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IRA Home Health Care

Finishing Well / Hans Scheil
The Cross Radio
August 29, 2020 8:30 am

IRA Home Health Care

Finishing Well / Hans Scheil

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August 29, 2020 8:30 am

Hans and Robby break down a specific insurance policy on today’s show. This policy allows you to rollover your IRA money into a policy that will not only provide your family a benefit at your death but also provide long term care benefits for you and your spouse. 


Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on for free!


You can contact Hans and Cardinal by emailing or calling 919-535-8261. Learn more at 

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Sit back and enjoy it, share it, most of all, thank you for listening and choosing The Truth Podcast Network. You're listening to the Truth Network and Welcome to finishing well brought to you by Cardinal certified financial planner long child, best-selling author and financial planner helping families finish well over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes.

Now let's get started with finishing well welcome the today show and we got a lot of meat on the bones on Tony's so I think we do a lot of you know Hans is been famous milk, like Paul, but he he switched over the Hartford now today show is where entitling it. IRA home healthcare like a continuation of last week show.

We talked about the need for home healthcare. But now we got a solution in the way of an IRA and is this thing was poured out to me this morning as I told Honda really excited about the show because as I began to see what he was talking about. I couldn't help but correlate this planet were going to describe three IRA home healthcare to the gospel like if you really put the gospel in a nutshell, I mean has it from a life insurance standpoint has it tricked a terrific in a death care. I mean death benefit. I mean the gospel has the ultimate death benefit get to go to heaven you get to be with Jesus, but also it is a really really really cool home healthcare benefit in that it eat you make this investment a Jesus essentially makes his investment in your life and oh my goodness, it changes every relationship that you have with your parents with your kids with your nieces, nephews, I mean and and and allows you to live and love, joy, peace, patience, kindness, goodness, while you're still on earth. So it's like that the ultimate home healthcare benefit to you.

Never thought of the gospel like that, but I was thinking it John a Hans as we were discussing Matt this morning. Can you Kenneth fill our listeners in a little bit on how we can take our IRA as a solution to what we talked about last week, and the need for home healthcare will yeah the first hill and taken where you and I have been the last hour or so getting ready for the show just how confusing and you know that this whole system is with whoever designed this product, which is an insurance policy wouldn't be talking about that pays for long-term care. It's a life insurance policy that pays at your death. If you don't use it first for long-term care and can be funded with a whole single premium from your IRA so you go through all of this and when you talk about taxes yet. We haven't talked about the long-term care benefits for the home healthcare benefits for the life insurance benefit I mean are the distributions to me got all these things going on, you know, and so we've spent the last hour in the weeds and just me explaining this policy and me explaining to Robbie that most people that I'm offering this to, or in talking about training them to become a salesperson for this. They never understand, and certainly not the first look so it just got a lot of moving parts, either smart people that designed this is this policy. In fact, agreement, it's the only insurance policy have ever seen that has a patent on now. The patents expired. This was back in the early 2000 that they did that in the patent is about using qualified money or IRA money to buy a life insurance, long-term care policy a patent is all about which you know we want to make sure and you help correct me on appointment in the Facebook long-term care equates to in our discussions earlier last week, home healthcare, I this is money that would be available for you to stay at home and get healthcare, not necessarily absolutely comedic whenever were talking about long-term care. What were working on doing is redefining here just relabeling his better word. The insurance product that were talking about in terms of its benefit, where we see it paying out the most, which is at home. So this used to be called nursing home insurance that it became long-term care insurance and we'd like to see it become home healthcare insurance that simply has a back door that if you have to go to the assisted living facility or the nursing home insurance can pay for that is going to pay well, but that's a point of last resort. So it wasn't until we named the shower we started naming the show. That intake is too long and I heard Robbie over there talking about you know the monies in an IRA and then the annuity and then the life insurance and in the long-term care benefit and then the death benefit and then the distributions and all of a sudden he's talking like a financial planner were talking about all these issues that are facing and I said wait a minute, we got a start with long-term care because this week. You know the subject of the show is IRAs so you'd think we'd start with the IRA, and that's where you started that we really want to start with talking about last week show we want to talk you need a plan in your retirement planning or your program is it's can it make some money available to you and your family when you need home healthcare. Okay that's that's where we want to start okay and we want to impress that upon you. If you want to call it sell that to you. That's what I'm doing. If there's any product or service that we offer right turn into a salesperson, fiduciary, while the salesperson but right it's it's over long-term care act.

I would like to see more people, and specifically my clients implement something even if it's small so that they got money. There available for long-term care. Now, how were talking about this product today, which is IRA home healthcare is. It's been my experience that people when they're doing retirement planning organelle let loose of their IRA funds quicker and easier then they are going to withdraw cash out of the bank or cash that's in investments very pay taxes on their gonna be more inclined to use that are IRA money, put some good like long-term care insurance so that's that's why were talking about this IRA home healthcare is.

This is were really talking about one way to pay for that. I think for some of you. You may find quite painless. It's really genius on the Scott tires how mothers I know and select as there is a lot of moving parts. As we talked about that is I think you hear the bottom line and got all my goodness. Not only is it you know, home healthcare if you need it. Melissa you never need it and and then the death benefit is there for your whole family so you know this is protection for you protection for your family that you know it.

It it really pays off. Regardless, at an and is a way to help you through know how to figure out what to do with your IRA and in and certainly this plan sure so rudely on an example here that I made using $100,000 of IRA money, but let's just talk about people that are in their 50s 60s 70s who have a hunk of IRA money and it sit near you haven't taken distributions yet, or maybe just started because you're in your early 70s and the monies just sit there and you really don't have a plan for distribution I find this quite more common than people that do have a plan for distribution and you pay taxes on that money. If you get $350,000 in your IRA or your combined IRA, 401(k), and then your spouse you put altogether. It's around 50 grand and you know all your focused on. Typically, if you're not retired yet is just the investment piece of and you just where it's gone up or down are different, but when you get retired yet ready, retire, your focus is going to shift and it's can shift to now I gotta start distributing that you live off for the rest of my life. Some you may say well you I got enough other money and other assets, and I got my Social Security. I'm really not in any debt IRA money will then if you just sitting there saying that then you do have a good distribution plan set by the IRS and the IRS is going to require you to take minimum distributions now at age 72, and after in size when I can get into that today was your ear and be required to take minimum distributions in their small enough that if that's all you ever take.

Then you know and you don't need the money but you taken it because you required to, you can end up passing away leaving this money to your kids still in IRA and you can hand them over attack bomber tax bill so what I wanted tell you is that it is smart to sit down when you doing financial planning and say okay I got X amount of money in my IRA. I need to get this out of the IRA and into something else where the taxes are Artie paid and I need to do that in smart ways. I don't pay a huge tax bill now, but I need to keep an eye to I might need to live off that money in the future. And then if I don't drive down and there's still a substantial balance. Then I give it to my kids and how my going to help them distribute so there's a lot of problems just sitting there in your IRA unaddressed. If all you can really say is I don't really need to live on is this, sitting there, so that's why were talking about today as I just found that if if I'm impressing upon client to buy long-term care insurance or to implement one of these solutions and we got a whole list on this is just one of them were talking about today. I find it easier to talk to them about distributing their IRA and then subsequently to use some of that money to just make a one time purchase by rolling it over of a long-term care policy and so in the example were used.

Today we took $100,000 because it makes the mass simple.

It's pretty simple to double it.

Take one half times.

Take half of it.

We hundred thousand dollar increments so so the purposes example we would be talking about rolling over $100,000 of your IRA money into another IRA with his insurance company and you don't pay taxes on it right away and have to pay some taxes and then we taken a 65-year-old husband and wife are both 65 and we've just illustrated this thing like what you can get for your hundred grand and has a singular work and you in the second part of the show were to break that down and explain this thing a little bit so I get this into a certified financial planner Hongqiao finishing well today show. Obviously, as always is brought you by Cardinal Guy Gardner and Hans's book the complete Cardinal guide to planning for and living in retirement and the accompanying workbook which are we have to do is email Hans when we come back we'll get into the details of what I did. I really think is genius. You know it's not quite the gospel is never quite the death benefit doesn't have quite a long-term health care measures in Jesus as their name in examining the Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security and Karen long-term care. Just go to Cardinal and contact to schedule a live recording of finishing well your church Christian or civic group. Contact time to Cardinal that's Cardinal welcome back to finishing well with certified financial planner Hongqiao today show is IRA home healthcare solutions actually which you know I'm I really do feel like confidence.

The gospel is the ultimate you know death benefit and home healthcare benefit, but other than that, this one is is undoubtedly genius and when we left our hero. We hundred thousand dollars and in the neat thing about this plan when you listed is for the husband and wife that this is a good lesson covering both of you, which is really cool for me and Tammy. We have you know we have something that covers both of us know when I look at her and she looks at me were like we got a cover email. It's really a great feeling it, we can actually do that out of one of yours IRA so we can cover two people right and has been the wife when it's up paid for out of the IRA. Just either the husband and the way so I don't want to say this is simple on the layout for because it isn't simple. Okay so if we just for a minute here we take $100,000 of your IRA money. So if you have 100 grand in this example is network that great for you but we can later reduce it. If you get more than hundred grand then were just talking about hundred thousand going into this and so what really do is work in a move that from the IRA that is in or from the 401(k) that it's rolling over into an IRA at the insurance company so there's no taxes due on direct rollover and then that IRA at the insurance company is an annuity that is gonna take in the hundred grand and its content, distribute that hundred grand or over 10 years or it's gonna pay a premium to the insurance company of $12,000 a year for 10 years so that hundred grand is turned into 120,000 of insurance premiums 12,000 a year for 10 years and those insurance premiums are paid into a life insurance policy and the life insurance policy is for hundred and $50,000 and it's on both people's on both angle you know along these lines, my immediate thought was, wow, what if what if in a both of your children up because the second person dies on his current payoff on to bring all your beneficiaries and and so out unite here you are and and you just bought this thing you need to stick all your IRA money and you put it into this annuity and then you died, both of you. Two weeks later.

It does have a big death benefit.

They allow about 800,000 get well actually the death benefit of life insurance policy is $150,000.

Pretty close to that for the whole life of the policy so so your hundred grand move from your IRA to a new IRA in the annuity is going to shoot off $12,000 a year for 10 years and this can shoot it off into the life insurance policy and that's gonna buy you $150,000 for the life insurance is covering both lives. It pays off with the second death is actually not as good as two separate policies because it's only about one time, and it's not can pay off the first death benefit site has knowledge more than important absolutely and Aeschylus well and is plus some. Because of this happened, you know, let's use a year and two weeks later as that sounds, and I know like I have a cute little bit away from the dramatic, but if it's a year later, in two weeks or whatever your and you both killed.

Then there's $150,000 paid out from the life insurance policy.

But there also get a payout. The remaining balance in the annuity in the IRA consisted of the ADA grand and their son so it can payout substantially more than the hundred grand, immensely summerlike time is $38,000 for the beneficiaries of this policy know so even while it's beginning to build up in her interest in whatever it pay for your or your spouse's long-term healthcare. It still has a tremendous dentist death benefit for dinner.

Beneficially, death and the death benefit by the 11th year to you pass the 10 years you've paid out the hundred $20,000 on your IRA moved it into the life insurance and is can be hundred 50,000.

So if you died, both of you died suddenly in the 11th year the policy your beneficiaries.

You can get 150 grand. And by the way that hundred 50 grand to your beneficiaries is currently tax-free.

So not only have you increased your hundred, 250.

You've made the whole thing tax-free now lower on taxes. You're gonna have to pay taxes, income taxes on this $12,000 a year moving over every year from the annuity to the life insurance so you can have some increased taxable income so it's actually in a cost you more than the hundred thousand dollars that you're transferring over because you even have to come up with that tax money on some of the funds tracking significant depending on your tax bracket. Yeah so so will need to know we never want somebody to go out and buy something or think recommending something on the air shortly not doing there were just showing an example, there's a lot of moving parts. If we get too far into the weeds. We get people confused so we got hundred grand was over, the insurance company hundred grand is depleted over 10 years to where it's going to be down to nothing.

At the 11th year but as is depleted. It's moved into a life insurance policy. This can have a cash value of over hundred thousand dollars by the 11th year and then it pays off of the second death in the second death. Whenever that happens is going to pay hundred $50,000 to your heirs. Now what I want to point out is your really not buying this for the life insurance your buy-in. This for the long term care benefits and that's were going to go back to the beginning. People don't buy this particular policy just because they want to get more second to die life insurance on themselves and we have other companies and other policies.

Besides those that are designed just for that. So this one is designed specifically for long-term care, and then it has.

And oh by the way if you die without using up all the long-term care benefits than this can be a payment to your beneficiaries because if you use that hundred and $50,000 death benefit for long-term care where you're living either one of you either one of these people were talking about that every time you use it. It depletes the hundred $50,000 and now what this thing does is it pays $3000 a month for long-term care and it will do that for 100 months of total care for both for both of you. Both spouses now that could be wanted 20 months and the other wanted 80 months nearly can be wanted 70 months and the other one 30 bit minutes can payout a total of 100 months of $3000 month and the first 50 months. Is there really given back to you early life insurance money in the form of long-term care benefit tax-free long-term and so you just there you go you you taken your hundred grand. You moved to an insurance company you got essentially $300,000 of long-term care benefits covering the both of you and that's all you really need to understand and if you don't use as long-term care benefits or you just use them a little bit.

There's going to be hundred $50,000 of death benefit or a little less than that. If you use them a little bit.

This can go your chances can be a big refund in their tax-free going your kids now is $3000 a month of long-term care enough now but you know what I sure would've liked to have it when my mom's long-term care policy ran out or I just I haven't sent us and a lot of people have 3000 a month because it's $100 a day. That's what we sold for years.

I haven't seen anybody distraught about that when they're checking into a facility or they're using it for home healthcare Mensa nice benefit but if you wanted more me. We could simply put hundred and $50,000 of your IRA money covering two people and we get 4500 a month for 100 months we could for $200,000 of your IRA money and we get 6000 now if you're 60 years old. We could either put in less money at both of your 60. We could either put in less money and then we would get the same benefit if you're 70 years old.

We have to put in more money or we could put in the same money just get less benefits of a me I just use the hundred thousand dollar example in the 65-year-old people as they fit right in the middle. This process times options. Lots of lots options, but the overall concept that hoping and praying actually that you see is that like oh my goodness, here's it's a wonderful way to distribute this IRA money that benefits myself, my family and and and and possibly even your church if they were the beneficiary of a life insurance policy. However, that were some instances a beautiful way to set up a plan to distribute this money, we don't have to use IRA money affect this company has this patented there really the only company that does, we would prefer actually to use my yard pay taxes on it makes the whole thing easier to explain, is one from most people I collect all that money and furthermore we donate if we use other kinds of money we don't have to put the whole hundred granite once week wheat we could set up the same deal for a thousand bucks a month for 10 years and you get the same thing over on the life insurance side so we got this from a lot of different companies. We don't even have to take a lump of money to buy long-term care insurance. You can just buy this with a monthly or an annual premium we got that from a whole bunch of companies so that the possibilities with this. There's just infinite options of how we could rework this thing to an and the beauty is as God will provide both of when the student is ready, the master will appear. So maybe you're feeling that way today and you can reach out to Cargill guide you grabbed onto Hans he would love to hear from you personally. I guarantee it. About any of the subjects he does go to Cargill you see Hans there is email and all that send out a question to him or order the book and out the complete Cargill guide to planning for and living in retirement. The website again is the it's cardinal with guide next to Cargill and and believe me I guess I must've been ready. Two years ago I started this incident to Hans and I can't tell you that the way that is help me feel it. You know, just like a set of dropping off my daughter at college and came in I looked at each other like who I'm glad we met on the list. We hope you enjoyed finishing well brought you by Cargill visit cardinal for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as constant best-selling book, the complete Cargill guide to planning for and living in retirement and the workbook once again for dozens of free resources shows what you get. Hans book go to cardinal if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again, that's cardinal cardinal