Mar 22, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Good Saturday Austin. Broadcasting from the top thirteen seventy studios you're listening to fight its alliance with fewer host -- -- Blackburn. No one would drive across country without a road -- why I had 2530. Years into retirement. Did -- -- plan for success. Blackburn and her financial life specialty has also been featured weekly on its debut its most states you. And she brings that same healthful life changing information doesn't talk radio is listening audience. Here's your -- Suzanne black. Yeah. Welcome to financial life -- -- at Blackburn and if you're within ten years of retirement. During the transition period. An accumulation of assets. To preservation. Of assets and you need to focus on not ever running out of money. Not just your risk tolerance. So we're gonna talk today about taxes. In inflation. And little bit of market risk that I and then also share a case study in the next segment. Say you can get an identification. Of some tax wise moves they'll help you look in your retirement planning. You know. I don't mind paying taxes on income now and then and spending. But paying taxes on accounts that are designed only. For later later spending -- problem with that because those -- accounts. That the purpose of them is to grow. And -- to grow. For my income later. Not for today. So let's just say I've -- income coming in and then I've got -- side account and that side account is generating. Gains. Will Wear my -- get the taxes. To pay. The gains on those. With accounts that are earmarked for growth guess what from my incoming now. So there are ways to create that account -- or to. Position that account where you don't have to pay taxes today. Whenever we pay taxes. On accounts that are designed for growth later I'm gonna give -- term. It's called phantom income. Phantom income is what I wanna talk about today. Go to the website at capstar financial. Dot com for more information let me know that phantom income. As we talk about this you know if that's interesting TU because. We are in a very high tax environment. There's been some new tax -- if you've been listening to financial wise. I had against. A CPA the last two weeks on different tax changes that are affecting retirees. And there's some penalties that happened as a result of growing assets in a brokerage account that are new for 2013. And one of them is an increase in net tax for your brokerage account so. You know in the taxes come in a variety of forms capital gains. Interest and come. Dividends that are reinvested. He got to pay tax on all that stuff this is how we can possibly. You know reduce your taxes by calling our office go to my website kept happening to dot com. But Social Security I don't know if you remember but if you're still working surely you know fight -- -- is that wonderful little part of your paycheck. Where a big -- goes to Social Security to Medicare and Medicaid all these different entitlement programs for later in life. You're paying taxes now. On the entitlements that you're going to receive later. But guess what folks if you're in retirement now. And you make over a certain -- is certain amount of money you're paying taxes on those same accounts twice. So Social Security can be taxed two times. I don't know there's something about. All that that just bothers me tremendously. So you don't want unnecessary Social Security taxes right go to the website at capstar. Financial. Dot com for more information. We will contact you to help you organize your financial plan. So that you can reduce that. We can reduce set up to 20%. By just repositioning money around a tea. You know with this phantom income let's talk about that for a second. So as a retired person or someone that's approaching retirement. You're building three different buckets I help. What we suggest is that you have some tax free growth. You've got some taxable growth as we brokerage accounts and then you also have accounts that are in your 401 -- entire race. Now the -- in case in the IRAs are growing tax deferred. Your brokerage accounts. All the growth inside there is taxable. Now. When you reach this there's some wonderful years between the ages of sixty in seven -- called those the ten golden years. Because those ten golden years if you've done your work right you've got a big IRA or 401K your 403 B. That's wonderful. But if we don't start organizing those withdrawals. Those. You know contributions and distributions. Coming out if we don't organize those properly. When you hit seventy and a half. You're going to have to take out a percentage. Of that account. And if you don't take out the percentage that the government tells you. You have a 50% penalty. And they're gonna take that penalty regardless so you've got to take that out. So you know I -- and borrowing case folks our partnership. With Uncle Sam I don't know if you realize that. But we knew agreed to put money into those retirement accounts while you were working. Uncle Sam said you know you only quarter on that dollar in the equivalent whatever the tax rate would be you own -- money on that dollar. So I'm gonna allow you to openness account called a 401K. IRA. Book three B 457 whatever the incarnation is as -- kind of the same tax rates whenever you -- when you do a distribution. The contribution. Is a different story and that's to benefit the employer. Help you with you know limits so forth. So let's just talk about that partnership. So Uncle Sam. With his incredible wisdom said you can -- in -- dollar into this retirement account. Now the rules on that are steep. And you need to know what that is knowing you're contributing. It does some great things for you today. So today -- it does is it lowers your taxable not your AG you're just -- gross income right it's great. But what happens on the backhand. Is a really big deal if you don't plan for it -- put those dollars away into the 401K. Putting them every year. Now you're building that account it's growing the markets are doing well were making money that's great. But guess what folks to things happen in that account number one. Is every dollar that you put -- to -- -- grows. When you start to do distribution. And at retirement age 59 and a half for older. You take that dollar out it's not a capital gains rate of 15%. It's not an ordinary income tax rate. So if you're ordinary income tax rate is 172530. When you take that dollar added that account. You gotta pay ordinary income tax on that as if you were still working. Okay which is a very different tax rate than if it was sitting in a brokerage account. -- can penalize you up to 10%. They're gonna take away. An additional 10%. In tax just because they've allowed you to grow that in a tax deferred manner in a 401K. All right nothing wrong that that you need to know the rules. Now the next thing that I wanna say is that. Whenever whenever you are growing money in a 401K and IRA. It's wonderful and we're in a situation a situation like Korean right now. Where the markets are going up in your growing money wonderful. But how many of you all remember 20080. Lord how about in of the Greece crisis a year and a half ago. Now when you've got money in a 401K. And you lose it because of market risk and it goes down. And it's just gone folks you don't get a tax deductions there's no tax deduction for that loss like there would be in a brokerage account one that would sit outside of a 401K. So if you lose money at a brokerage account 10% 20% because of a correction. You still have to take when you start withdrawing that dollar out of that account for income is still pay ordinary income taxes on the withdraw. Regardless. Of if it was. Lower than it was when it started. Now when we come back. I'm gonna give you a case study. Of how we literally saved a client 29000. Dollars. In adjusted gross income that was taxable costing that family about 6000 year. So come on back to financial lies. And will talk more about that topic. And remember folks. Some are financial eyes and the rest. Are otherwise. I'm c.'s deadline. You have a new appointment on your calendar and it involves neat. About one hour of your time and a desire to protect information so make the appointment and keep it hello -- -- Blackburn financial lies and I'm partnering with the author and CPA Arafat elite for tasks to Tuesdays now we'll be Affordable Care Act this year it represents the largest city tax laws and change that the higher. His head to implement in over twenty years it's the single biggest change in how we finance health care since Medicare was created in 1960s by this is a big deal and now you can get big ideas on how to avoid the high cost of the Affordable Care Act. Remember her tax hit Tuesdays during February and march from noon to one. Think join me along with my colleague a -- bluntly and given details on campus our financial dot com. Investment advisory services offered through global financial private capital LLC and it's easy registered investment advisor. Welcome back to financial -- With your host -- -- Blackburn. Welcome back to financial lines here's your retirement quiz question. How much monthly income. We you need during retirement. To account for inflation. For taxes. And along life. Now we're talking about taxes today on financial -- And how much in -- is lost. Duty over taxation or lack of planning. Nobody would take a trip. And that car without a road map right why are you going 2530. Years in your retirement. Without good tax planning. Now this segment I'm gonna share with you an actual case study that we did it capstar. That was phenomenal to help a family of full aid. Brokerage account taxes. And ensure that they had the least amount taxes possible. Now this was a family I'm gonna call Brenda and Bob. Brenda and Bob had worked both of them in their fields done very well save. Paid for their kids college education and they had three children beautiful family really neat people. But what happened. Is when you start to acquire a lot of wealth is a whole new set of problems. That takes place -- so I -- -- -- -- I'd love those problems. Well it's true but if you don't get with a retirement specialists someone that specializes specifically in those years of 62. In 1980 OK and deal with president preservation of assets and distribution of assets if you don't meet with someone like us. You're going to be in big trouble. Because the accumulation. Specialist the guy that's all about growth at all costs and you know not dealing with the tax issues and distribution and a mark in all that. -- you're not gonna get the same level of of confidence. In retirement -- you will from a retirement specialist. So. Call our office at 5122159030. And get some help will help you put the road maps together. Now back -- this case study this is a very very powerful. Brenda and Bob. Now what they did is they had approximately. I don't know cash. Ten counts that were spread out. They had some bank accounts with money in -- they had some brokerage accounts through the years. Had done some work with a lot of different big bucks brokerages happy and they were told. Diversify diversify. Okay great but when we're talking about retirement planning diversification is very key. But taxation has to be dealt with folks so we're talking about accounts that are sitting outside. Of IRAs. So when you haven't account sitting outside of your IRA. You've got a look at how is it growing and how my tax on that growth. So they had approximately let's just say 6700000. Sitting outside. Of their 401K. Another 401 k.s were also roughly 67 may be a million dollars -- IRA money. So when they reached the point. And not in their sixties. They met with me and they said wow what can we do we want to lower our risk we wanna preserve the ascent we wanna make sure that. You know we're doing all -- candy never run out of money. So the first thing that I saw. Was the phantom income. Now what am -- talking about. The 600000. That was sitting in brokerage accounts was generating approximately. Gosh I don't know. 67000. Dollars in additional taxes. That they were having to pay every year from their income streams. Because it was -- is positioned wrong it was and things that we're generating additional tax. And those monies were did designed for growth later. So at our office we looked at you know what I said in the pretax dollars the taxable dollars. That are in your four rolling K ire -- and how those are and then the brokerage accounts. So if if you're not looking at that total picture you're really missing the boat and you're paying a lot of unnecessary taxes folks. You kind of retirement you've lost your deductions exclusions. And credits. All right your children were great deduction but they're all gone rates in their own deductions. Look at -- They've got their own stuff so. Uncle Sam knows this this is a secret that they know that when you start withdrawing your 40 in case in IRAs. You're taxing you have no. You know you hear -- standard deductions there's no business expenses working expenses child credits I mean really. At least I hope not. Appear in -- sixties and your pain and child credits calm me I need to know about you. So anyway the the adjusted gross income you know when you look at that front page of your 1040. When I look at that I'm looking for clues. Of how can I help you lower your tax burden. Because they just initiated. An additional. Income tax. On investment in come of three point 8%. On certain people that are earning different levels. And what I wanna do is I want to identify. If you fall into that. Because -- you know lost a lot of income if you have income coming in this particular client. It would cost some additional 15100 dollars every single year. I don't know that you but that's 15100 dollars I can -- somewhere else besides senator government. So just pay taxes on your income that you need to live on not on the money that's designed for growth for later. So the other thing that we were able to do is lower the risk. On their brokerage accounts so that we could be more risky. If you will on before -- case. And they could really really grow those in a manner when we have a great boom market like we've got right now which is it gonna last forever frankly. But the other money is completely secure. And can not go down below zero so and as far as. Deep principles protected. And you're not gonna lose money you're gonna get growth every year -- and but she can't lose money so there's a lot of things that we can do. Now the up coming. Required minimum distribution that this couple are going to have to make when they hit seventy. Remember what I said. You have those ten years. Of wonderful -- between sixty and seventy. That we can sit down. And organize. How you're going to withdraw. Your borrowing K in hiring police you've got to meet with a retirement specialists because. If you're spending money from the wrong bucket. And then all of a sudden you hit seventy. And you've got this GI enormous I know that's not a word but it's a really nice word. -- had this -- enormous. Required minimum distribution and that you have to take remember what I told you the IRA's in the -- in case you're in a partnership. With Uncle Sam. So you better know the rules of that partnership or you're gonna have. It's going to be ugly when you hit seventy. I can tell yet. From dealing with clients that didn't do proper planning that when they have those required minimum distributions come an end. And they have to take out. 40050070000. From an IRA. That they weren't anticipating needing that in come. Okay my goodness what he gonna do and now you just doubled your taxes she gonna get half of it to Uncle Sam really. That was bad bad planning. So if you organize it and you do it differently between the ages of sixty and seventy. By the time you get to the required. Minimum distributions. Guess what we've punched a hole -- uncle Sam's plan with punched a big hole into his tax plan. You taking that money out with no deductions exclusions and credits. And having to take the full brunt of income taxation. So if you get with a retirement specialists we can help you I'm caps their financial. It's 512215. 9030. And we've flat no or doing around tax planning this is our specialty. The accumulation. Specialist. Got you where you bar. They worked hard they've gotten you there with growth at all costs the market's doing great. But guess what folks you've got to realize there's a bubble that will burst and it's called taxation. And if you don't deal with that you're being trouble. So we're gonna deal with phantom income when you come in in my office that. Now remember but some folks have financial lives and never rest and our other lives and sees that black thing. Are you ready. Because the new normal in our complicated financial world may confuse you and financial -- radio Suzanne Blackburn wants to talk with you about it's it's coming Tuesday or Thursday march 25 or 27 starting at 630. -- Suzanne it -- is landing cattle are still discuss your social security and retirement income and how the ballooning national -- and federal deficit can play a coordinate and lower risk strategies to help your money last total barrier head in the sand because your confused it's time to see clearly what the future could have waiting for you and a new normal will involve view whether you're prepared for it. And we're not just. Go to capstar financial dot com and register now or call 5122159. B thirty. Remember the next seminars are offered Tuesday or Thursday march 25 or 47 and 630. Golf 5122159. -- thirty to reserve your seat. That's 5122159. -- thirty. No individual tax or legal list minimizes -- investment advisory services to global financial try to double LC and SEC registered investment advisor. Welcome back to financial lies with -- -- -- Suzanne Blackburn. Retirement gained changes are coming up with -- Blackburn remember. We've got some events coming up this next week. And retirement sounds great but then you faint you know really. You really start to think. And I get a run out of money. What about the latest you know craze is it gonna be another downturn like in 2008 are we gonna have this great bull market. Are you worried about when -- storms hit are you protected. Are you sick here. -- -- have money for long term care what about the game changer. Taxes inflation market risk -- register now if you call 512. 2159030. You can come here mis speak and not answer your specific questions. About taxes inflation and market risk the models that we work with what's the difference between. A registered investment representative -- a stockbroker. The insurance products that are out there now. This next Tuesday. Write this down march 25. Or Thursday march 27 at 630. Where Texas planning cat partly planned mall nine you've got a call and that's filling up quickly. In fact I think one of those is already full of so called our office at 5122159030. And we every month have first Monday luncheon -- Monday April the seventh. From twelve to one at our north office location. I'd love to see. Will buy you stand like she can have lunch with us and I'll share with few tips. And all kinds of wonderful financial wise things you'll need for your retirement gain changer. So we have this dinner event march 25 and 27 I need to call land because we're running out of space for yield. It's a new world economy folks -- office line is 5122159030. Now our web site has some great things is is you know on. This -- on this radio show I try to give you grade information that you can use to protect yourself. But if you go to capstar. Financial dot com. A lot of my KB you interviews are there with -- Campos. Also there is mine -- view spot when we were doing the news. Last year you concede those segments. And all kinds of great information. You know you've got to be proactive folks don't be asleep. The market's going up that's wonderful but you've still got up playing and nothing stays the same change. Is the constant. Right and just think about your health right now this is always a factor that I am working with clients have -- I had somebody call me today and say you know. We make a good dot easily make a good buck but I haven't put a written plan together. And I needed DNC's. So we're gonna get together next week and just really put together. A road map a life plan so that he knows he and his wife know they're going to be okay. You need to do that to folks come on don't be asleep during these great times you're an expert in your field. We are experts in retirement planning and we can help you it's 512. 215. 9030. And you can schedule an appointment to see us on the web site. So I look forward to seeing you in my office or in one of our great. Dinner events that we have coming up. And remember. Some folks are financial eyes and hand her -- are otherwise I'm -- deadline for. Tax legal or investment advice is -- an investment advisory services offered through global financial crisis capital LLC and SEC registered investment advice -- global financial trident capital has no affiliation with the news agencies represented here the views expressed -- not necessarily reflect the views on global financial private capital global financial private capital makes no representational warranties about the accuracy and reliability. Or timeliness of the content they do not recommend or endorsed any specific information contained -- insurance services and products offered -- -- -- financial LLC -- insurance and annuity product guarantees are subject to the claims paying ability of issuing company -- any comments regarding safe and secure investments in guaranteed income streams referring only to the fixed interest products they do not return you can't wait securities or investment advisory products global financial private capital LLC kept. To LLC or an affiliated companies. You have a new appointment on your calendar and it involves neat. About one hour of your time and a desire to protect information so make the appointment and keep it hello I'm -- Blackburn financial life and I'm partnering with the author and CPA Arafat elite for tax -- Tuesdays now we'll be Affordable Care Act this year it represents the largest city tax laws and change that the higher. His head to implement in over twenty years it's the single biggest change in how we finance health care since Medicare was created in 1960s. By this is a big deal and now you can get big ideas on how to avoid the high cost of the Affordable Care Act. Remember her tax -- Tuesdays during February and march from noon to one. Think join me along with my colleagues how to read finally and give details on campus our financial dot com. Investment advisory services offered through global financial private capital LLC and it's easy registered investment advisor.