Radio Show Transcript
Three investment advisory services are offered through foundation investment advisors, LLC. an SEC registered investment advisor Brian Quaranta and his guests provide general information not individually targeted, personalized advice and are not liable for the usage of information discussed. Exposure to ideas and financial vehicles should not be considered investment advice or recommendation to buy or sell any of these financial vehicles. This information should also not be considered tax or legal advice. As performance is not a guarantee of future results, investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 securities or investment advisory products, fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.
Brian Quaranta 00:39
What goes up, it goes down and we come back really talking about more on how to navigate this mark, when we come back right here with on the money with secure money. And now on the money. Any good retirement plans starts with the foundation,
asset protection, tax reduction, holistic planning,
Brian Quaranta 00:59
These are the things that start to move you towards having a retirement plan.
Retirement doesn’t have to be complicated.
Brian Quaranta 01:07
You think that’s the difficult part? That’s just getting started.
And now, On the Money with Secure Money.
And welcome everybody On the Money with Secure Money. That’s the show, Brian Quaranta is here. Of course, Brian is President CEO of Secure Money Advisors, and he’s a fiduciary and independent, and so much more. Hi, Brian, how are you?
Brian Quaranta 01:31
Steve, how are you? And how about this market? How do you think a correction is coming? Or what?
I don’t know. How do you know? You don’t? I mean, people never know. I mean, but it’s fair to say it’s not if it’s when?
Brian Quaranta 01:45
Yeah, it’s true. And this is why good fundamentals are important. I mean, we talked about the fundamentals of planning all the time. And, you know, as a matter of fact, if you are worried about a market correction, then you probably should be evaluating your strategy. Because with a good retirement strategy, if a market correction were to come, it should not be causing you to have to delay retirement, or come out of retirement, you should be able to weather that storm. And, you know, I think the fundamental challenge that people deal with when it comes to their investments, is that people are taking way more risk than what they need to, rather than protecting what they have. And the key has always been about protecting your savings from a cat crash, because how badly your retirement savings will be hit if the market crashes depends largely on the asset allocation of the portfolio. So, making sure that the investments are divided up correctly. And on this show, we talk about buckets all the time, Steve, right, we talked about the three-bucket approach. We’ve got a blue bucket, a green bucket, a red bucket, we’ve got now money soon money, and later money. And at secure money advisors, we believe that helping you get on the right track is also helping you understand how to divide that money up into those buckets. Because the number one problem people are dealing with moving into retirement is they don’t have a pension. And since most people do not have a pension, they’re going to have to create one with the money that they’ve accumulated. But if the markets not cooperating in the years that they retire, that can cause them to run out of money before they die, which is a big fear of most people. And you can’t get this one wrong. It’s not a dress rehearsal, we don’t get a second chance at it.
Right. And that’s so that’s why it’s important to one understand your plan. And I guess that’s the I mean, sort of navigating around that hole potential for a market crash. One of the in when you’re talking about buckets, I mean, one of the buckets is going to be safe money, the money that we need right now. And there’s going to be money at risk no matter what the market does. And that’s okay, because we don’t need that money right now.
Brian Quaranta 03:53
Right? Because the way of doing things have really changed quite a bit. I mean, go back, you know, 2530 years ago, when you go down to the local bank, and you could buy a CD paying 10 to 15%. That was your safe money? Or how about when you could put money in a money market at three to 4%. Now in a checking savings or money market at the bank, you’re getting less than point, one 0%. It’s comical to get your bank statement on a monthly basis and see how much interest you’ve earned over a quarter or even over the course of a year.
Brian Quaranta 04:28
So yeah, exactly. Exactly. So, it you know, the fundamentals of planning have changed solely because the financial instruments and tools that we were using for a long time have changed. The interest in what you get on your bank accounts have changed the interest rates that you’ve gotten your in your bank CDs have changed. The interest rates that you’re getting on your bonds have changed. I mean, in order for you to get a reasonable rate on a bond right now you got to go towards junk bonds. You can’t even use a rated or B rated bonds. You got to go towards junk bonds plus You wind up having an interest rate risk, meaning if you buy a bond in a low interest rate environment, and interest rates go up, your price of your bond goes down, which mean you lose money. And typically, people are buying bonds because they want to protect your portfolio. And that’s just not how it works. It’s got the inverse relationship. So, it’s important that we do understand a bucketing approach. And we understand that the allocation of the money, part of it does need to go into a safe account that does have some opportunity for growth. And there’s financial products in the marketplace today to help you do that to keep you on the right track. But this is why we always offer the right track retirement review at our office, because most people just don’t know if they have their money in the right buckets. And our system is truly designed to help you determine how you need to be allocated based on your age and based on your income needs. So, for the next 10 callers who call in right now, we’re going to give away a complimentary Financial Review. That’s a right track retirement review, we go over five key areas with you we go over your income, we go over your tax plan, we go over investments, a health care strategy and a legacy plan. We literally are going to help you take the mystery out of financial planning, we’re going to make it simple and easy to understand. But you’ve got to do your part. I know that going into a financial planner’s office can be very intimidating. But we’ve made the process not intimidating. We’ve made it very easy for you to come in and sit down with us and go through and open up your situation to all the things that you’ve been doing. without the fear of being judged or being sold something that’s not very often you get the opportunity to come in and sit down with a fiduciary Call us today and schedule your right trek retirement review.
Hey, that sounds fantastic. Brian, folks, take advantage of what we’re offering here today. This is a chance to come on in sit down just like Brian said, and go over your financial world that financial roadmap, if you will break it down, make it clear, make it easy to understand, it’s a chance to get a true practical financial review. And it’s a phone call away. 800-656-8616. You heard Brian, 10 callers right now will get that comprehensive financial review. You’ll see where you stand today. Yes, of course. And you will get all the extras that Brian just talked about. And then when you walk out the door, you’ll have in your hand that roadmap that guide is going to help get you to where you need to be when it comes to retirement. 10 collars right now. 800-656-8616 again, 800-656-8616. We are going to take a quick break. We’ll come on back and continue our conversation right here with Brian Quaranta, On the Money with Secure Money.
Brian Quaranta 07:32
Yes, retirement planning can be complicated, even intimidating. It doesn’t have to be though we come back some tips to simplify the process that could lead you happier in retirement when we come back on the money with secure money.
Do you ever feel like you’re fighting for financial knowledge? Don’t let bad advice be a punch in the gut your retirement take advantage of a complimentary no cost no obligation consultation with a local trusted financial coach. Call Brian Quaranta, host of Retirement You Radio 800-656-8616 or text Brian Q to 800-656-8616. We’ve made it easy for you to take advantage of this fantastic offer. All you have to do is call or text Brian Q to 800-656-8616.
We’re back on the money with secure money and Brian Quaranta. Of course, I’m consumer advocate, Steve. Brian, President CEO of Secure Money Advisors having a good conversation. I like the kinds of things we’re talking about last time, we talked a little bit about, you know how to survive a market correction or you know, I hate to use the word crash, because we don’t know that. But again, certainly a correction. And there are ways to do that. And you certainly outlined that. And now let’s talk about Yeah, when you talk about intimidating I mean, there are a lot of things about planning for retirement that are intimidating, saving money. That’s the easy part. But then how do we do it? What do we do? How’s our what’s our mindset have to be to get there, Brian, this just gets complicated.
Brian Quaranta 09:15
Well, it can, it can be tricky. The biggest thing is shifting your viewpoint in retirement. Okay, so what does that mean? Well, you got to go from what we call the accumulating stage of retirement to now this distribution phase of retirement where we now are responsible for providing ourselves with a lifetime income stream, while at the same time still preserving our growing our wealth. So, if you accept this focus early in the retirement planning process, then you can go from being a great saver to being a great saver with a rational Retirement Income Security Plan. Because again, at the end of the day, your number one focus when you retire needs to be on how you’re going to plan for income, because most people retiring today, the only guaranteed source of income that they’re going to have is Social Security, right? So, for most people, that’s just not enough money for them to be able to live off of. So, they want additional money, well, where are you going to get that additional money from, you’re probably going to get it from your investments. The problem with taking the money, let’s say you need an extra $10,000 A year or an extra $20,000 a year. The problem with taking that money out of your stock portfolio, right. And when I refer to a stock portfolio, what I’m referring to is any account that can go up in value or down in value, the reason why this can be a disadvantage, and very difficult and leave you with a higher probability of potentially running out of money before you die is something called sequencing risk, okay, or orders of returns risks this is you can look this up google it. But basically, let’s say I want to take $20,000 out a year. And I go to do that this year. And I take the $20,000 out that I want for additional income, but my stock portfolio goes down and I lose $50,000 on top of it. So now I lost $50,000, the market took away $50,000 Plus I took my 20,000 out for income now I’m down 70,000. This locks in your losses, compounds, your losses and now continues to put you at further and further risk of running out of money before you die. The other thing we have to keep in mind is that let’s say that you don’t even need income when you retire because you got enough. Maybe you’re one of the fortunate few out there that are going to get some type of pension. Well, you’re probably going to need income later because cost of living is going to go up. Let’s go look what’s going on with inflation right now. 5.6% I think social security is so where they’re going. That’s it, that 6% cost of living adjustments. So, I mean, inflation is alive. And well. We talked, we’ve talked about it all the time, we talk about it every year, but it is just right between our eyes right now. And everybody’s dealing with it, and I don’t care who you are, you’re feeling it at the gas pump, you’re feeling at the grocery store, a lot of people are starting to really put things off, you know, projects that they were planning on doing. And that’s not a good thing, because that can freeze up the economy. And that’s what goes back to the first segment of, you know, when you start to see these things, and people start to withdraw and say, Well, I’m not going to spend any money, or they start to get scared they start to pull their monies from the market. This is where you start to get in run risk of having some type of correction. But,
Right. Well, speaking of corrections, I just want to its 5.9%. For social security, we said five or six, it’s 5.9. Yeah, just make that clear.
Brian Quaranta 12:25
Yeah, 5.9% cost of living adjustment. The other thing you need to do is you need to review your anticipated income needs. You know, and I like doing this by start by collecting information on any pensions Rumi’s say may receive, you gotta know the amounts due to you. And the method of payments, you know, especially if you’re going to get a single life options, joint options, survivorship options, you know, the these all comes with different math problems to solve. And you got to figure out, you got to do the same thing for your other accounts, too, whether they’re a defined contribution plan or an IRA or a SEP IRA, or even in annuities, annuities, you know, people are retiring more and more with annuities that are generating guaranteed income for them, you’re seeing that a lot more. So. But knowing your Social Security benefits is another big part of it. And this can be a tricky one. We’ve mentioned this a lot because there’s a lot of different claiming strategies, the timing in which you claim whether you’re married, single, divorced. There’s all kinds of moving parts when it comes to knowing your Social Security benefits. But this is all part of putting together a written retirement plan. And having a real written plan that covers the five key areas and retirement number one, most importantly, your income. Number two is taxes. Three is your investments. Healthcare strategy is number four. And number five is your legacy plan. A lot of people say well, what do you mean by legacy plan? I mean, do you want your family to be the largest beneficiary of your money? Or do you want the IRS to be the largest beneficiary of your money? Most people tell me they want their families to be the largest beneficiary? Well, in legacy planning, we make sure that your family is the largest beneficiary not the IRS. See what most people don’t understand, Steve, is due to the Secure Act, that their number one asset for most people is typically some type of retirement plan like an IRA or a 401 K. And the tax treatments are not favorable to those accounts right now with the new Secure Act that was signed into law back in 2019. You’re not allowed to stretch these accounts anymore over your lifetime. And so, they’re creating huge taxable events for people and the IRS is compressing the amount of time that you that the money has to come out of these accounts causing families to pay big dollars in taxes. And estates, you know, was an article in Money Magazine about a son that inherited his father’s half a million-dollar retirement account. The article went on to say that the son owed the IRS 250,000 of that retirement account $500,000 retirement account, the son owes 250,000. That’s unbelievable, right? I mean, we totally taken a state tax, income tax. You know, in Pennsylvania, we still have the estate tax. We’re one of the, I think one of six states that still have it. But this is why we’ve created the Right Track Retirement system. Here, though it’s secure money advisors, it’s truly designed to get you on the right track take the mystery out of financial planning. So, for the next 10 callers, who call in right now, we are going to give you a complimentary right track retirement review where we’ll go over the five key areas with you. We will take the mystery out of financial planning, we’ll make it simple and easy for you to understand, but you got to do your part, you got to pick up the phone, you got to call us and schedule that appointment today.
That sounds fantastic. Folks, take advantage of the offer today. It’s a good one, Brian and the team at secure money advisors are there to put together this financial roadmap, this thing that can be so intimidating, but they can break it down, make it clear and easy to understand. It’s a practical financial review. And it starts with that phone call 800-656-8616 You’ll get that comprehensive financial review showing you where you are today. But more importantly, you’ll walk out the door with a roadmap that’ll help get you to where you need to be when it comes to retirement. So, in short, you’ve got nothing to lose, give us a call 800-656-8616 again 800-656-8616
Brian Quaranta 16:23
There are four major gaps that can have serious impact on your retirement planning. We’ll break them down and offer some ways to close those gaps. We come back right here with On the Money with Secure Money.
He’s letting the clock run out on his social security at age 70 For maximum benefits. And here comes the Roth conversion. He’s got some outstanding coaching with that lifetime income plan. He’s created his own pension as well. And it looks like he’s going to go All! The! Way!
Play your best retirement game call Brian Q 800-656-8616 or text Brian Q to 800 656 at 616. Call or text Brian Q to 800-656-8616.
Announcer 2 17:14
Here’s our look at women of accomplishment women who have soared to new heights and shattered the glass ceiling.
Announcer 3 17:21
Growing up, Sally Rod was not only interested in science, she was also a nationally ranked tennis player. She earned a PhD in physics in 1978 while doing research on the interaction of X rays with the interstellar medium. Ride was selected to be an astronaut as part of NASA astronaut group eight in 1978. The first class to select women. She was one of 35 selected out of 8000 applicants. In overcoming gender bias during a pre spaceflight press conference she was asked such ridiculous questions as do you weep when things go wrong on the job and let the flight affect her reproductive organs. SPS seven and America’s first woman astronaut. Ride became the first American and the third woman in space aboard the challenger in 1983. Many people attended along for T shirts that says Ride Sally Ride. She served on the committees that investigated the Challenger and Columbia space shuttle disasters, the only persons who participate in both. Ride died of pancreatic cancer on July 23, 2012. Sally Ride, one of the many women to shatter the glass ceiling.
We are back on the money with Secure Money and Brian Quaranta. I’m consumer advocate Steve having a great conversation today. Boy, we covered a lot of ground. Brian,
Brian Quaranta 18:49
We sure did, we always cover a lot of ground here. We always- I think we’re the best show out there. Well, I can be a little biased. But you know, I think we’re doing things that most people aren’t.
Well, I completely agree. And I mean, again, that’s kind of what makes the show interesting and fun. And that, you know, you’re sort of interesting and fun too.
Brian Quaranta 19:10
Well, I think we got some questions here. So, John’s got a question; lights beeping. Let’s get in.
All right, John. Here you go. Hey, John says I’m 56 I want to retire in 10 years, should I convert some of my pretax money currently in my IRA to a Roth IRA to give me tax free funds down the road to drop them? AKA tax diversification. He says I’ve got about 900,000 in my IRA, what are the pros and cons of a strategy like that?
Brian Quaranta 19:38
Well remember our five key areas when it comes to planning your retirement income taxes; number two, right? Taxes are number two why? Because what John’s referring to here is the diversification of tax monies. Why is that important? Well, because what he’s talking about is converting probably IRA money, okay, that he got a tax deduction on so if I’m putting money away into an IRA each year for a 401k, I get a tax deduction. And the money that goes into that account grows tax deferred. So, let’s just say I put $10,000 in that account, and it grows to $100,000. And I want to take that $100,000 out of that account, well, I’m going to pay taxes on all $100,000. Now what if I were to put that money into a Roth IRA, take $10,000, rather than put it in an IRA or a 401K, or put it into a Roth IRA? Well, now that $10,000 grows to $100,000. If I want to take that $100,000 out, I don’t have to pay any taxes on it. And I didn’t get a tax deduction for putting it in. But the $10,000 grew to $100,000. And I didn’t have to pay taxes on the 100,000. When I took it out. And this goes back to would you rather pay taxes on the seed? Or the harvest? I’d rather pay taxes on the seed. It’s a lesser amount, right? Yes. So. So, what he’s referring to hear is, what if I take a little bit of the money that I’ve accumulated in my retirement accounts, and I start to convert that a little bit into a Roth IRA. So, some of my money in retirement, that maybe I’m going to generate income from when I generate that income, I don’t have to pay the taxes on that income, I actually get to do it tax free. Absolutely, I would encourage you to do that. I really don’t think there’s any cons to this strategy. The only the only cons are the fact that you’ll have a five-year waiting rule. So, this has to be done with time, to be aware of time. So that, you know, when you’re doing these conversions, you give it enough time to sit down before you start pulling your money out. But if you’re doing it as a way to convert and use that money later on, it’s just an outstanding strategy. I do it myself, I’ll be doing a big conversion to share myself also. For that reason, I want to get Uncle Sam out of the picture.
Exactly. And, you know, you talk about the doing a conversion this year. Keep in mind that folks, if you want to do a Roth conversion that needs to be completed by December 31. That’s right. Good point, Steve. And Alright, so John, if you want to know some more 800-656-8616, let’s go to Gerald. Gerald says, you often talk about claiming Social Security at the wrong time. Well, how do I know when it’s the right time? I’m 64. My FRA full retirement age is 66 and six months, my wife just turned 60. We’d like to retire in four years. Together. We have $425,000, in IRAs, and about $20,000. In a Roth?
Brian Quaranta 22:27
Yeah, well, this is where income planning comes into play. Right? You know, we’ve got a cash flow worksheet that we lay out for, for our clients and our potential clients. And if you come in, we’ll do this for you. So, Gerald, we would actually lay out your different social security sources based on age. And we would start to look at the math and figure out when would be the best time for you to do this. But the big question I would have is, How’s your health, because your health is going to play into when you should collect social security, not just the math, the math is black and white, right? It the math works in a perfect world. Meaning it, it’s going to take into account that you live to age 95. But if you’re in poor health, and you know, none of your family members have lived past the age of 70. Delaying taking your social security may not be in your best interest, even if you’re getting, you know, Social Security delaying credits of 8% per year. So, when you come in, we’ll kind of walk you through that process of how to go about choosing the right time. And then also above and beyond that, if you’re going to need additional income above and beyond that the $425,000 that you’ve got sitting in your IRA accounts, this goes back to how to properly diversify that amongst the different buckets that we talked about. Right? We talked about the now bucket, the soon bucket, the later bucket, or what we also call bank money, pension money, risk money. And once we understand how to properly allocate this money to buckets, we can actually maximize the cash flow in retirement gets you the most income, but also show you how to increase that income over time and make it the most tax efficient.
So, what you’re saying is the claiming Social Security, that strategy becomes part of a bigger picture when it comes to making sure you’re doing it at the right time. Is that fair?
Brian Quaranta 24:13
Yes. So, security, claiming strategies can’t just be looked at alone. If you’re not taking in the whole plant into account, there’s no way you’ll be able to make an informed decision, which is why so many people get it wrong. They get it wrong. And the biggest mistake people make is they say, Well, I’m going to bridge the gap. I’m gonna wait to take my sole security and I’m gonna use my money first. Well, that’s in my opinion, that’s the most ridiculous thing you could do because you’re depleting your assets. When you can be used utilizing a source of income that’s subsidized by the government for something that you’ve paid in your entire life, and you only get it while you’re living.
Yeah, absolutely. And so again, Gerald 800-656-8616. Boy, I can’t believe how quickly the show is gone today. Brian,
Brian Quaranta 24:56
That’s right folks. If you call in today, we are going to give you that right track retirement You complimentary no cost to you, but you got to do your part, you’ve got to call us. It truly is going to help you figure out how to get on the right track. We’ll go through the five key areas that we always talk about your income taxes, investments, health care and legacy planning, we will take the mystery out of financial planning will give you turn by turn directions of how to get from point A to point B but you’ve got to do your part. Pick up the phone, call us today and schedule that appointment.
That sounds fantastic. This is a last opportunity today folks to make that call. 800-656-8616 sit down with Brian and the team at secure money advisors take a lot of that complex financial world and make it easy to understand it’s a practical financial review a lot of you’re looking for a second opinion, now’s the time to make that call 800-656-8616 You will get a financial review showing you where you are today. But more importantly, you’ll end up with a roadmap that can help get you to where you need to be when it comes to retirement. 800-656-8616 again 800-656-8616 Brian What a fun show On the Money with Secure Money and Brian Quaranta, Secure Money Advisors this was a fun one.
Brian Quaranta 26:06
Yeah. Steve, we will see you again next week folks, thanks for joining us.
Investment Advisory services are offered through foundation Investment Advisors LLC. an SEC registered investment advisor Brian Quaranta and his guests provide general information not individually targeted, personalized advice and are not liable for the usage of information discussed. Exposure to ideas and financial vehicles should not be considered investment advice or recommendations, buy or sell any of these financial vehicles. This information should also not be considered tax or legal advice. Past performance is not a guarantee of future results. investments will fluctuate and when redeemed may be worth more or less than when originally invested. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products did not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company