Episode Transcript
[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
Welcome to Reyna Retirement. Reyna Reyes has dedicated her career to helping people make super smarter financial decisions. Reyna Retirement is all about breaking down complex financial concepts into language you can actually understand.
Now here's the co founder of American Federal Benefits Consultants, Reyna Reyes.
[00:00:40] Speaker B: Word of the day is Nunya. If you know what Nunya means, then you already know. If you don't, let me tell you. Nunya is the preface for Nunya business. And what's kind of cool is if you're a big fan of Nunya business. But the beautiful thing and the person I'm talking to is somebody who actually owns their own business. Maybe you are self employed and your spouse is a federal employee and that's how you came in contact with me. You don't know this about me, but I am pretty strong in helping small businesses prep for things in the future. Having been one myself and remaining one myself also at the present got pretty good with helping people navigate some of this stuff. So you've heard of a 401K, you've heard of a SEP IRA, you've heard of a Roth IRA, you've heard of all this Alphabet soup. How does it apply to you? What can you do for yourself? Well, it depends on a few things. How many employees do you have? Are there some key employees, Some very special employees, Some people you would did you wish were not employees? No, I'm kidding. But again you have all of those things and so you want to be able to look at all the stuff 401ks there depends on how many employees you have. If it's just you, you can have this cool thing called a solo K, which is exactly what it sounds like. It's a 401k for a solo, not Han Solo, but you being solo, no one else. Or you and a spouse if it's two people. So remember, I don't just help the solo employee of the Fed or the Postal service or anyone that is, I can help anyone, it doesn't matter. But if you are a employee of yourself, meaning you're self employed and you're a 1099 contractor and you pay yourself a salary or you don't, it may be worth having a conversation to see what you may be missing. That is easy to do. We always want to start with the easy stuff, stuff that makes the most sense. Sometimes there's ways to offer something that cost you nothing. You've heard of a cafeteria plan where some organization is able to offer employees benefits and your only job is to deduct the cost of their premium out of their paycheck. Simple. You just make that the, the accounting person's job. Great, love it. But people now have been offered benefits that you've offered as a discounted rate because of the group. Right. So that's kind of cool. Another thing is the Roth ira. There is the ability still many people do this, a deduction out of the paycheck to contribute into a Roth. Right now there's maxes for, for contributions to an ira. But again, something's better than nothing. And if you're administering it, hey, they call that golden handcuffs, where your employees love you and wouldn't leave you because of the golden things you've offered them. So the golden happy handcuffs, they're, they're married to you in the best way. And other things we can consider are actual 401ks for your group, for your business, for your employees. Again, that's where you do the census and who's who and how old and who's key employees and things like that that allow them to do tax deferral and you can do a match and things like that. So these are things you can actually do in your employment. Right. And there's a lot of opportunity. Now if you're a federal employee and you're listening to this and you're thinking high block, low block, this doesn't apply to me. No, open up your ears because you don't know what you're going to do after retirement. One of the biggest, I would say a very high percentage of the people I speak with post retirement incorporate somehow to do maybe what their hobby is as a business, landscaping, maybe. But I don't think that's that much really. Most of my people are doing like crafts or baking or culinary things.
I say the landscaping, some handyman stuff a lot. A lot of the people I know are incredibly skillful. And then post retirement they know that if they make more than the earnings test, they're going to be shafted to some degree by the reduction in their supplement or Social Security. So they incorporate and then the people pay the corp. And then they're not, you know, necessarily making that money, but it's a win win for everybody because Uncle Sam's happy, he still gets the tax, they're happy, they're able to have the supplement. There's a lot of things that a small business can do for you, right? Sometimes it can be a tax benefit. It just depends on what you got going on and what type of business it is. But remember, it's always worth the conversation. I know that some people have left my meetings just head spinning with a few ideas, but we, we want to summarize with highest priority and ease of action because great ideas doth not make action happen. You've got to say, okay, of all these nice things that sound great, what am I actually gonna do? Jordan Peterson talks about like make clean, straightening up your room or something like that, right? Like he's a well known psych guy and so written books and all the things. But he talks about, hey, we want to start with goals that can be attainable that you can check off and look back and see how great you did. Same thing in this world, right? If I say to you, hey, why don't you reduce part B life insurance to save money? And then I talk to you eight months later and you're still paying 500 a pay period or something ridiculous.
It was a nice idea, but you didn't do anything. So hey, let's do one little step. Clean the room, make the bed, whatever it is, so you can look back and say, I did it. Step one taken. What's next? What's next?
So just a little step into the world of Raina and some of the other things she can do that's outside the realm of the federal government. And it's not just me. Many on my team have this great skill as well. Reach out, get scheduled and we'll look and see what you have going on, what your spouse has going on. And hey, maybe there's a way you can save money. Or we can make some all kinds of cool recommendations and probably help you with the actual implementation.
Reach out, let's get scheduled and we'll make it happen. Talk to you soon.
[00:06:45] Speaker A: Thanks for listening to Reyna. Retirement. With a strong commitment to ethical standards, Reyna works hard to find the right solution for each individual or family who reaches out for advice. To contact Reyna directly, call 850-450-6500. That's 850450 6500.
Or to reach the team at American Federal Benefits Consultants, call 1-800-872-8857. That's 1-800-872- 8857. You can also go online to AmericanFederal.org not affiliated with the United States government. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we may no representation or warranty as to the accuracy of any statement. The information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of their respective owners. American Federal Benefits Consultants is an independent organization, not a government agency or affiliated with the Federal government or any state government. The terms CSRs, FERs, FELI, and FEHB are all registered trademarks of the U.S. office of Personnel Management. American Federal Benefits Consultants, agents, consultants, or any independent contractors do not provide tax, legal, or investment advice and do not engage in the solicitation or sale of securities. Consult with your tax advisor or attorney regarding specific situations.
