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 Die 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 hello welcome to the saving with Steve show where we talked about the ins-and-outs of money pretty much everything that relates to you having a happy healthy relationship with money last week we had Helen Ortega give his wonderful Insight on how to make a successful career change especially in this ever-changing economy<br> for more information you can always go to the saving of Steve website that saving with Steve. Us website Helens episode is episode 16 we have a number of people are keep going back and ask him how they can do that you could do that to you can also check us out on Facebook and get gas kiss behind the scenes videos with everybody love so again thank you for being with us for many people you've spent years accumulating the asset you have today thought about hey what was the best way to use the money is saying how would you withdraw that money from your IRA 401K other accounts you're getting impacted majorly by my federal income tax at your retirement other things many people when we started looking at this episode they've searched in vain for helpful information on retirement withdrawal strategies in there not really seen it so our current guests he decided to create a retired tax simulator called the retirement Tax Savers tool the tool shows how and when my<br> is withdrawn from retirement account and how it can have an enormous impact on your taxes and he thought the information is important enough to share he did try to tempt us early retirement but that didn't work out so we're just going to listen to the part of our cereal retires so we created the school book is called him Savvy saver to Smart spender how to pick a tax-wise retirement withdrawal strategies got wonderful reviews and you don't want I want to introduce everybody to Daniel McDonald Daniel welcome to the show me practice US Patent Trademark Office he he was recognized for many years as a super lawyer he was recognized by US News & World Report has the best lawyer and he was a lawyer of the year in Minnesota for 2015 obviously presented and defended many people on a million-dollar cases he's also a certified retirement planner with Dave Ramsey show is really interesting he's a financial coach<br> lawyer again I want to welcome you to show Daniel thanks for being with us very much Steve Sexton all that alliterations got to go together and it isn't it I'm saving with Steve by by policies but if you'd like to get his book will have it on the website soon as his issue errors and you'll be able to just click that go right to where we want if you're interested in getting his books I wanted to make sure everybody knows it out front before we kick it off and start asking me to some serious questions what got you to the point where you went from being a lawyer to becoming a Certified Financial codes for Jade Ramsey well it has a lot to do with the clients I have the pleasure of representing for those thirty-five years I couldn't do the work for small companies large companies bailout of inventors that intellectual property laws what I did was I was representing a lot of people that created things of value and they were great times I was probably the best part of the job is the people I got to beat his clients and representing all those cases and I was kind of a wannabe<br> their creativity I think so it's always on my bucket list I wanted to patent something I wanted to be an author and create some some works of authorship and so I got a pad her to we can talk about that if you like it's it's not going to change the world but it was a little sad that I came up with and what it was I actually on my bucket list to write a book I wasn't sure when I was going to do it but when I came across this issue and had that a ha moment to the block. Kind of came together they don't get that thing. That's on your bucket list about writing a book this is the topic traditionalism we talked about waiting to use tax of her 401k or IRA account until required minimum distributions begin and obviously beginning at age 73 now that you know you can actually needed to pay more taxes and you need to help us understand and what would be a good strategy to move forward with something like that in person when I learn things are going to try to paint a little visual picture for you here.<br> can come over to your life this graph where the video You're the years go across the bottom of the dollars go up and down along from you 3265 or whenever you're going to be tired and in the number keeps going up hopefully for a while maybe it kind of levels off for a while but it's up there pretty good so that's like the upper left part of what I'm going to call the you curve okay it's about the time you're wrapping up work and just from that standpoint and then you stop working if you retire and then you have a big drop-off in income so now we'll never get to the bottom of the you and that's that's nice of a text and why should I make it as much money then at least you're not paying his taxes for a while but then we got this the right side of the u r g spot back up again for a lot of people anyway and why is that well it has to do with the fact that it when you hit and now is you say it's 73 you hit that age where you have to start taking money out of your 401k an IRA taxable income in and whether you wanted to take out and you pretty much have to unless you want to pay a heck of a Big Ten penalty to the IRS so now that text<br> you can go up it goes up awesome because you start taking social security at some point in their probably mid-to-late 60s or 70s put it off until 70 and I think he may not always appreciated but Social Security definitely can be taxed if you got some other taxable income and especially so all of a sudden you get paying more taxes on the upper right side of that you again you enjoyed that Lord text. For a little while there but you can hammer it again a little later after 73 so the point is can you change that can you mix that up and the critical point is you don't have to wait to start withdrawing from those 401K an IRA days until you have to just because you have to take it out then doesn't mean you have to wait until then and if you take it out sooner you can level off at Euchre make it a smooth finish and then you can also plan out lower your tax rates over the course of retirement<br> I think it's wonderful especially since now that required minimum distributions went from 70 to 1/2 is 72 73 I actually think it's smart thing for government revenue to do that in the reason why I say that is basically people just leave those accounts alone and they get bigger and bigger and bigger and really all it is is an IOU to the IRS so you're in a position now where you have to take out more and more because it's larger and you're getting older and then when you're within a short. Of time on the same people should live too long but I mean when they passed they either have to take it out of her 5 years or 10 years depending on whether it's a stretch or not so there's a lot of Revenue that goes to the federal government there and in what you're talkin about is kind of leveling out that distribution so you can keep the tax in a certain spot as opposed to being all of a sudden hit in his later years which could be devastating to somebody's retirement income stay the way they are right now and we actually<br> pretty sure they're just going to go up in the future for one reason tax cuts Pastor in the Trump Administration expire at the end of 2025 and basically we are going to go up the formulas going to be a little different but the standard deductions going to go way down and the tax brackets are going to shift such that most people are going to owe more money even at the same level of income so that's one way I meet the other what is historically we're about the lowest income tax rates we've had and probably 50 years right now so is there a chance that our friends in Congress might monkey with that at some point and move those numbers up in addition to the kicker that happened in 2026 well I wouldn't bet against that are you want to plan for the future and it said unknown but it seems like there's a lot of winds that point in the direction of tax rates going up in the future so if that's true take it out sooner before and then you'll get your money out at lower tax rates to the next question and you're talking about making that simple little withdraw strategy change as of<br> solid I could save thousands of dollars and Taxation over the seventh period of time could you come to unravel that a little bit for us as well cuz I know you just touch down at there in a second ago yes well you better text Savor that I had at the website retirement check savory.com you can put in your ass as that you got and it could be from a variety of sources you have your 401k or IRA retirement but hopefully you got some other sources of income to do maybe you say some other money up in another account that might have begin bonds mutual funds or something you might have a Social Security send a pension if after all those things in the basically what the core issue here is a test out the possibility of not waiting to withdraw from that Ira or 401K until you're required minimum distribution age start picking a number maybe it's 10 or $20,000 a year maybe more and just see what if I started withdrawing from those accounts when I'm 65 a set of 72 or 73 if I started taking out<br> twenty thousand a year I'm going to pay taxes more upfront because when you would show up front you got to pay the taxes then but can I say taxes over the longer-term would say when I get by the time I'm 80 or 90 that's one of those are kind of the benchmarks I use for my calculator and Save in the longer run and pay in taxes in the short run might be okay if you only have saving a lot more in the long run that's the bottom line specially with an increase in taxes we're going to have to take a break stick with us we'll be back with more Daniel McDonald and saving with Steve zissou more expert advice for having a happier relationship with money still to come I'm 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 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 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 a little welcome back to the saving Steve show I just want to say I truly thank you for tuning in I appreciate you let your friends and families know about her show all the relays are available at saving with Steve. You asked if you're enjoying the stories of helpful information and insights on saving this even encourage you to subscribe to your YouTube channel are Google Play Channel check out a few of our Affiliates at UK help a t o b b s radio talk radio New York City New York e360 tv as well as Las Vegas TV networks all these networks are dedicated to empowering you to solve a problem son lift your spirit and live a life of financial personal freedom welcome back Andrew McDonald thanks again for being on the show he's got this wonderful book you want to check out is called The Savvy saver to Smart spender how to pickle tax-wise retirement withdrawal strategy and Daniel working people get your book<br> best ways to go into Amazon and just start typing in from Saturday is that narrows it down pretty quick populate the name of the book right there just click on it and take it from there. Our distribution once we get old enough to start taking out money we've talked about the reason why we see taxes going up and one of the reasons that would affect us is the fact that we know where we're at right now we know they're going to go up in the future and they might even be higher with all that that's pending and all that stuff is going on with the garbage so it's important to take a few steps now one of the questions that my viewers have is finding out which state tax Social Security and Hound with roster I did you could save even more if you live in a state with income taxes so I'd love to hear your thoughts on that side because we all know that you get taxed since 1983 or 1984 when the Greenspan commission completed that's when you we got the provisional income tax threshold in the provisional income tax for people in<br> people make running grumbling about that ever since so I'd love to hear your thoughts on that couple things on the federal front that you mentioned you're going to be subject to taxes on your Social Security at the federal level and was interested you point out how long ago that's been a lot of the stuff in the federal tax system is indexed for inflation write the tax brackets and things will the thresholds for when you're still security can start to get taxed in text a lot don't index with inflation some more and more people get hooked into that sucked up by that Social Security tax every year even if your income was only keeping up with inflation you're just going to get it more and more hammered by that so that's the unfortunate bad news at the federal level number one and number to you right there are 12 States they're all listed in the book I don't know if you want to listen to I can tell you my my former home state is Minnesota now in Florida and I I love Florida for petty reasons<br> you have about twelve 6 Colorado Connecticut Kansas Minnesota Missouri Montana Nebraska New Mexico North Dakota Rhode Island Vermont West Virginia I think Mike they have just been changed in a while I got to double-check that the West Virginia was texting and I think as of this year they might not be<br> that's the list right there you have a lot of states that don't have any income taxes at all Social Security and that's what they're kind of nice states to and you have other ones that do tax income but they don't tax Social Security but those 12 that I just listed are the ones that do tax Social Security at least in part that's a nice thing to know especially if you live in one of those States and you know that they tax Social Security let's talk a little bit more about designing a strategy that takes into account your tax deferral other assets Social Security benefits and other income sources so you can reduce taxation show or survey show that almost 96% of country or state taxes are going to go up we know that we have the sun setting they actually think I'm going to go farther than that there's a lot of people out there going heel what can I do even though they might talk to a CPA and then we played on CPAs most CPAs they're they're really good at preparing a tax return and they're asking if you get this detector that seduction but when it comes to planning for the<br> I'm sure that's not really in there funnel so to speak where are you looking at how would you see that fit four people hard to find resources from places that actually address this issue and I guess the cynical part of being open a lawyer for 35 years apart in my cynicism but if your company that has billions or trillions of dollars of people's retirement money do you really want to start encourage you going to start taking it out sooner so I had to kind of figure this out myself and that's why I had the aha moment that I mentioned earlier that went to the book is when I just I just needed to create my own calculator that's why when I got to help my son was a computer science guy when I have an electrical engineering degree but from the 80s you know we that's what we still use Punch Cards to to do the computer programming so I just hadn't eaten enough Grace I got my my son involved<br> a and that's when I realized all this going to have a big impact here if we start taking out those withdrawals before the rmd age one of the things that was a theory that I was testing as well let's look at the tax brackets you know you have a big jumper example from 12% to 22% in tax rates would have had around let's call it about $50,000 of income but you know what you could use the amount that would be perfect with standard deduction that's around 30,000 at first and percents about twenty men get to 12008 about 50 and then you have that 12% bracket for about $6,000 in between there so you have a stepson in some of them are pretty big jumps so it let's say in a given year I've been looking at having $70,000 in taxable income if my next tax break is let's say $100,000 that's what I'm going to go into the next bracket what if I took thirty thousand more out of my IRA and stay within the same bracket I'm in now that kind of maximize that bracket take every dollar I can eat that lower rate before I take that<br> $6 at the higher rate and it turns out that correlates to the actual numbers that I ran it if you did that I'd swear you were going to be saving taxes substantially over the longer-term so use up the tax crap is your Aunt I referred to in the bug use it or lose it because you don't take advantage of that tax bracket this year next year you're never going to be able to put down this year is this year's going to be next year show me the money does it make sense to do a Roth conversion and go to meet your expenses you might want to do this but there certainly are a lot of people wear even if I don't need that extra money to meet expenses I want to do something with it and get it out of my IRA and 401k if I even make sense to do it even if you couldn't do a Roth conversion to boy what a bonus it is if you can take some of that money and put it into a rock because then it sits blessed for the rest of its life by the IRS. They'll tack sitting here you convert it but it'll never be taxed at Grant again if you can grow and grow and grow<br> and as some other benefits do from a retirement standpoint that I'm not going to go into legit the tax-free Groth that and text me when you withdraw it whenever you choose to do that which you don't necessarily if it's in a Roth IRA if you don't have to withdraw at any particular moment a lot of big benefits to a Roth IRA so definitely if you have a chance and you have the money to pay those taxes up front and do that conversion it's got some some great text me whatever information for what you're talking about is if you have a Roth IRA now you have tax-free income from that and then you might have social security and then you might have some dividends and capital gains but if say for example you're married and your mother Mary brackets 89000 4:50 but if you're like $89,000 and maybe a little bummed that but that incomes coming from Social Security and then the rest of it's coming from dividends and capital gains if you're under the 89000 now your capital gains and dividends are taxable cuz it's it's in the 12% bracket so say so you could be just paying taxes on Social Security<br> my name is your standard deductions so it's a nice way where somebody could be in a situation later on in life when taxes are higher and you can pay next to nothing and taxes that's a lot of it that lower-income in the future can benefit you like you say as well but I'll turn that around a little bit and talk about the future of your capital gains taxes if you can manage those tax brackets today and be in lower tax brackets in the future lower taxable income pretty good chance you might be in a lower bracket for capital gains taxes in the future as well so they can give you that added flexibility in the future if you're planning on a big capital gain this year to sell something that's a lot of money you know maybe this isn't the year to do that big Roth conversion between a check you into a higher bracket one-size-fits-all situation and that's part of the flexibility I offer with the calculator online it doesn't just say here's the one number you ought to use it it gives you some flexibility there to look at different numbers and see what your comfort zone is and maybe you have some reasons he wouldn't want it necessarily match<br> semis your withdrawal this year did let yourself think some money on my taxes if I can take maybe less than the optimal number and so you can cut the mix and match hear your own approach a little bit that way we have about 30 40 seconds I just want to encourage people here looking at a way to reduce eliminate taxes especially if you are retired go to WWE retirement tax savers.com take a look at the angles calculator it could make a gigantic difference in your life and also really want to check out his book at Savi Savers to start Spenders how to pick a tax-wise retirement withdrawal strategy you can go to Amazon obviously that link will be up on our website I'll just give to the direct link to Amazon so you can get Daniel's book Daniel's house let me know on your show Steve I think you're doing a great job and was a real pleasure to be here it was actually a pleasure to have you because the things that you're talking about make a difference to every single one of our lives there so thank you very very much and hope you have a wonderful day<br> I'd like to have you back again thank you we're going to have to take a break stick with us we'll be back with more saving with Steve<br> 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 sex and post of the saving with Steve show where to be talking about the in an ounce of money does 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 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 sex and out of 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 hey welcome back to the season with Steve should we talk about the ins-and-outs of money pretty much everything under the sun that relate to you having a happier healthy relationship with money again my name is Steve sex and I want to thank you for joining us if you want to check out all the episodes this one included as well as any other you can always go to saving with Steve. Us. Today segment for me is all about how scams work now there's this one damn that's Tinder all those dating sites and it's called the swipe right scam okay and basic would happen if you swipe right on side of tracked a man or a woman on a dating app the app instantly matches you with them you start up a conversation the alleged female or male<br> he takes a conversation off the platform onto a texting app that says what's up we chat something like that once on that texting at the scammer starts talking about how they have a family member who's successful in cryptocurrency or some other investment that's doing really well that person has inside trading information that can make you rich your new love interest in Courage you to take Advanced to the exclusive opportunity all you need to do is to deposit money that crypto trading platform will once you make the deposit the money is gone forever your new Love Blocks you and all the platform stopped replying to the whole shot this has been reported to Better Business Bureau all sorts of places usually one of the big things here is this after talking to one moment on Tinder person been spayed or her to invest in a fake trading currency platform when she would try to withdrawl the money the funds are automatically reverse back into his account the feature was alleged<br> security system issue Chappelle prevent money laundering the victim was told account needed to have a minimum balance of $3,000 before he would draw with funds after several tries the victim was unable to recruit their money here is a couple things never send money or personal information to someone you've never met in person there's so many scans were they calm romance scams were there actually is stale or overseas and international business traveler that's about to come in town oh my God I have an issue with this or this with the family need a little bit of money you help them or you get involved with investment I know somebody personally who was so enamored online and started out with $50,000 it became more and more in fact they wiped out her $400,000 Ira she wasn't going to report it because she's so embarrassed but when the IRS notice came out said he want $200,000 in taxes she then had to report to scan to protect yourself never said none of your personal information to anyone you've not met in person<br> getting a data pill if it's a love interest appears to be in a hurry to get off the dating app to secure you want to chat Pat or it's a red flag you asking specific questions about details given in your profile basic what's cameras do is they want to get as much detail about you as possible so if they get a little bit information and they start getting your account they have all the rest of the information to take your money you also want to research the dating profile you can go to<br> t.i. tineye.com or images.google.com again that's 10 i.com or images.google.com to see if the profile picture actually matches the person cuz a lot of times it's a model they found some beautiful person sitting on a couch somewhere they crop it up and they put it on there and you think you're going to get hooked up by somebody who's gorgeous quite frankly it doesn't really work well next Facebook you get an email says we recently discovered a breach for a Facebook Community standards on your page or page has been disabled for violating Facebook terms if you believe this decision is incorrect you can request a review or file appeal to message me also stayed if you don't act the next 24 hours Facebook completely delete your account the email includes the link that appears to be Facebook because you want to keep your account you may think click however you must stay calm and take a closer look on a closer inspection you'll likely find<br> a scam these includes typos email sender's address that aren't related to Facebook if you hover over the link in the email without clicking it you'll discover that isn't Poynter Facebook website if you click the link you like me taking two official-looking page pump typically to form to appeal the violation you'll be asked for your login for your phone number or email in the page of confirm your password and hit submit now the scammers have all your information the big thing here is Don't Panic always read suspicious email carefully look for signs of scams verify the came log into your Facebook account directly to verify the problem always log into your account directly guard your login credentials this is very very important there's 13 big scam that are hitting us here in this tax time one fishing emails to verify your information to phone calls demanding your screaming Iris never called you by the way filing a tax return under your name some people actually do that they steal your social security number claiming your social security number has been suspended or 5<br> it goes tax return for you which could delay getting your fax return and filed next receiving emails requesting additional tax information IRS doesn't send you emails they don't call you take IRS messages saying you're old larger number unemployment and stimulus fraud there's a ton of them think things to know about tax fraud IRS doesn't call you they don't email you they send you letters that they send you letters they're going to give you a phone number and if they you get a letter like that and I got a letter like that all you really want to do here is go look up the IRS phone number locally and call them by the way you're probably going to be on hold for 20 or 30 minutes so sure sign that something is a scam is when you call that IRS number<br> somebody picks up immediately isn't that interesting next week hope you have a wonderful week stay safe and be healthy we'll see you next time 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 same thing with Steve show hosted by Steve Sexton<br>