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 podcastwith John Browning. Build your life as a relaxed and unedited conversation your financialexpert in number one Amazon best selling author, John Browning Jones the founder of GuardianRock Wealth and serves clients across the United States. John's the author ofthe book build a life, not a portfolio, a guide to your financialfuture based on your personal values, which you can purchase on Amazon, orstay around to the end of today's show and I'll tell you how to geta free copy mailed right to your door. I'm Michael The lawn, your hostfor the next few minutes as we chat with financial expert and business ownerJohn Browning. Hey, John Browning, it's a beautiful day here. Howis 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 amI as grandparents used to say to me, I love it. Those, thoseare 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 toyou. Hey, we want to talk today. We had a great discussionlast time about what's what happens when inflation and taxes go up and if that'seven going to happen. So if you miss that episode, you need togo back and listen to because John had some great counsel and I'm expecting somegreat counsel today from you as well, John, trying to understand you knowhow having your money in what I'm going to say are is, are quotesright, the right accounts or the right types of accounts? Having that setup now, how does that impact my future? How do I treat writethe 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 tosit 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 accountscan it can save you a lot of headaches going forward and it can alsosave you a lot say on taxes and things like that as well. AsI think about this question, I mean it's so broad. Most folks tendto think, well, there's like two or three accounts I get set upand 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 andjust how they're titled makes a big difference. When you mean by that, howthey are titled. Well, so, if they're if they're called what they'recalled, a Roth I or Fay versus a traditional IRA, okay,whether or not you have a four U B or k or whether you havea 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 deathaccount. So it eliminates a lot of hassle when you pass away. Yeah, think little, little quote, little things like that can make a reallybig difference. If you'RE A if you're a business owner, businesses have evenmore opportunities to to do some really interesting things as well. You can setup 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 Ihave had the experience and never never really want to have the experience againand doing all the administrative and legal work that's involved with that when I wasrunning a couple small businesses. But there are other things so that you mightset 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 couldset 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 andhave 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 threeB or something like that. Yeah, so let me just pause there andjust 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 ofarms. I'm sitting here in just my mind's rolling going wow, I meanthere's just and you know what, it's kind of like the last episode wedid 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 whatyou just talked about of, you know, setting up a one K or doingall it is so complex that we just ignore it, when really whatwe're doing is many times leaving money on the table, because there could bethings that we could be investing in and and putting money's in. If wedo it the right way, that could probably help us today and in thefuture, and that's really kind of what you're talking about, is having themhaving the right types of account set up. So if you're a business owner outthere and you're not doing this, reach out to John at Guardian rockwell, 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'rejust saying. They're just opened up this whole can of worms. For Myself, just okay, commercials over, go ahead. I'm sorry, it juststruck it. You just struck a chord. I'm like, wow, people needto reach out to you and say, what do you know John, becauseJohn can just open up his brain and start asking you a few questionsand 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 allabout 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 discussionswith 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 thepodcast, is is how important it is to get that right. And youknow, Rath, the Roth Ira a concept was introduced back in one thousandnine hundred and ninety seven. So it's not that old. Well, whenyears old as I am, that's not that old. That's right. Somepeople are like one thousand nine hundred and ninety seven, oh my goodness,that was, you know, the kindergarten he or something like that. Butthere 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 contributeto that. A lot of times again. If Your Business owner, you cancontrol from year to year how much you make, or if you're asmall business and you have a great relationship with your boss, you might say, Hey, frankly, can you pay me a little bit less this yearso that I can contribute to a roth...

...and we'll make it up next yearand I won't be able to contribute things like that. And and it's notjust setting up the Rath and the idea that it grows. Not just taxdeferred but are raw anything that you put into a roth. Number one advantagein my mind is that you don't you pay taxes on the money that youput into the Roth that year, but it can grow maybe that. That'sten years, fifteen years, twenty, thirty years of growth and when youdraw it out you don't get taxed on that. That's a tremendously better unlessyou think tax rates are going to go to zero, which I don't seethat that is a that is a tremendous said being, it's no matter iftaxes go go higher or lower. When you retire, the post ability thatyou're going to grow its significantly over that longer period of time is it's justa it's the likelyhood. Yeah, now, and we won't camp here. Andsomebody asked me the other day, and I'm because I'm not a financialadvisor, I didn't have the right answer. They said, okay, so onthe raw thing, you pay taxes today. You put your money inand you let it go for thirty, forty years. When you take itout 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, justnot 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 whenyou once you retire, fifty nine and a half or over, thatcomes out. You don't have to pay taxes on that. The idea isthey already pay taxes on the money you can put in. Yeah, andthey kind of give you a, frankly, a freebeek. So before that's itgoes okay, you know, and it's funny because I thought that wasthe 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 forcea life events like higher education for your kids or or for yourself, orfor the first home purchase or things like that. You can withdraw and ayou want to talk to your financial advisor or end tax advisor first, butwith a regular traditional IRA or for one K or something like that, ifyou 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 paya ten percent penalty on top of that, right which you know. That's justpainful. And so with a rath there there may be ways that youcan withdraw money from that earlier than you normally would have. Not that Iam suggesting that you do that, but there are times of our lives wherethings happen. Absolutely do that, Yep, absolutely, but that's all the morereason why somebody us to reach out to you, John and just havethose 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 orday, you know all the stuff and you can have conversations and askthose questions and make them process and think and figure out what's the right movefor them based on what's going on in their life. And that's how youguys work at Guardian Rock wealth is. It's really personal. You ask lotsof questions and you get to know your clients and you help them build alife, not just a portfolio. And so it's about more than having theright accounts. That's important, but that only plays into importance as you understandthe life goals and the dreams of your clients and how you can help themenjoy 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 acopy of his number one Amazon best selling book build a life, not justa portfolio, because he's really helping you...

...understand how to enjoy life in theprocess 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 adifferent of mine passed away suddenly I'm helping his widow walk through all this andthey had some accounts that were in his name, some accounts that were inher 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 partof what you just discussed about having the right type of account and how doyou set things up now that when you die it's an easier transition? Soall of that takes place when we don't even think about setting things up atone level. So that's why you're so valuable and what you do. Sothank you. Yeah, and we just scratch the surface to that. Onthings. You talked more about retirement accounts, but especially for someone who has maybethey even here did it, maybe they've made it themselves. So whatever, if they're you know, they have some wealth. Protecting that and sometype of trust is very important as well. And when you when you write upthat trust paperwork, you know writing it in a way that is simpleand easy and straightforward but very detail, can make all the difference in theworld. Yes, and I trust that we will talk about that on anotherepisode. That's right. Yep, I need a drum set, but that'sno, that's real and I do want, I do want to open up thatthat box as well, because at trust is something again, it's somethingpeople don't want to think about too much because it's dealing with my death andall that. The days coming, and it is. It's incumbent upon us, I believe, as men, as husbands, to prepare all of thesedocuments and do all that hard work so that we are protecting our wives inour 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 talkedabout trust, in the importance of having one set up, working with agreat estate planning attorney, a great financial advisor, great CPA, to makesure everything's done well, and then educating your family that here it is andhere's how it should work. Right, that's an entire episode. So let'slet'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 theor 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 quiteas long as our white sorry, that's right, that's right. It's justit, just, it's just it. For some reason God wants us inheaven sooner. I'm farted that one out yet. That's right. So youdon't get any much troubles for my wife, except that's probably right. Yeah,Hengus. Oh now. So, all right, John, this hasbeen an exciting withst's been good talking about the right accounts now, setting themup properly now. That can save you some money in some hassle in thefuture. So we will look forward to talking with you in on another episodeof Your podcast. Or have a great rest of your week. All right, I'll do that. You do the same. Money really is a bigpart of our lives, and John Browning can help you and your family learnhow to keep money in the proper perspective. It's important, but it's only atool that could help you build the life that you want. If youlike, John Emilie a free copy of his book build a life, nota portfolio. Go to John's website, Guardian rockwealthcom, and click the contactUS link and send your request. John Will Mell a copy of his bookright to your door absolutely free. Thanks for listening to building your life podcastwith John Browning. Be Sure to subscribe to this podcast so each new episodewill be sent to you automatically when it's released. Have a terrific day.

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