Today We’re Tackling a Question That’s Probably Crossed All of Our Minds at Some Point: Can You Really Retire in Three Years or Less? Now, I Know It Sounds Kind of Crazy, but for Some Folks, It’s Totally Doable.
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Steve 00:39
Welcome in, everybody. This is On the Money with Secure Money and Brian Quaranta, and today we’re tackling a question that’s probably crossed all of our minds at some point, can you really retire in three years or less? Now, I know it sounds kind of crazy, but for some folks, it’s totally doable. So, we’re going to break that down and give you some key things that you need to consider if retiring early is your goal. And here to help us do that, of course. Brian Quaranta. Brian,
Brian Quaranta 01:04
Let’s do this thing, Steve. And I’m going to tell you right now. 25 years of doing this, I’ve seen it happen over and over and over. I can’t tell you how many times we have built plans for folks, and they said, I want to retire in five years. We show them that they can do it a lot earlier. We always show them that in most cases, and usually after about another year working, when they realize they could do it a lot earlier, they say, get me out of here. And that’s what we’re going to show you how to do when we come right back with more On the Money with Secure Money.
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And now: On the Money.
Brian Quaranta 01:35
Any good retirement plan starts with the foundation,
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Asset Protection, Tax Reduction, Holistic Planning.
Brian Quaranta 01:42
These are the things that start to move you towards having a retirement plan.
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Retirement doesn’t have to be complicated.
Brian Quaranta 01:49
You think that’s the difficult part? That’s just getting started.
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And now On the Money with Secure Money.
Steve 02:00
We are back On the Money with Secure Money. Brian, Quaranta is here. Brian, of course, author of what that Well, everybody’s talking about it. Brian, right. Track your retirement. It’s a simple planning strategy to help you reduce risk, build income, provide peace of mind. Been helping folks for more than 25 years. He’s president and CEO of Secure Money Advisors, and he’s here every week to talk about things like retiring early. Hey, Brian.
Brian Quaranta 02:19
Yes, it’s one of my favorite things to talk about. Yeah, I think the best reaction you could ask for as a financial advisor when you’re sitting down with somebody for the very first time is just the absolute shock when you show them that it is possible to go much earlier than what they ever thought. And there’s a lot of people you know that we meet with today that are coming in with no hope of retiring at all, because there’s so much confusion out there. I mean, we live in this world of information, but it’s created a lot more confusion, sure, and there’s just a lot more noise in the marketplace. And once you understand the basic fundamentals, Steve, of how to do this, and you understand that the number one focus for anybody retiring today is going to be cash flow management. And you start to understand that’s what you need to start training to, and you understand what that’s, what the goal is. And we saw this because as we saw years click by from 1978 and on, we saw, you know, more and more people not having a pension to replace the paycheck. So, there’s, you know, the whole the whole goal here is, how are we going to replace the paycheck? And those are things that we’re going to dive into, into the nitty gritty, as we say. And so, if you’re serious about retiring in the next few years, here’s what I want you to focus on. Number one, most importantly, is, how are you going to replace your paycheck? That’s the number one question you have to ask.
Steve 03:45
Sure it is! And that’s really a great way to look at it, because that’s what we want to do. I mean, retirement isn’t this big shift of, I’m not going to make any money. No, no. The shift is: I’m going to spend that money that I spent my life saving.
Brian Quaranta 03:57
That’s right. And in my book, right track your retirement. I talk about this over and over in every chapter, because people need to understand it’s not about the investments, it’s about the cash flow that the investments can provide. So, the question is, how are you going to do that? Because there’s lots of different ways that people are going to tell you, especially advisors are going to have different opinions on how to do that. One is, you could just use a growth strategy and try to pull money out every year from your stock accounts. But we’ve talked about this over and over year after year on this show, and that is, you can get yourself into some serious trouble if the markets don’t perform the way that you need them to perform. When you start taking money out of your retirement accounts, that can become a big problem, because if you’re not getting the returns that you need, you could be compounding losses, and this is what causes people to run out of money. And, you know, look, unfortunately, all you got to do is walk around, you know, and go out on the weekends and go to the big box stores out there, you know, that we all shop at. And you can see people that are back to work at a later age in their life. And so. Of those people maybe want to do it. Some of them may not want to be but there are fundamentals to doing this. So, let’s talk about cash flow first. Okay? Because I think that’s the great way to start. Yeah, so, so number one is, you can just use a growth strategy to generate cash flow. Growth Strategy is, I’m gonna you’re gonna keep your money invested in the stock market, and you’re gonna hope and pray that everything goes right, year after year, month after month, and you’re going to take the money out that you need every single month, and you’re going to get the returns that you need, and you’re going to have plenty of money. And matter of fact, in a perfect world, you’d have enough money left over that you could leave money to your kids or whoever you’d want to leave it to. So, you could use a growth strategy. You could also use a dividend strategy, right? This is where you’d go buy individual stocks that pay a dividend. So now you’re not only getting the dividend that the stock is paying you, right So, but you’re also potentially getting the growth of the stock itself, right. So now you can win in two ways. One, you get cash flow from the dividend, but then maybe the stock grows too. So now you get appreciation of your assets with cash flow. A third way is, you could, you know, purchase real estate and you could get cash flow for real estate rental properties. Question is, how strong are those markets going to be? Do you want to be the landlord? Do you want to be the one getting the phone call late at night that the water heater needs fixed, or the oven no longer works? Is that what you want to be doing? Are you handy enough to do that? You know, I’ve got some clients that generate some really great cash- really great cash flow from real estate, but they are, you know, the ultimate handy man. They’re not me, is what you’re saying. They’re not me, right? Because, you know, my father and my brother are the ultimate handy man. I am not. They laugh at me because of how incapable I am of those things, but I’m okay with it, because they come to me for the investment advice, right. There you go, see, that’s all the tradeoff. That’s right, that’s right. So, you know? So, there you got, you got the growth strategy, you’ve got the dividend strategy, you’ve got the real estate strategy, and then you could get into even more complex strategies. Steve, like you know, you could earn incomes from options trading, if you even wanted to, by selling calls, you know, and generate cash flow that way. But who wants to sit in front of a computer screen all day? And I don’t want to work that hard in retirement. No, people want their time back. And you make a great point there, Steve. I mean, this is all about getting your time back and reducing any risk or anxiety that you would have to deal with. I mean, can you imagine, you know, here you are walking away from a job that gives you a paycheck, you know, every single week, and now you walk away, you no longer have this paycheck. The only thing you have is Social Security, which, there’s constant news out there that Social Security is going to be underfunded, and there’s not enough money in Social Security right now. So now we live with the anxiety of, well, am I going to get a pay cut from Social Security eventually? I mean, am I only going to get 80% of the benefits that they promised me because there’s not enough money in there? Is the stock market not going to perform the way I need it to? I mean, think about the anxieties that you have with all those certainties. And if there’s one thing that we as human beings crave more than anything else. It is certainty. It is certainty. And by doing that, this is why I believe in the private pension strategy, and the, you know, this is where the use of income annuities come in, because essentially, all we want to do is give ourselves a pension, and an income annuity is a private pension. Now, I still believe in the stock market, but let’s take risk with money that we can be long term on. When I say long term, I’m talking 10 years or more, Steve, 10 years or more to be long term on money your first 10 years of cash flow, all should be generated from some type of income annuity, in my opinion, unless you want to do some type of real estate strategy. But the majority of people that come up to come out to come to us say, hey, we want to keep it simple, and we want guarantees built in. And that’s one of the only places you can get a guarantee built in, is through use of income annuities.
Steve 08:47
absolutely well. Again, that’s a great conversation to have, and certainly I’d like to dig into that a little more. But right now, though, I think we need to take a quick break, Brian.
Brian Quaranta 08:55
Yeah, folks, look, go to righttrackyourretirement.com. Get a copy of my book right. Track your retirement. It really is a simple guide to helping you build out this retirement strategy that can help you retire in three years or less. So also, schedule a time when you go there. Schedule a time to come in, sit down with the team. Look, we’re here to work with you, to sit on the same side of the table with you, to roll up our sleeves and work through these problems together. We’re not here to sell you financial products. That’s not what we do. We’re here to help you build a strategy, a game plan, something that we know is going to get you retired and keep you retired.
Steve 09:31
800-656-8616, that’s 800-656-8616 call us 800-656-8616 that’s 800-656-8616, quick break. We’re back with more On the Money with Secure Money, Brian Quaranta, right after this.
Brian Quaranta 09:42
Retiring three years or less, that’s exactly what we’re talking about on this show, and we’re going to continue to talk about it and talk to you about all the strategies that you can use to do this. When we come right back with On the Money with Secure Money.
Announcer 10:01
And now On the Money with Secure Money.
Steve 10:08
We’re back On the Money with Secure Money. Brian Quaranta, here. Brian, of course, the author of Right Track your Retirement, a great little book that can really help you on this right track to get you on the right track to retirement. Righttrackyourretirement.com is the website for the book, and it’s available free. And Brian’ll even ship it to you for free. So do that, and we’re talking about, really, the heart of what you do and the heart of what your book is all about. And we started with cash flow. So, we’re talking about ways that we can- strategies that we have, that we can put into place, that can help us retire a little bit earlier.
Brian Quaranta 10:39
That’s right, yeah. And Steve, I just want to say one thing about the book real quick. Yeah. Real quick. I want to stress this, folks, this book is absolutely free. You are getting a physical copy of my book, right? When do you ever get a free physical copy of a book? I’m not only paying for the book to be printed for you, but I’m paying for the shipping and handling right to send it to you Priority Mail, right? And a beautiful gold envelope, and you’re going to get not only the book, but you’re going to get a lot of other things that are going to help you start understand how to piece all of this together. And I think the greatest gift that I could give to you is the ability for you to understand how to start mapping out a strategy without the pressure of sitting across a financial advisor at a conference room table, right? So now you start to educate yourself through my book, right? You start to understand the philosophy. You start to connect the dots in your own mind. Of this makes sense. This is why I want to go in and see them. Can’t tell you how many times folks will come into the office, Steve and say, Look, I read your book. This is what I want to do. Just tell me how to implement it. And so again, folks, righttrackyourretirement.com. Go there right now. Don’t procrastinate, right? This is something that truly can help you, especially if you’re looking to retire in three years or less.
Steve 11:50
I like it, Brian. And so, we’ve got the cash flow part. The cash is king. We know that, but there are other elements of a plan that that need to be in place, that need to be discussed.
Brian Quaranta 11:59
Yeah. So, so again, getting to that cash flow part is also to get there, we need to be thinking about, how are we going to accumulate as much money as we possibly can? And part of that is taking advantage of maxing out those retirement accounts. So, if you haven’t already cranked up your contributions to your 401, K IRA or other retirement plans. Every dollar you save now is more money you’ll have to enjoy later. And don’t forget, if you’re 50 or older, you also have the catch-up contributions that you can take advantage of. Okay, so that’s the accumulation part. Also, once we get to that part of strategizing for replacing that paycheck. Part of replacing that paycheck doesn’t need to come from 100% of your investments, and that’s where the social security strategy comes in. So, when does it make sense for you to collect social security? Is it 62, which is the early age that you can collect social security? Is it your full retirement age, which you’re going to, you know, read on your Social Security statement as FRA: Full Retirement Age Social Security, or are you going to be able to go to the maximum age of 70? What makes sense for you is different than you know what makes sense for somebody else, okay, but getting that strategy is key, because, again, waiting to take Social Security, there are benefits there, because Social Security will give you 8% more for every year that you wait to take it. So, they are encouraging people to delay taking it. But in some cases, the majority of our clients want to retire as early as they can, and we have found that taking it early mathematically makes better sense for a lot of people, because every dollar you get in Social Security is one less dollar you have to take from your retirement accounts, which means we get to get your retirement accounts to last a much longer period of time. Oh, great stuff. Brian, yeah, right. I mean, these are, these are basic fundamentals, but this is not what the majority of the investment firms out there are talking to people about, they’re still talking about, you know, the conventional strategies of just investing and diversifying, and that’s all great stuff, and we still need to keep that stuff in mind. But that’s not a retirement strategy. That’s an investment strategy very, very different. And we have to understand that they are two very different things, investing strategy, retirement strategy, two very, very different things. And what we’re talking about right now are retirement strategies. This is about your income. It’s about the investments that you choose. It’s about the tech strategy, it’s about your healthcare strategy, it’s about your estate planning strategy. The other thing we need to think about, Steve, is crushing that high interest debt.
Steve 14:45
Yeah, definitely got to be top of the list.
Brian Quaranta 14:49
A lot of people are in debt still.
Steve 14:51
Oh my gosh. Well, you read the stories, there’s like, over a trillion dollars in credit card debt out there. It’s unbelievable.
Brian Quaranta 14:55
And you know, credit card debt, personal loans, anything with high interest rate. Rates is going to eat away at your retirement savings. So, prioritize paying these debts off. I’ll give you a good example. I get questions a lot of, should I contribute more money to my 401k or should I take the extra money and put it towards paying my mortgage off faster? I believe in paying the mortgage off as quickly as you can even if it’s at a low interest rate. Here’s why, because the money that you put into your 401 K typically, is going to be invested at risk in the market, which means that money that you put in could poof disappear for a low period of time, because the markets have gone down, and all that money you put in this year is poof gone because the markets declined. However, if we put that money towards paying off the mortgage. If your mortgage is $3,000 a month, I know that if that mortgage gets paid off, you’re gonna pick up that $3,000 a month in guaranteed cash flow. No questions asked, right? So, think about where the better leverage comes, getting rid of $3,000 expense per month, right? Or putting money into a 401k, and we have no idea whether or not it’s going to be there. So okay, getting rid of that debt is important all the way across the board, especially with high-interest rate debts. So again, five key areas we’re talking about here, right income, investments, taxes, health care and estate planning. Again, all of my book, Right Track Your Retirement. Go to righttrackyourretirement.com. Get a copy of it right now. Don’t procrastinate on this. I literally walk you through step by step how to go about building this strategy. So as long as we can remember all this and you’re working with a fiduciary firm that is helping you put together a plan, and not just talking about, about buying investments, you should have the peace of mind to go there’s some other things that you want to make sure that you have going into retirement. Is you need to have a withdrawal spreadsheet. What I mean by that is we need to look at all of your accounts. And the way we do it at Secure Money Advisors is we take all of your individual accounts, the interest rates that you’re earning on those accounts, and we look at where to start withdrawing the money from first. This way, we can see how the withdrawals are impacting the balance, and we know that if we take this much money out and we get this rate of return, our money’s gonna last for the rest of our lives. If we are only getting this rate of return, money is only gonna last- There’s three very important interest rates that I talk about my book, Steve. The first one is called the spend down rate. The second one is the preservation rate, and then the third one is the legacy rate. You’re going to want to know what these are and how they work, and we’re going to talk about more of that when we come back with more On the Money, with Secure Money.
Steve 17:36
You know, it’s advice like this that really shows you how important it is to meet with a financial coach like Brian, somebody who truly understands the ins and outs of the financial world. So do take advantage of this opportunity. Make sure that you are on the right path. That path is based on things like your risk preferences, your budget and, of course, your goals. Call right now. 800-656-8616 800-656-8616 Brian Quaranta and all On the Money with Secure Money, will come right back after this.
Brian Quaranta 18:03
Retire in three years or less. That’s what we’re talking about through the whole show this week. Steve and by the way, one thing that I forgot to talk about, which I want to talk about more when we come back, is, what about working part time, what we call the hybrid retirement, freelancing in retirement. We’re talking a little bit about how this works when we come right back with On the Money with Secure Money.
Announcer 18:31
And now On the Money with Secure Money.
Steve 18:38
Hey, welcome back everybody. This is On the Money with Secure Money. Brian Quaranta here. Brian, of course, author of a great little book we’ve been talking about it called right track your retirement. You can get one for free. We’ll talk about that. But and so we are talking about retiring early, and something that needs to be considered, Brian, I think it’s a great one, is maybe going to work part time. Maybe it’s time that you do that. You know that that thing that you’ve always wanted to do?
Brian Quaranta 18:59
Yeah. I mean, what’s your plan B if the market crashes tomorrow? Yeah, you know, are you really ready to retire? Because, you know, retiring, there’s an emotional component and psychological component to it too. You know, I see a lot of people, especially if they’ve identified with what they do for a career, all of a sudden retire and they no longer have that identity. A lot of people can go through, you know, states of depression or anxiety. So, are you really ready to retire? A hybrid retirement is kind of a nice way to slip into retirement and still be able to have a little bit of a purpose. Now, some people are able to find that purpose, and they say, Nope, I’m going to be playing grandma or grandpa, or we’re going to be traveling, and here’s every place we’re going to go. There are folks out there that know exactly what they want to do when they retire. They know when you know. They know who they want to volunteer for. They know how they want to spend their time. If you don’t know, if you haven’t thought about how you’re going to spend your time, and you don’t have many hobbies. My father is a great example of that. My father was a workaholic. He, you know, he, he didn’t have hobbies. So, you know, for him, leaving the workforce, it was tough. And again, for many retirees, it can be, but you know, you don’t have to completely leave the workforce to be retired. You know, my dad works a couple hours a week for my brother, and my brother’s got a paving business. He takes care of my brother’s inventory control, right, all of the supplies and materials that they need, and making sure that his shop stays clean. You know what? It’s enough to get him up early and get him out of the house for a little bit and come home and he feels productive. And as a matter of fact, that was not that way for the first few years of retirement, but it was after about three years of him really just not feeling like himself is the best way to put it, where we found that this was a better option for him. And some of you listening today, this may be the better option for you,
Steve 21:14
Of course, and again, that makes sense, certainly something to have a discussion about. So obviously, there are financial benefits to working part time and again, whether you need the money or not. It’s nice to have extra money, because who doesn’t say- Nobody says no to extra money.
Brian Quaranta 21:28
Yeah, because, look, I mean, retirement is a marathon. It’s not a sprint. So, you know, set a pace, and that pace may be, you know, maybe retiring for a few years, like my father did, and then eventually doing something, you know, maybe, maybe some of your kids out there own businesses, and they can use a little bit of your help each week, or they can use help with the kids, or they can use help taking care of their household, whatever it is, because it’s tougher and tougher for newer families these days to get their footing with how expensive things are. It’s not as easy to, you know, build wealth right out of the gates. A lot of you know, kids are coming out of college with a lot of debt through school loans, and, you know, even credit card debt. I mean, that’s not the way it was for my parents. Generations, they weren’t coming out with the 10, $15,000 of credit card debt and $150,000-200,000 of school loans. I mean, kids are coming out of school with, you know, mortgages already. So again, there’s lots of different ways you can work part time. So, what are the financial benefits of part time or freelance work in retirement? Well, again, it can supplement your retirement income, right without the full commitment of a nine-to-five job. That’s pretty good. This allows retirees to delay drawing down their retirement savings or Social Security and helping their nest egg last longer. So maybe your first few years of retirement, maybe you retire, you start collecting your Social Security, if you’re under your full retirement age, social security, I believe it’s like $19,000 you can make up to right now without getting penalized. So, you could work enough just to make $19,000 and then call it a day. Yeah, but, but now you don’t have to touch the money from your retirement accounts. So, you know, because there are things you got to be conservative, like, how does it affect my Medicare premium?
Steve 23:22
Sure, how could it affect my Medicare premiums? What do you say?
Brian Quaranta 23:25
Well, your earnings from part time or freelance work can increase your modified adjusted gross income, and that can potentially push you into a higher income bracket for Medicare Part B and D premiums. So, it’s essential to monitor your income to avoid unexpected premium increases. The great thing about Secure Money Advisors is that, you know, we’ve got a Medicare advisor at our office that helps when you know clients want to approach retirement. You know, with this type of strategy where they’re working part time, so that you know, all of your advisors are on the same page so that we don’t have any surprises. We don’t want surprises, and having to pay extra taxes and Social Security or penalties on Social Security, or getting higher Medicare premiums, whatever it might be.
Steve 24:12
Sure. And I mean, again, those are good things to know, but that’s the that’s the advantage of working with you, Brian and an independent fiduciary team that you know you walk us through this process, you know that there’s IRMA out there lurking, and you can help us avoid that.
Brian Quaranta 24:27
Yeah, you know, a lot of people say, well, what’s the value in working with an advisor? Well, a good advisor is going to help you think about all the things that you’re not thinking about, right, all the stuff we’re talking about today. Yeah, look, if I was going to build a home, and I’ve never built a home before, hiring a general contractor is probably the better idea, versus me trying to play the role of the general contractor and having to hire the plumber, the electrician, the Mason, the excavator there, the general contractor knows more about building the home than you do, and that price that you pay for. The general contractor should be worth it, because it’s going to, you know, allow you to have a lot less headaches and avoid, you know, any unforeseen obstacles, you know, because they’ve done it so many times. I mean, we’ve retired, you know, probably well over 1500 people, Steve, in the last 25 years and we’ve never had to apologize, you know, for a plan not working, or somebody having to go back to work.
Steve 25:23
Sure. So again, to think about that transition into retirement, that might be a solid way to get there early.
Brian Quaranta 25:29
It’s a great way to get there, especially if you’re one that’s nervous about what are you going to be doing with your time, and you don’t do well with idle time. Type A personalities do not do well with just unstructured free time. I mean, go back to like little kids like structure. I got two little kids. They like structure, right? We get up at a certain time. We have breakfast at a certain time. We’ve got naps at a certain time. They know they have a certain, you know, time that they could be on their iPads. They know a certain time that we are gonna be reading books. But believe it or not, we as human beings, we enjoy structure, no matter how young or old we are, that structure is so important. So anyway, righttrackpittsburgh.com, go there. Get a copy of the book, Steve, you tell them how else they can get a hold of us.
Steve 26:18
You got it to Brian, 800-656-8616 is the number. There’s no cost, there’s no obligation to help you get a better handle on your financial situation, and you can find out what your investments are really costing you because of fees or commissions. What about tax implications? How much income can you generate once you move into retirement? All of those questions and more can be answered when you give Brian a call right now. 800-656-8616, 800-656-8616, we are going to take a quick break, but we have got one another segment to go here, On the Money with Secure Money and Brian Quaranta
Brian Quaranta 26:48
Questions from listeners more we come right back with On the Money with Secure Money.
Announcer 27:01
And now On the Money with Secure Money.
Steve 27:08
We’re back On the Money with Secure Money. Brian Quaranta Here, Brian, of course, is the author of the great little book called right track your retirement. He’s president and CEO of Secure Money Advisors. You can learn more about the team and the team around Brian by visiting securemoneyadvisors.com, securemoneyadvisors.com and not only can you get the background of who you are, Brian and the rest of your team, which is amazing, but you can also get some great tools on your website.
Brian Quaranta 27:34
Yeah, look, you didn’t work hard for 40 years to guess your way through retirement, and you don’t need millions to retire. Well, what you need is a plan that actually works, because the markets go up, the markets go down, but when it comes to your income, that should never waver, ever, ever, ever waver. You know, under the conventional strategies of Wall Street, where they say, diversify your portfolio, typically in a 60/40 split, if those investments don’t perform the way that they anticipate them to perform for you, your income is going to waver. That’s not a I don’t care whether you have plenty of money. If you get the phone call, it says, I don’t think we should be taking this much money anymore. That’s a bad phone call to get. Yeah, you know, that’s like your employer saying we’re reducing your hours, or, you know, you know, we’re cutting your time back, no more overtime, or so, you get my point. But again, we don’t need millions to retire. Well, we need a plan that that actually works.
Steve 28:44
Sure. And again, you can make that happen, folks, by giving Brian a call. It’s 800-656-8616 All right, we’ll jump into a couple of questions here before we run out of time. Here we’ve got a retiree with 500,000 in their 401k they want to start withdrawals but are unsure if they should take monthly or annual distributions. They want to minimize taxes and avoid running out of funds. So, what factors should guide their withdrawal strategy? And again, withdrawal strategies, that’s something else, that’s a thing.
Brian Quaranta 29:13
Yeah. Well, look, I mean, the pacing of your withdrawals is important, you know. Or I should say the frequency, the frequency and pacing are important, but the frequency of withdrawals should be that of which mimics the paycheck. So, the easiest way for the majority of people out there is to provide a monthly paycheck from the investments, and that’s how we structure it at Secure Money Advisors. And then the other question was, how do you minimize taxes? Because there are two things that will significantly reduce your wealth, and that is going to be inflation, which is how much it costs you to live. But also, the amount of taxes that you have to pay. You know, the simple math that I always remind people of is that if you’ve been investing in a 401k, and that’s where the majority of your money is, or even an IRA, you got tax deductions for putting that money in. But when you start to withdraw it, you have to pay taxes on it. So, if you’re withdrawing $1,000 a month to make it easy, and you’re in a 20% tax bracket. We know after taxes, you’re only netting $800 Steve, right? So, if tax rates go up, you know, and now you’re paying 30% you get the point, right? Now you’re only getting $700 a month after taxes. So taxes will reduce the amount of income that you’re going to receive from your investments and you know what I challenge any listener to do right now is to think about the amount of money that you have in your retirement account, and I will tell you that the hard truth is that about half of that money doesn’t belong to you. It belongs to the IRS, so we’ve got to keep that in mind, but, but, but that’s a that’s a good question here. Sure.
Steve 31:09
All right, 800-656-8616 if you’d like to follow up. And now we’ve got a 45-year-old hospital employee, has 150,000 in their 403 B, maxing out annual contributions, and they’re wondering if adding a Roth 403 b component would provide more tax flexibility in retirement. So how could a Roth 403 B benefit them if they expect to be in a higher tax bracket?
Brian Quaranta 31:30
Yeah, I love this question, because this individual is thinking the way I like people to think, because your financial future, future should be built like a fortress, not a house of cards. And what this individual is doing is they’re thinking about, how can I build this plan so it’s a fortress, something that cannot be, you know, knocked down. And part of that is having alternative strategies around tax diversification. So here we’re talking about putting money into a Roth component of their retirement plan, not just the after-tax component. We can help you secure your future. And I’m telling you, we can do this within the first 30 minutes of meeting you is giving you ideas and strategies to help secure your future.
Steve 32:15
Let’s wrap it up for the week.
Brian Quaranta 32:17
Yeah, folks, look, take advantage of the book Right Track Your Retirement. Again, you can go to righttrackyourretirement.com. Get a copy of it. I go over five key areas within the book, your income strategy, your investment strategy, your tax strategy, your healthcare strategy and your estate planning strategy. All you got to do again is go right to that website. Right Track your retirement.com. Get a copy of the book. You can schedule an appointment to come in as a fiduciary firm, we’re there to help you solve problems, not sell you anything. I want to make that very clear, nobody from my team will ever sell you anything. We’re there to roll up our sleeves and become a partner with you in helping you solve and give you a road map and plan for a secure retirement. Sounds great. Brian, 800-656-8616
Steve 32:59
tell you can take advantage of that goal here at the show, helping you to make the best decisions for you. So, if you do have questions about what we’ve been talking about today, how it applies in your own situation, give Brian a call and find out. 800-656-8616, 800-656-8616 Brian, as always, a pleasure, one of my favorite shows of the week. It goes by quick, and we have a lot of fun.
Brian Quaranta 33:18
That’s right, Steve, it certainly is. And remember, folks, retirement isn’t an age, it’s a plan, and that’s what we do at Secure Money. We’ll see you again next week with On the Money with Secure Money.
Announcer 33:32
Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC, registered investment advisor. The content provided is intended for information on educational purposes only the few statements and opinions expressed herein are those of the individual speakers and are not necessarily those of foundations and its affiliates. The information contained herein does not constitute an offer to sell any securities or represent an express or implied opinion or endorsement of any specific investment opportunity offering or issuer. Any discussion of performance or returns is not indicative of future results. Any discussions of specific strategies are for informational purposes only and have been provided to help determine whether they may be appropriate for your specific situation. If applicable. The primary goal in converting retirement assets into a Roth IRA is to reduce the future tax liability on the distributions you take in retirement or on the distributions of your beneficiaries. Each individual investor situation is different, and any ideas provided may not be appropriate for your particular circumstances. Comments regarding a particular client’s experience may or may not be the same as another client’s experience and is not an indication that any client or prospective client will experience the same or a higher level of future success or performance. Foundations only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor is not an endorsement of the firm by securities regulators, and does not mean the advisor has achieved a specific level of skill or ability. Nothing here in constitutes a recommendation that any security portfolio of securities or investment strategy is suitable for any specific person, no legal or tax advice is provided. Please review your retirement tax and legacy planning strategies with a legal or tax professional before transacting or implementing any strategy discussed herein. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to investment advisory products, rates and. Guarantees provided by insurance products and annuities are subject to the financial strength of the issuing company, not guaranteed by any bank or the FDIC. This is not endorsed or affiliated with the Social Security Administration any federal Medicare program, nor any US government agency. If applicable, we do not offer every plan in your area and contacting us at the phone numbers provided herein will direct you to a licensed insurance agent. Any information we provide is limited to those plans we do offer in your area, please contact medicare.gov or 1-800-Medicare to get information on all of your options. All rights reserved.
Outro 35:27
Coach P Radio!
