they are some of the most common questions we get how do you decide whether to do a Roth IRA conversion how much to convert and win today on your money your wealth Joe and Big L hammer out the answers Plus how do you get a step-up in basis on your primary residence retirement plan options for self-employed small business entrepreneurs and the fellows explained financial advisors financial planners are IAS and broker dealers in their own unique way for the infamous Marcus of Tennessee / Alabama our producer Andy last and contrary to what Joe thinks I do not know where you live here they are now Joe Anderson CFP and Big Al Co fine CPA we got Andrew from San Diego he writes in I have maxed out on my 2019 401k contributions at work $25,000 can I still making $7,000 2019 contribution to a Roth IRA or 401k well beyou Barney maxed out the 401k Andrew then the answer to putting more dollars in a 401k is no unless they provide an after-tax component within the 401 K yeah but but the quick answer is is a regular 401 K and and Roth 401 K get added together to the maximum of 25,000 when you're 50 and older so you can't double up on that but you could still do a Roth contribution if you're single and your income is below 120 mm or married and 193,000 so and there is a phase-out period where you can do a little bit but not fully and that fully phases out single 137 married two hundred three thousand two where you can't make any more contribution so look this is a question that we get a lot in regards to 8 I can't put money into an IRA because I've already maxed out my 401 K yeah that's false you can you can do both and if you make more income than the limits that Allan just mentioned you can still do a non-deductible IRA contribution yes you can so you could still contribute to an IRA regardless as long as you're under 70 right right that's sure if there's a keV so that's the only caveat so yeah put your $7000 either in a Roth IRA if you qualify from an AGI standpoint or do a non deductible IRA yeah and I've got one more wrinkle here that's kind of interesting and so you have to have enough earned income to be able to do to put money into a 401 K and a Roth let's say you have $25,000 of earned income right and you put $25,000 into your regular 401 K you cannot do a Roth contribution because you've already used up your earned income however I don't think this is widely known you could put $25,000 into a Roth 401 K it doesn't affect your your taxable wages and you can still put money into a Roth IRA $7,000 if you're 50 and older so you can actually double count and income for that purpose if you're only making 25,000 it alright so Andrew that's a good question so for all of you out there listening then we get oh no I can't do it no you can so you can fully fund your 401 k plan and a Roth IRA if you're married both you and your spouse can fully fund 401 KS and Roth IRAs as long as you qualify from an AGI standpoint but where you are going Joe is there's these limits 19,000 under 50 25,000 about 50 currently for a 401 K some plans have the ability to put after-tax money and then you could potentially put a lot more in now you don't get a tax deduction but it's in the plan and then those dollars can ultimately be converted to a Roth IRA right so double check your plan all of you listening if you're really trying to max out your retirement savings if you have additional cash flow to save double check with your plan administrator to see if you can put after-tax dollars within the 401 k plan because let's say you're already maxing out $25,000 pre-tax you can put up to about $50,000 into a defined contribution plan via IRS limits but it's up to the plan doc but if you're playing document allows then you could put potentially another let's say 25,000 after-tax and then the next day you convert the 25 thousand dollars into a Roth IRA it's a it's a pretty cool deal we'll call it a you know what a mega backdoor Roth or something yeah they do call it right we got Jim from Santa Cruz California okay you know it's from Santa Cruz no Santa Clarita yeah exactly all right Jim writes hello Joe big Allen Andy Andy or Andy it's a nd I folks and bi none of them are ready yeah so Jim fail I like that I think it's funny that both of you act like you didn't know how my name is spelled how would we how would we I don't like write letters that's like Andy I've tried to write your post card I couldn't figure how to spell your name so I'm gonna do your show rocks thank you for the on-air answer to my Roth conversion question last month I'm hoping you can help with one more believe in that tax cuts in Jobs Act will not be permanent I expect to be in a higher tax bracket in retirement than the 22% bracket I have around 400,000 and qualified accounts with Schwab and Vanguard and about 50,000 and Roth's my employer now offers a Roth 401k but since both brokerages make it very easy to do Roth conversions I'm inclined to continue to contribute to the regular qualified 401k I can design in December if I want to execute a Roth conversion at Schwab or Vanguard this o this keeps the option deductible contributions open until I am certain that I want to make a conversion and know that I have the cash to pay the resulting taxes I cannot see any downside to waiting till the year and to make this decision am I missing something thanks to you and your team for everything you do all right okay what do you got now I got an answer here I like it and let's see we got mixed up on the pages it's page 6 6 ok 67 ok here's why I like it Joe is because if you and it comes out same same if you end up converting this that you were going to put in a Roth site of a 401k so it's same same so I don't really care in a sense but in another sense if you do the Roth 401k you can't change your mind later on whereas if you do it the regular 401k creating a tax deduction and then in December that's when you actually decide how much you want to convert based upon your known income at that time it just gives you a little bit more flexibility the only problem there is don't forget to do it in December because then you would miss that opportunity so I like it gM I would do the opposite I know and I know why you're gonna say that because why so because you get the money and sooner and get the tax-free growth I like the flexibility more than I like your answer but go ahead yeah but real life happens though your CPA I know you would like that answer the flexibility like I'd have my spreadsheet yeah right I'd have an alert December 2nd look at your watches beeping what's that oh yeah we'll get my Roth conversion numbers I'd be in the client meeting excuse me one second all right so here's the deal it's easier to execute yeah I get that doing a conversion XY Vanguard fidelity anywhere it's really easy to do a rob conversion however the likelihood of you doing the conversion or getting the money into a tax-free account is more probable if you just set it and forget it yeah I took her at that right now you got the $25,000 I don't know how old Jim is but let's just assume he's got 25 thousand bucks he's over 50 well most of our listeners kind of under 50 lately it seems do we know what the demographic is don't yes that in our survey how old are you yes I asked them how close they are to retirement yeah and we had three participants yeah my mom was big enough how old people are okay yeah what's your age what's your you know we can give a range Yeah right 22 25 25 thirty thirty to forty whatever so we had thirty five percent that were already retired thirty three percent that were more than ten years from retirement and thirty percent that were five to ten years away Oh yep so okay well I got a yeah so if for those of you that have a Roth provision in your 401k so GM is saying should I just do the Roth 401k put it get it in there have the tax-free growth and then I'm good I'm done or he wants to be a little bit more strategic and say you know what I'm gonna go pre-tax and then I'm gonna convert at the end of the year if this was two years ago I would like that strategy a lot more because that's what we would advise you to do because you can out the back then you could recharacterize the conversion yeah and we would tell you do it in January he got a full year of tax-free growth and then you can recharacterize what you need to next year right can't do that anymore with the new tax and Jobs Act so it's like all right well I'm gonna convert and then now I got to write a bigger check in April and that's kind of a pain in the ass and then I'm gonna be upset because I hate paying taxes and then now I gotta write this cheque but if you want to just get it in the Roth IRA right now it's done yeah cuz your withholdings changed and everything it's done yeah so maybe maybe I'll say it this way if you're an accountant or an engineer do it your way yes and if you're like everyone else you're just like a schlep if you will set your alarm beeping and if you will not be too bummed out when you owe taxes in April and yeah and understand the tax consequence and all that there could be penalties could be whether you do a Roth conversion at the end of the year or not given that December 31st is approaching fast you'll want to check out our tax planning checklist in the podcast show notes it's got the list of all the documents and information you'll need to file your taxes information about Roth conversions the 20% qualified business income deduction and charitable gifts and most importantly it lists some tax savings strategies to implement before December 31st click the link in the episode description in your podcast app to go to the show notes and load the 2019 tax planning checklist for free you'll also see the link to ask Joe and Big Al click that and send in your money questions via voice message or email Terry from Denver Colorado I'm glad you know I all get want to prioritize love love the show all right very good pretty sure I'm good for retirement but wanted to run the numbers by you I'm 60 in retired last month and my husband is 59 in planes retired within the year we have 1.8 million dollars in tax deferred 401k and IRA 1 million in taxable in 72,000 in Roth oh and I guess a little bit in an HSA the tax hit is huge this year so no Roth conversions in retirement I have a 60 K annual pension and my husband will kick in between 62 will kick in between 62 and 65 with pensions income ultimately totally $92,000 we plan to delay Social Security till 70 and that kicks in for a total income of one hundred sixty eight thousand dollars annual expenses are sixty K and budgeting about twenty thousand dollars for medical so that's about 80 thousand dollars combined house is paid for no debts and kids are launched my question has to do with Roth conversions during the gap years a couple of the years will be in the twelve percent tax bracket should I up the Roth conversion the twenty two percent bracket for those years is it worth it even doing that it only converts less than half of the tax deferred assets that's a lot of tax to be paid in the near term in forgoing the growth doing a straight analysis between the Roth conversion and not it takes till ninety before the Roth conversions seem to pay off what am I missing I assumed a 3% growth modest yet conservative and of course I have a massive spreadsheet for this thanks again all right we get this question often it's been a while we do what's the break-even of a Roth conversion yeah I think you're going to say day one day one Terry you're yeah and explain that to your your spreadsheet is flawed okay first off because she's comparing apples and oranges right and what I mean by that Terry in no offense is that you're looking at okay if you do the Roth conversion and you pay tax so we keep using the simple example but I think it brings the point home let's say you do a hundred thousand dollar conversion right in your in the twenty five percent tax bracket so you have to pay twenty five thousand dollars in tax so now you have a hundred thousand dollars in the Roth $25,000 is owed to the IRS so now you have to cut a check to the IRS for 25 grand so else she's out twenty five thousand dollars right right so she's saying well this doesn't make any sense I gotta be over ninety for this thing to add up because I did have a hundred twenty five thousand dollars that was growing modestly for me but now after doing the conversion I'm paying a lot of tax capital L ot yes with what Gerry wrote right is now the 25 grand is gone is out of my portfolio it's not growing any more what what gives what she's missing is this a hundred thousand dollars now is 100 percent completely tax-free forever and so in your spreadsheet Terry you've got to take the net tax effect what's the purchasing power of your dollars you have 1.8 million dollars in a retirement account it's not worth one point eight million dollars because you have to pay tax on that at some point so that one point eight let's say you you don't do the conversion it continues to grow to four million dollars well that for million dollars is 100% taxable right if you converted some money out of it right now that money is all yours whatever you see on your mouth account is 100% yours so whatever you see in your IRA is not all yours so you have to do the net tax effect for your spreadsheet to actually work yeah and that's true day one it's true it's true day two year one year two year ten you always have to subtract the tax effect out of the IRA to compare this properly and you're right that's what people miss and so from that standpoint a hundred thousand dollar IRA you can't spend it you know if there's a 25% tax bracket like you said you can only spend 75 so that's really what your IRA is worth that's all it's worth because that's all you can spin right so now you're comparing apples to apples and that's what I I would say the whole industry misses this fact as you see articles all the time the break-even is 11 years or 15 years it's like no it isn't right it's like well Roth IRA conversions only work I mean they work better for younger people because they have more time for the ground prana tax-free great work right because Tara hear me out with now let me explain the example this way is that you have the hundred thousand dollars in the IRA you have twenty five thousand dollars that's sitting in a brokerage account and it's invested modestly and let's say that grows your IRA grows you don't do the conversion right because you did your spreadsheet you're like this sucks I'm 90 years old I'm you know I'm gonna be old and who cares so now you say I'm not gonna do the conversion the hundred thousand dollars gross let's say it doubles now you have two hundred thousand in the retirement account you have fifty thousand or twenty five thousand dollars in your brokerage account that grows to 50 thousand so now you have two hundred and fifty thousand dollars that is sitting on your statement but the 200 thousand is not all yours again right because it's still in the shell of the IRA so you have to pull that out you have to pay tax let's just assume the same twenty five percent rate right are you pulling out you pay twenty five percent on two hundred thousand you have a hundred fifty grand right the twenty five grew to fifty you sell that out to spend that you have a capital gains rate there though right so let's say you had a tax-free capital gains rate now that 50,000 200 now your purchasing powers were two hundred thousand yeah even though after the tax after tax not including the capital gains rate right okay if she did the conversion she's got a hundred thousand dollars converts it to a Roth right she loses the 25 thousand dollars but now she's got a hundred thousand in the Roth that grows at the same rate now she's got two hundred thousand in the Rob she takes out the Roth she pays zero tax the purchasing powers the same right but what we're not telling you is that try to pull 200 thousand dollars out of a retirement account and pay 25 percent in tax yeah it's gonna be able to held a lot higher and we didn't even put the capital gains rate in there that's right and and Terry I will also tell you this first of all you retire it looks fine we're not worried about cash flow you're in great shape your fixed income even before Social Security covers your living expenses but here's your problem it's a tax problem so with Social Security have a hundred sixty eight thousand by the time you withdraw money out of your IRA s at age seventy it could be close to four million dollars so we'll just use that figure just because it's easy math we're using a 1.8 million in retirement accounting just double over ten doubling in ten eleven years something like that so that means the required minimum distribution will be about a hundred sixty thousand so now we're gonna add 160 to 168 so your income is about three hundred twenty thousand dollars in retirement now there'll be some kind of probably standard deduction or itemized deduction of your pre paid taxes on three hundred thousand under the old tax system which comes back in 2026 you are subject to alternative minimum tax and you'll will likely be in a thirty five percent bracket I would actually do conversions to the top of the twenty four because this is the lowest rate we've seen in our lifetime for these sorts of things so this is a huge opportunity you would certainly it's an absolute no-brainer to do it to the top of the twenty two but I would actually do it to the twenty four percent you have plenty of money outside of retirement to pay the taxes you will end up in a such better position and if you run your spreadsheets properly Netta tax on everything you'll see how much better you end up you have to look at it kind of think of it like this Terry and then then we'll break is that when you pay off a mortgage right your net worth doesn't change the day one yeah you know what I mean it's right you have a big fat mortgage in your retirement account by doing a conversion you're just kind of paying the mortgage off get rid of that getting rid of it and then you're stop paying the interest payments forever and the in your house is gonna continue to grow or you have a partner with in your IRA that you're just buying your partnership back so that you can have all of the growth and wealth for yourself the retirement accounts are great we're not saying that they're not but in your specific situation if you ran your spreadsheets a little bit differently to shoot you know show apples to apples of net after-tax wealth you you would find that doing the conversions would be a huge huge benefit so hope this helps Terry hope it helps good luck Congrats on building a wonderful retirement nest egg Mike he writes in from San Diego he goes hello Big Al hello Mike my story and how do I apply for step-up in basis so this is just for you bud okay first I love how mike writes here your wife and I the wife the wife I the wife I bought the house first the wife and I bought the home here in San Diego I love it for $240,000 in October 2011 my wife passed away unknown home value at that time in August 2012 I reef I'd the home the appraisal value was five hundred fifty thousand so that said now in november nineteen twenty nineteen is it too late to file for a step-up in basis if it's not too late what fed tax forms do I use finally what is that stepped-up value if we used a 500k number five hundred thousand or 240 hundred twenty plus five hundred divided by 2 equals 250 120 plus 250 equals three seventy is trying to you so I can answer this question that's why it was asked to you first first of all there's nothing that you have to apply to I'd first step up in basis you just get the step-up in basis and and for those that have pretty large estates in excess of eleven million dollars you probably want to file a Form 706 upon your spouse's passing just to kind of justify that but I'm assuming Mike I don't know this for sure but I'm assuming the your total estates probably below that so you don't really need to file any forms it's the value at your wife's passing you got a step-up in basis and because you live in a community property state being California you get a full step-up in basis on the entire property not half so I think that's what the math was going through because if you live in a non community property state you only get half step a basis and your portion stays the same because you're still living so Mike you get a full step-up in basis you don't have to file anything and now it's just a matter of figuring out what the number is the fact that you refinanced within I don't know ten months or so of her passing you could probably use that number five hundred fifty thousand that's probably what I do if you want to be even safer you can actually go to an appraiser they'll appraise it way back then you can you can do an appraisal after the fact to get what it was worth at the date of your wife's passing but that's your new tax basis going forward and you get a so you get a hundred percent step up you don't really have to inform the IRS about that I guess the only time that that would come into play would be upon on it yeah planning sells his primary residence that's meant let's say he claims the 121 exclusion doesn't pay any tax and then they're like hey well how'd you get this how did you get these our basis then you have proof and said okay well here my wife passed away and then I got the refinance here was the appraisal at that point I used this as my basis when I sold the property that's right that's correct that's the only time you'd have to show that so either you could use the the appraisal at the time of the refinance which is probably pretty good not perfect but pretty good if you want to get an even better answer you get a current appraisal way back to October 11 on your property and appraisers can do that all right hopefully that helps Mike I'm sorry about your wife's passing and that's luck with selling the home it sounds like all right we got another Mike Mike and Sue they right in from San Diego see Mike is above Oh same one hey Mike hello Joe and big al now I'm in the mix slightly this might be a question for you that all right I know I've heard you say several times but need it spelled out say sue will make $70,000 gross this year Mike will make 135,000 gross is here sue paid for K didn't pay Mike she contributed yes it's like painting a bill when I quit in my wife quits yes we're gonna tap into my 401k plan I was like man that's a new name for Darrell right yeah all right so sue paid 4 K into her 401k Mike paid 25k to his TSP Sue and Mike married in February this year okay so okay so Mike paid 25 came this TSP Sue and Mike married in February this year sue and Mike are both over 60 you have mentioned the max income we can make and you even said on what line of the 1040 IRS form to use what is the max we can make and what line should we be looking at so we can both send 7k to our Roth IRAs I know I must be missing some facts here but if you can figure out what I'm asking an answer that would be great thanks Mike and Sue all right it's modified adjusted gross income Mike you're married so you can qualify you can get you can pay another $7,000 into that Roth bill so here's the math so let's see sue makes seventy you make 135 so that's two hundred five thousand but you're putting I get around at you're putting about thirty thousand into retirement accounts so you can subtract that from the 205 so now you're at what 170 185 185 185 No 175 anyway you're below the Roth IRA threshold you have to be below one hundred ninety-three thousand dollars and so you've made it so in other words your gross salary minus your deductible contributions to 401 K or TSP will get to you your your your income now you do just the gross income as long as that numbers under about a hundred ninety five thousand dollars you qualify real quick back on Mike's question about the step-up in basis on whose primary residence I wanted to mention that one of our advisors here at pure financial Pete Keller just did an educational video explaining the concept of stepped-up cost basis and Taxation for beneficiaries spouses and a joint tenants with rights of survivorship situation and spouses with community property check it out in the podcast show notes at your money your wealth com just click the link in the description of today's episode in your podcast app and subscribe to our youtube channel as well to catch new videos as soon as they're release dalia from youtube lamp huh where the hell's our youtube lamp beside your computer bar your phone she doesn't want to disclose where she's from hi Alan Joe I came upon your channel on YT YouTube would ask some questions I'd formed my own business as an S corp dismay all right you followed me gal i with it alright she's in the 35 percent tax bracket I am my own employee I am setting up my own payroll in looking into 401k options I'm single no dependents I have one property which I don't live in and bought for my parents here are some questions alright okay number one good start I was looking to do a Roth 401k and getting confused on how to set this up do you have a company that you would recommend currently most of my investments are with Schwab and they say they don't have 401k with Roth features all right number one let's you could set up a solo 401k at Schwab but they they're there planned out for solo for well I guess we should explain what a solo 401k yeah let's start there alright so Dahlia is self-employed only employee once set up a retirement account a solo 401k allows Dahlia to set up a retirement account for her business to just shelter more money in a retirement account than probably any other plan well yeah then a SEP separate more standard IRA or simple not as much as a device it's like but it's it's a really good plan for for self-employed business owners that don't have employees because you basically can set up a 401k with employee and employer profit sharing parts components and so you can actually put quite a bit away but to set up a solo 401k you have to be the small business owner you do correct you can't set up a solo 401k if I'm an employee at XYZ company that's accurate right so I'm an employee of pure financial advisors and peer financial advisors has a 401k plan I cannot choose to say you know what I'm not gonna participate in that plan I'm gonna set up a solo 401k plan over at Schwab that doesn't fly you have to be self-employed to set up a solo 401k plan do we have any recommendations you can go to TD Ameritrade they have a it's the plan doc yeah so like fidelity I know doesn't do the Roth in Schwab doesn't do the Roth plan component of it but TD Ameritrade does yeah and I'm not actually I'm not a hundred percent sure that Schwab doesn't do it but but here's the way that you do it you open up a solo 401k and then you see if there's a Roth option there's there's no such thing as opening up a Roth 401k you open up a regular Scylla 401k with a Roth option provision brought breath provision Roth option that allows you to do either so that's that's the starting point but I think he's already went to Schwab or she went to Schwab I'm sure Schwab has the Roth option I don't think so well we'll have to we'll just have to agree because well I know perfect because we have money at Schwab not much yeah it's it's I know you got more money in your bank account that's why visit company and we have money at TD Ameritrade yes yeah or in that we have client dollars at fidelity so we use all three custodians mainly fidelity and TD Ameritrade correct and anytime I've set up a Roth 401k for a client I have to use TD Ameritrade because fidelity does not fidelity it does not have one and that's all I'm assuming that if fidelity doesn't and she's already asked Schwab and they said no yeah I I would just maybe ask again yeah I would ask again to you I would I'd ask again what you're looking for is a is a solo 401k with a Roth option that would be the way to ask and get someone else just make sure and and you're right Joe we know for sure TD Ameritrade has one number two if I did the Roth 401k the 19k employee contribution would be a deduction not a benefit for me as an employee so I would be paying this in post tax dollars is that right well the $19 is not a deduction well it's a deduction it's a post tax that's a post text yeah so let's let's add some noxee not $19 post post tax it's not a reflection post well it's deducted from your net pay so you could call it it's a contribution all right post tax country okay all right let's okay all right so you're thinking is right it's it's it's not a tax deduction if you're trying to say it that way it's a post tax and which means that the $19,000 goes into the Roth side of the 401 K you do not get a tax deduction so you're still paying tax on 19,000 so but the 19,000 now is in the Roth it will grow 100% tax-free so any dollar that that grows here you pull it out you don't pay any tax on whatsoever correct now Donna is thinking about doing the profit sharing feature within the solo 401k so why would the profit sharing feature be pre-tax only because there are two different plans you're just combining them you have a 401k plan and you have a profit sharing plan so the profit sharing plan is contributed by the employee and the employer contributes that profit sharing based on profits of the overall organization in the company then takes the tax deduction by doing that that's why it's pre-tax yeah so I would say it's the same plan but well it's a 401 k & profit sharing yeah but it's the same plan it's the same that's it's the it's a 401 K has a profit sharing component it let's get right there's so many components it's not a separate plan you don't have to plan documents it's a single plan but - I'll answer this maybe a little bit more accurate wait I guarantee you at any rate the when an employer makes a a match or a profit sharing a contribution on your behalf and a player it's not their Roth IRA it's your Roth IRA and employers is is takes a deduction always takes a deduction so that's that's why and it seems kind of confusing because she's the employee and the employer so why don't I get the Roth on both and the answer is because there's an employee and an employer and she just happens to be both correct and so the company's taking the deduction that's why it's pre-tax well what Jake said and why would you say that that was a better answer because it mine was more accurate I guarantee you can have a 401 k plan without the profit sharing right you can but it's if it's the profit sharing is a component of the 401 K yeah but I can accuse yeah you can't have a profit sharing plan and a 401 K but there's no reason to do that all right would I be able to also make after-tax concert bution with an in-service distribution to take advantage of the mega Roth IRA rollover she wants to continue to put after-tax dollars in solo 401k the answer's no yeah I think in most of the silicate plans prototype plans they don't allow post tax money going in because the the defined contribution plan limits is what $54,000 so for some employees that work for larger companies you can put up to $54,000 into a 401k plan $19,000 or 25 if you're over 50 would be pre-tax or if you went to Roth it would be after-tax but you could continue to add money into the after-tax component of the plan and then convert it but you would not be able to do that in a solo 401k lastly since I was employed at the beginning of the year w2 1099 payments I also had a 401k with my previous employer how would I factor that into my contribution limits I guess if she contributed to the old plan and then used its $19,000 per the year yeah per the year no matter how many 401k plans you have and she also asked what I also be able to contribute to traditional IRA with me as an employee the answer is yes so you could do the 401k plan profit sharing plan and a traditional IRA or Roth if you choose to if you qualify for the income limits on the Roth or if you want to take an after-tax contribution to the IRA and then you can automatically convert that that would be a backdoor Roth IRA potentially if you don't have a lot of other IRA well if you do you just put them into the new 401k plan that you established I've posted a bunch of retirement plan resources for self-employed small business owners in the podcast show notes at your money your wealth com including a podcast video of Joe and Big Al discussing the benefits of the solo 401k and sell a Roth 401k the why my W TV show episode on retiring as a self-employed person in the new gig economy a giant blog post on small business tax filing and a video from pure financial advisors Allison alley outlining the best self-employed retirement plans click the link in your podcast app to go to the show notes and don't forget to share these free resources with all the self-employed small business owners you know and click ask Joe and Big Al to send in your questions via email or voice message a good buddy Marcus from Tennessee / Alabama wherever the hell he is he actually give us a voice recording these guys ask and Marcus provided let's see what Marcus got to say to us from Tennessee Alabama Road no actually that's not my voice but yeah this is Marcus from Alabama / Tennessee Tennessee / Alabama yep one of Carl and give you a brief history of the whole Tennessee Alabama theme all right so here how to go before we get started man keep up the good work on my show I thoroughly enjoy the show so I don't remember when it was but one time when I emailed in I had a question I think was about this state tax I don't remember Joe said hey we got markers from Alabama and I was like wait a minute I don't remember putting in my location on the email I like weird know where they get that from so I went back and I looked over to email looked over you man I said no I didn't say I was from Alabama then I realized what happened I scroll down and I had my phone I left my phone number and it was at that moment I realize how important and valuable Sherlock Holmes was I mean Andy was - why am i W because she looked at my phone number said hey this Marcus from Alabama so the next time I emailed and I was gonna be a little pity right and I was gonna be a little pet and say hi technically yes I'm from Alabama but I'm emailing from Tennessee and so since I got a big reaction out of that I said well you know what I'm keep doing it just a mess winner so that's the story of Tennessee / Alabama hey keep up the good work thoroughly enjoy the show and got a couple suggestions recommendations and a question I can't speak for all of your listeners but I strongly believe they will prefer a two episodes a week podcast from one day I don't know I mean I know y'all busy but just marinate on that for a little second I think y'all can make that happen I appreciate that and so now to the question could you go over the difference between a financial planner and a financial advisor do they do two different roles and then after that what's different - like a registered investment advisor a broker dealer and all that jazz all right thank you very much you know I probably could Google this answer in fact I probably already did in the past but like Google when you have Y on my debit anyway thank you for all your hard work and thank you for the question Wow Wow that's fantastic Marcus Marcus Tennessee Alabama yeah I really wish you Douglas next question you got attack that way the whole question yeah they're a challenge in your market oh you got it you could do it answer the question with that voice okay let's let's talk about his comment Marcus I can barely do 30 minutes with Big Al let alone two episodes per week I will marinate on that it will marinate I could use that freedom for all sorts of different we'd have to be together for how many hours but we'll marinate on that alright so what's the difference between a financial planner financial advise nothing really you know I think what you really want to look for is that the designations behind whatever it's titled they give themselves right because I call myself a financial advisor I call myself a financial planner like you know if you know some people ask me what I do I usually say I'm in finance yeah don't want to go through the whole BS right right it's like whoa what line of work are you in well I'm in finance and that usually just shuts them up and they don't really ask me anything else because it sounds so boring versus well if I say I'm a financial adviser then they're either gonna ask me oh oh so what do you think about the market or they're gonna think that I sell insurance all right what are the other right so it's I I feel differently so I always used to people say what do you do CPA oh now you see a big ya know I say radio television or celebrity alright alright so now I say I'm a financial planner oh you help people with money then we have a conversation yeah I don't want to have a conversation what do you do for a living I'm in finance I go pound sand I don't know I you could say you're president I'm not gonna say I'm president president appear financial advisor so many employees on TV not even a little bit only if I have had a couple bars and she's cute Oh kitty you've had a couple bars couple beers at a barn she's cutesy Amardeep no plains of that I would look at designation Big Al's a CPA I'm a certified financial planner so I would look more on the designations I would look in then I like your second question or comment here is that what's the difference between like a registered investment advisor and a broker dealer an RA a can be both though I mean they can be a registered investment advisor that's under a broker dealer so they're wearing two hats that's called hybrid yeah and it gets a little confusing a straight RI a is just fiown lis right the you Marcus would be the boss you're paying that advisor and there's no other compensation right if I'm with a broker dealer I could be you could be charged a fee but then you're also paying commissions within the products that you're going into so there's conflicts of interest there could be could be yeah and the the registered investment advisors generally are under a fiduciary standard meaning that they were required to give the advice in that's in your best interest we're broker-dealers a suitability standard which basically means as long as the product is suitable they can sell it to you whether or not it's the best one we we feel like that's a pretty big distinction that's why we we would encourage almost anyone to use a fee-only fiduciary be only fiduciary registered investment advisor certified financial planner CPA CEO Jeff see that's another good one CHF see CFA CFA I see a phase of Goodwin Chartered Financial Analysts yep CIC HFC that's a chartered financial consultant those are like a little old school before that mm-hmm all right well Marcus that was a lot of fun speciate yep you leaving a voice message CEO you you can do this so I guess another thing too is if you do want us to do a couple of episodes per week just write us in we need more you have any more questions we need more feedback from you guys to see if Marcus is the lone wolf which I think he is and realize that if you don't tell us where you're from we're either gonna make it up or I'm gonna figure it out from your phone number and it might be wrong Andy spends most of her day just like searching our listeners out oh no everything about everybody likes Stuart from San Diego I know exactly where he lives but I will say Marcus J is a very cool guy I really like him so thank you Marcus so if you do want us to deal a couple podcast a week then you would have to write in your go to your money or wealth jot it down subscribe to our podcast reach out to us let us know I'm guessing Marcus is the only one and probably Andy would want to do it what makes you think that because you'd like to find out where these people live and Google Google manful I mean mark is trust me I got a picture of your house right here [Music] [Laughter] the bank said just come be Sherlock all right thanks a lot for listening folks send us your email questions that your money want that calm we'll see you next week you too can leave a voice message just like Marcus did or send us an email just click the ask Joe and Alan err banner in the show notes click the link in the description of today's episode in your podcast app to get there and if you're a fan of the derails like Andy is stick around to the very end of today's episode your money your wealth is presented by pure financial advisors click the free assessment button at your money your wealth calm to sign up for a no cost no obligation to meeting assessment either in person or via web meeting with a certified financial planner from pure pure financial advisors is a registered investment advisor this show does not intend to provide personalized investment advice through this broadcast and does not represent that the securities are services discussed or suitable for any investor investors are advised not to rely on any information contained in the broadcast in the process of making a full and informed investment decision may I say it's nice to be back after a two-week vacation yes did New Zealand good to have you back oh thank you what's fantastic by the way I contemplated never attorney I wonder if Mike talks in third person all the time you would absolutely not that is I will tell a gift-giving Lister's that's one of Joe's pet peeves if I ever call myself Big Al you know Big Al feels this way so it's just we were just interviewing this guy I was thinking yeah joe hates people talking in third person joe really gets annoyed so anyway okay he can pinch all 248 episodes this is 249 that we have a very iconic show next week out yeah 250 pity but how are we gonna celebrate I think it's gonna be very similar to today Marcus wants us to do two podcast the week there's got to be more than four people to request that president even think about would probably get people saying one a month is fine let's say that would I would say one of year fifteen minutes you know you guys realize that you've never taken a break most other podcasts do seasons like you do for the TV show and you guys have done two hundred and forty nine episodes straight without ever taking a break yeah oh my god my questions where's the other five thousands that we did before yeah we're gonna have to find them you
