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Retirement Elevated Show 06.18.16
Jun 20, 2016|
Automatically Generated Transcript (may not be 100% accurate)
This is retirements elevated with a shot aliens got two game and the retirements fuse network's general reset. John Scott have nearly three decades of combined experience educating and assisting retirees and pre retirees. Has trusted financial advisors they've been featured in national publications including the Wall Street Journal and USA today. This is retirement television with Sean Lee and Scott do you ponder retirement. News network. Hi there thanks for joining us today our retirement elevated radio where Sean Lee and sky do you know how he planned well retire well and live well. I'm your host Jan redact with the retirement news network in the studio today with shine and Scott. Think so much for joining us and before we get into it if you have questions about something that we talked about on the showed today. If you'd like to learn a little bit more from shiner Scottish someone on their team to make sure that your plans on the right track. Let me give me the phone number to start things off today 800. 88420771. More time and that number is 808842077. So guys be talking a little bit about the longevity factor later on in the show how to afford a long and healthy life which is what we're all go on for a really. But don't spend a few minutes today talking a little bit about YouTube and what got you into the industry so shot if you don't mind I want to start we few. Tell a little bit about why it's bribe you into you know what right you into this industry why you do what you do. Well I'd I'd like to say they'll it was the plan all along to him in this industry but it it was sort of dumb luck. When I graduated from college I've that I've been under your degree in corporate finance. And so the grandiose plans. When I graduated as a I was gonna go to work for company I was gonna become a controller of a company and then eventually wanted to become a CFO ballast. That was my it. My career goals at the time well and in 2002. And I graduated there wasn't a whole lot of opportunity out there in that. Space. Companies were hiring Regis Gunter recession. So I actually answered an ad for mass mutual and Naia. They give you this pie in the sky idea of what it is to be an advisor. And so we got I got in there spent six months there. I've got a pretty decent handle on you know kind of what's. If things looked like didn't like that world. Now when and managed a credit union their financial services division for five years. Then laughed and started independent firm with couple partners. And his sense sold that. Matt or ownership relationship and started the firm that that we have today along the way I got a master's and planning. I tend to equate myself to kind of that engineer mindset with the analytic side but the strategy of the advisor world shall call myself an engineer stuck in an advisor. The technical help to narrower week we can work it Barrett's got. I absolutely irate in sky your turn what do you tell us a little bit about your story what got you into this industry. For an election on right. I wish I could say from us for young age it was between net. Mean a fireman an astronaut in a financial advisor but quite really fun and wish that's an area children this you know what I dollars thinking. Especially I knew when I started college I was saying to beat teacher. And wanted to teach and coach come from a small town. And yet teachers had a big impact on me and my coaches. And got into you. Go to school for that. He ends to something happened along the way in my mom was the school board president for eight years. He ends. In my in no small hometown. The play education is changing and Cheney across the US and it really sort of look at how my going to. Make it as as a young teacher a coach. On at that time is a little over 23000 dollars a year and was it reminds my salary. And I was scared to death so we have been able provide for you know future family. And she. I'd love the idea teach teen love the idea of educating people. And you know getting into this collection on I knew of I was introduced in this business on the insurance side years ago was sixteen years ago by a friend. I'm started down that path. Enjoyed it but I was working for company. And when I was out and dealing with her clients. I realize that hey I've only got a few tools in my tool bag here. Hand. MI really doing the best job possible by just providing these companies products and tools. And so like Sean I decided to go out and be independent I was in 2003. My whole goal was to be able to educate. And empower people to make better decisions but there harder and money. And so that's gonna how I got started so I still teach you know on head on a daily basis. And I say bring trying to bring education about finance into the into the world. Well let's talk about that education aspect a little bit if you don't mind talking today with Sean Lee and Scott dude in this is retirement elevated radio be clearly sky that is such issued part of what you do right now so much so that you actually have these retirement elevated courses that just. The importance of of that education aspect when it comes to the people you work with every single lane your office. General it's our recess now we or drowning in information at this point in time. And I think we're we're all starving for knowledge and wisdom. And it's my contention that people don't need a tremendous amount of new information right now what people really need is a better process to make. Good decisions about their hard earned money. And that's what's missing. Is that process are really most people don't know the questions to and ask. You know some and that's giving them recommendations about the harder life saving so yes I think it's a process that filters out. The miss the misconceptions and misunderstandings. That really are being propagated out there in the world a fine. And giving people a roadmap to follow you so they can have Prius and certainty predictability in their retirement. Talking today were shot on me and Scott did in this is retirement elevated radio thanks for joining us today. And when you talk about the importance of giving people the the right information and the right tools and both of you have kind of different backgrounds here but. Shine let me ask you what really helped shape your your current philosophy your investment philosophy when it comes to how you and grow how you approach. Retirement investing with your clients. I hadn't really. Really sit back and think about this question and and what comes to me is is really my first experience with money. I go back and when I was eight years old my parents actually ended ended up sitting me down and and letting you know they're getting divorced. And I I didn't really know the impact that had on on me. Or our family until I was fifteen. And my mom she's she's a teacher she's got two masters degrees and let it in Wyoming where I grew up. I realize that it at the age of fifteen we couldn't afford her family home anymore sort of moved from this this house that we grew up in into a town home. And that's where I finished out my high school years. A couple years later my mom and I were talking about finances ship left Wyoming went back home to Massachusetts where she's from. And just trying to make some decisions on she she didn't know what to do it bid the people that she was talking to. They were to honor all you need to buy this you need to buy that you know this is the best vehicle. Out there and and so I started to do a lot of research gestured ask a lot of questions. And most commonly what I found is that. Most people sat down with an advisor or somebody who claimed to be an advisor. And they said show me your stuff. Here's our stuff it's better so you should do you use our stuff. When there wasn't really any. Plan there wasn't any. In fact behind why it was going to work for other than their particular situation. And the net. Forced muted to change my philosophy a little bit that. You know building a plan that should be the driving force. Having a clearly defined roadmap that should drive your decisions in your decision should be based on facts and logic when it comes to your finances. Not sales tools are gimmicks or anything like that. Talking daily show on audience that dude in this is retirement elevated radio and if if this aspect of having a plan in place is what's missing. From from your financial picture of the numbered called today 800. 8842077. To reach shock me and Scott. Again and number is 88842. 077 and shot wanna ask you one more question before I go back to Scott that. When you talk about when you share your life story ended decisions that your parents had you been facing going through this divorce early on. That probably gives you some good insight when you have clients come in and sit down with you became as you're dealing with someone's mother and someone's. Wife for someone's daughter I mean you know how personal this connection is for folks with their money and helping them make the right decisions. I mean you get one shot retiring right the first time and unfortunately. That's not always the focus for a lot of people that are out there it's you know here's here's our shiny object and then reduce to try to put your money into but. When you start to look at it and making lifetime decisions and and building a plan for. Your future you know people are living a long time know their living 2030. In some cases maybe forty years and a retirement. There they need to have a really clearly defined plan to get him from from now. All the way through that the rest of their life and any and we take it quite personal way that we plan and it is it hits home with us. Talking today again with Sean Lee and sky Dugan shot and Scott have three decades of combined experience in the finance industry thinks so much for joining us. Retirement elevated radio today and getting gimme that phone number again if you have questions for shiner Scott if you like to get your plans started today and number or call 800. 8842077. Again and number is 888. Ford to 77. So Scott let me turn you now clearly education as a very important aspect tear on you've got to make sure folks are well educated before they making any decisions with their money. What we do the process here of how you help someone get a plan in place and how you help them make the right decisions to get that plan put together. We'll joining the first step. Is. Clearly defining. How you've made financial decisions in the past. And they're really digging into what you wore processes. To make decisions revolver on your retirement. And once we look at that. Process that you use that's where restart and cover potential flaws in your process. And that's Torre talked about the miss that misunderstandings and misconceptions that we're using to make decisions that at this point so. Really getting down to use that basic idea of how we may decision the past is think about this. You've all made decisions. Previously. That when time had passed and you've gathered more information. Or you discovered things or missing in Europe and here. Prior to making the decision we've all had that feeling yes man we've. We wish we would have made that decision we wish we would have done something different. If we were just would have been presented that information in the beginning. Not if you're listening to the show. And you don't have a plan or you don't know for sure if your current strategy you will get you to where you wanna go. Let's go ahead and pick up the phone right now and give us a call 800. 8842077. Now for this review we usually charge ram 15100 dollars for the first ten callers on the show today. You're going to receive this review complimentary. It's gonna be personalized. And we'll give you our retirement roadmap for review but you have to be one of the first ten collars on the show today at 884. To 077. That's 884. To 077. Thanks again for joining us today this is retirement elevated radio with Sean Lee and Scott do you Ginn and anger has gen re act alongside in the studio today. When we get back on either side of the break we're gonna talk about longevity one of the biggest unknowns in life is how long we live and we've got to be prepared for it no matter what so stay tuned. Retirement elevated radio for your exact. You're listening to retirement elevated. With Sean Lee and Scott Dugan on the retirement US network. If you are like most people heading into retirement you probably have a lot of questions and concerns how to get prepared. Who can you trust her advice how can you get the facts and unbiased information how do you avoid making a critical mistake. Maybe you've received an invitation to a fancy dinner seminar at a nice restaurant but in the back of your mind you felt like there must be cash and why would someone mind Ian nice steak dinner they didn't have an agenda if you don't wanna be pitched on the newest products but instead are looking for a comprehensive program to help you understand the number of issues you'll face in retirement. The answer may be attending a retirement elevated course instead of a fancy steak house retirement elevated courses are hosted in educational setting. Many times on college campuses. Over two nights to certified financial instructor walk you through it 200 page retirement guide book and provide you with answers to your questions. These courses are only 49 dollars and include your retirement guide book all materials and the opportunity to have firsthand access to a licensed financial professional. If you want the facts instead of a free steak dinner. Retirement elevated maybe the answer to learn more call 91354328. Well. That's 9135432812. Or go to www. Retirement elevated dot com space is limited most classes sell out and you must register in advance to attend. There are only a few seats left so called 9135432812. Today. Or go to www. Retirement elevated dot com to find out more. This is retirements elevated with Sean Lee and Scott do you want to retirement news network. Welcome back thanks for joining us today on retirement elevated radio with Sean Lee and Scott do again shot and Scott will help you plan well retire well and live well. And I'm your host Jan Reid to act on side in the studio today as we get back into if you have questions for shiner Scott the united talk with them or someone on their team about your retirement plan. Making sure that things are on the right track for you in your future. The number to call is 88842077. Again and number is 800. 8842077. The web sanity I'll learn more is retirement elevated radio. Dot com before the break as I said one of the biggest unknowns and life is how long we live you just don't know when your time is going to be out. This thing is we also keep hearing about people living more active for longer lifestyles that the more active as well I do have a quick example I wanna share it you. ABC news reported not too long ago there's a gentleman in Santa Claire asked. Who broke records in six events at the senior gains in the high jump long jump shot put it this is a hundred meter dash. After he turned 100 years olds I think. He's a living 200 years old he's now playing bingo he's do hundred meter dash riches. Which is insane demeanor of this is what's happening today. What's is going to be looking like in twenty years thirty years you know what what his retirement don't look like for folks another thirty years down the road. Let's talk about why we should care about this longevity issue sky you wanna start us off. Well absolutely and we think about longevity. You were living longer lives and quality of life hopefully is increase and as well. But it it really sets us up to be exposed to several things. Number one mean is our money you know lasts our lifetime. And we're in this changing timer changing paradigm where it we don't have a their pensions system like we did just you know. Three decades ago. Where people would you go to work for big company. In when they retire they put their time in 3540 years and they had a retirement party to get a gold watch. And I guess I mean very important which was a paycheck they showed up every month and for the rest of their life. And indicate to cancel security for most people that would just. Give them a pretty comfortable lifestyle. But that's just not the case today. Today's. The responsibility is put onto your shoulders. You've got to decide how much money he can you say how much money do you need to save. To get you through retirement. And so that's why I think it's important. You know because we are living longer you know you're looking summoned retires now 62. There's a pretty good shot that they're gonna live to their mid eighties. And are you comfortable and confident that your nest or he's gonna last so all. Those of the big questions you have to answer today. Well some let me turn you now why don't you tell us a little bit more about what you've seen in terms of things that have changed when it comes to planning for retirement especially. Over the last 1520 years. Well I mean Jim's got hit right on the head so longevity is is definitely we're living longer is as a society and adding it's only gonna expand. I got a time magazine. When my son was born. And a just so happened at the cover of this magazine had a picture of the baby on sodium home. As of the life expectancy of that baby was a 125. Years old. And so when you start to look at. Al longevity and people are definitely living longer. Health is is becoming a bigger bigger factor the longer that we live. But what we're also starting to see or what we are seeing is at the market has been performing. Vastly different over the last fifteen years and it had in previous periods of time. There's this war on seniors and sabres were that they can't get interest any anywhere. In order to gate returns it got to go into the marketplace so it's it's becoming a more volatile time and how lower interest rate time. That's making it much more difficult for retirees to to really jittery in created income stream. In a time where the responsibility is is really on on their shoulders and pensions aren't. Aren't as prevalent anymore. In savings. Is is around the most people have to take her and have a pretty solid retirement. In Ager getting ready to retire your thinking about retirement. This is a period of time where you don't want to procrastinate. If you're out there listening to the show and you don't have a plan. Or you don't know for sure your current strategy will do you know where you want ago. Pick up the phone right now and just give us a call 884. To 077. After the first ten callers on the show today we're going to give you a personalized retirement roadmap review. And in this review rule will give you afford tax looking review. We'll give you an income analysis and investment plan review and in the state plan review of now for this review we usually charge 15100 dollars but for the first ten collars on the show today. You'll receive a complimentary. Personalized retirement roadmap review. But you have to be one of the first ten callers on the show at 884. 2077. That's 884. To 077. Thanks again for joining us today this is retirement elevated radio where Shanle and Scott dude in a hobby planned well retire well and live well. So on and Scott have three decades of combine its experience in the finance industry hang your host gen re stack along side in this studio today. We're talking right now about longevity and longer life expectancies that means planning for 2530. May even forty years of retirement really. What's about how you plan for such a long retirement Scott you have any thoughts on that. That's the dilemma and and Sean touched on earlier. We're in a scenario where interest rates are some all time lows. Market volatility. Is reared its head. And we've had some ups and downs steadily over the last sixteen months. The word people are trying to find more predictable sustainable levels of income. And yes they can that can last round retirement. The key when you're looking at planning for a long retirement. And there are lever that you control or verbal that you can control. And those. Things are. You could. Potentially work longer nobody wants to hear that but that could be something that some people we'll have to do. Some people will transition and have a part time job and make extra money make picture income. Other people will delay sole security. And try to get a larger benefit you know down the road. So those are some of the things that you people need help. Move the needle and you know help them potentially. There are many collapsed in a longer time but it all comes back to. Its gotta be a cohesive plan. And you need to walk through and talk about those variables. With a trusted advisor. And you really need to be alone qualify. Power those are bulls going to make an impact on your plan and Sean and we were just talking about. Some of the softer that we use and waste optimize their retirement plan. And do you have anything to add to that do you see other things that people could implement their plan to make sure they're making good decisions. Well I think any you look at the longevity factor and I hear all the time what Sean. Inside of my play and I'm only gonna live to be 85 years old I'm gonna die ID five. Awesome okay well I'm glad the you know specifically when you're going to die if but. What happens. If you plan go live to be 85 when you go to the doctor at age 83 and a doctor says no but mr. Smith. You're in great health you're doing very well physically mentally you're still there. They expect to live another 78910. Years. What are you going to do if your plans only built. To 85. Year 83 you've got longevity now but your plans only built 85. As you go into income planning and maybe take the velocity that Ellis plans for the worst and hope for the best. It is trying to make a great point of that you know. Play and hope for the best expect the best. And that's really what. I know I see on a daily weekly basis Jon and you do too. Is that most people's Leon's. Are only gonna work out. If the market continues. To do well. And if you think about what the potential outcomes for world in investment is. One is it could go up in value over time. It can go about down in value or could be vaults all slash sideways. And so there's three potential outcomes and someone's portfolio of investments. But again most people or are betting on everything's gonna work out going to be fine there's no real contingency plan for you. Walking markets or yank increased volatility or. Do you interest rates stay low so must you really haven't stressed tested their current scenario. Against the next marker correction. They really haven't stressed tested there are current plan to see how much income key in my plan support. Is it doable. Yet not just using rosy. Assumptions and China this is one of my pet peeves I don't know and you furniture to the oversee. Summon comes in with us. A 102 page financial plan you know from affirm we call it financial planning and by the pound. And we're going through his he's pretty graphs and pictures these charts. That their accounts just keep growing for ever. And an Easter a look at some of the assumptions are using. I know into one I just saw them is the last two weeks there isn't a seven and a half percent consistent greater return. What are your thoughts on that. Well I knew what happens if that doesn't happen. I mean if if the whole plan is built around a best case scenario. What happens if when Evans if they don't get the best case scenario. Unfortunate things of that they and they advisors setting up for failure. Now if if you don't get the seven and a half percent that's being projected their how is your plan going to react. If I'm making my decisions from a planning standpoint I wanna know how my plan would react if I didn't get that best case there. We'll just what happens if you know you really don't wanna be reliant on you know those what if scenarios. You want to have a U wanna have a plan and you wanna have a clearly defined plan. And you don't want to procrastinate and if you're out there listening to the show. And you don't have a plan or if you don't know for sure if your current strategy is going to get you to where you wanna go. Just pick up the phone and give us a call 808842077. Or gonna be something special today is a for the first ten callers on the show. We're going to give you a personalized retirement roadmap revealed in in this review you're gonna get a couple of things are gonna get afford tax looking revealed. You get an income analysis. And investment plan to review and you get an estate planner revealed. Now for this review we usually charge 15100 dollars for the first ten callers on the show today. You'll receive a complimentary. Personalized retirement roadmap revealed. So be one of the first ten collars at 884. To 077. That's 884. To 077. Thanks again for joining us today this is retirement elevated radio where shun me and Scott did in hockey planned well retire well and live well. We're talking right now about longevity how Regan and generate income in retirement how will you make your money last if you lived to be a hundred was then what if you look past a hundred. Well Shaun Scott I have some worry answer for you coming up in our next segment we're back. This is retirements elevated with Sean Lee and Scott do you plug the retirements news network. If you are like most people heading into retirement you probably have a lot of questions and concerns how to get prepared. Who can you trust her advice how can you get the facts and unbiased information how do you avoid making a critical mistake. Maybe you've received an invitation to a fancy dinner seminar at a nice restaurant but in the back of your mind you felt like there must be attached and why would someone find Ian nice steak dinner they didn't have an agenda if you don't wanna be pitched on the newest products but instead are looking for a comprehensive program to help you understand the number of issues you'll face in retirement. The answer may be attending a retirement elevated course instead of a fancy steak house retirement elevating courses are hosted in educational setting. Many times on college campuses. Over two nights to certified financial instructor walk you through it 200 page retirement guide book. And provide you with answers to your questions. These courses are only 49 dollars and include your retirement guidebook. All materials and the opportunity to have firsthand access to a licensed financial professional. If you want the facts instead of a free state dinner retirement elevated may be the answer to learn more. Call 91354328. Well. That's 9135432812. Or go to www. Retirement elevated dot com space is limited most classes sell out and you must register in advance to attend. There are only a few seats left so called 9135432812. Today. Or go to www. Retirement elevated dot com to find out more. You're listening to retirement elevated with Sean Lee and Scott Dugan on the retirement years network. And we're back thanks for joining us today on retirement elevated radio where Sean Lee and Scott did in my hobby playing well retire well and live well. I'm your host Jenn reason act with the retirement news network alongside in studio today and a phone number if you have questions for shine our Scottish summer on their team retirement elevated radio. 88842077. To make sure that your retirement is on the right track to get that second opinion from Shire Scott and 800. 8842077. Sir talking today about longevity and with these higher life expectancies that world I guess expect to now. One of the things is that just exposes you to more of the other risks for for longer periods of times in the other things that we talk about on the show. And let's talk about some of those things now Scott what are some of the other risks that a longer life really has kind of prolonged exposure to. And that's a great question and shuttle Heisman quite a minute time talking about this in our retirement elevated courses. And so if you think about living in a longer life. Not only does it expose you to. Potential. U frequency of market volatility. We think about the eighties and then nine diesels are fairly and volatile times. And a lot of lot of ups and downs but if you go back just the last fifteen years you get to major corrections. And so in fifteen years we've had two major corrections let's say you love another thirty years. Nobody knows but potentially you could run into volatility. And the other thing it does save for a retired at 65 and were living in ninety. That expose us to potentially more health care and health care costs. In the longer we lived. The others potentially other issues. And then the biggie and I think people that know no right. Really are thinking about this is your exposure to taxes. And investors. Anyone out there are from today that doesn't believe it you know taxes are probably going to continue to rise. As time goes why I don't think anyone out there is really thinking that the federal government appetite for revenues going to go away. This is gonna continue to grow so I think here you deftly are exposed to that potential issue having higher taxes. And the reason that's so important and Sean we we discuss this all the time. Is it in the vast majority of resources that people put away for retirement. Are in tax deferred accounts. Meaning IRAs 401 k.s for a treaties for 57 plans. Those are all. Accounts. Tax accounts. That you're deferring taxes alone but when you retire you're gonna start taking money out of those. At that point you were you potentially may be in a higher tax bracket so you definitely have to to look at that. And Sean rhino and were putting plans together we'd look at that we stress test our clients' portfolios against. Longevity. Healthcare. Marker corrections rising taxes. Those are all things it I think. We believe that you should have an idea what the future holds for you. And if it mean everything you just talked about it if you think about it how much of that stuff is in your control. Ned do we have control over rising taxes to have control over what the market as we have yet do we have to fight or any of that stuff. But what we do have control over is how we try to get out in front of and how we now we plan is how we prepare for. For our retirement right but I I don't have any controller with a mark what the government's going to be from a tax perspective. But I do you have control over how I build my plan and how I transition into retirement from a tax perspective I can control some of that stuff. In his searchers Shauna and Kim making their UE we've got to look at. What can we exert control over. We need to insure against that things we can't control. Mean that's think about it all why do you have car insurance why you have homer's insurance what do you have health insurance. Where you're insuring against catastrophic loss things and if you had to pay out of pocket for those things. That would be very expensive and and be detrimental to your financial health. In answer you we you do really need to to get a handle on that. And folks on things you can control. And let's just keep it here in the control bulls. But when we look at tax planning for example. Usually you're CP able look at reverse looked in the past of what will happen to you from a tax perspective. But something is as simple but as important as determining. Where. We pull our money from first second or third how we pull our money out. And in what different tax you know accounts we we generator income from. Can have a pretty dramatic affect on somebody's plant but having that strategy behind it is dramatically important tip to ensure. You know how are we gonna be taxed when are we going to be taxed and what types of tax we're going to pay in retirement. As John that the attack explaining aspects. I think this is missed on most people's situations. Because investment advice is just that its investment advice. And when we look at a complete plain and what Sean I've put together. Is after dealing with hundreds of people over combined thirty years. What are the five key areas. That make up a complete plan. And end. That's the foundational piece most people targeted investment advice. Which is important but they're not getting counsel on the other important pieces Sean just talked about it. In complaining. He would do you have a clearly written in complain and choose you. We are sure money gonna come from. What sources what resource you have in it what's the probability that money is going to last and and Sean I think you'd you do a great job of talking about it and complain and and talking about masonry that the curve balls life and what do the three things that. The hearing complaints should answer your cover that are quick. Well I mean yes and your income plan. What can happen while we can live right and that's yeah that's the ideal scenario we we retire and we live. Well. If we live. We have to to ensure that we have income. And we have to insure against inflation. And those are the one of those silent killers that you don't really you know really see. The other thing that will happen in retirement as we will die. And unfortunately if you're married usually don't die together. And tonight you're leaving a surviving spouse. Where you still need to generate income but you've got all these different things that happened you lose a level are a source of income in most cases with such security you may lose a pension. And then your tax filer status changes from married filing jointly to single which is. Another issue. And then you could become disabled right I mean they need long term care I don't know if anybody. Listening is going to need long term care but we do you know the actual costs around long term care. We just need need to prepare plan for it in some form or fashion it doesn't mean they have to go up by a bunch of insurance says. You may decide that self insuring as the way that you wanna go. And that's OK as long as you're comfortable with that costs and the ramifications of what what what could potentially happen if you have to go down. Is China's and I told people you know we are fiduciary is. Mean we need to give advice for a client is and it's clearly in their best interest. And I tell people you know it's it's our job to talk about these risk it's our job don't you quantify. The effects of these risks but ultimately it's up to you on what decision you make. Is that people there ought to be concerned about it some people it is a priority for them to have something in place. Do hedge against those future cost. But we really believe that net income plane as a foundational. Piece that drives everything else. Because when you're going into that in complaining when she got that defined of what you need what you have. Then that really goes to the investments I think China chief thank you. Yes act absolutely and that your investment decisions should be driven from what your plan needs are. And and how do you wanna solve your income you know that's gonna help drive your investment strategy here investment decisions there. Are you concerned about long term care. What tax concerns you have there so they're all these different areas are pieces to the plan that really need to fit together. If you're listening to the show today. And have some of these things piqued her interest or. We've asked questions that you don't know the answers to Howard encourage you to give us a call today. Assets 808842077. Set up a timed comment and sit down with us. Let us walk you through our process. And let's dig in and give you a thorough analysis. You what is your income plan what does that look like. What's your investment plan in how much risk are you taking what type of fees are you pain inside of your current investment plan. Let's look that your taxes let's look forward down the road are there going to be tax consequences you're not thinking of out and it finally. Let's review year a state plane issues. Now are you making sure that your money is going to go where you want to go in the most efficient and effective manner and and so for the person cow horse today will walk you through and personalize our retirement road map review just for you. Nor will we charged 15100 dollars for the street view but for the first ten caller today to 884. To 077. That's going to be completely complimentary. No charge or obligation. To be and give us a call 808842077. It never hurts get a second opinion. Thanks again for joining us today and retirement elevated radio with shock me and Scott duty and we're talking about longevity today longer lives. Means longer retirements so you have to have a plan to make your money last as long as you do. Stay tuned Sean and Scott we'll have some more strategy Soria coming up in just a moment. You're listening to retirement elevated with Sean Lee and Scott Dugan on the retirements years network. If you are like most people heading into retirement you probably have a lot of questions and concerns how to get prepared. Who can you trust her advice how can you get the facts and unbiased information how do you avoid making a critical mistake. Maybe you've received an invitation to a fancy dinner seminar at a nice restaurant but in the back of your mind you felt like there must be checked and why would someone find Ian nice steak dinner they didn't have an agenda if you don't wanna be pitched on the newest products but instead are looking for a comprehensive program to help you understand the number of issues you'll face in retirement. The answer may be attending a retirement elevated course instead of a fancy steak house retirement elevating courses are hosted in educational setting. Many times on college campuses. Over two nights to certified financial instructor walk you through it 200 page retirement guide book and provide you with answers to your questions. These courses are only 49 dollars and include your retirement guidebook. All materials and the opportunity to have firsthand access to a licensed financial professionals. If you want the facts instead of a free state dinner retirement elevated may be the answer to learn more. Call 91354328. Well. That's 9135432812. Or go to www. Retirement elevated dot com space is limited most classes sell out and you must register in advance to attend. There are only a few seats left so called 9135432812. Today. Or go to www. Retirement elevated dot com to find out more. This is retirements elevated with Sean Lee and Scott Dugan. On the retirement news network. And we're back thanks for joining us today on retirement elevated radio I eons and reason act with their retirement news network here with Sean Lee and Scott did in there with retirement elevated radio show on it's got a hobby playing well retire well and live well. As we get into this last segment of the Saturday if you have questions first Irish Scottish someone on their team the number to call is 800. 8842077. Again and numbers 800. 884 Q 077. In this last part of the show we're gonna go back to the basics on Benton and Scott I wanna start off with a question for you. I'm kind of basic question but that's all right that's what we're doing in the assistant who spurred the show. So do with a 401K. When you leave your job what the rules Otellini you know here. Wasn't very common and you know. Today most people don't work at a job for 203040 years it's Obama collection of 41 k.'s. From various jobs. But those rules he you've got a couple different options that say if you've got to. A forum K from her previous employer. And you start with a new company may have before one K plan. Some plans ally to rule out money over to that 401K. They're read maybe some pluses and minuses to that and in your situation. The more common scenario that I see is people taking that for a when Kahan growing niche to. Roll over higher day. And what that means as were your able to move that 41 K. To payroll over hire a there's no tax consequences if you do that correctly. And the benefit of that. Is that once it's in a rollover IRA. It opens up the universe of options to you as forest investments. That's the one thing about a 41 K depending on the plane and that you have you could be limited to a certain basket. Of investment options. And so some people do like the ability to have. A wider range of choices to invest their money for retirement. And so that's a road say you're looking at forward care rollover. Could be your best interest to to do that Shania having gotten that one. So when you when you look at your options that are out there you Scots and rolling it into a four on cave in to them. Into a new plan with your with your employer. Horry knew whether you use a rollover IRA. Just look at the positives and negatives to each decision that you could make. So what are the what are the benefits to rolling it into a year your new employers for a wanted to know what sort of the investment strategies do they have. What's the fee structure look like. And that that's that's gonna be another. Factor in determining where what route you take. You know when you look at it federal over IRA and what's the fee structure there was sort of investments what I using. But more importantly how does that all fit into your plan you have four options of a what you can do with a 41 K you can leave it there. He could cash it out which aired I don't know that I do with Scott gives some recommendations there are some feedback there what. What happens if you do that you can roll it into an IRA or you could roll it into your new for a one K. But in making these decisions look at the positives and negatives to it to each decision that you could make. But more importantly how does that fit into your plan when you're making those. Those decisions. And show on your point you know vote the pros and cons of pluses and minuses you did mention he'll cashing it out. And unfortunately the statistics tell us that procedure and younger generations. There is said. In incidents of people cashing those foreign k's out. Issue with that there's going to be a 20% withholding. That is mandatory. And so here at 101000 dollar for NK you cash it out. Third of poll 2000 dollars from its. Now most of the people are listening to the show today. Are over the age you're getting close the age of 59 and a half. So that does give them flexibility. When coming to that because. Prior to 59 and a half in my shoe meet some pretty strict requirements. Whether it be first time home buyer education things like that. There's eight initial 10% penalty. For accessing them money prior to 59 and and so. Win you. Put money into a tax deferred status. Meaning in 401K IRA for three before 57. There are rules that you have to. Abide by or there's some pretty stiff penalties. And so we just talked about the 41 K app we pull anything out carpeting and a half its 10%. After 59 half there's no penalty but you have to pay what you've got to pay taxes. On that money. And that's going to be taxed at ordinary income. And but there's another timeframe. Win you or going to be asked to take money out Sean you wanna cover them. When Sony and handles around. And so you. You can start to touch your money at 59 and a half out penalty. But then at age seventy and a half the government's going to require you if you've got an IRA for a long K for a three V. That a tax deferred retirement account to start to pull some of that money now they're not going to let you just grow at different forever. But so at age seventy and a half you're going to be required to pull some money out. And and that money is based off of life expectancy tables the amount the you have to pull out it's a calculation and I don't get a get into that on the radio but. That there's a calculation of determining how much money you need to you need to pull out from those vehicles after he sent Indian. And shell will give give the listeners an example. I'll say you've got. And higher today. And your rate setting now that higher array is worth a million dollars. Well you've got to take out three point 65%. Of that. Account to satisfy the Internal Revenue Service is numbers. So that example million dollar hiring a you've got to take out 36500. Dollars. And you're gonna pay ordinary income tax on maps. But that's the on the surface level that's that taxation and happens at that. But tennis also gets added to your Social Security or pensions so. Read you gotta be careful when your opener drawing money out and especially your force draw money out because it may drive up. Your tax rates higher than you anticipated. And are talking about the basics you know we hear a lot you know. I've got my higher rate junior IRA be better a government borrowing kicking your floral and KB better. Our listeners have to remember that in an IRA or 401K for 57 for a three B. That's just the tax code around an investment it's not the investment itself so you can have you invested anything in a four OK as long as it's. With in the play and same thing with an IRA. But that coding there isn't the actual investment is just the tax code that determines how the investments are taxed. When you pull money out. And and another way to think about that. Is that it tax. Collude and whether higher rate for Owen K. Picture that is the umbrella. Over. The investments and you can put underneath had a brawl whatever you want selection on says it could be a CDS stock and mutual fund and knew that he. Soft rector real state all of those things fit under. That umbrella. And what you put them underneath that umbrella there are certain tax coach yet to abide higher rules. Or there there's going to be some stiff penalties and and one thing back to the basics shown talking about the IRA and seven in half. Listeners out there we talked about pre 59 and a half if you take money out you're gonna pay 10% penalty. Well if you don't take money out when you reach seven and a half half there's also a penalty that the Internal Revenue Service will hit US. And that's a 50%. Penalty. We agree that that's a 550%. Penalty. He has so John you wanna give a quick example of what that. Would look like. SO and in Scott's example when he had Ned you were required to pull off 36000 dollars. Required minimum distribution. If you don't pull that money out. You're going to pay a 50% penalty. If it 181000. Dollar. Penalty. In addition to taxes so. As you're looking into retirement that's that's a big number of making sure that you're you're pulling the proper amount out of your retirement accounts. Or your tax deferred accounts that are are important. If you don't have a strategy to. To withdraw your pardon distributions you haven't put together a plan. You need a process and a step by step process to really build out what we call your clip clearly defined income plan. It's not more information you need it's a process to follow its to help you make decisions based on. On facts and logic. So if you're missing that process it if you don't feel like you've you've got that process as you're listening to the show. Don't procrastinate. If you don't know I've your current strategy you'll get you know where you wanna go and pick up the phone and give us a call 884. To 077. Now for the first ten collars. On the show today. We're gonna give you a personalized retirement roadmap for review. In in this review you'll get afford tax looking review. You get an income analysis and investment plan review and in his state when you. Now for this review usually charge 15100 dollars for the first ten collars on the show today. You will receive a complimentary. Personalized retirement roadmap for. You have to be one of the first ten dollars and 884. To 077. That's 884. To zero cents a. Sean Lee with elevated capitalists are registered investment advisor in the state of Utah Scott to get as an investment advisor representative with the advisory services offered through global financial private capital elevated capital and GF TC are not related companies. Information provided during retirement elevated with Sean Lee and Scott Dugan is for illustrated purposes only and does not constitute investment tax or legal advice.