This is G.B. It's habit forming and. Katie Kelley Howell tells San Jose San Francisco the Bay Area's business leader services. From the Fox Business Network discount brokers could be getting some competition J.P. Morgan Chase is said to be planning a new digital brokerage service that comes with free trades this service would compete with T.D. Ameritrade Charles Schwab and the Trade Financial Market Watch says anyone who downloads the mobile banking app or uses its website can get at least 100 free trades in the 1st near T.J. X. Parent company of T.J. Maxx and Marshall's is reporting a strong quarter sales increased customer traffic improved and it made more money than forecast however J. Jill another fashion chain is reporting a disappointing quarter and its stock is skidding Old Navy is launching a new special plus size collection and $75.00 stores Old Navy says it has offered plus sizes since the stores opened in 1994 with the Fox Business Report I'm sure. 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So do something easy and protected with progressive motorcycle insurance policies loosen the 5 dollars a year and you'll be back on the road in no time is a progressive dot com quote Today press against the insurance company in Philly its annual premium for basic light of the policy not available in all states sponsored by Lucida capital group that's doing strategies for today's needs in tomorrow's goals this is one good strategy investing presented by the wealth advisors at Legia Capital Group here are Johnny Dean and Rick the Professor Plum. Oh OK Welcome to the show yeah I am Johnny game here at the better word bombarded strategy investing and the 4 of activity there before the start of the show I tell you what . We did we had that we did we break the high of the S.N.P. That I see that this morning well not that it matters intraday Yeah so I mean so so there it is if it were to close the club well then we would have a new potential ending point for the the bull run that we've had you know because right now if we if it doesn't close at this level it goes back a little bit and then we're to drop the 20 percent from here yeah well the end of the bull would have been back when Janet Well the bull the bull market stopped aging January 26th until we hit a new high when they write hibernation it's not until you hit a new high that it has extended the end of this run so it has to close because that's just what they say that the other official rules were. So. Let's see do I have that yeah the guidelines. What was it was January something generally the 26th and I want to say it was like that of the 29 at the end of January the end of January doesn't really matter all that much. The chances that the ball will continue I mean I can't see that hitting a high intraday today and then just shooting down from here and never coming back I just don't think that it's going to happen so I suspect that. It will reach the high at which means that it's let's see so it started when March 9th 2009 yes but what we do know right that we know so March 9th of 2009 so it's a remade June July August so what is it 5 more months right plus which would give us 9 years and 5 months. However many months it is I mean what do we care do we really care if it was January 26th. 26th OK with the last high. They got high. Goodness sakes all right but anyway does it really matter you know S. And P. Record high I mean a record high is simply just another you know step another it's just another number doesn't really matter. So we have the record I and the middle of the day we'll see what happens through the end I mean that you know if you're going to if you're going to make you know investment decisions based on this and I know there are people looking at the headlines saying a record high I think it's time to start dumping more my money into the stock market it seems going to go further and further I mean I don't know I think it will go further and further over time when they go further and further tomorrow today next week who knows where about one point at the moment of the high Oh well now it that's it we're on our way down that's that's that's the end of that folks I'm kidding all right now we're about one of the half points of the yeah I just say I just thought I'd pass that is just news I just thought I'd pass that on to you I just saw that as we were coming into the into the studio I know we were close the last couple days. So it's 3000 well how many calendar days and they say 3 isn't actually let's see what is today so in order for the bull to reach 3453 calendar days that would make it the longest bull market according to B.T.N. Research OK So here's the deal the longest bull market for the S. And P. 500 since 1950 lasted 3452 calendar days all right that was October 11th 1900 to March 24th 2000. OK Now that's according to BT into November 87 through I I don't know I just saying that any B.T.N. Research is telling us and I've heard this from other sources. That the longest ball market for the S. And P. Since 1950 is $3452.00 calendar days now the one market since March 9th of 2009 is now been 3452 calendar days. So it's tied tied if you use this metric. We're talking about this so tell me if it continues tomorrow and we actually get a record high today would be quite a coincidence and we close at that then yes it will be the longest war market on record however as you said Professor Plum we've looked at some of the other statistics from other companies and we had a very good bull run. In the you know from from the bottom of the 87 crash right for 10 years or according to the research I was I was 12 years so it's an interesting. You get a figure out where you're get your data from and who's what they're actually measuring because when there are people saying well this bull market really isn't that long if we look at intraday movements we had a bear market I think it was in 2013 but it didn't close down at that point so we came close to it but then recovered from it it was a bear or a correction it was a correction I mean it was it wasn't there it was down 20 percent 21 percent in 2013 and I can't remember the exact dates with the but it didn't finish there and then in there so that's not counted in the in that we came that close to a bear market and that's what I'm hearing but I haven't been able to look at the research and look at the data that either had the. Official War or the official. Let's see a correction is officially a correction when it's down 10 percent from the high when the market whatever index you're using S. And P. Let's call it and we have lots of those and I we've had some Yeah we had with this year and I think in 2016 I think yeah beginning of a yeah 4. And then a good definition of a bear market is one of the down 20 percent from the high that's from the high you've passed according to the research that you've done here and this goes back to 1920 S. But we've had 9 or 10 bull markets bull runs whatever you want to call it 90 and since 9269 and there have been a couple that are higher than the current one that we're in longer yes and I mean there was a 14 year 15 year they're almost 13 year and for whatever reason they're coming the one that in the 2000 and. 12.9 year run which is different than the one you're showing at now they're saying that one started. If they sit on it October 11th 1900 do you see anything on October 11th 1990 I see. A correction but not a bull market bear market. OK yeah maybe they're measuring them since corrections I can imagine that if they're measuring so scratch and supposedly I was over there all of this alive and well then they can't be so all right anyway welcome to the program but I did tell you that welcome to the show getting all you know amped up here as I said doing lots of things lots of things happening before the show we're going to be talking later on a maybe not this hour but because we talked about its last week on the show but bucket number 2 now what we're going to include with this is just another brief overview of buckets and how the bucket strategy works because I said last week we did talk about it I think it was probably in this hour so if we don't get to it this hour we'll certainly get to it at the top of next hour buckets and how it works and bucket number 2 which we add in between Book one and budget 3 simply because you need about 15 years in our opinion to allow stocks in equities of long term investments to do what they do which is to go up go through bull markets go through bear markets although it would seem to many people that the 9 plus year run that we've had right here gee it could go on forever couldn't it yeah why not. It's not going to so you need about 15 years but of course you don't want to put 15 years worth of cash sitting around like you would have say in bucket number one that really would make a whole lot of sense so you have a bucket one that last year call it 7 years then you need something to buy then buy another 7 or 8 years and that's where bucket 2 comes into play the characteristics of bucket 2 are different from those of bucket number one because you have so much time you have you know 8910 sometimes you know 12 through 151415 years you can take a little bit more risk with that money. You don't put it all at risk. But you have the time to put in put it in certain investments that while don't get while they don't guarantee much or anything in the short run they can make better guarantees for you over a longer period of time so that's one reason we're doing bucket number 2 so we've got that we have your phone calls we have your e-mails I give you the phone number I'll give you the phone number 877 planner that's the On Error number if you want to call right now 877-752-6637 Give us a call whatever question you have it can be on anything e-mails go to our Web site well fed dot com I do have some that we did not get to yesterday and I will get to those THIS HOUR a question about required minimum distributions I didn't get to Robert's question on Per's in the Nevada area. And a couple others also. Yesterday yeah yesterday afternoon we had some people coming through a little tour group you ever see these tour groups but. They sure did but in New York you go to Wall Street point in this area when you're in art. That's exactly what you do so I we were kind of asking some folks what sort of questions you have because they watch the show and so I wrote down by for I haven't heard the I've just you haven't heard them and I hope I can read my handwriting. If I can't well will have to get a translator anyway will will answer these questions we're doing this all on the fly professor once again 877 planner P L A double N.P.R. Coming right back with more bucket strategy. 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Number finance I.P.C. a Subsidiary of Capital Group an affiliate of services and strategy involves investment subject to risk recently we talked to people in the Capital Group retirement strategies workshop about concerns they have related to retirement concern about another I think inflation is always a concern how to make them any less. It's 2 thirds that I have not going to have enough money for retirement retirement in today's economy is one of America's greatest challenges especially if you have to make decisions on your own and you may live 30 years. If you're worried about outliving your money inflation and stock market volatility discuss retirement strategies designed for these uncertain times get a written plan customized main experienced retirement planning strategist you can schedule a consultation with an adviser now by calling 867586750 click Contact Us at Camp dot com That's Lucina cap dot com securities offered through a chance securities L.L.C. Member finance I.P.C. a Subsidiary of Capital Group an affiliate of services the strategy involves investment income stream probably not something you worry much about when you have a steady job income but as you head toward retirement is your income stream still going to be enough someone who can help his financial advisor Patrick Tucci will you be financially OK in retirement with enough income you can count on if you live say 30 or 40 more years could happen packin help you get on the right track toward retirement as you need to protecting grow your Nasdaq patterns help folks with their retirement planning over 30 years and Associates has offices throughout the Bay Area. Call for a complimentary retirement plan review 8047283058047283050 or check don't invest and forget dot com and associates 804728305804728305 or go to don't invest and forget dot com securities and advisory services offered through N.P.C. Registered broker dealer member PEACEY. I'm Chuck Campbell Ixia B.C. History on Wall Street the S. And P. 500 rose to its highest level ever and the bull market has now equaled its longest run ever the Dow is up 111 the Nasdaq 67 the S. And P. 14 stocks are going up because the economy is strong and consumers are spending Kohl's profits rose 40 percent because people spent more on everything from jeans to handbags to home furnishings T.J. Maxx as parent says it's store sales rose in all categories and it's attracting more young customers and told rather sold more houses for unbelievably high prices Facebook is removing ads that could lead advertisers to discriminate based on things like race or religion Senator Elizabeth Warren now is out with a new bill that would ban congressmen and women from owning individual stocks and American Airlines is getting rid of some international flights because jet fuel prices are rising so fast many of those flights come out of Chicago in Philly Chuck cam like see N.B.C. Finding great candidates to hire can be like well your station for news the area of business and real time traffic 1220 K.T.O. Levelly on the i Heart Radio and. The synergy between a structured strategy and integrated investments you're listening to bucket strategy investing. That you are getting the pension reform need 77 planner P.-L. a Double any are 877-752-6637. Just one more thing here on this S. And P. Thing. Again according to BT and research the highest closing value during the year for the S. And P. $500.00 is it occurred in the final 4 months of the year in 12 out of the last 15 years so 80 percent of the time then. Does that mean anything again does it mean that the last 4 months of the year you should be putting all your money in or is that mean if it if it's at the high at the end of the year you should be selling out some of your portfolio because you're selling at what could be the high of the year this is what market timers tend to think about. I don't know why but that's they tend to think about what it tells me is I want to accumulate as many shares as I can before it goes up so I want to be investing when it's not a pretty time so that I'm as much in as possible when it is a pretty time and hopefully the 80 percent if it's a 20 percent I'll keep accumulating more shares by putting money in every month or every week every where ever I get paid to accumulate as many shares when it's not sure well then that's all part of dollar cost averaging which somebody. Is no good have you heard criticism of the dollar cost averaging before where they say you shouldn't do that you should put in lump sums and all this so let's assume you have a lump sum so in a lot of people don't have the lump sum right and so the question then becomes OK let's say that you retire and you receive a lump sum from your pension or you and receive an inheritance and you have a lump sum and then now the question becomes OK how do I get into the market let's say that you've done your strategy and that some or all of the money that you just came into in lump sum can be allocated for that longer term time horizon you've got a 15 year time horizon or more with this money you just unfortunately inherited some money from somebody who passed your 45 years old and you say OK this money. I'm going to take X. Amount of pay off this debt do these things but I'm going to have this other block of money that really I'm going to set aside for the next 20 years between now and 65 when I retire so I have identified that I have this block of money that I can put to work for me for long term. Knowing that in what people look at knowing that the market's been on an upswing for the past 8 plus years is now a good time to get in the market or might look in the buying in at the high end you know whether you put that lump sum that you have identified as having a long term time horizon whether you put it into the investments today or whether you stage it in is going to be more about your stomach than it is about the long term prospects because the reality is over the next 20 years the difference between putting it in today and put it again over the next 6 months a year 2 years 3 years how long you get a dollar cost average over the difference in your overall rate of return it's not going to be very significant over a 1520 year period it'll be very significant over a 2 year period of time either very good results or very bad results because the market could go up or down so how you go about staging that lump sum in depends on you and your thought process towards it if you put it all in it once and we happen to have a downturn in the next year or so what are you going to do he's going to bail out you know curse yourself for going at the wrong time or are you going to say well I thought of 19 years and over 19 years I'm going to be 5 or the like the better option or if you feel that that is going to give you significant Ajah and it's going to make you sick to your stomach and you're not going to be able to sleep and it's going to bother you then Dollar cost averaging in because that's going to help you live with your investment decisions better now of course Murphy's law says if you put it all in a lump sum the market's going to go down if you dollar cost average then over the next X. Number of years it's going to go Schrade up while you're waiting on the sidelines to get it cynically speaking of course that's not already all of course it happens all the time and the reality is after 1520 years it's not going to have a significant impact on what your portfolio looks like anyway because how long are you going to the biggest decision once you've decided you're not going to do a lump sum investment into something you've identified as available for 1520 years or more. How long do you take the dollar cost average in 6 months a year 2 years how long do you want to take to put the money in and will you stick with your strategy if the market all sudden goes way up in the hour I miss the now . We have just as much problem missing out on of the portfolio run up as we have being in for yeah exactly exact It's amazing how that works it really is so you know the decisions you make I mean you just stick with you just you just live with them and put a plan in place and when rational mind not emotional you identify what you can afford you identify how much risk you're willing to take you identify the time arise and you fill those busy needs those are the with the appropriate investments and you step back and let the world do what the world does then I see is to test it go where the market goes up 3 quarters of the time historically and 3 to 4 years out of the 4 years I mean you know it may not be exactly 3 out of every 4 but but over a long period of time which they said. Continuing on that was. Evidence that you should just drop the whole thing in don't dollar cost averaging because in the long haul you're going to be fine statistically you're better off but this ignores the emotional side of it the testicle you're better off but you're Murphy's law and you're going to find it could be one in 10 it's not but it could be one in 10 years or down compared up. You would find that one wouldn't you I mean it's just the way it works right so it has a lot more to do with the emotional aspects than the statistical aspects and as I mentioned over a 1020 year period of time the difference between investing today and investing 6 months from now is going to be marginal I mean just now it's like in a manner I had a question here from this is one of the questions I wrote down so this out of the people that were here yesterday yes and so and I'll bet I know I have e-mails to get to we will get to those I do promise you that but I'll just throw a couple these out while this has to be quick we have 2 small children good don't know the person's name we have 2 small children should we save in Iraq a 529 or are for a one K. Plan for college for retirement and college well for retire. And college would be the rock forward for the 1st money I would want to know if you're getting a match on the for one K. And definitely get the it's not free money get your wages paid to you that is part of your employment contract that matching contribution don't give up money from your employment contract because you don't want to put money into the 4 A one K. So if they match to the 41 K. If they don't match Do the Right now I'm looking at also I don't have a whole lot of information I don't know how much money you make or don't make but you said we want to use it for college I don't know how old you're going to be when the kids go to college so let's assume that you're on the younger side of things and you're not going to be 59 and a half when the kids go to school like the rock the 529 to be the 3rd choice out of the 3 and why is that because you hear so much about 529 plans being the way that a college well and to being able to save for college but there's help with college there's time for college you can take out loans and other things there's very little help for retirement yet and by the time you get to the point where you are retired if you don't have it it's hard to get it whereas if you haven't got enough for education there are other ways to make that work even at that point so fully fund the federal in case fully fund Roth IRA is get used to that discipline of saving $18000.00 a year plus you know $5500.00 you've already got the discipline of money out of your pocket if you don't have enough money for education you can back off of those savings that point your money will still work for your retirement or you can redirect new funds to the education right and if for some reason by the same token if the kids get a scholarship it will go to college or something like that you got the money in the Roth you don't have to put it toward somebody else's education and I can get to my contributions very easily for education if I have to absolutely OK taking a break 877 planner P.-L. a Double whammy are coming back with more market strategy investing. Baby boomers are facing some critical retirement planning decisions that involved. Social Security benefits so many variables can impact on Social Security Strategy your work history your spousal benefits and of course the age at which you take benefits among others if you have questions about your options for Social Security take 15 minutes to watch your free online video available now 9 vital steps to navigating your Social Security this very informative program is hosted by Lucienne Capital Group chairman Jr What you're about to see is what I believe to be some of the most important information you need to know about Social Security joining ready for this 3 presentation Capital Group chief financial planning officer reckless For example if you're for we found an aged 66 then you will receive a 25 percent reduction in your benefit if you claim at age 629 final steps to navigating your Social Security is a free online video available now on demand at well fed dot com and said Well thank you cation wealth ed dot com if you're facing Social Security decisions don't miss this free program online on demand at well fed dot com Let's talk about longevity and taking them to help get insights about issues that affect millions of individuals and couples trying to make informed Social security decisions the timing of the benefits can create a couple heading opportunities that may help you manage the benefits you receive over both your lifetime watching 9 vital steps to navigating your Social Security then schedule an appointment with a capital group advisor to learn how to integrate social security benefits which can be calculated as part of your retirement planning strategy go to well fed dot com as in wealth education well fed dot com Social Security rules can be complex for more information on Social Security benefits go to S.S.A. Dot gov or call 807721213 which a Capital Group and its affiliates are not interest by or affiliated with the Social Security Administration religio Jr and Red Cloud offer advice re service system in which a Capital Group an investment advisor securities opportunity of securities L.L.C. And affiliated broker dealer member S. I P C. A question regarding. Their. Thank you very. Young enough to do an aggressive now when I look up a graph the research people say. 80 percent stocks 20 percent bonds for answers to the tough questions listen to invest talk weekdays 4 to 511220 business radio. Join the top investing in trading including Jim Rogers Jeffrey saw a. 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Professor In a sense have a plan or again our number here P.-L. a Double in the hour if you have any questions you've got comments about anything that's going on in your financial life or you just want to you know get the brain trust feedback on something that you might have a strategy might be considering we do that all the time 877 planner give us a call here P.-L. a Double N E R OK I want to get to Robert in Las Vegas sent an e-mail a couple of days ago we did not have time to get it so Robert's question my wife works for the state of Nevada and I understand that her social security benefit will be lower due to her pension and quite possibly Yes My question is what happens if I die before she does well her Survivor slash widow benefits also be lowered to her public employee retirement system benefit or will she get a larger benefit from Social Security 1st of all Professor Plum let's just explain how social good benefits they can be affected by a pension that you're receiving from a job where you did not pay FICA taxes right in the a lot of the employees with the government the better the State Government of the spell is do not pay FICA taxes they may pay Medicare but they don't pay FICA they don't pay into the Social Security system for their own benefit now it sounds like your wife has had other employment where she did pay and get her 40 credits but when she has a pension from work that was not covered by Social Security taxes there's going to be an impact on her actual social security benefit will be reduced but there's also an impact on the benefit that she would otherwise be eligible for from somebody else's work record from your work record so when it comes to a spousal retirement benefit she's going to get hammered on that. Ali when it comes to a widow's benefit she's going to have an issue because of the pension that she is receiving from her employment where she did not pay into the sole security system the government pension office that is going to kick in on the widow's pension how much is going to kick in it's going to kick in quite a bit probably it's going to be an amount equal to 2 thirds of her pension so the 1st thing we do if something happened to you before her we will look at how much of a pension she is receiving and they will reduce the widow's benefit dollar for dollar by an amount equal to 2 thirds of the pension she is being she is receiving $3000.00 a month pension the 1st $2000.00 of the Social Security as a widow will be eliminated the larger the pension the bigger the deduction 2 thirds And so what they'll do is they'll look at what is the widow's benefit after the impact of the government pension offset what is her own benefit after the impact of the windfall elimination provision which is what reduces her own benefit and whichever one is higher the giver that number that's the way it's going to work but in most cases the government pension off that pretty nasty job with those and widowers pensions or widows and widowers benefits from Social Security Yeah boy it's yours just seems like you know when you say things like widow pension you know and Social Security and you hear the government taking it away that creates some really nasty looking headlines you know that as it is a really bad Get it gets a bad image among most people but that's exactly what happens. If you had a job where you did not pay FICA taxes and some you know most every job does the way you type job or pay FICA taxes there are a lot of jobs for the government out of business of all employees. Federal employees do pay Social Security now if they were hired after $984.00 so most federal employees do pay into the FICA system and don't have this issue but a lot of state and this will lot of law enforcement safety members throughout the US have their own pensions and they do not pay into Social Security but that doesn't mean that's the only employment they've ever had or that they're not going to be married to somebody who has other employment outside of the state of the missile system so there's a lot of people that are affected by these 2 issues the windfall elimination provision which affects. The benefit if I also have a pension from work not covered by security and the government pension offset which affects a benefit from somebody else's work record. Usually a spousal retirement or a survivor benefit that's where it's going to come into play now doesn't only affect it when I'm receiving that pension so if I'm not receiving the pension because I'm still working or 66 I'm going to work until 70 I can get the full benefit from the so surely benefit until such time as I start receiving that pension from work where I did not pay any good it has only when you start receiving it that you're going to have any issues so if you take your Social Security at 62 or 63 and you have a pension but you have a you're not going to take until age 65 you're going to be fine until you start taking that pension at age 65 presumably you're going to get more money between the pension and you know whatever social security you might that might be left although I don't know. Well no it has to be there's no way it can there's no way you can take a cut by taking Social Security and then you start receiving your government pension it will never be less the what you were receiving Yeah because the windfall limitation provision reduces it doesn't the limit it is not even dollar for dollar that much and the most you can offset your so security is up to half of the benefit you are receiving it's a lower benefit Yeah the windfall limitation provision is only going to or the government pension off that is only reducing your social security by 2 thirds of your purchase right so your pension still going to be larger than the reduction in the soviets you may lose the entire cell security but budget with a little bit larger than the little scared engine will give you at least as much in 5 or even 2 or more yeah then then you're so security so I guess that's the logic behind it I don't like it I don't agree with it but whatever nobody asked me let's see here again 877 plan or if you have questions were answering a couple of here's another one from somebody that was just kind of strolling by the studio yesterday. This one says if I can read it my father has a 250000 dollars life insurance policy that he can't afford any more father is 75 how can he sell the policy for cash if he wants to well there are such thing as lifetime settlements. Which are different partially than via adults that it's. Both of them involves selling a life insurance policy not selling a brand new one to somebody but selling an existing the owner of a life insurance policy selling an existing life insurance policy what's the difference when via tickles a lifetime settlements or you terminal. That's pretty much the difference by advocates elements deal with people that have been classified as terminally ill so we understood we expect that the unfortunate payoff from the death but it's going to be in the not too distant future lifetime settlements have nothing to do with terminal illness it's just somebody who can't maybe afford it doesn't want doesn't need any more wants to get rid of it instead of just you know letting term policy lapse there may be somebody out there who's willing to pay for it and keep up the premiums until you die how do you go about doing it talk to an assured sages that deals with this but they make you know $250000.00 policy they may depending on what the premiums are if it you know or what how much whole life is in there what they can do with it they may pay you some money for it more than you would get by just letting it lapse and keep it in force now somebody else some people don't like this part of it somebody else is going to profit from your death somebody unrelated to you that has. May there be no you they don't care if you live or die but they're going to profit if you die well they do care if you die cause that's what they want they're going to get paid they don't care about you personally and their rate of return on their invested dollars goes up the is a much better rate of return the sooner you die yeah we saw those back in the 80s late eighties when I was mostly by articles Yeah I'm sure I'm going back to my articles we saw those with the people who well especially with the HIV issue back in the eighty's and ninety's where where we were if you were diagnosed with HIV and it was it was right quick but then they made great strides in being able to help that make people help people live and so a lot of people bought the Via because they sold their life insurance policy you know to pay for their you know last year you know to have some fight easily have a $300000.05 insurance policy it may have given them $100000.00 for it knowing that they were going to die in 2 years right but then they didn't die because medical science helped now there was also in some of those areas that are other by the been a little bit of. Yeah I have heard that in what way oh getting terminal illness diagnosis from doctor and somebody then they're profiting from the diagnosis OK And what are you going to do are you with the doctor well at the time at the time you couldn't but after the fact if you can find them and you could sue them for you know because they were it well they did it for the money I mean well of course there was a lot of lawsuits and they gave those types of policies in the lot of circles a very bad name and then the thing that the illegal you can give a legitimate product a bad name. When they're done correctly when they're done legitimate they are they work and they work well and unfortunately they can work well for both sides Sure yeah it just depends on if you die or not but the person buying the life settlement buying the viable settlement is looking at it saying the longer this goes the less my rate of return is. That's a tough one to get over emotionally if you're the one seller. But it is. Something that you can you can get there are ways that so I don't get when you buy a life insurance policy and somebody just purchased one on somebody's life we don't you have to have an insurable interest in that person that issue yes but then after that it doesn't matter after that it doesn't matter so you can sell to anybody you want on the secondary market. Interesting all right going to take a break here we got a couple more questions he had also get life insurance. And then offer to work on your brakes. Brakes as in my car yeah. No no that's probably not going to happen all right we'll get to a question here in Alabama I'm not sure which. Professor why they really said Alabama 877 plan are coming right back with more strategy investing. 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Set a record last hour and this was on the same day the stock market rally tied its longest record ever things have come down a bit since then the Dow now up 110 The Nasdaq up 66 the S. And P. 13 shares of Charles Schwab each trade T.D. Ameritrade all down today big time J.P. Morgan Chase coming out with an F next week that will let you trade stocks for free Facebook now rating the trustworthiness of users so it can better fight fake news perfume maker Cody spent $12000000000.00 buying Procter and Gamble's beauty business bad buy it looks like week sales of P. And G.'s Clairol and Covergirl drove down Cody's overall sales in the stock is down 10 percent Herbalife on the receiving end of a $1000000000.00 lawsuit some distributors say they were duped they would like to get the money back that they were promised and a new study shows that the number of women owned businesses in this country is up about 3000 percent since 1972 check Hamlet C.M.C. Finding great candidates to hire its K D O W's Money Team weeknights at 6 pm It's money 2.0 the Bay Area's business leader am 1220 K. T O W. B investment options you may integrate into your wealth management plan this is bucket strategy investing here is we'll be talking as a matter of fact and more about buckets next hour at some point I want to get into biking number true true that's right bucket number 2. Not just the bucket to itself but another overview of how buckets work that we do in that next hour. 877 planner Our number here P.-L. a Double N.E.R. Now had an article that said new retirees don't overlook this tax planning sweet spot. Now we also an e-mail from Vicki in Baltimore Maryland who is asking kind of about this that they're talking about now the article is mentioning. Doing rock conversions once your income supposedly dips once you retire. I mean is especially if you are deferring taking so security and you have personal money to live off of for a little while right can do some serious conversions for us the idea is that you're in a lower tax bracket presumably and you may be able to manufacture that lower tax bracket by deferring taking the sole security and other things sure especially if you're able to live off personal money especially variable to live off you know maybe Roth money but it also has to make sense to defer taking the yes is it always makes sense so anyway I don't know I'll do Vickie's e-mail 1st and then we can discuss this article if I don't get to the article itself we can do more of it next hour they key says Could you discuss required minimum distributions for retirees judge your RAW conversion to avoid taxes thanks well good it's a great question well rocking the versions don't avoid taxes necessarily because you pay taxes when you convert the money the question is can you do a rock conversion today. At a taxable event that is less than the taxable of the later in life specifically when you have required minimum distributions and required a bit of a distribution for retirees we're assuming you're the owner of the account this is not a beneficiary discussion this is the owner of the account once you get to the year you reach 7 and a half yes you have to take some money out of your IRA for a one day 4 of the 7 tax deferred retirement accounts except for Roth IRAs. How much debt think up it's not a huge number I mean it's you know 3 and a half to well 3.63.7 percent 1st year and it goes up a little each year by the time you're 80 it's closer to 5 percent 9867 percent so it's not a huge huge number and for a lot of people it's built into their strategy they need to take some money out of their portfolio anyway maybe they're taking the old tried and true 4 percent 5 percent distribution while they required minimum distributions and or 4 percent So if you're taking 5. To live on you are dissatisfied you required minimum distribution so it is a calculation that you do each year to make sure that you're taking out enough. It's not that you code call dictate you know specify that this distribution that I'm taking in February March April whatever Mother this is my R M D and these other ones are it's just a matter of have you taken out enough throughout the tax year to satisfy the required minimum distribution and all distributions that you take out that don't go back into another Iraq IRA account as a required minimum distributions and so you take the balance at the end of last year divided by a life expectancy a factor for the age that you're going to reach this year that's it you take last year's balance divided by your life expectancy not a life expectancy is given to us by the I.R.S. It is not based on your health it's not based on your genetics your your family history of the it's just the number that almost everybody of the same age has almost everybody if you are married to somebody that is more than 10 years your junior use a different table and you get a slightly lower maybe substantially lower required minimum distribution but for most people that are either single or their spouses within 10 years of their age we all use the same table and it's just a table that the iris has created over time they yet they're not saying that you're actually going to live that long but they're saying this is the. What we're going to use what we're going to do is we have to pick something we have to take some type of life expectancy and this is what we're going to do and we've simplify that tremendously from where we were 20 years ago so just deal with it but yet so it's just a matter of we have to start taking money out so how much you have to take out some money but if you still have room in the tax bracket that allows you to continue to take higher distributions Now you can take more out you can always take more out if we can do it efficiently we can either take more out and spend it or we can take more out and convert it we're not allowed to convert the amount equal to the required minimum distribution but we are allowed the once we've satisfied the required minimum distribution to take more out and convert that and why should you well if I can do it in a bracket that saves me money in the future that is a reason to do that distribution whether you convert or not that's up to you I like the conversion because the tax free after that but that's me so how does this relate to the article you were talking about the sweet spot Well that's what they're saying and as we said a moment ago the idea is to use what's what is your lower tax bracket presumably once you're no longer collecting a paycheck and you're I'm guessing living off of personal money maybe Roth money which could keep you in a fairly low tax bracket and using that opportunity to make Roth conversions they say the sweet spot is the stretch of time that starts after you're done with full time work and before you begin taking R M D's from your 41 K. Or IRA at age 70 and a half presumably or find yourself in a lower tax bracket it could make sense to convert a traditional IRA or $41.00 K. Account both of which come with taxes on distributions to a Roth IRA They said while of course you must pay income taxes as you said on the amount converted it would be at your temporarily lower income tax rate in comparison if you were to leave those assets in a traditional IRA or for a one K. Plan. Until you begin taking required minimum distributions those withdrawals could push you into a higher tax bracket and such higher tax rate would apply to the assets and they're going to do you know potentially having to you know the higher Medicare and all that kind of stuff there's a lot of little things that it could potentially affect it depends on how your income is structured do you have the ability to support yourself from areas by taking principle out of bank accounts and things of that nature which are taxable personal bank account and use that and maybe not take yourself to get it right away you assume you're going to live a long time so you might need $67080000.00 a year to live and you're thinking OK myself get is going to be 30 I need 50 from another source I'm going to take it from an R.A. In the you know 50000 but if you do it that way a lot of your Social Security is taxable at that point so maybe you live off of personal money for a while you draw down your bank accounts your personal portfolios defer taking yourself security from $66.00 to $70.00 and do large conversions $100000.00 conversions a married couple you do $100000.00 version each year and you bring your your your IRA down and you pay for it all in the 12 percent bracket without having an effect on your Social Security and then as you get to 70 you tell yourself which is no longer $30000.00 is like 40 some 1000 dollars 45000 dollars a year now yeah and I've got most of my money over in my Roth IRA which means that's not going to be taxable and myself care is not going to be taxable and maybe I have a couple 100000 left in my IRA but the required minimum distribution doesn't affect anything they're going to talk more about this throughout a time and another hour coming up 806441150 the off air number Don't go away come back with more information presented should not be considered specific tax legal or investment advice you should only see counsel to be appropriated by surprise or to making any investment decision all investments are subject to risk including loss of principal the information presented in this material was gathered from sources believed to be reliable however its accuracy cannot be guaranteed no client or prospective client should assume that the information contained here in or any component thereof serves as the receipt for a substitute for personalized advice from which you can. It's Investment Advisor Representatives affiliates or any other investment professional Bricklin is a registered representative of an office securities there Luci a securities or even better than a smartphone a smart plays your favorite radio signal like it or what I collect away from there whether you have an i Phone Blackberry or Android just go to your devices out of school and search for. A deal to download for free from your devices at store today . Take a and 1220 with you where ever you go on our smart phone to tell me how little tools for a service of Salem Media Group. From the Fox Business Network call Wall Street stocks are higher in a day trading after some strong quarterly results from retailers and homebuilders And speaking of which shares of Toll Brothers rising run 13 percent today on Wall Street after the home builder reported a better than forecast 30 percent increase in net profit and online brokerage firms like Charles Schwab T.D. Ameritrade in E. TRADE are tanking today after J.P. Morgan Chase and it will be offering free online trading for its customers starting next week and over naming Nelson Shah is its chief financial officer filling a high profile hole in its ranks as the broad telling company gears up to go public next year hasn't had a C.F.O. Since 2015 the most read.