Description

Let’s talk money.

There are four types of money: free (the best kind!), tax-free, taxable, and tax-deferred. It’s important to know these different types of money because you want to have tax diversification – especially when you near retirement. Some people realize too late that all their money is in tax-deferred accounts, then they must pay income tax on those accounts when they reach 70.5 years old. That’s what we call a Retirement Savings Tax Time Bomb.

In this episode of The Chris Berry Show, I’ll talk about the order of money, tax diversification, and trusts.

In this episode, you’ll learn...

• Chris’ positive focus for the week.
• The four categories of the order of money.
• What consists of “free money” and how to take advantage of it.
• The difference between a 401K and a Roth 401K.
• What money is tax-free and how to use it.
• How an index universal life insurance policy can double as an investment vehicle.
• What consists of “taxable money”.
• What consists as “tax-deferred money”.
• Tax diversification.
• Why tax diversification is important when nearing retirement.
• The maximum tax possible in tax-deferred and taxable accounts.
• How different asset classes are invested.
• How to create your own rulebook with trusts.
• How assets can be titled in a trust.
• How the types of money fit into a trust.
• How to stretch out required minimum distributions.
• Why you would roll a 401K into an IRA.

Q&A

In each episode, I take questions from listeners. If you have any questions that you want answered, feel free to email us at askchris@thechrisberryshow.com. Here are the questions I covered in this episode:

• Bob asked: “My attorney is not a Certified Elder Law Attorney. What is the difference and why does that matter when I’m helping my parents plan for the estate?”

Links & Resources

AlzElderCare.com

CJBerryGroup.com

TheChrisBerryShow.com

Michiganestateplanning.com

Register for one of our free estate & asset protection workshops

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LinkedIn: www.linkedin.com/in/christopherjberry