Speaker 1: The full lines.
Speaker 2: They are open to you right now at six oh
Speaker 2: eight three two one thirteen ten. That's three two one
Speaker 2: thirteen ten. If you have questions for our retirement planning
Speaker 2: professionals from Class Financial, they are here for you. Of course,
Speaker 2: you can learn more about Class Financial on their website
Speaker 2: Cossfinancial dot com. That's Coss k l a A s
Speaker 2: Financial dot com. Great resource. Learn more about Coss Financial,
Speaker 2: the separate divisions, how they can help you, or if
Speaker 2: you're an employer. As a matter of fact, you're an employer,
Speaker 2: We're going to be talking about something very specific to
Speaker 2: you about the important role that you play in retirement planning.
Speaker 2: But you can learn more about Class Financial on their
Speaker 2: website Coss Financial dot com. That's Coss k l a
Speaker 2: A s Financial dot com and their telephone number six
Speaker 2: oh eight four four two five six three seven. No
Speaker 2: charge for that initial get to know you appointment tech
Speaker 2: Coss Financial. It will be complementary, complementary to you again
Speaker 2: their number six oh eight four four two five six
Speaker 2: three seven. And joining us this morning are CJ. Coss
Speaker 2: and Forrest Ross of Class Financial.
Speaker 3: C J.
Speaker 1: How you doing this week?
Speaker 3: I'm doing great. It's a beautiful day today, Sean.
Speaker 2: It is we just and uh Forest, we'll get to
Speaker 2: just one moment. I do want to say. We have
Speaker 2: folks that listen to the station. They hear you and
Speaker 2: I are actually actually you talking about the spring is
Speaker 2: ready for warm temperatures in spring, and I'm like, I
Speaker 2: guess mort I said, c J. We may need to
Speaker 2: just go in by the forecast. We may already need
Speaker 2: to re record that one.
Speaker 3: I know what, an't you know? We're early March still,
Speaker 3: and it feels like we're May already, so it's pretty nice.
Speaker 2: It's not going to complain. Nice thing too, is your
Speaker 2: plan right for retirement? If you don't like the early
Speaker 2: March weather when it gets snowy and grummy, you can
Speaker 2: you can take some time to Florida somewhere beautiful like that.
Speaker 2: Also joining us this morning is Forrest ross Forest. Great
Speaker 2: to have you back. You're ready for the beautiful day.
Speaker 4: Good morning, the sun is shining and everybody's happy.
Speaker 1: Darn right they are.
Speaker 2: What a great day and what a great topic I
Speaker 2: had as well as we talk with CJ and Forrest.
Speaker 2: Don't forget of course, they come to us from Class
Speaker 2: Financial that website. Coss financial dot com. That's Class k
Speaker 2: l a a s.
Speaker 1: Financial.
Speaker 2: As mentioned, we're going to be talking about the important
Speaker 2: role that employers play when it comes to retirement planning
Speaker 2: and some steps you can take when it comes to
Speaker 2: ensuring your financial future. One of the cool features of
Speaker 2: the program is the Closs Quiz Question the Week your
Speaker 2: chance to win a fantastic prize this week, no exception.
Speaker 2: You'll have to chanswer for you a little bit later
Speaker 2: on this morning to win a twenty five dollars gift
Speaker 2: card to the cheesecake factory. Our friends from Class Financial
Speaker 2: have provided that will tell you a little bit later
Speaker 2: on how you can win the class quiz quesch the
Speaker 2: week how you can win that prize.
Speaker 1: Little tip pays very well.
Speaker 2: And gives you a little leg up on everybody if
Speaker 2: you pay close Stenson the program, because just about every show,
Speaker 2: the question and answer come up during the program. Before
Speaker 2: we get rolling on this week's conversation, let's actually look
Speaker 2: back at last week's show and review the question and
Speaker 2: get the answer there as well.
Speaker 1: For the Class Quiz question of the week.
Speaker 3: Yeah you bet well. Firstly, thanks everyone for listening and
Speaker 3: for participating in this stuff. We have a good time
Speaker 3: with it and we hope you do as well. And
Speaker 3: congrats to our winner from last week, which was Lisa
Speaker 3: of Wanna Key. Lisa correctly answered the following question it
Speaker 3: was true or false. You can make a twenty twenty
Speaker 3: four contribution to an IRA up until April fifteenth of
Speaker 3: this year. Is that true or false? And Lisa was
Speaker 3: correct in saying that is true.
Speaker 2: Great work, Lisa, You too can be like Lisa Payple's
Speaker 2: tension to the program to the class quiz question leak
Speaker 2: a little bit later on in this half hour, as mentioned,
Speaker 2: we're going to be exploring the important role, the vital
Speaker 2: role that employers play in retirement planning, in practical steps
Speaker 2: you can take to secure your financial future.
Speaker 1: It's all still spout that CJ.
Speaker 3: Yeah. So some of these insights we're going to talk
Speaker 3: about came from the Retirement Survey and Insights Report from
Speaker 3: twenty twenty four by Goldman Sachs Asset Management. They provide
Speaker 3: valuable data and solutions to help both employers and employees
Speaker 3: navigate retirement savings. But with us today, as you've already mentioned,
Speaker 3: we have Forrest Ross, who is our director of Retirement
Speaker 3: Services here at Coloss Financial and so he's going to
Speaker 3: dig into some of this data and the finding, So
Speaker 3: Forrest go ahead.
Speaker 4: Thanks CJ, and thanks for having me on the show
Speaker 4: again this morning. Good morning everybody, and let's start by
Speaker 4: first of all, discussing what employers can do to help
Speaker 4: their employees plan for their retirement, specifically through the four
Speaker 4: oh one K plan that they're providing to their employees.
Speaker 4: And this survey and other research really indicates that employees
Speaker 4: put a high value on retirement savings support and financial
Speaker 4: advice that they can get from their four to oh
Speaker 4: one K plan. And this kind of makes sense when
Speaker 4: you think about it, because when you're planning for retirement,
Speaker 4: a lot of people can feel overwhelmed and just not
Speaker 4: sure what to do if they don't have the right guidance.
Speaker 4: So what can employers do to help provide some support
Speaker 4: to their employees through the four one K plan? And
Speaker 4: this survey indicated a couple of key ways employers can help.
Speaker 4: First of all, they can help by provide personalized planning
Speaker 4: tools through their four to oh one K plan. So
Speaker 4: these days, there's a lot of online calculators projection tools
Speaker 4: that can help employees figure out what's the right amount
Speaker 4: for me to save in my four to oh one
Speaker 4: K plan and how big of a nest egg do
Speaker 4: I need when I retire. That's one of the big
Speaker 4: questions that we get all the time when we're talking
Speaker 4: about participants about their four oh one K plan is
Speaker 4: how much do I save? How much do I need?
Speaker 4: And again, a lot of these tools can really help
Speaker 4: answer some of those questions for people and put a
Speaker 4: very complex question into very easy and understand terms. Next,
Speaker 4: an employer can provide financial advice through their four oh
Speaker 4: one K plan so employees consistently show that they value
Speaker 4: access to professional advice. Whether that comes through in person
Speaker 4: one on one meetings or group meetings or phone comsultations
Speaker 4: or zoom meetings. You know, there's multiple different ways that
Speaker 4: employers can provide that kind of access to employees that
Speaker 4: can really help them get some good guidance. Next, they
Speaker 4: can also look at expanding retirement plan features in their
Speaker 4: four oh one K plan. There's been some recent legislation
Speaker 4: that allows employers now some more innovative features like adding
Speaker 4: the option for student loan repayment matching program, emergency savings accounts,
Speaker 4: or even guaranteed income choices and all of those can
Speaker 4: really enhance an overall retirement plans effectiveness and also assist
Speaker 4: the employees as well, and then finally educate your employees
Speaker 4: again through the four oh one K plan with retirement
Speaker 4: with workshops and webinars, people really appreciate being able to
Speaker 4: access some of these wellness what we would call financial
Speaker 4: wellness tools, maybe when they're at home with their spouse
Speaker 4: at night. So giving the employees access to some of
Speaker 4: these more comprehensive financial planning topics through webinars and workshops
Speaker 4: can really be valuable to them as they're trying to
Speaker 4: navigate their financial situation.
Speaker 2: Talking this morning with Forest Ross and CJ. Closs or
Speaker 2: retirement planning professionals from Class Financial. If you've got a
Speaker 2: question'd love to hear from this morning telephone Mrs six
Speaker 2: eight three two one thirteen ten. That's six h eight
Speaker 2: three two one thirteen ten. Learn more about Class Financial
Speaker 2: online Cossfinancial dot com.
Speaker 1: That's coss Klaas Financial dot com for us. Anything else
Speaker 1: I know?
Speaker 2: Obviously, the relationship employer employee is a unique one. There's
Speaker 2: also some some other areas that that employers can be
Speaker 2: really beneficial with their employees.
Speaker 1: Isn't there.
Speaker 4: Yeah, absolutely, and the survey really said that employers have
Speaker 4: a unique opportunity to what they call go from default
Speaker 4: to engage planning experience for their employees. So this means
Speaker 4: going beyond just the standard features like auto enrollment or
Speaker 4: auto escalate and really help provide their employees with a clear,
Speaker 4: personalized roadmap so that way they can use these different
Speaker 4: tools in the forum that they're being provided for through
Speaker 4: their four oh one kese services to help them really
Speaker 4: make intelligent, thoughtful financial decisions.
Speaker 2: Great stuff this morning Forrest Ross and CJ closs O,
Speaker 2: our retirement finding professionals from Class Financial. I mentioned that
Speaker 2: website class financial dot com. That's coss k l aas
Speaker 2: financial dot com. Hope you get a chance to stop
Speaker 2: by there today. You can learn more about colss Financial,
Speaker 2: you can learn about the team. You can learn about
Speaker 2: CJ and Forrest and Malia and everyone over at claus
Speaker 2: Financial Eric as well of course all online at classfinancial
Speaker 2: dot com. Also, while you're there, you can sign up
Speaker 2: for the weekly Market Pulse newsletter. It's a great weekly
Speaker 2: email comes in your inbox. We'll snapshot of what's been
Speaker 2: going on in the market. Also link to the most
Speaker 2: recent podcast again. That available to you at classfinancial dot com.
Speaker 2: Betel for number six oh eight four four two five
Speaker 2: six three seven. No charge for that initial get to
Speaker 2: know you appoyment tech COSS Financial. It will be complementary
Speaker 2: to you again. Their telephone number six oh eight four
Speaker 2: four two five six three seven. Looks you to our
Speaker 2: conversation with cjn Forrest. We'll talk a little bit about
Speaker 2: four oh one k's and you. We'll do that next
Speaker 2: as Money in Motion with Coss Financial continues right here
Speaker 2: on thirteen ten wiv A talking this week with Forrest
Speaker 2: Ross and CJ.
Speaker 1: Closs.
Speaker 2: Of course they come to us from Class Financial. The
Speaker 2: website coss financial dot com. That's klaasfinancial dot com. Great
Speaker 2: website and resource to learn more about COSS Financial. Don't
Speaker 2: forget if you missed part of the program, you want
Speaker 2: to listen back to the show, or maybe you want
Speaker 2: to share some of the information with friends and family.
Speaker 2: Of course, the podcast available to you at Cossfinancial dot com.
Speaker 2: Their telephone number six oh eight four four two five
Speaker 2: six three seven. No charge for that initial get to
Speaker 2: know your appointment at Colss Financial. It will be complementary
Speaker 2: to you again. Their number six oh eight four, four, two, five, six,
Speaker 2: three seven. Talking in that last segment with Forrest about
Speaker 2: the employer side of retirement planning, let's kind of shift
Speaker 2: gears then and talk about what folks can do as
Speaker 2: it comes to being a four to oh one K
Speaker 2: plan participant. What can regular people do to kind of
Speaker 2: take control of their retirement planning?
Speaker 1: CJ.
Speaker 3: Yeah, So, whether your your employer offers extensive resources or
Speaker 3: you're managing this process on your own, there are some
Speaker 3: actionable steps you can take to kind of set yourself
Speaker 3: up for success with your employer sponsored retirement plan. Now,
Speaker 3: as I start talking about some of these actionable steps,
Speaker 3: just remember when we say this, often people go, what
Speaker 3: are they talking about? Employer sponsored? These are your traditional
Speaker 3: So if you work somewhere often not always, but often
Speaker 3: your employer will offer things like simple irays or SEP
Speaker 3: I rays or four oh one ks or four h
Speaker 3: three v's or fourty sevens or four oh one a's
Speaker 3: and there's all these different terminologies, but the idea being
Speaker 3: it is the your employer who is sponsoring that retirement
Speaker 3: plan for your benefit. So those are the plans we're
Speaker 3: talking about here, And these are the plans that have
Speaker 3: different resources potent available to you. We're going to talk
Speaker 3: about some of those resources and how to empower you.
Speaker 3: So Number one, take advantage of various employer resources. So
Speaker 3: things like if your employer provides financial planning tools or
Speaker 3: advisor access, we would suggest use those tools. These resources
Speaker 3: can simplify decision making and clarify your path to retirement.
Speaker 3: Check with your h artist's team at your employer to
Speaker 3: see what benefits are available. And when we say that,
Speaker 3: we're referencing, like you go to the website for the
Speaker 3: four to one K plan, often they'll have these calculators
Speaker 3: like calculate if you're saving enough to actually retire someday now.
Speaker 3: Often if you work with a financial advisor, they will
Speaker 3: do these same calculations for you. But the of course,
Speaker 3: an advisor costs money, right Whereas these employer financial planning
Speaker 3: tools that are on the website, they may be less robust,
Speaker 3: but they can at least give you a sense of
Speaker 3: if you're headed the right direction. Number two would be
Speaker 3: to increase your contributions. Even small increases in retirement contributions
Speaker 3: can make a big difference over time. For example, raising
Speaker 3: your four one K contributions by just one percent annually
Speaker 3: can add tens of thousands of dollars to your retirement
Speaker 3: savings through compound growth over a lifetime. If your employer
Speaker 3: offers matching contributions, obviously be sure to take full advantage,
Speaker 3: and it's essentially what we would call free money for
Speaker 3: your future. Do be aware of some of the maximum
Speaker 3: contribution limits. We've talked about this in previous shows, but
Speaker 3: if you are under the age of fifty in twenty
Speaker 3: twenty five, you can contribute up to twenty three thousand,
Speaker 3: five hundred dollars into your four to win K or
Speaker 3: four h three B. And if you're over the age
Speaker 3: of fifty, you get an additional seventy five hundred dollars
Speaker 3: catch up contribution, and believe it or not, starting this
Speaker 3: year and in future years, if you're over fifty, but
Speaker 3: specifically sixty to sixty three, your catchup amount is eleven thousand,
Speaker 3: two hundred and fifty dollars. So be aware of these ages.
Speaker 3: These are amounts going to want to like try to
Speaker 3: contribute to those four one K plans as much as possible.
Speaker 1: Really good detail, go ahead.
Speaker 2: John, I was gonna say, and it's some really good details.
Speaker 2: As we talk with CJ and Forrest this morning over
Speaker 2: you learn more online the website class financial dot com.
Speaker 2: That's Claus k l a A S Financial dot Com
Speaker 2: and CG. I know a big CJ over the year
Speaker 2: is a big thing. I mean, We've done entire shows
Speaker 2: about diversification, and I've got to guess that this expands
Speaker 2: through through all aspects of retirement planning, doesn't it.
Speaker 1: It does.
Speaker 3: Yeah, it's a good point, Sean. So we talk about
Speaker 3: diversification within your investments obviously, So it's this notion of
Speaker 3: don't put all your eggs in one basket. So we
Speaker 3: call this be aware of the risk of your decision
Speaker 3: making right. It's kind of like the person who says, hey,
Speaker 3: if I drink and drive, it's unlikely that I will
Speaker 3: get pulled over, and you go, yeah, but you might die, right,
Speaker 3: not to mention you might kill other people. So it's
Speaker 3: right when you look at at these factors of decisions
Speaker 3: that you make. Similarly, like on diversification, you have to
Speaker 3: look at the consequence of being wrong. So the consequence
Speaker 3: of putting all your money in one investment is if
Speaker 3: that investment doesn't do well, it ruins you financially. So
Speaker 3: in a similar way. And by the way most people
Speaker 3: get this, they go, yeah, yeah, yeah, but think of
Speaker 3: that through the lens of financial planning decision making, such
Speaker 3: as like I save everything into my four oh one
Speaker 3: K plan. Well, if you do that, are you are
Speaker 3: you aware of your debt load? Are you paying down
Speaker 3: your debt? Are you building up an emergency reserve so
Speaker 3: that if you lose your job you can actually live
Speaker 3: without having to tap your four oh one K plan
Speaker 3: before you're eligible. You get the idea that would be
Speaker 3: diversification of financial planning focus. So don't just think about
Speaker 3: saving into your four one K plan. Think about the
Speaker 3: rainy day fund, the high interest credit card debt, the
Speaker 3: auto loan that you have, the mortgage. Diversify your focus
Speaker 3: outside of the four one K plan. And Forest can
Speaker 3: attest when he goes to different employers that we work
Speaker 3: with where we sponsor the four one K or I'm
Speaker 3: not sorry not sponsor, but we're the advisor on the plan,
Speaker 3: he will often be talking about these topics. So he
Speaker 3: will say, hey, here's not only what you need to
Speaker 3: be doing in terms of saving into your retirement plan,
Speaker 3: but have you been thinking about these other topics. Step
Speaker 3: number four would be to just educate yourself. So if
Speaker 3: you're listening to this show, you can you can check
Speaker 3: the box because you're already educating yourself. But read articles,
Speaker 3: listen to podcasts. You know, often our clients will reach
Speaker 3: out to us and say, hey, what podcast do you
Speaker 3: listen to? And so truly I love this question because
Speaker 3: I could give you, you know, three or four fantastic
Speaker 3: financial podcast to just up your IQ. And then you know,
Speaker 3: Number five on our list is review and adjust your
Speaker 3: plan regularly. So this would be your estate plans, your
Speaker 3: financial plans, your insurance plans. This is the whole of
Speaker 3: your financial picture. You need to review it pretty consistently.
Speaker 3: We believe this is where a financial planner can be
Speaker 3: a huge value add because they will systematize or automate
Speaker 3: the ongoing review of your financial plan. We often find
Speaker 3: that if people do it on their own, they spend
Speaker 3: all their time on one topic. Right. Like one might
Speaker 3: be like, I love my investments and I look them
Speaker 3: up every single day, and then you go, do you
Speaker 3: have an estate plan? And they go, no, if I die,
Speaker 3: I don't know where my money is going. But I've
Speaker 3: got these great investments that are really great. You get
Speaker 3: my point. The idea is a good financial planner. We'll
Speaker 3: be looking at the scope of your financial life and
Speaker 3: kind of forcing you to pull your head out of
Speaker 3: the sand and look at it all.
Speaker 2: Talking this morning with CJ. Closs and Forrest Ross. They
Speaker 2: are our retirement planning professionals from Class Financial. I mentioned
Speaker 2: the website too, colssfinancial dot com. That's coss k l
Speaker 2: Aasfinancial dot com. Great website there, Tell for what number
Speaker 2: six oh eight four four two five, six three seven.
Speaker 2: Don't forget no charge for that initial get to know
Speaker 2: you apployment dech loss Financial. It is complimentary to you
Speaker 2: again their number six oh eight four four two five
Speaker 2: six three seven and CJ laid out really good information there.
Speaker 2: And I've got a guest though, for ust take some
Speaker 2: time and effort to kind of put that stuff into practice,
Speaker 2: doesn't it?
Speaker 4: Oh? Absolutely? And you know, we really feel the key
Speaker 4: is to first of all, get started, take some initial action,
Speaker 4: and then stay consistent. You know, whether you're an employer
Speaker 4: looking to really empower your employees to make good financial decisions,
Speaker 4: or you're an individual striving just to get kind of
Speaker 4: on the right track and establish some financial security. Intentional
Speaker 4: planning and steady action can really make all the difference.
Speaker 2: So forst and what is kind of that personalized plan,
Speaker 2: what does that look like?
Speaker 3: Yeah, you know.
Speaker 4: It's interesting because it's different for everybody, right, I mean,
Speaker 4: my plan is going to look different from CJS and
Speaker 4: CJ's is going to look different from yours. So you know,
Speaker 4: you really have to really try to look at your
Speaker 4: unique circumstances and come up with, you know, what is
Speaker 4: your income, what are your goals, and then do some
Speaker 4: really specific planning and projecting for how does your future
Speaker 4: look and how are all those different financial pieces that
Speaker 4: we talked about earlier going to fit together. But then
Speaker 4: you also have to be aware of, you know, things
Speaker 4: happen in life. It can throw you a curveball, so
Speaker 4: your plan has to be able to kind of be
Speaker 4: flexible and be able to accommodate some of those unexpected
Speaker 4: things that can come up as well.
Speaker 1: Talking this morning with CJ.
Speaker 2: Closs and Forrest Rosser Retirement Planet professionals from Class Financial
Speaker 2: website Class Financial dot Com Tellphy number six so eight
Speaker 2: four four two five six three seven. So Forrest, let's
Speaker 2: let's kind of work out some hypothetical scenarios.
Speaker 1: And kind of put this into action.
Speaker 4: Yeah, thanks, So, just to give a couple of quick
Speaker 4: examples here, let's say that we have Sarah and she's
Speaker 4: a thirty five year old mom working, so she's trying
Speaker 4: to juggle her child care, her childcare costs, mortgage all
Speaker 4: of her expenses, and you know, without a plan, maybe
Speaker 4: she's not able to even contribute to a four oh
Speaker 4: one K plan through her employer. If she does it,
Speaker 4: maybe it's just sporadically. But if she sits down and
Speaker 4: takes the time to develop a plan with a professional,
Speaker 4: maybe she's able to establish a budget to kind of
Speaker 4: get control of her expenses. That then she can start
Speaker 4: saving small, consistent amounts into a four to oh one
Speaker 4: K plan and maybe even increase it as time goes
Speaker 4: on and she gets pay raises, and those kind of
Speaker 4: action items can really help put her on track to
Speaker 4: be successful overall. And let's also take a look at
Speaker 4: maybe a second person, Jim, who's maybe thirty years old,
Speaker 4: hearing retirement and Jim realizes that he didn't start saving
Speaker 4: for his retirements until later in life, maybe either his
Speaker 4: late thirties or early forties, and he really feels like
Speaker 4: he's behind the eight ball, right, He's like, I didn't
Speaker 4: start until later. You know, how am I ever going
Speaker 4: to get where I need to go? And the answer
Speaker 4: is he can still get there, but maybe he needs
Speaker 4: a plan to help make him realize that he can
Speaker 4: use those catch up contributions that we talked about earlier
Speaker 4: or other things to help make up for that lost time,
Speaker 4: so that way he can get back on track and
Speaker 4: optimize his savings and help really enhance his nest egg
Speaker 4: for his overall retirement. So here's really what we believe.
Speaker 4: The takeaway is, you know you can achieve financial security
Speaker 4: and retirement have a successful retirement. It is possible, but
Speaker 4: it doesn't usually happen by accident. You know, it really
Speaker 4: requires some serious intentional thought in planning, and you should
Speaker 4: really just start by assessing your current situation in where
Speaker 4: you at and then set out really clear, thoughtful, actionable goals.
Speaker 4: And please don't hesitate to reach out to a professional
Speaker 4: if you need help, whether it's a financial planner CPA,
Speaker 4: a trusted family member, or tapping into those four oh
Speaker 4: one K resources that we talked about from your employer.
Speaker 4: Don't be afraid to ask for advice if you really
Speaker 4: feel like you need it.
Speaker 2: Talking this morning with Forrest Ross and CJ Closs of
Speaker 2: Class Financial. Really great information this week as always, don't
Speaker 2: forget some great data. Subscribe with the podcast head on
Speaker 2: over to Clossfinancial dot com. That's Coss k l a
Speaker 2: a s Financial dot Com. Of course, can subscribe right
Speaker 2: online learn more about Coss Financial as well as sign
Speaker 2: up for the weekly Market Pulse newsletter that again available
Speaker 2: to you at class financial dot com. The telephon number
Speaker 2: six oh eight four four two five six three seven.
Speaker 2: No charge for that initial gets to know you appointment
Speaker 2: at Coss Financial. It will be complimentary to you. We're
Speaker 2: going to continue our conversation with CJ and Forrest. We're
Speaker 2: also going to check the inbox. We will do that
Speaker 2: next as Money in Motion with Coss Financial continues right
Speaker 2: here on thirteen ten.
Speaker 1: Wu ib A.
Speaker 2: Had a lot of great information so far in this
Speaker 2: week's program, Don't forget. You can listen back to the
Speaker 2: podcast at Cossfinancial dot com. You can subscribe there as well. Again,
Speaker 2: that's Coss Financial dot com. K l a A S
Speaker 2: Financial dot Com. Telephone number six oh eight four four
Speaker 2: two five six three seven, No charge for that initial
Speaker 2: gets to know your appointment at Colss Financial. It will
Speaker 2: be complementary to you again their number six oh eight
Speaker 2: four four two five six three seven. Coming up a
Speaker 2: little bit later in the segment, we'll do the Money
Speaker 2: in Motion the closs quiz question of the week. We'll
Speaker 2: do that a little later the segment, but first we've
Speaker 2: got the Money in Motion listener question corner and Tom
Speaker 2: took the time to write in he's got the following question.
Speaker 2: He says, my father recently passed away and left me
Speaker 2: his IRA. I've heard something about a ten year rule,
Speaker 2: but I'm not sure what that means. How does it
Speaker 2: affect my inheritance and what are my options for taking
Speaker 2: distributions in CJ.
Speaker 1: I'll give that one to you.
Speaker 3: Yeah, yeah, well obviously first thinks, First, my apologies on
Speaker 3: your father's passing. Always well, anyway, always difficult to lose
Speaker 3: a loved one, especially a parent. But to answer your question,
Speaker 3: when you're inheriting an IRA from a parent, understanding distribution
Speaker 3: rules is crucial to making informed financial decisions, So great question.
Speaker 3: Under the Secure Act of twenty nineteen, most non spouse
Speaker 3: beneficiaries like children in your case, must follow some and
Speaker 3: called the ten year rule. Now, it didn't used to
Speaker 3: always be this way. So you used to be able
Speaker 3: to inherit money from a parent it was in a
Speaker 3: retirement account, and you could use your own life expectancy
Speaker 3: tables to perform distributions over your life expectancy, but not
Speaker 3: so much anymore. If the death occurred after twenty nineteen,
Speaker 3: then these new rules apply, which is this ten year rule.
Speaker 3: And this means that while you are not always required
Speaker 3: to take an annual minimum distribution, you must fully withdraw
Speaker 3: all the funds from the IRA within ten years of
Speaker 3: your father's passing. Now, I do want to just hone
Speaker 3: in on something there. You may or may not be
Speaker 3: required to pull annual minimum distributions. It depends upon whether
Speaker 3: or not your father had had reached his required beginning
Speaker 3: date known as an RBD. If your father had reached
Speaker 3: his required beginning date, which is just for rm D purposes,
Speaker 3: then you will have to continue pulling out at least
Speaker 3: a minimum distribution and then make sure that all the
Speaker 3: money is out by the end of the tenth year. Now,
Speaker 3: remember if this is a traditional IRA, as that money
Speaker 3: comes out, it becomes income taxable to you. And finally,
Speaker 3: if it's a roth iray. You still have to abide
Speaker 3: by the same rules of getting it out, either you know,
Speaker 3: a little bit at a time, or all at the
Speaker 3: end of the tenth year. But there's just no tax
Speaker 3: as you pull the money out of the wroth for everybody,
Speaker 3: just so you know, when our clients come in. Most
Speaker 3: of the time, not always, but most of the time
Speaker 3: we are actually spreading out that ten year that that
Speaker 3: distribution over ten years pretty equally, especially if our clients
Speaker 3: are old enough. So I don't know your age, but
Speaker 3: you know, depending on your age, it might just be Hey,
Speaker 3: if I'm in retirement, you know, and I need to
Speaker 3: pull out the money and it's taxable as I receive it,
Speaker 3: how should I do this? Many times we're just evenly
Speaker 3: distributing it. There would be an exception if that was
Speaker 3: a wroth ira there's a wroth, we'd want to leave
Speaker 3: it alone as long as possible. But long story short here,
Speaker 3: this whole ten year rule has created a lot of
Speaker 3: additional confusion for people. They don't know how to adhere
Speaker 3: to the rules. A lot of the custodians have not
Speaker 3: built tools to actually help you on this, so many
Speaker 3: times they don't even know think the schwabs and fidelities
Speaker 3: of the world to be like I don't know. It
Speaker 3: depends on exact circumstances. Talk to your financial advisors what
Speaker 3: they'll say. So it just really encourage you when you
Speaker 3: start getting into inherited retirement accounts and needing to meet
Speaker 3: certain guidelines or rules. This is probably where a good
Speaker 3: CPA or advisor would be a big help.
Speaker 1: What did RBB stand for against CJ We haven't died all.
Speaker 3: A required beginning date. So for those who have heard
Speaker 3: us talk about required minimum distributions for Americans, currently, your
Speaker 3: RMD age is seventy three, the year in which you
Speaker 3: turn seventy three, but depending upon when you were born,
Speaker 3: it may even be seventy five, so somewhere it's either
Speaker 3: seventy three or seventy five. But your required beginning date
Speaker 3: is April first of the year following the year you
Speaker 3: turn RMDH. So if your MDA is seventy three and
Speaker 3: that's in twenty twenty five, you don't have to pull
Speaker 3: out a minimum distribution until April first of next year.
Speaker 3: So interestingly enough, then you say, well, but my father died,
Speaker 3: what does that have to do with it? The question
Speaker 3: is did your father reach their RBD that April first
Speaker 3: of the year after hitting r MD age. And if
Speaker 3: the answer is, oh, yeah, yeah, yeah, my father was
Speaker 3: seventy eight years old and had a minimum distribution, well
Speaker 3: then you actually have to continue pulling a minimum distribution
Speaker 3: that was at least as much as what he was
Speaker 3: over those ten years, and then by the end of
Speaker 3: the tenth year, all the money has to be out
Speaker 3: of the retirement account. Oh boy, A bunch of complications.
Speaker 2: So and for folks that don't know, I kind of
Speaker 2: keep a little cheat sheet glossary here when I like
Speaker 2: to jot down when I hear something new, I like
Speaker 2: to jot it down just when it comes up in
Speaker 2: future hills. And I don't think we ever talked about
Speaker 2: RBD before, so it's, uh, that is fascinating.
Speaker 3: No, you're just not listening closely enough, Sean. We have
Speaker 3: have We really did, really, I think so I seem
Speaker 3: to remember talking about I'm just giving you.
Speaker 2: As you shoot, as you know what I'm going to
Speaker 2: be doing today listening back to podcasts, and of course
Speaker 2: it's real easy to do right at classfinancial dot com,
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Speaker 2: You can hold on to that telephon number because it's
Speaker 2: time now for the Coss Quiz Question of the week.
Speaker 1: It works like this.
Speaker 2: In just a moment, I'll ask you the Coss Quiz
Speaker 2: Question the week. You'll then have thirty minutes from the
Speaker 2: today's program to call the Class Financial office right here
Speaker 2: in Madison again the number six oh eight four four
Speaker 2: two five six three seven. If you are the first
Speaker 2: call with correct answer, win this week's prize, which is
Speaker 2: say twenty five dollars gift card to cheesecake factory. This
Speaker 2: week's Closs Quiz Question the Week is this in twenty
Speaker 2: twenty five, what is the total amount you can contribute
Speaker 2: into your employer's retirement plan if you are under fifty?
Speaker 2: Is it twenty thousand dollars or twenty three thousand, five
Speaker 2: hundred dollars? Telephone number six oh eight four four two
Speaker 2: five six three seven. First cost correct answer, wh that's
Speaker 2: twenty five dollars gift card to the cheesecake factory. And
Speaker 2: again that's COSS Financial's office right here in Madison six
Speaker 2: four four two five, six three seven CJ.
Speaker 1: Forrest always great chatting with both of you guys. Have
Speaker 1: a great day.
Speaker 4: Thank you very much.
Speaker 1: Take care guys.
Speaker 2: Doctor Marty Greer comes your way next here on thirteen
Speaker 2: ten WUIBA. This is Money in Motion with COSS Financial
Speaker 2: Asset Advisors, LLC, a registered investment advisor registered with the SEC.
Speaker 2: The contents of this show are for informational purposes only
Speaker 2: and should not be considered individual investment advice. Class Financial
Speaker 2: does not offer tax or legal advice. Any opinion offered
Speaker 2: during the course of this show is the opinion of
Speaker 2: that particular investment advisor representative, and not necessarily the opinion
Speaker 2: of COSS Financial. News comes your way next right here
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