Saving with Steve, 09/11/2021
Saving with Steve with Steve Sexton
Guests, Steven Sless and Denny Artache
The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.
We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.
everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton a little welcome to the same thing with Steve show where we talked about the ins-and-outs of pretty much everything on the release you having a happier healthy relationship with money my name is Steve Sexton. This is the same thing with Steve show and I want to welcome to the show in fact I want to thank you for joining us<br>find another 45,000 listeners coming from the UK that stream it all over the world so we're very excited about that we've only been with him for a couple of months we have a wonderful show for it now the second half of the show one of the big island Sears is 3.5 trillion-dollar spending plan everybody's trying to figure out how the government's going to pay for taxes the whole shot in fact right now Congress and the Senate and the White House are arguing over what's going to happen or if it's going to be three point five trillion dollars once it passes he's going to affect us all we have Danny or catch financial advisor author Mint or tear to help us understand what's going on I'm going to be talking about how do you diversify to reduce the risk and make sure you still have the income retirement also so you don't have to be in a position to the market goes down but you have to go back to work next this is a biggie many seniors are wondering if they have enough money to last through retirement back that's the biggest word but they're leery about going into retirement communities now more than ever because they're covid some seniors can't even go<br>launch Frontier because of covid-19 are so realize that their home equity line clearance represents a large portion of their net worth in fact if you're over 62 you probably see the value of your home increase understanding how to strategically and tax-efficient incorporate that well into retirement plan your income plan can't keep protecting your long-term their nest egg the ability to live your life and have the income you need so you don't have to disrupt it you know what the cool thing about it is we've got Steve's last year he's known as the go-to person when it comes to housing well sort who was the 2021 reverse mortgage Game Changer by Yahoo and has been educating people through videos media and all of the things that were lucky to have him Steve thank you for joining us today likewise thank you for having me see if you're going to be with you I just want to say this once we let people know that you were coming<br>on the show argue or email just started blowing up before we jump into this I know you were in regular mortgages for a few years and you've been into reverse mortgages for about 15 tell us your little story why did you transition into reverse mortgage world yeah I got it in the mortgage business about 20 years ago now and spent the first few years of of my mortgage career doing what most mortgage professionals do and that's Cash out refinance has purchases at that point there was a big subprime market and we were originating those loans as well and I had to make a big decision 2007/2008 when the housing bubble Came Crashing Down what was I going to do right at that point the company that I work for was not able to originate FHA loans and that left me really unable to perform the business that I've come to know and love and I had to make a very strategic decision at that point and I had start researching reverse mortgages at the time but I was in my young<br>want to use and I had a lot of doubts that I would be able to engage with an older demographic but through my research and through my studying Steve when I found was the reverse mortgage she's such an incredible tool to protect and prolong one's retirement and I jumped in head first fifteen years later I haven't looked back in retrospect it's the best career decision that I've ever made I've dedicated myself to reverse mortgages and helping folks to live a better and more comfortable retirement ever since and very grateful for making that decision a while back to provide the key here is what I really like him looking at your videos as you educate people a lot of people are concerned because they've been doing the same thing for decades and a reverse mortgage is something new I have a lot of questions but I would love for you just to briefly talk about how does a reverse mortgage work more than anything else is the concept of<br>integrating housing wealth into a comprehensive financial plan Steve for 74% of folks that are 62 years old they're already short of their retirement income needs however a new report came out about a couple months ago there is over 9 trillion dollars in untappd equity of folks 62 and older in America / 9 trillion dollars and so that money is dead equity and it's not working for those folks it's not doing it it's just sitting there dormant what we teach Steve is how to incorporate that Equity strategically and tax efficiently with a reverse mortgage loan in use those funds is in most cases the clients largest asset use them proactively instead of reactive Lee and the result is we're able to extend their finances were able to extend the longevity of their investment portfolios were able to allow them to enjoy a better and more comfortable retirement and we're able to make their money last longer because we're<br>leveraging what is their largest asset and that's the equity in their home when it comes to a reverse mortgage everybody's trying to figure out he will it work for me and my good candidate for this you expand on that so people who say hey woke up in my bed does it work what there's two different types of reverse mortgage there's a Peckham a home equity conversion mortgage those are government-insured reverse mortgage loans and I would say probably 95% of every reverse mortgage originator today is a heckin government-insured product there's also now Steve been a lot of innovation on a proprietary reverse mortgage side so private lenders non-government short are now rolling out reverse mortgage products and most of these loans are jumbo reverse mortgages they are for a higher net worth clientele we can land on a jumbo reverse mortgage up to three million dollars in cash for homes valued all the way up to 10 million dollars reverse mortgages work like this you got to be at least sixty plus you got to own your home and you got to have<br>only 50% equity for folks that have pay mortgage one of the biggest benefits is we can replace their traditional mortgage with a reverse mortgage and eliminate the mandatory mortgage payment requirements so by doing that were able to extend their cash flow were able to free up cash flow free up finances and we can also if they have enough equity to qualify we can release funds to them from the equity in the home and that can be done in a variety of ways folks can choose to take a 10-year pay out which is basically your home send you a check every month until the funds are exhausted there's also a term pay out where you just say hey Steve I need x amount of dollars and I need it for x amount of. Of Time 5 years 10 years 15 so on and so forth you can take a lump sum from your home equity or the most effective strategy is you can take out a reverse mortgage line of credit and a reverse mortgage line of credit is very different than a traditional line of credit Steve one there federally insured they can never be sad<br>spend it reduced or frozen irregardless of what the economy does or what the market does that's big these lines of credit also have a guaranteed growth rate attached to that until you're able to borrow more of your home equity every year the line of credit is in place let me ask you this question here so when you talk about cuz this is one of the questions might be or as they know that your line of credit will grow by a certain interest rate each year is it based off the equity that you have that is available to be with Ron and that partially grows providing you have it take money out from that or the line of credit has a growth rate and what's important to point out to is this is a growth rate it's not interest so think of it as a credit card where your limit is being increased each year on the line of credit is 5% over the interest rate on the loan so today's interest rates on reverse mortgages are about two and a half 3% off figure the growth rate is going to be three to three and a half percent<br>on any unused portion of the line of credit as you draw funds out obviously you don't get any gross on the funds that you're pulling but any funds that you leave and let sit in the line of credit we call it a standby line of credit cuz you can just park it put it reserved put it on standby those funds grow over time and you just treated no different than any traditional line of credit and you draw from it if that's wonderful okay so I think one of the big things there is that it can't be taken away it can't be reduced so that means if once the foreclosure and all that stuff comes to beer in the market values go down even though somebody got a reverse mortgage today say their equity line is 200,000 and maybe their house is only worth two hundred thousand take that away it's not like a credit card where they redo they can reduce your your your credit limit exactly Steve 20809 when the housing market crashed you had a lot of folks<br>one of these folks were over 60 they had traditional home equity lines of credit they thought they had access to a hundred $200,000 or more in some cases in the back came back and said you know what no we're not going to let you borrow money anymore and that wrecked a lot of people's retirement plant that cannot happen with reverse mortgages because the line of credit is federally insured it is guaranteed you're also Steve able to borrow on today's market value for in a booming housing economy right now I mean there's bidding wars on homes you know he is in some cases homes don't even make the market and there's a bidding war already and so whose values are so you can take out a reverse mortgage line of credit today and lock in today's value you and I were talking about this before the show came on its in all likelihood values are going to at least level off if not go down so too is the market the economy and so it's a great hedge against future Market Corrections being in the lock that line of credit in and do it at today's value not future values and no<br>that value was guaranteed Steve this is great information we're going to take a quick break. I stick with this we got to pay some bills will be right back with more Stevens less more expert advice for having a half your relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending less your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune into the saving Willis TV show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton truly thank you for tuning in appreciate you letting your friends family and Associates know about the show<br> you asked if you're enjoying the stories of helpful information inside of saving with Steve then I encourage you to subscribe to your YouTube channel Apple playing Spotify Channel Hey help radio DBS Radio talk radio New York City e360 TV Las Vegas TV networks all these networks are dedicated to empower you to live a life of Financial and personal freedom so you can follow us at Facebook at sitting with Steve sex if you like some more financial tips so here we come back with Steve's last we've got a slew of questions here so we're just going to get started there's pros and cons any what's the downside of a reverse mortgage what's the concert you know I think it really starts in the beginning it's all about suitability and so when somebody comes to us Steve and they say hey I'm interested in learning about a reverse mortgage theirs first and educational Journey that we need to take them on we're also trying to figure out ourselves are they suitable first question we asked me was how long do you want to live in the home for if somebody were to stay 3 years 4 years it's probably not a great fit until<br> show me a downside there I think the barrier to entry the cost to take out a reverse mortgage loan is probably too great at that point if you're only going to be in the house for a few years this is a long-term solution to living a comfortable retirement and doing so aging-in-place in the comfort of your own home another downside and it's not necessarily A downside it really depends on what your Viewpoint of this is reverse mortgages are loans that have negative amortization which means that if you make no payments and see if you can treat a reverse mortgage no different than a traditional mortgage if you want to make payments you certainly have the right to be able to do so but a lot of folks choose not to make monthly mortgage payments and if you choose not to make a monthly mortgage payment your balance each month is going to increase a lot of folks are fearful of their fearful of their balance increasing what we teach Steve's is what the home is a low growth potential asset if you have a financial advisor that is managing your money and that money as well diverse<br> it's in the right Market it's invested well chances are that advisor is yielding you you know 7 to 10 to 6 to 10% returns right now historically the home appreciates at 1 to 4 % and so we use the home equity first instead of using the retirement assets first and combine all of your assets but a lot of folks are a little hesitant because they're fearful of their balance rising over time and look at that point you have to become educated you got to become empowered and ultimately you got to make the best and most astute financial decision for you let's clear some of the information can somebody lose their house with reverse mortgage you cannot lose your house because you have a reverse mortgage that that's a huge misconception and if we have time to do a quick backstory so prior to 2015 if you were over 62 you had equity in your home and you had a pulse you had blood pumping through your body you could get a reverse mortgage there was no credit qualifications there was no income qualifications and so<br> the result was you had a lot of folks that were already of destitute they had already run out of money and they were using the reverse mortgages as a last resort the reverse mortgage just prolong the inevitable prolong their ability to remain in the home but it was inevitable they were going to lose their home because they just couldn't afford it didn't have enough income to pay the taxes and the insurance those are the qualifications of the reverse mortgage got to pay your homeowner's insurance you got to pay your property taxes and you got to maintain the home if you default on any of those requirements you will lose your home but that's no different look if you have a regular Morgan Freeman no mortgage and all Steven you don't pay your taxes you're going to get foreclosed on you're going to lose your home but by having a reverse mortgage you cannot lose your home simply by having the people we've got the market screaming up right now with the housing market have been want to buy and all the supply line issues I get a reverse mortgage it's a $600,000 reverse mortgage the market goes down<br> and my house is actually worth $300,000 and I pass away is my heirs have a great question so all reverse mortgages are non-recourse loves non-recourse means there's no recourse and there's no debt pass to your heirs or you restate that they have to come out of pocket and pay so at the time of your death your heirs are going to have the option to buy the house for 95% of the appraised value at the time they can also walk away if there's more owed on the reverse mortgage than what the home is worth they can walk away and be non-recourse component kick Sandy hekim reverse mortgages have government reverse mortgage insurance on them that insurance policy that is on all these reverse mortgages will settle Thomas like gap insurance for your car seat in your car you owe $20,000 the insurance company check for 15 that's $5,000 Gap is covered reverse mortgages work the same way so you can have the Peace of Mind of knowing that you can take a reverse mortgage out and if at some point there is a market correction<br> and you do owe more than what the value of the home is at the time of death your errors can simply walk away or they have the option to buy back at 95% of the reasons why I asked one of my clients who had a reverse mortgage passed away and the reverse mortgage is actually like $450,000 and after 2008 live house value when they appraise it was 195000 when the heirs were looking at just dumping it saying hey fine but when I explained to him I said you can get a house for $195,000 and let it grow and they went oh my and basically they bought the house for 195 and sold it a few years later for twice that much so they were in a wonderful position when that occurred in it's a great option one of the questions I do have is this in this world you have divorces okay and this question is come up probably I probably have 30 of these questions the horse race in California and 50% if it's a second divorce and they're older<br> 55 + 72% what's the effect of reverse mortgage and some of the receiving end, if there's a I want to say gray hair silver her divorce I love that question so we have a partnership with the idsa The Institute for divorce Financial analysts we're working with financial analysts that specialize in senior divorce and we're helping them use reverse mortgage loans to navigate their client's Financial woes while they're going through these divorces and so were using the reverse mortgage as a tool to divide the marital home and end-use that equity for one person to remain in the home while the other leaves the hot we're also using it Steve we just had a case like this not too long ago where the couple sold their home for $300,000 they both put down $150,000 on two separate $300,000 homes and they bought those homes with a reverse mortgage you can actually use a reverse mortgage loan Steve to purchase<br> in retirement most folks don't even realize that most Realtors don't realize that a very effective strategy and it's one that we are deploying quite a bit as we work through the institute for divorce financial analyst help their clients he's that financial difficulties of grey or silver divorce over the years there's a number of clients that have come to me and they've come to me because they're trying to find a way to make your time at work and I've overspent or over help the child or something like that and we've got in contact with a reverse mortgage specialist for the primary reason and in one case the couple actually took out a jumper reverse mortgage but they were able to eliminate their current mortgage payment which is a little over $2,500 which was the Gap they needed to make the retirement work for the rest of their life and then they had an equity line left over that they were going to use in case some health issues ramped up on them and they're just going to let that grow until it was there that was probably 12 years ago and they let<br> nothing bro I think it's like little over a half million dollars and they started tapping into it because of Home Care needs so they can have more than enough to do it and they're so thankful that I said hey look at consider getting a reverse mortgage because this is what you need so they were able to prolong their life how the retirement that they want and now being able to take care of somebody just because they looked at what you talked about strategically tapping into that acid which is their house Equity the bottom line is there's / 9 trillion dollars of senior housing wealth that is not being used right now reverse mortgage is just one way to use it there's other options there's traditional mortgages there's traditional home equity lines of credit however the difference with the reverse mortgages there's no mandatory payment obligation so if you're in your 60s or when you're in your seventies you're looking to take funds from the equity in your home would you rather do it and not have to pay those funds back not have a mandatory mortgage payment or would you rather be saddled with a 15 20 or 30<br> your mortgage payment and have to come out of pocket with that payment every month until you're in your 90s and some until oftentimes it makes more sense to take out a reverse mortgage but again it's all about education and it's about weighing the options and what works for some may not work for others and that's where we come in to help them figure that out a lot of people are in situations like in States like California Illinois New York where the cost of living's got pretty expensive there only options are to selling down side or move out-of-state or they look at getting that reverse mortgage just a free of that money that they need to make their life work I think what you do is Noble I think what you're doing right now with educating everybody is very very important and is needed and that's sad we're about to wrap up our segment with you could you tell us how people can get ahold of you how they can go get your videos so they can get educated and get the help there looking for absolutely I appreciate the opportunity so the Stephan J slay<br> group is Steven J Sledge group we are the reverse mortgage division for Primary Residential Mortgage we have branches in all 50 states throughout the country you can reach us by phone or number is 410-814-7575 to 410-814-7575 or online at and US less group the s s l e s s group.com on YouTube is where all our videos are as well and we have a lot of educational content on there if you just go on YouTube and search the Stephen Jace less group you'll pull up our content if you get there I'd appreciate if you'd like the videos and if you want to be notified when we put out more content just subscribe and hit the bell at the top and every time we release a new video you'll get to know first thing of learning anything new is getting education who got a great resource at the slash group.com so you want to go out there and look at it you're looking to get a hold of Steve definitely go to that website if I want to thank you for joining us hey stay stay stay healthy<br> a lot more questions than it answers so we're probably have to Circle back in a few months and have you back on is that okay I love to I appreciate the opportunity you're doing great work Steve I appreciate you have some time thanks so much for taking with us today you are a relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending less your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton play welcome to the show that was Steve last he was talking to us about how to use our home equity to make sure we can handle life that we want retirement so if you'd like to get more information on Steve's last go to the group. Calm their wonderful operation a lot of Education First Step with any financial decision is getting Education Without education you can't ask a question which means you can't make prune informed decision so life's all about making prune informed decisions and this is all about the ins-and-outs of money and that's one way to do it to go to that website if you like more money and I wanted to start this with a story about somebody at work with way back in April 2007 and have continued to work with him he allowed me to share a story this him and his wife were referred to me back in April two<br> yeah I was a long time ago but in April 2007 he and his wife came in and you know what you don't know about him is he worked in the startup and IPO industry wasn't your money guy that did IPOs but he helped built company he was in the midst of his third IPO that was going to get launched the first two kind of felt hurt after it got launched one was just before 911 in which case the whole world for the tech industry went down since then he has saved a bunch of money and now he was looking to get this multi 10 million-dollar payouts providing he took with the company for six months after the IPO was going to issue in November 2007 when he came to my office I asked him about his industry and he spent 20 minutes talking to me about how fickle the IPO startup industry was and how very few actually make it a lot like all these people want to be stars and musicians not everybody makes it so<br> talking he also had accumulate a little over 2 and 1/2 million dollars I said hey look we're going to do retirement planning attacks planning let's do them separately because you tell me how finicky the IPL World happens and did i p l goes down and he actually agreed with that so we started talking about is two and a half million dollars I said to him what happens if we do have that downturn in the market goes down by 30 or 40 per cent would you be able to stay retired where would you have to go back to work and he said well I probably lose a million dollars and I would have to go back to work it is it is that something you want to do what he said no I said okay what we need to do is we re the care plan where we can reduce and eliminate the risk of have and then make sure that you're getting the rate of return your need to live the retirement dream that you have is it okay that okay look was one of those things like your dad says when you think you're full of it and I went through how you go about doing that and he and his wife were he actually<br> I said hey thank you very much appreciate the time and got up and left eye I didn't think I'd ever see him again but he called about three weeks later and he told me he knows Steve when you said that it was an aha moment for me in fact I got chills in fact I got scared that's the reason why I left I said will help me understand what you're thinking here says we'll look I was there in 2000 in fact I had more money then then I do have now and I continue with the risk thinking things are going to be okay and I lost almost 70 per-cent of what I has I saw friends who had retired a couple years early they had millions of dollars only to have one or two million because of what happened cuz they didn't reduce their risk and the reality is they didn't realize that they didn't want to go back to work in a lot of them did they downsize change the Lights On Eagles and I don't want to do any of that but my concern is I don't know how to protect things and create my income cuz I've been spending my world<br> accumulate accumulate arrest I said hey don't worry you're like every person who's looking to retire so all we really need to do is we we need to create a prevention strategy where we retain what you have growing up with a reasonable rate of return so you can live the life you want retirement but protected and we spent about two months educating we brought in real estate experts money managers I educate them on Safe products and things like that and in July we got everything set in place November hit I did this phone call I got Steve my IPOs were twenty-five million dollars is all excited and February as you know the world fell it and the valuation of that stock went to next to nothing I was supposed to meet him at the end of April I met him at the end of April but the stock was worthless he got a notice that he's going to get two months worth of salary and that was going to be about it they still plan to repair because the planet we put in place<br> his portfolio went up to about 2.8 million dollars before everything went to hit but you know it only lasts a couple hundred thousand dollars so you still had about 2.6 million now for him that enabled them to create the income they need in retirement affect the very first word he said he just said she not I'm very grateful and I said why because you either have a crystal ball or what I said no no I don't have a crystal ball if I did it would be her neither would you but here's the thing that we did all we did is some good planning we recognized that there is a live transition here in that live transmission went from I'm working till I no longer working and all we really did is we made it real simple I'll make it real simple for you think of your Investments as red blue green red is Wall Street stocks bonds Mutual anything that has wrist you know stock Bond ETF they're going to go up and down with the market 30% of 30% down it's just the way it goes if you're looking at the blue you're looking at Investments that are not<br> correlated the stock market's up the stock market drives guess what this does has a little bit but not a lot of loss and it has a predictable income which people like Kim K it adds stability report and then you have the green section which is protected items like from Banks and insurance companies that they have protection when you're looking at things you're looking at CDs and things like that to her much what you can y'all use equity-linked CDs okay you definitely want to talk to your financial advisor about that if you're interested in those days and then you have a new team yet fixed annuities and you have fixed index annuities so for example with a fixed annuity a lot like a CD you get a guaranteed interest rate but we have a fixed index annuity it grows with the index is it supposed to fix interest rates so if you have a 10% outside you could get a 7% increase and it locks in that gross if you started with a hundred and 107th and it's the next year the market crashes you still have $107,000 which is wonderful the key here is you take a look at this<br> you say hey how much do I want in the red section the reception I want 30% I want 40% in the predictable income section and I want 30% in the guaranteed sex it's all going to come by and see generate a certain way to return so you can live the life you want but let's take a look at it when it hit the market so for example if you have $1000000 there in the market goes down by 30% your only dropping by 30% of 30 which is a 10% drop over the whole piece if you look at cuticle income and say you're getting 7% there hey I lost in but I gained 2 so I have a net loss of about 8/8 per cent is a lot easier to recover from cuz I only need about 9% to recover as opposed to 30 where I'm going to need 50% recovered a lot of people out there listening and what they're listening is there saying hey I'm still working cuz the impact of 2008 so the key here is dis everybody looks at wrist different like some people like the reward they get from taking a nap<br> spell others are proactively taking steps in putting measures in place so things don't go as planned they don't take as big as a hit so if you're couple years to five years away from retirement it's important to look at ways to reduce and eliminate risk is quite frankly there's a lot of advisers out there is a hey don't worry it's only a paper loss it's only loss if you sell the issue comes with this if you're in the first couple years before a couple years after retiring five years before retiring and you take that significant can't you might not have enough time for your portfolio to grow before you have to start taking income from it so it really doesn't give you that opportunity to grow so you can access your savings and that short. Of time so I think of those things a lot of people don't understand real estate and that's the reason why they have everything correlated their Market you know what there's ways you can invest in real estate you can do it through a rental property game<br> you can do it through a real estate investment trust you can do it throughout Delaware statutory trust you can also do it through a check the key here if you want to find a specialist who understands those that can educate you so against the message here is this you want to make sure that you have some sort of the diversification with your portfolio you want to make sure you're reducing eliminate risk you want to sit down with your adviser to go about doing that you some good advice to make a difference in your life now you want to stick with us we've got a great segment coming up with Danny or catch will be right back more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the ins-and-outs of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton my name is Steve Sexton and we're talking about the ins-and-outs of money here's one of the big things we've seen is 3.5 million-dollar spending plan in fact Congress the house they're fighting back in for I don't know if it's going to be three point five million dollars but you know what it's going to affect us all as one of the big things a lot of people are trying to make decisions right now they're trying to figure out which way to go with axes we have Denny Itachi financial advisor author Mentor Entertainer has a radio show he's here to help us understand this whole thing Danny welcome to the show your speed nice talkin with you and it's too bad we can't are the updates we had 5 10 minutes prior to the show<br> Facebook a few months on end we still see people visiting it and it's almost like watching the Housewives of whatever I mean there's not a lot of drama there but people like to see what's there before we get started I got to ask this question because this is one of things that come up with a hundred times but what people really don't know they're listening and we have almost 700,000 people who listen here then he was the lead singer and guitarist for the band Iron Butterfly in the night when you lived in La featured with musicians like 3.9 famous act like they clicked Owens Davy Jones from the Monkees Dennis jokes from the classic for Rare Earth Steppenwolf with the love Badfinger Eric Burdon the animals REO Speedwagon Night Ranger and you still go out there and get it right now in Florida too bright<br> international league for the International blues Conference during the original Blues so I see my clients get a big kick out of this lot of them with me and said hey dude do you want to talk about this background of yours so nice to perform I even do my leg Dad I think Sinatra music but you know I love rock and roll on I like the blue. What I do to pay my bills I flipped a switch in a 90s when my best friend was Joe Sherman from Three Dog Night and he was sleeping on my couch and we are eating Jack in the Box double cheeseburgers and ninety-nine cents do I set up this guy with platinum records is sleeping on my couch I probably should do something else for a living I love Joe I mean<br> but I've got to tell you that old story they were terrible with money so my passion became showing people how to make their money last educating them I mean on sugar coating straight shooter I mean I tell people like it is and then make their own decisions best way to be but I still love you yes you have a unique transition I know you're in the Army and all that stuff but the transition for musician to financial planner it's just that you go from a creative mind to Eleni remind it's just a little too because I have a lot of great part it's not just me I really communicate simply with clients so that they press the panic button because as we discussed everything is going on right now<br> chartered financial analyst Brandel largest technology 14 Merrill Lynch is now with independent Solution on parted with them I Money Matters with them he still bullish in spite of the back of the tax things that are going on a mini worldly things that people think look less face at the market has has been going up for the last couple of years it can't continue there going to be a blip on the radar however fundamentally Equity still look attractive for single do small double-digit returns along, I guess what the feds going to go and I know we're going to talk about the tax monetary policy by the president and until something new comes in<br> radar let's chat a little bit about that before we get into the other things because you heard about what's going on in China with ever Granada in their $300 blowns and all that stuff and China says hey we're not going to step in and bail him out and all that stuff did you talk with that with your guests he did mention that that he thinks it's a situation that but it's almost comical then it seems like life would be always come up with this debt ceiling crisis and they wait for the last few hours to figure it out so I did ask him what they don't agree on the desk Jones you think the market will go spiraling call Niece doesn't feel like it's going to shower investor sentiment I certainly also believe that the trillions of dollars that they're going to pass could affect many things in the higher taxes president is already talking about raising capital gains all the way up to possibly 43% he's also talking about and who knows what will be<br> he's also talking about possibly changing Roth conversions if you're making x amount of dollars but caution people not to panic as of yet until we know I mean Steve do you think it's a reality that no matter where the tax situation is that most people with good tax professional figure it out eventually if not you know whatever the tax professionals will figure out all the certain ways that they can overcome the new legislation that is the reality just like when markets make strong Corrections and they could be for good reasons to make the last biggest one was 2008 which was a horrible situation but for investors that were maybe investing for 10 15 20 years they were better suited than those who are retiring within the two to three years of that happening my answer to that is you should have prepared for it I certainly treat clients differently when they're within five years of retiring as a<br> 20 years are retiring because we don't know what the Market's going to do with absolute certainty there's a lot of speculation even though stocks are moderately overvalued at this point I'm going to call me see people lost more than they're still a good deal going for the next 12 to 18 months and Beyond I don't think people should go crazy and load up on technology right now before the value investor and for those investing the next 10 15 20 years you know it's it's almost like that old saying that if you have favorite companies and they go on sale do you have been them or do you buy them or when when they're cheaper so if if you're investing for the longer haul I would say that that would trigger buying not selling them and come back cuz I want to keep going on that topic cuz I think it's unbelievably important so he look you want to stick with this we're going to be right back more expert advice for having a happier relationship<br> with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the in an ounce of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune into the saving Willis TV show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton about the ins-and-outs of money are truly want to thank you for tuning in I appreciate you letting your friends family Associates know about the show all the replays are available at ww.w dating with Steve. You asked if you're enjoying the stories are helpful information inside on saving with Steve and I encourage you to strive for our Google play or Spotify Channel check out a few of our feelings that you can't help radio BBS radio talk radio New York City e360 TV Las Vegas TV network all these networks are dedicated to empowering you to solve problems uplift your spirit and live a life of financial personal freedom we have Denny Itachi we've been talking about the things that people need to keep in mind when they're looking at this 3.5 trillion-dollar spending package one of the questions that I have for Danny is this far as a lot of<br> people feel there's going to be some Fallout weather positively or negatively if it's negative people and the school systems and things like that for 25 26 30 35 do you freak out and take things out of the market or do you let it continue and invest even more because you're my look at if you're buying things a discount but I'd love to hear your question just remember that it's really based on risk on a lot of my clients we go through sophisticated software and we might I looked him in the eye on stage on Jill what would you feel like if your value went down for 30% and I see what their reaction and at any given time if that's not good you need to be really careful on how they invest because the fact of the matter is that could happen it happened last year during the covid crisis the market was down about 35% now who would have thought<br> as fast as it did to those who have the ability to not have lost money because they sold out of their position so time is your friend in the morgue and also risk tolerance is very interesting Steve that in the last 21 years if you break down with the S&P has averaged including the 2008 crisis it's probably somewhere around five and a half percent. I know that doesn't sound sexy but compound interest is is is amazing as Einstein used to say so I really feel that people should not find time to Market what they should pay attention to risk tolerance because at any given time the markets move so fast now if you cannot stomach being down 20 30 or possibly 40% then you should rebalance your portfolio if you're closer to retirement you should have it in positions that maybe you're okay making 3 to 4 % and you're not going to get upset the market May 20 because you have<br> plans for in 3 years when you retire but if we take that away if you know you're going to be in the market even in retirement than maybe you wouldn't even do that you would continue playing long they moderately conservative well-balanced Diversified portfolio and over time you should be rewarded but I have to tell you you have to be able to stomach the option Downs the absence close of the market they are a natural progression what we've had in the last 45 years I consider not natural it's been more bullish rather than bearish and show people have the mindset that well if I can't make 20% and what's the point or pay the Market's going to continue going up and the music playing everyone's dancing is Rage that's not really what proof of the Angel planners want their clients to believe it's not reality we had a great run couldn't continue yes I think gentleman is as long as interest rates are where they are and that the economy keeps going and we don't have<br> things like what we have in China Another War perhaps a debt crisis that will keep plugging a lawn and single to low double-digit returns is very achievable this is not the time to 10% correction in the next 6 months or more so I really believe in my heart of hearts time is your friend and risk tolerance will help you stomach with the market that wonderful advice when it comes to things what are you currently advising clients to do do the office at 8:10 to take Social Security early in the further retirement accounts when from a taxations than what they should do the opposite because social security has been an hour on I do believe because of the spending and the new Administration the taxes will go up there talking about changing the brackets as it is<br> induction did President Trump did which was a gift for many when they say that only rich people benefited I asked a couple Point Blank so that $24,000 in reductions in help you and they say well yeah of course big big thing that we have to watch and if they do indeed race corporate tax rates and that may change some business structures it may go overseas which will affect employment Which Way affect monetary policy which means that we could see a rise in interest rates and then once things start tightening if they do in a lot of it is predicated on what taxes are going well because her spending my icing on my show drunken Sailors on Shore it has to be paid somehow some time and the only solution is obvious she threw a stye that's how they pay for week we've had<br> I don't want to say artificially help down but boy I wouldn't want to be the first guy that wants to raise interest rates in this environment with people have been spoiled for the last few years but these are all normal progressions of any economy race cannot stay where they are and should not stay where they are they cannot because he's smart if you can invest in Roth account unfortunately because rates are work they are tax-free municipal bonds are not that attractive and I was raised to hire that will effect of course your principal I would say a true plan to deal with the taxation if you're self-employed you can take advantage of Seth Ira as defined benefit plans instead of being stuck with a $5,000 a year if you're making good money and are self-employed and you can put away 25% of your earnings and pay yourself instead of the IRS and I say that bad word<br> that'll save you in taxes alone you know but I think going forward when everything is going I think it goes back to fundamentals for everyone and that is start off with a bunch of what are you putting away because no matter what time we're coming full circle where everyone of us including myself as to watch a death as to watch our spending habits and we have to live well within our mini I personally have no debt well within my means I could drive just about any car I drive a three-year-old Chevy I'm saying we all have to as a country and individual take responsibility no matter what is passed from taxation no matter what the market does we have to go back to the basics budgeting are so I know this is not exciting but think of the generations before us where they practiced is forever they didn't have the economy that we enjoyed the last 150 years so they had to practice these things that I believe are coming full circle again and with regard to taxation<br> well if you can invest in Roth accounts or you can defer your Investments until you're in a lower tax bracket that's a smart way to go instead of paying taxes is totally makes sense I think it's great advice I was talking with somebody three weeks ago for me I do a lot of bands tax planning but there's one person that we've known for years and I keep talking to every single year about reducing his taxes he just says no no no and this year we had a new granddaughter and they're trying to figure out how to put four grand into a 529 program for their new granddaughter so what we did is we talked about tax-deferred accounts all the money that he was getting interest income and getting taxed on that I said are you going to be going to use it as hell never going to need it so we put it a tax-deferred account and then he had the Ross so we start replace I didn't come by withdrawing from Roth which is tax-free which put them in at 12% tax bracket so all the dividends and capital gains for tax-free so now his taxes are just based off of social security so his taxes went from about 4<br> thousand dollars a year here in California to 16 so he just went oh my God the IRS is actually going to find my my daughter's license.<br> He may want to be<br> he probably needs the money to refinance the money took that I deal with his recall campaign right and also depending on whether someone is a W-2 or self-employed person that's why llc's or made and for-profit corporations that's why I said you earlier that no matter what they do with the tax situation tax professionals how to maximize the system for the benefit of their clients so you either going to pay them or the IRS so but I really believe that will overcome it may be difficult they may affect our economy and many ways and I'm ultimately also concerned whether or not companies decide to go elsewhere to conduct business instead of being housed here in America because I don't blame them if they could save 10% on your taxes that operate<br> I mean Ireland build a hold economy by reducing taxes down to 2% so why not and they built a gigantic manufacturing economy over there for doing that and I can see that occurring again at corporate taxes go back out right so I need to watch out but as individuals we have already touched on how they can deal with it if they raised the tax bracket if they do away with the standard deduction Bill be other ways that people like the tax deferral account certain ways to invest to mitigate the tax liability situation thank you for being on the show but what are the big things I like to do especially for people like yourself is give people an opportunity to come get information from you how do they contact you the website and if they want to see you saying you know we can live well<br> I do have a website for singing Danny are Kashi band.com however I'm in need the greatest broker-dealer deep for a bridge and the greatest are a form with Lucian my number is 13058 +226-561-305-8226 on with Peak brokerage Services I'm here in beautiful Jupiter Florida you can email me at my first initial last name Dr Kachi that's d a r t a c h e f p b s rep which stands for big brokerage Services it doesn't cost anything to talk I may not be a V for everyone but I love at least educated people so that they can make their decision I think it a big difference of what I do is and I know that we're gets used a lot but I really do give advice to my clients of wind to take Social Security what they should do about Medicare how do they transfer the assets what happens if they get sick how can they really invest in the market<br> maybe get more than 2% would not taking too much risk do they understand the difference between a true liquid managed accounts and that not all annuities are terrible and the big bad bully man there's so many of them you see those commercials that they would never sell annuity well rich people buy annuities in life insurance because they have their position I'm not saying you should put all your Investments I believe being the proper risk all our model is how typically people should be but if you're limited in your resources and you don't want to wind up eating cat food you may want to consider some of those other vehicle if we ever a bear Market next to three or four years and you're counting on that for your income yep that's a sobering reality that retirees need to address now I'm not saying you have to do annuities they're certainly Burford equities at pay nice dividend my whole point is you should seek help and get many points of you and advise<br> find someone like me that has all the partners all in one<br> that's right<br> Wonder Stevie Ray Vaughan I don't know if you know who this is but Robert Shiller he won a Nobel prize for the cape ratio in economics I was at an event at Barclays in New York he had a discussion one of the statement you made I never forget it just says you know what there's a lot of different investments in our world some could be the perfect thing for some people but the horrible thing for the others in the lot of people don't realize that they're just being put into a box sometime and you want to find somebody who's going to find something find an investment that's going to fit him like a glove based off of their unique circumstances you were just talking about that so I think that's important and you know what that I'm going to have to go cuz our time's up I want to thank you for being here today everybody dance maybe we should have you back sometime you been a lot of fun this guy<br> well you can see why I have less hair that's why I get up too early buddy that was Danny or Tachi wonderful guy was watching some of the band stuff last night on YouTube go back to check him out and hopefully we'll see you back again bye bye thanks for joining us to you next week thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving which Steve show hosted by Steve Sexton<br>