Episode 2235 notes

In American history, the wife a lot of times took care of the checking account and the banking accounts, but the husband took care of the investments, and women have historically had access to less financial information. It wasn't until 1974 where nationwide women could have their own checking account, their own credit cards and their own loans.

Today, get a report card on your financial health and security and your ability to continue your lifestyle the way you want to continue it.

In studio with me are Rick and Annie Dwyer. They are the founders and owners of SageonRQ.ai. We're educating and we're informing today you about your retirement portfolio, what you should do, what you shouldn't do and will totally objectively will tell you exactly where you are. And if you go further with the program, it'll tell you where you could be. If it sounds complicated, it’s not.

As Annie says: “the analysis complex, but the experience isn't. All you have to do is answer a few simple questions in the website questionnaire. And these are things you already know, like how old you are, ow much you're getting in Social Security, what your pension amount is going to be. These are just simple questions. Once you're done with them, you hit the generate button and you wait a few minutes and you have your report.”

This is season 22 ep[isode 35 of America's Healthcare Advocate. I'm Cary Hall.

Learn more at: https://sageonrq.ai

[ referenced in the show]

 RMD (Required Minimum Distribution) is the mandatory annual withdrawal from specific tax-deferred retirement accounts mandated by the IRS. A Monte Carlo simulation is a computerized mathematical technique that uses repeated random sampling to predict the probability of different outcomes in a process that is hard to predict due to random variables.

Cary Hall, America's Healthcare Advocate brings you topics and guests that are relevant to your health, the health of your business, healthcare needs, as well as critical health insurance information. https://www.americashealthcareadvocate.com/

If you have a service, product or insight related to healthcare, health lives and heathy business, consider partnbering with us: https://www.americashealthcareadvocate.com/sponsors

Episode 2235 Transcript:

Cary Hall

Hello, I'm Cary Hall. Coming up on today's show, we're going to talk about how to empower women to understand. Are you going to outlive your money if you outlive your spouse? That's a lot of what we're going to talk about today on America's Healthcare Advocate. Stay tuned. Listen and learn. As we talk to Rick and Annie Dwyer from SageonRQ.ai.

Announcer

And now America's Healthcare Advocate, Cary Hall.

Cary Hall

Hello, America. Welcome to America's Healthcare Advocate show. Broadcasting coast to coast across the USA here on the HIA Radio Network. You can find out more about us by going to our website, AmericasHealthcareAdvocate.com. By the way, 847,000 downloads on the podcast and YouTube channel. Latest numbers. Thank you to all of you out there in the audience.

Those of you listening on terrestrial radio. All of you who download these podcasts and download all of our YouTube. We greatly appreciate you. The numbers keep going up and keep going up because of you. We're trying to provide good information to educate and inform on a host of topics. Today's topic is going to be your retirement and financial planning.

And we're going to talk about you should be doing financial planning. We're going to be talking about your report card. Do you get a report card? Do you know what you're actually doing with your portfolio? And have you had an objective look at that portfolio to tell you whether you're being told by your financial planner or whoever is helping you with this, or doing it on your own?

Is it really working well in studio with me today? Rick Dwyer and any Dwyer, the founders of SageonRQ.ai. Welcome back. Rick.

Rick Dwyer

Oh. Thank you. Glad to be here.

Cary Hall

Glad to have you back. And welcome, Annie. Your first time?

Annie Dwyer

Yes. Thank you for having us.

Cary Hall

Well, I was looking forward to getting you here today. So was Dave. So we're happy to have you here. So let's just kind of jump right into this thing. The question is, Annie, will I outlive my money?

Annie Dwyer

Yes. And that's the question that most retirees or pre-retirees are trying to answer. And “will I outlive my money?” is only one part of what we are trying to solve here. So we wanted to create a system that integrated all parts of the retirement strategy and optimize it so that you're using your assets in the most efficient manner. So will I outlive my retirement is part of the question.

Are you using it efficiently? Is the second part.

Cary Hall

All right. So let's talk about that a little bit. What you know different assets for different people very different outcomes, taxes, withdrawals, social security. We talked about this in the first show. What happens if one spouse passes and our daughter works at Morgan Stanley? I'm very fortunate to have somebody that has this kind of knowledge. But I had not thought, oh, until we did that show.

What happens if I pass for Laurie? Well, Laurie passes this before me. How that changes the whole equation. Talk about that.

Rick Dwyer

Yeah. So that's one aspect of it. I think I'd like to bring it back to this. And I think this is a really easy way to explain it. If you had two couples, very similar, same assets, same age going along that line, they could have two dramatically different retirements. And that's because of how their assets are number one deployed, how they've impacted taxes.

What have they done for spousal survival which is what you just brought up. All of those parts come into play, and the outcomes can be radically different just by making some simple changes or not making some simple changes. So SageonRQ.ai was built to have people see what their current plan outcomes could look like. And part of that process is we have what's called navigator, and that can show them how they can implement changes to get to the results shown in their audit.

Cary Hall

You know, when we first did this, Annie, I looked at, I said, you know what? This is a report card. Yes. Do you know, think to back when you were a kid and you knew the report card was coming and you were either watching the mailbox every day or you didn't bring it home. And if you did, you hid it for a couple of days until you figured out how you're going to explain that it really wasn't all that good.

At least those were my report cards. So there is the problem we have is, you know, and you see all these retail financial planning offices out there, places like Edward Jones and now you've got health insurance and PNC brokers at State Farm and other places wanting to do financial planning. Wells Fargo, you know, the banks are doing it.

There's nothing against those people doing it. The question is, how do you know as the person who's entrusting them to make sure your money is going where you want it to go? That that's really the best way to do this. And so that's the whole idea, at least when I listen to what Rick said. And we first started talking about this, this is a report card.

Annie Dwyer

Yes. Because most retirees, they they earn, they save, they invest. And then when they retire, they don't know that there's a different way to manage their assets. And so what we're trying to show them is that there's an alternative to just taking money out, paying your taxes, and not ever looking at the alternative options. And we're presenting them with alternative options.

And what you just said the audit is diagnostic. It will show whether or not there are ways to improve your retirement.

Cary Hall

The other thing about this, and I'm going to relate a personal experience here. But the other thing about this, Rick, is it's totally objective. This is not subjective. This is not something I think the market's going to do this or I think this is going to happen over here or you know, that kind of situation. So talk about the fact of the objectivity because to me that's the key piece here.

This is a set of facts. This is not what we think may happen. We we know what's going to happen if one passes. Your Social Security is going to go down. You're not going to have this income. You're not going to talk about that.

Rick Dwyer

Yeah. So some of the things that people may have a question about is how do you do things like market returns. So whatever we do on a market return for the current way they're doing things as well as what we're doing in SageonRQ.ai are effectively the same. So we're using we're not trying to outperform because we used a different rate of return in SageonRQ.ai what we are looking at is what would happen if you optimize your Social Security as an example, what would happen if you, optimize your tax position for where you are just by doing simple things? Delay how you take your Social Security.

Cary Hall

To 70, right?

Rick Dwyer

Or what can I do to minimize the impact of RMD’s that will impact, you know, my life now as well as if I married my spouse's life after, you know, one of us passes away, what can we do today to make our future better for us as well as for our heirs?

Cary Hall

Some of the other things that we talked about in the first show that you do, and it is what happens if things do turn out. If we do start to go to a recession, what happens if this whole issue around the bond markets right now impacts where we are in the markets, returns and all rest of it. Before we go to break.

Just talk about that a little bit. Rick.

Rick Dwyer

Yeah. So we're we're looking we do a Monte Carlo simulation within all of our tests. And so we do see the outliers. We see the the best possible outcomes and the worst possible outcomes. But we don't focus on those. We focus in the middle about where the overall returns are going to be. Because the mean is, you know, where we spend most of the time.

But the reality to your point is, if your portfolio and your overall allocation of assets is done correctly, you'll be able to weather those storms. I can't tell you in my practice as a financial advisor, how many clients come to me and all of their money is in the market?

Cary Hall

Oh yeah. All of it.

Rick Dwyer

And I don't care what their age is. They could be in their 50s, 60s and 70s and all their money is in the market. That's okay. If you're willing to take on that layer level, you know that that level of risk. But there are alternatives to where you can mitigate some of that risk and be ready for when those eventualities do happen.

Cary Hall

That's part of what we're talking about here today. And what we're trying to do is get people to understand this is the idea behind this. You know, we say educate and inform on this broadcast. That's what we're doing right now. We're educating and we're informing. And that's what they do at SageonRQ.ai. SageonRQ.ai, that correct. That is right.

Cary Hall

To see that right out of the gate didn't even look at the script. SagionRQ.ai. Go up there. It's a simple thing. Download it on your phone, take a look at it. You can fill it out, go through it. They'll they'll give you the report card. Then you'll know where you are. And you can start into the process to learn more about how your portfolio is performing and how it could perform if you made certain changes.

In studio with me, Rick Drier and Annie Dwyer. They are the founders of SageonRQ.ai. The website is SageonRQ.ai, go up on the website. It's great website. A lot of information up there.

Really easy to do. Do it on your phone. Do it on your computer. It's a great way to get the objective, look objective, look at where you are today and then start asking yourself questions like you heard Rick, just do earlier. Well, what happens if this spouse passes or what happens if, if, if this doesn't work, what happens if the market goes south?

Those are the kinds of things you can get information on here. Objective information that can be very helpful to you. Annie, you and I talked about this the other day, we had a little prep before we show prep call that we did. And one of the things that dawned on me was that oftentimes, the men in the family, especially in our generation, my generation, because I'm 77, it oftentimes men handle finances.

That's just the way it is not right, wrong or indifferent in my family. I'm fortunate because I always say my wife handles the money, which is why we have money. If I handled the money, there'd be a garage full of hot rod cars. But, but, but when in that situation where the wife isn't aware of what's going on financially, she's not involved.

She's not talking to the financial planner, the guy at Edward Jones or the guy at at Morgan Stanley or the gal, you know, at State Farm or at Wells Fargo Bank. And then he has a heart attack on the 17th hole on the green. Okay. And this happened to my son in law with his father past had a windowmaker heart attack, and they found him, you know, in his home.

And it happened in the kitchen. And his wife had no idea they had a big farm. They were alfalfa farm. They had no idea where the assets were. Anything was. The irony of that was that she was actually an accountant. So it made me think of that when you and I were talking. So talk about that situation and why this this particular piece, a you know, what SageonRQ.ai does can be enormously helpful in just educating and understanding.

Well, where am I?

Annie Dwyer

Yes. So you brought up an interesting point. Many households, especially in our generation, the wife a lot of times took care of the checking account and the banking accounts, but the husband took care of the investments, and that's still true today. In a lot of households, women have historically had access to less financial information. And it wasn't until 1974 where nationwide women could have their own checking account, their own credit cards and their own loans.

00;13;00;28 - 00;13;07;15

Cary Hall

Wait, wait, I didn't even know that. Are you serious? Before... Before a woman could have her own checking account?

That's remarkable.

Annie Dwyer

The Equal Credit Opportunity Act of 1974 gave women the right to have their own checking account, their own credit cards, and apply for loans by themselves. Before that, they would either have to have a husband or a male relative sign for them.

Cary Hall

I didn't know that, Rick.

Annie Dwyer

1974, that was only 52 years ago.

Cary Hall

That's my point.

Annie Dwyer

So in this generation, these most of the women grew up not knowing about finances because they weren't given the information. So it's it's catching up now, and across the board. Most people, men and women, don't know about retirement planning.

Cary Hall

No, they hand it off to somebody that they hope and pray. And a lot of these financial planners are absolutely phenomenal at what they do. And then there are some that aren't so phenomenal. How do you know when you haven't done this or worked for somebody for a number of years? Like I said, I'm very fortunate.

My daughter works at Morgan Stanley. I'm a lucky guy. But to your point, okay. And if the husband's been handling this and it's isolated and now all of a sudden, you know, he passes and she gets through the grieving period and all the rest of it. And then she's going, well, wait a minute, as Rick pointed out.

Well, my Social Security just got cut in half. Right? Okay. You know, now I've got these tax issues. I don't have them. Not in the same tax bracket. Everything just changed.

Annie Dwyer

Your filing status has changed.

Cary Hall

Correct. Okay. And then how does all that impact how I'm going to live the rest of my life? Or am I going to outlive my money? Now that you know, it's just me.

Annie Dwyer

And a lot of couples don't even know that they need to think about that. And so one of the things on the on the dashboard, it'll show you how that affects the surviving spouse. And so you can get a really fast glimpse of how you're going to be able to survive if you are the surviving spouse.

Cary Hall

Women typically outlive men. Yes, by about.

00;15;03;07 - 00;15;04;01

Annie Dwyer

6 to 8 years.

Cary Hall

I was going to say seven. So I was right there with you about. Yeah, by seven years. And now you're in your late 70s, early 80s, whatever the case may be. And this happens and you have no clue what's going on, this is the way. Do it now. Yes. So you will have the clue. Isn't that the message you're trying to get out to women specifically?

Annie Dwyer

Yes. And they can have confidence in their retirement planning. So the future doesn't look bleak.

Cary Hall

And it doesn't mean that, okay, the husband's doing this all along. He's still doing it. What you're not saying that he shouldn't be doing it. What you're saying is, let's both understand what's going on here. Yes. And what what's going to happen if I'm the one that's not here? And conversely, yes, if she passes, it's going to change.

His tax status is going to change the, you know, his Social Security, the whole nine yards. That's all going to change. So this gives that opportunity to understand that. But again I'm still floored by that. 1974 I cannot believe that I would have if you would have said 1950 or 1935, 1974.

Annie Dwyer

Yeah. California was the only state that had allowed it before that.

Cary Hall

That is amazing.

Annie Dwyer

Well, I shouldn't say the only state there was a couple, but California never could have been I think since like 18 something. You could do it in California, but the rest of the country had limitations.

Cary Hall

That's just unbelievable.

Annie Dwyer

And one of the best parts is not only that this works for women and for everybody. It's the ease of use like we have simplified the process so that the process is easy, but the analysis is complex. And so they are going to get a complex analysis of their retirement situation. But all they have to do is answer some simple questions and press a button.

And a few minutes later they're going to have the answer.

Cary Hall

And then that information gives them the ability to understand where we are now. And, and then you can get into the deep dive of if something happens here, if something happens over here, as Rick talked about, if the market takes a turn, you know, that kind of situation.

Annie Dwyer

Yeah. So the next step after that is the Retirement Strategy Navigator. You did your audit, you got your report card. Now you want to take it a step further and try to implement it. The navigator is going to give you step by step. There's no guesswork.

Cary Hall

And again I think the thing, Rick, that I really want to make sure everybody understand is this is not subjective, as I said in the opening, you're dealing with facts. These are the facts. This is the fact of what's going to happen to your tax bracket. This is the fact of what's going to happen to your Social Security.

Cary Hall

This is the fact all these different pieces are going to make a difference. Am I right or wrong about that?

Rick Dwyer

No. You're right. So you know, what most people don't think about is when their surviving spouse does pass away, their tax bracket goes immediately to single. So if you're in the 12% bracket, you're automatically in the 22% bracket. So there's big impact from a tax perspective. There could be big impacts from income perspective because half your Social Security is gone or one part of your Social Security is gone.

And then, depending upon how you're set up in the very beginning, under your current plan, it could impact how long your money will last. Because now your taxes have gone up and your income has gone down. So now you're having a survive on your existing portfolio to a much greater extent. All of those come together to impact what your current portfolio is doing.

Cary Hall

And that is what they do at SageonRQ.ai. The website is SageonRQ.ai. If you go up on the website, you'll see this is not difficult to do and it can make a big difference. It'll give you a clear the report card, a clear picture of where you are.

You're listening to America's Healthcare Advocate broadcasting here on the HIA Radio Network. Coast to coast Cross, USA here on the HIA Radio Network. My producer today, Mr. Dave Thiessen, who does all the work on the podcast and YouTube platform, and Garner Cowdrey here in our studios at Cumulus, who does all the audio work, puts his whole thing together so we can get it up there and get it on the air and also get it out to all of you that watch, listen and download on podcast and YouTube.

All right. So I think one of the things that's important, Rick and it dawned on me, the day I was doing show prep for this. When you go to fill out that form. It's like, are they selling this information to anybody? Will you answer that question, please? Yeah.

Rick Dwyer

We're definitely not selling the information. All that information stays within SageonRQ.ai which has encrypted databases that we store on Amazon Web Services. Fully secured. We don't sell the information, and we don't even use it for ourselves to try and go after your business. This is not meant for that. This is strictly we created this for our own clients, and then we decided we're going to offer it out to the public so they could get a report card on where they stand.

If they want to go to the navigator to find out how to transition from what they're currently doing to what the results in the audit were, or to do some what if scenarios, they can then upgrade to the navigator plan. That's all this is for. There is no getting your information trying to sell you, or trying to sell that to other advisors to get your information.

There's a strict firewall between that and what we do.

Cary Hall

Yeah. So it's critical that the audience to understand this. You're not trying to be their financial planner. No. All you're trying to do is give them their report card. That's basically it. So I want to make sure everybody understands that that's what this is about. Its limited because that's what it's for. It's not. Yeah. Rick is a financial planner.

This is not what this is about him becoming your financial planner or trying to replace your current financial planner. It's about the report card. That's the whole purpose. So we talked about this on break. One of the things you think about is you as you age is what is my legacy? What am I leaving for my children?

I've got six grandchildren, okay. Two daughters, six grandchildren. Okay. What are Lori and I going to pass on? That's important to me. I think it's important to a lot of people. So talk about how this can be used. Both of you talk about this. How can this be used to present your heirs with a snapshot of here's where we are.

Here's where this will be in five years, ten years, whatever the case may be, and give them an idea. Sometimes this is uncomfortable conversation between parent and children. I just had this conversation with my one of my daughters in Pasco, Washington a week ago, and I had the information. I knew what I was talking about because I got it from my other daughter who works at Morgan Stanley.

But this does something completely different. So talk about that. Rick, let's start with you.

Rick Dwyer

So, you know, having dealt with clients for over 30 years, I can tell you that most of them have one of two initial thoughts. One, they have an amount they definitely want to leave to their children or their grandchildren. And there's another group that says, well, you know, we built this money ourselves and we want to make sure that we optimize our retirement.

If there was anything left over. Great. We would pass that on. In this case with SageonRQ.ai the best part about it is at the very end of the report, you will see what will be left to your heirs, but the difference will be what will be based on your current plan and what will happen under the SageonRQ.ai plan.

And normally the biggest difference is that the bulk, if not all of the SageonRQ.ai will be tax free. That's the big difference. So your heirs will never need to worry about whatever changes come on the tax code. So you don't have to determine with Sageon and how much you're going to leave to your heirs. Sageon will already calculate what will be remaining for your heirs.

And the best part about that is until it goes to your heirs, that's all money that's available to you on a tax free basis.

Cary Hall

Now, you know, this is interesting because we had a motorhome and I know, I know, I know Rick has a motorhome. And one of the things you used to see is the license plate on the motorhome was we're spending our children's inheritance. Exactly. Which is what you make me think of when you said that. So. But but this is this is an issue, okay? And and aside from just being a report card, it gives you something to set out and have a substantive conversation with, assuming you want to do that. Right?

Annie Dwyer

Yes. So you can use it as the dashboard has your taxes that you'll pay, taxes that are saved, forced income reduction. So how much in RMD you're going to pay and what is the difference between the two plans, the tax free portion of your ending value and then your ending value. So all of that is available. So if you showed that to somebody you can say right, right here in black and white, it says this is what the our ending portfolio should be. And this is what potentially you will have after we are no longer here.

Cary Hall

You know, to me, Rick, that's a valuable tool okay. I mean, assuming you're not the guy that's got the license plate on the 45ft RV that says spending the inheritance, okay, that you really are planning to leave a substantial amount, you know, because my desire and Lori's desire is to leave enough money that our grandchildren's college is all paid for it.

That's probably one of the top things that people in our age bracket think about for their grandchildren. Correct. I mean, your financial planner, I mean, is that something you hear a lot?

Rick Dwyer

Yeah. So, I mean, the other thing that you could do, let's look at it from a different perspective. So what if you see that you have this large ending balance much larger than you thought? Well guess what. You get to increase your income.

Cary Hall

Run that again. One more time.

Rick Dwyer

So let's say your ending balance is larger than what you thought. Yeah. And it's also tax free. Well you don't have to leave that all to your heirs if you don't want to. You can actually increase your income while you're living.

Cary Hall

Or go take that world tour you wanted to take Cunard cruise. Exactly.

Rick Dwyer

Or get the RV you were thinking about.

Cary Hall

There you go. Yeah. All right.

Annie Dwyer

So one of the test audits I ran was just for a typical couple. The husband was 64, the wife was 62. They were they were going to retire at 65, but not take their Social Security until they were 67. And they had a total of $2 million in assets. And at the end on the audit, it showed that the ending value, if they did nothing and just stayed with their current strategy, they would have a little over $1 million.

With SageonRQ it would be 7 million and over 6 million of that was tax free.

Cary Hall

Holy cow. That’s amazing, Rick. That they could that big difference by using this.

Annie Dwyer

Yeah. And everybody's audit is going to be different. There's there's no set values in there. Like if you put in this much this is what we're going to do. Everything is determined by the particulars of that user for that retirement plan.

Rick Dwyer

But the reasons for that is, number one, you in that particular case, we reduced the RMD’s So you're not eating into your portfolio. Number two, every time you take in those RMD’s you're paying more tax. So and you have a growing balance. You're paying the tax on. So by transitioning to tax free dollars over time in the optimal method you reduce two things the amount of income you're forced to take and the amount of taxes you're forced to pay.

Cary Hall

And that's really what you're trying to do here.

Rick Dwyer

We're trying to optimize their portfolio for their circumstances.

Cary Hall

What a pleasant surprise, Annie. I have $2 million. It looks like I have. No, actually, you're going to have seven million dollars. Yes. I mean.

Annie Dwyer

If you think of the parts of the retirement plan as, as dials and people want to, you know, change the dials a little bit, okay. I want to pay a little bit less taxes. I want to have a little bit more ending value. I don't want to pay so much in RMD’s. How do you adjust those dials so that every one of those comes out to the best. You would have to run thousands of simulations, which is what we do.

Cary Hall

And it's all it's all done for them. So that at the end of the day, here again, here's the report card that tells you where you are. And if you made these adjustments, if you made the Sageon adjustments, here's where you could be. Yeah. So before we go to break. So they do that now they go back to the financial planner and say, hey, why don't you take a look at this. You know, you're an FA guy. Okay. How do you think that's going to be received.

Rick Dwyer

Well, I think, you know, sometimes that financial advisor may give a little pushback. Well, they don't know all your circumstances. And to be frank, the audit report isn't going to be as detailed as a navigator report. But that audit report can show whether they're on the right track or not. Have they made some of these adjustments that could impact their spousal survival if they're married or their long term account values?

Over time, they should be open minded because no one's trying to take their business from them.

Cary Hall

Well that's critical. You've already. Yeah.

Rick Dwyer

Okay. We're not interested in in generating these reports. So we get leads to call and etc.. All we're interested in doing is giving an independent third party review of where they currently are, where they could be so that it does generate a conversation for them. And if they're married with their spouse, and then if they want bring it to their advisor, have that conversation.

Rick Dwyer

How do we get from where we are to what this report shows us? That's the goal. The goal is to improve their life.

Cary Hall

And that's really what it does, right? Yes. I mean, from 2 million, I still have really stuck in my head from 2 million to 7 million. Yes. Just by making the changes that Sageon is telling them these are the things you need to do.

Annie Dwyer

And for me, the most impactful part was that over 6 million of it was tax free.

Cary Hall

Yeah, that's that's really impactful. Yes. I don't think anybody likes paying the IRS any more than they have to pay them. We'll be right back after break. We come back. We're going to talk about how small decisions can compound over many years, either in a positive way or negative way. We're going to talk about those small decisions. Stay right there.

The website you want to learn more about this. They've got your attention now SageonRQ.ai. SageonRQ.ai is the website. If you go up there, you'll see everything we're talking about.

In studio with me today are Rick and Annie Dwyer. They are the founders, the owners of SageonRQ.ai. The website is SageonRQ.ai. We're educating and we're informing today you about your retirement portfolio, what you should do, what you shouldn't do. There's a report card. Totally objective will tell you exactly where you are. And if you go further with the program, it'll tell you where you could be. We're going to talk about that right now. So let's jump in right off off off the bat Rick, and talk about taxes. And you said an interesting word that's going to make a lot of people cringe. Prepay taxes. Why would you do that.

Rick Dwyer

Well, because you have a choice right. So one of the things about income taxes is that you literally have a choice. If you have pretax accounts, you can choose to pay them over time, which is what the vast majority of people are determined to do. In most cases. Doing that, you will pay an ever-increasing amount of taxes over your lifetime.

But by preparing the tax, you accomplish two things one, you're able to then convert those pretax dollars to, say, tax free dollars through, let’s say, a Roth account. Now you have immunize yourself from any future tax changes going down. I don't know if taxes are ever going to change. We're in the lowest tax. I know.

Cary Hall

I know you better. You better start reading the Wall Street Journal a little more often, because I'll tell you what, as soon as we get a Democrat administration, taxes are going to change, pal.

Rick Dwyer

Well, and they may, but it may not change for the people that are retired. But in any event, we're not going to predict what's going to happen with taxes.

So everything that we're doing at SageonRQ.ai assumes that current tax law does not change, right? So in the previous segment, we talked about the vast difference between a current plan and a Sageon plan. The difference was 6 million tax free dollars. That's assuming tax rates stay the same. Imagine if they had gone up. Yeah, they would have been even more vastly different.

So getting back to taxes. So if you prepay the tax you do a couple things. You eliminate taxes. And the future growth of that portfolio is now totally tax free. And you've immunized yourself from ever increasing potential taxes going down the road.

Cary Hall

Powerful. That is a powerful, impactful statement that you can. That's something that I'm sure 90% of the people are not thinking about. Okay. I mean, when you talk about prepaid taxes, people are about what are you talking about? Why would I do that? Well, you just give a classic to any.

Annie Dwyer

A key to that is how much how much are you going to convert and when are you going to convert it? And one of the things that SageonRQ.ai does it actually will in the navigator part will tell you exactly how much to convert and in what year. So there's no guesswork, but a lot of people will do is they’ll say, okay, I want to convert this much and they'll break it down, maybe to even amounts for however many years. This actually optimizes for the exact amount that you need to convert to optimize.

Cary Hall

Over a period of time or whatever.

Annie Dwyer

Yeah, sometimes it'll do it all in one year, right? Sometimes it'll do over several years, but it's optimized for you. There's no set amount. So whatever works best for your portfolio plan, that's what you're going to get.

Cary Hall

That's interesting, Rick, because basically what you're saying is if it's going to impact your lifestyle, where you're going to have to decrease your lifestyle, then maybe you don't want to do this all at once. You might want to do it over a period of time. Or if it's not, and you're going to in a year, two years, three years by paying, prepaying it, have more money available.

Like Annie’s example of 2 to 7 million that pretty impactful right.

Rick Dwyer

Oh it's definitely impactful. And to you know follow up on Annie’s point SageonRQ.ai does a number of iterations. And in your Sageon report it tells you how many tests were run to optimize your specific overall financial plan. What's nice about knowing that is I've seen some as low as, say, 230, scenarios are run and I've seen it. I've seen as high as 18,000 scenarios run. So there's no set number of runs either. Everything is predicated on your Social Security income, your pension income, other incomes you might have from real estate or other business ventures. What is your age, your portfolio values? What do you have in taxable, pretax, tax free? All of that comes together and you could have two people the same age, same portfolio.

Cary Hall

Completely different.

Rick Dwyer

Completely different makeups. And you get a totally different strategy.

Cary Hall

That's remarkable. It's remarkable in terms of the fact that that all of this information is readily available. And talk a little about the simplicity of going through this before we go wrap it up here today.

Annie Dwyer

Yes. As I was saying earlier, the analysis complex, but the experience isn't. All you have to do is answer a few simple questions in the questionnaire. And these are things you already know. You already know how old you are. You know how much you're getting in Social Security or how much you will be getting. You know what your pension amount is going to be.

These are just simple questions. Once you're done with them, you hit the generate button and you wait a few minutes and you have your report.

Cary Hall

That's quite remarkable. I want to go back to before we close out the show, you talked about this Social Security issue. And this is something that seems to be really hard to get through people's head. I waited until 70 on purpose. What's the difference if you take it at 65, 67 or just percentage wise? What are you talking.

I've seen the numbers, Rick. I know you know them. What are we looking at? So why should people hold off on this?

Rick Dwyer

It depends.

Cary Hall

If you don't need it.

Rick Dwyer

Yeah. If you don't need the money from Social Security, you might take it early, because guess what? The crossover points at age 78, you can reinvest that money and do something else with it. But if your plan is predicated on the need for both you and let's say you're married, your spouse’s Social Security, maybe you need to optimize that to give you the best chance for survival, for Social Security, I mean, for retirement.

Rick Dwyer

So whether you need to optimize it and take it at a later date, or should you take it early? These are all things we can work out through the SageonRQ.ai audit, and the navigator as well.

Cary Hall

And it shows you that if I take it now, this is what's going to be if I take it as 67, this is what it's going to be. If I wait till 70, it's going to be ... and you don't need it now. Or maybe you do need it now. Okay. Or maybe you take it and maybe you don't use all of it.

You put some of it back in the portfolio type situation, so you find yourself in a different set of circumstances. Thank you both for doing this today.

Annie Dwyer

Thank you for having us.

00;37;03;01 - 00;37;12;16

Cary Hall

When you get to this age in life, these are these are critical questions that issue of am I going to outlive my money?

Everybody, if you've got a brain in your head knows that's an issue you have to deal with, okay. You don't want to be the person that you know. They use the money. Like a friend of mine said. Yeah, my father and mother, they used the money to travel. And now he doesn't have the money to do what he needs to do.

And so this particular woman is paying for her father to be in a nice facility, where he has assisted living because he didn't manage his money correctly. They chose to travel around the world. This is an answer getting people to understand. That's not what you want to do. Correct.

Rick Dwyer

Yeah. I mean, one of the simple questions that Annie just told everybody is, you say, how much money would I like to have in pretax dollar? I'm sorry after-tax dollars to for my retirement lifestyle.

Cary Hall

And that's what you're trying to do.

Rick Dwyer

Well we use that as part of the calculus in the SageonRQ report.

Cary Hall

It's a great report. It's a great opportunity for to get a very objective opinion of what you need to do. You know, you wonder, why is the guy that does this show called America's Healthcare Advocate doing this show? Because this is your financial health. This is your financial health and your security and your ability to continue your lifestyle the way you want to continue it.

Cary Hall

You want to learn how to do that, SageonRQ.ai. SageonRQ.ai.

And now I leave you with this thought from Albert Einstein, the one who follows the crowd, they usually get no further than the crowd. The one who walks alone is likely to find himself in places no one has ever been. Remember, friends is a funny thing about life.

If you refuse to accept anything but the very best, you most often get it.

Thank you for listening to America's Healthcare Advocate show. Broadcasting coast to coast across the USA here on the HIA Radio Network. Goodbye, America.