s now coming up on the seventh year, so it’s already went up from the original interest rate of 3.75, actually 3.375 last year. It went up to six and you thought it was a good idea to stay with it to have a mortgage interest to deduct off the taxes, but this year, starting next month it’s going to go up another two points to 8% and the max the cap is 8.375% and so it’s near the maximum amount. Got it. And it’s more than double the original interest rate and I have some funds I can pay this off without having to dip into tax deferred savings.

Good, good. Okay, that was going to be my first question.

So it’s above the going fixed


Considerably now, right? Yeah.


That’d be more of like

Seven. So you’re thinking of paying off the mortgage or locking in a fixed rate at this point, which I probably would not do.

No, I wouldn’t want to do a fixed rate at this rate. Plus since I’ve retired early, I have no earned income, so to speak, of it’s difficult to get loan.

Got it, got it. Without really knowing your personal financial situation, I would say it’s a toss up, but based on generally what you said, it’d probably give you peace of mind to pay off the mortgage. However, we want to be sure that you’ve got liquidity and other resource sources. How old are you?

I am, well, I’ll be 62 soon. Okay,

So you’re still a young guy. What we want to look at is if you take your liquid money and how much are we talking about paying off the mortgage? If I can ask?

It’s about two hundred and forty five, two forty five.

What’s the house worth?

The house is worth about three quarter of million.


Are you going to deplete all your cash to do that key? Yeah,

No, it won’t deplete all of it.


Outside of your retirement, you won’t deplete at all. Right?

Okay. No. So you have any big expenses coming up?

I, no.

Okay. Alright.

Got a new roof of a house, there’s no plans on any big purchases.

Yep. Yep, yep, yep. I would probably be, based on what you just told me, I’d be inclined to do that, pay it off.

Okay. That’s kind what I was thinking. I just wanted to bounce it off your, I mean it’s changed from last year.

Sure, sure, sure. Yeah. My real concern is down the road, you’re still a young guy, you’ve got 30 years of life expectancy in front of you. You’re going to have expenses down the road, medical expenses, and you probably want to continue to travel and buy cars and you’re going to have to put a new roof on that house once or twice in the next 30 years. So you got to have liquidity, but you’re going to have a lot of equity in that house. There’s also the opportunity of a reverse mortgage if you plan on staying in that house for your lifetime. That’s also,

Well actually since you brought that up, since it’ll be 62, if I do pay it off, what I could do is get a reverse mortgage line of credit.

Oh perfect.

Not necessarily reverse mortgage, but a reverse line of credit. And then if I ever need to do

That, you could tap into that. The

Market goes crazy, then I can tap into that.

You must be a regular listener because that’s exactly where I was going. That’s what I’m

A regular listener and I have done my homework.

Good. Yeah, that’s definitely what I would do. Having that, everybody should consider this when you turn 62 as you were going to do, get yourself a reverse mortgage line of credit now it’s going to cost you a few bucks to set that up as you’ve probably done the research but you don’t use it. That money is there if and when you need it. And the beauty of it is the availability of it compounds. Have you seen an illustration on that, how that works?

It is been a while since I’ve seen it, but yes.

Yeah, I mean it’s a phenomenal tool. It is really a phenomenal tool. When you say reverse mortgage to people, they run out of the room with their hair on fire and say, Hey, I ain’t going to get anywhere near that. It is something to consider. It doesn’t work in all cases, but based on what you’re telling me my friend, you are on the right track.

Alright. I appreciate the help.

You are welcome and we appreciate the call.


You. You are welcome.

Take care bud. Thank you so much. If you want to join the conversation, the number to call is five eight zero nine three two six eight four four five eighty WDBO. Call us, text us. We got Joe Bird and Rodney OBE with the certified financial group. Got a couple of text questions that just rolled in. Joe, you want to hit those little bit? Let’s do it. All right. This one comes to us from Philadelphia. I’m assuming the city, not the name Philly. We’ll find out here in a minute. Okay. Where on our tax returns can we find what tax bracket we’re in? I file a 10 40 and a 1120 s corp

(27:35): We will show those tax tables.

There’s nowhere on your tax return does it tell you where doesn’t what you have to look at and you don’t look at your gross income, you don’t look at your adjusted gross income. You have to look at what’s called your taxable income. And that’s generally on the back page of your 10 40. And then you look at what your taxable income is and then go to the and see where your fall and that’ll tell you what tax bracket you’re in.

One of those things that’s out there for everyone to find. So that’s always a good thing.

That’d be a really helpful thing if the government put that. Of course, if it was on the return, it was on the return. It’s a gut space. I mean you could figure out

All those boxes.

Yeah, yeah. I think it’s a great idea.

I like that. We’ll talk to some people in the high up hours. Yeah. Alright. Another text question just came in 8 4 4 5 80 WDBO. This one says, hi, I’m age 76. How can I buy into an assisted living facility where they want a 350,000 buy-in and all my retirement money is in pre-tax IRA. Wouldn’t the three 50 be taxable income?

Yes, it would. Yeah. If you have to cash out to do that. Yeah, that is the challenge. Yeah, unfortunately. I dunno way around that. Yeah, unfortunately if all your money is in, you got to get the money out of there, pay the taxes on it to get to spend. You think of a way there. Do you get a break? You get somewhat of a break. You get a break, right? You get somewhat of a break. You’d have to crunch the numbers. I know you’re going to end up paying some taxes, maybe not taxes on the full three 50 that you’re going to take out. And maybe here’s what you may want to consider doing this. Take a little creative is to set, depending on what your overall income situation is, talk to the facility about doing some kind of installment deal where you spread the payment out over a number of years so you don’t get hit with a three 50 withdrawal in one year. Once. Now you can’t pledge the IRA, they won’t let you do that. The government won’t allow to use your IRA as collateral. But maybe there is some way that you can work out a deal where, and I understand your dilemma,

An installment, arrange the

Installment, yeah. Solve that. Yeah, I wish I had better news for you, but you’re going to have to pay at least some taxes to get that money out of that retirement account.

At least we have now time to plan for that and to do the best action according. That’s the beauty of working with Certified Financial Group is they have the answers for you for whatever question you may have. If not, they know somebody probably in the building who has the

Answer. We’re doing more and more of that planning Josh folks. They’re becoming very, very popular. In fact, we’re going to be doing our show live. I’m going to let the cat out of the bag here on May the fourth at the Village on the Green, which is a beautiful retirement community here in Seminole County and I know it intimately. And we’re going to be doing our show live there at nine o’clock on Saturday morning on May the fourth. But we’re doing more and more planning for people that want to, that recognize I no longer need this big house. I no longer want the aggravation of taking care of the pool and the yard and all the stuff that goes with it. I don’t want to have to worry about the next hurricane that blows in here. And I want to have peace of mind. And more and more people are using these kinds of facilities and we’re doing more and more planning of showing people how they can do this with the resources that they have and then have peace of mind for the rest of their lives. So if that kind of ring your bell there, give us a call. What we do for our clients, we do financial planning, retirement planning for a fee. Give us a call on Monday morning. We’d be glad to talk to you. You can find out more about Rodney and me and the 14 other certified financial You can also learn about the upcoming workshop. Rodney, what do we got going on here?

That’s right. We’ve got, so coming up this week actually Wednesday, Charles Curry is presenting social security planning basic rules and claiming strategies. That is from six 30 to 8:00 PM on Wednesday, April. It’s

Coming up this Wednesday. This Wednesday. Now this is critical because when people make their social security election, unless you’re careful, you may make the wrong decision at the wrong time. There’s so many different options. As I say in the ad, social security can tell you what your choices are, but they can’t tell you what’s best for you and your family. And that takes some analysis and understanding what the options are. So Charles is going to cover that in detail on Wednesday evening, right here at our offices in El Springs. Wednesday. Yeah, this Wednesday at six 30 and what’s the next one?

So two weeks from today, April 13th from 10 to 11:30 AM Matt Murphy is doing how tax planning changes through four stages of retirement.

Yeah, there you go. So when you’re working, when you’re early retirement, mid retirement, and when you pass on the four stages of retirement, what you need to know and what the tax planning is involved in, that once again is free at our office two weeks from today here in Altamont Springs. If you want more information about that, go to our website, that’s financial, financial, click on events and you can make your reservation right there. We hold these things in our state-of-the-art Learning Center. We can easily accommodate 30 people, provide you some refreshments, give you some good information. And people often ask, Joe, why do you do this? We do it for basically two reasons. Number one, to hopefully prevent you from becoming a financial casualty. And number two, to introduce to our firm. So if you need retirement planning or investment management now or sometime in the future, perhaps you’ll give us an opportunity to earn your business. So go to our website financial and learn all about, I hear the music. Josh, take it away.

You got an 8 4 4 5 8 0 9 3 2 6 is the number to call. If you want to get your question live on the air right now, 8 4 4 5 80 WDBO, send in your open mic using the free WDBO app. Send in your text using the phone that it’s probably not free, but for me it’s free. So just text it on in 8 4 4 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 inside your WDBO app show is coming to an end, but Charles Curry is still standing by off the air. To answer your questions live, go ahead and pick up that phone and dial eight six nine nine eight zero zero four oh seven eight six nine eight hundred. You can text in your question live to the show, 8 4 4 5 8 0 9 3 2 6. Sitting here with Rodney Oby and Joe Burt with the certified Financial group. And Bill texts us with a question Bill wants to know. It’s a simple question. He goes, what is spac?

Not spam? spac. spac.

SPAC. Right?

A C.

That’s what it is, Josh, right? Yep. It stands for Special Purpose Acquisition Company.

Yep, that’s

The one. So it’s a shell company that’s set up to facilitate an IPO, I guess is the best way.

Yeah. So let’s explain how that works.

So group of investors raise money and they affiliate with an investment bank like a Goldman Sachs, I guess would be a good Morgan Stanley to facilitate an initial public offering. So a public offering to purchase stock.

But it’s a shell.

It’s a shell company. There are no operations within that stack.

But the idea is is they’re listed.


They get listed. And then once you’re listed, then you can raise money on the outside stockholders. And somebody just recently did this,

Donald Trump. Donald Trump, I guess his affiliates did that, right? His son’s involved, I believe, and a few of other few people from his administration are on the board of that spac.

So what that allowed to happen is that his company, which is not publicly traded with the stock, you can’t, if it’s not publicly traded, there’s no liquidity. However, once it becomes a SPAC goes into the SPAC and the SPAC is publicly traded, then bingo, now you have liquidity.


That’s what, which is

Very important for him, I guess. Yes, at this point

In the game. That’s an understatement. That’s an understatement. Yes it is. But we’ll see how that all plays out. Boy. Oh boy. Oh boy. So that’s what a SPAC is.

Awesome. Well, he’s trying to access those funds, right? And they’re saying there may be a six month waiting period

Potentially. Yeah, there’s a lockup before he could sell. Yes, yes, yes. And then whether or not he can pledge it as collateral and so on and so

Forth. But 8 billion is I believe the market cap initially this past week

For that. Yeah. Well, we’ll see how that all plays out. Interesting times. So I know we’re up against the clock here. I want to remember we tell our listeners that Charles Curry is once again taking calls off the air, 4 0 7 8 6 9 9 8 0 0. And he’s hosting, if you want to talk to him about the workshop he’s doing on Wednesday evening, that’s a social security planning. It’s very, very important that you understand what your options are, that you make the right choice. Should you retire early, what’s the penalties if you do that, what’s the benefits of waiting until you’re 70? And how about widow benefits, survivor benefits, divorce benefits, can you collect on your spouse without impacting your spouse? All that kind of stuff that Charles will cover in his workshop next, this coming Wednesday at our office here in Mont Springs. And then two week, pardon me, April 3rd. April 3rd, and then two weeks from today, Matt Murphy will be hosting a workshop on tax planning through the four stages of retirement.

Good stuff absolutely free. Folks, go to our website, that’s financial, financial, click on events and you can get about that. And we haven’t talked about score My funds. Once again, there’s an opportunity if you have mutual funds, ETFs in your brokerage account held individually or in your retirement account, you wondered really what’s the quality of those. Go to score my score my We will send you a detailed report that’s prepared by the Center for Fiduciary Studies. That’s in very, very straightforward objective. Look at the quality of what you have based on 11 distinct criteria, and it’ll tell you whether you have good stuff, bad stuff, or something in between. We’ll send that to you absolutely free within 48 hours of your sending that to And that about wraps us up. I hear the show music there, Josh, so take it away my friend. That’s

Right. It’s always a good thing to work with Certified Financial Group because they have over 400 years combined experience inside those four walls and whenever I step in the walls, it goes up by zero more years. So what a team we make when it comes to giving it financial. I’m just a radio man. I know. Now you do a good job. I know people job, that’s my talent is I know people. If you want to call Charles Curry, standing by for a few more minutes. 4 0 7 8 6 9 9800 you’ve just listened to On the Money Where we are planning tomorrow Today with the Certified Financial Group.

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