Ryan shares some stories about his experience with clients and how they can at times be extreme in their actions and thoughts. In many cases the same clients will swing from one extreme position to the polar opposite position within a very small period of time. Ryan tries to support his clients to have a more moderate, level headed approach to retirement and life.
Retirement My Way
Ryan discusses different scenarios that can present themselves to people as they approach retirement and in early retirement. Do they keep their home, downsize, use the equity, etc? Ryan informs us on what strategies work and what strategies we should avoid.
On this addition of Summit Financial Partners Question and Answer video, Ryan answers a few questions regarding our upcoming Apex Club Client Event in October. Our clients have been eagerly waiting for the unveiling of the Apex club. Unfortunately, due to Covid, there was a significant delay in the start of this program. However, the wait is over, and the Apex club is being launched in late October. Clients will be able to attend the event and learn everything that the Apex club has to offer. They will be able to hear from our different specialists who will be participating and assisting our clients who opt into the club. This will go above and beyond, and address concerns and needs for clients that SFP does not currently address. We will be helping with Medicare planning, tax strategies, estate planning reviews, health and nutritional guidance, an app that will integrate all facets of your financial life, and more. On Wednesday, October 27, Clients will be able to attend the event and listen from all the different professionals involved in this program. We are excited to offer this and we’re very proud of the work it took to put this together. Join us October 27 to learn more about the Apex club and how it can help you.
Who is the Apex Club for?
- The Apex Club is for all clients of SFP, who feel that they will benefit from the services offered.
- It is only available to current. This is an additional service and is not offered to the public.
- The only exception to the rule is that spouses of clients can potentially enroll in the Apex Club.
What are the different programs included in the Apex Club?
- It will offer services from several different professionals that have a proven track record of success and integrity.
- There will be financial services like tax strategies, estate planning, and insurance savings.
- Health and wellness guidance for nutrition, meditation, and exercising.
How do I know if the Apex Club is right for me?
- You will receive a deep explanation on each service provided at the event.
- You will also get to hear from and meet all the other professionals that will be part of the Apex Club.
- At that point you can make an educated decision as to weather or not The Apex Club is right for you.
Ryan receives a question about what makes Summit financial partners different from some of the other firms in the industry. Ryan explains that Summit financial partners has been constructed with service and family in mind from day one. Ryan refers to Summit Financial Partners as the SFP family, and for good reason. Client gatherings look much more like family reunions then business events. Ryan has been lucky enough to have relationships with some of his clients for close to 20 years. At the core of Summit Financial Partners is a desire to serve their clients. That is achieved by creating a unique situation where clients can get all their financial concerns addressed in one place. The goal in mind was for a client to be able to call one number and address many different areas. SFP has relationships with a CPA, estate planning attorney, insurance agent, Medicare specialist, and many other professionals. By having a team and process in place, this allows clients to enter retirement with peace of mind and relaxation. They know that their financial concerns will be answered when problems arise. The team and structure allow issues to be dealt with quickly and efficiently.
Why does SFP strive to stand out in the retirement planning industry?
- People need a one stop shop when it comes to retirement. Things are too complicated for the average person to handle it on their own.
- By giving their clients concierge service, they can relax and enjoy their golden years.
- Clients have worked 30, 40 and even 50 years in some cases, and deserve the best services possible.
What are the different ways that SFP differs from the competition?
- SFP works with other professionals (CPA, Estate Attorney, Insurance Agent, etc..) to make sure that everyone is working together to achieve the client’s goals.
- Being of value to the client is always top priority.
- Financial education classes are regularly provided to clients free of cost.
What advice does Ryan have for people looking to work with a retirement firm?
- Make sure that there is a team in place to assist with all areas of retirement.
- Ask what they do well and don’t do well with. Make sure that they’re not trying to be all things to all people.
- Ask what guarantees they are willing to put their names to.
Ryan received a call from a client today that wanted to know how he avoids burn out with all the hours he puts in at the office. Ryan explains that it is a very valid concern and something that he must work very hard at two avoid. However, his solution to the problem is quite different than what most people would recommend to avoiding burnout. The common approach is a separation of work and home life. When you are at work you work, and when you are at home you focus on the family. But Ryan takes a completely different approach to this theory. Ryan strives to integrate his work life and home life together because with the number of hours that he works, his home life would suffer. That is why Ryan frequently has his two daughters in the office so that he can spend time with them during the day. They know lots of Ryan ‘s clients and have a great relationship with them. Ryan’s daughters will often communicate with Ryan’s clients even when they are not in the office, through text and emails. It is a great joy of Ryan’s to see how Important his clients are to his girls and vice versa. It is never easy to balance work and home, but if you can find a way to integrate the two it will make work and home more productive and fulfilling.
What are some of the biggest obstacles to work life balance?
- Many people struggle to find a balance between business and home life.
- To achieve any amount of success at work many hours and sacrifices are required.
- Often, when someone fished at work and home, they are still mentally focused on their jobs, making it difficult to be present.
- These distractions can cause immense frustration both at work and at home.
What are the different ways that Ryan achieves work life balance?
- Ryan spends a lot of time at the office, so he understands the struggles as well as anyone.
- Instead of separating the 2 (business and home life), he strives to integrate them.
- Ryan’s kids are frequently at the office and around his clients.
- His clients play a big role in the lives of his daughters as well.
What advice does Ryan have for people looking to integrate their home and business life?
- Ryan stresses integration over separation when it comes to work life balance.
- Make sure that you can involve your family as much as possible when it comes to your career.
- Your family in most cases will be happy to see your business and how it functions.
On this edition of Summit Financial Partners question and answer, Ryan receives a question regarding qualified versus nonqualified accounts. A big part of Ryan’s responsibility is to educate his clients on different types of accounts and how they can impact your retirement and more specifically your taxes. A qualified account is an account that people are able to save funds without paying taxes on the savings. These are most commonly known as employer sponsored retirement accounts, like a 401(k), 403B, 457, or TSP. An IRA or individual retirement account is also a qualified account. Because the government allows you to not pay taxes on the funds that you save for these accounts, these accounts do become fully taxable when you take distributions out in retirement. So, your tax burden on these types of savings accounts is higher than Nonqualified accounts in retirement. Traditionally when you take distributions from an account you are only taxed on the gains. But you are taxes on the gains and principal for qualified accounts when you take distributions out in retirement. The common belief is that you will be in a lower tax bracket in retirement because you’re no longer working, so that when you do take distributions your tax bracket will be lower than it was during your working years making this a significant advantage overall. It is very important that you work with a specialist so that you know what your taxes will be on these distributions, and also to create strategies to make these distributions on the most tax favorable basis possible in retirement. It is ideal to have a mix of non-qualified and qualified assets in retirement so that do you have flexibility in terms of what accounts do you want to take distributions from in any given year. Also, it is important to remember that at age 72, the government forces you to start taking distributions from any qualified accounts that you may have.
What does Qualified Assets mean?
- Qualified assets referrers to money that was saved on a tax favorable basis.
- You are not required to pay taxes on the money contributed to tax qualified plans.
- Qualified Tax plans are 401ks, IRAs, 403bs, 457s, or TSPs.
- Because you didn’t pay taxes when you put the money way, they are fully taxable when you take distributions.
What are the different ways that Qualified assets could impact my plan?
- People in retirement need to account for how their distributions will be taxed when they occur.
- At 72 years old the government forces you to start taking distributions from these accounts (RMDs).
- These accounts will increase your taxable income because they are counted as ordinary income.
What advice does Ryan have for people looking to plan for retirement?
- Make sure that you work with a specialist that can guide you on the different strategies to address the tax implications of these accounts.
- There are certain investments and annuities that are designed to help minimize the taxable liability of certain assets.
- Make sure your plan is designed that can maximize the advantages of both qualified and non-qualified accounts.
Eric, from Chicago, asks about planning with parent’s finances.
What are some of the things that someone should consider when assisting with their parent’s finances?
- Small adjustments on any of your parent’s accounts could have major changes down the road.
- Do not make changes out of convenience, make sure that all decisions are carefully decided on.
- Everyone’s situation is different, there is no cookie cutter solution.
How I find out what the taxes consequences will be if adjustments are made to my parent’s assets?
- Working with a tax professional should give you guidance on what the impacts of the changes will look like.
- Attorneys should also play a roll in any changes that take place.
- There are usually community nonprofit resources that could help educate you on planning for and with parents.
What advice does Ryan have for people that are going to work with their parents as they head into retirement?
- Work with a team of professional to make sure that you are making the right decision. (accountant, attorney, and retirement professionals)
- Create a plan in writing to make sure that it is executed efficiently.
- Make sure that everyone in the family is aware of the changes so that it will not be a surprise down the road.
On the latest addition of SFP question and answer, Ryan takes a question from Eric in Chicago. Eric ‘s father is getting up there in age, and Eric is in the process of assisting him with his finances. To make things more convenient for Eric and his dad, Eric is considering putting himself as the joint owner on some of his accounts. Eric ‘s question to Ryan is whether or not it makes sense to put himself along with his dad as the joint owner in the accounts.
Ryan runs into these types of situations all the time with his clients. Being a retirement specialist Ryan works with people who are in their late 50s too late 60s. So, this group of people obviously, has parents who are getting older and need assistance with their finances. Ryan warns Eric that putting himself as a joint owner on the account could be a major mistake in the future. Eric could lose his tax benefits when his father passes by being the joint owner, these benefits would become taxable, and Eric would be responsible for paying the taxes on the gains in his father’s accounts. This could be a gigantic difference in terms of what Eric would stand to inherit from his father. Ryan advocates that people who are looking to help or assist with their parent’s finances, as their parents are aging, should always consult a professional on these matters. An accountant or attorney will be able to guide you and advise you through this process. They should be able to tell you the pros and cons of each move before you make it. This way you will have a roadmap laid out for how you are going to navigate these difficult times. I work in these prefer with these professionals and having a written game plan you will be able to avoid Potential mistakes and maximize the inheritance left over.
Charlotte, in Portland Oregon, asks about avoiding early withdrawal penalties on retirement accounts.
Why would I have to pay an early withdrawal penalty from my retirement account?
- Retirement accounts or qualified accounts are subject to certain benefits and restrictions.
- Some the most common qualified account is a 401k, 403b, IRA, 457, TSP.
- The IRS allows you to deduct your contributions from these plans from your taxes.
- If you want to withdraw funds from these accounts prior to age 59.5 years old, there could be a potential 10% IRS penalty.
Is there any way to avoid paying?
- If your distribution prior to age 59.5 is a result of a death, disability, or financial hardship then they could potentially waive the penalty.
- There is also another way to distribute the funds early without penalty by doing a 72t withdrawal.
- A loan is another way to take money from your accounts early, but that needs to be paid back with potential interest.
What advice does Ryan for people considering taking early withdrawals?
- First off, do not take funds from these accounts unless it is unavoidable.
- If you are thinking about doing a 72t, then make sure that you work with a specialist that can guide you through the process because it can be extremely difficult to do it properly.
- With the proper planning this situation should be avoidable and unnecessary.
On the latest addition of Summit Financial Partners question and answer series, Charlotte from Portland Oregon, asks Ryan about avoiding early withdrawal penalties on retirement accounts.
When withdrawing money from retirement accounts there are a lot of potential obstacles that could make a serious and significant impact on your financial well-being.
First off, when we talk about retirement accounts, usually we are talking about qualified accounts. A qualified account could be an IRA, A 401(k), 403B, TSA, just to name a few.
These types of accounts have a lot of benefits to them as well as restrictions, and you need to be aware of both to navigate this tricky landscape.
The IRS allows you to deduct the money that you contribute into these plans from your tax returns. However, when you take this money out, it is fully taxable, both principal and interest. In addition to being fully taxable when you take withdrawals, it could also be subject to a 10% IRS penalty for early withdrawal.
In early withdrawal would be taking funds out prior to the age of 59 1/2 and still working, or 55 years old and separated from service. So, if you consider that these withdrawals are fully taxable, and could carry a 10% IRS penalty as well, these could have devastating consequences to your retirement plan.
However, there are some ways to avoid paying the penalty if you are taking early distributions.
One way is if you have endured a death, disability, or financial hardship. In that case there could be a waiver, so that you are not forced to pay the 10% penalty to the IRS, however it will still be fully taxable.
Another way to avoid paying the 10% IRS penalty could be to do a 72T distribution strategy. The 72T distribution strategy could get you around paying the 10% penalty, but you have basically committed to taking 10 equal and consistent distributions from your account until it is depleted.
The last way to get them funds out without paying the penalty is through a loan. You can take a loan from some of these qualified accounts at an earlier age., But you do have to pay it back and you could be paying interest on the loan as well.
Ryan’s advice for people looking to take early withdrawals from qualified account is very simple. Only do it if it is a last resort and unavoidable.
Furthermore, if you are thinking about doing a 72T distribution strategy then you need to consult a specialist who can guide you through the process. It can be very tricky and difficult to fill out these forms properly and to make sure that everything goes through smoothly.
With the proper planning on taking the right steps having to take early distributions from your timer account should be avoidable.
Daryl, from Oklahoma City, asks about Veteran’s benefits in retirement.
Are there additional benefits for veteran’s entering retirement?
- There could be additional benefits available to veterans.
- These benefits could be health care related or pension like.
- Everyone’s situation is different so there are no blanket statements with respect to potential benefits.
- There could be potential spousal benefits as well.
How can find out if I qualify for any potential veteran’s benefits?
- There are resources available through the VA that can direct you to your well-earned benefits.
- There are also nonprofits that specialize in providing services to veterans.
- Many vets rely to their former Military friends and colleagues for guidance.
What advice does Ryan have Vets thinking about retirement?
- You have served your country and deserved every penny that you could potentially receive.
- Set up an appointment with the VA to see what you are entitled to, as soon as possible.
- Talk to multiple agencies, nonprofits, and people to make sure that you are not missing anything.
On this edition of Summit financial Partner’s question and answer show, we get a question from Darrell, who is also a veteran, about what potential benefits he could receive in retirement due to his service to our country.
Ryan starts off by thanking Darrell for his service and thanking all men and women of this country who have served. We know that any liberties, freedoms, and rights that we enjoy are due the sacrifice and service that the men and women of the military have made over the history of this country.
As for potential benefits for veterans entering retirement, there could be many services available to you depending on your type of service, years of service and roll during your military career.
First off, Ryan would recommend that you check with the VA to see what you may or may not be entitled to. In addition to talking to the VA, there are other nonprofit organizations that serve veterans and can guide them on what they may be eligible to receive.
Now, these benefits will be different from person to person, but most of them will take the shape of healthcare benefits and/or financial or pension like benefits. The healthcare benefit could be a complete benefit that is of no cost whatsoever to the individual, or it could be a subsidy to a healthcare benefit or a supplement to a benefit.
There is pension and/or pension like benefits available to veterans depending on their years of service.
Furthermore, there are also educational benefits, home lending programs, and business lending programs as well.
Again, we strongly urge you to speak to a nonprofit that specializes in serving veterans or the VA to see what you are entitled to, and it might not just be that you are entitled to a benefit, your spouse could also be entitled as well.
Ryan is extremely passionate about giving back especially to veterans who have put their life on the line in protection of our freedoms, and strongly urges veterans to seek multiple consultations and speak to multiple organizations about what they could potentially receive.
Bev, in Virginia Beach, asks Ryan to explain the difference between Medicare and Medicaid?
What are some of the features of Medicare?
- Everyone is eligible to enroll in Medicare at age 65.
- Depending on weather or not you are working you could elect to stay on your employer’s health insurance plan.
- Premium payments for Medicare could depend on your assets and income level.
- Medicare will never expire or refuse an individual eligibility due to preexisting conditions.
What are some of the features of Medicaid?
- Medicaid is the nation’s public health insurance program for people with low income.
- Medicaid covers 1 in 5 Americans and serves diverse populations.
- Medicaid covers a broad range of health and long-term care services.
- Medicaid is jointly financed by states and the federal government.
What advice does Ryan have for people looking to create a strategy around Medicare and Medicaid when entering retirement?
- Make sure that you work with a specialist that can guide you on the different strategies to address Medicare and Medicaid planning.
- An estate or elder care attorney can be very helpful to navigate the rules around these programs.
- A sound retirement plan should address both programs.
On this edition of SFP Retirement My Way Question and Answer, Ryan receives a question from Bev in Virginia Beach Virginia. Beverly asks Ryan to explain the difference between Medicare and Medicaid.
Ryan receives a lot of questions surrounding these two programs. And there are often a lot of confusion and miss information surrounding Medicare and Medicaid.
Medicare here is a program that everyone is automatically eligible for once they reach the age of 65. Now depending on whether you are working, and the quality of your employer ‘s health insurance plan, you could opt to stay on your employer’s insurance.
Ryan recommends that everyone does a thorough comparison between the coverage and cost for their employer’s health insurance plan, versus Medicare and the coverages and costs associated with it.
Premium payments for Medicare coverage can vary from person to person depending on assets and income levels. This is a big concern to people getting ready to retire and why it is so important to work with a specialist who can guide you through this process.
Medicare is available to all people at age 65 regardless of pre-existing conditions.
Medicaid on the other hand is a program that is meant for people with lower incomes or disability. To qualify for Medicaid there must be an asset level or income level that you are beneath.
Medicaid covers one in five Americans and serves a diverse population. It provides a broad range of health and long-term care coverages and services that many people need, especially in retirement.
As always, it is very important to work with a specialist or expert in this area to make sure that you are getting the best advice and making the best decisions possible in retirement.