Latest / Becoming Financially Confident / What Really Triggers an IRS Audit in 2026?

Transcript

What Really Triggers an IRS Audit in 2026? · Becoming Financially Confident

0:46
Well,
0:46
hello
0:46
everybody.
0:47
Welcome
0:47
to
0:48
Financially
0:48
Confident
0:49
Christian
0:49
Live.
0:50
Glad
0:50
you
0:50
joined
0:50
me
0:51
today.
0:51
I'm
0:52
Ralph
0:52
Estepp
0:52
Jr.
0:53
And
0:53
we
0:53
come
0:54
here
0:54
every
0:54
Friday
0:54
at
0:55
1pm
0:55
right
0:55
here
0:56
in
0:56
the
0:56
same
0:56
place.
0:57
We
0:57
don't
0:57
do
0:58
the
0:58
version
0:58
of
0:58
personal
0:59
finance
0:59
where
0:59
everything
1:00
gets
1:00
wrapped
1:00
up
1:00
neatly.
1:01
On
1:01
this
1:02
show
1:02
we
1:02
talk
1:02
about
1:02
what
1:03
real
1:03
people
1:04
actually
1:04
live
1:05
with
1:05
their
1:05
money.
1:06
We
1:06
talk
1:06
about
1:06
the
1:06
worry
1:06
that
1:07
wakes
1:07
you
1:07
up
1:07
at
1:07
three
1:07
in
1:08
the
1:08
morning,
1:08
those
1:09
decisions
1:09
you're
1:10
second
1:10
guessing
1:11
and
1:11
the
1:11
things
1:11
that
1:12
nobody
1:12
told
1:12
you
1:12
until
1:13
it
1:13
was
1:13
too
1:13
late
1:13
or
1:14
almost
1:14
too
1:14
late.
1:15
And
1:15
today
1:15
we've
1:16
got
1:16
three
1:16
questions
1:17
that
1:17
I
1:17
think
1:17
a
1:17
lot
1:17
of
1:17
people
1:18
need
1:18
to
1:18
hear.
1:18
Now
1:18
before
1:19
we
1:19
get
1:19
to
1:19
that,
1:19
I
1:19
want
1:20
to
1:20
make
1:20
a
1:20
special
1:20
announcement.
1:21
If
1:21
you've
1:22
been
1:22
listening
1:22
to
1:22
this
1:22
show,
1:22
you
1:23
know
1:23
I've
1:23
been
1:23
eagerly
1:24
anticipating
1:25
the
1:25
birth
1:25
of
1:25
my
1:26
first
1:26
grandchild.
1:27
And
1:27
I'm
1:28
happy
1:28
to
1:28
report
1:28
that
1:28
Last
1:29
night
1:29
at
1:30
8:06pm
1:31
My
1:31
grandson,
1:32
his
1:32
name
1:32
is
1:33
Carson
1:33
Christopher
1:34
Estep
1:35
was
1:35
brought
1:35
into
1:35
this
1:36
world.
1:36
I'm
1:37
happy
1:37
to
1:37
report
1:37
that
1:38
him
1:38
and
1:38
mom
1:38
are
1:38
doing
1:39
great.
1:39
He
1:39
was
1:39
actually
1:39
born
1:40
with
1:40
a
1:40
full
1:40
head
1:40
of
1:41
black
1:41
hair,
1:42
so.
1:42
Which
1:42
is
1:43
kind
1:43
of
1:43
funny
1:43
because
1:43
neither
1:44
my
1:44
daughter
1:45
in
1:45
law
1:45
nor
1:45
my
1:45
son
1:46
have
1:46
dark
1:46
hair.
1:46
But
1:47
he's
1:47
doing
1:47
great.
1:48
They
1:48
tell
1:49
me
1:49
he's
1:49
doing
1:49
fantastic
1:50
health
1:50
wise.
1:51
So
1:51
for
1:51
all
1:52
of
1:52
you
1:52
that
1:52
kept
1:52
me
1:53
in
1:53
your
1:53
prayers
1:53
and
1:53
my
1:54
family
1:54
in
1:54
your
1:54
prayers
1:54
and
1:54
thoughts,
1:55
I
1:55
certainly
1:55
appreciate
1:56
that.
1:56
And
1:57
today
1:57
I
1:57
come
1:57
to
1:57
you
1:57
as
1:58
a
1:58
grandpa
1:59
for
1:59
the
1:59
first
1:59
time.
2:00
I
2:00
don't
2:00
feel
2:00
old
2:00
enough
2:01
to
2:01
be
2:01
a
2:01
grandpa,
2:01
but
2:02
that's
2:02
where
2:02
I
2:02
am.
2:02
But
2:02
let's
2:03
get
2:03
into
2:03
today's
2:03
show.
2:04
I
2:04
don't
2:04
want
2:04
it
2:04
to
2:05
all
2:05
be
2:05
about
2:05
me.
2:06
So
2:06
today
2:06
we've
2:06
got
2:06
three
2:07
questions
2:07
that
2:07
I
2:08
think
2:08
a
2:08
lot
2:08
of
2:08
folks
2:09
need
2:09
to
2:09
hear.
2:09
The
2:10
first
2:10
one's
2:10
a
2:10
self
2:11
employed
2:11
listener
2:11
who's
2:12
wondering
2:12
if
2:12
she
2:12
claimed
2:13
too
2:13
much
2:13
last
2:14
year
2:14
and
2:14
whether
2:15
the
2:15
IRS
2:15
is
2:16
going
2:16
to
2:16
come
2:16
knocking
2:16
at
2:17
her
2:17
door.
2:17
Then
2:18
we're
2:18
going
2:18
to
2:18
talk
2:18
about
2:18
a
2:18
man
2:19
who
2:19
spent
2:19
years
2:20
planning
2:20
exactly
2:21
when
2:21
to
2:21
claim
2:22
Social
2:22
Security
2:23
and
2:23
he
2:23
just
2:23
found
2:24
out
2:24
that
2:24
even
2:25
a
2:25
perfect
2:25
plan
2:25
can
2:26
fall
2:26
apart
2:27
if
2:27
you
2:27
wait
2:27
too
2:28
late
2:28
to
2:28
start
2:28
the
2:28
paperwork.
2:29
Going
2:29
to
2:29
be
2:29
a
2:29
very
2:29
practical
2:30
discussion
2:30
about
2:30
that
2:31
one.
2:31
And
2:31
then
2:31
we're
2:32
going
2:32
to
2:32
talk
2:32
about
2:32
a
2:32
woman
2:33
watching
2:33
her
2:33
daughter
2:34
drain
2:34
her
2:34
retirement
2:35
account
2:36
just
2:36
to
2:36
cover
2:36
rent
2:37
and
2:37
she's
2:37
asking
2:38
whether
2:38
there
2:38
was
2:38
a
2:38
better
2:39
way
2:39
and
2:39
whether
2:40
she's
2:40
protected
2:41
from
2:41
the
2:41
same
2:41
thing
2:42
happening
2:42
to
2:42
her
2:42
own
2:43
savings.
2:44
As
2:44
you
2:44
can
2:44
tell,
2:44
they
2:44
are
2:45
very
2:45
different
2:45
situations,
2:46
but
2:47
all
2:47
of
2:47
them
2:47
have
2:48
one
2:48
common
2:48
thing
2:49
in
2:49
kava
2:50
and
2:50
that
2:50
is
2:51
it's
2:51
more
2:51
common
2:51
than
2:52
people
2:52
realize.
2:53
So
2:53
if
2:53
you're
2:53
watching
2:53
on
2:54
YouTube,
2:54
I'm
2:54
going
2:54
to
2:54
tell
2:55
you
2:55
right
2:55
now.
2:55
The
2:55
chat
2:55
is
2:56
open.
2:56
You're
2:56
welcome
2:56
to
2:56
shoot
2:57
me
2:57
your
2:57
questions.
2:58
If
2:58
you're
2:58
joining
2:58
us
2:59
here
2:59
on
2:59
Clubhouse,
3:00
come
3:00
up
3:00
on
3:01
the
3:01
stage
3:01
or
3:01
pull
3:01
up
3:02
a
3:02
chair
3:02
and
3:02
just
3:02
enjoy
3:03
it.
3:03
Either
3:03
way,
3:03
I
3:04
am
3:04
so
3:04
glad
3:04
you're
3:05
here
3:05
today.
3:05
All
3:05
right,
3:05
well,
3:06
let's
3:06
get
3:06
into
3:06
it
3:07
now.
3:07
Before
3:07
we
3:07
get
3:07
started,
3:08
I
3:08
want
3:08
to
3:08
say,
3:09
like
3:09
I
3:09
mentioned,
3:09
every
3:10
Friday,
3:10
1pm
3:11
Eastern,
3:12
you
3:12
can
3:12
go
3:12
to
3:13
financiallyconfidentchristian.com
3:15
FCCLive
3:17
so
3:18
if
3:18
this
3:18
is
3:18
your
3:18
first
3:18
time
3:19
here,
3:19
welcome
3:19
to
3:19
us.
3:20
Make
3:20
sure
3:20
you
3:20
come
3:20
back
3:21
next
3:21
week
3:21
and
3:21
bring
3:21
somebody
3:22
with
3:22
you.
3:23
And
3:23
if
3:23
you're
3:23
interested
3:24
in
3:24
getting
3:24
one
3:24
of
3:24
the
3:24
things
3:25
that
3:25
we
3:25
put
3:26
in
3:26
our
3:26
private
3:26
group
3:27
is
3:27
called
3:27
the
3:28
Faithful
3:28
Money
3:28
Framework.
3:29
It's
3:29
just
3:29
eight
3:30
steps,
3:30
one
3:31
page,
3:31
no
3:31
fluff,
3:32
and
3:32
you
3:32
can
3:32
grab
3:33
that
3:33
by
3:33
joining
3:33
our
3:33
community.
3:34
And
3:34
that's@financiallyconfidentchristian.com
3:38
join.
3:39
So
3:39
that's
3:39
a
3:39
really
3:40
good
3:40
idea.
3:40
It's
3:41
where
3:41
we
3:41
have
3:41
a
3:41
lot
3:41
of
3:41
conversations
3:42
and
3:43
that
3:43
sort
3:43
of
3:43
thing.
3:43
But
3:43
let's
3:44
get
3:44
into
3:44
our
3:44
first
3:45
question
3:45
and
3:46
the
3:46
listener
3:46
wrote
3:46
this
3:47
listener
3:47
wrote,
3:48
Dear
3:48
Ralph,
3:49
I've
3:49
been
3:50
self
3:50
employed
3:50
for
3:50
about
3:51
four
3:51
years
3:51
now
3:52
and
3:52
I've
3:52
always
3:52
tried
3:53
to
3:53
do
3:53
the
3:53
right
3:53
things.
3:54
Last
3:55
year
3:55
I
3:55
claimed
3:55
a
3:55
home
3:55
office
3:56
deduction.
3:57
I
3:57
deducted
3:57
my
3:57
vehicle
3:58
mileage.
3:59
I
3:59
wrote
3:59
off
3:59
several
4:00
business
4:00
expenses
4:01
that
4:01
I
4:02
honestly
4:02
believe
4:02
were
4:03
legitimate.
4:04
But
4:04
I
4:04
was
4:04
talking
4:04
to
4:04
a
4:05
friend
4:05
recently
4:06
and
4:06
she
4:06
mentioned
4:06
that
4:07
self
4:07
employed
4:07
people
4:07
get
4:08
audited
4:08
way
4:09
more
4:09
than
4:09
regular
4:09
employees.
4:11
Now
4:11
I'm
4:11
nervous.
4:12
Did
4:13
I
4:13
make
4:13
myself
4:13
a
4:13
target?
4:18
Is
4:18
there
4:19
a
4:19
list
4:19
of
4:19
things
4:19
that
4:20
the
4:20
IRS
4:20
look
4:21
more
4:21
closely
4:21
at
4:22
on
4:22
your
4:22
return?
4:23
I'm
4:24
not
4:24
trying
4:24
to
4:24
cheat
4:24
anyone.
4:25
I
4:25
just
4:25
want
4:25
to
4:26
know
4:26
if
4:26
something
4:26
that
4:27
raised
4:27
a
4:27
red
4:27
flag
4:28
without
4:28
realizing
4:28
it.
4:29
Thank
4:29
you
4:29
for
4:30
everything
4:30
you
4:30
do.
4:30
Ralph.
4:31
Would
4:31
love
4:31
to
4:31
hear
4:31
your
4:32
thoughts.
4:33
Thank
4:33
you
4:33
so
4:33
much
4:34
for
4:34
your
4:34
question.
4:34
I
4:34
apologize
4:35
for
4:35
the
4:35
pause
4:36
there.
4:36
I
4:36
use
4:36
a
4:37
software
4:37
called
4:37
eCamm
4:38
and
4:38
I
4:38
wanted
4:38
to
4:38
make
4:38
sure
4:39
I
4:39
changed
4:39
the
4:39
scene.
4:40
So
4:40
that's
4:40
why
4:40
I
4:40
took
4:40
a
4:40
pause
4:41
up
4:41
here.
4:41
Wait
4:41
a
4:42
second.
4:42
Rob's
4:42
lost
4:42
his
4:43
mind.
4:43
But
4:43
that's
4:43
what
4:44
I
4:44
did
4:44
there.
4:44
So
4:45
I
4:45
think
4:45
it's
4:45
all
4:45
good.
4:46
But
4:46
let's
4:46
talk
4:46
about
4:46
this.
4:47
So
4:47
the
4:47
first
4:47
thing
4:48
is,
4:48
and
4:49
I
4:49
love
4:49
your
4:49
question
4:49
by
4:49
the
4:50
way,
4:50
you
4:50
acted
4:51
in
4:51
good
4:51
faith.
4:52
That's
4:53
the
4:53
first
4:53
step.
4:53
You
4:54
didn't
4:54
do
4:54
anything
4:54
that
4:54
you
4:55
thought
4:55
was
4:55
intentionally
4:56
wrong,
4:56
but
4:57
now
4:57
you're
4:57
kind
4:57
of
4:57
afraid
4:58
that
4:58
you
4:58
did
4:58
something
4:59
wrong
4:59
without
4:59
even
4:59
knowing
5:00
it.
5:01
And
5:01
you're
5:01
not
5:01
asking
5:01
me
5:02
how
5:02
to
5:02
cheat
5:02
the
5:02
irs.
5:03
If
5:03
you
5:03
had
5:03
asked
5:03
me
5:03
how
5:03
to
5:03
cheat
5:04
the
5:04
irs,
5:04
I
5:04
would
5:04
have
5:04
said
5:04
you
5:05
sorry
5:05
that's
5:05
not
5:05
the
5:05
question
5:06
for
5:06
this
5:06
show.
5:07
What
5:07
you're
5:07
really
5:08
asking
5:08
is
5:10
how
5:10
you
5:10
look
5:11
about
5:11
what
5:11
you
5:11
did.
5:12
So
5:12
here's
5:12
the
5:12
thing
5:12
I'm
5:12
going
5:12
to
5:13
tell
5:13
you.
5:13
First
5:13
thing,
5:13
you
5:13
need
5:13
to
5:13
understand
5:14
the
5:15
fact
5:15
that
5:15
this
5:15
concerns
5:16
you
5:16
is
5:16
a
5:16
good
5:17
sign.
5:18
People
5:18
who
5:18
are
5:18
trying
5:19
to
5:19
get
5:19
away
5:19
with
5:19
something
5:20
usually
5:20
aren't
5:20
the
5:21
ones
5:21
lying
5:21
awake
5:21
at
5:21
night
5:22
wondering
5:22
what's
5:22
going
5:22
to
5:23
happen
5:23
if
5:23
they
5:23
cross
5:24
the
5:24
line.
5:25
But
5:25
let
5:25
me
5:26
get
5:26
into
5:26
the
5:26
specifics
5:27
of
5:27
this.
5:28
The
5:28
IRS
5:28
doesn't
5:29
review
5:29
your
5:29
return
5:29
by
5:30
hand
5:30
right
5:30
away.
5:30
It
5:30
just
5:30
doesn't
5:31
happen.
5:31
A
5:31
lot
5:31
of
5:31
people
5:31
think
5:32
that.
5:32
There's
5:32
these
5:32
team
5:33
of
5:33
auditors
5:33
at
5:34
the
5:34
IRS
5:34
and
5:34
as
5:34
soon
5:35
as
5:35
a
5:35
return
5:35
comes
5:35
in,
5:35
they
5:36
sit
5:36
there
5:36
at
5:36
their
5:36
desk
5:36
and
5:37
they
5:37
look
5:37
over
5:37
the
5:37
stuff.
5:38
It
5:38
doesn't
5:38
work
5:38
that
5:38
way.
5:39
The
5:39
way
5:40
that
5:40
it
5:40
works,
5:40
though,
5:41
is
5:41
every
5:41
return
5:42
is
5:42
run
5:42
through
5:42
an
5:43
automated
5:43
scoring
5:44
system.
5:44
Now,
5:45
that
5:45
particular
5:45
scoring
5:46
system
5:46
is
5:46
called
5:47
the
5:47
DIF
5:47
score.
5:48
And
5:49
what
5:49
that
5:49
does
5:49
is
5:49
it
5:49
compares
5:50
your
5:50
return
5:50
against
5:51
statistical
5:51
patterns
5:52
for
5:52
people
5:53
in
5:53
your
5:53
income
5:54
and
5:54
your
5:54
occupational
5:55
bracket.
5:55
So
5:55
you
5:56
might
5:56
ask,
5:56
okay,
5:57
well,
5:57
that
5:57
makes
5:57
sense.
5:57
Now,
5:57
I
5:58
wondered
5:58
why
5:58
on
5:59
the
5:59
tax
5:59
return
6:00
they
6:00
always
6:00
ask
6:01
me,
6:01
what
6:01
is,
6:01
what
6:02
do
6:02
I
6:02
do
6:02
for
6:02
a
6:02
living?
6:03
And
6:03
that's
6:03
the
6:03
reason
6:03
they
6:04
do
6:04
that.
6:04
Here's
6:05
the
6:05
thing.
6:06
Your
6:06
return
6:06
gets
6:07
a
6:07
diff
6:07
score.
6:08
And
6:08
if
6:08
your
6:08
numbers
6:09
look
6:09
significantly
6:10
different
6:10
from
6:10
what's
6:10
normal
6:11
for
6:11
someone
6:11
in
6:11
your
6:12
situation,
6:13
that
6:13
raises
6:14
the
6:14
score.
6:15
And
6:15
then
6:15
like
6:15
anything
6:16
else,
6:16
the
6:16
higher
6:16
the
6:17
score,
6:18
the
6:18
more
6:18
likely
6:19
it's
6:19
going
6:19
to
6:19
go
6:20
to
6:20
a
6:20
human
6:20
being
6:21
to
6:21
look
6:21
at
6:21
it.
6:21
So
6:22
we're
6:22
going
6:22
to
6:22
start
6:22
there.
6:24
If
6:24
your
6:24
score
6:24
is
6:24
high,
6:25
that's
6:25
what
6:25
usually
6:26
changes
6:26
the
6:27
situation,
6:27
where
6:27
somebody's
6:28
going
6:28
to
6:28
come
6:28
and
6:28
look
6:28
at
6:28
your
6:29
return.
6:29
So
6:29
we
6:29
got
6:29
to
6:29
start
6:30
there.
6:30
Second
6:30
thing,
6:31
what
6:31
actually
6:32
gets
6:32
flagged.
6:33
Now,
6:33
unfortunately,
6:34
as
6:34
I've
6:34
read
6:34
through
6:34
your
6:35
question,
6:35
a
6:36
lot
6:36
of
6:36
the
6:36
things
6:36
you
6:36
talked
6:37
about
6:37
are
6:37
the
6:38
things
6:38
the
6:38
IRS
6:39
actually
6:39
flags.
6:40
The
6:40
home
6:41
office
6:41
deduction
6:41
is
6:42
one
6:42
of
6:42
the
6:42
most
6:42
closely
6:43
watched
6:44
deductions
6:44
because
6:44
there
6:45
has
6:45
been
6:45
so
6:45
many
6:45
people
6:46
that
6:46
have
6:46
used
6:46
it
6:46
inappropriately.
6:48
And
6:48
it's
6:48
not
6:48
because
6:48
it's
6:49
illegal.
6:49
It's
6:49
a
6:49
legal
6:50
thing
6:50
to
6:50
do.
6:51
But
6:51
it
6:52
gets
6:52
abused
6:52
constantly.
6:53
Here's
6:54
the
6:54
reason
6:54
it
6:54
gets
6:54
abused.
6:55
The
6:55
IRS
6:56
requires
6:57
that
6:57
the
6:57
space
6:58
be
6:58
used
6:58
regularly
6:59
and
6:59
exclusively
7:00
for
7:00
business.
7:01
Think
7:02
about
7:02
that
7:02
for
7:02
a
7:02
second.
7:03
Regularly
7:04
and
7:04
exclusively.
7:06
A
7:06
desk
7:06
in
7:07
your
7:07
bedroom
7:07
that
7:07
also
7:08
has
7:08
your
7:08
personal
7:08
laptop
7:09
and
7:09
your
7:09
kid's
7:09
homework
7:10
on
7:10
it
7:10
doesn't
7:11
qualify.
7:12
That's
7:12
something
7:12
a
7:12
lot
7:13
of
7:13
people
7:13
don't
7:13
understand.
7:14
Exclusive
7:14
use.
7:16
If
7:16
you've
7:16
got
7:16
a
7:17
room
7:17
that's
7:17
genuinely
7:18
dedicated,
7:19
then
7:19
you're
7:19
fine.
7:20
The
7:20
key
7:21
to
7:21
all
7:21
this
7:21
is
7:21
documentation.
7:22
The
7:22
key
7:23
to
7:23
this
7:23
is
7:23
pictures,
7:24
making
7:24
sure
7:24
you
7:24
have
7:25
those
7:25
things
7:25
in
7:25
order.
7:26
So
7:26
that's
7:26
the
7:26
first
7:27
thing
7:27
you
7:27
mentioned.
7:28
The
7:28
same
7:28
thing
7:28
goes
7:29
for
7:29
the
7:29
second
7:29
thing
7:30
you
7:30
mentioned,
7:30
which
7:30
is
7:30
vehicle
7:31
mileage.
7:32
And
7:32
you
7:32
mentioned
7:33
you
7:33
claimed
7:33
100%
7:34
of
7:34
business
7:34
use
7:35
on
7:35
a
7:35
personal
7:35
car.
7:36
I'm
7:36
going
7:36
to
7:36
tell
7:36
you
7:37
right
7:37
now,
7:37
that
7:37
is
7:38
a
7:38
huge
7:38
red
7:39
flag,
7:39
because
7:40
it's
7:40
almost
7:40
never
7:41
true.
7:42
If
7:42
you're
7:42
like
7:43
most
7:43
people,
7:43
you
7:44
drive
7:44
to
7:44
the
7:44
grocery
7:45
store,
7:46
you
7:46
run
7:46
errands.
7:47
The
7:47
IRS
7:48
knows
7:48
this,
7:49
and
7:49
that's
7:49
why
7:49
a
7:50
contemporaneous,
7:51
a
7:51
big
7:51
word,
7:51
but
7:51
I
7:51
think
7:52
it's
7:52
the
7:52
right
7:52
word
7:52
to
7:52
use.
7:53
Contemporaneous
7:54
mileage
7:55
log,
7:55
meaning
7:55
you
7:56
wrote
7:56
down
7:56
at
7:57
the
7:57
time
7:57
where
7:57
you
7:57
were
7:58
going,
7:58
and
7:59
you
7:59
got
7:59
to
7:59
do
7:59
that
7:59
as
8:00
you
8:00
go.
8:00
And
8:00
a
8:00
lot
8:00
of
8:00
people
8:00
say,
8:01
but,
8:01
Ralph,
8:01
wait
8:01
a
8:01
minute.
8:01
You're
8:02
telling
8:02
me
8:02
I
8:02
got
8:02
to
8:02
write
8:02
down
8:03
every
8:03
time
8:03
I
8:03
drive
8:04
somewhere?
8:04
Yes.
8:05
If
8:05
you
8:05
want
8:05
to
8:05
follow
8:05
the
8:06
letter
8:06
of
8:06
the
8:06
law
8:06
as
8:07
it
8:07
relates
8:07
to
8:07
the
8:07
irs,
8:08
you've
8:09
got
8:09
to
8:09
keep
8:09
a
8:10
mileage
8:10
log.
8:11
A
8:11
lot
8:11
of
8:11
people
8:11
say,
8:12
well,
8:12
you
8:12
know,
8:12
if
8:12
I
8:12
get
8:12
audited,
8:13
Ralph,
8:13
I'll
8:13
do
8:13
that
8:13
at
8:13
the
8:14
end
8:14
of
8:14
the
8:14
year.
8:15
The
8:15
problem
8:15
with
8:15
doing
8:15
at
8:16
the
8:16
end
8:16
of
8:16
the
8:16
year
8:16
is
8:16
you're
8:17
going
8:17
to
8:17
forget
8:17
stuff.
8:18
And
8:19
that's
8:19
the
8:19
thing
8:19
that
8:19
protects
8:20
you.
8:21
That's
8:21
the
8:22
issue.
8:23
But
8:23
in
8:23
a
8:23
bigger
8:23
way,
8:24
business
8:24
deductions
8:25
that
8:25
look
8:25
out
8:25
of
8:26
proportion
8:26
to
8:26
your
8:26
income
8:27
also
8:27
draw
8:28
attention.
8:29
So
8:30
you
8:30
mentioned
8:30
the
8:30
home
8:31
office.
8:31
I
8:31
think
8:31
that's
8:32
a
8:32
red
8:32
flag.
8:32
You
8:33
mentioned
8:33
the
8:33
business
8:34
use
8:34
or
8:34
your
8:34
mileage.
8:35
I
8:35
think
8:35
that's
8:35
a
8:36
red
8:36
flag.
8:37
The
8:37
other
8:37
big
8:37
red
8:38
flag,
8:38
and
8:38
this
8:38
is
8:38
the
8:39
thing
8:39
a
8:39
lot
8:39
of
8:39
people
8:39
don't
8:39
want
8:40
to
8:40
understand.
8:41
It's
8:41
all
8:41
about
8:42
proportions.
8:42
Let
8:42
me
8:42
give
8:42
you
8:43
an
8:43
example.
8:43
If
8:44
you
8:44
made
8:44
$40,000,
8:45
let's
8:46
just
8:46
say
8:46
that
8:46
was
8:46
your
8:46
gross
8:47
income
8:48
and
8:48
you
8:48
claim
8:48
$35,000
8:50
in
8:50
expenses,
8:51
that
8:52
ratio
8:52
is
8:52
going
8:53
to
8:53
raise
8:53
questions.
8:54
They're
8:54
going
8:54
to
8:55
wonder
8:55
how
8:55
you
8:55
paying
8:55
your
8:56
bills.
8:57
That
8:57
doesn't
8:57
mean
8:57
it's
8:58
wrong,
8:58
because
8:58
there
8:59
are
8:59
times
8:59
when
9:00
you
9:00
have
9:00
those
9:00
lean
9:01
years
9:01
where
9:01
the
9:01
income
9:02
is
9:02
down
9:02
or
9:03
the
9:03
expenses
9:03
up.
9:04
But
9:04
in
9:05
those
9:05
cases,
9:05
that's
9:06
when
9:06
you
9:06
need
9:06
to
9:06
have
9:06
receipts
9:07
to
9:07
back
9:07
that
9:07
up.
9:08
Here's
9:09
the
9:09
thing
9:09
you
9:09
need
9:09
to
9:09
hold
9:09
onto.
9:10
It's
9:11
all
9:11
about
9:11
documentation.
9:13
But
9:13
having
9:13
documentation
9:14
isn't
9:15
just
9:15
about
9:15
surviving
9:16
an
9:16
audit.
9:17
It's
9:17
about
9:17
being
9:18
able
9:18
to
9:18
sleep
9:19
at
9:19
night
9:19
because
9:20
you
9:20
know
9:20
exactly
9:20
what
9:21
you
9:21
claimed
9:21
and
9:21
why.
9:22
And
9:22
that's
9:22
the
9:22
goal
9:23
here.
9:23
I'm
9:23
going
9:24
to
9:24
give
9:24
you
9:24
some
9:24
information.
9:24
In
9:25
2026,
9:26
the
9:26
IRS
9:27
is
9:27
using
9:27
Better
9:27
technology
9:28
than
9:28
most
9:28
people
9:29
realize.
9:30
Guess
9:30
what
9:30
they're
9:30
using,
9:31
they're
9:31
using
9:31
AI.
9:32
AI
9:33
systems
9:34
cross
9:34
reference
9:34
your
9:35
return.
9:35
They
9:35
look
9:36
at
9:36
your
9:36
W2s,
9:37
they
9:37
look
9:37
at
9:37
your
9:37
1099s,
9:39
any
9:39
third
9:39
party
9:40
data.
9:40
If
9:41
it
9:41
doesn't
9:41
match,
9:42
guess
9:42
what?
9:42
The
9:43
system
9:43
flags
9:43
it
9:44
before
9:44
a
9:44
human
9:44
ever
9:45
sees
9:45
it.
9:45
And
9:46
that's
9:46
where
9:46
the
9:46
system
9:47
does
9:47
it.
9:47
And
9:47
then
9:47
once
9:48
the
9:48
system
9:48
says,
9:48
well,
9:48
there's
9:49
these
9:49
many
9:49
red
9:49
flags,
9:49
Ralph,
9:50
I'm
9:50
going
9:50
to
9:50
go
9:50
look
9:51
at
9:51
this
9:51
return.
9:52
That's
9:52
when
9:52
a
9:53
human
9:53
actually
9:53
takes
9:54
a
9:54
look
9:54
at
9:54
this.
9:55
A
9:55
small
9:56
income
9:56
discrepancy
9:57
that
9:57
used
9:57
to
9:57
slip
9:57
through
9:58
before
9:58
doesn't
9:58
anymore
9:59
because
9:59
these
9:59
AI
10:00
tools
10:01
are
10:01
able
10:01
to
10:02
find
10:02
these
10:02
things.
10:03
I
10:03
know.
10:03
If
10:04
you're
10:04
like
10:04
me,
10:04
use
10:04
AI
10:05
all
10:05
the
10:05
time
10:05
to
10:05
help
10:06
you
10:06
with
10:06
your
10:06
life.
10:06
Well,
10:07
guess
10:07
what?
10:07
The
10:08
irs,
10:08
state
10:09
governments,
10:10
local
10:10
taxing
10:10
authorities
10:11
are
10:11
doing
10:11
the
10:11
exact
10:12
same
10:12
thing.
10:13
So
10:13
here's
10:13
what
10:14
I
10:14
want
10:14
you
10:14
to
10:14
do
10:14
right
10:14
now.
10:15
Number
10:15
one
10:15
thing
10:15
you
10:15
got
10:15
to
10:16
do,
10:16
get
10:17
your
10:17
return.
10:18
Look
10:18
at
10:18
the
10:18
deductions
10:19
you
10:19
claimed,
10:19
and
10:20
for
10:20
each
10:20
one
10:20
of
10:21
those,
10:21
make
10:22
sure
10:22
you
10:22
have
10:22
documentation.
10:23
Now,
10:23
the
10:24
rule
10:24
says
10:25
when
10:25
you
10:25
file
10:25
your
10:26
tax
10:26
return,
10:27
you
10:27
should
10:27
have
10:27
the
10:28
documentation
10:28
ready
10:29
at
10:29
the
10:29
point
10:29
of
10:30
when
10:30
you
10:30
file
10:30
your
10:31
return,
10:31
not
10:31
afterwards,
10:32
not
10:33
when
10:33
you
10:33
get
10:33
audited
10:34
or
10:34
if
10:34
you
10:34
get
10:34
a
10:34
letter.
10:35
Technically,
10:36
IRS
10:36
code
10:36
says
10:37
you
10:37
need
10:38
to
10:38
have
10:38
that
10:38
documentation
10:39
ready
10:39
at
10:40
the
10:40
time
10:40
you
10:40
file
10:41
your
10:41
return.
10:42
So
10:42
go
10:42
check
10:43
your
10:43
documentation,
10:44
make
10:44
sure
10:44
you
10:44
have
10:44
your
10:45
receipts,
10:45
make
10:46
sure
10:46
you
10:46
have
10:46
your
10:47
records,
10:47
your
10:48
logs
10:48
of
10:48
mileage,
10:49
if
10:49
something
10:50
is
10:50
questionable.
10:51
If
10:51
you're
10:51
wondering,
10:51
you
10:52
know
10:52
what,
10:52
Ralph,
10:52
I
10:52
didn't
10:52
know
10:52
about
10:53
this
10:53
stuff.
10:53
Now's
10:54
the
10:54
time
10:54
to
10:55
consult
10:55
a
10:55
tax
10:55
professional,
10:56
not
10:57
when
10:57
a
10:57
letter
10:57
arrives.
10:59
So
10:59
what
10:59
you've
10:59
said
10:59
in
11:00
your
11:00
statement
11:00
here,
11:01
you
11:01
didn't
11:01
say
11:01
that
11:01
you're
11:01
getting
11:02
audited,
11:02
you
11:02
just
11:02
said,
11:02
I'm
11:02
worried
11:03
about
11:03
it.
11:04
So
11:04
this
11:04
is
11:04
the
11:04
time
11:04
to
11:04
go.
11:05
Make
11:05
sure
11:05
your
11:05
I's
11:06
are
11:06
dotted
11:06
and
11:07
your
11:07
T's
11:07
are
11:07
crossed
11:08
so
11:08
that
11:08
you
11:08
don't
11:08
run
11:09
into
11:09
a
11:09
problem
11:09
later.
11:09
And
11:10
if
11:10
you
11:10
think
11:10
there's
11:10
a
11:10
discrepancy,
11:11
now's
11:12
a
11:12
great
11:12
time
11:12
to
11:13
reach
11:13
out
11:13
to
11:13
someone.
11:13
You
11:14
can
11:14
certainly
11:14
reach
11:14
out
11:14
to
11:15
me.
11:15
Go
11:15
to
11:15
financiallyconfidentchristian.com
11:17
and
11:17
you'll
11:17
see
11:18
a
11:18
button
11:18
there
11:18
to
11:18
schedule
11:18
a
11:19
call
11:19
with
11:19
me,
11:19
even
11:19
a
11:20
15
11:20
minute
11:20
call,
11:21
so
11:21
I
11:21
can
11:21
give
11:21
you
11:21
an
11:22
idea
11:22
of
11:22
what's
11:22
going
11:22
on.
11:23
But
11:24
here's
11:24
what's
11:24
being
11:25
financially
11:25
confident
11:26
actually
11:26
looks
11:26
like
11:26
in
11:26
this
11:27
situation.
11:28
It
11:28
doesn't
11:29
mean
11:29
that
11:29
you
11:29
get
11:29
nervous.
11:31
I
11:31
understand
11:32
the
11:32
anxiety.
11:32
A
11:33
lot
11:33
of
11:33
people
11:33
hear
11:33
the
11:33
word
11:33
IRS
11:34
and
11:34
they
11:34
just
11:34
freak
11:35
out.
11:35
They're
11:35
like,
11:35
I
11:35
don't
11:35
even
11:35
know
11:35
what
11:36
to
11:36
do.
11:37
That's
11:37
not
11:37
what
11:37
we're
11:37
talking
11:38
about
11:38
here.
11:38
But
11:39
what
11:39
it
11:39
means
11:39
is
11:39
when
11:40
those
11:40
nerves
11:40
show
11:40
up
11:41
and
11:41
listen,
11:41
a
11:41
lot
11:42
of
11:42
people
11:42
get
11:42
nervous
11:42
when
11:42
it
11:43
comes
11:43
to
11:43
taxes.
11:44
You
11:44
got
11:44
to
11:45
have
11:45
something
11:45
to
11:45
stand
11:46
on.
11:46
You
11:46
got
11:47
to
11:47
know
11:47
what
11:47
you
11:47
claimed
11:48
and
11:49
you
11:49
got
11:49
to
11:49
know
11:49
why.
11:50
And
11:51
that's
11:51
not
11:51
rocket
11:51
science.
11:52
That's
11:52
not
11:52
that
11:52
complicated.
11:53
You
11:53
just
11:53
have
11:54
to
11:54
have
11:54
the
11:54
records
11:55
to
11:55
back
11:55
it
11:55
up.
11:56
That's
11:57
the
11:57
confidence.
11:58
You
11:58
don't
11:58
have
11:58
to
11:59
live
11:59
in
11:59
fear
11:59
of
11:59
the
11:59
IRS
12:00
if
12:00
you
12:00
have
12:01
the
12:01
records
12:01
to
12:01
back
12:01
it
12:02
up.
12:02
That's
12:03
the
12:03
confidence.
12:03
Not
12:04
bravado,
12:05
not
12:06
pretending
12:06
like
12:06
you're
12:06
some
12:07
untouchable,
12:07
like
12:08
some
12:08
gangster.
12:09
It's
12:09
knowing
12:10
that
12:10
your
12:10
house
12:10
is
12:10
in
12:11
order
12:12
so
12:12
you're
12:12
actually
12:13
asking
12:13
the
12:13
right
12:14
questions,
12:14
which
12:15
means
12:15
you're
12:15
closer
12:16
to
12:16
that
12:16
than
12:16
you
12:16
think.
12:17
So
12:18
now
12:18
I'm
12:18
going
12:18
to
12:18
ask
12:18
a
12:18
question.
12:19
If
12:19
you're
12:19
listening
12:19
to
12:19
this
12:20
live,
12:20
if
12:20
you're
12:20
catching
12:20
us
12:21
on
12:21
Facebook
12:21
or
12:22
on
12:22
Clubhouse
12:22
or
12:23
Facebook
12:23
too,
12:23
we're
12:23
on
12:23
Facebook,
12:24
LinkedIn
12:24
and
12:25
YouTube.
12:25
If
12:25
you're
12:26
self
12:26
employed,
12:26
do
12:27
you
12:27
keep
12:27
a
12:27
mileage
12:27
log?
12:28
Do
12:28
you
12:28
have
12:29
those
12:29
receipts
12:29
for
12:30
your
12:30
business
12:30
deductions?
12:31
If
12:31
you
12:31
do,
12:32
drop
12:32
it
12:32
in
12:32
the
12:32
chat.
12:32
I'd
12:32
love
12:33
to
12:33
hear
12:33
from
12:33
you.
12:34
And
12:34
then
12:34
we're
12:34
going
12:34
to
12:34
get
12:34
to
12:34
an
12:35
article
12:35
that
12:35
addresses
12:36
this
12:36
directly.
12:36
But
12:37
if
12:37
you
12:37
feel
12:38
like
12:38
contributing
12:39
to
12:39
the
12:39
show
12:39
today,
12:39
or
12:39
if
12:40
you're
12:40
watching
12:40
this
12:40
after
12:40
the
12:41
fact,
12:41
just
12:41
put
12:41
it
12:41
right
12:41
in
12:41
the
12:41
comments.
12:42
Do
12:42
you
12:42
have
12:43
receipts?
12:43
Do
12:43
you
12:44
have
12:44
that
12:44
mileage?
12:45
If
12:45
you're
12:45
self
12:45
employed,
12:46
those
12:46
are
12:46
the
12:46
things
12:47
you've
12:47
got
12:47
to
12:47
have
12:47
to
12:48
protect
12:48
yourself.
12:49
Which
12:49
leads
12:50
me
12:50
to
12:50
this.
12:51
This
12:51
email
12:52
connects
12:52
directly
12:53
to
12:53
what
12:53
Forbes
12:54
covered
12:54
earlier
12:54
this
12:54
month.
12:55
Forbes
12:55
magazine.
12:56
And
12:56
the
12:56
headline
12:57
of
12:57
that
12:57
was
12:57
simple.
12:58
It
12:58
says,
12:58
the
12:59
IRS
12:59
is
13:00
watching
13:00
more
13:00
closely
13:01
and
13:02
the
13:02
checklist
13:02
it
13:02
lays
13:02
out
13:03
is
13:03
worth
13:03
going
13:03
through.
13:03
And
13:03
that's
13:03
what
13:04
we're
13:04
going
13:04
to
13:04
do
13:04
right
13:04
now.
13:04
We're
13:04
actually
13:05
going
13:05
to
13:05
go
13:05
through
13:05
this
13:06
checklist
13:07
that
13:07
Forbes
13:08
put
13:08
out
13:08
because
13:08
I
13:08
found
13:08
it
13:09
to
13:09
be
13:09
really
13:10
airy
13:10
interesting.
13:12
Most
13:12
people
13:12
file
13:13
their
13:13
taxes
13:13
without
13:13
thinking
13:14
much
13:14
about
13:14
what
13:14
the
13:14
IRS
13:15
will
13:15
see
13:15
when
13:15
they
13:16
process
13:16
the
13:16
return.
13:17
They
13:18
assume
13:18
if
13:18
they're
13:18
doing
13:19
no,
13:19
if
13:19
they're
13:19
not
13:19
doing
13:20
anything
13:20
illegal,
13:20
they're
13:21
fine.
13:22
And
13:22
that's
13:22
mostly
13:23
true
13:24
because
13:24
there
13:24
are
13:24
patterns
13:25
that
13:25
draw
13:25
scrutiny
13:26
even
13:26
when
13:27
nothing
13:27
is
13:27
technically
13:28
wrong.
13:29
If
13:29
you
13:29
know
13:29
what
13:30
those
13:30
patterns
13:30
are,
13:31
that's
13:32
the
13:32
difference
13:32
between
13:32
filing
13:33
with
13:33
confidence
13:34
and
13:34
filing
13:35
with
13:35
anxiety.
13:36
Here's
13:36
what
13:36
the
13:37
findings
13:37
actually
13:38
show.
13:39
As
13:39
I
13:39
said
13:39
earlier,
13:40
the
13:40
IRS
13:40
is
13:41
using
13:41
much
13:42
better
13:42
technology
13:42
than
13:43
it
13:43
had
13:43
even
13:43
a
13:44
few
13:44
years
13:44
ago.
13:44
Yes,
13:45
they've
13:45
got
13:45
fewer
13:46
agents,
13:46
but
13:46
the
13:47
technology
13:47
is
13:47
making
13:47
up
13:48
the
13:48
difference.
13:49
Those
13:49
AI
13:50
assisted
13:50
systems
13:51
are
13:51
cross
13:51
referencing
13:52
your
13:52
return
13:52
against
13:53
employer
13:53
data,
13:54
against
13:54
your
13:55
bank
13:55
records,
13:56
any
13:56
third
13:56
party
13:57
reports,
13:57
and
13:58
it's
13:58
doing
13:58
it
13:58
automatically.
14:00
That
14:00
gap
14:00
between
14:01
what
14:01
you
14:01
report
14:01
and
14:01
what
14:02
the
14:02
IRS
14:02
already
14:02
has
14:03
from
14:03
those
14:03
sources
14:04
is
14:04
now
14:04
smaller
14:05
than
14:05
ever.
14:06
But
14:06
let's
14:06
talk
14:07
about
14:07
the
14:07
checklist
14:07
of
14:07
what
14:08
gets
14:08
flagged
14:08
in
14:09
2026.
14:09
This
14:10
is
14:10
right
14:10
from
14:10
the
14:10
article.
14:11
These
14:11
are
14:12
the
14:12
things
14:12
that
14:13
consistently
14:13
get
14:14
flagged.
14:14
Number
14:15
one
14:15
thing
14:15
is
14:16
income
14:16
mismatches.
14:17
They're
14:17
the
14:17
top.
14:18
If
14:18
Someone
14:19
files
14:19
a
14:19
W2
14:20
under
14:20
your
14:21
name
14:21
and
14:21
Social
14:21
Security
14:21
number
14:22
or
14:22
a
14:22
1099
14:24
and
14:24
it
14:24
doesn't
14:24
go
14:24
on
14:24
your
14:25
return,
14:25
guess
14:25
what?
14:26
Your
14:26
return
14:26
is
14:27
going
14:27
to
14:27
get
14:27
flagged.
14:28
The
14:28
system's
14:28
going
14:28
to
14:28
know
14:28
that
14:29
this
14:29
and
14:29
they're
14:30
going
14:30
to
14:30
send
14:30
you
14:30
one
14:30
of
14:30
those
14:30
friendly
14:31
notices.
14:31
Hey,
14:32
we
14:32
looked
14:32
at
14:32
your
14:32
return
14:33
and
14:33
we
14:33
noticed
14:34
you
14:34
didn't
14:34
report
14:34
this.
14:35
Now,
14:35
honestly,
14:35
usually
14:36
it
14:36
doesn't
14:36
come
14:36
out
14:37
till
14:37
about
14:37
a
14:37
year
14:38
later.
14:38
Seems
14:39
like
14:39
they're
14:39
moving
14:39
up
14:39
a
14:39
little
14:39
quicker
14:40
now
14:40
because
14:40
I'm
14:40
seeing
14:40
more
14:41
of
14:41
those
14:41
notices
14:41
now
14:41
in
14:42
my
14:42
practice.
14:43
But
14:43
that's
14:43
the
14:43
most
14:43
straightforward
14:44
trigger
14:44
and
14:45
the
14:45
most
14:45
avoidable.
14:46
So
14:46
make
14:46
sure
14:47
W2s,
14:49
1099s,
14:50
any
14:50
income
14:50
that's
14:51
reported
14:51
under
14:52
your
14:52
Social
14:52
Security
14:52
number,
14:53
make
14:53
sure
14:54
you're
14:54
putting
14:54
that
14:54
on
14:54
your
14:55
tax
14:55
return.
14:55
Here's
14:56
the
14:56
second
14:56
thing.
14:57
Self
14:57
employment
14:58
income,
14:58
which
14:58
is
14:58
exactly
14:59
what
14:59
the
14:59
listener
15:00
mentioned
15:00
today.
15:01
It
15:01
draws
15:02
more
15:02
scrutiny
15:02
than
15:03
the
15:03
W2
15:03
income
15:04
because
15:04
it's
15:05
self
15:05
reported.
15:05
Think
15:05
about
15:06
that
15:06
for
15:06
a
15:06
second.
15:06
You
15:06
got
15:07
an
15:07
employer
15:07
that's
15:07
reporting
15:08
W2
15:08
income.
15:09
You've
15:09
got
15:09
other
15:10
companies
15:10
that
15:10
are
15:10
reporting
15:10
1099s.
15:11
But
15:12
the
15:12
schedule
15:12
C
15:12
that
15:13
self
15:13
employed
15:13
small
15:14
business
15:14
person
15:15
is
15:15
all
15:15
self
15:16
employed.
15:16
It's
15:16
like
15:16
the
15:17
honor
15:17
system.
15:18
There's
15:18
no
15:18
employer
15:19
verifying
15:19
the
15:19
numbers.
15:20
And
15:20
the
15:20
IRS
15:20
knows
15:21
that.
15:22
And
15:22
because
15:22
they
15:22
know
15:22
that,
15:23
they
15:23
look
15:23
more
15:23
carefully
15:24
at
15:24
those
15:24
business
15:25
income
15:25
and
15:26
expenses.
15:27
That's
15:27
the
15:27
reason
15:27
they're
15:28
doing
15:28
it.
15:28
Here's
15:29
another
15:29
one
15:29
on
15:29
the
15:29
checklist.
15:30
They
15:30
mentioned
15:30
the
15:31
home
15:31
office
15:31
deduction.
15:32
Sounds
15:32
like
15:32
I'm
15:32
picking
15:33
on
15:33
you.
15:33
But
15:33
these
15:33
are
15:33
the
15:34
things
15:34
that
15:34
they
15:34
really
15:34
say.
15:35
It's
15:36
consistently
15:36
one
15:37
of
15:37
the
15:37
most
15:37
audited
15:38
items
15:38
on
15:38
the
15:38
return.
15:39
The
15:39
reason
15:39
that
15:40
it's
15:40
audited
15:41
is
15:41
the
15:41
legal
15:42
standard
15:42
is
15:43
strict.
15:43
As
15:44
I
15:44
said
15:44
earlier,
15:44
the
15:45
space
15:45
has
15:45
got
15:46
to
15:46
be
15:46
used
15:46
regularly
15:47
and
15:47
exclusively
15:48
for
15:49
business.
15:49
Now
15:50
they
15:50
define
15:51
regular
15:51
means
15:51
often.
15:53
Exclusively
15:54
means
15:54
nothing
15:55
personal.
15:56
And
15:56
both
15:56
of
15:56
those
15:57
conditions
15:57
have
15:57
to
15:57
be
15:57
true.
15:58
Hey,
15:58
like
15:58
I
15:58
said,
15:58
I've
15:59
got
15:59
a
15:59
grandson.
15:59
Now,
16:00
if
16:00
I
16:01
had
16:01
a
16:01
bedroom
16:01
at
16:01
my
16:02
house
16:02
that
16:02
I
16:02
claim
16:02
was
16:03
my,
16:03
quote,
16:03
business,
16:04
and
16:04
there's
16:05
a
16:05
crib
16:05
for
16:05
my
16:05
grandson,
16:06
or
16:06
there's
16:07
A
16:07
bed
16:07
for
16:07
my
16:07
grandson.
16:08
That's
16:09
not
16:09
going
16:09
to
16:09
qualify
16:10
because
16:10
it's
16:11
not
16:11
exclusively
16:12
used
16:12
for
16:13
business.
16:14
That's
16:14
where
16:14
it's
16:14
so
16:14
important.
16:15
Well,
16:15
let's
16:15
move
16:16
on
16:16
to
16:16
the
16:16
next
16:16
one
16:16
on
16:16
the
16:16
checklist,
16:17
and
16:17
that's
16:18
vehicle
16:18
expenses
16:19
without
16:19
documentation.
16:21
Again,
16:21
another
16:22
consistent
16:23
trigger.
16:24
Claiming
16:24
business
16:25
mileage
16:25
is
16:26
legitimate.
16:27
That's
16:27
fine
16:27
if
16:28
you
16:28
have
16:28
a
16:28
documented
16:29
reason.
16:29
I
16:29
want
16:29
to
16:30
see
16:30
this
16:30
customer.
16:30
I
16:31
want
16:31
to
16:31
do
16:31
this,
16:31
I
16:32
want
16:32
to
16:32
do
16:32
that.
16:32
That's
16:33
fine.
16:33
Have
16:34
that
16:34
mileage.
16:34
Look,
16:35
there
16:35
are
16:35
some
16:35
great
16:35
online
16:36
tools,
16:36
there's
16:36
some
16:37
great
16:37
apps
16:37
that
16:37
will
16:38
actually
16:38
do
16:38
that
16:39
for
16:39
you
16:39
now.
16:39
So
16:39
I
16:40
would
16:40
encourage
16:40
you
16:40
to
16:40
do
16:41
that.
16:41
But
16:42
claiming
16:42
100%
16:43
business
16:43
use
16:43
without
16:44
a
16:44
mileage
16:44
log
16:45
is
16:45
a
16:45
red
16:45
flag.
16:45
Now,
16:46
you
16:46
might
16:46
say,
16:46
ralph,
16:47
well,
16:47
wait
16:47
a
16:47
second,
16:48
I've
16:48
got
16:48
a
16:48
business
16:49
vehicle
16:49
and
16:50
I've
16:50
got
16:50
a
16:50
personal
16:50
vehicle.
16:51
I
16:51
love
16:52
that,
16:52
because
16:52
then
16:53
I
16:53
can
16:53
prove
16:53
to
16:53
the
16:54
irs,
16:54
hey,
16:54
we've
16:55
got
16:55
a
16:55
business
16:55
truck,
16:56
then
16:56
we
16:56
got
16:56
a
16:57
personal
16:57
vehicle
16:58
that
16:58
works.
16:59
But
16:59
have
16:59
that
16:59
mileage
17:00
log
17:00
have
17:01
a
17:01
calendar
17:01
where
17:01
you
17:02
went,
17:02
who
17:02
you
17:03
saw,
17:03
what
17:03
the
17:04
beginning
17:04
odometer
17:05
was,
17:05
what
17:05
the
17:05
ending
17:05
odometer
17:06
was.
17:06
So
17:07
you
17:07
don't
17:07
run
17:07
afoul
17:08
of
17:08
the
17:08
iris
17:08
when
17:09
it
17:09
comes
17:09
to
17:09
documentation.
17:10
All
17:10
the
17:10
things
17:10
we
17:10
talked
17:10
about
17:11
are
17:11
all
17:11
about
17:11
documentation.
17:12
Here's
17:13
another
17:13
red
17:13
flag,
17:14
and
17:14
that's
17:14
refundable
17:15
tax
17:15
credits.
17:16
This
17:16
is
17:16
the
17:16
kind
17:17
of
17:17
credit
17:17
where
17:17
you
17:17
actually
17:18
get
17:18
money
17:18
back,
17:19
even
17:19
if
17:19
you
17:19
owe
17:20
nothing.
17:21
These
17:21
have
17:21
come
17:22
under
17:22
significant
17:23
scrutiny
17:23
the
17:23
last
17:24
few
17:24
years
17:24
because,
17:25
honestly,
17:25
the
17:25
IRS
17:26
is
17:26
sending
17:26
out
17:27
money
17:27
over
17:27
and
17:28
above
17:28
what
17:28
they've
17:28
collected.
17:30
This
17:30
is
17:30
a
17:30
big
17:30
deal.
17:31
This
17:31
is
17:31
the
17:32
Earned
17:32
Income
17:32
Tax
17:32
Credit.
17:33
That's
17:33
one.
17:33
It's
17:34
reviewed
17:34
very
17:35
strictly.
17:35
In
17:35
fact,
17:36
what
17:36
I
17:36
have
17:36
seen
17:37
is
17:37
there
17:38
are
17:38
times
17:38
when
17:38
the
17:38
IRS
17:39
is
17:39
actually
17:39
holding
17:40
up
17:40
a
17:40
refund
17:40
and
17:41
only
17:41
issuing
17:41
a
17:41
part
17:42
of
17:42
the
17:42
refund
17:42
that
17:43
until
17:43
they
17:43
verify
17:44
Social
17:44
Security
17:44
numbers,
17:45
date
17:45
of
17:45
birth,
17:46
children,
17:46
all
17:46
that
17:47
kind
17:47
of
17:47
stuff.
17:47
There
17:48
is
17:48
a
17:48
much
17:48
stricter
17:49
standard
17:49
on
17:49
that
17:50
than
17:50
most
17:50
of
17:50
the
17:51
other
17:51
returns.
17:51
Here's
17:52
another
17:52
one
17:52
that
17:52
hit
17:52
the
17:52
list,
17:53
and
17:53
that's
17:53
cryptocurrency.
17:54
A
17:55
lot
17:55
of
17:55
people
17:55
don't
17:55
know
17:55
about
17:56
this
17:56
one.
17:56
That
17:57
is
17:57
a
17:57
growing
17:57
focus
17:58
of
17:58
this
17:59
exchanges,
17:59
where
18:00
you
18:00
take
18:00
these
18:00
cryptocurrencies
18:02
like,
18:02
I
18:02
can't
18:03
think
18:03
of
18:03
exactly.
18:03
Coinbase
18:04
is
18:04
one
18:04
of
18:04
them
18:04
that
18:05
comes
18:05
to
18:05
mind.
18:05
Robinhood's
18:06
another
18:06
one.
18:07
They
18:07
are
18:07
growing
18:08
in
18:08
the
18:08
focus.
18:09
And
18:09
now
18:09
the
18:09
exchanges,
18:11
those
18:11
companies
18:11
that
18:12
you're
18:12
working
18:12
with,
18:12
are
18:13
reporting
18:13
directly
18:14
to
18:14
the
18:14
irs.
18:15
So
18:15
if
18:15
you've
18:16
sold
18:16
or
18:16
traded
18:17
or
18:17
used
18:17
crypto
18:18
and
18:18
didn't
18:18
report
18:18
it,
18:19
this
18:19
mismatch
18:20
is
18:20
going
18:20
to
18:20
show
18:21
up.
18:21
You
18:21
Might
18:22
be
18:22
saying,
18:22
wait
18:22
a
18:22
second,
18:22
Ralph,
18:23
but
18:23
if
18:23
I
18:23
just
18:23
spent
18:23
the
18:23
money.
18:24
Well,
18:24
see,
18:24
here's
18:24
the
18:24
problem.
18:25
I
18:25
don't
18:25
want
18:25
to
18:25
go
18:26
on
18:26
a
18:26
tangent,
18:26
but
18:27
cryptocurrency
18:28
as
18:28
it
18:28
currently
18:29
stands
18:29
is
18:30
like
18:30
selling
18:30
stock.
18:31
Believe
18:31
it
18:31
or
18:31
not,
18:32
it's
18:32
a
18:32
capital
18:33
gain
18:33
issue.
18:34
So
18:34
you've
18:34
got
18:34
to
18:35
make
18:35
sure
18:35
you're
18:35
reporting
18:35
that.
18:36
One
18:36
of
18:36
the
18:36
things,
18:36
when
18:36
clients
18:37
come
18:37
in
18:37
to
18:37
me,
18:37
I
18:37
said,
18:37
hey,
18:38
do
18:38
you
18:38
have
18:38
any
18:38
crypto?
18:39
Did
18:39
you
18:39
sell
18:40
any
18:40
of
18:40
it?
18:40
Did
18:40
you
18:40
spend
18:41
any
18:41
of
18:41
it?
18:42
Any
18:42
of
18:42
those
18:42
things?
18:42
I
18:43
need
18:43
to
18:43
report
18:43
those
18:44
things.
18:44
What
18:45
the
18:45
Forbes
18:45
piece
18:46
makes
18:46
clear
18:47
is
18:47
that
18:47
none
18:47
of
18:48
this
18:48
means
18:48
you're
18:48
going
18:48
that
18:49
you're
18:49
doing
18:49
something
18:49
wrong.
18:50
It
18:50
doesn't
18:50
mean
18:50
that.
18:51
It
18:51
means
18:51
your
18:52
return
18:52
needs
18:52
to
18:52
be
18:52
able
18:53
to
18:53
tell
18:53
a
18:53
consistent
18:54
documented
18:55
story
18:55
because
18:55
that's
18:56
what
18:56
the
18:56
IRS
18:56
is
18:56
checking.
18:57
I
18:57
think
18:57
about
18:57
it
18:57
like
18:57
this.
18:58
Your
18:58
tax
18:58
return
18:59
should
18:59
stand
19:00
on
19:00
its
19:00
own.
19:01
It
19:01
should
19:01
tell
19:01
a
19:02
story.
19:02
That
19:03
story
19:03
should
19:03
be
19:03
backed
19:04
up
19:04
by
19:04
your
19:04
documentation,
19:05
by
19:05
your
19:05
records,
19:05
by
19:06
your
19:06
mileage
19:06
logic,
19:07
by
19:07
your
19:07
receipts.
19:09
That's
19:09
the
19:09
thing.
19:09
There's
19:10
a
19:10
couple
19:10
quotes
19:10
I
19:10
want
19:10
to
19:11
pick
19:11
out
19:11
on
19:11
here.
19:11
This
19:12
is
19:12
from
19:12
Kiplinger.
19:13
It
19:13
says
19:13
Schedule
19:13
C
19:14
is
19:14
a
19:14
treasure
19:14
trove
19:15
of
19:15
tax
19:15
deductions
19:16
for
19:16
self
19:16
employed
19:17
individuals.
19:17
But
19:18
it's
19:18
a
19:18
gold
19:18
mine
19:19
for
19:19
IRS
19:19
agents
19:20
who
19:20
know
19:21
from
19:21
experience
19:22
that
19:22
self
19:22
employed
19:23
people
19:23
sometimes
19:24
claim
19:24
excessive
19:24
deductions
19:25
and
19:25
don't
19:26
report
19:26
all
19:26
their
19:26
income.
19:27
Catch
19:28
what
19:28
that
19:28
just
19:28
said.
19:29
The
19:29
IRS
19:30
is
19:30
aware
19:30
of
19:31
this.
19:31
They
19:32
know
19:32
from
19:32
their
19:32
experience
19:34
that
19:34
this
19:34
is
19:34
a
19:34
place
19:34
where
19:35
they
19:35
can
19:35
go
19:35
find
19:36
money
19:36
for
19:36
the
19:36
Treasury.
19:37
Here's
19:38
another
19:38
quote.
19:38
This
19:38
is
19:38
from
19:39
a
19:39
fellow
19:39
by
19:39
the
19:39
name
19:39
of
19:40
John
19:40
Aspa.
19:40
He's
19:40
a
19:41
CPA
19:41
and
19:41
partner
19:42
at
19:42
kf.
19:44
Excuse
19:44
me,
19:44
pkf.
19:45
O'
19:45
Connor
19:46
Davies,
19:46
llc.
19:47
This
19:48
actually
19:48
comes
19:48
from
19:48
cnbc.
19:49
He
19:50
said
19:50
this.
19:50
My
19:51
best
19:51
advice
19:51
is
19:52
that
19:52
you're
19:52
only
19:52
as
19:53
good
19:53
as
19:53
your
19:53
receipts.
19:54
Well,
19:55
I
19:55
can't
19:55
disagree
19:56
with
19:56
that.
19:57
It
19:57
has
19:57
to
19:57
stand
19:57
on
19:58
its
19:58
own.
19:58
It's
19:58
got
19:58
to
19:58
have
19:59
those
19:59
receipts.
20:00
And
20:00
here's
20:00
another
20:00
quote.
20:00
It's
20:01
from
20:01
Robert
20:01
Levy,
20:02
he's
20:02
a
20:02
tax
20:02
professional.
20:03
Again
20:03
from
20:03
CNBC.
20:04
It
20:04
says
20:04
the
20:05
W2
20:05
is
20:06
much
20:06
less
20:06
likely
20:07
to
20:07
get
20:07
audited
20:07
than
20:08
a
20:08
self
20:08
employed
20:08
person.
20:08
By
20:09
far.
20:09
Absolutely
20:10
agree
20:10
with
20:10
that.
20:10
But
20:11
here's
20:11
my
20:11
take
20:11
on
20:11
this.
20:12
The
20:12
thing
20:13
that
20:13
strikes
20:13
me
20:13
about
20:13
this
20:14
checklist
20:15
is
20:15
how
20:15
many
20:15
of
20:16
the
20:16
triggers
20:16
are
20:16
documentation
20:17
problems.
20:18
Just
20:19
about
20:19
every
20:19
one
20:19
of
20:20
these
20:20
is
20:20
just
20:20
a
20:20
function
20:21
of
20:21
having
20:21
your
20:22
documentations
20:23
in
20:23
place.
20:24
They're
20:25
not
20:25
deduction
20:25
problems.
20:27
The
20:27
deduction
20:27
is
20:28
usually
20:28
perfectly
20:29
legal.
20:29
The
20:30
problem
20:30
is
20:30
that
20:30
the
20:30
person
20:31
claimed
20:31
it
20:31
without
20:31
keeping
20:32
the
20:32
receipts
20:32
or
20:33
the
20:33
logs
20:33
to
20:34
back
20:34
it.
20:34
Up.
20:35
That's
20:35
avoidable.
20:37
You
20:37
don't
20:37
want
20:37
to
20:38
do
20:38
this
20:38
after
20:38
the
20:38
audit
20:39
notice.
20:40
You
20:40
need
20:40
to
20:40
do
20:40
it
20:40
now
20:41
before
20:41
you
20:41
file.
20:42
Because
20:43
a
20:43
financially
20:44
confident
20:44
Christian
20:46
isn't
20:47
someone
20:47
who
20:47
never
20:47
gets
20:48
audited.
20:48
Boy,
20:48
I'm
20:48
tripping
20:49
up
20:49
my
20:49
words
20:49
today.
20:49
I
20:49
got
20:50
the
20:50
grandpa
20:50
in
20:50
my
20:50
brain.
20:51
Let
20:51
me
20:51
start
20:51
that
20:51
over
20:51
again.
20:52
A
20:53
financially
20:53
confident
20:54
Christian
20:54
is.
20:54
Isn't
20:55
someone
20:55
who
20:55
never
20:55
gets
20:56
audit.
20:57
You
20:57
can
20:57
be
20:57
doing
20:57
things
20:58
all
20:58
the
20:58
right
20:58
way
20:58
and
20:58
still
20:59
get
20:59
audited.
20:59
I
20:59
have
20:59
a
20:59
bunch
21:00
of
21:00
clients
21:00
that
21:00
can
21:00
tell
21:00
you
21:00
that.
21:01
But
21:01
there's
21:02
someone
21:02
who's
21:02
not
21:02
afraid
21:03
of
21:03
it
21:03
when
21:03
they
21:03
do
21:03
get
21:04
audited.
21:05
Because
21:05
if
21:05
the
21:06
IRS
21:06
ever
21:06
does
21:07
call
21:07
you,
21:08
you
21:08
can
21:08
go
21:08
pull
21:08
a
21:09
folder,
21:09
show
21:09
them
21:09
their
21:10
work,
21:10
show
21:10
them
21:11
the
21:11
documentation.
21:11
Now,
21:11
I'm
21:12
not
21:12
talking
21:12
about
21:12
perfection.
21:13
All
21:13
of
21:13
us
21:14
make
21:14
mistakes,
21:15
but
21:15
have
21:15
that
21:16
documentation.
21:17
Confidence
21:18
in
21:18
that
21:18
comes
21:19
from
21:19
preparation.
21:20
And.
21:20
And
21:20
preparation
21:21
is
21:21
available
21:21
to
21:22
every
21:22
single
21:22
person
21:23
who
21:23
is
21:23
watching
21:24
me
21:24
right
21:24
now.
21:25
So
21:25
let
21:25
me
21:25
ask
21:25
this
21:26
question
21:26
in
21:26
the
21:26
chat.
21:26
Have
21:27
you
21:27
ever
21:27
been
21:27
audited
21:28
or
21:29
do
21:29
you
21:29
have
21:29
a
21:29
deduction
21:30
you're
21:30
not
21:30
100%
21:31
sure
21:31
about?
21:32
So
21:32
happy
21:33
to
21:33
listen
21:33
to
21:33
your
21:33
comments
21:34
there.
21:34
If
21:34
not,
21:35
we're
21:35
going
21:35
to
21:35
move
21:35
on
21:35
to
21:36
our
21:36
next
21:37
question
21:38
and
21:38
this
21:38
next
21:39
question.
21:39
Let
21:39
me
21:39
just
21:40
check
21:40
and
21:40
see
21:40
we've
21:40
got
21:40
anybody
21:41
that
21:41
wants
21:41
to
21:41
make
21:41
a
21:41
comment.
21:42
I
21:42
don't
21:42
see
21:42
any
21:42
right
21:43
at
21:43
the
21:43
moment.
21:43
Well,
21:44
let's
21:44
go
21:44
ahead
21:44
and
21:44
move
21:44
on.
21:45
So
21:45
here
21:46
is
21:46
our
21:46
next
21:46
listener
21:47
question.
21:47
It's
21:47
another
21:48
listener
21:48
email.
21:49
Listener
21:49
writes
21:49
this.
21:50
Ralph,
21:50
I've
21:51
spent
21:51
the
21:51
last
21:51
three
21:52
years
21:52
planning
21:52
my
21:53
Social
21:53
Security
21:53
start
21:53
date
21:54
down
21:54
to
21:54
the
21:54
month.
21:55
I
21:56
know
21:56
exactly
21:56
what
21:57
my
21:57
benefit
21:57
will
21:57
be
21:58
at
21:58
age
21:58
67.
21:59
I've
21:59
run
22:00
the
22:00
numbers,
22:00
comparing
22:01
different
22:01
ages,
22:01
and
22:02
I'm
22:02
confident
22:02
in
22:03
my
22:03
decision.
22:03
I'm
22:03
just
22:03
going
22:04
to
22:04
pause
22:04
there
22:04
for
22:04
a
22:04
second.
22:05
That's
22:05
great.
22:06
You're
22:06
confident
22:07
in
22:07
your
22:07
decision.
22:08
That
22:08
is
22:08
a
22:09
good
22:09
place
22:09
to
22:09
be.
22:09
We
22:09
talked
22:10
about
22:10
this
22:10
last
22:10
week
22:10
on
22:10
the
22:10
show,
22:11
actually,
22:12
but
22:12
they
22:12
continue.
22:13
What
22:13
I
22:13
didn't
22:14
think
22:14
about
22:15
and
22:15
what
22:15
someone
22:15
just
22:16
mentioned
22:16
to
22:16
me
22:16
is
22:16
the
22:17
actual
22:17
process
22:18
of
22:18
filing.
22:19
They
22:19
said
22:19
there
22:20
can
22:20
be
22:20
delays,
22:21
login
22:21
issues,
22:22
and
22:22
paperwork
22:23
problems
22:23
that
22:23
push
22:23
back
22:24
your
22:24
first
22:24
check
22:25
even
22:25
if
22:25
you
22:25
do
22:25
everything
22:26
right.
22:27
Is
22:27
that
22:27
true?
22:28
And
22:28
if
22:29
it
22:29
is
22:29
true,
22:29
what
22:30
do
22:30
I
22:30
need
22:30
to
22:30
do
22:30
to
22:31
make
22:31
sure
22:31
I
22:31
actually
22:31
get
22:31
paid
22:32
on
22:32
time
22:32
when
22:33
my
22:33
date
22:33
comes?
22:34
Thanks,
22:34
Ralph.
22:35
I
22:35
would
22:35
love
22:35
to
22:35
hear
22:35
your
22:36
thoughts.
22:37
Thank
22:37
you
22:37
so
22:37
much
22:37
for
22:38
sending
22:38
in
22:38
this
22:38
question.
22:38
And
22:39
it's
22:39
one
22:39
that
22:39
a
22:39
lot
22:40
of
22:40
people
22:40
don't
22:40
think
22:40
about.
22:41
They
22:41
think
22:42
magically.
22:42
When
22:42
they
22:42
hit
22:43
that
22:43
target
22:43
age,
22:43
they're
22:44
just
22:44
going
22:44
to
22:44
pick
22:44
up
22:45
the
22:45
phone
22:45
or
22:45
go
22:45
online
22:46
and
22:46
the
22:46
Social
22:46
Security
22:47
administration
22:47
is
22:47
going
22:47
to
22:47
say,
22:48
oh
22:48
great,
22:48
we're
22:49
going
22:49
to
22:49
send
22:49
your
22:49
money
22:49
right
22:50
away.
22:51
But
22:51
it
22:51
doesn't
22:52
work
22:52
like
22:52
that
22:53
because
22:53
you've
22:54
done
22:54
the
22:54
hard
22:54
work
22:54
here,
22:55
you've
22:55
planned
22:56
carefully,
22:56
but
22:57
you're
22:57
finding
22:57
out
22:57
there's
22:58
a
22:58
whole
22:58
separate
22:58
set
22:59
of
22:59
logistics
22:59
that
22:59
you
23:00
didn't
23:00
account
23:00
for.
23:01
And
23:01
the
23:01
consequences
23:02
of
23:02
getting
23:02
it
23:02
wrong
23:03
are
23:03
real.
23:05
And
23:05
here's
23:05
the
23:05
thing,
23:07
you're
23:07
right
23:07
to
23:07
ask
23:07
this
23:08
now.
23:09
And
23:09
the
23:09
fact
23:09
that
23:09
someone
23:10
mentioned
23:10
it
23:10
to
23:10
you
23:11
tells
23:11
me
23:11
that
23:12
they
23:12
are
23:12
aware
23:12
of
23:12
this
23:13
situation
23:13
too.
23:13
They've
23:13
given
23:14
you
23:14
a
23:14
gift.
23:14
Because
23:15
this
23:15
is
23:15
one
23:15
of
23:15
those
23:15
things
23:16
that
23:16
can
23:16
catch
23:16
even
23:16
well
23:17
prepared
23:17
people
23:17
completely
23:18
off
23:18
guard.
23:19
Here's
23:20
the
23:20
problem.
23:21
Most
23:21
people
23:21
treat
23:22
Social
23:22
Security
23:22
like
23:23
a
23:23
decision
23:23
that
23:23
automatically
23:24
converts
23:24
into
23:25
a
23:25
payment.
23:25
Once
23:25
you
23:25
make
23:26
it,
23:26
you
23:27
just
23:27
think
23:27
you're
23:27
going
23:27
to
23:27
pick
23:27
up
23:27
the
23:28
phone
23:28
or
23:28
go
23:28
online
23:28
just
23:29
magically
23:29
it
23:29
happens,
23:30
you
23:30
decide,
23:30
you
23:31
file,
23:31
you
23:31
get
23:32
paid
23:32
next
23:32
month.
23:33
But
23:34
in
23:34
reality,
23:34
it
23:34
doesn't
23:35
work
23:35
like
23:35
that.
23:35
There
23:36
are
23:36
a
23:36
ton
23:37
of
23:37
steps
23:37
between
23:37
the
23:38
decision
23:38
point
23:38
and
23:39
that
23:39
first
23:39
check.
23:40
And
23:41
any
23:41
one
23:41
of
23:41
those
23:41
can
23:42
cause
23:42
a
23:42
delay.
23:43
The
23:43
biggest
23:44
one
23:44
right
23:44
now
23:44
is
23:44
account
23:45
access.
23:45
And
23:45
let's
23:46
talk
23:46
about
23:46
that
23:46
for
23:46
a
23:46
second.
23:46
Because
23:47
a
23:47
lot
23:47
of
23:47
people
23:47
are
23:47
taken
23:48
back
23:48
by
23:48
this.
23:49
The
23:49
Social
23:49
Security
23:50
administration
23:50
has
23:50
moved
23:51
online
23:51
account
23:52
access
23:52
to
23:53
login.gov
23:54
or
23:54
ID
23:54
me.
23:55
As
23:55
soon
23:55
as
23:55
you
23:55
hear
23:55
this,
23:55
you're
23:55
like,
23:56
oh,
23:56
wait
23:56
a
23:56
minute,
23:56
Ralph,
23:56
I
23:56
heard
23:57
about
23:57
this.
23:57
ID
23:58
me.
23:59
If
23:59
you
23:59
haven't
23:59
logged
24:00
into
24:00
your
24:00
My
24:00
Social
24:01
Security
24:01
account
24:01
recently,
24:02
you
24:02
might
24:03
find
24:03
that
24:03
your
24:03
old
24:03
credentials
24:04
no
24:04
longer
24:04
work.
24:05
And
24:06
here's
24:06
the
24:06
thing,
24:07
that
24:07
identity
24:07
verification,
24:08
which
24:08
I
24:08
think
24:08
is
24:09
a
24:09
good
24:09
thing,
24:10
once
24:10
you
24:10
get
24:10
through
24:10
it
24:11
one
24:11
time,
24:11
it's
24:11
not
24:11
an
24:11
issue.
24:12
The
24:12
ID
24:12
me
24:12
works
24:13
fantastic.
24:13
I've
24:14
done
24:14
it
24:14
with
24:14
myself,
24:14
I've
24:15
done
24:15
it
24:15
with
24:15
many
24:15
clients.
24:16
But
24:16
it
24:17
does
24:17
take
24:17
a
24:17
few
24:17
steps
24:18
and
24:18
the
24:19
recovery
24:19
options
24:20
can
24:20
be
24:20
tied
24:20
to
24:20
a
24:20
phone
24:21
or
24:21
email
24:21
that
24:21
you
24:22
no
24:22
longer
24:22
use.
24:22
That's
24:23
the
24:23
other
24:23
side
24:23
of
24:23
this.
24:24
And
24:25
I've
24:25
talked
24:25
to
24:25
people
24:25
who
24:25
found
24:26
out
24:26
this
24:26
week
24:27
when
24:27
they
24:27
were
24:28
trying
24:28
to
24:28
file.
24:29
This
24:29
is
24:30
the
24:30
worst
24:30
possible
24:30
time
24:31
to
24:31
discover
24:31
it.
24:32
That's
24:32
the
24:33
first
24:33
issue,
24:33
is
24:33
not
24:34
having
24:34
access
24:34
to
24:35
SSA.gov
24:36
if
24:36
you
24:37
have
24:37
Social
24:37
Security.
24:37
If
24:38
you're
24:38
getting,
24:38
if
24:38
you're
24:39
paying
24:39
into
24:39
Social
24:39
Security,
24:40
do
24:40
yourself
24:40
a
24:41
favor,
24:41
go
24:42
and
24:42
set
24:42
up
24:42
an
24:42
account
24:43
now,
24:43
get
24:43
your
24:44
I.D.
24:44
Me.
24:45
Make
24:45
sure
24:45
all
24:45
your
24:45
recovery
24:46
information
24:46
is
24:47
correct,
24:47
your
24:47
phone
24:48
number
24:48
is
24:48
correct,
24:48
your
24:49
email
24:49
address
24:49
is
24:50
correct
24:50
so
24:50
that
24:50
you
24:51
don't
24:51
run
24:51
into
24:51
this
24:51
problem
24:51
in
24:52
the
24:52
future.
24:52
That's
24:53
the
24:53
first
24:53
issue.
24:54
The
24:54
second
24:54
issue
24:55
is
24:55
your
24:55
earnings
24:56
record.
24:57
The
24:57
Social
24:57
Security
24:58
mansion
24:58
uses
24:59
your
24:59
earnings
25:00
history
25:00
to
25:00
calculate
25:01
Your
25:01
benefit.
25:01
That's
25:01
how
25:01
Social
25:02
Security
25:02
works.
25:03
If
25:03
you
25:03
don't
25:03
know
25:04
this.
25:04
Basically
25:05
they
25:05
look
25:05
at
25:05
your
25:05
lifetime
25:06
earnings.
25:07
That's
25:07
what
25:07
determines
25:08
how
25:08
much
25:08
you
25:08
collect
25:08
in
25:09
Social
25:09
Security.
25:10
The
25:10
problem
25:10
is
25:10
most
25:11
people
25:11
never
25:11
look
25:11
at
25:11
that.
25:12
And
25:13
there
25:13
can
25:13
be
25:13
errors,
25:14
there
25:14
can
25:14
be
25:15
years
25:15
with
25:15
missing
25:15
wages.
25:16
There
25:16
could
25:17
be
25:17
self
25:17
employment
25:17
income
25:18
that
25:18
wasn't
25:18
posted
25:19
correctly.
25:20
Here's
25:20
a
25:20
big
25:21
one.
25:21
For
25:21
people
25:21
who
25:21
have
25:22
been
25:22
married,
25:23
a
25:23
name
25:23
change
25:24
can
25:24
cause
25:24
a
25:24
mismatch
25:25
as
25:25
well.
25:25
You
25:25
might
25:25
not
25:26
get
25:26
credit
25:27
for
25:27
the
25:27
years
25:27
that
25:27
you
25:28
paid
25:28
under
25:28
a
25:28
different
25:29
name.
25:30
And
25:30
here's
25:30
the
25:30
issue.
25:31
Correcting
25:32
an
25:32
earnings
25:32
record
25:33
takes
25:33
time.
25:34
It's
25:34
not
25:34
something
25:35
magical.
25:35
Let's
25:35
snap
25:35
our
25:36
fingers.
25:36
It's
25:36
going
25:36
to
25:36
happen.
25:37
If
25:37
you
25:38
find
25:38
a
25:38
problem
25:39
the
25:39
month
25:39
you're
25:40
trying
25:40
to
25:40
file,
25:41
it
25:41
might
25:41
not
25:41
get
25:41
fixed
25:42
before
25:42
your
25:42
start
25:42
date,
25:42
friends,
25:43
it
25:43
might
25:43
not
25:43
get
25:43
fixed
25:44
for
25:44
six
25:44
to
25:44
eight
25:44
months.
25:46
And
25:46
here's
25:46
the
25:46
practical
25:47
rule
25:47
that
25:47
Kiplinger
25:47
published
25:48
recently.
25:48
And
25:49
I
25:49
think
25:49
everyone
25:49
approaching
25:50
retirement
25:50
needs
25:50
to
25:50
hear,
25:51
you
25:51
gotta
25:52
start
25:52
this
25:52
filing
25:53
process
25:53
and
25:53
listen
25:54
to
25:54
me
25:54
on
25:54
this.
25:54
This
25:54
is
25:55
super
25:55
important.
25:56
Start
25:57
the
25:57
filing
25:57
process
25:58
four
25:58
months
25:59
before
25:59
you
25:59
want
25:59
benefits
26:00
to
26:00
begin.
26:01
Four
26:01
months.
26:02
Not
26:03
30
26:03
days,
26:04
not
26:04
two
26:04
weeks.
26:05
Four
26:05
months.
26:06
That's
26:06
how
26:07
much
26:07
of
26:07
a
26:07
buffer
26:07
you
26:07
need
26:08
to
26:08
handle
26:08
a
26:08
login
26:09
problem.
26:09
If
26:09
there's
26:10
an
26:10
earnings
26:10
issue,
26:11
maybe
26:11
there's
26:12
a
26:12
direct
26:12
deposit
26:12
snag
26:13
or,
26:13
or
26:13
any
26:14
other
26:14
paperwork
26:14
complication
26:15
without
26:16
it
26:16
affecting
26:16
your
26:16
first
26:17
payment.
26:18
And
26:18
here's
26:18
something
26:18
a
26:18
lot
26:18
of
26:19
people
26:19
don't
26:19
know.
26:19
The
26:20
Social
26:20
Security
26:20
Administration
26:21
allows
26:21
you
26:21
to
26:22
apply
26:22
for
26:22
up
26:22
to
26:22
four
26:23
months
26:23
early.
26:24
Even
26:24
if
26:24
so,
26:25
for
26:25
example,
26:25
if
26:25
you
26:25
say
26:26
I
26:26
don't
26:26
qualify
26:27
for
26:27
full
26:27
retirement
26:28
benefits
26:28
till
26:29
age
26:29
67,
26:30
well,
26:30
the
26:31
Social
26:31
Security
26:31
administration
26:31
will
26:32
let
26:32
you
26:32
actually
26:32
start
26:33
that
26:33
filing
26:34
at
26:34
age
26:34
66
26:36
plus.
26:37
What'd
26:37
that
26:37
be?
26:37
Eight
26:38
months.
26:38
So
26:39
you
26:39
can
26:39
do
26:39
that.
26:40
They'll
26:40
give
26:40
you
26:40
that
26:40
window.
26:41
Here's
26:42
one
26:42
more
26:42
thing
26:42
you
26:42
need
26:42
to
26:42
understand.
26:43
If
26:44
you
26:44
have
26:44
spousal
26:45
or
26:45
survivor
26:46
benefits
26:46
involved
26:47
or
26:47
if
26:47
you
26:48
had
26:48
self
26:48
employment
26:49
tax
26:49
in
26:49
those
26:49
years
26:50
or
26:50
maybe
26:50
you
26:51
had
26:51
a
26:51
period
26:51
where
26:51
you're
26:51
working
26:52
abroad.
26:53
Those
26:53
situations
26:54
actually
26:54
make
26:54
it
26:55
more
26:55
complex.
26:56
If
26:56
you
26:57
have
26:57
a
26:57
very
26:57
simple
26:58
filing
26:58
situation,
26:59
you're
26:59
going
27:00
to
27:00
need
27:00
less
27:00
time.
27:01
But
27:01
even
27:02
a
27:02
straightforward
27:03
single
27:03
person
27:03
claiming
27:04
can
27:04
hit
27:05
an
27:05
unexpected
27:05
friction
27:06
deduction.
27:07
So
27:07
build
27:07
in
27:08
that
27:08
buffer
27:10
and
27:10
I
27:10
hear
27:10
what
27:10
you're
27:10
saying.
27:12
This
27:12
listener
27:12
spent
27:13
three
27:13
years
27:13
building
27:13
a
27:14
strategy
27:15
that's
27:15
real
27:16
work.
27:17
But
27:17
being
27:17
financially
27:18
confident
27:18
means
27:19
finishing
27:19
the
27:19
job.
27:20
And
27:20
that
27:21
job
27:21
unfortunately
27:22
includes
27:22
the
27:22
logistics
27:23
of
27:23
this.
27:24
Just
27:24
knowing
27:25
your
27:25
numbers
27:25
isn't
27:25
enough
27:26
if
27:26
you
27:27
can't
27:27
file
27:27
on
27:27
time.
27:28
That
27:29
four
27:29
month
27:29
window
27:30
is
27:30
how
27:30
you
27:30
protect
27:30
everything
27:31
you
27:31
built.
27:31
So
27:32
do
27:32
the
27:32
strategy
27:33
work
27:33
like
27:33
you
27:33
said,
27:34
but
27:34
don't
27:34
forget
27:34
to
27:34
do
27:35
the
27:35
logistics
27:35
work
27:36
as
27:36
well.
27:36
That's
27:36
how
27:36
you
27:37
cross
27:37
that
27:37
finish
27:38
line
27:38
the
27:38
way
27:38
that
27:39
you
27:39
intended.
27:40
So
27:40
let
27:40
me
27:40
ask
27:40
the
27:41
chat
27:41
now
27:41
if
27:41
you're
27:41
listening
27:42
to
27:42
this
27:42
after
27:42
the
27:42
fact,
27:43
have
27:43
you
27:43
ever
27:43
checked
27:44
your
27:44
my
27:44
Social
27:44
Security
27:45
account?
27:45
Were
27:46
you
27:46
able
27:46
to
27:46
access
27:46
it?
27:47
Did
27:47
you
27:47
get
27:47
the
27:47
information
27:48
you
27:48
were
27:48
looking
27:48
for?
27:49
It's
27:49
super
27:49
important.
27:51
Do
27:51
you
27:51
know
27:51
what
27:51
your
27:52
earnings
27:52
record
27:53
shows?
27:54
It's
27:54
really
27:55
important
27:55
that
27:55
you
27:55
do
27:55
that.
27:57
And
27:57
we
27:57
found
27:57
an
27:57
article
27:58
about
27:58
this
27:58
as
27:58
well.
27:58
This
27:59
email
27:59
connects
27:59
directly
28:00
to
28:00
what
28:00
I
28:00
mentioned
28:00
a
28:00
little
28:00
while
28:01
ago,
28:01
a
28:01
Kiplinger's
28:02
article
28:03
that
28:03
was
28:03
covered
28:03
earlier
28:03
this
28:04
month.
28:04
And
28:05
the
28:05
story
28:05
they
28:05
open
28:05
up
28:06
with.
28:06
One
28:06
I
28:06
think
28:06
a
28:06
lot
28:07
of
28:07
people
28:07
will
28:07
recognize
28:08
people
28:09
who
28:09
plan
28:09
carefully
28:10
for
28:10
retirement
28:10
but
28:10
treated
28:11
Social
28:11
Security
28:11
following
28:12
itself
28:12
as
28:12
an
28:13
afterthought.
28:14
The
28:14
math
28:15
was
28:15
right.
28:15
You're
28:16
right
28:16
and
28:16
you're
28:16
doing
28:16
it.
28:17
Your
28:17
timing's
28:17
right.
28:18
And
28:18
then
28:18
something
28:19
technically
28:19
went
28:19
wrong
28:20
at
28:20
the
28:20
worst
28:21
possible
28:21
moment
28:22
and
28:22
your
28:22
first
28:23
payment
28:23
was
28:23
delayed.
28:23
Because
28:24
what
28:24
you
28:24
got
28:24
to
28:24
understand,
28:25
a
28:25
lot
28:25
of
28:25
people
28:25
going
28:25
into
28:26
Social
28:26
Security,
28:27
they
28:27
are
28:27
banking
28:28
on
28:28
that
28:28
income.
28:29
They've
28:29
got
28:29
bills
28:30
to
28:30
pay.
28:31
That's
28:31
the
28:31
issue.
28:31
That's
28:32
why
28:32
you
28:32
got
28:32
to
28:32
plan
28:32
this
28:33
ahead
28:33
of
28:33
time.
28:34
There
28:34
was
28:34
a
28:34
financial
28:34
advisor
28:35
writing
28:35
for
28:35
Kiplinger.
28:36
He
28:36
described
28:36
a
28:36
client
28:37
well
28:37
prepared.
28:38
This
28:38
client
28:38
had
28:38
spreadsheets,
28:39
had
28:40
confirmed
28:40
their
28:40
strategy.
28:41
And
28:41
he
28:41
discovered
28:42
the
28:42
week
28:42
he
28:42
planned
28:42
to
28:43
file
28:43
that
28:43
he
28:43
was
28:43
locked
28:44
out
28:44
of
28:44
his
28:44
Social
28:44
Security
28:44
account.
28:45
Like
28:45
I
28:45
talked
28:45
about,
28:45
that
28:46
ID
28:46
me
28:46
issue,
28:47
and
28:48
he
28:48
was
28:48
about
28:48
to
28:48
board
28:48
a
28:49
flight.
28:49
His
28:49
login
28:50
credentials
28:50
were
28:50
tied
28:51
to
28:51
a
28:51
phone
28:51
that
28:51
he
28:51
replaced
28:52
years
28:52
earlier.
28:53
His
28:53
recovery
28:54
options
28:54
didn't
28:54
work
28:54
because
28:55
he
28:55
didn't
28:55
have
28:55
access
28:55
to
28:55
those
28:56
emails
28:56
anymore.
28:57
And,
28:57
and
28:57
he
28:57
couldn't
28:58
access
28:58
his
28:58
account.
28:59
He
28:59
couldn't
28:59
even
29:00
estimate
29:00
his
29:00
estimated
29:01
benefits
29:01
and
29:01
he
29:02
couldn't
29:02
file.
29:03
And
29:03
unfortunately,
29:04
that's
29:04
not
29:04
a
29:04
rare
29:05
situation.
29:06
It's
29:06
what
29:06
happens
29:07
when
29:07
people
29:07
treat
29:07
the
29:07
filing
29:08
process
29:08
as
29:09
an
29:09
administrative
29:09
checkbox
29:10
instead
29:11
of
29:11
its
29:11
own
29:12
planning
29:12
step.
29:13
Now,
29:13
this
29:13
piece
29:14
lays
29:14
out
29:14
seven
29:14
steps
29:15
to
29:15
avoid
29:15
that
29:16
problem,
29:17
the
29:17
ones
29:17
most
29:18
people
29:18
skip.
29:18
First
29:19
thing,
29:19
like
29:19
I
29:19
said
29:20
earlier,
29:20
the
29:20
first
29:20
thing
29:20
you
29:21
want
29:21
to
29:21
do
29:21
is
29:21
log
29:21
into
29:22
your
29:22
my
29:22
Social
29:22
Security
29:23
account
29:23
right
29:23
now,
29:24
not
29:24
when
29:25
you're
29:25
about
29:25
to
29:25
file
29:26
right
29:26
now.
29:27
Create
29:27
it
29:27
as
29:28
if
29:28
you
29:28
hadn't
29:28
already.
29:29
If
29:29
you
29:29
don't
29:29
have
29:29
an
29:29
account,
29:30
go
29:30
ahead
29:30
and
29:30
create
29:30
one.
29:31
Then
29:32
do
29:32
this
29:32
log
29:33
in
29:33
a
29:33
second
29:33
time
29:33
a
29:33
week
29:34
later
29:34
just
29:34
to
29:35
confirm
29:35
you
29:35
have
29:35
access.
29:35
Make
29:36
sure
29:36
everything
29:36
is
29:36
working
29:37
and
29:37
you
29:37
don't
29:38
have
29:38
to
29:38
wait
29:38
till
29:38
you're
29:38
close
29:38
to
29:39
retirement
29:39
age
29:39
to
29:39
do
29:40
that.
29:40
You
29:40
can
29:40
do
29:40
it
29:40
whenever
29:41
you
29:41
Want.
29:41
Here's
29:42
the
29:42
second
29:42
thing
29:42
I'm
29:42
going
29:42
to
29:42
encourage
29:43
you
29:43
to
29:43
do.
29:43
Make
29:44
sure
29:44
your
29:44
recovery
29:45
email
29:45
and
29:45
your
29:45
phone
29:46
number
29:46
are
29:46
current.
29:47
Unfortunately,
29:48
people
29:48
change
29:48
email
29:48
addresses
29:49
and
29:49
people
29:49
change
29:50
phone
29:50
numbers.
29:51
So
29:51
make
29:52
sure
29:52
you've
29:52
got
29:52
those
29:52
things
29:53
in
29:53
order
29:53
so
29:53
you
29:54
don't
29:54
run
29:54
yourself
29:54
into
29:54
a
29:55
problem.
29:56
Save
29:56
those
29:56
backup
29:57
codes,
29:57
put
29:57
them
29:58
secure
29:58
somewhere
29:58
else.
29:59
The
30:00
third
30:00
thing
30:00
you
30:00
want
30:00
to
30:00
do
30:01
is
30:01
make
30:01
sure
30:01
you
30:02
check
30:02
your
30:02
earnings
30:03
records.
30:03
Now,
30:03
you
30:04
don't
30:04
have
30:04
to
30:04
audit
30:04
50
30:05
years
30:05
of
30:05
work
30:05
history,
30:06
but
30:07
just
30:07
look
30:07
for
30:07
obvious
30:07
red
30:08
flags.
30:08
Maybe
30:08
there's
30:09
a
30:09
year
30:09
that
30:09
shows
30:09
zero
30:10
income
30:10
at
30:10
all
30:10
and
30:10
you're
30:11
like,
30:11
wait
30:11
a
30:11
minute,
30:11
Ralph,
30:11
I
30:11
know
30:12
I
30:12
was
30:12
working.
30:13
Or
30:13
maybe
30:13
there's
30:14
a
30:14
year
30:14
that's
30:14
dramatically
30:15
lower
30:15
than
30:15
the
30:15
ones
30:16
around
30:16
it.
30:17
If
30:17
something
30:17
is
30:18
wrong,
30:18
you're
30:19
going
30:19
to
30:19
have
30:19
to
30:19
go
30:19
get
30:19
your
30:19
tax
30:20
returns.
30:20
You're
30:20
going
30:20
to
30:20
go
30:20
get
30:21
copies
30:21
of
30:21
your
30:21
W2s
30:22
from
30:22
that
30:22
year
30:23
and
30:23
contact
30:23
the
30:23
Social
30:24
Security
30:24
Administration.
30:24
Now
30:25
this
30:25
is
30:25
where
30:25
a
30:25
lot
30:25
of
30:26
people
30:26
get
30:26
in
30:26
trouble
30:27
because
30:27
they'll
30:27
say
30:28
to
30:28
me,
30:28
wait
30:28
a
30:28
minute,
30:28
Ralph,
30:28
you
30:29
said
30:29
I
30:29
only
30:29
have
30:29
to
30:30
keep
30:30
seven
30:30
to
30:31
10
30:31
years
30:31
of
30:31
tax
30:31
returns.
30:32
Yeah,
30:33
this
30:33
is
30:33
where
30:33
that
30:33
might
30:34
be
30:34
a
30:34
bad
30:34
advice
30:35
because
30:35
if
30:36
you
30:36
find
30:36
out
30:36
that
30:37
your
30:37
records
30:37
are
30:37
missing,
30:38
and
30:38
that's
30:38
why
30:38
I
30:38
encourage
30:39
even
30:39
young
30:40
people,
30:40
start
30:41
looking
30:41
at
30:41
your
30:42
Social
30:42
Security
30:42
earnings
30:43
records
30:43
or
30:44
right
30:44
away,
30:45
check
30:45
it
30:45
every
30:45
year.
30:46
I
30:46
don't
30:46
think
30:47
you
30:47
need
30:47
to
30:47
go
30:47
in
30:47
here
30:47
multiple
30:47
times
30:48
here,
30:48
but
30:48
check
30:48
it
30:48
once
30:48
a
30:48
year.
30:49
Make
30:49
sure
30:49
your
30:49
tax
30:50
information
30:50
from
30:50
the
30:51
prior
30:51
year
30:51
is
30:51
posted.
30:52
That
30:52
way
30:52
you're
30:53
not
30:53
waiting
30:53
till
30:54
40,
30:54
50
30:54
years
30:55
down
30:55
the
30:55
road.
30:55
Now,
30:55
of
30:56
course,
30:56
some
30:56
people
30:56
would
30:56
say
30:56
Social
30:57
Security
30:57
is
30:57
not
30:57
going
30:57
to
30:57
be
30:57
around.
30:58
I
30:58
actually
30:58
think
30:58
it
30:58
will
30:58
be.
30:59
But
30:59
do
31:00
that
31:00
right
31:00
away
31:01
if
31:01
you
31:01
find
31:02
errors
31:02
in
31:02
your
31:02
record.
31:03
The
31:03
problem
31:04
with
31:04
that
31:04
is
31:04
it
31:04
can
31:04
mean
31:05
you
31:05
get
31:05
lower
31:05
benefits.
31:07
Another
31:07
thing
31:08
I
31:08
would
31:08
encourage
31:08
you
31:08
to
31:08
do
31:08
is
31:09
build
31:09
what
31:09
they
31:09
called
31:10
in
31:10
this
31:10
article
31:10
a
31:10
claiming
31:11
kit.
31:11
And
31:11
I
31:11
think
31:12
this
31:12
is
31:12
a
31:12
great
31:12
idea.
31:12
Just
31:13
get
31:13
a
31:13
folder,
31:14
whether
31:14
that
31:14
be
31:14
physical
31:15
or
31:15
digital,
31:16
with
31:16
your
31:16
Social
31:16
Security
31:17
card.
31:17
Anytime
31:18
you've
31:18
been
31:18
married
31:19
or
31:19
divorced,
31:19
put
31:19
those
31:20
in
31:20
there
31:20
as
31:20
well.
31:20
Put
31:21
your
31:21
banking
31:21
information
31:22
for
31:22
a
31:22
direct
31:22
deposit
31:23
and
31:23
then
31:24
a
31:24
one
31:24
page
31:24
summary
31:24
of
31:25
your
31:25
plan.
31:26
It's
31:26
not
31:26
like
31:26
you're
31:27
trying
31:27
to
31:27
become
31:27
your
31:27
own
31:27
Social
31:28
Security
31:28
office.
31:29
You
31:29
just
31:29
want
31:30
to
31:30
make
31:30
sure
31:30
you're
31:30
not
31:30
scrambling
31:31
for
31:31
paperwork
31:32
on
31:32
filing
31:32
day.
31:33
And
31:33
as
31:33
I
31:34
said
31:34
earlier,
31:34
and
31:34
this
31:34
article
31:35
nails
31:35
it
31:35
too,
31:36
use
31:36
that
31:36
four
31:37
month
31:37
window.
31:38
Since
31:38
they
31:38
allow
31:39
you
31:39
to
31:39
apply
31:39
up
31:39
to
31:39
four
31:40
months
31:40
ahead
31:40
of
31:40
time,
31:40
go
31:41
ahead
31:41
and
31:41
do
31:41
that.
31:42
Because
31:43
when
31:43
you
31:43
fire
31:43
early,
31:43
it
31:44
doesn't
31:44
mean
31:44
your
31:44
benefits
31:44
start
31:45
early.
31:45
They're
31:45
going
31:45
to
31:45
give
31:45
you
31:46
a
31:46
targeted
31:46
date,
31:46
even
31:47
if
31:47
you're
31:47
filing
31:47
early.
31:48
But
31:48
that
31:48
allows
31:49
you
31:49
to
31:49
make
31:49
sure
31:49
you've
31:49
got
31:50
all
31:50
your
31:50
ducks
31:50
in
31:50
order
31:51
so
31:51
you
31:51
don't
31:52
have
31:52
an
31:52
issue.
31:53
And
31:53
I
31:53
got
31:53
a
31:53
couple
31:53
quotes
31:54
here,
31:54
too.
31:54
One
31:55
of
31:55
the
31:55
Kiplinger
31:55
readers
31:56
described
31:56
by
31:56
advisor
31:57
Ray
31:57
Harris
31:58
MBA
31:58
said
31:58
this
31:59
My
31:59
plan
31:59
is
31:59
solid,
32:00
but
32:00
I'm
32:00
locked
32:01
out
32:01
of
32:01
my
32:01
Social
32:01
Security
32:02
account.
32:02
I
32:03
can't
32:03
get
32:03
my
32:03
estimate.
32:04
And
32:04
Ray,
32:04
we're
32:04
boarding
32:05
in
32:05
two
32:05
hours.
32:05
That's
32:05
where
32:05
this
32:06
actual
32:06
story
32:06
came
32:06
from.
32:08
Now
32:08
another
32:08
one
32:08
says
32:09
Social
32:09
Security
32:09
isn't
32:09
only
32:10
a
32:10
math
32:10
problem,
32:10
it's
32:11
also
32:11
a
32:11
logistics
32:12
problem.
32:12
That
32:12
is
32:12
so
32:13
true.
32:13
And
32:14
a
32:14
great
32:14
claiming
32:15
strategy
32:15
is
32:15
like
32:15
a
32:15
great
32:16
itinerary.
32:17
And
32:17
this
32:17
is
32:17
why
32:17
I
32:17
think
32:17
this
32:18
is
32:18
really
32:18
kind
32:18
of
32:18
an
32:18
interesting
32:19
way
32:19
they
32:19
put
32:19
this
32:19
together
32:20
in
32:20
the
32:20
article.
32:21
A
32:21
great
32:21
claiming
32:22
strategy
32:22
is
32:22
like
32:23
a
32:23
great
32:23
itinerary.
32:24
It
32:24
looks
32:25
perfect
32:25
on
32:25
paper
32:26
until
32:26
you
32:26
realize
32:27
your
32:27
passport's
32:28
expired.
32:28
Now,
32:28
if
32:28
you've
32:29
ever
32:29
had
32:29
that
32:29
circumstance,
32:29
I
32:30
haven't
32:30
personally,
32:30
but
32:30
I've
32:30
heard
32:31
of
32:31
people
32:31
doing
32:31
it
32:32
or
32:32
your
32:32
login
32:32
doesn't
32:33
work
32:33
or
32:34
that
32:34
one
32:34
document
32:34
you
32:35
need
32:35
is
32:35
in
32:35
a
32:35
safety
32:36
deposit
32:36
box
32:36
you
32:36
can't
32:37
access.
32:38
Well,
32:38
here's
32:39
my
32:39
take
32:39
on
32:39
this
32:39
whole
32:40
thing.
32:41
The
32:41
strategy
32:41
work
32:42
and
32:42
the
32:42
logistics
32:43
work
32:43
are
32:43
both
32:44
real.
32:44
You
32:44
got
32:44
to
32:44
do
32:44
both.
32:44
You
32:45
got
32:45
to
32:45
make
32:45
sure
32:45
this
32:45
is
32:45
the
32:45
right
32:46
time
32:46
to
32:46
file,
32:46
which
32:46
is
32:47
what
32:47
we
32:47
talked
32:47
about
32:47
last
32:47
week.
32:48
So
32:48
if
32:48
you
32:48
missed
32:48
last
32:48
week's
32:49
show
32:49
about
32:49
the
32:50
perfect
32:50
age
32:50
to
32:51
file,
32:51
go
32:51
check
32:52
that
32:52
out.
32:52
You
32:52
can
32:52
find
32:52
all
32:52
of
32:53
our
32:53
episodes@financiallyconfidentchristian.com
32:56
so
32:56
that's
32:56
piece
32:56
A.
32:57
Piece
32:57
B
32:58
is
32:58
the
32:58
logistics
32:59
of
32:59
this.
33:00
People
33:00
spend
33:01
years
33:01
on
33:01
the
33:02
strategy
33:02
and
33:03
they
33:03
spend
33:03
two
33:03
minutes
33:04
on
33:04
the
33:04
logistics.
33:05
Those
33:06
two
33:06
minutes
33:06
can
33:06
cost
33:07
you
33:07
weeks
33:07
of
33:07
income
33:08
if
33:08
something
33:08
goes
33:09
sideways.
33:10
That's
33:10
the
33:10
reason
33:11
they
33:11
recommend
33:11
that
33:12
4
33:12
month
33:12
window
33:12
for
33:13
exactly
33:13
that.
33:14
But
33:14
let's
33:15
stick
33:15
into
33:15
why
33:15
this
33:16
is
33:16
financially
33:17
confident,
33:17
Christian,
33:18
why
33:18
this
33:18
is
33:18
important.
33:19
Becoming
33:20
financially
33:20
confident
33:20
with
33:21
Social
33:21
Security
33:22
isn't
33:22
just
33:22
about
33:23
picking
33:23
the
33:23
right
33:23
age
33:24
to
33:24
claim.
33:25
It's
33:25
about
33:25
making
33:26
sure
33:26
that
33:26
the
33:26
follow
33:27
through
33:27
happens.
33:28
And
33:29
people
33:29
who
33:29
get
33:29
this
33:29
right
33:30
aren't
33:30
smarter
33:30
than
33:30
other
33:31
people.
33:31
They're
33:32
just
33:32
planning
33:32
the
33:32
logistics.
33:33
They're
33:33
starting
33:33
early.
33:34
They
33:34
logged
33:35
in
33:35
before
33:35
they
33:35
needed
33:36
to.
33:36
They
33:36
built
33:37
that
33:37
folder
33:37
before
33:37
the
33:38
deadline.
33:39
Confidence
33:39
here
33:39
is
33:40
just
33:40
preparation
33:41
with
33:41
a
33:41
calendar
33:42
attached.
33:43
And
33:43
I
33:43
think
33:43
this
33:43
is
33:44
a
33:44
really
33:44
important
33:44
question
33:44
because
33:45
a
33:45
lot
33:45
of
33:45
people
33:45
don't
33:46
think
33:46
about
33:46
this.
33:46
They
33:47
say,
33:47
well,
33:47
Ralph,
33:47
I've
33:47
been
33:47
working
33:48
for
33:48
50
33:48
years.
33:48
I'm
33:49
ready
33:49
to
33:49
claim
33:49
my
33:49
benefits
33:50
now.
33:50
How
33:50
do
33:50
I
33:51
make
33:51
this
33:51
happen?
33:52
So
33:53
if
33:53
you're
33:53
planning
33:54
to
33:54
File
33:55
for
33:55
Social
33:55
Security.
33:56
Make
33:56
sure
33:56
you
33:56
take
33:57
advantage
33:57
of
33:57
this.
33:57
Do
33:58
that
33:58
four
33:58
month
33:58
window.
33:59
It's
33:59
really
33:59
a
34:00
smart
34:00
thing
34:00
to
34:00
do.
34:00
Now
34:00
let
34:01
me
34:01
take
34:01
a
34:01
look
34:01
at
34:01
the
34:01
chat,
34:02
see
34:02
if
34:02
we've
34:02
got
34:02
any
34:03
comments.
34:03
We've
34:04
had
34:04
a
34:04
couple
34:04
people
34:04
popping
34:05
in
34:05
and
34:05
out.
34:05
Thank
34:05
you
34:05
for
34:06
doing
34:06
that.
34:06
But
34:07
let's
34:07
go
34:07
ahead
34:07
and
34:07
move
34:07
to
34:08
our
34:08
third
34:09
listener
34:10
question.
34:10
I'm
34:10
going
34:10
to
34:11
take
34:11
a
34:11
sip
34:11
of
34:12
tea
34:12
here
34:12
because
34:13
I'm
34:13
a
34:13
little
34:13
bit
34:13
dry
34:14
today.
34:16
All
34:17
right,
34:17
so
34:17
this
34:17
is
34:17
another
34:18
listener
34:18
email,
34:19
and
34:20
this
34:20
one
34:20
writes,
34:20
this
34:21
says,
34:21
dear
34:21
Ralph,
34:22
my
34:22
daughter
34:22
is
34:23
34
34:24
and
34:24
she's
34:24
been
34:24
going
34:24
through
34:25
a
34:25
really
34:25
hard
34:25
stretch
34:26
financially.
34:27
Rent
34:27
went
34:27
up,
34:28
her
34:28
hours
34:28
got
34:28
cut
34:29
at
34:29
work,
34:29
and
34:30
she
34:30
ended
34:30
up
34:30
pulling
34:30
money
34:31
out
34:31
of
34:31
her
34:31
401k
34:32
to
34:32
cover
34:32
the
34:32
gap.
34:34
She
34:34
said
34:34
she
34:34
had
34:34
to
34:35
do
34:35
it
34:35
because
34:35
there
34:35
was
34:36
nothing
34:36
else
34:36
to
34:36
do.
34:37
And
34:38
watching
34:38
her
34:38
do
34:38
it
34:39
was
34:39
hard
34:40
because
34:40
I
34:40
know
34:40
there
34:40
are
34:40
penalties
34:41
and
34:42
I
34:42
know
34:42
she's
34:42
taking
34:42
money
34:43
from
34:43
her
34:43
future
34:43
self
34:44
to
34:44
pay
34:44
for
34:44
today,
34:45
but
34:46
I
34:46
also
34:46
felt
34:46
like
34:46
she
34:46
had
34:47
no
34:47
other
34:47
choice.
34:49
So,
34:49
Ralph,
34:49
my
34:49
question
34:49
is
34:50
really
34:50
twofold.
34:50
First
34:51
question
34:51
is
34:51
this.
34:52
What
34:52
is
34:52
she
34:52
actually
34:53
losing
34:53
by
34:53
doing
34:54
this?
34:54
I'm
34:55
not
34:55
talking
34:55
about
34:55
the
34:55
penalty,
34:56
but
34:56
the
34:56
full
34:56
picture.
34:57
So
34:57
number
34:57
one
34:57
question
34:58
they're
34:58
asking
34:58
me
34:59
is,
34:59
what
34:59
are
34:59
you
34:59
actually
35:00
losing
35:00
by
35:00
doing
35:00
this?
35:01
Secondly,
35:02
is
35:03
there
35:03
anything
35:03
I
35:03
should
35:03
do
35:04
to
35:04
make
35:04
sure
35:04
my
35:04
own
35:05
retirement
35:05
savings
35:05
are
35:05
protected
35:06
if
35:06
I'm
35:06
ever
35:07
in
35:07
a
35:07
similar
35:07
situation?
35:09
Thank
35:09
you,
35:09
Ralph.
35:09
Would
35:10
love
35:10
to
35:10
hear
35:10
your
35:10
thoughts.
35:12
And
35:12
thank
35:12
you
35:12
for
35:12
sending
35:13
in
35:13
this
35:13
question.
35:13
It's
35:14
a
35:14
question
35:14
that
35:14
a
35:14
lot
35:14
of
35:15
people
35:15
don't
35:15
think
35:15
about
35:15
until
35:16
it's
35:16
too
35:16
late.
35:18
And
35:18
I
35:18
get
35:18
what
35:18
you're
35:18
going
35:18
on
35:19
here.
35:19
You're
35:19
grieving
35:20
a
35:20
decision
35:21
that
35:21
you
35:21
watched
35:22
your
35:22
daughter
35:22
make
35:22
under
35:23
real
35:23
pressure.
35:24
Your
35:25
daughter
35:25
was
35:25
in
35:25
that
35:25
situation
35:26
where,
35:26
like
35:26
she
35:26
told
35:27
you,
35:27
she
35:27
didn't
35:27
think
35:27
she
35:27
had
35:27
any
35:28
other
35:28
options.
35:29
And
35:30
it's
35:30
not
35:30
that
35:30
you're
35:30
trying
35:30
to
35:30
judge
35:31
her.
35:31
It's
35:31
not
35:31
about
35:31
judgment.
35:32
You
35:32
want
35:32
understanding.
35:34
But
35:34
at
35:34
the
35:34
same
35:35
time,
35:35
I
35:35
think
35:35
there's
35:35
a
35:36
fear
35:36
part
35:36
here.
35:37
You're
35:37
afraid
35:38
the
35:38
same
35:38
thing
35:38
could
35:39
happen
35:39
to
35:39
you.
35:40
So
35:40
I
35:40
want
35:41
to
35:41
start
35:41
by
35:41
saying
35:41
something
35:41
clearly.
35:43
Your
35:43
daughter
35:43
wasn't
35:44
being
35:44
irresponsible,
35:46
you
35:47
just
35:47
wasn't.
35:48
She
35:48
was
35:48
under
35:48
pressure
35:49
and
35:50
she
35:50
used
35:50
the
35:50
tool
35:51
that
35:51
was
35:51
available
35:51
to
35:51
her.
35:52
And
35:53
that
35:53
matters.
35:54
The
35:54
context
35:55
of
35:55
why
35:55
your
35:56
daughter
35:56
did
35:56
this
35:56
matters.
35:57
And
35:58
what
35:58
happened
35:58
isn't
35:59
a
35:59
character
35:59
failure.
36:00
A
36:00
lot
36:00
of
36:00
people
36:00
say,
36:00
well,
36:01
if
36:01
I'm
36:01
in
36:01
tough
36:01
times
36:02
and
36:02
I
36:02
go
36:02
take
36:02
money
36:03
out
36:03
of
36:03
my
36:03
retirement,
36:04
that's
36:04
a
36:04
failure.
36:05
It's
36:05
not
36:05
a
36:05
character
36:06
failure.
36:07
But
36:07
you
36:08
also
36:08
do
36:08
have
36:08
to
36:09
understand
36:09
the
36:09
full
36:09
cost
36:09
of
36:10
what
36:10
happened,
36:11
because
36:11
it's
36:11
worth
36:11
understanding.
36:12
And
36:12
I'm
36:12
not
36:12
doing
36:12
this
36:13
to
36:13
shame
36:13
anybody
36:14
today,
36:14
but
36:14
I'm
36:15
doing
36:15
it
36:15
because
36:15
it
36:15
helps
36:15
you
36:15
make
36:16
different
36:16
choices
36:16
next
36:17
time
36:17
or
36:18
maybe
36:18
avoid
36:19
being
36:19
in
36:19
that
36:19
position
36:19
in
36:20
the
36:20
first
36:20
place.
36:21
So
36:21
let's
36:21
get
36:22
into
36:22
the
36:22
nitty
36:22
gritty
36:23
details
36:23
of
36:23
this.
36:24
Here's
36:24
what
36:24
actually
36:25
happens
36:25
with
36:26
an
36:26
early
36:26
401k
36:27
withdrawal.
36:28
The
36:28
obvious
36:28
part
36:28
that
36:29
you
36:29
mentioned.
36:29
There
36:30
is
36:30
a
36:30
10%
36:31
penalty.
36:31
If
36:32
you're
36:32
under
36:32
59
36:32
and
36:33
a
36:33
half
36:33
and
36:33
you
36:34
take
36:34
a
36:34
hardship
36:35
withdrawal.
36:35
The
36:35
IRS
36:36
charges
36:36
a
36:36
10%
36:37
or
36:38
early
36:38
withdrawal
36:38
penalty
36:38
on
36:39
the
36:39
amount
36:39
you
36:39
take
36:39
out.
36:40
So,
36:40
for
36:40
example,
36:40
if
36:41
you
36:41
take
36:41
out
36:42
$10,000,
36:43
that's
36:43
$1,000
36:44
penalty
36:44
right
36:44
from
36:44
the
36:45
beginning,
36:45
gone
36:45
out
36:46
of
36:46
your
36:46
money,
36:46
you're
36:47
done,
36:47
that
36:47
money's
36:47
gone.
36:48
But
36:48
then
36:49
the
36:49
withdrawal
36:49
also,
36:50
and
36:50
this
36:50
is
36:50
the
36:50
part
36:50
that
36:50
people
36:50
don't
36:51
think
36:51
about,
36:51
it's
36:51
kind
36:51
of
36:51
the
36:51
double
36:51
whammy,
36:52
if
36:52
you
36:52
will.
36:52
The
36:53
withdrawal
36:53
gets
36:53
added
36:54
to
36:54
your
36:54
taxable
36:54
income
36:55
for
36:55
the
36:55
year.
36:56
So
36:56
not
36:56
only
36:57
do
36:57
you
36:57
get
36:57
paid
36:57
with
36:57
a
36:57
10%
36:58
penalty
36:58
and
36:58
see
36:58
a
36:58
lot
36:58
of
36:59
people
36:59
say
36:59
to
36:59
me,
36:59
ralph,
36:59
well,
37:00
I
37:00
did
37:00
this,
37:01
but
37:01
I
37:01
already
37:01
had
37:01
them
37:01
take
37:02
the
37:02
taxes
37:02
out.
37:03
But
37:03
what
37:03
I
37:03
find
37:03
is
37:04
that
37:04
usually
37:04
they
37:04
only
37:04
take
37:05
out
37:05
the
37:05
penalty,
37:05
or
37:05
maybe
37:06
they
37:06
take
37:06
out
37:06
20%,
37:07
which
37:07
is
37:07
why
37:07
the
37:08
second
37:08
part
37:08
of
37:08
this
37:08
matters.
37:10
Depending
37:10
upon
37:10
your
37:10
tax
37:11
bracket,
37:11
that
37:12
can
37:12
mean
37:12
an
37:12
additional
37:13
12%,
37:14
22%,
37:15
32%,
37:16
37%
37:18
in
37:18
additional
37:19
federal
37:19
tax.
37:19
And
37:19
don't
37:20
forget
37:20
about
37:20
the
37:20
state
37:20
tax
37:21
on
37:22
top
37:22
of
37:22
the
37:22
10%
37:23
penalty.
37:24
So
37:24
that
37:24
$10,000
37:25
withdrawal
37:26
might
37:26
actually
37:27
net
37:27
you
37:27
only
37:28
$6,500
37:29
or
37:29
$7,500
37:31
by
37:31
the
37:31
time
37:31
the
37:31
government
37:32
takes
37:32
their
37:32
share.
37:32
And
37:32
don't
37:33
forget
37:33
about
37:33
this.
37:34
A
37:34
lot
37:34
of
37:34
states
37:35
tax
37:35
this
37:36
as
37:36
ordinary
37:36
income
37:37
as
37:37
well.
37:38
But
37:38
here's
37:39
the
37:39
part
37:39
that
37:39
is
37:40
hardest
37:40
to
37:40
see,
37:40
though.
37:41
You
37:41
don't
37:41
see
37:41
this
37:41
because
37:41
it
37:42
doesn't
37:42
come
37:42
out
37:42
right
37:42
away.
37:43
And
37:43
that's
37:44
the
37:44
lost
37:44
growth.
37:45
And
37:46
we
37:46
got
37:46
to
37:46
spend
37:46
a
37:46
minute
37:47
here.
37:47
Most
37:48
money
37:48
inside
37:48
a
37:49
401k
37:49
gross
37:50
tax
37:50
deferred,
37:50
which
37:50
that
37:51
means
37:51
is
37:51
you
37:51
put
37:51
the
37:51
money
37:51
away
37:52
pre
37:52
tax
37:53
and
37:53
it
37:53
continues
37:54
to
37:54
grow,
37:54
compiles,
37:55
all
37:55
that
37:55
kind
37:55
of
37:55
stuff
37:56
just
37:56
grows
37:56
beautifully
37:58
tax
37:58
free.
38:00
Well,
38:00
if
38:00
you
38:00
take
38:00
that
38:00
$10,000
38:01
withdrawal
38:02
at
38:02
age
38:02
34,
38:04
that
38:04
creates
38:04
a
38:04
problem
38:05
because
38:05
if
38:05
it
38:06
had
38:06
stayed
38:06
invested
38:07
and
38:07
growed
38:08
at
38:08
even
38:08
an
38:08
average
38:09
rate
38:09
of
38:09
7%
38:10
over
38:10
30
38:10
years,
38:11
you
38:12
actually
38:12
are
38:13
taking
38:13
out
38:13
$76,000.
38:16
So
38:16
you
38:16
might
38:16
say,
38:16
wait
38:17
a
38:17
second,
38:17
Ralph,
38:17
you
38:17
say,
38:18
I'm
38:18
only
38:18
taking
38:18
10,000
38:19
out.
38:19
Yeah,
38:19
but
38:19
the
38:19
problem
38:20
is
38:21
the
38:21
cost
38:21
of
38:21
doing
38:22
that
38:22
a
38:22
Lot
38:22
of
38:22
people
38:22
don't
38:23
think
38:23
about
38:23
this
38:23
one.
38:24
The
38:24
cost
38:24
of
38:24
doing
38:25
that
38:25
because
38:26
of
38:26
the
38:26
lost
38:27
income
38:28
earned
38:28
in
38:28
that
38:28
money
38:29
for
38:29
that
38:29
period
38:29
of
38:29
time.
38:29
You
38:30
retired
38:31
$76,000.
38:34
Now,
38:34
I
38:34
want
38:34
to
38:35
get
38:35
to
38:35
the
38:35
listener's
38:35
question
38:36
directly.
38:38
Your
38:38
own
38:38
situation.
38:40
The
38:40
protection
38:40
doesn't
38:41
come
38:41
from
38:41
when
38:41
you
38:41
reach
38:42
that
38:42
point.
38:42
It
38:42
comes
38:43
before
38:43
the
38:43
crisis,
38:44
not
38:44
during
38:44
it.
38:45
The
38:45
best
38:46
defense
38:46
against
38:47
ever
38:47
needing
38:47
to
38:47
raid
38:48
retirement
38:48
savings
38:49
is
38:50
a
38:50
separate
38:50
emergency
38:51
fund.
38:52
If
38:52
you
38:52
listen
38:52
to
38:52
my
38:53
daily
38:53
show,
38:53
you
38:54
know,
38:54
I
38:54
talk
38:54
about
38:54
emergency
38:55
funds
38:55
all
38:55
the
38:55
time.
38:56
You
38:57
got
38:57
to
38:57
have
38:57
three
38:57
to
38:57
six
38:58
months
38:58
of
38:58
living
38:58
expenses
38:59
in
38:59
a
38:59
regular
39:00
savings
39:00
account,
39:00
not
39:01
in
39:01
your
39:01
retirement
39:01
accounts.
39:02
Retirement
39:02
accounts
39:02
are
39:02
great.
39:03
I
39:03
will
39:03
champion
39:04
that
39:04
till
39:04
the
39:05
day
39:05
I
39:05
pass
39:05
away,
39:06
put
39:06
the
39:06
money
39:07
away
39:07
for
39:07
retirement.
39:08
But
39:09
you've
39:09
also
39:10
got
39:10
to
39:10
have
39:11
that
39:11
emergency
39:12
fund.
39:13
Because
39:13
when
39:14
that
39:14
fund
39:14
exists,
39:15
if
39:15
you
39:15
have
39:16
a
39:16
job
39:16
loss
39:17
or
39:17
your
39:17
rent
39:17
goes
39:18
up
39:18
or
39:18
you
39:18
have
39:19
a
39:19
surprise
39:19
medical
39:20
bill,
39:20
you
39:21
got
39:21
somewhere
39:21
to
39:21
go
39:22
that
39:22
doesn't
39:22
cost
39:22
you
39:22
that
39:23
10%
39:23
penalty
39:24
and
39:25
decades
39:25
of
39:25
compound
39:26
growth.
39:27
So
39:27
if
39:28
your
39:28
daughter
39:28
doesn't
39:29
have
39:29
that
39:29
emergency
39:29
fund
39:29
or
39:30
if
39:30
you
39:30
don't
39:30
have
39:30
it,
39:31
what
39:31
I
39:31
would
39:32
do
39:32
right
39:32
now
39:33
is
39:33
build
39:34
that
39:34
first.
39:34
That's
39:34
got
39:35
to
39:35
be
39:35
your
39:35
priority
39:35
right
39:36
now,
39:37
not
39:37
more
39:37
retirement
39:38
contributions.
39:38
Yes.
39:38
Ralph
39:39
is
39:39
going
39:39
to
39:39
say
39:39
this.
39:40
You
39:40
may
39:41
need
39:41
to
39:41
back
39:41
down
39:42
those
39:42
retirement
39:42
contributions
39:43
right
39:43
now
39:44
to
39:44
build
39:45
up
39:45
that
39:45
after
39:46
tax
39:47
cushion,
39:47
that
39:48
emergency
39:48
fund.
39:49
I'm
39:50
not
39:50
talking
39:50
about
39:50
investing
39:51
it.
39:51
I'm
39:51
talking
39:51
about
39:51
a
39:52
cash
39:52
cushion
39:53
in
39:53
a
39:53
place
39:53
that
39:54
you
39:54
can
39:54
actually
39:54
reach
39:54
it
39:54
without
39:55
a
39:55
tax
39:55
bill.
39:55
Because
39:56
that's
39:56
the
39:56
issue.
39:57
So
39:57
many
39:57
people
39:58
put
39:59
all
39:59
of
39:59
their
39:59
eggs
40:00
in
40:00
that
40:00
retirement
40:00
basket.
40:01
And
40:01
I
40:01
get
40:01
it
40:01
because
40:02
it
40:02
reduces
40:02
your
40:03
taxable
40:03
income
40:03
in
40:03
the
40:04
year
40:04
that
40:04
you
40:04
do
40:04
it.
40:04
A
40:05
great,
40:05
wise
40:05
tax
40:06
strategy
40:07
until
40:07
you
40:08
need
40:08
the
40:08
money.
40:09
And
40:09
then
40:09
when
40:09
you
40:09
need
40:09
the
40:10
money,
40:10
the
40:10
only
40:10
choice
40:11
you
40:11
have
40:12
is
40:12
to
40:12
go
40:12
raid
40:13
that
40:13
retirement
40:14
account.
40:15
And
40:15
unfortunately
40:16
for
40:16
most
40:16
people,
40:17
you're
40:17
going
40:17
to
40:18
end
40:18
up
40:18
losing
40:18
about
40:19
35
40:19
to
40:20
40%
40:20
of
40:21
whatever
40:21
you
40:21
take
40:21
out.
40:22
That's
40:22
a
40:22
big
40:22
number.
40:24
But
40:24
here's
40:24
what
40:24
I
40:24
want
40:24
this
40:24
listener
40:25
and
40:25
I
40:25
want
40:25
her
40:26
daughter
40:26
to
40:26
hear.
40:27
Financially
40:28
confident
40:28
Christians
40:30
aren't
40:30
people
40:30
who
40:30
never
40:31
hit
40:31
a
40:31
wall.
40:31
That's
40:32
why
40:32
I
40:32
said
40:32
there's
40:32
no
40:32
judgment
40:33
here.
40:33
There's
40:33
a
40:33
lot
40:33
of
40:34
people
40:34
out
40:34
in
40:35
the
40:35
world
40:35
that
40:35
I
40:35
live
40:36
that
40:36
want
40:36
to
40:36
judge
40:36
people,
40:37
they
40:37
want
40:37
to
40:37
criticize
40:38
people,
40:38
they
40:38
want
40:38
to
40:39
call
40:39
them
40:39
stupid.
40:39
You
40:40
will
40:40
never
40:40
hear
40:40
that
40:40
from
40:41
me.
40:42
You
40:43
are
40:43
going
40:43
to
40:43
hit
40:43
walls.
40:44
Sometimes
40:45
in
40:45
your
40:45
financial
40:46
life,
40:46
things
40:46
like
40:46
that
40:46
happen.
40:48
But
40:48
the
40:48
truly
40:49
financially
40:49
competent
40:50
ones
40:50
are,
40:50
are
40:51
people
40:51
who
40:51
are
40:51
building
40:51
something
40:52
between
40:52
themselves
40:53
and
40:53
the
40:53
wall
40:53
before
40:54
the
40:54
crisis
40:54
arrived.
40:55
That's
40:56
Something
40:56
like
40:56
I
40:56
talked
40:57
about
40:57
is
40:57
that
40:57
emergency
40:58
fund.
40:59
And
40:59
it's
40:59
not
40:59
complicated
41:00
to
41:00
start.
41:01
Even
41:01
a
41:01
few
41:01
hundred
41:02
dollars
41:02
sitting
41:02
in
41:03
a
41:03
separate
41:03
account
41:03
you
41:03
don't
41:04
touch
41:04
is
41:04
the
41:04
beginning
41:05
of
41:05
a
41:05
different
41:06
kind
41:06
of
41:06
security.
41:08
It's
41:08
clear
41:08
to
41:08
me,
41:08
based
41:09
on
41:09
your
41:09
question,
41:10
your
41:10
daughter
41:10
didn't
41:11
have
41:11
that
41:11
kind
41:11
of
41:11
cushion.
41:12
So
41:13
the
41:13
goal
41:13
for
41:13
both
41:13
of
41:14
you
41:14
is
41:14
to
41:15
make
41:15
sure
41:15
that
41:15
the
41:15
next
41:15
hard
41:16
season
41:16
comes.
41:16
And
41:16
guess
41:17
what?
41:18
Most
41:18
people
41:18
will
41:18
experience
41:19
hard
41:19
seasons
41:19
in
41:20
their
41:20
life.
41:21
Build
41:21
that
41:22
cushion
41:22
so
41:22
that
41:22
you
41:23
got
41:23
somewhere
41:23
to
41:23
go
41:23
besides
41:24
that
41:24
401k
41:25
plan.
41:26
And
41:26
we
41:26
actually
41:27
found
41:27
an
41:27
article
41:27
with
41:27
this
41:27
one.
41:28
This
41:28
email
41:28
connects
41:28
directly
41:29
to
41:29
what?
41:30
There's
41:30
a
41:30
company
41:30
out
41:30
there
41:31
called
41:31
Moneywise
41:32
and
41:32
they
41:32
covered
41:32
this
41:32
in
41:33
March.
41:33
And
41:34
the
41:34
data
41:34
they
41:35
reported
41:35
is
41:35
striking.
41:36
Now,
41:36
it
41:36
wasn't
41:37
striking
41:37
because
41:37
it
41:37
was
41:37
surprising.
41:38
It
41:39
was
41:39
striking
41:39
because
41:39
what
41:39
it
41:40
says
41:40
about
41:40
where
41:40
a
41:40
lot
41:41
of
41:41
families
41:41
are
41:41
actually
41:42
right
41:42
now,
41:43
this
41:43
is
41:43
what
41:44
the
41:44
research
41:44
showed.
41:45
People
41:45
who
41:45
are
41:46
doing
41:46
the
41:46
right
41:46
thing
41:46
by
41:47
saving
41:47
for
41:47
retirement
41:48
but
41:48
are
41:48
under
41:49
enough
41:49
financial
41:49
pressure
41:50
that
41:50
they're
41:50
pulling
41:50
the
41:51
money
41:51
back
41:51
out
41:51
before
41:51
retirement
41:52
even
41:52
comes.
41:52
This
41:53
is
41:53
a
41:53
thing.
41:54
Yes,
41:55
they've
41:55
got
41:55
the
41:55
savings,
41:56
but
41:56
they
41:57
also
41:57
have
41:57
the
41:57
needs.
41:58
And
41:58
those
41:59
withdrawals
41:59
are
41:59
happening
42:00
now
42:00
more
42:00
than
42:00
ever.
42:01
Vanguard
42:02
says
42:02
this.
42:02
Vanguard
42:03
published
42:03
its
42:04
How
42:04
America
42:04
Saves.
42:05
This
42:05
is
42:05
a
42:05
2026
42:06
report.
42:07
And
42:07
one
42:07
number
42:07
stood
42:08
out
42:08
to
42:08
me
42:09
in
42:09
2025,
42:10
6%
42:11
of
42:11
401k
42:12
account
42:12
balance
42:13
holders
42:13
in
42:13
its
42:14
plan.
42:14
These
42:15
are
42:15
the
42:15
plans
42:15
that
42:16
Vanguard
42:16
administers
42:17
took
42:17
a
42:17
hardship
42:18
withdrawal.
42:18
So
42:18
6%.
42:19
This
42:20
was
42:20
the
42:20
highest
42:21
rate
42:21
ever
42:21
recorded,
42:22
up
42:22
from
42:23
4.8%
42:23
in
42:24
2024.
42:26
More
42:26
than
42:26
doubled
42:28
where
42:28
things
42:28
stood
42:28
before
42:29
the
42:29
pandemic.
42:30
This
42:31
is
42:31
six
42:31
straight
42:32
years
42:32
of
42:32
increases.
42:33
Now,
42:34
a
42:34
hardship
42:34
withdrawal
42:34
is
42:35
different
42:35
from
42:35
a
42:35
401k
42:36
loan.
42:36
Let's
42:37
talk
42:37
about
42:37
that
42:37
for
42:37
a
42:37
second.
42:37
Because
42:37
a
42:38
lot
42:38
of
42:38
people,
42:38
if
42:38
you
42:38
have
42:38
an
42:38
option,
42:39
you
42:39
can
42:40
take
42:40
what's
42:40
called
42:40
a
42:40
401k
42:41
loan,
42:42
but
42:42
these
42:42
are
42:42
actual
42:43
withdrawals
42:43
pulling
42:43
the
42:44
money
42:44
out
42:44
of
42:44
the
42:44
account.
42:45
Here's
42:45
the
42:45
way
42:45
a
42:45
loan
42:46
works.
42:46
If
42:46
you
42:47
do
42:47
a
42:47
loan,
42:47
you're
42:47
borrowing
42:48
from
42:48
yourself
42:49
and
42:49
paying
42:49
yourself
42:50
back.
42:50
The
42:51
best
42:51
part
42:51
of
42:51
that
42:51
is
42:52
that's
42:52
not
42:52
a
42:52
taxable
42:52
issue.
42:53
Now,
42:53
there
42:53
is
42:53
a
42:53
little
42:53
bit
42:53
of
42:54
a
42:54
trapdoor
42:54
there.
42:55
If
42:55
you
42:55
take
42:55
one
42:55
of
42:55
those
42:56
loans
42:56
and
42:57
you
42:57
change
42:57
employment,
42:58
you
42:58
get
42:58
fired
42:58
or
42:59
you
42:59
leave
42:59
somewhere,
42:59
you
43:00
have
43:00
60
43:00
days
43:01
to
43:01
pay
43:01
back
43:01
that
43:02
loan
43:02
or
43:02
it
43:02
becomes
43:03
an
43:03
effective
43:03
distribution.
43:04
That
43:04
will
43:04
be
43:04
a
43:04
topic
43:05
for
43:05
another
43:05
show.
43:06
But
43:07
with
43:07
the
43:07
loan,
43:07
you're
43:08
borrowing
43:08
from
43:08
yourself
43:08
and
43:08
you're
43:09
paying
43:09
yourself
43:09
back.
43:09
Now,
43:09
with
43:09
a
43:10
hardship
43:10
withdrawal,
43:11
the
43:11
money
43:12
comes
43:12
out
43:12
and
43:13
it
43:13
never
43:13
goes
43:13
back.
43:14
You
43:14
pay
43:15
the
43:15
penalty.
43:15
As
43:15
we
43:15
Talked
43:16
about
43:16
that
43:16
10%
43:17
penalty,
43:17
you
43:18
pay
43:18
the
43:18
taxes
43:19
and
43:19
you
43:19
permanently
43:20
lose
43:20
whatever
43:21
the
43:21
money
43:21
would
43:21
have
43:21
grown
43:21
into.
43:22
Like
43:22
we
43:22
talked
43:22
about
43:22
that
43:23
$10,000,
43:23
that
43:24
really
43:24
is
43:25
$76,000.
43:27
But
43:27
let's
43:27
get
43:27
a
43:28
little
43:28
deeper
43:28
because
43:28
let's
43:28
talk
43:29
about
43:29
what's
43:29
driving
43:29
this.
43:30
Why
43:31
are
43:31
more
43:31
people
43:31
taking
43:32
these
43:32
hardship
43:32
withdrawals
43:33
and
43:33
why
43:33
are
43:33
people
43:34
getting
43:34
themselves
43:34
into
43:34
this?
43:36
I
43:36
honestly
43:36
think
43:36
the
43:37
number
43:37
one
43:37
thing
43:38
is
43:38
financial
43:39
pressure
43:39
from
43:39
multiple
43:40
directions.
43:41
We
43:41
are
43:41
living
43:41
in
43:42
very
43:42
difficult
43:43
economic
43:43
times,
43:43
and
43:43
this
43:44
isn't
43:44
meant
43:44
as
43:44
a
43:44
judgment.
43:44
This
43:45
is
43:45
the
43:45
reality
43:45
on
43:45
the
43:46
ground.
43:46
Rent's
43:47
increasing,
43:48
people
43:48
have
43:48
medical
43:49
bills,
43:49
there's
43:49
a
43:50
ton
43:50
of
43:50
job
43:50
instability,
43:51
and
43:51
costs
43:52
are
43:52
rising.
43:53
None
43:53
of
43:53
this
43:53
stuff
43:53
is
43:53
letting
43:54
up.
43:55
And
43:55
according
43:55
to
43:55
Vanguard's
43:56
research,
43:57
hourly
43:57
wage
43:57
workers
43:58
are
43:58
disproportionately
43:59
affected.
43:59
Which
44:00
it
44:00
didn't
44:00
surprise
44:00
you
44:00
when
44:00
I
44:01
read
44:01
this.
44:02
42%
44:02
of
44:03
hourly
44:03
workers
44:03
who
44:03
leave
44:04
a
44:04
job
44:04
cash
44:05
out
44:05
their
44:05
401k
44:06
entirely
44:07
instead
44:07
of
44:07
rolling
44:08
it
44:08
over.
44:09
Do
44:10
you
44:10
understand
44:10
what
44:10
I'm
44:10
talking
44:10
about
44:11
there?
44:11
42%
44:13
of
44:13
people
44:13
who
44:13
are
44:13
working
44:14
hourly
44:14
and
44:14
they
44:15
leave
44:15
a
44:15
job,
44:15
maybe
44:15
they're
44:16
going
44:16
to
44:16
get
44:16
a
44:16
better
44:16
job,
44:17
they're
44:17
going
44:17
to
44:17
another
44:18
place.
44:19
42%
44:20
are
44:20
cashing
44:21
their
44:21
money
44:21
out
44:22
entirely
44:23
instead
44:23
of
44:23
letting
44:24
it
44:24
roll
44:24
forward.
44:24
And
44:25
when
44:25
you
44:25
do
44:25
that,
44:25
a
44:26
couple
44:26
things
44:26
are
44:26
happening.
44:27
Number
44:27
one,
44:27
you're
44:27
getting
44:27
nailed
44:28
on
44:28
taxes.
44:29
Second
44:29
thing,
44:30
that
44:30
money's
44:30
coming
44:30
out
44:31
of
44:31
your
44:31
investment
44:31
and
44:31
it's
44:32
not
44:32
going
44:32
to
44:32
grow
44:32
for
44:32
the
44:32
rest
44:33
of
44:33
your
44:33
time.
44:33
That
44:33
you're
44:33
working.
44:35
That
44:35
number
44:35
right
44:36
there
44:36
should
44:36
stop
44:36
people
44:37
in
44:37
their
44:37
tracks.
44:39
The
44:39
contradiction
44:40
in
44:40
data
44:40
is
44:40
worth
44:41
sitting
44:41
with.
44:42
Think
44:42
about
44:42
this
44:42
one.
44:42
The
44:43
average
44:43
401k
44:44
balances
44:44
actually
44:45
rose
44:45
by
44:45
13%
44:46
towards
44:46
2024.
44:47
Now,
44:48
I
44:48
think
44:48
that's
44:48
driven
44:49
by
44:49
strong
44:49
markets
44:50
and
44:50
steady
44:50
contributions.
44:52
So
44:52
on
44:52
paper,
44:53
and
44:53
this
44:53
is
44:53
what
44:53
this
44:53
article
44:54
says,
44:54
on
44:55
paper,
44:56
retirement
44:56
savings
44:57
look
44:57
healthier
44:57
than
44:57
ever.
44:58
But
44:58
underneath
44:59
that,
44:59
there's
45:00
a
45:00
growing
45:00
share
45:01
of
45:01
people
45:01
who
45:01
are
45:01
cracking
45:02
those
45:02
accounts
45:02
open
45:03
to
45:03
cover
45:03
today's
45:04
expenses.
45:05
Both
45:05
things
45:06
are
45:06
true
45:06
at
45:06
the
45:06
same
45:07
time.
45:08
There's
45:08
more
45:08
savings
45:09
and
45:09
there's
45:09
more
45:09
people
45:10
taking
45:10
the
45:10
money
45:10
out.
45:12
And
45:12
the
45:13
cost
45:13
is
45:13
what
45:13
it
45:13
is.
45:14
It's
45:14
the
45:14
penalty,
45:15
it's
45:15
the
45:15
tax.
45:15
And
45:15
that's
45:15
lost
45:16
growth
45:16
that
45:16
we
45:16
talked
45:16
about.
45:17
That
45:17
$10,000
45:18
withdrawal
45:18
at
45:18
age
45:19
34
45:19
is
45:20
$76,000
45:21
less
45:22
at
45:22
retirement.
45:23
That
45:24
math
45:24
doesn't
45:24
change
45:24
based
45:25
on
45:25
why
45:25
the
45:25
money
45:25
was
45:26
needed.
45:27
Which
45:27
leads
45:27
us
45:28
to
45:28
the
45:28
protection.
45:30
This
45:30
is
45:30
so
45:31
important.
45:31
It's
45:32
the
45:32
same
45:32
every
45:32
time.
45:33
You
45:34
probably
45:34
think
45:35
I'm
45:35
beating
45:35
a
45:36
drum
45:36
that
45:36
doesn't
45:36
stop,
45:36
but
45:37
it
45:37
is
45:37
so
45:37
very
45:38
critical.
45:38
This
45:39
is
45:39
the
45:39
difference
45:39
between
45:40
people
45:40
who
45:40
are
45:40
successful
45:41
and
45:41
not
45:42
successful
45:42
with
45:42
their
45:42
finances.
45:43
And
45:43
again,
45:43
I'm
45:43
not
45:43
judging
45:44
you.
45:45
A
45:45
separate
45:46
emergency
45:46
fund,
45:47
cash
45:48
in
45:48
your
45:48
savings
45:48
account,
45:49
not
45:49
that
45:49
retirement
45:49
account
45:51
money
45:51
that
45:51
you
45:51
can
45:51
reach
45:51
out
45:52
and
45:52
grab
45:52
when
45:52
you
45:52
have
45:53
that
45:53
rough
45:53
month
45:53
or
45:54
you
45:54
have
45:54
that
45:54
unexpected
45:55
expense
45:55
money
45:56
that
45:56
you
45:56
can
45:56
grab
45:56
without
45:57
a
45:57
penalty.
45:58
And
45:58
what
45:58
they
45:59
find
45:59
is
45:59
when
45:59
people
45:59
have
46:00
that
46:00
buffer,
46:00
they
46:01
don't
46:01
have
46:01
to
46:01
touch
46:01
their
46:02
401k
46:03
because
46:04
for
46:04
so
46:04
many
46:05
people,
46:05
and
46:05
the
46:05
numbers
46:06
show
46:06
it,
46:06
those
46:07
401ks
46:08
have
46:08
become
46:08
an
46:08
emergency
46:09
fund
46:09
by
46:09
default.
46:11
And
46:11
that's
46:11
a
46:11
big
46:12
penalty
46:12
for
46:12
taking
46:13
that.
46:13
Like
46:13
I
46:13
said,
46:13
between
46:14
35
46:14
and
46:14
40%.
46:16
Money
46:16
wise.
46:17
Citing
46:17
Vanguard's
46:18
How
46:18
America
46:18
Saves
46:19
reports,
46:19
says
46:19
last
46:19
year
46:20
was
46:20
a
46:20
record
46:20
breaking
46:21
year
46:21
for
46:21
early
46:21
401k
46:22
withdrawals.
46:23
It's
46:24
just
46:24
sad
46:24
to
46:24
me,
46:25
and
46:25
I
46:26
Already
46:26
mentioned
46:26
this,
46:26
42%
46:27
of
46:27
hourly
46:27
workers
46:27
cash
46:28
out
46:28
their
46:28
401s
46:29
when
46:29
they
46:29
switch
46:29
jobs.
46:31
If
46:31
you're
46:32
changing,
46:32
if
46:32
you're
46:33
quitting
46:33
your
46:33
job,
46:35
one
46:35
of
46:35
the
46:35
worst
46:36
possible
46:36
things
46:36
you
46:37
can
46:37
do
46:38
is
46:38
cash
46:38
out
46:39
your
46:39
401k,
46:41
roll
46:41
it
46:41
over
46:42
into
46:42
your
46:42
own
46:42
IRA,
46:43
roll
46:43
it
46:43
even
46:43
to
46:44
your
46:44
new
46:44
company
46:44
401k.
46:45
It's
46:45
really
46:45
important
46:46
that
46:46
you
46:46
do
46:46
that
46:47
now.
46:47
I
46:47
noticed
46:48
somebody
46:48
put
46:48
something
46:48
in
46:48
the
46:48
chat.
46:48
Dave,
46:49
thank
46:49
you
46:49
so
46:49
much.
46:50
And
46:50
he
46:51
said,
46:51
congratulations,
46:52
gramps.
46:52
Yeah,
46:53
I'm
46:53
still
46:53
not
46:53
sure
46:54
I'm
46:54
embracing
46:54
that
46:55
term
46:55
yet.
46:55
But
46:56
I'm
46:56
going
46:57
to
46:57
either
46:57
way
46:57
because
46:58
I
46:58
know
46:58
little
46:58
Carson's
46:59
going
46:59
to
46:59
be
46:59
looking
46:59
up
46:59
to
46:59
me
46:59
before
47:00
long.
47:00
He's
47:00
going
47:00
to
47:00
go,
47:00
grandpa
47:01
or
47:01
Pop
47:01
Pop,
47:02
whatever
47:02
it
47:02
is.
47:03
I'm
47:03
gonna
47:03
probably
47:04
tell
47:04
him,
47:04
call
47:04
me
47:04
Pop
47:04
Pop,
47:05
because
47:05
that
47:05
was
47:05
my
47:06
closest,
47:07
closest
47:07
relationship
47:08
in
47:08
my
47:08
life.
47:08
But
47:08
let
47:09
me
47:09
take
47:09
my
47:09
take
47:09
on
47:09
this.
47:10
What
47:11
strikes
47:11
me
47:11
about
47:11
this
47:12
data
47:12
isn't
47:12
the
47:12
numbers.
47:13
It's
47:14
the
47:14
story
47:14
behind
47:15
the
47:15
numbers.
47:15
That's
47:16
what
47:16
I
47:16
say
47:16
on
47:16
the
47:16
show.
47:16
My
47:17
story
47:17
is
47:17
all
47:17
about
47:18
the
47:18
people
47:18
behind
47:18
this.
47:19
We
47:19
can
47:19
look
47:20
at
47:20
numbers
47:20
and
47:20
math
47:20
is
47:21
great.
47:21
But
47:22
what
47:22
are
47:22
the
47:22
people
47:23
behind
47:23
this
47:23
telling
47:23
us?
47:25
People
47:25
aren't
47:25
pulling
47:26
from
47:26
their
47:26
401ks
47:27
because
47:27
they
47:27
stop
47:28
caring
47:28
about
47:28
retirement.
47:29
I
47:29
really
47:29
don't
47:29
believe
47:29
that.
47:30
I
47:30
think
47:31
people
47:31
generally
47:31
have
47:32
an
47:32
interest
47:32
in
47:32
putting
47:32
away
47:33
for
47:33
retirement.
47:34
I'm
47:34
53
47:35
years
47:35
old.
47:35
Some
47:36
point
47:36
I
47:36
might
47:36
retire.
47:37
I
47:37
don't
47:37
know.
47:37
I
47:37
like
47:37
what
47:37
I
47:37
do.
47:38
So
47:38
I
47:38
don't
47:38
know
47:38
if
47:38
I
47:38
retire
47:38
at
47:38
all.
47:39
But
47:39
I
47:39
don't
47:40
think
47:40
that's
47:40
why
47:40
people
47:41
are
47:41
doing
47:41
this.
47:42
They're
47:43
doing
47:43
it
47:43
because
47:43
they're
47:44
out
47:44
of
47:44
options
47:45
and
47:46
things
47:46
need
47:46
to
47:46
get
47:47
paid.
47:48
That's
47:48
a
47:48
real
47:48
situation.
47:50
You
47:50
may
47:50
be
47:50
listening
47:51
or
47:51
watching
47:51
this
47:51
right
47:51
now
47:51
and
47:52
you're
47:52
in
47:52
this
47:52
very
47:53
situation.
47:54
The
47:54
answer
47:55
isn't
47:55
to
47:55
shame
47:56
anybody.
47:57
You
47:57
might
47:57
listen
47:57
to
47:57
other
47:58
financial
47:58
experts
47:59
and
47:59
they're
47:59
going
47:59
to
47:59
tell
47:59
you,
47:59
oh,
47:59
you're
48:00
stupid,
48:00
you
48:00
shouldn't
48:00
do.
48:01
You
48:01
will
48:01
never
48:02
hear
48:02
that
48:02
from
48:02
me.
48:03
I
48:03
have
48:04
compassion
48:04
for
48:04
people.
48:05
I
48:05
have
48:06
a
48:06
heart
48:06
for
48:06
helping
48:07
people.
48:08
So
48:08
I
48:08
have
48:08
to
48:08
give
48:09
you
48:09
tough
48:09
love
48:09
right
48:09
now.
48:10
The
48:10
answer
48:11
isn't
48:11
shame.
48:11
It's
48:12
building
48:12
that
48:12
buffer
48:13
before
48:13
the
48:14
crisis
48:15
so
48:15
that
48:15
401k
48:16
or
48:16
those
48:16
retirement
48:17
endings
48:17
stay
48:18
protected
48:19
and
48:19
retirement
48:20
is
48:20
still
48:20
possible.
48:22
And
48:22
that's
48:22
exactly
48:23
what
48:23
we're
48:23
building
48:23
towards
48:23
in
48:24
this
48:24
community.
48:25
Not
48:26
a
48:26
financial
48:26
life
48:27
where
48:27
things
48:27
stop
48:28
happening.
48:28
Things
48:28
are
48:29
going
48:29
to
48:29
happen.
48:30
They're
48:30
not
48:30
going
48:30
to
48:30
stop
48:31
happening.
48:31
But
48:32
I
48:32
want
48:32
to
48:32
help
48:32
you
48:32
get
48:33
to
48:33
a
48:33
place
48:33
where
48:33
when
48:34
they
48:34
do,
48:35
when
48:35
those
48:35
tough
48:36
times
48:36
happen,
48:37
you've
48:37
got
48:37
options.
48:39
An
48:39
emergency
48:40
fund
48:40
doesn't
48:40
feel
48:41
like
48:41
progress
48:42
the
48:42
way
48:42
investments
48:43
do,
48:44
but
48:44
it
48:45
is
48:45
progress.
48:46
And
48:47
when
48:47
that
48:47
crisis
48:47
arrives,
48:49
it's
48:49
that
48:49
thing
48:49
that
48:50
keeps
48:50
you
48:50
from
48:50
making
48:50
a
48:51
$76,000
48:52
mistake
48:53
to
48:53
solve
48:53
a
48:53
$10,000
48:54
problem.
48:54
Because
48:54
that's
48:55
really
48:55
what
48:55
it
48:55
comes
48:55
down
48:55
to.
48:56
You've
48:56
got
48:56
a
48:57
$10,000
48:57
problem
48:58
and
48:58
you're
48:58
paying
48:59
$76,000
49:00
to
49:00
do
49:00
it.
49:01
That's
49:02
what
49:02
financially
49:03
confident
49:03
actually
49:04
means.
49:06
Well,
49:06
like
49:07
I
49:07
said
49:07
today,
49:07
I'm
49:07
going
49:08
to
49:08
check
49:08
the
49:08
chat
49:09
here
49:09
one
49:09
more
49:09
time.
49:09
I
49:10
want
49:10
to
49:10
appreciate
49:10
everybody
49:11
that
49:11
showed
49:11
up
49:11
today
49:11
and
49:12
made
49:12
comments.
49:13
Thank
49:13
you
49:13
all
49:13
for
49:13
being
49:14
here.
49:14
We
49:14
had
49:15
three
49:15
questions
49:15
today.
49:16
Three
49:17
different
49:17
kinds
49:17
of
49:18
pressures,
49:19
but
49:19
the
49:19
same
49:19
thing
49:20
was
49:20
underneath
49:20
all
49:21
of
49:21
them.
49:22
Having
49:22
a
49:23
plan
49:23
before
49:23
the
49:23
moment
49:24
a
49:24
crisis
49:24
arrives
49:24
is
49:25
what
49:25
changes
49:25
the
49:25
outcome.
49:26
That
49:26
is
49:26
really
49:26
the
49:26
truth.
49:27
Have
49:27
that
49:27
plan.
49:28
So
49:29
for
49:29
that
49:29
self
49:29
employed
49:30
listener
49:30
worried
49:30
about
49:30
her
49:31
tax
49:31
return,
49:32
pull
49:32
those
49:32
records
49:33
now.
49:34
Every
49:34
deduction
49:35
you
49:35
claimed,
49:35
make
49:35
sure
49:36
you
49:36
have
49:36
documentation.
49:38
The
49:38
deduction
49:39
isn't
49:39
the
49:39
problem,
49:39
the
49:40
missing
49:40
receipts
49:41
is.
49:41
And
49:41
guess
49:41
what?
49:41
You
49:41
can
49:42
fix
49:42
that.
49:43
Don't
49:43
wait
49:43
till
49:43
you
49:44
get
49:44
a
49:44
letter
49:44
from
49:44
the
49:44
irs.
49:45
Fix
49:45
that
49:45
now.
49:46
And
49:46
if
49:46
you're
49:46
planning
49:47
for
49:47
next
49:47
year,
49:47
this
49:47
is
49:48
a
49:48
great
49:48
time
49:48
to
49:48
start
49:48
putting
49:49
your
49:49
stuff
49:49
in
49:49
order
49:50
to
49:50
now
49:51
now,
49:51
for
49:51
the
49:51
man
49:51
who's
49:52
done
49:52
everything
49:52
right
49:53
with
49:53
Social
49:53
Security
49:53
planning.
49:54
Log
49:54
into
49:55
your
49:55
Social
49:55
Security
49:55
account
49:56
this
49:56
week.
49:57
Check
49:57
your
49:58
earnings
49:58
records.
49:59
Start
49:59
your
50:00
application
50:00
four
50:00
months
50:01
before
50:01
your
50:01
target
50:01
date.
50:02
Your
50:02
strategy
50:03
is
50:03
solid.
50:03
I
50:03
love
50:04
what
50:04
you
50:04
said
50:04
about
50:04
how
50:04
you
50:04
decided
50:05
when
50:05
to
50:05
take
50:05
the
50:05
money.
50:06
Make
50:07
sure
50:07
you've
50:07
got
50:07
the
50:07
logistics
50:08
to
50:08
match
50:08
it.
50:08
And
50:08
if
50:09
you're
50:09
listening
50:09
right
50:09
now,
50:10
go
50:10
make
50:11
sure
50:11
you
50:11
have
50:11
access
50:11
to
50:12
your
50:12
account.
50:12
Check
50:12
your
50:13
earnings
50:13
records
50:13
at
50:13
least
50:14
once
50:14
a
50:14
year.
50:15
And
50:15
for
50:15
the
50:16
mother
50:16
watching
50:16
her
50:16
daughter
50:17
work
50:17
through
50:17
a
50:17
hard
50:17
situation
50:18
and
50:18
and
50:18
for
50:18
her
50:19
self,
50:19
start
50:19
an
50:19
emergency
50:20
fund.
50:20
If
50:20
you
50:20
don't
50:21
have
50:21
one
50:21
do
50:21
that
50:22
three
50:22
to
50:23
six
50:23
months
50:23
of
50:23
expenses
50:24
in
50:24
a
50:24
regular
50:24
savings
50:25
account.
50:25
Now,
50:25
you
50:26
don't
50:26
have
50:26
to
50:26
get
50:26
to
50:27
three
50:27
to
50:27
six
50:27
months
50:27
right
50:28
away.
50:28
Start
50:28
off
50:29
with
50:29
$10
50:29
a
50:30
week.
50:30
Start
50:30
off
50:30
with
50:31
$25
50:32
a
50:32
week.
50:32
And
50:32
just
50:33
let
50:33
that
50:33
grow.
50:33
Make
50:33
it
50:34
automatic.
50:34
Carve
50:34
it
50:34
out
50:35
right
50:35
away,
50:35
take
50:35
it
50:35
off
50:36
the
50:36
top.
50:37
That
50:37
fund
50:37
is
50:38
what's
50:38
going
50:38
to
50:38
keep
50:38
your
50:38
retirement
50:39
savings
50:39
protected.
50:40
When
50:40
life
50:41
gets
50:41
expensive,
50:43
just
50:43
take
50:43
one
50:44
step.
50:45
Any
50:45
one
50:45
of
50:45
these
50:45
this
50:46
week.
50:47
You
50:47
don't
50:47
have
50:47
to
50:47
have
50:47
it
50:47
all
50:47
figured
50:48
out.
50:48
You
50:48
just
50:48
have
50:49
to
50:49
keep
50:49
moving.
50:50
That's
50:50
what
50:51
being
50:51
financially
50:51
confident
50:52
looks
50:52
like.
50:53
It's
50:53
not
50:53
about
50:54
perfection.
50:54
It's
50:55
not
50:55
having
50:55
a
50:55
perfect
50:55
portfolio.
50:56
Not
50:57
a
50:57
life
50:57
without
50:57
hard
50:57
seasons.
50:58
We
50:58
are
50:58
going
50:58
to
50:59
have
50:59
seasons
50:59
that
51:00
are
51:00
difficult.
51:01
It's
51:01
showing
51:02
up.
51:02
It's
51:03
asking
51:03
the
51:03
right
51:04
questions
51:04
and
51:05
making
51:05
one
51:05
more
51:06
good
51:06
decision
51:06
today
51:07
than
51:07
the
51:07
one
51:07
you
51:07
made
51:08
yesterday.
51:09
That's
51:09
the
51:09
whole
51:10
thing.
51:10
That
51:10
really
51:10
is
51:10
the
51:10
whole
51:10
thing.
51:12
Now,
51:12
before
51:12
I
51:12
let
51:12
you
51:12
go,
51:12
I
51:13
want
51:13
to
51:13
remind
51:13
you
51:13
that
51:13
every
51:14
day
51:14
we
51:14
have
51:15
a
51:15
daily
51:15
show.
51:15
It's
51:16
called
51:16
Financially
51:16
Confident
51:17
Christian.
51:17
It
51:17
drops
51:17
every
51:18
morning.
51:18
It's
51:19
a
51:19
short
51:19
episode,
51:19
about
51:20
10
51:20
to
51:20
15
51:20
minutes.
51:21
We
51:21
talk
51:21
about
51:21
real
51:22
topics
51:22
just
51:22
like
51:22
this.
51:23
You
51:23
can
51:23
find
51:24
all
51:24
those
51:24
episodes@financiallyconfidentchristian.com
51:27
and
51:28
like
51:28
I
51:28
said,
51:28
if
51:28
you
51:28
want
51:28
to
51:28
go
51:29
deeper
51:29
with
51:30
a
51:30
community
51:30
of
51:30
people
51:30
who
51:31
take
51:31
this
51:31
seriously,
51:32
we
51:32
have
51:32
a
51:32
Patreon
51:33
site.
51:33
You
51:34
can
51:34
join
51:34
that
51:34
by
51:34
going
51:35
to
51:35
financiallyconfidentchristian.com
51:38
join
51:38
now.
51:38
It
51:39
doesn't
51:39
cost
51:39
you
51:39
a
51:39
dime
51:39
to
51:40
do
51:40
that.
51:40
If
51:40
you
51:40
would
51:41
like
51:41
to
51:41
support
51:41
the
51:41
show,
51:41
you
51:42
can
51:42
do
51:42
that.
51:42
But
51:42
you
51:42
can
51:42
go
51:43
to
51:43
our
51:43
Patreon
51:43
community,
51:44
join
51:44
it.
51:44
We
51:44
put
51:45
content
51:45
out
51:45
there.
51:45
It's
51:46
a
51:46
place
51:46
you
51:46
can
51:46
ask
51:46
questions.
51:47
I
51:47
jump
51:48
in
51:48
there
51:48
and
51:48
answer
51:48
questions.
51:49
Again,
51:49
that's@financiallyconfidentchristian.com
51:53
join.
51:54
So
51:54
don't
51:54
forget,
51:55
same
51:55
time
51:55
next
51:55
Friday,
51:56
1pm
51:56
Eastern.
51:58
I
51:58
will
51:58
see
51:58
you
51:58
then.
51:59
Thank
51:59
you
51:59
so
51:59
much
51:59
for
51:59
joining
52:00
me
52:00
today
52:00
and
52:01
I
52:01
wish
52:01
you
52:01
a
52:02
blessed
52:02
day.
52:02
Have
52:03
a
52:03
great
52:03
weekend.
52:12
We
52:12
ride,
52:20
We
52:21
rise.