NEW EPISODES! This past Saturday we premiered one of our new episodes of the Money Puzzle TV Show. Chris talks this week about Income Strategy. The big issue with income strategies is there is no right answer, everybody is unique. There is just no way that you can take what works well for one client and turn it into something that works perfectly with your life. Because goals are different, your dreams are different. You’re different people.
Watch the full episode or to catch up on all our podcasts just click the link below! If you’d like to speak with one of our advisors or need more information regarding any of the topics discussed on our show, please give us a call!
Speaker 1 [00:00:20] Welcome to the Money Puzzle and thank you so much for joining us again this week. I’m Rebecca Powers. Here with one of the main partners of family wealth planning partners, Chris Vaughan. So great to see you, Chris.
Speaker 2 [00:00:29] Lily Thanks, Rebecca.
Speaker 1 [00:00:30] Yeah. You know, the last few weeks I was here with Brian and I love that in your partnership, the four of you very, you know, specialized, long serving, but you really specialize in different things.
Speaker 2 [00:00:42] Absolutely.
Speaker 1 [00:00:43] Let’s talk about your specialty compared to what Brian and I talked about last week.
Speaker 2 [00:00:47] My specialty is the income planning and the strategy on how you go about paying yourself when you become the employer or during your retirement years.
Speaker 1 [00:00:56] So when you’re working, that’s your accumulation stage?
Speaker 2 [00:00:59] That’s correct. Yeah. You’re working years. There’s three phases. Really. The the working years from the time you get your first job when you get out of school until you actually retire, that’s the accumulation phase. And it’s the easy part. That’s when you’re building up your wealth, right? Yeah. The second phase we call the income phase. That’s where you are now providing the income instead of the employer. And then the third phase is the distribution phase. If if we’ve all done our jobs correctly, if you’ve done what you’re supposed to do, doesn’t really matter how long you live, there’s going to be something left over. And that’s that distribution phase. We’ve got to do something with that money. Where do you want it to go? That’s what Brian was talking about on that previous show.
Speaker 1 [00:01:37] Right. So that’s really your specialty. What are the different avenues and the different ways the harvesting of the income and the digging that you really specialize in? And what are some of the ways?
Speaker 2 [00:01:46] Well, the big issues with the income strategies is there is no right answer. Everybody is unique. There’s there’s just no way that you can take what works well for somebody else and turn it into something that works perfectly for you. Because goals are different, your dreams are different. You’re different people.
Speaker 1 [00:02:03] Right? So don’t get advice from your neighbor or someone at work like good this. That is the worst thing you could do.
Speaker 2 [00:02:08] That’s the one thing you know won’t work well for you because it’s not you.
Speaker 1 [00:02:12] Right. Right. And that’s what you do. And that’s how your group is so different than the big box who really, really, truly do get to know your clients.
Speaker 2 [00:02:20] That’s correct.
Speaker 1 [00:02:21] In every way. So talk about the holistic approach when someone walks in. Do you all for sit in the room to the meet one of you and then you just call one in if you need to know?
Speaker 2 [00:02:31] We usually.
Speaker 1 [00:02:31] Just like we.
Speaker 2 [00:02:32] Like to have at least two of us in the room at all times because that second person might hear something that the first one did. You know, I’m focused in on what you were saying with this and and Brian or Eric or Erin might be sitting there and they’re going, Yeah, but there was this other part that they talked about and that was clearly very important. So when we’re actually building the plan out, it gives us the ability, instead of just having that one set of ears to ears or two sets of ears, I should say, you just pick up so many things that you can’t buy yourself.
Speaker 1 [00:03:00] That is wonderful. So when you’re doing the income planning, do you find that people are surprised in a good way? Because Brian was telling me a lot of people are better off than you think. So don’t be scared at home, I guess is my point, right? To face this could be better, do you think?
Speaker 2 [00:03:16] You know, the great thing about it is and this is the big question that people ask is do I have enough money to retire? Well, okay. So that’s where you develop that income strategy. How are we going to go about having money paid out to you for a period of time that can’t be defined? Okay, it’s really easy. If you could tell me the exact month and year of your debt, I can figure this out. It’s mathematical at that point, but, you know, we don’t know that. So that’s where the real artistry comes into it and that’s where you have to get into all the goals. And what do you want your life to look like? And that’s where you can start putting those little puzzle pieces together.
Speaker 1 [00:03:54] Okay. And so the best advice is to kind of sit at home tonight and contemplate, what do you want? What are your dreams? Do you want to leave money to someone? Do you want 15,000 a month? What is it?
Speaker 2 [00:04:06] That’s where we start. Okay, so cash flow is going to be your big part. Do you want $15,000 a month? What do you want to pay yourself? And there’s a misconception that says, Oh, well, when I retire, I’ll I’ll only need 70% or 80%. That is not what clients tell us when they come in and say, okay.
Speaker 1 [00:04:20] They want the same standard of.
Speaker 2 [00:04:22] Living to make the same amount or sometimes more because, well, they want to go on vacations more and they’ve got those bucket list things that they wanted to knock out.
Speaker 1 [00:04:29] Okay, well.
Speaker 2 [00:04:30] Fun costs money, so you frequently end up having to pay yourself more in retirement. But going back to what you’d asked a minute ago.
Speaker 1 [00:04:37] Yeah.
Speaker 2 [00:04:37] When you go through and you develop that income strategy, it gives you such a great peace of mind because you say, okay, number one, I know where my plan is lacking. I know what I’m going to have to do in order to make this goal happen. I’m going to have to work for an extra year. I’m going to have to save this. I’m going to have to modify that part of the plan. That’s a that’s a really reassuring thing. Yeah. I’ve got a couple of clients that we’ve been working with for the last few months, Tim and Robin. And when they came in, they thought they were in great shape. Yeah, but the advisor that they’d been working with for almost 30 years now came out and you know, they said he was just not answering the questions when they were saying, how are we going to deal with this actual return? Yeah. So they brought it in and we had a look at it. And really what they had is a whole laundry list of products.
Speaker 1 [00:05:25] Yeah, but.
Speaker 2 [00:05:25] There was no design to it. So how are you going to use this one? They got a couple of great annuities that they used, but there was no design for how you’re going to go about putting those into that income strategy and actually paying yourself what you’re looking for. Right? So in developing the income strategy, we actually put it together and said, yes, you can retire, but there are some inherent risks that you’re taking on if you do that. So now they know what they’re going to have to do. And we did modify, modify a few things. She’s going to work a couple of years longer than what she planned on full time instead of part time, which she’s okay with.
Speaker 1 [00:06:00] Still, though, that’s frustrating. And when you say you had to sell a bunch of products, I am immediately thinking big box because employees hands are tied, right? They have to self correct. Those products like the Ford plant, you’re not going to say go concentrate, buy a Chrysler, you’re going to say buy a Ford. And the beauty of what you can do is you can shop around and look at all the products for your people is our fiduciary. We are.
Speaker 2 [00:06:21] Fiduciary. We have no loyalty to any company. Right? The loyalty is only to the client and what the client’s goals are. That’s that’s our motivation. So that’s where you can really put things together correctly because we don’t have that big box mentality.
Speaker 1 [00:06:36] Right. And the fact that you have four partners who are kind of the pillars of the company, then all your different staff and you have the specialties. What are a few more? We’re going to take a break in a minute, but what are a few more income streams or places you go to look for income?
Speaker 2 [00:06:48] Well, the first thing that you have to look at, you have to differentiate based upon what the client’s going to need. There’s the permanent predictable side of the income and there’s the nonpermanent, non predictable, permanent and predictable. It’s great. It provides this that warm blanket of knowing I’m not going to run out of this. That’s where your social securities and your pensions and some types of annuities can be used. I’m not worried about running out of this money. That’s great.
Speaker 1 [00:07:13] Right?
Speaker 2 [00:07:13] That is the nonpermanent, non predictable side. That’s where your savings comes in. That’s your four one K’s, your 403 BS, your IRAs, that, you know, that that Roth IRA that you started a few years ago, you don’t even remember what you did. That’s where that can be used.
Speaker 1 [00:07:27] Okay?
Speaker 2 [00:07:28] You can use all that money up. So that’s where where do you use this? What’s the correct sequencing to put that together? And that’s how you actually develop that. Those are some of the places that it comes from.
Speaker 1 [00:07:40] So it really is ballet. You say it’s a design. It really is definitely an art, an artwork, I guess. And yes.
Speaker 2 [00:07:46] Absolutely it is. It is an art form. And and it’s one of those things that. Can you do it on your own? Yeah, maybe. But you’re probably not going to do it as efficiently. And there’s always that concern, am I doing this right? Is this the best way to do it? Is my money going to last? And this is one of those things, if you get this one wrong, yeah, there’s no recourse.
Speaker 1 [00:08:07] And I think you’re being modest to say that people could probably do it. Okay. Because let’s be honest, we were not taught this in school.
Speaker 2 [00:08:12] No, we were not.
Speaker 1 [00:08:13] I mean, you’re not a heart surgeon, but there’s a guy out there who is a heart surgeon. But as we know, a lot of heart surgeons don’t even know what to do with their money. I mean, this is a real thing. We’ve never been educated about it. Tell our friends at home what they’re going to get when they call this number, Chris, and come in to meet you and your team.
Speaker 2 [00:08:26] If you give us a call at 8449005210, what we’re going to do is we’re going to get together and we’re going to have a look at the income strategy that you’ve got. Now, we’ll break down all the different sources that you have available to you, what you are planning on doing with them, what can be modified. And then we can look at that and say, okay, the strategy that you currently have will work or it won’t work. Here’s the kind of modifications that you’re going to have to do to it. Here’s the things that you’re going to have to adjust in order to make things work. And then we’re going to start talking about taxes. And taxes is the one that will really cause an income plan to fail. And that’s the things that we’re going to go over with you when you come in to see us.
Speaker 1 [00:09:06] That’s awesome. It can also be a way to make your plan succeed because paying taxes might not be as bad as you think. We’ll talk about that right after this quick break. Stay with us.
Speaker 3 [00:09:16] How confident are you in your current financial plan? Do you know with certainty how the recent market volatility will affect your future hopes and dreams? How much are you paying in taxes and how much are you losing to unnecessary high fees? You didn’t work to save this money so that you could spend your time worried in retirement. Now is the time to take charge of your finances so you can feel confident about your future. Call in during the next 30 minutes of today’s show, only to set up an absolutely complimentary, no obligation, full blown financial review that will result in your own customized written plan. This is a $999 value that we’re giving away complimentary to the first ten people who respond. We’ll start with a full blown analysis of what you already have by writing a report to untangle how much you are currently paying in fees, how you’re allocated for risk, and what it’s costing to work with your current advisor. Next will identify your goals. Where do you see yourself in the next five years? Where do you want to go? And who do you hope to go there with? Is your current financial plan set up to get you there without mishap? Let’s design a roadmap to create a financial plan you can follow with confidence. Get the peace that so many people are missing from their retirement. Find out how having a written plan can make a difference to your retirement dreams. Call now to schedule your complimentary, no obligation, full blown financial review today.
Speaker 1 [00:10:51] All right. Thanks for staying with us. I’m Rebecca Powers here with Chris Wall, one of the main partners, of course, at Family Wealth Planning. We’re talking about your specialty. And I love that each of you has such a strong specialty and you help each other. It’s a beautiful thing. We’re talking about income planning, which is your strength. We mentioned taxes is our tax is something that are even a big part of the income plan.
Speaker 2 [00:11:11] It’s something that people don’t think about. Taxes are something that you put your receipts together and you take them to your accountant or the local company that sets up once a year and then you’re done. Right. But it is the most expensive thing that you’re going to have during not only your working years, but during your retirement years. People have a tendency to think, Oh, health care is the thing I’m really going to have to worry about. Well, that’s part of it. But taxes are by far the most expensive thing, so you can’t put together a good income plan without considering the tax implications.
Speaker 1 [00:11:43] And so is it better to pay taxes now is better because I’m hearing that the Trump tax law is going to change 2025 and some people are saying pay now instead of later. Think your partner Brian and I were talking about that last week.
Speaker 2 [00:11:56] That’s a big maybe. Obviously, everybody’s a little bit different. But yes, the current tax law is going to sunset if Congress doesn’t do anything, and that’s a pretty good possibility, then, yes, your taxes are going to go up. So some of the strategies that we look at are should we be going and doing some Roth conversions with some of your things? You know, we’ve talked about the tax bomb and that’s where you’ve got people that have saved up huge sums of money. I mean, we talk to clients all the time that all they’ve done is diligently put money into their 41k, but they’ve worked there for 25, 30, 35 years and you’ve got a million 1,000,002 in that account. All of it is subject to tax. So starting to move that money into a Roth and taking the taxes and spreading them out over a longer period of time. Yes, that’s a legitimate strategy. The way that we look at it is instead of focusing on paying a lower amount of taxes in a given year, let’s focus on paying the lowest amount of taxes that we can over a lifetime. So part of this is, yeah, you can pull some of that money out, pay a little bit more. Now, that might for many people mitigate some of that.
Speaker 1 [00:13:03] And it depends on your situation. Of course, you said Roth IRA and you said begin to move because you don’t move it all at once. Why?
Speaker 2 [00:13:10] Well, you can, but you’re going to have to report that as income this year. So let’s just say, for argument’s sake, that you’ve got a half a million dollars for a1k, okay. And you want to roll that over into an IRA and then put it into a Roth? Well, you certainly can, but you’re going to have to report a half a million dollars of income this year. If you do that, I cannot imagine a circumstance where that’s a good idea.
Speaker 1 [00:13:32] Right. Because it gets you in that much higher bracket.
Speaker 2 [00:13:34] Exactly. And you’re going to be paying at the highest tax bracket on the bulk of that money. So not a wise idea. You need to be very strategic with the way you go about moving that money into those Roth accounts. If you do it that way.
Speaker 1 [00:13:46] I always ask of your other partners when I’m lucky enough to do the show with you, and I really enjoy it. What are some of those heartwarming make you tear up moments when you have changed someone’s life.
Speaker 2 [00:13:56] Or the best ones? The best ones are when you have clients come in and he’s the workaholic and that’s the way it usually works out. And she says, I just want him to retire. I’m ready. Yeah. And you run through and you develop the income plan out for them and you say, okay, here were the goals that you had. You wanted to do these things right. You wanted to have this amount of money and you wanted to go on that vacation. Okay. If you if those are your goals, if you do all that, you could call your boss today and quit now. You could walk out the door today and you are golden. That is a fun conversation to have. We keep tissues in the conference because that does happen sometimes.
Speaker 1 [00:14:35] That’s amazing.
Speaker 2 [00:14:36] Fun. That’s a fun meeting to have and it happens more often than you might think, even with people who think that they haven’t saved enough. Yeah, if you set up that income strategy correctly, there are ways that you can stretch your money out better.
Speaker 1 [00:14:50] Right. And just just by looking at it because you are the professional, obviously, but I can speak as a layperson that it is very intimidating. I didn’t know where my statements were. I didn’t know I was with a big box. And it felt amazing once I kind of just took the bite out of the apple because then you feel better after. Let’s talk about the relief that people, no matter what, you have to tell them. There’s always a sense of relief when your stuff is organized.
Speaker 2 [00:15:14] Absolutely. You know, a lot of people will put off going. Through this process. And I’ve talked to many, many people. People call in the show and say, well, I’m going to get my things together. And when I get myself put together and I’m I’m doing everything the right way, then I want to come in and see it. Well, that’s kind of the point is we’re going to help you put all those things together. Then when we develop that income strategy, it doesn’t really matter what the answer is. Yes, you can retire today, grab the tissues because it’s going to be a good meeting. Right? Or you know what? We’re going to have to make some changes. You’re going to have to do this even though it may not be the answer that you wanted. Now you know what you can do.
Speaker 1 [00:15:55] At least you know exactly the question mark is gone and.
Speaker 2 [00:15:58] Exactly. And that’s where the peace of mind comes from.
Speaker 1 [00:16:00] Right. And if someone, again, even if you love your financial planner, if they’re not having these conversations with you, if they’re not calling you once a you’re talking about inflation and all these different things that are going to affect you. You definitely need a second opinion and sometimes someone is just fine and you’ll tell them that as well.
Speaker 2 [00:16:15] Absolutely. If if you’re doing great, if you’re on track, if your goals are going to happen, that’s what we’re going to tell you. We’re going to be honest with you, because that’s the way we want to do business. I don’t want to tell you something just to get you to come do business with us, because ultimately I have to go home at night and I’ve got to look at that guy in the mirror.
Speaker 1 [00:16:34] Exactly. You’re the same. And Kroger’s, you’re going to see him down the street and they have tags and you are all local. So we only have about ten slots that we reserved this week for our show. We want to make sure that when you call in, we can have your reservation quickly for you. So get your calendar ready and call this number. And who can they meet when they first walk in? Chris Let’s give them an idea of.
Speaker 2 [00:16:53] When you first walk in the door, you’re going to you’re going to meet Whitney. She’s going to be at the front door and she’s going to introduce you and get you a cup of coffee, a cup of tea, bottle of water, soft drink, whatever it is, make you comfortable. Then you’re going to come in and you’re going to talk to at least two of the four of us. And that’s where we’re going to go through all the different things that you’ve got going on, where your concerns are, what you’ve been doing. And that’s where we’ll start putting things together and do an analysis of, Okay, here’s where you stand now. You get that piece of mind from knowing, okay, now here’s, here’s what I’m going to have to do.
Speaker 1 [00:17:25] And this is complimentary for absolutely the first ten people. But we get to schedule today.
Speaker 2 [00:17:30] Absolutely. It is.
Speaker 1 [00:17:31] Fantastic. All right. We’re going to take a very quick break. Talk more about income and some streams of income you may not know you have. We’ll be right back.
Speaker 4 [00:17:40] As a good saver, you’ve been putting away money during your working years. Studies find that the biggest fear of retirees is running out of money. Market volatility isn’t just the downward movement of stock prices. It’s the size and frequency of change. The more dramatic the ups and downs, the higher the volatility. This can put savers who are newly retired or a few years away from being retired at greater risk. Today’s generation of retirees is not receiving traditional pensions, as our parents or grandparents did. Instead, we have retirement accounts such as 401 K’s or four or three B’s. These accounts typically expose your money to market risk. The last thing you want right before retirement is to lose a portion of the money you need for income. But how do you turn these accounts into a retirement income? Is it safe to keep all your retirement money sitting in the stock market? The last thing you want is to lose a portion of the money you need for income due to market loss. By working with a financial professional. You can learn how to turn a portion of your savings into an income stream for life and income for the life of your spouse. If you’re married, we all have moments in our lives when we wish we had taken action sooner. Don’t let procrastination rain on your retirement parade. Act now before it’s too late. Please call our office to set up your no cost, no obligation retirement income review today.
Speaker 1 [00:19:06] All right. Thanks for staying with us. We were talking about income planning. We only have 8 minutes left in the show, Chris, so take it away. What what I did you want to leave our viewers with today.
Speaker 2 [00:19:14] I think the big takeaway that you want to have on your on your income strategy is, number one, you have to have one. Yeah, there’s too many people that come in and say, okay, fine, I’ve got all of my investments set up and they’re set up and I bought all these dividend paying companies. That’s a legitimate strategy, but there’s a lot of pitfalls in it. Okay, put together a good income strategy that’s customized to you and understand that there are ways that you can deal with certain things. For example, we were talking about it during the break. People most people in Louisville are charitable. Yeah, we do like to help people, right? The way that we’re charitable is wrong, especially once you get over age 72. Okay. So for example, I think most people know if you’ve got money in your 41k or 43b or IRA or something like that, you are subject to the infamous R&D. And what people will do is they said, okay, well, I have to take this money out of my account every year. Yes, that’s true. So you take it out, you reported as income, but that increases the amount of taxes that you have to pay. Sure. Well, what? And then I’ve talked to people, they’ll say, well, I was going to remodel my kitchen, so I guess I’ll go ahead and do that since I have to take the money out anyway. But if you’re charitable, why not take a portion of that money and give that money away and then spend your money from other sources? That’s where you have to put that income strategy together. That’s going to call a qualified charitable distribution, and it’s something people just don’t know about.
Speaker 1 [00:20:42] And that’s wonderful. And it’s allowed.
Speaker 2 [00:20:44] Absolutely, it’s encouraged.
Speaker 1 [00:20:46] So instead of Uncle Sam getting that 10,000, let’s say it would go straight to your church. My niece is a nun in Serbia. I mean, I could send her to me and I would.
Speaker 2 [00:20:53] Do any 501c3 You take the money now you do have to put it into an IRA. There’s certain rules on the way you go about doing it. Okay? And the big thing is you can’t possess it. It has to go directly from that IRA custodian, whoever it is that you use, it goes directly from them to that charity. So I set these up all the time and you have that money go out to your church or to that charity that you’re supporter or whatever the case might be. The charity now benefits from that money. You either don’t have to pay out as much in order to give them the $5,000 or $10,000, whatever you want it. Now, you have more money still in the accounts to use on the things that you want to do because we’ve disinherited the IRS and they want you to do that.
Speaker 1 [00:21:35] Okay. So just so get this clear, let’s just pretend I owe the IRS $20,000, okay? I could literally take all 20 and give it to you.
Speaker 2 [00:21:42] Oh, 20. Absolutely. If you are over 72 years old and that’s your R&D for the year.
Speaker 1 [00:21:49] Over 72, because all RMDs required minimum required.
Speaker 2 [00:21:52] Minimum distributions. So that’s the strategy that we’re talking about.
Speaker 1 [00:21:55] Okay.
Speaker 2 [00:21:56] If you take that money and you can take all of it if you want to and give it away, you don’t have to report it as income at all.
Speaker 1 [00:22:02] That’s wonderful.
Speaker 2 [00:22:03] So it’s a great way of reducing your taxes. It’s it’s not uncommon as we’re developing a good income strategy to reduce your income. Right. But in doing so, because of the way we’re reducing it, we’re reducing your tax burden and your take home money is actually greater.
Speaker 1 [00:22:18] Well, and you feel good when you go to the local Humane Society, you can see your family’s name on that dog cage. I mean, really, it is good that we could do right here in Louisville. It’s really important. And you’re the first person to tell me that.
Speaker 2 [00:22:28] Absolutely. I’m a big believer in if you are charitable, you will be a happier.
Speaker 1 [00:22:34] Person, unbelievably. But you need.
Speaker 2 [00:22:36] To be charitable the right way, because I don’t want to be charitable to the IRS.
Speaker 1 [00:22:40] That’s right.
Speaker 2 [00:22:41] They’re going to spend it on something I don’t like. I’m positive of that. So I want you to be the same way. I want you to give your money to people that are going to do something that you believe in.
Speaker 1 [00:22:51] Do good, that you if you.
Speaker 2 [00:22:52] Can do that in such a way that you know you’re going to make your money stretch over a longer period of time, that’s how you’re putting together a good strategy.
Speaker 1 [00:23:01] Okay, so you are the real professional in the income planning. Is there any other resource we talked about? You can find it and pensions, of course, if you’re lucky enough to have that Social Security, what are some other income sources that maybe people aren’t thinking about?
Speaker 2 [00:23:16] The big one that everybody gets now is the 401k or 403b. That’s where the bulk of companies have gotten you to start saving your money. First of all, if you’re still working and you have one of these and you are not contributing at least what the match rate is, somebody is trying to give you free money. So you really need to take.
Speaker 1 [00:23:35] Advantage of that.
Speaker 2 [00:23:36] Absolutely. It’s it’s unbelievable. Unbelievable to me the number of people that come in and you ask them what your match rate. I think it’s 5% of that. You should know that number. And by the way, there’s two parts to that. Do they match 100% up to five or is it 50% up to five? You need to know both of those numbers. That is the big one right now. And I can tell you right now, we talk to people all the time who have saved up over $1,000,000 worth of investments in a 401. K. And it’s not because they were really, really good with the investments. It’s because they were really good at saving. Just plug in that money and month in and month out, paycheck in, paycheck out. When you get up to those nice large numbers, it’s amazing the things that you can do during your retirement years. If you are disciplined about it, you.
Speaker 1 [00:24:25] Can really make it work for.
Speaker 2 [00:24:26] You slowly.
Speaker 1 [00:24:26] You can squeeze every drop of that lemon juice out of that lemon. It’s such a game changer. Okay. Only 3 minutes left. Chris, I love your stories. Give me another story where people had income stream that they weren’t even aware of.
Speaker 2 [00:24:41] Okay. So here’s another one kind of on that note, I was working with Mark and Debbie and they wanted to they wanted to leave some money behind when they passed away. So we were working through the estate part of their plan at that point in time. And the estate attorney came back and said in the conversation that they had had they said they wanted to leave a couple hundred thousand dollars behind to charity.
Speaker 1 [00:25:04] Okay.
Speaker 2 [00:25:05] Interesting. That’s a first of all, it’s noble. I love that. So the CPA and I both looked at them and said or looked at the estate attorney and said, is it important that that be left behind when they die or can it be done while they’re alive? Oh, well, actually, it wasn’t important one way or the other. So we called them, we said, okay, so here’s what we’re working on for you. Is it important? They said, Actually, we would love to see that money benefit some people. So what we did was this is another one of those charitable things. Yeah, we used a donor advised fund. They took $100,000 out of an IRA. Okay. Right. That’s money that they’re going to have to be paying taxes on down the road. Took that out reported as income this year, but then they immediately wrote the entire amount off as a tax deduction this year.
Speaker 1 [00:25:52] Wow.
Speaker 2 [00:25:53] Now that money stays invested and for the rest of their lives, they can give that money away.
Speaker 1 [00:25:57] Oh, that’s.
Speaker 2 [00:25:58] Beautiful. And when they pass away, whatever’s left that can then be given away to whatever charity they designated. So that is a way that, number one, we were charitable. We got to do something great. That was something that was very important to them because they’re very involved in a couple of different charities. But we actually increase the amount of money that they have to work with because we reduced the tax burden that they’re going to have to deal with. That’s where you get into really, really good income strategies.
Speaker 1 [00:26:23] That’s really amazing. All right. Believe it or not, we’re already almost out of time. Chris, fall in here. Always so interesting. We call it the money puzzle because that is exactly what it is. You are a snowflake. Every single one of us is different, like a puzzle piece. So call this number, go in and meet this amazing team, get a second opinion and tell them a little bit about your staff before we go today, Chris, and what will they expect?
Speaker 2 [00:26:43] First of all, there’s there’s four partners in the office. We’ve got Whitney up front. And make no mistake, she is the one who’s telling us all what.
Speaker 1 [00:26:50] They know.
Speaker 2 [00:26:50] How she keeps us all organized. We’re friendly, we’re open. When you come in, it’s going to be you know, people get a little overwhelmed. It is relaxing. You’re going to you’re going to leave better off than you were when you got there. That’s what it’s like when you’re working with our staff.
Speaker 1 [00:27:07] And it’s a complimentary retirement income plan. It’s no obligation. It’s it’s definitely not a sales pitch because if anything, you’re trying to see if you’re right fit for them. Just absolutely trying to see, you know, vice versa.
Speaker 2 [00:27:17] We want that to be a good this is a long term relationship. So we want it to be a good, healthy relationship. If it’s not good for you, then it’s not going to be a good fit for us either. And that’s what we want to do. We want to make sure this is going to be a great fit for everybody.
Speaker 1 [00:27:32] Absolutely. Thank you so much, Chris. Absolutely. Thank you. I always learn something from you. All right. 8449005210. Give Whitney a call. We’ve have a few spots left, I believe, in our calendar. And we want to see you. Thanks so much. And we hope to see you again next week.