Business Innovators Radio - Interview with Financial Professional Bryan Baysinger Discussing Tax Qualified Plans

Episode Date: August 29, 2023

Bryan has been a well-known Financial Professional and Educator for the Last 36+ Years! Bryan has developed a specialty working with Semi-Retired and Retired persons aged 50+. Hundreds have attended his classes on learning how to Shield their Life Savings (Assets) from all the negative issues out there that they are usually unaware of!Knowledge is Power! Education is Key! Consequently, many of those who have worked for small & large companies have set aside millions of dollars. Bryan helps clients to make sure their savings last throughout their lifetime & creating a legacy if they desire for their heirs!Learn More:https://shieldyourretirement.com/Influential Entrepreneurs with Mike Saundershttps://businessinnovatorsradio.com/influential-entrepreneurs-with-mike-saunders/Source: https://businessinnovatorsradio.com/interview-with-financial-professional-bryan-baysinger-discussing-tax-qualified-plans

Welcome to influential entrepreneurs, bringing you interviews with elite business leaders and experts, sharing tips and strategies for elevating your business to the next level. Here's your host, Mike Saunders. Hello and welcome to this episode of Influential Entrepreneurs. This is Mike Saunders, the authority positioning coach. Today we had back with this financial professional Brian Basinger and we'll be talking about tax qualified plans. Brian, welcome back to the program. Great to be back again, Mike. Hey, so first of all, I guess before we start talking about tax qualified plans, we should start with what is one?

Can you give us a good simple definition of a tax qualified plan? 401K is one of them that a lot of people have a tremendous amount of money in 401Ks. But there's a number of other tax qualified plans as well that they have these money's in. So basically, these plans like you see from work where it comes out before taxes are taken out, it comes out of your paycheck into that plan. And it's not been taxed quite yet. So that's kind of where the tax qualified comes in. Well, here's the great thing about that.

I'm glad you asked that question. A lot of people don't realize we used to meet with teachers and other employees of companies and what have you back in the past. And we would always say, hey, if you get in on this tax qualified plan, you put in 75, but you get 100 for it. So, Mike, if you and I were sitting across the table from each other, I laid $75, I laid $100 down, rather. And you laid down 75, we'd be exchanging money all day, right? Yeah. And the reason for that, I'm using that as a 25% tax bracket that every time you put in 75,

you get 100. So that's why these accounts are considered the largest accounts that are out there today, simply because not only are you making those contributions, but you've got the IRS helping you along the way. And that's why today these are some of the largest accounts. Yeah. Portfolios that we see. And is there another aspect of that, too, Brian,

where an employer will also make. match a certain percentage like five or six percent or something like that. So that further, you know, gives benefit to the holder of the account. Well, I can speak very clearly on a book that I work with a guy on called the informed Fed. And in that book, it's brought out that people that government employees specifically have thrift savings plans. And on the thrift savings plan, the government will match up to the amount that you put in. I think that that percentage, though, is like four or five percent, I believe it is. But when you put in four percent, they put in, they match it.

So that's a great thing where you get that matching in addition to the taxes that the federal government does specifically in thrift savings plans, of course. So that's why some of those plans that have tax benefits, and the employee employer match and all of that, those become really popular. And here's the employees that they just, that's the first step into retirement accounts. Are those 401Ks typically the largest of all of these retirement plans you're seeing today? But and or there are other ones out there that are pretty popular as well.

Well, not just 401Ks. When I talk to talk about tax qualified plans, 401Ks are part of it. But we've got to bring into the picture also. Also, individual retirement accounts, IRA. Yeah. To max out as much as they can to get those tax advantages by having an individual retirement account. We talked about, you know, the Thrift Savings plan, and that's usually for government employees, but you also got Roth IRAs.

You remember when Senator Roth come out with a Roth IRA plan, that's supposed to be a tax-free advantage for you there. And then you've got 457 deferred compensation plans. And then a big one I was alluding to earlier is the Fault 403B tax sheltered annuity plans that are available with teachers that work in school system, doctors, nurses, that work in the medical field. And, then, of course, ministers and people that work in the, and clergymen that work. and they get all of these opportunities here for them to save money before taxes and have these tax dollars in their matching with their dollars. And again, that's why these accounts are so big. But plus, you've got pension plans that come into the loop.

Of course, that was done away with Mike back in an age. You probably well know. But there are some plans. I run into teachers. I run into people that work for the city. one of our minister friends. He worked for the city. So he's still able to take care of, take advantage of, rather, his plan that he has there. So he's getting up.

I think a lot of people don't realize how broad these tax qualified plans are. Like, they assume it's just IRA and 401K. But like you're mentioning here, 403B for business owners and all these different specific ones for different industries. And I think what. that does is that makes people realize, okay, that's a wonderful plan. Is it best for me now as well as far into the future for retirement? So that's kind of where you come in to say, okay, you've got this type of plan. Let's make sure it's the right one for you. Let's make sure it continues to be the right one for you way down the road toward retirement. Exactly. Exactly. Exactly.

So do those, so like if someone is in a whatever 401K or 4013B, do they actually own and control those plans or are they controlled by them by the plan administrator? How does that work? So the answer to that is no. See, when you signed on, the biggest partnership that you came in and was that you entered into an agreement with the IRS. Yep. And Uncle Sam. Yep.

And the rest is sure they will, you know, hold you to that agreement. And what we run into is semi-retired. retirees who don't know how the rules and the regulations and the potential tax clauses they're faced with. Do you remember the old saying, Mike, we don't make the rules, we just play the game? Yeah. This is exactly where it gets tricky because most folks, they get in and what happens, they do all of these up front, which is great and wonderful and all that, but they forget

about their rules and regulations, and they don't stay updated, so they just put it in in gear 20, 30 years later, then they're ready to start taking it and they make mistakes if they don't take it according to the IRS rules, regulation. So that's the thing. You remember on our last interview, I spoke about and alluded to the three phases of money. We talked about the accumulation phase when you're working, you're saving, giving as much money as you can. In other words, you're usually in the market.

if that's how you're saving money, set money aside. But I also alluded to the preservation stage. And this is where we're trying to help and protect and preserve what a person or family worked a lifetime to accumulate. That's very, very much needed to protect and preserve. If you're not working, you can't replace the dollars. But in addition to us helping and working with people and protecting and preserving their assets,

a lot of people forget about the third phase, and that's the distribution of your assets. In other words, we're trying to figure out how to open your money, I'm sorry, I mean, spend your money and create an income for the last 30 plus years because people living in retirement. They don't want to run out of retirement dollars. Yep. And people are living longer these days. Back in the 50s or 60s, let's say, the lifespan was X. You know, you retire here.

You need it to last this many years. These days, we're eating better, exercising better, seeing doctors, health care is getting better. So now the money needs to last even longer than traditional plans were alluding for. Is that what you're seeing too? Yes, that's exactly right. Also, getting back to playing the game with the IRS, I thought it was particularly interesting that this game that the IRS has. They are the only one who can change the rules of the game, Mike. So you bring a partner into your business and they can change the rules, but you can't.

That's not a good partner, but I know that's the facetious example we always use. That's not too comforting to realize that the rules, the government, the IRS can change the rules. And all of a sudden you wake up and now there's less money for you because the rules changed. Because the rules change and also people don't keep up with the changes, the ongoing changes that takes place. like indirect and direct rollovers and the CARES Act taking away the stretch or multi-generational IRAs. There's several that things that have happened in the last few years that has caused this and people just don't understand and realize this is taking place until they get ready to

start taking their money out. you know also you know if we took the irs and i'm not beating up on the irs but if we put the irs together get what we come up with bears yep there's yeah there's yeah that's funny we worked all a lot hours yes it's going to be ours but in order to stay adept on the new rules that's what we step in we're folks don't have to keep up with the changes. We keep up with them. They work with us. We show them how to do this and they don't have to keep up with all these changes. Yeah. Well, that just makes a lot of sense. And you know, I think it also makes me think about this.

The traditional family facing retirement, they're busy doing what they're doing. They don't know how to keep up with all these things. And even some financial professionals that are focused on one specific thing. or the other. They don't see everything holistically. So would it be valuable to get a second or even a third opinion when it comes to retirement planning? Most surely, Mike, we believe it's very valuable so that you'll know and be adept on what's going on and that we can show you and help you meander and go through this quagmire of all these rules and regulations. and let me share a story with you. I had a lady that had a 401K.

This is a prime example. She has been a client of mine for years and years. And the first part of time that I met with her on our 401K, we done what was called a direct rollover. Now, direct rollover means that the money comes directly from the company that she worked with, the full 1K provider. Well, what happened with this particular lady, she, instead of calling me when she got ready to do the next rollover,

she left some money hoping that the market would go up, it did it, and it was the same amount four or five years later. But what she did was she took it upon herself instead of calling me to take her money out. Now, this is where folks running the challenges. she didn't call me. So she met with her HR person, human resources person over there. And she talked with the company that had the remainder of her 401K. Well, they told her they would send her a check.

Well, guess what happened? Instead of them sending the entire amount, which was, I remember to this day, it was $100,000. They sent her $65,000. She said, oh, my goodness, what's happened here? And I said, well, you didn't call me. We could have done a direct transfer, went from one institution and another institution, one custodian to the next custodian.

We could have done that, but she depended on HR, which good people in HR to do a good job for their employees, but they don't understand the rules of qualified plan distributions. So they sent a check which triggered a penalty and all kinds of things, right? So they got $65,000. I was supposed to get $100. And it took some time. This lady was blessed because she took the time and we went back and we worked for her and fought for her and was able to get that restored. Wow.

And here's what gets me about it before one K provider should have known better than that just to send her 65 is that she was doing the pay off the taxes right now because tax qualified plans that you're taking distributions on is usually for income. It's not for lump sums anyway. Which just gets back to, you would think that the HR person or the 401k administrator would know, and they know what they know, but it's very specific. They don't look at the whole picture and having someone like you look at it and give that second or third opinion. All of a sudden now, you're like, hold on, make sure you tell them not to send it this way,

to let's do it that way. And you could, now you fixed it, but it could have saved a lot of heartache if you had worked with them right from the beginning, right? Exactly. Exactly. You caught me. We would have been able to do that. But, you know, she's a strong, independent person.

There's no problems there. But then when you go into that alone by yourself, then that's where we find a lot of people make mistakes and they try to do it on their own. And I also had a, had a client. that was dealing with a banker. He had a 401k check coming to mail. It was also called an indirect rollover. He did get his entire amount,

but he had already deposited some of the money in the banking account and had spent some of it. And so he calls me and said, hey, what do I do? I said, well, no problem. You just, under the 60-day rule, you can use that money as you're like, but in 60 days you've got to get it back in the IRA.

Well, here's what happened. I'm on an interview with another client. I get off and I get a call from this banker lady. He's sitting in front of the banker lady and I instruct him. Just go down there. Make sure all your funds are whole, whatever that figure was. I say it was 100,000. I don't remember exactly.

But we need to make this hole and send it to the company. Well, the banker lady got involved, and what she was trying to do was tell him you made a mistake. You're in trouble. She didn't know about the 60-day window. She didn't. And so I had to end up going down to the bank sitting across from this lady. And we get on the phone with her 401k provider. And I said, sir, we're all in, everything's in order for this gentleman.

he's just utilizing a 60-day rule. And she looked across the desk from me and said, gosh, I didn't know that. And here she is advising my client what to do. And I think what her hopes was that she could discredit what I was doing from my client. And then he would place those money with the bank. And shout out to all the guys out there, financial professionals, be on the lookout. for somebody like that that will, and she's a fine person, all of that, but gave him wrong advice and then to reposition the money at her bank rather than doing what was best

for the client. Finally, I had to call the lady Mike and say, what level of involvement are you dealing with my client and your level of involvement went beyond what it's supposed to be to have done? Yeah. Had to let her know that. Of course, she got angry and hung the phone up, but, uh, I see, hey, you're But you know what? Brian, Brian goes to bat for his clients.

And that's, uh, that's a wonderful thing. These two examples here of you, you know, getting, getting, going to bat and making sure that your client is the one being taken care of. Yes, sir. Yes, sir. Also, when we talk about getting, Mike, a second opinion, I'd like to share a personal store on a second. We'll talk about getting a second opinion.

I had some problems with my hip some years back, and the doctor kept on me. Well, actually, first I went to my general practitioner who gave me these cortisone shots in my hip, and they lasted for a short period of time. And then he advised me to get with a sports medicine doctor about 100 miles from where I live that he used. He was actually a polio, had polio when he was a kid, and he had one leg longer than, any other. So he had, this guy actually helped him get his

legs where they were, where he wouldn't walking and hobbling. And he recommended this sports medicine doctor for me to go over and have a hip replacement. Well, I went over a few times, and they gave me some shots. It was more powerful, obviously, than the

cortisone shot. And that lasted for about, I would go get a shot like every three, four months. And that lasted for a while. And I kept putting it off, you know, and trying to pursue other areas, you know, chiropractor. It didn't want to be cut on.

I guess that's the main thing. But eventually I came back to realizing I needed that opinion. And I needed to not only take that opinion, knowledge is power as we talked about before, but it's only potential power until you take that recommendation. And that was what I was kind of delaying. I was procrastinating. And that can be a problem with people when they procrastinator put it off.

And I was doing that. But so, but I ended up in, in there and a guy, he brought me in in the morning time, done the surgery on him, took me about an hour and a half. And I walked away that day with a brand new titanium hip that will never wear out.

Wow. But it all had to do with me, would stop putting things, off and procrastination. That's a lot of challenges that I think all of us faced with. And then acting on what the doctor, the specialist, the one that specialized in that particular area, because he does just tons of hip replacement knees, you name it. He can do that. In fact, there's some of the highest paid doctors in our nation is the sports medicine doctors that does all these hip, knee and joint replacement things. So I've done what.

what he said and guess what the next day they had home health care at my home had me up walking around the very next day now if i'd have done locally they told me what i would have been with one the doctors here i would have been two or three days in the hospital was skip the hospital the next morning home health has me up walking around on this hip that'll never wear out and man i'm i wish i had done it prior to that time and not have put it off. You know, it makes me think of the old saying, trust the process. You know, you go to people that are experts that focus on a certain area, whether it's financial or medical, and you went to them for a reason.

So trust the process. And that's what you just experienced in that example. That's spectacular. I'll tell you what, Brian. Let's wrap up with any final thoughts that you would like to make on the concept or the topic of tax qualified plans and then what's the best way someone can reach out and connect with you? Well, the reason I brought out those three stories, and especially one on my health, is this same principle applies not only to your health, but to your wealth.

Yeah. So we have people to contact us, how do they take these tax qualified plans and what is the best decision at this time? Remember, they've already accumulated money in all these different plants. Now we're trying to do two things for them, Mike, show them how to protect and preserve what they've worked a lifetime to accumulate. And then secondly, how do we distribute it? How do we take your money now, make an income out of it,

and set it up where you can enjoy retirement, walk away, and that's what we specialize in doing. So we believe it just as important for your, not only for your health, but when it comes to your wealth for us to have a meeting. Someone would like to call me. My number 601, 604-4-38. We can do a phone interview. We can do a Zoom meeting.

We can do whatever medium that that family or person like to do. And you can also visit us on shield your retirement.com. That's H-I-E-L-D-Y-O-U-R-E-T. T-I-R-E-M-T-T-com. Shield Your Retirement.com. They want to know further things about who I am and what we do. Excellent. Well, Brian, thank you so much for coming back on today.

It was really a great pleasure talking with you again. That's great, Mike. I'm glad to be here and glad that we can get this information out. You've been listening to Influential Entrepreneurs with Mike Saunders. To learn more about the resources mentioned on today. show or listen to past episodes, visit www. www. www. influential entrepreneurs radio.com.