Speaker 1: Welcome to another episode of the Chicks on the Right
podcast where we talk to our friend and sponsor of
the show, Zach Abraham from Bulwark Capital Management. We have
the cutest story.
Speaker 2: It is so cute.
Speaker 1: Oh my gosh, horrible, it's so cute. So there's I
don't know if you've seen it, there's like this viral
story going around about a ninety two year old precious
man in North Carolina who locally he's known as mister Gill.
And at ninety two, he decided, I'm bored in retirement,
so I'm just gonna go get me a job, and
he went to his local Chick fil A got a
job at the Chick fil A. He has been working
full time Monday through Friday for six years. I love
him and everybody loves him. Everybody loves him. He's like
officially like a you know, he mops the floors and like,
you know, he's just this precious little angel of a man.
But he says that his real purpose is like helping
customers feel good if they're going through some troubles. He
you know, he offers them encouragement and so on, and
so he's become just so everyone has fallen so hard
in love with him that when he missed a few
days for like having a cold, everybody's like, oh my god,
what's going on? Anyway, So the question for you, zac
as it pertains to retirement and finances and all that
kind of thing, because I don't think he needs the money.
He just needs the sense of purpose. And so how
often do you see that happening in your practice where
you've got people who are like in their eighties, even
who are like, I got to go to work.
Speaker 3: Yeah, you know, way more often you'd think, And it
it kind of drives home a message that did I've
even you know, I even talk to my kids about this,
which is we live in a world that's telling us
to check all these boxes, right. We live in a
world that's telling us if we do this, this will
make us happy.
Speaker 2: We do this, this make us happy.
Speaker 3: But you know, and you guys are a perfect example
of this. What really makes you happy is when you
find your purpose right, like the what you're what you were.
Speaker 2: Put here to do.
Speaker 3: And and then sometimes maybe it's not like your ultimate purpose,
but it's something that gives you purpose, right, and you
can't you there is no amount of money.
Speaker 2: That will, that will fill in that need to do that.
Speaker 3: If you want to know why really wealthy people get
hooked on drugs and become alcoholics stuff like that, it's
because they have got no purpose, right, They've got no mission.
Speaker 2: There's no reason to get up.
Speaker 3: And more importantly, I will say when people when when
I watch people retire, one of the biggest concerns I have,
and one of the things we talked to all of
our clients about is figure out some purpose, right, because
what you see happen all too often, and thank goodness,
we haven't seen it happen to our clients a lot.
But you see people retire and they're dead within three
to six months.
Speaker 4: Totally, Oh my gosh.
Speaker 2: You see it all the time.
Speaker 4: Or they check out mentally, you know, because it's like
they stop, they stop doing things, they stop having that purpose,
and then they just like mentally decline, physically decline, they
become sedentary, I mean, and so everything in every aspect.
Speaker 2: Of their life. I totally agree.
Speaker 1: I'm at risk of this, I think because like I
could tell, I am so good at lounging and like
being lazy.
Speaker 4: And I'm the opposite. I'm the antithesis of that, like
I know that if I've always told Mac, I'm like,
if you ever decide you don't want to do this anymore,
because we I'm like, I'm going to do this as
long as I can do it, as long as they say,
until somebody says she looks like the cryptkeeper, make her
go for my scream, you know what I mean. I'll
do what we do. But the thing is is that
even after we stop, I won't stop. I've told my
husband I'll keep I'll do something. I'll go teach or
do something, because I just know that I'll be like
that ninety two year old dude. I just I think
I have to work. I just like I like to work.
It's always given me a sense of purpose to get
up in the morning. I just I cannot. I won't stop.
I don't think i'll stop because and I've thought what
happens to people when they do, not saying it will
happen to you, Mary, and not saying it will happen
to anybody that we love or that's in our inner circle.
But I have seen people tangentially in my life who
do stop, and things do decline, and I don't want
that to happen either.
Speaker 2: In addition, no, the work, yeah, yeah no. And I'm
with you.
Speaker 3: So I love lounging and taking a break, but I
can do it for about a week, right, and then
after a week I just start getting squirrely and I
got to I just got to get back to the
grind in some way, shape or form. And it's one
of the reasons that I love what I do. Meaning
we were joking around not that long ago, and a
couple of guys were like.
Speaker 2: Yeah, you know, how long are you gonna keep this?
You're gonna sell it?
Speaker 3: And I was like, guys, I'm going to be walking
into the office when I'm eighty five and I barely
know what's going on, and I annoying.
Speaker 2: I'm going to the office.
Speaker 3: I want the heck out of our analysts because they're
gonna be like, oh, the old man's in here again,
you know. But yeah, I'm planning on. I don't luckily
what I do for a living. I don't, you know,
it's pretty easy to not you know what I mean,
It's an easy job to not quit quit doing right right.
Speaker 2: It's not like I need a good back to pick stocks.
Speaker 3: But no, I've said before I'll never retire fully not,
you know, I'm sure i'll work less when i'm eighty, hopefully,
but but yeah, no, it's just people give up their
people give up their purpose too willingly. And I just
I think that we always, as human beings, overrate what
we don't have and underrate what we do. And I
just cannot tell you how many times I've seen it
in retirement where three months in, six months in they're
walking around going, this is not what I thought it
would be, right, Like I don't have anything to do,
I'm bored, I don't feel I don't feel useful. And
then I look at the clients of ours that do
have something. Maybe that's spending tons of time with the grandkids.
Maybe that's going to all the grand kids' sporting events,
maybe that's helping out a local youth program or something.
All of the ones that do that stuff, they're loving life.
They're having a blast. They love retirement. It's the ones
that stop and like, you know that are like I'm
going to sleep untill ten every day, Like those ones
where it and I'm not looking down them.
Speaker 2: They've earned the right to do that.
Speaker 3: They're retiredly crying out loud but we keep our fingers
crossed because we're like this, it doesn't end well, it
doesn't end well. You got to you got to keep
running your race.
Speaker 2: You know.
Speaker 1: Yeah? Is there something that people ought to know? You know,
folks that, for example, are going to be reliant on
Social Security to some extent, assuming that it continues to exist.
Is there like, what's the rule about like how much
you're allowed to.
Speaker 2: Make versus you know what I mean?
Speaker 1: Before? Isn't there something, yeah, like before you risk losing
your Social Security? What's the deal with that?
Speaker 2: I believe I believe that. I believe that that numbers
moved around.
Speaker 3: I believe that cut off number is now like one
hundred and eighty four thousand dollars where you'll still get
you still get your solid security benefits, but out of
it they start taking more out for medicare, you start
getting hit for other things.
Speaker 1: Right.
Speaker 2: So that's one of the things that we do with
our clients.
Speaker 3: Is when we're when we're doing income planning for retirement,
right when it's time for them to start taking money out,
you're playing this game of going, Okay, we're going to
do this this year. We'll pull the money from over here.
Because it doesn't count as earned income. Therefore you're not
going to hit that one hundred and eighty four thousand
dollars mark, and we're not going to see that reduction
and benefits. But a lot of that stuff, these are
the things that kind of go into retirement planning that
a lot of people don't think about, right, and you
know it, And it's not like we're trying to build
the system, but we've all paid into the system. And
I feel like my job is to extract as much
from that system as is legally possible for my clients because.
Speaker 2: They eat in and for sure, the bottom.
Speaker 3: Line is right, Well, the other side of it is
the vast majority of us will pay in far more
than we will take out, like unfortunately the majority of us.
Speaker 2: There's there's obvious exceptions, but yeah, I mean, if.
Speaker 3: You're if you're an earner of one hundred and fifty
thousand or more per year for the better part of
twenty years of your career, you're going to pay into
more into Social Security than you're going to take out
for sure, And so our job is to help right
maximize that number, keep the tax implications as low as possible.
Speaker 2: And another one too.
Speaker 3: I will tell that this is I'm just kind of
throwing this in there as an addendum. But wroth conversions, right,
they've become a really hot topic. What I've started realizing
is that they've become a form of marketing, meaning people
are talking about roth conversions. I've had a couple of
people pull it with our clients, like saying, oh, the
people that you're working with are letting you down because
you haven't wroth converted. Okay, here's the deal in the
roth conversions another important part of income planning in retirement.
A lot of people, I would say the majority of
people could benefit from roth conversions. And what that is
is where we move money from a traditional eye right
into a roth account and at that time you pay
taxes on that money, but you'll never pay taxes on
it again. Right, So, no matter what you make in
the wroth account, you'll never pay taxes again. Okay, but
here's the catch. Typically you want to start doing those
roth conversions after you retire, and it takes some planning.
But the reason you want to do that is because,
like if I started taking roth conversions right now, I'd
pay thirty eight percent, Right, that's the upper tax i'd pay.
But if I know that I'm gonna quit working three
years from now, right, I know that my effective tax
rates gonn drop becau I'm gonn quit making income. So
that's when we should do the roth conversions because then
we can roth convert at like a twenty to twenty
two percent taxable rate, right, and so now that's like
cap gains, right, But now we're gonna get all that
money over into the WROTH and you'll never pay taxes
on it again. So anyway, part of that income planning
is a roth conversion. But do not let people think
that roth conversions are a panacea or they fix everything.
You should You shouldn't do them when you're earning your
maximum income in most cases, right. But yeah, another that
it can be a very you know. For instance, let's
say we have a situation where you're three quarters of
the way end of the year, and that that one
hundred and eighty three thousand dollars earned income level that
if you hit that in a year, you're going to
pay excess Medicare taxes and expenses for the next two years,
no matter what your income is in that year.
Speaker 2: It's like a two year penalty period.
Speaker 3: Right, So let's say all of a sudden, your roof
fails right in we've scheduled you, so you're going to
make one hundred and eighty grand. You're going to come
right in underneath it. But September your roof fails and
we find out you need new roof and it's going
to cost thirty grand. Well, if we had to pull
that out of the IRA, that's taxable income. Now it's
going to push us above the one eighty three level.
Now you're going to pay the TEP penalty for two
more years, right, Whereas if we've brought off converted that money,
we can pull that money out and it's there's no
taxable implication.
Speaker 2: It's just so absurd.
Speaker 1: See, this is the kind of stuff no one would
like just know this unless they're in the world of
finance like you are. This is why they should be
contacting you. And how can they do that?
Speaker 3: Yes, they can contact First of all, our podcast every
day we're covered everything that's going on in the world
of economics and finance and geopolitics. So Know your Risk
podcast you just search YouTube for that, and then for
our advisory services, go to Boworkcapitalmanagement dot com. We've got
a roadshow coming up this Thursday. Go to Borwordcapital Management
dot com. You can sign up for its free of charge.
You find out everything we do, how we do it,
what we do, and it's about a forty five minute
deal and you'll.
Speaker 2: Have a great idea who we are, what.
Speaker 3: We do, and if you want to talk to us further,
then you can set up a phone call with me
or one of my advisors and we'll get you squared away.
Speaker 2: Perfect, highly recomm act.
Speaker 4: Thank you, Zan, thank you so much.
Speaker 2: Thank you, ladies.
Speaker 3: Investment Advisory services offered through Trek Financial loc n SEC
registered investment advisor. The opinions expressed in this programmer for
general informational purpose is only, and are not intended to
provide specific advice or recommendations for any individual or on
any specific security. Any references to performance of security sore
thought to be materially accurate, and actual performance may different.
Speaker 2: Investments involve risk and are not guaranteed. Past performance doesn't
guarantee future results. Track twenty four three zero eight