Required Minimum Distributions – Not Required This Year But Should You Take It?

We recently saw a humorous quote stating that they “missed precedented times.” 😊 That is so true as we come near the end of 2020. There will be plenty of reflection that occurs for years to come. Hopefully, many good things can be remembered. 

November is an excellent time to think about pre-planning. It’s a great time to look at strategies for reducing taxes before December 31st. Every year at this time we start talking with clients about their required minimum distributions (RMD). By definition, this is the amount of money that must be withdrawn from a traditional, SEP, or Simple IRA account and qualified plan participants of retirement age. The original starting age was 70 ½ and has now been changed to age 72. Earlier this year, Congress waived the required minimum distributions. 

Even though participants do not have to take it, here are a few reasons some may consider it: 
• Low income and low tax bracket – If your income for 2020 is in a low tax bracket, it may be wise to consult with your accountant and see how much money can be withdrawn from your tax deferred account with little or no taxes at all. If the funds are not needed for spending, then they can be transferred into a brokerage account and managed. If every year for your tax return you pay no taxes at all, then this might be something to investigate. 
• Converting funds to a Roth – There are times where taking funds from the IRA and converting them to a Roth is extremely beneficial and this year may be the best time. When funds get converted, they show as income but stay in a retirement account and grow tax free. In traditional years, a Roth conversion is not allowed for RMD. In addition, those funds can then be withdrawn tax free if the Roth has been opened for 5 years or more. 
• A known increase in taxes next year – If there is a known increase in income such as a sale of a business, an expected pay increase, or the potential of rental income from a property for 2021 and it will influence the tax bracket, then taking the RMD this year may be best.
• A higher RMD next year – If it is expected that the RMD is going to be much higher next year because none was taken this year, this is another reason.  As a reminder, the RMD for each year is based off the December 31st value from the previous year and then it is calculated.  

These are only a few reasons why taking the RMD could be considered.  As always, we encourage you to consult with your accountant and your advisor to collaborate and come up with your best tax option for 2020. 

At PFG Private Wealth Management, we thank you for your trust in us and encourage you to be safe. 

PFG Private Wealth Management, LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. This material and information are not intended to provide tax or legal advice.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.  Insurance products and services are offered and sold through individually licensed and appointed insurance agents. 

Ep 1: Getting To Know Your Hosts – John Teixeira and Nick McDevitt

On This Episode

On this inaugural episode of the Retirement Planning Redefined podcast, we’ll get to know your hosts a bit better. We’ll find out how they got involved in the industry, how their partnership formed, and what experiences have shaped their financial and investment philosophies.

Subscribe On Your Favorite App


PFG Private Wealth Management, LLC is an SEC Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. The topics and information discussed during this podcast are not intended to provide tax or legal advice. Investments involve risk, and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed on this podcast. Past performance is not indicative of future performance. Insurance products and services are offered and sold through individually licensed and appointed insurance agents.

Here is a transcript of today’s episode:

Marc Killian:                        The rules of retirement have changed. No longer can most of us rely on social security, or a single pension to fund our futures. We’re living longer in retirement, doesn’t just last a handful of years anymore. Instead, you might stay retired for 20 or 30 years and maybe even more. We need to look at retirement through a new lens, with fresh eyes, with a new approach and plan of attack. Here to answer the call are our financial advisers, John Teixeira and Nick McDevitt of PFG Private Wealth Management serving youth throughout the Tampa Bay area. This podcast is retirement planning redefined and it starts right now.

Marc Killian:                        Hello and welcome into retirement planning redefined. Thank you for tuning into our podcast with financial advisers from PFG Private Wealth, an independent IRA. Joining us here is Nick McDevitt as well as John Teixeira. We’re going to be talking about the role of investing, finance and retirement, and they’re serving you here in the Tampa Bay area. Make sure you go to the website, that’s John, Nick, guys, welcome into the kickoff podcast. How are you?

John Teixeira:                    I’m good. How are you doing?

Marc Killian:                        I’m doing very well and Nick, how are you?

Nick McDevitt:                  Doing well also.

Marc Killian:                        Very good. How’s the weather going in Tampa right now?

John Teixeira:                    It’s raining quite a bit, more than usual, we usually get about 10 minutes, 15 minutes span. It’s been going all day.

Marc Killian:                        Oh yeah. Well that’s Florida for you, right?

John Teixeira:                    Yes, it’s true.

Marc Killian:                        Now see that through the power of the Internet I don’t have to actually be in Florida to do a show with you guys. I’m actually in North Carolina, we’re usually are kind of the same way. Just wait five minutes and the weather will change if you don’t like it, same kind of thing in Florida. Got a lot of friends and family down there, so I’m used to that as well. But that’s not what we’re going to talk about here today on the podcast is the weather. Just trying to kick things off a little bit. But what I wanted to do on our first episode is just to kind of get to know you guys a little bit and get some information out there. So as we start archiving more and more podcasts and folks are finding us, whether it’s on iTunes, or Google Play, or iHeart, or Stitcher, or whatever your podcasting platform of choices, they can kind of go back and get to know you guys a little bit as well through this.

Marc Killian:                        So I’ve got a couple of basic questions for this initial a show just to kind of get to know you guys and I’m going to toss these out. Just feel free to… whoever wants to tackle this. But first question is, well, how did you get into doing what it is that you do?

Nick McDevitt:                  This is Nick. I’ve been an advisor now since 2007, Fall of 2007, and it was something that I was always interested in kind of in high school and then throughout college, but after moving down to Florida in 2003 and starting off in a different industry and more of a sales capacity, I kind of came full circle and decided to move into the profession.

Marc Killian:                        And what about you John?

John Teixeira:                    Yeah. I moved down to Florida, Tampa area from Boston in 2006. I graduated in 2005 and just really actually wanted to understand how money works. I started reading some books on financing and banking and then just started diving more into the stocks, actually more of a learning thing and then I was wanting to kind of help people, so really as I started learning more about finances, figured this would be a good avenue to kind of do both.

Marc Killian:                        I got to know, you said when you moved down to Florida, where are you from originally?

John Teixeira:                    I’m from Boston, Massachusetts.

Marc Killian:                        Okay, no accent at all, so you’ve definitely long since shed that, so that’s pretty good.

John Teixeira:                    I did.

Marc Killian:                        Yeah.

Nick McDevitt:                  And Nick from Upstate New York-

Marc Killian:                        I was just getting ready to ask because I was going to say, Nick are you a Floridian by default there or no? But I guess not so.

Nick McDevitt:                  No, Rochester, New York moved to Tampa Bay in 2003.

Marc Killian:                        Now did you guys… well, I guess I’ll just move around there and all my list of questions there and I will just kind of keep this little more conversational. How did you guys get to working together then?

John Teixeira:                    A good question. I joined MassMutual in 2006 and then Nick joined in 2007, right Nick?

Nick McDevitt:                  Yeah, the fall of 2007.

John Teixeira:                    From there just kind of in the same training, became friends and just kind of really stayed in touch. I had left MassMutual in 2009, 2010 and Nick was still there and in 2016 we actually teamed up. We’ve been friends for over a decade. It’s been a good friendship and good working relationship as well.

Marc Killian:                        Very cool, well, that always helps. So you guys met through there and decided to kind of branch out. So when you set up this partnership working together, what’s kind of the each other favorite part? Is that the same favorite part? Do you kind of both tend to do different avenues of the Retirement Financial Planning side of things? Or how do you guys go?

Nick McDevitt:                  I think the good part or a strength of ours is that we are both pretty well rounded. I would say John’s a little bit more analytical than I am, but we’re both pretty well rounded so we’re able to pick up the slack for each other if one of us is out of town or John’s having babies like he has been over the last few years or able to kind of pick up the slack and adapt and adjust whenever the other person kind of needs a pickup. It’s not that our duties are totally segmented, where it’s more complimentary and we’re able to work together pretty well, which is what’s made it work for us.

Marc Killian:                        That’s very cool. So John, aside from having babies and Kudos to you for that, what kind of is your favorite part of what you do?

Nick McDevitt:                  Really it’s just working and helping people. We meet a lot of people and I’d say, after we’re done kind of building a plan and putting a strategy in place, people leave with peace of mind of that they’re on the right track and once we hit that goal for each client, it’s fulfilling. I really enjoy, every day’s a little different and we do get to meet a lot of different personalities and the clients end up becoming friends so I enjoy that part.

Marc Killian:                        Yeah. I host a lot of podcasts and radio shows on the topics across the country and a lot of times we do get that response from people is that, it’s definitely different all the time, you see so many… I think we all share commonalities when we’re talking about finances and retirement planning. There’s definitely generalities that go into it, but at the same time everyone is so uniquely different that it winds up branching off pretty quickly and then of course you get the different personality types and all those kinds of things in there. That works out really well to kind of keep your day interesting, I’m sure. Kind of get back into this partnership here a little bit. So you guys org… either one of you guys is numbers junkie because I think for a lot of us that listen to these types of podcasts and types of shows, maybe Math isn’t always our strong suit and so we kind of assume that a financial advisor is really into numbers and so either one of you guys that way or is it really more the love of trying to help people?

Nick McDevitt:                  I think that it’s a little bit of combination of both. This is nick. For me, there’s… I’ve always had a strength in the Maths space but what’s interesting about our field is that from what we have found, and I don’t know if it just happens to be how most of our clients come to us, but our ability to communicate with them and not talk, are not used to much jargon and be able to help them. Yeah, see the big picture and then work with them, you with different tools and with kind of the planning process that we use, to then slowly start to bring it down to a common denominator is what’s made people feel more comfortable. And so that’s part of why we’re looking forward to doing this podcast is to provide them with additional tools to help them to continually learn, almost like a continuing education sort of program for them.

Marc Killian:                        No, I think that’s a good way of looking at it because I… and I think a lot of people, and that’s kind of why I phrased it that way, do tend to… because you guys see the biggest thing that comes with people coming in and talk with a financial advisor’s procrastination, right? A lot of times they’re like, well, I don’t know, I guess I could do it myself, or that’s not my thing, or I don’t like talking about my money, or whatever the case is. And so people tend to get a little hung up there. But I think when you’re working with somebody who can talk to you and make it relatable and make it to where you’re comfortable with it, that goes a long way in helping you feel better and understand your plan and enjoy your plan. Would you agree with that, John?

John Teixeira:                    Yeah. Most people I think just want to know how things work and just want to make sure that you’re really just advising best for them.

Marc Killian:                        Yeah, I would agree. Alright, so let me turn the attention that we kind of talked about you guys and the and the partnership a little bit, how that kind of formed in your own personal things, but let’s talk a little bit about the firm. So what kind of makes PFG Private Wealth a little different than the rest?

Nick McDevitt:                  So we are what’s called a… we’re an independent firm so we’re an SEC registered investment advisor firm. There is a team of about six advisors and then we have some staff members, and the firm itself has been around for… really just the original founder of the firm just hit his 50th year anniversary actually a couple of weeks ago. And so the firm’s really kind of transformed over the years and continually updated and adapted to try to be in the forefront of what’s going on in the industry. And so there’s always been a focus on an advice-driven practice, whether it’s been through strategic business with… there’s a good strength on the insurance side, executive level, sort of insurance planning. Then over the years that transformed into more of the investments as Jeff Perry, who’s the portfolio manager, became more involved in the practice.

Nick McDevitt:                  Over the last probably five or 10 years, it’s really shifted more towards the advice side so the actual fee-based financial planning and independent investment management internally. We’re clearing custody with TD Ameritrade, so everything there is third party. And that’s something that we always try to emphasize with the people that we’re working with or the people that are coming in to talk with us is that from a conflict of interest standpoint and from a fiduciary standpoint, we do believe in having that basis, and that’s really how we’re structured.

John Teixeira:                    Yeah. What the practice… one thing I think that separates our business model here is that we do work as a team. So Nick and I really focus on the planning end of things. If there’s something where we need some assistance, whether it’s asset management, we have specific guys that strictly do asset management, Bob Perry, which is the founder of 50 years focused on the state planning so he’s a great resource and someone to talked to for that. It’s a collaborative effort, we all work well with one another and we enjoy working with each other too, so I think that adds to it. Being independent, which nick mentioned, no proprietary products, which is very important nowadays so there’s no one telling us, hey, this is… you have to use this fund, you have to use this product. It’s really geared towards our client and what’s best for them.

John Teixeira:                    Yeah. I always kind of enjoy talking to the folks that do a lot of the independent advising. Sometimes when you think about the big box thing, I sometimes make the analogy of Walmart and sweaters and it’s like a certain time of the year they get the sweaters out even now you’re thinking, why a sweaters out right now, it’s summertime, right? But they’re trying to push him for the roll up or vice versa when the season’s over, and they’re just trying to get rid of them, and they try to jam everybody, I you should buy one of these, or whatever the case is. Same kind of deal sometimes when you’re working with those big box cookie cutter things where they want to jam everybody into the same whatever vehicle it is because that’s the hot topic that they want to get pushed that month.

John Teixeira:                    A lot of times when you’re working with an independent advisor, you do get, I think a little bit more holistic, if that’s a good word, kind of view of everything. That works pretty well.

Marc Killian:                        Alright. Nick, you kind of touched on this. I’m going to let you… I’m going to ask one more question here and then we’re just to be about out of time for our first podcast but you kind of touched a little bit on the podcast. I was going to say, why are you guys looking at doing a podcast? What’s kind of the overall theme that you’re wanting to carry out through this?

Nick McDevitt:                  Sure. What we found is that because most of our clients come to us through the classes that we teach. The classes are typically over two weeks and it’s two sessions, three hours per session. We cover a broad base of topics and don’t really have a ton of time to get in depth on them and when those people that decide to work with us after the class, they go through our planning process, it is fairly intensive and so we want to help and we want to have this podcast allow them to be able to touch on and remind themselves about certain things.

Nick McDevitt:                  An example of one of the things that we found is, maybe a husband and a wife come to the class, Maybe they’re 60 years old and they come to the class, about to focus on themselves, but during the class we mention a couple of things about experiences that we’ve had working with clients whose parents are becoming ill and starting to go through, and mistakes that they make from the standpoint of what their parents do with their money, and it’s an additional problem, it’s an additional phase that they’re going to enter into, and it would be great for them to be able to listen to things in a convenient manner, be able to increase their level of knowledge a little bit so that then they can come in and sit down with us and chat with us, and they’ll feel more empowered by having a higher degree of knowledge on different topics and subjects. That’s really how we’re… what we’re focusing on is trying to give people an opportunity to increase their level of knowledge and be able to feel more comfortable having those sorts of conversations with us.

Marc Killian:                        I got you. Well, that makes a lot of sense. Actually I guess I do have a quick follow up and then I’ll let you guys get back into your day. So, John, with the class just kind of give us a quick overview. Nick touched on it a little bit of it, but this is something you guys offer a pretty periodically throughout the year and is it pretty easy for folks to get involved if they do want to choose so?

John Teixeira:                    Yeah, so we offer it twice a year, Spring time usually falls right around January to March. Then we offer it in the Fall starting around late September, October. Most people hear about it, read about it through our mailers. And then also we have a lot of clients that will refer colleagues to the class and then also coworkers. Hey, I want… we hear all the time, “Hey, I passed your invitation on along to a couple of friends of mine. Is that okay?” And we always say, yeah, so what we’ll do is we’ll follow up, send them a link so they can register and register for their friends as well.

Marc Killian:                        Okay, well, you can always tell the difference depending on obviously a lot of our listeners are going to wind up being in this area anyway, but I love the fact you’re like springtime January to March, and it’s like, I used to live in Michigan and there is no say I used to live in Boston. There is no spring in January. It’s just known gold. Right?

John Teixeira:                    It is. Yeah. The nice thing about being in Florida, especially in the winter time, it doesn’t get dark at 3:30.

Marc Killian:                        Yeah. Right? Yeah. My first year in North Carolina, when I moved from Michigan, Christmas time, it was 65 degrees on Christmas day and I was playing basketball. I was, yeah, alright, I can deal with this. It was much better shot than my friends back in Michigan. Go ahead now.

Nick McDevitt:                  Now I was just saying that’s similar experience after moving down from Rochester, which is very similar to weather in Michigan. You adjust quickly.

Marc Killian:                        Yeah, you can enjoy that sunshine a little bit more. Well, there you go so that’s our first podcast. Just kind of getting to know the team a little bit @pfgprivatewealth. Well is where you can find them. That’s not the name of the company is PFG Private Wealth, but if you want to check them out online go to pfgprivate They are an independent RIA as nick mentioned, and of course I was talking with John Teixeira and Nick McDevitt and the guys are going to be on with me from time to time. We’re going to talk about various things. We’re going to do a lot of different stuff on the show. We’ll talk about some of the things you might hear in the class. I’ll have some fun, interesting topics, kind of some oddball things all through with the guys from time to time. You can send an email questions that will cover, some news topics, lots of different things as it relates to finance, investing, retirement and all that good stuff.

Marc Killian:                        As always, if you have questions or concerns, make sure that you reach out before you ever take any action. You always want to talk to a professional and John and nick are available if you need to reach out to them at 813-286-7776, that’s 813-286-7776 and just share that with friends or family that you know might have a situation as well. And of course, when you’re on the website, don’t forget to click on the podcast that’ll be coming soon and you’ll be able to click on subscribe, whether it’s iTunes or Google Play or whatever your platform is.

Marc Killian:                        Alright, so we’ll catch you guys next time here on retirement planning redefined with John and Nick, financial advisors at PFG Private wealth. We’ll talk to you next time. Bye.