Plan With The Tax Man

Tony Mauro
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Financial, tax and retirement planning guidance from Tony Mauro. Tony is the original Tax Doctor, serving central Iowa. We’ll teach you how to properly plan for retirement, minimize your tax burden and attain a successful financial future.

  1. Sep 17

    The Honor and the Headache of Being an Executor

    Being named the executor of someone's will can feel like an honor. It can also feel like a lot of pressure. It's more than handing out inheritances. It's paperwork, accounts, taxes, property, creditors, and sometimes family dynamics, stretched out over months or even years. A lot of clients end up in this role without ever planning to, and we're often the first call they make. Let's talk through how we help.   Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- TRANSCRIPT:    Speaker 1: Being named the executor of someone's will can feel like an honor, and it can also feel like a lot of pressure. It's more than just handing out inheritances. It's paperwork, accounts, taxes, property, creditors, and sometimes unpleasant family dynamics. So this week on Plan with the Tax Man, let's talk about the honor and the headache of being an executor.   Hey, everybody. Welcome to the podcast. Thanks for hanging out with Tony and myself here as we talk about investing, finance, and retirement. And Tony, as I teed up in the teaser there, it's some things that maybe you don't know about being an executor, some of the headache sides of things. It's a nice honor that someone, your parent typically maybe names one of the children, for example, to do this. But it does come with pressure and some things that can catch you off guard. So I thought it'd be good today to highlight some of this stuff.   Tony Mauro: I think it's a great topic, because it's relevant in my world because I have several clients going through it now, a couple of family members, and then one that is a friend of a client. They're both clients. One passed away and the friend is named executor, so he's in a whole new role dealing with family that is not his family.   Speaker 1: Okay.   Tony Mauro: It's a whole dynamic.   Speaker 1: Whole dynamic. I do want to note here, Tony, that this episode is not about giving legal advice, you are not an estate attorney, but rather the role that advisors that you and your team play, and questions that you often get or hear when a client has become an executor. So we're going at it from that standpoint.   Tony Mauro: Yeah. I think that that's good, because we work closely with the estate attorneys, and they're the ones directing the legal side. We try to help out the executor, as we'll go through here-   Speaker 1: Sure.   Tony Mauro: ... on everything else.   Speaker 1: Yeah, yeah. I just want to make sure we clarified that for folks listening.   Tony Mauro: Yeah.   Speaker 1: When a client finds out they have been named executor, Tony, what does that first conversation with them sound like from your end, or what are some bullet points here that folks might want to think about or need to know?   Tony Mauro: Well, some of the things that we tell them right up front is, I ask them point-blank, "How much do you know, if anything, about being an executor?" Most don't know anything because most are surprised that they are, even sometimes kids. And so they really don't have any idea what's involved with it, even if it's a very simple, straightforward estate. It could go anything from very simple, all the way up to very complex. But I try to tell them, "This is going to be a time period. It's not going to happen in 30 days. Depending on how complex it is, it could be months to several years. There's going to be documents needed. There's probate. There's taxes." I try to lay all that out on a timeline so that I can get them thinking... "Don't get yourself overwhelmed. We'll help you. The estate attorneys will help you. You've just got to take one step at a time. Sometimes you hit roadblocks and you've got to move on." So that's the first thing we tell them.   The other thing is if they've already got an estate tax attorney working on it, which they usually do.   Speaker 1: Right.   Tony Mauro: If not, we'll refer them. But we try to point out to them things... Because they get confused on what passes by will and what passes by what I call contract or outside of the will, in other words, goes directly to beneficiaries, and try to just have a conversation with them about that. That at least gets them going.   Speaker 1: Okay. Yeah. And I imagine that a lot of times, Tony, as you've already alluded to with some different clients going through it, if a client's parent, which is usually the case, or family member has told them that they will be the executor someday, how do you prepare them for that now? Obviously, being told ahead of time does give you a little time to prepare, I would assume.   Tony Mauro: Yes. It gives you some time. And really, we try to have the conversations about mostly of, okay, trying to get your parents or whoever you're the executor for to give you access, or at least let you know where documents are, what kind of accounts they have, what kind of assets they have, who the professionals they're working with right now are, just in case. If you can get that while they're still alive, along with helping the executor with some of the things that I just talked about, which they probably don't know, and just being ready to raise your hand and say, "Okay. I don't know this. Who do I ask when the time comes?" I think that basically is what we try to tell them.   We'll always try to be there for them. I tell them that. I tell them, "Let the attorneys do their thing. I'm not an attorney. But we will help you and we will work with them with you." They're usually more than willing to help, because they tend to not like anything tax and anything outside of really what they're good at.   Speaker 1: Yeah.   Tony Mauro: They being the attorneys.   Speaker 1: Yeah. And helping a client think through those pieces, again, they're coming to you for financial advice typically anyway, so now it's like, "Hey, I've got this extra wrinkle here. Is that something you can help me with?" That's just a nice little added value-add that comes with that component-   Tony Mauro: Yes.   Speaker 1: ... I guess, that legacy planning component, right?   Tony Mauro: Yeah.   Speaker 1: So once a client is actually now fully in that role, what do you guys do? You've touched on some of that already. But helping them get through it without, I guess, maybe that overwhelmed feeling, or even that rushed feeling if they found out maybe a bit late and it's like, "Hey, Tony, I just got named this. What do I do?" Right?   Tony Mauro: Yeah.   Speaker 1: "Where do I start?"   Tony Mauro: Yeah. Where do you start? We go through the timeline with them. We have some templates that we show them, and we'll start putting the timeline for their situation through the template so they've got it and they can follow it, which is kind of nice. Then we will start helping them start to gather the financial pieces that are going to help the attorneys as far as that goes. Plus, we might need it for a final income tax return and we might need it for an estate tax return, not the kind where you pay taxes.   But a lot of us executors don't know that when someone dies, the attorneys will open up a legal entity called the estate, and assets get transferred into that estate before they get distributed, and if they're in there long enough and they earn some money, if they're investments, they have to file a tax return. The estate's an entity. And so letting them know what's coming there, and then what the attorney's going to be needing from them, and really then just being a point of contact and working through the timeline and having regular check-ins, kind of like you do with a financial plan, of where are we at in the process on all this, and just monitoring it until the whole thing closes out.   Speaker 1: So Tony, you guys really do act as a steady point of contact then through this process. Is that fair?   Tony Mauro: Yeah. I mean, that's what we do. And like I say, with the timelines that we put in front of them, they have access to on their portal, and then some regular check-ins at different times. Obviously, I just had a call today with the guy I was talking about earlier, his story is a little bit unique, because him and the deceased were both clients of mine, both financial clients, both accounting clients and tax clients. The deceased was worth, and he was a young guy when he died here at the end of last year, about 15 million. And so my buddy, who was named the executor, he's working through a fairly complex estate. And on top of that, he's got some dynamics, because as the executor, the deceased left some very pointed instructions, "Don't maybe agree with what the family has in mind," so there's a lot of butting heads already going on.   And just a general statement, I've seen it so many times, it's amazing what happens when people die and siblings or relatives are squabbling about money. It's crazy. It tears families apart, which is why I would say, and I know every attorney would agree, you need to have a will in your financial plan, because you don't want to have... I mean, this guy had an ironclad will, so even though they don't agree with some things, that's what's in the will and that's the legal document, you know?   Speaker 1: Yeah.   Tony Mauro: But it sometimes puts the executor in a tough spot, because in this case, the executor is also charged with the deceased had two sisters that he's left some money to, but he wanted it in a trust, and they can only take out income, not the principal. And of course, they are fighting that, they don't want that, but they really can't do anything about it.   Speaker 1: Yeah. I was going to say, let's maybe clarify that too, right?   Tony Mauro: Yeah.   Speaker 1: So sometimes, I think when people get named executor, it doesn't mean you can just... You don't get to wholesale do what you want. You're not in charge of this whole

  2. Sep 3

    What Hot Air Balloons Can Teach Us About Financial Planning

    Every October, hundreds of hot air balloons rise over Albuquerque for the largest balloon festival in the world. No two pilots fly the exact same path, and none of them can control the wind. Turns out, that's not a bad way to think about a financial plan either.   Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- TRANSCRIPT:    Speaker 1: Every October, hundreds of hot air balloons rise above Albuquerque for the largest balloon festival in the world. No two pilots fly the exact same path and none of them can control the wind. Turns out that's not a bad way to think about your financial strategy either. Let's have some fun this week here on Plan with the Tax Man with you can't steer the wind, but you can steer your financial plan. Hey everybody, welcome into the podcast. This is Plan with the Tax Man with Tony Mauro and myself here to talk investing finance and retirement and going where the wind blows, so to speak. Tony is our conversation piece this week. How you doing, my friend?   Tony Mauro: I've been fantastic. Kind of wrapping up the summer. Just got done with the fair here. And of course, as we're recording this, kids are back at school.   Speaker 1: Okay. Okay.   Tony Mauro: Yeah.   Speaker 1: Hot as Haiti still at the time we're taping this, at least in my neck of the woods.   Tony Mauro: Me too. Very hot here.   Speaker 1: Yeah, it's a little toasty. I didn't know that little fun fact there that the Albuquerque International Balloon Fiesta draws hundreds of balloons and it's considered one of the most photographed events on earth. It's like a really big deal. I didn't realize that.   Tony Mauro: It is a big deal. Well, and I picked this topic because we have a big balloon fest here. It's actually in a small town just south of us about 12 miles. It's called Indianola Balloon Fest. It has about 100, 150 balloon pilots. They get a lot of people.   Speaker 1: Oh, wow. Okay.   Tony Mauro: And the other thing is that I really respect balloon pilots because I'm a GA pilot myself, not of balloons, of airplanes. But these guys and gals are way better than us because-   Speaker 1: Gotcha.   Tony Mauro: ... they don't have thrust. They can't turn. It's all about the wind. And so they're really good.   Speaker 1: That's awesome. That's very cool. Well, good. Well, this will fun. We'll talk about this, tie this to your other passion.   Tony Mauro: Yeah, that's right.   Speaker 1: ... the retirement thing. So speaking of the wind, even at different altitudes, it does not hold still. Been doing a little bit of research here. It can be calm at 500 feet and wicked and blowing completely different direction at 2000 feet. So it's impossible to control and accurately predict, certainly. Jet stream's going to do its thing. What are the things financially speaking we could tie into this that similarly we cannot control? I mean, obviously the big ticket is the market.   Tony Mauro: That's right. The big ticket's the market. And just like the balloon pilots especially, obviously they can't control the wind, but if you've ever been to a balloon fest, most of the time they can't take off unless it's really calm on the ground. But however, just like us pilots, as soon as they get up in the air, the wind is way different and they try to find what's best for them as we do too. But it's similar in the financial lives really because there's so many things that are out of our control, the market volatility being one, what's going on politically, interest rates, oil prices. I mean, you name it, tax law changes, all kinds of things. You bring it down into your own world and it's unexpected expenses. It might be an untimely health scare, which I have a friend that's having that right now.   All kinds of things. And so the timing of those really adds to that, which is something we have to plan for and talk with your advisors about and let them know what your plans are. And they're going to tell you the same thing. Some of the stuff you can't control, you've got to just change your plan to work within it.   Speaker 1: Well, and going to that point, since they can't fight it, they change altitude, right?   Tony Mauro: That's right.   Speaker 1: They go up or above, excuse me, up and above or below to find a current that's flowing and working for them better for what they're trying to accomplish. And clearly that's a nice little reasoning piece of logic to think about with our own finance. You're not abandoning what you're trying to do, you're just maybe trying to get some headwind.   Tony Mauro: Yeah, trying to just get a little direction on where you're going, just like they are. Because as I said, they can't steer. All they can do is the way they steer is find the way the wind's blowing. And if that's the way they want to go, that's where they got to get to. And it's no different than our financial plans because all of this stuff and this noise that's going on on the side, we've got to adjust our plan, keep it flexible, change it, monitor it. Hopefully you're doing with your advisor on that so that you're not just letting your emotions run wild with some of the stuff that's going on here and in the world.   Speaker 1: Yeah. Well, and I think that's obviously easy enough for us to do is let things run with us, which is why again, having a professional in your corner, a strategy and a plan kind of helps you recenter sometimes when you get a little blown off course. We'll stay with this analogy when you get blown off course. So Tony, from down on the ground, you can only see what's basically right in front of us, next street. I mean our sight line. Our sight line is reduced when we're on the ground. Anybody who's ever gone up any kind of height knows that. From altitude, everything looks a bit more connected. That's why we love looking at the horizon, how it just seems to fade off into forever. So why do we tend to ask money questions one at a time at that ground level, so to speak, instead of looking at it from that higher elevated path?   Tony Mauro: That's a good question because we get that a lot. We get a lot of people asking just these one questions at a time. I just had a meeting yesterday with a gentleman, he's a tax client. He had a few questions about his retirement, but I tried to get him to see the bigger picture because what he wanted to know was the quintessential question is, "Am I going to run out of money when I retire?" But most people want to know, they're in the accumulation stage, "Should I be doing more? Should I pay off this debt? How long should I work?" All those types of questions. But they tend to come at us one at a time because I think they only seem to think about what's right in front of them and urgent right then. And I try to get them to kind of look at the whole picture of, "Okay, that's one of the questions in all of this, we'll answer that, but let's look at how it fits into everything and your overall financial picture." Because I think that's the best way to go with it.   Speaker 1: Yeah. I mean, each question feels more urgent on its own, which is exactly why they maybe rarely get answers so well when we're looking at them from down at ground level. Every time there's a hiccup, it's dead in front of you. So it's the only thing you seem to be focused on versus... And this I think plays into taxation a lot, Tony, which obviously you're doing both pieces of this, you're doing the CPA side as well as the CFP side. This is where that higher elevation question really starts to pay off because you're not just looking at the immediate impact, you're looking at the future impact.   Tony Mauro: You are.   Speaker 1: Or we should be.   Tony Mauro: We should be. Yeah. But I tell a lot of people that I can't really answer this question by itself because it opens up so many other questions. Just like when you go to your regular doctor and you say you've got a sore throat, they're asking you all kinds of questions because they can't really prescribe anything or help you until they really know your entire situation. So it's no different than that in finances as well. I try to hold a meeting with somebody because somebody will send me a question through their portal to say it's a tax client and they think it's a 5-minute answer when really it's, well, there's a lot of what ifs. This is a 45-minute discussion. We better have a meeting.   Speaker 1: Yeah. That makes sense. That makes sense. Well, so Tony, thinking about this and kind of closing this down a bit here, the balloon pilot isn't just flying the balloon. Most of the times, now maybe in this particular event or whatever, but a lot of times you go on one of these rides, they're narrating, right? The flight for the passenger. Yeah. They're doing some cool stuff there. They're educating you on whatever. For those who don't, same kind of thing as like a pilot pilot. You don't know what you're looking at per se. They're pointing out interesting locations. They're teaching you how the thing works. All that stuff. And I mean, come on, that's like a perfect metaphor for what you do. It's not just that you're building the plan, you're also narrating things.   Tony Mauro: We're narrating things. The technical side is building the plan. And then the narrative really is one, explaining the plan in some terms that they can understand rather than just a lot of technical jargon because they don't need to master that technical side. That's what they're paying us to do.   Speaker 1: They need a navigator, if you will.   Tony Mauro: Yeah, they need a navigator. And a lot of times for us, just like the pilot, is you want to point out to them in their financial lives what's worth paying attention to and what's maybe not. In other words, I always tell them, "Rate of return is important, but not the most

  3. Aug 20

    Why People Keep Working In Their Retirement Years

    More people in their 60s and 70s are staying on the job than ever before, and it's not always about the money. Let's dig into the real reasons retirees keep showing up to work.   Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- TRANSCRIPT:    Speaker 1: More and more people are retiring in their 60s and 70s and staying on the job than ever before 'cause it's not always about the money. So this week on the podcast, let's dig into some of the reasons people keep showing up to work, even in retirement.   Hey, everybody. Welcome into the podcast. This is Plan With The Tax Man with Tony Mauro from Des Moines Professional Alternative Tax Doctor Inc. Serving you all around obviously the Des Moines area and the Iowa area, but all over the country. Tony's got clients, he helps all over the place. So if you got some questions, need some help, and you're checking out this podcast, and you'd like to get a little more info or just chat about some things, he's a CPA, and a CFP, and an EA with 30-plus years in the industry and a great resource for you to tap into at yourplanningpros.com. That is yourplanningpros.com. And Tony, how you doing my friend? You doing all right?   Tony Mauro: I'm doing good. Yeah. Summer is in full force here, and enjoying it as much as I can.   Speaker 1: Nice. Yeah. So you're obviously still plugging away. I'm still plugging away. Now we're not at that age yet. We're in our mid-50s, but I'm sure you're seeing this with a lot of your clients as well, people that are into retirement, they've maybe got their strategy or they're playing with you guys, but are still working. And it could be for reasons other than the money, but I want to talk about both sets of those today, right?   Tony Mauro: Yeah.   Speaker 1: So let's dive into the first one, and we'll just start with social connections, for example. So this is not money-related. This just might be simply, "I like the people I work with, and it gets me out of the house, and it gets me some human interaction," especially, unfortunately, if you are a retiree who maybe has lost your spouse. Maybe this is a great reason to keep moving, and going to work, and doing things.   Tony Mauro: And I see a lot of clients that want this because... And I fall into this category myself, I think, is when I go to retire, I want a little social, like you say, connectivity. And with a lot of people, what I find with them is because they've been working for so long, they miss that. And they come back and tell me six months to a year into retirement that, "There's only so much golf I can do. There's only so much putts at around the house that I can do."   Speaker 1: Did you really just say that?   Tony Mauro: Yeah. And I would agree with that to an extent, and a lot of them like to go back to work. Generally, they'll go back and get something that they're not really concerned as much, especially if they don't need the money, about what it pays, other than they don't want generally tons of responsibility, or being able to set their own hours, or work part-time. But a lot of them for the social connection, they really enjoy it. And so I'm always good with that if they're asking me what do I think. And I think it can contribute to a longer life, frankly, especially like you said, if a spouse is gone.   Speaker 1: Yeah, definitely. I think a lot of people certainly continue to want to work just for that social connection alone, and that's totally fine. And I think the takeaway here, Tony, is going to be work optional, right? There's-   Tony Mauro: Yeah.   Speaker 1: ... reasons why you go to work because in retirement, and it's because it's an option, because you're choosing to versus not, because you're not choosing to, or you have to go for the money reason. And I'm going to skip around on the list. We'll get to the money one here in just a minute, but I want to do another one from the home standpoint. And that's just changes in the home. So not that there's much of a silver lining to think about with COVID, but certainly during that time period, a lot of people got a dry run of what it would look like to get into retirement with their loved one being at home together 24/7. And so maybe that was a little bit of a wake-up call. And I know, Tony, I've got advisors all over the country I talk to, like yourself. And all of you guys and gals have stories where one spouse or the other looks at the advisor and says, "Get them out of the house. They're driving you nuts."   Tony Mauro: That's right. Yeah. "I want to kill them."   Speaker 1: Right?   Tony Mauro: Yeah.   Speaker 1: So that could be a big thing to think about too, "I want to keep that sanctity of the home, so one of us is going to keep going to work because it gives us the social connections, but it also gives us a relief from the spouse."   Tony Mauro: Yeah. And I think this one I will struggle with because for a lot of people, you've been going to work for so long that it's hard to change your routine.   Speaker 1: Indeed.   Tony Mauro: And then you find out that you've been going to work, your spouse been going to work for so long, and you see each other at night on the weekends. Yeah, that 24/7 thing drives a lot of spouses on both sides crazy. And I think it's something that you have to at least take into account, especially if you're young enough and don't need the money to get out and make that happen.   Speaker 1: Yeah. And I think routines change, right? There's just various different things that just cause that uneasiness. And again, maybe it's not work, maybe it's something else. Maybe it's book clubs, or volunteering, or whatever the case might be. But I think that could be a reason people just go, "Well, you know what? I'll just go back to work because it gives me some social time with other folks. It gets me away from the spouse for a little while so we're not at each other all the time. And I make a little extra money because it helps with some of the money woes." Right? And so-   Tony Mauro: Yeah.   Speaker 1: ... that'll walk us into the money woes conversation, Tony, because some studies have shown that nearly half of retirement age folks who are still working do so out of financial necessity or financial stress. And I think this is where you've got to have that strategy and plan in place, because if you absolutely have to work for the money, no shame, it is what it is. But if you're stressed about it when you don't need to be, that's kind of silly. Find out. Go to work because you want to, not 'cause you have to.   Tony Mauro: By far, yeah. This is the biggest conversation to have with your advisor. And we do it a lot with people before they retire on... What it comes down to is a couple things. You get to that 65, 67, and say you just haven't followed good advice, and you miss the mark, and it's a little late to save. You've got to go to work because you have to. And like I say, there's nothing wrong with that. You have to do it, depending on what kind of lifestyle you want. And that's one thing. But the other thing is a lot of people tend to just go to work because they... And they really don't have to. And again, if they want to just because they don't have to, that's great. But they continue working because they're worried about running out of money when, really, they do have a good plan, and they won't run out of money.   So make a decision based on that. I think that's where the advisor, beforehand, needs to talk to them. I just had a conversation with a client, he's only 43, making some good money, but he has not done much for retirement. He just refuses to do it. And I had the conversation with him, and I told him, "Look, I'm going to pull your social security statements for you and your wife's balance from her 401(k). I'm going to extrapolate that out. So if you continue down this path, here's where you're going to be at about 67." And he was floored because he says, "That's not the money I'm making now. I won't have any money." I said, "Exactly. So you've got money worries, so you've got to start now." Not too late for him, but you need to have these conversations, especially when you're, I think, in your 40s and 50s, with your advisor, 'cause that's the whole reason you're paying us, is to say, "Am I going to be okay at retirement or not?" And I can make these easy decisions, I think.   Speaker 1: Yeah. And I think this is where the final piece of this, Tony, is if you're doubting your strategy or your plan, or you don't even have one, clearly, then this is where you got to get one, 'cause even after years of working towards the goal of retirement... And a lot of people, Tony, when they come in for those initial consultations, they're in better shape than they realize, but they still think, "I'm going to have to work. I'm never going to be able to retire." So if you've got any doubt at all, this is why it's so important to just go get a strategy. Go out and talk with one, two, three different advisors, find the one that you like, have those consultations, those reviews, see who you resonate with, do your homework, check and see if they're properly licensed and all that good stuff, and get started, because that'll help you alleviate... Then the other things we talked about today come back into play just because you want to.   Tony Mauro: That's right. And most people, I think, want peace of mind when they get to that retirement... I know I do. My big peace of mind thing right now is, "Am I going to be able to go somewhere warm for all four months of the winter when I retire?" And I've done my calculations, and I think I'm going to be in really good shape for that. And so again, peace of mind, "Okay, I can do that." But if you're at all in doubt of your plan, or if you don't have a plan, now's the time to start working. It's never

  4. Aug 6

    The DIY Retirement Plan — Where It Works and Where It Gets Expensive

    There's an entire television network dedicated to doing things yourself — home renovation, landscaping, interior design, all of it. And the DIY mentality is genuinely admirable. But when it comes to retirement planning, the stakes of a bad install are a little higher than a crooked backsplash. Let's talk about what DIY planning actually looks like in practice.   Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- TRANSCRIPT:    Speaker 1: We've created an entire television network dedicated to doing things yourself. Everywhere you turn, it's DIY, this and that, home renovation, landscaping, interior design, all of it. And the DIY mentality is genuinely admirable. But when it comes to retirement planning, the stakes of a bad install are a little higher than just a messed up backsplash in your kitchen. So let's talk about that this week, the DIY movement in retirement planning and what that looks like actually in practice.   Hey everybody, welcome into the podcast. This is Plan With The Tax Man with Tony Mauro. And we're going DIY this week, Tony, little pitfalls of doing things yourself. Everybody does it to a certain degree in many walks of life. You and I both have done a lot of DIY things ourselves, but certainly when it comes to the financials, this is maybe room to pause and think about this.   Technology, Tony, has changed. It's super easy to do a lot more things. Absolutely. I'll agree with that. I'm sure you will too. But the complication of preservation and distribution, AKA retirement, is vastly different than accumulation. So let's talk about that this week a little bit.   How are you doing, my friend?   Tony Mauro: I'm doing good. [inaudible 00:01:36].   Speaker 1: Do you agree with my statement there?   Tony Mauro: I agree with your statement. Yeah. And I love this topic for a lot of reasons because I think as we... Well, in the world we live in, especially with the AI advancements and whatnot, it's just getting worse and worse. Everybody wants to do everything themselves. And I think a lot of times, and I'm one of them too-   Speaker 1: Sure.   Tony Mauro: ... I used to love doing home renovations because I enjoyed it. But now that I'm a little older and I try to preach this to my son and whoever will listen, is you need to outsource everything that you're not good at or you don't enjoy because that's going to free you up to do what you do enjoy and/or make money. And we do it at our business here. I mean, I don't touch the IT. I don't touch the phones. Now, could I, and try all that? Yeah, sure.   Speaker 1: Sure.   Tony Mauro: It clutters up my life too much. And I want to give it to the guys that are good at it. And so yeah, I agree with your statement wholeheartedly.   Speaker 1: And it's one of those things where we certainly know in this world it's been more and more difficult, especially post-COVID, to get people to show up and maybe do quality jobs in different aspects of things.   Tony Mauro: Sure. Yeah.   Speaker 1: And so everybody feels like, "I'm just going to take on this." What's the old saying? If you want it done, right, do it yourself?   Tony Mauro: Right. Do it yourself.   Speaker 1: And that could be true. But I mean, my brother and I are fairly handy and we built some things around my property, Tony, but when it came time for a complete overhaul of the back deck and building a roof on it and all this kind of other stuff, I just did not feel comfortable in our skillset, so I farmed it out. Did it cost me more? Yeah, probably. But then again, maybe not because how many times might I had to double back and fix something that I didn't do right the first time because I don't have the skillset or the longevity of doing these things.   So financially speaking, I think that same thing happens. There's so many tools out there now. And growing the money... I mean, Tony, check this out. So you might know this off the top of your head, but if you don't, don't look it up. Just give me a quick educated guess. At the time we're recording right now, how much do you think the S&P 500 is up the last five years?   Tony Mauro: Cumulative?   Speaker 1: Yeah. Cumulative. Give me an idea. What do you think? Five years.   Tony Mauro: Five years, I'm going to say 45%.   Speaker 1: Okay. How blown away are you that it's 75?   Tony Mauro: That doesn't blow me away.   Speaker 1: Okay.   Tony Mauro: I was thinking a little higher, but no, it doesn't blow me away.   Speaker 1: Okay. 75. Crazy, right?   Tony Mauro: Yeah.   Speaker 1: Five years cumulatively, the S&P 500 is up 75%. The Dow up 50 over that same period. So it's easy for people to go, "Oh man, you can be an idiot and throw a dart at something and do well." But when it comes time for the... As we get closer to financial or retirement, excuse me, distribution, there's a lot more at stake. And I think this is where people start to find themselves at a crossroads. And do you find that? Do you have people coming in that are like, "I've been doing it myself, Tony, but there's a lot I don't know and I'm getting a little nervous. I want to make sure I don't screw this up because this is my forever money"?   Tony Mauro: They do. And that's how a lot of people come to us. And if they've been doing things themselves, we certainly don't tear apart what they're doing, but we just try to ask a lot of questions and make sure that not only... Because a lot of people come in, "Well, I've been doing this myself and I've been averaging 10% a year or I've been beating the S&P 500."   Speaker 1: Sure.   Tony Mauro: And I say, "Well, okay. We really have you... Let's see, but that's good." And then the first question as I ask is, "What do you have for an emergency fund?" And they have a strange look on their face. And we start talking about that. I said, "Well, what about you... Tell me about your assets and things. And then we'll get to the part of, well, what do you have for life insurance?" And so some of that stuff they don't think about. All they're thinking about, "I throw my dart at the board. I'm investing in this. It's growing. I should be okay." And that may be the case, but there's more to a comprehensive, keyword, financial plan.   Speaker 1: And you may be doing well, right. So think about my analogy a second ago about what the numbers have done. So let's say you had a million bucks [inaudible 00:05:37] on the S&P 500, you're up half a million dollars over five years. And you're thinking, "Man, I got this thing figured out." Great. Okay. So now you got a 1.5 million sitting in this account, you're getting close to retirement and you got to start pulling this money out. And now you don't realize the things that you're triggering. So your income strategy is going to affect some other things. It's going to affect your Medicaid or your Medicare, excuse me. So you're going to get those issues. You got to start dealing with the IRMAA situation. That catches people off guard. The taxation of the whole thing, Tony, is what catches a lot of people off guard. That's where a lot of people are going, "Okay, this is why I definitely need help. How can I be more efficient here?" And with you being a CPA and a CFP, you're thinking about the tax situation, but as well as the future planning.   Tony Mauro: That's right. And some of those triggers you're talking about are exactly what I think a lot of people miss really with a good advisor. With us, we're looking always at, we know you want to get the most money, especially around retirement.   Speaker 1: Sure.   Tony Mauro: We got to do it tax efficiently because we don't want to give the feds any more than you have to. So let's think about it. And let's take everything into account, Social Security and everything else you might have coming in, to make sure that that's the case, that we're always on track with that. And don't miss that by too much because it's just ineffective. And at the end of the day, you bleed money and you don't even know it.   Speaker 1: Yeah. I mean, I can see somebody coming in DIY or they've done well. Let's just go with a million bucks, Tony, because it's easy. They've got a million dollars in their portfolio. And they come in and they're like, "Hey, I heard Ramsey talking about taking 8%. I've done the math. I'm going to pull 80 grand out a year, blah, blah, blah. I should be good to go, right?" You know what I mean? And it's like, that's a quick back of the napkin thing. It's like, "Well, all right, the 4% rule is half of that. The guy who created the 4% rules moved it to 4.7."   But for easy math, Tony, you could sit there and go, "Well, does 40,000, if we go with the 4% rule, does it get it done? Does it drive the plan?" Because Ramsey's thing is, "Well, if the market averages 10% year over year at minimum, why not take 8%?" But of course, the downside of that, Tony, is that to make that happen, you're 100% invested in the market. And I think again, as we age, we're not really comfortable taking that amount of risk.   Tony Mauro: No, no. And I think that's one of the flaws that a lot of DIYers end up with is they'll come in with some... We use that example.   Speaker 1: Rule of thumb. Yeah.   Tony Mauro: Just that rule of thumb, yeah. And when we sit down and start putting some numbers to that and their situation, most of the time... And I like Dave Ramsey's stuff about getting out of debt, staying out of debt, saving and whatnot. I don't agree with the 8% year-over-year. I think that's too aggressive based on things that happen not only in the market, because he's assuming it earns 10% every year. We know it does not, even though lately it's been way up. But what if you go through a stint right when you retire that it goes up 10% one year? And then we have a situation like from '04 th

  5. Jul 23

    The National Park Guide to Retirement Planning

    Whether you're visiting one of the 63 national parks this summer or just hitting a local trail, a lot of the best practices for a great hike apply just as well to your retirement plan. Let's “walk” through a few. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- TRANSCRIPT:  Marc: This week on Plan with the Tax Man, maybe you're visiting one of our national parks this summer or just out hitting the local trail. And if you are, we have some best practices for a great hike that apply just as well to your retirement plan. So let's walk through a few of these with Tony Mauro. Hey everybody. Welcome into the podcast. This is Plan with the Tax Man, with my friend Tony Mauro. How you doing buddy? Tony Mauro: I'm doing good. Marc: Yeah? Tony Mauro: Midst of summer. Marc: Yeah. Tony Mauro: It's all good. Marc: I'm telling you what, it's been crazy, incredible hot. Look folks, little FYI out there. If your AC unit fails you during the really hot months, be very, very careful because apparently mold can build in the ducts quickly when the humidity is high and the AC's not working, go figure, even though the AC's not working because the water and condensation that sits in there while waiting to get it repaired apparently turns to mold. So a little FYI because it's expensive to fix it. Tony Mauro: Yeah. Marc: And that might be a retirement expense, Tony, that you just didn't see coming, right? Tony Mauro: You didn't see coming. You better have to depend on the emergency fund. Marc: Exactly. Right. So we're always trying to provide useful nuggets of information on this podcast. But we're going to have some fun this week. Tony, I know you like to travel. I know you like to go a lot of places. Do you visit the national parks? Do you do some of that stuff? Tony Mauro: The reason that I want to talk about this, because I was just out in a couple of them last week. Marc: Oh. Tony Mauro: I had to go out to South Dakota for a wedding, and so we stopped at the Badlands National Park. Marc: Nice. Tony Mauro: And it wasn't really a park, but Mount Rushmore. But I have been to other national parks out. I've been of course to Yellowstone and a couple of others. A lot of them I still want to see, and they're very interesting. I will say- Marc: You have been at Yellowstone or not? I though you had. Tony Mauro: I have been to Yellowstone. Marc: Oh okay. Tony Mauro: Yeah. Marc: Yeah. Okay. Tony Mauro: I still have a few on my list. Zion and Bryce And some of those, but I do like to hike. I'm an amateur. Marc: Yeah. I want to go to Denali. That'd be cool. Tony Mauro: Yeah, Denali. Marc: Yeah. Or McKinley, whatever it used to be called, either way. So look, do you know how many national parks we have, by the way? There's a lot. Tony Mauro: I don't. Marc: There's a lot. 63. Tony Mauro: Is that how many? 63 national parks. Marc: Yeah. 63 national parks. Some are really big, obviously, and some are really small. I think Hawaii's got a couple. I think California's got like six, but yeah. So there's different sizes and stuff out there. So anyway, a lot of people like to visit these things as a summer thing with the kids or grandkids maybe. So we'll talk a little bit about some analogies. I'll let you spin some financial wisdom to my setup for the park conversation. So we'll start with a map. Don't leave home without a map. I know we got these cell phones and that we're attached to them now, Tony, but you might not get signal in some of these bigger parks. And if you think about it, a lot of the gates when you go into some of these national parks, the first thing a ranger does is tell you a couple things and they hand you a map. Tony Mauro: That's what they did to me. Yeah. Marc: Exactly. And that's the same thing. It's to help keep you oriented. Same thing with a financial strategy. It's to help to keep you oriented and focused. Tony Mauro: It is. I mean, the financial plan, if you have a formal one, I mean, that's your backbone. That's the map itself. And just like when I was... We did a little hike in the Badlands on our own and they gave us a map to make sure we stayed on the trails and stayed on... I equate that to just like in the financial planning world, stay on track and make sure that you're following your map as best you can. So out there in the Badlands, if you get off the trails, a lot of bad things can happen quickly. Marc: Yeah. Tony Mauro: In the financial world, it's going to be a slow burn if you get off track, but over time you get off track too much, and what's going to happen is you get to the end and you are not going to be where you though you were going to be. Marc: Mm-hmm. Yeah. Tony Mauro: And so with this plan, as it changes and whatnot, it's not like a static map that you'd be holding in your hand with hiking. Marc: Sure. But if you get a little off course, it might help you get back on. Or even those reviews serves as almost like a check-in spot. Maybe you're going on a really long trail through the parks and it's like, "Hey, we're going to stop at this little whatever this thing is." And there's a map there because maybe they've made some changes or who knows? Tony Mauro: Yeah. In our annual reviews, I mean normally the plan changes a little bit every year, if nothing else, just with a little bit of goal modifications and things like that. And then of course, maybe even rebalancing. Marc: Well, life's going to throw something at you. Tony Mauro: Life's going to throw something at you. I was just telling you before this call, life threw something at one of our clients. They've got parents going into, one's got dementia and had got to go in a nursing home with no plan. And boom, all of a sudden life changes quickly. Marc: Yep. Tony Mauro: All the better to have a map and to be following it. Marc: For sure. For sure. Well, and unfortunately, Tony, one of the problems that we run into often when we go to these lovely, beautiful national parks because our country is full of amazing locations, is unfortunately there's other people. And people don't do the best job of always picking up after themselves. So when you go to just about every national park, there's signs everywhere. "Please do not leave your garbage. Please do not do the..." Like at Yellowstone, we were just talking about that. At the sulfur pools, "Don't throw cans in the sulfur pools," things like that. Just crazy stuff that you think, hello, common sense. We should not do this. Ultimately, the message is don't leave a mess behind. And financially, same kind of thing. I mean, when we're no longer here, are we leaving a mess for our family? Tony Mauro: Yeah. And that's what I was just on the call with is that this family's mother and father are going to leave them a mess, and they didn't plan for it. And you don't want to leave your loved ones when you're gone. I'm already talking. I'm working through it myself with my wife at our life list. Something happens to one of us, we don't want to leave a mess for our son. And that means knowing where everything's at and how to close things out and what's going to go where. It's hard enough for loved ones when you're gone dealing with all the emotions. You don't want to leave them with a financial mess. And that goes from everything from no will to outdated wills, no beneficiaries on certain things, keeping all your stuff secret. I think you need to be more transparent with your heirs to make sure that you don't leave them with this and let them know what the plans are. You don't have to share every detail of every cent that you have, but I think you should leave something for them to help them when the inevitable happens. And then you're not going to be blindsided. Marc: Yeah. Yeah. I mean, and sometimes there's a lot of little things too. Unfortunately, big situations like the one you're currently dealing with there, but there's the little things people can do to not leave a mess. I mean, even something as simple as your TODs or PODs on some of your different accounts. A lot of times people don't even think about that. They got a bank account, maybe they got 50, 60, 70 grand sitting there and they forgot to put transfer on death to their spouse or whatever. So just a mess. Just make it easy when we pass on, because we're all going to pass on. Try to make it as easy as possible and leave no mess behind. The scenic route. A lot of times we go to these national parks, we love to do the scenic route. Lots of things can get in the way. It's fun to do the scenic route, but sometimes you're just tired. You want to take the quickest route too. And I think when you're thinking about retirement, sometimes it's easy, Tony, to be like, oh man, what's the fastest way to get me some more income or take advantage of this crazy market run that we've been on or whatever. So the scenic route could be the way to go. Sometimes the faster way is the way to go. It just depends. Tony Mauro: It does depend. And it depends on going back to the first thing we talked about is your map and really what's going on. What we see mostly is clients wanting the fastest way. And you hit it on the head is what's the fastest way I can get to X amount because they think that's... And what they end up doing is, without a good plan, they could end up taking a lot of risk. They could end up really shooting themselves in the foot a little bit because there's all kinds of things out there. Anything from the volatility in the markets, what's going on in the world politically. And then of course dumbing it down a little bit, just not dumbing it down, but shrinking it down to what's going on in their personal lives. You're going to have things that pop up at you that scenic route may be the better route. Our jobs as advisors is trying to mesh the scenic route with the fastest route and get the best of both of the

  6. Jun 25

    Reacting to the Most Watched Retirement Video of the Year

    Over the past year, one retirement video on YouTube pulled in 3.7 million views. The title: "Sell These 5 Things Before You Retire." We thought it was worth a conversation — not to tear it apart, but to react honestly. Do we agree? How often do we actually see this play out with real clients? Let's get into it. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- Transcript:  Marc: Over the past year, one retirement video on YouTube pulled in 3.7 million views, the title, Sell These Five Things Before You Retire. We thought we would talk about those five things this week here on the podcast and break it down a little bit with Tony here on Plan With the Tax Man.   Welcome into the podcast, folks. Thanks for hanging out with Tony Mauro and myself, as we talk investing finance and retirement. And yeah, the top video of 2025 for retirement was 3.7 million views, Tony, and it's Sell These Five Things Before You Retire. So, we'll keep that in mind as we're breaking these down. I want to get your take on each of these, and does it make sense to you? Do you see that often? Just let us in on your insights as a planner who's been doing this for many years. So, this should be fun. How you doing, my friend?   Tony Mauro: Yeah, I've been doing good, been doing good. This is a good topic because I think we as planners get asked these things a lot. This was a really good video. And I did view it, I agree with most of it.   Marc: Yeah, I do too, yeah.   Tony Mauro: We'll break it down a little bit and have some fun.   Marc: Yeah. Well, let's start with the biggie. The oversized house. I think this is a huge question for obviously many, many people. Obviously, it resonated with lots of folks because yeah, I mean, it could maybe free up some significant money. Now, however, depending on what you want to do, housing prices are still pretty high. So, but I do agree overall with this concept. If it's this big place that the two of you don't need anymore, well, that's something to consider.   Tony Mauro: It is, and all of these topics really I would preface with saying it begs the question to at least discuss with your planner, because they're selling... In the video they're saying, "Okay, yeah, do this, this, and this." I don't agree with it all the time, but at least you're asking the question. But the theory here is, is obviously if you've got a big house, only two of you in it, no mortgage, maybe don't want to take care of it anymore, have had it a long time. Could sell the house, take the tax-free gain most of the time, and then either downsize and possibly have more money in your pocket to do something else with.   Now, where I disagree with this a little bit is because housing is the way it is, it seems like a lot of times when people go to sell property, at least in the Midwest, down the coast, maybe if you can make a lot of money that's a different story. But they find out, well, I make two or 300,000 on it, and then I go to find something even though it's smaller and I got to invest all of my proceeds plus the gain because things are up from when I bought, and they don't really get as far as they thought they would. But the theory is good because if you're, like in my own case, I have a fairly large yard and I talk with my wife right now. I was like, "As we age, do we really want to take care of this?" And we own the house already and it's too big just for the two of us, but I don't know. I don't know if I want to leave. So, it's a good question to talk about with your advisor, for sure.   Marc: Yeah. I mean, and it could, to your point, I mean, obviously add some significant capital to a retirement plan depending on, again, what you were going to do. Are you going to just maybe rent? Were you going to get a condo or a townhouse? But those have gotten really pricey lately too. So, it's a worthwhile exercise for sure to see what it could-   Tony Mauro: That's right.   Marc: ... do to your overall retirement plan.    Number two on that list, Tony, was supporting or financially supporting the adult children, sell this item. I absolutely agree with this one, me personally. But I mean, and it's hard for parents to go against the instinct of helping, but you can't finance retirement, Tony.   Tony Mauro: You can't, and I agree with you and with this point too. It is hard, I go through it with my own kids. Now I have a grandchild, and that's although I'm going to do whatever I want with her, but... And there's books been written about it about the... And I think it was from The Millionaire Next Door, I think it was from the book, but somebody was saying that that's economic triage. And then what happens is if you start supporting them, then they expect it. And like you said, they're going to have to go out and build their own [inaudible 00:04:29]-   Marc: And they've got decades still to do it, you don't.   Tony Mauro: They've got a lot of time, yeah. And you're running out of time. And so, I would limit this if you're going to do it at all, and try not to do it. Just for nothing else, hopefully they can figure things out on their own and become their own financially responsible adults, but obviously we're there as parents if they really fall, but I strongly urge my clients, yeah, not to do this.   Marc: Yeah. You made an interesting point too, if they really fall, yes. But I mean, look, at the same time, no, because you're going to have to sometimes, you got to rein it in, especially if your plan is just barely getting you the retirement that you needed or not even the dream retirement but just getting you into it and through it, allowing you to stop working or whatever, every situations are different, you can't sacrifice that to help them. I mean, I know it's tough, but sometimes you just got to bite that bullet or they've got to bite that bullet. But isn't it funny though how like throughout time it's some weird thing like, "Oh, well this is the grandkid and the grandkid is now more important than you. Sorry, bye."   Tony Mauro: I tell you what, it's hard. It really is, because you get like... I never thought I would be like that, but yeah, and you want to ensure their future. I don't know why.   Marc: Well, maybe because they're little and it's like it takes you back to when yours were little. And of course, we're typically in a better position when we have the grandkids to help them out. So, that probably has something to do with it too.   Tony Mauro: That has something to do with it, exactly.   Marc: Yeah, yeah. Good stuff. All right. Number three, expensive toys that become expensive burdens. Some of us spend a lot of years, Tony, the 30s to mid 50s collecting those toys and doing things that we like. And then you just one day go, that's a lot of crap.   Tony Mauro: It is, and I admit it.   Marc: Do I want it? Do I need it? Right?   Tony Mauro: Yeah. And we've all been guilty of it, whether it's a boat, you name it, a classic car.   Marc: Yeah, a travel trailer, whatever.   Tony Mauro: If you've got money, yeah, airplane, something like that. If you're not using this stuff and really don't enjoy it, you do have to start asking yourself is, do the cost of these things sitting around actually match what the enjoyment that I get out of them? For me, a lot of things is not. Things don't interest me as much as they did when I was younger. And now that you, most of the time you get a little closer to retirement, in retirement, you have the money to pay for them. But it's like, yeah, just because I can do it, I don't really necessarily get enough enjoyment out of it to just have it sitting around. Then I've got maintenance and everything else and it just freaks me out. But this is something to talk about with your advisor, especially, if you're looking at all of your assets, which your advisors should know about, not just your investments. He or she should know about everything you have.   Marc: Good point, yeah.   Tony Mauro: They may be able to advise you, "Hey, do you still enjoy this? If so, let's keep it in. If not, well, what can we do with that money to get you more enjoyment?"   Marc: Good point. And in that list, and you could have maybe put point number four here in point number three, but maybe not. I get where they're going from this, but I have a real hard time with this one, Tony. So, this will be fun to-   Tony Mauro: I do too.   Marc: Yeah, this will be a fun debate here. It's the second car. Now the argument is without the commute, two cars sitting in the garage maybe costing more than they're worth in insurance, maintenance, and so on and so forth. And granted, at a certain age, maybe this becomes more realistic, right? But you think about retirement, people are more active, they're more healthy in early days of retirement. The loss of freedom to an American is a huge deal. I mean, think about our country, our identity for, God, since the '50s has been tied up in the car, right? When we built the interstate system and all the vehicles and everything, I mean, this is a big country. And when you want to jump in the car and go someplace, even if it's down the street to the store, you want to be able to have the freedom to do that, right?   Tony Mauro: You do. And I don't have many clients, they talked about it on the video. It might be from a strict, strict planning standpoint, might be something to consider. And again, I maybe asked the question, but you hit it on the head with the word freedom, is that less Americans, at least me I know and almost everybody I know, do not want to give up that freedom of I can go, like you said, get in it and go wherever I want.   Marc: Yeah. Well, Tony, you travel a lot to Europe, right? You were just talking about that on our last podcast, right? Europe is designed differently. They walk everywhere.

  7. Jun 11

    Beach, Budgets, and Balance: What Vacation Planning Really Looks Like in Retirement

    Summer's here. And somewhere between the excitement of planning a big trip and the anxiety of what it costs, a lot of retirees end up doing something that surprises us… they feel guilty about it. They worked hard, they saved, they planned for decades, and then they second-guess a beach vacation. Today, let's talk about how travel fits into a real retirement plan and how to enjoy it without guilt. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- Transcript:  Marc: Summer's here and somewhere between the excitement of planning a big trip and the anxiety of what it costs, a lot of retirees end up doing something that surprises many. They feel guilty about it. So today let's talk about how travel fits into a real retirement strategy and how to enjoy it without all that guilt.   Hey everybody, welcome into the podcast. It's another edition of Plan with the Tax Man. Tony and I are back for more content as we talk about investing finance and retirement. And we are going to talk about, again, that guilt-free vacation, planning, strategizing ahead of time so that you can enjoy some of the things that you really worked towards in your retirement years. And Tony, this works out well because you've had a bit of travel yourself, took a couple of vacations. And how you doing, my friend?   Tony: I'm doing wonderful. Yeah, I'm back from vacations and I like this topic because it is as people get closer to retirement, I think about a lot of these things too, so I'm anxious to talk about it.   Marc: Well, I think a lot of people have heard and probably know and admit, Tony, that most people will spend more time planning a vacation than they do their retirement. That's pretty common in this field. But when you're thinking about what you guys do, strategizing, putting these plans together, when you're building those out for people, is travel and vacation something that actually makes it into the plan? I know some advisors do, some don't. I feel like it's something that you've got to take into account and be budgeting for. And I'm sure that you guys do. What are some reasons why and how does that help the end user?   Tony: Yeah. For a lot of our clients, it's one of the first questions I asked when we get to the point of, okay, what do you want to do in retirement? And if I don't hear, I mean, for a lot of people they say, "Well, I want to travel." But then we try to get a lot more specific with that. But if I don't hear it, I'll ask it. But what a lot of people do is the ones that don't think about it, they plan for everything else and they don't really plan for fun because once we get through everything, it's like, okay, what do you want to do that's fun? Because that's the whole reason for retiring and enjoying the last part of the game of your life.   And so that's one thing I ask them and see if travel comes in there. And I think some people, they feel like they've never traveled a lot in their life so they don't feel like,... They want to do it, but they don't feel almost like they're worthy of it, like they haven't earned it yet, which I think is a mistake because obviously you have.   And if they haven't planned for it, a lot of times then it gets kind of stressful and that's what leads us to, well, let's start planning for it. I mean, everybody's got different budgets and different thoughts about what their travel is. So what's great for me is not going to be great for a client or somebody else, but they just need to get it in their plan and obviously we can throw it out later or we can massage it, do whatever we want. But I definitely think that if it's important to them, we got to get it detailed.   Marc: Well, and I think that some people probably seeing it on paper in their plan makes them feel like, "Okay, yes, I can spend this." Because like you said, they're so busy thinking, "Do I have enough to survive? Do I have enough to live on? Am I going to run out of money?" The classic things there. And it's like, no. And even with the vacation spending in your plan, you're not going to run out of money. I think that gives people that ability to do that more guilt-free.   Tony: Absolutely. That does. And once they know that, yeah, they can ease up a little bit and feel a little more calm about talking about it and actually trying to plan something. It's fun to see when people haven't traveled a lot and they get to do some stuff that they never dreamt they would do.   Marc: And I imagine that budget would change over the years. Like maybe you're budgeting 20,000 or 25,000 over the early couple years and then that tapers down a little bit because I'm assuming that there's a natural rhythm to how retirees spend. And we've all heard the terms about the go go and so like that. So obviously early on, most people are probably wanting to do more because A, free from work, I'm free from the time clock. But also B, I'm feeling good enough to go do it.   Tony: Yes. And I used to think that too. I used to think that my retirement was going to be just the same from the beginning till the day you die. And as I've watched people over the years, that's so far from the truth because you're exactly right. Most of the time, as soon as people retire, they want to hit the travel and hit the stuff on the big bucket list as soon as they can for the reasons you mentioned. And then we see about 75-ish and beyond, things slow down. Your body isn't moving quite as fast. The mind isn't working quite as fast. And so they don't want to be so far from home in case something happens. And so it really starts to slow down. And then you get over most of the clients I see anyway, over 80, 82 years old, it's really gone to where those days are over.   It's really just visiting family and trying to stay closer to home. So your travel budget does, it starts out high and then it starts going down, which even I think is more of a comfort to people to get them to take and do things while they're a little bit younger in retirement because you're not going to do this forever.   Marc: Right, right. Yeah. And everybody, again, situation is going to be a little bit different. I imagine you often have to, and we've talked about this many times in other aspects of the retirement strategies, you have to put on that therapy hat, for lack of a better term, because I imagine there's many couples that don't see eye to eye on travel spending, right?   Tony: There's a lot. Yeah.   Marc: You got to balance some of that. What are some things to think about there?   Tony: Well, generally, if we're on that page and somebody they can't come to an agreement, we definitely try to talk it out with both spouses usually and let them know that they are going to have the money to do it. Now, if there's some other reason that they don't want to go, then we can get that out in the open. But really we just try to convince them that you are going to have the money and you don't have to worry about that. Now, if you're averse to travel planes or something like that, I can't really help them with that, but it's really not the trip itself. It's just really kind of talking through, seeing on paper, reassuring them that, "Hey, this is able to be done." And see what they do. Sometimes they compromise, sometimes they don't. It's kind of funny to watch, but it's kind of interesting.   I only had one couple where, and that's a real trouble where one of the spouses, she just didn't want to travel at all. I mean, it doesn't matter what the other spouse or I said. They had plenty of money and so he ended up kind of doing some things by himself and she was okay with it, but that was a rare instance. Most of the time they come up with something.   Marc: Yeah. And again, how you've lived leading into that, my wife travels a lot for work so I know that she's going to want to do a little less than... And I don't travel. I don't leave the house at all very much because I can work from my home. So like a lot of people have done, so I imagine that adds an interesting dynamic too where one wants to go, one doesn't want to go. So you got to kind of find that balance. One wants to spend, one doesn't want to spend. So finding that balance. And a good way of thinking about this, Tony, is the plan itself might become the referee, right? Because then when it's in the plan and it's structured out and you go, look, you can see it. And then it maybe diffuses some of those arguments.   Tony: It does. Yeah. Because once that time period comes up in the plan, everybody's ready for it. There's not any real surprises and they know they have the money. And yeah, it does ease the stress of it again.   Marc: The tensions a little bit. Yeah. Yeah. Do most people think far enough ahead when it comes to planning for travel? I mean, I imagine most don't, right? I mean, there might be somebody who's a bit of a big planner, "Hey, I want to take this really big family trip three or four or five years out." But I imagine most people probably don't do that.   Tony: They don't. I see this so often that they want to travel and then it's like, well, let's do something in six months. And then, okay, you could do that, but I think you need to focus on, especially in retirement, come up with a plan. I get a friend of mine because he always laughs at me because I do plan three, four, five years out even now for travel. I've got it already down for the next four years. At least what we think we want to do, obviously you can change it.   Marc: Yeah, but it gives you time to kind of build in the funds and kind of see what you're going to do. I mean, things pop up like a popup wedding destination or something like that, sure, but a little bit of structure could help.   Tony: It certainly can help. And I tell you, the shorter term planning, to me, I don't like surprises and most people don't. And I think some o

  8. Mar 26

    Inside Your Financial Easter Basket

    Quick question before we get started... which Easter candy are you most looking forward to this year? Whatever your answer is, we're going to use it. Because today we're building a financial Easter basket and matching some of your favorite candies to the products and tools that belong in a solid retirement plan. Important Links: Website: http://www.yourplanningpros.com Call: 844-707-7381   ----more---- Transcript:  Speaker 1  00:00 Quick question before we get started, which Easter candy are you most looking forward to? Yeah, that's my opener for the podcast this week, because we're going to talk about financial Easter baskets. So we're going to talk about candy and what they might say about you here this week on plan with the tax man. You   Speaker 1  00:35 everybody. Welcome into the podcast. This is plan with the tax man with Tony Morrow from tax Doctor Inc, at your planning pros.com that's where you can find them, online. Your planning pros.com, and Tony, we're gonna talk candy, because you and I are in our 50s and we love candy, but it don't love us as much anymore.   Tony Mauro  00:53 That's right. And I grew up eating candy and all these things, although my favorite Easter candy is not on there.   Speaker 1  01:00 Okay, we'll add that. Get to that at the end. Yeah, we'll add that in. So what are we going to do here? Is, I want to give you some, some, you know, Easter candy in lieu of the, you know, the end of the month here and Easter upon us. And we'll do a little financial Easter basket, and let you kind of give me some sort of, we'll do some sort of an analogy. I'll set you up with something, and I'll let you kind of talk about it, so we'll have a little bit of fun. So, are you a jelly bean kind of guy? Easter time? Do you like some jelly beans? You know? I like the kind of, what I would call those artisan jelly beans that they now have come out with, you know? So I do like them. But we always used to get just to run the mill stuff. Oh, yeah. Like, like, you know, I don't know Apple Cinnamon, or, you know, I don't know pumpkin spice or something, yes, although they probably do make a pumpkin spice Jelly Bean. And people are probably like, no pumpkins for October, not for, you know, April, but so, all right, the Jelly Bean, so, lots of colors, lots of combinations, right? And so maybe you're, maybe the analogy here is the 401 k right? Maybe, maybe some combinations, or some, some different things, some variety, potentially, yeah.   Tony Mauro  02:08 I think the biggest thing for, you know, the anchor of most retirement plans is either, you know, 401 K Sep, simple, you know, you name it as the anchor for what you're trying to do as you get toward the end.   Speaker 1  02:23 True and jelly beans are probably a good staple, a good anchor in the basket, if you will.   Tony Mauro  02:27 Yeah, you know, good anchor in the basket, you know. And you find them in every basket. If you don't have this, you know, you need to be starting it. Most employers are offering something these days, and you need to get started. I can't. We're in the midst of tax season, and I'll say this as a public service announcement, I and I've been doing taxes for 30 years. Is I always when I'm reviewing a return, look at somebody's w2 and look in box 12 and see what they're contributing or not contributing to their retirement plan. And many times I see the box check that they the company offers one, I see nothing being contributed, or I see a little bit, which is better than nothing, yeah, but you got to get it going, because it's one of the best deals on the street. It's usually some free money in there. And I think you need to start those early, the use time and compounding and everything else, so that you've got this anchor for when you you know, are at the end,   Speaker 1  03:22 yeah, I don't know why. I just got hit with it. You're talking about, you know, out there on the street, I'm thinking jelly beans in the street. And also I'm like, could you imagine a funny little world where we're out there dealing jelly beans on the corner? Hey, man, right, I got some, I got some pinks. I got some yellows. I got some of those, those terrible black ones. They're those are never very good. I'm not a big fan of, maybe it's just the, maybe it's just the, like black liquors, not very good   Tony Mauro  03:47 to me. I never did like the black ones. But I think, though, to your point, with the different colors, once you start contributing to one of these, then you need to have some diversification. Most, most retirement plans will offer you, you know, an array of different choices, which is, you know, probably behooves you to work with your advisor and come up with a strategy as to what those choices should be.   Speaker 1  04:09 Now, the Jelly Bean choices in the 401 k are, it's not crazy assortment of colors, right? So, like an IRA, you're going to have a lot more to choose from, you know, because you're kind of stuck with whatever they you know, the company goes within those 401 K options. So some people, Tony, often think about, hey, look, from a workplace plan, get that match, get that free money. But then maybe let's do some contributing to an individual account or something we set up so we have more control or more options. How do you feel about that strategy as well?   Tony Mauro  04:39 I like that strategy a lot. Well, that's what we generally will say, is, is somebody comes in, we tell them to start with their 401, K, get that company match. You could certainly continue to max that out if you want. Yeah, absolutely. And then one. Once you get to that point, then you've got to turn to outside. It might be a Roth, might be a traditional something like that. But yeah, if at least get the match. And then if you want more control, total control, then you have to go to an IRA or Roth. The only, the only drawback is, is you are limited on your contribution. So if you want to do more, you got to stay in that retirement plan with some of that. But yeah, they're all three are good ideas.   Speaker 1  05:17 Okay, all right, so moving on here with our Easter basket analogy, things you might find on the Easter basket and the candy, and then how that, you know, might correlate to something. Let's talk about peeps that teach the nasty. And if you like peeps, don't yell at me yet. I'm gonna give you I'm gonna do pros and cons here. But, you know, look, when you're a kid, man, they're colorful, they're fluffy. They're marshmallowy. A lot of kids like peeps, right? They're just kind of fun. You're kind of play with them. You stretch them out a little bit, you chomp on them. They're sticky on your fingers. But as you get a little older, I don't know, they're kind of nasty, right? And they're kind of a pain a little bit. But, you know, some people grow up and they still really love them. And this, to me, is got to be life insurance, right? Because it's kind of like when you're younger, you kind of dig it, right? And then you get older, you think, why do I like this? Or why do I do I even need this anymore?   Tony Mauro  06:08 Yeah, and, and just like peeps, and I don't like peeps anymore. I used to like them, right? Just like you life insurance generally, when we start talking about planning, is not very well, I would say, understood number one or used. So it's not everybody's first choice, that's for sure. And when we start talking to them about it, you know, everybody you know is going to die. And when you're younger, obviously, you know, especially today, term insurance is peanuts to get and protect your family. My son, who's 30, you know, got a new daughter. And, you know, home, and, you know, start accumulating debt, because they're just getting started, it's important that they have coverage. Yeah, for the family, in case one of them, you know, goes down. And yes, you can get some coverage through your employer, which obviously you want to take advantage of that. But it generally is not near enough to what you need, especially as you are younger now, as we age, we get in their 50s, like me, and I'm looking at my life insurance, and as some of this kind of is set to expire in the next five or 10 years, I don't need this much anymore, because I'm, you know, I'm closer to the end, all my bills are paid off, you know, it's in my other financial You know, situation is intact. So you may not need that. Now, some people say, Well, you know what, I don't care if I don't need it. I want it. I want to know if i i think a perfect scenario is I'm at retirement. This is me talking personally. I know that if I pass away, I can, I can, while I'm living, enjoy some of my money I've worked so hard for and I know that, okay, my son, if I'm going to pass money on to him, is gonna be taken care of through life insurance. And some people like, like, like, that angle as well,   Speaker 1  07:49 just like peeps, right? I mean, in some people love it, and it's not everyone. Some it's not everyone's first choice sometimes, right? So, but it could be a useful tool, right? As far as the life insurance thing, right, to pass on that wealth. So at least consider the conversation, have a chat and discuss it, because, again, life insurance is one of those pieces of the retirement strategy that, you know, it's, it's, there's some more wiggle room in there, but there it could be, or life insurance products in general, there could be some aspects of those tools that can be beneficial. So again, talk with your financial professional about that. And of course, Tony's here to help if you've got those questions as well. All right, inside the financial Easter basket, diving back in. Here we go. Here, robin's eggs. Okay, now, we didn't get these often, but occasionally we did. We get these interesting little candy, right? Kind of a divisive candy. Some love them. Some can't stand them. Kind of like peeps, r

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About

Financial, tax and retirement planning guidance from Tony Mauro. Tony is the original Tax Doctor, serving central Iowa. We’ll teach you how to properly plan for retirement, minimize your tax burden and attain a successful financial future.

Information

  • Creator
    Tony Mauro
  • Years Active
    2019 - 2026
  • Episodes
    98
  • Rating
    Clean
  • Copyright
    © Copyright Tony Mauro
  • Show Website
    Plan With The Tax Man

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