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Finishing Well / Hans Scheil
The Truth Network Radio
August 3, 2019 8:30 am


Finishing Well / Hans Scheil

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August 3, 2019 8:30 am

In Matthew 5:18, Jesus says "For verily I say unto you, till heaven and earth pass, one jot or one tittle shall in no wise pass from the law, till all be fulfilled". In other words, God's law won't change in the slightest until the end of days. Similarly, the jots and tittles that name IRA beneficiaries are the letter of the law and will supersede your Will and financial intentions.


Recently, at a conference hosted by Ed Slott, Tom said he learned that a court will uphold your IRA's listed beneficiaries over the those listed on your will. It can be heartbreaking when mothers and wives who need that money to support their families don't get it but an ex-wife does. People often make the mistake of naming someone as their beneficiary at their first job and then forgetting to change it when they get married, have children, or their life situation otherwise changes.


Hans says most financial accounts, including life insurance, annuities, and investment have some sort of beneficiary you can name. For investments, this is called a Transfer on Death or TOD. Tom says most clients don't know this because these institutions typically don't provide these forms up front. However, these forms are available upon request and can be filled out quickly. This saves families a lot of trouble getting money out of the bank when someone dies; they don't have to figure anything out and can claim what's rightfully theirs.


Hans says some people make the mistake of listing the estate as a beneficiary. In that scenario, taxes will be due on your IRA all at once in a lump sum. This will drastically decrease the amount of money you may have intended to be left to your heirs. Robby says his own father labeled a trust he wanted to create as his beneficiary, but that trust was never actually created.  


Tom says most people want to focus on IRA investments but, in reality, IRA taxes are by far the most discussed issue by experts and will affect heirs the most. Hans says while the goal is to minimize the taxes on your IRA, you will have to pay some taxes in the future no matter what. Consumers need strategies on how to manage their IRAs and advisers need to be informed at risk of malpractice for poorly handling these accounts.


Hans says he knew of an advisor who had failed to transfer a client's beneficiaries when he switched jobs. As a result, when the client died, the money was left to his estate and virtually wiped out by taxes. If the money had been left to the children as intended, they could've stretched the IRA over their lifetimes and greatly increased the amount of money inherited. The adviser ended up being charged with malpractice.


Tom says that while Roth IRAs are a great strategy when appropriate, they're not for everybody. Your retirement plan should be highly individualized for your situation. For some, Roth IRAs don't make sense because you can still make a lot of money and stay within lower tax brackets.

Also, at age 70 1/2 you can donate up to $100K of your minimum distribution to your church or charity without paying taxes.


Don't forget to get your copy of "The Complete Cardinal Guide to Planning for and Living in Retirement" on Amazon or on for free!


You can contact Hans and Cardinal by emailing or calling 919-535-8261. Learn more at  



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Welcome to finishing well brought to you by Cardinal God Certified financial planner belongs agile, 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 as you are again and how the concept of what I say word IRA job until I guess that some part of that you today. If you look at Matthew five Jesus is saying is true, as I have you to heaven and earth will pass away and not one job for now on earth will pass away, so it's accomplished and so Jesus his letters, as they say is God one little sleep. No way. He is the truth when it comes to our work as your beneficiaries are the best time got a 401(k) data IRA on all beneficiary and you have one jot down his life. So you know anymore. That's a little all right conference in the DC area.

You are learning all about IRAs claims that he did with one of the biggest thing over and over again is that is essentially the letter of the law is on that form is what is best viewed in verse 1400 M private letter private letter ruling from the IRS. So here is where you, the person who really do appreciate guy is not listed on the form and that person just did what is and sanity. My philosophy is situations where no mothers and wives questioning among things like that was constantly vitiated as will so so person passes away beneficiary or the executor completion form to the insurance company is a financial institution beneficiaries named in on that claim performances you state is a beneficiary of long before his face so close think that anything written or will result in the not so recent past. Just they think that whatever designation I left her everything. And well I left Cameron up against and if they still have beneficiary designation.

They fell out four years ago there were 20 years or life insurance all beneficiary designation institutions.

The payout is that starting job use out of it. The five where is it going so that I know beneficiary is psychology beneficiary you believe itself is the time I lost a leg on what he actually said the beneficiaries I have not possibly on your savings account possibly under possibly all your financial insurance policies related insurance policies and fisheries know when you get a savings account for an investment account because of job is as follows TOD a transfer on death which is really the same thing as beneficiary don't call a lot of banks and stock brokerages are just really not in the office, rarely refined AND plan to suggest plaster duties and heartwarming, although the company is often a form it's not something that some appetitive something that they have been from you. Things might go out have available which are searching for just makes things so much easier when someone dies not having to figure out how to get your hands on dealt with a lot less how hard it can be even exit that I view probate in order to meet with the clerk of courts and negativities letters attest these letters and then you go back to the bank.

They start is not easy for comparative bankers five minutes to say hello. UNICEF is continually transfer on death and that staff would not go through probate go through. This is just the options that we alternate. This is somebody in the HR position sounds for the state you set up your IRA again estate your estate is your beneficiary. Guess what: taxes are due, as he states that a person like my house insurance to entrance as he never opened. So when I also found myself in the month assessment allows additive trust.

One little challenge trust and time is now.

This is just one small step we take, we serve clients to get everything as a beneficiary is related to transfer personal care call the company and ask them what is said to tell us is just regular. So get back to some aspect of this conference of Washington DC so where was it.

Why was it who wasn't white wine and we go pay a lot of money.

This is slot is often referred to as Iran expert country and he was going through really talking about all the planning needs to be done around his parents is today. Today conference and all he talked about was thing to you should you desire diving really deep into planning specific to IRAs, which is different than most any other financial things out so this is all being of the whole thing is you have to pay taxes close really had thought about the general sense most people know you have not pay tax on the money again must 401(k) or IRA unit is pretax money and I'm gonna have to pay taxes in the future, and so his thinking is just passively managed to Salt Lake to give my job in taxes already think you're just coming people a lot of money in there until you die, except IRA is not a good statement so so we went up there just because we wanted to hear everything Scott saying I find it hard it is through reason, Michael is slot 78 years for days at a time. So I brought two associates of Ignacio's number again. There is I let myself to see here is basically all over again this thing is you need a strategy of your server and if your financial advisor was shocking to learn also to read some of these cases. He put some of their advisor malpractice where they're doing things were filling out beneficiary forms filling out tax forms doing minimum distributions are not doing it is states that so we went out there for the training and we don't really want truck passed all his training on the listeners so much as we wanted just cannot couple points that walk away with. And, specifically, where his first exposure to this and make us personally where I can try and teach all his knowledge want to assure you that we again more knowledge through using utilizing thought and slots. Partners in the subject is very IRAs and so this information for free obviously are 87 words that I free PDF of that chapter book which a lot of this information is absolutely wonderful. You can start to compensate workbook solitaire on IRAs. You just send us a message last charge.

If you want to remain anonymous if the situation is very expensive to get a hold of her books.

You get to the Amazon spot Col. got your alternation provisions and we come 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 Hahn's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security data care and long-term care.

Just go to Cardinal and contact time to schedule a live recording of finishing well at your church Christian or civic group. Contact time to Cardinal that's Cardinal welcome back to the today show IRAs like to learn and grow. We can all learn. I think individual is my but also you know, just come back from this conference, I think it's absolutely amazing what the purpose of the conference is is is not what most people will IRAs about what people really need rather than assuming churning. I think when most people you talk about doing IRAs immediately jumped to the investments are held inside of me were talking about his comments had almost nothing to do with the investments inside Gary election invested much Picture. It was all about taxes, locations, and how best to plan around it so it was not investment planning is really around what to do with these IRAs earlier.

It is different than eating a family. There's a lot of special rules to also contact/CPA is attached as I was 30 years and his specialty is the level that they start even as I walked away with his make one mistake make one wrong move or 56 different areas do not fix that is a lot of times those mistakes, like the person that in the back. As I given their individual retirement account. You can't change individually what you see, you no longer there and make changes so personally when mistakes are found after someone passes over some of the examples you gave us is 50 court cases private letter rulings from the IRS just got this book but I want to just take out want to talk about one case, there was fire and there's a guy has IRA money that he had invested in misusing someone to manage the money and that advisor is managing money to another company was managing elsewhere. He brought the client along with savage terrible in that process, the government beneficiary forms play second marriage is and everything signed years later he dies of cancer is fisheries, help settle everything will beneficiary form is estate is listed as well. Now it is well and you can with the problem that in the biggest pain and beauty to the estate's problem is one of the benefits of leading to. As an individual person's stress that IRA out there like it would take a little bit each year resident writing on paying small impact on its lethal estate left to something that's individual person to get out of her fighter. Imagine you have several hundred thousand dollars in his IRA by finding out over five years is a lot to pay on your city taxes and the New Testament from the sacredness of this case is stable and generally will do that. They spent all taxes once and where it's lacking. He was called as an expert witness for the call him up to go there and testify on behalf of his advisor and he never did testify cigar yesterday just as a fatal mistake in winter malpractice just I can say something like 500 clients over firm may my new firm be just nothing to do with it has everything to do with your financial arrangement with the firm you're doing this alone is a lot of forms and a lot of signatures to see somebody in the back office is staying out of just simplifying forms and client sample 500 people signed figure out some way. Say springs out of necessity of treatment. Beneficiary form beneficiary designation was real real change in this strategy, taxes had left was converted terrace contact shows the best strategy beyond getting beneficiary will adjust. No, the Roth IRA is tax free rescue life tax-free.

Thomas Bennett argued when she paid the taxes on this growth. Further losses every bit of money to is yours to spend during your lifetime three or it's your children are very beneficiary is tax-free, high intensity, satanic treatment of interest, he very me.

This is a big deal itself generally knowledge in this shell and take a whole IRA lacework when taxes and say got $400,000 and I converted all of our we need hundred $60,000 taxes need to come up with that from somewhere if you don't have the sidelines taken out of the IRA, which sits in personally. Knowledge is all about.

She got there, was spacing out over time if it is appropriate.

One strategy, and typically don't want convert all your money to. It is 70 okay have some money as they are growing tax-free and that has a lot of money with pretax euros. You remember the key CD that we talked about regrettably give money washer 70 a and you have pretax money really give up $200,000 year. Churchill is a qualified charity without any taxes and I counseled you minimum distribution so there's a lot of reasons to not some atomic bringing this up. Just as a counterpoint right get all excited about Roth conversions brought up with an account. A lot of times it's a great strategy when appropriate, but it's not appropriate for everybody with everything suggesting talking about Sherry very individualized situation itself. So I have to go to rock since not all are sanctified when it makes sense where appropriate. It's wonderful time to do it because the tax brackets. It is so comparatively selected and their very whining since you make a lot of money, a lot of money may not still stay within the same task itself. When right now is is a great time to do my space out my December 20, 1920 20 2020 1B, which reviews maybe longer years yet. Then he got me careful. Once you get into Social Security.

Roth conversions are driving, so when to collect Social Security so you may want to get this done before your Social Security checks. I deal find somebody constant trust and laid out and say yes I got what I needed to get my beneficiaries were ligated for, this valuation I take this on yourself when something I don't know what I saw my radiance. A lot of people look over your shoulder and okay let's look at this is that independent but maybe the benefits you because again you're dealing with a look at your best interests of the situation.

Once you outline what your deal is helping care for, strategy should be as you can tell after me, is not anything they just sit down dinner and go okay so if you're thinking of is he going Cardinal died, Scarlett and seven were are free PDF of the order the book solitaire Cardinal all these different resources of the work will be listed as well say when there is information should the locality also if you want to remain anonymous so I you can divert is not evident. If you want to remain anonymous and you question just died in our lifetime, and in no incision.

She she monitors at all times. She brings it one of us. She has a question and answer your questions and if you do get measured contact number) ration solicitation. So this you can respond work. Thomas your first pharmacy is and so allows the thing that you are sitting there and you're like oh I can hardly wait to go tell Mrs. Schultz that I got I got strategy. I think the biggest way for me it was maybe not one individual thing, but just the technology has resources and connect with things in our now beneficiaries, leading to trust the nurse also by just knowing having more exposure to all that and connect with resources that I can reference back to you. Everything class, I have a good resource back and that's with a times as well so were trying to finish well is resemblance is not a contest. This dossier lesson was the vision wetland procedures and i cannot thank you, we hope you enjoyed finishing well brought you by cardinal is a cardinal for free downloads of the show or preview shows on topics such as social security, medicare and 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 what get hans both go to cardinal 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 cardinal

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