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Information presented on this program is believed to be factual and UpToDate, 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.
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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 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
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Morning 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. If you want to join the conversation, this is a great time to do it because we have Joe Bert and Charles Curry with the team at Certified Financial Group, one of the top financial advisory firms in the area filled in the country. Forgive me. So it’s a pretty big area. I should have been more specific. It is a big area. It’s one of the top firms in the country as named by the CNBC. We got Charles Curry and Joe Bur that building is filled with certified financial planners and this show, well two thirds of us are certified financial planners and then there’s me who likes to, nobody’s talking about but really have no clue. That’s why I talked to the experts. Joe Bur Charles Curry. If you want to join the conversation now is the time. 8 4 4 5 8 0 9 3 2 6 is the number to call. Leave the open mic inside the WDBO app. Joe Charles, how are we doing this day? We’re doing great
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Josh. Good to be with you. We are here as we have been now for more than 30 years to take questions our listeners might have on their minds regarding their personal finances, decisions that they might be trying to figure out about their long-term healthcare, about their IRA, about a 401k, about a rollover, about required minimum distributions, about life insurance, all those things that Charles and I and the 14 other certified financial planners deal with day in day out, working with our clients as fiduciaries, providing wealth management and financial planning advice for a fee. But on Saturday morning we are here for you absolutely free. So if you have any questions regarding anything that’s on your mind regarding your personal finances, things you might’ve heard, rumors you’re not quite sure are true, anything you want to have confirmed or get filled in on, that’s why we are here. And the good news for you is the lines are absolutely wide open. All you have to do is pick up with the phone and dial these magic numbers.
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8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO send in your open mic using the free WDBO app, our topic of the day. If you are in the Gates family, bill and Melinda, you want to know this one? Do not make this inheritance mistake. It could cost your loved ones big time.
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There you go. What’s it about, Charles?
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Yes, I appreciate the opportunity to talk about this topic. It’s one, as you’ve mentioned before, Joe on air about my background being in the trust and estate planning when I worked at SunTrust Bank. When it comes to inheritance, it’s an important piece that a lot of people kind of forget about. And one of the other things too is that as a firm, we’re all very well read and we’re reading lots of different articles and every week, and this one kind of caught my eye. It was a topic that’s important, especially now that we’ve gotten past tax season. Now we’re talking about beneficiaries on accounts and it’s an important piece that we all need to kind of keep in mind and it’s really, it’s an important one and especially when you think about it could cost your loved ones big time. The example I want to talk about is that suppose that you have a million dollar brokerage account and a million dollar IRA retirement account,
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Okay? Two accounts, million dollar brokerage, million dollar IRA, alright?
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And that you plan to leave half your state to your son who’s a successful doctor here in town and the other half to charity. So you decide the retirement account will go to your son because he’s already listed as a beneficiary on the IRA, which is typical that you have your children listed on an IRA account and that the brokerage account would go to your church. What you’ve just committed by doing that
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Is a
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Huge tax big mistake and it will cost your higher earning son a lot of money.
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So let’s stop right there. So you’ve got the two accounts. One is a regular brokerage account that every year you get your 10 99, you pay taxes and your dividends and capital gains, whatever interest you might have. And then you have your IRA, there’s been sitting there growing tax deferred and then ultimately you have to do RMDs and your son is the beneficiary and the ID is when you pass on, he’s named to the beneficiary, it’s going to go to him. Correct. So two choices are, let’s ask our listeners, just think about this for a minute. So which account would be most tax wise for you to leave to your son and the charity? So just think about that for a moment. And the answer is
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Yes. The answer is is that since your son who’s already in a high tax bracket based on their salary being a physician, they’re going to pay tax on every dollar that they pull out of that IRA account. Yet if you had left that brokerage account to your son, they would’ve inherited a tax free.
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So they would get what’s called a step up in basis.
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So what you’ve done or how much this mistake would’ve cost is that your son could pay close to 50% of the value of that tax deferred or IRA account and taxes because in essence you’ve given them an asset as they start pulling assets out of that IRA, it’s going to be treated as taxable income. It’s going to be treated as if you were pulling out the assets yourself during your life and you really haven’t provided any kind of tax savings to your child by doing that. Whereas if you would’ve given it, let’s say to your church, the church doesn’t care if it’s an IRA account or a taxable account. The taxes aren’t an issue for them, but for your son, if you can give them an asset that at your passing, you can get a step up in basis and I’ll talk about what step up in basis means that you can give them that asset kind of tax free. And that’s a big tax loophole that a lot of folks don’t think about when they set the beneficiaries on their accounts. They just do what’s easy and what’s easiest to list your children on your IRAs and look at that taxable account. Oh hey, let me give that to charity instead.
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And the important thing is, it’s even more important today with the rule now you have to drain the account within 10 years. So the son’s sitting there and he’s looking at a big tax bill when he has to pull the trigger and draw out all that money and pay all that taxes and have a good portion of it wiped out in taxes.
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Right? So yeah, to define what stepped up in basis is so folks can know what that means. There are certain assets, stocks, real property collectibles businesses, cryptocurrencies, which I thought was interesting. I get a step up in basis or value on the date of the owner’s death. So let’s say for example, your father passed away who had bought Microsoft back in their early eighties and it’s now worth $2 million. That step up to $2 million upon his death would be the value of that stock so that if you turn around and sold it the next day, you would not pay any capital gains at all. The other side of the coin is that you don’t want to leave retirement accounts or tax deferred annuities because those assets aren’t stepped up in value. So in essence, your heirs or more or less will owe the same taxes depending on their tax bracket that you would do. In essence, they aren’t getting any tax break upon their death. Yeah,
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It’s important to look at how those funds flow and this is what we do as certified financial planners or we’re meeting with clients to talk about passing on those assets that you’ve taken a lifetime to accumulate, okay, we’ve got this money here and we hope to have it there for the rest of our lives to provide for wellbeing and upkeep, but there’s going to come a point in time and if there’s something left, then how can we keep Uncle Sam out of our pocket? And then you have to look at, okay, what are the options? What can we do? Who needs it and how? So that’s an extremely important point. And the mistake or what you said there is a mistake that many people make. You have the name beneficiary and the IRA, it’s a simple thing. It’s going to avoid probate, go directly to my son and it’s all done. And then the church will have to deal with all the stocks and bonds, whatever’s in my brokerage account. Big mistake because you just let Uncle Sam on the door when you didn’t need to.
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And the scenario that we talked about today is not really an anomaly. It’s something that many folks do. And when we see it, of course we said you just got to the whole thing kind of backwards. So you kind of want to do it the other way. And of course today, I don’t want to make folks believe that you shouldn’t give your children your IRA accounts. It’s just when you look at different assets, what to give if you’re charitably inclined, which is more tax beneficial for your children and what’s tax beneficial for the charities
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And it doesn’t need to be a million dollars. Correct. You just use that for just round numbers.
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Yes, exactly. For today’s scenario.
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Right, right. So those are the things that need to be. Anything else you want to tag onto that closing
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It. The other things too is one of the things here in Florida, a lot of folks have beach houses and folks feel, hey, it might be what I want to do to move this asset out of my state. I want to gift part of that home ownership to my children over years or to the grandchildren over the years what you’ve done is you’ve in essence given them your lower tax basis, whereas if you, if they receive the property at your passing, they would get that property at today’s values versus what you bought back 10, 20 years ago.
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Plus, you’ve also opened a door for potential liability because that becomes an asset of your child or grandchild. And heaven forbid they have a car accident or something, that beach property that you thought was all yours and a little bit to your grandchild can now be part of that claim, part of that lawsuit. Correct. So you got to be very, very careful when you do those kinds of things.
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And the other piece too, when we talk about estate planning and different assets that can pass and step up and basis, one of the things that people forget is that life insurance of course is one of those types of products that you can pass to your children kind of tax free. And that’s another way of moving assets from one generation to another. But in contrast, of course, if you inherit a 401k or an IRA, every nickel in that 401k could be taxes oriented income to your heirs,
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Right? And with life insurance, you have to be careful about the ownership because if you have a large enough estate, a large enough policy, and if you’re the owner, the policy is part of your taxable estate, even though the proceeds are tax free to the beneficiaries, the value of that policy now becomes part of your taxable estate and could compound your tax situation. So you want to look at the big picture. There’s a lot of me moving pieces and parts and this is what we do as certified financial planners. I think this is what distinguishes us from many people out there that just want to invest your money. Some people even do it for free nowadays, I just heard. But this is what distinguishes us from instead of just being asset managers, we’re wealth managers. It’s the idea of getting you to and through your retirement years, keeping Upal Sam out your pockets and getting those assets passed on to your survivors the best way possible. And it’s understanding the big picture and all the things that could change and the rules change as you know. I mean they change, it’s tough to keep up anywhere. But thank heavens for the software that we’re able to employ today to just with a push of a button, get updated information and see the impact that those decisions have or those tax changes will have on your financial future.
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So that’s our story for this morning. Josh, we’re up against the break. I see. So if you want to take it away buddy, we will be back right after the break
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And what a wonderful story it is. If you want to join the conversation, Charles Curry and Joe Bird with a certified financial group standing by the number to call is eight four four five eight zero nine three two six eight four four five eighty WDBO. If you got some questions going on and maybe one of your friends said, Hey, did you hear this thing about this account or this investment and you want to run it by the experts, now is your chance to call 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO you are listening to on the money or 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. This is your chance to hop on the air with some certified financial planners with the certified financial group. Join in studio today with Joe Burt and Charles Curry with the aforementioned certified financial group. 8 4 4 5 8 0 9 3 2 6 is the number to call 8 4 4 5 80 WDBO. If you want to join our conversation, we got Mary calling from Oviedo. Go ahead Mary, you’re on the air.
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Good morning Mary.
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Good morning and thank you for the information.
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Of course. What’s up?
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We have a term life policy that’s getting ready to expire and it’s too expensive to reextend it and they say the only thing I can do is convert it to a whole life. But I don’t know anything about what whole life would do for us. Or maybe you can explain it a little
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For sure. For our listeners, it might not be familiar with the basic two types of insurance, term insurance. You buy it for a term five years, 10 years to age 65, whatever it might be. You have a level premium in most cases. And then at that point is up like in your situation, you have in some cases the opportunity then to convert it to what’s called a permanent policy or whole life. And what that means is now you lock in the premium for the rest of your life and when you pass on, your beneficiaries will get those proceeds totally tax free. Now what you’re going to be facing, did you get the new premium, what it would be for the insurance?
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Yes.
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Okay. And it’s substantial, isn’t it?
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Yes. Okay,
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I understand that’s what happens. Let me tell you a personal story here. Many years ago I was looking at this. When I got started in this business, I was looking, of course, my mom and dad’s situation and my dad was grossly uninsured as a lot of folks from his generation were they never worried about it until the time came. I said, as a minimum we need to get you covered for a term policy. So we did that and he had a 20 year term as I recall. And then it got up to the point where just like in your situation, the policy was about to expire or you can convert it to what’s called a permanent policy. We chose the permanent policy route and it was a good decision simply because my dad passed away from lung cancer not too many years after that. And although the premium was higher for a few years, it made all the difference in the world to my mother and her long-term financial security. And you want to look at that situation for yourself. Are you the insured or is it your husband or
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My husband? Your
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Husband. Okay. You want to look at it in that light. You want to look at, okay, I’m going to be paying these higher premiums, but how many years do I have to pay these premiums and will I get this? You will get the money back as a death benefit. And that’s the economic decisions that you have to make. And the nice thing about your policy is you don’t have to apply for it. You don’t have to set for medical exam, heaven forbid your husband has a terminal illness, they can’t deny you, but you have to make the decision before the policy expires and that’s what you want to look at. And if you can’t afford the full premium, you may ask request a policy for a lesser amount to reduce the premium this way at least you have something. So those are the considerations that you have.
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Let me give you something else to think about. I don’t know your personal financial situation, but what I would do, if you need the insurance for your long-term needs in the long term, maybe you want to talk to the family. He said, here’s the situation. We have this policy coming up. Dad’s going to pass on if you’ll help me or if you’ll take over the premiums, it will help me in future years. I know that’s sometimes a tough decision, but those are the realities and that’s the economic deals, things you have to deal with. So those are your choices.
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Go ahead Mary. I understand the higher premiums, but what does whole life cover? Does it cover if he goes into a nursing home, what’s it
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Cover? No, no whole life cover, just in this particular case, it’s just the death benefit. So it covers you. Oh, it’s just the death, right? It covers you for your entire life, your whole life. That’s what it means. It’s your whole life. And that premium will continue as long as your husband lives and when he passes on, I presume you’re the beneficiary, you’ll get the proceeds totally tax free.
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So it’s like a term life policy then, right?
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No term runs out after a certain number of years. Whole life is just what it says. This will run out to you. If your husband lives to be 120 years old, that policy will be there.
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Wonderful.
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Without an increase in premium. That’s the nice thing about it. You don’t have to face any more higher premiums.
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Okay. Alright. That help you? It did. Thank you very much. I appreciate it. You’re
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Welcome, Mary. Thanks for the call. Have a great
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Weekend. You too. Thank you. Okay.
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Alright. And we’ve got a workshop coming up here real quick, Charles.
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Yes. We’ve got a couple workshops. We have one coming up on May 18th from 10 to 12:00 PM having to be with Healthcare Options and Retirement hosted by Gary here in our office. And then we have Social Security planning basic rules and claiming strategies, which I’m going to be hosting on Wednesday, May 29th from six 30 to 8:00 PM And then
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For more information, go to our website financial group.com. That’s financial group.com, click on events and you can make your reservation right there. These fill up fast. But we love to see you at our workshops. Coming up
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8 4 4 5 8 0 9 3 2 6 is the number to call if you want to be like Mary and get your peace of mind live on the air. Talking to the experts at the Certified Financial Group, Joe Bur and Charles Curry 8 4 4 5 80 WDBO. More on the money coming on up. And this is of course on the money where we help you plan tomorrow today with the Certified Financial Group.
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Welcome back to On the Money Central. Florida’s most listened to financial call and show Bron to you by Certified Financial Group in Altamont Springs. It’s the only show hosted exclusively by certified financial Planner professionals. Monday through Friday, their CFPs provide financial planning and investment advice for a 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.
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Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming live inside your WDBO app. This is your chance to hop on the air. Join the conversation 8 4 4 5 8 0 9 3 2 6 is a way you can join the conversation now or if you want to meet some of the team at Certified Financial Group. There are plenty of events in Studio today we have Joe Bur and Charles Curry, but one week from right now actually, there’s a pretty unique opportunity to watch a live edition of the show and also
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Talk to some experts. Yeah, we’ll be doing it live from the village on the Green Retirement community, nestled in the beautiful Sable Point community in Longwood. We invite our listeners to come on by, be part of the live studio audience. You want to get there a little early before nine o’clock and we love to have you there. They’re going to have some refreshments and give you a tour of their beautiful facilities there. And it’s going to be my new home and some people look at me. Are you moving? Where are you going? Well, let me tell you something and why I decided to do this. My wife and I made this decision. I’ve been at this profession for a long time and when I started, of course my clients were generally older than I, and I’ve aged along with them. And now what I’m seeing, and this is more and more occurrence, and this is what drove me to this decision, it seems like a week doesn’t go by where we get a call from one of my longstanding clients that have had a major life change.
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Either their spouse died, somebody had a heart attack, they’ve been diagnosed with cancer. All of a sudden Parkinson’s is in the, everything changes your whole life has been turned upside down. One day life is good. The next day it’s gone a hell in a hand basket. And so what you want to know or what you want to do is be prepared for that ultimate time. You never know when it’s going to be what it’s going to be, but I can guarantee you it’s coming. We just don’t know what it is, but when it is. But I guarantee it’s coming. And you want to make the decisions about how you want to live the rest of your life in comfort and be sure that you have adequate long-term care to take you through those retirement years in comfort so you don’t have to pick yourself up and be moving into a facility when the lease time, when it’s the worst possible time for you to make that decision.
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So my wife and I made this decision, we’re going to sell the big house and we’re going to move into a continuous care community. And it is ideal for us because I’m a realist, I’m a planner and I recognize I want to be in a community with like-minded people, people we’re all in the same boat together. I’m not that old and I see it all the time. Like I said, life is great and one day, and I think the wake up call for me as I’m saying one of our ads is getting a social security check. Getting a social security check you’re looking at as a friend of mine says, I’m not only on the back nine of life, I can see the clubhouse. So that’s what you have to prepare for. Anyway, a week from today on May the fourth, I encourage our listeners to come on by.
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It’s the beautiful village on the green community up there in Long would be part of our live studio audience. We’ll be doing a program there and afterwards they’re going to be serving some refreshments. They’ll give you a tour of their facility this way, whether for you or maybe a loved one you’re considering looking at those kinds of things. I encourage you to do it. And if you’re hearing this program on next Saturday morning at seven, because we do record this, if you’re listening to this at seven o’clock still come on by. I’m talking to you here in April. But if you’re listening to us next May the fourth, which is a week from today, you can still come on by. But if you want to make a reservation for sure, go to our website, that’s financial group.com, financial group.com, click on events, give you all the information there. You can make your reservation right there. And we hope to see you there in part of our live audience. And that’s the pitch there for the Village on the green this morning.
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It’s always fun to see radio happen. So you can go out there, say hi to Joe, say hi to certified financial planning team, the certified financial group, and also take a look at a really cool environment it sounds like out there.
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Oh yeah, it’s great. There’s a lot of good places around town. Here’s the deal that you need to know, and I learned this the hard, not the hard way, but I learned this through one of my colleagues who dealt with this with their mother. She moved into a beautiful, she started out at, what do we call independent living. She couldn’t deal with a big house anymore. She wanted to be in someplace with like-minded people and she was living independently in an apartment and then she moved into what’s called assisted living where she could no longer do one of the seven daily things, feed herself, dress herself, bathe herself, those kinds of things, but they take care of you.
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And then she needed memory care and they told her, you have 30 days to get out because they did not have a memory care unit. So you want to be very, very careful of where you go because you think you’re going to live the rest of your life in this kind of place. And if you need that memory care, which many, many people do in those older years, you’re going to be out on the street looking for a new place when you’re 85 years old and not deal with it. So the nice thing about Village on the Green is continuous care from assisted living, independent living, memory care, all the things that you need. And heaven forbid if you don’t need that stuff, you’ve got a wonderful community to live in. I told my wife like living on a cruise ship over here. It’s a wonderful thing. So go to our website, that’s financial group.com, financial group.com to get more information and we’ve got a call. So let’s take the call
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There. Chief, you want to join the conversation? 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO, Charles Curry, Joe Bird with a certified financial group answering your questions. We got JD calling from Orlando. Go ahead jd, you’re on the air
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Jd, good morning. What’s up?
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Good morning everybody. Good morning. I’m calling about publication nine 15 from the IRS. I want to find out more about it. It’s a little bit complicated for me, but it saves me some money on my social security and it’s for people on social security and it appears that even money that I would earn in addition to the social security, it would save me quite a bit of money. Can you tell me more about it?
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Well, it usually deals with railroad retirement. Are you a former railroad employee?
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I’m not a railroad employee. I’ve got social security. It deals with both,
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Right? Right, exactly. Exactly. Well, I don’t know about nine 15 in saving anything over and above what you can normally save. I mean the rules are, what the rules are is as to how much you can earn and it tells you whether or not your incomes to be taxable at the 85% rate or not.
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Yeah, my understanding, I’m not a CPA, but what you’re referencing that publication 9 1 5 is having to do with part of the IRS and one of the tax codes having to deal with railroad employees as well as social security benefits and how that all works together. They have some unique, if you work for a railroad on how social security is taxed,
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But there’s nothing on Form nine 15 that I’m aware of that’ll show you how to save money over and above the regular rules about not having your social security being taxed. And that’s how old are you JD?
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66.
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66. So you are full retirement age? No, you’re not quite there yet. So are you working now?
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No.
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Okay. So you’re drawing social security and what you want to know is how to avoid your social security being taxed.
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Well not avoid it, but reduce it. Reduce it, okay. I don’t pay anything on my social security, but I do have some money in a retirement account and I would like to take some out. There you go. I keep it to a minimum. I don’t want to take out so much that I get a heavy tax. Sure.
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There you
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Go’s. When you get work, when you go to worksheet number one in the publication nine 15 on line 14, it says multiply line 13 by 50% and when you do that, it appears that any taxable income you have would be reduced by 50%. That’s where my questioning comes in. Is that what it’s saying? Is it reducing my income by 50%?
(28:06):
That doesn’t make sense to me. No, because anything that you earn, like taking a pension or money coming out of a retirement account, IRA 401k, whatever it is, that’s going to be added to your regular income, which is going to determine the taxation of your social security. Now, I’m not familiar with that 50% calculation. There’s no way to reduce money. That’s the taxation of the money coming out of your IRA. There’s something we’re missing here, jd,
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That’s it. I’m missing it and I’m trying to find somebody who can tell me more about it because if I could do it, I’d love to do it and and below that they come to the 85% calculation. But on line 14, publication nine 15 worksheet number one, you have to fill out the worksheet and look into it and if you find out more about it, talk on air about it and I’ll hear it.
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Okay, fair enough. jd, we appreciate your call. We’ll take a look at it. Maybe he’s referring to the amount to up to 85% of your social security be taxed, but below that is a 50% threshold. Is it not? Yeah. Yeah. So maybe that’s what you’re referring to jd. You’d have to do the calculation. Alright, well take a look. We appreciate your call and I see Josh is teeing up a call there. We’ve got a, you want to read that text question you got there, Charles?
(29:32):
Yeah. The first text question I got comes from Maryanne Winter Park. It has to do actually with Social security when my spouse dies, do I get his social security addition to mine? And that’s a great question. That’s one. I do a social security workshop here and it’s a question I get from time to time from clients. It’s a misconceived kind of thing. A lot of folks feel that when their husband or their spouse passes away that they’re going to all of a sudden continue to receive that income in addition to their own social security. And unfortunately when that spouse passes away, their income goes away. The good news is, is that if their income or social security benefits is higher than yours, you have the potential where you can switch over to the higher income, but unfortunately you lose one of the two incomes that you’re receiving.
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Yeah, that’s the important thing. When we’re doing financial planning, we look at what is the best way to maximize the benefits for your social security and show you the benefits and the pros and cons of working or not working, but delaying social security till age 70 so the surviving spouse can get the maximum benefit. Unfortunately, many people claim social security too early because they want the money now for whatever reasons. That’s fine. But if you don’t need it, it’s oftentimes a great way to guarantee income for your lifetime. Plus you get those automatic cost of living increases, which in times pass with almost 10% a year. So you want to do that. I see. We got to call there. Josh, you want to take it away? Sure thing. Linda from Orlando, go ahead. You’re on the air. Good morning, Linda. What’s up?
(31:00):
Good morning gentlemen. I have a question about RMD. I turned 73 in January, happy birthday. And I am wondering, is it this year that I go to my 401k people and say, I need my first RMD pulled or is it next year? Is it the year after you turn 73 or the year that you turn 73 that you have to get your first RMD out?
(31:39):
It will be this year and your 401k people will more than likely contact you and tell you this is the time and where do you want the money sent and do you want taxes withheld?
(31:49):
Okay. Okay.
(31:51):
Now lemme ask you, are you still working?
(31:54):
No, I’m retired. Okay.
(31:55):
Yep. And you just have an 401k, you don’t have an IRA?
(32:00):
No. Okay. No, it’s just a 401k and I get social security and that’s it.
(32:07):
Okay. Yep. This is the year. So happy birthday. Join the club and what you want to do. This is a good opportunity, Linda, to also be sure that your beneficiaries are lined up on your 401k. When you opened that account years ago, you had named beneficiaries, I’m sure. And you want to look at your primary beneficiaries and also your contingent beneficiaries. And your contingent beneficiaries are those who get the money when perhaps the primary beneficiary isn’t there, and whatever it says in that 401k statement, that 401k form is going to supersede whatever you may say in your will or your trust. So be sure that that beneficiary is current.
(32:42):
That’s very important. You’re right. Yep. Okay. Thank you so much. You’re
(32:47):
Welcome, Linda. Appreciate the call.
(32:50):
Thank you so much, Linda. If you want to join the conversation, then the number is 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO. We have Rodney OBE with the team at Certified Financial Group standing by off the air to answer your question if it’s of a personal or a specific numbers nature or if the question pops into your head as we sign off here on today’s episode of On the Money. One more segment coming up though. And if you want to talk to Rodney Obe off the air, that number is 8 6 9 9 8 0 0 4 0 7 8 6 9 9800 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. If you’ve got a question for the team at Certified Financial Group, Rodney OBE standing by off the air as we come to a close, the number to call him is eight six nine ninety eight hundred. Currently though we have Glenda on hold. Go ahead Glenda, you’re on the air.
(34:02):
Good morning, Glenda.
(34:03):
Hi. Hi. Good morning. What’s up? My mother is 90 years old. She has an annuity that she has had for a long time. I don’t know exactly how long, but I guess it’s worth 21,000 at this point. What is an annuity and what do you suggest she do with it, if anything?
(34:21):
Well, if she doesn’t need the money, I would suggest she hold onto it because when she cashes it out, whatever gain she had on, it’ll be taxable as ordinary income to her when she passes on, she has a named beneficiary, may want to check who those beneficiaries are. She may want to check and when that time happens, it’ll pass automatically, avoid probate to the beneficiaries and the beneficiaries then have a five-year timeframe in which to drain it out and pay the taxes on the gain, only the gain, not the total amount. Now for our listeners that may be faced with this situation, I wish I’d had known this because my mom had an annuity when she passed on and I was not aware of this. There is a unique program that if you do this within the first year, you can continue the tax deferral for the beneficiaries, but it’s got to be done within the first year.
(35:09):
So if there’s any listeners out there that perhaps has had a parent or a loved one pass on and you’re looking at the caching in the annuity, think twice because there may be a way for you to avoid the taxation on that or at least push it out into the future if you’re interested in that. So if you have any interest in that, you can contact our office and we are here to help you with that. Want to circle back to score my funds, Josh, we haven’t talked about that in a while. It’s an opportunity for our listeners to get their IRAs 4 0 1 Ks or brokerage account mutual funds or ETFs scored. All you do is score my funds.com. You put in the information about your funds, we will send you a report within 48 hours to give you a quality rating on those funds. It’s an in-depth look to looking at 11 distinct criteria to tell you if your funds meet our criteria for investments. So that’s score my funds.com. We’ve got a couple of workshops coming up real quick. Charles
(36:02):
Scores My funds is a great service that we provide for folks. It’s just a lot of great information that helps folks really just kind of understand what their investments are. Head folks where we’ve done that for ’em and they’re very surprised that investments that they bought 10, 15 years ago they thought were high quality investments. All of a sudden they realized manager might’ve left. They might have very underperformed the market over multiple years or their expenses might’ve shot up and that mutual fund that they thought was a great investment is not a good one today, especially when you go through our criteria. So it’s an
(36:35):
Opportunity in depth
(36:36):
Workshops. In terms of those workshops, we have two very popular ones, healthcare Options and Retirement, which is going to be hosted by Gary on Saturday, May 18th from 10 to 12:00 PM That’s a very popular one as well as my social security one that I do on social security planning, basic rules and claiming strategies on Saturday May 29th from six 30 to 8:00 PM Highly recommend if either of these two workshops pique your interest, go onto our website financial group.com and register for these. Do fill up very quickly and of course if I would highly recommend registering for those today, if that’s of interest to you. It’s great information. It’s all free information. Everyone who attends these things come out with something new that they’ve learned that they didn’t realize, especially when it comes to those two things that impact all of us here in terms of decisions around Medicare. Then decisions around social security, when to file, how to claim, and if you make some critical mistakes around that, it can really impact both you and your loved ones later in life.
(37:40):
So go to our website, that’s financial group.com. They’re absolutely free. We hold these workshops in our learning center. We can accommodate about 35 people very comfortably. Hope to see you there and hope to see some of our listeners at the Sable Point, I’m sorry, village on the Green in Sable Point right up here in Longwood. Next Saturday morning we do our live show live, so go to our website to click on events, get more information there and hope to see you next Saturday.
(38:02):
That’s right, that’s next Saturday, May 4th. If you want to go out to Village on the Green watch, Joe Bur do the show live on the air. I’ll be in your ears here in the building, but it’ll be fun environment out there. Watch the radio, hang around afterwards for some snacks and refreshments. It gets again on the Money. Live at Village on the Green. You have just listened to this episode of On the Money Where we are Planning tomorrow Today with the Certified Financial Group.
