Speaker 1 (00:00:00):
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 (00:00:34):
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 and enjoy the show.
Speaker 3 (00:01:56):
Hello and welcome 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’s Josh McCarthy, joined this Saturday as I am every Saturday with the team at Certified Financial Group. They are a very, very resourceful, reliable and passionate financial advising company out there in Altamont Springs. And every Saturday, you know can listen. You can pick up the phone, dial (844) 580-9326, get your questions on the air, get your answers by certified financial planners. That is something you can’t just find anywhere. This show is one of a kind and this show specifically the one you’re listening to right now is one of a kind. We got Chris Toine and Joe Bur and what are you guys up to this morning?
Speaker 2 (00:02:43):
Well,
Speaker 4 (00:02:44):
We are here Josh broadcasting from the front porch of our office here in Altamont Springs. It’s our annual shred event for our listeners that may not have got the message, we do this once a year providing a public service. We bring in a industrial grade truck to see your stuff shredded right before your eyes. You’re welcome ’em to come by between now and noon today with two bankers boxes and we’re offering coffee and muffins and even some information. So if you want to come on by, our office is 1111 Douglas Avenue, 1111 Douglas Avenue, just south of 4 34 and just west of I four. So if you get in the area, if you want to come on by or just say hello, we’d love to see you. But Chris and I are here this morning as we have been for more than 30 years to take.
(00:03:26):
Our clients should see our listeners questions about things that might be thinking about their personal finances, decisions that they’re trying to make regarding their IRA or 401k, long-term healthcare, annuities, life insurance, reverse mortgages, all that and more of the things that Chris and I and the 14 other certified financial planners provide financial planning, retirement planning, investment advice for a fee on Monday through Friday. But on a Saturday morning we are here for you absolutely free. So you have any questions about any of those topics or anything I may not have mentioned? The good news for you is the lines are absolutely wide open and we would encourage you to pick up the phone and dial or text these magic
Speaker 3 (00:04:02):
Numbers. The number is 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO, or we can open up that WDBO app. Send in your open mic using the open mic feature. It is the annual shred event. You know, have some of those papers lying around your house. You got some receipts for warranties, taxes, insurance, some grocery receipts, ATM receipts, phone bills that you don’t really need, some old paycheck stubs. Those are things that you have floating around in that cabinet or that filing drawer wherever you keep it in your house. And you want to know, I don’t know, how do I get rid of these? That is the perfect example of something you can bring today. You can say hi to the team of the certified financial group at one one Douglas Avenue in Altamont Springs. Joe are there on the air right now, so you can go ahead and see how some radio shows are made while you’re out there. And while we’re at it, there’s a radio show on the air right now and the topic of today’s show is potholes and opportunities from this tax season.
Speaker 5 (00:05:03):
Well, that’s right Josh, and good morning to you and our listeners. Joe, good morning. It is a delightful day out here in sunny Altamont Springs. And so really I could have called this potpourri because what I wanted to talk about today was just the things that I have seen over the last several months working with clients and as they have navigated through tax season. Tax season is a time of year that a lot of folks tend to think about finances, not just taxes, but other aspects of their finances. And so I wanted to just highlight some of the things that I have seen that some of which are good and opportunities for folks to enhance their situation and maybe make some more money in some cases and some things Joe, that are less desirable,
Speaker 4 (00:05:57):
The good, the bad, and the ugly,
Speaker 5 (00:05:59):
The good, the bad and the ugly. That’s right. So here we go. So this in no particular order, but just tried to think about what have I seen over the last several months that our listeners might be able to learn from. And one of the things is, Joe, I’m sure you all get copies of your client’s tax returns and you review those and as I’ve done that for some clients, I quickly saw that they didn’t include all the income that they should have, but the return had already been filed. So what to do? Well, what you do is you file an amendment. So that’s what they had to do. So I had a couple of clients that filed returns and in at least one of those cases they had a paid tax preparer who had the documents and it just didn’t attend 90
Speaker 4 (00:06:44):
Distribution
Speaker 5 (00:06:45):
Didn’t make it on there. So this is I think one of the things that as certified financial planners we do for our clients, we help them and just another set of eyes to look at things, whether it’s taxes or other things. Why
Speaker 4 (00:06:58):
Are you talking about taxes? This may be an opportunity to let our listeners know about that terrific tax analysis software that we
Speaker 5 (00:07:03):
Use. Oh yeah, we have a great tool that allows us to, that’s why I request copies of client’s tax returns because we’re able to scan those in and produce a nice summary for the clients. It kind of really highlights the main points of the return in a digestible fashion. And then from there I am able to take those numbers and tweak and play with them and look at the current year. So if we start with 2023 as the base year, then we say, okay, well what’s 2024 going to look like? And we say, well, we’re going to take more out of the IRAs and so we need to tweak that and maybe we’re going to have some capital gains that we know we’re going to have to realize. So we add that in there and we come up with an estimate for them of what they might owe. And so just as another service, we provide part of the planning process that we go through really each year with many clients.
Speaker 4 (00:08:05):
And I think the important thing is it points up the opportunities and you want to see the opportunities before the tax year closes.
Speaker 5 (00:08:12):
Well, that’s right. I mean you want to be proactive. Look, here’s the big takeaway. So I’m talking about tax compliance and returns being filed erroneously, but the real idea with planning is you get ahead of it. So we’re planning now, matter of fact, I’ve had a couple conversations this morning with clients who were coming through have dropping off a couple boxes to be shredded and taxes are the topic du jour. So the idea is here we are mid April, turning the corner into late April and ideally we began to look at your situation this year and identify, and really Joe, as I get more folks retiring and as the required minimum distribution age has gotten pushed back, there tends to be a window between retirement and required minimum distributions where there can be good opportunities to do Roth I RRA conversions or just different things, maybe take some money out of the IRA and stay in a low bracket.
(00:09:11):
So to feather the nest, so to speak, whether you need it or not. So the taxes are a big part of planning and that is certainly something that we do with our clients to help them proactively manage that piece of their life because let’s face it, we all have to deal with it. And of course the tax cuts and jobs act, AKA Trump tax cuts is sunset next year. Of course we’ve got an election between now and then, so we’ll see what ultimately happens, but taxes are not going away. And if I were a betting man, I would bet that they’ll be higher in the future because we’re running pretty big deficits right now. But along the lines of taxes, another thing, Joe, that I have done for at least a couple of my clients is those annoying quarterly estimated tax payments that many people have to make. And so for those, particularly those who have required distributions where they have to take money out of their IRA in a couple of cases we’ve said, Hey, why don’t we just handle all of your estimated payments through IRA withholding and just keep your life simple. So again, just one of the things we’re trying to do to enhance our client’s lives, make it easy for them so that they’re not having to write those four checks and remember, oh gosh, April 15th coming and now, oh, is it September? When’s the next one due?
(00:10:32):
It’s a function of knowing what your tax bracket is. Well, and that’s exactly right. So that’s the planning that goes into it. And that’s a great point, Joe. So that’s where we do the estimate to say, okay, and oftentimes their CPA will come up with the safe estimate, safe harbor for them. And so we will withhold that amount perhaps a little bit more, and then they’re covered for the years. They don’t have to worry about writing those checks. So now another thing that I’ve seen a little bit of, Joe, I don’t know if you have, I feel this is dwindling a bit this time last year, what was all the rage? IBOs? IBOs, they were paying a very competitive rate and many of course with IBOs, you have to open an account online through treasury.gov and you have to manage it all online, which some people are comfortable navigating that, but others it becomes one more thing to keep up with, one more thing to do.
(00:11:29):
And the rates on I bonds now, Joe, is from November of last year through the end of this month is five and a quarter. So not too shabby. I mean I’ll certainly take it, but we’ll see where it goes at the end of this month. And you can do nearly as well in treasuries, IES or money markets, not quite as well maybe in the money market, but pretty close and if it goes down. So I think the takeaway is I have a number of clients who said, Hey, you can put 10 grand in this. Let me put 10 grand and maybe it’s grown a little bit, but is it worth the extra 10 bucks? That’s the question. Well, and see this is the point, Joe, sometimes what you can do and what you should do or not the same thing and just having a voice of reason who can look at your situation, look at your balance sheet and say, Hey, do we really want to manage this other account online?
(00:12:22):
And to that point, another thing that I have seen, not just with treasury.gov but any online account, a lot of times there are banks out there, online banks, they pay more because they don’t have to maintain offices and staff and what have you. So they’re able to pay a higher rate. So folks open accounts there, but you know what? Those online accounts can be harder to navigate in terms of adding beneficiaries, changing beneficiaries, all these kinds of maintenance things that are very important when push comes to shove that often don’t get done because folks, they don’t even know. They just don’t know. I hear you. So this is one of the things that when I look at the eye bonds and hey, if you’re sitting out there and you’ve got 10,000 in an I bond because that’s how much you could buy, and now those rates are coming down and they’re comparable to what you could get in a treasury or a cd, I think that that is something to consider, Hey, do we keep that account or I’m a big fan, Joe, I tell folks, less is more. So consolidate accounts where you can, because if you’re depending on where you are in the season of life and really regardless of where you are, you never know what tomorrow holds. And so ultimately you may be leaving someone else a mess. Yep, simplify, simplify, simplify, simplify. Less is more. So I know we’re coming up on a break, but we’ve got a lot more to talk about when we come back. Josh, take it away my friend. You
Speaker 3 (00:13:54):
Got it. If you want to be in a part of that lot to talk about when we come back, the number to call is eight four four five eight zero nine three two six eight four four five eighty WDBO. Download the WDBO app, click the WDBO open mic and send in your question that way. I’ll play it back for the guys live on the air if you’re just tuning in, it is the annual shredding event with Certified Financial Group. It’s at 1 1 1 Douglas Avenue over there in Altamont Springs today, nine to noon. You can go ahead and bring up to two boxes or bags per person with any papers, documents that you want for some secure shredding. It’s always good to have a reliable resource like the Certified Financial group. And while you’re out there, say hi to Joe, Chris, and everybody out there with a team, the WDBO team promotion. Say hi as a hot day, tell ’em we love what we’re doing out there. It’s always a good service. If you want to join the conversation, 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.
(00:15:18):
Hello and welcome back to On the Money right here on WDBO. My name’s Josh McCarthy, join on the air on the money team at the Certified Financial Group. If you want, join the conversation 5 8 0 9 3 2 6 8 4 4 5 80 WDBO or send in your open mic if you hear a little bit of the noise, you got to know that our guy Joe Bur and Chris Toine with the certified financial team are out in the elements today. We’re doing some radio on the go. We got the annual shredding event over there at the certified Financial Group offices. Isn’t that right guys, sir?
Speaker 4 (00:15:51):
Yeah, we’re broadcasting live right here on the front porch of Certified Financial Group. Chris and I are watching the cars float in to bringing their shredding material. This is our annual event. So if you have two bankers boxes of stuff that you would like shredded, you have between now and noon today to bring ’em by 1111 Douglas Avenue just south of 4 34, just west of I four. You don’t even have to get out of your car. We have the industrial shredder right there. They’ll unload your car, take it away. We’re offering free coffee muffins and some tchotchkes as well. So if you want to come on by, that is today and next week, not next week, two weeks from today, we’ll be doing another remote presentation from the beautiful village on the green continuous care community nestled in the Sable Point community in Longwood. And if you haven’t seen it, if you don’t know anything about it, it is probably the state-of-the-art community I think here in central Florida because they just built a 25 million medical facility, which has impressed me and has given me real ideas about how maybe I want to change my life as well.
(00:16:49):
So if you’ve never been to one of these places and you want to get some more information, I would encourage you next two weeks from today, may the fourth to come on by. We’ll bring the program live, you’d be part of the live studio audience and then at the end they’re going to offer you some refreshments and if you want interested, get a tour of the place and you really understand what it’s all about. As I said, Chris and I were talking a little bit before we went on the air about how life changes and if you don’t plan for it and if you’re trying to make decisions under duress, and I see it, I’ve been at this a long time now, thank heavens. And my clients I started were older than me and my clients, many of them are still older than me. But what happens in life, you get these phone calls, Chris, and one day life is great and next day my husband had the heart attack, my wife had a stroke, she fell and broke her hip, and all of a sudden your life is upside down and now you have to start making decisions, lifetime decisions under duress.
(00:17:41):
You want to be able to make those decisions while you’re capable, while you’re a clear mind and make the decision as to where you want to live for the rest of your lives. And we all think we’re all going to die in bed and we want to age in play. So my friends, that does not happen statistically unless you’re one of the lucky ones, it’s not going to happen to you. You got to remember where you’re going to be and then how are you going to handle the last chapter of your life with the least amount of hassle and the most amount of
Speaker 5 (00:18:05):
Comfort? Well, that’s right Joe. And I think look, as you have said a lot of times and sometimes we hear it but we don’t hear it planning to get to and through retirement. And when you talk about certified financial planners and what we do and planning, a lot of times I think that the idea is just that it’s all about investments. You know what it’s not to appointed is yes, that’s an important part of planning, but there are so many other pieces and this topic that you’re talking about of planning the last chapter. And let’s face it, many folks don’t want to talk about it. They don’t want to deal with it, but it is important if you have loved ones who are going to be responsible for you, do them a favor, give it some thought, have a conversation about it. And that’s what we do with clients and it’s understanding, hey, it takes time to make these decisions. They’re big decisions, but what can it hurt to get some information to better understand the landscape that’s out there so that you have the information to make good informed decisions for you and your family based on your situation and what you need. And I think that this opportunity here in a couple of weeks at Village on the Green is just that kind of opportunity to better understand the landscape and know what’s out there. So
Speaker 4 (00:19:20):
Go to our website, financial group.com, financial group.com, click on events you make your reservation right there. Hope to see you two weeks from today in the live studio audience.
Speaker 3 (00:19:29):
Go to the website to preserve your spot at the village on the green there on the money team. Go to on the Money certified Financial group office right now to be a part of the annual shred event, up to two bags or boxes of paper documents and whatever you kind of, you dunno exactly what to do with, that’s why you give it to the professionals and they do exactly what they do. That is the right thing you’re listening to on the Money where we’re planning tomorrow today with the Certified Financial Group.
Speaker 2 (00:19:57):
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 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 8 4 4 5 80 WDBO, that’s 8 4 4 5 80 WDBO and enjoy the rest of the show.
Speaker 3 (00:20:42):
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 as I am every single Saturday morning at this time with the team at Certified Financial Group. This is a great opportunity for you, the listener to pick up the phone, join the conversation. Any question you may have heard anything, any news story you heard on one of the news channels or a friend said, this can’t be true, right? If it sounds too good to be true, well that’s what we do here. We have the experts on standby during this hour and today, especially during these two hours because this is the annual shredding event with a certified financial group. They are located at their office. Well, you can go to their office building the certified financial group office at Douglas Avenue in Altamont Springs if you got up to two bags or boxes per person with some paper documents for some secure shredding, some examples, maybe some old grocery receipts, grocery receipts receipts, not used for warranties, phone bills that you don’t need for taxes, some ATM receipts or some old paycheck stubs.
(00:21:49):
Once you get that W2, you don’t know what to do with all these paycheck stubs. Well, the team at Certified Financial Group knows exactly what to do and that is well destroy them. So go ahead and join the conversation, join the radio show live at the office and certified financial group in Altamont Springs, Chris Toine and Joe Bur joining us today. Gentlemen,
Speaker 4 (00:22:09):
Good to be back. Hey
Speaker 5 (00:22:11):
Josh. Josh,
Speaker 4 (00:22:11):
How are we doing? As you said, we’re here doing the show live from the CFG front porch here and Altamont Springs. We encourage our listeners to come on by between now and noon to bring those shredding up to two bankers boxes and we hope to see you there. We want to continue on the topic that we closed the hour with Chris on the good, bad and the ugly of things that you’ve seen here in the last month, few
Speaker 5 (00:22:30):
Months or so. Yeah, good, bad and ugly. So kind of potpourri, Joe. So I think we wrapped up talking about I Bonds and the fact that those rates have come down and that begs the bigger question. We just had a question from someone out here at our shred event, where are interest rates going? And your response was flip a coin. So who really knows? But the expectation is that at some point interest rates are going to come down. And so another thing that I’ve been seeing a lot of Joe is folks having what I’ll call excessive amounts of cash sitting on the sidelines. I think after 2008, many of us that lived through that season and felt the pain of that economically want to be prepared for the next shoe to drop. Lee soared there and so it’s wise to have some cash be prepared and make that part of your planning. But I’ve seen folks who have lots of cash and in the bank where it’s not doing anything. And so I think that the opportunity there.
Speaker 4 (00:23:33):
Yeah, it’s just dying.
Speaker 5 (00:23:34):
Well, that’s true. It’s shriveling up. Well, good point. Thank you. Yeah, so if inflation is three to four, let’s say, and your cash is earning zero point next to nothing, you’re falling behind. And so the good news is there are alternatives to that where at least your cash and your safe money can keep up with inflation, be that treasuries, money markets, even CDs. So those would be the third and the pecking order for me. But there are options and alternatives for those who might have a lot of cash sitting in a bank that’s just fallow and is falling behind inflation. So that’s something else that I’ve seen a decent amount of and we’ve helped some folks redeploy into treasuries and things so that they can get a more competitive return on their cash while it’s available. I
Speaker 4 (00:24:20):
Think if people put a pencil to it and looked at the lost opportunity cost on that lazy money over a period of five or 10 years, it’s enough to pay for a very nice vacation.
Speaker 5 (00:24:30):
Well, and that’s what I tell folks and in many cases I’ll do the simple math. I mean I met with someone this week who had a lot of lazy cash as you call, and there was a good reason for it in this case, but nonetheless, I said, look, it’s costing you 3, 4, 500 bucks a month. That’s real money. I mean that’ll pay for a vacation in a year. Yeah, that’s true. So yeah, just by doing something different and if you don’t know how, look, that’s what we’re here for. But so I think that’s something else that I have seen a fair amount of and this trend is happening, by the way, if you look at the macro graphs and all the money market balances have been swelling and cash balances and banks have been shrinking for good reason. And so if that’s you, hey, think about how much do I really need to keep in the bank?
(00:25:22):
How much might I need versus how much can I perhaps put the work in something that’s going to do a little better for me? So that’s just another opportunity for our listeners out there if that’s you, you have excessive or lazy cash. Now the other thing that I kind of mentioned with iBond Joe is these online accounts. And so whether it’s an online account for iBond, whether it’s an online bank, whatever it is, I do see a trend of folks who have these things, they open ’em up, they can’t figure out how to add beneficiaries so they don’t have a beneficiary on there. And so it just becomes something that sits out there and if something happens to them, it can be a real nuisance and challenge to deal with. So those are the kinds of things that we help with and can help point out, hey, this is something you want to get beneficiaries added.
Speaker 4 (00:26:15):
We’ve got a call coming in. I see it. Josh, you want to take it away buddy?
Speaker 3 (00:26:17):
You got it. Kathy has given us a call today. Kathy’s got a question about how to handle a couple of IRAs that she inherited. Go ahead. Kathy, you are alive on the
Speaker 5 (00:26:25):
Area. Hi Kathy. Good
Speaker 4 (00:26:26):
Morning. What’s up?
Speaker 5 (00:26:29):
How are you?
Speaker 6 (00:26:30):
I’m fine. I recently inherited from my 79-year-old sister-in-Law, two of her IRAs that she was getting RMDs off of accounts. Each one of them was sending her a check yearly. I know being spousal inherited that I have to exhaust these accounts within 10 years. I’m wondering if I have to continue to take an RMD from each one of these accounts like she was doing or can I just take in order to exhaust them one large sum of money from one of the accounts? I’m 74.
Speaker 5 (00:27:13):
You’re 74. Yep. So it sounds like to me you’ve done some homework, so good job for you and I’m sorry about your loss. Well, thank you. I guess my question would be is there any good reason why you wouldn’t want to combine those and just simplify your life? Joe and I have been talking about less is more this morning. And so I think this is one of those opportunities where you go, okay, is there a reason? And sometimes there are, but is there a good reason to keep them separate or might it be better to just combine them into one inherited IRA and then you just take the distribution from that one account.
Speaker 4 (00:27:53):
The total value of the IRAs have to be depleted within 10 years. I think you know that and I wouldn’t Go ahead.
Speaker 6 (00:28:03):
Well, one of them has a smaller amount than the other one and I was just thinking to simplify my life, I would get rid of that one quickly and then slowly exhaust the other one. I also have my own 401k that I receive an RMD from and I just am thinking that might be an easy way. I was told I could not combine them.
Speaker 5 (00:28:32):
Who told you that? Kathy
Speaker 6 (00:28:34):
Action actually The banker.
Speaker 5 (00:28:37):
Okay,
Speaker 4 (00:28:38):
That explains it.
Speaker 5 (00:28:41):
Yeah,
Speaker 4 (00:28:42):
No, you have to set up two. I’m sure you have the beneficiary IRAs set up already.
Speaker 5 (00:28:48):
Yes. Do you?
Speaker 4 (00:28:49):
Yeah, they can be combined. Yeah,
Speaker 5 (00:28:51):
You can combine those into one inherited I RRA and just take a distribution from that one account. And again, if it’s me, Kathy life is uncertain and just that I try to consolidate and clean things up as much as possible when you can unless there’s a good reason not to. And I’m not hearing that there is. I think you were given some bad information there and so I think that you can combine them and I would do that and then your question goes away. The main thing is that you take, so you can take from either, so if the small one, if you want to just deplete that to satisfy what you’re going to take out in a given year, that’s fine. And then you’re just down to one account. But if it’s me again, I would combine them and just have one account or go ahead and take the small one out on the balance. Are you comfortable sharing the balances with us?
Speaker 6 (00:29:45):
Yes. One of them has 15,000, the other one has 22,000. And then I have my own personal IRA with fidelity that I had set up.
Speaker 5 (00:29:56):
Yeah, so
Speaker 4 (00:29:59):
Chances are withdrawing $15,000 is not going to put you in an exceedingly higher tax bracket or affect your social security or your Medicare. So if you want to clean it up, cash it in and take a vacation.
Speaker 6 (00:30:09):
Yeah, well that’s what I’m thinking. I’ll just cash one out and then I’m down to one and I’ll work on it next year. But I just wanted to make sure because I will have to call that company obviously and stop the RMD withdrawal for this year since and I can do that without a problem. Correct? You
Speaker 4 (00:30:28):
Can do that, that’s
Speaker 5 (00:30:29):
Correct. If you just call ’em and tell ’em to send you the balance in there, if that’s what you decide to do, then that will automatically stop the RMD withdrawals. Yep.
Speaker 6 (00:30:38):
Okay. What about the one with the second one though? I’ll have to call them would and say to defer it. That’s correct. Defer it to 2025. Okay. I just don’t want to get in trouble with the IRS.
Speaker 4 (00:30:50):
Well, none of us do. None of us do. None of us do. But you, you know Kathy, when you were beginning to explain your situation, you had all the terminology there, you’re pretty astute, so you must be reading up on this stuff or you must listen to our program on a regular basis.
Speaker 6 (00:31:05):
I listen to it every morning and then bless again on Sunday sometimes.
Speaker 4 (00:31:11):
Bless your heart, Kathy, we appreciate your being a loyal listener and once again, if you have some stuff that needs to be shredded, we’ll be here till noon.
Speaker 6 (00:31:18):
I’m headed there, trust me.
Speaker 4 (00:31:19):
Oh, there, please stop and say hello. Yes. Alright, Kathy, for sure. All right, thank
Speaker 6 (00:31:22):
You. Appreciate thanks for the info. You’re welcome. Bye-Bye bye.
Speaker 4 (00:31:26):
Bye bye.
Speaker 3 (00:31:27):
Thank you so much. Kathy, 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 open mic using that WDBO app. It’s just so awesome to have these experts, Chris Toine and Joe Bird, a couple of certified financial planners with the certified financial group here to answer questions from listeners. I don’t know if you guys realize how much of a relief you guys take off these people’s shoulders.
Speaker 4 (00:31:55):
That’s the goal. It’s nice to hear that. And we hear that an awful lot and I can’t tell you what it means to me and to Chris and other 14 other certified financial planners when people tell us that, and this is what we do, it’s what’s thrill of being a business.
Speaker 5 (00:32:08):
Yeah, it is. And to that point, we were sponsoring another event this week and I was over there talking to one of, well, the newest planner we’ve hired here at CFG. And he was just saying, talking about really the heart and soul of what it is that we do and that that’s one of the reasons he wanted to get into this profession. And I think what you said, Josh, is exactly right. It’s a helping profession for those of us that don’t like blood and might otherwise be interested in medical, but this is our way to help people and the hope is that we can take a burden off and help them find peace of mind around all these mysterious things and complex rules that just get added to seemingly with each passing year. So let’s get back to the topic there Chris, what else you got? Okay, what else we got? Well, hey, this is going to fall under the umbrella of a pothole, Joe, and this is something I heard this quarter from a client who had a couple of annuities that were sold to him years ago. We’re up on the break I think Josh, and why don’t we pick this up when we come back because it’s worthy of our listeners knowing it’s a definite pothole that you want to be aware
Speaker 3 (00:33:16):
Of. You’ve got it. It’s always a pen and paper subject when we’re listening to on the money because there’s so much valuable information to learn. You guys, financial planners are in that glorified air of if you know somebody, you can expect to get the questions like doctors and mechanics. If you know what do I do with my money and how do I handle my car and my liver? That’s what we’re doing here. If you have any questions, join the conversation. 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 today with the Certified Financial Group.
(00:34:13):
Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming live inside the W-D-B-O-F. If you want to join the conversation, we got Chris Toine and Joe Bird with the Certified Financial Group answering your questions. The number to call is five eight zero nine three two six eight four four five eighty WDBO or tap the open mic button inside the WDBO app. Send in your open mic and I’ll play you back live on the air. Like I said, two certified financial planners with a certified financial group answering our questions as, I mean I’m always picking their brains during the break as well. You only hear so many questions on the air. I ask ’em all the questions during the break about my personal life. 8 4 4 5 8 0 9 3 2 6, open mic inside the WDBO app. Today’s topic on the show, we got a little bit more meat on that bone that we can talk about as potholes and opportunities for tax season.
Speaker 5 (00:35:12):
Yeah, that’s right Josh. And we’re at the top of the hour here, so we got to make it quick. But just the one thing, Joe, I wanted to mention before we share a little more information and we’ll hit the top of the hour is annuities. On the topic of annuities, which can be a dirty word. And in this case, I had a client reach out to me and say, Hey, the agent that sold me this says my annuity is maturing. Oh, what’s that mean? What does that mean? And so the kind of annuities that he has do not mature. And so what that means, Joe, is that there’s no longer a charge to come out of it and I can sell you a new one, want to get another commission.
Speaker 4 (00:35:52):
That’s the way it
Speaker 5 (00:35:52):
Works. That’s the way it works. So I said, you know what? And oftentimes, as you know Joe, not always, but sometimes these older products have bells and whistles built in that the insurance company realizes was too good to be true. You just want to be careful before you get rid of an insurance product like that. And again, I think that’s where having a trusted advisor you can call on to ask those kinds of questions. And another under the heading of annuities, I had a client pass on this last quarter. She had an annuity and I know we kept it. She had it before I ever came on the scene, but it had a death benefit greater than the account value. Well guess what? When the beneficiary got the claim form, they were just going to give her the account value, not the death benefit, which was more than twice. Wow. Yeah. So I looked at that and I said, no, no, no, do not sign that. And we went back to the company and said, you guys need to sharpen your pencil. And of course it’s one of these things where the company had been sold a couple times. So again, keep good records. That’s the moral of the story here. Keep good records and know what you have because you don’t want your heirs to get the short end of the stick. Yes. So
Speaker 4 (00:37:06):
Yeah, there’s all kinds of good news and bad news with annuities. Annuities is not a four letter word. That’s correct. You just need to know what you’re buying and what’s being sold to you. And generally the annuities that are sold with these free lunch and dinner seminars are the ones you want to stay away from because you have to pay for that steak dinner.
Speaker 5 (00:37:21):
That’s right, Joe. That’s right.
Speaker 4 (00:37:23):
That’s it. Alright, Josh, we’re here the music buddy. You want to take it away?
Speaker 3 (00:37:26):
I’ll take it from here. Chris and Joe, thank you so much. Chris. I believe Charles Curry is tapping in after the break in. He’s indeed. You might be wondering, wait a minute. I think we only get the beautiful info of Certified Financial Group from nine to 10 on Saturdays. Well today is a special event. It is the annual shredding event at the Certified Financial Group office in Altamont Springs and that means we get a two hour episode. So you did not miss out on your chance to make that phone call. We got Dennis on hold. We got more calls coming in 8 4 4 5 8 0 9 3 2 6. You’re more than welcome to join the conversation. We have a whole other hour coming up more on the money where we’re planning tomorrow today with the certified financial group coming up right after this break.
Speaker 1 (00:38:09):
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 its 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 (00:38:43):
Stay tuned for on the Money Central Florida’s most listened to financial call and show brought to 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
Speaker 3 (00:40:05):
And welcome back to the On the Money Show. Yes, I said welcome back to On the Money Show. This is the second hour of today’s special annual shredding event. The team at the Certified Financial Group wants you to come over to see their offices and offer you a great service. I’ll get to that in just one second. We got Charles Curry and Joe Bird with the Certified Financial Group answering your questions. The number to call is five eight zero nine three two six eight four four five eighty WDBO. Joe Bur Charles Curry, certified Financial Planners with the Certified Financial Group live outside their office right now. It is the annual shredding event. We want you guys to join WDBO at their office over there on Douglas Avenue in Altamont Springs. You can bring up to two boxes or bags per person with some paper documents for secure shredding. Some of those documents may include some receipts that you don’t need anymore for warranties, taxes, insurance, groceries, ATMs, old paycheck stubs that you don’t know what to do with anymore.
(00:41:07):
Well, the team at Certified Financial Group knows exactly what to do and that is shred them once everything’s been entered into the tax system and it’s all W twos have been received. Those old paycheck stubs, they got to go somewhere, but you don’t want your personal information out there for anyone to find. Go down to the Office of Certified Financial Group at the Altamont Springs off Douglas Avenue. Say hi to Joe, say hi to Charles. We are doing a live two hour show. This is the second hour of the show and if you want to go say hello, go say hello. How are you guys doing out there? Joe and Charles?
Speaker 4 (00:41:38):
We’re doing great, Josh, it’s good to be with you again for the second hour. As you said, Charles and I, and many of them are certified financial planners and our staff is here today to assist you in disposing of all that stuff you’ve been collecting and don’t know what to do with it. Right here at our offices in Altamont Springs, 1111 Douglas Avenue, just south of 4 34, just west of I four. If you want to bring by up to two bankers boxes of stuff, we’ll be glad to shred it for you and you see in the shred truck and you can come by and get a cup of coffee and a muffin and stop by and see Charles and me and the other planters that are here with me this morning, we’d be glad to tell you. But we are here to do the program live as we have done this now for more than 30 years.
(00:42:16):
It’s great to have a 10 o’clock audience because generally we’re done at nine, but here this morning at 10 o’clock, we’re glad you’re with us as well. For those of you that just may be tuning in for the very first time, certified Financial Group has been a proud member of this WDBO family now for, as I said, for more than 30 years providing retirement planning and investment advice on the radio. And on Monday through Friday, Charles and I and the fortune of the certified financial Planners do that for a fee. But on Saturday morning, we are here for you absolutely free. If you have any questions, things you’re trying to figure out, questions that you might have regarding your personal finances decisions that you’re trying to make, we are here for you this morning and the good news for you is the lines are absolutely wide open and if you’d like to text us or make a call, all you have to do is pick up the phone and dial all these magic numbers.
Speaker 3 (00:43:00):
Those numbers are 5 8 0 9 3 2 6 8 4 4 5 80 WDBO. Send in your open mic using that free WDBO app. Chris Toine, join us for the first hour of the show, but we got Charles Curry stepping in today. How you doing, Charles?
Speaker 7 (00:43:17):
I’m doing well. It’s a beautiful day here. We were helping a lot of folks get rid of all those important old tax documents. Don’t of course, throw those in the trash. Please bring them by to us. Super convenient. We’ve had several folks come by just so happy that we can just take it off their hands and get it shredded for ’em. And that peace of mind knowing all those important documents aren’t floating out there and destroyed. We make it super easy. You bring your car up, we help you unload it, throw it into the shred truck and it’s all done for you right there in front of you. Get her
Speaker 4 (00:43:47):
Done. So I see we have a caller waiting for us, Josh.
Speaker 3 (00:43:50):
That’s right. We got Dennis calling in from Melbourne. Go ahead Dennis. You are live on the air with the team at Certified Financial Group.
Speaker 4 (00:43:58):
Good morning Dennis. What’s up?
Speaker 8 (00:44:01):
Good morning. Thank you for taking my call. I have a lot of cash in my retirement ira. I wanted to purchase a property and leave it in the ira. Is that possible? I know I’ve read somewhat about it. You have to have a management company manage it if you’re going to rent it, but if I die, how does that property transfer to the heirs then?
Speaker 4 (00:44:27):
Well, it does. It gets a
Speaker 8 (00:44:29):
Little, your cash go
Speaker 4 (00:44:31):
Ahead. It gets tricky. It gets very tricky what you want to do. A lot of people say, I like, instead of investing in the market or stocks or bonds or mutual funds or ETFs, I want to take that money. I want to buy real estate. And some people do that. What you have to have, you have to have a custodian number one that will accept that transaction for you. You can’t do it on your own. You can’t, you understand, I want to buy this. I’m going to write my IRA, I’ll write you a check because that’s fully taxable and that’s not going to work. What you want to do is have the custodian buy that property. Now, that’s the easy part. The tricky part is, is that operating that property, you can’t use it for your personal benefit and enjoyment. Some people think, well, I could do this, I could buy that condo on the beach. Right Charles? Yeah, exactly. Why not buy or that house in the mountains and it’s a great thing. You can’t do that because you do it and you get caught, you’re in real trouble. But you can do it and there’s some pros to that. Obviously you’ve got some cash there. The bad news is, is you lose some of the benefits of owning real estate and one of the benefits of owning real estate as an investment. I presume this is investment, Dennis, is that right? Right. Okay, well
Speaker 8 (00:45:37):
Go ahead. I don’t want to take enough out of the I rat because of my age. I’d rather put the money into something like that and I wanted to transfer. I have a disabled son that when I pass away, he has the place to live or if he could live in it now, go ahead.
Speaker 4 (00:45:56):
Now you’re self dealing in that. I’d stay away from that. And the challenge and you mentioned is when you pass on that account, particularly if you don’t transfer it to a spouse, has to be liquidated within 10 years. And if you’ve already started required minimum distributions on it, that required minimum distributions have to continue. And depending on the liquidity of that total IRA account, you may be forced to sell that property to meet those tax requirements. So it’s something that you really need to do some planning on. It can be done. It is tricky, but you want to be careful of how you step on that, Dennis.
Speaker 8 (00:46:34):
Okay, so you don’t think I have a son living with me. He’s mentally ill. I was wanting him to move into the property like that. You’re saying I can’t do that. You’re saying,
Speaker 4 (00:46:47):
Well, yeah, you got to be able to pay rent. I mean you got to use it as a regular investment property because what you’re doing is basically, yeah, so you have to set it up as a regular investment. Property and tax have to be paid out of the IRA, all the maintenance, all of the insurance, all the stuff that goes on with it has to come out of that IRA account. And you have to be careful that you don’t cross that line. And that’s easy to do. Believe me.
Speaker 7 (00:47:14):
And when you cross that line, what that happens is that IRA distribution you took to buy that piece of property all of a sudden becomes a full taxable withdrawal or distribution to you, which you’re going to pay taxes and have that treated as income to
Speaker 4 (00:47:27):
You.
Speaker 7 (00:47:28):
So you have to be very careful not to cross
Speaker 4 (00:47:31):
That line there. Yeah. Actually what you need to do is have some planning done, Dennis. I mean there are probably ways around this without getting as creative as you’re trying to be. If you’ve got, may I ask, will you tell us how big is your IRA?
Speaker 8 (00:47:49):
Oh, it’s in the six seven digits.
Speaker 4 (00:47:53):
Okay, great. Are you into required distributions already?
Speaker 8 (00:48:00):
Absolutely a lot.
Speaker 4 (00:48:02):
Okay. All right. Okay. Okay, I got you. So you need to have some planning done and look at how you can use or as required distributions to buy this property for your son. And this way it’s a clean deal and maybe put it in your name and this way when you pass on it, he would get a step up in basis, he’ll inherit that your IRA and then he has 10 years in which to withdraw that money and perhaps pay down the property. So it making, I think you’re complicating it for yourself. And I understand your question. I mean you see this big pot of money particularly taking the RMDs and want to be able to see if we can’t use this money more efficiently. But I think there’s some planning opportunities. I would encourage you to call our office and set an appointment with one of our certified financial planners to look at your situation in detail and figure out how you can do this. And if you come in, mention that we talked about this on the program and the question is can we do this? And if we can show me how to do it.
Speaker 8 (00:48:57):
Thank you. The problem is finding someone knowledgeable on this and I have searched, there’s very minimal amount of people who are knowledgeable in the process, so that’s why Thank you for answering my question.
Speaker 4 (00:49:11):
Well, I haven’t given you the
Speaker 8 (00:49:13):
Solution and we’ll visiting you.
Speaker 4 (00:49:14):
Okay. When you come on by, please stop in and please say hello to me and I love meeting you and appreciate your call. Excellent.
Speaker 8 (00:49:21):
Thank you Dennis. Thank you very much. Have a good day. You’re welcome.
Speaker 4 (00:49:22):
Bye-Bye. You too. Bye.
Speaker 3 (00:49:24):
Thank you so much Dennis. That opens up a line for you to call 5 8 0 9 3 2 6 8 4 4 5 80 WDBO. You hear it? Sometimes you heard it from Dennis right there. The problem is finding someone knowledgeable and that is exactly what this show can provide hopefully for you. And if you are Dennis and you didn’t write down the number by chance, he said call the office number, that office number and I believe there’s somebody answering calls off the air. Usually it’s Charles, but Charles is on the air right now, so maybe you’ll have to wait, but
Speaker 4 (00:49:52):
He’s multitasking here.
Speaker 3 (00:49:54):
But what I mean’s
Speaker 7 (00:49:55):
I’ll make sure return the phone call as soon as I can.
Speaker 3 (00:49:57):
Awesome. And hey Charles, I’m going to be off next weekend. If you can fill in for me and host all the radio shows on the station, the office number, just leave the
Speaker 7 (00:50:05):
Key outside.
Speaker 3 (00:50:06):
You got it. The office number four certified financial group is 4 0 7 8 6 9 9800. That’s 4 0 7 8 6 9 9 8 0 0. That’s the off air number, the Monday through Friday number, but the live number right now, if you want to join the conversation, we got Tommy out of Merritt Island coming up next. If you want to join, the number to call is five eight zero nine three two six eight four four five eighty WDBO. Send in your open mic inside that WDBO app. I can play it back for you. Live on the air and pick the brains of these certified financial planners with the Certified Financial group. More Joe Bur more Charles Curry. More on the money coming up after this break. And again, you are listening to the annual shredding event. Hang by the offices at Certified Financial Group over off Douglas Avenue in Altamont Springs up to two bags or boxes per person and they will dispose of them properly and they may even answer your questions while they’re over there. You are listening to On the Money where We’re planning tomorrow today with the Certified Financial Group.
(00:51:16):
Welcome back to On the Money right here on WDBO 1 0 7 3 FM a M five 80, always streaming live inside your WDBO app. My name’s Josh McCarthy, joined this half hour by Joe Burt and Chris, not Chris. Chris is up and doing something else now. Charles Curry is sitting next to Joe Burt there. Live at the annual shred event outside the offices of Certified Financial Group over off Douglas Ave and in Altamont Springs. If you want, you can bring up to two bags or boxes of paper documents that get shredded, some old receipts, some old pay stubs. You don’t know what to do with them. They’re taking up space in your filing cabinet or your closet or under your mattress, wherever people put things nowadays, you can go ahead and bring it over to the office at Certified Financial Group. If you want to join the conversation, get some of that advice that we offer every single weekend from nine to 10. But today it’s from nine to 11 live on the air. Go ahead and call 8 4 4 5 8 0 9 3 2 6. Send in your open mic using the free WDBO app. We got Tommy calling in from Merit Island. Hey Tommy, you’re on the air.
Speaker 4 (00:52:22):
Morning Tommy. What’s up? Hey Josh. Good
Speaker 9 (00:52:23):
Morning. Good morning. Hey, good morning. Well, I was talking to the guy earlier and he and I talked about me thinking about taking a distribution from a self-directed IRA to buy a rental property and using the distribution for the money down the 20% down on the property and then diversifying a little bit. I already have a couple of rental properties and I just wanted to know at tax time, does that all come into the melting pot of your general tax rate? Or if I take a, supposing hypothetically, I take a hundred thousand dollars out of an IRA and use it for real estate investment. Is that dollar for dollar? If I’m in a 20% tax bracket, am I paying $22,000 on that?
Speaker 4 (00:53:13):
Yep.
Speaker 9 (00:53:15):
Okay.
Speaker 4 (00:53:17):
Who’s the guy? The guy’s telling you? Who’s the guy?
Speaker 9 (00:53:22):
No, no, no. I was speaking to somebody earlier, the prep, the guy that talked to me earlier, I spoke to him some of those things. There isn’t another guy, I’m just talking about the guy earlier. He was saying, Hey, the guy that said, hang on, we’ll talk to you in a minute.
Speaker 4 (00:53:36):
Call screener sensor. Our man Josh, he was trying to get the facts. Now what you, I understand what you want to, in fact, we just had a call a little while ago. I dunno if you’ve heard of Charles Call, do the same thing. Yeah, I’ll take the money out of the I and that’s the usual people see the opportunity, see that cash sitting there? I’m going to get invested in real estate. I understand the real estate I’ve done in the past and it can’t be done. But the way you want to do it is to make that withdrawal, right? Charles is going to be fully taxable. That’s correct. And if you’re under 59 and a half, not only is it taxable, but then you have a 10% penalty on top of that. So
Speaker 9 (00:54:07):
You have to have that No, I’m not under a 59 and a half.
Speaker 4 (00:54:12):
So then enough to pay regular taxes on it. Are you drawing social security?
Speaker 9 (00:54:16):
No sir, I’m, I’m full-time employed still.
Speaker 4 (00:54:20):
Okay, alright. Alright. Yeah, you want to be careful because that is fully taxable to you and it’s expensive money so to speak.
Speaker 7 (00:54:27):
And depending on how much you take out of your IRA for this 20% down, you got to be careful. It might kick you up into a higher tax bracket and all of a sudden you’re paying even more in taxes than you’re expecting to.
Speaker 4 (00:54:38):
Yeah. So you need to crunch the numbers because you’re going to add that a hundred thousand dollars to what your regular income is. Do you do your own taxes? Tommy? Tommy, you there
Speaker 9 (00:54:51):
Buddy? Yes, I’m here. Can you hear me?
Speaker 4 (00:54:54):
Yeah, I can hear you. Do you do your own taxes?
Speaker 9 (00:54:58):
Yes or no? Excuse me? No, we have our own CPA.
Speaker 4 (00:55:02):
Okay, well here’s what you do. Call the CPA said okay, if I pull a hundred grand out of my IRA, what’s it going to cost me? And you’ll show you the before and after impact of that then you make a financial decision.
Speaker 9 (00:55:13):
Okay, well I knew something about having to pay the taxes and I kind of had a figure in mind and what I was doing is if the property is valued enough, my thought was that if that property was selling for $200,000 hypothetically that I should attach, I should say I’m actually paying 2 25 for that property. In my mind I should say
Speaker 4 (00:55:42):
I don’t understand what you’re doing there.
Speaker 9 (00:55:46):
Well what I’m doing there is if I turn that property back over to the market and two to five years to sell that property, I need to figure out or just say, is this property going to be worth $25,000 more than what?
Speaker 4 (00:56:05):
In other words, are you going to recover your tax loss in the increase in the value of the property? Well who knows? It’s a question of real estate. It depends on location, location, location as they say. And if the property appreciates or stays flat or whatever, sure if the property appreciates more than what your tax consequences are in a reasonable amount of time, it’s not a bad deal. But you have to understand taking the money out is expensive money. But if that’s the only source of money, then you have no alternative and it might be a great idea, but the only thing I can tell you is what the tax consequences are.
Speaker 9 (00:56:40):
Okay. Alright. Well I appreciate the clarity on that so that I know what I’m facing for the decision to be made then.
Speaker 4 (00:56:47):
I appreciate that. Yeah, get together with your CPA and have him or her say, give me a before and after scenario what it’s going to cost me.
Speaker 9 (00:56:54):
Okay, well thank you very much for that.
Speaker 4 (00:56:57):
You’re welcome Tom. We appreciate the call.
Speaker 9 (00:57:00):
Thanks.
Speaker 4 (00:57:00):
And I see we’re up against the break here, Josh.
Speaker 3 (00:57:03):
That’s right. Thank you so much. Tommy, Adam Air Island for calling in today. If you want to call in today, you want to get your question answered, the number to call is five eight zero nine three two six eight four four five eighty WDBO. That’s if you want to just talk to Joe and the team at Certified Financial Group if you want to go to their office and say hello to Joe and the team at Certified Financial Group. Today is their annual shredding event. They are broadcasting live outside their office over in Altamont Springs off Douglas Avenue. You can bring two boxes or bags per person with some paper documents you want to bring for secure shredding. Watch them do the radio show for another half an hour, but the shredding is going until noon today there, so there’s an extra hour once we hop off the air, they’re going to be continuing shredding and I’ve heard there’s quite a few cars coming through this morning and more to come. Again, if you want to join the conversation, 8 4 4 5 8 0 9 3 2 6, send in your open mic on the WDBO app you are listening to on the Money where we’re planning tomorrow today with the Certified Financial Group.
Speaker 2 (00:58:06):
Welcome back to On the Money Central. Florida’s most listened to financial call and show Bronte. You buy 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 10 (00:59:02):
You
Speaker 11 (00:59:03):
The sunshine of my life. That’s why I’ll always be
Speaker 10 (00:59:12):
Around.
Speaker 3 (00:59:17):
Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming inside your very own WDBO app. If you open up the app, you might see Joe and he’s welcoming you, welcoming you to the WDBO app. And if you head over to the Office of Certified Financial Group in Altamont Springs off Douglas Avenue, you might see right now for the next 20 minutes, Joe Burt with a pair of headphones on hosting a radio show because this day is their live annual shredding event from 9:00 AM until noon. You can bring two boxes or bags per person with some paper documents that you want to make sure are securely shredded, maybe some old receipts ATMs, warranties, taxes, insurance, some old paycheck stubs you don’t know what to do with them. Go ahead and bring them over in a bag or a box and job and the team at Certified Financial Group will take care of them as they do taking care of your questions live on the air every single weekend. If you want to have your question on the air, we have some open lines 8 4 4 5 8 0 9 3 2 6 so far for this special two hour episode of On the Money. We’ve talked to Chris Toine with Joe Bird, we’ve talked to Charles Curry with Joe Bird and now we have the pleasure of talking to Harry Stama. And Harry, I believe you just started or maybe finished a new book
Speaker 12 (01:00:33):
I did. It’s very interesting. It’s a book by Tony Robbins. First of all, I also have to apologize to Joe. I’ve been unloading boxes for three hours doing a good job. I’m sitting two chairs away because I’m pretty ripe.
Speaker 4 (01:00:49):
Yeah, we’ve had a steady stream of folks coming here so far this morning. We’ve had almost 200, 200 cars come through. Great. But
Speaker 12 (01:00:55):
Anyway, back to my new book. Yeah, go ahead. So this is a great book for those of you that are looking and are readers. This is the holy Grail of investing. It’s by Tony Robbins. It’s a new book out in 2024, but I found it very interesting. It’s a great book. Basically Tony, what he did is he interviewed over 50 of the world’s most brilliant financial minds. We’re talking about the big of the big and boiling down basically hundreds of hours of interviews. It came down to four issues that all of these big investors over 50 had in common. And the four I found very interesting and also very, very simple. And the first one is first don’t lose.
(01:01:40):
And that sounds very simple, but rule number one is don’t lose. And rule number two is see rule number one, if you lose 50% in a bad investment, you need a hundred percent percent to get back to get back to even. And so the most successful investors have this in common. They know they’re going to lose. The problem is they pull the trigger when they’re down Joe, and they don’t ride out. How many calls have you gotten in the last week said, Hey, what’s going on? Is it time? Is it time to get out? And so basically what you want to make sure is that you don’t get out too far over your skis. Take the risk tolerance level that you can live with and be comfortable with. Number two is the principle of asset, which really kind of goes to number one, is spreading your risk among different types of investments.
(01:02:25):
Having six large cap growth funds is not diversification. You need large and mid and small. That’s number two. And number three is look for opportunities with asymmetric risk reward. What does that simply mean? Don’t take undue risk with investments. I believe it was Paul Tudor Jones. What he will do is he will only risk $1 to make five. He will only risk $1 to make five in the way that he invests. And then the fourth and the final principle is as we preached for 35 years on this show, is diversification always the key. If you do not diversify, you are putting yourself into a situation where I told a client one time, I said, if everyone of your investments are up 15%, you need to fire me, you got
Speaker 4 (01:03:17):
Trouble.
Speaker 12 (01:03:17):
And they look at me crossey and say, fire you. Why? Because at some point they’ll all be down 15 or 20%. We want to take the peaks in the valleys and make them bunny slopes smooth up. That’s correct. Bunny slopes, bunny. I like that.
Speaker 4 (01:03:29):
I like
Speaker 12 (01:03:29):
That, Harry. Anyway, that’s, it’s a great book. It’s the holy grail of investing and I got this from a gentleman named Joe Burt said, here, read this. So anyway, it’s a very interesting book.
Speaker 4 (01:03:40):
Yeah, we were, in fact, Simon Schuster just published that and one day on my floor in my office, I found 40 books from Simon Schuster from Tony Robbins and I didn’t order, and so I called the publicity people, thank you very much for it. Why do I have the, they said, well, we know who you are as an investment advisory firm and we thought you would appreciate these. So they said, so they sent ’em gratis. Wow. Yes.
Speaker 12 (01:04:05):
Fantastic. I didn’t know that
Speaker 4 (01:04:06):
Story. That’s how we got,
Speaker 12 (01:04:08):
Yeah, it’s the holy grail of investing.
Speaker 4 (01:04:10):
Yeah, well it really just amplifies what we do as certify financial planners. The key is diversification. The key is to get the emotion out of the way, and this is why clients hire, well we call a financial Sherpa to get you through the good times and the bads, as Scott Andes says that one of our ads, it says, we hold your hands to and through your retirement years and when things turn sideways, turn sour, unless you need that money today, what the last thing you do is sell. You don’t want to sell low and buy high, which unfortunately is what most people do. They buy high and sell low and you can’t make money that way. So anyway, if you get a chance to pick up the book, it’s a good book. Right.
Speaker 12 (01:04:45):
And these are some of the biggest investors in the world, the Warren Buffets of the world. This is not, it’s
Speaker 4 (01:04:50):
Not rocket surgery. No,
Speaker 12 (01:04:51):
No,
Speaker 4 (01:04:52):
Not at all. And I see we’ve got a text floated in there, right? Josh?
Speaker 3 (01:04:54):
We got a caller calling in from Vicky. Alright,
Speaker 4 (01:04:56):
Let’s do the caller call.
Speaker 12 (01:04:57):
We got a caller.
Speaker 3 (01:04:58):
Sure. Vicky’s calling in from Titusville. Go ahead Vicki, you’re live on the air. Hi
Speaker 4 (01:05:01):
Vicki, good morning. Hey Vicky. Good, Vicky. Vicky, I have a question for you. You’re obviously calling in during the 10 o’clock hour. Have you heard our program before at nine o’clock or is this the first time you’ve heard our program?
Speaker 13 (01:05:16):
No, I listen to it nine o’clock every week.
Speaker 4 (01:05:18):
Oh, okay.
Speaker 12 (01:05:19):
Thanks for listening.
Speaker 4 (01:05:20):
Okay, thanks for listening. How can we help you?
Speaker 13 (01:05:24):
I moved down to Florida, but I was working in Connecticut and in Connecticut you had to pay into the state retirement system. They didn’t have the 4 0 1, you didn’t do social security, it was just the Florida, sorry, the Connecticut State retirement system. So I called them and I found out that my pension, whether I start collecting at 60 or 65 is going to be the same amount of money. So I’m thinking about starting collecting that pension sooner rather than later. And I worked full time in Florida and I didn’t know if there’s going to be any limitations on collecting that pension or I know I’ll be having more income, but I don’t know if there’s any limitations on being able to work full-time in Florida and still paying into now social security and whatever Florida has.
Speaker 4 (01:06:35):
Let me be sure I understand. You moved down here from out of state, is that correct?
Speaker 14 (01:06:41):
Yes.
Speaker 4 (01:06:41):
And you paid in a lump sum to buy into the Florida retirement system pension, is that correct?
Speaker 13 (01:06:47):
No.
Speaker 12 (01:06:48):
Now this was in Connecticut, I believe Connecticut, she’d been contributing. They didn’t have a 401k, so she’d been working up there. That’s the way
Speaker 4 (01:06:55):
Good. Okay, good. That’s, ask the question.
Speaker 13 (01:06:57):
I worked in Connecticut for over 20 years and paid into their retirement system and so I was looking at possibly retiring early. I found out that it didn’t matter if I started collecting my pension from Connecticut.
Speaker 4 (01:07:18):
Yeah, there’s no benefit obviously. Yeah, there’s no benefit. Obviously if you wait till 65, unlike with social security, the longer you wait, the more you get. So the question is, okay, you start getting the money, there’s no prohibition from you getting another job and continuing to earn that money that you get from your pension, it’ll be taxable to you. The key is what you want to do is to take a tax deduction if you can for that money by putting it into another retirement account if possible.
Speaker 13 (01:07:48):
Oh, okay. So I should take the pension from Connecticut and put it into a retirement account down here.
Speaker 4 (01:07:54):
Yeah. Are you working now or are you looking for a job or what’s your situation? You’re looking for a job? I
Speaker 13 (01:08:00):
Work full. She’s working, no, I work full time now here in Florida.
Speaker 4 (01:08:05):
Does your current employer have a retirement plan?
Speaker 13 (01:08:08):
Yes.
Speaker 4 (01:08:10):
Okay. Are you maxing it out? Are you putting in up to $30,000 a year into it?
Speaker 13 (01:08:17):
I thought I was sold
Speaker 15 (01:08:18):
24 4 24.
Speaker 13 (01:08:24):
I’m trying to max it out, but I think it was 24.
Speaker 4 (01:08:27):
Okay, well how old are you?
Speaker 13 (01:08:33):
59 and a half.
Speaker 4 (01:08:35):
No, you can put in more than that. You can put it up over $30,000 in your plan. So if you’re not doing that, at least you can. Oh wow. Yeah, so if you’re not doing that, you can take some of that pension money. You can’t do it directly obviously, but increase the withholding on your paycheck, right Harry?
Speaker 12 (01:08:48):
Yeah, absolutely. Yeah, the call should be on Monday to HR and say, listen to my maximizing my contributions to my retirement. It’s a 401k, is that correct?
Speaker 13 (01:09:00):
It’s a 4 0 3.
Speaker 12 (01:09:02):
4 0 3
Speaker 4 (01:09:02):
B 1 57? Yeah. Oh, okay. Yeah. Then in that case, if you’ve got a 4 0 3 B and 4 57, you can put an even far more than what I just told you. So get together with HR on Monday. As Harry said, find out the maximum you can contribute, tell ’em obviously they’ll know your age and then take your pension money and start.
Speaker 12 (01:09:19):
Yeah. And what that will do is reduce your adjusted income, which will offset some of this money that you’re going to get in the pension. And I agree with Joe if there is no difference and I would triple make sure there’s no difference between taking it at 60 59 and a half today or waiting until 65 and there’s no increase, I would in fact call them as well on Monday and say, send me my money. Yep.
Speaker 13 (01:09:44):
Right. Okay. Thank you so much.
Speaker 4 (01:09:47):
You’re welcome Vicky. Good luck. Thanks for listening. Thank you. And thanks for the call. Yeah, that’s an opportunity there.
Speaker 12 (01:09:54):
Yeah, I had a client send me a statement this week and said, is this legit? And her husband was involved in police fund of some sort. Anyway, surprise, surprise. And it was very legit and he had a little pension that didn’t know about there you and that’s always kind of nice. It’s always nice to
Speaker 4 (01:10:20):
Get those little benefits For sure. For sure. Exactly. Yep. So I say we’ve got a text question further in there, Josh.
Speaker 3 (01:10:27):
We do, but we may need to address it after the break because of somebody. I’m going to go ahead and pod you guys down because there is a police siren or some kind of siren on your ends. I got you. So hopefully that person is okay. Joe just said in my ear it is an ambulance, but we’re going to come back here after the break. It is the annual shred event, a live two hour episode of On the Money Brought to you by Certified Financial Group. Want to thank a team at Florida Homes and Gardens, bill Burke, Tim Patacki, Nancy Campbell with Creative Floors and Services, accurate Window and Door and s and W Kitchens for swapping out the hour. We’ll get that hour back to you later in the year, but we want to thank you so much for listening to the annual shredding event. One more segment coming up. Go ahead and swing by the office. They’re going to be live out there off the air here in 10 minutes, still shredding any secure documents you may have. Go ahead and go to the certified Financial Group office in Altamont Springs off Douglas Ave until 12:00 PM today. You are listening to On the Money where we are planning tomorrow today with the Certified Financial Group.
Speaker 16 (01:11:36):
Breaker one nine this. Here’s a rubber duck. You got a copy on me? Love machine. Ten four pig pen for sure. For sure. By golly it’s clean, clear to taco. Yeah, we definitely got us the front door. Good buddy. Mercy sakes alive. Looks like we got us a convoy.
Speaker 3 (01:11:57):
This is the scene live at the Certified Financial Group office in Altamont Springs. We got a convoy of cars coming through for the annual shred event brought to you by the Certified Financial Group swing by their office now until noon, 12:00 PM a little over one hour from now, you can bring your secure documents to be shredded. Two bags of boxes per person. Joe Bur and Harry Stama are live on the air right now and the entire team will be out there until noon. But we got plenty of events coming up out there guys. Plenty of cars coming through, plenty of events coming up.
Speaker 4 (01:12:27):
Yeah, we do. On May the fourth, two weeks from today, we’ll be broadcasting live from the beautiful retirement community called Village on the Green Nestle in the Sable Point area right here in Longwood. It is a state-of-the-Art Facility. They just built a $25 million medical facility rated four stars by the state of Florida and we’re going to invite you to come on by, be part of the Life Studio audience on Saturday morning at nine. They’ll be serving some refreshments and have an open house afterwards. So if you or a loved one has ever been thinking about what am I going to do in that last phase of my life? Am I going to, where am I going to live? How’s it going to work? What if I get sick? Who’s going to take care of me? What are all the things that I need to plan for?
(01:13:06):
This is an opportunity at no cost or obligation to really get some information that you will find useful and helpful to you and help you make a decision. The last thing you want to do is make that decision regarding your health, regarding your life circumstances under duress. Harry and I have been at this business long enough, right? Harry is not. A week doesn’t go by when a client calls you that says, my wife had the heart attack or my husband fell and broke his hip or somebody just died and all of a sudden my life is upside down. I can’t live in this big house by myself anymore. What do I do? You want to make these decisions while you’re still capable of doing it. So I invite you two weeks from today at Green in Longwood. Go to our website, that’s financial group.com, financial group.com. You can make a reservation right there, no cost or obligation and we hope to see you there
Speaker 12 (01:13:52):
Joe. I had that call last week. Somebody said, tell me why this is a bad idea. And he’s looking at a place called Legacy and I said, so let’s think about this. You’re going to sell your house for seven 50. You’re going to buy in for X amount of dollars, you’re going to get this level payment and you’re going to put three or $400,000 from your house in your pocket and you’re going to get care for whatever level you need. Don’t walk but run fresh away in that situation. If you’re ready to get out of the single family home and get away from mowing the lawn and the pool and all the expenses there and have a fairly, fairly simple, I can’t poke holes in it, Joe.
Speaker 4 (01:14:32):
The important thing is, and you’ve seen this and I’ve seen this, is that when you get to that later phase in your life, you want to be part of a community. Your neighbors are no longer your neighbors, your kids are not around. And you want to be part of a community that everybody’s in the same boat and care for each other. And that’s what you want to look at these facilities. So you want to be sure it’s what’s called continuous care because what a lot of people don’t realize, they move into what’s called these assisted independent living. You start out with independent living because they want to handle the things you just said. They don’t want to deal with the house and the taxes, the insurance, the maintenance, all that stuff. They go independent living and then they move into what’s called assisted living because they can no longer do all the things. And then you get into memory care. If your place doesn’t have memory care, you know what they do. They kick you out, they throw you out out, they throw you out. Be sure that the place you go to is continuous care. Hope to see you in May the fourth, two weeks from today at Village on the Green on Elmont Springs. Go to our website, that’s financial group.com. Financial group.com.
Speaker 3 (01:15:26):
Thank you so much, Joe Bert Harry Sta. Mile earlier in the show. Be at Chris Toine and Charles Curry. The live two hour broadcast of the annual shredding event live at the Office of Certified Financial Group. Altamont Springs off Douglas Avenue. While this radio show may be coming to an end this weekend, the event is still going on for one more hour. So if you’ve got some documents you want to go meet the team over at Certified Financial Group, they can handle you. Your documents may answer a couple of questions while they’re there. Also, they might have some calls answering off the air. That number is 4 0 7 8 6 9 9 8 0 0. What a wonderful broadcast, wonderful event you guys do every year. It’s such a useful resource for the community and I want to just thank you. The team at Certified Financial Group you have just listened to on the Money where we are planning tomorrow
Speaker 4 (01:16:15):
Today
Speaker 3 (01:16:15):
With the Certified Financial Group.
