Welcome to retire smart often My name is Cynthia De Fazio and I’m joined today by Philip Donato Capriotti, senior of Empower Wealth, LLC. Phillip, how are you today?
Good morning, I’m doing fine in yourself. Good morning.
I am doing fantastic. Thank you so much for asking, you’ve been quite busy. Let’s talk about that for just a little bit.
We did have a lot of fun. So, we’ve been doing- the shows have been great. We implemented a couple of new programs. So, the first thing is, since we’ve gotten a relief from COVID, the libraries have now opened up educational workshops for us. And we do approximately three a month. Wow. So, we work with, we work with them, many of the libraries we put on these (indistinct), they’re about an hour long. So, they’re designed just like the TV show, to teach people about Social Security, retirement income planning, Roth conversion, it’s, it’s pretty much a combination of almost all of our shows altogether, you in about an hour, hour & 15-minute workshop, okay? Doesn’t cost to join. There’s no obligation, but what we’re seeing is about four out of five folks that come to those social security workshops, are booking appointments to come in for the labs, which is actually in the office. So, when we have folks, you know, we take five viewers who call in and schedule an appointment. So, when we work with the libraries, anybody who attends Of course, they’re coming in person or not just turning on their set. So, since we started that, it’s been great. Now remember, when COVID hit it, shut down the libraries, and we had to start the TV app. So now the COVID is over. We’re still love the TV, we love the radio, but we’re doing the workshops anyway. And we’re using those workshops to teach people and also to recruit new financial advisors. Folks, you can call in now, from just about anywhere in and around the city of us, Austin, and we have a financial advisor, who has been trained by our staff, and who’s connected with us work directly for us, to make sure that you have a comprehensive retirement income plan. You know, you don’t have to drive all the way to Cedar Park anymore. We’ve made it very, very convenient with multiple advisors in multiple offices. So, we’re really pleased now, that’s keep me keeps me going because I’m moving going to different offices to do training and different events. The other thing that we implemented is we’re doing now it’s a college workshop. So, we do normally once a month at one of the local colleges. We’ll do a two day. Basically, it’s a work study. So, we’ll do it for like a Tuesday and a Wednesday, from six to eight, you have to sign up. There’s a small nominal fee, it’s not much I think it’s about 40 $50 or something of that nature, want to make sure folks have something in the tank. And that’s a more comprehensive training, retirement income training. A lot of people really like that, because we touch everything. We touch everything from Social Security to retirement income planning, to Roth conversions, mortgage, portfolio management, all of it. And that’s a lot of fun. And so, again, it’s more time intensive, but we’re reaching out to more folks, some folks are apprehensive about picking up that phone. You know, I guess they get stage fright. We’ll call it bone fright. Okay, because they’re, they’re concerned that they’re obligated. But again, as you all know, that’s not true. Call 888-818-6557 Be one of the first five to set up your complimentary retirement income plan, and Morningstar report, review. And we’ll be happy to accommodate you. We love new folks coming into the office. Well
Well Philip, the speaking of new folks coming into the office, you actually have a viewer question that I definitely want to get to, and this is a Mr. It’s actually Dr. Dave. Okay, this is Dr. Dave from Lakeway. And he’s asking, I have worked for 38 years, Philip, I’ve been maxing out my 403 B’s since then, how do I create balance using Roth conversions? I also have a pension at age 65.
Well, that’s a great, great question, Doc. Dr. David, first of all, pick up the phone right now. if you’re watching and get into my office, we need to we need to talk. One of the disadvantages of working hard and saving hard, especially in these 403 B’s 450 741 is the is the looming effect of increased taxes in the future. All right. So, when the first thing we need to do is we need to put together a comprehensive plan to do Roth conversions. If you’ve been contributing for 35 to 38 years, into a 403 B, or any type of tax deferred government retirement plan, you’ve probably amassed quite a bit. Most of my clients who are doctors normally have anywhere from 234 million in these plans, when we actually do the retirement income planning, and we show you what your what your required minimum distributions are going to be at each age. It’s staggering. So, we start to take a look at. So, Dave, you’re going to look at, okay, I’m getting about 50,000 A year from Social Security, I’m going to get we’re not even sure probably somewhere around 60 to 90 or more possibly 120,000 for the pension. Well, now this retirement plan needs to be unwound. Because if an individual is not spending more than 100 150 200,000, a year, an RMD on a 2, 3, 1.5 and up, 1 million up retirement plan can be in excess of 70, 80, 150. As we get older, and have a lower life expectancy, these RMDs go into six digits. And the problem with that is if you’re married, when you pass away, your spouse has to now take these RMD’s. So, income planning and tax planning, you have the income, you’ve been diligent now be even more diligent. And let’s do the tax planning, because that’s what you need a Roth conversion system and strategy. And by the way, we’ll talk more about it. Our office, we have our own Roth conversion department, I have an entire department with licensed tax professionals who acts actually execute these Roth conversions. We actually do a mock tax return and put together a plan to determine how much do I need to compare it each year at what tax rate in order to bring these RMDs down to a more manageable level. So, doc, give us a call, Dr. Dave 888-818-6557 and anyone else in the viewing audience that has this similar challenge, a potential tax problem or major tax consequence, because of saving too much, and working too hard. You need to unwind these and how to do it is through Roth contributions and Roth conversions. There are also other plans that we can use as well.
Perfect and actually felt there was a question that came in from Ken in Austin, we’re going to take a commercial break in just a moment. But he would like to know, Phillip, what is the difference between a Roth contribution and a Roth conversion?
Well, okay, so we’ll take that right now, real quickly, the difference, a Roth contribution can be only be made while you have earned income. So, it could be a Roth 401 K contribution, which, if you’re working still and your company has a 401 K plan, I highly recommend because the limits are higher, you can contribute up to $27,000 A year into as long as you have that income to support it into a Roth 401 K. And this, this allows the 401 K or four, three B to freeze, you’re still going to earn money on it and still going to grow but you’re not continuing to make more contributions. And now start that third and most important plan, the Roth. The Roth conversion is when you’re taking money from an IRA or 401 K or four, three B and you’re moving it and paying taxes once moving it into a Roth IRA 401 K or the like, you pay the tax once. Now when it sits in that account. It grows tax free for your lifetime. If you’re married your spouse’s lifetime, and for up to 10 years of your children or your beneficiary’s lifetime, whether it be children, grandchildren, or the man on the moon so to speak. Now, if you have charities involved, let’s say you are a charitable person, we can look at we can look at contributing RMDs to these charities but still we have to put together a written plan to do it. Organize it all.
Okay. Well, Philip, this is the perfect time for us to open the phones. Would you agree? I would all right to our viewers at home the number to call is on yours. screen that number is 888-818-6557. Philip has five spots available this week for the complimentary consultation and all you have to do is take advantage of picking up the phone and calling in. If you have your smartphone next to you go ahead grab it, click on the QR code in the bottom corner of your screen that’ll take you right to Phillips landing page. We’re going to take a very short commercial break, but don’t go anywhere. We have more viewer questions when we return.
Hello, folks, my name is Philip Capriotti senior. I’m the president and CEO of de nada wealth management and senior tax and insurance advisors. For over a decade now we’ve been helping retirees formulate tax efficient retirement income plans. Many consumers and clients are extremely concerned with the ever-increasing federal debt and the potential for taxes to go up significantly. We have specific tools, the expertise and the staff to help you develop your own tax efficient retirement income plan. So, call today for your no obligation complimentary review. We’ll see you in the office.
Welcome back to retire smart Austen. My name is Cynthia De Fazio and I’m joined today by Philip Donato Capriotti senior of Empower Wealth LLC, Phillip, a great show we’re having today talking about planning properly for retirement. And I do love the viewer questions because people are paying attention each week. They’re calling in and they’re always anxious that we’re going to get to their question. They’re hoping it’ll be their week.
That’s very true. And I just wanted to preface it’s not everyone that even if you do not have a 401 k or IRA, where it’s seven digits or above, many folks we see with modest accounts, 234 100 567 $100,000 still have a tax issue or a potential tax problem. This is why you need to do the planning. So I just wanted to say one thing, don’t think just because your IRA or 401 K isn’t a million or more that you don’t have a tax problem or don’t need a retirement income plan. You need it even more because you have limited resources. And these tax increases are going to affect all of us at every level.
Thank you so much, Philip. Now this is a great question. Actually. This is Sheila from Dripping Springs, Texas. I have a similar challenge as Dr. Dave, I’ve worked 40 years and saved most of it in my 401k. I’m retiring next year, what should I do to plan for retirement income?
Okay, so Sheila, I’m glad to hear you’re from Dripping Springs, we just recruited a financial advisor who lives in Dripping Springs. So that’s really kind of neat. So, Sheila, what we need to take a look at is number one, what’s your ages? How many years do we have to unwind? This 401k that you have been so diligently saving and planning for? When I say unwind it, what I mean is to convert it, we have to structure, and my next question would be are you married? Or are you single? Now the reason I’m asking that different tax brackets, different planning for folks who are widows, single folks as opposed to being married filing joint. So, their tax issue is even more staggering, or potentially staggering. With respect to being what I consider overtaxed and retirement, I think have been very clear throughout the years, I think that all of us who have paid taxes in for 40-50 years should have a tax holiday for the rest of our retirement, I actually would like to see Congress pass a bill that once you hit 75, you no longer have to pay taxes. But I guess we’ll be waiting a long time for that one. But the fact of the matter is, though, so we have to plan, and we have to plan for taxes. So, what I would do is I would give us a call, let’s see exactly where your situation lies, call our 800 number or snap that QR code and come on in and let’s sit down. Chances are if you have other income, and you have other liquid assets that you can take while we do Roth conversions, until because Roth conversion process can go on for years, as long as the government doesn’t change the law for Roth conversions, which they’re talking about. What I’m saying is before, the best time to do Roth conversions is before you have to take that first required minimum distribution, okay, it’s now at 73. But they’re talking about passing this bill and they’re going to kind of try to slam it through Congress from what I understand to delay RMDs to 74 over the next five years and even 75 By the time we reach 2033 Okay, so this is an excellent opportunity if they do not change Roth conversion rules, in other words still allow us to unwind these accounts to start the program. Now, it’s never too late to start saving for a tax-free retirement while you’re working contribute to the Roth 401 K, even consider doing Roth conversions. After you stop working, consider Roth conversions up until and even including the time that you have to take RMD. So, if you’re 65, we have eight years to unwind this thing, okay. And you’ll be shocked when you look at doing a little bit of planning spending an hour or two in our office, understanding all of the pros and cons of Roth conversions. And whether a Roth conversion plan is appropriate for your retirement income plan. It’s extremely important make the call now, don’t delay.
Thank you so much, Philip. Actually, this is actually Bob from Austin. He’s calling and he wants to ask you a question. He says, Philip, I have been with the same advisor now for over 20 years, would you recommend I get a second opinion?
Congratulations. That’s pretty good. Got Bob. Congratulations. So, he sounds like an excellent advisor. If you haven’t thought to get a second opinion in 20 years, obviously, he’s either a relative who you love, a very, very good friend, possibly a golf buddy or something of that nature. Or maybe you been working so hard, you haven’t even thought of it, a number of different possibilities exists, they’re just like a medical condition. If you’re diagnosed with any medical condition, always seek a second opinion. You also want to seek a second opinion from a licensed fiduciary. We don’t say it enough, just because an individual calls themselves a fiduciary doesn’t mean they’re actually a licensed fiduciary. Many broker dealers do both. They sell commission products and their fiduciary depending on what they’re offering, they hold multiple licenses. And that can be confusing for folks. So what I would recommend is if you can, especially in a situation like this, it’s unassuming, you can simply call our 888 number we offer the Morningstar report and Executive Summary by an analyst, a certified Investment Analyst, this is the best way to get a second opinion, not by just another salesperson or someone who wants to convert your portfolio and manage it on their own. I’m not saying that that’s a bad choice. What I’m saying is, it’s always good to get a second opinion from an individual who’s objective and has no vested interest in your income, so to speak.
Sure, and I’m thinking also as well filled with Bob has been with the same advisor for 20 years, chances are, that’s someone who specializes in the accumulation phase of life. It’s important to work with someone who specializes in distribution. Would you agree with that?
If you’re I would agree with that. 100%. And especially if your advisor has not talked with you about social security strategy planning, or if you do not have a written retirement income plan that’s tax efficient, or they haven’t really talked about a green money or two are taking guaranteed income and setting up your mailbox money first. Absolutely get a second opinion. We’ve seen too many retirement plans devastated because of lack opinion, lack of a second opinion and or changes in the tax code. I mean, it happens all the time. We really have to stay current. Look at it this way, folks, when you retire, your primary job now is to focus on your retirement income. Absolutely. That’s what’s your primary focus in how much you gotta get taxed on that, on that retirement income, what planning techniques you can use to reduce taxes and reduce market volatility without inhibiting the growth of your portfolio. That’s your new job, folks.
I love that. Well, Phil, I know you have a very special offer to present to our viewers at home. Let’s talk about what that is before we reopen the phone line.
Bob and Dr. Dave, call in. Here’s what I’d like you to do, and all of our viewing audience call in and listening audience if you’re on the radio listening to us call and ask for a complimentary Morningstar review and executive summary and analysis of what changes we would rake recommend based on your risk tolerance. Also ask if we can structure a comprehensive tax efficient retirement income plan. It will be our pleasure to do it for you. There’s no obligation to work with us. However, we would love to an opportunity to work with you. So don’t be hesitant. Don’t be shy. Call 888-818-6557 or snap the QR code and come on in and meet our family, our work family. I’m sure you’re going to love them and I’m Sure we’re gonna love you as well.
Phil, thank you so much to our viewers at home, that number to call is on your screen and that number is 888-818-6557. We know that you have a lot of questions for Philip about how to plan your perfect retirement. He has the answers for you. If you have your smartphone, go ahead, grab that. Click on the QR code at the bottom corner of your screen. We’re going to take a very short commercial break. I have more viewer questions when I return with Phillip.
Hello, folks, this is Phil Capriotti, senior president and CEO of de nada wealth management and senior tax and insurance advisors. At our company, we’re passionate about making sure our clients live stress free in retirement. When meeting with new clients. Their biggest fear is whether they’ll have enough resources to live in retirement without stress. When you’re into retirement redzone, which is approximately five years or less to retirement, it’s essential that you have a written plan. Know exactly how that plan will work and make adjustments year to year along the way. Many consumers place loyalty in their current advisors over their retirement success. Remember, always work with a licensed fiduciary always get a second opinion for your complimentary review. Call us today. And we look forward to visiting with you at our office.
Welcome back to retire smart Austin. My name is Cynthia De Fazio I’m joined today by Philip and Otto Capriotti, senior of Empower Wealth LLC felt a great show we’re having today. And obviously we have to mention it is our 99th episode.
So exciting. Sweet Lord God bless us. I mean, honest to goodness, so 99 show so we’re going to have a special 100 show next week is going to be our 100th Show. We’re going to have some guest stars on we may even have a celebration birthday. Cake, fireworks? I don’t know, we’ll figure something out. It’s gonna be great. Yeah, so never in my wildest dreams would I would have considered being on Radio TV, especially not doing 100 shows. So, this is 99. Let’s savor. And let’s have some fun. It’s been a lot of fun. The last we’re getting ready to complete our third year, believe it or not. Time just flies when you’re having fun. We’ve helped a lot of people in that time. We’ve done literally hundreds of Morningstar reports, hundreds of so we’ve done hundreds of Social Security retirement plans. We’ve done literally hundreds of Roth conversions, folks that never even understood what a Roth conversion was coming into the office and now after their first second third conversion. They get it they understand it, you know, it’s their new passion. I want to get in and see how much I can convert at the lowest tax rate this year. And it’s nice that we have that department that complements all of the other services that we excuse me, we offer so yeah, here’s the here’s the completing our 99th show.
Fantastic. Well, let’s keep going on that same vein because we have Mary Beth from Bernat. Okay, and she’s calling in, she said, Philip, I actually have a handful of annuities. And I’m not sure how these are going to work into my retirement plan. I have to be honest with you, they have not grown very much.
Oh, wow, that’s a very, very good question, Marybeth. So, and I’ll put this as gently as possible. I like annuities, but I don’t Okay, it depends on the type of annuity. Normally, when we offer a client and annuity, it’s fit into or it’s coordinated with your retirement income plan. If you’re not sure how these annuities fit, that tells me one of two things. So, it tells me several things. Number one, the salesperson or financial advisor that sold them to you did not do annual reviews on your annuities. So, for any of you folks out there, if you have an annuity whether it’s a variable annuity, a fixed annuity, an indexed annuity irrelevant. If you are not meeting with your advisor each and every year, to determine what interest crediting strategies are available to you how to maximize the return safely and knows annuities. That’s a red flag, call our office. We’re specialists when it comes on doing these annual reviews. We actually do annual reviews on our own annuities, and other agents’ annuities. Believe it or not, we’ll make a servicing rep to do the annual review. Now, it’s important when you buy these annuities, many folks have sold these annuities under the premise that they would grow a guaranteed return. Right now, we see a lot of this we see more than I’d like to see. Some of these annuities have income riders and Marybeth yours might be one I don’t know. You’ll have to come in and let us do a comparative analysis. So, it’s a comparison. Okay, so it compares what are the benefits and features in the annuity? What is it designed to do? Okay, that’s number one. So, we want to take a look do a comparison analysis on this annuity, because you may have one of these income annuities where you thought you were going to get a guaranteed 5% return a guaranteed six 7% return a percent return. We see this a lot. When you’re not getting a guaranteed return, you’re getting a guaranteed income value roll up confusing terms. Absolutely. That all right. So, an income value roll up is just what the income value rolls up each year, whether it’s simple interest or compound interest. So, when you start to take income, they’ll take a income withdrawal percentage multiplied times that roll up, that’s what your income is. Excuse me, with that being said that these annuities that is one of the reasons you need to review them each and every week. Pardon me. So, what I would recommend is call the office not just for you, Marybeth, but for any of you who are out there that have annuities, let us do a complimentary comparative comparison analysis. We want to compare them. We want to see how they fit into your retirement plan. Are they necessary? Are they not necessary? What was the purpose? So, it’s a very wise because some of these annuities will we sit in our office, and I see an annuity makes 2% a year and the income account that this has the roll up is charging them 1% A year? Wow. So, the clients making 1% a year on their money? Yes, it’s safe. Yes, it’s insured. Yes, it’s guaranteed. But it’s not keeping pace with inflation and it has no coordination with their income plan. Oh, wow. So, if you have an annuity call 888-818-6557. It doesn’t matter if it’s a variable annuity, a fixed annuity, a life annuity, a fixed indexed annuity. They’re very, they’re all different in their characteristics. But we have an entire department that analyzes these for you to see if there’s something that should be in your retirement plan.
And it’s all about constructing that well designed holistic, written retirement plan Phillip, I can’t believe we’re almost to the end of another great episode this week. Thank you so much for sharing 99 episodes with Austin.
Thank you. I really appreciate you sharing with us as well, Cynthia.
Thank you, Philip. To our viewers at home the number to call is on your screen that number is 888-818-6557 We know you have a lot of questions for Phil about how to plan your perfect retirement. He has the answers for you. Don’t miss the opportunity to call in today. Grab your smartphone click on the QR code. It’ll take you right to his landing page. Be safe be happy be blessed. We’ll see you back for our 100th episode of retire smart Austin. Take care now.
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