Speaker 1 0:03
Stay tuned right now for Retire Smart Maryland, the radio hour from Elite Income Advisors, focused on helping you build a stronger financial future and make the best of your retirement years. Retire Smart Maryland covers income and investment strategies, opportunities to help you grow and protect your wealth, examining tax-efficient planning techniques, and addresses legacy and estate planning considerations. Also, perspectives on the latest financial headlines and what you need to do. It’s time right now for Retire Smart Maryland with Elite Income Advisors.
Speaker 2 0:38
Welcome to Retire Smart Maryland, the show for pre-retirees and retirees, of course, across Central Maryland who want real, straightforward answers about their money, not just recycled rules of thumb. I’m your host, Mike Bauer, and today I’m joined by Prashant Sabapathi of Elite Income Advisors. Prashant is based in Ellicott City, and they also have a satellite office in Annapolis. And Prashant, before we get into it today, I hope you’re doing well. Thanks so much for jumping on today.
Speaker 3 1:02
It’s good to be back. Really excited about today’s show. I am doing well, but it’s been busy, Mike. That’s one thing that’s been a takeaway for me is I’ve seen so many people come in the office just in the last two weeks. We are actually doing a seminar. You know, we do. I think last year we did something like 148 seminars and on in in in our community to just talk about different retirement topics. One thing that we did recently, seminar wise, is we rented out a movie theater and invited a bunch of people from the community to come in. We showed a pretty good movie about retirement, and so we had a ton of activity at that seminar and workshop. We had, I think it was like 50 people make appointments to come in to visit, and so I thought that’s been really neat because I’ve had a lot of new, unique perspective in having some of these conversations with some of the people that have been coming in to visit. So excited to kind of get into that in today’s show, I think there’s been a lot of kind of commonalities that have presented themselves as I’ve been having those meetings, and so I think today will be a really good show because I know we’re going to talk about the things that people actually care about.
Speaker 2 2:14
Yeah, we’re going to talk a lot about family today, and if anybody’s interested in the events, 148 by the way, that’s impressive. 148 events last year. If you’re interested in one of those community events that Elite Income Advisors puts on all throughout the course of the year, check out EliteIncomeAdvisors.com. And you know, for many people listening, first time they went to go see the movies, their parents took them to the movies. Let’s talk about parents because for many listening, if they watch their parents retire, they probably have a picture of what it looks like in their heads. Work for one company, get a pension, Social Security, the good life. Boom, done. House is paid for. Everything. That model is not the same anymore. Let’s talk about what’s changed, why it matters, and let’s set the stage for Sean. How different is today’s retirement landscape from what it looked like just one generation ago?
Speaker 3 3:00
I think the burden of responsibility in the past used to lay almost exclusively with employers, right? And that’s because they were providing that pension. So it was on them to have a pension fund that could support all the people retiring after those people gave 20, 3040, years of service to the employer, but what has happened, in in my opinion, is as pensions have started to go away, this burden of responsibility has truly shifted. It shifted from employer providing the pension to now employee, who is now responsible for taking all their retirement savings in the 401k, the IRA, the TSP, and converting it into a lifetime of security and a lifetime of income. Because look, to this day, retirees’ number one concern is still, am I going to outlive my money? And so we’ve seen this tremendous shift from employer to employee in terms of the burden of responsibility, and it really kind of leads into this singular question, which is the magic number question, isn’t it? And that magic number question is ultimately going to be, how much do I actually need to retire for the rest of my life? It’s a question we get every single week, and I think it’s a really interesting kind of springboard for what most of our conversations with clients and folks that aren’t clients end up being. And that’s really how do we figure that number out? It’s really interesting.
Speaker 2 4:33
And that magic number is assuredly different for everyone you meet with. For anybody who wants to schedule a time with Prashant and the team at Elite Income Advisors. You can give them a call 833-856-1387. That’s 833-856-1387, or visit eliteincomadvisors.com. Set up a no cost, no obligation visit. Now, I’m sure previous generations and life spans have increased over the years, but that also is part of the. Equation that healthcare is a cost that prior generations maybe didn’t plan for in the same way, maybe because longevity wasn’t as much or it didn’t cost as much. How is the picture shaped so differently now?
Speaker 3 5:11
Yeah, I mean taxes and healthcare, two of the biggest expenses that anybody will incur typically in retirement, and so I think this goes back to the magic number question. Okay, it’s not so much about how much money you have when you retire. It’s ultimately about whether the money you do have can afford you the lifestyle that allows you to pay for healthcare, to maintain your expenditures, to be able to travel and have that fulfilling version of retirement, and so you know, I think Wall Street has conditioned the American public to chase an account balance instead of building an actual cash flow strategy. But most of the people that come in to visit with us, what are they used to? They’re used to getting a paycheck every two weeks or every week or twice a month, they’re used to having that paycheck coming in, and so why do we change that mindset when we get to retirement? In my opinion, you know, when you’re working, what you care about is accumulating dollars, and it’s about your paycheck coming in. When you retire, most of our clients really only care about their reliable, predictable income that they can actually live on, and so this is why I think you know just looking at $1 balance becomes a really dangerous game. Some of my best clients are ones that only have 200 or $250,000 saved, but the reason that they’re so comfortable in retirement is because they have a pension coming in that gives them reliable income. You pair that with Social Security benefits; it increases their predictable, reliable income in retirement. Conversely, Mike, I’ve seen people that have millions and millions of dollars that simply cannot retire comfortably just yet, and I think that’s a function of their spending is going to spend down their portfolio at such a fast rate that even a couple million dollars for that person might not be enough to retire. So retirement is not about how much money you have; it’s about making sure that your money creates the income, which allows you to pay for the health care, which allows you to travel, which allows you to do all the things that you never got to do because you were too busy working your butt off for the last 40 years. So let’s think about this from a cash flow strategy standpoint, not from a pure gross dollar standpoint.
Speaker 2 7:37
So if one of our listeners realizes they’ve been focused on the wrong retirement number. Somebody listening right now is like, yeah, you know what? The the magic number. I’ve misunderstood that the entire time. What’s the biggest takeaway from this segment, Prashant?
Speaker 3 7:50
I think you have to start with creating a written income plan. Okay, so a written income plan. I’m a big believer that you should be able to look at one sheet of paper. It should be this simple: one sheet of paper, or look at one TV screen with your plan on it, and know approximately how much income you’re going to have coming in every single month, every single year for the rest of your life, before and after taxes, and in today’s dollars adjusted for inflation. Because taxes, we think are likely to go up in the future. Inflation, we pretty much know is going to be higher in the future. Like costs are going to continue to go up, and so you should be able to look at one sheet of paper and know five years from now, seven years from now, 10 years from now where your income is going to come from, how much it’s going to be before and after taxes, after including inflation, and whether or not that income is predictable-meaning, is it linked to an extraneous factor that could cause that income to change, like the stock market? Right. If the stock market goes down, your income could change. We don’t want that for our clients. So mapping that out is an action item that, if you’ve never been through that exercise, you should do that today. And the best thing you can do is give us a call. It’s 833-856-1387. That’s 833-856-1387. Book a no cost, no obligation visit with my team at Elite Income Advisors. Let’s get you into the office. Let’s put together that plan for you. Let’s write it down so that we can reference it in the future. Most importantly, let’s determine whether or not we’re even the right match to work together. But it all starts with that phone call, folks. Free appointment, no cost, no obligation. Offices in Ellicott City and Annapolis: 833-856-1387.
Speaker 4 9:40
Retirement today-it’s just different than it used to be. People are living longer, costs are higher, healthcare is more expensive, and retirees today-they face financial decisions that previous generations didn’t have to think about nearly as much. That’s why retirement planning today needs to be more about you than just investments. The team at Elite Income and. They help people build retirement strategies focused on income, taxes, inflation, healthcare planning, and long-term financial clarity. Claim your free retirement income review today. Just call 833 850-613-8071. more time: 833-856-1387, or visit eliteincomadvisors.com.
Speaker 1 10:24
Some financial representatives are required to work within a corporate system, and others have the flexibility to work beyond it. In some environments, advisors may be limited to certain tools, products, or approaches, often shaped by the structure of the organization they represent. It can influence how recommendations are made and how strategies are built over time. Independent financial advisors may have the ability to evaluate a broader range of options based on a client’s specific situation. When you’re planning for retirement, that flexibility can play a role in how your income strategy, tax planning, and investment decisions come together. Because your financial life isn’t a one-size-fits-all solution, and the strategy built around it shouldn’t be either. Elite Income Advisors operates as an independent financial advisory firm focused on building retirement strategies around your goals, your timeline, and your financial situation. Elite Income Advisors’ objective is to provide guidance that is clear, objective, and aligned with what matters most to you. So call Elite Income Advisors today from Retire Smart Maryland and schedule your complimentary retirement review. 833-856-1387. That’s 833-856-1387. Or go to their website eliteincomeadvisors.com.
Speaker 2 11:39
Thank you so much for listening and spending part of your week with us on Retire Smart Maryland. I’m Mike Bauer, alongside Prashant Sabapathi of Elite Income Advisors. You can always go online to EliteIncomeAdvisors.com, and you can also call 833-856-1387. Have your calendar ready when you give a call, so that way you can get right onto Prashant’s calendar at 856 1837 main office in Ellicott City, but also a satellite office in Annapolis as well for the team at Elite Income Advisors. Prashant, I’m sure you get asked about in a variety of different ways, but get asked about Social Security all the time. Let’s talk about it today, and let’s pull back the curtain a little bit because the government’s own trustees recently released their annual report on the finances of the program, and the headline maybe not a great one: the Social Security Trust Fund, the one that most Americans depend on, is now projected to run dry in 2032. You mentioned last segment that you guys had a tremendous recent event in a movie theater, so let’s not yell fire in a crowded theater here. But is this cause for concern for most people?
Speaker 3 12:48
How could it not be, Mike? I mean, we have paid as Americans into this system our hard-earned tax money for years. Our employer puts money in, we put money in, and as a result, now they’re going to tell us at the federal government that they’re projected to deplete by 2032 the ability to make 100% of Social Security payments. Now it doesn’t mean that the fund itself will run out of money; it just won’t have enough money to make 100% of Social Security payments. So I think it’s a huge concern because it requires that something has to change here. Whether it is taxes potentially going up, whether it’s changing the full retirement age, whether it’s Congress actually getting their act together and doing something that is actually in the best interest of the American people. Which look, I don’t know about you, Mike, but I don’t have a ton of confidence in our federal government right now with the way that things are going. So I think it is a huge concern, and I think that we have to plan for the worst. Okay, we don’t want to live in a world where they come to us in 2033 and say, “Hey, your benefit is going to get cut by 22 percent or 24 percent. But I think that if you’re not planning for that scenario, if your advisor has not helped you map out what your income could look like if that happens, you might get blindsided down the road. Now, look, I hope it doesn’t happen, but you better believe I’m sitting there with all my clients trying to plan for that scenario in case there’s a 24% reduction in Social Security, I think you have to figure out what your alternative plan is going to look like. Yet, so many people that I visit with come in and say, “Hey, my advisors never talk to me about the Social Security benefit cut scenario. It’s tough to think about, but I think if you don’t think about it. You’re going to get blindsided potentially later, and that could be detrimental to your overall financial plan as a whole.
Speaker 2 14:47
You know, you just mentioned income. For many people listening, they think ROI is return on investment, but for you, that has a different meaning, Prashant.
Speaker 3 14:54
Reliability of income is what ROI means in my office, and that’s because. Most of my clients are retirees or pre-retirees. So if you’re within 10 years of retirement or you’re already retired, I think you have to look at what is the reliability of each of my income streams. So, like if you have a pension, how reliable is that pension fund? And now, if that pension is backed by the federal government or the state of Maryland, your pension looks to be in pretty good shape, so reliability of income is really high. Social Security, I would still count as a higher reliability of income, but just like we talked about, it’s not fully reliable in my opinion. And then you look at things like your 401k, your IRA, your TSP; those things are invested in the market typically. So if the market goes up, that could mean reliability of income is high. But what are you going to do if the market goes down? Are you going to feel comfortable pulling money out of the market, out of your 401k, paying the taxes when the market’s down? And so those types of accounts, we see ROI, reliability of income, is going to be a little bit lower. Most of our clients like to increase the reliability of their income when they get to retirement. Yet, it’s something that a lot of advisors don’t talk about. It’s something that we talk about every single day. And so, if you’re concerned about the reliability of income, ROI, reliability of income in retirement, just pick up the phone, give us a call, schedule that no cost, no obligation visit with us. It’s 833-856-1387.
Speaker 2 16:27
You know, and for anybody who’s just tuning in, we’re talking about Social Security in the future. According to the government’s own actuaries projecting the OASI, the Old Age and Survivorship Trust Fund, is going to potentially be depleted in 2032, which could result in a 20 plus cut in Social Security payments. A 20 plus cut is the kind of thing that you want to make sure you’re planning for now, if it’s going to happen in the future. And as Prashant mentioned, give them a call at 833-856-1387. You can always go online eliteincomeadvisors.com for that visit as well. Now, Prashant, when we take a look at a 20% cut in terms of life, I mean, we don’t necessarily look at things in percentages. Most people, I’m sure you meet with, think about how much they get per month in terms of a check, in terms of what goes into their account. So, for the average retiree, what does a 22% cut look like in real life.
Speaker 3 17:22
Look, average monthly Social Security benefits right now about $2,071 per month. A 22% reduction brings that down by roughly anywhere from 450 to $500 per month. Mike, is that a significant amount of income in retirement? I think it is. Yeah, I think most people would agree that $500 a month is a lot of income to potentially lose in retirement. Oddly enough, the cost of Medicare Part B, the base cost of Medicare Part B right now, based on 2026, is $202.90 per person per month, and that’s at the lowest Medicare bracket. So, if you end up losing, let’s say $500 per month in Social Security, that could be the cost of paying for health insurance, Medicare Part B healthcare for both you and your spouse, right? And that is a significant expense that, if it goes away, that you’re going to have to pick up. Now, again, I’m hoping it doesn’t happen, but what are you going to do if it if it if it does? How are you going to pay for healthcare? Do you have enough money set aside in a 401k or an IRA to offset that loss of income? Heaven forbid it happens. Okay, even if it doesn’t happen, though, where’s the money for healthcare going to come from? Where’s the money for your living expenses going to come from? And this just goes back to that conversation on ROI, reliability of income.
Speaker 2 18:53
You know, Prashant, we’re sitting here in 2026. We’re having a conversation about 2032, and over the years, that number has changed from 2035 to 33 to 32, what have you? But how is the conversation today that you have with people different for someone who’s retiring today, who’s already retired, who’s retiring next year, as opposed to someone who is let’s say 10 years away from retirement on the other side of this number from the Social Security office?
Speaker 3 19:20
Yeah, I think we look at this in three tiers almost. So the people that are about to collect, I think, are ultimately going to be unaffected. My personal and professional opinion is that it’s harder for the government to take away a benefit that you’re already collecting than it is to just take it away from someone who hasn’t gotten there yet. So I think that if you’re about to collect Social Security, you’re probably least likely to be impacted. I think the next tier of people are the people, like you said, Mike, that are five to 10 years away because now we’re getting to the point of critical mass, right, where something’s got to change with the system in order to make 100% of the payments. Beyond 2032, so what does that look like? Could that mean higher taxes in the short in the shorter term? I think that’s on the table. You know, I think there’s other alternatives, whether it’s repatriating money from a different area of the federal government. Now, I’m not sure the legality behind that. I’m certainly not a constitutional scholar or anything like that. So we’ll leave that to the lawyers as to whether or not that’s even possible, but that’s kind of your tier two is with when you’re within five to 10 years of retirement. I think you’re in the most important zone of figuring out what the alternative should look like, and then I think tier three is going to be everyone in generations down the line, right? So think about your kids. If your kids are 20, 3040, years old right now, I think they’re at tremendous risk because they might be 20, 3040, years away from retirement. And so, what is the system going to look like at that point in time? That’s where we can talk about things like fundamentally changing the full retirement age. Right, so like, if your kid’s 25 or 30 years old, I think it’s a fair question to say: Is their full retirement age going to be 67, like it is for us, or is their full retirement age going to get pushed up to 70 or 72 or 73, which will inherently kind of, in a way, force people to work longer, pay more taxes, create more solvency in the system. So, tier three tiers is how I look at it. Tier one and tier two are where most of our clients fall into, and I think tier two specifically. If you’re within five to 10 years of retirement but not about to collect Social Security in the next couple years, here, I think you’re at the highest risk, and thus you require the most kind of detailed plan, and I think when you have that plan in place, like if you knew that there was a way to not have to worry about this potential reduction in Social Security, that’s precisely the type of thing that gives people a heck of a lot of peace of mind, in my experience.
Speaker 2 21:58
Well, and I also feel like people have peace of mind when there’s things that they can control, and for the most part, and I know it’s an election year, and people, you know, are going to go out to the ballot boxes, what have you. But a lot of that is, for one, is potentially years down the road. A lot of that is maybe something we can’t control in terms of legislation and who gets elected at what time and this, that, and the other. But in terms of actually taking control of your retirement, and regardless of what happens in the future, I’m sure that there’s a lot of peace of mind with people you meet with Prashant, where you help them take control over this situation. That essentially we can’t control because we don’t know what’s going to happen down the line. But you can help people. This is this is goes back to something, and you recently told me a great saying from your parents. But this is something that I learned from my parents, which is better to have and not need than need than not have, and that I think you help people prepare for that.
Speaker 3 22:47
Yeah, I love that, and you know that’s kind of the issue with dealing with Washington D.C. Right, is that we are in for better or for worse. I would argue most times for worse, but we’re in a silent partnership with the IRS and with the Congress and with our federal government, and the fact is, if we are into this joint venture with Washington D.C. the problem is that they’re the managing partner. We’re just the minority partners, right? Which means we have ownership, we have stake in the game, but they set all the rules. So tomorrow, Social Security could change. Tomorrow, tax rates could change, and we have no control over that. So, what can we take control of? We can take control over what we do with our dollars. We can take control over how the taxes are treated on those dollars. Meaning, should we be transitioning our retirement to a tax-free retirement, potentially, we also have the ability to set ourselves up with an income plan that allows us to navigate through some of these worst-case scenarios. While we hope they never happen, it’s always on the table. And so, folks, I think that if you don’t have a real retirement plan in place, that means a written investment plan, a written income plan, a written tax plan, and a written legacy plan. If you don’t have these four things working together behind the scenes to create a comprehensive and well-coordinated retirement plan, I think that there’s probably some area of inefficiency that needs to be addressed. Now is the time to do it. Do it before it’s too late. Do it before Washington D.C. changes the rules in such a way that leaves you behind the eight ball. The phone number is 833-856-1387. You dial that phone number. You schedule that appointment. You are not agreeing to become a client. We’re just setting up a time so we can talk about your situation in depth 833-856-1387 833-856-1387 call
Speaker 4 24:50
now you out there if you’re an investor then I want to ask you a very very important question do you know what you’re paying in investment fees because most people don’t. And it’s not because they’re careless; it’s because those fees can be surprisingly hard to find. Over time, even small costs inside retirement accounts-they can quietly eat away at long-term growth. That’s why Elite Income Advisors-they can help you review your accounts, they can uncover hidden fees, and also explain things in plain English, so you know exactly what you’re paying for. Call today for your free portfolio analysis and fee finder report at 833-856-1387. That’s 833-856-1387, or visit eliteincomadvisors.com.
Speaker 1 25:38
At some point, it’s natural to wonder: Are we on the right track? Will our investments provide the income we need? When exactly should we start Social Security? When do we get started when it comes to estate planning? And even if you already have investments, it’s not always clear how all of the pieces work together. Because retirement planning today isn’t just about one decision. It’s about how income, taxes, investments, and long-term planning should connect together. That’s why receiving a second opinion can be so valuable-not because something is wrong, but to understand what’s working, what may need attention, and what better opportunities could exist going forward. Elite Income Advisors works with individuals just like you to evaluate their current retirement plan and help bring clarity to those moving parts. So call Elite Income Advisors today to schedule your complimentary second opinion retirement review. 833-856-1387. That’s 833-856-1387. Or visit the website Elite Income advisors.com.
Speaker 4 26:37
Call the team at Elite Income Advisors for your free portfolio review and risk assessment at 833-856-1387. You know the market feels a lot different when retirement starts getting closer. When you’re younger, a bad market year feels annoying. But when you’re thinking about retirement income, it can feel very very personal. A lot of people right now are wondering if they’re taking too much risk, or if their investments are really lined up for this stage of life. That’s why the team at Elite Income Advisors they offer a free portfolio risk report and a protection review to help you understand where you stand. Call Elite Income Advisors today at 833-856-1387. That’s 833-856-1387, or visit eliteincomadvisors.com.
Speaker 2 27:30
Welcome back to Retire Smart Maryland. I’m Mike Bauer, joined by Prashant Sabapathi of Elite Income Advisors [email protected]. I always love it when a website matches perfectly like that. But this segment, Prashant, I want to talk. You know, and we do this a lot. We talk a lot about saving for retirement, putting money away, maxing out the 401k, building the nest egg, all the good stuff. People are checking all the boxes, and that’s great. But what if one of the biggest risks in that nest egg isn’t? It isn’t actually the market at all. It isn’t something we can’t control. What if it’s the tax bill waiting for you on the other side of retirement, Prashant? You’re an author. I want to play a clip from another author, big-time financial author David McKnight, talking about why today’s tax rates are like a window that might be closing.
Speaker 5 28:14
So when you put money into a 401(k) or an IRA, it’s a bit like going into a business partnership with the IRS, and every year they get to vote on what percentage of your profits they get to keep. Not a great business partnership, if you ask me. So the idea is that you pay taxes at today’s historically low tax rates, pay the pay the piper while taxes are on sale, so that by the time taxes do potentially rise down the road, you’ve done all the heavy lifting. You can then take that money out tax free. So that’s that’s really the philosophy,
Speaker 2 28:40
Prashant. Before I get your thoughts on that, I mentioned you’re an author. Your book, Fiscal Health, Retirement Wealth, for our listeners, how can they get their hands on that?
Speaker 3 28:46
Yeah, so if you visit retiremaryland.com, folks, it’s just retiremaryland.com. Visit the website, click on the link there to get your free copy of Fiscal Health Retirement Wealth. It’s your prescription for income generation, tax management, and financial peace of mind, it’s a really good lead-in. I couldn’t agree more with David McKnight there. Chapter five and chapter six of my book. Chapter five is titled “Keep More of Your Income Taxes in Retirement. Chapter six is “Rescue Your IRA by Designing a Tax Preferred Retirement. So it all works together here. If Washington D.C. changes the rules on us and tax rates increase, that works negatively and it works against you in your financial plan. Just take an example here, folks. Let’s say that you need to take out $2,000 per month gross from your IRA, let’s say hypothetically your federal income tax rate is 20% right? So on $2,000 per month, what you end up netting after withholding 20% is $1,600 per month, and let’s say that $1,600 net gives you the life. Style that you feel really good about. Well, what happens if Washington D.C. at some point in the future changes the rules, and now your tax rate is not 20% but it is 30% Let’s say you take that same $2,000 per month withdrawal. The problem is, at a 30% tax rate, you only clear 1400 after tax, not the 1600 that you were used to. And so, why does that become an issue? It becomes an issue because now you have one of two choices. Choice number one, you reduce your standard of living to fit within the 1400 that you’re getting after taxes. Or choice number two is you increase your withdrawal. Instead of taking $2,000 per month, you are now forced to take even more out as a result. Instead of taking 2000, you might have to take closer to 2400 just to get around that same 16 to 1700 that you’re used to. Of course, when you take more money out of your accounts, folks. That means the probability that you might run out one day goes up simply because the more you take, the less you potentially have. And then, what happens if the market crashes during that process? So, tax rates on it on their own, higher tax rates create this nasty domino effect that ultimately increase the chance that you could run out of money today. So I love what David McNight’s saying there. How do we think about this in terms of paying taxes now while tax rates are on sale, so that we potentially never have to pay them again? It’s a conversation I feel like we’re having with every single person that walks in the door because taxes are top of mind. I think for everybody, and I think the writing’s on the wall that this type of tax environment probably can’t continue forever.
Speaker 2 31:50
All right, I definitely want to get into that about paying taxes now while things are on sale. But before we get there, for our keen-eared listeners, they might have heard Prashant, you’re actually clicking away on a calculator right there. I love that during that segment you’re doing the math, and I can you’re click click click click. That’s that is I mean a calculator for for somebody that’s working on people’s retirements day in and day out. I love the fact that you have a calculator just sitting right with you at home. Hey man, I feel like I
Speaker 3 32:13
always have a calculator on me. I feel there’s certain things you just never leave without. It’s a calculator. It’s a business card. It’s making sure they got a really nice pen on you, just in case you need to write something down. So you can always count on me to be have a calculator right at the fingertips.
Speaker 2 32:28
I just you know like you weren’t fumbling through your phone to get to the calculator app, and no, you’re like I have a calculator right here with actual real buttons that I’m pushing with the what with the C and the AC button, and you know maybe it’s not a TI 83 graph not
Speaker 3 32:43
one of those but I’m so old school with this stuff
Speaker 2 32:46
yeah I mean that that’s that’s back in the school days you know it’s not an abacus but it’s a real calculator I love that and I’m sure many people that meet with you and elite income advisors that just seeing the calculator just gives them a you know it’s like a warm blanket and if you want to meet with Prashant, and maybe he’ll have his calculator. 833-856-1387 eliteincomeadvisors.com. Prashant, you mentioned that there’s there’s ways to pay taxes now while they’re on sale. What are some of the ways that you can help people take advantage of known rates now as opposed to unknown rates in the future? Whatever direction the government ends up taking us,
Speaker 3 33:23
two things come to mind. Number one is something that I call proactive IRA drawdown. So this is the idea that even though you might not need your money from your retirement accounts today, you will willingly withdraw that money, pay taxes on it while rates are low, and then repurpose that money to do something else, whether it is reinvest it, gift it, or maybe spend it and spend it on things that you know could be future expenses. Like I had a client doesn’t need money from their IRA, but recently took $50,000, approximately $50,000 out, and they did that for the purposes of doing an upgrade on their house that they knew that they were going to incur in the next five years anyway, and so by just taking the money out today, they’re paying taxes at today’s rates so that when the expense comes up in the future, they’re not potentially paying a higher rate. So proactive IRA drawdown is number one, but number two, the most popular one we’ve been running into is taking advantage of what’s called a Roth conversion. A Roth conversion, Mike, is simply when you take your before tax IRA, convert it into a Roth. By doing that conversion, any subsequent growth that you earn in the market on that Roth IRA is going to be 100% income tax free, provided that you don’t touch the money for five years or more. And so, by doing that Roth IRA conversion, you’re now creating a 100% tax exempt account for which we get to break up with Uncle Sam. Which, by the way, I love the idea of breaking up with the IRS. For the rest of our lives, and then by the way, that money not only is it 100% tax free, it’s not subjected to required minimum distributions in the future, and it can pass in a tax exempt way to your beneficiaries if there’s anything left at death. Now, of course, the downside to it is that we have to pay all those taxes in the tax year that we make the conversion, but if you believe that your future tax rate is going to be higher than your current tax rate, doing a Roth conversion could be the right thing for you to do. Now, I don’t want to I don’t want to misrepresent. I’m not saying that every single one of our listeners should go do a Roth conversion today. Okay, but what I am saying is I believe every single person who has any kind of money at all in pre-tax retirement accounts should examine whether or not a Roth conversion is the correct thing to do. I think our audience would be shocked to find that a lot of you, I would even argue the majority of you will find that doing a Roth conversion could very well be in your best interest. Very few of you might find that it’s not advisable, but I think if your advisor isn’t talking about it, I think it’s a fair question to ask: Am I working with the appropriate retirement specialist? And a lot of times, people will find that the advisor that helped them accumulate money is not always the specialist to help them distribute money in a tax-efficient way. Make sure that their money never runs out. It’s a great exercise to go through if you’ve never been through it.
Speaker 2 36:31
And if you want to go through that exercise of meeting with the team at Elite Income Advisors, 833-856-1387 eliteincomadvisors.com. Prashant, let’s say somebody comes in for the first time they’re meeting with you, and they specifically say, “Prashant, I want a Roth conversion. Where does the conversation go from there? Because I’m sure there’s a lot more to that decision and that process than just, “Okay, here we go, sign this paper.
Speaker 3 36:54
Yeah. So four moving parts to this, real quick. One, create the written income plan before we start doing conversions, we want a good snapshot of what the total income picture looks like, both today and in the future. When you have that written income plan, I think you’re going to have a good idea of what the income picture looks like. That’s number one. Number two, doing a Roth conversion adds income. Okay, and so when we do the Roth conversion, we got to make sure that you’re not going into a higher tax bracket. Number three is Medicare. Okay, so Medicare Part B premiums are based on your income from two years ago. So by doing the Roth conversion, I want to make sure that you’re not going to incur a much higher Medicare premium in the future. And then lastly, number four is when you do the Roth conversion, you got to be able to pay the tax. So it might make all the sense in the world to do the conversion, but then we have to talk about where is the tax money to actually pay Uncle Sam going to come from. If you’re not sure the answer to any or all of these questions, you’re going to pick up the phone, you’re going to give us a call, you’re going to schedule that no cost, no obligation visit in Ellicott City or Annapolis or virtually, and we’re going to sit down. We’re going to talk about these things together. That phone number 833-856-1387. You can also read about it in my book, which you’re going to get a free copy simply by visiting retiremaryland.com.
Speaker 4 38:15
You know, saving money for retirements and living off that money are two completely different things. At some point, people stop asking how much am I putting away, and they start asking, okay, how do we turn this into income? That’s where the planning becomes really important. The team Elite Income Advisors they build retirement income strategies designed to help create reliable income streams while balancing taxes, balancing investments, also long-term goals. Call Elite Income Advisors today to develop your complimentary retirement income plan. The number it’s 833-856-1387. One more time, 833-856-1387, or visit Elite Income advisors.com.
Speaker 1 39:02
Call Elite Income Advisors to receive your complimentary written financial plan right now at 833-856-1387. At Elite Income Advisors, they believe that financial clarity shouldn’t come with a paywall. Retirement planning can feel complex with moving parts like income, taxes, investments, and long-term considerations. Having a written plan can help bring those pieces together into a clearer picture. That’s why Elite Income Advisors offers a personalized written financial plan designed to help you better understand where you stand today and what steps may be worth considering next. They’ll review your investment strategy, evaluate tax considerations, and help identify areas that may need your attention. So call Elite Income Advisors today to get started on your free written financial plan right now at 833-856-1387. That’s 833-856-1387, or go to their website eliteincomeadvisors.com.
Speaker 4 40:00
When people think about retirements, most are not chasing perfection. They just want to feel more comfortable about where they stand. Maybe that means more confidence about income. Maybe it means understanding taxes better. Maybe it’s simply knowing there’s an actual plan in place. The team at Elite Income Advisors they help people evaluate their current strategy and look for ways to improve clarity, improve structure, also long-term planning. Call the team at Elite Income Advisors today at 833-856-1387. That’s 833-856-1387, and visit eliteincomadvisors.com.
Speaker 2 40:38
Thanks so much for listening to Retire Smart Maryland. I’m Mike Bauer, and always glad to be joined by Prashant Sabapathi of Elite Income Advisors online at eliteincomadvisors.com. All right, Prashant. Every once in a while, I like to have a little bit of fun here. We’re going to take a very different, a weird look at the world of finance, but specifically about what we’re doing. Let’s pull back the curtain a little bit into what we’re doing literally right now, a financial radio show, because I’m sure there’s a lot of people who out there they hear a show like this, or maybe they even hear this show, and they think this sounds like an infomercial. So let’s talk honestly about why shows like ours work the way they do. For those people that hear financial radio and immediately think this is a sales pitch. Is that fair?
Speaker 3 41:23
I think it’s a fair feeling to have because of the way that the industry kind of has been previously set up. I mean, I think we’re conditioned to go to these dinner seminars and to listen to financial radio and TV shows, and I think his history seems to suggest that people are here to sell some stuff, so I think it’s an understandable reaction. People are bombarded with marketing all day long, so skepticism I think is a healthy thing to go through. I think the real question isn’t whether or not someone is actually selling something. I think the real question is whether someone’s actually providing value before they ever ask for your business, and I think there’s a big distinction there. When you come in to visit, and I can only speak for myself, right? I can’t speak for other firms out there, nor will I. I’ll speak for myself though. When you come in to visit, it’s not about buying something. It’s not even about committing to working together, because candidly, seven out of 10 people that I visit with, I find that they aren’t even a good fit for us, and we’re not a good fit for them. It’s only about three out of every 10 people, on average, that we visit with, we find that there’s a mutually good fit, and a mutually good fit means a we like each other. That’s a huge part of it, and b it means that we’re going to work together in a way that actually furthers your financial objectives. I would not want any person listening to this show today to feel like they had to work with me just because you’re only going to work with me, and I’m only going to work with you if we find that there’s something that we can tangibly help with, that we like each other, and that we find that there’s a mutual good fit, and that’s really what that first visit’s all about, Mike. When you come in, we’re just going to talk specifically about the things you want to talk about, and if we’re the right match to help you through it, maybe we’ll find an opportunity to work together. But at any point in the process, if you feel like me or my team is just not the best fit for you, or we’re not best suited to help you address the concrete concerns that you have. I’d invite you to just be upfront with us because I will be upfront with you if I can’t help you the way that you deserve, or I feel like you’re not a good fit for me. I’ll be upfront with you.
Speaker 2 43:35
Yeah, your time is valuable, and you don’t want to be wasting your time. And the same thing for anybody listening, your time is valuable too, and Prashant will not be wasting your time. So, Prashant, if somebody’s already they’ve been working with someone for years, they got a good advisor, or maybe they’re you know maybe they’ve got a financial background. What’s the value of listening to a show like ours here on Retire Smart Maryland?
Speaker 3 43:55
Well, look, I grew up in a family of doctors, and I was always taught that when I have a serious medical diagnosis. The very first thing I want to do is go get a second opinion on it. Right? Doesn’t mean that the person who gave me the first opinion was wrong. It just means that I want confirmation. Here’s the problem, Mike: is today so many people get the second opinion from the guy that gave them the first opinion to begin with, right? And I think that’s where there’s a little bit of a disconnect. So most of the people that come to us already have advisors that they work with, and I think that that is fantastic. Some of the best conversations that I have are from people who already have an advisor, but when they come in to visit, I think they come in and maybe they just hear one little tidbit that they haven’t considered. Some people discover a whole new blind spot that they’ve never heard about. Some people just come in and gain confidence that they’re already doing the right thing and that they’re working with a really good professional. And so, look, I’m a big believer that good advisors welcome second opinions, just if for nothing else, to get new perspective on uncovered missed opportunities. And I think confirmation can be just as valuable as correction sometimes for the human psychology. And so, whether we work together or not is less interesting to me. What’s more interesting to me is whether or not there’s something we can actually help people with. And I’d say, if I had to guess, I don’t know this off the top of my head, but I’d have to guess that nine out of 10 people that come to visit with us already have an existing advisory relationship, and I think that is a great, great thing. I don’t look at that as a negative.
Speaker 2 45:43
You know, Prashant, you mentioned whether you’re whether you you get confirmation or you get correction from that second opinion. You’re absolutely right when you say you can’t get a second opinion from the person who gave you the first opinion. If you want a second opinion, give Prashant and the team at Elite Income Advisors a call. Have your calendar ready and call 833-856-1387. That’s 833-856-1387. You can go online to eliteincomeadvisors.com. All right, Prashant, as we’re pulling back the curtain here on this show and what we do and what you do at Elite Income Advisors, do you find that that many people don’t call, they don’t schedule an appointment because they assume they’re going to be pressured. They don’t want that, you know, to be hard sold. It’s not a timeshare type thing. They don’t have to say like, what is what does that look like for you in terms of people that you know you find out. Okay, eventually maybe they’ve told you, hey, you know what? I’m finally a client now, but I didn’t call for five years or 10 years. I’ve been listening a long time, and I just finally picked up the phone. Is is pressure a big part of that?
Speaker 3 46:44
I think some people have that idea in the back of their mind, and I think it is a misconception. But I think it is a fair thing for people to think. I mean, nobody wants to be in a high pressure situation. We’ve all been there at the car dealership or whatever, getting let
Speaker 2 47:02
me go talk to my boss. I gotta go talk to my boss. I’ll see what I can do. Move some numbers around for sure. Yeah,
Speaker 3 47:06
exactly. So look, here’s what I will say. Okay, I love doing the radio show. I do it because I absolutely love it. We’ve done over 200 hours of radio and podcasts. I’ve done over 150 episodes of television, and I do it because I absolutely love it. Okay, nobody here is forced to pick up the phone and call. In fact, I don’t want you to pick up the phone and call unless you have a problem that you actually think you need some help with. Whether it’s taxes, worried about the market crashing, worried about where your paycheck’s going to come from. If you’re not ready to make that call, that’s okay too. Okay, my biggest thing is I can’t stress enough that the purpose of that first meeting is discovery. It’s to get to know each other. It’s not just for us to get to know you. It’s for you to get to know us. It’s for both sides to evaluate whether or not we’re even the right fit, and here’s what I will commit to: I never, I never, ever, ever do business in a first meeting, which means no matter what, there’s no sales pitch in that first meeting, and that’s because I don’t know anything about you. My team doesn’t know anything about you, and so I certainly do not know what the right solution is until we get to know you a little bit more. So, if nothing else, come in for that first meeting. Let let me share with you how we’ve helped so many families retire, how we’ve served so many clients, and you can determine for yourself whether or not you think it’s worth going through the process. I’d say most people think it’s worth going through the process, even if they don’t end up becoming clients. I think most people walk away saying that they learned something valuable that furthered their financial plan. And like I said, about three out of every 10 households that come in, we find that there’s a really good mutual fit, and we’ll determine that together at some point down the road.
Speaker 2 48:57
And you you draw the line a hard line at the fact that you never do business in the first meeting, so that is you know when when we say no cost, no obligation, no pressure, that is exactly a commitment that Prashant makes, not just to to me, but to everybody out there that he meets with. So for for somebody out there listening and is thinking about, look, I I don’t have a pension, I don’t have you know an IRA and a Roth and okay, I have a simple retirement. Do you find that people feel like maybe their situation isn’t complicated enough to need your help?
Speaker 3 49:30
Yeah, I think two things. One is people feel that it’s not complicated enough to to need help. Some people feel like, hey, unless I have a million dollars, nobody will talk to me. Like we meet with everybody, okay. I do not discriminate. I can’t necessarily say that every single person is a good fit for us, but whether or not you’re a good fit has nothing to do with how much money you have. We’re still going to meet with you. We’re still going to give you an honest opinion on where you stand, and then if there’s an opportunity to work together, we’ll. Do that, but even if you have a simple situation, I think every situation, even the simplest situation, still can get very complicated by the time you wrap in tax planning, Medicare planning, estate planning, investment risk, social security timing, income planning. Like there’s so many different kind of pieces of the retirement puzzle, so to speak, and it doesn’t matter how complicated your situation is. I think that there’s a need to make sure that all these puzzle pieces fit together. So I don’t care if you have $100,000 or $10 million saved or somewhere in between. You’re still going to have to deal with taxes. Still going to have to deal with Social Security and estate planning and Medicare, and so you know I think regardless of how complicated you may think your situation is, I think everybody deserves a comprehensive and coordinated plan. Whether you do that with us or anybody else, that’s your business. But that being said, I think everyone deserves the opportunity to have a retirement plan that gives them some sense of security,
Speaker 2 51:03
and you deserve that. You can get that plan with the team at Elite Income Advisors 833-856-1387. You can always go online to eliteincomadvisors.com. A no cost, no obligation visit. And as we just talked about, Prashant has a commitment that he’s made not just to his clients but to himself that he does not do business on the first meeting. So it’s a no pressure situation. You know, you could call it a consultation or or what. It really is a visit. It’s a conversation with Prashant and the team at Elite Income Advisors. That’ll do it for our show today. Big thanks to you, Prashant, and the entire team at Elite Income Advisors for breaking it all down in a way that we can actually use again online at eliteincomadvisors.com. Here’s a couple more websites: retiremaryland.com if you want to get Prashant’s book, and they also have a great website as we’re talking about taxes and Social Security taxes. It affects everybody. TestMyTaxes.com if you’re just looking to, hey, you know what? What is what is my retirement readiness when it comes to taxes? Testmytaxes.com. On behalf of Prashant and the entire team at Elite Income Advisors, I’m Mike Bauer. Thanks for listening to Retire Smart Maryland. We’ll see you next time.
Speaker 4 52:24
Annuity guarantees are subject to the claims-payability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain period of time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons sell annuities and other insurance products receive compensation for these transactions. Products are subject to fees and additional expenses. Any comments regarding safe and secure investments and guaranteed income streams refer only to the fixed insurance products. They do not refer in any way to securities or investment advisory products. Information presented on this program is believed to be factual and up to date, but we do not guarantee its accuracy, and it should not be regarded as complete analysis of the subjects discussed. Discussion should not be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell the investments mentioned. Professional advisors should be consulted before implementing any of the strategies discussed. Investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio. Investment advisory services offered through Elite Income Advisors Incorporated, a registered investment advisor located in Ellicott City, Maryland. The firm only conducts business in states and jurisdictions in which they are properly registered or exempt from registration requirements. Registration is not an endorsement of the firm by securities regulators, and does not mean the advisor has achieved a specific level of skill or ability. Content should not be viewed as personalized financial advice. Insurance and annuity products are sold separately through Retirement Planning Services Incorporated. Neither firm is affiliated with or endorsed by the Social Security Administration or the IRS. Social Security, Medicare, pension, and tax rules are subject to change at any time. Insurance and annuity products are sold separately through Retirement Planning Services Incorporated. President Ozer Culhagil, Prashant Sabapathi, and Jonathan DeFeo receive commissions for the sale of insurance products as insurance agents for Retirement Planning Services Incorporated, insurance community product guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. Morgan Patrick is not a client of or affiliated with Elite Income Advisors. However, he has a financial incentive to promote our services because he was compensated for his work on Retire Smart Maryland. The program is the paid production of Elite Income Advisors.
