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Well that's our in news I'm validate your Florence is now affecting several states with warnings from the Carolinas to Virginia then West Virginia and Ohio at least 17 deaths confirmed so far and it is still raining and rivers are still rising in North Carolina water rescues are under way winds are about 30 miles per hour now not so bad but the next 2 days will bring the most destructive flooding in North Carolina history as with most natural disasters the i.r.s. Says victims of Hurricane Florence will get a grace period before having to file some tax returns and payments for certain individuals and businesses quarterly estimated income tax payments and quarterly payroll and excise tax returns are normally do in September but the i.r.s. Announced it's offering relief in parts of North Carolina and other regions designated a disaster area by Fema those filings and payments will be postponed until January 31st next year Greg Clarkston Washington that massive typhoon barreled into southern China after lashing the northern Philippines with strong winds and heavy rain that left dozens dead and dozens more feared buried in a landslide more than 2400000 people have given me located in Southern China is going down profits to feed the massive typhoon and nearly 50000 fishing boats will cool back to pull out the gabbling enclave of Macau close to see this for the fest time mine could smooth landfall in the undone city of Tyson packing wind speeds of $100.00 mph state television local to that surging waves flooded the seaside hotel the storm also break windows fell trees to the scaffolding off buildings under construction and flooded areas with sometimes waist high load says I'm Karen Chamas good has weakened to a tropical storm president trumps nomination of Brett Kavanaugh out of the Supreme Court in turmoil after the woman accusing him of high school era sexual misconduct told her story publicly now Democrats have had the information since the summer and just now turned it over last week this is us are a news. 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Do you start writing today's needs into a mold story since its budget strategy and visit percentage might allow the buys you said look she is happening. You are Johnny and Rick the professor play. Johnny Dean the bouncer did. Not like one of those old. Shows from the moment there I didn't see you coming in Welcome to our humble abode funny he'd be really those that really didn't want to t.v. Back in the fifty's no no no I didn't no no you know young back then. I would be quite the fifty's I would have the I wasn't quite there but that's how they used to do these things you know they'd be reading a newspaper and the camera would come up close and say whoa whoa whoa Won't you join us for some tea Yeah you can join us for some tea actually some good money advice I am Johnny Dean here a professor at Plum one of the main topics as to do with selling real estate it's not going to be just 1031 exchanges we're going to tell you what those are and how those work but also. Not just that but. Your regular investment property in primary residences it's been a while since we've talked about primary residences and selling them and all that stuff and. There's some we have some questions from people about primary residences that haven't always been primary residences and maybe you know it's a vacation home or it was a rental property or some time and then there's this weird date in there 2008 I believe is after yes but that's where it starts as of 2008 and if you own property prior to that there's one set of rules if well anyway so I'll try it we'll try to explain that as best we can for those who have asked about it but really 1031 exchanges will tell you what those are for people who have rental real estate people who have. Any kind of investment type property and you're just you're not not real thrilled with the property you have or maybe you want it to be closer to where you are something something tells you that you want to get rid of this but you really don't want to necessarily get out of the investment real estate game for whatever reason maybe some want to pay the taxes it's possible to get a new property. And not pay any taxes you can get a new property and never pay taxes don't say never while you can well you can it's tough Well it's not a great way to go but you can people have done it that's the tease people have done it they have had they have done 1031 exchanges or bought property and let it just zoom way up in value over many many years and they never paid taxes on it they never paid taxes on it which is true that's a true statement Professor plumbing cannot deny that right anyway what else we have some of some fun stuff too you know we talk all the time about. Money and that's would make sense because we're money type you know program and we're planners and we do all this stuff for a living but a couple of things here I don't know if I'll be able to get to this or not maybe not because it seems kind of like fluff but 14 surprising signs you'll live longer than you think what you're doing right and how to do it better it's a couple of years old but it's still it's still relevant it's old article that I found and. Why talk about living longer well because some people think I don't need to save for retirement I mean I do but I'm not worried about it because you know that I'll live to be about 70 and that'll be it you know that's my if my grandparents all kicked off in their early sixty's my parents also do the same thing so if I live to 70 I'll be surprised so you know what I'm not even going to plan for a while there maybe some signs that you live longer than you think so well maybe go through some of that stuff tax advantage way to pay alimony this is a specific thing Professor Plum we don't usually talk about things like that alimony Yeah. I mean that's the go she hated being what it is it's often time the rules changed a little bit as of January alone for new divorcees Well they did now it's not where I thought it was at the end of 28 presently it is a joy to do so it was that 18 or 19 there's no I think it's good I think you can deduct it through 2018. Because this is part of the new tax law correct yes that went into effect like almost midnight you know. At the end of 2017 I think in order to prepare people for it they gave you their giving you a year to be able to deduct your alimony payments on the $28.00 teen taxes in your 20000 taxes and I think as of 2019 you are not going to be able to do that for divorces that are finalized after December 2002 after 2 of December 24th does that happen finalized and $21000.00 and beyond we have a new tax law Yeah Ok but if you do if you have a divorce and you finalize it sometime in 2018 does this mean that this is mean that you can deduct your alimony payments all the way through it's only this year not believe it's always it is it. Right grandfather now yeah I believe so Ok You know it's like somebody who got divorced 5 years ago 101520 years ago still play a melody and say By the way we're changing the game where you could they tell you that it up all the time. Oh please I used to be able to you know people used to be able to you know do. 7 per cent and a half percent of my just a gross income for you know medical expenses they now have to 10 percent I've been doing 7 percent all the time whatever yeah there are things that used to be deductible hey you know what I've been paying property taxes for a long time now and now they're telling me I can't deduct what I used to be able to deduct. Anyway so tax advantage way to pay for money and then here's $1.00 that I'm pretty sure we're going to get to if you want to comfortable retirement here are 10 commandments this is a fellow who wrote an article 10 Commandments for a comfortable retirement kind of a catchy little title they had to come up with 10. I suppose I agree with some of them maybe not all of them all right so that's enough teasing 877 plan or devil any are that's the phone number if you have questions 877-752-6637 you can e-mail us as well go to our website wealth ed dot com well fed dot com And by the way if you want to talk off the air Here's the number you need to reach Professor reply any Lucida capital group advisor 80644115806441150 you know we do talk about strategy on this program we talk about sometimes somewhat complicated subjects we try to explain those best we can for people who are you know maybe listening and don't have time to take notes or they don't they don't listen all of it at once we try to make it easy for you this is your chance to sit down with an advisor face to face or do it on the phone or do it over Face Time Skype Internet whatever it is and actually talk about all the issues that are relevant to you this is your individual situation we're talking about not just some somebody else's you know potential situation or a concept or an idea or a strategy that may or may not pertain to you this pertains to you 806441150 talked to them at least Capital Group that's what they do for a living Ok so since you know we've been D's and all this stuff coming up I don't have time to get entirely into the topic but we can start it off Professor Plus there's a difference between in taxes Well there's a physical difference between owning your residential property your primary residence the house that you live in. As opposed to some type of investment property some people tend to look at. Call it a vacation home similar they look at it similar to the way they do their. You know primary residence but I think the only area is they are treated similar and other is they're not yes and I think that's where people get confused a little bit I know a couple that spans about 6 and a half months per year in one place and 5 and a half months roughly per year in another place they tend to look at their places of the both of their homes but you can only have one primary residence at a time and it's not wild Yes Well of course I've owned several But yes one of the time and the key is is you can only in the real big issue there is can I sell the property and exclude the gain the 250 for a single person 500000 Mary person you can only do that once in a 2 year period of time yes for a primary that is a primary residence and that's the big difference between a primary residence and a vacation home one you can sell without paying tax on the 1st $250.00 again 500004 America will the other one you can sell but there's no exclusion of tax. You still get the same potential ability to write off things you saw the same limits on the mortgage interest deduction some of the same limits on the property tax deduction it's just used to be a little bit easier in the old days but. They're treated vacation properties and primary residence are treated very similar with the exception of the exclusion of gain from the sale of a primary residence that's different than the taxability of a. Investment property. The investment property could be or you could own you could buy into it tract of homes your house you live in a lot of the house across the street they're identical the same floorplan same size square feet they could be the same color everything's basically the same but if you order both the tax treatment on how you treat them are going to be very very different one of that investment one of your personal property personal property has certain rules that you can think about deal with investment property has a whole bunch of other rules that you have to deal with yeah and the problem comes when you're going to sell if you want to try to realize either again or a loss of one or the other type of property Yes now you can outright just sell it if you want. But you've got to remember when you sell let's say a rental property you're going to have to deal with the taxes on that sale plus you've got to recapture all the depreciation that you talked or were supposed to take during the time that you own it and some people just don't want to do that so how do you get out of doing that are at least how do you maybe kick that can down the road 877 plan or come back with that answer Johnny Professor more bucket strategy investing. Recently we talked to people in a little capital group retirement strategies workshop about concerns they have related to retirement and concerned about another market crash I think inflation is always a concern how to make them any less concerned that I have is that I'm 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 or more in retirement if you're worried about outliving your money inflation in stock market volatility discuss retirement strategies designed for these uncertain times get a written plan customized by an experienced retirement planning strategist you can schedule a consultation with an adviser now by calling 861-411-5864 extension 4 you live in 50 or click Contact Us said Ligi a camp dot com That's Lucina cap dot com. Securities offered through the chain securities l.l.c. Member finance r.b.c. a Subsidiary of Luci Capital Group an affiliate of Luci a while services the strategy involves investment subject to risk much time to spend worrying about money recent survey by a major investment firm found that on average investors spend an hour and 20 minutes each day worrying about money that adds up to 475 hours a year and what exactly are we stressing about the respondents to the survey said their top 3 concerns are a catastrophic event using up their retirement funds living longer for their retirement plans not keeping up with inflation if their financial fears are causing you to worry hundreds of hours each year spend one hour in a complimentary consultation with a leech a capital group advisor if you're concerned about outliving your money or the threat of inflation turns to be experience and guidance of which a Capital Group retirement strategist 806441158641154 schedule a consultation by clicking Contact Us at Legia caps dot com That's one check out www dot com securities offered to change securities I will say member of finance I can see a subsidiary of launching a Capital Group an affiliate of Luci a well services. 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I integrating investment options into the foundation of a strategy that's customized for you helping you manage your wealth and plan for the future that's what we do on black kid strategy investing for sure John again Professor Rick on the 77 plan are our number the l.a. Doubling the our 777526637 you have any questions or comments get on board now and we'll talk about an e-mail go to our Web site wealth dot com We'll get some e-mails coming up we've been talking a little bit about real estate here and selling real estate in Primary real estate and all that and just sort of an offshoot of that I just happen to be reading an article I think was in the New York Times or Washington Post about housing in certain areas the housing has gotten hot hot as in completely recovered and then so this was this was in the north Las Vegas area you remember in 200540045 part of 2006 the place was crazy it was not going to Vegas in general was crazy on the housing prices nor think it was really getting heated up while it was and they started building all these homes and you had these these areas leveled where they just were starting to you know proper put the properties in and then about halfway through all of that it just completely came down in Las Vegas really got hammered Oh it went better than 50 percent Oh absolutely in many in many cases and in some places it was down you know 7080 percent and I was just looking at a map of the foreclosures in that area since 2006 like 9 out of 10 it was look like they put these yellow dots on this map I showed you. Throughout North Las Vegas Nevada it was just in this one zip code and I swear it was yeah 9 out of 10 homes in this I couldn't even count how many there were it was a lot like parts of Phoenix where at one point you know you go and you buy a house you're all happy and then the the housing you know the whole thing falls apart and you can rent. Basically the same house for half or less than half of what you were paying to buy it oh sure you know to pay for the mortgage the property tax the insurance everything and you could say well I'll walk away and I'll just take my you know bankruptcy foreclosure all that for 7 years and I'll pay rent at less than half the price and we'll see if it recovers well if so you recover but it's been almost 10 years so there are people who want a branding in Las Vegas because they couldn't afford to buy or whatever and so they go and they rent in Las Vegas and they thought that everything was Ok but as the housing market came up some of these owners that had bought low said pick on selling so they sell to some investor buys these properties of the rent and now they're saying we're going to raise your rent 2 $100.00 and we want an extra 1000 for a security deposit there was one case where they did that to somebody and they said well I mean what am I going to do so it's creating it's creating issues again and I'm concerned about that. But anyway back to some of the craziness that was occurring. Financial crisis yes yes and now fortunately we don't have these people one of the one of the folks on this article that they talked about we'll get to this 1031 thing in a 2nd this does tie in but one of the folks they talked about they had bought this property in Las Vegas for $400000.00 took a $1300000.00 loan out one person because they bought 3 other property Hud they get a $1300000.00 loan on a $400000.00 property Well they bought this they were featuring this $40000.00 property but she had a $1300000.00 loan because she had bought 3 others in the same area and it was easy to get a 1300000 dollar loan back then she might have been a waitress for all I knew. So she bought that and of course wound up losing it all we don't have that again you know we don't have those then no no but no income no job no but anyway it's something that that you got to look out. And so here's what happens to tie this into what we're talking about there are people out there with with investment properties rental properties let's just say they have a lot to gain in him and you know for whatever reason they do may decide that they want to sell that particular property however because that property does have a lot of gain and I'm in it. To realize that gain is going to put them in a bad tax situation so they decide that they want to stay in the rental game or an investment property game and but they don't to pay the taxes there's a way to do it you sell this property but you do it you exchange it for another property Professor Plum rock kind exchange called Section 1031 tanks and then 31 text a pretty change and it came about you know it's tax law and it basically was in the old days it was a real exchange all exchange my property for your property. Changing titles maybe there be a little money hands here and there but to equalize the pricing up but it was a physical exchange of the properties and that was fairly cumbersome and has you can imagine Yeah so the iris allowed for it to be done in stages a $1031.00 exchange the sale of an investment property for another investment property they don't have to be identified and worked out between the 2 owners I can sell my property. And as long as I do not accept the cash out of that sale the cash stays in a an escrow account there's the language in the appropriate ask for to make sure that this all works the money stays there and then I use that money to buy another property within certain time constraints and if all of this goes well I don't have to it's as if I just exchange one property for another when you go through Title exchange in I don't have to realize the taxable event at that time normally if I sell a property again and I've been depreciating it when I sell it I have to recapture the British Asian and realise the game realising it means I've triggered the tax liability I keep the money but I pay taxes on paying taxes on it by doing a $1031.00 exchange and selling the property but I'm not realising the game I'm moving that game into the new property and so as long as it's equal or greater value equal or greater debt on the exchange side after the exchange I do not have to realize any taxable event upon the sale so I can go into a bigger property I can you know so a couple of my properties if I can do it in the right time arise and buy one bigger property that maybe it's a triple net lease I don't have as much management because I'm getting tired of being a landlord and so I can go into a bigger property I can do different things I can you know I like being close to where my rental is but I get I moved to because they either retired or job and so I want to sell property a to buy I would be in a whole different state I can do a 1031 exchange and not have to realize the game and it comes in handy if I've got a 1000000 paid 600000 dollars for a property is worth a $1000000.00 Now positive had it for 10 or 15 years and I've depreciated quite a bit over those years and if I sell it I may owe $200.00 some $1000.00 in taxes given everything that's gone on and that may affect other parts of taxable income as well but I also don't have the $1000000.00 to buy another property I've only got $100.00 grand to buy another property if I wanted to stay in the property game. And so I'd rather have the $1000000.00 property than a $100000.00 property so if I do the $1031.00 I can avoid the tax on the gain Now the key here is that we can avoid the tax on the gain now for now not a tax free exchange deferred it's a tax deferred exchange and the key here is that you don't take any what they call boots you don't take any money you don't pocket any money out of the deal and I don't lessen my outstanding liability Yeah the deal so I can't go which is sort of like taking money in the deal of 850-0000 our property with 820-0000 dollars mortgage and I exchanged it 430-0000 our property I didn't take any money out of the exchange but I have lessened what I owe that's in effect taking money out of the exchange because now I don't know that money anymore so that would be a $200000.00 boot after the accident in the tail with that happened while they do your taxes there's no penalty or anything right it's just us if that's what you guys just tax them but anyway so 1031 exchanges they can come in handy for people who want to defer said income taxes on them on the sale the property there any number of reasons is why you would want to as Professor point said not pay the taxes on that property I mean some people say hey I have 850-0000 I bought for 500 grand and sell for $1500000.00 back I'll take 800000 dollars of capital gains that could affect other things on your taxes by taking a break coming back with more buckets strategy investing. Baby boomers are facing some critical retirement planning decisions that involve their Social Security benefits so many variables can impact disowns Social Security Strategy your work history your spouse with benefits and of course the age at which you take benefits among others he you have questions about your options for Social Security take 15 minutes to want your free online video available now 9 vital steps to navigating your Social Security this free informative program is hosted by Lucienne Capital Group chairman really junior what you're about to see. Is what I believe to be some of the most important information you need to know about soul Security joining ready for this 3 presentation Capital Group chief financial planning officer Rick Klum For example if your for retirement age is $66.00 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 that well fed dot com as in wealth education welfare 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 that into account 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 having opportunities that may help you manage the benefits they receive over both your life and watch 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 launch a Capital Group and its affiliates are not endorsed by or affiliated with the Social Security Administration regular Jr and red plum operated vice research assistant Capital Group an investment advisor securities opportunity and securities l.l.c. And affiliated broker dealer member s.i.p.c. Jr and Rick plum Representatives. From the business network another recall for General Motors pickup trucks. 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Don't miss a minute of market wrath with money and sorry the daily show that brings you the latest financial news expert guests from around the world and the answers to your financial questions if you missed the show on the radio get the market wrap after and listen to your convenience just dial down to 50 on your cell phone and use the key words to moan once you have a market drop out the show will download automatically cheer smart phone every day so dial down to 50 on your cell phone and use the keyword talk to both to get the market dropped out. Whatever the program picks Johnny to leave Professor Rick boss. Back in strategy investing we've got more to say on we I don't want to beat the whole 1031 thing to death because number one it doesn't affect everybody. You know there's probably a smaller section of the listening and viewing public that have you know need to sell the rental property and exchange into something else but but enough where we were we talked about it but the other part of this is selling your primary residence and I do kind of want to get into that in just a little bit now on primary residence used time after 2008 there's that. Trying to explain it in a clear understandable coherent manner I'm not sure that we can but we're going to give it a try stats law it is tax law that what we were taught before on the 1031 was selling and invest in non primary residence investment property of some kind in Best vacation home could be brought land I mean that in kind doesn't mean single family for single family no could be single family for apartment raw land industrial single family for tenant in common in Kalyan means investment property for investment property doesn't matter what's what sitting on top of the dirt or if there's even anything on the dirt you could actually go from single family to dirt if you want to play on how much you buy you have to buy quite a bit anyway are 877 plants you know it's going to take a regular Algonquin Round Table to understand you know this whole 'd this whole thing but we have that here we have a nice we have a semi round it was it is it's a half circle it's what it is anyway 877 planner I believe see before we get to Johnny's question on a Lou we have. Let's see Amos Ok in Connecticut somewhere Hello Amos I guess I did have a question for that round table there oh yes right now I'm going to quit trying to circumvent the new tax laws My understanding is for college tuition you can't borrow money off your primary residence and use it for pushing costs. Interest on the held actually lines of credit is no longer the ductile right so I can't do that it. Can I do this. And don't even make any sense I can buy. An investment property cash for. And then borrow the money I need for 2 weeks in costs. And then have the tenant pay off the no. Without even make any sense and I do well it has to do with timing 1st off why would you buy it for cash and then put a note on it why not just buy it with a note and use the cash to pay for the education because if you buy it if you buy it for cash and then you know it then they can remember how many times after $120.00 days some like that you put a note on it then that's equity debt that's not purchased debt and purchase debt on a property even if it's a rental technically as a deductible anyway I can't have a rental property you know let's say I bought a rental property for you know 10 years ago and somehow I was able to pay it off and I have a free and clear rental property and then I go and re you know put a brand new 1st mortgage on it and use that money to do something else I buy cars with the whatever the case may be but has nothing to do with the property technically that's not the Dr will against the property either because only the acquisition debt or the improvement that is a. Deductible against that property so if you want if you have the investment income to offset that it up but believe it interested auction that allowable then well if you don't it's not a deductible expense if I put a mortgage on a property that's been paid off. And I don't I don't use that mortgage that money proceeds from it to improvement you know whatever the property that is that's just equity that is actually debt that's technically technically sure that a lot of people do this and they write off the interest but if you get caught it's not a deductible expense so if doing what you want to do you do it just so you want to buy a property 450-0000 bucks instead of paying cash for it take the no when you buy it now that's acquisition debt and now take the money that you didn't put down in the property to pay for the education what's the difference in that other than the tax you know cleanest of the tax situation of paying 500-0048 property and then later on borrowing $300000.00 out of it to pay the expense why not just buy 84500000 with 83000018 note on it you know you can stead of being out of pocket 500 yet a pack of 200 you got the 300 to do whatever you want with so that I could do that so I can circumvent the tax the new tax well with this well that's not circumventing the tax law that's buying a rental property with a no sure that's totally legal right but I am getting a deduction and the tenants are paying off the no I should have so here I. Hope so right I guess that the abrogation know being a landlord Yes that's a fact and so if you have the money to buy the property. And you don't really want to be a landlord Why don't you use the money you're going to use the money one way or the other it's just a matter of who's going to pay it back right. Back to the education you so you we're trying to basically get somebody else to pay for the education by having the rents but. Yeah you have to have the average aggravation of being a landlord sometimes that works out I already have all the lower professor I already you know landlord you already are i already in early on I looked at it aggregation that's well Oh get out of that yeah there's aggravation already you're going to add Agger Yeah that's always good for us if you're going to do it this way buy it with the no. Ok That way you can if they want you to plunk out a college. That's always an issue to be stuck with the what the property and no college degree but you can always sell a popular and pay off the note. But you like the idea I don't have a problem with the idea as long as you're Ok with the added aggravation of the additional landlord ship markets or you've got your great thank you very much and I thank you for the call I appreciate I reasoned it was real estate to help pay for education usually they start earlier so that the cash flow from the right can you know pay for the education rather than using the loan but on a under investment property you're talking about either the investment property Yes Now you talked about doing it this way where you well the problem is if I go out and I pay cash for property and again we're just playing with numbers $500000.00 I think $500000.00 I save that I buy the property and a year for a new loan it out I own it outright and a year from now I've bought a 100000 out of out of the property it's an investment property technically that interest on that 100000 alone isn't deductible because I didn't use that money to buy the property there is a period of time I can pay cash for a property and within a certain period of time I can refinance it in get my money back and that will still be considered acquisition debt and that will be deductible up but I can remember how to have that often people will do that to act very quickly so we'll buy it now so we don't have to go through the mortgage process they've got that and then the leverage it up you know within the month or $2.00 and pay themselves back the money and take it out oh wow but there's also a lot of people to do that in regardless of where they took the mortgage it's deductible the pool of money out and as long as they're not caught they deduct the living heck out of it as laws are not caught see the rules changed when. Well for that on the on the equity debt I mean as far as the deductibility. Well equity or not so we're talking about 2 different things we're talking about just rental just debt in general getting a property and home equity debt home equity that was on a primary or vacation house home equity debt was the duct of all up to the interest on home equity that was ductile up to a balance of $100000.00 of debt until January 1st now home equity debt money that we pull out of our residence to do something other than improve the residence other than buy the residence is not deductible and it's a facts and circumstances over naming issue I could use a heel lock to buy a property and that money is the Dr Bill up to the current limit of 750000 for new purchases. That's not the type of loan it's what they use the Lotus for again if I have a free and clear home and I take a new 1st mortgage out that's not a he Loc it's a 1st mortgage but it's money I just pulled out of the property to buy a you know yeah something else with you know go around the world pay the kids' education and then use it to buy the property even though it's not a he Loc it's equity debt yes and that now is not the ductile and so but if I have a home equity line of credit that I you know maybe oh I've got a $500000.00 house and I owe $200000.00 of it and I pull $7080000.00 out to put a pool it in or put it you know do this do that into the house it's a he'll walk but it's a duck to be interesting because I guess because I'm using it to improve the house it's it's I'm a choir ring something with it within the house now I can't remember do they ask on the form because I've done this and I don't write have enough interest on mine anymore to have it all that worth it but haven't seen it yet. Is there any way that they can tell whether you use that to improve your house you know put a new I have no idea how you're going to have to prove this this is all brand new for the 2018 Rakshas so so I mean you know a lot of people did docked their home equity debt yeah they have been we've been able to use it up until recently to pay for education buy cars do other things that it was a doctoral sure anymore so the interest obviously the interest to make sure people know it's the interest and not the actual you know it so instead of going and getting a car loan for 3 percent we got a home equity loan for you know 3 percent ended activity and deducted it where the car loan technically is a deductible that that saves you a little bit don't have that option anymore no how do we know how do they know that's a keep out of the IRAs them I have no idea I guess we'll find out because I'm going to get a 1099 i n t. Yes Right this is here 10 of the 8 or 1098 yes I and t. This year I'm going to see how Turbo Tax actually does this because it. To improve and they. Already have a 5 point or right back with more of. What you feel are your greatest financial fears what about living on money market crash taxes you know retirement while we may share concerns about saving investing and retiring we each have a unique financial fingerprint and our own individual concerns we always worry about the national economy inflation. Because every investor has their own challenges a Capital Group customize a strategy for each client that addresses their specific goals and needs capital group we understand fears of outliving your money market volatility and inflation learn how a bucket strategy designed to help address your concerns schedule a complimentary consultation call 806 forth or even 580-604-1150 or click Contact Us at Cap dot com That's a cap dot com securities offered through securities l.l.c. 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Exploring options for investments that can be integrated into a fundamental strategy to manage your well now and bucket strategy investors. Like Johnny better Rick was. Here till the top of the hour well no more left yet top of this hour another hour coming up some surprising signs you'll live longer than you'd think I'd like to get to that if we have time but I do want to start the top of the next hour with some of these. What they call the 10 Commandments of comfortable retirement. We have these along with some of these investment truths out those truths that I've gone through over the last week or 2 I've had more to do with investing in things like that comfortable retirement part of that is investing but these are really just ways that things that you should have in order to make sure that you've got at least some measure of comfort in retirement and that's a big thing we don't want to be stressed in retirement we had that at work you worked for 40 years. Building up enough and you stress and you worry and you get to where you think you can quit and then finally that's it and then you've got another 202530 years of worry that you're going to run out of money and should you have retired at all you don't want that So anyway that's why we have a strategy and we'll talk about that coming up next hour and. Also I will get next hour to well listen let's talk now I guess about the sale of primary residences. We talked about 1031 exchange and how that works. On an investment property you have. Let's see is it $45.00 days to identify a property Yes And then once you start the the exchange process you have to officially identify a property that you want to be in and you can identify more than one there are rules on how many properties you can identify you can't discuss. Why that would identify that of the other in the hopes of closing on one of them but a rule that you can identify more than one. It all has to do with the value of the houses and some of the yeah there's a whole bunch of stuff so we'll get to some of that next hour and again 877 planner p l a double Any our mark is next in San Jose California hello Mark Hi Thanks for taking my call sure has got a question and I will come somebody who supports the. Finance and I'm doing the 5 to one kosher. And he should just sort of doing that just to do a lot which I'm not doing right now and put the same amount of money I have better control on the. Kids want to go to school or we get this call Sure. Instead of the. 5 point what is your thought about that I actually tend to agree with the other individual you were speaking with how old is how old are you and how old is your son. Ok well I'm. 6959 and a son and should like to know that you're an Apple Ok you're still working or your spouse is still working correct Well I'm the only source that can come I'm still working on that I plan to work on that and much money or something yeah as long as you're working the 1st money I would save for any reason at this point is the rough area the router is going to give you a lot more flexibility than the 5.9 So if I have lived if I can afford to do off I read a lot that 29 but do you think should just about the pipeline. Or just to go up for education I'm not going to you've got money myself but this job to the rock kid if you have if you have less than you know if you can only save 5000 5 dollars a year and your choices are $6500.00 a year and your choices I can put in the $529.00 for education I can put it in the raw Farai put it in the Raffaele that has significantly better options you can use any investment option you want once it's 5 years old you know once you've had a Roth Ira for 5 years and by the time your son goes to college or or higher education it will be 5 years you can use the money tax free for anything the $5.00 has to be used for qualified higher education expenses now that if your choice is rock or 529 and you're going to be at least $59.00 and a half by the time the child goes to school and you don't have the ability to fully fund you know more than one of them. Yeah the wrath is a lot better. Ok so if I'm able to get booked on these go suggest that I should do something such command or not if you can do more than the $6500.00 into the raw fire a then if you want to put some money into the 529 fine but if if if you're 6500 don't split that for 6500 goes to Roth Ok then you have a question if I want to do not bring on that lot then I just didn't like a total stock market index and put in that letter right. On the investment option you want the kids pretty young I know but what I guess what would be a good one for you know for a $5500.00 the 1st couple $6500.00 yeah using the total market index a child you said was like $21.00 and a half Oh yes so you've got yet presumably 16 years for this contribution to run a Total Stock Market Index and any kind of growth account I think is going to be fine. Ok thanks appreciate the rather better Mark thank you for the call Yeah it's a good question and that's kind of been our answer for a while and the reason here is we have we only have so much money we can save in this case we can save some call it $6000.00 a year so do I put it into a Roth Ira or do I put it into a $529.00 if I put it into the Rothera I do not get a tax deduction if I put it into the $529.00 he lives in a state where he does not get a tax deduction federal or state the money's going to grow tax deferred in the Roth Ira the money is going to grow tax deferred in the $529.00 I have almost unlimited investment choices in the rough Ira I have limited investment choices in the $529.00 I have an unlimited distribution options once it's been at least 5 years tax free I don't even have to put it I don't have to account for it I don't have to do anything with it on my tax return that's what the Roth Ira with the $529.00 I have to fill out the forms I can only use it for qualified higher education expenses to it and that's the only way I can get the tax free treatment if I use a very thing else I have to you know pay taxes and potentially penalties on the money and I have to account for it on my tax return. The Roth is much better if all I can save is that $6500.00 a less so when you get out of the penalties on a $529.00 if you don't use it for education have your kid get a scholarship. Have the kid get a scholarship in which case you can tell them I get a $10000.00 scholarship if my child has a $10000.00 a scholarship I can you can offset the penalty on 10000 dollars of the $5.00 and you're going to pay the penalty Well you guys are going to offset it you know you don't pay it you say Ok the $10000.00 coming out doesn't have the penalty associated with. It. I was just checking because I've got to you still got a minute of my 29 and you're going to hold on to this for another 18 to 202020 plus years and you get to use of her grandchild education I may go to school myself I may do that why don't you go get some room and board know why. So nice class is the only way up a grand left in there I want to you.