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IRA Urban Legends

Finishing Well / Hans Scheil
The Truth Network Radio
September 15, 2018 8:30 am

IRA Urban Legends

Finishing Well / Hans Scheil

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September 15, 2018 8:30 am

An urban legend is an often lurid story or anecdote that is based on hearsay and widely circulated as true. This week, continuing with the theme of urban legends, Hans and Robby discuss IRAS.

 

Should you wait until 70 ½ to take out any Required Minimum Distributions? Doesn't this mean you pay less taxes?   Does your Last Will and Testament drive IRA distributions at your death?

 

Listen and find out if what you’ve heard is true!

 

Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on CardinalGuide.com for free!

 

You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com.

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Welcome to finishing well brought to you by Cardinal.com certified financial planner Shiloh best-selling author and financial planner helping families finish well over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started with finishing well once again were on their own style.

We talked last week about the actual definition is like the myth of the lot alligator you're so, so, that being a mythical urban legends or any doubts along those lines, and unfortunately when it comes a lot of these finishing well subjects we talk about here.

Every week there some swamp grading sewer drainage basin as well. I have clients coming in just accepted this stuff just like that except the gospel just this is a fact. So we got IRAs as well and throwing it out there for centuries and getting people to buy onto alive once they do essentially come in conflict the kingdom of the king was all about. I'm finishing well over share some truth about 11 legends when it comes to IRA or your will that maybe a 401(k) there right so I was thinking but sure is she one of the gifts that you get benefits from the government is to not pay taxes on this 401(k) money or IRA mind about the amount he put in their and the growth that your whole working career, your retirement, you you you you postpone piano. Boy did he postpone income taxes till retirement day people predicate And the accumulation and rights of the legend is kinda isolated that the urban legend of the Leibniz pervasiveness that incites thing is that if I don't ever have to touch my IRA money till I die. That's a good thing that would mean that I never pay tax on. But Jesus might have a strong word for Jan about Eunice torquing the environment to live your familiar that story but anyways ever played Monopoly right here wants to play with a guy who wants to stockpile his money and never buying property, never buying a house and buying hotel and that's the plan you select key that money that is there and that was it is a resource that can be looking about for your family and clearly for the kingdom of God and so you know that's that's one of those really pervasive legend absolutely so people go through and they come in to see they go through their own working career.

They never paid a dime in taxes is magnified their profits during during high high-yield areas. It's also magnified their losses when the stock market suffered a bit but overall people are really only meant so much.

Think about it until it's time to pull some money out now and I think that some of this is read back to people really never see themselves taking money out of that when they do take my thing other company contact so it's a little bit self-effacing. If you're coming in for retirement planning. The way we see your IRA money is one of your resources is there to fund your retirement and buy houses and hotels help you get around and also buy groceries and taken by vacations taken by rents you know it can by assisted living costs that they can just buy things that are necessary for expenditures beyond your Social Security by saying things that the old-time pension. I there are taxes being part of that planning and were manipulated in the show there is a way to take advantage about no taxi and be able to advance the payment is a good planning time]. So that's the urban legend number one, but I got it. The urban legend number two discount actually freaks me out even more than number one and number two is just real simple is the will. My will is going to determine who gets around my or the clients will last will and test last will and testament is going to determine who gets what any claim IRA money so love people are of the mindset that they have a will and they stipulated gets what, that that's is actually going and so there's the terrifying business to save it. I'm sure some you unmask $200,000 in this Iranian menu you went with a big barn strategy and then use that money dedicated in any way shape or form and he just kept it in. Matt Martin, your wife was gone like Jesus said you weren't rich toward God. Either you or which started making sure that everything sort of in you cassoulet right and you think if you will assess your gimmick to get me on the siren money and let's please give me as I would buy the tax liability is still bill that I found damage assessment But the problem is is that an IRA does not look to the will is the need will distribute and it happens long before it will is IRAs have a thing called a beneficiary might like it. In fact, it doesn't have a beneficiary does not absolute. Every IRA has to have 401(k)s you can name your state is that some people are foolish enough to do list and stick your IRA money in programming, but so so if you have your state name as the beneficiary and then you have your son, like the example you gave is the beneficiary of the will sure then then it will work out the oatmeal. He'll eventually get the money, but he'll have to pay taxes. He wanted to have a choice because IRA with Irish persons dollars to distribute the wiring of the state. So the point I'm getting making here with this is that people pay the will drives, distributions, and that really kind of all assets of the will drive some of but anything that has a beneficiary of the name on likely like an annuity like an account with a transfer on death which is effectively a beneficiary designation or an IRA asked him beneficiary members written on that line unit was written 30 years ago me the scenario you just gave let's just say for a minute that you're my son I'm the dad and let's say that mom's deceased, but she's still the beneficiary on my IRA. I put in there. 30 years ago there was agonizing side of work in beneficiary and of course the timeline is gone and we did the will name you but the IRA still says her first is Raymond he would've been a whole lot better if you don't laugh so you got something that already been probated. Maybe years ago her state right that the real sellout you are sure then if you're not the beneficiary of her estate.

She's got By previous marriage. You got everything sounds out there and just like I think Jesus said in the parable that you lose the money you got to get you started. You were talking about very simple things here like money on an IRA.

Somebody passes away, and money. Beneficiary is simple things, but they become real complicated with people hesitating tentative dating. What all and that is if you have a good solid, knowledgeable, professional plan and lawyer that is looking into things you just cannot counseling him we do retirement planning. We checked all the stuff we go through every beneficiary every everything we just check it off tempted to make sure that whoever whoever you want to get the money is name analysis and select a certified financial planner optimist into finishing well certified financial planner on child Rocky bicarbonate guide.com in their book the complete cargo guided 24 living in retirement is available at their website, but this chapter that were talked about today on IRAs on the seven ratio similar Data to find a whole chapter both in the book and the book on IRA distributions of this kind of things that would dispel the best company in the truth that will set you free.

In this case free to spend that IRA money and in a way to make sense and it's all there, but I still eat meat again this is a lot to do with your heart, Hans is to get the truth out there so people can make informed decisions and actually Satan can get in there and steal the money for uses that you really have no intention if you want a copy of the book must see his book your web website program guide.com you can download like today's show the chapter for today's show about the book in the workbook be downloaded free. You can also get Amazon to find the book on Amazon is very expensive both in the Kindle version of the paper is a dollar 90 97799 if you want to put a paper book and if you wanted to get a copy of "free you can just send me a message and cargo guide.com the stone but offer and you give me your address and I'll mail you a paper copy. Give your email address and I'll shoot you a copy of the number of digital music he heard a shower today and thought my how I need to get this to my friend. I have friends thing about this or I gotta get my relatives always think the podcast every ship out dated 29 show all their cargo guide.com you can look at that list that podcast anytime you have time to seriously focus on right now you might be driving while I need to really think about these Of the podcast and that that's that's available anytime but also clearly call Sgt. website back or finishing well. We hope you are enjoying finishing well. Rocky bicarbonate guide.com is a cardinal guy.com for free downloads of preview shows including episodes about Social Security and Medicare.

IRAs long-term-care life insurance, investments and taxes as well as Todd's best-selling book, the complete cargo planning for and living in retirement. Plus the accompanying workbook. If you want to follow along with today's topic download free PDF cargo guy.com by going to the seven worries tab of today's show topic to scroll down to useful documents once again for free resources shows going to get Hans both the complete cardinal to planning for and living in retirement or the workbook go to Cardinal.com you have a question, comment or suggestion for future shows. Click on finishing well radio show and send us a word.

Once again, that's cardinal.com cardinal guy.com now back to finishing well by cardinal guide.com as well. Certified financial planner and child. Today's show were still clear the swamp of the parents actually urban legends and gators and observers. We discovered a couple of minor IRAs in the early part of Cellular is quickly urban legend number one is that wow I want to keep as much money stockpiled in my barn as I possibly can until I pass away my way out I can kick back and take it easy. Clearly, Jesus spoke about the second one which is actually just really makes me want to cry. Is that my will takes precedence over the beneficiary on my IRA so if I got a window last will and testament and it says that the monies going to my son, but the beneficiary of my wife that my wife is being the bishop beneficiary takes present in that's accident happened long before the lives even probated immediately upon my death, like you're not Rocky Junior year and get that IRA money and humidity compared to the text annotations. So what should I do about this and that is there is a soul doing the second one first is when you're doing retirement planning are you retiring are you doing this yourself. Get out every financial account that you have known again as can be your IRAs life insurance policies and annuity policies any accounts that have a transfer on death or TOD provision on Like a beneficiary and we want to see who their name a lot of places on the website is can have an area where you can look this up this early honey can call and then they all have a change of beneficiary form so you need to read that thing on every we do this for people with financial plan and get all that stuff out and that needs to be written exactly who you want to get that money, because that when the financial institution gets a certified copy of the deficit sent to them there is to make out a check to this person and not just listening to this information is as we can glean from when many counselors plan succeed on my goodness there's so much at stake here on my passing not just obviously my fiber of my 401(k) if I got if I wanted us to expect my IRAs about everything and all sorts of policies and stuff can go quickly to my beneficiary to to the people that I want to go to if I really understand what's going on there and some attorneys. This is in their deal with the sanity like absolute make people that don't have substantial likely huge large amounts of money. A lot of times the only thing that were moving through will is there cars and personal property, and if they have a no homework some real estate that's that's going to go through the well that a lot of folks when they get up. Like my mother. We she was renting. She was in a facility. When she went and re-create research so we just had beneficiary's weekly didn't even have to program right the benefit of the beneficiaries were all will is the will was effectively through the beneficiaries of the coin is that just that's a mess and I guess a lot of people in trouble of receiving here every day, you have our act together on the beneficiaries then you get to the point of you really want to leave a lot of money to your son or your children through an IRA and the answer to that is, in the absence of leaving them any money.

Sure, but that's not the means an IRA with stockpiled money is not an ideal state is its play monopoly because that money was never used letter. The kingdom is also insulated essentially are hiding your talents are very well united CD FmHA is that your kids do have a way stretch out the taxes again and I can teach them all that and some people may want to utilize it, but it relies upon them wanting to do.

I stated most adult children when they inherit these IRAs month-to-month and so there are more than willing to bake 40% of the spent tax just so they can keep the 60% use it on some like educating their kids are. You know something that retirement so it is not a good estate planning strategy.

I can tell you a simpler way, you can just like a simple strategy we use the some people is the safest rent thousand dollars. We are SK Well we could offer you $300,000 life insurance even if the premium was $10,000 a year and you could just take a premium is your minimum distribution pay taxes on it said to the life insurance company and that way if you die the next. Whenever there's heavy $300,000 tax-free.

This can go to your kids so the first thing you do not have to worry about that, and there may still be some money left in the IRA so gets a little bit complicated. There are things we can do in planning. If you want to leave money to your children, your adult children that that was a city want mommy Mike, your church day is it possible that we talked about TCD on the show many many times and I know I need to get into the basics of that might initial question is can I set a life insurance policy paper that would like you CD that money would end up going to the church where you can do that with your TCD because that if the money goes from the IRA benefit view which is a life insurance policy you would qualify as a TCD so when you get TCD to send the $10,000 directly from the IRA to the church that access visits qualified charitable left you hear about the distribution for you is that eventually the church is the charitable that makes sense. So the second part which he said is still make sense is that many people to do this is the buy life insurance policy in the name the church is the beneficiary. Okay, now I get into a big class on that we absolutely can do that we can make it tax advantageous in a week we can set this just mixing together, these two things. The IRA TCD is the only place that our problem that flashed across my fabulous talk about TCD for a second and so the TCD qualified charitable distribution lot of folks over 70. Don't even realizes so get money through tithing is recalled due to the church every week, every month, all year long.

Now it's 10% and were doing that. Typically with after-tax money and you don't get the benefit of the tax deduction retirement because usually we don't have enough we just take standard deductions, especially the new tax law so people going along taxes not really affected, getting they just give it a given.

That's a good thing. Most of them don't realize that we could take the minimum distribution that you required to take that maybe angers you that it's gonna pay taxes on money don't mean we can just donate that directly to the church were distributed to the church you would have to pay taxes of the church and get more or we just given the same amount as you go with after-tax money. More money for you and there's a lot of ways to skin the bottom line is the church can receive money from an IRA qualifies as a minimum distribution without paying taxes on it.

It's a wonderful benefit that most folks are aware email us a call. We have been taught so I sent I want it sent that from my church.

I can I can do the qualified charitable distribution and send that money to the church and that probably saved me say it's a fairly large terrible essay saving $2500 a year in taxes. I could use that 2500.

I say thanks by life insurance policy and when I died. Now that money, evocative character submissions are just all kinds of things to expand the kingdom.

Yet anyone with when we get into charitable giving. We we got all kinds of options just it's it's it's really necessary to think through August and to always keep a constant size. You gotta keep this money under your control.

Some of it until you leave this world because you may, if you need the money.

You may need the money to help children you may need the money to help your microsurgery or whatever those are kingdom things you're not really interested in.

I want to make sure you're taking care so that's our story money up in a barn that's being wise and using your money.

Realizing that God is love as well tell you now is not a matter of him getting all the money to church and I can take care my own existence complicates not taking care of yourself is fine. Really what he wants you to do right planning for what what what I wanted to say here is the first urban legend words bad to distribute from your IRA. We want to distribute the net.

The minimum they just want to make this point is is that when you retire.

Whenever that is. And when you're in need of money beyond your Social Security or not working or not earning enough income to live off the best picture IRAs for is to supplement your Social Security. We have a big IRA and so taking money out of it and paying the taxes and then living off of the balance just ties into which Jesus said is is inherently good, even if it's before 70 1/2 or even if it's more than the minimum distribution after 70 1/2 so the point that we do employment then you got the other prong. Once we get you there on distributing good, then we want to be careful that we don't distribute too much because we don't want to run out of money when were in our 80s so that we don't know how long gonna live so I'm just back and try to solve that problem in the very end of the show. My point is we can deal with all these contingencies you have been listed and I am enjoying finishing well with certified financial planner on file is fronted by Cardinal guide.com you just can't put them Cardinal got back on the output. Cardinal guide.com and narrowly defined the seven were a chapter where you can download all he could talk about is imagining the Cardinal guide.com is not always show if you missed part of the state want Bonnie to know more about that great list of podcasting Cardinal guide.com we have been draining the smoke to spend five units with. We hope you enjoyed finishing well with you by Cardinal guide.com visit Cardinal.com for free downloads of the show or previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows when you get Hahn's book go to Cardinal do I.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal guide.com Cardinal guide.com


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