How having the "right" accounts set up NOW can save you in the FUTURE

ABOUT THIS EPISODE

Having your money in the "right" types of accounts can help you prepare for the future today. Financial expert, John Browning, explains some of the nitty-gritty details. What you don't know can hurt you, so listen to this episode to learn how you can set things up properly for your life and your future. 

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation your financial expert in number one Amazon best selling author, John Browning Jones the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. Hey, John Browning, it's a beautiful day here. How is it there and how are you today? It's a beautiful day here as well, and I am fine in Dandy like sugar can't that's what one am I as grandparents used to say to me, I love it. Those, those are the ones that stick rattling your brain the rest of the day. It's like, that's right, but we should put a jingle to that. You know, I won't sing it to you. I won't sing it to you. Hey, we want to talk today. We had a great discussion last time about what's what happens when inflation and taxes go up and if that's even going to happen. So if you miss that episode, you need to go back and listen to because John had some great counsel and I'm expecting some great counsel today from you as well, John, trying to understand you know how having your money in what I'm going to say are is, are quotes right, the right accounts or the right types of accounts? Having that set up now, how does that impact my future? How do I treat write the right account to build my portfolio to sustain my life and D yeah, it's it's a big topic. It can be one of the best reasons to sit with a professional financial advisor. If...

...nothing else comes out of that, getting getting the person or the business set up with the right type of accounts can it can save you a lot of headaches going forward and it can also save you a lot say on taxes and things like that as well. As I think about this question, I mean it's so broad. Most folks tend to think, well, there's like two or three accounts I get set up and that's all there is. But the reality of it is there's a plethora. There are a lot of different ways that you can set up accounts and just how they're titled makes a big difference. When you mean by that, how they are titled. Well, so, if they're if they're called what they're called, a Roth I or Fay versus a traditional IRA, okay, whether or not you have a four U B or k or whether you have a stemple or set IRA, or it could be a joint tenants in common, or it might be something else. There's there's again. You could, I use rattle these off all day long. Tod Accounts, which sounds innoculous, but it is called it's what it really means is a transfer on death account. So it eliminates a lot of hassle when you pass away. Yeah, think little, little quote, little things like that can make a really big difference. If you'RE A if you're a business owner, businesses have even more opportunities to to do some really interesting things as well. You can set up that for one K. However,...

...if you're smaller or midsize business, you may not want to deal, frankly, with the hassle of AE K I have had the experience and never never really want to have the experience again and doing all the administrative and legal work that's involved with that when I was running a couple small businesses. But there are other things so that you might set up instead of that. So not knowing that other other things exists, other types of accounts exist, could hurt you in more ways than just financially. Just hassle wise. So if you're a small business owner, you could set up a simple IRA which allows you to contribute, as to the owner, a lot more to your retirement account and also contribute to your employers and have their employees and your employees are able to contribute to that as well, without quite the hassle that's involved with safe K or a four hundred and three B or something like that. Yeah, so let me just pause there and just encourage people out there who are listening to this who are business owners, reach out to John, because there you just open up a whole kind of arms. I'm sitting here in just my mind's rolling going wow, I mean there's just and you know what, it's kind of like the last episode we did John Inflation and taxes. We just don't really want to talk about it. So we don't same thing here as business owners, that getting into what you just talked about of, you know, setting up a one K or doing all it is so complex that we just ignore it, when really what we're doing is many times leaving money on the table, because there could be things that we could be investing in and and putting money's in. If we do it the right way, that could probably help us today and in the future, and that's really kind of what you're talking about, is having them having the right types of account set up. So if you're a business owner out there and you're not doing this, reach out to John at Guardian rock well, because they he just understands it...

...and you don't, probably I don't. We need to be good stewards of what we have and and what you're just saying. They're just opened up this whole can of worms. For Myself, just okay, commercials over, go ahead. I'm sorry, it just struck it. You just struck a chord. I'm like, wow, people need to reach out to you and say, what do you know John, because John can just open up his brain and start asking you a few questions and I'm sure you can just guide somebody to go okay, here's some options, let's talk about those and and that's how you help people build a life. Right, that's right, that's exactly right, and it's again it's all about setting things up correctly for you. You know, it's not my decision, but I give you the options and show you what those options are. PROSCONS, benefits. One of the most talked about things that I have discussions with individuals on is whether or not to use a raw versus a regular IRA, and I think if I can convey anything today on this type of the podcast, is is how important it is to get that right. And you know, Rath, the Roth Ira a concept was introduced back in one thousand nine hundred and ninety seven. So it's not that old. Well, when years old as I am, that's not that old. That's right. Some people are like one thousand nine hundred and ninety seven, oh my goodness, that was, you know, the kindergarten he or something like that. But there are some significant and debatmages. If you qualify, and not everybody qualifies, because if you make over a certain amount of money you're unable to contribute to that. A lot of times again. If Your Business owner, you can control from year to year how much you make, or if you're a small business and you have a great relationship with your boss, you might say, Hey, frankly, can you pay me a little bit less this year so that I can contribute to a roth...

...and we'll make it up next year and I won't be able to contribute things like that. And and it's not just setting up the Rath and the idea that it grows. Not just tax deferred but are raw anything that you put into a roth. Number one advantage in my mind is that you don't you pay taxes on the money that you put into the Roth that year, but it can grow maybe that. That's ten years, fifteen years, twenty, thirty years of growth and when you draw it out you don't get taxed on that. That's a tremendously better unless you think tax rates are going to go to zero, which I don't see that that is a that is a tremendous said being, it's no matter if taxes go go higher or lower. When you retire, the post ability that you're going to grow its significantly over that longer period of time is it's just a it's the likelyhood. Yeah, now, and we won't camp here. And somebody asked me the other day, and I'm because I'm not a financial advisor, I didn't have the right answer. They said, okay, so on the raw thing, you pay taxes today. You put your money in and you let it go for thirty, forty years. When you take it out and it's you don't get you don't get taxed on those distributions. Right, on what you put in or on the growth? Is that right? Or do you get paid? Do you pay taxes on the growth, just not what you've put in? How? Just a real simple answer. This. This is our you're talking about. On a raw, on a Rath? Yeah, on our on a Roth, anything that you take out at when you once you retire, fifty nine and a half or over, that comes out. You don't have to pay taxes on that. The idea is they already pay taxes on the money you can put in. Yeah, and they kind of give you a, frankly, a freebeek. So before that's it goes okay, you know, and it's funny because I thought that was the right answer, but I'm like no, that's too good to be true. It's a great thing, and there's other things with a roth as well. There's a lot more relaxed ways that...

...you can withdrawma money from that force a life events like higher education for your kids or or for yourself, or for the first home purchase or things like that. You can withdraw and a you want to talk to your financial advisor or end tax advisor first, but with a regular traditional IRA or for one K or something like that, if you take that money out not only before your fifty nine and a half, not only are you going to pay taxes on it, you're going to pay a ten percent penalty on top of that, right which you know. That's just painful. And so with a rath there there may be ways that you can withdraw money from that earlier than you normally would have. Not that I am suggesting that you do that, but there are times of our lives where things happen. Absolutely do that, Yep, absolutely, but that's all the more reason why somebody us to reach out to you, John and just have those conversations, because too many times we do things and where like oops, I didn't know that right, whereas you, because you're in it all day or day, you know all the stuff and you can have conversations and ask those questions and make them process and think and figure out what's the right move for them based on what's going on in their life. And that's how you guys work at Guardian Rock wealth is. It's really personal. You ask lots of questions and you get to know your clients and you help them build a life, not just a portfolio. And so it's about more than having the right accounts. That's important, but that only plays into importance as you understand the life goals and the dreams of your clients and how you can help them enjoy life today and tomorrow. Because that's really what you guys are all about, isn't it? That's exactly right. You know that's exactly so let me. I'll just encourage people to reach out Guardian rockwealthcom John Browning as for a copy of his number one Amazon best selling book build a life, not just a portfolio, because he's really helping you...

...understand how to enjoy life in the process as you plan for retirement years and legacy giving and in all of that. And he understands all these right type of accounts to set it up. And it is important as you know. You know, in my life a different of mine passed away suddenly I'm helping his widow walk through all this and they had some accounts that were in his name, some accounts that were in her name and some accounts that were in both of their names, and so, you know, we're having to work through all of that. That's part of what you just discussed about having the right type of account and how do you set things up now that when you die it's an easier transition? So all of that takes place when we don't even think about setting things up at one level. So that's why you're so valuable and what you do. So thank you. Yeah, and we just scratch the surface to that. On things. You talked more about retirement accounts, but especially for someone who has maybe they even here did it, maybe they've made it themselves. So whatever, if they're you know, they have some wealth. Protecting that and some type of trust is very important as well. And when you when you write up that trust paperwork, you know writing it in a way that is simple and easy and straightforward but very detail, can make all the difference in the world. Yes, and I trust that we will talk about that on another episode. That's right. Yep, I need a drum set, but that's no, that's real and I do want, I do want to open up that that box as well, because at trust is something again, it's something people don't want to think about too much because it's dealing with my death and all that. The days coming, and it is. It's incumbent upon us, I believe, as men, as husbands, to prepare all of these documents and do all that hard work so that we are protecting our wives in our family. That's part of what we...

...are called to do, I believe. So I definitely want to do an episode around just what you just talked about trust, in the importance of having one set up, working with a great estate planning attorney, a great financial advisor, great CPA, to make sure everything's done well, and then educating your family that here it is and here's how it should work. Right, that's an entire episode. So let's let's make this and, just before anybody gets upset, right, the reason, the reason that I feel that it's the that's it's the husband's or the or the man's responsibility, is not because we're more important or anything like that. It is however, of fact that we're not likely to be around quite as long as our white sorry, that's right, that's right. It's just it, just, it's just it. For some reason God wants us in heaven sooner. I'm farted that one out yet. That's right. So you don't get any much troubles for my wife, except that's probably right. Yeah, Hengus. Oh now. So, all right, John, this has been an exciting withst's been good talking about the right accounts now, setting them up properly now. That can save you some money in some hassle in the future. So we will look forward to talking with you in on another episode of Your podcast. Or have a great rest of your week. All right, I'll do that. You do the same. Money really is a big part of our lives, and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that could help you build the life that you want. If you like, John Emilie a free copy of his book build a life, not a portfolio. Go to John's website, Guardian rockwealthcom, and click the contact US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it's released. Have a terrific day.

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