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We are going to get started momentarily. So if you are already here, appreciate you joining us on today’s webinar, understanding retirement income. We’ll get things kicked off in just a moment here. Well, welcome in. Uh, it is Friday, April 17th, the third Friday of the month, and it’s hard to believe that already that we are flying through this year. Uh, it is 1:00, so it’s time for the webinar. I appreciate everybody joining signing up and so glad that you’re here for understanding retirement
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income. I am Peter Rashan. I am founder of Rashan Planning and I see several names that I am familiar with who have registered. So glad that you’re here for uh this this informative lesson. I hope it is informative. I hope everybody can take away something from today that is useful and applicable and valuable to you. And then if you have not uh experienced us before, same thing. Still hope that this information is useful to you and and something that you can uh apply to your situation or your future
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situation as we are talking of course about planning. So once again, I am Peter Rashan. I’m founder of Rashan Planning. I am a local South Wake County Fugquaverina uh area financial investment retirement planner and series 65 is the official designation. It’s an investment advisor representative meaning that I represent my clients best interest whenever managing investments or making recommendations. And today we are going to try to provide some education on understanding retirement income. So, uh,
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don’t want to take too much of your time, but do want to provide some value for being here today. So, we’ll we’ll go ahead and and and get right into it. And I am going to try some new things with technology here. So, technology being technology. If it does not go exactly right, forgive me. I might have to poke around a few times to to get things to work. But, uh, stick with me. I I do hope that this information again is is valuable to you and comes across well here. So at Rashan Planning, we put
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together what we call the optimized retirement plan. And that optimized retirement plan is something that we feel provides value in different areas, provides a a view in different aspects of planning that not everyone has. And we believe everybody should have a plan that addresses five critical areas of your financial life. And those are income, investments, taxes, health care, and legacy. So just from a highle view, this is what uh the the concept is is is building around this idea that all of
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these different factors are interconnected and codependent on each other. And that’s why you you can’t ignore any of them. Bringing them all together is what helps you optimize your results. Most people that we talk to that we deal with that that come into our office have done a good job in a couple of these areas. Number one, income. Most of the people we talk to have been uh pretty diligent about working, earning an income, putting in their sweat equity, their hard work, their labor, their skill, their
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intelligence into something and earning a paycheck and an income as a result of that. uh most of them have been lucky or hardworking or blessed enough to earn a pretty comfortable income and therefore they can take some of that income and spill it over into investments which ultimately is paying your future self so that one day you don’t have to trade your time for money and you can enjoy more of your time and and your financial freedom. And this step is vitally important. This is critical to our
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long-term financial success that we take some of our income and we do get it into investments. But for a lot of people, that’s kind of as far as the financial guidance has gone. And there is not a great understanding of retirement income. And and retirement income is when the direction of money changes, when it flips, when it reverses, and suddenly we don’t have a paycheck. We’re not out actively earning income and instead our investments that we have built up need to generate that income
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and that paycheck for us. And most people have not done this during their work and career. In fact, we do just about anything to try to avoid this. We would uh take on a second job. We would work extra hours. uh we would try by by any stretch any possibility not to draw from those investments that we are hoping to grow and build and purposing for our future financial security. But that day does come and the day after retirement we no longer have the paycheck but we still have the bills and expenses and so we have to start drawing
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from those investments. That changes a lot of things and we’re going to be talking about some of those on today’s webinar. Not only does that change direction of the money, but it changes the tax implications, how we set up our benefits and our health care and how much those costs. And ultimately all of that kind of filters into what is the legacy that we are going to leave behind and and when we reverse that flow, a lot changes there. And so we’re going to be addressing that on today’s webinar. But
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again, this is the core five pillars that we believe everyone should have a plan that addresses. Most people that we have encountered have have really done a good job in addressing two of those, but have never really looked at reversing the flow of money and how that is going to structure for those other three. That is what we call the optimized retirement plan. Today we’re going to be focusing on each one of those steps in general and from a very high level. But first, what happens when we reverse that flow? And here’s a
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statement that I I want you to remember and take with you after today’s presentation is that the direction of your money might matter more than the direction of the market. And we all even within the last couple weeks here have seen the market move pretty pretty pretty volatily in in in different directions. Uh the market is going to move. It’s up. It’s down. In fact, there’s two guarantees that you can have with the market. It’s going to move up. It’s going to move down. When and how much,
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what the velocity, what the magnitude is, we we don’t know. But the market’s going to be the market. the direction of your money might matter more than the direction of the market. And so here’s my example here. Uh and I I am going to use the realworld returns of the S&P 500. So these are the realworld annual returns of the S&P 500 for the first 20 years of this century. This is uh as of December 31st each year how much the market moved and those are the returns I am going to use for this example. So the
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real world returns of the S&P 500. There were some down years to start. There were some sideways years and there were some some some real good years. And I have actually picked this period of time in particular because it was a difficult time for the market. And so I’m going to take this and you can take this with a grain of salt when we’re talking about the period of time I have chosen for this example. It was a very difficult time. We had the dot bubble. We had the great recession, especially
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in, you know, the first 10 years of the century, which has been dubbed the lost decade. But I chose that specifically because that’s what planning is about. We plan for the worst and hope for the best. And this actually isn’t even a worstc case scenario. It was just a particularly difficult period of time. But if we can plan for something like this and then hope that the market does better, fantastic. We’re at least prepared if things don’t go well. But if we plan on the market always being
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advantageous and always going up and then it doesn’t, we are not as good as what we thought to be or expected to be. So again, for this example, I get it. using a difficult period of time in the market but using real time in the market and I don’t know if I expect the next 20 to 25 years to be as generous and advantageous in the market as the last 20 to 25 years have been quite frankly. So if we look at the direction of your money, which again the direction of your money mattering more than the direction
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of the market, we’re using the same market returns here for a couple different scenarios, different examples of directions of money. And in this first example, we are using contributions. So this is what you have been doing over your working career. And let’s say you started your savings in the year 2000. You didn’t have anything at that point in time. You were just starting your investment progress, but over the next 20 years, you were adding $25,000 per year. You were dollar cost averaging. You were making contribution.
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You are investing. You’re working. You’re paying your bills with your paycheck and you’re getting some money put away. Well, over this period of time of 20 years, you have invested $500,000. But by the end of this period, because of the returns and the the opportunity, the access to growth that the market offers, we’ve more than doubled those contributions. We’ve got $1.162 million by the end of that 20-year period. So, a a great amount of progress that I don’t think anybody would
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complain too much about. Now, you would think that if you started this same period with a $500,000 head start that you would finish well ahead of that number. However, if we have an idle account where we are just holding the balance using the same real world returns of the S&P starting with $500,000, the market went down 50% back up 100% down 50% back up 100%. That’s what was known as the lost decade. And then we really started climbing there in the last 7 to eight years. And when we look
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at our final result, we had $1.099 million. But wait, we started with $500,000 more with a head start of $500,000. When you compare the two, we did not with our green chart in the back where we were making contributions. We did not take these big significant losses when the market was down. And in fact, because we were adding money, we took advantage of those downturns compared to the person who started $500,000 ahead, we actually end this 20-year period with more money. And that that surprises a
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lot of folks, but that is the power of making contributions. That is one of the fundamental principles of successful investment, dollar cost averaging. But what happens when we turn the corner into retirement and instead of contributions, we’re now making distributions? Remember, the direction of your money might matter more than the direction of the market. If we started that period with $500,000 in our investment account and started drawing the same $25,000 out per year for living, for expenses,
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for income, we actually would have run out of money after just 17 years using the same real world returns of the S&P because we took this decline, but instead of recovering, we had to sell investments when the market was down. And this is known as sequence risk or reverse dollar cost averaging, but it’s really just the compounding effect of taking income and taking withdrawals at the same time the market is down. And we’re not talking about like temporary volatility of what we’ve seen recently,
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but more long-term declines. If you are forced to sell off investments during those period, you are locking in losses. you are removing those dollars and their ability to participate in ensuing recovery. And in this case with this example, real world returns of the S&P less than 10 years later, you have less than 25ths of your starting $500,000. And again, by 17 years later, you’re out of money. Now, I don’t know when in my retirement I’m going to be comfortable saying, “Well, I’ve still got half of
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what I’ve started with.” But it’s not going to be 10 years in. It’s not going to be 20 years in. I’m not sure if I’m ever going to be comfortable saying that. So this, ladies and gentlemen, is what we’re trying to avoid. This red chart in the front where the volatility of the market and downturns in the market impact our ability to take advantage of the market. And that’s what I mean when I say the direction of your money matters more than the direction of the market. is that we’ve got to be
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cognizant of this fact to recognize the inherent flaw of creating retirement income from a fluctuating source and the dangers that are involved there. Again, it’s been called sequence risk or reverse dollar cost averaging or even dollar cost ravaging, but it’s what we’re trying to avoid. So again, kind of your three examples here. Making contributions versus just holding a balance, not adding to it, not withdrawing from it, verse distributions using the same returns of the S&P 500.
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Three very different results based on the direction your money going. Well, retirement might be where less risk equals more. Because going back to that chart where we’re we’re taking distributions, we’re we’re creating income. What if instead of the growth opportunity and the volatility that comes with it of the stock market, what if instead of taking these wild returns, which by the way, this this period of time, the first 20 years of this century, the average rate of return over that period of time
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was about 6.2 2%. Um, not not the 10 or 12 that you hear about. This particular 20 years was right around 6%. What if instead of taking distributions from the market, what if we took a lower but more stable and predictable rate of return? Now, you think, well, if I get a lower rate of return, then I’m not going to have as good results. But remember that average returns are not what you can count on. Average returns are the results of extremes. So during this period of time, the average might have been around 6% but we had
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-10, -13, -23, – 38 years. That’s not meeting that average. What if instead of 6.2% average, we got an average rate of 4%. Well, after 20 years, we’ve still got more than three fifths of our starting value. Which chart would you rather have? The one that had the higher average rate of returns but ran out in 2017 or the one that still has more than $300,000 in it after 20 full years of taking retirement income. And in fact, I’ve got to extend this chart out another 20 years or another $500,000
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of income before just a lower stable 4% rate of return would eventually run us out of money. So, another $500,000 and another 20 years of retirement income that we could generate with lower rates of return. So that’s where I say in retirement when it comes to income less can actually potentially be more lower returns but more stable and predictable returns can lead to the longevity. Now I you know we all want growth potential but this was a pretty wild ride and I would rather have something a little bit
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more predictable. I wouldn’t love seeing the the decline either way but this is a sharp decline when I was hoping for returns. So again, just a premise to kind of set the stage for retirement income is understanding that the direction of your money matters more than the direction of the market. Well, now we’re creating income. What about taxes? Right? We’ve got our optimized retirement plan. We’ve talked about reversing the flow of money and what you need to be aware of there. What about
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the tax implications of the money that we’re pulling? You know, during our work and career, taxes are actually relatively simple. No one loves dealing with them anytime. But if we’ve got a a W2 job, that that source of income, you have the taxes automatically paid for you before it even goes into your checking or savings account where you’re you’re spending out of, right? You’re you’re paying your bills, you’re living life, but you’ve already pretty much paid the taxes ahead of time. In fact,
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when you file taxes, that’s just sort of evening up the bill at the end of the year. Um, if you’re 1099, of course, you you’re you’ve got a little bit more that you’ve got to deal with, maybe paying estimated quarterly taxes, but most people are here uh making W2 wages where taxes are taken care of. And of course, once the money gets into our checking or savings, we want to build up an an emergency account. And once that’s fully funded, we start saving and investing that money. And we can nowadays have the
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choice of doing that either before or after those taxes, getting dollars into that investment bucket. And and certainly during our working career, if we’ve got uh a spouse, any debt, any bills, any children, or anything like that, you always also want to have that life insurance in the background just in case your worst case scenario happens and your family can’t depend on your income any longer. But for the majority, we we are living off of what we make after taxes and then investing in that
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investment bucket. During retirement, that all changes. So now we don’t have the W2. We’d have our investments and IRA are going to be taxed 1099. We’ve got social security, pensions, capital gains, rentals, Roths, maybe we’ve got some of that. And and all of those have different tax implications. Social Security is your SSA 1099. Your pension is your 1099P, 1099R, your consolidated 1099. Your IAS or your 1099RS. Even the money that’s in your checking savings is a 1099 int. Your emergency
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account is going to have your 1099. All of these taxes are brand new in retirement. And it’s a lot of figuring things out. In fact, the first several years of retirement is a lot of figuring out. Not only from a what am I going to do with my time and my life standpoint, but you go from a full year of wage earning income to maybe a half and half year to a year where it’s really all on you and you’re generating all of these sources and the bills in life don’t stop. We’ve got to have the income, but
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each one of these sources is taxed a little bit differently and it’s not really explained to us during our working career how to piece all these things together and figure them all out. And so that’s part of what we do as we help people optimize their retirement plan is look at tax optimization. How can we work all of these sources to the optimal advantage to you and pay the minimum amount in taxes? be as efficient as possible. And and a lot of people don’t really understand our progressive
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tax system. They might think, well, if I’m married, just as the example here, I’m going to use the married filing jointly, and I’m making $200,000. Well, I’m paying 22% in tax because my income falls within this dash. I’m making $200,000 right in the middle of this. So, I’m paying 22% in tax. That’s not really the case. Not nearly at all. In fact, uh we’ve got our standard deduction. If they’re over 65, they’ve got an additional 3,300 for a married couple. And then uh they’ve got the uh
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new enhanced deduction for those over 65, the social security from the one big beautiful bill. Right? So how it actually works if a married couple filing jointly is making $200,000. Well, we’ve got about $45,000 in standard enhanced deductions. We don’t pay any tax on at all. about 24,800 falls into that 10% bracket. Another 76 into the 12% and 54,000 falls into the 22 bracket. So what all that means, you know, this is the amount that is paid in each one of those brackets, your total tax bill, about $24,000. you’re paying
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effectively about 11 12% in taxes on $200,000 of income moving across this progressive tax system. And so what we want to try to do is utilize any room within your bracket to pay that low tax if possible. And a lot of people will leave tax brackets unused and unutilized a and don’t really understand this progressive tax system. I don’t want to bump anybody up unnecessarily unless there’s a significant advantage to that. But we also don’t want to leave a low tax bracket unused. And then of course again
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different sources of income, social security itself, uh we’ve got to figure out the taxation on that because that could be tax-free if your income is very very low. Most of my clients are over $44,000 a year of income. So up to 85% of their social security is going to be taxed. And what we try to do is is optimize even just the the social security taxation alone. And let me see if I can uh illustrate this here. Oh, where are you at? Again, technical fun. Um, okay. Hello. Okay, I got to stop it
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here and start it over there. No problem. I can do that. So, when we talk about social security, that can make a big difference in your total taxation just that alone. So, let’s see here. We got a little whiteboard going. Okay. So, let’s say that we’ve got Let me see my whiteboard. There we go. I think people can see that. And now I can see it. So, fantastic. All right. Um, let’s say we’ve got that same married couple with $200,000 of income. There is a good, better, and best way that that
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could be set up. So good is if we’ve got 200,000 of income and let’s say 40,000 of that is from uh social security and 160,000 of that is from IRA withdrawals or other sources or pensions. Well, we know that only 85% of social security is going to be taxable. So 15% of that is tax-free. 15% of 40 is six. So that’s 36,000 that is taxable there. And then we’ve got about a $45,000 deduction. So 115,000 45K is not going to be taxable. About 115,000 there. So, I mean, we’ve got about 151,000,
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sorry, writing very small there, of taxable income in that situation. Well, what if we had delayed on social security? Uh, this is a little bit better situation. What if we had uh 60,000 instead coming from social security and only 140,000 coming from the IRA? All right, get out of my way there. Okay. Uh well, 60,000 15% of that’s 9,000, right? So, we’ve got more tax-free social security income and we’ve got about 51,000 of taxable income there. We’ve still got our same $45,000 standard deduction
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there. So, we’ve got about 95,000 of taxable income from our IRA distribution. Uh so 146,000 taxable versus 151 taxable if we had less social security income. But best what if we had done some prior tax planning and that 140,000 part of that was from Roth. Let’s say 70,000 was from Roth and 70,000 was from IRA and we still had our 60,000 from social security. Well, again, 15% of the social security is tax-free. So, that’s only 51,000 of taxable income. All of the Roth is going to be tax-free. And we
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still have our standard deduction of 45,000. So only 35 of the sorry 25 of the IRA is going to be taxable. So now we’ve got about $76,000 of taxable income. We’ve just moved down the brackets pretty significantly. So that’s what we try to do when looking at your social security income as it plays into the the context of your larger income is be as efficient as possible with that in planning for your total taxation. And a lot of people have never seen how much they’re going to end up paying in
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taxes on those IAS. And we hear a lot about required minimum distributions. If you’re already drawing and pulling out of your IRA, these may not be a factor. But for many people who have built up sizable accounts, these are a big factor. And uh this is uh Mr. and and Mrs. Avid Investor here. And uh Mr. Avid Investor has built up a $1.6 million IRA. Um Mrs. Avid Investor has built an additional 500,000, but Mr’s a couple years older, so we’re going to look at his first. Most people can tell me like
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within a pretty close margin of error, pretty close proximity, how much they have in their tax deferred accounts, but very few people can tell me with any kind of of educated guess how much will they end up paying in taxes on that account over their lifetime. and with some basic assumptions that we can control and and we can manipulate to to figure out where where it applies to you. What is your assumed tax bracket? What is the assumed growth rate? How old do we foresee living to? We can very much estimate what your tax bill is
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going to be on your RMDs. And we can also say, well, using the opportunities that are available today, what could we potentially bring it down to? And we probably will not get this number. We won’t we won’t quite get here. But we can be much closer to this number than this number. And a lot of people again can tell me what’s in their account, but can’t tell me how much they’ll pay in taxes on that account or are likely to pay in taxes. And so that’s a calculation that we can run through
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taking a look at those RMDs. Most people have never seen what those RMDs look like. So Mr. and Mrs. avid saver on on on mister’s balance here of 1.6. If we get a 1 3 5% rate of return on these accounts, here’s how much alone the RMD is going to be down the road. And this is again all taxable income which can impact other things ultimately. how much of your social security you get to keep, how much your health care premiums cost, Irma, income related monthly adjustment amount, RMDs alone are a big factor that
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not only push people into higher tax brackets, but also cause their health insurance premiums to cost more unnecessarily because it catches a lot of people by surprise. They’re like, Irma, never heard of her. Who is that? Well, it’s it’s the sir charge that you get charged on your Medicare premiums if your income is too much. And oh, by the way, because you built up this IRA, they’re forcing your income to be too much. You can plan for that ahead of time. But Irma, uh, Irma here, again,
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uh, income related monthly adjustment amount. So, this is a means testing on your health insurance premiums. Can be as much as an additional $8,000 a year per person in a in a in a household. Um, most of my clients, you know, they’re they’re they’re maybe paying $3,400 maybe $4,800 more per person per year, but that’s an additional and importantly avoidable additional cost. And maybe we can’t avoid it all together. we can probably plan to avoid that for the the the the duration the majority of your lifetime
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through proper planning. And so this is optimizing the income, optimizing the taxes to also optimize the cost and expenses associated with healthare. And how do we do that? Through some Roth conversion analysis. We can say, well, Mr. Avid investor, if you wanted to convert over, call it 1 million of your 1.6, six, we could thereafter keep you from being in a place where Irma and the different brackets and tiers affect you. What would be the best way to do that? Well, probably not all at once because
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that’s going to cost you I mean that would bump you up into the 35 37% tax bracket pretty easily. Uh plus you would encounter Irma. So you would have a a pretty high total cost for doing that all at once. What if we spread that out over a number of years, right? And between years 8 and years nine, the cost for taxes on the conversion about the same. But if we only do it in eight years, we still encounter Irma. So nine is kind of the sweet spot, especially when we think about Mrs. Avid investor
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who’s coming right behind him and still has her tax deferred balance. So we can model this out to make sure that people understand like how how to utilize this window of opportunity to be as tax efficient as possible. uh do we do it over seven years or over eight or over nine and we can say well here’s the income that we would take and convert here’s the tax that we would pay on that and here’s the Irma that would result and sometimes we encounter Irma sometimes we see that we can avoid it
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and by the way Irma always looks back two tax years so even though we were done in eight the Irma hit in the 10th year here so we can calculate that out and help people know and understand the benefits of Roth which we’re all told like the benefits of the Roth are the tax-free growth the taxfree income the taxfree inheritance and those are fantastic benefits but there are some additional ones Roth conversions will help you manage your RMDs they will help you manage your Irma and they can help
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to manage or even avoid the widows penalty when one of two spouses passes away the remaining surviving spouse not only loses some income because one of two social security checks is going to go away but also bumps up in tax bracket. They go from married filing jointly to single head of household and all of the limits and limitations and thresholds for higher taxes and higher Irmas come down. So that is what’s known as the widow’s penalty and that’s why Roth conversions really at any point in
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time can make sense. I don’t think that there is an age where it stops making sense at like 65. We just need to be more careful about how much we’re doing starting at age 63 so that we don’t encounter encounter Irma unnecessarily. And and if you want to go through these numbers for your situation, just make a comment or or or get in touch with us. I’ll I’ll give that um opportunity at the end here. But all that to say, creating retirement income is much more complicated than simply showing up to
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work and earning your paycheck. Where taxes are sort of taken care of, health benefits are often part of the package. Retirement income is a lot of moving parts and complexity. And then they change the rules on us every year. The brackets, the thresholds go up or or don’t. the amount we can contribute or can’t or convert or can’t changes. The stretch IRA goes away. RMDs are a moving target. So, how do you figure all of this out? There really needs to be a lot more education hopefully ahead of time.
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And we need to have a sound strategy on how to create the retirement income. There are a couple schools of thought here, right? Once we start living off of our investments and taking money out, how do we do that as effectively and efficiently as possible? Um, one is that you can separate by the type of money. Do you take your tax deferred assets, your non-qualified assets, your Roth assets? Sometimes it’s a mix, but in general, the IRS is going to force you to take money out of this one. And this
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is the one that they use to control your life and control your tax bracket. So why not try to beat them to the punch and use this one effectively? Leave your after tax assets so that you can have more control. There’s a lot of benefits to investments in nonretirement accounts. In fact, you can have a pretty high income all from capital gains and essentially remain tax-free at a certain point in time, but not if the IRS is telling you you’ve got to take another couple hundred,000 a year out of your
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tax deferred assets. So oftent times we map things out and say, “Well, yes, tax deferral has been great to this point, Mr. Mrs. Avid Saver, but but let’s look at down the road. How are we going to maintain tax efficiency? And of course, your Roth, the growth on that is the most valuable growth that we can have. So, we want that to be our long-term bucket generally. Uh, another way to look at it is the guaranteed income solution. Not a bad solution here. You’ve got one bucket that’s set up for
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now and forever income. And even if this tap, you know, runs the level of the water in that bucket down to nothing, it keeps sending income, which theoretically would allow you to have some money in the background that we’re not intending to use. And we can be more aggressive with the growth. Remember that reverse dollar cost averaging? The reason that was not effective is because we were pulling income out of it. But if we don’t have to do that, we can continue to utilize the market for the
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growth opportunity that it presents. But we also need to earmark someday money. Some money that we might need in case of an inflation, in case of extra expenses, in case of medical medical circumstances. So we need to have some money earmarked as someday money. And the goal is to try to fill your base expenses, your your living expenses with as much guaranteed income to leave using as little money as possible to leave as much money as possible over here in the growth bucket or for the someday bucket. So that’s how that
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guaranteed income uh solution works. What about a time optimized portfolio or retirement income strategy? You basically identify what is now income. What what you might need in the next one to five years and you keep that very conservative. Five to 10year money might be a little bit more but not not all the way to the other end of the spectrum but a little bit more growth oriented. Uh maybe moderate depending on your comfort level. Maybe moderately conservative, maybe moderately aggressive but we’re
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not planning on using this money for 5 to 10 years. And then the 10-year plus, that should be kind of on the on the upper end of your comfort level with risk. And that’s the time optimized strategy. And the way this works is as we drain down the now income, the the later buckets theoretically are growing in the background so that we can then kind of rinse, wash, repeat the process and start over again. uh and and that that time is kind of a sliding scale in the time optimized retirement income
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strategy. Another strategy is a protect the principle live off the interest kind of approach and and you know a fantastic approach in in in theory and in in reality when it works. But in order for this to function correctly and generate enough income for most people, the protect the principal bucket isn’t growing. It’s simply generating the interest and the income. And you have to dedicate usually a pretty large amount to generate the same kind of income that any of the other strategies might be
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able to present for you. And again, we always need that someday bucket in the background. But with this strategy, oftentimes there’s much less here because protect the principle, live off the interest. You have to be willing to accept the the the the available interest rate environment or what we can find for an interest rate that’s pretty safe, secure, and protected. And those are are exceedingly lower than what generally uh market rates of growth would be. So what what are the best or
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what is the best strategy? Uh the types of money, the guaranteed income, the time optimized or the protect the principal, live off the interest approach. Uh really it’s a mix of all of the above and it’s it’s based on your individual situation. But these are four very very uh different, very effective, very individualized strategies. And often times it’s a mix of all of the above. And we’ve got to figure out the right ratio for you so that all of these different interconnected pieces of your
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plan work together in an optimal manner because again one one domino sort of impacts the next and they can fall either in your favor or against you depending on how things are set up. And then finally the optimized legacy. Right? If you’ve got a plan for your lasting lifetime financial confidence, then ultimately there’s probably something that’s going to be left behind. And I hear people saying all the time, well, leaving a great deal of wealth is not my top goal. Fine, fantastic. That’s not a selfish
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statement in any way. But if you have that plan in place to where you feel confident, then probably something is going to be left behind. And very very few people that I’ve ever talked to uh wished that the IRS got more than their fair share of whatever is left behind. So if you want to optimize that legacy, don’t plan on leaving a great deal of IRA assets behind. That’s probably one of the least advantageous assets. spend your IRA, convert your IRA, plan with your IRA, leave behind Roth, appreciated
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real estate, appreciated non-qualified assets, life insurance with a of course with properly executed documents and named beneficiaries, uh beneficiaries on on your accounts, a will, maybe a trust, but all of those are important to have that optimized legacy. And by the way, the transfer of value is fantastic, but the transfer of values is equally important. So talk with your beneficiaries and your loved ones and your children and grandchildren about your values with money and what allowed you to get to the status where this is
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even an option for you. So I don’t want to take up too much of of our time today. I appreciate you uh joining me on the on the webinar. I plan on doing more of these. So, if you enjoyed what what I talked about today, I’m going to deep dive into more about specifically optimizing social security, minimizing taxes, uh Roth conversion strategies, different options in the market, annuities, life insurance, the just the the the world of finance. And we’re planning on doing these on the third
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Friday of every month. So, if you would like to have a conversation, see if any of this applies to you, feel free to give me a call or go online. You can schedule a time. You can also scan the QR code that’s up on the screen and and and be in touch that way. But uh I hope this was worth your while, worth the time and sharing with me. And I appreciate you being here on uh understanding retirement income. Uh F3 family, friends, and finance F3 the third Friday of every month. That’s when we’ll we’ll try to hold these on
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different varied topics. And hope you come back for the next one. Hope you enjoyed today. Again, Peter Rashan with Rashan Planning. Uh, look forward to helping you any way we can, answering any questions that you might have. Talk to you next time, folks. Take care. The content of this radio show is provided forformational purposes only and is not a solicitation or recommendation of any investment strategy. You are encouraged to seek investment, tax, or legal advice from an independent professional adviser. Any
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investment and/or investment strategies mentioned involve risk, including the possible loss of principle. Advisory services offered through Brooks Own Capital Management, a registered investment adviser. Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services. Advisory clients are charged a quarterly fee for assets under management while insurance products pay a commission which may result in a conflict of interest regarding
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compensation.
