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Nonprofit Radio for Dec. 3, 2010: How To Cripple Your Career & Tax Policy

Big Nonprofit Ideas for the Other 95%

Compliance. Board relations. Fundraising. Technology. Volunteer management. Accounting. Finance. Marketing. Social media. Investments.

Every nonprofit faces these issues and big nonprofits have experts in each. Small and medium size nonprofits have Tony Martignetti Nonprofit Radio. Trusted experts throughout the country join Tony to take on the tough issues facing your organization.

Episode 18 of Tony Martignetti Nonprofit Radio for December 3, 2010

Tony’s Guests:

Robert Sharpe – Robert Sharpe, Jr. is president of The Sharpe Group. He has over 25 years of nonprofit fund development and consulting experience. He has helped hundreds of leading nonprofit organizations and institutions plan, develop, and implement successful major gift planning and endowment development efforts.

Topic: How To Cripple Your Career In 5 Easy Steps.  You’ll learn how Planned Giving fundraisers can shoot their careers in the foot. My interview with Robert from the National Conference on Philanthropic Planning continues with part 2.

Emily Lam & Perry Wasserman – Emily has worked in the Office of Tax Policy at the Treasury Department. Now she is with a prestigious D.C. law firm. Perry is a lobbyist who works exclusively with nonprofits.

Topic: “Tax Policy & The Future Of Philanthropic Planning.  These two also joined me at NCPP to talk about what a new Congress might hold for nonprofits. This was recorded before November’s election, but we were pretty certain the election would turn out as it did.

Here is the link to the podcast: 020: Career Killers and Legislative Update

When and where: Talking Alternative Radio, Friday, 1-2pm Eastern.

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Dahna welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent on your aptly named host tony martignetti last show, which was two weeks ago, and i hope you had a good thanksgiving last week we had bountiful bequests. My guest was susan dame green, and you’ll recall that we talked about why you should start a plan giving program with requests and how to do it. And when i was also joined by shevawn weber, we talked about thrift shops, ops, how your non-profit i should, how to get into the thrift shop business and whether it’s right for your non-profit this week, how to kill your career in five easy steps part to the second half of my interview with robert sharp from the national conference on philanthropic planning and the interview that i did at that same conference with emily lamb and perry wasserman, the subject tax policy and the future of philanthropic planning. Emily is a washington, d c attorney for non-profits, and she used to work with the treasury department in the internal revenue section, and perry wasserman is a lobbyist for non-profits and the three of us will be talking. About what’s likely to happen legislatively in washington and how that affects your organization’s bottom line. That’s this week on talking on tony martignetti non-profit radio. We’re going to take a break and after the break, how to kill your career in five easy steps. Stay with me. You’re listening to the talking alternative network. Are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics. Politically expressed buy-in, montgomery, taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com i really need to take better care of myself. If only i had someone to help me with my lifestyle. I feel like giving up. Is this you mind over matter, health and fitness can help. If you’re expecting an epiphany, chances are it’s not happening. Mind over matter, health and fitness could help you get back on track or start a new life and fitness. Join Joshua margolis, fitness expert at 2 one two eight six five nine two nine. Zero or visit w w w died. Mind over matter. Y si dot com. Cerini buy-in is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call a set to one, two, nine six four three five zero two for a free consultation. That’s lawrence h bloom at two one two nine six four three five zero two. We make people happy. Hyre talking alternative radio twenty four hours a day. Welcome back to tony martignetti non-profit radio. I’m away this week, but we’re having interviews that i did earlier at the national conference for not for philanthropic planning, and the first of those is going to start very shortly right now. And that is how to kill your career in five easy steps with robert sharpe. What do you say? The board members who say, well, all right, that’s, a fine example thie and antillean and her niece. But where we’re a business were incorporated is a nonprofit corporation where we’re trying to run a business here, and we need to know what we can expect when someone says you’re in my will. Okay, then i’ll give you five names and you call him up, and then you come back and teach me how to do it. Yeah, you make five of those calls and see what you encounter and then come back and tell me to do it. You can’t say that that’s, that’s altum elearning cripple your career that will you? That’s an execution. But no, the point is you, you, you that’s where oftentimes you can bring in, you know not to be in any way self serving for what we do or what you do, tony. But you can get outside people to come in sometimes and make those points right a cz part of a known as part of an overall, you know, it’s part of talking to a board or a management group about, quote, plan giving this is a point that can be made. And you know what most people who reasonable once you personalize it and they use an example like until they get it because they wouldn’t call their own parents up and ask him that question it’s personal stuff and most of the bequest of residual ery bequest anyway, and they have no idea. And by jargon jacket i yes, residual request that relates to what we’re talking about foreign, that you’ve got three, basically, three kinds of requests that people can leave you. They can leave you a request of a specific amount, which tend to be small because if people have to guess at what they can afford to leave you it’s going to be on the low end or they can leave you a percentage of the estate, or they can some combinations of these. Or they can leave you what’s called the residue that most most charitable bequests come from residual ery estates from very wealthy people who have enough money to take care of their family. Pay the tax on that money, and then have some leftover or people that have no children, and they and their close to their nieces and nephews, and but they don’t want they’ve been involved with certain charities all their lives, and it’s really part of their family. That’s why saying, when people put you in the will their elevated to the status of a family member, and that’s what you should and from their perspective you are you are there somebody spends somebody’s eighty years old. And they spent fifty, sixty years acquiring what they have for them to choose your organization to be one of the places that they trust with their lifetime accumulation of assets. That is a very important thing. And it’s not a business transaction, right? That’s especially, is a family it’s a personal transaction? A residual. Ery bequest is where they leave one hundred thousand dollars each to three nieces and nephews, and all the rest and residue split between four five it’s normally six point eight charities in the will it’s, not just one charity it’s, the six that make the cut and what you’re really doing in the bottom line here is looking for market share among a relatively small number of people, the needle’s in your haystack, and you don’t know who they are, so you have to shake the haystack would put a magnet there, pull them out and you don’t have to go burn the haystack down and then find the needles that are left and there can be a lot of money in those residual area states, though, is the largest one, just just because it’s called residue thats the big ones that they’re five to six x times the size of the average specific request is probably ten to twenty five thousand dollars jump in if you disagree, tony, i mean that, you know, they’re the ones you see there are specific amounts they rarely over fifty thousand dollars, whereas the residual really quote something well hyre like twenty. Eight to thirty years somewhere in there i mean, the comedians about ten, if you look in an organization that has, like, fifteen hundred states a year, get one hundred million dollars, a lot of those estates or small, specific bequests, half of them are western. Fifteen thousand dollars, you know, listening. But one hundred fifty to two hundred thousand is not unusual for a residual request. Our guest is robert sharp, and you’re listening to the chronicle of philanthropy and tony martignetti non-profit radio coverage of the national conference on philanthropic planning robert’s kind enough to join us before doing his seminar at the conference, which is how to cripple your career in five easy steps, and we’re not gonna be able to get to all five of the steps. But let’s, talk about something that you did allude to earlier, which is working with other fundraisers. You said that there’s annual giving and this major giving this corporate in foundation giving and and often we see these operating in self contained silos that don’t seem to have a phone line to the others. What about what about working with integrating with other other fundraisers in your organization? Well, this is this is an example of where, ironically, the smaller charity is in this environment, they have advantages with the fewer fewer people on staff when you’re dealing with wealthy donors, when you’re dealing with people that major gifts or for plan gives proximity, those people and being able to manage the relationships are very, very important hyre now the big shops that have three hundred, people in them and they’ve got annual funds and they’ve got real estate departments, and they’ve got all these various things. They have advantages from a technical standpoint, but that’s not that’s a disadvantage when it comes to managing the relationship because a donor at a big university with three hundred people on staff, someone sends a card and ask him for information dahna state it could take two or three weeks to figure out. You know what your what? Your vector victor. You know, who’s got the goods you should answer what’s your clearance clearance, clarence, you know what? Do you know who can, who has clearance to talk? This donor is the small shop with the director development. One person they can get on the subway or a bus or in. The car we’re on a plane and b to c that donor within twenty four hours and or even just pick up the phone and not and not think of the concern that they’ve stepped on a board members toes or there are some some person that those of somebody they’d never met, right? So, you know, they can do what i call them, mohammed, all these school of fund-raising they could float like a butterfly and sting like a bee, but let’s, get to the shops that have more complexity where you do have to integrate sometimes, if you’re dealing with, like a smaller organization with a lot of may, a lot of big donors of all ages, they then your problem is integrating with with with major gifts. But if you’re dealing with a large organization has a big direct mail or annual fund or whatever you’re talking about integrating with that function in a lot of places, you have to do both the main point. I’m going to make it my session is that i’m going to show this with a lot of charts and graphs and whatever is that? Well, let me let me buckslip go. Backto little prior think the average age one major national health organization that gets one hundred million dollars a year, or maurin, request the average age of their donors when they make the first gift to that organization is seventy six years old? I worked with universities with thirty forty million dollars worth of the question come and you go look at the annual fund history and in minutes, not the average age at the first gift to the annual fund will be in the fifty’s half of the median will be in the fifties. A lot of these people it’s a short cycle from first gift, like the one i mentioned is seventy six it’s average twelve years from first gift until death, so during that twelve years they start out is like direct male donors, and then they stick on the file and then maybe there’s a capital campaign going on. But you’ve got to keep the eye on the ball and make sure that as donors are reach in the end of their natural life cycle, you began to turn down the asks for current money. I’ve never seen an eighty five year old who was giving fifteen dollars upgrade her e-giving so quit senator stuff about thanks for fifteen bucks, can you send me more? She may have turned her thermostat down to be able to afford to send you fifteen dollars. You’re turning her off? Why not pick up the phone and call her? And same is this zone? So we realised now that you’ve made over fifty gifts or you’ve given over a thousand dollars and thank you so much, we know in times like these, people are making sacrifices, recognizing the cumulative militant and longevity and then turning down the volume for gifts that are more appropriate younger and when they go through that match your match by integrating we mean t make sure that the donor is seeing different faces of your fundraising efforts, depending on where they are in their life cycle and every donor as a certain age and every donors a certain wealth. So depending on where they are wealth wise and age wise, you want to integrate sometimes when they’re young right out of college it’s just annual funds, but if they’re in eighty five year old and dwindling in their current giving, most of it may be talking to them about ways they can leave a legacy who are the typical planned gift donors we’ve we’ve talked around this little fun playing let’s go right, well, ok, who’s, the typical trust donorsearch no, now let’s not be that technical who’s most likely to include the organization in their will. Now, do you want to raise money in the next funny in fifty years when i want the money to come in? I wanted this to be long term fund-raising so maybe fifty years, but thirty years, so you’re bored wants to spend money now to generate money in thirty years? Yes, they’re willing to do that. Okay, well, then, you’re probably not you’re not going to be influencing much of that because most of the people that leave money to charities, they’re maximum e-giving cycle was like fifteen to eighteen years, and they died age eighty seven on average. So most of the people that make the end up leaving the bequest ultimately our people outside hyre education and religion, they tend to be people that are required relatively late in life. There you’re longer term flag your files, frequency, longevity, age and gender. You lou, look. For people who’ve given frequently over a long period of time who are going to die in the next ten to fifteen to twenty years? And keep in mind that a sixty five year old couple has about a twenty eight year life expectancy. So really, you’re talking about people that are pretty much over the age of sixty five forty five year olds are going toe fifty years, maybe look at the life story s o i don’t paint if you find a forty five year old it’s got you in there, will you probably have a budding major gift prospect because somebody that has the dough native intent to put you in there, will it fifty years old? Think about what it takes to elevate a person or even think about doing that. So the people it’s not how much they’re giving you it’s how many times that when the attorney says you any charitable interests you want to fire off in their brain and the more likely the more times they’ve written you checks in the more times they’ve made the decision to give, the more likely it is you’re going to be one of the six. Point eight. Charities that are included in their will e-giving anything tooting, getting thinking. You’re listening to the talking alternate network. Get in. Duitz e-giving you could are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way look forward to serving you. Do you want to enhance your company’s web presence with an eye catching and unique website design? Would you like to incorporate professional video marketing mobile marketing into your organization’s marketing campaign? Monisha wanna one media offers a unique marketing experience that will set you apart from your competitors, magnify your brand exposure and enhance your current marketing effort. Their services include video production and editing, web design, graphic design photography, social media management and now introducing mobile marketing. Their motto is we do whatever it takes to make our clients happy. Contact them today. Admission one one media dot com hey, all you crazy listeners looking to boost your business, why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com welcome back to tony martignetti non-profit radio were listening to my interview with robert sharp on i was also joined by raymond flandez of the chronicle of philanthropy, and the subject was how to kill your career in five easy steps from the national conference on philanthropic planning in october of this year. Here’s the rest of that interview and also shouldn’t you be encouraging these gifts by will. With some regularity and frequency, so yes, that you will be top of mind when when they do go visit there, get that gets to that gets to step five to cripple your career is to ignore the economics. If you have limited resources, you need to spend them in ways that are going to produce the most return. Then when you start getting money in, then you can expand your efforts and do things that are a little longer term, our lord, our lower probability, the money that you, what you want to do is ok, let’s say you’ve got one hundred thousand donors are fifty thousand ten thousand and you’ve got enough resource is to handle twenty, five hundred. You can re sources that you could market request, for example, to your entire donorsearch base once a year, or you could go three times a year to the three thousand people that are over the age of to the to the small number who were in the right age and the longevity range. You’re better off to go four times a year, whether it’s, male or whatever you’re doing focusedbuyer money on frequency of contact with a smaller group of people rather than hitting your entire file once a year because different people are having different events in their lives and there’s this continuity is important. The more things they read about somebody who’s done this especially if you’re not a natural bequest recipient, a college or certain other types of organizations. Wilmore naturally come into someone’s mind than a very niche organization. Let’s say you’re an avid stamp collector, and when the attorney says, are you? Ah, do you have any charitable interest, your college or your religious affiliation or whatever may come more naturally top of mine to get for the american stamp collection foundation that raises money to to fund research and conferences and whatever on stamp collecting, there are people that will put that stamp collecting organization there will, but they’ve got to go out and communicate that idea more often and frequently so. When the attorney says it, you make it into the same slot because they made care more about stamp collecting, then they do their college in the final analysis, rehman’s continue to tie that in with the failure of marketing i think that’s that’s really this marketing marketing, right, miss? Marketing and failure to allocate your marketing resources correctly is another way to fail in this environment, there are people out there that are saying ignore people over the age of seventy because they’ve already made up their minds that and spend your time and effort on younger people. Frankly, that’s, because it’s easier to get a younger person to request a free will planning guide from any blast. And it is a seventy eight year old whose fingers don’t work well enough to work the keys on their computer. And so the fact the matter is they also based on surveys where they go out on the call a bunch of people and say, well, would you consider putting this charity in your will? Yes, i would that’s like when did you stop beating your wife? You know, so a forty five year old is more likely to say they would consider it yeah, way are starting to see more, more suggestions that people thirty five and forty should be should be encouraged include the organization there were wonderful, but you’re going to get money in seventy years and so and how likely is it that is going to? Change the aren’t the person’s philanthropic interests goingto charity priority’s gonna change up from thirty toa seventy eight. I have worked with clients, for example, a sponsorship organization where they have a lot of young donors in their twenties and thirties who give to this organization before they get married and before they have children, hundreds of thousands of them. But then they get married in their twenties and thirties. They have children. They start paying tuitions there, paying for houses in mortgages. All of sudden the discretionary income to spend thirty bucks a month for a sponsorship goes away and they disappear off the radar screen and maybe never come back. There’s, another group of people that it’s sixty to sixty three. When they’re empty nesters they start, they get acquired at that point, and then they start. They start giving at that point so it’s more the later acquired donors who are the ones that tend to actually do it. And that’s true with education, too, in many cases. Let’s see if we can maybe just approach one more. Well, you know what, before we do that you had a request marketing advice for organisations that have maybe ten or even fifty thousand suppose an organization just so now we are giving a deviating a little from career, but but we’re talking about marketing and organization that has maybe just a thousand donors and let’s say that they’re normally normally distributed across age, so a certain percentage of them are over sixty, sixty five, right? What can they do? Tow, promote request just a simple bequest. E-giving well, that organization is likely not tohave i’m a dedicated specialist argast certainly probono no, no way, unless it’s a thousand million dollar donors. Okay, now i’m not gonna happen, okay? So so what you’re trying to do there is educate those people on what i would do in that case is i would be incorporating messages about remember the organization in your will on stationery, on everywhere you can on every solicitation include something about remember the organisation that will or i have already included it would consider including don’t depending on good news is it doesn’t draco’s bad way that goes back to raymond’s question earlier what’s what’s the appropriate way to be asking depends what does depends certain certainly to some extent on on the age of those people. But the good news about having a thousand donors is it doesn’t cost very much money to be exposing the concept to everybody. So occasionally, you know, once or twice a year, you might want to send out something that’s ah, letter from somebody on your board that’s got you in the will and have include some information on the importance of keeping your plans up to date in case you’re terrible interest changed. So the that the good the good thing about being small is that you can if you can afford to go to everybody. But if you have five hundred thousand donors or five million or whatever the larger the organization is and the and the more precious the resources are, you have to do all kinds of things. Then you have to spend more time focusing in on the exact organization i have a question with what if a donor says no he’s, no. Here she has been contributing and giving gifts the organization but but then it’s, like i’m not able to. I don’t want teo are how what’s the next step. Where? Charity there. Well, i would say never say never because people’s someone who is someone who is seventy eight year old and has a sick spouse, i’m thinking of a particular situation where a person had asked about had sent information saying, i’m interested in maybe including this organization, my will, one of the people, but that this conference was telling me that she called this man about eighty years old and, you know, said, you entered you indicated interest in this, and i was just i was in orlando, and i thought i’d come by and say hello. He said, no, don’t bother, you know, i’ve just right now i can’t think about this. My wife is sick, i’m tired. I don’t feel like talking to anybody right now, okay? Let’s say, three years from now, he’s, eighty one years old, his wife dies a year from now and now, it’s, two years from now and he’s gone through his grieving mourning period and whatever and now he gets something else from you. He may then change his mind so events and people’s lives are changing all the time there and that’s. Another reason to be consistently focusing the message on the right group of people because things are changing their lives and things do happen, they do, they do lose a spouse, they do have children that has special needs or grandchildren are all sorts of things happen. So all you’re doing when you’re talking to a person at any point in time, their lives or movies, you’re just taking a snapshot of that moment. And at that moment, the picture may not include a bequest for you, but that can change over time as things happen in their in their lives, same token, somebody can say yes, you’re in my will and then take you out because something happens, they get an illness so they waste a lot of money on something or lose the money and they don’t have the resources that they have, and then they go their lawyer and the lawyer says, have your charitable interest change? Well, you know, since i lost all my money to main off, i just can’t i can’t do this anymore, so it works both ways. Some people that say no now will be yes later and some people that are telling you now on ly about seventy percent of request commitments come through in the end because things change and a lot of those commitments when they say you’re in the will remember their contention on one spouse pre decease in the other. And if the spouses die in the wrong order that you may not get the quote unquote wrong you may get you may not get a request, but they didn’t lie to you. Circumstances changed, but i’ll tell you this. The younger people are when they tell you, when people tell you that you’re in their will and they tell you when they’re under sixty years old, there’s only about a fifty fifty chance you’ll ever get to request. And i know that because i’ve studied thousands of the states where the people notified in advance and we look at the age of the people when they notified him. Then after they die, you look at the probability that they got the request and the older they are. When they tell you, the more likely they are to come through because there’s fewer life circumstances to change their minds that we have to leave it. There were no thank robert sharp very much for your advice. Think. Well, you’re welcome, tony and good luck, raymond. Thank you, too. This is the chronicle of philanthropy and tony martignetti non-profit radio coverage of the national conference on philanthropic planning. Coming from lake buena vista, florida, our guest has been robert sharpe, and our coverage will continue with future interviews later later, just just later today. Thank you very much for joining us, robert and agreement. That was my interview with robert sharpe. How to kill your career in five easy steps, and i was joined by raymond flandez of the chronicle of philanthropy after this break, tax policy and the future of philanthropic planning. Another not national conference on philanthropic planning interview. Stay with us. You’re listening to the talking alternative network. Are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. And i really need to take better care of myself. If only i had someone to help me with my lifestyle. I feel like giving up. Is this you mind over matter, health and fitness can help. If you’re expecting an epiphany, chances are it’s not happening. Mind over matter, health and fitness could help you get back on track or start a new life and fitness. Join Joshua margolis, fitness expert at 2 one two eight six five nine to nine xero. Or visit w w w dot mind over matter. N y c dot com do you want to enhance your company’s web presence with an eye catching and unique website design? Would you like to incorporate professional video marketing mobile marketing into your organization’s marketing campaign? Mission one on one media offers a unique marketing experience that will set you apart from your competitors, magnify your brand exposure and enhance your current marketing efforts. Their services include video production and editing, web design, graphic design photography, social media management and now introducing mobile marketing. Their motto is. We do whatever it takes to make our clients happy. Contact them today. Admission one one media dot com. Talking. Welcome back to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I have another interview for you. This is emily lamb and perry wasserman. Emily is a washington, d c attorney for non-profits perry is a lobbyist for non-profits, and we were talking about what’s likely to happen legislatively in washington and how that affects your bottom line from october of this year. Here’s that interview welcome to tony martignetti non-profit radio and the chronicle of philanthropy coverage of the national conference on philanthropic planning. We are outside orlando, florida, in lake buena vista, florida, for the national conference hosted by the bye ppp. The partnership for philanthropic planning and our guests today are emily lamb and perry wasserman there seminar is titled tax policy and the future of philanthropic planning, and i’m very glad that their practices bring them to our coverage of the conference, both of you, thanks very much for joining us. Thank you, thanks for having us. Emily lamb is a council at skadden arps slate meager in flom in the washington, d c office, and she advises non-profits on diverse tax issues, including tax controversy and tax accounting lots of tax. Excellent, and she is a frequent speaker and panelist, and her co presenter at the conference is perry wasserman and he’s, the managing director of five o one c three strategies, which is a washington, d c based lobbying firm. Working exclusively with non-profits perry is the chief lobbyist for ppp. The partnership for films, traffic planning again welcome, your your seminar is tax policy. See the future of philanthropic planning? What is happening in tax policy? The start just generally that is going to impact philanthropic planning. And let me just remind the audience we are recording before november third. November third is obviously a critical day, and we’re in late mid october right now. So let’s bear in mind that emily and perry are doing the best that they can tell us what the future looks like, but it could change after november third. So what’s happening generally apparent. Certainly. Well, you know, the better question tony might be what has not happened this past session? It’s congress, particularly the senate has been ah, overwhelmingly slow. Some might say negligent on tax issues so we haven’t seen ah lot happen. Obviously, congress is in recess right now. We’re about twenty days out into ah to the midterm elections, and when they come back, the next thing is they’ll come back on november fifteenth. We believe, for a lame duck session, they have a number of issues, they have to confront the three big tax issues as they may relate to non-profits would be certainly the estate tax, which we’ve been hearing a lot about this conference already, it would be the extension of the so called bush tax cuts, these two thousand one, two thousand three tax cuts for individuals, and it would also be this big package of extenders, which includes a host of provisions, including the ira charitable roll, over which a lot of non-profits have been have been watching. So, you know, in the in the short term congress is going to have to address those issues, they may choose to address him in the lame duck session, which starts in you know, we’ll go for about a week after the election and before thanksgiving, and then i’ll come back in december, perhaps they made aside just a punt those issues to the new congress in twenty eleven in january. S o we’re not really sure at this point, but that’s kind of the state of play, you know, as we’re talking, emily slow and negligent on taxes, this our congress, you agree? I probably shouldn’t speak to that, because during the last three years, i’ve actually been at the department of treasury in the office of tax policy. So i think my remarks here should be limited and not reflect that type of knowledge from my government service. I think it would certainly be fair to say that there were a number of very large matters on the congressional plate, obviously health care reform being one of them, which does have some significant impact for the nonprofit sector. Notably there was legislation enacted that impacts the responsibilities of charitable hospitals um, and obviously healthcare and the extremely large bill, there are a number of new non-profit type entities that are contemplated in that legislation, it’ll be interesting to see how that plays out. Certainly, i think there’s there’s the facts speak for themselves, you know, estate tax was not an issue that was taken up extenders, you know, were introduced but have not been enacted, mom and certainly no one can just see. From the political landscape that it has been difficult to get many different things accomplished. What about health care reform? Emily for non-profit healthcare organizations and this is, i think, tumultuous mai mai mai aptly stated, you can you could describe it differently, but for your non-profit clients that are hospitals, how did they get their arms around this enormous legislative change? Well, the changes certainly for hospitals are significant, as you mentioned, certainly my experience recently on the regulatory side, the irs and treasury are in the process of getting guidance out on those particular hospital provisioned i’m referring specifically to five o one r, which has a number of new requirements for hospitals to keep their exemption, and the government issued a notice requesting comments earlier this year. My understanding is that they have received numerous comments, they’re certainly working diligently to try to get guidance out there so folks will understand, you know how best to comply and when you refer to five o one are just give us the full name of the act that we’re talking about. Oh, i apologised five, five, one ours the new section of the internal revenue code. Okay, that was added in the health care isolation, okay, and can you can you give us one or two of the items that are significant there in five? Oh, one are that are going to impact healthcare non-profits sure there are requirements now that for the hospitals to keep their exempt status, they need to have in place at certain times of policies, for example, of financial, a written financial assistance policy and that has to be widely publicized they need to have adopted and in place on emergency medical care policy. There are limitations on the type of charges that the hospital’s may impose on underserved or indigent type patients. There are requirements regarding analysis of community benefit type activities and charity care. Mom, and there is, in fact, a new excise tax that is imposed for a failure to conduct that particular analysis on the community benefit activities carry your are our lobbyist on the panel. What do you foresee any of this changing for? For health care, for non-profits it was an enormous change in health care law. Is there any likelihood of this being revised it all? Emily said a lot of comments have been received or what? Do you think the future of this particular the five o ones fiveone are is? Well, certainly from a kind of macro level we have republicans in the senate and the house candidates running right now on a platform of repealing all are, you know, some of the health care reform bill? I don’t really think that pertains to the five oh one r provisioned but ensure i do want to mention want her vision in the health care bill, which was kind of like a sleeper provisions that will actually affect every single non-profit and that was a ah revenue raising provisions. You know, this bill, it was important and actually required by law that it be offset that it be so called revenue neutral to the government in one way that congress decided to raise revenue and offset the cost of the bill. Was teo tweaker requirement that any entity, including non-profits, will now have to file ah, form ten, ninety nine with the irs for any payment they make to a vendor for six hundred dollars, or more a year? That includes one time payments and cumulative payments over six hundred dollars. Six l thought it would be the provision was said teo have raised or will raise nineteen billion dollars toe offset the cost of of health care reform, so that kind of gives you an idea of the administrative, the nightmare that a lot of you know, every entity but you know, we’re talking about non-profits might face, so there certainly has been a move the last couple months teo to repeal that provision of health care reform. It doesn’t certainly doesn’t go to the subject substantive issues of health care, but there has been a a move teo to repeal that provision they haven’t been able to do it yet, in part because they have to find another nineteen billion dollars if they get rid of that provision. So it’s something that the partnership for filling topic planning has certainly been watching because when those new rules go into effect, which it’s set for twenty twelve, if nothing changes it’s going to be a huge shift for aa lot of non-profits particularly the small and medium sized non-profits who may be a little less sophisticated on some of these issues, tio start to comply with so that’s one issue of the health care bill i think that’s going directly impact non-profits and depending on what happens with the election, you know, we’ll see if it if he gets repealed or not. Yeah, and you allude to something very important for our audience. I mean, the audience for the show. It is small and midsize non-profits. And just how do they get their mind around something this this enormous what’s the timeframe of the sort of the comment period and then the and then the reformulation period. If if there is that reformulation how’s that process where for this provision for this provision ableto make comments and just generally what’s the the time frame? Well, it would be it would have to be a legislative fix. I mean, they would have to be legislation that that that changes the law. Since the president, you know, signed the health care reform bill into law, there has been ah, a lot of movement in the senate in particular, through amendments trying teo drastically raise the six hundred dollar limit. So, i mean, at this point, it’s still in the legislative spirit, hasn’t gone over to the regulatory side of things. So i mean, all i could really say is you know, certainly we’ll have information on the ppp website. I know some other kind of national umbrella charities are following this, but, you know, i would encourage members to reach out tio they’re members of their members of congress are your listeners rather to reach out to their members of congress and let them know that they find this provision to be to be troubling? Because i think there’s definitely a a movement on capitol hill, a bipartisan movement to repeal this provision, but the problem is that i alluded to earlier in order to do that in order to comply with other laws that are on the books. Congress has to offset this change, so they’d have to come up with nineteen billion dollars somewhere and ah, and that’s kind of the name of the game in washington on dh, so i think that’s going to be the potential roadblocks. My guests are emily lamb and harry wasserman, you’re listening to tony martignetti non-profit radio and the chronicle of philanthropy coverage of the national conference on philanthropic planning. Emily and perry’s seminar at the conference is tax policy and the future of philanthropic planning emily can we switch to the estate tax obviously critical. Nobody really knows what’s happening. We just know that this year two thousand ten there is no estate tax. Enormous repercussions, i think for fund-raising non-profits what? What’s your advice going, toby or what? You’re not advice. What do your word’s going to be around this for the for your seminar audience wow, that that’s a tough one. Obviously think many of us who work in this space and who watch it are just continue to be surprised by where things stand today. And, you know, certainly for the first half of the year, i was still inside at the department of treasury, where my colleague cathy hughes has responsibility for st gift tax matters and she’s, my ex colleague now, obviously, but certainly want to put a pitch out there. Kathy is fantastic and really a wonderful resource to folks who may be interested in this area or have particular concerns. Obviously, from the seat that i was in, as perry alluded to earlier, you know, this has not reached the regulatory side yet. It za legislative matter-ness needs to enact the law that will be on the books or certainly if if nothing happens, the way it works now would be, we’d go back to the two thousand one status. Could you remind us of what that is essentially fifty five percent rates of the death tax? And i think one million dollar exclusion amounts and those air significantly, the tax rate is higher, the exclusion amount is significantly lower than it was in two thousand nine because extra, the legislation that enacted this kind of ten year look forward system had had a system of of great changes and exclusion amounts. I’m just stopping once, emily, on my show, we have george in jail, and i’m warning you, i’m the warden know you know you don’t contribute that would only only sent your fine no door locking it. Sometimes i have keys, i don’t wear remote, so i don’t have my keys. But just for our audio, what is what? Remind us what avectra was boy, i’m not even sure i know the what the two thousand one wall, this tent this ten year look forward that that emily was talking about. It was the legislation, and i have to say, and and we were talking a little bit. About this last night, i mean, in two thousand won when congress was debating this legislation and coming up with this compromise that it would go away in two thousand nine. But she back-up in two thousand and ten labbate nobody or i’m sorry go away in two thousand ten, and she back-up in in two thousand eleven. Nobody thought we’d be in this position where we’d be in october on congress, you know, would be campaigning right now, possibly coming back for a lame duck and nobody knows what’s gonna happen with the state tax. So it’s a precarious situation to be in. I don’t know how this is all going toe going to shake out the house has ah passed last year at the end of the year, i believe they passed essentially an extension of two thousand nine levels. Senator baucus who’s, chairman of the senate finance committee, has ah supported that in the senate. But there’s ah, a coalition of senators of both parties who want a ah ah, you know ah, a different version of the tax so on what the house did is unacceptable to them. So it’s kind of this game of political chicken, you know, unfortunately, a lot of people are caught up in the middle of it, and quite frankly, i don’t know how it’s going it’s going to shake out? We’ve heard some reports congressional staff certainly indicate that chairman baucus, when they come back for lame duck, has a package ready to go that deals primarily with the these two thousand won in two thousand three bush tax cuts, and certainly many expect that a state tax will be dropped in there, but but it’s tough, you have to count them numbers in the senate and it’s very likely that senator baucus will not have sixty votes, which is the magic number in the senate. Teo to move the legislation forward. So unfortunate for this one, i think we’re going to have to wait and see how everything shakes out. I’m with emily lamb and perry wasserman at the chronicle of philanthropy and tony martignetti non-profit radio coverage of the national conference on philanthropic planning in lake buena vista, florida. I’d like to talk about senator grassley on the senate finance committee. Very activist around non-profit issues which perry do you wantto? What are you going to start? Okay. Okay. And then, well, then we will turn family. Okay, well, yeah, i would just agree with your assessment. Ah, that now ranking member grassley has been very active ill non-profit issues, probably more so than any any chairman or ranking member of senate finance that we’ve ever seen. Ah, and i think the sector has i think it’s actually transformed the sector, perhaps in ways he didn’t envision a lot of what he was talking about was not legislated the, you know, regulatory actors didn’t end up dealing with it, but the sector itself, i think, has really stepped up. Oh, and dealt with a lot of what he was talking about. And ah, i would say, is perhaps it’s proof of that? And since the two thousand six pension protection act, which i talked about earlier, that had a lot of these reforms in it, i think it’s kind of income quiet on the reform friend, i don’t think i mean, other than health care, i don’t know if we’ve seen a whole lot of ah ah, hold out of reform. So i think that’s how that’s that’s kind of working i do want to note on again. We’ll have to see how everything shakes out after the election, but from all indications that i’m aware senator grassley will be stepping off the finance committee. There’s a very complicated system in place in the senate for committee membership in committee leadership positions, there’s rules on each side about which committees people can serve on in the time limit. So it looks like, ah, senator grassley will be going in a ranking member, chairman capacity to the judiciary committee. Senator hatch will take his place, so i think he’ll still be involved on the issues, but he’s certainly not gonna have that kind of perch that he that he once had. Emily, please, absolutely. I think i absolutely agree, perry, that we’ve seen a lot of activity from senator grassley. He’s had a number of staffers who have been very, very activist and interested in these issues, and i would agree that certainly there were a number of significant reforms enacted not just in the pension protection act in two thousand six, but in a piece of legislation in two thousand five, which imposed a new code, section forty nine sixty five, which are basically tax shelter penalties on exempt organizations that engage in tax shelter transactions on what we had seen through the early two thousand’s was what people refer to as the tech shelter wars, mostly on the taxable for-profit side. But, you know, iris went out there and there were a lot of tax payers engaged in abusive tax shelter transactions, and there was a great deal of activity on that front, i think ultimately it’s pretty clear that the government won those wars, but i think you also saw a little bit of a trend where sametz empt organizations were engaging in that type of activity. So one of those, maybe the abuses that people are most familiar with is the the donation of automobiles, bond, the deduction around those is that is that one of the things you’re referring to that is, i think, definitely a charitable abuse that is not a listed or reportable tech shelter transaction. Thanks. Pension protection might have dealt with the automobile. Yes, i know, but they’re about tax shelter. Yes, which is ah, sort of a very specific, you know, kind of structure transactions that would take advantage of the exempt organization or exempt entities exempt status to help evade taxes. Essentially, you saw that in, oh five, and then clearly the pension protection act in two thousand six, it had a number of reforms. In addition to the incentives, i think is perry really referred to really change the landscape for certain types of charitable giving vehicles, especially supporting organizations and donor advised funds. I think on the regulatory side, quite frankly, iris and treasury are still dealing with that. They’re still in the process of working through regulatory guidance to get that legislative package enacted. And where is that guidance, emily? When will it be ready? One can never predict, but but i know that the folks some of that guidance i worked on while i was in the government, and i know folks are continuing to work very hard on that. Obviously, with healthcare coming down the pike, that’s another thing that really divert a ton of iris resource is because a lot there pieces of healthcare that were effective immediately, including the provisions related to the hospitals. You know, a lot of it is deferred till twenty twelve, but it’s kind of a whole new infrastructure, both for the world outside land for the government to build in order to make that system run. But the last thing i would just notice, i do think that the interest by senator grassley in these areas, even where it did not lead to actual legislation, has kind of transformed the sector and been helpful. The thing i would point tio would be the college and university conversation where senator grassley, i think, was very vocal about why are these universities not spending more out of their endowments? You know, looking at some of the tuition rates and all that he had some round table meetings where a number of very prominent folks came to the table. There was a fairly uniform view expressed at the round table and about the conversation that, you know, one size doesn’t fit. All a mandatory distribution would not be helpful. I mean, we see ultimately, at least to date that that has not being part of any type of introduced legislation. But during that conversation, i think you saw some very large institutions, you know, voluntarily announced that they were going to change some of their policies in terms of endowment spending. Save you no tuition scholarships in that space. And i think that’s clearly got to be helpful, and since grassley has been such a mover in these areas, what do we expect? Can we predict what it looked like when senator hatch takes grassley’s place? Emily, can you can you comment on the replacement? A better insight? I would say obviously, senator baucus has also expressed interest, you know, he’s been with grassley throughout this process, i know he in particular is interested in rural type philanthropy, a zit impacts, you know, his home state, obviously and caucuses from which the montana thank you, of course, in terms of the of the hatch, you know, move over. I don’t know if you have thoughts, parent. Well, i i think you’re exactly right, emily. Senate finances is a unique committee on, particularly with senators baucus and grassley, they worked very close together, they usually least publicly we’re on the same page. So i think regardless of what happens with the election in which party takes control of the senate, i think we’re going to see senator baucus certainly continue with his interest in the sector on dh, maybe even pick up some of senator grassley’s interest it’s also important. To know kind of in the day to day workings of washington. Andi, you may have made this point earlier, emily, that a lot of the staffers may end up sticking around on dh they carry a lot of the load, so certainly they work at the pleasure of the chairman and the ranking member on day work under their direction, but geever even an expertise that we now have on senate finance dahna with the staffers and tax exempt issues, i think we might see them continue toe work on, you know, in the space, so to speak, in terms of senator hatch, i mean he’s certainly known as as a partisan, perhaps a little bit more so than grassley, we know that he is concerned, leased in the last few weeks, we know that he’s concerned with the political issues, particularly how they feel how they relate to see fours and see fives and see sixes that may be an issue that he actually disagrees with senator baucus on, but i don’t i don’t think he’ll deal with those issues to the exclusion of other non-profit issues, but i think we’re going to continue, you know? I don’t want to leave your listeners with this feeling that because senator grassley’s moving over to judiciary, suddenly the tax writing committees may not care about tax exempt organizations? I don’t, i don’t think that’s true, but certainly he had a unique approach to oversight hey used his perch in senate finance to conduct ah, very aggressive oversight of the sector. Ah, and i’m not sure if we’ll see that continue, but they’re still going to know we’re out there and you know what we’re up to, all right? We’re going to leave it there. My guests have been emily lamb and perry wasserman. Emily is counsel for skadden, arps, slate meager in flum in the washington, d c office and perry is managing director of five o one c three strategies washington d c based lobbyist firm they’re seminar at the conference is tax policy and the future of philanthropic planning. Your listening to tony martignetti non-profit radio and the chronicle of philanthropy coverage of the national conference on philanthropic planning. I want to thank both of you for taking time out to join us. You’re you’re terrific team together. Thank you, thank you, thank you very much. You’ve been drinking, ending the getting dink, dink, dink, dink. You’re listening to the talking alternate network, waiting to get you thinking. Cubine are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics, politically expressed hi and montgomery taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com talking alternative radio twenty four hours a day. This is tony martignetti, aptly named host of tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent. Technology fund-raising compliance, social media, small and medium non-profits have needs in all these areas. My guests are expert in all these areas and mohr. Tony martignetti non-profit radio friday’s one to two eastern on talking alternative broadcasting, you’re listening to talking on their network at www dot talking alternative dot com, now broadcasting twenty four hours a day. That’s all the time we have today for tony martignetti non-profit radio next week, friday, december tenth, join me at one pm when we’ll have maur interviews from the national conference on philanthropic planning. I am in bangladesh, sri lanka and thailand right now, returning in a couple of weeks hope you’ll join me next week for the interviews that continue from that conference. 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Nonprofit Radio for August 20, 2010: Retirement Planning for Small Nonprofit Employees

Big Nonprofit Ideas for the Other 95%

You can subscribe on iTunes and listen anytime, anyplace on the device of your choice.

Tony’s Guest:

Mary-Jo Knight, Senior Financial Consultant, AXA Advisors talks about retirement planning for small nonprofit employees.

With or without an employer-sponsored retirement plan, Mary-Jo will take your questions and help you chart your retirement course.

Here is a link to the podcast: 006: Your Retirement Plan

This Friday from 1-2pm this week and every week!


Top Trends. Sound Advice. Lively Conversation.

You’re on the air and on target as I delve into the big issues facing your nonprofit—and your career.

If you have big dreams but an average budget, tune in to Tony Martignetti Nonprofit Radio.

I interview the best in the business on every topic from board relations, fundraising, social media and compliance, to technology, accounting, volunteer management, finance, marketing and beyond. Always with you in mind.

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Durney arika durney hello and welcome to tony martignetti non-profit radio on your aptly named host tony martignetti and we’re talking about big non-profit ideas for the other ninety five percent. A pleasure to follow larry broom and bloom and the divorce our if you were listening. There’s big news in new york state about divorce because no fault divorce is now legal, and if you missed larry’s show right before this one, you can always listen to the archive at talking alternative dot com on talking alternative broadcasting. My guest today is going to be mary-jo knight and she’s, a senior financial consultant with access, she’ll be joining me after our first break have a couple of things want teo, proceed with our name, the number contest i had asked you to name the number the calling number, which is eight seven seven for nato forty one twenty and that went bust because there are too many zeros and ones the ones and zeros don’t have letters corresponding to them on the keypad, and that flow mixed everyone and i didn’t realize that when i announced the contest, it was spur of the moment, and i hadn’t looked at the technology or a keypad so we don’t have a winner for the name the number contest. We’ll have another contest, i’ll think of something, and i’ll give away either a free copy of my book to your favorite charity or a complimentary hour of planned e-giving consulting, so we’ll have another contest and that’ll be on the facebook page. Which brings us to the facebook page. I have a facebook page for the show it’s now facebook dot com slash tony martignetti non-profit radio, but you don’t even have to go there to find it. You can find it on the page you’re listening from right now you’re looking at the player where on the at the screen, if you just scroll down a little bit, you’ll see the facebook window you can click on it. Don’t click now because you might cut off the show. We don’t want that, but if you know that your browser will open a new window, then go ahead and click it or click after the show. I would never advocate clicking during commercials that’s not a good idea click there and join like us like us on our facebook page. That’s the way to get to the facebook page. Right below the player that you’re looking at on your screen. You don’t even have to know how to spell my last name. And as i said, my guest today is mary-jo night, and we’re talking about all things retirement were relating to your retirement. You devote so much time to the care and help and lives of others let’s devote this hour to you, your retirement plan, maybe a retirement tuneup. Mary-jo has enormous experience working with people, planning for retirement and in retirement, and after this break, she is going to join us. Stay with me. You couldn’t do anything, including getting dink dink dink. You’re listening to the talking alternate network, get in. Cubine are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. I’m tony martignetti, the aptly named host of the tony martignetti show. Big non-profit ideas for the other ninety five percent. You’re non-profit is ignored because you’re smaller medium size. But you still need expertise and help with technology fund-raising compliance, finance and accounting will look at all of these areas on the tony martignetti show. Big non-profit ideas for the other ninety five percent on talking alternative dot com fridays one, too. Talking. Yeah! Back-up. Neo-sage no. Because i’m dahna can i must? I’ve always loved the monkeys. My favorite with peter tour this is tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. We’re talking to small and mid sized non-profits sometimes you feel left out, maybe often, because big non-profits get attention. You have a home here at tony martignetti non-profit radio. My guest today for the whole show is mary-jo night mary-jo is a senior financial consultant and retirement planning specialist with aksa advisers. She began her career in financial services in nineteen seventy two she is one of the top women financial advisors at axa of among many, she serves on the axle women’s leadership council, is president of the arts art resource alliance and is on the oratorio society of new york’s board of directors and with oratorio society. She performs regularly in carnegie hall, a great background to be a guest because she has non-profit experience she’s working with non-profits not only in her practice, but serving on boards you may have seen mary-jo on the today show, maybe bloomberg tv, cnbc power lunch you might have heard mary-jo on bloomberg radio or the wall street journal. Report after having done those smaller media outlets she’s joining talking alternative broadcasting on the twenty martignetti non-profit radio today mary-jo welcome to the show and it’s great to be a tony. Thank you very much a pleasure to have you when we’re thinking about retirement, what are some things that people should think about? First may be with respect to their employer, but what are some awesome first thoughts people should have? I think the first thing that people all around the country are concerned about us outliving their money with medical advances being so great we are going to be living a lot longer and we have a lot less resource is unless we save them. The government is making us more responsible for our retirement. Um, our corporations or our organizations are non for profits are making us more responsible for our retirement, and unless we save that money, we’re going to be very short on dollars when we get to retirement age, i actually looked at a number social security average is about twelve hundred dollars for a working couple that’s, not five hundred dollars a month for a working couple. That’s not a lot to live on so that’s today, right? That’s today that today’s couples i have always lived by and took the word of my parents. If you’ve saved ten percent of everything you make, you’ll never be poor. So i’ve always lived that and putting ten percent away even though it’s, a major struggle today will pay off in spades down the road. Okay, there’s a valuable first very simple lesson strive to save right ten percent of your earnings. That would be my first off advice. You know, corporations, organization not-for-profits typically provide employees with a way to save its either through there for o three b, also known as a psa t d a tax sheltered annuity program. Um, people complete away or you fora one k which is also a new plan that you can put into the not for profit world. Now mary-jo before we get too far, i don’t want to put you in jargon jail, so okay, let’s let’s. First let me tell listeners that we are taking your calls. Today we are live today and the number to call is eight double seven four eight zero, forty one, twenty eight, double seven for eight o. O for one two oh, taking your calls for mary-jo night. Ah, let’s. Define a few of the things that you just mentioned. Ah, for o three b what? What is that? Ok, all of these numbers are simply sections of the irs tax code of four. Oh, one k is typically a corporate retirement plan where people can put money away every paycheck. Four o three b is the same thing on lee it’s for hospitals it’s for universities it’s for not provoc not-for-profits so essentially it’s the same exact thing. And i think people who have accounts with i’m going to name the biggest one that i know of. Tia cref that’s a four o three b is that right? Yes. Could be ok. Yeah, absolutely. Okay. I read your it’s. Just a numbers that the irs puts on a corporal or employer sponsored pension plan or retirement plan. Okay. And then you mentioned t d a. I think tanya is a tax deferred annuity, eh? So we can get into these unusual a little later, right? I just wanted to flush out the acronyms and there was one more. Three b is a psa it’s also what’s. It say tax, sheltered and unsheltered anew. Thanks. Deferred annuity for all three b well, the same thing. Okay, we’ll get to we’ll get tau breaking those out shortly on dh. I was asking you about what some first thoughts are, so we know strive to save ten percent, right? Don’t you have to be concerned about outliving your assets, so that would be the first thing. Another thing is to really take stock of what you’re entitled to. Many corporations. Um, we’re not-for-profits that have been around for a long time offer their employees pensions, actual pension and a pension is something that when you retire your company, your organization is going to provide you with a monthly income for the rest of your life and that’s something that the organization probably contributes to. They are. And this would be something called a find benefit plan where the company on ly contributes to it. And foreign since i spent twenty, is at merrill lynch way back when and they owe me a pension. I know a lot of the lodge in not-for-profits have guaranteed their employees when they turn, it can be fifty five, sixty, sixty five they when they’re retired. They will get a monthly paycheck for the rest of their life and that’s really the difference between a pension on a retirement plan, a pension is typically the fine benefit guaranteed most companies our cutting them out or do not offer them to new employees now on dh, small and midsize non-profits are not likely to have pension that’s, right? Yeah, so i’m sort of going on the assumption, and we will that that we’re talking to people who don’t have non-profit whose employers don’t have a pension plan, but as you know, other things, one of ah recent client of ours found out that she had a huge pension and she actually changed jobs into a smaller not-for-profits because her pension was so big and she was able to collect that pension, roll it over into an ira, and now she’s working for a small enough for-profit so i think it makes some sense for people at least understand what you have and if you left a large not-for-profits make sure you understand whether or not you have a pension coming to you any other things that we should be looking at, maybe maybe with respect. To the employer, seeing what the employer might offer aside from a pension well, typically it’s mostly gonna be retirement plans again. Most not-for-profits can’t really give pensions, so they set up one of the retirement accounts that you can contribute into, okay, and what type of one of those? And that would be those four o three b in the four oh one k. Often, the not for profit will give an employee some kind of match for if you put in four percent, they may match you’re four percent contribution, and you typically have to put in a certain amount what to get the employer match what’s your recommendation. Do you recommend putting in as much as you can to get that match? Well, i wouldn’t at least put in as much as you need to get the match. Don’t give away free money. We do have a caller already. Excellent. Tracy, tracy, you’re on talking alternative broadcasting that tony martignetti non-profit radio welcome. I think we lost tracy tracy, hopefully you will call back let’s, continue with mary-jo what about some of the issues that revolve around beneficiaries naming naming beneficiaries of whatever your plan is? Aren’t there pitfalls there and things that people need to know about? Generally, if we’re married, we under law, we must name our spouse that’s number one um, there is some pitfalls, though you don’t want to name your minor children. Typically, you might want to find a custodian for your minor children, because if they if you pass away and your five year old inherit your retirement account, they can’t use it, and then you have to go. A court has to appoint a guardian, and that child may not be able to get any of the benefit of that money until they become of majority age. I see. So now now we’re talking about naming beneficiary named beneficiaries receive the balance of your a count count, correct, and that could that’s true of ira’s fora one case for three bees or any type of retirement accounts you should name, name a custodian for your children. The other thing is a lot i see a lot. Of clients, but their mom down, you know, you’re a young woman, a young man, and you’re just starting out, you put your mom down. We had one gentleman in our office who, after twenty years of being divorced when he passed away unexpectedly, his ex wife actually got his retirement account. Twenty years worth of savings, which is not what has tended. So whenever you have a life event, you want to change your beneficiaries, we’re going to take a break. Mary-jo night is with us, we’re talking all things retirement, your retirement focusing on you in this hour. Mary-jo will stay with us after the break, and i hope you do, too. You’re listening to talking alternative network at www dot talking alternative dot com, now broadcasting twenty four hours a day. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com. We look forward to serving you. I really need to take better care of myself. If only i had someone to help me with my lifestyle. I feel like giving up. Is this you mind over matter, health and fitness can help. If you’re expecting an epiphany, chances are it’s not happening. Mind over matter, health and fitness could help you get back on track or start a new life and fitness. Join joshua margolis, fitness expert two one two eight sixty five nine to nine xero. Or visit w w w died mind over matter. N y c dot com wolber is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call us ed to one, two, nine, six, four three five zero two for a free consultation. That’s lawrence h bloom two, one, two, nine, six, four, three five zero two. We make people happy. Hyre xero. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com. Dahna tony martignetti the host is tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. My guest today is mary-jo night senior financial consultant and retirement planning specialist with access advisers were live, and we would love to be taking your calls on you’ll know that this is a very high tech station because we have technical problems, we can’t seem to keep a call on the phone, so don’t call eight, seven, seven etcetera instead. Email info at talking alternative dot com. So if you have questions for mary-jo, please email info at talking alternative dot com. We’ll get your message and read it on the air, and you and everyone else will benefit from it mary-jo you ah, i mentioned earlier if someone changes jobs, they might roll over and let’s, talk a little about what happens, what you should be thinking about if you are in a job change. Um, it’s really? Never smart to take your money out of your retirement account, as i said, you’re going to really be you need to save a lot of money so that you’re not. I told my clients, i don’t want you flipping hamburgers at eighty years old at mcdonald’s so you really need to put money away today. The life expectancy of a newborn is one hundred twenty years, so even if you retire, say it seventy years old, you still have another fifty years that you have to potentially i have to have your money last four. So when you’re changing a Job the best 1 of the best things thiss tool turn it is that i see one is rolling your money over or transferring directly, transferring your money over to your own ira and that’s, very simply done by getting the paperwork from your employer than having an ira set up at a bank of mutual fund company with your financial advisor. However you do that, so essentially, if you have the money in your retirement account, you fill out the paperwork and the money is sent from that employer sponsored retirement account to your own ira that’s one alternative the other alternative is if if you go to another corporation, another not-for-profits another organization, you can also directly transfer that money from your current employers plan to the next employer’s plan, and there’s benefits to doing both if you combine and this is again what i typically advocate if you combine your retirement accounts as you change jobs into your own ira, then you always have the ability to control how that money is invested, what you’re paying for that investment, but the management of those investments and you don’t lose track. I have one client who has literally moved to india, and she still has a retirement account in new york, one in california and she’s in india and it’s really difficult at this point to combine them until she comes back to the states so you can lose track and it gets really messy. And if you are doing any kind of investment management for yourself, unless you have them in one place, it gets really complicated. Teo try toe manage five or six different iras or five or six different accounts with your employers. So now if you have an i r a, you can also have an employer sponsored, maybe for three, right? Sure, sure, i’m i again at Acts. I have my 40 one k and i have. I also have some self employed in comment. I also have an ira, so i have three. Things, but i am very careful about combining and managing them. They’re all in my control. They’re just not at other companies, one of the benefits of and if you have the thing on the difference on from an ira to a corporate retirement account or your employer sponsored for o three b is that in the four o three b or in the four oh one k, you can typically borrow money while you’re still working at that company. You will have to pay it back before you leave that company, but you can borrow money from your four oh three typical. Yes, and i don’t know about tia specifically, and i won’t go into that because it really worked too much on that. But typically most organizations and the federal government says you can borrow up to fifty percent. Now. If you’re buying a home, you might borrow a piece of the down payment. You may use it for paying taxes. There are, you know, um, emergency comes up, so there are things to use that for. But you must. The trap is if you don’t pay it back by the time you changed jobs, then you have to pay regular income tax on that money plus a ten percent penalty. So you always have to be where the tax ramifications of borrowing you want to get that money back in your account before you change jobs. And the way to find out those implications would be to talk to the plan administrator or yes or your accountant or your own tax advisor, right? Everything that we say here is it should be under the umbrella of talk to your tax advisor. This is not tax advice as muchas general knowledge s o but the other side of it is if you have an ira, even though under most circumstances you cannot borrow from that ira, you can take the money out for sixty days. It must be back in the account by the end of sixty days. So the irs does allow you to use that money for sixty days has to be back in the ira. Well, you’ll pay that income tax again. And the ten percent sort of ah, a bridge loan. It’s a quick. Give yourself it’s. A quick like yourself. A bridge loan. We have a couple of email questions. Excellent. Thank you. For emailing your questions. The first one is from tracy, who were lost on the phone. Sorry about that, tracy on dh, she asks a self employed freelance writer what are my options for retirement? Since i don’t have a company that offers a four oh one k like us, we’re talking about ira’s well do-it-yourself employed, the irs allows you to open something called a sep s p i r a what’s up stand for self employed retirement plan pension there’s also a start but it’s much more complicated there’s a surprise like serpent i don’t wantto dahna let’s start with step so self employed all is that by right now? There’s a catch to this? Some corporations pay you on a ten nineteen r w too, even though you are a freelance that’s, one of the really hard places to save on attacks preferred basis so if you’re freelancing and being paid on a w two, you cannot open a set by array it’s on ly if it’s a ten, ninety nine basis so there’s a distinction there so what you can do or anybody can dio is one of the products that’s out on the market that allows people to save its not tax. You don’t get a tax deduction, but one of the products out there is something called nonqualified or none. I arrest nondeductible variable or fixed rate annuities where you can literally save as much as you want. The money that goes in is an after tax money. The money grows tax deferred when you take that money out what you put in is obviously tax free comes out again tax free. But any profit is taxable as at ordinary income tax rates. Alright, eso profits tax what you put in his tax free. But like a mutual fund, your profit always comes out first. So you’re paying tax on the profit first i’m opening the doors again. Teo jargon jail. I want teo flesh out. You just said qualified plans so let’s before the final unqualified right? We have about a minute or so before the next break. Explain what qualified and nonqualified means qualified plan is something that the irs sanctions and gives you a tax benefit for so a qualified plan would be your employer’s retirement plan would be your a pension plan on ira is qualified on ly in that it gives you a tax deduction. That’s what i mean qualified means hyre e-giving deduction and non qualified is after tax money that is going to be taxed at the back end. And so i’ll stick a roth ira right in the middle of that tax at the back end, meaning when you withdraw, if it is that’s, when that’s, when you attack, correct. Okay, we’re going to take a break after the break. We have an e mail from christine. Email your questions to info at talking alternative dot com, please stay with us. Talking alternative radio twenty four hours a day. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. I’m tony martignetti, the aptly named host of the tony martignetti show. Big non-profit ideas for the other ninety five percent. You’re non-profit is ignored because you’re smaller medium size, but you still need expertise and help with technology fund-raising compliance, finance and accounting will look at all of these areas on the tony martignetti show. Big non-profit ideas for the other ninety five percent on talking alternative dot com fridays. One, too hyre you’re listening to the talking alternative network. Oppcoll she’s. All mrs back-up he’s called. I can’t officially jumping. My rival will love back-up on talking alternative broadcasting, this is tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m your host, tony martignetti my guest today is mary-jo night senior financial consultant and retirement specialist with axe advisers were going to start with a question mary-jo that came in by e mail. By the way. Email your questions, please today to info at talking alternative dot com that’s info at talking alternative dot com this question is from christine, who says, i was also taught the ten percent rule about saving when i started working, my parents wisely told me i look at that, she says, wisely told her she loves her parents. This is wonderful. My parents wisely told me that if i started saving from the beginning of my employment, i would never even notice that decrease in spending money that having been said, what advice do you have for adults who are in the middle of their career and take a decrease in pe or for a period, leave employment altogether to care for children or aging parents? It’s hard to remain focused on retirement and discipline when life gets complicated in the present thank you. For your question, christine mary-jo what do you think? It’s? A great question, christine and it’s, not something unusual today there are so many people out of work, there are so many people struggling, so here, just some of the things that we’re experiencing in our financial planning practice is downsizing and and i empathize sympathize because i know how difficult it is, especially a lot of women are taking care of children wearing about college, and they’re also taking care of their parents, and we call it the sandwich generation it’s really, really difficult. So, um, one of the things i would say starting out is the most important thing is really, and i think this is for everyone when you’re doing retirement planning college planning, we’re just trying to save is sit down and know what you’re spending every month, sit down and really figure out a budget, and you can send an email to tony if you want our budget sheet and i will make sure everybody, anybody that emails him gets a copy of it. Well, actually, the way to reach mary-jo is to goto mary-jo site, it’s mary-jo mary-jo dot biz mary-jo that is that’s. An m a r y joo dot biz that’s our website, but so ah, budget, you hear that by so often, but rarely not about guilty about how you’re spending your money as much as it is about self awareness about what we’re doing without money and where we can make changes. Ah lot of us owe housed were working with, um, some clients who were advising to move into less expensive apartments. You know, credit has dried up in a lot with the bank, so it’s hard to get a home equity lines in a lot of places, so i think the thing is, number one, start out with a budget, see where you can cut expenses and, you know, assuming you’re going back into the workforce and, you know, give yourself a little bit of a break and don’t depends so much on the retirement account on the retirement plan and focus on getting through the next year or two, i think we will get out of this recession i think the world will get better on we will have brighter days ahead, but i would say, you know, the other thing is sit down with a good financial advisor um, who may charge you a fee for the service but may save you and give you some ideas on how to get through this how to use some of the benefits you have, um, or maybe even augment what you’re already doing. So anything financial advisor, i think, understand your budget, look at the possibility of downsizing not only expenses, but also housing and don’t worry immediately about retirement. Maybe maybe that retirement planning and saving needs to be put off for a short period a couple of years, but to get back to it exactly before the break mary-jo we were talking about you mentioned the roth i r a, and why don’t we explore that a little bit as a as an alternative account overtime account, i think it’s great, you know, circling back to a lot of the smaller admit size non-profits not having retirement accounts, formal retirement accounts for their employees, those employees can set up individual iras. Um, which is just simply a vehicle that allows you to save i think it’s six thousand dollars excuse me for not knowing that number, um, a year on attacks preferred basis, let’s see is it five thousand dollars on attacks preferred basis and you could do that either in a deductible ira or a roth ira, and we don’t say i’m sorry wait when you say attacks preferred basis, what does that mean going okay, so a deductible i r a traditional ira, if you put five thousand dollars away, then you’re income taxes will be reduced, or the income that year will be reduced by that five thousand dollars. So if you’re earning one hundred thousand dollars and you put five thousand dollars into an ira, you’re only going to be taxed by the irs at ninety five thousand dollars if you do, and so that money will grow tax free for the rest of your life or until you have to take money out seventeen and a half, but we’ll go there later when you have to take money out, then you’ll pay taxes on that money because you didn’t pay any money up front. You’ve got the taxi to the traditional, traditional or deductible ira. The other type of ira is a roth ira. And this again, i think it’s it’s perfect four self employed people. It’s really excellent if you have a corporate or organization sponsored retirement plan? You can also do a roth ira for up to five thousand dollars a roth ira is an after tax contribution to an ira, so you already paid your income taxes on that money. It will also grow tax free until you decide to take it out, but he is the good part when you decide to take it out, it is also tax free, so essentially you’re pre paying your taxes upfront that five thousand dollars gets to grow until you take it out. There are you can leave that to your grandchildren to your children. The tax benefits for roth iras of fabulous but you don’t want to name a minor is the beneficiary, right? You never wanna name a minor, so you would so let’s just fall that’ll bit. So what suppose you did want the money teo in a roth ira to ultimately get two grandchildren? And you’re not sure what age there’ll be, but you don’t want them to get it when they’re under, say twenty or it doesn’t have to be just eighteen. What what do you do? Everybody with children should really hear this loud. And clear. Don’t name your children as beneficiaries. And do you get a well done? Seventy four percent of the population does not have a will. You should have a custodian, someone you trust, a sister, a brother, a relative. Um, someone that you trust that we’ll take care of your children’s money for you. So you have that in your will. You should have that on your life insurance. And you should have that on your retirement accounts. So what you do is your naming a custodian for the benefit of your children as long as they are minors. Once your children are not miners, then fine. Then you can name them directly, and you’re naming the custodian in your will. Is that right? As as the beneficiary as the custodian is the person that will take care of your children’s money. Yes, but also directly on your retirement. You know, when you, when you altum in an ira, correct on a beneficiary form. When you open an ira, you have to name a beneficiary. Here’s the key. If you name your a state as the beneficiary of your ira, that estate must pay out with the bent. The ira four oh, one k for three be any retirement account must pay out in five years. If you do not name an individual person, if you name your estate the ira must pay out in five years in effect for donors. If you name a charity that ira must pay out in five years a non natural person on on a beneficial as a beneficiary of an ira or any kind of retirement account, non natural people, which is non people, okay, must pay out in five years. So you want to name an individual a person. But if it’s minor children name it as a custodian for those children, as long as they minor, i see. So on the beneficiary form itself, you’re naming the custodian as custodian for the minor child. Correct? That’s what exactly? What you put on the change of beneficiary? Correct. Okay. Is anything more than you wanted to say about the roth ira now, this sounds like something. Let me just say that it could be valuable for the woman tracy three mailed. Doesn’t have an employer. Could be a roth ira oran or a traditional correct. Correct. You khun do either, but again, and and for younger people, where it looks very likely that over the next ten, fifteen years, taxes will probably be hi there. When i started working in nineteen, seventy two, capital gains rates were up around seventy percent. Now, that’s a long time ago, most people don’t remember that long ago, but tak capital gains rates and now fifteen percent. So we’re one of the lowest tax time’s in, you know, decades, our memories are short way. Don’t think back that far. We don’t realize that way weren’t born that far back. So for the younger people, um, a roth ira, if you pre paying your taxes now, by the time you’d use this money, if tax rates are a lot higher and you don’t have any taxes to pay because it’s a roth ira, it is such a bonanza. So that’s, really, i think good advice for people who don’t have an employer plan like tracy, who emailed, by the way, email your questions to info at talking alternative dot com were not able to take calls today through a technical problem, so email mary-jo if you have a question at info at talking alternative dot com, this is tony martignetti non-profit radio mary-jo what about thinking about sort of pre retirement? If you’re maybe five years out from retirement when you think you’re going to be retiring, are there things you should be doing in preparation? Well, i guess one of the most important things, you know, i just talked about it a little bit a few minutes ago is i understand what it cost you to live, um, everything that you do, going forward in retirement is going to be based on what does it cost you to live? And if you have a handle on that, if you know it cost you five thousand dollars, if you know it cost you seven thousand dollars, then you can start to prepare for how much do you need to retire? Five years out? You still have time to make adjustments. Um, you may think it’s five years out, when in fact, if you do a financial plan, it turns out it’s seven years or eight years out. So it’s really helpful to number one. Understand what your cost of living is if you one of the rules of thumb that the industry is looking at right now is if you take your balance as of december thirty first say you have a half a million dollars saved and your offices in all savings, everything, everything that you’re going to spend wants to retard. So the ideas how do you turn that into an income? So if you look at your december thirty first balance and this isn’t even a gauge for younger people cause then you can start to monitor. How close are you to having enough? Or are you saving enough? Or are you way way off? So a half a million dollars if you calculate four percent of that, that four percent well, pretty much withdrawal once a year. Well, pretty much allow youto have your money last twenty five years. So if i have a half a mostly around them, as i have a million dollars four percent withdrawals forty thousand dollars if that’s all my money can i live on forty thousand dollars? It’s a pretty simple way to understand whether or not you have enough now add to the forty thousand dollars your social security, which we will get a reminder from social security three months before our birthday. How much our social security payment is estimated to bay. So if i know i have a million dollars, um, so i know i can take forty thousand out of my assets, plus my social security. If i have any pensions, add that on and now you know, you have an idea of how much or how much income you’ll have during retirement if you don’t have enough to go on vacation with that four percent this year, skip the vacation next year if investments are hyre and your account has gone up on december thirty first of the following year, and you have enough to take the vacation. Great. But you need to know let’s talk about maybe had invested all this money also, and that four percent rule is that that will give you a gauge of how that your money will. Last for twenty years, twenty five years, twenty five years. That so, if you’re so if you expect a latto live longer than twenty five, you need to have more money or that’s produced the four percent two and a half or three percent quick. And as you get, you know, when you when you get to be seventy, you can use five percent when you get to be, you know, eighty, you can use six percent in the minute or so we have left before a break. What else should people in those pre retirement years be thinking of anything else? Well, i think you really again. From our perspective, you really should be sitting down and doing a formal financial plan so that you can identify. How do you allocate your money? How much should be in fixed income? How much income should you have? You know what? You want to equate your fixed expenses with fixed income, your variable expenses, your, you know, luxuries, things that you can change around on and have that invested a little bit more let’s. Say aggressively. So let’s talk about how to allocate on and you really want to be ableto lock that in before you sit down and and retire from your job. This is tony martignetti non-profit radio, your host, tony martignetti. My guest today is mary-jo night, senior financial consultant and retirement planning specialist with access advisors. We’re going to take a break. Mary-jo will stay with us, and i hope you do, too. You’re listening to the talking alternative network. I really need to take better care of myself. If only i had someone to help me with my lifestyle. I feel like giving up. Is this you mind over matter, health and fitness can help. If you’re expecting an epiphany, chances are it’s not happening. Mind over matter, health and fitness could help you get back on track or start a new life and fitness. Join Joshua margolis, fitness expert at 2 one two eight six five nine two nine. Zero or visit w w w died. Mind over matter. Y si dot com. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com. We look forward to serving you. Is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call us ed to one, two, nine, six four three five zero two for a free consultation. That’s lawrence h bloom at to one to nine six four three five zero two. We make people happy. Durney talking. This is about. Teo, wait! Sit around the house, get watching tio here’s. What happened with no. I swear to you, tony martignetti non-profit radio, my guest today is mary-jo night we’re talking about your retirement. I’d like to take a minute to talk about something that i blogged about this week. No, and that is the name of the block post actually is unheralded e-giving we learned last week that johnny carson donated one hundred fifty six million dollars to his foundation at his death through his estate and what really caught my attention about that is nobody knew it. It got discovered by the investigators at the smoking gun because they were filing coming through nine, ninety forms, the annual filing form that the carson foundation it’s actually called the john w carson foundation and the smoking gun went through the nine, ninety form for the tax year and found a significant gift from johnny carson himself and that’s the only way that this became news, nobody at the foundation was disclosing it. Obviously, johnny carson didn’t say anything before his death, and i just that gets me just thinking about, ah sort of revered status of someone who gives quietly, silently. I can’t technically call his gift anonymous because the john w carson foundation is certainly making gifts to charities and those charities know where the money is coming from so it’s not strictly anonymous but still got me thinking about how we just should respect the people who give to your organization’s quietly, silently, you know, there’s a lot of attention being paid to the to the buffet gates, six hundred billion dollars challenge, and that is a very worthy challenge not to minimize that or disparages at all it’s outstanding for the attention that it brings to philanthropy, but there’s another kind of giver, another kind of donor of the secret, quiet donor a person is someone that maybe we should be thinking about and and paying honor to when when we come across them, their their their occasional, they’re rare. I’ve worked on just a few anonymous gif ts on, hopefully you have had the pleasure of working with such donors. You’ll find my block post at on this subject at m p g a d v dot com, which is the home of my blood. My guest is mary-jo night mary-jo, of course, is still with us mary-jo we, we’ve talked about traditional iras, roth iras, we compared and contrasted. Them, but you’ve mentioned something that’s important i think we want to explore, and that is that these get invested. If you’re doing your own investment management, what do you do? You’re not a professional advisor. Financial advisor? How do you determine how you should have your accounts invested? I think this is ah, really critical information for everyone. There’s an awful lot of information available. And so i’m going to just go through a couple of things that i think go from the very, very simple, too. A little bit more complicated. There’s a rule of thumb that i heard from a very, very wise investment manager years ago, and i think it probably still holds a lot of validity a cz faras investing. So if you take your take one hundred, subtract your age. The difference is the percentage that you should have in stocks, and that would be for a very conservative investor. So let’s, take the example of a forty five year old. Okay, i was going to use a forty year old but that’s great. So forty five year old if you take one hundred, subtract forty five that person should have if it’s a conservative investors should have fifty five percent in stocks, so now you’re going to re balance this annually. So it’s a very simple way to manage how you invest stocks to bonds to cash and and you said it twice. I just want to emphasize that’s for someone who’s conservative. So so if you’re if you’re more of a risk taker, then you’d have more than the fifty five percent clolery in-kind in stocks, so go ahead so let’s go into that a little bit, you know, generally the most effective way to investor money in any retirement plan today is using mutual funds. There are so many different mutual funds, and if you find a family of mutual funds that you’re comfortable with or mutual fund investment company, by all means go on their website and create a strategy. Every single mutual fund company has something called a risk tolerance profile where you can literally go in and say, you know, if you’re not comfortable with what happened in your account two years ago and not many people are very comfortable with the value of their account going down forty percent, um then go on, do one of these risked tolerance, profiles and, well, personal risk tolerance and create a strategy. Um, i studied very high math about six years ago, and i was absolutely blown away by the sophistication that goes into the models that people use probabilities, et cetera to understand what, how much stocks, how much bonds, how much should be international, how much should be small cap, large cap, etcetera? So go on to a website and really answer the questions of very simple questions and answer them honestly, if you didn’t change your portfolio when the market went down forty percent, and yet the question says, how often do you change your portfolio when the market goes down and you didn’t change it? Then answer xero you didn’t change it, so i would spend the time to go on there, and that will give you an idea of what the allocation is. And then you can look for the mutual fund that’s going to fit your comfort zone? Is it sixty percent stocks or and forty percent bonds? You don’t want to ever have one hundred percent bonds or one hundred percent stocks either way, it’s too risky? We found that that bonds don’t always work two years ago, and we know that stocks don’t always work because there’s too much volatility and it’s when the market is down the most that people get scared and get out. One other thing is, when you’re putting money away every month, you have to also realize that when the market is down, i think warren buffett he’s buying in on sale when the world goes to hell in a handbasket, he wants to own stuff. So the worst time to get out one of his one of his adage is that i love is it’s time to be fearful when everyone else is greedy and it’s time to be greedy when everyone else is fearful. He sees a lot of fear in the market and that’s, why he’s doing what you just said exactly so there’s ah technique called dollar cost averaging. So you’re putting money in every paycheck or every month when the market’s down you want to stay in there buying those stocks because they’re cheap when the market goes back up a year, two years from now or whatever that cycle is, and typically the seven year cycles you will have bought a lot of stock, very cheap relative to look ahead five years, how much it buy and how cheap was it? So dollar cost averaging is a great thing when you’re buying when you get to be fifty five, sixty, sixty five and looking at retirement again, you want to make sure you’re readjusting that portfolio to your temperature. At that point, my guest today has been mary-jo night, senior financial consultant and retirement specialist with aksa advisers, you could reach mary-jo at mary-jo dot biz, you can reach tony martignetti non-profit radio on the fan page, which it’s going to be safe to click in just a minute because i’ll be done and on that player window, just scroll down and click to the fan page go over there and like us, my guest next week will be stephanie strong she’s, the non-profit beat reporter for the new york times. She’ll be with us here in the studio, and joining us by phone next week will be can cerini of cerini and associates were going to be talking about compliance and auditing, and we’re certainly gonna include a conversation aboutthe possible revocation of tax exempt status for this small and mid sized organizations that didn’t file their form nine, ninety within the past three years. The irs has a procedure for you to save your tax exempt status, and we’ll be covering that with ken cerini also joining me next week. As i said, stephanie strong, i want to think clear meyerhoff, our creative producer, sand liebowitz, line producer, and regina walton, who takes care of our facebook page. I’m tony martignetti, the host of tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent. Thanks for listening. Join us next week, friday at one p, m eastern at talking alt-right dot com. Oppcoll hyre