Excel in Retirement

David Treece introduces you to a new voice. His name is Martin Ruby, and he wrote the book the The No-Compromise Retirement Plan. 

Ruby is an actuary so his perspective is different than what we normally hear. 

Ruby states, “Your IRA is full of risks. In fact, saving for the future is one of the most significant financial risks most of us take in our lifetime.” 

You may understand why listening to what an actuary has to say about retirement planning may be really beneficial.

David outlines 3 Conflicts In Our IRAs that he covers early in the book. 
The conflicts are:
#1 Growth vs. Protection 
#2 Income vs. Legacy 
#3 You vs. the IRS

Each of these conflicts present challenges for our retirement planning. And many people think you have to accommodate these challenges, but you don't!

Also, David will tell you how to get this book for free.

Mark Cuban article mentioned

Nervous about the market article mentioned 


Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. Roth IRAs offer tax free income if distributions are taken after age 59-1/2 and the account has been open for at least 5 years. When converting funds to a Roth IRA, ordinary income taxes are due on the amount converted in the same year, and ideally should be paid with funds outside of the retirement plan. A Roth Conversion is a taxable event and may have several tax related consequences. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. 675011-07/20

It’s possible for your Social Security to be tax free! We all want to keep as much money as possible in our pockets, especially when it comes to retirement planning. 

One way we can keep our money in our pockets is to know what provisional income is and how it causes your Social Security to be taxed. 

On our podcast this week, David outlines how to eliminate taxes on your Social Security. It's not possible for everyone, but it may be for you. Also, he review how to reduce your taxes in retirement by using Roth IRA conversions

Provisional income break down mentioned in the show

Normalcy bias article 

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. Roth IRAs offer tax free income if distributions are taken after age 59-1/2 and the account has been open for at least 5 years. When converting funds to a Roth IRA, ordinary income taxes are due on the amount converted in the same year, and ideally should be paid with funds outside of the retirement plan. A Roth Conversion is a taxable event and may have several tax related consequences. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. 669110 - 7/20

You’ve fully funded your Roth IRAs. What’s next? Is there another way to generate tax-free income in retirement? Yes, there is!

On the podcast this week, I explain another financial vehicle that will allow tax-free income.

The Covid 19 pandemic is causing America to spend like never before to save the economy. You can take steps to protect yourself from the rising tax rate environment we are entering.

How will the government pay for its HUGE bills? Higher taxes! Plus, America is over $26 trillions in debt, so taxes may be going up soon. In fact, we know that taxes are set to go up in 2026.

You have a window of opportunity to position your tax-deferred money in tax-free vehicles over the next 6 years.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. Roth IRAs offer tax free income if distributions are taken after age 59-1/2 and the account has been open for at least 5 years. When converting funds to a Roth IRA, ordinary income taxes are due on the amount converted in the same year, and ideally should be paid with funds outside of the retirement plan.

I'm excited about the podcast this week! I discuss converting your 401k or IRA to a Roth IRA.

To begin the show, I share a quick story about racing bicycles. In one race I crashed. I had to be transported to the hospital on a backboard. Listen in to hear how it happened. I relate the crash to things to look out for in retirement planning.

Think about financial planning like a wheel on a bicycle. You have spokes on your retirement planning wheel. The spokes are healthcare, estate planning, investments, insurance, income, and taxes. We want all these spokes to be true and working properly so that your financial plan is complete.

Also, we want to be aware of what is going on with each of our spokes so we can anticipate potential problems or to ensure things are right. 

In this show I'll explain a report we offer that illustrates how much you are projected to pay in taxes on your qualified money like your 401k or IRAs. You may be able to save money by converting to a Roth IRA.

The report shows if it will be beneficial or not to do a Roth Conversion. I'll tell you how you can get this free report. It's better to be proactive than reactive. I'll explain how Roth IRA conversions may be a proactive move for you. 

Article mentioned linked here 

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. Roth IRAs offer tax free income if distributions are taken after age 59-1/2 and the account has been open for at least 5 years. When converting funds to a Roth IRA, ordinary income taxes are due on the amount converted in the same year, and ideally should be paid with funds outside of the retirement plan. 660184-07/20

On the podcast this week, David begin by sharing a story about how his family adopted their dog, Oscar. It's a fun story! .

The show topic is Sequence of Returns Risk and the impact it can have on your retirement. 

He shares strategy we use at our firm to help combat sequence of returns risk. The strategy involved is called a Fixed Indexed Annuity, and he share how it works. 

He compares it to investing in the stock market and go back in time to show a fixed indexed annuity it would have performed during the "Dot Com" stock market crash and in the Great Recession compared to the stock market.

CNBC article mentioned in the show: https://www.cnbc.com/2020/06/19/the-stock-market-is-running-out-of-steam-with-reopening-trades-fading-and-economic-data-uneven.html

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation.Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice to meet the particular needs of an individual’s situation. Please note, it is not possible to invest directly into the S&P 500® Index; this measure is provided solely as a benchmark of overall market performance. Past performance of the S&P 500®  is not an indication of future performance and is not guaranteed. 655430 - 7/20

In this week’s show David poses the question, “Can you have a well thought financial plan withOUT consideration for America’s Economic Situation being factored into your plan?

It may not come as news to you, but the landscape of retirement planning is changing. We all know the only thing certain is that nothing stays the same. For this reason, we have decided at our firm that we should inform our clients of about issues that could potentially impact them in regard to their retirement planning.

We just crossed over $26 trillion of national debt. We added $2 trillion in just 63 days, folks. These numbers quickly become overwhelming. Yahoo Finance ran a headline recently that said, “Coronavirus pandemic could wipe out Social Security 4 years earlier than predicted.” This was based on the Penn Wharton Model at the University of PA.

Fewer people working means less taxes. Which strains Social Security. The model predicts the trust fund will run out of money by 2032, which is two years earlier than previously predicted. Remember, being proactive is normally better than being reactive. In this week's show David shares some ideas to think about when drawing Social Security.

I’ve specialized since 2011 in helping retirees safely protect their money from stock market losses and have guaranteed income. But I have become aware that that is not enough! We have to help them further insulate themselves from a rising tax rate environment due to the government's budget shortfalls. David explains how to maximize the efficiency of your retirement savings. As always, you can reach David by calling 864.618.4800 or emailing me at [email protected]
 
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier.

This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation.

Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. Roth IRAs offer tax free income if distributions are taken after age 59-1/2 and the account has been open for at least 5 years. When converting funds to a Roth IRA, ordinary income taxes are due on the amount converted in the same year, and ideally should be paid with funds outside of the retirement plan. 650814 

https://finance.yahoo.com/news/coronavirus-pandemic-to-wipe-out-social-security-4-years-sooner-wharton-model-191101417.html#:~:text=The%20coronavirus%20pandemic%20could%20deplete,the%20Penn%20Wharton%20Budget%20Model.&text=In%20an%20April%202020%20report,would%20be%20depleted%20by%202035.

Thanks for tuning in! In this show David goes over what he's reading. Next he goes over a new law called the SECURE Act. Most tax-deferred accounts have changed with the passage of this recent law. The biggest take away is the “stretch IRA” is no longer an option in most circumstances. This was a popular planning strategy & David explains what it is. Also he discusses estate planning. He explains what negative interest rates are and shares how this was mentioned in the financial news recently. He discusses what goes into a Retirement Income Plan and things to consider when retirement is on the horizon. Also he shares how to optimize your portfolio to combat inflation.
https://www.amazon.com/Majesty-Calmness-Individual-Problems-Possibilities/dp/1489553355
https://www.cnbc.com/2020/06/02/negative-interest-rates-could-be-needed-for-a-v-recovery-fed-economist-says.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard&fbclid=IwAR3_WCex_mW2O4AxGVq475qCupzJ6HaA-iMAYNruj_RQW3f8pY_875-wVRI
https://www.investopedia.com/terms/t/taxdeferred.asp
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
https://www.thinkadvisor.com/2019/12/17/5-ways-the-secure-act-would-affect-retirement-529-plans/?kw=5%20Ways%20the%20Secure%20Act%20Would%20Affect%20Retirement,%20529%20Plans&utm_source=email&utm_medium=enl&utm_campaign=insidewealthmngmnt&utm_content=20191218&utm_term=tadv&slreturn=20200007130131
https://www.investopedia.com/ask/answers/102714/how-are-ira-withdrawals-taxed.asp
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier.This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation.Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.

If you’re like many of our clients, you contributed to a 401k or some type of tax-deferred account when the highest marginal tax rate was higher than it is today. Few people actually pay the highest marginal tax rate of 37%, but we talk about it because it’s a bell-weather for what happens with the lower tax-brackets. When the highest rate goes up the lowest rate typically increases as well. Which means our effective tax rate will go up. 

So, you contributed to a tax-deferred account and got a tax break in the year you contributed, which was great for you then! Now you have a window of opportunity to potentially save more in taxes later down the road, because we believe tax rates are likely to be higher. But you have to get moving on your plan soon. The tax breaks Congress passed in 2017 sunset in 2026, and it takes several years to properly transition your retirement savings to tax-free. 

The longer you wait to begin, the more you risk you assume of not being able to transition all of your money to tax-free. We do not recommend paying all the tax in your tax-deferred account in one year and moving it to a tax-free vehicle. We don’t want to double your taxes now to avoid your taxes potentially doubling the future.

But this is all useless info if you are not convinced tax rates will go up in the near future. Do you believe taxes are likely to go up in the near future? Our goal is to help you transition your assets where you will have 4 to 6 streams of tax-free income. But the cost of admission is paying some tax today.

Traditionally how the LTC coverage is obtained is buying a LTC insurance policy that may have a monthly benefit. For example, a person may say, “I’d like to have a $5,000 per month benefit.” Should you need LTC, the insurance company would send you a check for $5,000 per month, typically for a certain period. 

The problem is, if you die peacefully in your sleep typically all your money you put into the policy is gone. There’s got to be another way, right? We all want to believe we won’t need LTC, but what if we do? I had to find a way to help my clients have LTC coverage without the potential to lose the premium they put into their policy. So, here’s a possible solution. Some permanent life insurance policies provide several living benefits. One of which is LTC coverage through the addition of a rider benefit. 

Listen to discover more...

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program. 643225

https://www.fool.com/retirement/2018/09/02/5-long-term-care-stats-that-will-blow-you-away.aspx

Welcome to the first episode of the Excel in Retirement podcast show. I’m David Treece and I’ll be your host. Thank you for taking a few minutes to listen in. 

In today’s show we look at the ramifications of drawing Social Security early. 

Social Security is complex and everybody is a little different. I’ve actually heard that the Social Security rules or laws are more expansive than the IRS tax code if you can believe that…

When 62 rolls around many people begin wondering if they should pull the trigger on SS. 

It’s really a longevity question and how long you think you’ll live. If you start taking SS at 62 and die at 65, clearly it was a good thing…

But I want to challenge you think about it in a way that you may not have before. 

So, your 62nd birthday is coming up. Maybe you’re wondering should I start collecting Social Security?

If you’re still working full-time, or if you file taxes with your spouse and they are still working, it may not make a lot of sense.
 
 Why? Because when taking benefits EARLY $1 of benefits is deducted from your Social Security benefit for every $2 of earnings over $16,920 (a). So, you’re going to end up paying a lot of your benefit back in taxes.
 
BUT there is a more important factor. People are increasingly living longer, so when making financial decisions it is important to consider what happens if you live to be 95 or 100 years old.
 
According to the government (b) the number of people over 90 tripled between 1980 and 2010. With the upcoming census, these figures are sure to increase.
 
If you turn 62 in 2020 and you begin Social Security, your benefit will be reduced by 28.33% according to the government. Once you start it, that is the way it is (a).
 
If you were going to collect $1,000 at full retirement age and began taking at 62, you would receive $716.70. That is a loss of $283.30 per month (a).
 
But let’s say you were able to wait until full retirement age and collect the full payment.
 
According to my calculations, if you invested the difference of $283.30 and earned a compounding 4% return for 30 years, that $283.30 per month would grow to $199,211.86.
 
When making decisions about whether to draw your benefit early, think about it as a potential $199,211.86 decision.
 
Everyone’s financial situation is different, but delaying Social Security for as long as possible can often seem like a good idea. When making decisions about drawing Social Security it's a good idea to speak with a qualified tax advisor. 

If you would like to speak with me about any of these ideas or any financial planning questions you have I can be reached at 864.618.4800 or you can check us out at clientsexcel.com 

Now for the disclaimer
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Our firm is not affiliated with the U.S. Government or any governmental agency. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.

I hope you’ll join me for our next show! Have a great day! 

 https://www.ssa.gov/planners/retire/agereduction.html

 https://www.thoughtco.com/living-past-90-in-america-3321510