Saving with Steve, July 4, 2023
Saving With Steve with Steve Sexton
Guests, Candice Bakx-Friesen and, Dan McDonald
Episode 135: Candice Bakx-Friesen, Approaching Money Struggles with a Healthy Attitude.
Episode 136: Dan McDonald, Savvy Saver to Smart Spender
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 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 relationship with money now here is your host of saving with Steve Steve Sexton<br> hello welcome to the same with Steve show when we talked about the ins-and-outs of money pretty much everything on the sun really see you having a happier healthy relationship with money and I want to thank you for joining us today if you want to see more you can always go to sitting with Steve. Us and get all the episodes background guest gifts the holeshot so and I also want to thank you for sharing with your friends and family we just exceeded 700,000 lives there so we're very excited about that today we're going to be talking about the state of retirement but from her perspective of how to update your budget with inflation cuz that's a biggie but we also have something that's important to understand and I think it's important to stay up front and then I'm going to introduce our guests now we've seen inflation in 2021 it here in the states that 7% in other countries is even higher weather to be Canada UK or Europe<br> 22 here in the states is 6.5 so far in 2023 it's / 4.4 so we had a 18% increase in the cost of living just in the last three years then on top of that because the FED interest-rate increases we're seeing mortgages here in the states six-and-a-half seven percent other places lot higher auto loan 7 to 10% credit cards for many people are struggling Weatherby US Canada UK or Europe and you know what we're in luck we have Candice Bach reason she's going to help us through it all<br> and this is a well-respected speaker she's a certified money code topper for a realtor real estate investor business cards she from Winnipeg Canada I can this is honestly trying to help people find a healthy way to deal with money and not be afraid of it as you know a lot of people things to the world puts it that way it's not as scared you might think and that's why we're happy to have Candice here so can is welcome to show thanks so much for having me. I do have a question Winnipeg Canada I realized something to Canada so what's the temperature over there today while we're in Celsius do today is 23 it's a nice sunny day not too hot but we definitely have the extremes we've got pot Florida temperature all the way to of course minus 30 when people don't like to go outside too much and you know<br> temperature is actually lower than yours cuz you when you said 23 that works out to about 76° we're not even 76 or like 60 something it's Misty like an English winner are you so when I really would love is for you to share a little bit of your background cuz whatever somebody does or something that drives into that that makes it their thing to tell us a little bit about you I was always kind of interested in money I think of business because my parents and Grandparents were on Jupiter so that was just part of life I think and when you grow up you don't really know or appreciate that but I think that it's giving me an edge as an adult now because you learn a lot of lessons just around the dinner table right and you hear the story of the Good Samaritan so influential in my life and they came as refugees after World War II<br> sing I'm so it was always very forward focused that was what we were taught as kids you know like we've worked hard and developed you know the life in Canada because we're all working for you guys like it was always thinking two generations ahead right so that was kind of a bit of my background my aunt was the only person in our family at that point because almost around his own hook onto University and she was an accountant and so I thought yeah I'm good with numbers I think I'll become an accountant to so I got my bachelor of Commerce and ended up getting a new business but I think because it's it's in the genes so<br> yeah so long story short I have been a realtor for 16 years and sort of halfway through that I started doing some money coaching because people are like they were done with the real estate part of things here but you seem to know stuff about money so can we talk about you know whatever topic it is and you get to know people really well during a real estate transactions a very trusted process and a lot of times people are going through really tough stuff you know you're selling because of divorce you're selling because their deaths or you know mom's going to a home whatever it is so that's just kind of how that involved amongst the few other things they do that's kind of the stuff that takes up most of my time to go to our blister base and say hey this is who we're going to talk about your so many things they talk about the first question is out of protein money struggles with a healthy attitude because a lot of people<br> just don't because they're scared about it they're worried about having it at the end of the month and in many cases they just don't know what to do to help us walk through that if you would<br> yeah I think the first step is just acknowledging like that everybody has struggles like I think I read a stat one set for 25 people have had some type of money struggle in their life look pretty much everybody has right if you're not struggling right now but you did when you were young a lot of times people do make dumb mistakes right and then they kind of have to learn and get past maybe. They took on that they shouldn't event and the other thing is that most people didn't learn about this in school and if your parents didn't talk about it which is also, nobody talks about buddy that's why she was like this or so important then of course we're going to make mistakes because we weren't taught right and so the main thing to consider is that you're not alone in this and so don't worry if you've screwed up the thing to focus on is that you can always improve and you can always get better so one of the things that I think<br> will struggle with nowadays most is that there's no purpose there's no lie people really don't take enough time to think about that and a lot of our money decisions are made emotionally so we know the wise thing to do but we tend to make emotional decisions and so if you really know why you're driven you know just like my example as my grandparents they were driven to give us a better future and so that was her driving force for everything she did that's why they saved a lot of money that's why they made the Investments they did it was all future forecast in so it doesn't matter what it is it could be that you want to retire early it could be that you want to have five sports cars in your garage but if you know what your why is that's what we really drive your money decisions many people that we speak with that are outside the show that when we have<br> conversation like okay so I see you're in the coffee shop is a big thing so they go to the coffee shop both the social environment and they go there once a day and they're buying a pastry and coffee and that's ten bucks and they keep doing that and back when things get more special they do it twice a day when you get an realize yeah you just spent 600 bucks this month I'm going to a coffee shop is that something that makes sense how can you read the other part is if you have an understanding of what's important to you you start saying okay so you really need to spend it on their right to take control of your decisions and say you know what okay I'll spend a hundred bucks on that the other 500 I'm going to save so I don't have to work it in there 20 years<br> people should go about setting that up but before we do that we're going to take a quick break we'll be right back with some more shaving with Steve and Candice here and she's going to be helping us through it so we'll be right back to you in a few moments<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 Sexton post of the saving with Steve show where did he talk about the in an ounce 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 Sexton on a 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 host Steve Sexton<br> hey welcome back to the shaving with Steve sure we're talking about the ins-and-outs of money I just want to remind you all the replays are available on saving the Steve. Us if you're enjoying the stories of helpful information inside I'm saving Steve I encourage you to go subscribe to your YouTube channel never missed a show you can check out a few of her feelings that you can't help radio CBS Radio chakrita New York City e360 TV Las Vegas TV networks all these networks are dedicated to empowering you to solve problems uplift your spirit and live a life of personal financial Freedom can also falls at skating with Steve Sexton on Facebook you can always go to website at 7 with Steve. Us now we have Candice walk reason one of the big things that we want to discuss is budget many people say okay I can create a budget but they really don't do this properly and there's not a science to it it's just a process and if it's done properly<br> surely you can make a big difference in your life so help us walk through that budgeting peace Candice so are you not listen to this is night okay literally the word budget makes people cringe it makes them less stressed out so just call it a plan in the money plan right so from Canada where I am if I'm driving to Florida and I need a plan before I'm going to leave right I need to figure out where I'm staying how much money I need help which route I'm taking right I don't just get in my car and leave<br> so it's the same with money right the more that we can plan for things the more that we can think through our money the better were the results were going to have and so if you really just simplify it to that I think that that doesn't make it so overwhelming for people so if you have a plan and you stick to it the best that you can then you're going to get great results acknowledge that again we make emotional decisions so you might see you know a great deal and gold blow a whole bunch of money that you shouldn't have made that you shouldn't have spent and a decision may be that you sent to me but you know we all make these decisions so<br> it's just about getting back on track and starting from the next Diaz you not today I'm going to do a better job than I did yesterday to giving yourself when we do things that maybe we shouldn't do you know I'm cold shouldn't do but the more again that we can commit to that the better we do and that you know I often compare it to eating healthy cuz that's something people relay too yeah maybe I'm going to have too much dessert one day but that doesn't me and my whole life's ruined the next day I could just get back on eating healthy again and trying again to do my best basically what you're saying is everybody has a budget nobody's going to be perfect just the way it is and everybody is going to get on and off that wagon so to speak but the key is to try and do the best you can the other part is is it important that we see you write down the mortgage the cost for insurance for the home the taxes the utilities and then every little thing you spend and how detailed should it be<br> yeah you really should be trying to account for every dollar as much as you can because it's too easy to say while I'm just going to pay attention to the big things will those those are important but it's easy to gain like you said to blow $600 in a coffee shop buying the small things so I think there's a thing small leaks sink ships right so it's the small ways that we spend money that can cause us to really get off track sometimes but again I don't like to say will never drink a coffee and you know if 15 degrees and we still have to live right but it's really just looking at prioritizing you know what is most important right now and working towards that cool and recognizing everybody has to give up something you know we can't have it all either<br> should people be looking at different ways to reduce their spending and I'm a saying for example people have cell phones there's multiple carriers we can probably find somebody who charges less and get the same plan or if we got auto insurance is there a way we can check around and see if we can lure that cost nobody wants to freeze during the winter time or overheat during the summer so setting thermostat which really isn't going to change all that much from a cost standpoint for example there's so many streaming apps every time I do a budgeting or something like this I always go look at her budget my wife has two little streaming things in like we have four of them and like I don't know I just tried it for this one and I got the 30 days free but you know we've been paying it for four or five months or so to speak looking at little things like that and for us if I gave $15 here $20 here whatever their it all adds up<br> $800 a month just from looking at ways to reduce expenses and it's curious is there other ways that you encourage your clients to look at that and that's where is the money going right you could have this base where you're starting from right and that's a big thing for people so they don't recognize where all the money's going so you actually just sit down and say okay what did I spend over the last couple of months that where did it go people are usually shocked they're like Oh I thought I spent way more on food than I am or the opposite all I didn't even realize that all these subscription said I was paying for it so that's the first step is just recognizing hey where am I spending but again like anything the more that you focus on this the better you're going to going to do so you got to be checking your account so you got to be checking in to see what's going on and making sure that you tried as best you can to make it a fun thing to look at the numbers<br> end of the month to and see how you did cuz if you're never step on the scale you don't know how you're doing right if you never measure your pants or your legs out you don't check your results you can't judge how you're doing right so you do have to spend some time doing that so as much as you can make it something fun around that right maybe go out for dinner and you will do the budget check in with your partner right whatever that looks like to make it a little bit more fun but you have to do it so everybody goes through the shiny object syndrome it just always have that and how can we avoid it there's so many things that are social media and they're like by this you want to be a better person you should be doing this if you have a business it's even worse you want to 10x your business you better come spend $20,000 on mine<br> straight there's always something that's telling you this is how you're going to be better this is how you're going to feel better this is going to make you more successful in life and yes it's just really recognizing again like what is actually important to me and what are my goals and trying not to be distracted by all of the things vying for attention<br> okay yeah I love that shiny object syndrome I mean we do it all the time when somebody comes in with this new program that you think it's going to make the future work and then you spend the money and you realized what I do that it is just like buying the Run piece of candy so my understanding is you're a real estate investor and you're also one of the top performing realtor's there but I'd like to just tell us what's the real estate market like in Canada has it changed is it like some of that in the states<br> so I think that remark quite similar and the other thing to consider is that they're also very specific to where you live right and so you can have a city where just different neighborhoods even the markets are different right so real estate's very specific however in general we tend to find follow the same Trends as you so our inflation rates are about the same are interest rates are about the same it's just part of how we are cuz we were long-lost cousins are countries right let you know we have issues just like you and cities where he and others lack of affordable housing and our government is trying to rectify and figure out how to create more housing and I think across the state in general it's sort of the same idea but in our local market we're in the Prairies so just above North Dakota and Minnesota sword<br> slow and steady is our market so we don't have huge ups and downs so during covid 4000 sinif inventory and we're starting to store to get that same thing so even though our interest rates right now here are both 5% we're still finding that the market is starting to really heat up and we're having multiple offers and all of that again I think people just gotten used to where it's at and again there's still a lot of people who want to own homes right it's kind of that we call it the American dream even though we're not in America but people still want to own a home they still want to raise a family in a home they want to see their Equity grow and a lot of people that's a big part of their retirement is selling the house eventually and living off that money right definitely were running the active market right now in touch with you to engage you for your money coach or did help<br> view from the real estate Sandpoint really go about getting in touch with you and his investors smart. C a c a o Canada so investor smart. C. C a for Canada and I want to take you for joining to this is wonderful is nice to hear that Canadian accent a little bit there cuz that's where my relatives from and soon as my Mom start tearing that she starts saying the word after everything with that I want to thank you for joining us here on saving with Steve and I will have you back soon thank you so much I'll be right back with some more shaving with Steve being a few moments<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 Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money was Financial issues that could be cost 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 as 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 host Steve Sexton<br>hey welcome back to the same thing with Steve show where we talked about the ins-and-outs of money we talked to Candice lockie freezing she was wonderful and kind of help budgeting to talk about real estate in Canada is just outstanding we're lucky to have her today now one of the big things we want to talk about is how to update your budget with this inflationary period of inflation horrible as I said before we seen an ounce and a team and a sudden increase in three years are cost of living if you happen to be in Europe or England or candidate even more while you get stretched thinner thinner every day you're probably in the middle of it right now back to research says one and three and four Americans have noticed the rise in prices 85% of people surveyed feel that their money just does buy as much cuz inflation okay how do we trust our budget for inflation first of all it's important we actually have a but okay so if you don't set one up this includes<br> doing those things like you do mortgage taxes interest utilities gas that means your gas for your car that means everything that goes along with you spending every single sentence and secondly you want to start and take a look at what's called a zero-based budget and when you take a look at a zero-based budget what you're doing is your giving every dollar that you are spending a job to look at jobs to save for a vacation for three years down the road or 6 months or whatever it is you're putting money in there there's an account that's it that's a budget item if you're stating for future taxes or an emergency fund okay you have a job for that so you want to assign every single dollar you receive a job for the month that's called zero based budgeting cuz then you don't have anything left over cuz it's all going to where it's supposed to OK Google review with your spending<br> first of all when you review your spending you want to look at everything you're spending on okay so if you realize you're going into your debit card or your credit card and there you go you got that three or four or five different streaming apps and you're only actually on to get rid of the other three if you got a meal delivery service<br> hey get rid of it if you got some other gym membership for Jazzercise or whatever it is that you're not using get rid of it okay so when you can cut it that way but the big thing about the spending here is this every little bit counts for its 5 bucks year $10 are $20 here $30 here $100 on it keeps adding up all right fine ways to say I'm not saying anything different than what you're doing but do it for less money so that means a cell phone plan you know it when we first cut our cell phone plan we were spending about $300 a month now we're down to about $185 a month we're just on a different network and we're getting the same service we don't have any problems or anything like that it just ages a whole bunch of money second cable bills streaming services do you need them all we had a regular phone but we just went to the internet and kept her cell phone the only people are calling us anyways worth<br> stop so we just cut off the landline that save this money we only went to an Internet service we went from a a very large bill down to one that was about $125 a month very we started looking at food we realize that if we bought the package salads there were five bucks a piece but we can buy romaine lettuce we can buy spinach nuts croutons cheese and the salad dressing we can buy all those things and basically if we're going through a salad tonight which is 25 bucks a week or $5 a night a hundred fifty dollars a month we could spend $50 a month buying and making your own sounds things that are can cost more than things that are not who's think about that place you get better nutrients and we find out that other things are less expensive healthier but more importantly we save money on the food and the eating out to Biggie you know eating out includes going for the coffee shop you know going to the in Indiana<br> through the drive-thru and stuff like that you're bringing lunch to get better nutrients unites way down you have less weight added to your body but more importantly you could reduce the amount of spending that you have some extra money nothing wrong with the side gig many people drive for Uber Lyft or many other places that make 56 $7 a month to help next shop around we talked about before there's nothing wrong also with adjusting your budget line sometimes expenses will go up cuz he got medical expenses I just the budget lines make sure goes into the right place and the last thing is most important<br> track your transactions if you keep tracking your transactions you're going to be able to stamp a swarm portly you want to set some goals hey I want to be here I want to reduce this by this much I had one couple we help with this and they had dinner vacation in five years and we showed them where they can go to find and plan for vacation but we also showed him how they can just give money a job<br> in six months later they were able to take their whole family on vacation the first one in five years and now they go to to every single year cuz they plan for it and they're not wasting money so you could do this to this is one of those wonderful ways that you can update your budget to adjust for inflation I want to thank you all for joining us here on saving with Steve I hope you stay safe stay healthy will look forward to seeing you next week bye bye<br> 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 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 with Steve show hosted by Steve Sexton<br> everyone has their own unique views and need 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 today 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 healthy relationship with money now here is your host of saving with Steve Dave Sexton where we talked about the ins-and-outs of money pretty much everything in the past and that relate to you having a happy healthy relationship with money for more information you can always go to the website that saving with Steve. Us website you can also check us out on Facebook and get<br> let's 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 assets that you have today. About 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 federal income taxes during 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 retirement tax simulator call the retirement Tax Savers tool the tool shows how and when money is withdrawn from retirement account and how you can have an enormous impact on your taxes and he thought the information is important enough to share<br> 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 this cool book is called him Savvy saver to Smart spender how to pick a Housewives retirement withdrawal strategies Scott wonderful razoo's and you don't want I want to introduce everybody to Daniel McDonald Daniel welcome to the show he did a lawyer for 36 years he 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 year in Minnesota for 2015 obviously presented and defended many people a million-dollar cases he's also recertified retirement planner with Dave Ramsey show is really interesting he's a financial coach lawyer that again I want to welcome you to show Daniel thanks for being with us.<br> play she's got to go together it doesn't it<br> 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 you want if you're interested in getting his butt so I wanted to make sure everybody knows that front before we kick it off and start asking some serious questions got you to the point where you went from being a lawyer to becoming a Certified Financial coach with Jade Ramsey well it has a lot to do I have the pleasure of representing for those thirty-five years I pretended to work for small companies large companies bailout of inventors that intellectual property lines but I did so I was representing and they were Greeks my it 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 I was envious of their creativity on things so it's always that nice bucket list I wanted to tell me something I wanted to be an author and Creed some some works of authorship and so I got a patent or two we can talk about that if you like it's is not going to change the world but it was a little sad that I came up with<br> 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 have that aha moment to the book The Alchemist about writing a book this is the topic so let's get right into it I'm just going to start out with our viewers list of questions here conventionalism we talked about waiting to use tax if her 401k or IRA account until required minimum distributions begin and obviously beginning at age 73 now that you know what you can actually lead into paying more taxes and you need to help us understand what would be a good strategy to move forward with something like that in person when I learn things so I'm going to try to paint a little digital picture for you here it's the Orion come over to your life this graph of the years go across the bottom of the dollars go up and down from you 3265 or whatever you're going to retire in in the number keeps going up hopefully for a while baby is off for a while but it's up there<br> pretty good so I thought maybe upper left part of what I'm going to call the you curb okay it's about the time you're wrapping up work and just making a lot of money life is great from that standpoint and then you stop working if you retire and then you have a big drop-off in the snow that we 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 taxes for a while but then we got this a lot of people anyway and why is that well it has to do with the fact that it when he hit now is you say it's 73 at 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 or not you pretty much have to unless you want to pay a heck of a big tent penalty to the IRS so now that text in LinkedIn can go up it goes enough awesome because you start taking social security at some point in their probably mid-to-late sixties or seventies and put it off until 70 and I think I always appreciate it but Social Security definitely can be taxed if you<br> mother taxable income and especially so I'll just let you get pay more taxes on the upper right side of that you again you enjoy that Lord text. For a little while there but you can hammer it again a little later after your 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 have to take it out then does he have to wait until then I'm going to take it out sooner you can make it a smooth curve a flat curve ish and then you can also plan out and lower your tax rates over the course of retirement I think it's wonderful especially now that required minimum distributions went from 72/2 to 72 to 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 the position now<br> we 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 your not so there's a lot of Revenue that goes to the federal government there and in which you're talkin about his kind of leveling out that distribution so you can keep the tax of 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 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 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 hold more money even at the same level of income so that's one way I meet in the other what is historically where<br> the lowest income tax rates we've had and probably 50 years right now so is there a chance that our friends in Congress made monkey with it that it's some point and move those numbers up in addition to the kicker that happens 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 check it out sooner before that hits 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 a result I could save thousands of dollars and Taxation over the 70. Of time could you try to unravel that a little bit for us as well cuz I know you just touched on it there in a second ago so that text saver that I have it the website retirement tax avery.com you can put in your ass if that you got and it could be from a variety of sources you have your 401k or IRA retirement<br> hopefully you got some other sources of income to do maybe save some other money up in another account that might have be in bonds and mutual funds or something you might have a Social Security send a pension if after all those things in a basically what the 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 or 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 let's say when I get by the time I'm 80 or 90 that's something that was our kind of the benchmarks I use for my calculator please save in the longer run and pay in taxes in the short run might be okay if you end up saving a lot more in the long run that's the bottom line<br> I agree especially with the 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 prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton host of the saving with Steve show where did he talk about the in an ounce 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 host Steve Sexton<br> little welcome back to the shaving with 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 I encourage you to subscribe to our YouTube channel or 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 these got this wonderful book you want to check out it's called The Savvy saver to Smart spender how to pickle tax-wise retirement withdrawal strategy and Daniel working people get your book the easiest ways to go on Amazon and just start typing in from Savvy is that narrows it down pretty quick and just click on it and take<br> from there okay so now we've been talking about loving the outer 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 car. So it's important to take a few steps down one of the questions at my viewers have is finding out which state's tax Social Security and Hound with Ross or added you can say to even more if you live in a state with income taxes so I'd love to hear your thoughts on that because we all know that you get taxed since 1983 or 1984 when the Greenspan commission completed that's when you got the provisional income tax threshold in the provisional income tax for people and people make running grumbling about that ever since so I'd love to hear your thoughts on that<br> emergency. You guys made it where you live you're going to be subject to taxes on your Social Security at the federal level and what do 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 your Social Security's can start to get taxed in text a lot don't index with inflation some more and more people get sucked into that sucked up by a 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 1 and number 2 you're right there are 12 states that are all listed in the book I don't know if you want me to listen to I can tell you my by former home state is Minnesota in Florida and I I love Florida for whatever they're too right now in Minnesota Missouri<br> Nebraska New Mexico North Dakota Rhode Island Vermont West Virginia I think Mike to have just been changing a lot I got to double-check that the West Virginia was texting I think as of this year they might not be<br> that's the list right there a lot of states that don't have any income taxes if Social Security in that those are they don't tax Social Security 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 quite frankly it's just eggshell or surveys show that almost 96% of country are saying he was going to go up we know that we have the sun setting they actually think they're going to go out farther than that there's a lot of people out there going you know what can I do even though they might talk to a CPA and no plate on CPAs most CPAs they're they're really good at preparing a tax return and they're asking if you get this deduction of that seduction but when it<br> to planning for the future that's not really in there funnel so to speak where are you looking at how would you see that fit four people actually address this issue and I guess the cynical part of being in 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 encouraging him to start taking it out sooner so then that's where my skepticism, strong but so I had to kind of figure this out myself and that's why I have the aha moment that I mentioned earlier that led to the book is when I decided I needed to create my own calculator and when I got to help my son was a computer science guy electrical engineering degree from the 80s<br> my son-in-law we did the numbers and that's when I realized others can have a big impact here if we start taking out those withdrawals before the rmd age one of the things that was the theory that I was testing as well let's look at the tax bracket so 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 you know what the amount that would be subject to a standard deduction that's around 30,000 that first a sense about 20 then you get to 12008 about fifty and yeah that 12% bracket for about $6,000 in between there so you have all these steps and then some of them are pretty big job so it let's say I've been looking at having $70,000 in taxable income if my next tax break is Leslie at $100,000 that's what I'm going to go into the next bracket what if I took $3,000 out of my IRA and State<br> and now we're trying to maximize that bracket take every dollar I can at that lower rate before I take that next dollar at the higher rate that is where you're going to be saving taxes substantially over the longer-term so use up the tax brackets your aunt I referred to in the Pug use it or lose it because it's about tax bracket this year is this year's going to be next year when somebody does that if they don't need the money does it make sense to do a Roth conversion then go right to meet your expenses you might want to do this but there certainly are four scenarios for 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 but boy what a bonus it is if you can take some of that money and put it into a Roth because then it sits blessed for the rest of its life by the eye<br> arrested near you convert it but it'll never be texted again if you can grow and grow and grow and have some other benefits to Federal retirement standpoint that I'm not going to go into logistic growth in and text me when you withdraw it whatever you choose to do that which you don't necessarily if it's in a Roth IRA you don't have to withdraw it and any particular moment a lot of big benefits to a Roth IRA so definitely do you have a chance in you have the money to pay those taxes up front and do that conversion it's got some some great tax benefits 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 games but if say for example you're married and your mother married brackets 89000 4:50 but if you're like 89,000<br> it may be a little bummed that but that incomes coming from Social Security and then the rest of his coming from dividends and capital gains if you're under the 89000 now your capital gains and dividends are taxable cuz it's a it's in the 12% bracket so essentially you can be just paying taxes on Social Security minus 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 in the future can benefit you like you spell beans taxes if you can manage those tax brackets today and be in lower tax brackets in the future and lower taxable income bracket for capital gains taxes in the future as well so that likes ability in the future if you're planning on a big capital gains this year you're going to sell something that's a lot of money you know maybe this isn't the year to do that big Roth conversion of its going to check you into it<br> bracket writing this isn't a one-size-fits-all situation and that's part of the flexibility I offer with the calculator online it doesn't just say hey to use it it gives you some flexibility there just to look at different numbers and see what your comfort zone is and maybe you have some reasons he wouldn't want it necessarily maximize your withdrawal this year did Lexus LC how do you take maybe less than the optimum number in so you can get the mix and match your your own approach a little bit that way we have about 30 40 seconds I just want to encourage people you're looking at a way to reduce or 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 Savvy Savers to start Spenders how to pick a tax-wise retirement withdrawal strategy you can go to Amazon obviously that Lincoln<br> on our website I'll just give to the struggling to Amazon so you can get Daniels book Daniels you have any thoughts for everybody before we go I was actually pleasure to have you because the things that you're talking about make a difference to every single one of her listening so thank you very very much and hope you have a wonderful day and would like to have you back again thank you to take a break stick with us we'll be back with more shaving Mesquite<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 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 as 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 host Steve Sexton hey welcome back to the same with Steve shall we talk about the ins-and-outs of money pretty much everything under the sun the release of you having a happier healthy relationship with money getting my name is Steve sex and I want to thank you for joining us and 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 just one scam that's chinder all those dating sites and it's called the swipe rights Camp okay and basic what happens is you swipe right on some attractive man or a woman on a dating app the app instantly matches you with them you start up a conversation with the alleged female or male quickly<br> take the conversation off the platform onto a texting app such as 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 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 encourage you to take Advanced to the exclusive opportunity all you need to do is to deposit money that crypto trading platform but once you make the deposit the money is gone forever your new Love Blocks you and all the platform stops replying to the whole shot this is been reported to Better Business Bureau all sorts of places usually one of the big things here is dis after talking to one woman on Tinder person been spayed her to invest in a fake trading currency platform when she would try to withdraw the money the funds are automatically reverse back into his account the feature was a Ledge<br> security system issue to Pal 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's 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 scam were there actually is faler 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 the 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 hey we want $200,000 in taxes she then had to report to scan to protect yourself never send money or personal information to anyone you've not met in person community<br> if it's a love interest appears to be in a hurry to get off the dating app to secure you want a chap at or it's a red flag asking specific questions about details given in your profile basic words scammers do if they want to get as much detail as out you as possible so if they get a little bit information and then 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 t.i. tineye.com or images.google.com again that can I die, or images.google.com to see if their profile picture actually matches the person because 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<br> over the bridge 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 the misses 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 lick however you must stay calm and take a closer look on a closer inspection you'll likely find 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 will discover that doesn't point to Facebook website if you click the link you likely taken to official-looking page pump you complete a form to appeal the violation you'll be asked for your login for your phone number or email in the page or 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 that came log into your<br> 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 getting us here in this tax time phishing emails to verify your information to phone calls demanding your tax payment 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 on your social security number has been suspended or filing a ghost tax return for you which could delay getting your fax return and file next receiving emails requesting additional tax information Iris doesn't send you emails they don't call you fake IRS messages saying you owe a larger number unemployment and stimulus fraud there's a ton of them big things to know about tax IRS doesn't call you Dana I email you they send you letters and if 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<br> 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 76 up on me. I hope you have a wonderful week stay safe and be healthy we'll see you next time bye bye 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. You are that 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 with Steve show hosted by Steve Sexton<br>