Financial Planning Podcast Hosted By Certified Financial Planners

The Great Interest Rate Debate of 2024 Continues | Transcript

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.

Stay tuned for on the Money Central Florida’s most listened to financial call and show Bronte You by Certified Financial Group in Altamont Springs. It’s the only show hosted exclusively by certified financial planner professionals. Monday through Friday, their CFPs provide financial planning and investment advice for a fee. But on Saturdays the advice is absolutely free and has been for more than 30 years. For their WDBO listeners, if you have a financial question you want answered by real fiduciaries, the lines are wide open. Call five 80 WDBO, that’s 8 4 4 5 80 WDBO at Enjoy the show.

Welcome to On the Money here on WDBO 1 0 7 3 FM AM five 80, always streaming. Live inside your WDBO app or your W dbo This is on well WDBO If you want to join the conversation, 8 4 4 5 8 0 9 3 2 6. If you want to know more about the conversation, well that’s what this is. This is on the money brought to you by the Certified Financial Group. Answering your financial questions live every Saturday at 9:00 AM for like 175 years now. Something on WDBO, it’s been quite some time here with the certified financial group, always bringing in certified financial planners to the radio station. Answering your calls, we got Rodney OBE and Aaron Burt in studio today. How are we doing today, gentlemen?

We’re doing great. How are you doing Josh?

Doing just fine. Just fine.

We were just lamenting or talking about the thunderstorm that rolled through last night and how it woke both of us up, Rodney and I, and he asked how long it went on for. I said, I don’t know. I rolled everyone back to sleep. I don’t really

Know. I was up for maybe three seconds to the point where I heard it again on the weather this morning and I forgot all about it. I thought it maybe was a dream.

Yeah, I know. I guess that was real. Same kind of thing happened to me as well. So Rodney and I are not here to talk about thunderstorms though. We could probably talk about that for an hour. Something else electric. Yeah, we’ll talk about that. Some other electric items, but Rodney and I are here to talk about anything having to do with your financial situation Monday through Friday. Rodney and I and the other 14 certified financial planner professionals here in our offices and Altamont Springs meet with clients and discuss things dealing with their financial life. We spend a lot of time talking about retirement planning and social security planning and insurance planning and investment planning and all these planning words that we deal with day in and day out. And really that’s what we spend the majority of our time doing. Actually, I had a client come in yesterday and say, what do you CFPs do when you’re not meeting with clients?

And I thought that was an interesting question. And when we’re not meeting with clients, we’re either learning, we’re preparing for meetings with clients, we’re bringing in new clients and answering emails and calls and providing advice really I feel like 24 hours a day, seven days a week. And fortunately for all of you out there listening right now, we are here to provide advice to you about anything having to do with your financial life. So if you have a question about stocks or bonds or mutual funds or annuities or long-term healthcare or life insurance or real estate or we’re going to talk about interest rates here in a little bit. But anything having to do with your financial advice or financial life, Rodney and I are here to provide advice in there or the lines are absolutely wide open. So if you have a call or a question, give us a call at these magic numbers. Go ahead Josh, give me the

Magic numbers are as follows. 8 4 4 5 8 0 9 3 2 6 8 4 4 5 80 WDBO or you’re more than welcome to open up your WDBO app and send us an open mic with that question. We got certified financial planners, Aaron Bur and Rodney Obe here on the air answering your questions. And we’ll begin the show today with our topic, which as Aaron mentioned earlier, the great interest rate debate of 2024 continues.

That’s right, Josh. If you look back to the beginning of the year, the Fed was actually talking about lowering interest rates.

Yeah, actually going back to last year I believe is when it started off that rally in the second or the fourth quarter of last year.

And there was an anticipation of three cuts in 20 24, 3 0.25% reductions to the

Rate. Why is that important for our listeners out there? What do interest rates have to do with their life, their world, their portfolio?

Well the markets, as you know, Aaron’s driven by corporate profits and if you lower interest rates, then corporations pay less for debt,

Which then means that they’re

More, increases their profit profits and makes ’em more profitable,

Which generally is good for their bottom line, which is good for the anticipation of future earnings, which then drives stock prices.

Exactly. And the anticipation of that is what drove the market in January in February even. But what we’ve found here in the last couple weeks is that inflation is a little bit more stubborn than everyone had anticipated. It’s still hovering around 3% and as you know, the fed target that they’ve reiterated over and over again is 2%.

You think we’ll get down there.

I think we will, but it may take a little bit more time than everybody thought,

Which is why the anticipation for interest rates is continuing to be elevated.


But the other bad thing about interest rates is on the fixed income side as well, right? So what’s happening on the fixed income side with interest rates,

So if rates go up, then bond prices go down, right? And that’s what we’ve witnessed in 2022 as rates are going up. So swiftly there’s been an anticipation if rates go down, that bond prices would actually go up. So that’s been delayed as well in conjunction with this whole delay in reductions in interest rates.

So the interest rates rising in 2022 is really what drove the markets that year as they continue to raise rates. The stock market got hit because of the anticipation that those corporate earnings would be less and less and less. And at the time they had no idea of when it would stop. And the other thing it was doing is it was killing bond prices. The bond prices were falling down and down and down. And so it was kind of that double whammy. Double whammy, the stocks going down and the bonds going up. And it was one of those times where everything kind of became correlated in 2022.

Exactly. So the analogy that people have made with inflation is that it’s kind of like your golf game. If you start out and you’re shooting 1 30, 1 20, 1 30, it’s easy to get to a hundred. But if you want to get below a hundred, is it

Easy to get to a hundred?

Well, not speaking from experience, that’s what I’ve been told. Sure it’s easy to get to a hundred, but when you want to actually get below a hundred and even below 90, it gets increasingly difficult. And it’s similar with inflation. It’s easy to get from 9% to five or 6%, but we’ve seen that it’s taken a little bit more time to get to the 2% target. Got it. We’re hovering around 3% right now.

Now there are some advantages to the interest rates going up, right. Rodney, what are the advantages, the interest rates going up? What’s some of the positive stuff that’s out there that we’re seeing?

Well, it puts the brakes on the economy, right? If the economy’s overheating and prices are because of inflation, prices are going up, it slows that down.

Sure. But if you’ve got money sitting in money market or in a savings account or in any of those other kind of fixed vehicles, you’ve really been enjoying some increased interest lately. Exactly. We’re still seeing money market rates north of 5%. We’re seeing short-term treasuries north of 5% for a year. So all the stuff on the short side of the curve, one year or less has really been the rate, the return that you’re getting on those vehicles has really been elevated. So if you have some cash sitting on the sidelines sitting in one of those bank accounts earning zero, which is what we still see with a lot of our clients, earning not a lot of money at all. There are some very good opportunities out there, some extremely safe money market, short-term treasury type investments where you can be earning north of 5% for a year or so.

And it’s interesting, we see a lot of clients, a lot of the clients have been bringing us cash that they’ve had sitting in the bank and they’re pulling up their bank statements and they’re saying, well, why did I earn 10 bucks on my $500,000 I have sitting in a bank or whatever the number might be. And it just goes to show that the banks haven’t caught up on those checking account savings or the savings interest rates for the most part. And since they’re still all lagging behind, they’re still some really good opportunities to transition some of that cash over into some higher yielding vehicles. Again, safer because it’s in the money markets. Even CD rates are going up and fixed annuity rates are going up. And again, those short-term treasury rates are all still elevated because of the rise of the interest rates. Now when they start cutting rates, the opposite’s going to happen. It’s going to happen, but for right now you can kind of enjoy it while it’s available,

Which as you know for retirees, the heavier weighting to the fixed income securities, this has helped them a lot.

Oh yeah. And that’s part of what we do planning when we meet with clients, as I mentioned earlier, we meet with a lot of clients and do retirement planning and do some modeling for them. And some of the things that we like to focus on is in the short term, especially when they’re first starting retirement, is to build up a little war chest of cash to weather the storms and the volatility that’s eventually going to happen in the market. And so if you do have that war chest as you head into retirement, that safety net or emergency fund as you might say, and if you can earn some interest on it, that just makes it even better and kind of supercharges those first couple of years as you start transitioning from earning a paycheck to starting to withdraw and use your account as your paycheck going forward. So

To your point earlier, it was probably weekly I talked to someone who’s still getting 1.2% in their checking account. Oh yeah. And they’re shocked to hear that they can get 5%. Oh

Yeah. We see it all the time as well.

Safe money market account.

And it’s funny too because clients will come and see us or prospects will come and see us and they’ll hand us a statement from their bank and as soon as I see the name at the top of the bank, I know exactly what’s about to happen because they just don’t realize it, don’t know the opportunities that are out there, don’t realize that there are some vehicles out there paying a much, much higher. I mean the difference between 1% and 5% is

Huge. It’s huge.

It’s huge. Especially if you’re basically doing it with zero risk in a government money market fund or a short-term treasury. And again, that’s what we do with clients day in and day out. We point out or provide opportunities for them to increase or improve their financial situation. And a lot of times it’s not even a major change that they have to do. It’s little things around the edges, whether it’s trying to figure out ways to maximize earnings on their cash or repositioning their portfolio for them so that they’re diversifying out of the large cap growth stocks if that’s what they’ve been in, and reducing their risk to get further diversification with the portfolio. And that’s one of the things we focus on as well. I’ll just bring this up because I mentioned large cap growth stocks. We see a lot of clients who walk in who are just overloaded right now in the large cap growth space because that’s been doing pretty well over the last couple of years.

And the idea behind doing planning and when we meet with clients is trying to figure out how conservatively they can invest their money and still have a high probability of not running out of money at their life expectancy. And so I always use the analogy, it’s like you’re going on a trip, if you can get there going 60 safely, why would we hit the gas and go try to get there going 90 just to get there a little bit faster. So again, that’s what Rodney and I and the other 14 certified financial planners do here at the Certified Financial group. And we love to take your questions. And so I know we’re coming up to a break here. You want to give out those numbers one more time, Josh?

You got it. 8 4 5 8 0 9 3 2 6 is the number to call Rodney OBE and Aaron Bird with the Certified Financial Group answering your financial questions. The number to call again is eight four four five eighty WDBO or send in your question via the WDBO open mic inside the WDBO app you are listening to on the money where we’re planning tomorrow today with the Certified Financial Group.

Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming inside your WDBO app, Rodney OBE and Aaron Burt, certified financial planners from the Certified Financial Group in studio today. Answering your question if you want to join the conversation, the number is 8 4 4 5 8 0 9 3 2 6. Maybe you want to make sure your retirement plan is on schedule or maybe you want to just start one. It’s never too late to start one. The best time is 20 years ago. The second best time to start one is today. So go ahead and pick up the phone five eight zero nine three two six eight four four five eighty WDBO or send in your open mic using that free WDBO app.

Alright, so we are here, Rodney and I are here taking your questions. As we mentioned during before the break, anything having to do with your personal financial situation. Like we said earlier, Rodney and I and the other 14 certified financial planner professionals are taking questions from our clients day in and day out Monday through Friday. And today we are here to do that for you guys. If you have any questions to us, a call. And we also have Win Smith, another certified financial planner professional taking calls off the air. So if you’re interested in giving win a call, if you’re a little shy to get on the air, feel free to give him a call at eight six nine nine eight zero zero. That is our office number and he’s taking calls there at 0 7 8 6 9 9 8 0 0. If he does not answer, please leave him a message and he’ll give you a call right back. That means he’s on a call already. So again, win Smith is taking calls off the air right now here at our office. I think we wanted to jump to and talk about our seminars that are coming up, Rodney.

That’s right. We’ve got actually a week from today from 10 to noon, Gary Ley will be hosting Healthcare Options in retirement. That one fills up quick, so want to sign up for that one.

What else we got going on?

And then we’ve got Social Security planning. That’s with Charles Curry, that’s May 29th. That’s actually a Wednesday. That’s from six 30 to 8:00 PM hosted by Charles.

If you’re interested in signing up for any of those seminars, you can go to our website financial At the very top, I think it says workshops up there, you can click and register. Like Rodney said though, Gary’s seminar on healthcare, actually social security fills up pretty fast as well. So all the seminars have been pretty popular. Last time mayor was standing room only here at our office. There’s no cost to attend. It’s really just an opportunity to get some free information. It’s our offering to educate the general public and give you guys an opportunity too to get to know us, get to know the planner that you’re meeting with, get some good information, usually get some snacks, and again, leave your checkbook at home. There’s absolutely no cost to attend any of those. Gary’s again is on Saturday, a week from today here in our office. And then Wednesday, was it the 29th?

Yeah, May 29th.

It’s Charles Curry and I think that’s a Wednesday here in our office as well.

It is, yeah, it’s six 30 to 8:00 PM

So again, just an opportunity and if you’ve never been to our website, there’s lots of great tools, information, bios on all the planners. You can click, you can message any of us directly through our website. It’s a great resource if you’ve never been on there, financial Again, financial, our contact information is on there as well. And you can sign up for seminars and get some great information on our website. So I saw we got a text question come in there, Josh, we got time to hit that or are we going to hit that after the break?

It’s probably best if we can dedicate a little more time after the break to that topic.

Okay, super. So what else? Let’s talk about score my funds. So we’re talking about the web and I’ll just drop in score my is another website that we sponsor. I hear the background music plans, that means we’re coming up to a break, but I can go back to score my funds when we get back from the 30 minute or the half hour break here and tell you guys what that’s all about and how we manage score and evaluate mutual funds and exchange traded funds. And we’ll do that for you for free. So more information on that after the break here and take it away.

Rodney Oby, Aaron Bird, certified financial Planners with the Certified Financial Grouping Studio. Answering your questions, talking about the things that people want to hear about here on the Money show, 8 4 5 8 0 9 3 2 6 is the number to call 8 4 4 5 80 WDBO. If you want to join the conversation or send in your open mic using the free WDBO app you are listening to on the Money where we are planning tomorrow


With the Certified Financial


Welcome back to On the Money Central. Florida’s most listened to financial call and show brought 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.

Welcome back to On the Money right here on WDBO 1 0 7 3 FM AM five 80, always streaming live in your WDBO app, 8 4 4 5 8 0 9 3 2 6 is the number to call if you got a question about your financial future, your retirement funds, your 401k, your Roth IRA, all kinds of letters and numbers that only Aaron Bur and Rodney Ownby with the certified financial group understand they can break down for you. That’s what they do Monday through Friday every day at the office there in Longwood at Certified Financial Group and live on the air right now and every Saturday morning from nine to 10:00 AM 8 4 4 5 80 WDBO send in your open mic using that free WDBO app. And let’s say somebody listening right now, Rodney and Aaron say they have a couple of funds and they want to see what the score is on their funds. You have a pretty handy tool for that too.

Yeah, we do. And I kind of teased that before we went to the break. We have a website that we support called score my, and it’s the ability for anybody, whether it’s a prospect or client that wants to get an analysis done on the funds that they currently hold within their portfolio or their account, they can basically go in there, plug in the ticker symbols, give us their contact information so we can run the report and return it back to ’em. And then there’s no cost to do that as well. And this is the scoring system that we didn’t create. We actually license it. It was originated at the University of Pittsburgh through the Center for Fiduciary Studies and it’s a non-biased way to evaluate investments and compare investments against their peers or their peer group. And so there’s 11 distinct criteria that we look at ranging from returns to alpha and sharp ratios to style and composition and manager tenure, manager tenure and other among other things.

And then they’re all weighted and then it generates a score for us to be able to compare type investments. So whenever you’re comparing investments, and we get this question a lot actually, people are always comparing their portfolio against the market, the s and p 500 or whatever their term for the market may be. And really it’s not a fair comparison because a lot of times you don’t own the s and p 500 in your portfolio. I mean you may have an s and p 500 fund, but normally you’re much more broadly diversified than that. And so the idea is always to make sure that you’re doing a fair comparison whenever you’re comparing investments. And then that’s what we’re trying to do with our score, my funds. So score my again, you can go there, type in your tickers and provide some contact information, we’ll generate a report and send that back to you.

Again, no cost to do so and it’s just a service that we’re providing for clients and prospects. And if you’re interested, again that’s available. I will circle back also to note that if you don’t want to call and talk on the air, we do have win Smith taking calls off the air at our office number 4 0 7 8 6 9 9 8 0 0. Again 4 7 8 6 9 9800. And when is available to take your call off the air. If he does not answer, please leave a message. That means he’s on a call and he’ll call you back when he has a chance here shortly. So let’s circle back to that text question that came in, Josh,

You got it. If you want to join the conversation live on the year, the number to call is five eight zero nine three two six eight four four five eighty WDBO text message from Pete in Orlando. Pete says, I got money to invest but people I trust have told me to wait until after this year’s election. What do you guys think about that? One?

Conventional wisdom says that if you’ve taken a long-term perspective, you should invest today regardless of what’s going on around you. Because over time stocks not only be it inflation, but they grow your wealth better than any other investment vehicle. So my advice to Pete would be not to wait for some event, something that has to happen for him to be ready to invest. Now that doesn’t mean that he doesn’t build a strategy and do it in a measured way, but the conventional wisdom says to, if you’re going to invest, do it today. Don’t wait on some event,

Right? It’s irrespective of what’s actually happening in the economy or at the time or the election or the war or the interest rates or whatever is happening at the crisis du jour because there’s always something. There’s always something. There’s

Always something.

And so the idea, especially in an election year, because people always get nervous because people don’t like change and when things may change or the prospect of things changing makes people nervous. People don’t like to have their cheese moved. And so that just caused consternation. And so change is always brings about nervousness, but that’s part of the planning process that you go through or we go through is to determine what your timeframe is. Again, how aggressively or conservatively can you invest if it’s a large chunk of money, maybe your dollar cost averaging over the year to take advantage of some of the volatility that’s occurring over the next 12 months. If you need the money within 12 to 24 months, maybe you’re not investing any of it at all. So it depends on your particular situation. And so that’s part of what we do when we meet with clients is really trying to figure out how this money should be allocated position, what the time horizon is, and again, how aggressively conservatively it should be invested and then planning out those investments over a period of time if need be.

Pete should give us a call.

Yeah, Pete. Yeah, Pete, if you’re out there listening, give us a call, be happy to walk you through that process, maybe do some planning with you and kind of give you our perspective on your particular situation. But that’s a great question. Again, we get that a lot, especially


Year change is looming. And the funny thing is there’s election year every two years, so it seems like we’re always up against it. There’s not a presidential election every year, every two years, but there’s always that turnover, the election cycle, it just seems to be constant nowadays.

And to your point earlier, there’s always something happening or there’s always the anticipation of something that’s going to happen. So it never changes,

Right? And in 2022 when Russia invaded Ukraine and then the interest rates were starting to happen and then so that year was rough, but I think that had more to do with the interest rate environment, but the Russian thing didn’t help either. And then with the Palestinian war, with the Israelis going on and that invasion and all of in that whole thing occurring and it’s just, there’s always something. And so it’s really, you almost got to put that stuff, not necessarily take that into consideration, but there’s always something going on and we have this little chart, it’s like investing through time and it’s a timeline of it’s the s and p 500 I believe and how it’s grown over time and all these major world events and where they occurred on the timeline going back like 70 or 80 years and the economy, the world just keeps kind of marching on and it kind of box out some of that noise that’s occurring, but there’s always something.

And so that’s why you need someone to hold your hand, remove the emotion from that something. And that’s really why we exist is because clients at some point realize that they don’t have the fortitude to be able to stick with the program, understand the overall situation. And again, they don’t want to have that responsibility. And so that’s a large majority of our clients who are the delegator types who just don’t want to look at it, don’t want to mess with it. They want to know that somebody’s flying the airplane that’s competent up there in the cockpit and they just want to sit in the back and watch the movie and maybe have a cocktail. So that’s kind of what we do day in and day out. It looks like we have a question that came in from Sue.

That’s right. If you want to join the conversation live on the air, (844) 580-9326. Sue picked up the phone and called in from O Vito. Go ahead Sue. You’re on the air.

Yes sir. Thank you. My question is about estate planning. I’d like to set up some type of a trust for an only son, but my fear is we have no one to oversee it. So what do you do in a situation like that? I know you can get a complete stranger to do it, but we don’t feel comfortable with that. So how would we go about doing this?

Sure. So we actually get that question a lot more frequently if you could believe that. That’s something that we’ve been running into a lot lately is how do you deal with trust administration if you don’t necessarily have someone that you trust to be the trustee? A lot of words of trust going in there. Is there a particular reason why you want to put things in trust for your son rather than just letting him outright inherit it? I mean, do you want to put restrictions on his inheritance? Is that the idea?

Not really. I just think he’ll need help. He’ll need help managing it because it would be quite large.

Sure, there’s two. So in the trust, and again, let me preface this by saying I’m not an attorney, but in the trust world, so in the world of estate planning, there’s a couple of reasons why people establish trust. A trust normally is created to bypass probate. Possibly if you own multiple properties in different states, you can put it all in trust and it’ll help with the probate process going forward. But normally trusts are created to put restrictions on funds when they are inherited to remove control from the person or the beneficiary that is going to ultimately take over those funds for any particular reason. So it really depends on whether you’re trying to do that or if you just want to leave it to him outright. Now, if you want to put controls in it and you don’t have anybody that that could be in that trustee role, what you would then need to do is hire what’s called a corporate trustee.

And a corporate trustee is an attorney or someone locally who does that service, who basically just follows the rules of the trust, however it is written to provide the benefits of that trust to the individual who is the beneficiary. We deal with a lot of corporate trustees and it’s a pretty seamless process as long as the trust clearly identifies what the rules are and how they get distributions. So it’s not something that’s unusual, there just is a cost associated with it. So you have to be cognizant of the fact that if you’re hiring a corporate trustee to help manage the distributions from that trust, that there’s going to be a cost. Be happy to give you a referral if you want to call our office on Monday or shoot us an email. But we do deal with several corporate trustees in the local Orlando area,

And there are some smaller ones too. It’s not all just national firms like Fidelity. There are some smaller ones that do a good job. So we could potentially steer you in the right direction with regard to that.

Yeah, and the idea is is you sit down, you interview ’em, you talk to ’em, you get comfortable with them, and you talk through why you’re trying to set it up this way. And again, all their job is to do is follow the directions of whatever’s outlined in that trust document and make sure that the trustee or the beneficiary is aware of that and then manage the distributions, the tax return, which is another issue that they have to deal with to file the taxes and pay the taxes on the trust. And then their job is also to manage the investment manager or the investment advisor that’s hired as well. So

Well, one other quick question, what happens if the corporate trustee, they go out of business or something happens to the person? What happens to the trust then?

Yeah, there’s provisions within the trust about how, so when the trust document is written, you should have provisions in the trust about how to name successor trustees. So all of that’s outlined in the trust document when you actually create that, have you created the trust already? Has that already been done?

No. No.


Like I said, I am pretty well got everything. I don’t have to worry about probate except for one brokerage account that doesn’t allow it to be set up that way, but I just don’t think he’ll be able to manage it on his own.

Sure. So that’s again something we deal with with the children of our clients as well. We help walk them through that process when the time comes. So if you’re interested, give our office a call. I know we can help you. Our number’s 8 6 9 9 8 0 0 or you could check out our website financial and we’re up against the break here. So best of luck to you, Sue, and thank you for the call. Thank Sue. Sue,

Thank you so much, Sue. You are listening to On the Money where we’re planning Tomorrow today, the Certified Financial Group.


Back to On the Money right here on WDBO 1 0 7 3 FM AM five A, the always streaming inside your WDBO app certified financial planners, Rodney Obe and Joe’s son, Aaron Bird in the studio today. No one heard that. Moving on is in the studio today. So if you want to join the conversation, you got about four minutes left, 8 4 4 5 8 0 9 3 2 6. But more likely you’re going to want to write down this number, which they’ll be available off the air for just a few more minutes. 4 0 7 8 6 9 9 8 0 0. We have Wind Smith standing by off the air to answer any questions you may have. That number again is 4 0 7 8 6 9 9 8 0 0. Rodney Oby. Aaron Bur got a text question that came in and me being here at WDBO, I hear this word and I think of a hurricane, but this may mean something different to your world. What is Irma with two a’s I-R-M-A-A,

Our good friend Irma? I love Irma actually. I don’t really like Irma that much.

Yeah, nobody does.

Yes, Irma. So Irma is, it’s a Medicare surcharge. A lot of people don’t realize that this occurs when you’re in retirement and on Medicare. If you’re on Medicare this year, the part B premium is a hundred and seventy four, seventy and 70 cents, right? So that’s how much an individual pays for Part B. If you’re on Medicare, however, you only pay that if you make less than $206,000 as a couple in 2022. So if you made more than that, Irma comes and visits you. And Irma is the surcharge that the government charges people who earn more money than the $206,000. And so the Irma surcharge continues to increase as your income goes up. So if you go over 206,000, your iba, your premium could jump to $244. So that’s about an extra


Bucks, an extra $70 a month, by the way. Part

B, right?

Correct. Part B, part D also goes up a little bit. If you make more than 2 58, you jump up to $350 in premium. If you’re a real high earner, and this isn’t just income, it could be just income, but if you’re earning money from income or social securities included in there, dividends and capital gains and all this other stuff, or if you sell a house, which we’ve seen that hit people as well. So if you sell a house for a big chunk of money and they do that, look back, your Irma’s going to jump and it can go up as high as almost $600 a month. Your premium could be because Irma came and visited you because you were a high earner in one particular year. So that’s one of the things that we deal with.

And it stands for income related Medicare adjustment amount, right? That’s why the two,

A’s the government loves to make up those acronyms, acronyms to whether it’s a bill or a law or whatever. So that’s our friend Irma who comes and visits a lot of our clients. And then they’re always saying, well, why is my Medicare going? Actually, the question we get is, why is my social security going down? Because it’s deducted directly from your Social security and that’s because your Medicare premiums went up. So these are the things that we try to mitigate and help clients navigate day in and day out here at the certified financial group. And that’s what Rodney and I and the other 14 certified financial planner professionals do. Again, day in and day out for our clients. We talk about Irma, we talk about Medicare, we talk about social security and investing in retirement planning and helping people like Sue, who called earlier, try to figure out ways to best administer trust and pass on assets to their beneficiaries in the smartest, most efficient way, and help them manage those assets going forward. So helping people accumulate and then decumulate and get ’em to and through retirement again, that’s what we do day in and day out here at the Certified Financial Group. So if you’re interested in contacting us, you can go to our website again, financial That’s also where you can sign up for any of those seminars that we mentioned earlier, financial, or you can give us a call on Monday at four oh seven eight six nine nine eight zero. Again, 4 0 7 8 6 9 9 8 0 0 and we appreciate you all listening today.

Thank you so much, Aaron Burt, Rodney Oby with the Certified Financial Group you have just listened to on the Money Where we are planning tomorrow, today with that Certified Financial Group.


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