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welcome back to the retirement income
show with the ceo and founder of okarvis
finance group that of course is troy
sharp you can find out more on the
website oak oakharvestfinancialgroup.com
phenomenal website a lot of information
there about troy and the team but also a
lot of information for you as a
pre-retiree or even you're already
retired there's some great information
on the website
ocarversfinancialgroup.com
the office of oak harvest located at 920
memorial city way right off i-10 and
bunker hill the number if you have
questions 800-822-6434
and you can always go to the youtube
channel search for troy sharp and oh
carvers there's 200 videos out there
they put out five new ones all the time
jess is even the co-founder with troy
it's coming out with some videos about
women and retirement so that's that's
something to really look forward to
that'll be kind of neat but you i want
to go back to something you said and
then you can get back into
what we were talking about today kind of
going through the 2022 guide to
retirement if you will but you were
talking about you know you go to your
cpa every april we do taxes right uh
this year it's april 18th because april
15th is a friday so they thought well
the weekend might help us get everything
done whoever last minute person doing
taxes
but your cpa typically troy does not
know everything that you have whether
it's real estate or how much is in your
401k or iras or you have life insurance
you have annuities whatever you have in
your tool belt they don't know the whole
picture
that's the difference i think from going
to a cpa talking about taxes than going
to a retirement planner talking about
taxes is that fair to say
yeah absolutely so
cpas um it's a it's an excellent
profession they do most of them do
really really good work um i i do have a
kind of bone to pick let's let's call it
with the industry in general and that's
just that they are historians
okay
when we're talking about retirement and
all the money you've worked your entire
life for
especially those of you that have have
done all the right things and you've
contributed to that 401k and you've got
that company match and you probably you
know if you're 50 55 40 45 listening to
this
you probably have never even given
thought
to
what a tax nightmare you're going to
possibly have down the road
because you are just you've been told to
just put money into that 401k get that
company match max it out max it out max
it out
and as a retirement planner someone who
has a firm that is entirely built on
planning forward not just with
investments like most financial firms
that's just step one of our process here
we build income plans okay what is an
income plan where should you take your
income from the ira the non-ira the roth
if you have other sources the tax plan
how does the tax plan overlay on top of
the income plan with respect to the
investment strategy because the more
aggressive your investment strategy
typically the more taxes you're going to
pay over time
but
when you just look at
the 1099s that you get issued every
january february or march and you take
them to your cpa and and they look at
those documents and they file the tax
return and they have 600 different tax
returns to do and they're just knocking
them out knocking them out
from my experience and i could be wrong
here you could have a cpa that that does
this for you
but i've been doing this for a very long
time and i've never met one cpa that
does never met one client that has a cpa
that does this this is why we've opened
this department here at okarvis
financial group we've done this for
clients for for for many years but now
we've brought the cpas in-house to do
this for our clients as well
what they're not doing and what i don't
see happening in the industry and this
is where i have a kind of a bone to pick
and it's not really a bone to pick let's
say it's just i wish
i wish clients got more from their cpa
relationship
but i understand why they don't because
you it comes tax time you can barely get
your cpa on the phone okay their
business model is such that it's you
know they have to pump out these tax
returns and that's their their earning
season and i do get it
but if you're not taking the dollars you
have in your retirement account
the expected growth moving forward
the income needs that you have
your social security you have to
understand how social security is taxed
because that's pretty complex
dividends interest capital gains but
then also the big one is required
minimum distributions you're forced to
start taking out of that portfolio at 72
the percentage you have to take out
increases every year so when you look at
that income
multiplied by the expected account
balance based on it's easy if you just
do a sensitivity analysis where we're
looking at what happens if it grows at
four percent seven percent ten percent
that'll give you an idea of what your
expected balances are in the future you
google rmd force withdrawals rmd
percentage withdrawals find that
distribution percentage at 72. it starts
at around four percent and it goes up to
four and a half to five five and a half
six six and a half seven so on
throughout retirement
now you'll start to get an idea of how
much income you're going to be forced to
distribute you have to extrapolate out
that account value into the future minus
withdrawals
but then look at
rmd percentages
with all of your other income so as you
can imagine for some of you i've
probably lost you already um for some of
you you are following along my point
here is that
cpas aren't forward-looking okay they're
they're too busy they're they're
backwards looking they're historians and
what you need at this stage of life if
you're you know 45 50 55 you need to be
looking towards retirement if you're 60
65 70 you're in retirement most likely
or getting very close and if you're not
aware of these challenges you're running
out of time to to be proactive and make
some serious adjustments that can save
you potentially hundreds of thousands of
dollars over the next 20 30 years
so i mean we do it all the time when we
look at these analyses
from
most of our clients come from other
financial advisors because other
financial advisors aren't providing from
our experience the type of planning that
most people want and need in retirement
so that's where most of our clients come
from and when we do the analysis on that
in the first visit when we have with a
prospective client we're just gathering
that data we're looking to see are you a
good fit for us and of course you're
trying to make sure we're a good fit for
you but we have to gather all that
information but then on that second
visit where in between those first two
our planning teams our tax teams our
the planning team
they're doing the tax analysis that i'm
talking about right now for us to
discuss on that second visit
and many times we see where if you keep
going without a tax plan you're looking
at 400 600 800 000 in additional taxes
paid in retirement that you simply don't
have to pay if you have a proactive tax
strategy that you're implementing over
many years
but if you wait and and all of a sudden
you're 72 and you haven't done anything
at that point typically it's too late
so everyone's situation's a bit
different but if you want to go through
this process if you want to look at your
situation give us a call at
1-800-822-6434
go to the youtube channel i go through
numerous examples of this calculation of
this analysis on the youtube channel if
you haven't seen it if you haven't been
to the channel
just go check it out we have tons of
videos there to help you understand tax
planning income planning investment
planning if you decide to call us and
work with us great
either way i implore you to go to the
channel and take some time to be
proactive about learning in retirement
because these are things they don't
teach you i mean i have a finance degree
didn't learn any of this stuff in school
i have a cfp designation certified
financial planner professional
designation don't learn about this in
the cfp school now there's a lot of
valuable stuff we go through as cfps in
the education process and continuing
education process but this is stuff that
you only learn from doing this with
thousands of people over many years
of proactive retirement planning
so
we've added those cpas to the team to
not only
complement what we do on the tax
planning side as financial planners as
retirement professionals but then to
also keep us up to date with our
estimated payments to file those taxes
for you to have everything done under
one roof so that's a very exciting
addition to oak harvest financial group
in 2022 now we don't have to call your
cpa for information
in february or march when we're doing
reviews with you to request tax returns
for last year or to request tax
documents or to get information about
some type of investment that you have
and and how much of that is return of
capital how much of that is interest how
much of that is dividend now we have all
that in-house so your financial advisor
can walk right down to the cpa
pull up that file and look at that
information and then use that
information inside your financial tax
plan
so
if you don't have that if you'd like to
learn more give us a call
1-800-822-6434 let's sit down look at
your situation again if we work with
each other great if not that's fine too
but you're going to benefit from having
this analysis done you're going to
benefit from going to the youtube
channel and that is our mission here to
help as many people as possible
again if if we're the firm for you
excellent we understand that we are not
right for everyone and and everyone is
not right for us
but when we go into that uh process with
an open mind and an understanding that
we're just trying to add value to your
life we're just trying to add value to
your retirement and if we do that we as
a firm will be okay in the long run and
that's just our part of our core beliefs
um
but i do encourage you visit the youtube
channel just go to youtube search oak
harvest financial group and watch the
videos
800-822-6434 as well if you'd just like
to call
the youtube channel is incredible
there's over 200
topics on there and different videos
that you can watch on all different
topics uh
800-822-6434 if you'd like to talk with
the team remember this step one of this
planning process at oak harvest is the
investment plan step two the income plan
step three the tax plan step four and
five we haven't talked much about those
but and that we're not going to give
them the time that they probably really
deserve but step four is the health plan
step five is the estate plan you've got
two and a half minutes i figured you
might want to touch on those as we wrap
it up today when we look at a
comprehensive retirement plan we have to
look at health care expenses because
health care
i saw a study recently i believe it was
from jp morgan going back over the past
i want to say 50 or 60 years health care
has averaged about 5 percent inflation
per year it's probably a little bit
higher than that right now
so health care is a huge part of it we
want to make sure that those expenses
are built into the budget but if you
retire prior to 65 prior to medicare
your income and tax plan needs to take
into account
whether or not we're going to try to
plan to qualify for a subsidy to help
reduce the cost of health insurance to
cover you from whenever you retire to
age 65. so that's a big part of this
process we have many clients that retire
at 60 61 62 or want to at least and they
don't know if they have enough or how
they're going to pay for health
insurance and if that's you give us a
call
because we'll build out that plan that
not just looks at saving money today but
looks at how do we also save money over
the long term when it comes to taxes
and then
tying it all together with our process
with our plan is the estate side of
things okay
so many times over the years
we've seen
clients work with other attorneys to
create trusts or or family limited
partnerships or llc's and they don't
actually do anything after those legal
entities are created they don't update
their documents they don't update their
beneficiaries they don't update their
wills when we have major life changes so
we've hired a new certified financial
planner
who is also an attorney the estate
planning side of things she is a
separate entity you don't have to work
with her we'll also give you a list of
other attorneys to work with but for
those who want to work with her
absolutely an option and will have all
of those things no matter who you work
with
on the legal side
it's part of our process it's step five
it's the estate planning we want to make
sure that everything is updated you have
the right trust
um that your legacy is is not gonna go
to your daughter's husband if they get
divorced or your son's wife if they get
divorced we're gonna button all this up
it's all part of the oak harvest
retirement man
give us a call
1-800-822-6434 visit the youtube channel
and check us out give us a call when
you're ready to talk
investment advisory services offered
through oak harvest financial group llc
okava's financial group is an
independent financial services firm that
helps people create retirement
strategies using a variety of insurance
and investment products investing
involves risk including the loss of
principal any references to protection
benefits or lifetime income generally
referred to fixed insurance products
never securities or investment products
insurance and annuity product guarantees
are backed by the financial strength and
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insurance company okarvis financial
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constitute tax or legal advice you
should speak to a qualified professional
before making any decisions about your
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you