12 Retirement Plans EXPOSED! | How to Use Family & Relationships to LEGALLY Lower Your Taxes

0:00This is an iHeart Podcast. Guaranteed Human Earners, what's up? Look, building wealth isn't just about making money. It's about knowing where your money is working for you. That's why we partnered with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower personal dashboard or visit Empower.com.

0:37Not an Empower client paid or sponsored.

1:00and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more. They don't realize smart people use smartphones, huh? Send through BS they thought was gonna slide. Download TextNow because it cuts out clownery. You can literally activate it from your couch. nationwide 5g with the same towers the other companies use pay what you want or not at all you're in control show these ridiculous carriers we ain't paying for stupid because we're way too smart to pay dumb free app-based talk and text via the text now app requires wi-fi or data connection data plan sold separately 5g where available when traveling for events or festivals throughout the country every dollar matters we compare flights prices hotel rates and restaurant route options so why wouldn't we compare rides personally i always check lift before booking a ride prices can change throughout the day depending on traffic weather and what's happening in the city if you're headed to a concert out to dinner or catching up with your friends on a friday night taking a few seconds to check lift could leave you with more money to enjoy the experience save money check lift somebody had asked um some questions about retirement planning so it's end of the year So I think it might be a good time to kind of go over that.

2:27Yeah, maybe we can go over the 12 different type of retirement plans for individuals and business owners quickly. So 401k plan is something that everybody probably is familiar with. That is for for-profit businesses. You can actually contribute up to$23 ,000 a year if you are an employee, an additional$7 ,500 if you are over 50. So that's$30 ,500. So benefit with the 401k, you put money in, it lowers your taxable income, save money on taxes. You take it out when you're 59 and a half without avoiding a penalty. If you work in a school or a hospital, you might have what's called a 403b plan. Same type, same type deal.

3:13Same rules apply, but that is for the nonprofit world. But it still allows you to actually put money in. And then with the 401k plans and the 403b sometimes, well, they give you a Roth option. We'll talk about that later. But 457 plan is for government employees. So they're all in a force. I don't know why the IRS coded it like that. But the 401k for for-profit, 403b for nonprofit, 457 for government entities. And then the IRA is for individual people that want to put money away. If you have a business or if you don't have a 401k, you can open up an IRA. Anybody can open up an IRA. You can do it yourself.

3:53You can work with a financial advisor. You can put up to$7 ,000 in that, an additional$1 ,000 to bring it to$8 ,000 if you're over 50. And then you have a Roth IRA option also, which the Roth, you don't pay taxes when you take the money out, but you don't get a tax deduction when you put the money in. Now, for business owners, this is where it gets a little bit more complicated. Simple IRA allows you to put$16 ,000 in and an additional$3 ,500 if you're over 50. But the employer must match an employee contribution dollar for dollar up to 3%. So as a business owner, your number one thing as a business owner is how to save money.

4:40right and one of the best ways to save money is to implement a retirement plan and you kind of kill two birds with one stone because you're lowering your tax liability but you're also putting yourself in a position to actually have more money down the line right so it's like you can just buy a computer and that's a tax deduction but you're not you're not really getting that money back right yeah it's something that is beneficial for you but when you put money into a retirement plan that's like you're saving money as far as it's lowering it and that's how when they say you're saving money that's what that means right is lowering your tax liability but you're also going to be getting that money back because it's money that's invested so it's not like you just bought something you actually you're investing the money as well right solo 401k is like a 401k but it's for an entrepreneur so it's just one person right and then you have a pension plan defined benefit that's a little bit more complicated mike you can split the screen um and that allows you you can actually put up to 270 000 in the pension plan um so that's obviously a lot more than a regular retirement account right and that's one of the benefits like you always say the tax code was not made for employees it was made for entrepreneurs and investors, right?

6:06So you see, okay, now as an employee, the most you could put in is 23 ,000 with the 401k. But if you're a business owner, you can put, depending on how your business is set up, you could put up$270 ,000 away. That what, 10 times? That's like 10 times difference. Profit sharing plan. You could put up to$66 ,000 into that. Cash balance plan. That's a little bit more complicated. There's not really a set amount that depends on how much money your business is actually bringing in. Then you have the thrift savings plan, which a lot of teachers have that also better known as a TSP. And that's kind of like the 401k where you could put up to$23 ,000 a year as well.

6:49So please consult with a tax advisor, CPA, to know your options. But a lot of times you're leaving money on the table, especially if you're a business owner, because you're not, you might not even be aware that you can do a pension plan, right? And you think that, okay, the most I can put in is to a 401k, but you can actually, you can do a 401k and you can do a pension plan. So you might be putting away$23 ,000 and you think, okay, that's great, but you still might be paying$300 ,000 in taxes. Well, if you put away another$100 ,000 into a retirement plan, Now that might cut your tax liability by 80 ,000 dollars.

7:29That's, that makes a real difference. And for the regular employee, you might be funding your 401k at minimal levels, right? This is a way to actually, you know, put more money into it. So, um, vitally important when you talk about investing, cause we talk about retail investing on the brokerage side, most of the time, but there are other ways to invest and, um, you can invest that money. And most of the time it's different funds. Sometimes they let you invest in individual stocks, but most of the time it's like different funds, index funds, ETFs, stuff like that. But it's important because like I said, that makes a real difference as far as paying$150 ,000 in taxes, as opposed to paying $50 ,000 in taxes, right?

8:13That$100 ,000, not only are you saving$100 ,000, but the opportunity cost, that$100 ,000 could potentially grow into a million. So you actually lost a million dollars by not taking advantage of something that is here, is designed for you. But like I said, that's kind of complicated. You got like 12 different options, right? So if you're not educated and your CPA is not educated, then you might not even be fully taking advantage of ways to max out your retirement to save money on your taxes. That's a great list of value from the highest level and from a celebrity. Quasi Talk to celebrities 12 ways Open up Sounds like you do this for a living That was a great list And the way inflation is going I mean I know that the axiom used to be hey build a business That's the best way to wealth but it's like you have to Invest the money inside of the business to help grow Because the way Inflation is going you don't know What the market is going to be like in 15 years Imagine being an entrepreneur in 2008, 2009, 2010 and seeing these valuations and home prices go up and commercial buildings go up.

9:26If you're not having that money work for you, Lord forbid if the business goes under, at least you'll still be making some money from the returns you should get out of one of these plans. That's a fact. Fact. I mean, obviously I'm being facetious. You obviously did this for a living. I wonder now, as you were speaking, based on technology, based on the way the landscape is now, What are the biggest differences you see in financial planning, financial advising from the day you started to present day? I'm not in this space anymore, so I'm not really sure as far as like the day to day. But I know technology has definitely changed everything as far as, you know, when I came in, it was paperwork, you know, like massive amounts of paper.

10:13And now a lot of that has been changed and everything is online. even how they keep your records is online and that's one of the things where i like the blockchain like that's how i understood blockchain early and i understood like how it was going everybody kept talking about blockchain as far as cryptocurrency but blockchain what is going through to the once again the healthcare industry is is going to be phenomenal because it's like you know when we used to order medical records for somebody that wanted life insurance so if you want the life insurance you have to fill the application but then we have to nine times out of ten we have to order your medical records, which we call the APS, attending physician statement.

10:48Now, this is us actually, the insurance company is reaching out to the hospital or the doctor saying, can you give us records? Right. And then they give them the records and then they have to review the records. I've seen it take up to eight months because the secretary is just incompetent. They don't let it get back. And this is a physical process of they have to fax or email paperwork. But in the doctor's office, they have thousands of paper. Like this is something I see with my own eyes. So I understand like, all right, once this is going to take a long time to get fully digitalized. But it's going to get digitalized at some point in time.

11:29So at one point, at some point in time, all of these medical records are going to be on the blockchain. and it's going to take a minute. It's going to say, okay, he had an EKG in February. I'm not, I'm going to call nobody. It's going to be all in the system, a database. The insurance company is going to have a system with all of the hospitals. They're going to put the code in and they're going to send it. And then they're going to send it back. Little stuff like that saves so much money, becomes more efficient. It's everything. So it all ties in. Um, so that's one of the things that I just I even knew back then like this is going to change everything once they really can get this done on a more efficient level as far as technology and of course robo advisors I don't think robo advisors has taken off the way that people have planned they're planned yeah um but who knows that might be something in the future as well as far as you know people fully relying on AI to be their financial advisor as opposed to a person I don't like I it's not there yet you still need a human touch but as they're getting better with artificial intelligence that might be something to look out for for sure is that one of those career paths where we look at it fast forward to the future when we talk about ai and generative ai are these some of those career paths that you could see being dented replaced right because the access to information is there even now like yeah a lot of people are getting access to information technology is going to streamline it as well.

13:04How much of in the future you think the human touch is going to be needed in that space? Quick one before you jump back in. You're listening for ways to help teams move faster, make sharper decisions and turn scattered context into work they can use. ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to roll out quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more.

13:43When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride. Prices can change throughout the day depending on traffic, weather and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. Earners, what's up? Look, building wealth isn't just about making money.

14:17It's about knowing where your money is working for you. That's why we partner with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower Personal Dashboard or visit Empower.com. Not an Empower client paid or sponsored. We talk a lot about ownership, and one of the most important assets you can own is your digital real estate.

14:55Too many entrepreneurs rely on social media platforms they don't control. Your website should be the center of your business. Framer helps you build a professional website without all the friction. It's more than a website builder. It's a complete website platform. Your entire team can collaborate in real time, make changes instantly, and publish updates in minutes instead of days. Framer's AI agents work alongside your team to create content, refine pages, manage your CMS, and optimize your SEO all in one place. And because everything stays editable on the same canvas, you maintain complete control over what goes live.

15:33That's why everyone from startups to Fortune 500 companies and brands like Perplexity and Miro trust Framer to power their websites. Learn how you can get more out of your site from Framer specialists or get started building for free at framer.com slash earn for 30 % off a Framer Pro annual plan. That's framer.com slash earn for 30 % off. Framer.com slash earn. Rules and restrictions may apply. I think it's still needed, even if you look at taxes, right? I mean, theoretically, you could probably send all your information to AI right now, and AI could do your taxes. Me personally, I would still want a human.

16:12Hell of a single. I still need to talk to somebody, explain things to them, tell them like, yo, this is no, this was this, this was that. So, but I do think that humans need to utilize AI. So if you're a CPA, if you're a financial advisor, you should be utilizing the technology as. It's what everybody keeps saying. Like a lot of the things is not necessarily going to totally replace somebody, but it will replace. Like if you have an assistant that might not be needed. but that's actually could be beneficial to you because you don't have to pay an assistant anymore so for thank the lord from a financial standpoint the health so like um i don't feel like it's i think it's especially for wealthy people i think the wealthy people if you got let's be honest you got a hundred million dollars you still you're not here to chat gpt5 i doubt the family office I'm sorry.

17:09Even for like a lawyer, right? Like, yeah, if you got a public defender, you might just want to take your chances with a robot at that point. But if you got 100 million, you still might. Now, the lawyers need to be working with AI to make sure that they get all of the data collected. But I still think that that personal interaction is needed. But like I said, you should definitely be working with somebody because, you know, I got audited before and that's because years ago I tried to do my own taxes. This was like probably 17 years ago. I did a turbo tax. So I learned the valuable lesson trying to save money.

17:46You end up, you know, going, you end up costing more money. So I never, I never used turbo tax ever again. Shout out to turbo. I had nothing against them, but, um, you, you, you, you want to use a professional. That's my whole thing in life. Like if I want to put a painting up, I'm not qualified to put a painting up. You might think you are until it's crooked. Then you drill the hole in the wall. Now you got to drill another hole in the wall. What's the worst that could happen? It's just a painting until you tear your drywall. You tear your whole wall down. That's a fact. Hit your plumbing. That's a fact.

18:23I'm a big proponent in paying a professional for services I have no problem with doing that but yeah shout out to everybody out there that's an entrepreneur make sure that you know you're making the most of your situation because the government is going to get their money but there are ways to limit there are ways to limit the amount of money that you're paying legally legally um keyword

18:59oh man no as far as the AI debate too, I think it's going to be a battle between the subpar and Supreme. Those who are Supreme are doing their job. There'll always be space for you. But if you're subpar, even since GBT came out, I've talked about this before. I've been able to replace at least eight people. Then I don't have to get complaints about they're retired or had too much Don Julio the night before. Great. Good old Chad, GBT and MidJourney are going to be right there. Don Julio. Thank you. up. Thank you. Don Julio. This is a message brought to you by education, vitally, vitally important.

19:37And you don't, you don't, you never, you're never going to learn that in school. So that's, you know, one of these things you got to learn on your own, right? They're not going to teach you retirement planning in school. So it's like, it's one thing to become a business owner. They're not going to teach you that, but it's another thing to, how do you maintain your wealth? How do you maintain it? How do you save it? How do you grow it? These are all things Quick one before you jump back in. You're listening for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use.

20:09ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more. When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride.

20:48Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. Ernest, what's up? Look, building wealth isn't just about making money. It's about knowing where your money is working for you. That's why we partner with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower Personal Dashboard gives you a complete view of your financial life in one place.

21:24Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower Personal Dashboard or visit Empower.com. Not an Empower client paid or sponsored. We talk a lot about ownership, and one of the most important assets you can own is your digital real estate. Too many entrepreneurs rely on social media platforms they don't control. Your website should be the center of your business. Framer helps you build a professional website without all the friction. It's more than a website builder.

22:00It's a complete website platform. Your entire team can collaborate in real time, make changes instantly, and publish updates in minutes instead of days. Framer's AI agents work alongside your team to create content, refine pages, manage your CMS, and optimize your SEO all in one place. And because everything stays editable on the same canvas, you maintain complete control over what goes live. That's why everyone from startups to Fortune 500 companies and brands like Perplexity and Miro trust Framer to power their websites. Learn how you can get more out of your site from Framer specialists or get started building for free at framer.com slash earn for 30 % off a Framer Pro annual plan.

22:43That's framer.com slash earn for 30 % off. Framer.com slash earn. Rules and restrictions may apply. Even Shaq, I heard he was saying like, you know, I picked up a gym from him. He was like, I'm not just going to pay my mom. I put on payroll. If I'm going to give my mom money anyway, why not just give her a job, right? And there's plenty of jobs that you can give your mom. um but so many people like we just see rappers and it's not there for the uneducated like you see you ever see these videos where rappers give their like their mom like fifty thousand dollars in cash yeah like ten thousand dollars in cash for their birthday or even a girl they do that they do i'd see like girls on instagram they get like they get like money like this amount of money in in like a birkin bag and it's like happy birthday babe i'm like all right if i'm gonna give you the money.

23:30If we talk in every day, why don't you be a consultant for me? Right. For real. Why don't you be on payroll? And now you'll help me because the money that I'm paying you is tax deductible, but I'll also help you as well because yeah, you do have to pay money on the taxes, but at least you can have some income that you can show when you need to buy a car, when you need to buy a home right now, as opposed to you just having no money to show at all. Now, at the very least if if we're in a relationship and i am going to give you money well why not let's let's do it that way as opposed to it looks good on instagram but that's the issue that 50 000 is not something i'm ever going to give back you just brought up a great point inside of and i know that's something we had conversations about in the past where it was like yeah as an entrepreneur i can write things off i can write things off but as you're doing that you're also bringing it down your income level, right?

24:24So if you wrote everything off and now you have$20 ,000 that you said that you've made this year, well, you try to go buy that house. Try to go buy something. You only made $20 ,000, right? And so you gotta be mindful of these decisions that you make. Fellas, if they ever hit you with their heart, let her go. But I heard them on Market Monday say you should put me on salary. Girl. Back in the bags who was a part of that social media job. Funny. okay knock off this gamble come on that goes back to the education process though like know what I'm saying like you got a vet we talk about women following men right well if you're not a leader you can't be followed so if you want to be followed and if you want to be a leader it's up to you to be an educator as well right like let me sit down I'm going to educate you on why signing this W9 is important And it's NDA.

25:24The W9 and NDA together? The W9 and NDA play. I'll sign both. Where are we at? Are we at dinner as we're saying this? Oh, big facts. I want to make sure in the future that even if I'm not here, you're good. The W9. I'm joking, but it's real. It's real shit. At what point, Maybe this is like a black but like at what point do we say like yo, you know, just want to talk about this paperwork It's not paperwork like you like he said like I Mean you it is secure as financial security. It is it is not you can put on payroll who wouldn't want to be put on payroll Facts half these dudes ain't even paying for the nails but a girl's nails That's trick like we're real that was Joe looking crazy on their fingers.

26:16Yeah, they just they just don't a bread right? Like you said, I'm putting$50 ,000 in a bag. Well, it's not tricking if you got it. And half the time, they're taking the money back after the camera go off. That's true, too. Yo, love, when you see that paper inside the card, don't ask no questions. Yeah, just sign this. Sign this, bring the food out. Bring the drinks. What's that, the check? No, no, no, no. You see that sticker that says sign here? The NDA play. Both. That's a seat on me, amor. Both. All right. All right. Both of them. That's some free game for y 'all. Y 'all do what y 'all want with it.

26:52Before you sign off, you tuned in for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use. ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for work. Download the ChatGPT desktop app or contact sales to learn more. Earners, what's up? Look, building wealth isn't just about making money.

27:30It's about knowing where your money is working for you. That's why we partner with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower personal dashboard or visit Empower.com. Not an Empower client paid or sponsored. When traveling for events or festivals throughout the country, every dollar matters.

28:08We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check lift before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same.

28:40The thrill of closing a deal, whether it's a gong or a confetti machine, Every team has its celebration rituals. Adio is designed for that moment. It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. This is an iHeart podcast. Guaranteed human.