March 2, 2019

Interesting Times For The Economy

SMR 19 | Taxes

 

It is an interesting time for the economy. So many things are happening that if you do not pay attention, you might get left behind. Tim keeps us abreast as he talks about the many things going on in the economy right now. He shares his experiences with others who are dealing with their personal stocks, portfolios, and retirement, while also talking about taxes – from withdrawal rates to rate of return. Tim likewise expresses his thoughts about the government, talking about the pension crisis and the rise of socialism. Believing how taxes are an impediment to building wealth, he gives some ways to lower those taxes and avoid paying future taxes.

Listen to the podcast here:

Interesting Times For The Economy

My Saturday is treating me great. I had a little exercise and bright and early. I made it to tennis and softball games with my daughter. Depending on the weather, we’re maybe at the LSU softball fields. She was going on over there. It’s been some interesting times. There are some interesting things going on here in the news and in the economy. I follow some stocks. I follow the price of oil per barrel very closely. My oldest son, Hollis Patrick Day III, we call him Patrick, was given $5,000 play money at school in his history class. They get to go buy stocks. He knows what I do. He knows sometimes I’ll talk bad about the volatility of the stock market and talk about the corruption and how rigged it is. He’s like, “Dad, will you help me look at it?” He asked me to help him pick some stocks. We were just doing some research. We were looking at some stuff on the iPhone. We picked some energy stocks and stuff that I follow like ConocoPhillips, Marathon and EOG. He was kicking some major tale at the first two weeks. All the tenth graders at his school and the second place behind him was not even close to him. Some of those stocks went south. It’s been an emotional rollercoaster with him because he’s like, “Dad, we need to sell. I’m losing.”

It was a great lesson for me to let me see what a lot of people go through with their personal stocks and personal portfolios and their retirement. Retirement can mean different things for different people. Retirement can mean not working and playing golf four days a week. In my case, I would rabbit hunt five days a week and then turkey hunt for four days a week in the spring and then deer hunt four days a week in the fall and the winter and then hunt fish every day in the summer. That would be retirement for me. Retirement can be working maybe ten hours a week or volunteering somewhere. The definition is different for different people. If you’re approaching that and you want some suggestions, you want some out of the box scenarios that you’re not going to get and you’re not going to hear from your traditional Wall Street planner because those guys who are married to Wall Street.

Taxes

If you’re looking for something different and you’re open-minded and if you believe when I believe about taxes and how I do not think taxes will be lower in the future, call me. Let’s meet for a hot cup of coffee, maybe some breakfast or lunch. Call me 202-SAGE. That’s 202-7243. You can go to the website, SageMoneyRadio.com. You can send me an email from there. You can go to the website and listen to me on the show. I encourage you to download the iHeartRADIO app for your phone. You can type in Sage Money Radio there and listen to me. They are on the podcast as well. I was talking to some people. Their CPA told him that they’re going to be in a lower tax bracket when they retire. These are business owners and they do well. They said that the CPA told them they would be in a 10% to 12% tax bracket and they don’t believe that. I say this jokingly, “See if he will sign and date that statement on his letterhead.” It’s not that they would want to go back and sue. The point I’m trying to make is how confident is he or any CPA or any financial advisors or typical Wall Street financial advisors that are telling people that they will be in a lower tax bracket when they retire? It’s a myth.

It’s maybe the case for some people, but it is not a broad stroke to tell a group of people, “You will be in a lower tax bracket when you retire.” If someone is giving you that financial advice, you should run or at least see if they will sign and date that on their letterhead because then they’re liable to come back and hold them accountable for it. If someone can tell you what future tax bracket you’re going to be in fifteen years, then you need to take to them to the horse track and bet on Billy Sue, the horse on lane number three because they have some supernatural capabilities. We all know that’s false because there is only one God that is supernatural. No human beings are.

In this world that we live in right now in the global economy, everything just comes back to taxes. I can show you a way because everything I based on is on withdrawal rates. There is a difference between withdrawal rates and rate of return. When you’re looking at stocks and annuities and the Roth, the Roth is a spin-off from something that’s already been in the tax code for years. We look at a 7% withdrawal rate. When you’re looking at numbers, the strategy that I use is I’m going off a 7% withdrawal rate whereas stocks go off a 3% withdrawal rate. It used to be called the 4% rule. You can look it up on the internet. Go to Google and type in the 4% retirement rule. There’s a plethora of information on that. If you’re in stock, it’s usually about 3%. I want to work backward. I want for someone to say, “I want $75,000 a year in retirement net.” I’ll take into consideration how many years are going to work and what you have now to see if it’s possible.

I’m not going to show you something and say, “Let’s hope to get there.” I don’t think hope is a retirement strategy. With stocks, the general rule is 3% and the annuity is around 5%, but annuity is the worst place to put money just because of the way it is taxed is taxed. It taxed ordinary income. The gains are taxed and everything is taxed. There is another strategy that is very similar to Roth. Most people know that Roth is 7% withdrawal. Do the math. I can show how you can get the same amount of money by using a different strategy. All you need is about a third or a half of the cash to get there because of taxes. You’re talking about tax diversification or you tax diversified. It means not having all of your money in except a 401(k) or a type of IRA. It’s not having all of your wealth or your money in there. That’s where I find most people have their wealth. Some people have money in real estate. They have a business and the business has a value for when they want to sell, but most people have their wealth stored in some type of qualified retirement plan, a SEP, simple IRA, 401(k). It’s a government-sponsored program and the government is your partner. The government is going to dictate to you how much you’re going to pay in taxes.

Retirement can mean different things for different people. Click To Tweet

We are certain of the current tax brackets for the next several years until 2025. We know what they are. People are making some bold moves because we don’t know what’s going to happen after that. If the lunatics take over, the radical left-wing liberal lunatics, the ones who believe in 39-week abortions and the savage animals who believe in murdering a child after it’s born, that’s what I’ll call lunatic. The people who believe in that, there’s a correlation to those lunatics. They also believe in massive tax rates. Who knows how the pendulum is going to swing in politics? I’m not taking my chances. I don’t want my money in bucket one where the government is going to dictate to me how much tax I’m going to owe when I’m ready to pull it out. I believe in paying taxes only one time. That’s why I had my money in bucket three, which is the tax-free bucket. The bucket one is your hourly rate and your SEPs and your 401(k). The bucket two would be capital gains like real estate, cash in the stock market. Bucket three is tax-free, which is municipal bonds and bucket four is tax exempt. I liked the tax-exempt bucket. There is nowhere to put 1040 to receive income. It’s possible.

There are two places for tax-free income. It’s the Roth IRA and another strategy, which is where the Roth came from. If you are concurrently contributing to a 401(k) at your work, your job or your employer and you are contributing more than the match, every plan is different. I’ve never seen two plans alike. A plan can be like, “If you put in 7%, we’re going to match three. If you put in 4%, we’re going to match two.” Some people would just say, “I’m doing that and I’m going to put an extra 2% or I’m going to put in an extra 5%. If you are doing that, I have something better. You’re already not seeing that money in your paycheck so you can stop over funding. That 401(k) still contribute the minimum amount to receive the match. Let me show you bucket four. The ultra, mega, wealthy people, they’re not making their money. Most of them don’t even have money in stocks and bonds. I can show you where they have their money. I’m not even wealthy, I’m less mega-wealthy. I’ve been very fortunate and very blessed to be around some very smart people. I’m trying to teach my children this. Don’t be afraid to ask questions.

Me and my good friend up in Amarillo, Texas, Mark McKay, we talk about the story whenever I met him and his lovely wife Marcy. He told me about their radio show in Amarillo called Smart Money Radio. Mark was very instrumental in helping me start Sage Money Radio. We still talk almost every day on the phone. We talked thirteen out of fourteen days. We use a little app called Voxer and we did call one another as well. I was hammering him with questions about his radio show and I just say, “Mark, do you care if I start one that matters?” He’s like, “Hollis, that’s fine.” He’s been very instrumental in my life as far as career and I’m very thankful and grateful for him. I’ve always asked questions. I’ve been around with some very smart people. One of my mentors is a guy named Mike Tolleson. Mike has been on this show a number of times. Mike is the guy who founded CiCi’s Pizza. He sold the franchise and cashed out big time and he still kept his original location. He still owned the original location.

SMR 19 | Taxes

Taxes: The government is going to dictate to you how much you’re going to pay in taxes.

 

I met Mike back in 2010 and Mike has been very instrumental in my life spiritual wise and career-wise. He’s a phenomenal guy. I’ve asked Mike those questions, “Mike, what did you do when you were 40 that you regret or might know what you know now with money? What do you wish you would have known about when you were 40?” These people have shown me and there’s one common factor with the ultra-wealthy. They’re all doing a certain strategy that I’m doing for myself as well. I’m not wealthy, but we scale it down to the income. We scale it down to what you have as far as assets. We scale it down to what you want. Some people would say, “Hollis, I want to net $80,000 a year in retirement.” If you have $200,000 in an IRA and you’re five years away from retirement, that’s not going to happen. It’s not going to happen unless you go spend $10,000 a week on lottery tickets and just hope something hits. I like having that number because we can show people the number that they want on paper.

Looking at the strategy, cash accumulated is accessible as tax-preferred income. There are no contribution limits. If you want to put in $25,000 a year or $150,000 a year, you can. There’s no income cap limitation, meaning it doesn’t matter how much you make. That’s a problem with the Roth, but there’s a way to backdoor Roth. No provisional income is a safe harbor for legislative change. This strategy already went through two major tax reforms that they didn’t touch. It’s tax-exempt income. When you receive this income, there is nowhere to put on 1040 how much is coming in. Therefore, it’s never paying a cent of tax on your Social Security. Most people don’t even know they’re going to have to pay taxes on social security. I get aggravated about this. I don’t know how there’s past income because we are contributing to social security right now with after-tax dollars. Congress has labeled something called provisional income, which just means other income. If you take out $50,000 of your 401(k) and you have a couple of rental properties, you’re going to pay 85% of your social security and it’s going to be taxed at whatever tax bracket you’re in. We don’t know future tax brackets. Don’t listen to anybody who tells you they know future tax brackets.

Our Government

I’m looking at our nation’s debt. I’m looking at our nation’s history. Right now, we are in some of the lowest tax brackets we’ve ever been in and we have the highest debt we’ve ever been in that we’ve never had. It doesn’t make sense. The two are going to blow up. I’ll be in a position where I won’t pay anything. The government won’t know my income because I don’t have to put it on 1040. Most importantly, you won’t pay anything on taxes on Social Security. If you look at the word blue-collar, it was my mom and dad, Hollis and June. My mother was June Higginbotham Day, 1970 graduate of Central High School. My dad was a 1960 graduate of Istrouma High. They were nine years apart in age and just typical blue-collar. My mom worked for Dr. Leggio for years. She went back to nursing school and became an RN. I remember her working on night shift. She’s working twelve-hour shifts. I remember her working sixteen-hour shifts. My dad was on a tire business in Port Allen that he had to shut down. He didn’t file for bankruptcy or anything. He just closed the doors down because he couldn’t compete with Sam’s and Walmart selling tires in the early ‘90s so he went to work for a tire distributor.

There is only one God that is supernatural. No human beings are. Click To Tweet

The point being is the government gave my mother and father a middle finger. Uncle Sam is flipping them off saying, “Hollis and June, we can manage your money better than you. We don’t think you’re very good at managing money. Never mind the debt we have. We don’t know how to balance a budget, but you got to pay us social security. If you live to be X amount of years old, who could give you a little bit back per month?” We have allowed our corrupt government to do that. My mother passed away at 54 years old of ovarian cancer. My mom was a vegetarian. She taught aerobics. She was an aerobics instructor and an RN. She is a vegetarian that died of ovarian cancer. She never got a penny of her social security or Medicare. It wasn’t passed down to me and my sister and my dad didn’t get it. My dad did receive a $255 check when my mother passed away to help with burial expenses and then we paid for the flowers of her funeral. My dad passed away eighteen months later due to a pulmonary embolism at 64 years old. He had just signed up and start receiving his Social Security. He wanted to receive it when he turned 65. My dad never got a penny of his Social Security.

Our good old government gave my mom and dad the middle finger every paycheck on all those years they worked because they happened to die before they start getting their social security. The money was not passed down to me and my sister. It’s a rip-off. The biggest Ponzi scheme ever known to mankind is our current social security system. I’m convinced it won’t be there. You’ve already been taxed on that money. Why would you want to pay taxes again just because your money sits somewhere? I can show you that where your money sits or where your money resides is more important than the rate of return. Don’t get caught up in the rate of return. It’s important but it’s not quite as important as where your money resides. We’ve got these corrupt pieces of garbage career bureaucrat politicians on the left and the right. I’m conservative by nature so I vote for more Republicans than Democrats. It’s almost a lesser of two evils. The Republicans talk about paying less in taxes. They believe in that, but they know how to spin it just as much as the Democrats. Neither one knows how to balance a budget. They’re out of touch with society. I can show you how to never pay a penny on social security taxes.

I’ve always heard that as you get older, you get wiser. To me, if you get wiser, you would get less angry. I’m 42 years old and I’ve noticed that I don’t have the patience that I have five years ago when I deal with stupid people. Sometimes I can’t even watch the news. When Chuck Schumer comes on, I had to get up and I had to walk out. I had to change the station. There are some career Republicans. They’ve been in the office for too long. Career bureaucrats have ruined this country. They are out of touch with people. They are out of touch from a state government all the way up to the federal level. Any person who’s talking about confiscating your wealth, they’re just out of touch. It’s hard for me to comprehend it. My patience runs thin with somebody who’s telling me something that’s good for me just like the lunatic Bernie Sanders. He’s a raging lunatic. He’s a hypocrite. He talks to his socialist platform. The guy owns three houses and I just found out that he built the corrupt Clinton family for his time. He was demanding private jet transportation but yet he wants to end all flying in ten years.

SMR 19 | Taxes

Taxes: Where your money sits or resides is more important than the rate of return.

 

These are people that are talking to us and telling us how much taxes we’re going to pay. It’s lunacy that we’re in this situation. I don’t trust those guys. I’m a very pro-limited government person. I do believe that we need some tax to help fund our military and to have some infrastructure. I understand all that, but we were so overtaxed right now as Americans. It’s ridiculous. Here’s an article that I received. The title is Even Warren Buffett Gets It: They’re Coming for Your Money. It’s from the Sovereign Man, “By the year 1380, the Hundred Years’ of war between England and France had already been raging for decades and the war wasn’t going very well for England. France had managed to recapture most of the territories they had lost early in the war. Meanwhile, French naval fleets were ravaging the coastline of southern England and destroying English commercial vessels.

To make matters worse, England had been devastated by the Bubonic plague, which killed nearly a third of the population. Most of England’s military leadership was dead and the country’s new king was just a thirteen-year-old boy known as Richard II. The cost of the war was mounting in England was rapidly running out of money. The government had previously borrowed enormous sums to finance the war effort pledging the crown’s jewelry as collateral. They were close to being forfeit. Taxes had continually been raised in England throughout the previous decade to help pay for the war, including a poll tax in the year 1377 and a second poll tax in the year 1379.”

“That second poll tax was an early form of progressive taxation in that the wealthy paid a much higher amount. As an example, archival English tax records from 1379 show that in the town of Thuxton in Norfolk County, the wealthiest resident, Sir Roger de Wylasham paid far more tax than everyone else combined. Elizabeth Warren, Bernie Sanders and AOC would say this is still not enough and it wasn’t because England still needed money. In November 1380, they levied a third poll tax on the population to be collected from every English subject over the age of fifteen. This time enough was enough. Noblemen and peasants alike were sick and tired of raising taxes.

In this global economy that we live in right now, everything just comes back to taxes. Click To Tweet

Most people took steps to evade the tax altogether, while great many others engaged in full-blown armed insurrection. In the city of Brentwood, townspeople stoned the tax collectors. In the town of Bury, one was relieved of his head. In June of 1381, a mob swarmed into the city of London and burned down the tax assessor building. The point is, people were pushed too far. This is a familiar story in the history of our species. Even in the very early history of the United States, the embryonic US government was facing insolvency due to the debt payments from the Revolutionary War.”

“Alexander Hamilton convinced Congress and George Washington to impose a tax on whiskey. That pushed people over the edge, resulting in a bloody revolt that became known as the Whiskey Rebellion. It’s the same formula. It’s a financially desperate government resorts to plundering their citizens and eventually push them too far. Our modern-day pantheon of socialist nitwits consistently fails to understand this key lesson from history. They think they can raise taxes without limitation. They have no understanding of basic human psychology that they can and will push people too far. An unlikely champion of common sense emerged in none other than Warren Buffett. In a live interview with CNBC, Buffett spent several minutes on the dire public pension crisis in the United States calling it a disaster.”

I’ve been saying this on the show for years now. This country is in a pension crisis. I didn’t make that up. A lot of places I do the reading from including this website have been saying that. “Every single state in the US has an underfunded public pension. In other words, the amount of money owed to current and future pensioners is far greater than the amount of money they have to pay those obligations. Buffet stated the obvious. Those governments are sitting on enormous liabilities and they’ll soon be under pressure to fix their broken pitches by radically raising taxes.”

SMR 19 | Taxes

Taxes: The words to describe how bad the government is at managing and spending money is terrible.

 

The pension crisis and rise of socialism are just two threats we see for 2019. It may become the greatest redistribution of wealth in history, crippling taxes, limits to private property ownership and the destruction of the dollar or coming. “If I were relocating into some state that had a huge unfunded pension liability, I’m walking into liabilities and those are big numbers. They will come after corporations. They will come after individuals. They’re going to have to raise a lot of money.” I just quoted Buffet. “Buffett further mused that it would be foolish for a business to invest heavily in a state with massively underfunded pension liabilities, knowing that the state would eventually resort to extreme taxation. Why would I want to build a plant there that has to sit for 30 or 40 years?”

“Buffett’s business partner, Charlie Munger, was even more direct in an earlier interview with CNBC saying that places like New York City and California have been pretty dumb for driving the rich people out. Buffett agreed to say that states like Texas and Florida, which have no state income tax, are very attractive to wealthy people. That’s precisely the point. It is 2019. People don’t need to tar and feather their tax collectors as they did during the Whiskey Rebellion in 1791 or pick up a crossbow to defend themselves as they did in 1381. Wealth, capital, businesses, and people are all mobile and are free to move where they are treated best.” He’s saying that he spent the last decade of his life overseas in Puerto Rico. He said that his tax benefits are unparalleled in Puerto Rico. “US citizens living abroad can earn roughly $105,000 per year, tax-free, through the foreign earned income exclusion, plus another substantial tax deduction on housing costs. As we’ve discussed several times, Puerto Rico’s tax incentives mean paying just 4% on business income and nothing on investment income.”

“These tax rates apply to virtually unlimited amounts. It’s an unbelievable deal. Buffett is right. The public pension situation is a complete disaster. By the way, the pension crisis is worldwide. Every US state is underfunded. Social Security at the federal level is underfunded by tens of trillions of dollars. Most European nations are underfunded. Japan is underfunded. These governments are going to have to raise a lot of money. They’re going to raise it from you and they will push too far. That much is inevitable. You can either recognize this simple reality and make an intelligent plan to minimize their destruction or learn how to use a crossbow.”

As you get older, you get wiser. If you get wiser, you would get less angry. Click To Tweet

There are ways that you can take to avoid paying future taxes. If you have a substantial amount of your wealth and a 401(k) or IRA, it doesn’t matter if you have a little bit of your wealth, a little bit of your stored labor or your money in a 401(K), IRA or any of that stuff. It’s a government-sponsored program. It’s a qualified plan. You’re going to have to pay the tax from that money when you take it out. There’s no way getting around that. You have to pay the tax on that money. You can take it all at one time, which is a pretty bold move but people do it. People do it all the time especially when we implement the in marriage QDRO. It is a way to go grab your 401(k) money and avoid the 10% penalty if you’re under 59.5.

Ways To Avoid Paying Future Taxes

All we’re doing is interpreting the tax code, which allows you to avoid the 10% penalty if you’re under 59.5 and you will owe an attorney. There’s an attorney here in Baton Rouge that I work with that and you will pay her a onetime fee and then there are some other fees involved. You have to pay a couple of court filings and whatever. It’s a one-time fee of around $5,000. They do all the paperwork and then you get access to your 401(k) money and you avoid the 10% penalty. Do the math. If you have $250,000, is it worth $5,000 to avoid the $25,000 penalty to have access and control liquidity of that money? Do you have $2 million or 1 million? There’s a way to do it. This is an out of the box information than I am pounding to you.

How do you think it’s going to shake down the future with taxes? We have some lunatics that we have elected as a nation. They should be in the lunacy hearing for some of their ideas. It baffles me how anybody can want to pay 70% in taxes. I don’t care if you make $1 million a day or $365 million a year. 70% is stupid to pay in taxes. It doesn’t matter. It’s my opinion because the government is terrible. I will love to debate anyone on this. The government is ridiculously awful and terrible. The words to describe how bad the government is at managing and spending money is terrible. Why would I want to pay them more money in taxes? It’s complete nonsense. I have found some ways to limit and to reduce my tax burden to the government. It’s perfectly legal. One of them is putting cash in oil and gas. It’s an investment.

SMR 19 | Taxes

Taxes: Taxes are the greatest impediment to building wealth.

 

There’s a risk involved, but I like to do things according to the tax code. The tax code and in oil and gas is Section 2 63(c) and 59(e) about intangible drilling cost. IRS section 611, 613, 613(c)(6) is talking about the depletion allowance. IRS section 469(c)(3) is a passive activity loss rule. The government has a way where if you put your money in oil and gas participation project, you could potentially deduct up to a 100% of the amount you put in that you contribute. The law used to say 85% is the maximum and that doesn’t mean every project is going to go that way. It just means that the maximum they would allow would be 85%. With the new Tax and Jobs Act, Trump tweaked a couple of things where you could accelerate the 15% depletion allowance into the same year you invest. It depends on the project and when the wells are drilled. Worst case scenario, you’re looking at a 75% to 80% deduction. Do the math on that. If you put in a $100,000, do the math on that.

The first 15% of income is tax-free in the perpetuity of the well. Money is not consistent as far as I could show you my statement as far as the monthly income because it depends on one, are we going to hit oil? There are risks involved. Are we going to hit oil? Number two, the price of oil per barrel. Number three, how many barrels are being pumped per day, BOPD? I follow the price of oil closely. In fact, I was trying to explain it to my son on a stock project. Oil closed at roughly $55.75 per barrel. We would love for all to be around $55 per barrel and we think everybody wins. The landowners, the refineries and the investors will all win. $55 is not bad but it’s going to get worse. Everything I’ve read and the people I listen to is going to top out this year at around $68 a barrel. It may hit $70 for a little while and come back down. It’s not a bad time to get in. If you’re looking for a great tax deduction for the year you invest, a lot of people put their money in December of 2018 so they’re going to get a deduction for 2018 at March 2nd of 2019. You can use the deduction when you do your 2019 taxes.

I’ve only seen one person do this because he has some other write-offs. You can carry the deduction forward up to three years. There are so many things about oil and gas that are great but risks are involved in this. I believe the risks are mitigated, but there are still risks. Anytime you put a drill bit 4,000 feet deep in the ground, there are risks in our wells. We are mostly in the Permian Basin. We do have some in East Texas not far from Freeport, but there’s risk involved. It’s only for accredited investors. There’s a $50,000 minimum. I encourage you to get educated about certain parts of the tax code to deal with this. Learn about the tax code. I was talking about dealing with five parts of the tax code that deals with tax-exempt income. Tax-exempt income is better than tax-free income. In tax-free income like municipal bonds, you’re will still going to have to report the income and they’re still going to use it against provisional income. You don’t pay taxes on the actual income, but they’re still going to hammer you on Social Security.

Tax-exempt income is better than tax-free income. Click To Tweet

If you’ve been a high-income earner and when you start drawing your Social Security out, you potentially pay at the $200,000 even higher than that in taxes unnecessarily unknowingly because of where your money resides. I believe that taxes are the greatest impediment to building wealth. I believe the taxes are the greatest impediment to retirement. Let me show you some ways to lower those taxes. I’m no CPA, I’m no financial advisor, I don’t have all the acronyms behind my name. I just have a talk radio show and I’m just showing you what I have done and what I’m currently doing with my own money. I’m following the tax code. I encourage you to learn about the tax code and to see what else is out there. If you were just tired of hearing about stocks and bonds and CDs and REITs and mutual funds and annuities and you’re looking for something different, this could be a great place to look and see what else is out there.

I have some people that have allowed me to use their name on a private one on one setting. I encourage you to call them. CPAs have invested their own money because they have now realized the tax code and what it reads and what it says. Could the tax code change? It could change. We’ve only gone through two major tax reform changes. Taxes are the greatest impediment to building wealth. I hate taxes and you should too. That’s on the little book I want to give people in the back of it. I’m so sick and tired of these corrupt politicians. I just don’t want anyone telling me what I need to do. Unless you’re a doctor and unless you’re my good friend, Ryan Chauvin, who tells me that I have too much visceral fat.

I want someone educated and very intelligent to tell me what I need to do. I’ve been very fortunate to ask a lot of people. I was in Pittsburgh and I was with the author of this book called Smart Retirement. The author is Matt Zagula. He put a little training in Pittsburgh and it was dynamite. There were about seven or eight tax attorneys in the room and they were going over some things at backdoor Roth IRA. It was cool. There’s about 40 of us in and there were seven or eight tax attorneys. I was just listening and I was taking notes. There’s a way to backdoor Roth IRA. There are only two parts of the tax code that deals with tax-exempt income only to a Roth IRA and another strategy where the Ralph came from. That’s the only two. I can show you how you can retire about a third of what you think you need. If you have your money sitting in a certain place not tied to Wall Street and not tied to the perpetual taxes that you’re going to pay on every time you have a withdrawal from your IRA or 401(k), who knows what tax rates are going to be in the future? We don’t know that.

If someone is telling you that you’re going to be in a lower tax bracket when you retire, run or ask them to sign and date it on their letterhead. There’s no way they’ll do it because they’re predicting the future. No one can predict the future, except for I know I’m going to die. I know the mortality rate in this country and on this earth is 100%. There’s no way no one can predict future tax rates. I believe because of the highest amount of debt we’ve ever had in this country right now were some of the lowest tax brackets we ever had. I think they’re going to go up and you can be positioned to when they go up, it won’t affect you. Call me at 202-SAGE or 202-7243. The website is SageMoneyRadio.com. You can send me an email from there and listen to the podcast. Go to iHeartRADIO app and listen to the podcast. Stay safe, be safe, be smart and be cautious. As I tell my kids, have your head on a swivel when you’re walking out in the parking lot and looking around with a bunch of people you don’t know. Crazy people are going for plastic beads. Be safe and cautious. God bless you and God bless the USA.

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