Speaker 1 0:04
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. I’m your host Mike Bauer. We’re so glad you’re spending part of your day with us here on Retire Smart Maryland. In every episode, look the goal simple: help you understand your money, your options, and your future a little more clearly than before you tuned in. So thanks so much for tuning in, because when it comes to retirement, it really is all about the income. And joining me today, as always, is Prashant Sabapathi of Elite Income Advisors, based right in Ellicott City, with a satellite office in Annapolis. Prashant, thanks so much for jumping on today. Welcome back.
Speaker 3 1:08
Glad to be back. Got a really really good show. I know when we were doing the prep for this one, we were kind of drawing on some experience that we’ve had with some clients that have come into the office recently, as well as had a couple really interesting interactions with some of the radio audience as well as people who came in off the TV show, so excited to get into the topic specifically about income in the first segment because you said it, Mike. It’s really all about the income when you get to retirement, and you know I’ve been saying that for like a decade now that it’s all about the income, but so often people ask me what does that actually mean, and so I really want to spend some time today communicating to the audience what most of our clients as retirees actually go through and experience, specifically with regards to their retirement income and why it’s so important to plan for. So excited to dive into this show today. Should be a good one.
Speaker 2 2:03
So Prashant, I’ll start my first question for you with a few questions. I’m guessing when most people ask you about retirement, like you just said, you know, maybe somebody in the grocery store recognizes your voice or sees you, and hey, that’s the guy from TB, and they probably ask you or they think about retirement and they’re thinking in terms of how much money do I need? Is the better question. How much or how long does that money actually have to last? Like, how long should people really be planning for today?
Speaker 3 2:29
The way I think about this is think about the value of your house, for example. Right? We know that the value of your house it probably fluctuates year to year. But does anyone ever actually look at the value of their house and say today it’s worth a million dollars, and tomorrow it’s worth 1,000,002 and the next day it’s worth 980,000 Like very few people, I think, think about their house like that. But so many people think about their retirement like that. Hey, my 401k has a million dollars in it, and if the market does well; that million dollars grows to 1.2 But then, if the market doesn’t do well, it might be worth 850 if the market crashes. Right. So, to me, we’re asking the wrong question. Just as you alluded to, it’s not about how much your nest egg needs to be in order for you to retire. To me, it’s really all about one thing, which is how much of a paycheck or how much income can that nest egg deliver for you for as long as possible before you actually run the risk of running out? Think about it this way, folks: if you are working right now, your financial lifestyle is just a function of what I call money coming in and money going out, isn’t it? It’s just paychecks coming in, it’s expenses going out, and of course, you try to do your best to save as much money as you possibly can for retirement. When you get to retirement, does this idea of money coming in and money going out does that idea change? I would argue that it doesn’t change, right? It doesn’t. It’s still about money coming in, money going out. The thing that changes is where the money coming in is going to come from. If it’s not going to come from your paycheck, it just has to come from somewhere else, whether it’s pension, Social Security, or generating income from the 401k the IRA, the TSP that you have in place. So let’s stop thinking about this from the standpoint of how much do I need to retire, and let’s start thinking about it from the standpoint of how much income do I have to have coming in in order for me to live the most fulfilling version of my lifestyle, and more importantly, where is that income going to come from? How long is it going to last before I actually run out of money? I think when you start framing it this way, it gives you the opportunity to think about your money in a way that potentially you never thought about it before, and allows you to answer some of those questions. The primary one being, when can I actually retire?
Speaker 2 4:52
Yeah, you know, and Prashant, you’re talking about you know money coming in and money going out, and now you have to you you’re creating that money where it’s coming in. Coming in from the years of you saving, if you need to figure that out, give Prashant a call and the team at Elite Income Advisors anytime 833-856-1387 Have your calendar ready. We’ll get you right on his calendar 833-856-1387 You can always go online to eliteincomeadvisors.com Prashant, what what happens if somebody comes in and they meet with you and they they’ve they’ve got a bunch saved but they have no income plan at all? They they they haven’t looked at this next phase, the one that we’re talking about in terms of creating your own income, your own paycheck.
Speaker 3 5:34
Well, you know, I talk with folks in the public all all the time about the importance of having a written income plan, and when I talk about a written income plan, I feel like people don’t truly understand what that is, right? So, to me, having a written income plan is being able to look at one sheet of paper, one screen, and say, for the rest of my life, I anticipate to have X, Y, Z amount of income coming from these sources after taxes, after inflation, and so when you get a four 1k statement, when you get an IRA statement or Roth IRA statement, it might tell you how much money you made or lost for that month. It might tell you how much you paid in fees for that month. But most of the time, what it doesn’t tell you is how long you can withdraw X amount of dollars off of that account before that account actually runs out of money. But the thing is, the fluctuation of your account only tells you one half of the story. It’s not actually telling you the more important half of the story when it comes to retirement, which is how long is my money actually going to last. So I think it’s supremely important for you to actually map out how much income you’re going to have coming in, and you should really understand two or three things about your retirement income. Okay, I would write this down if you’re in a position to do that. If you’re driving, please don’t write it down, but listen to the show on demand. And when you listen on demand, you come back to this with regards to your retirement income. You should understand the following: number one, how certain is that income going to be in retirement? Is it something like Social Security or a pension where it’s reliable and we can count on it, or is it subject to factors outside of our control, like the stock market, for example? So that’s number one: is how certain is my income? Number two is what happens to my income when I pass away. If you’re married, what happens to your retirement income if you pass away? Is your spouse going to get to keep all of it, some of it, or none of it? For example, if you have a pension, do you have a survivor benefit on the pension with Social Security as a married couple? You’re going to lose one of those two Social Security benefits if one spouse passes away. So what happens to the income when I pass away? Third, how is my income going to be taxed? I’ve said for years I do not care about your gross income. I care about your net income. You can’t spend gross. You can only spend net. So by the time taxes decay and eat away at your top line income, you got to understand what the bottom line is going to look like. And so when you understand just these three fundamental things about your retirement income, it’s incredible how much further down the retirement planning path you can you can get, and so I kind of look at it as retirement is like switching from accumulation mode, which I would kind of akin to like building a house, to distribution mode, which is actually living in the house. You can’t use the same tools to build a retirement income that you use to grow your savings. You need to shift your mindset from returns to predictable lifelong paychecks in our office. ROI means reliability of income. Okay. Yes, I want while you’re working, it’s about ROI. How do I earn the best return on our investment? When we get to retirement, ROI shifts to reliability of income, folks. If you’re not sure where your income is going to come from in retirement, if you don’t have a written retirement income plan in place that you can reference when time gets times get tough, give us a call. It’s 833-856-1387 That’s 833-856-1387 Schedule that complimentary, no cost, no obligation visit with me and my team. Let’s sit down, put together that retirement income plan that you deserve as you head for the retirement of your dreams.
Speaker 4 9:27
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 eight. 338 5613 87 and visit eliteincomeadvisors.com
Speaker 1 10:08
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 11:25
Thanks so much for listening to Retire Smart Maryland. I’m Mike Bauer, sitting with Prashant Sabapathi of Elite Income Advisors. You can find them online at eliteincomeadvisors.com. And you know, Prashant, we talk a lot on the show about 401ks, IRA, IRAs, Roths, annuities. The words start to blur together after a while, and for many people, look-you’re not alone. The confusion isn’t just annoying; it can be expensive as well. Before we start, and we’re going to have a little fun here with some serious situations and compare vehicles for retirement to actual vehicles in your garage. One way that people can kind of get up to speed on a lot of things is is by getting a free copy of your book Fiscal Health Retirement [email protected] Prashant,
Speaker 3 12:08
yeah, we created this website, folks. It’s retiremaryland.com You visit that website, fill out a quick questionnaire, provide some info. I will mail you a free copy of my book Fiscal Health Retirement Wealth. When I was writing the book, I wrote it originally during the pandemic when you know we were all locked down, had nothing better to do. So I figured, why don’t we write the book on retirement? So we wrote this book, and I took a lot of input from my existing clients when I wrote the book. I talked to clients and I asked them where is there a gap in the knowledge base, and how can I help solve for that gap? And so, it’s a super easy read. I’m talking like less than 80 pages on this book. But to piggyback on segment one, there’s two chapters of the book that you’re going to want to look at. It’s chapter three. The title of the chapter is “Fill the Income Gap: Choosing the Right Strategies to Fill in the Gap in Your Retirement Income. So that’s Chapter Three, and then Chapter Five is something that people have actually been coming into the office after reading the book and talking to me a lot about. And Chapter Five is titled “Keep More of your income taxes in retirement because obviously tax burden is a huge piece of your retirement plan. So visit retiremaryland.com, read the book, pay attention to chapter three and chapter five. It’s super easy to read. You can probably read this book if you if you’re taking a quick flight across the country or something like that. You’ll read this book, share it with your friends, request multiple copies if you need to to give it out. We’ll take care of the shipping, the handling. It’s all totally free of cost. But read the book and then come into the office and let’s talk about what you read and make sure that your retirement plan is up to snuff. It’s retiremaryland.com. Fill out the questionnaire. Get your free copy of Fiscal Health Retirement Wealth. All
Speaker 2 13:59
right, Prashant, let’s have a little fun here. This segment, we’re going to try something different. We’re going to talk about retirement vehicles as if they were actual vehicles in your garage. The comparison can actually line up a little bit better than than than I thought at first. Yeah. All right. So the one that most people probably know. There’s a bunch of numbers and letters out there. The 401k. If that was an actual car in your garage, what kind of car would that be?
Speaker 3 14:21
I was doing some brainstorming, and I think what I would kind of relate this to is it’s kind of like the company car, isn’t it? Okay, and I literally mean that with every sense of the phrase. Your employer had a hand in putting you into it. They might have even helped you with the payments through matching contributions, but there’s rules surrounding that company car, right? You have to follow the rules with how long you have to stay before you totally vest in the plan. Now, it is a reliable ride, but it comes with the employer’s logo on it, right? And with that employer’s logo, it comes with a limited menu of options that somebody else had a hand. In picking out, so one of the things like the 401k does not offer a lot of times in most cases, 401k are not giving us investment flexibility. You’re stuck with the combination of investments that the employer offers you. Some of those could be really good. Some of those might not actually be up to what is best for you in your situation now, the good thing is that when you leave the job, you can take that money with you. Most of our clients end up doing what’s called a rollover of their 401k They move it into an IRA, which gives them a tremendous amount more flexibility to craft their retirement plan in a way that is specific to them. And I think that’s a really important piece of it. So I’m not necessarily saying everybody should do a rollover, but I definitely look at it as a company car. It definitely has its benefits while you’re working there, and I think it also has its drawbacks that could work against you if you do not coordinate it properly with the rest of your retirement plan.
Speaker 2 16:00
It’s actually maybe a little bit better than a company car because most people aren’t taking the car with them when they’re done. Yeah, you get that 401k, but you mentioned rolling it over into an IRA. So now the natural question is: All right, so now you’ve got an IRA. What kind of car is that? If the if the 401k is the company car, an IRA that you’ve you’ve rolled that over into, what kind of actual vehicle in your garage would that be?
Speaker 3 16:22
I thought about this as if it was kind of like the classic car, right? The one that you keep in the garage, you own it outright. You’ve been working on it for years. It’s been appreciating maybe quietly in the background. It looks great on paper, but here’s the thing: you haven’t paid the tax on that just yet, right? Like, let’s say you bought this car years and years ago. It’s appreciated in value, and now you go to sell it. Technically, when you have gains on investments, you got to do what with those gains? You got to pay taxes on those gains, right? And the thing about an IRA is that you’re not just paying taxes on the gains; you’re actually paying taxes on every single last dollar that’s in the IRA, and by the way, it’s taxed at ordinary income rates. And then it gets worse when you get to 73. For some of you, it’ll be 75 years old. You have to deal with what’s called the required minimum distribution. The federal government actually puts their hand in your pocket, says, “Hey, you have to take money out of this account, whether you need it or not. You have to report it as income. It could increase your tax bracket. It could increase the cost of your Medicare premiums down the road. And so, there’s this nasty, nasty domino effect that comes with having all of your money in IRA accounts, so the classic car, the IRA is valuable, but you never fully own it until the tax bill is settled. But Mike, I think one of the biggest gaps in retirement planning is understanding the tax liability. Which, by the way, you read Chapter five in my book, you’re going to get a head start on how to potentially deal with the taxes. Again, retireMaryland.com get your free copy of the book, but make sure that you’ve thought through the taxes before retiring. Make sure you have that written plan in place so that you know exactly how you’re going to deal with it.
Speaker 2 18:18
All right, since we’re talking about taxes, let’s let’s look at the flip side of the coin. The traditional IRA has that tax bill waiting down the road. How about that Roth IRA? What what kind of car would a Roth IRA be?
Speaker 3 18:28
I’d say it’s the I kind of look at it as the car that you bought outright with cash, and you don’t have any debt on it when you buy it. And isn’t that the best type of car where you don’t have a payment every month? That’s how I look at a Roth IRA. You paid the price in full with no deduction when you put the money into that Roth status, and now it’s yours. It’s got a clean title, no strings attached. You drive it whenever you want, as long as you want. And by the way, when you pull money out of that Roth IRA, guess what the tax bill is? As long as you’re over the age of 50-nine and a half and have the account for five years or more, that tax bill is zero, and zero is our hero when we get to retirement, isn’t it? So, you know, it’s all about designing a tax preferred retirement if possible. There is no tax bill waiting at the finish line with a Roth IRA, which I think make them one of the most powerful retirement planning tools out there. It’s incredible to me why more advisors do not advise their clients to utilize Roth IRAs. I think there’s such a gap in the retirement income space with integrating Roth IRAs into clients’ financial plans, and by the way, I think that that fault lies primarily with advisors, not with clients. I think that most people with the correct information would make the right decision. I think there’s just a gap in the knowledge base. I think the government has failed us in that regard. I think a lot of advisors have failed their clients in that regard, and so we are seeing more and more of a push to transition retirement accounts to a Roth status with the purpose of building a tax preferred or even a tax free stream of income in retirement. Super powerful. I think it’s very much so underutilized.
Speaker 2 20:24
You know, Prashant, you talked about your book. You’ve got a couple. Chapter three, fill the income gap, and then chapter five is specifically titled “Keep More of Your Income Taxes in Retirement. But you’ve also created a website, testmytaxes.com. So if you’re specifically listening to the show and you’re like, you know what, taxes are are a big part of what’s holding me back. You can get a free look at testmytaxes.com, and you can always give Prashant and the team at Elite Income Advisors a call 833-856-1387 That’s 833-856-1387 All right, so you know you mentioned zero as our hero. There’s an element of that in something that is divisive for a lot of people, and that’s the annuity. A lot of people may be confused by how annuities work. Can you explain that and maybe dumb it down for people like me as a vehicle?
Speaker 3 21:11
Yeah, I think I look at the annuity as a leased vehicle. Okay, I got one
Speaker 2 21:17
of those,
Speaker 3 21:18
and the the benefit there is the annuity gives you something that almost no other vehicle can give you, and that is guaranteed monthly or lifetime income, right? And so what that means is you’re taking a piece of your portfolio and you’re dedicating it solely to give you a paycheck, and that paycheck is good for the rest of your life, and that’s super powerful. I think for a lot of folks now, is a leased car the right thing for every single person out there? Of course not, right? It depends on your situation, depends on your budget, it depends on how long you’re willing to pay that lease and what you’re going to do with it after that lease term is up. Annuities are very similar. They have benefits for some people, and they have things about them that are drawbacks for others. So, in no way is an annuity the right thing for every single person. However, if you value certainty, if you value having a paycheck coming in, having an annuity could be the right thing for you. I give you an example here. I was visiting with a radio listener. This must have been a couple weeks back. They came to us. They had about close to $3 million approximately, in retirement assets. So did a really good job of saving money. We put together their written income plan, and what we found is that their social security and their pension was not enough to fulfill all the income that they needed in retirement, and so what we found is that they were about $5,000 per month short in meeting their target income in retirement, and so with the $3 million what we were able to do is we took approximately three-I’m sorry, $750,000 Place it into an annuity, and by the time they retire, that $750,000 annuity will actually give them the income that they need to close that $5,000 per month gap in their income. And so, the good thing is the income gap is taken care of, which allows the rest of their money-the two and a quarter million that we did not put into the annuity-it allows that other money to sit there, compound in the market, and continue to grow. Now, the drawback of the annuity is it’s not a high-growth vehicle. It’s unlikely that they’re going to average a super high rate of return. But the one thing that it will do is it won’t give them ROI from from return on investment. It will give them ROI from the standpoint of reliability of income. So look, we’ve spent this segment looking at your retirement garage, but here’s the reality: just owning a bunch of cars or having a bunch of different accounts doesn’t mean that you actually have a road ready retirement plan. Many people treat their 401ks and IRAs and annuities like isolated parts, but the secret I think to a stress-free retirement is making sure that they all work together as a fleet, folks. If you don’t have a comprehensive, coordinated plan in place, if your advisor is not talking to you about taxes or income or whether or not you’re taking the right amount of risk based on your objectives. Great opportunity to give us a call, schedule an appointment in Ellicott City or in Annapolis or virtually. It’s 833-856-1387 That’s 833-856-1387 It’s completely complimentary. There’s no obligation to do any business. It’s just a conversation about the things that are most important to you. So have your calendar ready: 833-856-1387 Call now. Schedule that no cost, no obligation visit today.
Speaker 4 24:54
How do you really know if you’re ready for retirement? Is it a number in your account? A certain age? Maybe. A feeling. Hey, the truth is, retirement planning usually comes down to whether all the pieces are working together: income, investments, taxes, healthcare planning, also long-term goals. The team at Elite Income Advisors they help people evaluate where they stand today, and they identify areas that may need attention before retirement begins. So, call the team at Elite Income Advisors today for your complimentary retirement readiness review at 833-856-1387 That’s 833-856-1387
Speaker 1 25:35
Have you noticed how much more everyday costs seem higher than they did just a few years ago? Whether it’s groceries, gas, dining out, healthcare costs, or even home and auto repairs, many people are feeling those increases in their day-to-day lives. Even though national inflation rates may move up or down over time, the cost of living tends to build up gradually, quietly, year after year, like climbing the stairs. And when you’re no longer earning a paycheck, rising costs can slowly reduce what income is available to purchase for you. So, does your current plan account for rising costs? 10 years, 15, or 20 years into retirement, will your income keep pace with increasing expenses? Are your investments positioned in a way that may help offset higher costs over time while protecting what you’ve saved. Elite Income Advisors works with individuals to build retirement income strategies that take inflation into account, helping align income, investments, and long-term planning needs. Call Elite Income Advisors today from Retire Smart Maryland to request your complimentary retirement income review. 833856 338561387 That’s 833-856-1387 or go to their website eliteincomeadvisors.com
Speaker 2 26:51
Thanks so much for listening to Retire Smart Maryland. I’m Mike Bauer, joined today by Prashant Sabapathi of Elite Income Advisors. And Prashant, in this segment, I wanna I wanna take a look at at building wealth from the retirement portfolio because you know I mean obviously we talk about money it’s a it’s a money show that’s no surprise to anybody thank you for listening anybody tuning in who’s been listening for a long time or just for the first time we talk about a lot of things on the program but it all comes back to making sure you actually have the resources to retire well so when most people think about investing, Prashant. They think stocks, bonds, mutual funds. What are some of the things that wealthier investors do that often look beyond that that air quotes on the radio standard mix?
Speaker 3 27:32
I think what I found is that more successful, wealthier investors truly do not subject the success of their investment plan in one area. So, what I mean by that is, it’s not all concentrated in stocks. It’s not all concentrated in real estate. It’s not all in annuities. I think it’s not about kind of replacing traditional investments. It’s about adding additional sources of both return and income to help reduce the risk that if any one thing goes wrong, that your plan will be derailed. Now there is a function of that that obviously the more money you have saved the more flexible you can be with taking advantage of things like private real estate deals, private credit, infrastructure projects, private business investments, angel investing, whatever whatever you want to call it. Obviously, the more resources you have, the more diversified you can be. But I think this also works in cases where you have people that have you know a million and a half, 2 million, $3 million you don’t necessarily need to be 1020, $30 million just to take advantage of different resources that could diversify your retirement plan and reduce your overall amount of risk. So I think it’s always really interesting that the perception is we have to have 10s of millions of dollars to take advantage of things like that, and it’s just simply not the case. We’ve seen clients with a million and a half, 2,000,002 and a half million who still did a really great job saving money, be able to take advantage of different opportunities to help reduce their overall risk profile, as well as diversify their investments in such a way that allows them to flourish, regardless of what could potentially be going on around the world or in the market.
Speaker 2 29:32
You know, when when you take a look at at the different, obviously, stocks, bonds, mutual funds, you know, the items we talked on, and and you mentioned things like private real estate credit and business investment stuff like that, but I mean, I think for a lot of people, you just kind of have it ingrained. Maybe it’s for your folks. Maybe it’s from a young age that debt is bad. Debt is something to avoid. Is are there ways that sophisticated investors sometimes are actually using borrowed money to to build wealth?
Speaker 3 29:59
Yeah, I think. There’s a key distinction here, and as somebody who’s you know grown a business and and watched our business kind of in our practice flourish over the last decade plus, I think there’s a key distinction into what the debt is actually doing. Is debt being used to buy something that consumes money, or is debt being used in such a way that it has the potential to produce money, right? And anything that we’re using debt to just consume money, like if I go buy a new car and I take a loan on that car, I’m using borrowed money on a depreciating asset, right? Which is no good. Now, if I use debt to invest in real estate, which now produces a passive income for me, that could be using leverage and debt in a productive way, where I can still build equity into a real estate deal that may appreciate over time, right? So, I think how you use debt and what the debt is actually doing is it consuming money or is it producing the potential potentially producing money? I think that very much so matters when we talk about using debt in a productive way for the purposes of creating returns in retirements. An interesting thing, but I’ll tell you what. And you know, Mike, you’ve been doing this for some time. I mean, I’m sure you can probably appreciate this in the social media kind of culture that we live in today. Uh
Speaker 2 31:29
oh.
Speaker 3 31:30
I mean, you open up Instagram or TikTok or whatever your social media, you know, preferences, and you see all these people talking about these alternative investments and leverage, and how they got super rich and successful doing it. I think the underlying thing here, though, is you have to be careful, and you have to understand what you’re getting involved in. In the social media world that we live in today, it’s easy to look at a 20 second or 30 second clip and just think, “Oh yeah, that’s what I have to do because it worked for some guy on the internet, but nobody ever goes on social media and tells you about all the times that they failed or that their deals went wrong, right? So I think whether or not it’s the right thing for any potential radio listener out there, you know, I think you got to understand what you’re getting into potentially. You have to understand the risks associated with it. You have to make sure that the reward potential is commensurate with the risk, and most importantly, you have to actually feel that it is in your best interest to further your retirement plans. And I think that’s why it’s so important to work with a fiduciary advisor when you get to retirement, and not just you know base all of your financial decisions based on what your best friend did, or your golf buddy did, or what you saw on social media, you got to evaluate it for yourself. Make sure that, from a fiduciary standpoint, it is actually in your best interest. And I can’t tell you how many times I see people that have made decisions that don’t go through that decision-making process and that evaluation process. I should say before making the decision. It’s kind of scary to think about in this day and age.
Speaker 2 33:02
Yeah, you know, and you know, you mentioned TikTok and Instagram, you know, Twitter X, whatever it is. Taking advice from some random person on the internet, or or even you know, at your you know, from from your buddy sitting next to you at the 19th hole at the bar. Hey, you know, he he found a winner in his stock, but that doesn’t mean that that’s going to be the case for you. Obviously, you know, meeting with somebody and Prashant, you mentioned a fiduciary advisor. It’s very important to meet with somebody who has that experience and can help you explore the options that that don’t fit for everybody. Maybe they just fit for you, and you can meet with Prashant and the team at Elite Income Advisors. Give them a call. No cost, no obligation. Leave the checkbook at home, but have your calendar ready right now when you call 833-856-1387 Set up a meeting with Prashant and the team at Elite Income Advisors in Ellicott City or the Satellite Annapolis office 833-856-1387 or you can always go online to eliteincomeadvisors.com All right, just
Speaker 3 34:03
just just another point on that, real quick. It’s not just about the advice you’re getting on social media and from your friends, but what about AI in this day and age? Right, it’s like so many people are looking at AI engines to create their financial plan, and I think AI is incredibly valuable in that regard from an information gathering standpoint, right? But I think my mom always taught me growing up because you know my my parents were both business owners. They ran medical practice. They always used to tell me never take advice from people that don’t have to live with the consequences, right? So what happens if AI gives you a piece of advice, or you see it on social media, and now you invest in it, and it goes wrong? It doesn’t work out. Who’s going to be held accountable for that? At the end of the day, you’re not going to hold AI accountable. Certainly, you’re not going to hold some social media influencer accountable. And so, I think before you make really big, really important decisions, use the technology to gather information, but make sure you try to bounce that off somebody who has the power of perspective. Like, if nothing else, I think one of the cool things about what I’ve done over the years is I’ve gotten to meet with 1000s of people. Some are really, really successful. Some are really far behind, and there’s everyone in between. And if nothing else, I have the power of perspective to know that there are certain things that tend to just work out more frequently than others. And so, if you’re considering something, why not come in and just have a conversation about it to see whether or not it truly could be the right thing for you, and that’s what these free appointments are all about. At the end of the day,
Speaker 2 35:49
you know, and and really, it’s a conversation, it’s a visit. You sit down with Prashant, remember the team at Elite Income Advisors, and you have a conversation about the options, about the road ahead, about what that could look like for you. You mentioned AI. You know, look, I I don’t think you can call up Elon Musk and blame you know Grox, you know, which is their AI engine. You can’t blame Grok for you know for bad investment advice. Exactly. I love that quote from your folks though, and it’s always you know learning learning things from from mom and dad is great. Never take advice from people who don’t have to live with the consequences. I think that’s that’s powerful, and it’s great advice for anybody listening because Prashant is on your team. When you sit down and meet with him, he’s going to work to help you find the best, no stress, you know, retirement. Hopefully, of your dreams and plan it out. So then that way you have the income reliably throughout however long you are going to be retired, however long you’re planning to be able to do the things that you want to do in retirement with the people you want to do them with, give Prashant Sabapathi and the team at Elite Income Advisors a call, 833-856-1387 Again, that’s 833-856-1387 8561387 You can always go online to eliteincomeadvisors.com. We’ll be right back on Retire Smart Maryland.
Speaker 4 37:08
Hey, if you want to retire soon, then here’s something that you may not realize until it happens: taxes. They can affect almost every part of your retirement income, your IRA withdrawals, your Social Security required minimum distributions. It all starts working together once retirement begins. That’s why Elite Income Advisors-they help people build retirement income plans that also take taxes into account. Because the goal isn’t just creating income; it’s helping you keep more of it. Call today for your complimentary tax reduction review at 833-856-1387 That’s 833-856-1387
Speaker 1 37:53
Call Elite Income Advisors today to get your free Social Security and retirement income review at 833-856-1387 When you take Social Security can affect more than just when the checks begin. You’ve paid into Social Security for decades, so how do you know when to take it to get the most out of it? On the surface, it may seem like an easy call, but your benefit amount can vary depending on when you claim. If you’re married, your decision could affect your spouse as well, and depending on your overall income. A portion of those benefits may be subject to taxes. So it’s not just about picking a date. It’s about how that decision fits into your overall retirement income plan. How will Social Security work alongside your other accounts, your investments? Not just today, but years down the road. These are the kinds of decisions that can benefit from a coordinated approach. Elite Income Advisors and Retire Smart Maryland works with individuals to evaluate Social Security timing and the strategies as part of a broader retirement plan, helping bring clarity to how these pieces may fit together. So call Elite Income Advisors today to get your free Social Security and retirement income review. 833-856-1387 That’s 833-856-1387 Or schedule your time at their website eliteincomeadvisors.com
Speaker 2 39:11
Thanks so much for listening to Retire Smart Maryland. I’m your host Mike Bauer, joined today by Prashant Sabapathi of Elite Income Advisors, based right in Ellicott City, satellite office in Annapolis, Prashant. You know we’re wrapping things up, final segment of the show, and I’m sure that this is something that that you talk about with people all the time, which is building a paycheck you can’t outlive. Saving is I don’t even know the exact math. I would say it’s only half the job. It might even be a different number than that, but it really is a transition after you stop working because now your portfolio has to do the work for you, and there’s so many elements that go into it, which is why it’s so great. I really value these conversations we have because there’s things like when to claim Social Security, which accounts to draw from first, how much risk you know, which is a different question for every. Everybody you talk to, but every one of those decisions matters. So I’m going to ask you right off the bat here: Is when do most people claim Social Security? Because I know that there’s a wide range of answers there in terms of when people do, when they should. I’m sure you get that question all the time.
Speaker 3 40:18
Oh yeah, by far this is a number one question we get with regards to Social Security is when do I actually take this thing? And there is really no cookie cutter answer. But here’s one thing I’ve noticed: when I first, you know, started meeting with folks like years ago on this, we used to see that the trend line was people would lean towards delaying. Right? People want to wait till full retirement age. Some people even wanted to wait till 70, and that’s because the you know the embedded kind of 8% credit for delaying was really attractive. One thing I’ve noticed, and this is might be anecdotal. I don’t have the statistics nationally, but just looking at our client base and the folks that come in to visit with me, I’ve seen this shift to people wanting to collect earlier and earlier. Mike, okay, like you know, I was in I was in Costco the other day, and somebody pulled me aside. They said, “Hey, you’re the guy hosting the radio and the TV show, right? And they started talking to me about Social Security, and they were like, “All my friends are telling me collected at 60-two. How do you feel about that? And you know, I I always stop short of like try to give people advice that’s not specific. But one thing I did share is I think people are hyper concerned about the state of Social Security. I mean, by far the number one concern I get is what happens if I’m like 56 or 58 years old? Is Social Security even going to be there for me by the time I turn 70? If I wanted to delay that long, I think that’s a legitimate question because the government has told us that there’s not enough money to pay 100 of benefits, and so I think that is skewing people to collect benefits earlier rather than later. And I think that is a huge shift in the mindset surrounding Social Security income, and I think that shift has been kind of happening quicker than we thought. And to me, I’ve seen it anecdotally here just over the last decade or so, and I fully anticipate seeing people collect it earlier and earlier because they’re concerned that they won’t live long enough to collect the tax money they put in, I think they’re concerned about solvency, and more importantly, I think people want to retire. And in order to retire, you got to have a source of income coming in. And what good is Social Security if you end up passing away and not being able to harness it? So I think there’s a lot of moving parts to it, but understanding Social Security optimization is a huge piece of the retirement planning puzzle, and so many advisors do not properly counsel their clients on it. And I think I think that’s a huge issue. It’s a huge gap, and it’s one of the biggest reasons that I think people make the switch from their current advisor over to a retirement fiduciary that looks at the big picture, not just at investments on their own.
Speaker 2 43:04
So this was at Costco, right? This you you somebody ran into you, Costco. Did you did you tell them you’re already doing a pretty good job? You’re saving money on gassing in $1.50 hot dog and and coke combo.
Speaker 3 43:14
Yeah, no kidding, no kidding. It’s my favorite part. But you know, you you go to the Columbia Costco, and you know people that are right by my office know that that Costco is, I mean, it is a nightmare, man. There’s so many people there. I try to go to Arundel Mills when I can, but yeah, maybe saving a little bit money, a little bit of money, especially with the state of inflation and cost of living right now. Costco seems to be a pretty good choice. One of my favorite weekend activities
Speaker 2 43:39
for anybody tuning in right now, and and maybe you’re realizing that you don’t actually know when you should claim Social Security, and you know Prashant and I just talked about it. The answer is different for every individual, and if you don’t know which accountable from first, you’re all those questions. You’re far from alone. That’s exactly the kind of coordinated plan that Prashant and the team at Elite Income Advisors will build with you. 833-856-1387 is the number. Get on his calendar. In order to do that, have your calendar ready when you give him a call, so you can get right in on his calendar. 833-856-1387 You can always go online to Elite Income advisors.com It’s a no cost, no obligation visit. Sit down, have a conversation with Prashant and the team. And you know, Prashant, when you know Social Security, one thing I want to ask you about this is how does the math change for somebody who’s claiming individually as opposed to spouses? Because both spouses are are are going to be collecting checks. So is there is there maybe some I don’t want to say gamesmanship but some strategy with maybe you claim one first or something like that?
Speaker 3 44:48
I think there has to be. We talked about in segment one understanding where your income is coming from, and we have to understand how survivor benefits work with Social Security. When one spouse passes away, typically you’re. Going to lose the lower of the two social security benefits if both are already collecting, and so what a common strategy that we’ve seen is is that the higher social security benefit you try to delay as long as you possibly can, and you collect the lower one as soon as possible because if you think about it, that one ends up being use or lose if one spouse passes away. Now, keep in mind, folks, this is not generalized advice. I’m not saying that everyone in that situation should employ that strategy. But what I am saying is that every married couple who has a Social Security record should do some analysis to figure out what the right combination of filing ages is for you and your spouse because it is not enough. I believe it is not enough to look at Social Security independently, even though it is just your benefit. You must coordinate it with your spouse to make sure that you’re getting to an efficient outcome. Not doing so could be costing you 10s of 1000s of dollars over the course of your lifetime by planning it incorrectly. There’s actually this really cool tool that we use in our office. It’s called a Social Security Timing Report. And when you come in for that first visit with us, if you bring your Social Security statement with you, we can actually run you a Social Security timing report in that very first meeting. It’s totally free of cost. We’ll print it out. We’ll send it home with you, and it’ll allow you to understand what all the different combinations could yield you in terms of your Social Security benefit. It’s a really interesting exercise to go through. It’s a great way to create a consolidated report to understand where your opportunities are with regards to Social Security. And I believe when you have that report in your hands, it should give you all the confidence you need to make sure that you’re making the right decision when it comes to this huge income decision in retirement, which is ultimately Social Security. So if you never examined that, come in and visit again. That phone number it’s 833-856-1387 Schedule that appointment. Bring the Social Security statement in, and let’s run that timing report for you in that very first visit. Prashant
Speaker 2 47:04
mentioned the number 833-856-1387 You can always go online and set up a no cost, no obligation [email protected] as well. Prashant, you mentioned it’s so important to coordinate with your spouse about your claiming decisions. It’s also for just about everybody important to coordinate which account they’re pulling from when. I mean, I’m sure people think that hey, I’ll just pull from the the biggest balance account and we’ll work from there. Why is that often the wrong approach? And why do why do people need to have a coordinated approach in terms of pulling from their different accounts the right amount at the right time?
Speaker 3 47:38
Well, look, remember that old saying on Wall Street, when it came to investing, it was what it was: buy low and do what?
Speaker 2 47:45
Sell high.
Speaker 3 47:46
Sell high. That right. And so here’s the issue: that works if the market always goes up when you need it to. But if there’s anything we know about the market is that it’s unpredictable. It may go up. It may go down. It may stay the same. We don’t know what’s going to happen on a day-to-day basis, and so what I found is that if we can mitigate having to sell at a low point or at a at a temporary decline in the market, that is what allows us to be more successful with regards to investments. So here’s the thing: in order to ensure that you never sell at a low point? You inherently need time on your side, right? Because if you have time on your side, you can pick and say, “Hey, the market hit a new high. Maybe now’s the time to take some risk off the table. The problem is, you need time to be successful investing money. And when you get to retirement, what is the one thing that you just don’t have quite as much of? Well, it’s time, isn’t it? Yeah.
Speaker 2 48:40
Oh, time. Yeah.
Speaker 3 48:41
Time. And so, with that being said, I think I look at this, and this is why most of our clients do buckets of money. They have a risk bucket of money where, if the market is at a high point, we can liquidate and take some risk off the table, take some gains off the table. But inevitably, the market will go down, and the last thing you’re going to want to do is sell low. So you keep a separate bucket of money on the side. We call it a safe market-protected bucket. Sometimes we call it a green bucket of money, and that green bucket of money is there to provide you with income when the red bucket, when the risk bucket, is going through a temporary downturn, and so instead of having all your money working for you in the market, which could be great but could also be catastrophic, most of our clients like to have a piece of their money in a safe, market-protected place, and then have the majority of their money in the market. That way, markets up, pull from your risk money. Markets down, pull from your safe money. And so the bucketing strategy is really kind of like packing your bags for a big trip. You know, like I just got back from Europe, so maybe this is why this is on my mind. But you need short-term money for your cash flow. That’s a personal item they let you put under the seat. You have your carry-on bag. It’s a mid-term. Bag for growth, and then you have your long-term bag, which is your check luggage, right? And so you have to have all these three things working together. Have money that’s subject to risk. Have money that’s safe. But most importantly, know which bucket to draw on depending on what’s going on in the market. So many people don’t have that plan in place. If you’re not sure how to bucket your money, if you’re not sure how much risk you’re taking if you don’t know what your tax liability could look like based on the bucket you pull from. Last opportunity for today’s show, folks. It’s 833-856-1387 833-856-1387 Book that no cost, no obligation visit with me and my team here at Elite Income Advisors today. Offices conveniently located, Ellicott City, Maryland, and Annapolis, Maryland, as well.
Speaker 2 50:45
On behalf of Prashant Sabapathi, I’m Mike Bauer. That number again is 833-856-1387 and you can always go online eliteincomeadvisors.com Set up a no cost, no obligation visit if you want to do it online. eliteincomeadvisors.com and if you were listening earlier in the show, thank you. You might have heard him toss out the website retiremaryland.com. If you want a free copy of Prashant’s book, Fiscal Health Retirement Wealth, just go to retiremaryland.com to request yours. He’ll put it in the mail here soon. I’m Mike Bauer. Thanks so much for joining us on Retire Smart Maryland. We’ll see you next week. annuity
Speaker 4 51:28
guarantees are subject to the claims-paying ability 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 selling 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 in 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 the solicitation of an offer to buy or sell the investments mentioned. Provisors 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 advisors achieve 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 Ozur Culhagill, Prashant Sabapathi, and Jonathan DeFeo receive commissions for the sale of insurance products as insurance agents for Retirement Planning Services Incorporated. Insurance annuity 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 a paid production of Elite Income Advisors.
