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IRA Updates

Finishing Well / Hans Scheil
The Truth Network Radio
September 21, 2019 8:00 am

IRA Updates

Finishing Well / Hans Scheil

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September 21, 2019 8:00 am

This week, Hans and Robby take the show on the road. Hans is in Dallas at the Ed Slott Elite Advisor group for voluntary learning about everything IRAs! Learn about all the new updates to IRAs as well as taxes, distributions, and beneficiary forms!  

 

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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You're listening to the Truth Network and TruthNetwork.com. Welcome to finishing well brought to you by Cardinal God Certified financial planner belonged to Schild and 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.

Boy do we have a treat for you today on finishing well with certified financial planner hunch tile. He is live on location in Dallas Texas at the ad slot convention. Oh my goodness this is huge and homes will come out twice a year. Part of it slots masterly advisor group, which is something we just make a big commitment and were going to spend 2 1/2 days twice a year studying IRAs without slot live in the look group that he brings down and it's very educational and it's over with.

She is like America's expert on IRAs, ESA, CPA, and so really this is this is a really expensive program for you but you've committed to it for years like you have a minute heard about for years in you know I just I think he still charge about the same flowchart is $2000 to come to a two day program for professional teach you everything you want to know about IRAs and really the application of them or the application of the knowledge you have financial planning practice and there's a bunch of financial planners like meat year there's estate planning attorneys that are here there's tax attorneys that are here there's insurance agent as a whole mix of people and that $2000 thing just is the same thing over and over and over again any updates it then beyond that, you can sign up to be one of his groupies which I am and you know when we were committed all year long and run webinars studying I guess it wouldn't be where bunch nerds that I'm not sure this program would be as interesting it is to me to just the general public is really cool and so we come out here. Make a commitment that I just excited to hear everything that he has the same teachers. So when I thought about this for today shellac. I couldn't help but think about Proverbs 4 and interestingly I have read this in the message version of the Bible. And so now as you are. Listeners are thinking about what it is that that Hans is doing and what you find out today and today show. Think about what Proverbs 4 says this is verses three through nine in the message and and think about this from a standpoint of this is Solomon talking about his dad, which we know was King David and his mother, which we know was Bathsheba. So here goes. When I was a boy at my father's knee. The pride of joy of my mother.

He would sit me down and drill me take this to heart and do what I tell you and live cell everything in by wisdom forage for understanding.

Don't forget one word don't deviate an inch. Never walk away from wisdom should guard your life lover. She keeps her eye on you. Above all, and before all do this, get wisdom right this at the top your list, get understanding.

Throw your arms around her. Believe me, you won't regret it and never let her go. She'll guard your life, am I mean what Solomon was saying is it when you come across some wisdom somewhere this this stuff is is the stuff that brings life and I don't want to anybody to think that I this is about the Bible that this isn't about Jesus.

That's that's the wisdom it's clearly Solomon is describing here but from a practical standpoint when you find somebody in your profession that has wisdom that actually can give life to other people because these are critical matters for people that are in the midst of tremendous suffering right Hans like the one family you're dealing with right now. It came from the radio show.

We need this wisdom for such a time as this overdue know I would like everybody to keep this gentleman in their prayers. Is there facing a ALF diagnosis on him. 63 years old and they can begin to get that confirmed in the next week or so but it pretty much looks like the ad and you know it's very serious and there lady in the family. She is gone through this with her mother. Better year ago. Their list of the radio show they knew they needed help from others and assisted living. They needed some help and I met with them a year ago.

We really were able to do much form of guided but Nancy called me up quickly and she said you were facing that and I'm really concerned about things that I'm in a be taking over matters and can we meet with you and I met with him very quickly and we spent a couple hours this week in. Come to find out. I didn't find that a year ago is he is a CPA trait. He has some dementia that that in still sharp and knows his tax often basing this awful diagnosis in their very very very much committed Christians in the know that this is in God's hands and no sitting with me. They they they they really want to work out the money of this, and specifically around.

They don't want to spend all his money for their money and most of their money is in an IRA in his name is main breadwinner and their racing, she conceded there I have to pay for some care to help her and probably some substantial care and you know she did say that they don't want to spend all the same and they're worried and then you know I pointed out to her that I'm worried about you know more than that.

Is there apprehension about saving on care and getting some help with circuit and that's huge.

And so, just a couple things you learn from it slot immediately come into play about life insurance and what it could be used for for long-term care as well as the IN IRA will yeah meet you know what to think, that it slot value and felt like. He didn't know but please talk about all the time in EE cleaning it isn't that life insurance proceeds are tax free and this gentleman is a CPA and the first thing I did when I was in their eyes first thing that I open around and just got getting all the documents and looking all think CME life insurance is a mystery here have life insurance and you are lucky enough he does get a $200,000 policy through the Association and I'm thinking that's wonderful because with this horrible diagnosis these keys back and be around it you anywhere from 278 years and you know that's very unfortunate he's in a best way. He's very concerned about leaving his wife, knowing what can happen to her after all this and she's very concerned about spending the money on care so she's gonna wind up doing all. So I pointed out to them.

As of this $200,000.

You know that's tax-free is a CPA. He did know that he was astonished. She's going to get that payment after you pass away, and they can be no taxes due. Just, you know, I didn't necessarily learn that from I've always known that, but it slot certainly waited it out yet. I I was not aware you know just how many people just don't know that I'll think you do that.

Did you run I began to snow here is the deal as I think about you know King Solomon in his wisdom running. The nice thing is, were not have the cell everything to get this wisdom or we don't even have to put in $2000 and five Dallas, Texas. We get it for FREE free. The other thing that you you you know to stop me know about this show is that the eyes dancer individual.

So this IRA that he has is not a family IRA but necessarily would be in until he actually passes away. In the meantime, this is an IRA, individual retirement account money yet.

Need it later stage avail need that power of attorney. They've already done the legal work with night that empowers her to make withdrawals from his IRA, which we absolutely are going to be doing to pay for care I'm not talking about medical care that Medicare group insurance or whatever paper I'm talking about coming into the home and helping with his activities of daily living. We she's going to be doing a lot of she's also going to start functioning as a nurse and some point here again she's got to hire some people to come in and do this or she's going to end up sick to an she knows that and what I was able to do as I say look working and we can spend up to $200,000. This IRA money is in his name on his care to hire a home healthcare agency do not have long-term care insurance. Yes So we can spend this money and we need to spend it wisely. Yet we need to you know when it times appropriate to give her a break or to do the heavy lifting here. We need to hire some people and that's expensive it's 2025 bucks an hour therebetween. If you're between 59 1/2 and 70 1/2 block calls that the penalty free zone meeting if you made a withdrawal before 59 1/2 are your IRA you have to pay a 10% penalty plus that and if you are older than 70 1/2 you don't withdraw the right amount, then you can pay a penalty for not withdrawing but if you're between 59 and 7050 Manhattan 70 and have all you have to do it at on withdrawals and that didn't look pretty very pretty to him as it is a CPA, but I explained doing that long-term care expenses, home healthcare expenses are tax so we can win through the gyrations of that so we draw on the year we draw out $100,000 to pay for care through ask him to create a big tax bill but then wouldn't be able to deduct.

We spend $100,000 on medical expenses. Essentially what they are is going to be a pre-much of an office that there in his biggest fear in her biggest fear is working drawdown this IRA and produce care and that's it. Rational thinking. Most of the savings is in an IRA but yet going to that monies can get replaced with the life insurance that can become tax-free. I had to jump in here that I have to for those of you just turning in your listing to finishing well certified financial planner Hans Schild today's show. You know that we talked about the wisdom of Solomon for FREE free. You can find this worry is on IRAs essentially and it's one of the seven worries on the tab. The seven worries to have a cardinal guide.com or you can just get the whole book complete cardinal guide to planning for living in retirement there at the website.

Cardinal guide.com go to break. We got too much stuff here from too much wisdom with me right back.

Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to Cardinal guide.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group contact Tom Cardinal guide.com that's Cardinal guide.com welcome back to finishing well certified financial planner Hans Schild. Today's show are talking about selling everything you got and get wisdom and understanding causes live actually at the Ed slot conference there in Dallas Texas gaining again more wisdom to be able to share with us what we don't.

Those of us who don't have to sell anything to get a Hans is doing that and then providing it is the out at this time of our lives.

You know, understanding all these different implications that the Ed slot teaches is just phenomenally helpful been one of the ones he always teaches, as I recall some cons is to check those beneficiary forms and clearly that would be something this couple needs to do right now absolutely. People do retirement get out every day fishery designation you have and by the way, you might not even know fishery good nation client coming to meet the week we get them all out on life insurance policies specifically on IRA beneficiary designation on an IRA.

So I just I peep sought out the beneficiary going on there and if you get a 401(k) there is one there and we find many times people have Those think update and that money the money after you die, or whoever the older guy. That money is not going through the will is going straight to whoever it says in the beneficiary so it need they need to be right need to be updated and Ed slot goes over this over this and understand our talks about at slot Sunday. Hope I get to meet them because you know you clearly from my standpoint, this is Sharon phenomenal wisdom that's can help a lot of people. Finish well but this essay says it rather forcefully, don't touch anything after somebody's passed away yeah and quickly get to retirement account which happened beware most people have a good chunk of your savings or other. Their investment during an IRA and he just don't touch anything community could just hear him saying that Jan felt like he was speaking to you right after your father passed away.

You are the executor and you know he's referring to how many people get this money. This an IRA distributed after death. That means that so when somebody passes away the money to go to the beneficiary, but you don't want to just start distributing it to you really get somebody that knows what you're doing with IRAs to advise you because once you get the money out of the IRA. There's no putting it back in the taxes are due whenever the money comes out on the whole amount, now. Yet we just have example after example, work, money gets distributed to the wrong person or to the right person that they didn't want it distributed the really would've preferred to have it transferred tax-free rollover and the net properly done, it can save it not on track and get this whole point is that you know it is often notified that one of his clients is passed away the message to the heirs's touch nothing and just don't touch the money until you can you get with him or with somebody that knows what to do another quote that you shared with me from and his knowledge is only good if it's applied CPAs are history teachers and financial planners look to the future I if if we don't look at the history of people that didn't do their beneficiary forms or people that did touch there in a history is an amazing teacher and we have the benefit of his history to to help us plan for the future. The point that he's making is like when it comes to IRA the general advice of the CPA only take minimum taking money that you violate the event that one of the point making with this, but it really agreement.

Thinking that the carpet on this sooner or later in you don't want to have all this money you got to catch the you is. Maybe you do. You don't want to have all this money away. You just taken the minimums were taken.

Nothing to drag 70 needed trying to avoid taxes you see.

Good job. You don't have any taxes due on any withdrawal that he or IRA. Then all of a sudden you need $100,000 and you can have a huge tax bill because you got all that money and up in the IRA.

This whole point with study and then looked down to the individual was blunt about and then perhaps we can get on with the plan get the money out of the IRA hated that and get it over here and nontaxable for people of our generation that enjoyed Woodstock like you pointed out, it's a whole different kind of LSD wanting a meaty good entertainer planet video without your and the anniversary with the 50 anniversary with last month in those same people that are running around the dance up there now. The people that are biometric development of long-term care insurance policies and trying to figure out, taxes are not paid taxes on their IRAs and the ongoing and he said what you now the definition of LSD lump sum distribution Woodstock and Mark unfamiliar with Ed slot. One is a now what is a lump sum distribution will the lump sum of systematic distribution in it it it it has some legal terminology is a legal term or HA institutional term which is to think about the money and a big hunk all at once, as opposed to taking up the money and little bits over time. That's what it wants. We don't use that word a lot, but people like us.

We know what a lump sum distribution and vocabulary. Funny thing with your new definition of the accident. LSD also and was the one I believe talks about the charitable distribution that that is so critical to the church or the decedent, qualified charitable distribution in one hour each for anybody that's over 70, you have to take required minimum distributions from your IRA. While people complain about these in the complaint about the taxes and you know what I want to make clear is you can money from your IRA and you can directly from your IRA to the church or any other qualified charity and it never shows up in your textbook, that's just beautiful. I think a lot of creatures new about this Stuart ministers ministry stewardship new really knew about the sleep you have in a seminar with the other retirees of the church, explaining how they can.

I researched tax-free. So when you hear that now there's the wisdom but they know what Solomon was running from King David was now you need understanding.

So, okay, there's the wisdom now, how exactly do that so it benefits me and my understanding is my understanding is that I would take money out of my IRA to make my ties this year because it going directly to the church I could take as a Q CD then have that other money that I would normally give to the Thai even to put in a Roth IRA or something else like everything looked which is right on the money go private home. Another you know I want you to my list of the radio. The goat UCP on their own and then all of a sudden you met up with that. So, get professional help, but note what amounts to the fate of guy didn't have a lot 70 1/2 old unity facing minimum distributions, or what will put them on a plate somebody within the situation we gotta do it. We had a dollar even got a possibility. Gotta get this thing done right distribution directly and then we thought maybe have to educate them on filling out the 1099. We may need to educate very and what we did. So you need somebody that knows what you're doing with the but you can just give money up to hundred thousand dollars and your person. So if you husband and wife. If you go Money and give it from both an there's no tax is better than writing it off the clock pointed this out to me Roth IRA and I knew this in the code but I think about the up the rule with Roth IRA talking with the law tax-free money and we could get into conversion. All I can, but for those of you out there that don't have in a Roth IRA. It would be wise for you to open one. An open one.

Now if you put something smaller than 100 bucks in their 4500 work just to put some small amount. Now you have a Roth IRA hope the reason you'd want to do that is that you start the clock ticking on a five year anniversary and beyond the time that you get a Roth IRA because if you later look politically put a bucks Roth IRA now and five years from now, or years from now. You do a Roth conversion of your regular IRA you got $100,000 in your law.

Put it in your four years from now you will have to wait five years before you can make it at three withdrawal from your Roth IRA where you started this thing now with 100 bucks. Five years start Quicken from the time you opened your first rough now, but I mean that's the wisdom that's coming our way because we have future episodes coming out IRAs via Ed slot.

Some thankful that you listen today I can to finishing well a certified financial planner Hongqiao. As always, we guide you to go to their website Cardinal guy.com you can get the whole chapter both the workbook and the main book. There the seven worries Which today show was on IRAs ponds. Thank you so much for all this wisdom and firm for gaining it so that we can get a little understanding. We hope you enjoyed finishing well you by Cardinal guy.com visit Cardinal guy.com for free downloads of the show previous shows on topics such as Social Security, Medicare, IRAs, long-term care and life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guy to planning for and living in retirement and the workbook once again for dozens of free resources past shows what to get Hans book go to Cardinal guide.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 guy.com Cardinal guy.com


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