How To Protect Your Wealth


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Transcript

Mike:

Look at using specially designed life insurance. If you structure life insurance the right way, you can build tremendous streams of tax-free income in retirement. It’s almost a no brainer.

Zach:

Welcome back to your retirement today. I’m your cohost alongside me. We have Michael Reese certified financial planner and president and founder of Centennial advisors headquartered right here in beautiful Austin, Texas on today’s show. We’ve been talking all about prepping for retirement. What that looks like both, you know, outside of your finances, you know, living your best life, you know, living out your dreams, your hobbies, your goals, your travels. We’ve talked a lot about what that costs to, you know, finding your number, you know, figuring out how you make your money. Last in retirement. We talked a lot about income planning, but there’s a little bit more to it than just that.

Mike:

Oh yeah, you can bet. So we have the prosperity planning system, right? And a part of that system is helping you make smart choices so you can build up streams of income so you can make work optional. Right. But here’s the challenge. It’s not just about building up streams of income. You also want to make sure that that income goes in your pocket, at least as much as possible. And you want to give as little as you can to those, oh, this is going to get me all charged up here. Getting red, those evil, crazy, no good politicians in Washington, DC. Right? Your favorites, you know, it’s like, you know how it goes? It’s like politicians as a group, I think are pretty much a scum of the earth, right? Just like used car salespeople as a group. Right. As a group, not who you want to bring home to mama.

Mike:

Right? Sure. Sure. Now are there individuals who are really quite high quality people who are politicians? Yeah. Are there individuals who are really high quality used car salesman? Yeah. As a group, not so much. Right. And politicians drive me crazy. I know used car salesman. I can decide. And by the way, if you’re a used car salesman, I’m sorry. I’m, I’m sure if you’re listening to, you’re one of the good ones. Right. but you know what I’m talking about and, and the thing is so I can avoid them. I can choose to avoid them. I can’t avoid what politicians do to me, especially with the tax code, you know, it’s like, I’m just kind of stuck with whatever those idiots come up with. Sure. And I swear to goodness you know, I love Warren Buffett’s comment on this. Warren buffet says, we’ve talked about them a couple of times today, but he says, I got an easy way to balance a budget.

Mike:

Just tell the politicians, look, if you can’t create a budget that is within 3% of being balanced each year, then you are not allowed to stand up for reelection. Yep. That would balance the budget. Right. I think that’s a great idea. I love it. You know, get, I mean, we don’t have a tax problem. We don’t have an income problem in DC. They have a spending problem and you know, they spend their money, they waste our money left and right. And then they turn around and say, oh, we don’t have enough. We got to tax more. We got to get more money from you because we’re idiots is basically what’s going on. Yep. So here you are. Sorry, Zach, you got me rolling here.

Zach:

I know fired up. We got off topic.

Mike:

I hate these guys. Anyway. The point is at least the tax code does provide us legitimate and legal paths or strategies that we can use to make sure that as you know, that we’re sending the smallest amount possible to the, you know, the, to those, I don’t even want to say, I’ll probably get bleeped out again on my show. I get bleeped out of my own show when I talk about politicians, because they just make me so angry. I know anyway there are legal paths. So one of the things that you need to be thinking about, it’s not just building up streams of income. It’s how do you build up tax free streams of income? And there’s couple of ways to do that. Specifically the utilization of things like Roth, IRAs or Roth 401ks, that’s, that’s a great opportunity. And the other path would be, or a, another path would be using properly designed life insurance, building up some of those types of accounts, by the way, here’s a third path that people don’t often think about paying down your mortgage so that it’s so that you have no mortgage in retirement.

Mike:

Because if you have no mortgage in retirement, that’s less income that you need, which means that that’s less tax that you’d have to pay right. A hundred percent. So this is, by the way, this is something. When I talk to people are five years from retirement, you know, and they’re sitting there, they’re putting like 26,000 a year, the maximum they can in their 401k. In a lot of cases, they’re better off to just put in just enough money in the 401k to get the match, put the rest of the money, to pay down their mortgage. Because if you can enter retirement with no mortgage, Hey, that’s a oftentimes a really great place.

Zach:

That’s a huge win. And you don’t hear a lot of people talk about that.

Mike:

Everybody says, Hey, why would I pay off my mortgage? Because you know, interest rates are so low, right? Because tax rates are so high and they’re getting higher. You got to remember, it’s not just about the interest rates. It’s about the taxes you pay as well. So in any event, in any event, we got to think about taxes. So here’s some things that you should consider what I’m about to say. This is not advice. It’s information. Yep. Why is it not advice, sack?

Zach:

Because for someone like us to give you advice, we have to know the full details of your specific situation. You know, we have to know what’s important to you. What are your concerns? What are your financial goals? We can’t give you specific advice without knowing those things.

Mike:

What, what, what are your right? Where’s your money now? You know, I can’t give advice. We are fiduciaries. Like we are true fiduciaries. We’re not like all these advisors out there that want you to think they’re fiduciary, but they’re really not. Like we actually are fiduciaries. And that means that we cannot give advice without knowing everything about your situation. I had a guy call me the other day. He’s like, Hey, I just want to buy some life insurance. Right. I’m like, all right, well then I’m just going to need to learn a little bit about your circumstances, you know, to make sure that you know, that that’s a reasonable recommendation. Sure. He didn’t want to give me, he’s like, dude, I just want to buy some life insurance. And I’m saying, well, I’m sorry, but as fiduciary, I can’t do that. I can’t recommend, I can’t do anything without knowing about your background, your situation, what your goals are and what your resources are and so on.

Mike:

Well then I’m just going to go find somebody else. Hey, go for it. Right? If you want to deal with someone else, that’s fine. But the reality is that’s how that’s the world we live in. Yep. So in any event, here are some information, some things you could consider, a lot of people, they have a 401k. Maybe you’ve got a 401k or a four oh three B. You’ve been adding money to it for years. And you’re just building up. Every dollar you’re putting in is just adding to tax problems later on the number one asset you own that causes tax problems in retirement is your 401k, your IRA, your four oh three B those types of assets, wonderful tax shelters. When you’re working the instant, you retired, they become the absolute worst asset. You can hold in retirement from a tax perspective, tax perspective.

Mike:

So stop building on up. Right? So a lot of people, I have this conversation all the time. I say, Hey, do you have a Roth option in your 401k? And I swear, nine times out of 10, what do people say? Well, what’s a Roth. I either that or I, oh, no, I don’t. I don’t think so. Yeah. Well, could you check? They check. And the next time I talked to them, they’re like, you know what? We do have a Roth option. They just weren’t being told. They just aren’t being told, you know who? So these companies, what they do is they add these rough options. They tell every new employee that they have Roth like, Hey, we have Roth 401ks. Here is one of this cool selling point of working here. But they don’t tell their current at all their current employees, they don’t tell them.

Mike:

It’s like, do you have a Roth? You need to check in it. If you have a Roth, it might make sense. I’m not saying it does. I’m saying it might. It may very well make sense to change your contribution from traditional to Roth. Now you won’t get a tax deduction on that contribution anymore, but you want to build up streams of tax-free income, right? If insurable, and especially if you’re a high earner look at using specially designed life insurance, if you structure life insurance the right way, you can build tremendous streams of tax-free income in retirement. It’s, it’s almost a no brainer, but you’ve got to be insurable. And it’s best. If you’re working with a fiduciary who can design it the right way, because guess what? Designing insurance, right. Way act. You know what it means? It means that the person who, the agent who’s selling you, that life insurance gets paid the smallest commission possible.

Mike:

Right? So you got to watch out for these sure. Gotta be designed the right way. You know, the salt part of the prosperity planning system. Should you be paying off your mortgage? Should you be doing Roth conversions? How much in Roth conversion should you be doing each year? It’s different for everyone, right? And again, as we’re wrapping up the show this week, that’s why I want you to call us. Right. Retirement is going to be there before you know it, it is going to be there. Like, man, it’s just going to be there, right? I mean, you’re going to turn around and there it is. Don’t wait till the last minute to get your planning in order. Give us a call today. Right? The number is five one two eight eight, six 58 50. Give us a call. Let’s set up a 15 minute conversation.

Mike:

It’s free. It’s simple. It’s easy. And it just gives us a chance to learn a little bit about you. Let’s see if we can help you complete your retirement planning. Let’s see if we can help you make good investment choices, income choices, tax choices, healthcare choices, you know, all that stuff. You’re going to have to make decisions start early. Don’t wait till the last minute. You’ll be glad you did. So again, it’s a 15 minute call Zack. What’s that number again? That they need to call. And by the way, just call right now. Right? Just give us a call now let’s get this set up.

Zach:

Right? Mike. It’s a great opportunity. If you reach out to us at five one, two eight, eight, six 58 50 again, one last time. It’s five one, two eight, eight, six 58 50. Don’t neglect your retirement. Take action now.

Mike:

Yeah. We want you to live the retirement of your dreams. Retirement should be the best time of your life. And all you gotta to do is make some smart plane decisions to get there. It all starts with a 15 minute call. I mean, it’s not hard. It’s easy, simple. And, and here’s the deal, right? Here’s the deal, our goal. Let’s just get you that great information that’s appropriate for you, right? That’s appropriate for you. 15 minute call. That starts the process. It’s a free process. We’re very laid back. It’s very comfortable. Five one two eight, eight, six 58 50. That’s your number? Pick up the phone. Give us a quick call. Let’s have a conversation so that you can truly enjoy your best. That is yet to come. All right. That’s our show this week, Zach. Great talking. You get on the radio.

Zach:

You too. My see you all again next week. Hi. And thanks for checking out retirement today. If you like the content we share on our channel, make sure to like comment and subscribe. So you can say notified about all of our latest content and videos. Be sure to share all of our information with your friends and family as well. Thanks for joining us. We’ll see you next time.

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