On this week’s episode of Retirement You Radio, Neil Mager discusses the retirement benefits for each phase of your life and how to factor them into your overall financial plan.

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Radio Show Transcript

Announcer 00:00

Information provided is for illustrative purposes only and does not constitute investment tax or legal advice information has been obtained from sources that are deemed to be reliable, but their accuracy and completeness cannot be guaranteed. Neither Brian Quaranta nor his guests are liable for the usage of information discussed always consult with a qualified investment legal or tax professional before taking any action.

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Steve 00:39

Welcome everybody this is retirement you radio increasing your financial IQ with the Brian Q. We’re talking about Brian Quaranta. filling in for Brian today, Neil Mager. But we are going to cover some ground today, no question about it. We’re going to talk about milestones ages that we hit and things that happen as we get close to retirement. And then we’ll talk a little bit about tax planning and retirement. That’s always a big deal. If you’d like to get a head start, give us a call right now it’s 800-656-8616, That’s 800-656-8616, we kick things off right after this Hey, welcome, everybody. This is Retirement You Radio increasing your financial IQ with Brian Q, I’m consumer advocate Steve and filling in for Brian today, the certainly capable, Neil Mager. You’ve been here before, Neil. Right? Neil is a senior advisor at Secure Money Advisors. He’s also a fiduciary part of the overall team that Brian often talks about. So hey, Neil, what’s going on?

Neil Mager 01:57

Hey, Steve, always good to catch up and talk and get some airtime myself. And for Brian Q, you know, I know he loves doing a show. But he gave me the green light to go ahead and take his place today. All right, fine.

Steve 02:10

That’s great. You know, I mean, we were talking about I talked about this in the in the opening about milestones and things that happen, especially as you know, when we’re younger, you know, you turn 16 or, you know, you turn 18, you turned 20. I mean, those are all important things. But when we get to retirement, that serious?

Neil Mager 02:28

Hey, Steve, I got I got one of those milestones coming up. My twin girls turned eight years old. Oh, that’s a big milestone. That’s up to them this week. All right, yes, but maybe not quite as big a deal as some of the things that we’re gonna go over here today. And let’s just let’s just dive right into it. So, one of the things that is important for folks to understand is there’s certain dates ages that we reach that really can make sense as to help you in your retirement planning. First and foremost, what about turning 50? I mean, 50 is typically a pretty big milestone, we have a big party, sometimes we have a midlife crisis. But you know, Steve, what also you could do is increase your contributions. I don’t know if you know this or not, but 401K’s 403B’s allow a catch-up contribution, an extra $6,500 per year. So now you can make a contribution totaling $26,000. This year, when you hit the age of 50. And older now, those that are 50 and older, also are able to contribute to IRAs and Roth IRAs with an additional $1,000 for a total of 7000. So once again, you hit that age of 50. Now, maybe you got some of the kids out of the house, you got some of the bills paid off. And maybe you’re really able to turbo drive that retirement with some additional savings. Sure.

Steve 03:51

I mean, that makes sense. And again, I think you hit the nail on the head when you said that, you know, maybe the kids are out of the house, the college is over. Weddings are paid for. And now it’s time to worry about me, right?

Neil Mager 04:02

I hear it all the time. You know, people come in and they have a pretty significant savings. And, you know, they’re pretty pleased with what they were able to accomplish. Because oftentimes what I hear is, you know what, no, we didn’t we didn’t start saving till we were 5055 years old, but we really kicked it up a notch and we’re able to generate enough savings to be able to retire comfortably. Sure.

Steve 04:24

So then No, so Okay, so we turned 50 It’s time for catch up. Then we turn 55. This is one that I’m not sure everybody is aware of. And it’s pretty interesting and important.

Neil Mager 04:34

Yeah. So normally people have to pay 10% Federal penalty along with income taxes when they withdraw money from retirement accounts before the magical age of 59 and a half. The penalty but not the taxes disappears on 401K and 403B withdrawals. If you’re 55 and older when you quit, retire, get fired. Whatever happens. The separated from service rule applies during You’re after the year that you turned 55. Now, why is this important, Steve? Well, throughout the past year, in particular, it seems there has been so many people that have come to us that have wanted to retire before that age of 59 and a half. Now they need access to their money. Because, you know, most people that we’re seeing nowadays do not have pension plans. So, they need access to their money. Now, if they leave it within the 401, k 403. B, they have the ability to still draw the money out without the penalty. So, it’s a key figure and understanding when you’re building this retirement plan. Well, how you have to have things set up to make sure that you’re able to generate the income that you’re going to need.

Steve 05:41

Yeah, and again, this is something I don’t think everybody is aware of. And like you said, over the last year, a lot of folks found themselves out of work. And if you’re over 55, this could be a lifesaver.

Neil Mager 05:50

Yeah, absolutely. Not only did they find themselves out of work with because of the changes their company was made. But what we saw Steve was a lot of people, you know, they found that they kind of liked being home. They didn’t really want to go back to the office. And then as companies wanted their employees to get back into the office, they said, You know what? This, now’s the time to review my financial plan, review my retirement plan, am I able to do this? And if I can, how do I go about doing it?

Steve 06:17

Right? Well, then again, folks, if you want to get a head start, 800-656-8616 that’s the number you can call. And then you know, so we turn 55. The next biggie is that 59 and a half. And why is that a red-letter day?

Neil Mager 06:32

Yeah, this is a number that people usually are pretty familiar with. Not always, but usually. But at this age, you can take withdrawals from your workplace plans, or IRAs without penalty, some 401 K plans allow workers who are at least 59 and a half to do an in service rollover, allowing you to move money from your current work plan into an IRA. So that’s a key number there. Because you know, a lot of people don’t understand exactly what that means. And as they’re building a retirement plan, and maybe don’t have the options that they’re hoping for within the 401k, 403. B, well, you’re able to do the in-service withdrawal, roll it to an IRA, and get into some, you know, investments that are better suited for your age.

Steve 07:18

Sure. And that really is an advantage to, and I know that you would secure money advisors, you know, you’re a fiduciary firm, you’re independent, you’ve got a lot of experience. So, you’ve seen and done this many, many times. And that can really make a difference, you know, in the big picture in the long haul?

Neil Mager 07:34

Well, that’s the thing, Steve, I mean, typically retirement plans within your company, you know, they got maybe 10,15,20 choices? Well, when you’re an independent and a licensed fiduciary, you have the opportunity to shop the entire marketplace for investment options. So, what would you rather do have the opportunity to invest in almost anything? Or the 510 1520 options within your 401 K four, three,

Steve 07:59

I see where you’re headed. I’m Neil, let’s go ahead and invite folks to call right now get on the calendar and have that conversation. Yeah. So

Neil Mager 08:06

for the next 10 callers who call in right now we’re going to offer our right track retirement system. Now, this is a really unique opportunity for folks to call in, get this retirement rate track system for the next 10 callers. Now we’ve seen others charge up to $1,000 for similar features or offers. But we’re going to give you this review with absolutely no cost or obligation for the next 10 callers. And really, you know, we always say, Steve is wouldn’t you want to know if you weren’t on the right track. So, this right track system really will give you a good idea of exactly how you’re invested how much risk you’re taking, what are the fees that you’re taking, what’s your risk adjusted return will give you also a customized income plan. A lot of people nowadays aren’t understanding exactly how much their investments are going to generate an income for themselves. So, all of this entirely no cost no obligation for the next 10 callers.

Steve 09:07

Hey, that sounds fantastic. Take advantage of the offer folks. It’s a way to be able to come on in sit down with Neil and the team at help secure money advisors, and really break down that complex financial world turn it into something that really just makes sense. It’s a chance for you to get a true practical financial review. And yes, you want to be on the Right Track to Retirement. They can help you it’s Secure Money Advisors 800-656-8616. You heard Neil, the next 10 callers get that comprehensive financial review, you will see where you are today. But more importantly, you end up with a roadmap that can help get you to where you need to be 800-656-8616, 10 callers right now. 800-656-8616

Neil Mager 09:50

When we come back, we will continue milestones for retirement.

Steve 10:05

And we are back on Retirement You Radio increasing your financial IQ with Brian Q Brian is taking some well-deserved time off filling in though, Neil Mager. Neil is a senior advisor with Secure Money Advisors and is also a fiduciary part of that independent team. And so, Neil, this has been really an interesting conversation because we were talking about really important times as we get closer to retirement, and we left off at 59 and a half. So then just six short months later, yep, we’re staring at 60. Why is that important?

Neil Mager 10:39

Yeah. So, we’ve covered a lot of great ones already turning 50 The increased contributions turning 55 Being able to withdrawal from your 401 K four, three B’s, the magical age of old 59 and a half. And now, what about 60? Steve? So, you know, a lot of people maybe aren’t knowledgeable this but for widows and widowers age 60 is the earliest that you can begin receiving Social Security survivor benefits. survivor benefits are available starting at age 50. For survivors living with disability, or at any age of the survivor cares for the deceased spouses, children who are under age 16 are disabled. But really, you know, 60 years old, you know, we always hear about the classic age of 62. But for widows and widowers age 60 is the first time that you’re eligible to collect survivor benefits.

Steve 11:27

And I think that’s probably not widely known, either. And I mean, if you’re in that situation, which would be unfortunate, but I mean, it’s good to know there’s some help out there.

Neil Mager 11:35

Yeah, absolutely. Just, you know, some added help. And that’s important, because sometimes you just don’t know, you know, if a loved one passes a little earlier than expected, how much help those people really need. So that’s a good, good number to keep in the back of your mind.

Steve 11:49

800-656-8616 is another number that you should keep in mind, give us a call, we’d love to hear from you. So, at 62, you said, most everybody understands Yep, when I turned 62, I can actually turn on my Social Security, but …?

Neil Mager 12:05

Well, obviously, if you take it at 62, you’re gonna face a reduced earnings benefit. So, you might receive between 25 and 35%, less Social Security than your full retirement age, Social Security amount. But really, what you have to do is a lot of analysis, you know, almost everyone coming in here, that’s looking to work with a financial planner, they want a plan designed around not only their investments, but their income planning in the income planning really starts with the guaranteed sources of income. So, we have to identify and understand when is the best time for our clients to collect social security. So, we want to understand and kind of break down do the analysis of Social Security as far as math goes, you know, if we take it at 62 versus full retirement age, or even age 70? Well, where’s our breakeven points? And if we’re not going to take it at 62, and we’re going to be retired? Well, where’s our income coming from? And how are we going to generate the cash flow to be able to do the bucket list that we promised ourselves that we would do?

Steve 13:11

Right? And that makes sense? Because do you see most people and I think I’ve read this recently, we’re nearly half the people take it at 62, just because they can.

Neil Mager 13:21

Yeah, you know, Steve, it’s always interesting to hear people’s thoughts on Social Security, because people come in and, you know, their coworker tells them to take it at 62, their brother-in-law tells them to take it at 70, their sister tells them to take it at full retirement age. So really, it’s a case-by-case decision. And we really have to understand all that’s involved to make the most educated decision for you and your family. But what we do see is a lot of people do take it early, because it puts less pressure on your investments. And also, our goal is how do we get the income as high as we possibly can, as quickly as we possibly can. And guaranteed sources like Social Security, help us achieve that goal, because we don’t want our clients retiring, sitting on opposite ends of the couch from each other. We want our clients out there, you know, getting the RV traveling the country, visiting the kids and grandkids across the country, joining the country club to play a lot of golf, buying the hunting camp, things like that, that our clients enjoy. We want to help them navigate the plan. And oftentimes it starts with generating the most income.

Steve 14:30

Well, and part of a you know, again, you said that very well in that, you know, especially if there’s any kind of age difference if it’s a couple, and there’s any kind of age difference. I mean, there’s all sorts of strategies that that you can help maximize Social Security and sometimes that means maybe one spouse does take it at 62

Neil Mager 14:45

for sure. Yeah, I mean, like I said, Steve, every case every family is going to be entirely different. So, we want to make the best decisions, case by case so I can never tell somebody, you know, absolutely take it at x age or By age, it’s really dependent on the family and what’s going to be best for them.

Steve 15:04

And then we turn 65. And that is a big year from a healthcare standpoint, obviously, because Medicare

Neil Mager 15:10

Yeah, at 65, most Americans are eligible for Medicare typically want to sign up in the seven months around your birthday, meaning the three months before the month, you turn 65, the month you turn 65, in the three months after now, obviously, this is a number that everyone has mapped out. Because, you know, most folks come in, they want to retire before the age of 65. But we have to understand what the cost of healthcare gonna be. So, this is a big help for folks. Because you know, if we have to bridge the gap a little bit by increasing the amount of money that we’re going to need and cashflow for in paying for health care. Well, we know once we hit at age 65, Medicare kicks in. And you know, all we really need at that point is a Medicare Supplement on top of the Medicare premium,

Steve 15:56

is that something that you guys do at secure money advisors to talk about that Medicare piece?

Neil Mager 16:01

For sure. Yeah, I mean, you know, one of the things that we wanted to do at Secure Money Advisors, just to make sure that we had a partner in all areas, as far as retirement planning goes, and we’ve partnered with an excellent health care expert, and he’s available to our clients to be able to understand, you know, all the different options, he’s able to communicate with us the costs associated with those options. So, as we’re as we’re cashflow planning, we can help our clients understand what things are going to look like.

Steve 16:30

Sure. And again, on that note, we’re gonna have to, we’re gonna have to take another break here. So why don’t we invite folks to call get on the calendar and come on

Neil Mager 16:38

in? Yeah, absolutely. Steve, for the next 10 callers who call in right now we’re going to offer a right track Retirement System, financial review for them, we’ve seen others charge up to $1,000 for similar features or offers, but for this review to you, no cost, no obligation. If you’re one of the next 10 callers, we’re going to offer you this Right Track Retirement System. Now, this system is going to take a look and show you exactly where you are right now. If you’re on the right track, a lot of people want to know, and what didn’t you want to know? Are we on the right track. And this really is going to show you exactly what you’re currently doing, what kind of risk you’re taking in your investments, what kind of return you’re getting on your investments, what kind of fees you’re paying within your investments, tax analysis, and also a customized income plan for the next 10 callers our right track Retirement System.

Steve 17:32

Hey, that sounds fantastic. Folks, take advantage of this offer today. Come on in and sit down and really begin to put together that financial roadmap specialist, you’ve never done it before. Yeah, don’t procrastinate any longer, make the phone call 800-656-8616. Neil’s gonna be there for you to take a lot of that complex financial world, just turn it into something that just makes sense. It’s your chance to get a true practical financial review. And it starts with that phone call 800-656-8616. The next 10 callers are going to get that comprehensive financial review, you’ll see where you are today. But more importantly, you’ll find that you’ve got 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

Neil Mager 18:20

We have three more major milestones in getting to retire this coming up next

Steve 18:35

We’re back on the Retirement You Radio increasing your financial IQ with Brian Q. Normally Brian Quaranta is here, he’s taking a little time off and filling in for Brian is no stranger to us, Neil Mager, Senior Advisor at Secure Money Advisors, also a fiduciary, along with the rest of the team. And you know, Brian, I love this conversation that we’ve been having today so far. I just think, you know, a lot of the things that we’ve gone over I know, it seems I think for those of us that sort of live in this world, we just think everybody knows these things. But really, they don’t, do they?

Neil Mager 19:08

Yeah, you’re right, Steve, I mean, a lot of these things, you know, since we’re doing it day in and day out, we think everybody knows, but you know, a lot of the things that come up and you know, a lot of people that are listening to the segment right now will say, you know, I had no idea I was capable of doing something like that, right? You know, that could be really helpful to them. So, yeah, second nature to us, but to the average person that’s not doing this day to day, it might be really great information for them.

Steve 19:33

So, let’s pick up where we left off. We left off, it’s turning 65. And Everybody pretty much knows that’s Medicare time. And there are other decisions that have to be made around that as well. And then we kind of get into, you know, sort of Social Security territory when we turn 66 or 67. What’s the significance of those two years?

Neil Mager 19:53

Well, full retirement age is 66 for people born between 1943 and 1954 the Age rises two months for each birth year after that until it reaches 67 for all people born in 1960, or later, now waiting until at least for retirement, to start your Social Security benefits means you won’t have to settle for checks that have been reduced, because you started early. Right now, the other major benefit is at your full retirement age, you can work and make as much income as you want, and not have your Social Security penalized. So, you know, we get our full primary insurance amount at our full retirement age. And we also no longer have to worry about the earnings threshold, once we hit this full retirement.

Steve 20:40

That’s a big deal, too. And because it doesn’t take much I mean, if you get if you if you take Social Security before your full retirement age, yeah, I mean, you can get penalized, or you ultimately get that money. But you know, why put it off? I mean, you know what I mean?

Neil Mager 20:55

Yeah, exactly. And you know, a lot of times people that are working, as time goes on, they want to start collecting their Social Security benefits. I’ve had a lot of clients that actually continue to work, but a full retirement age, they take their benefits. And what typically they’ll do is apply it to a major bill that comes every month that they want to clean up before they stop working. For example, let’s say a client starts collecting $34,000 a year in Social Security benefits, doesn’t really need the money because they’re still working. And now they’re applying that extra $34,000 a year to their mortgage, clean up their mortgage, wipe out a bill right before retirement, and now their cash flow has increased when they do retire because that mortgage is cleaned up.

Steve 21:40

No, I like that. That’s a what a great strategy. Yeah, it’s oftentimes

Neil Mager 21:45

people do something like that. And, you know, because, well, let’s, let’s jump into the next one, Steve, because it kind of goes through that. And, you know, turning 70 is when you get that massive increase in Social Security for every year that you delay, Social Security, after full retirement age, it increases by 8% maxes out at that age 70, it’s not only means more money for the rest of your life, but if you’re large earn a couple, it also maximizes the survivor benefit. Now, why I bring this up and how it relates to the previous topic is, well, people want to know, what are their breakeven points? You know, if I wait till to collect my Social Security until age 70? Well, when do I make up for all those years that I passed up and getting my check. And typically, the breakeven point between full retirement age and age 70, is 80 to 83 years old? And so, I have a lot of people come in that just say, you know, no, I’m not. I’m not sure. No mail has ever lived past 75 in my family. So maybe I want to collect my social security a little earlier. So, some of that analysis really helps people. Give them the right education on making the best decision. Sure.

Steve 22:57

And again, then we turn 72. And that’s when a whole nother chapter opens up. Not only are we turning 72, but all that money we’ve saved on a 401 K or an IRA. Hmm, government wants their hand, there’s got their hand up for you.

Neil Mager 23:12

It’s time to pay the piper, right? Yes, exactly. So, most retirement plan contributions, they reduce your taxes in the year that you make them in your, your accountant is going to grow tax deferred over the years, but Uncle Sam wants us cut at some point at age 72. Because of the secure Act, the New Age is 72, you’re required to take minimum distributions. Okay, so you want to make sure that you do those distributions? Because if you don’t, there’s a massive Penalty 50% Penalty, if you don’t take your requirements, minimum distribution, or if you don’t get the calculation correctly.

Steve 23:49

Sure. Well, and again, that I mean, those are the kinds of things that that you have conversations with? And if I mean, and again, if we’re working with you, at secure money advisors, you’re gonna make sure that that that RMD comes out when it’s supposed to come out, and we’ll never be late.

Neil Mager 24:07

Oh, absolutely, yeah, we have a team here that’s, you know, has reports run each and every year of our all of our clients that are turning 72, we contact those clients, we see how they want their distribution, whether they want it monthly, whether they want to wait until December to receive it. And also, what we’ve been doing a lot over the past. In particular, two years is a lot of tax planning around these RMD. So, we were trying to put people in the best position, you know, if people do not need the income, well, what can we do as far as tax planning goes to put them in the best position for those RMDs.

Steve 24:43

And one of the other things that you’re helping folks do too, and I know you’re doing a lot of the Roth conversions.

Neil Mager 24:48

Yeah, absolutely. That’s what I’m referring to Steve, you know, a lot of people that are coming into the office are certainly concerned about increased tax rates in the future. And so, what can we do today to help deal with those But tax planning, Roth conversions, things like that, that help maximize and put us in a position of strength. If 15-20 years down the road, tax rates have doubled.

Steve 25:10

Right. Wow. I mean, again, we’ve covered so much ground here. And it’s time for us to take another quick break. So, let’s do that. Come on back and continue our conversation.

Neil Mager 25:21

Yeah, absolutely. Steve, for the next 10 callers who call in right now, we want to offer our right track Retirement System financial review. Now we’ve seen other folks charge over $1,000 or more for these similar features or offers. But this review that we’re going to offer you no cost, no obligation, if you’re one of the next 10 callers who call in right now. Now, this financial review of this right track Retirement System, is really invaluable for someone who’s close to retirement. And what we’re looking to do is just kind of give you an analysis of the current investments that you’re in exactly what you’re doing there, how much risk you’re taking, what has been the returns over a three and five year time period, what are the fees that you’re paying with the investments, things of that nature, we also are going to offer you a tax analysis and a custom income plan for you to be able to understand exactly the type of income that you’ll get, you’re going to be able to generate in retirement from what you’ve saved. So, for the next 10 callers, call in right now, our Right Track Retirement System, take advantage of this offer

Steve 26:24

800-656-8616, you’re going to get that comprehensive financial review showing you where you are today. But more importantly, you’ll find that you’ve got now a roadmap that can help get you to where you need to be 800-656-8616. Again, 800-656-8616.

Neil Mager 26:43

The 401k is a great tool to save for retirement. What if your employer doesn’t offer one or perhaps you’ve maxed out your contributions, we come back some other ways you can save for retirement besides a 401k.

Steve 27:03

And we are back on Retirement You Radio increasing your financial IQ with Brian Q, filling in for Brian Q today is Neil Mager. Neil is a senior advisor with secure money advisors as well, why we’ve had a great conversation today, Neil, it’s always good and, you know, we talk about, you know, 401K’s with a lot of folks out 401K’s but there are a large number of people that don’t. And then we start talking about the IRA. That’s the alternative, isn’t it?

Neil Mager 27:30

Yeah, absolutely. You know, Steve, often, it’s interesting, because I’ve had a lot of friends say to me, you know, I don’t I’m not offered a 401 K through my company, what do I do, because I’m also not offered a pension plan when I retire either. But I got to start putting some money away. Now with an IRA, you can contribute up to $6,000, a year before the age of 50. Once you at the age of 50, you’re able to do $7000 a year that money grows tax deferred until you take withdrawals. Now you can contribute to both an IRA and a 401K. But if you’re covered by a retirement plan at work, you can’t deduct your IRA contributions from your taxable income. If you earn more than $125,000 for married, married filing jointly and 2021. Okay, if you’re not covered by a retirement plan at work, you’ll get the full deduction no matter what your income unless you file jointly with a spouse who has a retirement plan at-

Steve 28:25

I didn’t realize that you could contribute to both an IRA and a 401K. I mean, that’s a pretty sweet deal.

Neil Mager 28:30

Absolutely. And some additional savings for folks, you know, ways that maybe you want to put away some tax-free post tax money and pay the taxes now and allow the money to grow entirely tax free for later on. Now, that’s something called a Roth IRA. Now, with Roth IRAs, you’re contributing after tax dollars, you get no tax deduction for your contribution, but what you’re doing is you’re paying the taxes on the seed, and you’re allowing the harvest to grow. And when you harvest, that, it’s entirely tax free do

Steve 29:06

that, that just makes so much sense. And I know that you’re doing that you’re helping a lot of folks do those Roth conversions right now, just because the tax rates are as low as they’re going to be, and certainly as low as they’ve been. And I think you hinted that, you know, tax is probably going to go up. Yeah, I

Neil Mager 29:22

mean, that’s the everyone that’s coming in here. That’s their feelings, you know, most likely tax rates are gonna go up. I mean, they almost have to they’re, they’re really low right now. And what folks are saying is would I rather deal with the known tax rate of today versus the unknown of the future, and most people are deciding you know, what, I think I’d rather deal with lower tax rates now, what is the known and take a go ahead and deal with it now and have a nice tax-free bucket on down the line. So, you know, we’re being pretty aggressive each and every year. In particular They’re at the end of the year doing it for our clients, Roth conversions and things like that. But you know, it’s only going to really help.

Steve 30:06

Right. And that really makes sense as well, to be able to have that tax free money, because with the secure act that the past, you know, went into effect in January 1 of 2020. Now, with that, essentially, that stretch Ira has gone away. And but really, I think so with the Roth, and why so many people are doing the Roth conversions, that’s about the only way to sort of hand on, you know, carry on that that generational wealth, isn’t it?

Neil Mager 30:32

Yeah, exactly. Steve. So, at secure money advisors, we look at retirement planning and five key areas. Now the key areas are income planning, investment planning, tax planning, tax planning, health care planning and legacy planning. Now, tax planning and legacy planning, they go hand in hand, because you’re exactly correct, Steve, one of the things that the secure act did is eliminated that stretch beneficiary IRA. So now, you know, if the money is in a Roth IRA, well, that’s a great benefit to your beneficiaries. And it can be significant help, as far as the legacy plan goes. So, you know, something that we certainly have to consider when we’re when we’re building a plan, you know, how much money is needed for the folks now as far as income and cash flow? But you know, what can we get to the kids? And what can we do? How do we get there tax free?

Steve 31:28

Sure. And again, but those are the kinds of things that you work with people every day. And to help that that process? Can we touch on health savings accounts for a second?

Neil Mager 31:38

Yeah. So, you know, that’s another thing that a way to with certain high deductible health insurance plans, you can save money tax free, and something called a Health Savings Account HSA, now you can contribute up to $3,600 a year for an individual, or $7,200 for a family. If you’re 55 or older, you can contribute an additional $1,000. More now, what you want to do is utilize this money for health care expenses, allowable medical expenses, including co pays, and items, even such as eyeglasses. And if you don’t spend the money on a year-to-year basis, it rolls over indefinitely. So, a really nice way to you know, we are going to have medical expenses at some point or another, a really nice way to get some money set aside. tax free. And again,

Steve 32:25

you put money into it. And if you start early enough, if you’ve got that high deductible plan, that’s the caveat that gets you in. But again, that money, you know, continues to grow, that money grows just like an IRA. I mean, it can be invested. Right? I mean, you help people do that.

Neil Mager 32:40

Certainly, yeah, I’ve never had someone be disappointed that they started an HSA. So, you know, it’s another way as health issues occur. As we get older as we want to retire younger, you know, these HSAs are really valuable to folks to be able to help offset some health care costs, in particular when they retire a little bit early.

Steve 33:01

Sure. All right. Well, folks, I mean, gee whiz, was we’re out of time again, Neil. But let’s go ahead and invite folks to call one last time today.

Neil Mager 33:08

Yeah, for the next 10 callers who call in right now we’re going to offer a Right Track Retirement System financial review, absolutely no cost or obligation to you. We’ve seen other folks charge $1,000 or more for similar features and offers this review, it’s really going to give you a good idea and understanding of exactly what you’re doing. If you’re on the right track. What we’re going to do is a tax analysis, a customized income plan, we’re going to review your investments with a sophisticated software that we have. And it’s going to give you an idea of exactly how much you’re paying in fees, what your performance has been, how much risk you’re taking. So really, really valuable. Next 10 callers calling right now, our Right Track Retirement Financial System.

Steve 33:56

Hey, that sounds fantastic, Neil, folks, this is your last opportunity today to make that call and get on the calendar with the folks at secure money advisors. And they can take that complex financial world, turn it into something that really just makes sense. It’s an excellent chance for you to get a true practical financial review. And it’s a phone call away 800-656-8616 The next 10 callers right now, get that comprehensive financial review that Neil just described, plus all the extras that go along with it. And then when you walk out the door, you’re going to have in your hand that roadmap that guide that can help get you know where you need to be. In short, you’ve got nothing to lose 800-656-8616 Again, 800-656-8616. Neil, as always, a pleasure to chat with you and boy, we went over some great information today. That’s so important for folks.

Neil Mager 34:45

Yes, Steve, I appreciate your time today. I had a blast as always, and I hope people got a lot out of that.

Steve 34:52

Me too. Folks, if you want. We’re going to be back again next week. We really do appreciate you listening and we are going to be back again next week. New topics, new questions and a whole lot All right here on retirement you radio with Neil Mager and Brian Quaranta.

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