Mike Canete, Mike, Fred Taylor discussed on The Savvy Investor Radio


Also? Rebalancing your portfolio to bring that dead money back to life and get it working for you. We're also going to hear from Fred Taylor. He is a former Jaguars football player who lost a whole lot of money. And Mike and Ryan's job today is to help you not do that, but to help you grow, keep and distribute your wealth in the most tax efficient manner Possible. Mike Canete, Ryan Herbert, How are you guys Welcome. You know we're doing wonderfully and that is a rather large amount of money for him to lose millions millions of dollars, and we're going to talk about that and hear his story here in a little bit, But you know what we really want to focus on right now is taxes because now is the time. Really to be doing that tax planning, you know, income is such a big thing for people, and we understand that we're going to talk about that. But taxes that seems to be the hot button now for a lot of people, and they called the sweet spot in retirement. And that's during, you know, after you retire, and before you have to start taking your rmds You have more flexibility to control your retirement taxes. But Michael think he is a professor at the American College of Finance Services, he tells Yahoo finance this. The important thing to remember is the right approach to pulling money out of your investments is to leave the most tax efficient investments alone till the very end. So something like a Roth type of investment or even money that's sitting in investments within a taxable account that has significant significant capital gains. Those are the ones You want to touch last? And you want to think about opportunities to take some of your 41 k assets early as income when you're in a lower marginal tax bracket before those R and B star King again, Mike, Can I see you there? You're just ready to get in here on this conversation. Do you agree with Michael? And you know what's the best way to take start taking that money out now? So I gotta tell you, I mean, I hate to say that I grew some kind of, but not really. I mean, right the but the problem is, it sounds like there's a singular approach to take right and the real Polity is that unfortunately, most of the Software out there that we see nowadays, when people are bringing us these plans that other advisers have put together and you know, we're just kind of comparing apples to apples and theory. Most plans do exactly the opposite of what Mike says you're supposed to do right. So most plans use all the most tax efficient money. First client. See, you know, we're looking at these plans that have been presented to them. And they see that in the 1st 3456 years, paying no taxes and to Michael's point It's silly to these tax rates to pay zero taxes were the lowest tax rates we've ever seen in our lifetime. So from my perspective, you absolutely like, Michael said. Want to be taking advantage of the tax codes we have in place today? Because we are at a lower tax bracket. Then we probably will be in the future. Certainly 2026. We know taxes are going to go up. That's just the way the tax laws work. There's a sunset provision in the trump tax cuts, they go back up in 2026. Now, if you are a true believer that Trump is going to get re elected and Extend out the tax cuts and they're never going to go back up. Or if you think that Biden is going to get reelected, or whoever the next president is. If you think these tax cuts are going to continue into the future, then paying taxes today still makes sense. If you think tax rates are going to go down from where they are today, right because George Bush 7.5 trillion in his eight years, Obama 8.5 trillion in his eight years Trump 6.5 trillion In his four years I have all the confidence in the world that binds going to put another 5 to 10 trillion on the deficit during his four or eight years. Whatever it happens to be, I had equal confidence that both sides of the aisle are bad. Stewart's with our money, and to me, that means taxes are going to go up. So what all Ryan and I do? 100% of our practice is all focused on It does not make sense to me 20 to 30% right off the top when you're going into retirement, and that's why we have this special invitation for the next five callers that have said at least $500,000 or more for retirement, because that's truly where the tax efficiency of these plans. Is really shown I encourage you to give us a call 866597 10 48 66597 10 40 sit down with micro myself personally and well, put together your own. Complementary retirement income tax analysis 866597 10 48 66597 10 40 House to hold the radio college just every day he had come into the office and it was amazing. He had this huge plan is advisor told him do not convert into Roth areas. It doesn't make sense to convert to a Roth IRAs. You're gonna have all this money left over doesn't make sense to pay taxes. Don't do it. Don't do it. Don't do it. We keep doing lower tax bracket today, your arm. These aren't going to be that bad. Don't pay the tax bill and and right and I sat down with him and we took a look at it was said, you know what 100% disagree. And here's why, if you pay taxes the way your other advisor told you to pay taxes right? He used some software. The way he told you to pay taxes. It is true that around 85 years old, your tax rates will go back up again. So from the age you are now from 70 to 85. It probably doesn't make sense. But from 85 on, it's a great idea. So, yes, we are planning an age game. We're playing a numbers game, their life expectancy game there. But you've already told us up front. That is very important. Part of your planning process is the legacy plan. So when we ran the numbers if we did the tax planning that Ryan and I suggested we were saving him in his Children and his grandchildren because we did a plan that incorporated three generations of tax planning, right? We gave him tax free money for his lifetime. We gave us kids tax free money for their lifetime. And then we gave his grandchildren tax free money for their lifetimes. I mean, we're talking about three generations of tax free money just between him and his Children, not his grandchildren, but between him and his grandchildren. We were able to save them $2.78 million in taxes. And that's assuming tax rates. Don't do anything that what we already know they're going to do 2026 we go up. We know that we know it's 72. He has to start his rmds. We know that look all things being equal if he spends all his after tax dollars now, and he's always Roth IRAs. Now by the time he gets to be 85, it was a good decision to do that..

Coming up next