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 a thousand 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 we talked about the ins-and-outs of money pretty much everything under the sun that relates you having a happier healthier relationship with money so the only piece of property maybe rental property and you know what you're tired of tenants trash toilets you're tired of your state regulation anyone else but you do know how to deal with the taxes that's why we have been elected to hear the CEO of Exeter 1031 and Trust Company she's going to walk us through it and we're talking about maximizing Social Security how to make sure your New Year's resolution sticks and how to deal with that affect how to cure that New Year's dead hangover without I want interviews everybody to Bill X her bill
thanks for joining us on the show today because you know what you are so accomplished and you educate people all the time but I just want to be sure a couple kidnaps not the whole resume if that's okay Bill is a professional speaker author and a continuing education instructor when it comes to be there tax Cody isobaric bear with me I don't want to bore everybody trying to start but 1031 exchanges 1033 changes people have had tenants-in-common commonly known as a Warrior from it possibly hurt or not heard about Delaware statutory Trust on bill is so experienced in the 1031 exchange world is firm is done over a hundred twenty five thousand of them on top of that he's a trusted fiduciary he's an expert witness testimony he works with a lobbyist for this organization so we've just got to World of information here
and quite frankly we're going to try and squeeze every ounce of it out of them again I want to thank you for joining our show and don't know your what can you provide a basic overview a 1031 exchange tell what it is also in a rental property and just got up in value in 3 4 5 years later they decide I really like this rental property business I am ready to do a 4-Plex they're going to sell their single family and they meet with their accountant and that's when they get the OMG on taxes and how much they can have to pay and that's where the accountant says you should look at a 1031 exchange and that allows them to sell a single-family just for the payment of all their taxes all their capital gain depreciation recapture and Medicare surcharge by reinvesting and other replacement property so
most investors will sell wine in in buy up with that mean by a multi-family get a duplex and fourplex or was that means by two or three or four single-family Diversified their wrist diversify your cash flow all about building Network on net investment tax Oral-B or Sonicare text but it's called and what people don't quite realize if that's about 38% of your profit and that's a big hole my God like you said it's really interesting I was like oh yeah I think people need to know that you know what why would people look to do a 1031 we talked about the tax benefits what other benefits are there in retirement
I won or buy something it's easier to manage your building something that you mention the Delaware statutory trust things like that others that especially when they're younger you're building your well you may sell one and buy two or three and your diversify your portfolio getting ready to go into a recession you might be position to take advantage of a great way to reposition depending on what your goals and objectives are time and when you pass all of you leave the property to your are your kids grandkids so that they get a step-up in cost basis so the capital gain goes away the depreciation recapture goes away
know your first couple questions California there when it comes to landlords they're not very kind of landlords there there the regulations are more for beneficial for the tenants especially when you see things right now where people can evict people they're not allowed to go to the court so many people look to sell can they 1031 exchange into another state all 50 states would be it would qualify in US Virgin Islands qualifies so it gives you a great way to avoid or get rid of her or get out of the state that has very unstable business climb and was shortly seen a lot of clients leave California some International clients just from our past conversations so for example we have an affiliate call UK help radio in London England if somebody were to look to do some sort of exchange from you
what states is the UK or vice versa is that possible it's good question if if they are selling a US property they can't stand it when it came to a foreign and said it has to be in the u.s. per us or it can be for a newborn in a lot of the stuff you read on the internet out there will pay you can't do it for and property and see what they mean is you can't sell us and by Foreign or sell foreign by you us but you can sell foreign rental property in exchange in the other forms of property but it won't defer any of the foreign country jacket or should pay in whatever you would pay in those countries but it will defer the USB you really have to figure out what your u.s. tax consequences and see if it's worth doing it's okay there's a lot of do I should be back up so there's really two issues that we talked about a lot when is Paula FICA you so that means all the properties they sell all the properties they buy have to be a helper rental and dust in your business
I'm in the second is like kind property and that's what is a lot of misinformation out there again State and you have to buy something that is also real estate but there's a wouldn't normally think would qualify as like such as a fractional ownership do I get pain in common structure oil and gas interests mineral rights are Ride water rides suffix example in this is just I want to throw this out there because I know a gentleman that what he does is he rents and leases out as plain and he's in a position where he hits he's down with the plane and he said you know I got this depreciation it's still worth some money Smiley worth as much before but that 197 depreciation is very significant 10 he 1031 that plane into a
another plane glad you brought that up cuz he used to be able to but the tax reform Act of 2017 eliminated personal property so now the only type of asset you can exchange this real estate aircraft exchanges but that's gone but always an issue station accelerated depreciation things like that visor and or account would have to walk them to see what that might be and you just see what the tax consequences might be there so and I've got to ask this because this is a very question again if you're watching us you can go to viewers at Sandy was Steve. Us and ask a question and we'll get it answered we kind of sneaked out that you were coming on the show so one person asks question Church rinse out his boat or Charter and it's a business and he's looking at doing a 1031 exchange because obvious
boats that were this much but again he's got that massive amount of depreciation can he go from one boat to the next inside that business or after using a 1031 exchange used to be able to see the tax reform Act of limiting that so that unfortunate Eliminator boats than anything is not considered real property and you have a quarry they're selling the Quarry they want to use the proceeds from Macquarie to maybe buy rental properties do they have the ability to do something like that absolutely probably all going to be considered real property and personal property located on the equipment Trucking whatever could be considered real estate so that would certainly qualify as like kind of other real estate right way to get out of something to maybe it's not producing as much income as you like it do any more something that would produce more so and you know what I just want to point this out there out there that have kids that no longer want to opt
the farm after 4:50 or 6 years and they can actually sell their Farm 1031 exchange into a Home Depot Lowe's or something like that through Delaware statutory trust or become part of an LLC that holds real estate or 10 and come in if they want really good example we have a lot of clients that are farmers and exactly what we see the kids don't want to carry on the tradition and you see a lot of the independent selling to the corporate farms and what have you and begin selling farm or Ranch land or Kimberly that is considered a rental investment or business use property so if it qualifies a stop at all that stuff mr. Biden obviously president-elect has proposed to restrict or limit the use of 1031 exchanges you don't really mean
this is not a political issue in terms of Democrats and Republicans versus each other what have you been doing this for 36 years every 3 4 5 years almost every Administration is proposing to change Congress has proposed some kind of changed us more about educating Congress as to what the benefits are and why they should not go away what what the president has proposed March free covid-19 so we don't know if any of this would change because now we're fighting a pretty destructive disease but what if your adjusted gross income for $2,000 or more people don't realize it's normally when they Define how much you make is adjusted gross income and part of adjusted gross income is your Capital if you sell real estate in a lot of cases
push you right over the $400,000 adjusted gross income just for that year and you may not qualify for 1031 exchange see what he's trying to tell people actually most of the exchange clients are not wealthy there just you and Eye Joe Blow I've got two or three or four rental properties and it actually could have heard the average investor so we obviously taken seriously and we have I think it's either 60 maybe even 18 industry trade goods now that a former Coalition specifically to educate Congress on the benefits of 1031 how they actually were and what the devastating effect would be not just a real estate but the entire economy is at 10314 to go away you can get bills 1031 exchange guy that the great feast of education and information so you can get more educated on 10/31 hey we're going to pay some bills stick with us we'll be right back
expert advice for having a happier relationship with money still to come on the saving with Steve show
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 sex and post of the saving with Steve show where did he talk about the ins-and-outs of money was 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 on 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 the tune into 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
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
what's on the news you to have a healthier have a relationship with money now I truly want to thank everybody who's tuning in I appreciate you letting your friends family Associates know about the show all the replays are available in the US that sitting with Steve. Us if you're enjoying the stories of helpful information and insight on shaving with Steve I encourage you to subscribe to your YouTube channel so never misses show check out a few of our UK help radio CBS radio talk radio New York City e360tv Las Vegas TV network and all of these networks are dedicated to empower you to solve problems uplift your spirits and healthy little life of Financial and personal freedom also you can follow us up at shaving with Steve Sexton Facebook you can get subscribed there please follow us a scribe I will make sure you get all the great contact information things like Bill's books and I bill at the lecture I want to thank you and welcome you back to the show again bill has been helping us out with 1031 exchanges a second half of
segments here we want to talk about self-directed Ira questions okay a lot of people don't understand what a self-directed IRA is Bill again welcome back to the show okay let's start out what does the term self-directed Ira really mean that's a great question because a lot of bugs don't really realize it but from my perspective all IRAs or self-directed where to put the IRA and they may choose to put the Iran a Commercial Bank and they Dustin certificates of deposit a money market funds are they choose to put it with a Securities brokerage firm and Trust Company boils down to what does the IRA custodian allow them to invest in and that's what differentiates all the industries kind of used for coined the term self-directed Ira to mean those Ira custodians that allow we call alternative investment or non-traditional and on standard Investments other than that
publicly traded okay so I'm going to boil it down a little more simple weather year with Suave Fidelity Exeter trust company or any other with called a broker-dealer or custodian in East custodian says hey we have a list of investment that you can pick and choose from and if they don't allow Delaware statutory trust they don't they don't allow stocks they don't if they don't allow some of them some of them are very little so when when people look at a self-directed IRA you even if you have a 401k you self-direct it because you pick and choose that investment it just depends on which ones are available I frankly courting regulation most 401 Kaiser only required to have three different investment a money market a bond fund and a growth fund that's it so when you're looking a self-directed IRA if you want to look around especially if you're going to make an investment and do something that might be non traditional the one that's going to give you the best terms so I am I right now bill
how about a self-directed IRA maybe I just spilled the beans on that I don't know
it's kind of confused as what should I do so I think the investor first needs to sit down with her financial advisor really decide Hill what do you want to invest in what are you interested in what do you have a passion for so a lot of people through their Ira or 401K stocks and bonds and mutual funds and that's what they're comfortable with and they made a lot of money in real estate and they don't like stocks bonds mutual funds that they don't understand that what are you comfortable with what do you want to invest in do you want to diversify portfolio one of our clients are real estate guys are there sirens do teams that are really in the stocks bonds and mutual funds like Schwab and Fidelity is heparin TD Ameritrade
are roly Ira over to us and buy real estate to invest in mortgages are beans a transfer tax lien certificates and things like that I would choose somebody like us to invest in that what you want to invest in first and then go and look for the right Ira custodian who's got the expertise that they need to buy a home in their self directed IRA and live it in good question and lots of folks try but you can't have anything any business dealings or investment dealings between yourself as a person or individual and your own IRS prohibited transaction so you can buy a home and live in it you can't lend yourself money you can't go to the bank and borrow money and fled your IRA as collateral those are all prohibited because of self-healing more prohibited transactions and then just those that that gives you kind of flavor what you shouldn't be doing a little bit from time to time we have
come into my office and let people know I do Vamps tax plan and what they've done is they have a son who has a wonderful company and what they will do is the father will stay here I want to invest in your company and what I will do is set up an LLC or S up record IRA and buy shares in your company can that be done relatively easily is at 1 so when the company is being born there are no investors initially thought that point father-son family whoever can all both go in as long as they go in and discuss at a daiquiri the same time there wouldn't be a prohibited transaction into others all sorts of other planning possibilities that might work but they have to look at is it a disregarded entity. I just forgot a party to a party and what do is Creighton Creighton prohibited transaction that's what's really important to drill down and look at the proposal structure to see if
there's many people who have utilize their Ira to acquire rental properties and they put it inside there is it best to set up the rental property in like an LLC and then put the shares inside of your self-directed IRA if something goes wrong with rental property and they want us to the owner the owner if you own it directly or IRA has the IRS and they will sing of your IRA in Jeopardy having the IRS form an LLC capitalize Yellowfin have the elephant go by the real estate put that legal barrier there to help and protect your IRA some people like to do the Irish structures of the IRA can be managed by them and have a checkbook and the way they can respond very quickly to real estate-related and Dustin would have to write a check and get a dump pass is a lot of Frozen
you talk about that cuz I have no people have got in trouble with that you're the biggest risk there is not the structure but the fact that investors don't know what they don't know and they may write a check and you something that that you are prohibited transaction They don't know about us going to the LLC and not directly to the IRA we don't have to if you don't know what you're doing okay property in a self-directed IRA it's important that you understand the process in the reporting and the documentation is required otherwise you know the IRS is just going to think you took money out for yourself absolutely is there a number that you don't own the real estate the IRA does and all the revenue has to go into the IRA all the expenses have to be paid by the IRA and if it's 59 and 1/2 you could get a penalty for that as well as the distribution plus the taxes on the distribution and so on okay so that's really really good why would an investor want to invest in an alternative investment or not
additional are not standard investment what is a some investors are very comfortable with a specific investment miss wetherby realestateu or cryptocurrencies supper and they want to invest what they know what they understand and then they can make more money doing that and they don't necessarily understand the companies that are publicly traded so they they want to get away from publicly traded houses and get him something he really no other market so I'm Diversified the one market goes down and got the other Market going up someone complete control over their Ira they want to invest in things I can go out and touch and see and feel it separate so it's more of the they want to go out in and drive their own car basically take so I want to know we got about a minute have left but I want to talk about extra 1031 compared to other traditional qualified intermediary why is there a difference between
what you doing what they do I I know it because I've seen you missing you say people before us over please help us understand that 99% are not licensed regulator for audited by anybody there's no government oversight sorry I think our biggest company which means we are one of the few qualified intermediaries that has direct oversight over the years difference between us and a lot of the other issues and other clients and things like that were most qualified intermediary
save because somebody that wasn't qualified tried to do the intermediary stuff and it just quite frankly didn't work out because they didn't know all the ins and outs like you guys do I want to thank you for joining us today how can people get to you what's your website please share that with us sure you could not email me directly if you'd like at w Exeter at Exeter co.com or you can also use our general email with his Compass a s k a t e x e t e r c o.com. You can call me at +61-923-930-9119 to 39091 or go to our website Exeter, New Oliver contact information is out there if you're interested in this go to exeter.com just so you can get the education because there's a lot of Education they're just by downloading the 1031 guy by looking at the ins-and-outs of things I love the education fees cuz it makes
the difference between just means you're not selling your just educating which is great thank you for joining us today to look for future and Jen have a great 2021 cr450r talking about 1031 exchanges and self-directed Ira is very important if you're looking at investing if anything that you go about talking with a financial adviser you learn all the ins and outs more expert advice for having a happier relationship with money still to come on the saving with Steve show
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 in an ounce of money does 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 into 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
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 show this is Steve Sexton with the saving with Steve show where we talked about the ins-and-outs of money that was Bill Exeter we had if you were looking to get his Exeter 1031 exchange guys the one I put up on the screen just go to ww.w. Exeter Exeter co.com it's a best piece of Education when it comes to 1031 exchanges again I can't say this enough if you're looking at alternative Investments were there real estate-related weather there gold mineral diamonds whatever anything alternative non-standard non-traditional you want to sit down there and you know exactly what you're getting into before you do know the players look at the balance sheet understand how it works what do you can have make-up sex would be you know what you did last thing I want to do is invest in a piece of property where a major player in the industry's going going away you know what you just go to Amana Iowa Whirlpool move I mean there's tens of thousands of jobs that are no longer
Darren multiple trickle-down effect because of stuff like that and if you were looking at a non-traditional investment in that area you might not have the economically footprint to make it work so if you know that advanced all the difference in the world so all I'm saying is get a little bit educated you don't have to be down in the weed but if you understand how it worked one of the influences our and make it work or be a positive asset will make a big difference in your life now we're going to be talking about a couple things that we for we do I want to thank you for tuning in I appreciate you letting your friends family Associates know about the show you know what all the replays are available at ww.w dating with Steve. USA gymnast WWE dating with Steve at you as you can please join our Facebook page at saving was Steve Sexton go again that's saving was Steve Sexton that means you'll be able to get all the information any download any special gifts that our guests are beginning giving out extra little things for you I want to take this time to have
check out our Affiliates at UK help radio CBS radio talk radio New York City e360tv and Las Vegas TV networks all these networks as I said before a dedicated to a are you to solve problems uplift your spirit and live a life of Financial and personal freedom let's move on to the next level segments here now what we want to do is we want to talk about this 2021 New Year's resolution resolution less than 40% of people who said a New Year's resolution ball through it throughout the year in fact seven and 10 people surveyed say they have no plans to continue along their continue with their New Year's resolution throughout the whole year so I want to just caught a little Ben Franklin here he says Hey East with your neighbors and every new year be a better man or woman so when we take a look at that we say okay so what are your New Year's resolutions what are the things that are important
we think about what you mean doing the first thing we want to do is get educated okay we want to paint a working knowledge of potential strategy services and financial products now you can do this like going to the Consumer Financial Protection Bureau that's the cfpb Consumer Financial Protection Bureau you'll find information about mortgages auto loan credit card personal loan retirement accounts annuities all sorts of things so you can get a basic understanding what's going on once you have that basic understanding you can utilize that information to make better informed decisions ask better questions that's number one and if you do you'll be in a better position to reach your goal next you want to prioritize your goal okay you want to make sure they're manageable and relist once you nothing you want to make sure you have an accountability partner which means you need to tell somebody whether to be your wife whether to be your girlfriend your fiance weather that to be your buddy at the office
order your neighbor or your friend somebody that can make you accountable to inspect what you expect so you can get to where you want to go Thomas like working out with a buddy kind first episode of your financial plan if you want to hate here's my goal what am I says receiving that got that one two three four five eight sleep sounds really simple write the next step is to set a date so if you're developing a bus in analyzing it every single month to look for additional savings you want to put that in the counter you want to schedule it if that's once a week or once a month so be it go do that okay and then you want to complete each action steps set time to work with Dad that accountability partner when we start doing these things you do a lot of people say hey want to save more as a New Year's resolution exactly what we're spending a lot of people
just don't know and you want to get as detailed as possible this because it's the little things matter so that means what you're spending eating out how much you putting how much gas you put in the car you're capable of your cell phone bill how much you are dining out every little expense from the utilities to whatever the case maybe even ask that wine club everything listed all down there then what you want to do is you look at the things that you're not using it was interesting it was funny cuz my wife and I were talking about this in December we were looking at our bills and last March I talked to her about this Fitness at she got because she had wanted to create a new year's resolution to lose weight now I just need to lose the way she look beautiful she is in quite frankly I doubt part of my coverage if you're using a football euphemism and you know what I tell you didn't really need to do that but she felt she needed to she started paying for the sap and she hadn't used it I said hey have you used it you know if not let's let's get rid of it just know I plan to use it I need to do something to drink obit + here we are at the end of the year we had this little discussion she started laughing because you know what
she was just got rid of that Mark is it just haven't used it so all I'm saying to you is if you haven't you something in a month or so and you can't pinpoint and put it on the schedule that direction to use it and lemonade if you know what they are at 10:20 bucks it's a little bit but you gotta understand every little bit counts so let's talk a little bit more and you have copy of three bucks to cut okay well what if I were to buy 120 Keurig cups from Costco at 30 $35 by $5 worth of creamer so I can have the copy that I want and you know what instead of paying $3 a cup now I'm paying $0.40 from Taven a ton of money each and every month doing that when it comes to eating out and I'm not saying what I am saying is you might want to curtail it back a little bit by a better job planning your meal know I've seen people save as much as three or four hundred dollars a month for cutting back to eating out and I've also seen them lose it from Ennis out a way which means our physical health gets better as well don't think about those things mixing paint what are we spending can we continue doing the things that were doing butt stuff
plus we sure can't look at the cell phone bill now this is quite interesting cuz we did this is a family because we looked at the cell phone bills and said hey you know what we're with one of the major carrier we went with one of the smaller carry a network that the major carriers on we got the same service as nothing to any different the only difference is we're not on a contract that we're paying $20 less per person is $80 a month we looked at her cable how many people have all these packages with her cable they're paying 250 $300 a month we were too but when I started doing the research and I found out that I can just get internet for $96 5499 to 18 T lie and buy a couple Netflix star or Hulu and so on I can now have all the same stuff but at $120 less so I control that I'm saving one look at you and this is a great time to look at mortgages but paint would 1/2 to 2.75 instead of three and a quarter of 4 you know what you can save a tremendous amount of money on your monthly payment as well as less interest on the launch ramp and quite frankly
weather in the same payment on your mortgage off early if you want to tell those are just a few things you want to look at that on all your expenses and then you want to look at him how much can I save now do I need to split set aside money into emergency fund or I'm looking to save more in my 401k for my kids college or whatever it is but the next step is really important you want to put it on automatic keep your chicken with Ross for a 401k through your payroll deduction to a deck into another checking account to save for a house to save for a car the Safer travel the same for your kids college if you put it on automatic it's going to happen anyways and you're going to forget about it which means you're going to talk with your call but not a lot of work and that allow you to get through your 2021 resolution get with us we got a whole bunch more to come we're going to talk about the New Year's Eve get here we're going to talk about maximizing Social Security and we already had Alexa turn on the stick with it right back more expert advice for having a happier relationship with money still to come on the saving with Steve show
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 sex and 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 associated 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 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
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 welcome back to the show I want to thank everybody for joining us again I can't thank you enough for tuning in letting your friends no family Associates know about the show again if you would like to follow us please follow up with Steve Sexton on Facebook or go to shaving with Steve. You asked if you have questions you would like us to do segment it doesn't matter what it's on as long as it's related to money or helping people have a better positive life personally and financially ask the question just go to viewers at stadium with Steve. USS viewers at sitting with Steve. Us ask your questions will get it out of the air we do it today we'll do it again for you whether you're in the u.s. in the UK anywhere around the world where The Show Goes were there to help again I want to spend
special thanks to our Network Partners UK help radio BBS talk radio talk radio New York City e360tv in Las Vegas TV network again it's all about having some problems and uplifting your spirit give me a life of financial personal freedom now let's move on to the next segment hear it's really interesting we had last year was a tough year in 2020 we had people on the verge of losing job some people lost their jobs are people kept it there so concerned about losing their job you've got people who took it on more debt affect the average expense for people during the Christmas time was $941 feet and most of that went on a credit card so we're looking at oh my God I got a credit card hangover what do I do now so let's look at it happens more often than not but I want to point something out think of life like this in this little statement it's always better to earn in interest and paying interest I get it your daddy built things up things happen it's a
Jordan to start looking at how I can go about getting out of that jet because of the less that you have more money you have to move towards things are important to you don't get me wrong dad is a great if you use it wisely times people quite frankly they don't use it while and they slowly but surely get themselves in that in a little bit of trouble they have more pressure and the chart on that treadmill that trend on it just keeps going faster and faster in get more and more pressure you could end up with a hairline like mine now here's what you want to start looking at if you're looking to cure that jet Hangar number one you want to list all your debt I'm talking your credit card for personal loans your auto loan on your mortgages you want to listen Mall second thing you want to do what you want to create a column for the balance start with the lowest balance to the highest Bounty been looking look at the interest rate and then look at the minimum payment and then you want to look at the date that you want to make sure the Bliss of which one you'd like to pay off first some people like to pass away
dad has the highest interest rate for others like to pay the loan off with the least amount of debt because they want an easy win a sequence in case they want to create momentum as well as opposed to grind through the one that has the highest death but also has the highest interest rate okay could be a while before you get a win now let's just go by the way of the one with the smallest Debt Pay the smallest balance so here's what you want to do you want to pay the lowest minimum payment you can make on all the other credit cards and all the other death except for the one with the smallest down then what you want to do if you want to pay as much as you possibly can if that's an extra $100 a month $50 whatever it is and what you want to do if you want to keep doing it keep doing it until it's paid off once it's paid off then you're going to add what you're paying on the first one to the second one so let's the regular payments two hundred bucks but your pain free and you finish paying off $300 in the minimum payment on the balance is $100 so now you're paying $400 on the second one
and then you pay off that second one you taking it $400 and adding it to the third one and you're continuing on and on and pretty soon you might be making $1,000 payment but you know what you're paying that last one off in 5 months in your debt read my credit card stand for then you can start working on the personal loans and they are not alone sometimes it makes sense to pay off the mortgage sometimes it doesn't so it's important to have a conversation with a financial advisor do how do I go find that money real simple we were just talking about setting a goal for expense reduction so you can save more talk about that get your Excel spreadsheet you can get an app that will track on your expenses if you want to make sure you're tracking expenses on a monthly basis you want to cut out things like the apps OK the fitness apps for food apps than food delivery app you're the one Club you want to get rid of those things if you're looking at cable channels for streaming channels does Hulu Netflix Amazon all those if you're not using one cancel it get rid of it every little bit counts if you're able to save $100 a month and put that towards building up in a
Regency van in case you lose your job now you're in a better spot if you're able to save $200 a month and you're putting money into an emergency fund and saving more to your 401k better if you're able to say an extra $200 a month and you're putting it towards paying on your credit card so you can reduce the pressure on your debt outstanding that she hears the stick with it now what a lot of people do is that hate I need to get a stye muscle or a side gig okay now you can go and check on the internet if you have a college degree saying English OK or Matt you can go to teron line for 15 to $20 an hour there's a lot of people I had some clients next you've done that through that are in their thirties to pay off their the path are dead or accelerating paying off your debt and basically they figured out how I'm going to make enough money on a monthly basis which is about $1,000 to start paying off more on their debt others have taught talk to people overseas and some people have actually been taught to write this
hot but have the ability to write position paper and provide feedback and also have some degrees and some people they're making $23,000 a year do if your background and experience you might be called in to do her sister Bay because you have no background experience you're going to have to write them up and they pay you significantly for it so go check those things out okay so the other side hustles such as Uber Lyft I just talked to one of my clients who made the mistake of helping out one of the kids with a business and that business end up failing okay and he realize the reasons why it failed and you know what he thought they are probably should have done that cuz if I'd known those things in advance I would have done it but he's figured out that he needs to make at least $40,000 to put back into a savings and he's planning to do that over the next two years by doing Uber and Lyft and make sure he has a solid retirement you can do those things to do all I'm saying is there's a number of side hustles that you can use to reduce or eliminate that debt so the key here is this pain I find out what your budget is find out ways you can
reduce the expenses that you have still do the things you want to do and redirect that has those dollars into paying down your debt get to a point where you're earning interest that pain and it's okay down a couple other special thoughts here's this I find out dining out is a big part of everybody's life and you know what it is for our but we don't have to do it every single meal one client we figured out he was spending an average of $20 per twice a day for 30 days a month so let's do the man $40 a day * 5 days a week. We're looking at $200 per week x 4 weeks $800 a month because I couldn't believe I was wasting that much money did do if he started to get to Costco by the big package of chicken whatever and so on and started planning as meal started buying bigger things in bulk he started making his sounds as opposed to buying a package house for 375 instead of paying 375 for sale in he was out paying 375 for 10 sounds do those things got some Tupperware got a little container
brought it into the office where we does he prepackaged thing and now he's cut his dining out expenses by about $500 - $500 he can use the things that are important Jam like paying off this credit card or pay off an auto loan things like that looking at what you're eating at that what you're buying is stores like I said pre-packaged items are expensive you can get the raw materials eat healthier and be in a position where you have more money in your pocket at the end of the day you can do that with getting rid of ass all sorts of things but I recommend you check your spending those are some of the special chips that I have utilized up in the air on my own situation and had to help clients with as well if you're looking to travel it's really important as well to save money so if you're the best part of your budget I would recommend you go go to Wing done last website I am your Escape now Escape. Com just go to see that book it'll take time to travel to or if you want but you need to stop now go to unhook now.com wonderful blog talk about all the same things waves
wonderful person to give me show you where to go if you want to go for a wonderful vacation or other ways you can do that otherwise you could save money how about refinancing your mortgage at a client was paying 4% and dropped into paying Twitter quarter I think I choose two and a half season almost $1,200 a month on a 15-year fixed and here's the other thing he's figured out that he's going to be able to make the same payment before and supposed to 15 year fixed he's going to be able to head off a extra money that I'm saying it so you can be out of that earlier you can have a more expensive many things you do if you're involved with coded also wonderful time to start talking to your credit card company affected by kovin I've been laid off don't lie to him don't hide from him you need to talk to him cuz you know what they will help that they don't want you to fall in some cases they've lower the interest rate lower the monthly payment as well as taking away some of the decks again they don't want you to do fall hey if you're having issues with your car car loan talk to him tell him what's going on there are four appearances but you need to understand what's going to occur with these are and stuff
like that even if it's on mortgage there's nothing wrong FHA BHA and most mortgage contracts are is a forbearance Clause that allows you to forego payments for 6 to 12 months them cases they're going to ask you to repeat everything at the end of the six months or 12 months or maybe at the end of the 30-year mortgage so you might have a 30 and a half year mortgage cuz you took a happy wrong I just wanted to share those things that one of the best ways to go about sharing that get hangovers get on it right now remember to know what it's always better to earn interest in paying interest so weird that we're going to hold on to the next segment I want to thank you for sticking with us we've got an outstanding Signet next it's all about maximizing Social Security things you need to do if you make sure you get the most out of social security so stick with it we'll be right back here on saving whiskey more expert advice for having a happier relationship with money still to come I'm not saving with Steve show
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 tuna 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
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
hello welcome back to the show I want to thank you all for joining us again just really quick I do really want to thank you for tuning in I appreciate you letting your friends family and Associates know about the show again all the replays are on WWE dating with Steve. Us at the WWE living with Steve. Us if you have a comment if you would like to hear about something if you would like you know what just have a topic discussed go to viewers at staving with Steve. Us and tell us what you're thinking if we can get that question on the air or get that topic on the show will definitely do it with me and we again we want to thank networks like UK help radio BTS Radio 247 AM FM talk-radio New York City e360tv all these networks again are dedicated to empower you to solve problems uplift your spirit will live a life of personal and Financial Freedom YouTube channel subscribe if you want to follow Sit Stay
with Steve Sexton at saving was Steve Saxon Thane police files appreciate you joining the show now we're going to be talking about how to maximize Social Security I think it's really important to understand how Social Security is calculated first of all they're going to take the top 35 burning year they're going to take the top 35 burning it right so if you've been learning for 35 years they're going to take the top one okay if you've been learning for 10 years and you know it minimum you got it would have at least 10 years of pain in the Social Security or forty Corners you know what they're going to take the top chat if you don't have 35-year when was they're going to do with her going to give you 90% they're going to take the average of that so let's say for easy math you have $120,000 is your average earnings for 35 years at $10,000 a month and $76 they're going to take 90% of that and then there's another for the next amount they're going to take 25% of that and then
and that's how your Social Security calculate the top Hill Security payment for full retirement in 2021 is $3,113 the average Social Security payment in 2021 will be $1,596 so obviously there's a big discrepancy there, so I think we need to understand a few other things so let's let's just talk about this now we talked a little bit about how to calculate the next thing that we need to talk about his when's the best time to take Social Security because what you really need to look at is if you're getting 3113 is the maximum age for retirement at age 66 or 67 depending on when you're born at 662 you would only get 70% of that. 63 you would get 75-64 80-65 85-66 you're going to get 90% of that and if your full retirement age is 67 you get 100% of 67 you got to remember you're giving up some of your benefits
if you go over for each year you go over or wait to take your Social Security you're getting into a percent entry okay so that means that if you're getting $1,000 at full retirement you're going to get 1320 approximately at the age of 70 but here's a couple things that we need to understand one if we are taking social security at age 62 we're receiving a pain if we're retired we have to make up that payment somewhere else so if we're getting $2,000 a month at age 62 or $24,000 a year we either have a pension Social Security in those type of things that are going to have to supplement your retirement in order to make up for that the question you want to ask yourself if you want to do this for analysis with a financial advisor and that question when I asked yourself how will that affect my future income in right here I want to share a little secret with retirement is all about the income to do the things you want retirement isn't always so much about the asset yes
assets Ukrainian come but there's many ways we can get guaranteed income it's inflation that you don't have to pay as much acid for it's not all like what you saw with being where they had the big number above your head and say here here's my number now it's really about interview if you want to have income do you think you want retirement and if you can't support that income that we have some problems so we need to take a look at hey between the ages of 62 and 67 or 66 how much am I spending of my principal that could be growing to support me when I'm 82 83 84 85 especially if I have health issues spice pack my wife passes away and someone know there's things that you can do if you are married now if you are married and say for example one person's getting $3,100 a month and Social Security at full retirement and you have the other spouse at full retirement there but old they're only getting 900 there going to be eligible for spousal benefit now
Mary person the one that gets more I asked to be taking their social security but once that person takes that so scary that you know they were getting 900 now they're going to get $1,550 which is a six or seven hundred dollar raise for taking select the spousal benefit that person has the opportunity to continue with a spousal benefit so they're 70 for the rest of their lives depending on what makes sense and some situations we have found that taking a spousal benefit not only benefits the spouse now but they can switch over to their primary benefits at the age of 70 because at 8% increase okay so it's really important take a look at that could we have some people that are just under half other spouse's social security and they take the spousal benefit but their own personal Social Security grows at 8% when so security self Grows by about one and a half so they're getting a bigger raise for their personal Social Security at the age of 70 they switch which allows me to have more money than I had people that have you know it made it is almost
or $500 difference that's 565000 of $6,000 a year that's a 82 $120,000 or a lifetime decision so it's important to make the right decision here OKC you really want to take a look at this sit down with a financial advisor figure it out how to maximize your social security has a calculator that can get your dude at the most financial advisors have it that you want to do that in the context of your retirement is the last thing you want to do is for go $2,500 a month for 4 years a hundred $20,000 and then realized I am 85 years old I'm going to live for another five years but I could have used that $125,000 to grow to be $500,000 to support me when I have a need that money in the next 5 years is that makes sense okay other things no problem if you're younger than full retirement age you can make $18,600 for every $2 makeover that you're going to lose $1 or so security so it's real
hey watch full attention to this understand that's exactly the way it work now if you're a year or less away from your full retirement age so let's say you just turn 66 and next year you turn 67 and you decide you take your Social Security and you're still working you can make $48,800 for every $3 you earn over you lose $1 Social Security that makes it okay so you have the ability to earn more but if you make too much you're going to still have to give a little bit back there's a penalty for that now here's the thing once you pass full retirement age there's no limits or capsules are six and what are they really sting to what they really think you is this you know if you retire early and you want to take your Social Security can't really make that much money but once you hit full retirement pay sky's the limit you can do whatever you want the whole idea here is they want to be to put you in a position where you're taking that a little bit later so they can prolong social security for the next big thing is taxes
if you're single and hair just your your income is less than $25,000 a year pay no tax on your Social Security if it's over $25,000 all the way up to $32,000 paint you're going to pay taxes in up to 50% of your Social Security if it's over that $32,000 or $34,000 I'm sorry you're going to pay tax enough to 85% of your Social Security taxes this is a good time to have your financial advisor and your tax professional on the same thing if you're married if your your earnings are less than about $32,000 you have to pay any taxes on your Social Security between 32 and 44 up to 50% of your Social Security is going to be 10 / 44 up to 85% of your sister is going to be taxed so it's really important that you look at all those things you wanted to start taking the look at those if then you just have a few more minutes so here's the final thought if I know that I'm 62 and I'm going to get $2,000 a month but at 66 or c
E7 I'm going to get $3,100 a month what would it affect my retirement if I go without pay for the next five years taking $24,000 or $125,000 that I would forego but I have to backfill unless I'm working to make up for that and how is that going to affect my retirement what does it mean to me not only now I want to thank you all for joining yesterday will look forward to seeing you next week and with that I want to thank everybody for joining us today I want to thank our neck hurts you can help radio BTS Radio 247 radio with that were to be signing off the same thing with the Savior Steve show we talked about everything under the sun that relates to you having a healthier happy relationship with my decision 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
we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the save with Steve show hosted by Steve Sexton