Cynthia de Fazio 00:00
Welcome to Retire Smart Austin. My name is Cynthia De Fazio, joined today by Phil Capriotti Sr and Henry Lande, certified financial planner at Empower Wealth & Tax and to our viewers at home, thank you for spending time with us always on Retire Smart Austin, we know you tune in weekly for some great advice on how you can empower your wealth. Well, on today’s show, we are talking about a very important topic, The Great Wealth Transfer. What does that mean to you? It actually means that for the first time in history, there is going to be a lot of money transferred on to different generations. Well, how can that impact your retirement? Today’s show is just for you, Phil. How are you today?
Philip Capriotti 01:07
I’m wonderful, blessed and happy to be here with you and Henry. It’s a beautiful thing. These shows keep getting better and better, and I have to tell you, Henry personally picked this topic out. I love it. Very, very proud of them, because, you know, this is probably a topic that’s not talked about at all, and many times, parents don’t want to talk about it. They don’t want to talk about it with their kids, because they don’t want the kids to know how much wealth they actually have. The kids don’t really talk about it because they don’t really care that much. They’re not really thinking that far ahead, but we’re going to talk about it, and- but before we talk about it, I wanted to mention the grand opening of our new Lakeway B Caves office. Okay, it’s a gorgeous office. We’re very blessed to find it the build out is just about finished. It’s got a gorgeous view of the hill country looking down at the City of Austin. It’s at on five. It’s number five, Lakeway Plaza Court. Okay, so we’re going to announce shortly the grand opening. We’re going to have the Chamber of Commerce out there. We have literally had dozens and dozens of folks from Lakeway over the last four years say, Phil, I’m not coming to Cedar Park when you go to open up an office in Lakeway. And I kept saying, Well, we’re getting there. We’re working on it. You know, you can’t open up an office without qualified personnel to actually man the office, especially since we’re in a very specialized practice. So, a couple things. If you are a certified financial planner, live out in the Lakeway B Caves area. I want to be part of a partnership in a very huge, growing company. Please give us a call. Send your resume, because we’re looking for a senior and junior advisor, as well as an office manager, we’ll do the training. We just need you to have the bones, you need to have the certifications, and then we can teach you the rest. So, give us a call, 888-818-6557, or call Erica or Jenna at our home office and come on in and let’s do an interview.
Cynthia de Fazio 03:19
I love it, Phil, and congratulations on another office, because you are just growing like crazy, and I can see why.
Philip Capriotti 03:25
God bless us. You know, it was always up and it was in the plan, but it’s always you have to wait for time. You have to wait for the right time. And this absolutely is the right time.
Cynthia de Fazio 03:35
It is. It is. Well, Henry, speaking about the right time, talk a little bit about this Great Wealth Transfer. Over $84 trillion is anticipated to be transferred to different generations. Yep, wow. What’s going to happen? That sounds like it could be a little bit of a time bomb if we’re not prepared.
Henry Lande 03:52
Exactly, and it’s always a good time. And I’ll just- the free advice right away. Make sure your estate plans are up to date. Come into our office. We can do a review of those. We can get you in touch with our local attorney as well. But we want to make sure that we’re prepared for these things, because you never know what’s going to happen with the unexpected. One of the big things that I wanted to focus on as we talk through this is $84 trillion going from parent to child or even grandchildren. Structure is a very important way to reduce the tax implications of these transfers, as well as ensure they go into the right hands. So, there’s different designations you can put on these accounts to ensure that it goes to exactly who you want it to, and maybe make sure it doesn’t go to exactly who you don’t want it to.
Cynthia de Fazio 04:35
Okay, sounds good. Would that be Uncle Sam?
Henry Lande 04:39
Yes, that’s one of the ideas, as well as sometimes family dynamics can get a little…
Philip Capriotti 03:43
An unintended beneficiary, yeah, we’ll go with that.
Cynthia de Fazio 04:45
Yes, our silent partner that’s usually there. Okay, so proper planning is key.
Henry Lande 04:51
Yes, yes. So, first thing is, we got to work on the estate side of it, make sure that things are going to be structured and going to whom they need to then we’ll dive a layer deeper to say, how can we do it in an efficient manner? A lot of you may have qualified accounts, and they’ve grown to extreme amounts. If that is passed down to a child while you’re taking distributions, that child will continue taking distributions over now a 10-year period, every dollar has to come out of it if you are to be deceased and leave that behind. Wow. Used to be based on their actuarial table over their lifetime. So, if your kid’s doing well and they’re earning some money and doing good, their tax bill is going to be exponential over those 10-years that they have to withdraw funds from that account. Absolutely. So, planning efficiently is a very important thing at this time, start staging for that.
Philip Capriotti 05:43
Not only that, most of these children also are not working with a financial advisor. So, I urge all of our clients, let’s get to meet the children the there’s a historical fact that most children that inherit large sums of money without being directed by a certified financial planner or a family representative, family fiduciary, end up literally blowing this money over as short as a three-to-five-year period. So, the other piece of this is, if it’s going number one, we wanted to plant we want to plan to transfer this wealth tax free, or at least tax efficiently. The next thing is, you need to have your children prepared with your- by your fiduciary on how to properly help them navigate the shark infested waters of inheriting large sums of wealth without really knowing what to do with it. And I’ll give you an example. How many of these young ball players, I’ll say sports players, football players, specifically, they’re 18. They land these big, huge contracts. Now, without proper wealth planning, they end up they go from broke to having all of this money, many of these kids end up in severe trouble. Why? Because they really weren’t ready. They weren’t properly advised, and they did not have the education or tutelage to help steer these kids away from all of the- and I say, shark infested waters. There’s a lot there’s a lot of Piranha that go in after these accounts. So, we want to protect our children, not just from their selves, but also from the powers that be outside of the family. Or I like to say, you know, unintended beneficiaries, ex-wives, things of that nature.
Cynthia de Fazio 07:34
Yes, absolutely. And Henry, what about capital gains taxes? Are those part of this as well? We’re going to take a commercial break in just a moment.
Henry Lande 07:43
Yeah. So if you have something improperly titled, you could run into a scenario where you do not get that step up in basis, which means if you bought it for $10 it’s worth 100 if you were to be deceased and it’s titled correctly, when your child receives it, the basis would then be $100 so they could sell it. They don’t have to worry about paying capital gains tax, but it’s where we get the fine-tooth comb out and say, What is this? How is this structured? How are we going to make it better when you come into our office?
Cynthia de Fazio 08:10
Okay, it’s all about coming into the office and having a plan. Well, Phil, we’re going to take a very short commercial break, but do you have a message to the viewers at home this week? What would you like to say?
Philip Capriotti 08:20
I would like to say, come in and meet the staff. Our staff is- not only are we extremely knowledgeable and friendly, but we have a wealth of information to share with you. If you’ve been a viewer, just tuned in today, or you’ve been watching us over the last five, six years, give us a call. Dial 888-818-6557, come in for a complimentary portfolio review, Morningstar report and portfolio observation and analysis, and also a Tax Review. Let’s lay eyes on those taxes and see if maybe your tax preparer or financial advisor is missing opportunities that should be taken. So, you can go on to empowertaxbill.com and do the quick a quick quiz, or go into empowerrothquiz.com and in either a case, give us a call or click the QR code. Come on in. These are complimentary no obligation interviews. Don’t feel obligated to work with us. We feel obligated to give back to the community through our- through educating you, through the services we offer in our company. So, pick up the phone and give us a call.
Cynthia de Fazio 09:32
888-818-6557, Phil, thank you so much, Henry, thank you so much to the viewers at home. The number to call is 888-818-6557, 888-818-6557, 888-818-6557, this is your opportunity to empower your wealth. Take action today. 888-818-6557, or click the QR code at the bottom corner of your screen. We’ll be right back on. Retire Smart Austin, stay with us. We’re talking all about The Great Wealth Transfer. Over $84 trillion will be moving around. Stay tuned.
Philip Capriotti 10:05
Hello. My name is Phil Capriotti. You know, some of the folks that come into our office are concerned that they might outlive their money in retirement. At Empower Wealth & Tax we’re able to address those concerns by answering your questions and by developing a comprehensive, tax efficient retirement income plan. Now this includes a cash flow analysis, a tax and risk assessment, as well as a comprehensive investment portfolio review. Remember, this is a complete and comprehensive analysis, and it’s prepared by one of our licensed fiduciaries, absolutely free. As you know, we never accept compensation for this service. We simply want you to be educated and informed. So, call us today or select one of the options below and start empowering your retirement right now.
Cynthia de Fazio 11:02
Welcome back to Retire Smart Austin. My name is Cynthia De Fazio, joined today by Phil Capriotti Sr and Henry Lande, certified financial planner at Empower Wealth & Tax. We’re talking all about The Great Wealth Transfer. What is that? Exactly? Over $84 trillion of hard-earned dollars are going to be passed on to generations. What does that mean for you? Glad you asked. That’s what today’s show is all about. So, Henry, I want to ask you something when it comes to investment management. Talk a little bit about how scary this can be when there’s assets being passed along, but maybe someone that receives them doesn’t really know what to do.
Henry Lande 11:42
Yes. So, unfortunately, this is the reality of the job that we have. People and loved ones pass away and inherit assets and have no idea what to do with it. One in five lotto winners goes broke. That’s a statistic, that statistic that’s out there. The same could be your child if they were left to their own discretion and invest it in a way that advisor XYZ put them in. It may not be appropriate for them. Moving forward, we take all of these into account when we do our morning star analysis on a portfolio, and someone who’s 30 years old and just inherited money from a 70-year-old may have a very different looking portfolio and transition needed to get up and running and running and start building their financial success moving forward. Okay?
Cynthia de Fazio 12:24
And I’m sure that happens quite a bit. When you’re receiving a large sum of money, you have no idea what to do and you don’t want to spend it willy nilly.
Henry Lande 12:31
Yep. And I’ve always said CFP stands for Certified Financial Planner, but it also stands for counselor for people. There’s a reason we have tissues in our office; there’s a reason we have deep, tough discussions. It’s because it’s necessary to move forward, and not everyone knows everything. That’s why we’re here. We’re here to hold your hand and be on your team.
Cynthia de Fazio 12:50
Most definitely, 100% Henry, thank you so much, Phil. I should also ask you, what about family conflict?
Philip Capriotti 12:56
Well, number one, okay, two out of three heirs, okay, are financially illiterate. Oh, and that’s just a natural statistic. So many times I’ll have a client say, Well, you know, my daughter, she really has got this going on out of there, like three or four kids. And I’m like, Yeah, who’s going to direct the other kid- the other children, and so forth. But at any rate, family conflicts, lack of communication. I’ll give my own family as an example. Okay, okay, when my parent- now I’m a financial advisor, okay, and have been for many, many years. I went to one of the finest business schools in and in Philadelphia, graduated top of my class, and my parents would not let me know what type of assets they had. So, so what we have is, many times, are- we, us as baby boomers, never really sharing our financial situation with our children, so they are completely unaware of the other thing is, many times we don’t have the conversation when I and I’ll tell you why we’re baby boomers. So, we believe that we’re immortal. We’re going to live forever. We’re going to live we’re the ones that are going to live to the 100 and never have to go into a nursing home. That’s who we are. Okay? So, we have to sit down and have discussions with our children. This is what we have. This is what I’d like you to have. This is who I’d like to assist you in managing it. This is a conversation, and many of you out there listening to this show know it’s true. You need to have these conversations with your children and or grandchildren. It’s really important because that will assist in a very smooth transfer of this wealth upon the demise of a loved one.
Cynthia de Fazio 14:44
So, important, because the last thing you want is family conflict when you’re grieving. That is the worst position to be in.
Philip Capriotti 14:52
We have situations where sisters never talk to each other, brothers never talk to sisters, and so forth, so and all of this can be a. Can be eliminated on the front end just by having again, communication and education. It’s the key to everything.
Henry Lande 15:06
Yeah, and to our viewers out there too. We do family meetings as you progress in age and you start to say, I may need more help with this than just Mom and Pop taking care of it. We do help. Do family meetings, where, with your permission, we’re not reaching out to your kids and telling them behind your back. We will sit you down. We will explain these things and help detail their plans. So that way, both the child knows and gets a chance to know what a CFP does and how these assets are going to be theirs, entitled. All of those things.
Cynthia de Fazio 15:36
All of these things are so important, especially when we’re talking about such a large sum of money. Henry also this next one. Sometimes if you don’t take action today, your charitable intentions could be lost. So, what we’re saying is to the kids at home, you can’t go out and buy that Lamborghini. There’s other things parents wanted with that money. Talk a little bit about that. Yeah.
Henry Lande 15:54
So, part of your written out will can have different beneficiaries. If you had two children, typically it would be 50% to one child, 50% to the other. Or you could decrease that and say, I want 10% to go to a certain charity. It’s a very structured way of doing it and spelling it out that way, the kids can get half a Lamborghini, and then the charity gets what they need moving forward as well. It’s a great structuring way to set up a lifetime of giving and giving back to those things that you care greatly about.
Cynthia de Fazio 16:22
Yes, so that your wishes are indeed carried out the way you intend. So important.
Philip Capriotti 16:28
Part of this wealth transfer would be business succession. So, when you have a business and you’ve made much of your wealth from the business, maybe it’s a family ranch. Maybe it’s a family vineyard, maybe it’s a family farm, maybe it’s an automotive shop down the street, or any type of firm, legal firm, a CPA firm, what have you. And this business has built up quite a bit of equity. The transfer or succession of that business upon the demise of the business owner is extremely important. So, I would ask you, how many of you folks watching today own a business that have set aside business succession plans, and that means actually putting it in writing, talking with your fiduciary, your certified financial planner, about putting a plan together that makes sense and carries your wishes out to the tee. So, I would say nine out of 10, and that’s just a wild guess, have not. We’ll have to do that poll when we have folks come in so but again, this is part of that wealth transfer over the next 20-25 years. over $84 trillion. That’s a huge number. We’re talking about T. With a T, not a B, Trillion. That’s a lot. And 20 to 25 years is a blink of an eye. And we know that because the last 20 to 25 years flew by.
Cynthia de Fazio 17:56
Oh, it did 100%.
Philip Capriotti 17:58
You’ll learn that later on.
Cynthia de Fazio 17:59
I was gonna say, maybe not for Henry,
Henry Lande 18:03
It’s been quick. Yes.
Cynthia de Fazio 18:06
It’s been quick. Well, Phil, we’re going to take a commercial break, but again, your words of wisdom you’d like to give the viewers at home. Should they be taking action right now?
Philip Capriotti 18:13
How many financial advisors actually offer you an opportunity for complimenting free consultations, both with your estate, your trust, your taxes, your wealth management, your insurance plans. From what I’ve noticed in Austin, none, or if there are, I don’t know about them. So, this is an opportunity for you to come in, meet with us. Dial 888, call our office, 818-6557, and take advantage of our complimentary portfolio review, written, tax efficient retirement income plan and also estate planning needs. Come on in we offer too many times. We’ll do a third interview, completely complimentary, and there’s no obligation to work with us or anyone, any of the employees or counselors that we have in our company. So, this is a huge offering, and you, as you can see, a lot of folks have been taking advantage of it. This is why we’re building those additional offices in and around the viewing area. But take advantage of it now, while it is complimentary. Pick up the phone or click the QR code. It’s 888-818-6557, come on in. Meet Henry, meet some of our other advisors. Come on in and have a conversation with me. I have people stop in the airport. Phil. Hey, Phil, is that you? Are you the guy on TV here? Let me give you my card. I’ve been meaning to call you. If you’re one of those folks that have been meaning to call, pick up the phone and call and come on in and let’s have a meet and greet.
Cynthia de Fazio 19:46
Phil, thank you so much, Henry, thank you to the viewers at home. The number to call, 888-818-6557, 888-818-6557, for getting on the fast track if you need to schedule something today, because this information is so timely. Okay, grab your smart phone, open the camera app and click on the QR code at the bottom corner of your screen. That takes you right to the landing page of Empower Wealth & Tax you can get on the schedule today. Remember, we’re talking all about The Great Wealth Transfer over $84 trillion will be transferred over to generations to come. So please, this is very timely when we’re talking about your proper tax planning. Folks at home, empower your wealth. We’ll be right back momentarily.
Speaker 4 20:26
We know the market is going to get worse from here. This is the biggest monthly decline in 10 years. People’s 401(k)s took a major hit.
Speaker 5 20:35
My investments are tanking. My retirement isn’t going as planned. I can’t believe I let my kid talk me into buying crypto. I mean, what is that anyway?
Speaker 4 20:46
This was the fourth worst contraction in history.
Philip Capriotti 20:49
So, how are you two doing? Your financial future doesn’t have to be uncertain. I’m Philip Capriotti, CEO of Empower Wealth & Tax. If you amass the nest egg, it’s time for a financial advisor to help you reach your retirement goals. This is one of the greatest tax windows in history. Now is the time to take advantage of this tax discount while we can we specialize in retirement income planning, tax mitigation, estate planning and so much more so plan your retirement right Call now for your own complimentary portfolio review and tax analysis.
Cynthia de Fazio 21:26
Welcome back to Retire Smart Austin. My name is Cynthia De Fazio, joined today by Phil Capriotti Sr and Henry Lande of Empower Wealth & Tax. And we’re talking all about The Great Wealth Transfer again, over $84 trillion will be transferred on to generations to come. So, this is very timely. Thank you for being with us today. One of the things I would love to talk about, because this is something that needs to be addressed, would be digital asset confusion, big one when we’re talking about crypto, yep, huge.
Henry Lande 21:57
It’s a, it’s a common thing. If you haven’t heard of Bitcoin, or AI, or crypto, what rock have you been hiding under?
Cynthia de Fazio 22:05
Very large one.
Henry Lande 22:07
So, it became very common multiple years ago, and clients have invested in it in different ways. You can invest in ETF, or you can invest in it outright. The investing outright option is fine. However, there have been horror stories in recent news. If you have a Bitcoin purse or online wallet, you have to remember that password, and that needs to be in your estate plan, or your kids will not have access to it. Wow, it’s a sad thing. There’s been millions and millions of dollars that are uncollected from Bitcoin wallets because users can’t get in on the back end to access that money. Wow. So, very important in your detailed estate plan that we get that taken care of. And let’s have the family meeting. Let’s sit down. Let’s explain where all those things are to your child in case of the event of losing a loved one.
Cynthia de Fazio 22:56
Are you finding that a lot of your clients are interested in the crypto currency
Philip Capriotti 23:01
It’s not just crypto. Now, it’s any it’s any industry associated with it, like I’ll give you an example, a lot of energy companies, a lot of mining companies now who have been mining for crypto to make Bitcoin, they realize that there’s about a million Bitcoin left in the ground. Now, many of these companies are also energy companies, and they’re- so, what they’re what they’re finding is they’re using their technology to not only mine Bitcoin, but they’re using it to advance energy so we take a look at in our unconstrained portfolio, we look at some of these companies, and this is where we get these huge gains, because, again, this is not your chocolate, vanilla, cookie cutter portfolio, but again, there’s huge wealth, and it’s all in the same industry, it all revolves around the crypto.
Cynthia de Fazio 24:01
Wow. So interesting. Now, what about the loss of trusted advisors? This is a big thing. What happens with the loss of trusted advisors? And Phil, we talked about this, you’re not going anywhere. You are going strong. And you surrounded yourself by some younger advisors so that people have peace of mind. So, talk a little bit about that, about when you retired age 102.
Philip Capriotti 24:27
Right? Hahaha, Well, first of all, from what I understand, they are now building new hearts, livers, lungs and so forth, out of our own DNA. And over the next three to five years, you actually won’t need to go out and wait for an organ to become available, they’ll be able to build you your own organ. That’s number one. This is going to inadvertently increase, what they say, increase life expectancy significantly. So not to worry folks. But what I would say with respect to that, is your trusted advisor might also. Your marriage partner, many trusted advisors are the husband or the wife who is managing the portfolio. So, I would say to these trusted advisors, what provision have you laid out for your wife or your spouse in the event you pass prematurely. This is another reason folks come into our office and they’re like, You know what? I’ve been listening to you for five years. You know, I’m pretty sticky when it comes to managing my own investments. I really like to but one day I’m going to kind of miss a step, lose a step. But if I leave this all to my wife. God knows what will happen to it. Who knows who might get a hold of her friends or what have you? And so, with that being said, I would say another reason to call up for complimentary estate planning sit down. I mean, we do this with our board-certified attorney all the time. We do it for clients. We want to show you what’s in our wallet, okay, which meaning all of the services that we offer. So, give us a call. Come on in, and I’ll let Henry go ahead and finish up on that loss of an advisor. What normally happens is they hand you off to who?
Henry Lande 26:18
The youngest person there that hasn’t worked with a client before. They say, Well, you know, we value this relationship, but XYZ.
Philip Capriotti 26:26
It’s- the client’s been with us for years and years, so this will be easy to cut your teeth on, yep, and a lot of big box retailers do just that. Wow. Okay, and I’ve had clients come in and say, Yeah, I worked with this guy for 2025, years, was great. He retired or passed away, and now I’m working with this individual, and it’s just not the same. You know, it’s not the same because we don’t have like values. It’s not the same because they might not have the education or the experience. It’s not the same because it’s not the trusted advisor.
Cynthia de Fazio 26:58
Yes, yes. And I know that happens quite often, so that’s something that definitely needs to be curtailed immediately. Well, Phil, we only have a minute left of the show. Final words of wisdom before we say goodbye.
Philip Capriotti 27:09
I know you have all picked up your phone and clicked the QR code what you’re watching today, because I’m sure this touched everyone. I’m sure that the other half of you that haven’t picked up the phone to click the QR code have dialed 888-818-6557, call us today. Come on in. I want to introduce you to our entire staff. Let’s get your estate in order. Let’s get your financial plan in order. Let’s put your portfolio in order. Give us a call today. Look forward to meeting you and look forward to helping and being of service to you and your family.
Cynthia de Fazio 27:42
Phil and Henry, thank you so very much to the viewers at home, 888-818-6557, empower your wealth today, we’ll see you soon.