Speaker 1:
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:
Stay tuned for On the Money, Central Florida’s most listened to financial call-in show. Brought to you by Certified Financial Group in Altamonte 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 844-580-WDBO. That’s 844-580-WDBO. And enjoy the show.
Josh McCarthy:
Welcome to On the Money right here on WDBO 107.3 FM, AM 580. Always streaming live in the WDBO app. My name’s Josh McCarthy, sitting in studio with Nancy Hecht and Matt Murphy of the Certified Financial Group right here in Central Florida. The whole point of this show is that you have financial questions and Nancy and Matt are two certified financial planners here to answer those financial questions. And if you want to hop on the air, the number to call is 844-580-9326. 844-580-WDBO. Or feel free to send in your question via the open mic feature in the free WDBO app. Nancy, Matt, how are you guys doing today?
Matt Murphy:
We’re doing great Josh. How are you?
Josh McCarthy:
I’m doing just fine. Always excited to pick the brains of these experts I get to talk to once a week.
Matt Murphy:
What a cool intro that we switched to there. Isn’t it? Jerry Rafferty and the Baker Street? Doesn’t that song always just kind of get you in the right mood?
Josh McCarthy:
Yeah. It kind of gets you just relaxed and ready to learn. Amped up and ready to learn.
Matt Murphy:
It does. So I’m really excited to be here for the second week in a row as the listeners from last week would know that Joe is on vacation, a well-deserved vacation. So Joe, if you’re listening out there, I hope you’re enjoying the tail end of your time away. Nancy and I are here this morning and I’m going to make Nancy blush a little bit before we get started.
Nancy Hecht:
All right, fine.
Matt Murphy:
So just to give the listeners a little glimpse into who Nancy Hecht is, you’ve probably listened to her over the years, but a little inside story here. So a few weeks ago, one of our colleagues in the office was sick. He and his whole family I think got sick for quite a while. And Nancy took it upon herself to make a big pot of chicken soup for this colleague and his entire family. Brought it into the office and didn’t make a fanfare out of it, but just did it out of the kindness of her heart. So word got around that that happened and it was no surprise to any of us because that’s just kind of who Nancy is. So Nancy, that’s just kind of a little bit of a plug for you on the personal side. And I see you blushing already.
Nancy Hecht:
I’m glad I didn’t put any blush on today.
Matt Murphy:
All right. All right.
Nancy Hecht:
A little Jewish penicillin.
Matt Murphy:
There you go. Exactly. Apparently it worked real well, because he was back in the office in short order after that. But this morning we are here from 9 to 10 as we are every Saturday morning to answer your questions about retirement planning, financial planning, IRAs, 401Ks, 403Bs, pension, life insurance, annuities, mortgages, reverse mortgages, anything on your mind regarding financial planning or investment decisions that you have. These are things that we charge a fee for our clients Monday through Friday, but on Saturday morning, as the listeners know, we offer that advice completely free. And so we would hope that those of you listening out there will be brave enough to give us a call. I’m sure there’s been some burning questions that people have throughout the weeks that they’d like to get answered here live on the radio. And so if you are inclined to do so, we would ask that you just call these magic numbers.
Josh McCarthy:
Those numbers are 844-580-9326. 844-580-WDBO. Or if you find yourself streaming in the WDBO app, go ahead and push that open mic button and send in your question that way. Today’s topic, how shall I fund my retirement?
Nancy Hecht:
Yes.
Josh McCarthy:
Go ahead.
Nancy Hecht:
So we spend years working with people and helping them save for their retirement and they finally hang it up. And now the question is, how do I fund my lifestyle once I’m in retirement? So I have a variety of different categories that I think, and Matt, you can tune in if you want, if you disagree or don’t with me. And the order in which people should access different buckets of money to fund their retirement. I am constantly talking about cash and how important having cash reserves are. I’m not talking about the emergency fund money. There’s emergency fund money and then there’s money that you’re going to be using to fund your lifestyle. So a lot of people like to look at having about six months, hold on one second please, to 12 months worth of income in checking, savings, money market that they can then start paying themselves out of that account.
So a cash account, checking, savings, money market is going to earn little or no interest. So from a tax standpoint, it’s not going to be a big deal to access money from cash. If you have some type of retirement annuity or a pension, then that’s a regular payment that you can count on also. Annuities, depending on how you’ve structured them and what the options are for withdrawal, will either be all income first, which is going to be a hundred percent taxable, or part income and part return of principle, which will be partially taxable. So again, you can manage that tax portion of how you’re getting income.
And then I like looking at the non-retirement accounts. The various different mutual fund or stock portfolios that you have that are just joint tenants with rights of survivorship or individual accounts that you have a transfer on death designation. If something’s paying capital gains and then you stop reinvesting those and are paying them out to yourself, then you’ll have a quarterly or annual boost in income that is generally taxed at a lower rate than ordinary income is. And then of course there’s regular dividends that are paid from various different mutual funds on a monthly basis. Those will be taxed at your ordinary income rates.
The next category is Roth IRAs. And under current tax law, everything that is in a Roth account as long as it’s been in there for five years or more, will accumulate on a tax-free basis, which means whatever you withdraw from that is not taxable. And then of course we have the traditional IRAs. So under current tax laws you can defer until age 75, taking your required minimum distributions. So you can look at what your tax bracket is from the time you retire until you have to actually start taking those minimum distributions and play around with, if I take X number of dollars out of my IRA, I know it’s going to be a hundred percent taxable, but my bracket is this rate right now. So you can see that I’m really tax adverse and tax planning is really important in funding your lifestyle. So it is a big picture look. Those are my attitudes on how to fund your retirement. Matt, anything to add?
Matt Murphy:
Yes, I have some questions on that actually Nancy. But before we do that, it looks like we got a call coming in, Josh, is that right?
Josh McCarthy:
That’s right. Alan has given us a call from Sarasota asking about an IRA question. Go ahead, Alan. You’re on the air.
Nancy Hecht:
Good morning.
Speaker 6:
Thank you. So my question is, my wife has an IRA traditional and she passed away about four years ago. I’m the beneficiary and the executor of her estate. And I’m wondering whether I have to transfer her IRA into my IRA? Or can I leave it where it’s at and invest it? And the key question is whether it sits in her portfolio or my portfolio, can an IRA fund be invested into a private corporation as the equity participation?
Nancy Hecht:
Well, I know that some private investments have been done through IRA accounts. You have to have a third party administrator handling that. If you transfer her IRA into your own, then you’re going to go under the rules for required minimum distributions in your own account as one big one. And you can still do that private investment if it’s all in your name versus in your deceased wife’s name. I’ve never kept an IRA for a spouse where there’s been a surviving spouse as opposed to children or siblings as the beneficiaries in that person’s name.
Matt Murphy:
There used to be, I think, geez, before 2015 maybe when they changed some of the rules on this. I may be wrong on the date on that, maybe 2017. There used to be occasions where it made sense to have a beneficiary IRA for a deceased spouse. Very rare, but I don’t know, 99% of the time we see the decedent’s IRA folded into the surviving spouse’s IRA. And so on the subject of the private investment or private equity inside of an IRA, my understanding is that you can set up, as Nancy said, a third party or what they would call a self-directed IRA. Similar to if you wanted to own physical real estate in an IRA. Most of the large brokerage house custodians will not accommodate that, the Fidelity, Schwabs, Vanguards. So you’d have to set up a separate self-directed IRA that could then house that. Because there’s different issues with investments that aren’t valued on a daily or real-time basis like real estate, like private investment that those types of companies are uniquely suited to handle and the large brokerages generally are not. So Alan, thanks for your call. It’s interesting to know that you’re listening to us from all the way over in Sarasota, and I’m just curious, you’re listening on the radio?
Speaker 6:
On the radio.
Matt Murphy:
Okay. AM or FM?
Speaker 6:
AM.
Matt Murphy:
AM. Okay.
Nancy Hecht:
Good for you. I’m a big fan of AM.
Matt Murphy:
Excellent, excellent.
Speaker 6:
It feeds into the cell phone pickup by an AM item. Listen to your show on a regular basis. I have two other questions if I can make them brief?
Nancy Hecht:
Sure.
Matt Murphy:
Sure.
Nancy Hecht:
Go ahead.
Speaker 6:
So I heard you mention RMDs and I am not yet 75, so I don’t have to touch my IRA for the RMDs until I’m 75?
Nancy Hecht:
Correct.
Speaker 6:
And if that’s correct, what is the annual amount that I have to remove on a percentage basis?
Nancy Hecht:
So let’s say you’re going to turn 75 next year. The 1230 balance of your IRA this year will determine how much you have to take out next year. And there’s a percentage that has to come out every single year and it’s based on the end of year value for the prior year. And the percentage used to start at 3.65%. I don’t know what it is right now.
Matt Murphy:
It’s gone down a little.
Nancy Hecht:
Okay. So it’s a little bit less than that and it goes up every single year. But there are tables that are readily available. And if you have a custodian managing your IRA for you, they generally will let you know what your required minimum distribution is for the following year. And as long as you take it out within the calendar year of the RMD, you’re fine. You can take it out monthly, you can take it out quarterly, you can take it all in a lump sum, whatever works best for your cashflow needs.
Matt Murphy:
And it’s just to clarify, it’s 73, I think we said 75 a couple times. 73 would be the required minimum distribution age for you, Alan.
Nancy Hecht:
I did say 75.
Speaker 6:
Okay. So that’s the information that I needed. Last two questions. Can your practice act as a custodian for an IRA? Do I have to go to a different third party?
Matt Murphy:
So we typically clear through either Fidelity or Schwab, I guess slash TD Ameritrade now. Those two have merged together. So we manage the accounts here in house, but the assets are actually parked or are custodied as we would say with those two firms.
Nancy Hecht:
And we have clients all over the state, all over the country, and some offshore. So just because you’re not here-
Speaker 6:
Well I’ve been in and out of Orlando on a regular basis. So I’ll make an appointment with your office to come in and set up a new account.
Matt Murphy:
Sounds real good.
Nancy Hecht:
That would be wonderful. Look forward to meeting you. Thank you for your phone call.
Matt Murphy:
Yep. Thanks for the call, Alan. I think I hear the music coming on, Josh, so take it away for us.
Josh McCarthy:
Thank you so much, Matt and Nancy. If you want to hop on the air with the Certified Financial Planners, the number to call is 844-580-9326. 844-580-WDBO. Or feel free to send us your question using the free WDBO app. More of On the Money coming right up. You are listening to On the Money brought to you by the Certified Financial Group. We’re planning tomorrow, today. Right here on WDBO.
Welcome back to On the Money right here on WDBO. We got Certified Financial Planners, Nancy Hecht and Matt Murphy here, answering your financial questions right here on WDBO, AM 580, 107.3 FM. Always streaming in the WDBO app. If you want to hop on the air and talk to these experts, the number to call is 844-580-9326. 844-580-WDBO. We have Haynes who called in during the break. Haynes, go ahead, you’re on the air.
Nancy Hecht:
Hi Haynes.
Speaker 7:
Hi. Good morning.
Nancy Hecht:
Good morning. What can we do for you?
Speaker 7:
My question is, once the person becomes qualified as a certified financial planner or an accredited investment fiduciary, what must they do to maintain those titles?
Nancy Hecht:
Copious amounts of continuing education. It’s a lifelong education, Haynes. We constantly have to take classes and re-certify our licenses.
Matt Murphy:
And I just add to that too, Nancy. In various subjects. So continuing education with the certified financial planner designation encompasses investment planning, estate planning, tax planning, insurance planning. And the good thing about that is, as you probably know, Haynes, these things change over time, particularly things like the tax code and the estate planning limits and so forth. So it’s really important that even though it’s kind of drudgery sometimes, candidly, when we have to do that continuing education, and by the way, it’s expensive in some cases.
Nancy Hecht:
Yes.
Matt Murphy:
But nevertheless it’s important because we want to make sure that we’re being as up-to-date as possible so that we can provide our clients with the most timely information that we can.
Speaker 7:
Very good. I appreciate your help. Thank you.
Nancy Hecht:
Thank you. Yeah, continuing ed is a constant bane of my existence, necessary evil. But as Matt said, there’s always gems in the classes.
Matt Murphy:
There are. I feel like every single time I do one of those classes, I’m dreading it going into it and then I walk away and I say, “Gosh, I’m glad I did that because I learned this or I learned that.” So I think Haynes, we appreciate the call, appreciate your interest. And what we do is certified financial planners and fiduciaries. And I think we’ve got another end of the segment here coming up. Next segment, we’re going to cover our workshops and talk about continue the discussion that Nancy brought up this morning about funding your retirement.
Josh McCarthy:
Thank you so much, Matt Murphy, Nancy Hecht with the Certified Financial Group. If you want to hop on the air, the number to call is 844-580-9326. 844-580-WDBO. You are listening to On the Money where we’re planning tomorrow, today, with the Certified Financial Group.
Speaker 2:
Welcome back to On the Money. Central Florida’s most listened to financial call-in show. Brought to you by Certified Financial Group in Altamonte 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 844-580-WDBO. That’s 844-5-80-WDBO. And enjoy the rest of the show.
Josh McCarthy:
Welcome back to On the Money right here on WDBO, 107.3 FM, AM 580, always streaming live in your very own WDBO app. Take us with you on the go. Listen to us anywhere around the world as long as you got some internet around you. If you want to hop on the air, we got Matt Murphy and Nancy Hecht joining us live, answering your financial questions from the Certified Financial group. The number to call is 844-580-9326. 844-580-WDBO. And guys, if they have a bit of a more question of the personal nature, there’s a number just for them.
Nancy Hecht:
Yes. If you have a question that you think this is going to take more than a minute or two, please call Wynn Smith at 407-869-9800 and he would be happy to spend as much time as necessary answering your calls.
Matt Murphy:
And Nancy, I understand we have a few workshops coming up here over the next month. You want to tell the listeners about those?
Nancy Hecht:
I would be happy to. Okay. So as people have been hearing on the commercials, on July 19th from 6:30 to 7:30 here in our offices, Savvy Cybersecurity, 10 threats Every Person and Business Faces, hosted by Charles Curry. And then on July 29th from 10:00 AM to noon, I think that’s at the WDBO Studios, Tax Efficient Investing and Distribution Strategies hosted by Gary Abeley. August 9th, Social Security Planning Basics and Claiming Strategies hosted by Charles Curry. That’s going to be in our office. And what time is that?
Matt Murphy:
I’m guessing that’s a 6:30.
Nancy Hecht:
That’s a 6:30 to-
Matt Murphy:
7:30.
Nancy Hecht:
7:30. Here in our offices. If you go to our website, financialgroup.com, there’s a tab for workshops. I highly suggest if you’re interested in any of them that you make a reservation now because space tends to fill up rather quickly.
Matt Murphy:
And Josh, you can correct me on this, but I think on the July 29th workshop that Gary’s doing there at the studio, I think the radio show is going to be held live immediately prior to that from 9 to 10. I don’t know if you know that offhand, Josh or not.
Josh McCarthy:
I have nothing to correct you. You are a hundred percent right.
Matt Murphy:
Okay. All right, excellent.
Josh McCarthy:
Doing the show live in-house from 9 to 10 and then we switch our brains from listening to full-time learning classroom style right at 10:00 AM.
Nancy Hecht:
Here’s your path.
Josh McCarthy:
Yes, indeed. Thank you.
Nancy Hecht:
Being correct.
Matt Murphy:
And so just for anybody that’s hearing that from personal experience, Josh, you remember we did that. I did that a couple months ago, I think at the end of April. We did the radio show live followed by a workshop. And it is so much fun doing the radio show, I think not only for us, but I think the listeners that came, you get a chance to see the studio, kind of see how we do what we do. So when you go to sign up for the workshop, as Nancy had mentioned on our website, financialgroup.com, go to the workshops tab. If you find that one that Gary’s doing on July the 29th, you’ll see an option to sign up for either the workshop or the radio show or both. So if you’re planning on attending that workshop, I would strongly encourage you to go ahead and sign up for the radio show as well. Got to get there a little bit earlier, but I promise you it will be worth your time.
So Nancy, going back to, I mentioned earlier that I had a couple of questions on your topic of how shall I fund my retirement. The question I have for you is, what would you see is the biggest mistake that people make with regards to where they start drawing their retirement funds from?
Nancy Hecht:
I would say not thinking about, first of all, how much they actually need. So retirement cashflow planning is important. But I think taxes, which is something that I said through every single case, is one of the biggest factors on where to draw from. Because you’re looking at, I need $5,000 a month. All right, I’m going to pull $5,000 out of ABC account. But if it is something that’s taxable, you don’t have that full $5,000 that’s spendable. So I think that that’s what’s important to look at. Where are you going to draw from and what is going to give you the net spendable income to fund your retirement?
Matt Murphy:
And a lot of times people fail to realize in their working years, the tax situation let’s say, or some of the tax benefits that you get while you’re in your working years, maybe you’re still paying a mortgage, you’re getting a deduction for the interest on that. Maybe you have kids at home, you’re getting a child tax credit, you’re contributing to a retirement account, your 401Ks, your IRAs, you’re getting tax benefits for those. Once you get into retirement, generally speaking, maybe you still have a mortgage, but the rest of that stuff goes away. And so the calculations that are involved with figuring out, as Nancy said, what your after tax income is going to be really require a lot of thought and attention and diligence. And that’s one of the things that we do in our practice is help folks figure out what that tax situation is going to look like.
Nancy Hecht:
Well, yes, and just throughout the term retirement cashflow planning, this is something that we do for all of our clients that request it. We do charge a fee for it. But it looks at from now through for most people late nineties, trying to be aggressive with life expectancy and looking at all the different sources of income, looking at the taxes that are paid under current tax law and owed throughout the years. And then succession planning is extremely important as Matt had mentioned, estate planning. Making sure that you have your accounts titled properly, so they’ll go from you to whomever you wish them to go to, whether it’s a person or a charity without having to pay probate taxes or additional income taxes because you failed to name a beneficiary properly.
Matt Murphy:
You mentioned something earlier too about cash and that resonated with me, because one of the things that I think we learned in 2020 in particular is cash is king. And even though cash really at that time wasn’t paying anything, although by the way the interest rate that you’re getting on cash today, generally speaking, is considerably higher than it was a few years ago.
Nancy Hecht:
Yes, many money markets are paying between four and 5%.
Matt Murphy:
They are, yeah. And three years ago they were paying 0.01%. But even that aside, I’ve always told clients the money that you have in cash, whatever the emergency fund plus the cash in your portfolio, obviously we always want to try and get the highest rate of return that we can on that cash, but that’s not really the purpose for that cash is to earn a rate of return. Where we have that cash for a specific purpose. And I think what we learned in 2020 was people were losing their job, businesses were being put out of business. And to me that standard six months of living expenses set aside in an emergency fund in many cases didn’t prove to be enough.
And everybody’s situation is different obviously. And sometimes if you’re holding onto too much cash, yes you need to get that invested. But in today’s day and age, I really feel like that suggestion of how much should be in cash needs to be modified a little bit and increased because the world’s so unpredictable. And when things like COVID happen, the more cash you have, the better position you’re in, the less… You don’t have to operate out of desperation. And that’s kind of the idea with the income in retirement too. Having money set aside in cash, you don’t have to sell investments when they’re down in order to produce your monthly income.
Nancy Hecht:
I always ask people what their comfort zone is. I can’t tell somebody what the proper amount of cash is for them. I have a number of clients that a hundred thousand or more is what they always want to have in cash. And seeing as we’re in the midst of hurricane season, having actual paper money in your house right now is also important. We saw during hurricanes or storms that had come through in the past, the gas station may be open, but you can’t use your ATM. But they’ll take paper money. Cash is king, still, in a lot of cases.
Matt Murphy:
Yes indeed. So I know Josh, that we had I think a question that came in on the tech side of things.
Josh McCarthy:
That’s right. We have an open mic. Feel free to send in your questions via the free WDBO app. Let’s go ahead and play this one back live on the air. If I can find the button to push that makes noise.
Speaker 8:
Good morning. I’d like to ask the question, what are your thoughts on an equal weight S&P mutual fund versus the traditional S&P mutual fund? Thank you.
Nancy Hecht:
Okay, so first of all, we should talk about what the differences are. So the traditional S&P is the actual index, as it is and the holdings in there that we see on the ticker every single day. Equal weight is something that is going to be constantly rebalanced to have the holdings that are in the S&P, but keeping the percentage in each one of those holdings equal at all times.
Matt Murphy:
That’s right. And we talked, Gary and I talked not specifically about this subject, or not specifically about that question, but about this subject last week when he talked about the magnificent seven stocks. And he pointed out that the S&P 500, which just for the listeners as a reminder, that is just the 500 largest companies as measured by what we call their market cap, which is the price of that stock multiplied by the number of shares. So the magnificent seven are basically the top seven stocks in that index. And so they really make up the majority of both the risk and return of the S&P 500. Well, what Gary pointed out last week was that those stocks, by virtue of the fact that they’ve run up so much, meaning they’ve grown so much, that perhaps those have become riskier because now they’re overvalued.
And the other 493 stocks in the S&P 500 when you look at them carefully, are actually fairly valued, maybe even undervalued. And so the idea of having an equal weighted S&P 500 would to a certain extent solve for that problem. Now having said that, these things come and go. Sometimes that might be the right thing to do at a particular time in the market and other times it may not be. So I wouldn’t say, Nancy, maybe you differ on this, I don’t know. But I wouldn’t necessarily say that the equal weighted S&P is better or worse than the traditional S&P 500. It really comes down to just the basics, diversification, asset allocation, et cetera.
Nancy Hecht:
Not having all your eggs in one basket and having large cap, that’s growth in value. Some mid cap that’s growth in value, small cap and income, a well diversified portfolio would give you a little bit more security.
Matt Murphy:
And that’s doing it via, if the goal is to not have all, not that you’re having all your eggs in one basket, but not to have too many eggs in any particular basket, doing it via an equal weighted type of index would be certainly one way to do that. Now, one thing to be aware of is because you will be reducing by definition your holdings in some of those larger stocks that could yet possibly backfire because you’re not going to get the run-up that you might otherwise get if you were owning a standard S&P. So we appreciate the question there.
Nancy Hecht:
That’s why we look at rebalancing every single quarter.
Matt Murphy:
That’s right. And that’s what we do here in our practices. So Josh, I hear that other song that always puts you in a good mood coming on. So let’s take it away.
Josh McCarthy:
That’s right. The songs are always here to put you in a good mood, ready to listen, ready to learn, ready to send in your questions. Just like that last open mic did in the free WDBO app. You’re 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 107.3 FM, AM 580, always streaming live in the WDBO app. One more segment here if you want to hop on the air briefly, the number to call is 844-580-9326. If you got a little more time and a question pops into your head as the show comes to a close, Wynn Smith is standing by answering your questions. That number to the Office of Certified Financial Group is 407-869-9800. 407-869-9800. We’re going to go to a quick text question right now. This question comes with, oh yeah, of course. We’re joined by Nancy Hecht and Matt Murphy of the Certified Financial Group. The question is, I’m over 59 and a half, can I get my money from my retirement account without penalty?
Nancy Hecht:
And I think this question came out because there’s been so many different changes with IRAs and when you can get money out and when you have to take money out. But this is one rule that has been around forever that if you’re over 59 and a half, you can take without penalty. However, you still have to pay taxes on what you’re taking out.
Matt Murphy:
That’s right. Yeah. There’s also, just to add to that, there’s also a not well-known provision that applies to 401K. So if you are in a 401K plan and you have separated service for whatever reason from your employer after age 55, but prior to age 59 and a half, you can do a distribution from that 401K. Now you have to check with your plan. And plans have different rules on these. Sometimes it’s just a one-time distribution or it could just be an annual distribution. But that is the one caveat to prior to 59 and a half where you can actually get money out of a 401K and not have to pay the 10% penalty on it. So like Nancy said, even in that scenario, you’re still going to pay the income tax on it, but you wouldn’t have the extra 10% penalty on that.
Give us a call if you have any specific questions for whoever sent that text question in. Give us a call at the office, 407-869-9800 either today and talk to Wynn or anytime next week as well.
So Nancy, should we go back just real quick to your topic that you had today?
Nancy Hecht:
Sure.
Matt Murphy:
Okay. So I asked you before, what’s the biggest mistake that you see a lot of retirees make with regards to this? And we talked about cashflow planning a little bit. I know that you use a very, very sophisticated tool to help people plan out their expenses. And I’ve seen it before, and I think it’s called the blue form if I’m not mistaken.
Nancy Hecht:
I think it is called the blue form. And that’s the part of the equation that people don’t think about enough. And how you spend is one thing that is a hundred percent within your control outside of emergencies. And that can determine what type of lifestyle you have. Spending is everything.
Matt Murphy:
Yes it is. And I think a lot of times that’s another thing going into retirement. We talked about how expenses change, I’m sorry, how taxes change going into retirement, but a lot of people don’t spend enough time thinking about how their expenses might change when they go into retirement. There’s so many things that are different in your working years than they would be in your retirement years. And it’s important that you sit down with a planner like Nancy or myself or the other 14 certified financial planners we have in the office to really dig into those details so that your plan is as accurate as possible and you have the highest chance of success in your retirement. And that’s what it’s all about.
Nancy Hecht:
You can find us at financialgroup.com. You can make a reservation for a workshop. You can book a complimentary consultation with one of the certified financial planner professionals. You can go onto the Score my Funds tab and get a free opinion on the quality of the funds that you have. There’s a lot of different resources at financialgroup.com.
Matt Murphy:
And if you get to know Nancy well enough, she might even bring you some chicken soup one day.
Josh McCarthy:
I got hungry all of a sudden. Anybody else? Oh man. Thank you so much, guys. You have just listened to On the Money, brought to you by the Certified Financial Group where we’re planning tomorrow, today.
