Episode 2219 notes

Remember when your kids came home with their report cards and how that felt?

What if the difference between a good retirement and a great retirement isn't just how much you've saved... but the strategy behind it?

Rick Dwyer has created a way to analyze the strategy in your retirement. He created SageonRQ.ai, where you will find the tools to verify your strategy, because with retirement decisions every decision affects another and the SageonRQ algorithm will show you opportunities to strengthen your retirement.

Listen and learn, the financial Doctor is in the house.



This is season 22, episode 19 of America’s Healthcare Advocate. I’m Cary Hall.

After the show, visit: https://sageonrq.ai/

Episode 2219 Transcript:

Cary Hall

Coming up on today's show, we're going to give you access to a report card. Oh, it's not on your children or your grandchildren. It's on you and your retirement. We're going to tell you whether you're going to outlive your money or you're not. And we're going to tell you, is your financial doing a good job? Well, here's the report card.

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Cary Hall

You can take it to them. Let them answer that question. We're going to give you all of that information today on America's Healthcare Advocate. Stay tuned. Listen and learn.

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Announcer

And now America's Healthcare Advocate Cary Hall.

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Cary Hall

Hello, America. Welcome to America's Healthcare Advocate. Show broadcasting coast to coast across USA. Here on the HIA Radio Network. You can find out more about us by going to our website.

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Cary Hall

AmericasHealthcareAdvocate.com. AmericasHealthcareAdvocate.com. You know, what we say on this show is we separate fact from fiction. That's what we're really all about. Typically on the subject of health care. Well, today we're going to separate fact from fiction on whether you have enough money to retire. Oh, no. This is not a show. But we're going to talk about retirement planning and all the rest of it.

00;01;06;19 - 00;01;27;22

Cary Hall

This is a show where we're going to show you an algorithm that can actually tell you, am I going to outlive my money? Have I got enough money? Is my money performing like I'm being told it's performing? Well, we'll find out all of that today. Because in studio with me today is Rick Dywer and he is the CEO of Sageon.

00;01;27;24 - 00;01;28;14

Cary Hall

Welcome.

00;01;28;17 - 00;01;30;08

Rick Dwyer

Hey. Thank you. Pleasure to be here.

00;01;30;09 - 00;01;48;17

Cary Hall

Well, we're very happy to have you. And I think you're going to find this to be a fascinating show because, this basically is going to be a report card. If you've got a financial planner. It may be a report card on them or it could be a report card on you. If you're managing your own finances and your own stock portfolio, your own investment.

00;01;48;18 - 00;02;08;03

Cary Hall

So I think you're going to find this interesting. So Rick entered financial services in 1986 after serving ten years in US Navy submarine service. So I asked Rick what was his job. Because I'd look at it, his show notes this morning, early this morning at 5:00. And I'm going through this. I thought, you know, he must have been an engineer.

00;02;08;05 - 00;02;13;03

Cary Hall

Well, he wasn't an engineer, but he had a pretty important job. What do you do, Rick?

00;02;13;06 - 00;02;26;26

Rick Dwyer

Well, my my job while I was in was called, launch countdown supervisor, so I was responsible for the preparation of launch of those missiles if we were ever called upon to do so. And thankfully, we never were.

00;02;27;02 - 00;02;30;26

Cary Hall

But you also served on three different classes of submarines.

00;02;30;29 - 00;02;31;11

Rick Dwyer

I did.

00;02;31;11 - 00;02;32;23

Cary Hall

But they were all nuclear.

00;02;33;00 - 00;02;57;04

Rick Dwyer

They were all nuclear. It started on the Polaris, the USS Abraham Lincoln. I then went to the USS Von Steuben. The Lincoln was out of Pearl Harbor, and then, the Von Steuben was out of Charleston, South Carolina. During that time, I also received orders to the USS Michigan, which was the second Ohio class. But my orders got changed, and I wound up staying on the Von Steuben route through refit.

00;02;57;04 - 00;02;58;09

Cary Hall

Ten years of service.

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Rick Dwyer

Ten years of service.

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Cary Hall

Thank you for your service. This country, sir.

00;03;01;04 - 00;03;02;13

Rick Dwyer

Thank you. You as well.

00;03;02;16 - 00;03;24;20

Cary Hall

Rick has been a fiduciary advisor since 2011. After financial crisis from ‘08 to ’10, Rick saw many retirees lose everything. And I know a few of those people. And he refocused to practice to serve retirees and retirees exclusively. In 2025, Rick noticed there wasn't a tool that retirees and pre retirees could use to gauge their retirement planning.

00;03;24;25 - 00;03;44;19

Cary Hall

This is the part that fascinated me. I've had breakfast with this man twice. I've talked to him. I thought I got this and I had a pretty good idea. But when I went through this, this morning for show notes, I was like, this is remarkable. Simply the simplicity of it. You'll hear about that today, the way it works and how you can employ it.

00;03;44;22 - 00;04;06;28

Cary Hall

It's really pretty amazing. It's pretty much foolproof. What I saw today, he created SageonRQ.ai, okay, by the way, that is spelled SageonRQ.ai. That's the website you can go to, that has all this information. So just first of all, where did the name come from. Because I, I'm looking at this morning when we first met the name was different.

00;04;07;01 - 00;04;08;21

Cary Hall

And now you've come up with this name.

00;04;08;24 - 00;04;27;01

Rick Dwyer

Well, I mean, I needed it to have a name and wanted a name that kind of it and talked about something that had some, preeminent value that they could bring to someone. So it's a play on the word sage. So it's like a sage AI agent, if you will. And then R Q stands for readiness quotient.

00;04;27;07 - 00;04;28;26

Rick Dwyer

But that's too long to have in the name.

00;04;28;26 - 00;04;30;03

Cary Hall

So yeah, that would have been.

00;04;30;06 - 00;04;50;17

Rick Dwyer

Yeah. So eventually once we have enough user data people can actually get a score. So we'll actually know where they are in relationship to say a whole demographic, of that same profile. So in other words, you go to Equifax, you get your, you know, your Equifax score, your Experian score, etc. and then everybody knows their Fico score.

00;04;50;22 - 00;04;57;29

Rick Dwyer

Well, we're coming up with a SageonRQ score so that you'll know where you rank for readiness for retirement.

00;04;57;29 - 00;05;15;01

Cary Hall

And you won't have to go through it. Compared to you're trying to figure out your credit score. Three different algorithms to figure out. Well, I got this over here on this one and I got this on this one, and I got this one over here on on another one. So together what are they equal. You'll have it all in one place.

00;05;15;01 - 00;05;16;05

Cary Hall

People have to do that.

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Rick Dwyer

Correct. And then, on top of that, this is not driven by how much money you have. It's how much money do you have in relationship to what's a comfortable retirement for you? So in other words, you may only have a couple hundred thousand dollars, and then someone else could have several million dollars. But the person with the several million may still not be ready for retirement because their expenses are too high.

00;05;38;20 - 00;05;42;28

Rick Dwyer

Or maybe they just haven't allocated things correctly.

00;05;43;01 - 00;06;07;13

Cary Hall

Yeah. It's funny, I, I had I had lunch with a senior VP at one of the large insurance carriers. This is probably two years ago. And she was very concerned about her father, who was then living in one of the retirement facilities. He was able to drive and do things, but nonetheless, and she and her sisters were basically picking up the difference in the cost.

00;06;07;15 - 00;06;26;26

Cary Hall

And he had had pretty good employment all of his life. And I'm like, well, yeah, you know, Christy, what what did they do with their money? Well, she kind of chuckled and she said they just traveled a lot and they had luxury vacations all the time, and nobody thought about what was going to happen when they were all done with luxury.

00;06;26;26 - 00;06;53;20

Cary Hall

They thought the money was going to last and the money didn't last. And when I was going through it, I was thinking to myself about the number of people that I back when I had RPS when I had Benefits by Design, which is now actually part of Leavitt Strategic Benefits. But when the number of people that we would work with life insurance long term care, you know, their health insurance, all the rest of it, and they would be very sure that they were going to be just fine.

00;06;53;22 - 00;07;21;08

Cary Hall

And then some event would happen. Somebody's got stomach cancer, or somebody had an aneurysm, or somebody wound up, with a stroke and had to be in a nursing home. And, and all of a sudden the money starts going south. And so when you use that analogy, maybe the person that's got half $1 million set aside, but lives very frugally, they don't have any debt, and they have a decent retirement income from Social Security and maybe a little pension or something.

00;07;21;16 - 00;07;40;28

Cary Hall

Maybe they maybe they're just fine. But the person got $4 million in the bank, and they're heading to Europe every year and staying in five star hotels and taking cruises on Seabourn. You know that that are 50, 60, 100 grand. Might have to think twice about some of that if they're if they're in there or, you know, I'm 77.

00;07;41;00 - 00;07;50;17

Cary Hall

Okay. You know, the question is where do you start marking that? Well, actually time to mark it. And you mentioned this is in your materials is before you ever retire.

00;07;50;22 - 00;08;15;20

Rick Dwyer

Yeah. I mean, I can't tell you how many calls I get. And the person has already just retired or has been retired, and now they're looking to do their retirement planning. Meanwhile, they've already implemented, you know, some decisions that they've made that they're not irretractable, but if they revolve around pensions, they are. Yeah. Because the moment they sign those pension documents, their flexibility is gone.

00;08;15;20 - 00;08;38;06

Cary Hall

That's right. This is an opportunity you that you need to listen and learn and go up on the podcast platform. By the way, new numbers 692,685 of you are now downloading this show. It's unbelievable. This is one you're going to want to share with your spouse. Maybe your grandfather, maybe, maybe your father and mother. I don't know, but this is one you're going to listen to.

00;08;38;06 - 00;08;55;01

Cary Hall

Stay tuned. We're going to be right back and continue our conversation with the expert, Rick Dywer. You're listening to America's Healthcare Advocate Broadcasting here on the HIA Radio Network. Coast to coast Cross, USA. Don't go anywhere.

00;08;55;04 - 00;09;03;20

Cary Hall

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00;09;03;22 - 00;09;22;14

Cary Hall

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00;09;22;14 - 00;09;42;02

Cary Hall

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00;09;42;05 - 00;09;51;03

Cary Hall

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00;09;51;05 - 00;10;11;17

Cary Hall

Welcome back to America's Healthcare Advocate broadcasting coast to coast across the USA. If you want to find out more about us, go to the website. AmericasHealthcareAdvocate.com. Hey, maybe you're intrigued by that opening and you're wondering, what's this all about? The website s a g e o n r q dot ai. SageonRQ.ai. That's the website.

00;10;11;17 - 00;10;29;26

Cary Hall

All the information's up there. You'll be amazed. This is very affordable and an easy thing to do. But I'm telling you, if you want an independent report card on how you're doing or how you think you're going to do, you probably ought to take a look at this. Let's let's go back to why you created this, Rick. I mean, you've clearly got the background for this.

00;10;29;26 - 00;10;44;12

Cary Hall

You've been in financial planning, worked in the markets, you've got all your licenses, the whole nine yards. But this was a real step out. I mean, you're you were taking a hell of a risk here to try to create something that nobody else has. And you basically done it.

00;10;44;15 - 00;11;04;24

Rick Dwyer

Well, I mean, for me, I wanted something that people could use that was simple, that they didn't have to have a degree in finance or have a lot of technical background to be able to get an answer that meant something to them, whether it was them individually or them as a couple and a family. So that was the genesis of how this all came about.

00;11;04;26 - 00;11;23;08

Rick Dwyer

And it had to be easy to use, had to be simple, but it had to be powerful enough to be meaningful at the same time. That takes a lot of work to get it to that point. What is the kind of information we want? Well, number one, the very first question most retirees have is will my money last during my retirement?

00;11;23;12 - 00;11;31;17

Rick Dwyer

Because there is a couple forces at work. One is inflation. How big, how bad is it going to be? We just experienced some pretty dramatic inflation.

00;11;31;17 - 00;11;31;23

Cary Hall

Yes, we did.

00;11;31;25 - 00;11;46;19

Rick Dwyer

We're experiencing it a little bit now, but right now it's more in line with traditional inflation. And that's 3 to 3.5% range. But you can in our software you can dictate or choose what level of inflation. It defaults to 3% annual.

00;11;46;19 - 00;12;02;02

Rick Dwyer

But you can change it, you can increase it or lower it. So it's up to you. You drive that ship. The second thing, are you taking care of long term care? I've met people with millions of dollars and I asked them, what's your plan for long term care? Well, I'm just going to pay for it.

00;12;02;05 - 00;12;19;13

Cary Hall

And I told you, this is funny. When we were on break, we had that and I said, I and I told you about a client of mine who her sister and her, the mother was in a nursing home. A decent facility where she was being taken care of. She had about $2 million when they put her in.

00;12;19;18 - 00;12;43;21

Cary Hall

By the time she passed away, she had less than a hundred thousand left. And if she had had a long term care policy, that money would have continued to grow, then passed on to her heirs, which was her desire. What she didn't know. What she didn't pay attention to was that piece and that's critical. You just talked about a client that told you he could pay for it himself, and you said, yeah, but for 200, what was it, 280 or 200?

00;12;43;21 - 00;12;44;15

Cary Hall

What was the number?

00;12;44;21 - 00;12;58;02

Rick Dwyer

$200,000 roughly for him, he would have had like the best Cadillac long-term care plan that never would have run out. Right. And he would have transferred that risk. And the best part is if he never used it, his heirs get the money.

00;12;58;06 - 00;13;15;28

Cary Hall

Right? And that's exactly what I have, by the way. I have an infinite long-term care policy. It's not term. It's for Laurie and I. The benefits up to about $348 a day right now for each of us. And I would never let that policy lapse. It’s with John Hancock. It's a great policy. I'm very fortunate to have it.

00;13;15;28 - 00;13;23;27

Cary Hall

I bought it, I think it was 55 or 56 years of age, because I saw what was happening. Right. So it's fascinating that you include that as an issue.

00;13;24;03 - 00;13;43;05

Rick Dwyer

Well, we included as a review element, and I show them if they don't do it, if they don't have it addressed, if they do have it address, we'll do an analysis on that. But they don't. We'll show them what the impact of not having it could be if one of them has an event, you know, with long term care, the biggest concern is, oh, I'm never going to need it.

00;13;43;08 - 00;13;59;08

Rick Dwyer

Right. That's the big concern. Well, I don't want to spend the money and never use it. But if you get the right type of long term care, not only do you not give up access to the money, but you also transfer that risk in case you do need it. And as we stated already, your heirs will get the money if you never use it.

00;13;59;08 - 00;14;22;09

Cary Hall

Yeah, and the beauty in the way mine is set up is I can use part of Laurie's if I need it for me. She can decide to do that. Or she can use part of mine if we need to use it for her. We need. If we need $400 today, I can take the additional out of hers and move it back and forth that I also have a full home health care benefits, so I don't necessarily have to go into a facility when that day comes.

00;14;22;09 - 00;14;45;03

Cary Hall

If that day ever comes. I doubt my daughters would let that happen anyway. But having said that, they're pretty adamant about that. But having said that, I don't want to be a burden on them and have them having to take care of my daily needs. But if I've got, you know, six, seven, $800 a day to use in funds, that means, you know, my wife could never drag my 240 pound rear end around the house.

00;14;45;05 - 00;14;58;20

Cary Hall

Right. Okay. So that means you're going to have somebody come it that can get me in and out of a shower, do the things that I do for my daily needs. Well, that's why you do that. And so it's foolish, I think, to just think that I'll take care of it because you won't.

00;14;58;23 - 00;15;13;22

Rick Dwyer

Yeah. I think flexibility is the most and the main thing most people want, they don't want to have to go to a facility if they don't want to. They want to stay at home if they can. But the second reason, the second main element is what we call tax compression, which.

00;15;13;22 - 00;15;35;28

Cary Hall

Is interesting because I don't think I'd even heard of this. I understood it, I know it, I've got trusts set up where I avoid all of that. I have a trust set up where all of that is completely negated. But talk about what the what you mean here, because basically it's spousal survival. And when you go from couples filing to individual filing, what's the surprise you get?

00;15;36;00 - 00;16;00;24

Rick Dwyer

your taxes effectively double if you're in the 22% tax bracket right now. Where a lot of my clients are. They’re that or greater. Then all of a sudden they, one of the spouses passes away. Now all of a sudden they're in the 32% tax bracket or in another case, if they if they are living very frugally, they may be in the 10 to 12% bracket.

00;16;00;26 - 00;16;10;16

Rick Dwyer

It's almost impossible to go single and not be in the 22% bracket at that point because, the threshold for 22% is 50,000 a year.

00;16;10;18 - 00;16;12;13

Cary Hall

Yeah. Well, that's that's not much.

00;16;12;13 - 00;16;13;06

Rick Dwyer

That's not much at all.

00;16;13;06 - 00;16;14;10

Cary Hall

Not in today's world.

00;16;14;10 - 00;16;25;21

Rick Dwyer

Nope. So the the odds that a surviving spouse who's comfortably living with her husband in the $100,000 range, at 12%, will almost certainly go to the 22% bracket.

00;16;25;21 - 00;16;28;16

Cary Hall

And then you just. And then where's that money coming from.

00;16;28;18 - 00;16;46;17

Rick Dwyer

It's coming from the portfolio of course, which eats into that even more. Right. So what we do part of our report is that you get to see, what the tax savings would be because we also analyze Roth conversions within their, if they if they have more advanced tax strategies, that's something that will probably add a little bit later.

00;16;46;17 - 00;16;50;15

Rick Dwyer

But right now we'll do an analysis on tax strategies.

00;16;50;18 - 00;17;06;23

Cary Hall

And that analysis then tells them here's what you need to prepare for. And there are ways to solve those problems. I was very fortunate. I have a very expensive lawyer who put all this together for me. As part of what I do on the Detego side where I'm one of the founding members of that company.

00;17;06;23 - 00;17;22;14

Cary Hall

But I there's some things I learned about that. I was surprised, but I have these things set up now and that's taken care of. But for a lot of people, if they can't afford, you know, to spend $20,000 for an attorney to put this together, which is about what I spent, then, you know, you need to think about that.

00;17;22;14 - 00;17;41;16

Cary Hall

And here you're giving them they don't even know the problem exists. And now once they meet with you and they talk with you and they see how this algorithm works, they find out how it exists. So that's an example of what we're trying to do today to expose to you what the risks are and how you can overcome those risks and what the solutions are.

00;17;41;16 - 00;18;06;17

Cary Hall

So we come back from the break. We're going to get into the nuts and bolts of this. How does it work? How do you get involved? What can you do and what is Rick offering. Stay tuned. We'll be right back after the break. Once again, that website, if you're looking for it, is s a g e o n Sageon RQ dot ai. SageonRQ.ai. Stay tuned.

00;18;06;23 - 00;18;20;09

Cary Hall

We'll be right back. The financial doctor is in the house.

00;18;20;12 - 00;18;52;03

Cary Hall

Welcome back. You're listening to America's Healthcare Advocate Show broadcasting coast to coast across USA here on the HIA Radio Network. By the way, we are now up to an official 250 radio stations with the addition of 102.9 news station in Topeka, KCMO, 102.9, a part of our Cumulus family. We're very excited about that opportunity and an opportunity to be on the air up there at the radio station, my producer, Mr. Dave Thiessen, in studio with me and Garner Cowdrey.

00;18;52;06 - 00;19;18;20

Cary Hall

We do all the work on this show to get it up on the air and also get it out on the podcast and YouTube platforms. Joining me in studio, obviously, Rick Dwyer, and he is the CEO of SageonRQ.ai, and we're learning a lot today about what you need to know if you think you're set for retirement, or maybe you're thinking about retirement now and you've got a plan, well, this might be something you really want to take a look at, because this is a report card.

00;19;18;27 - 00;19;34;29

Cary Hall

This is going to tell you what you're being told by your financial advisor is correct or incorrect, or if you're doing it yourself, what does that look like? Or I'm going to be able to rely on my 401 K and my Social Security. Maybe that's what you're going to find out by getting involved or taking a look at this.

00;19;35;04 - 00;19;37;08

Cary Hall

Let's just get into the nuts and bolts.

00;19;37;08 - 00;19;46;19

Rick Dwyer

And the last segment we started, you know, why did we create this. And we talked about the long term care. And then we started talking about spousal tax compression.

00;19;46;19 - 00;19;47;13

Cary Hall

Two pieces.

00;19;47;13 - 00;20;15;08

Rick Dwyer

Correct. The other main item for me was most people plan retirement. Wrong. For example, they'll look at their portfolio and they'll say, well, I can take 4 to 5% a year out. And that's their whole plan. They just want to make sure they can do that. What they're not really taking into account is sustained drawdown. I mean, anybody that, you know, that was working from 2000 to 2013 knows that the S&P didn't get back to even for 13 years.

00;20;15;08 - 00;20;29;28

Rick Dwyer

Yeah. So if you were pulling money out during that time, you cannibalized your your investment portfolio if you were living on it. So we wanted to make sure that people could see a 2008 stress test on their portfolio. So we include that as well.

00;20;30;00 - 00;20;32;04

Cary Hall

Why 2008 Rick. Explain that.

00;20;32;10 - 00;20;47;09

Rick Dwyer

Yeah, because 2008 was, you know, when we look at 2000, it took three years to bottom out. When the market tanked in 2008, it started in around mid 2008, and it ended in March of 2009. And it was that.

00;20;47;09 - 00;20;48;22

Cary Hall

Was a.com bubble.

00;20;48;24 - 00;20;51;26

Rick Dwyer

Dot com bubble was the first one. Yeah. The financial crisis, the.

00;20;52;02 - 00;20;52;15

Cary Hall

Second.

00;20;52;15 - 00;21;07;26

Rick Dwyer

One was catastrophically fast. Yes. It went down 57% in about a little over 12 months. Yes. So very severe, very quick. And now it did come back, but it didn't get back to the same levels of 2000 until 2013.

00;21;07;26 - 00;21;11;28

Cary Hall

Isn't that amazing? It is, which was 13 years ago.

00;21;12;00 - 00;21;12;27

Rick Dwyer

You know.

00;21;12;29 - 00;21;26;00

Cary Hall

But it was a cycle, who knew? Right. And if you were sitting there and you just got wiped out or lost 30% or 20% or whatever it was, of your portfolio, it's panic time now.

00;21;26;02 - 00;21;42;23

Rick Dwyer

Most people don't think the markets will stay down, period for any length of time. Normally it's one year, sometimes a little over, but it doesn't reflect in the numbers, right? 2000 2003 was the first time we had around a three year. 2000. ‘01, ’02. We had three years of down.

00;21;42;23 - 00;21;43;14

Cary Hall

Yeah.

00;21;43;16 - 00;22;04;11

Rick Dwyer

And that's only happened three times. 2008 was severe from a numbers standpoint, but not unusual from a market standpoint. The reason I like to use that period of time is because it's unique that it was back to back the way it went, and that the market didn't really gain for 13 years. And it's in our lifetime. So people have relevance.

00;22;04;11 - 00;22;34;19

Rick Dwyer

They just forget about it. They don't think about it. Right. And we make sure they think about, oh yes, it is a reality that can happen. And what I meant earlier when I started this segment was that when I say people don't, look at retirement correctly, it's an integrated approach. If all you look at is the market and and you ignore taxes, you ignore inflation, you ignore market risk, you are missing the whole point of retirement planning.

00;22;34;19 - 00;22;40;25

Rick Dwyer

It's an integrated approach. Any change in one of those will impact the other ones. Either positively or.

00;22;40;25 - 00;22;41;21

Cary Hall

Negatively.

00;22;41;23 - 00;23;04;21

Rick Dwyer

And you have to look at it from that perspective. So we take an fully integrated approach, which is what most people never do. And so when they use SageonRQ, they're going to be entering their information. So when they first get to the site, they log in, they register, they enter in their information. They can be as detailed or as general as they want.

00;23;04;23 - 00;23;24;14

Rick Dwyer

Obviously the more detail they are, the more information they're going to get, the more reliable it will be. Eventually. In about 60 days, we'll be launching the ability for them to do an online, risk assessment, and they'll be able to upload their statements if they choose to. They don't have to. They just give a bulk number, but they want real accuracy.

00;23;24;14 - 00;23;38;23

Rick Dwyer

They'll be able to upload their statements. It will analyze their statements and compare the market side of their portfolio or their portfolio risk tolerance to their perceived risk tolerance. And I can tell you from experience, they rarely ever match.

00;23;38;29 - 00;23;56;03

Cary Hall

That doesn't surprise me. So two things I want to make sure that the audience understands. Number one, your data, your information when he talks. But I could just see my wife the minute I say let's, let's, let's factor let's add in, let's send in all of our financial documents. The minute she's going to say to me, how do we know that's safe?

00;23;56;05 - 00;24;04;23

Cary Hall

How do we know they're not going to sell that? So answer that. We talked about for the show. Talk about how that's secure and that never gets sold or used for any of the purposes.

00;24;04;23 - 00;24;21;16

Rick Dwyer

Yep. Absolutely. So we don't sell or share any of our data. We don't take any of this data. We don't remarket to other advisors. So if you're concerned you're going to register and you're going to get hounded by a lot of advisors trying to get your business, that's not what this is for. This is for you. This is your information.

00;24;21;19 - 00;24;46;12

Rick Dwyer

If you want to take the report to an advisor, feel free. Because we do market the service to advisors. We do not market leads to advisors. That data stays on our Amazon servers. It's fully encrypted with bank level security, just like everybody else's bank level security is. That never leaves. It's not stored on our internal servers. It's all done on Amazon servers.

00;24;46;12 - 00;24;52;13

Rick Dwyer

So your data is safe. We don't resell it. We don't do anything with it other than analyze it for you.

00;24;52;13 - 00;25;22;21

Cary Hall

And they're not required to move their business to you. Do you able to use this? You just said if you want to take these reports and go to your financial advisor, then you need to do that. But what you're doing here is you're giving an unbiased picture, actually data driven picture of what actually where they're at, what could happen if there's a recession, a big one like we had in ‘08, okay, or pull back in the market, whatever the case may be, but you're giving them actual data based on the information they're putting in.

00;25;22;21 - 00;25;23;28

Cary Hall

Am I correct about that?

00;25;23;28 - 00;25;40;26

Rick Dwyer

You are. And that's also in the stress test. So we'll do a stress test for 2008 so they can see what that's like. And we'll also show them if one of their if it's a couple if one of them passes away at age 78 what is the impact. What's the tax impact going to be on their surviving spouse?

00;25;41;03 - 00;26;02;29

Rick Dwyer

The income should normally be okay, but we'll double check that because if the pension income doesn't have a spousal benefit and if the, Social Security and the spousal benefit is not enough to carry, then they have to withdraw more money out of the portfolio. And we will stress test that and let them know what the survivability is for that surviving spouse.

00;26;02;29 - 00;26;20;25

Cary Hall

So that's interesting. That begs the question, what happens if they're in a pension program in a state? It's going broke, and I'll use Illinois as a classic example. And then, Laurie has some a very dear friend that she grew up with, childhood friend who worked for the State of California for years, in the state's Attorney's office.

00;26;20;25 - 00;26;44;20

Cary Hall

And one of their biggest concerns is California's got a lot of problems right now. And that money is separated in CalPERS. But, you know, is there enough money there to fund it out? The answer to that question is actually today there isn’t. And Illinois is completely upside down. Do you take those possible factors into the equation? If there's a way for them to pull money out early for less and it's bulk or something along those lines?

00;26;44;20 - 00;26;45;10

Cary Hall

Rick.

00;26;45;12 - 00;27;02;19

Rick Dwyer

Yeah, we do not that's a that's a that's outside of the scope of what we do. We take their data that we have that's available today. And the other thing, so we know we can't do that. But the other thing I think is important to note is we don't forecast, for example, what future tax rates are going to be.

00;27;02;19 - 00;27;09;17

Rick Dwyer

Everything is based on what it is today. When those rates change, both at the state and the federal level, they're updated in our system as well. Yeah, I.

00;27;09;17 - 00;27;34;03

Cary Hall

Was surprised to see before we go to break here, you said the tax rates, they are currently favorable. Now, that's an interesting comment. In the in the anti-tax environment we live in today, where the state of Missouri, for example, is talking about doing away with income tax, like Texas, like Florida, like Washington, like some of the other states that have, like, like Nevada that have no state tax.

00;27;34;03 - 00;27;37;09

Cary Hall

So talk a little bit about that because, that's kind of interesting.

00;27;37;14 - 00;27;57;05

Rick Dwyer

Well, I think state tax is a different animal because depending on which state you are in, you may not have any taxes or you may have very low taxes. So we're really talking about or I'm talking about when I say we're in a low tax environment from the federal level, you have to go back to the late 1920s to get an equivalent level to where we are right now.

00;27;57;05 - 00;28;19;00

Rick Dwyer

So it's really a hundred years. So here's a here's a final thought for everybody, right now. If you're if you have a large pretax account, do you just want to wait the next 15, 20, 30 years of your retirement to see if tax rates ever go up? Or should you be proactive in doing some conversions? We will show you what that outcome will look like and you can make that decision.

00;28;19;02 - 00;28;26;11

Rick Dwyer

But I think people not taking advantage of the low tax environment we're in right now are really missing an opportunity.

00;28;26;18 - 00;28;41;21

Cary Hall

When we come back from the break. I'm going to ask him to expand on that. And I know from the notes I did this morning, we're going to talk a little bit about Roth IRAs and what what he thinks of Roth versus, the current situation. We'll be right back after the break. By the way, the website, fascinating stuff.

00;28;41;21 - 00;29;03;22

Cary Hall

Right? S A G E O N R Q dot ai. Go to that website, all the information is up there. You're listening to America's Healthcare Advocate Broadcasting here on the HIA radio network, coast to coast across USA.

00;29;03;25 - 00;29;22;15

Cary Hall

Welcome back. You're listening to America's Healthcare Advocate show broadcasting coast to coast across USA here on the HIA Radio Network. By the way, if you do have a question please send me an email I get them, I had a couple this week where I had to help some people with insurance for their daughters, etc. I'm happy to refer you and get you so I can help you.

00;29;22;15 - 00;29;41;09

Cary Hall

Typically the people over at Leavitt Strategic Benefits will be the ones I'll recommend you to. That'll be Maria Ahlers and Carolee Steele and Jacqueline over there who do a great job. So if you need help, go to the website AmericasHealthcareAdvocate.com. Back in studio with me, Rick Dwyer, and he is from SageonRQ.ai.

00;29;41;11 - 00;30;03;05

Cary Hall

They have created this fascinating algorithm and program where you can actually see if you're going to outlive your money. Are you planning if you're just turning 65 or you're just retiring at 55, maybe retiring early, do you actually move some of that money that's currently in your accounts to another type of account for tax reasons?

00;30;03;05 - 00;30;11;16

Cary Hall

And so off-air, Rick told a story about one of his clients. So just tell that story because it's about the Roth IRAs and why that may or may not be a good idea.

00;30;11;20 - 00;30;33;15

Rick Dwyer

The amount of money that you have pretax can dictate a couple of things. One of them is obviously your tax rate. And the second is Irma. And, Irma is an amount that if your income exceeds a certain threshold, both at the single and married level, that you have to pay additional Medicare Part B and D premiums.

00;30;33;15 - 00;30;36;26

Cary Hall

Yes, it does, and I'm fully aware of that because I'm paying it.

00;30;37;03 - 00;31;00;29

Rick Dwyer

Yeah. We analyzed to see if the, conversions will, Roth conversions would impact Irma if there's going to be an Irma impact. And for how long. And so that's part of the report as well. And the reason that's important to know is that once it kicks in, it lasts for two years. If your income drops again, which if you're doing it primarily through conversions, it will drop at one point and then Irma will follow for another two years.

00;31;00;29 - 00;31;15;15

Rick Dwyer

And then you're you're done. So we had a client and he had a net worth of about 12 million, about 8 million or so in the market, a little over 3 million in IRA accounts. His wife passed away this year.

00;31;15;19 - 00;31;17;03

Cary Hall

That changes everything

00;31;17;03 - 00;31;17;28

Rick Dwyer

it does.

00;31;18;00 - 00;31;44;18

Rick Dwyer

He goes from married filing joint to single. We talked about that previously. Yeah. So now just on his general income what he receives from Social Security pension and then his dividend income on his portfolio puts him in the $220,000 to $250,000 a year range. So he's already way up there. RMDs will just exacerbate that problem dramatically. So we talked about and he's very open to doing that.

00;31;44;18 - 00;31;52;18

Rick Dwyer

But he said, you know, what should we do? Should we do it over, you know, 4 or 5 years or ten years? Now, just to keep in mind, he's 74 years old already.

00;31;52;24 - 00;31;54;05

Cary Hall

Just three years younger than I am.

00;31;54;05 - 00;32;04;21

Rick Dwyer

correct. So we did the analysis using Sageon and the best outcome for him was to do it all in one year. Now right away.

00;32;04;24 - 00;32;05;14

Cary Hall

That's amazing.

00;32;05;21 - 00;32;16;21

Rick Dwyer

You would you. So when you think about it, on that rate. He's going to be converting 3 million. That's a $1.4 million tax bill. So that's hard to swallow.

00;32;16;21 - 00;32;17;24

Cary Hall

Big time.

00;32;17;27 - 00;32;30;08

Rick Dwyer

But he's got the liquidity from his TOD accounts right. He's going to use that money. And effectively he's transferring 1.2 million from his TOD account to his Roth account. Because all that Roth money now stays there.

00;32;30;08 - 00;32;33;20

Cary Hall

And that Roth money is tax free, which is the reason why you do it.

00;32;33;22 - 00;32;42;09

Rick Dwyer

So it's going to reduce his dividend income because now 1.2 million just transferred effectively to his Roth account. And it'll grow there, all tax free.

00;32;42;10 - 00;32;45;27

Cary Hall

And if he hadn't done that it would have done what.

00;32;46;03 - 00;33;08;09

Rick Dwyer

Well his account would have continued to grow. So if he's let's just say he's only getting 6% growth on 3 million. He's generating 180,000 a year. He doesn't need the money. So but his RMDs are going to keep increasing every single year. And that tax problem becomes enormous. So the difference in the legacy value for his heirs was $15 million.

00;33;08;16 - 00;33;28;04

Cary Hall

You see why I do these shows? You see why I have people on here like Rick, when I talked about your financial health, that's what this is about. And this man is an expert. And that's why after spending, we had two breakfast meetings together, talked about this several times on conference calls, etc. I was convinced that, that this was going to be a worthwhile effort.

00;33;28;04 - 00;33;52;26

Cary Hall

And when I went to these show notes this morning, I was absolutely floored by what I learned or what I saw. The website, if you're interested SageonRQ.ai. That’s SageonRQ.ai. The point is I said this when you open this show, when your grandchildren, come home at that end of each semester, you want to see the you want to know what their grade cards were, right?

00;33;52;29 - 00;34;13;21

Cary Hall

You know, when you were when you were working, you got an evaluation every year, right? Okay. Well, you know, I know what you're hearing from your financial planner. Maybe it's right. Maybe it's maybe it's not. Maybe there are things you do that would make it better. Maybe your financial planner would like to look at that, report, which you heard Rick say earlier, take it to them, and let them review it.

00;34;13;21 - 00;34;30;21

Cary Hall

Or maybe you do it yourself and you just want to know what it looks like or you're getting ready for retirement. You're not there. Here's what we think we're going to do. Are we going to outlive our money? That's the big question. What this does, as far as I'm concerned, is when you ask retirees, what's your biggest fear?

00;34;30;25 - 00;34;33;00

Cary Hall

I'm going to outlive my money. Am I right?

00;34;33;02 - 00;34;34;01

Rick Dwyer

That's the first one.

00;34;34;01 - 00;34;54;22

Cary Hall

Yeah, that's the first one. And that's the biggest one. Am I going to outlive my money? Okay. The second one is probably how's your health? Okay. That's the other one okay. Because we start to face some challenges as we start to age. But if you have a level of comfort about where you're going to be when you retire, as you go on, then you're living life the way you want to live it.

00;34;54;22 - 00;35;10;22

Cary Hall

What you know, what you can do. You know what recreational activities, like vacations, all the rest of it. How much money I can spend? What can I do? You've got a financial planner. I'm sure they tell you all of that. Maybe you would like to see a report card on how well they're doing, which means how well you're doing.

00;35;10;22 - 00;35;30;03

Cary Hall

And maybe if you're doing it on your own, you really ought to take a look at this. And if you're pre-retirement age, I strongly suggest you take advantage of the offer that Rick is making. It's free for that initial report is free. You can go up there, do the information. Remember, they don't sell it. It's strictly your data and they don't resell any of that data.

00;35;30;09 - 00;35;34;08

Cary Hall

And if you want to engage with them for further services, they can do that, correct?

00;35;34;10 - 00;35;43;09

Rick Dwyer

Yeah. We don't actually even have a button for that. This is really meant as a report just for them and their advisor. That is it. We're not reselling and we're not trying to grab their business either.

00;35;43;09 - 00;36;02;16

Cary Hall

There you go. I mean, I don't know how much more forward and honest thinking that it gets than that. Okay. This is to give you the report. You do what you will with it. Once again, the website SageonRQ.ai. SageonRQ.ai. Thank you very much. It's great having you in here today.

00;36;02;23 - 00;36;03;20

Rick Dwyer

Thank you Cary.

00;36;03;22 - 00;36;20;22

Cary Hall

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, it's a funny thing about life. If you refuse to accept anything but the very best, you most often get it.

00;36;20;25 - 00;36;32;13

Cary Hall

Thank you for listening to America's Healthcare Advocate Show, broadcasting coast to coast across the USA. Goodbye America.

00;36;32;15 - 00;36;38;25

Cary Hall