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Discussions and answers to questions do not involve the rendering of personalized legal tax or investment advice, but are limited to the dissemination of general information. Listeners should consult with a tax and or investment professional for advice specific to their needs. Stay tuned for On the Money, Central Florida’s most listened to financial call-in show, brought to you by Certified Financial Group and 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. Welcome to On the Money right here on WDBO AM 580, 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 joining us on the air today. We got Nancy Hecht and Aaron Burtt as they have been on the air for over 30 years. Not those two specifically, but the reliable voices of the Certified Financial Group has been partnering with WDBO and the audience in the Central Florida area and now all over the country and the world.
But for over 30 years, they’ve been on the air answering your question, handing out some financial advice to help you get to and through retirement. Nancy, Aaron, how are we doing today? Pretty good. Doing great.
How are you doing, Josh? Doing just fine. Yeah, it’s a lovely day out here in Central Florida. A little warm, a little warm.
We’re hoping for some, maybe not so much thunderstorms today. Yesterday, we felt, Nancy and I were just talking about, it looked like it was really threatening for a while, but we didn’t really get that much rain. We could really use it, but just hate those thunderstorms nowadays.
As we head into the summer, of course, they’re going to be normal activity for us, but we’re not here to talk about weather. We’re here to talk about your personal financial situation. So Nancy and I and the other 15 Certified Financial Planner professionals here at the Certified Financial Group have been taking calls on the air, answering your questions about your personal situation, whether you want to talk about retirement, Social Security, taxes, investment planning, building out your portfolio, Social Security, long-term care, insurance, health insurance, all those things that are on your mind as you approach those years of accumulation and eventual decumulation through your retirement planning.
And so we are here today to take your questions on the air, and fortunately for you, there is nobody on the lines right now, but we do have some numbers that we can give out, right, Josh? That’s right. If you want to join the conversation, the number to call in is 844-580-9326, 844-580-WDBO, or you can send in your question using the open mic feature inside the WDBO app. Open up that app, find the bottom right-hand corner, there’s a button that says open mic, record it in, and I’ll push play as if you’re sitting here in studio with us.
The topic of today’s show is FAQs about RMDs. So a couple of weeks ago, I talked about the qualified charitable distributions when people have to make their required minimum distributions, that’s what RMD stands for, and I’ve been working with all my other clients that are now qualified for having to take them. I have a lot of clients that are first-time RMD people, and I’m getting a lot of questions as to where do I take it from and why do I have to do this, and so I thought it might be interesting to dig into it a little bit deeper.
So this was not something that anybody had to do prior to 1974, and I’m wondering, Aaron, do you know what IRA stands for? I thought it stood for Individual Retirement Account? It was actually Individual Retirement Arrangements. Arrangements, okay, all right. But we got rid of the word arrangements.
Yeah, that doesn’t quite fit what we do on a day-to-day basis. Okay, go ahead. So that’s what was the creation of that act in 1974, which allowed people to put pre-tax dollars away for their retirement, and as the years have gone on, the amounts of money that people have been allowed to save pre-tax, or now we have Roth, contributions that people can do through their employers or on their own, have been put into place.
So the first requirement distribution started actually in 2019, and it was 70 and a half. That was the age at which you had to start taking a required minimum distribution, it was 70 and a half? Yes, and there was a table that was put into place that gave a percentage based on from age 70 and a half, I think it goes up to like 115 for age, and it lists the percentage that everybody must withdraw from their pre-tax qualified retirement accounts and not have to pay a penalty. Wait, so let me get this straight.
So for our listeners out there, you’re putting money, you have an individual retirement account or a 401k or any sort of pre-tax account that you’ve been putting money into. Yes. You’ve been accumulating that money all your life.
Right. You stop working, and now you have to take a required minimum distribution. And pay taxes.
And pay taxes. You have to pay taxes. Because the government wants their money.
Because, you know, it’s as a former, recent former president said, sometimes, you know, it’s not fair to people to accumulate all that money without paying taxes. Not paying taxes on it. But there’s been changes, and some of the changes have been beneficial.
One thing that has not changed is the percentage that has to come out associated with each age. When that table was put in place, it really has not changed. So the SECURE Act came in in 2019, which changed the age to 72.
And then we had SECURE Act 2.0, which changed the retirement distribution age to 73, and that happened in 2023. And that’s going to stay in place for the next 10 years. And then in 2033, the minimum age for withdrawal is going to bump to age 75.
So if I recall, anyone born 1960 or later, so if you’re born 1960, 61, 62, all the way up, your required minimum distribution age as of right now is 75 years old. It will be, yeah. It will be.
And anyone prior to that right now is basically 73. Yeah. And unless there’s some change, who knows? You know, it’s funny.
I actually, I was talking with a client about this the other day about required minimum distributions, because that’s what we do in our meetings is talk about how to take money out of accounts. And I had a dream that they got rid of the required minimum distribution. Oh, really? Okay.
And he made fun of me that I dream about RMDs. Sometimes we can’t get this out of our brains, but you know. You just think about these things all the time.
And because if when you’re, when it’s such a part of what your day-to-day activities, you know, it just sticks in your mind. And especially over the last couple of weeks. So it was, it did surprise me when I started letting my clients know how much they had to take out this year, how many people didn’t realize that they actually had to do it.
So I had to explain, you know, this whole loss that we just went over. And then we have a number of clients that have a variety of different accounts. Most people have traditional IRAs.
Well, we, or if they had the IRAs from a former employer, it’s a rollover IRA. We have some clients that have SEP IRAs, it’s self-employed pension IRAs. And those are the, all with the pre-tax dollars.
The pre-tax dollars right now are the ones that are subject to these required minimum distribution rules that we’re talking about. So I have a client that has four different accounts that are subject to required minimum distributions. So once we calculate how much has to come out in total, the question is, where do you take it from? And it really doesn’t matter which account you take it from, as long as the dollar amount is proper.
So sometimes people take their required minimum distributions a little bit from each account. Sometimes they take it all from one account. And again, the dollar amount that comes out is what’s important, not where it’s coming from.
However, one caveat is if you have a 401k and you’re making traditional 401k contributions versus Roth 401k contributions, and you’re above required minimum distribution age and are still working, that account is not subject to the RMD rules. It’s the still working exemption. Right.
Yes. So there’s a little bit of a break there on that side. So a lot of people are wondering, can they just convert the money to a Roth and not have to do it, which would be really cool if you could.
However, you have to satisfy your RMD before you do any type of Roth conversion. One way or another, that money is going to be taxed. So that has to be done.
Generally, once the money goes into a Roth account, as long as it’s been there for at least five years, or the account has been established for five years, any withdrawals come out tax-free, except if you inherit a Roth account. And then you have, since 2019, you have 10 years to withdraw all the funds from that account. There’s no taxation on it because it is a tax-free account, but it cannot remain as it was.
There’s no such thing as an inherited Roth account that could go on forever in perpetuity. Yes. So that was one of the things they did when they changed the RMD age.
Yes, they pushed the RMD age out. However, they got rid of what we call the stretch IRA, which allowed you to stretch out. If you inherited an IRA, you could then take money out of that IRA over your life expectancy.
So if one of my children inherited my IRA, they could take out a little bit every year over their life expectancy. When they pushed back the RMD age, they got rid of the stretch, and they created this new 10-year rule, which requires certain beneficiaries to withdraw the entire account balance within a 10-year period. And it doesn’t mean that you have to make annual distributions.
You just have to have that account emptied out by the time you hit that 10-year marker. So, I mean, you have to be careful then who your name is, beneficiaries on your account. Yeah, and they still have the at least as frequently as rule, which means that if you inherited an account and the person was already taking RMDs, they still have to continue that RMD schedule.
But that whole account does have to be emptied out within that 10-year period. So there are a lot of rules now around inheriting IRAs, which are very specific. So if you’re inheriting an IRA, I suggest you talk to a professional or somebody who knows what the rules are around that.
You can call us, and we can help explain and walk you through what your different options are, because they are very different than they used to be just five years ago. And one thing I’m noticing when dealing with people’s retirement accounts, as well as their non-retirement accounts, and having to deal with these withdrawals and then succession, is many people will have a primary beneficiary listed on their account, and they will have no contingent beneficiaries. Oftentimes, a primary beneficiary is a spouse.
Oftentimes, spouses travel around the world together. If some idiot on the road changes the trajectory, and there’s no contingent beneficiaries, then this account has to go through probate. And we want to avoid probate for our clients as much as possible.
It’s painful. It’s costly. And one of the things that you don’t want to have to deal with when you’re dealing with the death of your loved ones is trying to move their retirement accounts out into your name.
So then you could start taking requirement distributions. It’s true. It’s true.
One thing I want to circle back to that you had said about converting your RMD to Roth. You cannot, you’re obviously right, you cannot convert your RMD to Roth. However, any amount above and beyond that you can convert.
For example, if your required minimum distribution is $10,000 this year, you’re required to take that $10,000. You cannot convert it to Roth. However, if you wanted to take $15,000 out, you could convert $5,000 to Roth, and the other $10,000 obviously satisfies your required minimum distribution.
I just worked on a formula for one of my clients that wants to start doing that. So going forward, her RMDs are smaller. So I had her send me her tax return so I could see what her adjusted gross income is, adding the RMD onto it.
How much could we convert after she satisfied the RMD to keep her within the same tax bracket and not move her into a higher tax bracket? Right. And then there’s some rules. If you have spouses of different age, maybe you’re taking more out of one account in order to get as much out of that account while they’re at different ages before the other spouse starts RMD.
This is all part of the planning that we do day in and day out for clients to balance how much they can take and still keep in certain tax brackets. I do hear the bumper music. We’re really tax adverse.
Yes. I hear the bumper music, so I’m guessing we’re going to commercial here. Thank you so much, Aaron and Nancy.
If you want to call in right now, you’re listening, and maybe something popped into your head like Ed who just called in. We’ll get to Ed after the break. But if you want to call in, we got some open lines, 844-580-9326, 844-580-WDBO, or send in your open mic using 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 here on WDBO AM580, always streaming inside your WDBO app. If you want to join the conversation, we got Aaron Burt and Nancy Heck, two certified financial planners with the Certified Financial Group here on the air today, guiding us through another great hour.
Call in right now, open lines, 844-580-9326 is the number, 844-580-WDBO, or send in that open mic using the free WDBO app. Aaron, Nancy, what do you say we head to the phones out in the villages where Ed’s calling in? Let’s do it. Ed, you’re on the air.
How are you doing today, Ed? Good morning. How is everybody? Doing well. Great.
Thanks for calling in. Good. Listen, when this topic comes up about RMDs, I remembered when it first came up that they talked about age 74, something being at that point.
I’m age 68. My wife is age 72, so next year I know she has to take her RMDs at age 73. But we have two separate accounts, two IRAs.
So I’m going to be 74 in 2030. So I talked to Rodney about this, and he’s the only one that referenced this. He referenced an article where it says that in age 2030, it’ll raise the age.
The RMDs will be raised to 74 in 2030 and to 75 starting in 2033. Like I said, no one else has mentioned this. It came from an article in the Wall Street Journal, I believe.
I still got five years, so I’m not going crazy over it. Have you ever heard age 74 RMDs? No. Everything that I’ve seen is anyone born in 1960.
There’s two RMD ages that I’m aware of, 73 and 75. And anyone born in 1960 or later is at 75. But like I said, or we say this all the time, anytime Congress is in session, your money’s in jeopardy.
So it doesn’t mean they can’t change it again, either make it sooner, make it later, or change the rules altogether. Yeah, we’re going to have to ask him to share that article because I didn’t hear anything about it changing to 2033. Yeah, he’s the only one that ever mentioned this.
It was from an article on March 29, 2022. So if you ask Rodney and either refute it or say, yeah, that was right. Well, and you know, it may have been 74 before Secure Act 2.0 came out because things change.
So that might have been the rule at the time and then Secure Act 2.0 was actually the rule that changed it to 75. So because it was 72 before Secure Act 2.0, Secure Act 2.0 comes out, it changes it to 73 and then 75 for anyone born 1960 or later. So that’s probably old news.
This article references Secure Act 2.0. Okay. Yeah. Okay.
Well, thanks for enlightening us and we’ll talk with him and we’ll get a clarification and get back to you. I’ll talk about it next week on the radio. Yes, sir.
Thanks for the call. Thank you so much, Ed. If you want to call in 844-580-9326, 844-580-WDBO.
Aaron and Nancy, you got about two minutes left here in this segment. Okay. Yeah.
Let’s just talk real quick. If you don’t mind about, we have Charles Curry taking calls off the air, if I’m not mistaken. If you have a topic that is, you know, a little bit more sensitive or you want to, don’t want to actually want to be on the air, talk to Nancy or myself.
You can call our office number 407-869-9800. Again, 407-869-9800. If he does not answer, please leave a message.
He’s probably on the phone with somebody else and he can call you right back. Again, Charles Curry is taking calls off the air. And I think we’ve got some workshops coming up.
Yeah. Let me put in a plug for the ones coming up June 28th. This is Will Your Savings Last a Lifetime? Hosted by Gary Abley.
It’s going to be in our Learning Center here from 10 a.m. until noon. If you go to our webpage, financialgroup.com, there’s a dropdown for the workshops. I highly recommend that you make a reservation.
All the workshops have been almost full capacity every single week. So financialgroup.com. June 28th, Will Your Savings Last a Lifetime? Make your reservation. If you want to do that, you can again, you can call into our office Monday through Friday and schedule that.
Or you can go online again to our website, financialgroup.com. I’m trying to think of what I just blinked. I love doing that on the live air. All right.
Reset me. Reset me. All right.
We’ll go to the break and then we’ll come back with some more topics on required minimum distribution. If you got something on your brain, feel free to give us a call. 844-580-9326.
844-580-WDBO. You’re listening to On The Money, where we’re planning tomorrow with the certified financial group. Welcome back to On The Money, Central Florida’s most listened to financial call-in 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 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 rest of the show. Welcome back to On The Money here on WDBO AM 580, always streaming inside your WDBO app. We got Aaron Burt and Nancy Heck, two certified financial planner professionals from the Certified Financial Group, guiding us through another wonderful hour here on WDBO.
If you want to join in, they’ve got open lines 844-580-9326. Five days a week they have to answer these questions, but on Saturdays they do it for free. That’s what they love doing here on the airwaves of WDBO.
So take advantage. If you have a question, maybe your neighbor asked you something and you want to seem like the smart person with all the answers, but really you’re just phoning a friend at the Certified Financial Group. Call in now 844-580-9326, 844-580-WDBO, or you can send in an open mic using our free WDBO app.
If your question is a little more personal or you want to just get straight to the four walls at the Certified Financial Group and skip the whole radio part, Charles Curry is taking calls off the air, and so I want you to write down this number too at 407-869-9800. That’s Charles Curry, another certified financial planner with the Certified Financial Group, 407-869-9800. Aaron, Nancy, what do you say we hit one of these text questions? Let’s do it.
All righty. Rhonda wants to know, Rhonda says, what are the best ways to track my spending? I think outflow is the biggest problem that a lot of people deal with because people are using their phones or just using a credit card and not really paying attention to where cash is going, or you sign up for 20 million different services and don’t pay attention as to whether there’s been mergers, duplications, some place that you signed up for you’re not really using or they’ve gone out of business. So I think one thing that’s important is to look at your statements.
Let’s, you know, see what kind of debits are being processed against if you’re using your bank account or a credit card, and make sure that each one of them is legitimate. We have something that’s a little bit more old school, but when people see it, they are very astonished at it. It’s we call it the blue form.
It’s our expense summary report. And it looks at things like personal care, pet care. Those are the two things that I hear a lot that people like, Oh my God, I didn’t even think of that.
You know, if you have a gym membership, or you work with a personal trainer, there’s a lot of money going out. Are you actually using that gym? You know, so these types of things, I want people to really pay attention. I think that people get their statements monthly online for their credit cards, and they just don’t even look at them.
You have no idea if something’s being charged or something was charged. That was not yours at all. My husband, for example, had to take his car in for service.
And he called for an Uber to take him home. And guess what his account had been canceled. Because when we were in Philly two years ago for a wedding, there was a charge for $8, which he saw because he looks at his bill and he disputed it.
Supposedly, we got a ride from the airport to someplace in downtown Philly when we were already back here. So he thought disputing it and getting it taken off his bill was it but Uber wanted to get paid. So they suspended his account.
So you have to look at these types of things to make sure they are legitimate expenses. And I had mentioned duplicate charges. We’re seeing in streaming, there’s a lot of consolidation that’s going on and buyouts between networks.
So people may be signing up for something so they can see a specific movie or program, and then they never look at it again. And you don’t realize how much these $5, $10, $15 charge a month charges add up. And especially if you multiply it over two or three or five years.
So it’s really old school to take some time and look at your statements. But it’s the best way to see where your money’s going and tracking your expenses. And there are lots of tools out there available for you as well.
So there’s, you know, the ones that take time, I’m a little bit more, I don’t want to use the word paranoid, but I’ll use the word paranoid. Every day I’ve been used, I’ve been, well, back in the day, when I was in college, I started using Microsoft Money, which has since gone away. And then I converted into a Quicken user.
And every day I download all my transactions into my Quicken account. And then I also then go and categorize all my transactions as well. So I have an idea of if there’s any fraudulent charges coming through and where my money’s going.
I realize I’m a little bit overboard, but this is what I do for a living. Conversely, there’s other tools out there available as well. There used to be Mint, I think Mint went away.
A lot of people now, I had a client talk to me yesterday about Monarch Money. He said he’s using to track all of his expenses. A lot of the banks have a lot of services as well that you can use.
The credit cards themselves also have services. So it’s not only looking at the transactions, but then also making sure that you’re staying within some sort of budget and not running up debt and that you’re saving the appropriate amount too. And that’s one of the conversations we have with clients all the time.
You know, you have this much coming in, you anticipate this much coming out, this is what you should be able to save. Are we saving that money or not? And if you’re not able to save that kind of money, then you have a hole in the bucket, as we like to say, and there’s leakage somewhere. And where is that leakage? And let’s identify it so that we can maybe tighten that up so that we can hit our savings goals and accumulate the money that we need to accumulate.
Because really the biggest challenge is if you retire, you’re kind of on a fixed income and you have leakage and you don’t know where it’s going. And then you’re running out of money and the wheels are falling off. And those are really bad situations.
And it’s simply a matter of paying attention. You know, when people actually wrote checks for everything and balance a checkbook, you were seeing every single transaction. So it’s just a matter of being fiscally aware of how you’re spending your money.
Right. Exactly. It’s too easy to use Apple Pay or any of those other services.
It’s just, it just doesn’t. Yeah. Yes.
It’s a problem. So, okay, Rhonda, you’ll find something. There’s a lot of sources out there.
And I will say if anyone is interested in getting our living expense form, our blue form, as Nancy mentioned earlier, we can send that out to you. So if you’re interested, you could email us at plan at financial group.com. Again, plan at financial group.com. And we can send you a copy of that form just so you can see what that looks like and maybe get an idea of maybe starting to track your own expenses. That’s the form we hand every client if they end up wanting to do financial planning with us, because it really gives us a good baseline for what your living expenses are.
So plan at financial group.com, put in the subject line blue form, and we can send you a PDF copy of that. Thank you so much. If you want to call in 844-580-9326, 844-580-WDBO.
Next question coming in from Miles. Miles says, should I pay off my mortgage before retirement? I’m on the fence about this. Yeah.
If you have a mortgage that’s at, I’m going to say, 3.5% interest rate or less, that’s pretty cheap money. I know that if somebody’s close to retirement, they’re probably not getting a tax benefit for paying the interest on their mortgage. But I think it really comes down to peace of mind.
What is going to make you feel the best? Again, how big of a balance do you have on your mortgage going into retirement versus the money that you’ve accumulated? But if your interest rate is low and the payment is no big deal, then I say, why rush to pay it off? The money that you would be putting extra towards paying off your mortgage, you could put towards maybe an emergency fund in case something happens or just boost up your savings. But really, in my opinion, it’s a personal preference. What is going to make you feel more comfortable going into retirement? Having it paid off or not? And it also depends on where the money’s coming from.
So if you’re planning on taking a big chunk of money out of your IRA and paying taxes on it in order to then pay off your mortgage, that clearly doesn’t make any sense. One thing to remember too with the mortgages or most debt is that the interest is really front-loaded. So if you’re on the tail end of your mortgage, you’re probably not paying that much in interest and most of your payments are going towards principal.
So even if you do have a higher interest rate, you already paid most of that interest if you’re on the tail end of the mortgage. So again, every situation is kind of unique and different. And that’s part of the process that we go through because we get this question a lot.
I don’t want to have a mortgage when I go into retirement. Okay, great. What’s your interest rate? 2%.
You’re going to have a mortgage going into retirement. And then one thing that we did years and years and years ago when we get this house is we started making bi-monthly payments, which I recommend that almost everybody that I’m meeting with do. And what you end up doing is making 13 payments a year as opposed to 12, which really doesn’t sound like much, but it can knock about 10 years off the whole life of the payment.
And as long as there’s no penalty for pre-paying and you can have it maybe go a little bit more towards the interest as opposed to the principal, then that can be beneficial also. So that’s another way to shorten the life of a mortgage and then keep your cash flow within a reasonable, comfortable place. Yeah, lots of different strategies to get the debt down.
And that, again, part of the process that we go through with people when we meet with them. So do we have any more questions, Josh? We got a couple. We can hit one real quick, if you like.
Sure. Let’s do one more. Rebecca wants to know, Rebecca says, is my money in the right places? Is it diversified properly? Am I taking on more risk than I need to? Well, that is a common question.
And I have an interesting story from something that happened last night, but we have a risk tolerance quiz that’s a really, really easy quiz to take that gives us an idea of how much somebody’s comfortable with having an equities, which would be stock-based mutual funds and income, which is bond funds. And that’s the first place that we start. And then we want to be diversified within the categories, mid cap, small cap, large cap, some growth, some value.
So not all things are moving in the same direction at the same time. So depending on where you are at life and what your attitudes are for risk will determine if your money’s in the right place. We have a family friend who’s the Lake Mary police officer and he knocked on our door yesterday, say, did you know your garage door is open? Which we did, but he really had a retirement statement in his hand and wanted to ask me some questions about it.
And one of the things that he had mentioned is that he’s really, really conservative and he wants to keep things more into a safe place, which in my mind is bond or income types of items. And the point that I made to him is, you know, based on his age, he’s in his 30s and how many more years he potentially has to live. He needs to boost up the stock or equity portion of the portfolio because equities are what keep you ahead of inflation.
And growth is important because we want our money to work for us, but you also want it to be there for the 10, 15, 20, 25, 30 years that you hope to live in retirement. So it’s important to have a balance. What is the appropriate balance per each client may be different, but we can answer the question by a really simple quiz.
Yeah. And we get that question a lot when we meet with people too, but people think, you know, I’m hitting retirement. I need to get conservative and not lose any money.
And really, when you go into retirement at 60, let’s just say at 65, you could theoretically have 20, 25 more years of living that you need to continue to have some sort of growth on your portfolio. And you can’t necessarily go into a totally conservative portfolio and at least not keep pace with inflation. So again, that’s part of the whole planning process that we go through with people.
As you say, you know, I got this much coming in, I got this much going out, I have this much in my portfolio. If I earn this much, how do I end up? If I get more conservative, how do I end up? If I get more aggressive, how do I end up? And that’s part of the conversations that we have about what the risk tolerance that they’re comfortable with per the quiz that we do, and then what they feel they’re comfortable with and what they can afford to do with the planning that we do. And that’s part of what we do day in and day out here at the Certified Financial Group when we meet with clients and do retirement planning.
So we just discussed two of the components that are necessary for putting a retirement cash flow plan together. The expense summary and the risk tolerance quiz. Yep.
There you go. And both of them are relatively easy to deal with from a client standpoint. So we want to we want to make it an easy process for our clients.
And I hear more music. You got it. If you want to call in, you’re listening right now to Aaron and Nancy.
You got a question for the two of them. Call in right now. We’ve got open lines 844-580-9326, 844-580-WDBO.
Also have Charles Currie standing by at the offices of Certified Financial Group. If you want to take your question off the air, that is available at 407-869-9800. 407-869-9800.
You’re listening to On the Money, where we’re planning tomorrow, today with the Certified Financial Group. Welcome back to On the Money here on WDBO AM 580. Always streaming inside your WDBO app.
You want to call in right now. We got about four or five minutes left on the air so we can maybe get you on the air. 844-580-9326.
But after the show comes to a close and maybe a more useful number for you to have the other 23 hours of the week or of the day and six days of the week is Charles Currie’s taking calls off the air at 407-869-9800. Like your own personal rendition of On the Money. 407-869-9800.
Or if you want to email into the office of Certified Financial Group, there’s an option for that too. All right. We do get emails regularly actually during the week.
And so we had a couple emails that had come in and one of them that we had gotten. And if you’re ever interested in emailing the show, just email plan at financialgroup.com, put on the money question and we’ll get to the question during the next weekend. The one that we got this week says, does one take the value of all IRAs for RMD calculation based on the value at the close of 1231? And would that vary for any particular type of investment, private or public bonds, stocks, ETFs, annuities, etc.? So how is the RMD calculated, Nancy, and what values are they taking in order to do that? Well, the balance of the whatever kind of account that you have as of 1231 of the previous year is what determines what your retirement, your requirement of distribution is going to be.
It really doesn’t matter if it’s in individual stocks, individual bonds, mutual funds, ETFs, private placements will also have to have a valuation. And they know if it’s in a retirement account has to be done by December 31st of the year because people do have to follow the law with requirement of distribution. So yeah, I would say they did mention annuities.
So if you have annuitized your annuity, that does not require a required minimum distribution because there’s really no 1231 value. So annuitization basically means you’re giving up the value of the annuity in exchange for an income stream. And so if you have an annuity that you annuitize, there is no required minimum distribution required.
So that’s something important to keep in mind. Also, Nancy had mentioned the 401k still working rule. So if you’re still working for an employer, you’re not required to take a required minimum distribution from that account as well.
So something else to keep in mind. The caveat to that is if you’re a 5% or greater owner, you are required to take an RMD. So make sure you keep that in mind.
If you’re an owner of a company that has a 401k plan, you still are required to take a required minimum distribution from that as well. And we have a few workshops coming up. I want to make sure that I mention them.
I had mentioned Will Your Savings Last a Lifetime hosted by Gary Abely on June 28th from 10 until noon. After that is Savvy IRA Planning for Boomers, Strategies to Help You Save Taxes and Get More Out of Your IRA. This is hosted by Dave Balakrishnan.
This is going to be on July 12th from 10 to 1130 in our Learning Center. And then Tax Efficient Investing and Distribution Strategies hosted by Gary Abely. This is going to be at Village on the Green on the 26th of July.
So the workshop will be from 10 until noon. And I’m assuming that the radio show is going to be broadcast live from nine until 10. So if you want to participate in the audience for that and then stay for the workshop, you can do that.
Again, you can find all of our workshops listed on our webpage, financialgroup.com. There’s a web shop. There is a workshop pull down that you can make a reservation. Or again, you can call the office and ask if you can make a reservation for one of the workshops.
And there’s absolutely zero cost to go to any of our workshops. And the reason we do that is really just to have an introduction to us and our company. Leave your checkbook at home as we like to say.
It’s to provide education to the general public. You get comfortable with us and hopefully provide you with some great information. And especially the Village on the Green is going to be a hot one.
So if you’re interested in attending that one, make sure you do that early because that one will definitely fill up fast. We hope everybody has a great weekend. Thank you so much.
Aaron, Bert, and Nancy had two certified financial planners with a certified financial group. Charles Curry, a third certified financial planner with a certified financial group taking calls off the air after the show comes to a close. Pick up the phone, dial in 407-869-9800.
407-869-9800. You’ve just listened to On the Money where we’re planning tomorrow today with a certified financial group.