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The box business that would almost be the major averages closing in the green for the day and for the week with tech companies leading the charge the Dow closing up $348.00 points Nasdaq up 127 The S. And P. 500 up 43 and the high end retailers Nordstrom's founding family is reportedly finalizing plans to submit an offer to take its department store private according to people familiar with the matter their group meeting with banks last week and is hoping to submit an offer possibly by next month once the banks get approval to provide the financing and German automaker B.M.W. Is in talks to build electric models of its British many cars in China which would be the 1st time the cars have been made outside of your company is planning to team up with China's Great Wall motor to start looking for the best place to set up a factory China is the world's largest auto market in B.M.W. Delivered $560000.00 vehicles to customers there last year with the Fox Business Report on 3 bars. Do you want to be an insider this week on Silicon Valley insider yourself discuss business born in China raised North America so if you started as a documentary filmmaker moving across the border business development and now owns a cross border venture capital firm join us as we discuss trends opportunities advice for startups meeting funding and what overseas investors want that's this Friday at 1 pm Silicon Valley insider on AM call 20. The Brocklebank foundation is part of the Bronco athletic fund and it's been providing student athlete scholarship since 960 to support the future of Santa Clara athletics by being a member of the team behind the team join that Bronco bench foundation and enjoy one of their many upcoming events to support Santa Clara athletics for more information and to donate visit S.E.U. Dot edu slash Bronco bench that's S.E.U. Dot edu slash Bronco bench Go Broncos Imagine buying a $720000.00 condo in San Francisco by the ballpark 460000 or an 800000 dollars Silicon Valley town home for just $260.00 sponsored by wood to G.M. Associates program guessing GREG ROBERTS not affiliated with an Associates information provided for Illustrated purposes only does not constitute investment tax or legal advice information obtained from sources deemed reliable but accuracy and completeness not guaranteed between associates have no liability for information discuss consult with qualified investment tax or legal professional prior to taking action securities and advisory services offered through United players financial member FINRA S.I.P.C. Associates and United players are not affiliated. Welcome to go to Best and forget a weekly financial news magazine designed to educate every quit you with the roadmap and direction you need to manage your money meet your financial goals and instill confidence in your investment choices on the road to retiring your host as author radio commentator and investment advisor Pat patootie of the Tucci and associates with over 30. Years' experience in the world of finance it is best and what it is that specializes in personal and corporate investment management with special emphasis on retirement plans. As you head down that I weigh toward financial independence again welcome to another edition of don't invest and forget the program that for 25 years now is help you better manage your financial life as it relates to retirement planning money management and sound investing your host is author and 30 plus year retirement planning specialist Pat the Tucci and I'm drag Roberts when it comes to investing and planning for retirement what's your primary approach the account of well maybe toss a dart at a fund or something that sounds good and exciting and just hope for the best deal like to dive in when you hear about exciting numbers on Wall Street this is really my chance to get in there make a lot of money or the A tend to be really reticent and maybe back off and kind of run for the hills when something negative occurs in the news well if that's the case you're probably like a lot of Americans that allows their emotions to drive their investment decisions and as we're going to learn from our host patha to cheat path is probably one of the worst things you can do it's great to allow your emotions to drive you in love but when it comes to the matter of allowing your emotions to drive you in retirement planning and investing that can really be dangerous canted unfortunately emotions too often times dictate decisions that we make I see it time and time again especially given market conditions today between the Dow the NASDAQ the S. And P. Housing is is off the charts we're blessed with abundance maybe to a fault I mean it really begins to infiltrate our logic and. Emotions can override logic way too often so envy is something that we all kind of struggle with we love our friends we love our family but we all tend to be a little envious you know we've got to keep up with the Joneses and envy can easily put our investments at risk so we want to be very careful not to have something like envy can override what logically seems to be a sensible decision and look pretty silly some months or years later I fear Wow I'm fearful all my friends are getting rich they just bought Bitcoin and they just quadrupled their money in a couple days and gosh I didn't buy Bitcoin Well you know this is where you've got to put that fear to rest and bury it in your backyard you've got to be very careful not to let fear to screw up your thinking the stock market is doing so well and gosh I haven't been in it so I'm fearful I'm not going to be able to be able to retire when I want to so I'm going to make a really bad this is and then jump in with both feet right now without even consideration to concurrently looking at preservation of capital we all hope we want to be hopeful that the world's going to be a better place and my future whether it's a year or 2 from now or in retirement X. Years down the road I hope I can go to Hawaii once you know I hope I can buy a new car once why I hope I can take my family out to dinner once in a while hope I can take care of my grandkids and and help them with college education kinds of things and and so hope is another one of those emotions potentially killing your investment stubbornness we're all darned stubborn gosh darn it I wanted my way and I think I'm right despite what everybody tells me I'm going to be stubborn and I'm going to be part of the problem and I'm going to just not take a wise counsel and coaching of people that I depend on you have a good C.P.A. Do you have a good financial advisor do. Have a good attorney that you can confer with and holistically stand back and look at the entire picture and not stubbornly look at just one element that you think needs to be satisfied have upright gosh I've never make a mistake I never will make a mistake I'm never going to admit to make a mistake because I have pride and I'm always a successful good looking had some. Will not even come close to enjoying my pride and then of course there's anger why I did a really stupid thing and I'm angry now based on my anger I'm going to be really irrational and my ego is so important because the god bruised I'm angry that my friends my family who whatever it is made me angry then of course their shame and depression shame all the shame is kind of an old antiquated death Greg and nobody suffer some shame anymore and they stand on their self box and without shame they admit to some things but if you're old fashioned like me and conservative shame is still becomes an issue if you've done something really change fals something really silly and I'm not recognize I've identified and that not done some introspection on your actions and if you don't do that then you of course you never you never have shame and then all this may lead to depression gosh I'm so depressed my friends are getting richer than me and they job a better car they they travel to better places gosh darn it I'm really depressed and then you tend to make really bad decisions when you are depressed so emotions all of a variety of those can drive you to do really bad things and your actions too many times are guided by our emotions We're all emotional beings till those robots come along with their artificial intelligence where they don't have emotions we're stuck with our own little. Brains and little issues that we struggle with and emotions can way too often dominate our investing decisions and that's where you get into real trouble of all Pat then what's the best way to kind of them engage in that disconnect here because as you've suggested all of these emotions stubbornness pride and the fear all can really contribute to making bad decisions and then you couple that with history we remember how mom and dad suffered during the Great Depression the stories we heard I never want that to happen to me and so we're almost a hoarder when it comes to your finances or maybe use of 5 through the 20082009 economic debacle and took a 30 percent haircut in your 4 A one K. And now you want all that money to be on the sideline you want to keep everything in cash those kinds of historical memories that can also combine with the emotions to lead to some really bad decisions in order to win gauging that disconnect so that you're making the decisions based on what is right for you solid numbers solid things like timeline toward retirement how much you're going to need to enjoy a comfortable retirement things that are fairly concrete Do you really maybe need a 3rd party that can help bring that sense of groundedness to your decision making if you're overcome by history and emotions the most successful people on the planet both psychologically and financially create a teen a coaching team whether it's a C.P.A. An investment professional an attorney you've got to look at those decisions from every angle and if you juxtapose your decisions across all those disciplines I think you're going to come out with a much more deliberate conscionable this is that you can probably live with we all have our prejudices and our biases as we approach at decision we're a product of our environment than if we lived in an affluent home as a kid or a very fine. Actually modest home as a kid and then Chile speaking of those kinds of values and judgements can sometimes interfere with a good judgement today and so we always talk about bringing a collection of disciplines to the table and then you the just all of those opinions you may still go back with your original thought but at least you have constantly exported from a variety of angles of course conferring with their families certainly 1st and foremost if you you're married or with kids or whatever you've got to discuss all the options lay out the pros and cons get a yellow sheet of paper put pros and cons and with a line down the middle and that's a simple exercise look at the worst case scenario if you make that decision what happens if the worst case scenario happens you make that investment and you lose every nickel How does it affect your family your your life from that point forward I always thought like think the worst case scenario the best case scenario I'm going to make a good zillion dollars and you know I'm going to go to Hawaii twice a year instead of once a year or once every other year that was are easy Those are softball questions it's really what if it doesn't work out and can you live with the consequences of the bad news but I think there's a lot of conferring with people and and you'll walk away I think with a much more deliberate unconscionable choice as we've learned from our host pad to suit the fear is not an investment strategy impulse is not an investment strategy relying upon bad past experiences that go back decades or go banking even into your family line is not an investment strategy what is an investment strategy for you is to sit down and take a look at things like your timeline toward retirement your appetite for risk that kind of goals and dreams that you have for retirement and then an understanding of what sort of a nest egg what kind of critical mass is paddle we says that you'll need to have saved up in order to allow you to enjoy that quality and caliber of retirement want some help getting that strata. G.M. Place Why not call today and take advantage of that complementary financial health and retirement plan review in any of the Bay Area offices of the 2 G. And associates remember that appointment is absolutely without cost or obligation and there's no doubt an office very near you to make your appointment as easy simply log on to don't invest and forget dot com and schedule your appointment that's don't invest and forget dot com Don't invest and forget dot com You can also easily make your appointment by calling toll free AAA to plan was that A P L A N W I S E. Strategies and solutions with Johnny beam Wouldn't it be great if you could cash out of your 4 A one K. Pay off your high interest credit card debt and effectively start over well actually no using your 41 K. Money to pay off your debts is in many cases of bad idea here's why your $41.00 K. Money is invested in tax deferred accounts regardless of when you take it out you'll owe taxes on that distribution but take it out before age 59 and a half and you'll owe a 10 percent penalty as well let's say you have $15000.00 in credit card debt and you have 20 grand in your 4 A one K. If you're in the 24 percent income tax bracket you'll almost $7000.00 in taxes and penalties on an early distribution that lets you have $13000.02 pay off your debt you'll still be a couple $1000.00 short of eliminating your debt and you may have destroyed your retirement plan try to come up with a different plan for reducing your credit card debt and that includes spending a lot less security software securities L.L.C. Member S.I.P.C. And a subsidiary of Capital Group a registered investment advisor all investments are subject to risk including loss of principal John Dean is an affiliated person of Luci as securities this is a Bloomberg tax tips for last minute filers attention procrastinators you have 2 extra days to file this year the deadline is Tuesday April 17th that's because the 15th falls on a weekend and April 16th is a holiday in Washington D.C. If. Still need more time to file you can request an extension until October by the I.R.S. Website but remember you still have to pay any money owed to the government by the April deadline to avoid interest or penalties on Peggy Collins Bloomberg Radio your station for new area business and real time traffic. To a 1220. I Heart Radio station. Is a street business that serving San Francisco good San Jose 1220 K.T.O. W W Tell. Well. To gain more information about any of the topics discussed on today's program or to schedule your appointment for a no obligation financial plan today at one of our offices here you go to the website vested forget. Invested forget dot com And now. Best and forget it is a problem the growing numbers of those in the so-called sandwich generation are facing folks that are not quite yet done raising their own children and now find themselves facing the challenge of even caring for their parents as Mom and Dad moves into retirement parents that perhaps no longer have access to a pension fund because that fund has filed bankruptcy in recent years parents who are not in the best of health and as a result we're finding children are having to care for their parents not just in terms of meeting their everyday needs but also providing for their financial needs as these folks address the ever increasing cost of health care and Pat this is really a growing problem that more and more baby boomers are beginning to face the numbers are just getting so large it's becoming more and more apparent this is a whole lifestyle shift a lot of boomer kids are being sandwiched between take care of Mom and Dad and take care of the children in fact statistically more boomers are taking care of and looking after elderly parents share numbers than the our children the average Boomer has $1.00 children but the average boomers taking care of 3 elderly parents and so the challenge is more directed to mom and dad which they rightfully need to get their attention 1st his children and so I think the last time we look there were 34000000 Americans caring for a loved one these are big big numbers and guess what the number is going to exponentially grow by dramatic fashion over the next 35 So. In years so we're not only talking about significant numbers Pad in terms of the number of baby boomers caring for elderly parents but also the amount of money and their own money that they're having to invest in caring for their families as so often because the result of let's face it Mom and Dad as they save down through the years were probably very prudent many growing up in the Depression generation they knew how to save a dollar but no 130 years ago 40 years ago Pat could insists a paid and that some of the expenses toward health care would be as outrageous as they are today and as a result growing numbers of boomers are literally I understand investing their own personal retirement dollars in caring for mom and dad's health care the last studies I saw Craig caregivers are spending more than 10 percent of their income on care for mom and dad and 34 percent Craik say they had to use some of their own savings to cover those costs so it is taking some of their retirement monies that the boomer kids were saving and of course trying to help out mom and dad in this ever escalating cost of Medicare you know the average inflation for every day Americans in their regular economy it is were from 3 to 4 percent but when it comes to medical costs it has been double digits for the last many years like and think of know the words 101215 percent rising cost of medical care when the average inflation is only 3 or 4 percent so you can see how these numbers are just running away in terms of affordability and when Mom and Dad's monies are tapped out it's the children to cover the cost in fact 23 percent say they have cut back on their all health care in other words they raise deductible levels or had to go to a less expensive health care plan for themselves in order to help mom and dad out either nursing home confinement or funding some in-house home health care caregivers the come in to assist because after all a lot of them are kid stuff to work and so if mom and dad need special attention at home then they hire a caregiver to come into your home is the only option left hand even more problematic and that is the fact that there is no end in sight both in terms of the ongoing cost of health care that just seems to be running out of control and the. Squeeze that so many folks find themselves in for now as you mentioned they're having to literally draw from their own retirement savings that means that multiple generations here are going to pay the price and with that a lot of misconceptions For example many folks believe that part of the Medicare will cover all of these costs that if Mom or Dad for example break a hip that every expense including in helm health care or nursing care is all going to be covered that is not the case there's a misunderstanding that I have Medicare I have a health care Blue Cross and Blue Shield plan so I'm in good shape Well that is not a covered benefit at all but there is that common fundamental misunderstanding about health care costs so coupled with that kind of surprise a lot of boomer children who are in their fifty's and sixty's have had to cut back on their work week in fact more than half said they couldn't work at all because they had to spend more than 35 hours a week caring for their loved one a 3rd had to quit their jobs or reduce their work schedule by up to 37 percent so it really is kind of a double whammy you see medical costs go up dramatically and you've got to cut down on your own workload in order to accommodate mom or dad's health care needs it becomes a real financial challenge and a really emotional challenge I mean all kinds of guilt sets and obligations set and we certainly want to take care of mom and dad after all they spent their youth taking care of us and sacrificing for us and perhaps putting us through school etc etc So now it's our turn to take care of them it becomes difficult and it challenges our marriages it challenges our relationship with our children and challenges our relationship with our work so it really is old major major adjustment not even to speak of the financial adjustment but the social and emotional adjustments right it's a real eye opener as long as Congress remains paralyzed in addressing this issue and millions of Americans are waiting for the placebo waiting for the hero to ride in on the white horse it really then I suppose Pat makes it incumbent upon all of us to do a better job at retirement planning and in doing so taking into consideration the added cost for health care not just for ourselves as we grow older and. Prepared to retire but as well as the additional monies we may need to have on hand to help mom and dad out as they reach their retirement years it becomes a real mystery on how to solve this problem even with a lot of money on the table it's still an emotional challenge when money becomes a tighter type of commodity puts a lot of focus on the problem and the solutions are not easy that's where I think a well designed portfolio can at least the Says we find a lot of even elderly folks with a lot of money in terms of net worth but it's all in the wrong place at the wrong time and so sometimes a redesigned Craig mom or dad's portfolio if there is assets in the home but they're cash poor there are a lot of new programs available that can extract money from that home without selling it one choice is a reverse mortgage so there's ways of looking at the asset base grey and either readjusting at the generated income stream selling off parts of it to make some money available for Mom and Dad's use there was nothing more frustrating than the challenges of trying to make important decisions regarding health care the expenses associated with the caring for mom and dad's needs and trying to go at it on your own operating literally in a vacuum and that's where the personalized retirement plan review can really help make a difference not just for you and your retirement goals but those of mom and dad as well to make sure that your investment choices are indeed maximize at the income level is where it needs to be to care for a number of ongoing expenses related to Mom and Dad's health care and other needs perhaps that they might have that you need to address because of your sense of obligation and responsibility sitting down with a licensed experienced retirement planning specialist can really make a big difference that not only I suppose in helping folks ascertain where they're at today financially but look at the roadmap that can be developed to help get them to where they need to be financially to reach a critical mass so that the necessary resources are available both in caring for mom and dad's needs as well as your own at retirement I think you hit on a key point Greg it's really putting that road map together and. Guess what if it needs to be adjusted because of a new circumstance mom or dad need some help funding I think a redesign of that road map where your retirement dreams are going may need to take a detour and women need to look at the new tax obligations and the new tax considerations or maybe it's a change in risk level how much risk are mom or dad taking how much risk are you taking kind of taken a fresh look at that portfolio given the new facts today and getting a 2nd opinion Craig is always I think a good idea there's no harm in getting a 2nd opinion we offer a no cost no obligation consultation so no one is committed to accepting the recommendations we've got a team of talented professionals who have many many years experience who have sat down with many many people in that kind of scenario Greg where we need to tweak the portfolio or maybe need to make a major adjustment given the new set of circumstances and I think that's where I think we can add some value again take that roadmap and redesign it perhaps given the new set of data that we have today to take advantage of that complementary financial health and retirement plan review that Pat spoke of just a moment ago why don't call toll free Triple 8 plan wise that's 888 P L A N W I S E easier still you can schedule your appointment conveniently online by going to don't invest and forget dot com that don't invest and forget dot com In addition to scheduling your appointment online you also find a number of resources available through the investor education tab including articles and topics such as what we've discussed today on the program again that's don't invest and forget dot com to get more information or to schedule your complimentary appointments in any of the Bay Area offices of the 2 G. And associates don't invest and forget dot com. Is your retirement plan actually structured to provide an income stream anough income you can count on someone who can. Help you answer that question is financial advisor Pat but Tucci as you think about retirement your goals may have changed now you may need protecting growth nest egg packin help you get on the right track for retirement if you're not working full time now or sometime soon you need to make sure your income stream will carry you through your lifetime Pettus help folks with their retirement planning for over 30 years but Associates has offices throughout the Bay Area. Call for a complimentary retirement plan review 804728305804728305 or check don't invest in Forget dot com The 2 chin associates 804728305804728305 or go to don't invest in Forget dot com I'm Tom bus B c N.B.C. Rental car giant Avis Budget and Hertz added to the growing list of companies battling out of partnership deals with the N.R.A. Following last week's massive school massacre in Florida they join enterprise Alamo and National Car rental companies also insurers job and Met Life In The 1st National Bank of Omaha canceling its N.R.A. Branded Visa card on Wall Street stocks soared higher today ending the week Ira thanks to easing worries about higher interest rates the Dow today shot up 347 points the Nasdaq up 127 the chairman of China's largest automaker Gili just became the biggest shareholder of Germany's dime learned the maker of Mercedes Benz next month Nissan will road test a self driving car in the U.S. That can be summoned with a cell phone app and Dropbox the cloud storage firm with half a 1000000000 users filing paperwork today to begin selling stock to the public I'm Tom Busbee see N.B.C. . Let's face it we love Alexis and we love to let her find your favorite radio station this one of course but she could find us easier if we taught her a simple skill to get started simply say Alexa enable the AM 12. 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Don't invest in Forget dot com and don't invest and forget Welcome back to investing for dead so we can do the trick in trying to create some thought provoking ideas to have you step back and look at your financial life and with me in studio today is Mr Stephen the bro Steve in the president of the American Society of pension professionals and actuaries he has his own company called Prime Mark benefits locally owned here Stephen welcome to the show thank you very much Matt Stephen your expertise is looking at this small business owner and creating a plan that ideally would create a retirement plan concurrently reduce taxes along the way X. Years down the road put that business owner owners in a favorable position to have some choices to possibly retire early is that over simplifying your role what do you think well I am a retirement plan expert what I do for folks is take money that they would normally send to the government and instead find a way for them to put it into a retirement account so they can feel better about having saved something and actually have money to retire upon You've heard of a $41.00 K. Plan you've heard of an IRA Those suggest to $24.00 different types of retirement plans there are available to a small organization and we're experts in all of us and there's a whole alphabet soup of plans that can overwhelm the small plane I mean these small players are good at what they do they're chemists they're teachers they're architects They're experts in their industry clearly probably never heard of all the alphabet soup that you deal with every day that's correct and. Congress has gone way out of their way to make sure that no matter what your situation is as small employer as a or as a self-employed person you have lots of choices and like a suit doesn't one size fit all doesn't work well retirement plans one size fits all doesn't work either and that's why there are so many choices and we're here to help navigate all those choices so that you end up with just the best plan for you in fact we have some business owners are sheltering 100 percent of their business income into or tyrant plan so they don't have to pay any income taxes people ask well I thought that was over the limit let's not mix up our limits for different plans so there is a lot of flexibility in this whole area and full disclosure you create a plan for me many many years ago that I frankly didn't even though was available and here we are what 1215 years later I've saved a lot of pre-tax money instead of sending that check to the government it's direct to posit into my retirement account and so I want to thank you publicly for that disturbing my thinking many years ago in creating compound retire money in my cow and not Uncle Sam's account well in California many successful business owners once you count the federal and state and FICA and all that stuff and so if you can go to a business owner and say hey look I can help you he will 8 you know 2 or 3000000 dollars by the time you're at 62 if you take a Most of that money you're paying in taxes instead put in a retirement plan then the small businesses much better off now the government's going to give you a big tax break and if you have some employees the government's going to ask you to give some of that tax break to some of your ploys and some amounts and regularly we have the vast majority of contributions going to the business owners when you share this with me 15 years ago I said well I'd rather give it to my employees than give it to the government 1st of all I like them better number one number 2 I want to create return plans for them were determined specialists here for our clients what can make me feel better than the help my employees save for their retirement and so when you stick a. To me 15 years ago with that idea I said sign me up and here we are MANY years later many my pleasure very well prepared for retirement because so writing a check to the government I wrote a check to them individually and they feel good about me and I feel good about helping them out I mean it's a win win it is and if you go to Patmos team we'd be able to to have a plan operate in such a way that you are giving up a reasonable amount to the employees and it's not something as overwhelming a lot of people think that if a big contribution of myself or my management team then everybody has to get the same level of contribution not dollar for dollar match at all it's not true and you can give a little bit to some of the people and they'll still make the plan work the government feels that they have to offer incentives to businesses to offer this and by giving them tax benefits to the management team and the owners they know that the employees the very valued hardworking employees would appreciate getting part of that tax break and so it all becomes very affordable and very effective at creating retirement savings about payroll tax savings I mean if you just take a regular payroll I mean there's every paycheck there's a savings for the employer he's not players he is now putting their portion into that system to also not only that if you're a small business out there this thinking about having a plan for you and your employees the government is so anxious for you to have it they're going to give you a $500.00 tax credit for the 1st 3 years you have a plan so you can afford to have some reimbursement of the set up costs and help with the contribution a little bit and then every paycheck what is the employer can do because it's 7.5 percent some point $65.00 points a firefighter rate on all the money going into a retirement plan from the employer side is not subject to FICA Fouda S.T.I. All those tax things that employer would normally pay this this money goes in is deferred compensation so it's not subject to all those things that normal compensation is what's wrong with that picture you're saving every paycheck and then at the end that when you file your $1040.00 whatever you put into your plan plus whatever employees of one of their plans that's all grows tax deferred it is a magic kind of thing. That happens however it does impact your lifestyle a little bit because in order for the government to give you the tax break you have to come up with your half or your Archon and so on so it's not exactly free but it's certainly worthwhile I hear these arguments and they're fraught with Shell thinking my my people say Well as you know the tax brackets going to be higher when you retire so you're going to pay a higher a money in retirement we can't predict next week what the tax structure is going to be how can we predict 1020 years down the road what the text force going to be what party is going to be in office and who cares if it grows tax deferred for that many years even if tax rates higher you get that money compound for all those years you know most retirement plans earn enough to pay the taxes on themselves in any kind of reasonable investment scenario that will actually happen so it doesn't matter if the tax rate is higher or lower when you retire you're always going to end up better off and in the long term basis this is basic right to think is not it is you know we could go into a compound interest and calculations doesn't make good radio but but yes you can find it on the on the web as to forecast how much you end up with versus how much you started with and and saving in a retirement plan all that uses the tax free growth that you mentioned I mean we're really talking about I guess the corollary explanation would be should I buy a traditional IRA or far away K. Or a Roth IRA or are Roth for a one Kemi the same issue as there are people by the Roth because they say well I don't want to be taxed when I retire but the except a very 56 percent in your example tax bracket today well versus 0 when you retire what if you don't have a good long life or you've just given up all but now your heirs are going to enjoy it certainly right yeah more and more people are adding the raw feature to their for one K. Plan you've heard of Roth IRA But you can actually have a rough or a one K. Put in after tax money which will grow tax free and yes the money will go to your heirs tax free no estate taxes on that money going out to them no income tax money going going paid to the government at distribution so it's really a. Deal no matter what the earnings rate is and no matter what the future tax rates are when you compare rough versus regular You're always going to come out better with Roth There's just one little tiny risk with Roth and that's that the congressional risk that you know you go ahead and put all of your money in Roth and then government decides they want to tax it later on that's it's not the current law but proposals have been made by the former president to tax people who are quote rich if they have Roth IRA so you have to watch out for that well I think Nancy Pelosi has salivated talking about taxing all that retirement money out there Roth or qualified pretax money let's just put a one percent or a half percent tax on it right and that's how that how they step into it in 5 years later it's 7 percent right well what I tell people is that this is a possibility that it's going to tax later so just like you diversify your investments and you help people with that I said diversify your contributions to put some in regular and get the facts speak for it and put some in Roth I do want to make the point that you know there are income limitations for people use Roth IRAs and those don't apply in a for one case scenario with me in studio taste even Dobro Stevens the president of a company called primary benefits he is our go to guy when we have a small employers small meeting 11 employer or a 1000 employees that are issues that in setting up a pretax plan to the save lots of money for retirement and concurrently save on taxes there are a whole host of choices to make any questions give our offices a call one AAA plan wise we can create a plan through Stephen's thieves assistance and come out and make a presentation to demonstrate to you in black and white in plain arithmetic how setting up one of these plans will compound savings everything taxes in a big big way any questions your office a call Tripoli plan wise Simkins down for a 2nd segment I think you've touched on some areas let's keep it up for 2nd 2nd I would love to. Is your retirement plan actually structured. provide an income stream anough income you can count on someone who can help you answer that question is financial advisor pad va tucci as you think about retirement your goals may have changed now you may need to protecting grow your nest egg packin help you get on the right track for retirement if you're not working full time now or sometime soon you need to make sure your income stream will carry you through your life time pettus help folks with their retirement planning for over 30 years but tucci in associates has offices throughout the bay area pat the tucci call for a complimentary retirement plan review 8047 to 83058047 to 8305 or check a don't invest 10 forget dot com the tucci in associates 8047 to a 3058047 to 8305 or go to don't invest 10 forget dot com when your realestate needs are beyond the standard look no further than the michael hatfield remax a corteen with office isn't 10 day area locations did tell us nor here's michael hatfield equity in bay area holmes has recovered interest rates on mortgage money is considered free money and the barea housing market is the 2nd hottest market in the nation so what is holding you back for making your move if your home is to larger too small or you just need better schools are neighborhood get in while the getting is good colace now let our experience help you with your housing meets call 80857632 partner buyer or seller needs with the michael hatfield re next accord teen that's 80857638085763 to come in discover excellence and realestate with the michael had field remax accord teen 808-5763 calvary's your wife or night for sept 6th what strategies and solutions with johnny dean if you're moving soon you might want to think about getting enough insurance in case the moving band hit some kind of a bump along the way one in 5 consumers movie occur State lines filed a lawsuit or damage claim with the mover this according to the American Moving and Storage Association under U.S. Law movers must automatically give $0.60 per pound of replacement coverage to interstate customers but that's usually not enough so the 1st thing to do is check your homeowner's insurance to see if it includes any moving coverage once you know the extent of your coverage take careful inventory of everything you're moving and it's worth then buying up extra insurance to cover the gap between what your homeowner's policy covers and the total coverage you need move or generally sell what's called full value coverage based on a minimum $4.00 per pound of goods transported that works out to an average of $298.00 for a typical $8000.00 pound move before you pick a policy though make sure to compare to Dr Bill's securities offer through securities L.L.C. Member S.I.P.C. And a subsidiary of Capital Group a registered investment advisor all investments are subject to risk including loss of principal John Dean as an affiliated person of securities this is a Bloomberg tax tip more Americans are becoming their own bosses from drivers to entrepreneurs the benefits can be alluring but it can also leave you with a big tax bill a few things to keep in mind you leave the W. 2 form behind and join the 1099 society you'll also likely have to pay more to cover your share of Social Security and Medicare taxes thankfully you can take a deduction for those speaking of deductions keep careful track of your expenses so you can get the most back at tax time and Peggy Collins Bloomberg Radio it's a fairly analysis of that day's news from Wall Street and around the world by never sleeps it's market wrap with Mo on so we can afternoon on the berries business later am 20 K.T.O. W. . Street business next 37 Cisco good San Jose 1220 K.T. O.W.D. You know you talk. To gain more information about any of the topics discussed on today's program or to schedule your appointment for a no obligation financial plan at one of their offices here you go to the website devoted Best Ish forget dot com Don't invest in Forget dot com and now don't invest and forget Welcome back to don't invest if you get my special guest Stephen the bro Stephen is past president of Merkins society of pension professionals and actuaries also a president of his own company primary benefits right here in the Bay Area it's a pension consulting an actuarial firm save and we talked about in the last segment some of the tax issues let's get into some of the a little bit of the alphabet soup without getting too mushy here but defined benefit plan and a deferred plan giver audience some of the sense of some of those basic choices that we create for our small employer clients that is an opportunity that as you mentioned defer up to sometimes 100 percent of company owners income as I mentioned you know you have many different types of retirement plans that you can establish in a in the small organization they're actually $24.00 different types you've heard of a $41.00 K. Plan you've heard of an IRA Well there's there's many different IRA plans besides just the raw fire and I rather simple SAP and Sarsi those are other buzzwords there but the point is is that the tax code leaves you many many different options when the options you mention is a defined benefit plan and what's very very popular today is something called a cash balance retirement plan it's a type of defined benefit plan which allows owners who are experiencing getting up in years to put into $3400000.00 a year in fact we have for example real estate agent have a great year. And I have several who are putting in $8900000000.00 in one year into retirement planning and getting a total tax write off for that government approved so they report 0 income basically 0 income taxes or maybe they have other money to live on and have other other income so they have to report but the business income that you can shelter up 100 percent and that's flexible from year to year you have a bad year you put in 0 you have a great year in your example you put in 800 good example would be a litigation firm lawyers will invest in the case and the have no income this year and maybe no income next year and then the 3rd year the case will settle and they have millions of dollars in income so their income goes your 00 millions 00 millions their retirement plan can kind of map that goes or 0 millions what I see though is people put these things more on autopilot and that's that's a shame because if you're steering the plan you have a team like the 2 of us you can really steer this all that you can out of no contribution in some years and a very large contribution the next year and if you have employees that's OK you're the matching wouldn't happen when you're owed we would have been a big time next year as long as someone is driving the boat the strategic objectives in mind that you're going to go towards a certain retirement benefit you can have great flexibility in how you make contributions I have made these presentations a couple times in some cases people as a no I don't want to give my employees any more there or they're paid enough now is that pretty shallow shelf thinking yes it is because the government's going to give you in some cases a $0.56 on the dollar tax break so if you're putting in a lot of money you're getting 80 percent of the money going into your management team or to the ownership group or 90 percent why would you pass up that kind of thing when I show this to high income business owner and I show them that 10 percent of the money going in or 15 percent of money goes to their hardworking very valued employees they look at me and say where do I sign you know this is a great deal I'm paying less taxes giving some of that tax break to some of my employees and some amount makes me feel warm and fuzzy that I'm helping create a retirement. Plan for my employees and I'm going to write a check while I want to ride to people I like and I work with and I enjoy their contribution I want to I want to give them the benefit and guess what the term rate goes to 0 nobody nobody leaves you because they love you think you're pretty cool because you're caring for them in a family which which we are and so you want to lock in handcuff those employees to those desk because they're there contributing to you in a big way so why not and reach them and give them reason to like you even more recruitment and retention is a lot of what we do employers are really looking out to keep the best employees and keep them on staff and usually we couple any kind of retirement program along with a deferral program like a 4 A one K. Or a $43.00 B. Plan where the employees can put in some of the money in the employer put some in the money and then you have Social Security so it becomes this 3 legged stool of retirement where the 3 different sources of money are there and so you can have a secure and valuable or just so you set up to structure our firm actually helps manage the underlying asset we get to pick where we want to put it was it whatever the vehicle is it doesn't matter but your firm sets up the structure does the actual studies on the age of your employees so it's a little bit of work to get it started and there's some paperwork which most small players take but you know once you get through the initial stage of spending a couple hours setting up the zine work that your firm does and your actual team conducts all those studies that's just a matter of making those deposits are not making those deposits over the many years that you're participating there oversimplify it you know when you get a firm like permanent benefits what you get is team of experts that are retirement plan experts and in order to be a good expert you've got to be one part payroll expert one part labor law attorney one part of a sitter anyone part of best advisor one pipe communication expert and oh yeah by the way you better know something about retirement planning to so when we come to a small employer they're basically outsourcing all those technical details to us we're setting up a trust that's that's overseen by the governor. And the trust has its own tax form and income statement about it we do all that work so that the employer all they have to do is make their deposits and communicate with us and sign their tax forms when it's time it becomes something doable affordable and you'll feel better about doing it given the government's need to make things complex there's a lot of forms a lot of reporting you have to go through and then you follow all the appropriate forms every year on behalf of the employer with their participation their signing and so forth but to spend a couple hours a year to save your example up to 56 percent if you're at the maximum tax bracket that seems pretty nice trade off what you say I do most of our plan sponsors are more than willing to do the little amount of work that it takes course we go out with your team in this plane their produce Sherry duties and have meetings with them annually or whenever needed we do a great job of making sure that they stick to their guns and do the right things to make sure that everyone's retirement is protected these plans are also usually insured for against fraud and dishonesty so that the participants feel very secure that 1st of all they have a 3rd party like us looking over it they have the government looking over it and then it's all insured we had a recently a business owner die he was married to a nice family even talk to our listeners a little bit about when the principal dies this money that we're talking about has a beneficial designation and it's got all the it's all buttoned up we're all going to die someday hopefully not too early in our life but from a successor planning all that's built into these plans as well it is the money doesn't go back to the government it doesn't revert to the company it actually belongs to the participants and beneficiaries and speaking of beneficiaries for all of you out there that may have gotten divorced some time in your life please go back and change your beneficiary forms the worst part of my dad is one of passing by the distribution desk and someone's yelling at it at you know and what do you mean the hated X. Gets all the money that can't be true but that's the doesn't need to beneficiary so go. I had make sure that you've changed all your forms if you have any kind of life change but yes the beneficiaries do get the money and if money hasn't been paid in taxes and it's a taxable benefit taxes are going to be need to be paid and you get the net any questions for Stephen Dobro give our offices a call will be glad to pass that question on to him and bring him into the circle so we can get his actuaries and his team to create a plan for you give us a call one AAA plan wise that's 18 P. L. A N W I S E 7 I appreciate very much coming in today and I think this is so interesting in this beautiful state of California we love to live in but it is the highest taxed state in the country as you well know in fact of California was a country we'd be the 3rd highest tax country on the planet are we proud of that Stephen Wright so you're the antidote to some of that and I think we can with some participation legally as you've mentioned the government would love to have us all be much more prepared for retirement so Security checks not going to make it in the Bay Area is it it is not the biggest determinant of retirement is how much you put in now and not how much you earn so you put in a couple $1000.00 so it's a pretty check is nice in Arkansas but doesn't go really far in the Bay Area so give or obstacle we'd be glad to set up a plan for you whether you have one employee or a 1000 we can demonstrate to you in real simple arithmetic how the savings are phenomenal and exponentially if the mere compounds were to see even Thanks so much for joining us that Iraq. Is your retirement plan actually structured to provide an income stream anough income you can count on someone who can help you answer that question is financial advisor Pavel Tucci as you think about retirement your goals may have changed now you may need to protecting grow your nest egg pack can help you get on the right track for retirement if you're not working full time now or sometime soon you need to make sure your income stream will carry you through your lifetime. This helps folks with their retirement planning for over 30 years but Tucci and Associates has offices throughout the Bay Area. Call for a complimentary retirement plan review 804728305804728305 or check don't invest in Forget dot com The Tucci and associates 804 $72830584728305.00 or go to don't invest and forget dot com $80000000.00 baby boomers are heading into retirement at the rate of $11000.00 per day and that means an incredible opportunity for you to invest in senior housing Wilson investment properties is proud to present Paradise Valley a new elder care facility development in Fairfield halfway between San Francisco and Sacramento Tom K. 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And only a scale after she confirms you can then say Alexa play him $1220.00 Kato Kaelin that's all you have to do it Alexa will learn how to find it so you can listen to us so your Amazon echo echo show echo dot amazon tap devices Alexa What's your favorite radio station that sees a 20 K. D. O. W. . The interview. She was with us check out the loop on demand feature at pay deal W. Dot bit where you can download podcasts of your favorite programs and your programs on demand at J.P.L. W cockpit's we approach your money issues from all angles. And. It's money 2.0 starting at 6 on the various business leaders am 1220. I'm Tom Busby see N.B.C. Steady as she goes That's today's message from drone Powell the new Federal Reserve chairman to Congress saying gradual interest rate hikes will be warranted as long as the U.S. Economy continues to grow and on Wall Street that eased investor worries about too many rate hikes this year and stocks soared higher the Dow up $347.00 points the Nasdaq up $127.00 noted investor Warren Buffett will retire from the board of directors at Kraft Heinz later this year Boeing said to be nearing a deal with the White House to supply 2 new Air Force One Jets meantime nearly $12000.00 workers at aircraft parts maker spirit aero systems in Wichita Kansas just got bonuses that's because profits shot higher last year on rising demand for new aircraft and after just one week in theaters Disney Marvel's latest superhero movie Black Panther has now won more than half a $1000000000.00 at the worldwide box office Tom bus B.C. N.B.C. . To gain more information about any of the topics discussed on today's program call toll free 80472830 fun that's 80472830 fun and now back to your financial life time now for some listener questions by the way if you have a question for Pat e-mail him info at don't invest in forget done that don't invest and forget dot com Charlie All right Pat we have some questions from some of our listeners George now and creak and he's saying I have an old wife insurance policy I've had it for many years might there be just a better policy out there are there better ideas since people seem to be living longer George insurance world has changed a lot there are a lot fewer insurance companies so there's been a lot of consolidation that means lower costs couple that with increased mortality we're living longer so the mortality tables are more favorable. So he vetted 51015 years or longer is a great idea to revisit that policy and you can do what's called a 1035 and you roll over all the values just cash value into a new policy in most cases we can get more coverage higher face amount more protection for your spouse from your beneficiaries at a lower cost not always but frequently given those issues of lower cost than higher mortality we can get dramatically better coverage and sometimes double or triple and use some of that cash value potentially to pay the premium you should come into our offices and commit and talk to one of our professionals talk to me as an independent firm reply to you with every insurance company in America and we'll do some illustrations and come back to what some recommendation is longer hell 1000 change you don't want to dare touch that policy you're held as material in some way shape or form have some condition we need to stay put because there is new underwriting. You've been listening to your financial life with author and investment advisor Pat to gain more information about any of the topics discussed on today's program or to schedule your appointment for a no obligation financial plan tune up at one of their offices near you call toll free 804728305 that's 804728305 or go to the website don't invest in Forget dot com vets don't have best and forget dot com or call toll free 804728305. Program gets a great Roberts not affiliated with meticulous O.C. It's a permission provided for Illustrated for only does not constitute investment tax or legal advice information obtained from sources reliable but accuracy and completely not guaranteed it teaches associates at the level of the for information discuss consult with qualified investment tax or legal professional prior to taking action. Securities and advisory services offered through United players financial member FINRA S.I.P.C. Associate. and united planners are not a filling it it so how are you enjoying this a latest stock market a rollercoaster ride you've word to along into hard to let market volatility in a tired old spend down strategy rob you of your retirement savings david j. Scranton post of the income generation television