There’s a lot of volatility and unstableness in this economic climate that we’re in right now. The market has not been doing very well. In this situation, it helps to expand the ways you handle your money and look for alternative strategies. Tim shares alternative investment advice – from 401(k) and rates of return, to retirement and taxes. He also invites Rae Phillips of Audubon Kiwanis to talk about the Chili Cook-Off, a dear cause to address neonatal disease that has been affecting babies all over the world.
Listen to the podcast here:
Hungry For Alternative Investment Advice, And Perhaps Chili?
What is going on in our economy? There’s been a lot of hate. The hateful political climate has been affecting the market. For me, that is not that big of a deal because I don’t have anything in the market. I’m an oil and gas investor. All is a commodity and all is around $56 to $57 a barrel right now. I’m looking for that to go up a little bit, maybe hover around, sell around $65 a barrel by the end of the year. That’s a good price for oil. There are a lot of winners. When you have $65 to $70 price of oil per barrel, the landowners are the winner, which I’m a big fan of that because I’m a landowner up there in the beautiful East Feliciana Parish. The oil companies and the refineries are all winners at $65 to $70 oil per barrel. The consumer, we’re not getting gouged at the pump at $65 to $70 price of oil per barrel. That’s what I follow mostly in the market.
I’ve been following some other stocks because I’m helping my son participate in his history class. They’ve got $5,000 of play money and he can do what he wants with it. The person at the end of the year who has the most amount of money gets a prize or something. We bought some stocks and mainly energy stocks that I follow. He’s doing pretty good in that. I’ve been following Marathon, EOG, ConocoPhillips. Those three companies are the companies that are playing around and testing the Austin Chalk formation up there in East and West Feliciana Parish. I’m following those companies. I’m also following Halcon Resources, Sanchez Energy, Encana, ExxonMobil and Verizon. He bought some Verizon stock. He’s like, “Dad, Verizon stock is down. We’ve got to sell it.” I said, “Just hold on. That’s not how it works.”
It’s funny watching him with what they call investment behavior as a tenth grader and he’s following it very closely. I choose not to follow that because I have a lot of clients who do their own investing in the market and they make some money. Several of my clients are day traders. They’re buying the stock in the morning and getting rid of it in the afternoon or holding onto it for a week or so. If you’ve got the time to do that, that’s great. If not, there are other places to put your money. Speaking of oil and gas, there are several places of the tax code and before you put your money in the oil and gas investment, the actual direct participation oil well, there’s a way to become a lender and you lease land. This company leases the land before they drill. Think about it. My family has land in Ethel, Louisiana. We have around 400 acres. It was my grandfather’s and my dad’s the first one to pass away. There are three other siblings. My dad had three siblings. My grandfather had four children in total.
We’re talking to a couple of different companies about leasing the property. These companies, where do they get the funds? Where do they get the money to give my family to lease the land? I just told you three main companies up there: ConocoPhillips, Marathon and EOG, those are all three publicly traded companies. They get a lot of their cash. They’re making profits on their projects but they take public dollars. That’s one way they get money, cashflow to give to landowners to lease the property to eventually drill for oil. The company I worked for, we’re a private equity deal. We’re not a public traded company. We look forward lenders to lend their money and in turn, they get paid a fixed rate of return, a fixed interest rate and it works out great. It’s consistent money. It’s a way to earn interest without spinning into the principal at all.
If you’re looking for a way to earn interest without depleting your principal, without spending into the principal, this is a serious place to look, mainly because the interest rates are good. They’re not home run investments but they’re good. You’re talking about a one-year investment strategy where you can earn 8% per year and then that 8% is divided over twelve months. That’s solid. For number’s sake, you invest $100,000, you’re going to get $8,000 back over the year but it’s going to be paid monthly. If you want to treat it like a CD and you want to compound it, it’s 8.3%. If you want to commit your money to two years and get paid monthly, it’s 8.5%. If you want to commit your money to two years and put your money up and get nothing back, and then at the end of the 24th month, you would get your basis back and then 9.23%. That’s a two-year compounding yield. The last option is three years. You can put your money in and earn a 9% simple interest. 9% yearly is paid over the course of a year and in the three-year compounding yield is 10.28%. That’s not too shabby.
You can’t go buy a second home in the Caribbean Island with this money but it’s a good rate of return. It is not tied to the stock market. This is not correlated to the price of oil per barrel. This is just the company. You’re acting like the bank, you’re lending them your money and they in turn, are giving you a fixed rate of return in each business loan. There are risks involved in this but it’s calculated and it’s mitigated. Each business loan is guaranteed by the company. It’s guaranteed and secured by pari-passu’s security interest in the project loan document. It’s perfected by a UCC financing statement in favor of each lender. The perfected liens are created when the lender files a UCC financing statement with the appropriate authority, which is usually the Texas secretary of state. This statement specifies the collateral used to secure the loan and give the lender precedents in the collection process if the borrower defaults. Unperfected liens leave lenders open to possible claims against the collateral by other creditors. The project loan will be secured by liens against the real and personal property of the sponsors.Don't be afraid to ask questions. Click To Tweet
There’s a risk involved with any investment, but if it isn’t appropriate for you, for people to have a 401(k) sitting there, maybe two or three different 401(k)s or two or three different IRAs. You can combine them and it’s a great place for IRA money, especially the compounding. If you’re under the age of 59 and a half and you don’t plan on touching any of this money for the next several years, you show me another place where you can go put your money somewhere for three years and get 10.28% per year. That’s not monthly cashflow. I like the monthly cashflow myself. I’m in the simple interest. I just liked the monthly. Either way, you are not spinning into the principal and remember the basis, I’ll talk about basis. I learned that from my friend, Matt Zagula. The basis is the principal of your money. You always want to know what that is whenever you put your money somewhere and you invest your money.
A lot of people don’t even know the basis of their 401(k). They may have several hundred thousand dollars on a 401(k) and they don’t know the basis of that. It’s important that you know that. You should know how much you put in. You should know how much the company put in so you can track on what you’re putting in. Some people look at their 401(k) statement and go, “I’m up this year.” You’re only up because you’ve been putting money in. If you’re looking for a fixed rate of return that is not correlated to the market, not correlated to the price of oil per barrel, you’re not spending into the principal. If you’re looking for monthly cashflow, you’ll have cash in this or just IRA money and 401(k) money. It’s a great alternative place to look.
I also like to talk about certain parts of the tax code. It intrigues me and interests me, especially whenever we’re talking about keeping Uncle Sam out of our pockets and there are ways to mitigate, to lower your tax burden every year you owe the government. The US government offers attractive tax incentives to encourage investment in domestic oil and gas projects. Intangible Drilling Costs, IDCs, which include items such as labor and water typically account for 60% to 80% of the cost of completing a well. It can be 100% tax deductible during the first year.
Depletion allowance is a deduction from taxable income that reflects the declining production and reserves over time. Independent producers and royalty owners are permitted to take a 15% reduction to the taxable gross income of a productive well to account for the depletion of reserves. This results in 85% of income from oil and gas investments being taxable and all this are in the current tax code. You can look up yourself. I encourage you to look it up. Go to IRS section 263(c) 59(e) and then when you’re looking at it that goes over the IDC, the Intangible Drilling Cost. The depletion allowance part is IRS section 611, 613 and 613(c)(6). Then the last part, which is the Passive Activity Loss, is IRS section 469(c)(3). Look those up.
When you put cash into an oil drilling project, there is a risk. That’s why the government gives these tax incentives because years ago, Ronald Reagan and his administration had the vision to get America to be independent of oil and gas from other countries. We have reached that part right now. We’re exporting oil as a country and that is phenomenal. This strategy here, the income is not as consistent because, number one, are they going to hit oil? Number two, what’s the price of oil per barrel, which that changes every nanosecond? Number three, how many barrels of oil are being pumped per day?
Those monthly checks are dependent upon a couple of factors, whereas the land where you lend your money, is a little bit different. It’s a fixed interest rate. It is for accredited investors only, but it is a fixed interest rate. I encourage you to get educated on that. To learn a little bit more, you can go access the website, the company and they educate you. Call me 202-SAGE. That’s 202-7243. The website is SageMoneyRadio.com. You can send me an email from there. Changing gears, I’m so delighted and so honored to have my friend in the booth with me now, Ms. Rae Phillips. I’m going to let her talk but she was my very first caller on this radio show. My first show was in July 2012. Ms. Rae called in August of 2012 and we have had a great relationship since then. She is such a very active person and a longtime resident of Baton Rouge. Ms. Rae, welcome to Sage Money Radio.
It is so good to see you and this is going to be a wonderful event.
We have Ms. Rae here because we want to inform the audience and educate you on what’s going on in Baton Rouge. We had this Chili Cook-off and Sage Money Radio has been a big sponsor of this for several years. I even introduced Benny Vine who is the owner of Vine Bros., a fourth-generation owner. Benny donates with Ms. Rae, several hundred pounds of sausage every year for the children. Ms. Rae, tell our audience a little bit about you and your role and what we have going on.
I am the President of Audubon Kiwanis and I have brought this Chili Cook-off to Baton Rouge. We have a wonderful organization. I’ve been the President for years and we brought this International Chili Cook-off that is a sanctioned event that has a state and regional competition at LSU. We are so excited here now. Audubon Kiwanis is an international service organization of volunteers dedicated to improving the world one child and one community at a time. Kiwanis is a thriving organization of community and service-minded individuals who support children and young adults around the world.
Kiwanians make their mark and are responding to the needs of the communities as well as pooling their resources and address the world’s issues. Through these efforts, Kiwanis is truly serving the children of the world. Audubon Kiwanis has been supporting the children with young adults and our community through Kiwanis sponsored youth programs, kids, all the clubs, as well as young children priority, which is in the schools and are developing health and nutrition, responding to disasters, promoting literacy, supporting youth groups, helping the elderly. Through all these efforts, the Kiwanis organization is truly leaving a lasting impression to our future generations.
The Kiwanis is the organization here. The Audubon Kiwanis in Baton Rouge is helping with this Chili Cook-off. I know one of their main deals is immunizations in children.
We do immunizations worldwide through other countries, addressing neonatal disease that kills babies all over the world. We have made leaps and bounds in other countries as well as all through the United States.There are other places to put your money than the traditional plan. Click To Tweet
I think it’s pretty cool that local people right here are making a difference in children across the world. Before that, the hospital, which I don’t think is open yet, it was great. For the last several years we’ve been driving by there and just seeing the sign “future home” and the money from this Chili Cook-off has gone directly to help fund that hospital.
It is one of our resources of why we do this Chili Cook-off. The hospital is so important for our region and our state. A new one and it’s going to serve the community in a greater capacity than it has been before. Kids are able to get all of their treatments and their surgeries and everything here in Louisiana, here in Baton Rouge. We’re so proud that we have that wonderful hospital here and our Chili Cook-off is called Chili for Children and it’s served that purpose.
Talk about a little bit about the spring garden and craft show.
We have the LSU spring garden and craft show. There’s going to be a craft show and sale. You have an opportunity to come out and enjoy the day. We have the craft show, we’ve got Chili and we have a great time. The proceeds benefit the child’s hospital and we are having an opportunity for all the people to be able to do a people’s choice award.
I encourage the audience in Baton Rouge to get down here to the Parker Coliseum for this. It’s a great event.
You can go around and taste the chili. At People’s Choice, you can judge the competitions and you can do anything. It is a very fun day. We’re having a ball out here. It’s just packed.
My four children love to go out there and they get those little sample cup and you can walk around. By the time you walk around the events, you’ve done eating probably two bowls of chili just from sampling. It’s phenomenal. The winners of this cook-off, this is a qualifier for the national.
International, the world competition. Our winners go there. We also want to encourage people to come out and have a good time. We’re having a really good time and weather is not even affecting us. We have a rain plan. We’re inside buildings and on the outside, 80 cook tents all out in front of the Parker Coliseum. It is rocking and rolling and we’re having a great time.
It’s 11:00 to 4:00. Get out there. You could probably sample enough chili. This is what I and my kids do every year. We sample enough chili to basically have a meal and you walk around and you get the judge who could be the People’s Choice tasting award is what it is. They have red chili and verde.
Verde, home-style and a veggie chili even. Chili verde is wonderful. The red chilies are wonderful. All of the food is excellent there. We have a lot of vendors out there. We’ve got other activities. We’ve got booths with a variety of foods, drinks, music and all of the activities are so much fun. You can buy plants, you can buy all of that and come on down.
We have Ms. Rae Phillips. I’m so honored to have her here. She is a long-time resident of the Baton Rouge and she helped get this Chili Cook-off here in Baton Rouge, which is what we’re talking about. I’m excited to be discussing this because this Chili Cook-off benefits the Our Lady of the Lake Children’s Hospital here. The free-standing hospital here in Baton Rouge, which is so vital and so important. We’re so happy that it’s here. Ms. Rae, why don’t you tell our audience a little bit about yourself. I know you’re a longtime resident of Baton Rouge and my dad was friends with your brother, Darryl, for a long time. Why don’t you tell us a little bit more about yourself?
I was born here in Baton Rouge and I’ve been here all my life. I was very excited to have this event coming here because I have supported that and brought it to Baton Rouge for many years. I was Miss Baton Rouge, Mrs. Baton Rouge, and Miss Louisiana.There's risk involved with any investment. Click To Tweet
Was that about ten years ago, Ms. Rae?
No, it’s been a little bit longer than that but not too much.
You don’t look like it, I can tell you that.
It was so important for me to be able to do all the community service that helps Baton Rouge all across. I’ve traveled the world. I’ve done a lot of other things like big competitions in Europe and all over with all of this spreading the world. I am really fortunate for that. I was here in Baton Rouge. I went to Southdowns, Glasgow and Lee High and graduated there and I’m still a part of doing everything that I can to help Baton Rouge.
Didn’t you dance at half time for the LSU?
I do every year. I do the alumni game and I danced at the halftime as a golden girl. I’ve been a part of that for many years and have always been excited about that in LSU.
I remember seeing you out there doing that. LSU does a great job of keeping their alumni involved. Speaking of LSU, the Parker Coliseum, tell all our audience at Baton Rouge what’s going on at the Parker Coliseum.
It is so active and so much fun. We are having a good time. We have the Chili Cook-off. We are represented by eighteen states and three countries that have come down here to compete in the state and regional competition which go to the world competition, the winners. The world competitions are done and we have a lot of winners that go up there from our competitions here. We’ve got so much fun going on here. We are having a ball. We’ve got a lot of people. We’ve got judges, we’ve got volunteers, we’ve got all of the plants show, the crafts, beautiful things to do here. We are encouraging everybody to come out because it is the most fun day ever.
We had that fantastic Vine Bros’ smoked sausage that Mr. Benny Vine sent down here from Centreville, Mississippi to partake. If you want a sausage dog but also, just walking around, you can be a judge of the People’s Choice Award. You get to walk around and sample the chili, the red chili, the chili verde, the home style, and veggie chili and all these different types of chili and it is going to benefit a wonderful cause, the Our Lady of the Lake Children’s Hospital here, which is now a beautiful facility. It is going to help out so many kids in this region. This is a great region that we have and all the profit and all the proceeds go to that organization. Many people come together, Miss Rae, like you, and been doing this for years to help put this on.
It’s a great event. Starting 11:00 going on until 4:00. You can get out there and see what’s going on. The spring garden show, craft shows, and the sale. If you’re looking for plants to grow in your garden, some crafts for your house, that’s actually inside of the Parker Coliseum. Most folks know where the Parker Coliseum is on LSU campus and come out here and partake in this great event and see what we have to offer. You can go to the website. It’s ChiliCookOff.com or LouisianaChiliCookOff.com as well and see what is going on.
Some of the other sponsors that I know, the Kiwanis is a big part of this, the Knights of Columbus as well. Many people come together to benefit the kids here in Baton Rouge. I’ve been a part of this for a while. This is probably about my fifth or sixth year of being a part of this big sponsor. I brought a couple of other people to the table, mainly my friend, Benny Vine, up there in Centreville, Mississippi who donates several hundred pounds of sausage that we actually sell. These guys grill the sausage. You walk around and get a sausage dog. All that benefits at the end of the day go to Our Lady of the Lake Children’s hospital. Anything else going on, Miss Rae, you want to tell our audience?
Everyone needs to have an opportunity to come out. It’s something for everybody in the family. It’s a fun and friendly event that brings a lot of joy to everybody in the family. It’s got a lot of fun. Everything is going on and we are having a wonderful time.Annuities keep you taxified for life. Click To Tweet
The winner of this Chili Cook-off will go on to compete in the international championship.
The prize-winning people get as much as $55,000 of winning. They travel the country.
This is a sanctioned qualifying event. If you are bored, come on to the Parker Coliseum 11 to 4 and partake. Ms. Rae, we appreciate you being on the show. You did a wonderful job and we’ll be seeing you shortly.
See you later. Bye.
That’s a great event. I hope you can get down there that we participate in every year. Getting back to the economics and the finances of the show, there’s a lot of volatility and a lot of unstableness in this economic climate that we’re in right now. The market has been somewhat up. In December it was a bad month for the market. Pretty much wiped out the gains for all of 2018. I like to talk about alternative ways and alternative strategies for your money to make money. First of all, if you are overfunding your 401(k), that means if you’re contributing more than the match. If you’re open-minded and you want to contribute those dollars somewhere else. I totally get and understand and agree with funding your 401(k), contributing the minimum amount with your company to get the match.
If you’re overfunding it and you want to be diversified. If you want to see what else is out there, call me. If you’re open-minded, I can show you exactly what I’m doing with my own money. I can show you exactly what some of the ultra-wealthy are doing. I’m not wealthy, much less ultra-wealthy, but I have been very fortunate to be around some very successful and wealthy people and I’m not afraid to ask questions. I try to encourage my children, “Don’t be afraid to ask questions.” I’m bold when it comes to that. That’s why I have this radio show.
My good friend, Mark McKay, at Amarillo, Texas. I asked him, “Mark, how are you meeting new people?” He told me, “Radio shows.” Mark was very helpful in letting me start the show and getting me started. I have been able to ask some very successful and wealthy people, “What do you do now at 60 that you didn’t do it 40 but you wish you would’ve known. What did you do at 40 that you regretted?” Those decisions have helped me out tremendously in what I’m doing for me and my wife, Mandy, in what we’re doing; planning for retirement and planning to have money. What it comes down to is a lot of folks get hung up with a “retirement plan.”
You really just need money. If you have money and you have a stockpile of money, which most folks have done a great job of accumulating money. Most folks I meet have the majority of their wealth in 401(k)s, IRAs. You’ve got to have the conversation about the distribution side. I have yet to meet someone. When I asked the question, “Have you ever had a conversation about the distribution side of your wealth?” No one’s ever answered that. I think over 99% of traditional financial planners are all about accumulation and chasing different rates of return. We talked about rates of return a little bit in the first segment and I have access to one and it is a good rate of return. It’s not a home run but when you’re talking about a fixed rate of return of 8%, 8.5% or 9%, that’s paid monthly, that’s pretty good, but we’re not chasing rates of return.
When you look at the different financial big companies that sponsor March Madness and have all these stadiums named after them. In my research, I haven’t found a lot of difference between this mutual fund and this mutual fund. It’s all about the same. It’s like going to McDonald’s, Wendy’s or Burger King, you’re getting a hamburger. If you want to step up and get a maybe a nice hamburger and a better hamburger, you can go to Burgersmith. Get one of those. All that stuff is the same. What they do is traditional Wall Street investments. That didn’t work out for me. That’s why I sought my own way.
When I lost money in 2001, I said, “Never again am I going to do this,” because it wasn’t me. The company I was working for had this 401(k) plan and it made me angry that my account value went down 50% and I had no control over that. I said, “Never again.” For me, I don’t participate in the market. I found other ways and other strategies for my money to make money. I march to the beat of a different drum when it comes to investments, when it comes to strategies, when it comes to raising children and my marriage. I even brush my teeth with a fluoride-free toothpaste. Some folks think that’s weird but it works for me. Whatever works for you.
This is just a way to get some of your wealth off the radar screen of the IRS. There are ways to pay less in taxes. I find that most people don’t know about these because their traditional financial guys, financial planners, they’re only accessing the Wall Street investments. There are other ways for your money to make money. They don’t know about these phenomenal and terrific tax deductions. They don’t know about the ways to get tax-free income in the future. I’m not talking about annuities. Annuities keep you taxified for life. I’m not saying all annuities are bad. I think most are. There’s one or two out there that are okay, but it’s a terrible place to put money if you’re looking for ways to get tax diversified. There is a way to get tax diversified.
A person, in my opinion, shouldn’t have all their wealth, all their money in 401(k) or IRAs where you have yet to pay the taxes, especially if you’re somewhat younger. In my opinion, tax rates are going to be higher in the future. If I believe that and I do, then why would I want to defer taxes to pay them at a higher rate in the future? “Because my financial guy told me I’m going to be a lower tax bracket when I retire.” In my opinion, that’s a myth. Being in a lower tax bracket when you retire is a myth. If someone’s giving you tax advice like that, run or ask them, “Mr. financial planner, will you sign and date that on your letterhead, that I will be in a lower tax bracket when I retire?” That is a broad stroke.The 401(k) is basically a carrot dangled by the government to encourage us to put money into it, but it’s basically just postponing the tax. Click To Tweet
There are very few people that are in a lower tax bracket when they retire. If anything, they are in the same tax bracket. Some folks can get in a lower tax bracket, but most folks are in the same. It’s a myth that they will be in a lower tax bracket. It works for some people, but it’s to sit there and tell a room full of people that they will be in a lower tax bracket when they retire is wrong, especially when they’ve gathered 90% of their wealth when they haven’t paid the taxes on that. You have several ExxonMobil retirees, these guys or from any plane. If you worked somewhere for 30 to 40 years it’s easy to accumulate $1 million in a 401(k). Let’s just talk about that.
Let’s talk about $500,000. If a person has $500,000 in a 401(k) plan that’s being managed, what is the tax rate? What does a person owe in that? The best-case scenario they’re probably in a 25% tax bracket. If you have $500,000, 25% of that is $125,000. I have seen people that pay over a 2% fee to their adviser, some 2%, some over 2%, some 1.5%, some 1% but probably average 1.5% fee for the advisor. If a fourth of that money is not yours, 25% of that money’s not yours, you’re paying a fee to someone to manage money that you’re never going to get because you’re going to owe Uncle Sam about a fourth of that money. Why are you paying someone a fee to manage your money? You’re paying the fee for the government to manage their money because a fourth of your portfolio or a fourth of your account balance in a qualified retirement plan is the government’s money, it’s Uncle Sam’s money. There are way better places to put funds than a traditional 401(k), than a traditional SEP.
I understand most people that are working contribute to their company’s 401(k) plan and they get a match. I understand that, but the government dangles this carrot of what they call the 401(k) plan in front of our eyes and encourage us to put money into it. Basically, postpone the tax is what they’re at. They’re telling us, “Bill and Sue, postpone your tax and pay the tax on this money 30 years from now.” When they’re ready to draw from their Social Security, the government penalizes the person. There’s a penalty. It is in my opinion borderline theft the way Social Security’s potentially double tax because of Social Security’s after-tax dollars. Yet if you have money in a qualified plan, a SIMPLE, a SEP 401(k), when you’re ready to pull that money out, let’s say you pull out $50,000 to live on that year, if you’re married and filing jointly, you’re going to pay a tax on your Social Security. We don’t know what the taxi is.
We don’t know what the tax rates are going to be in the future. More than likely, if you are married and filing jointly and you have over $44,000 of other income or what the government considers provisional income, 85% of your Social Security’s going to be taxed only because of where your money is. That’s my point, there are other places to put your money than the traditional plan. I had a great show. It was the first show of 2019 and I had Rebecca Walser. She was on Fox Business and she did a great show. She’s a tax attorney. She’s a tax lawyer. She talks about future tax rates and we don’t know what future tax rates are. For me to even say what I think they’re going to be, it’s somewhat of a dice roll. When I look at the government’s debt, right now historically we are in some low tax brackets. We had higher tax brackets way back in the day when we didn’t have debt. We have a lot of debt. This country has a ton of debt and it’s not getting lower. We have elected irresponsible people, politicians and they do not know.
A person can get elected. They may have a business, maybe an attorney, a business owner, and they may do a pretty good job of managing money. Somehow when you put all these responsible people together and call them the House of Representatives, they do a terrible job of managing money. They do from the state level to the national level. The word terrible doesn’t even describe how awful they do of managing money, of spending more than they take in and yet they want to raise our taxes. I don’t trust the government with my money. I want to pay the government the least amount of money as possible. I don’t like to have to pay into Social Security. I don’t like that I and my wife had to pay into the Social Security system because I trust myself better. I trust myself rather than the government of managing money. Why would I want to give the government money for them to give it back to me later on?
If I live, because remember my parents are the perfect example of how much of a rip off the Social Security system is. My parents, good old Hollis and June Day, the textbook definition of middle-class blue-collar workers. The government forced them to put in the Social Security their whole lives. Their whole lives they did not have a choice. My mom died at 54 years old of ovarian cancer. My dad died at 64 years old and neither one ever collected a paycheck from Social Security. Neither one ever got a penny from Medicare. It’s easy to say the government loves people like Hollis and June who paid the system their whole lives and never get a penny. That’s what they want because they are so irresponsible. Why would I want to give them more?
When I can show someone how to never pay a penny on Social Security taxes, I love doing it mainly because you’ve already paid taxes on that. Social Security is already been taxed, but the government has found a way to double tax us on that depending on where your money sits. That’s what we are always saying, where your money sits, where your money resides is more important than the rate of return. For someone who’s going to draw Social Security for twenty years, we’re talking $200,000 to $250,000 that they could possibly, unknowingly, indefinitely, unnecessarily pay back to the government because of where their money sits. Do you want to see how to avoid that hurdle?
Call me. We’ll see if it is a good fit. If you think we should be paying more in taxes, we’re probably not going to be a good fit for one another because I think as a society, as working citizens, we are overtaxed. We pay too much in taxes, but mainly because the government has so much wasteful spending that they would dial it back a little bit and be held accountable to not go over their budgets. I probably wouldn’t feel this strong but I do. I don’t know how this passed through Congress in the ‘80s of what they call provisional income where they basically doubled tax Social Security. Think about how crazy this is. They dangle the 401(k), encourages us to put money in there and then taxes us on Social Security. That is lunacy like some of our national politicians from New York. They would not do well unless there’s a hearing. They would fail.
- Halcon Resources
- Sanchez Energy
- Chili Cook-off
- Vine Bros
- Our Lady of the Lake Children’s Hospital
- Rebecca Walser – previous episode