Winning at Life with Gregory Ricks

01:41 - Venezuela is expected to have 1,000,000% inflation this year, and GDP growth of -18% according to the IMF. It's a real humanitarian crisis that has deteriorated to one of the worst hyperinflation collapses in history.

06:42 - Commerce Secretary Wilbur Ross says we could have a new trade deal worked out with Mexico soon. The new President-Elect of Mexico already has a team working with a team Trump assembled to replace the old NAFTA rules. The new guy gets sworn in on December 1st, and we may have a deal ready to sign by then.

10:44 - It's possible that 5 states have a debt spiral they can't escape without reforming their pension systems. Gregory sees the shift from defined-benefit plans to defined-contribution plans, and how to best utilize those tools.

13:06 - What do you do when your 401k loan is ended? Gregory explains the two most likely scenarios: you leave the job, or you miss the payments. If you leave the job, whether voluntary or not, the unpaid portions of your loan will be considered a plan loan offset. If your loan ends because you miss too many payments, it will be considered a deemed distribution.

27:24 - Gregory teaches you the different timelines allowed when settling up a deemed distribution and a plan loan offset.

30:03 - The Numbers are mostly positive, but Facebook had the worst one-day market cap loss in history.

37:20 - A check scammer was using the identities of famous people in Florida for years.

http://www.WinningAtLife.com

01:01 - Trump and the head of the EU announce an agreement to end the tariff battles between the United States and European Union. Juncker, the EU President, added they would also up their purchases of US soybeans and natural gas. This appears to help us ecnonmically with Europe, and put the squeeze on Russia and China. We hear some audio from Trump and Juncker going into more details about the agreement, and Gregory explains how this is good news for your investments.

14:10 - A report claims oil could soon be $200 per barrel. Gregory breaks down the report that focuses on how ultra-low sulphur regulations could make things quite expensive for the oil industry and industrial companies reliant on fossil fuels. Will natural gas be able to fill some of the market vacated by skyrocketing gasoline?

23:27 - Byron in Houma says natural gas isn't really a good fit for personal vehicles, because it's not so easy to transfer and store. Gregory agrees that as the technology stands now, the danger sounds a little steep for LNG based engines, but if we could efficiently change natural gas into more stable form of fuel, that's a more likely solution.

27:54 - Bob in Bay St Louis is going to use the proceeds from a home sale to buy a new house. Should he put all his money down on the house to keep the payments low, or should he put the minimum down and keep a cash reserve? Gregory asks a few questions and thinks Bob may want to look into the details on how a reverse purchase could fit his situation.

35:57 - The Numbers segment is positive for our major indices, but most of those gains were in the last hour of trading when the EU deal was announced. Facebook is taking a double-digit beating in share price after their Q2 earnings came in with a rare miss.

http://www.WinningAtLife.com

01:10 - Mississippi's tax-free school shopping holiday is this weekend. James finds it odd that the tax-free holiday for school shopping doesn't include actual school supplies. On the other side of the border, Louisiana just cancelled its tax-free holidays for the next 7 years.

06:40 - Demographic reports show that people are migrating to Texas and Florida more than any other states. It's probably a good combination of weather and no income tax. The states people are leaving the most: Illinois and West Virginia.

12:39 - A piece of financial advice from the TV show Cheers weaves in neatly with a Joe in Metairie, who is thinking about taking a loan from his 401k to cover the cost of getting into an investment property. Gregory is usually against making such a move, but after a few probing questions, Joe may be making a good move here.

19:21 - How do you know if you're getting a good deal on a real estate investment? Gregory gives you some guidance on how to evaluate investment properties.

23:38 - Bitcoin is still in the dumps and having problems. There's still some optimism for the face of the crypto world, but another crypto-scam in the news doesn't help.

30:18 - The Numbers are strong in light of a stellar start to Q2 earnings season.

34:09 - Gregory reports on credit-default swaps being used to trade Tesla's debt contracts.

39.55 - Google is crushing it. They beat earnings, and have much more room to grow.

http://www.WinningAtLife.com

02:49 - Gregory tells about his face off with a raccoon in the backyard.

17:91 - The duck boat tragedy in Missouri is horrible, and reminds Gregory of his experience in a duck boat ride. Gregory isn't much for taking risks these days, especially considering the amount of people who are counting on him.

21:21 - The annual report on the state of retirement savings in America shows that people are doing a better job of saving than previous years, but are still behind schedule. Gregory warns against using overly optimistic returns on your investments when planning for the future. If you plan for 7% returns on your money, but only get 5%, you will be behind. If you plan for 4%, but get 5%, you will have a little extra cushion.

25:55 - Mosquito Joe gets a shotu out. West Nile has shown up in Louisiana, but there's no bugs in Gregory's yard.

27:24 - Susan in New Orleans asks Gregory: Would you ever put an annuity in an IRA? Gregory says yes, sometimes it's the right thing to use a fixed annuity in an IRA.

33:15 - CALPERS, the largest public pension in the US, is going to have to make some serious changes soon to avoid a total meltdown.

37:47 - Defined benefit plans are proving to be a problem over the long term, and will have to give way to defined contribution plans. If you don't make your anticipated returns on a defined contribution plans, there's no pain to the outside world, but if you don't make your returns on a defined benefit plan, someone is going to have to pay up: usually either the company or taxpayers.

40:51 - Joe in Metairie is thinking about taking a loan from his 401k to cover the cost of getting into an investment property. Gregory is usually against making such a move, but after a few probing questions, Joe may be making a good move here.

47:44 - Jude Heath, CPA of the Total Wealth Authority, helps us break down the proposals floated for Tax Reform 2.0. Gregory hears the push for annuities, and is concerned Wall Street may be using their influence for that to include variable annuities. Bending policy curves toward fixed annuities could be a great alternative to the defined-benefit plans supplying income to retirees. Jude Heath agrees that tax policy could easily be tweaked to encourage and reward savers. Lifting the earning cap and contribution limits on 401ks and IRAs would be good start, and capping taxes on distribution would be helpful on the back end.

1:00:45 - Tax Reform 2.0 continues to be dissected byt Gregory Ricks and Jude Heath. For all of the tax breaks mentioned, will Congress be able to get this passed as is, or will they have to balance out the lost revenue with spending cuts and/or tax hikes elsewhere?

1:01:54 - Carol in Mississippi asks if the states also charge a penalty for IRA distributions before age 59.5? Gregory says that penalty is at the federal level only, although states will tax retirement benefits differently.

1:09:21 - Steve in Slidell heard Gregory mention that 401k withdrawals have no penalty if you separated from the employer after age 55. Does that still hold true if you roll that 401k into an IRA?

1:13:07 - The proposed Universal Savings Accounts don't seem to make much sense. Gregory and Jude talk about how similar financial tools already exist, and it would be better to simply make some minor changes to the Roth IRA rules rather than create a whole new financial structure.

1:21:25 - Gregroy and Jude agree we should expand HSAs. Tax Reform 2.0 mentions the idea of making Health Savings Accounts available to more people, and possibly lifting the contribution amount. Gregory would like to see HSAs for everyone, and the contribution limits need to be much higher. Jude agree that would be huge.

1:33:46 - Gregory talks about having a fun day at the racetrack: NOLA Motorsports Park.

1:41:59 - Of the Millenials who have purchased a home, 68% are unhappy with it. Some of this can be explained by the drag on time and resources, but that only means Millenials had unreal expectations going into the deal. Owning a home causes many little expenses that are rarely discussed: the monthly home alarm bill, the quarterly pest control, appliances breaking, lawn care, painting, and anything a kid can break.

1:50:35 - Americans will pay $104 billion in credit card interest and fees this year.

1:52:57 - Chase in Gulfport has $2,000 in extra income monthly to invest. Should he pay down his mortgage with that money, or is there better options? Gregory asks a few questions, and has some powerful investing options for that money, maybe even using a 7702 plan.

2:07:44 - Cici in Sardis asks Gregory if her mortgage payments should have whittled away more principle than reported. Gregory explains how most of her payment is going to taxes, insurance, and interest, rather than principle. As the mortgage moves along, the principle payoff should accelerate.

2:09:57 - Michael in Imlay City, Michigan asks Gregory about the commercials selling you gold in your IRA: can you actually hold your physical gold investments personally if you're buying them through your IRA? Gregory warns that could be considered self dealing, and generally leans away from physical gold as an investment tool.

http://www.WinningAtLife.com

01:18 - Gregory explains how Trump should factor into your financial decisions.

03:52 - Gregory reports on how much of our national debt is held by foreign countries, and how many countries have sold off big chunks of our bonds. Russia has unloaded most of their bond holdings, and has been buying up gold. What's going on with that?

13:13 - Russia's GDP has fallen by almost half since the price of oil crashed a few years ago. Gregory shows how Russia lost money dumping our bonds, and lost money on the gold they've been acquiring in recent years.

16:10 - Gregory shares how he evaluates a stock. Start with the company, it's earnings, do the books look good? Is the stock in a buying position? You have to make sure you're buying the right company, and you're buying it at the right time. Maybe you should wait a day or two if you're not sure.

19:41 - China is a much bigger economic counterweight to the United States than Russia. Their economy is around ten times as big, and China holds over a trillion in US debt. Russia is a bit player compared to China when it comes to affecting our economy and your money. The rest of the list on US debt holdings by country is a fun discussion.

25:03 - Gregory expects Russia to attempt to influence any and every election they can. Every country tries to influence any election they can. China, North Korea, Russia, Iran, and those countries are probably trying to hack anything and everything they can at all times, but here's the better part: we probably get hack attempts from allies like the UK, France, and Germany.

26:29 - What happens to all of the Burberry merchandise that goes unsold? Gregory reveals a common practice of the high end retail industry to maintain status and price: they burn it.

32:29 - We have a new richest man in the world: Jeff Bezos.

34:22 - The highest paid celebrities list is always interesting. Good to see the Rock doing so well.
37:21 - The Numbers come in a bit mixed, but a report says Tesla's cancellations are outpacing new reservations. Gregory questions the logic of a country with $21 trillion in debt continuing to subsidize companies like Tesla.

http://www.WinningAtLife.com

01:33 - Tax Reform 2.0 is in the early stages of discussion, and Gregory breaks down the different proposals being talked about. One of the issues they want to address is encouraging retirement savings. Gregory Ricks pokes holes in some of the ideas being reported, including the Universal Savings Account. Gregory sees what they are trying to do, and points out a much simpler fix to get to where they want to be. The government needs to give up some tax incentives to encourage saving now, to save on revenue in the long term when people are less likely to need Medicaid.

15:32 - Gregory continues to break down the proposals reported in Tax Reform 2.0, and offers some of his own ideas for Congress to consider.

25:04 - Gregory gives some quick thoughts on the politics of the day. Watching how Trump handles Putin, it is clear he is going about it like a businessman and not a politician. Anyone who doesn't understand why Trump is being so polite and gracious to Putin doesn't understand how negotiation usually work in the business world.

27:46 - Jonathan in West Virginia asks Gregory how to know if his 401k is performing well or not. Some coworkers bragged about huge gains, and Jonathan wonders if he's done something wrong.

36:02 - Jake in Larose is thinking about buying tax leins on properties in hopes of eventually getting ownership on the cheap. Gregory explains the various points of risk, and generally leans away from getting into any venture with so many unknowns.

40:49 - Chase in Gulfport has $2,000 in extra income monthly to invest. Should he pay down his mortgage with that money, or is there better options? Gregory asks a few questions, and has some powerful investing options for that money, maybe even using a 7702 plan.

http://www.WinningAtLife.com

Check out our available Zoom classes: http://inspirlang.com/zoom

Get our digital/paperback book at https://inspirlang.com/lovemando

View podcast transcription at https://inspirlang.com/mandopod

Youtube: https://youtube.com/c/inspirlang

Facebook: https://facebook.com/inspirlang

Instagram: @inspirlang

Twitter: @inspirlang

01:41 - The IRS formally approves of the backdoor Roth IRA. You can contribute to a Roth IRA directly up to a certain income level, but you can still contribute to non-deductable IRA and convert it to a Roth IRA. The rules were even confirmed in the Tax Cut and Jobs Act of 2017, and it's a great way for high income earners to diversify their tax liability in retirement.

06:46 - Today is Amazon Prime Day, but there doesn't seem to be as much fanfare as last year. The Amazon psuedo-holiday is being crowded with an avalanche of other retailers announcing their super-special deals for the day. Gregory and James note this event that started as a way for Amazon to celebrate its birthday is becoming Black Friday in July, and that could be a good thing.

15:43 - James observes how the speech in the office at Gregory Ricks and Associates is full of coded language and unusually vague speech. It's not simply the addition of complex financial terms or acronyms, but the protection of personal client information compels various changes as well. The crew seems to be well practiced in ways to tell someone's personal situation without including personal details.

20:35 - Gregory wants to coin a new term for the strategy of taking out a reverse mortgage and leaving a significant line of credit untouched so it can take advantage of growth from interest.

25:55 - Another tax free income stream was combined with a client's modest pension and Social Security benefits to give a client a total if $58,000 of income with only $18,000 of it being taxable. Using 7702 based income stream saves her thousands per year in taxes.

34:44 - Gregory teaches you the Step Transaction Doctrine. The legal precedent dates back to 1935, and if the IRS thinks you're making moves with the specific intent of getting around a tax, you could have problems. Do not work in a gray area, and if you're not sure, get a second opinion.

http://www.WinningAtLife.com

02:36 - Once you get out of the market, where should that money go? Gregory and James review the call from Tom in Houma on Saturday's show, and Gregory goes a little bit deeper into how to assign different jobs to different groups of your assets. If you're getting out of the market because you think it's on its way down, you need to position those assets to be able to jump right back in the market on a moment's notice when things turn around. If you're exiting the market permanently, it's time to review your risk tolerance to see what tools would be appropriate.

17:32 - Gregory Ricks reviews the highlight caller Tam from New Orleans, who is thinking about getting a vacation home, and wants to know how to take the best financial advantage from it. Gregory often sees people wanting to get into real estate on the side, and the success stories come from people who treat it like a serious business. If you're just trying to squeeze a few extra bucks out of a second property you were going to buy anyway, that's one thing. If you're trying to turn this into a reliable source of income, one rental is probably not going to cut it.

21:53 - Jim watching on Facebook Live asks Gregory's thoughts on dabbling with Puts and Calls in your brokerage account to make a little extra money. Gregory warns Jim of the extra risk involved with that area, and says the more cautious investors steer clear.

28:05 - Numbers

33:57 - Gregory relays a discussion with a client about how to better guess what changes will be made by politicians that affect your money. When you look at the decision making process from the person who is just concerned about the next election, you will form more accurate expectations.

36:01 - Oil dropped 5% in one day.

40:40 - Sandra in Slidell wants Gregory's help in getting her debt under control. She has a mortgage, credit cards, student loans, and a few other smaller debts. Gregory recommends dialing her lifestyle back in the short term to get the credit cards paid off ASAP, and then reevaluate your situation. A lot of it will depend on if you plan on staying in your house, or could move soon.

http://www.WinningAtLife.com

02:12 - With all of the options out there, the radio format with the greatest share of the audience is News Talk. While music radio has been losing listening time to other sources of music, new media platforms have actually enabled a nice increase in the listenership of News Talk programming.

05:54 - A new game show is coming to TruTV where the winning prize is paying off your student loans.

07:50 - Gregory shares the situation of a pension buyout offer in his office today, and how he walks his client through the process of determining if the offer is a good deal. Since the client is 68 and his job is ending in a few months, we know he needs to sign up for Medicaire and set up his Social Security account at SSA.gov.

13:52 - Life expectancy for a couple who makes it to 65 today will average out around 90. If you are in good health, you need to plan on living longer than average. If you're a smoker, maybe you shouldn't be expecting to live as long. Delaying the start of your Social Security benefits means you lock in a higher benefit for life, which is one way to max out your income in later years.

25:47 - When is retirement? For too many people, it's determined by when you are physically unable to work any longer. Your retirement should be whenever you're ready

28:17 - Wayne in Hammond is 59 and has worked 20 years in Florida, and 20 years in Louisiana. Wayne heard that he could get a bigger benefit if he filed in Florida instead of Louisiana. Gregory corrects the record in that it doesn't matter what state you live in, your benefit will be the same size. However, some states tax your Social Security differently, but that is determined by your primary residence, and not your work record.

32:23 - The Numbers: green!

37:36 - Donald in Belle Chase is double checking with Gregory to see if he can get a higher benefit for his wife when he turns on his benefit. Gregory has good news: if the spousal benefit is higher than her own record, you're getting a raise!

39:20 - Jim on the Mississippi Coast is a retiring state worker and wants Gregory's thoughts on taking a monthly pension check or a lump sum now. After some probing questions and looking at the math, it's probably best to take the monthly check. Jim's relatively early retirement age weighs heavily in the decision as well.

http://www.WinningAtLife.com