Program 12.19.09 Transcription

Please note that this is computer-generated transcript - may not be 100% accurate.

This is On the Money, with the Certified Financial risk profile, central Florida's oldest and largest group of certified financial planners, 401(k)'s, mutual funds, reverse mortgage, real estate, annuities, anything financial.  Your calls are welcome at 407-290-0058, toll free 1-800-329-5858.  Planning tomorrow today with the Certified Financial Group.  Now here's WDBO's Curt Keihle Judi Sandborn from the Certified Financial Group are in the studio live to help you out.  Here's the number: 407-290-0058.  I mentioned at the start of the program that today we could tell you how you could fully exploit your 401(k).  When I open up my 401(k) statement on line, I do it all online -- when I do that, I'm confronted with all of these other choices and I'm thinking, Joe, should I move to another fund?  What's -- see, that's when the Certified Financial Group comes into the picture, to help you fully exploit that 401(k).  Tell me about it, Joe.

Nothing but exploiters --

Really, and this is the challenge that I think, unfortunately, most people face with their 401(k), not working with an advisor.  What do you do?  Well, you talk to your spouse, you talk to your co-worker, you pick up Money Magazine, turn on CNBC, Wall street Journal, you read this, you read that and at the time, you're confused and don't know what to do.  What most people do is they look at what's doing good at the moment, put their money in there, only to be disappointed 12 months later and they do the constant thing of buying high and selling low, which is the absolute worse thing to do.  So what's the alternative, Judi?

Well, the alternative would be that we can help you with that.  If you choose to have us do that, we can be involved in your 401(k) and manage it for you while you're employed.

And the money stays with your employer.  You continue to have access to your account; we become advisors to you.  The minimum account size is $1000,000.  We do this for a modest fee, but what we do is we look at all the choices that you have available to you in your 401(k), we then design a portfolio fit for you based on your time horizon, your risk tolerance, and we monitor it, which is the most -- well, selecting the funds and then monitoring them.  It's a two-step process.  And the monitoring is as important as the original selection because things change over time.  Fund managers leave, expenses go up,  half your portfolio should be rebalanced periodically and you need to -- if you're not working with an advisor, you should do this because, ladies, and gentlemen, for the most part people's 401(k)'s in addition to Social Security is what they're going to have at retirement and if you're not getting the maximum out of that, you should seek an advisor to help you do it.

Would I be wrong to assume that the modest fee to manage a person's 401(k) is more an amply covered by the gains?

Theoretically it's supposed to be.  We can't guarantee gains, but what we can guarantee you is that you will have, in fact, the best performing funds available to you in your 401(k).  We cab guarantee you that.  We can guarantee you the funds that we're going to select for you are the best funds available in your plan and build the portfolio at the time.  And then monitor it, be sure that they'll continuously be the best funds available to you.

How do we sign up for something like that?

Very straightforward.  You can call Judi, me, or any of the other planners and Certified Financial Group by dialing 407-869-9800.  407-869-9800 or 1/800-execute.  And in fact, if you want some more information, you can call right now.  There's nobody at the office, but you can leave a message and we'll get back to you first thing Monday morning.

As a matter of fact, that's the same telephone number, folks, that you would call to set up a complimentary consultation with any one of the ten certified financial planning practitioners at the group; right, Joe?

That's the way you do it.  Or you can go to our website, financialgroup.com, and get more information there.

407-869-9800.  That's the telephone number for the Certified Financial Group.  869-9800.  Or 1-800-execute, as if you're executing a legal document or such.  1-800-execute.  And again, the website is www.financialgroup.com.  Phil, in Winter Garden, you're on WDBO.  Hiya, Phil.

Good morning.  I have a question about the Florida Prepaid.  I have two grandchildren and the first one's 3.5 years old and I did the four year plan for him and at the time it was $22,000, and now I have an eight-month-old and I just applied and the fee has gone up for the four-year plan with the local fee extra and all that jazz to $43,000 for the same program.  I wondered if you all feel it's still worthwhile doing with that great increase in fee.

Well, I'd just become aware that that has increased substantially.  But I think, Joe, we still recommend that you do the Florida Prepaid.  That is one of the best places to start, if you will, as far as planning for the children's education.  And down the road if you have perhaps further financial resources and you want to do something that has a little bit more flexibility to it, you can do a 529 plan.

Right.  My second part of the question is: You can't pay for it until, they say, until March or you don't have to pay for it until March.  Can I pay the whole 43,000 in one year without getting into a gift tax situation?

Yes.  Yes.  Because you really haven't gifted it to the child; it's still in your control.  You can cash the thing out and say forget it, sweetie, it's my money.  So yeah, you haven't lost control of it.  You can even change beneficiaries on it.

Okay.  Great.  That's good.  Thank you very much.

Okay, Phil.  Thanks for the call.

9:46.  It's 14 minutes until 10:00 here on WDBO.  Good to have you along with us on this Ask the Experts Saturday, and we have time to take your phone call if you want to talk to Judi Sanborn or Joe Bert, from the Certified Financial Group, now's your chance.  407-298-0058.

I want to tell the listeners of another service that we're offering our clients.  A lot of them are at or near Social Security decision-making time, and Judy has become the specialist in our office in looking at all the variables that are involved in making that decision.  Should you take the money at 62, should you wait until your full retirement age, what if my spouse is younger, my spouse is older.  All those things enter into the calculation.  Unfortunately, Social Security can't give you specific information.  That's the bad news.  The good news is today we have a sophisticated computer program that can analyze specifically to your situation and tell you what is in your best interest to do that, and we're starting to do that now ... in your interest to do that.  And we're starting to do that now for clients because we're seeing more and more of them having to make those decisions, should I take my Social Security now, should I wait until full retirement age, what if I retire, my spouse retires, he's three years older, I'm two years younger, we're 10 years apart, we have grandkids, don't need the money.  All these variables enter into it, and the decision, the different could be tens of thousands of dollars --

By waiting maybe two or three years.

Or making the wrong decision.

Or making the wrong decision, right.

So if you'd like more information on that, give Judi a call on Monday and she'd be glad to do this for you.  We charge a modest fee to do it, but I can guarantee you that the fee more than will offset the large advantages that you'll have by making the right choice.

9:48 on WDBO.  I'm going to take a break and then we're going to come back and take some more of your phone calls.  If you have anything financial question related on your mind, be it your 401(k), roll overs, IRAs, yadda-yadda.  Anything financial.  407-290-0058.  When we come back from the break, we've got some good news to share with you, some advances, some public advances that have come out around, what, in 2009, Judi?

Well, over the years.

Over the years, yes.

This is going to be fun.  Some things that we should be thankful for, actually; and that's coming up next here on WDBO.  Again, the number 407-298-0058.  We're planning tomorrow today with the Certified Financial Group.

It's an Ask the Experts Saturday morning on WDBO, 9:53, 7 minutes until 10 here.

You never know what you're going to get --



I haven't heard this song in 35 years maybe.

Snoopy and the Red Baron.

It was Snoopy and it was the closest we could get to a Christmas song.

That's it.  Boy, are we in bad shape here.  Remind me during the break to go over and get my Christmas music.  See, I haven't heard that in 35 years.  That sent bad memories down my spine there, you know?  407-290-0058.  We still have time to take your call if you want to join us here with the Certified Financial Group.  Don't forget, coming up in six minutes at the top of the hour, Bob Johnson with today's news, traffic and weather, and then it's the Florida Homes and Gardens guys.  Jim Hiddish