CHICAGO, IL—Scott Tucker is an investment adviser representative, and a retirement income planner. Tucker helps Baby Boomers figure-out how to get the most out of their Social Security retirement benefits, and helps them with their pension elections, if they have a pension.
Tucker shows them how to “take-control” of their 401(k)s, even if they’re still on the job.
“A lot of folks don’t know that they can rollover their existing 401(k), into a traditional rollover IRA, and get potentially better investment options than they’re offered at work,” says Tucker. “They can do this, in most cases if they’re 59-1/2 or older, but sometimes younger, and still contribute to their 401(k) at work, and still get their 401(k) match.”
He spoke to Mark Imperial about the issues that Baby Boomers are facing as they plan for retirement, and how to make sure that they’re on track.
“Most folks are paying hidden fees and expenses, that are funneled back to their existing adviser, because many advisers are not fiduciaries.” explained Tucker. “If their current adviser is not a fiduciary, then their business model may include commissions kicked-back from mutual funds. My registration requires me to act as a fiduciary, meaning that I have to put the client’s best interests first, and that’s how I think it should be for all advisers. I have to recommend the best option for you in any given area of your finances, not just something that’s ‘suitable.’”
Tucker’s firm also helps Baby Boomers to reduce the volatility of their investments, if that’s a concern.
Typically, Tucker’s clients are 50 or older. Most have $250,000 or more of investable assets, although he doesn’t have a minimum requirement to work with him.
During the radio interview, Tucker went on to discuss common pitfalls and misconceptions preventing Baby Boomers from ensuring they have a successful, abundant, and worry-free retirement plan.
Tucker explained how, “procrastination is really deadly. And the truth is, that if you don’t have a plan now, it’s not going to ‘be ok.’”
He revealed that many either, “put their heads in the sand, and think that everything’s going to be ok. Or, they think that there’s nothing that can be done to improve their situation.”
He then revealed the good news that, “there are many small changes that we can make together, that can make huge improvements to you retirement. Even if you don’t think you’ve saved enough, you might be very surprised what we can do together help your savings become enough by the time you retire, in many cases.”
However, Tucker explained that, “if you don’t eliminate hidden fees and expenses in your investments now, your retirement could be very badly affected over time.” Uncovering hidden fees and expenses in Baby Boomers’ investment portfolios is a free service that Tucker offers to folks that meet with him.
From time to time, Tucker teaches seminars on how to maximize your Social Security retirement benefits, by using strategic claiming strategies.
These seminars are how a lot of folks first discover Tucker, and the services he provides, while others are referred to him by existing clients.
In his Social Security seminars, most are surprised to learn, that not only can they make huge improvements in their Social Security benefits through strategic claiming strategies, but also can benefit from his counsel when it comes to their pensions elections, IRAs & 401(k)s asset allocations, as well as the fees & expenses they pay in those accounts.
Together with his clients, they figure-out how much income they’ll need in retirement. And often to their surprise, “it’s not half of what they’re making now, it’s the same as they make now.”
Tucker revealed, “the brutal fact is that in retirement, you’re going to be taxed on non-Roth IRAs and 401(k)s as earned-income. It’s the end of tax-deferral. And in many cases, much of your Social Security is taxable. And your pensions are federally-taxable too.”
To overcome these taxes, he helps his clients to develop a plan to create additional guaranteed income, while reducing risk.
Tucker says he’s able to help his clients create a solution to fix their “retirement income gap,” a problem that they didn’t know they had.
Unlike others, Tucker refuses to charge planning fees. “Some advisers charge as much as $2,000, and I just don’t see the need to do that to people who are just looking for a little help.”
Among many fees and expenses Tucker exposed, is the 12(b)-1 fee. “It’s a fee that’s charged by many of the higher-expense mutual funds, and it’s money that’s funneled-back to your non-fiduciary adviser. Over a few years, these, and other, unnecessary fees and expenses end-up costing you a fortune, compared to if you were working with a fiduciary, who’s legally-bound to put your interests first.”
At the end of the radio interview, Tucker offered listeners a complimentary, no-cost investment analysis.
“Where I usually start with a new client, is with a detailed investment analysis. It’s really easy on your end. All you do is show me your investment statements.” Tucker went on to explain, “I have my analyst create a report for you, that uncovers all the hidden fees & expenses you’re paying. People are shocked to see what they’ve been paying. In almost every case, we uncover expenses that you didn’t know you’ve been paying.”
“We almost always find that your asset allocations are off. With one recent client, we found that 25% of her 401(k) has been sitting uninvested, in cash, for years,” Tucker said. “This investment analysis is like ‘x-ray specs’ for your retirement savings.”
“I also run a free Social Security timing report for my clients. And, I can help you to figure-out which pension election strategy is best for you too,” Tucker said. “I can even advise folks on reverse mortgages. For some, they make no sense at all. For others, they warrant serious consideration.”
“As a fiduciary, I’m required to show you all the pros & cons of everything we discuss. This is why working with an adviser who’s a fiduciary is so critical,” he said.
Scott Tucker is President & Founder of Scott Tucker Solutions, Inc., and is an Investment Adviser Representative with Wealth Financial Advisory Services, LLC, an SEC-Registered Investment Adviser.