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Hey everybody, welcome to the podcast. Thanks for hanging out with Jude and I here on the Roth guy. He is the Roth guy, and we’re going to take some email questions my friend, from folks to drop a line in, either into your website@centrustfs.com,

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or on a YouTube channel, right? So let’s see if we can help some folks out, how you doing? You doing? Right? I’m doing spectacular. And I love mailbag questions, because I feel like we really get to respond and almost interact. Yeah, for sure. I mean, it’s good to hear what people are thinking and and obviously, if it’s happening in one person, it’s probably happening somewhat similar to somebody else. So, you know, it’s a good way to kind of share, you know, real world, you know, examples with other people. So yeah, let’s dive in. Helps folks out. We’ll change the names and locations to protect the innocent. We’ll probably just admit them, but we’ll just ask the general question. So So let’s dive into this first one here. Recently got a job with a financial company, and they have approached me about making a significant investment into a life insurance policy. I’m a little skeptical about whether or not it’s a good idea for us, but also feel that he wouldn’t be trying to necessarily steer us wrong. What kind of questions should I be asking? So I guess, to break that down for just anybody in general, often Jude, we kind of think, as we’re getting older, do we still need life insurance in the same way we got it when our kids were small, right kind of thing. So how would you kind of tackle this one? Yeah, this is, this is also something that is, is very common. I get these questions because you have a certain set of gurus out there that say, you know, you should be putting money in life insurance, because you can, you can create your own bank, and you can take money out tax free, and it’s really the only way that you should be increasing your net worth. And the Rockefellers did this, and then you had, you have some other set of gurus that say, life insurance is a terrible investment. It’s not an investment. You shouldn’t be buying any permanent life insurance. It’s only term. And so, like everything, there’s always the people on either extreme, and the answer is somewhere in the middle, and needs to be customized for you. So the way that I would approach this is, I would first ask, Do you have a need for death benefit. If something were to happen to you, are there people that you need to actually leave funds to, or organizations that you want to leave funds to? And if the answer to that is yes, then yeah, let’s let’s boogie. Let’s look at life insurance options. Then the second thing I would ask, Are you funding a for a Roth 401, K or Roth IRA, are you concerned about the ability to have some tax free dollars more than what you may be contributing to now and you’ve maxed out all of those other opportunities? If the answer to that is yes, then maybe putting money away in a cash value life insurance could be a supplement to what you’re doing. And so number one, do you do you need life insurance? If the answer is yes, then it basically breaks down to how much life insurance do you need? And What type do you need some type of something that is term and dirt cheap, or do you need something that can build cash value and be used for multiple purposes? And so I would, I would say to her, you know, talk to a qualified professional that really is into planning and not the and doesn’t have

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an agenda on one side of the fence or the other. So this person, obviously, they put in, they have a sizable 401, k right now balance at work. So, you know, we’ve talked, talked often about, you know, taxes are currently on sale. Maybe, does it make sense to maybe do a conversion? Can you, could you fund a life insurance policy once you’ve done like with the 401, K, could you roll some things over? Is that a possibility? Or, how does that work? Or does it work? In fact, I would encourage people to go to the tax bomb.com because if you have a sizable 401, k1, of the things that we say here, often on the podcast, is, you have a hidden business partner in that 401, K, so no matter how sizable it is, it ain’t all yours. Part of it is, is the federal government. If that is concerning to you, then a multi strategy approach should be taken, maybe doing some Roth conversions and looking at exactly how much to convert, because if you do too much, it could cause a domino effect on so many other things, like increasing the potential cost of your Medicare, putting you in a higher tax bracket. There’s a lot of different things that can happen from that, making the right decision, and maybe you do want to include.

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As part of a holistic strategy, having a life insurance policy that has some cash value. There’s a code, an actual IRS tax code, 7701 that allows the favorable use of life insurance. And I say that very strategically, because there are going to be people out there that really don’t understand how to use this in the most efficient manner, and you really need to work with someone that can put together a customized holistic plan and not just piece together products. Yeah, yeah. And you could, I mean, depending on what you the right product for you. I know sometimes the annuity words a bad word for some folks. But again, they can be a proper, good, useful tool, like you could roll some of the funds out of your 401, k into an annuity, and then use the annuity to pay the insurance premiums. So, you know, again, there’s lots of different ways to kind of go, but you need to have a strategy, not just, you know, willy nilly, obviously, gotta have a strategy. And, you know, gosh, we’ve got so many strategies, but again, not every strategy is right for every person, and so it really takes sitting down. I go into a doctor, he’s going to do an analysis, and based on your analysis, he’s going to make a recommendation. And so that’s what you need to do, is really find someone who can do that proper analysis and look holistically. All right, well, we’ll do one more email question here. Jude from Bob. We’ll just call him Bob. He says, I’m probably not what you consider a savvy investor. I’ve always saved a lot for the past 30 years, and I got a pretty big 401, K balance. I’m glad to see there’s folks out there with a good 401, K balance. That’s awesome, but I really have no idea how I should be investing current dollars, right, or future savings. So I have significantly handicapped, have I, excuse me, significantly handicapped myself by not having more knowledge about how the investing world works. So I’m glad to kind of hear this question, because it means that people are paying attention. He’s been doing what he’s told, pump the 401, K for 30 years, right, right? So wants to know what are, what other other things should maybe he be looking at? Should Bob be looking at or thinking about? Yeah, I would say to Bob, right now, you are in an ideal spot. Don’t stress out, because you’ve done the hard work. You’ve built this significant value that now you’re going to be able to use to, you know, when you were working, Bob, if you’re still working, you’re trading your time for money. Now, because of this significant value, you’re going to buy back your time with the money that you have in your 401, K, so you’re in, you’re in a sweet spot. But here’s what we need to do to take you to the next even better or higher level, we need to get strategic about how that money is allocated. And one of the things we talk about a lot is our bucket plan system, three buckets every dollar that you have, that you’ve saved up you built your nest egg, should have a timeframe and a purpose associated with those dollars. We call ours the bucket plan, now, bucket, soon, bucket and later, bucket. And if you can wrap your mind around being strategic about how you use those dollars, it also allows you the peace of mind to how to invest in the future with additional dollars. Where should those dollars go? Because what I hear you saying is, I’ve, I’ve put away money, but now, what do I do? Have I maximized all my options? Yeah, yeah, for sure. And there’s so many different vehicles out there that, again, depending on the kind of income you’re earning, you know, you may want to be looking at some other different strategies, as we’ve talked about here on this episode and other ones. So it really is important to kind of take a look and go, All right, here’s where I’m at at this current time, and then where do I want to be five years from now, seven years from now, 10 years from now, and that’s part of that future looking strategizing, versus just, you know, today. And obviously CPAs are helping you with your taxes from last year. But you want to be thinking about the you know, the future. You even, if it’s only you know 10 years away future, you still going, Hello, yeah, don’t forget about me. From one point in time we go to investing either moderately or aggressively. We have a new intern in our office, and I was talking to him today, and I said, Look, you should be as aggressive as you can, because you got 40 years, 50 years before you’re going to need this money, right, right? But Bob, you may be in the stage of life where retirement is around the corner, and your strategy needs to be based on that. And sometimes you get to the point of life where you win by not losing. You win by being so aggressive. Yeah, yeah, how you know if you’re if you’re winning the game? Some people say, Well, stop, stop playing. Right, right. So that bucket plan will help you. That bucket plan will help you strategically, understand how those dollars that you’ve saved should be allocated, and you’ll have telling you, we.

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We’ve helped hundreds of clients go from work to retirement. And I hear this all the time. My buckets are working for me, and it gives me peace of mind that you think is what you need at this point. Yeah, the bucket, the bucket runneth over.

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So get yourself on the calendar. Folks, reach out to them, go to the main website and just get that bucket plan rocking and rolling. It’s send trust fs.com

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We’ll have that pop up on the screen as well as it’s in the show description, so you can just click on it. Make it easy for yourself, send trust fs.com or if you want to use the calculator and go check some stuff out, go to the tax bomb.com Either way, both links are in the show notes. So click on whichever one you need get started today with Jude and his team. They are here to help you, and don’t forget to subscribe to us here on the Roth guy Apple Spotify. And of course, YouTube hit that thumbs up and notification bell so you catch new episodes when they come out. It helps the channel helps you, hopefully get some useful nuggets of information. Jude, my friend, thanks for hanging out. Thank you, brother. I hope we really gave some good advice today. We try, we do our best, and we’ll see you next time here on the Roth guy with Jude Wilson,

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financial planning and advisory services are offered through prosperity Capital Advisors, PCA, an SEC, registered investment advisor with its principal place of business in the state of Ohio, centrist financial strategies and PCA are separate non affiliated entities. PCA does not provide tax or legal advice. Insurance and tax services offered through centrist financial strategies are not affiliated with PCA. Information received from this podcast should not be viewed as individual investment advice. Product discussions and illustrations are hypothetical in nature and will vary based on many factors, including, but not limited to age, health product insurance carrier and product design. You should consult the insurance carrier website and policy for detailed information, for information pertaining to the registration status of PCA, please contact the firm or refer to the Investment Advisor public disclosure website, www.advisorinfo.sec.gov

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