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 0:39
Welcome to another edition of Retire Smart Maryland. I’m your host Mike Bowers, sitting down as always with Prashant Sabapathi of Elite Income Advisors. Now Prashant and his team they help families all across Central Maryland, from the main office in Ellicott City to the satellite location in Annapolis to online wherever wherever you may be navigating the complexities of the retirement landscape. Prashant, it’s great to have you today, as always,
Speaker 3 1:03
Mike. Good to be back. Nice to hop on with you. I think we got a very interesting show today. I know you and I were talking about what we’re gonna structure the show to look like in the prep right before we logged on here, and so I’m excited for this one. A lot of interesting content that I think a lot of people are not necessarily thinking about as they prep for the next phase of life, and so I’m excited for this one.
Speaker 2 1:28
Well, one thing we know for sure is the internet gives a lot of people things to think about. A great resource is EliteIncomeAdvisors.com. That’s where people can go and they can schedule that first visit with you. And there’s there’s a lot of other great resources there as well. You guys actually have a couple tabs for resources, and there’s even a tax calculator. There’s a there’s a bereavement guide as well. So there is some great information there. But man, the rest of the internet not so reliable. Some online content creators that I’m I’m sure you’re like me. You know, one of the first things you do in the morning, you open up your phone, and then you roll your eyes at social media, and then you feel bad. I shouldn’t have this thing in my hand. I should be getting breakfast ready or getting ready for the day. But nonetheless, man, there are some really polished, charismatic creators, some financial influencers out there. I got to ask you this, Prashant. Do you often encounter people saying, “Hey, I heard this bit of advice, or “What should I do with this? or “Uh-oh, I made a mistake because some random person online that popped into my algorithm said to do something.
Speaker 3 2:31
You know, one thing I ran into a couple years back, I had somebody who was not a client come into the office, and they actually told me they were watching. It was either like a short on YouTube, or maybe it was one of these TikTok videos, or whatever it is. And they said that they heard someone talking about Roth conversions, and this was very early in the year. It was it must have been like right after tax filing. I think it was around April timeframe. They told me that they had some money in an IRA. They went ahead and converted it to a Roth based on some video that they saw online, and so then they came in and asked me whether I thought it was a good decision that they did it, and I thought that was really interesting because they knew that it was going to show up as income in that year, when they did the conversion, so we’re fine there. But what they didn’t consider is they didn’t consider the impact that it would have on their Medicare premiums two years down the road. They didn’t consider that as a high income earner doing that Roth conversion might subject them to additional net investment income tax in the future, and so like, yeah, on the surface, doing a Roth conversion could seem like a really good idea. And in fact, a lot of our clients do do things like Roth conversions. However, there are so many downstream effects of making decisions like this that oftentimes don’t get considered, and that you simply cannot capture in a 30-second or 60-second real or short-form video, and so while it is great to have access to the information, I think that you have to be able to sit down and truly evaluate pros and cons of all of the different financial decisions that you’ve made over time, and understand how that’s going to impact your financial plan, and I think in this day and age, people are just not doing that with the way that information is passed along.
Speaker 2 4:27
It’s almost like nuance is important, right? You know, somebody can go out there with a megaphone and a whole bunch of confidence, but the actual you know conversations that you have with people, there’s nuance. There’s different elements to every single individual you meet with situation. Well,
Speaker 3 4:43
I think that’s exactly right, and I kind of think of it. You know, I’ve shared my story about how I come from a family of medical professionals, and so I kind of think about everything in that lens. And and I was kind of thinking about this when we were talking about our show today and our prep and. To me, relying on these social media videos for your retirement planning is almost like trying to diagnose a medical condition solely using TikTok and WebMD. Right, like it’s not enough to give you a comprehensive view on your health situation. And so, oddly enough, I look at every financial decision that you’ve made over the course of your lifetime is effectively like a financial prescription that you’ve taken, and one thing we know about prescription medication is what it’s got side effects, and if you’re taking multiple prescriptions, they interact with each other and they have different effects, and so every financial decision that you’ve made in the past is a financial prescription that has both side effects and interactions with every other prescription that you’ve taken, and so often people are not evaluating the side effects and the interactions associated with their decisions. It’s time to look at your financial plan in a coordinated, comprehensive way, no different than how a doctor would look at your health situation and give you medical advice, right? And I think for whatever reason, people do not treat their finances like that, and it’s exactly the type of thing that could cause catastrophic long-term financial damage.
Speaker 2 6:21
I mean, you go in and you go see a doctor and you get a diagnosis based on your situation and your you know blood pressure, your all of your vitals. You get that’s that’s the that’s what you walk away from the doctor and that’s essentially kind of what you’re saying, Prashant. When somebody comes in and meets with you guys at Elite Income Advisors, they’re not going to get a one size fits all generic piece of online advice from, you know, you you mentioned WebMD. Now I’m thinking like, if I get a bruise, all of a sudden I go online and I’ve got typhoid. If you end up going down the internet rabbit hole, it’s not good. You know, how did you end up with cholera? You know, it’s like wow. But yeah, look, the the internet there’s there’s some good on there, but there’s also some. There’s a lot of people out there just to grab some clicks. It’s a lot different when you go in and you have a conversation with the team at Elite Income Advisors. Somebody like Prashant at 833-856-1387 That’s 833-856-1387 or Elite Income advisors.com It’s a no-cost, no-obligation consultation to build a written retirement plan. And Prashant, for somebody who’s just tuning in, who’s listening, saying, “Well, well, you know, these guys are saying to not trust those guys. Why should I trust these guys? But what sets you apart from some of those screaming faces that pop up on our for you pages?
Speaker 3 7:38
Well, look, I think social media rewards engagement. It rewards clicks and bold, extreme predictions. It doesn’t necessarily always reward accuracy and nuance, because to me, real financial planning is filled with phrases like “it depends” and “let’s look at the numbers, which aren’t exactly very exciting on a social media screen, right? So, no social media creator knows your exact tax situation, your family goals, your healthcare concerns, or how much risk you can actually afford to take to accomplish what you want to accomplish. So, listen, folks, if you’ve heard an interesting financial idea online, or if you’re feeling anxious because the internet headlines are telling you that the sky is falling, you don’t need to guess your way through it. You need a human process to follow, not just internet hype. So call my team right now. The phone number 833-856-1387 and bring in all the ideas that you’ve heard online. Let’s sit down. Let’s talk about it together. When you dial that phone number, you’ll be able to schedule a no-cost, no-obligation visit with our team of retirement specialists and fiduciaries. When you come in to visit, you’re not agreeing to become a client. It’s just a conversation to talk about the things that are most important to you. Things like you don’t have a real written plan in place. You’re not sure how your tax situation is going to play out in retirement, or maybe you don’t know if you can afford to weather another bear market or low interest rate environment. If any of that or more is a concern, dial the phone number 833-856-1387 offices in Ellicott City and Annapolis, Maryland.
Speaker 4 9:20
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 eliteincomeadvisors.com
Speaker 1 10:00
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 2 11:00
Thank you so much for listening to Retire Smart Maryland. I’m Mike Bauer, joined by Prashant Sabapathi of Elite Income Advisors. You can reach them today anytime at 833-856-1387 or Elite Income advisors.com They’re helping families out for years across Central Maryland. And Prashant, today I want to unpack some financial blind spots that can quietly cost people 1000s, if not more, if left unchecked. And one of the reasons why I want to get here is to get a little bit granular in some of the smaller things, because a lot of times we talk about the big pictures with divorce, someone passing away, maybe it’s you know it’s it’s a big life decision, retirement, but also you know a market downturn. We’re talking about these big big picture items. Let’s get a little bit more granular and maybe a little more uncomfortable with some things that people have had on their to do list for a while and haven’t. What are some of the things that you encounter people procrastinate all the time when it comes to finances.
Speaker 3 12:04
Yeah, so I think there’s several things here. The one thing that kind of stood out to me is not being able to understand how their 401k investments are actually positioned relative to their current objectives, so think about this: How many times have you started at a new job, you picked up a 401k and you said you were going to contribute five or 10 or 15% The employer is going to match, and so all is all is well there. You pick an allocation, and for years you contribute to that allocation without ever looking at it. Well, when you get closer to retirement, the allocation that you might have picked five years ago, 10 years ago, 20 years ago may not actually be appropriate for you, given your current time horizon, proximity to retirement, and overall capacity for taking risk, and so this is something that I think goes unchecked quite a bit. And you know, we talk about procrastination. I’m not sure that this necessarily falls into procrastination. I think that people just don’t know what to look for. They set it, they truly forget it, and they never evaluate it. And so, so often we have people coming to the office. We do an evaluation of their four 1k plan, and we find that hypothetically, let’s say you know I have a 60 year old client, and we do a risk analysis, and on a 10 point scale, with 10 being extremely risky and one being totally safe, their portfolio comes in at like an eight and a half out of 10, and I asked them how they feel about it. And like I’ve heard people say, I I’m a pretty low risk type of person. I thought I’d be at like a three or four out of 10, and they just didn’t know. So that’s number one to me, Mike. Is you know with the with the number of times people change jobs in this country, that’s becoming more popular. You probably have old 401k plans that you might have just left there when you separated. Make sure that we are not forgetting about the allocations. Let’s make sure that you have a comprehensive and coordinated investment strategy that is getting you tangibly closer to your financial objectives.
Speaker 2 14:18
All right, this may be a dumb question, but how often do you talk to somebody who doesn’t even know that they have options or control over the 401k Who just thinks, “Hey, I checked that box in the HR form during onboarding, and it is what
Speaker 3 14:34
it is. Yeah, I see a lot of people like that, and I also see people that believe that, “Hey, my plan went from custodian A to custodian B. That that custodian is now managing your money. You got to understand most of these 401k’s You’re not getting active management within the 401k You’re just getting a custodian that is responsible for holding the money, reporting on the money. And then they deal with the plan administrator, which is your employer, right? To administer that 401k So don’t mistake that just because a big company is holding the money that your 401k has, it does not necessarily mean that it is being managed based on your objectives. And so that’s a really important thing to make sure that you’re staying on top of, and it it’s especially important to do that for old 401k’s right? Because on the old 401k’s you’re not even adding money to that, and so if the market goes down, you might just lose. You don’t actually get the opportunity to buy into the market at a lower price like you would in your current plan. So especially for old 401k’s what a lot of our clients do, Mike, is they will take the old 401k money, will evaluate their goals, their objectives, their proximity to retirement, their risk capacity, and then what what we’ll often do is roll that money over into a Roth IRA or an IRA, and then position the investments within the IRA or the Roth to be consistent with the client’s objectives. It’s all about planning in a unique way, and so there’s never going to be a cookie cutter solution that’s going to be the best thing for every single individual.
Speaker 2 16:17
I mean, I love what you just said there. Position the the investments to the client’s objectives because you’re not gonna get in the car, put it on cruise control, and then strap on a blindfold, and that sounds like what a lot of people do with their retirement plans. Putting it on autopilot is not is not a good plan. It’s a massive risk, no doubt about it. You don’t have to tackle it alone. Call Prashant and the team at Elite Income Advisors right now 833-856-1387 and you could set up a comprehensive no cost no obligation retirement review and kind of dig into what you might already have in the works. You can also go online to Elite Income advisors.com to claim your session. All right, talk about procrastination here in this segment, Prashant. Is there are there some things that maybe people just maybe it’s not procrastinating, but don’t have the time to to look into on a yearly basis things that auto renew. All right, hey, look, this is my auto insurance or my homeowners or my health insurance. I’m just gonna. It’s easier to just do the thing I did before. It seems to be working.
Speaker 3 17:20
Yeah, I think this is very prevalent when it comes to insurance. So, home and auto, how often do you get people that have been with the same insurance company for the last 20 years, and they like that because they have a comfort level with it? But that being said, could you be saving more money by shopping around your home and auto insurance quotes on a year-to-year basis, right? Like I think, just since I bought my first house, I think in like a 10-year span, I have switched insurance companies something like three or four times, and I did it because my property and casualty agent, I asked him to rerun my numbers every single year to find gaps in my coverage, to find better deals, to see if I can save money by switching insurance companies. So I think that’s a huge gap, and that’s something that people do not think about is to shop around their home and auto. The other thing that catches people off guard could be outgrowing your life insurance policies or those types of things, because if you think about it, insurance is supposed to reflect your actual life. The thing is, your actual life keeps changing every year, doesn’t it? So, you know, if you bought a life insurance policy 10 years ago, 20 years ago, is it actually serving the needs that you have today? You know, I was like going through my closet the other day, and anyone like my clients will know this about me. But I’ve been working a little humble brag here, by the way. I’ve been working really hard to like take care of my to take care of my health and everything. So I’ve lost like 30 or 40 pounds in the last year and a half, which is great. But I still have like all my clothes sitting in my closet that used to fit when I was 40 pounds heavier, right? And the analogy to me is like keeping the same insurance policies for decades and decades is like trying to fit into the old clothes that you had 20 or 25 years ago, and everything is different now, and so it might have fit perfectly back then. But as you grow, as your your your health changes, your life changes, the clothes that you wear have to change as well, right? To fit properly, and that’s how I look at some of these insurance plans. You might have bought the insurance 20 years ago to protect your family from a death in case you wanted to replace income or send the kids to college or pay off a mortgage, but how different is your life now? And how much are you paying for things that you potentially do not need? I think it’s a fair question.
Speaker 2 19:56
All right, so Prashant, what’s the secret? I mean, you’re you’re down you’re down a whole bunch of. Bees. I mean, I got to know. I just want to know what’s the what’s the secret here. I mean, just are you eating better and working out? Is that it’s
Speaker 1 20:06
it’s it’s really so boring,
Speaker 2 20:08
but
Speaker 3 20:08
it’s actually not even you know anyone knows me. I don’t work out that much. I play golf
Speaker 3 20:13
like twice a week on the weekends, and I do walk, which is nice. But it’s all about what you eat to me, and you know, because I’m in a medical family here, I mean, I got my brother’s emergency doctor, my wife’s in orthopedics, my dad’s internal medicine. It’s all about what you eat, man. That’s what I think it comes down to at the end of the day.
Speaker 2 20:34
I just, I’m, I’m guessing somebody out there is like, man, I could use some help because I know I can. I’m sitting there like, okay, take some. I don’t like the answer though. I’m not a big fan of the answer because now it’s you know now I’m not eating pizza at 10 o’clock at night. If I’m going to take your advice, yeah, in this day and age, Mike,
Speaker 3 20:48
there’s there’s a there’s an easier way. It seems like I mean I’m not too familiar with it, but with all the with all the weight loss drugs and stuff out there, there’s definitely a way to do it easier. Yeah,
Speaker 2 21:00
yeah, I I hear you. You know, so Prashant, I want to ask you about something talking about health here. Let’s talk about longevity and something that I’m sure is for many people could physically be a folder that is collecting dust, and that’s an estate plan. You talked about insurance and stuff like that, but also I’m sure that there’s a lot of people that you sit down with, and and they’re just like, hey, you know what? I I’m I’m young, I’m healthy right now. I don’t have to deal with estate planning, or I’ll figure that out later, man.
Speaker 3 21:29
Yeah, you know, this reminds me of one of our close close close family friends. This was years ago. He at the time he must have been, I don’t know, he was probably 2728 years old. Healthy guy, really healthy guy. Went to go out, car accident, and immediately he was he was he was unfortunately was killed. And he was a dear friend of mine. Had another friend was 38 or 39 years old. Ended up going on and going on vacation in in Mexico and got caught in a rip tide, drowned. Right? Oh my
Speaker 2 22:07
goodness! And
Speaker 3 22:08
so terrible, terrible things. And you just never know when it will all change on you. And I think when we’re younger and we’re healthier, nobody wants to think about morbidity or mortality. But the problem is, if you have an outdated estate plan, it’s not just that your plan is incomplete. It’s that having an outdated estate plan can actually actively work against you. And I think if you have loved ones, if you’re married, if you have kids, if you have anybody that you are leaving assets to, you owe it to yourself and you owe it to them to make sure that your estate plan is buttoned up, so that nobody has to deal with unnecessary probate costs potentially tying up assets for months and months. You got to get this stuff under control, and sometimes it’s as easy as just spending an hour or an hour and a half making sure that your beneficiaries are up to date, that your will is up to date. If you need a trust consulting with an attorney to potentially do that, and look, if you don’t know who to contact, just give us a call. Whether we work together or not, I have attorneys that I might be able to refer you to. But look, at the end of the day, this all comes back to having a comprehensive and coordinated plan because every piece of your plan touches another piece of your plan, which is why we open up the phone lines to schedule those free, no cost appointments, Mike. It’s 83385613878338561387 We have offices headquartered in Ellicott City. We have auxiliary offices in Annapolis as well. You can come into either office, schedule that time, visit with our team of specialists. Let’s just talk about your situation and figure out, most importantly, whether or not me and my team are even the right fit to help you navigate your retirement.
Speaker 1 24:13
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 4 25:31
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 Advisors 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 eliteincomeadvisors.com
Speaker 1 26:18
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 27:36
Thank you so much for listening to Retire Smart Maryland. I’m joined by Prashant Sabapathi of Elite Income Advisors, headquartered in Ellicott City, with an office in Annapolis as well. You can find out about the entire team at Elite Income Advisors at eliteincomeadvisors.com. Prashant, you know, for decades the standard corporate retirement playbook simple, right? Simple air quotes simple, but defer a portion of your paycheck. It goes into a 401k. You know, there’s a mix of stocks and bonds, and then time will do the heavy lifting. But there’s some shakeup going on with that formula. What’s what’s going on right now in terms of 401ks and the choices within that wrapper that we’re all so familiar with the 401k? But but what actually is behind that that curtain, if you will, right now, and some of the changes in the 401k
Speaker 3 28:25
So I think there’s been a push, I think nationally, to give participants in these 401k plans a lot more access to different types of investments. So, if you look at the world of alternative investments, and this may go over some of our some of our audiences head here. So, this is kind of like where I really dive into some complex stuff here. But like you hear on the news about these things that are involved with like private credit and private equity and non-traditional assets, these are types of things that are traditionally not offered in 401k’s However, these are the types of strategies that the wealthy and the ultra wealthy are really utilizing, and I think there’s been a push nationally to make this more available and accessible to more people, and so these are what are called alternative investments, and this would make it easier for retirement plans to offer certain alternative investments alongside your traditional mutual fund options. I think it’s, I think it’s interesting, though, Mike, because more options of this type I don’t believe is always a better thing for the population at mass. And it’s not that they’re not potentially good investments; it’s that in order to invest in things like this, I believe that you should have a really good. Understanding not just of what the potential is for reward, but you have to understand the risks as well. And I think when it comes to alternative investments like private equity, private credit, those types of things, I think you deserve to have somebody explain that to you before you go invest in it, and so to put it inside of a 401k where it’s just an available option, just like the other mutual funds, I think is actually a pretty dangerous thing. I think you’ll probably get people that invest in things that are actually not consistent with whatever their risk level is, and I think that that could be detrimental for a lot of folks’ retirement plans.
Speaker 2 30:41
I mean, I’m I’m thinking right now in terms of you know the 401k, and you know you you may have some control over it depending on where yours is, right? You go onto your website and there’s different boxes you can check, and sometimes it’s like a risk port you know profile oh highly conservative or or very you know very I want to take a lot of risk. Do you think that there’s going to be a lot of people that maybe see something and it sounds good because that’s something I think a lot of times like the rapper sounds good. The oh, this is a growth or this is and there’s there’s a lot more behind that. It’s important to know. Sorry for the for the cliche here, but it’s important to know how the sausage is made.
Speaker 3 31:16
Yeah, I think that’s exactly right, and especially when you hear things like private investments, I think that’s attractive to people, right? Isn’t it? Like we all want things that are not readily available to every single person. It makes it exclusive, and that’s exactly what private investments are. Because you got to remember, private investments don’t trade on public exchanges every single day, which means they have different drivers of performance, and that could be attractive, but it also could be incredibly dangerous. Here’s what I’ve learned. Okay, in all of the clients that me and my team have counseled over the years, one thing I have learned is that complexity does not automatically equal better results. Okay, it could, it absolutely could, but it also could involve more risk than you’re comfortable taking. It also could involve higher fees than you’re comfortable paying. Ouch! And so, if you are going to take advantage of these types of things, if all this stuff comes to fruition, I think you have to understand how those investments specifically integrate into your overall investment portfolio and what they’re there to actually accomplish. Believe it or not, when we structure portfolios or our money managers structure portfolios, not every investment in the portfolio is designed for the highest level of growth, some investments of the portfolio are there to create balance against the rest of the investments in the portfolio. So, when you invest in certain things, whether it’s private or public, I think you have to understand the role that that investment plays relative to your portfolio as a whole. And I think that that type of education and that level of depth will simply not be there when these types of things become available in a more public setting. Because I think you’re going to get a lot of people that just simply don’t understand it, and quite frankly, don’t have the time to do enough research to understand it properly to make a really good decision. Which is why I think you need someone guiding you who has experience in dealing with these types of things on an ongoing basis.
Speaker 2 33:26
I mean, what I’m thinking right now, Prashant, is that people are busy doing their jobs. They don’t also have to do your job as well. That’s your you’re there to help. The team at Elite Income Advisors can help you figure that out. If you have some some shiny new financial products that Wall Street’s tossing into your 401ks or something like that. High returns. There might be sky high fees, or you know, or you might be locked up and there’s no liquidity. You know, if you’re thinking about just chasing the latest trend without actually analyzing, well, the team at Elite Income Advisors they’ve already done the analysis and they can help you build a profile that is tailored to you, so you’re not gambling with your retirement timeline. Give Prashant and the team at Elite Income Advisors a call: 833-856-1387 That’s 833-856-1387 You can always go online to eliteincomeadvisors.com, schedule a no-cost, no-obligation portfolio risk analysis to find out what you own, how much risk you’re carrying. So, Prashant, I mean, this may work for some people, so we’re not saying avoid it altogether. But really, it’s worth having a conversation. So, if something shiny catches your eye, give give give you guys a call and kind of you know work and find out does this fit for me?
Speaker 3 34:45
Well, yeah, I just want to clarify here. It does not mean that just because you might not want to consider using it in the beginning that you’re not capable of understanding it. It’s that I believe that there. Will not be enough information to properly fully understand it. It’s no reflection on the intelligence level of the people that we are visiting with, right? In fact, most of our clients are really, really successful people. They’re engineers. They are scientists. We have a lot of attorneys that we work with. Doctors, certainly, like my whole family, like I said, everyone’s a doctor, and by the way, a lot of them are clients of mine, which is pretty cool too. So, you know, I kind of look at it as, you know, if I had a legal issue to deal with, I wouldn’t go and represent myself just because I watch Law and Order, right? It’s like just because I can go online and diagnose or try to self-diagnose a medical problem doesn’t mean I’m going to cut my doctor out of the process, right? And so, just because you have access to be able to read the prospectus on a fund or whatever doesn’t mean that you shouldn’t also get a second opinion from a professional who does this every single day. So, I think it’s an interesting thing to look at. In one way, I hope that it does become available to the masses. In another way, I think it could be dangerous if it’s not treated properly. So just make sure you’re doing your diligence. Maybe that’s consulting with a couple of advisors to get differing opinions on it, but if you need a second opinion, definitely encourage you to give us a call. It’s 833-856-1387
Speaker 2 36:31
So, Prashant, for somebody that calls that number right now and sets up a first visit, versus somebody who’s in your family that you’re working with, just for you, like, do you have more pressure one way or the other?
Speaker 3 36:43
No, I actually it’s an interesting question, but I honestly don’t think I have more pressure one way or another. Because look, at the end of the day, if we’re going to work together, we’re going to create a plan that we think is going to suit all your needs, and that’s whether your family or friend or just anyone listening to the show today, and so I treat every single plan with the same level of care and respect that it deserves. Because look, at the end of the day, it’s not lost on me that people that come in to visit with us, we’re talking about potentially one of the three most important things in their life. We’re talking about wealth, and for a lot of folks that I visit with, it’s only behind health and family that wealth is is kind of behind on the important scale. So, with that being said, when we’re dealing with people’s life savings, I don’t care if it’s a quarter of a million dollars, a million dollars, or $15 million or more, we’re going to treat it with the care that it deserves because that is your life’s work, that is your legacy. We want to make sure that you grow it, that you protect it, and that you pass it on in the most tax-efficient way possible. So when you dial that phone number 833-856-1387 schedule that appointment. Let’s just sit down and talk about it. Let’s figure out whether or not we’re even the right fit. Because I would not want anybody in our audience to work with an advisor that they did not feel was 100% the correct match for them. When you come in, we’ll talk about your situation, and together we will figure out whether or not we should work together. And if so, hopefully we’re able to solve some of the problems that you’re concerned about relating to income, to tax, to investment, to risk management, and to estate planning. So give us a call 833-856-1387
Speaker 1 38:36
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 39:36
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 one. 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 eliteincomeadvisors.com
Speaker 2 40:30
Welcome back to Retire Smart Maryland. I’m Mike Bauer, joined by Prashant Sabapathi of Elite Income Advisors, with the headquarters in Ellicott City and also the office in Annapolis, helping people in Central Maryland for many many years. The entire team at Elite Income Advisors would love to set up an appointment with you. Have your calendar ready. Call 833-856-1387 and let’s let’s talk about some married folks. I’m sure that you have you have many clients that are that are single, but many that are married as well, and a lot of married couples, I’m sure, spend years collaborating on every aspect of life, but also financially on their investments, talking about social security timing. Hopefully, you’re part of that conversation, helping people along. But sometimes there’s a silent, severe risk that rarely gets discussed at the kitchen table because it’s not an easy one to bring up until it’s tragically too late, and that’s about. It’s called the widow’s tax, kind of casually. Prashant, is this something that comes up in conversations for you? And before we get there, what is the widow’s tax?
Speaker 3 41:31
So the widow’s tax often occurs when a surviving spouse, so one spouse passes away, surviving spouse experiences a major change in their income and potentially in their tax filing status after the first death. So, of course, a couple may go from filing jointly to filing as a single taxpayer, and that could have could have a negative impact. You might lose some income, like in our area. Like more than probably 50% of our clients are federal employees or state of Maryland employees. And one of the best things about those employment situations is they get a pension. But unfortunately, with federal pensions, typically, typically when one spouse passes away, that pension gets cut in half, or it might go down even more than one half. And so, many households see sources of income decrease or disappear. Of course, we know Social Security. Typically, what happens is when one spouse passes away, you lose the lower of the two incomes. And so, with that being said, not only do you potentially lose a bunch of income, but that income might actually be taxed at a higher marginal rate when you switch from married filing jointly to filing as an individual. But here’s the thing, Mike: how much do your expenses actually adjust when one spouse passes away, like I’ll never forget this. This was years ago. I was sitting down with some with a couple, and we were doing this exercise. And we do this pretty much for everybody, where we illustrate what happens when one spouse passes away with a click of a button. We try to map out how much income is lost, and this couple was going to lose something like let’s say $8,000 a month between lost pension, lost social security when one spouse passed away, and I asked them. I said, “How do you feel about losing $8,000 per month of income? You know what they said to me? The spouse looked at me and she said, “Well, I think all my expenses will just get cut in half, so I think we’ll be able to deal with
Speaker 2 43:41
it. No, no, that’s that’s not the right answer.
Speaker 3 43:43
Not the right answer, right? Now, of course, some stuff does reduce, like maybe you’re not shopping as much at the grocery store. But last time I checked, I don’t think your property taxes change if one spouse passes away. I don’t think your mortgage payment changes if one spouse passes away. So, with all these things being said, income may change, tax bracket could change as a result of what we call the widow’s tax, and oftentimes what I found, Mike, is that the impact isn’t evaluated until after the loss occurs. And if you’ve known anything, if you’ve experienced this with a loved one that’s passed away, you know that a lot of times when somebody passes away in the immediacy of that, you don’t really have time to think really clearly. You’re kind of scrambling. Your life has just changed. You’re going through an emotional period where you might be dealing with grief. The last thing you want to do is make huge financial decisions right on the back, so that you got to plan for this stuff ahead of time, unfortunately, it’s a weird thing to talk about. It’s a sad thing to talk about, and so I don’t think many people want to do that type of planning.
Speaker 2 44:49
I mean, comfort is nice, but I mean, this is the truth. This is reality, and the reality is that the emotional toll of losing a spouse is is devastating enough. But then, on top of it, now you’ve got paperwork to. You’ve got to figure out a massive potential tax hike. You know, obviously your income stream is slashed, and as you mentioned, Prashant, that mortgage isn’t changing. You know, maybe if you’ve got you know if you got multiple cars, maybe you sell one of the vehicles, a car payment goes away, but a lot of those expenses aren’t going to disappear. But that income might, leaving your assets heavily concentrated in accounts can actually amplify the impact of the widow’s tax, and you can proactively minimize your future exposure today. And Prashant, you mentioned the the you know the emotional element of it. While we’re having this difficult conversation right now, you guys have a great resource online at EliteIncomeAdvisors.com.
Speaker 3 45:41
Yeah, it’s effectively a checklist. You know, we try to make life as easy as possible for our clients and really for our community when people have to deal with these really difficult types of things. So that guide is great because it’ll give you an opportunity to have a set of different action items that you should be looking at if and when somebody passes away, something that came to mind. So you definitely check that out on the website. It’s eliteincomeadvisors.com Check out the resource center, great resource. But one thing that comes to mind for me, Mike, in my experience, is that most of the people coming in to visit with us are really good at saving money. I would definitely classify most of our clients as savers, not spenders, and so one of the things that we talk about with folks is this idea of understanding whether your portfolio or your situation is-I call it top heavy-and what I mean by top heavy is that you might have saved a lot of money for retirement: 2 million, 3 million, 4 million. I met with the client this morning; we just onboarded them seven and a half million dollar client. Right, that’s what they’ve saved. However, they’re incredibly top heavy, which means of the seven and a half million, a lot of that money is sitting in pre tax retirement accounts, things like 401k’s IRAs, thrift savings plan, and of course, they felt that okay, when one spouse passes away, we have seven and a half million dollars. We should be fine. And what they don’t realize is that a large 401k or large IRA might actually make your tax problem worse, especially if one spouse passed away. And why is that? It’s that large balances create what I call future tax exposure. Remember, all the money in your 401k and IRA, it has never ever been taxed, and so when you go to withdraw that money, you’re going to pay federal, you’re going to pay state if you’re living on a in a state that taxes retirement withdrawals, and that could cause you to pay unnecessary taxes. It’s a huge deal. I don’t think people evaluate that nearly enough, and we’ve seen it with some of our clients. You know, like let’s say you were that client that lost approximately $8,000 per month in income when your spouse passes away. Well, how are you going to make up the difference on that 8000 So if you’re replacing that 8000 with your portfolio, even if you have 6 million or $7 million saved, 8000 per month is what you need after taxes. Which means you might have to take 12,000 per month just to get to the 8000 after taxes. Well, what’s that doing to your income? It’s raising your income, it’s potentially raising your tax record. It’s potentially raising the cost of your Medicare Part B premiums. So there’s a lot of downstream effects that happen here when you save a lot of money in pre-tax retirement accounts. So often, I think advisors do a really poor job of counseling their clients on these types of accounts, and I think clients don’t realize the embedded tax time bomb that is ticking in their portfolio. So, Mike, let me do this. I try to do this at least once a show. I created this website. It’s called retiremaryland.com. Okay, visit retiremaryland.com. There’s a copy of you’ll be able to get a free copy of my book. So I wrote a book during the pandemic. It’s called Fiscal Health Retirement Wealth. It’s your prescription for income generation, tax management, financial peace of mind. If you visit retiremaryland.com fill out a quick survey questionnaire. We will send you a free copy of my book, Fiscal Health, Retirement Wealth. It’s your prescription for income generation, tax management, financial peace of mind. The last chapter in my book is called Rescue Your IRA. And when I talk about rescuing your IRA, I’m talking about rescuing your IRA from the embedded tax burden that you may eventually one day have to face. If you visit retiremaryland.com, great resource. Get a free copy of my book. It’s an easy read. I think you could read it in about an hour if you’re flying somewhere. It’s a great read. I try to make things as simple as possible.
Speaker 2 49:54
I mean, I love you. Know as part of rescue your IRA in your book, you’ve got the who, when. And what of the RMD is you know obviously a big part of that required minimum distributions. Yeah, I love this. How to save your IRA for your family as well, and that’s what we’re talking about here on Retire Smart Maryland. So for any couples listening here, you know maybe you haven’t thought about some of these elements. Obviously, I’m sure you’ve thought about that, you know, you want to make sure that your spouse is is well off when you go, or you know, whenever the unthinkable happens. But I’m sure that that’s something that you have that happen a lot, Prashant. Somebody comes in and goes, “Hey, I want to make sure that she’s good when I’m gone. I want to make sure that he’s good when I’m gone. However, that works out, don’t leave your spouse’s financial security to chance or outdated documents. That book is a great resource. As Prashant mentioned, you can also go online to eliteincomeadvisors.com and set up a no-cost, no-obligation survivor and tax efficiency review with Prashant and the team at Elite Income Advisors 833-856-1380-seven Prashant and the dedicated team at Elite Income Advisors are happy to step in with any questions you have about your retirement. They’ve been helping families all across Central Maryland with evaluating whatever is important to that individual portfolio risk, and they’ll help you construct a written retirement income plan designed to last a lifetime. EliteIncomeAdvisors.com, or you can always call 833-856-1387 to get in and sit down with Prashant and the team. They have an office, the main office, the headquarters in Ellicott City. They’re also available in Annapolis. On behalf of Prashant and everybody at Elite Income Advisors, I’m Mike Bauer. Thank you so much for listening, and we’ll see you next week on Retire Smart Maryland. One
Speaker 4 51:47
of the biggest fears people have about retirements-it’s pretty simple-running out of money because retirement today could last 25 or even 30 years, and people wonder all the time whether their savings will really support them throughout all those years, including the healthcare costs and everything else that life throws at you. The team at Elite Income Advisors they help people create income-focused retirement plans designed to help bring more confidence and clarity to the future. Call the team at Elite Income Advisors today: 833 850-613-8071 more time: 833-856-1387 or visit eliteincomeadvisors.com Annuity 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 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. Profession 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 Ozur Culhagil, 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.
