Managing Taxes and Building Income Streams for Your Future

12.15.23: Audio automatically transcribed by Sonix

12.15.23: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Producer:
Welcome to Money Matters with Mike, with your host, Mike Zaino. Get set for a full hour of financial information and economic news affecting your bottom line. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for, and he can help you too. So now let's start the show. Here's Mike.

Mike Zaino:
What's up, what's up, what's up? It's Mike Zaino coming to you from Fort Mill, South Carolina. Happy Saturday people. What a great time to be alive in these United States of America. Money Matters with Mike as a show designed to arm you with information and give you plenty of meat on the bone to chew on each and every week. And today we are absolutely bringing the heat again. On today's show, we're going to have a special guest speaker that'll teach you one way over 100,000 people all across our great nation are fighting back against inflation. And then we'll pick up where we left off from last week's Smart Retirement Series with Smart Tax and Smart Income. Also this week we have a special co-host filling in for Matt McClure, Mister Sam Davis of Retirement Radio. Sam, how you doing today, buddy?

Producer:
Mike I'm doing so well. It brings a smile to my face to hear that energy coming from Mike Zaino. From the mike to your ears, wherever you're listening. Uh, you know, we've done some episodes way back when, and I think I've filled in once or twice since then. And you have? Yeah. Matt's feeling a little under the weather today. So happy to jump back in. And I definitely want to encourage all of the listeners right now to stick around for that interview with Eric Allen, because we had an incredible conversation with him, and there are some things you don't want to miss from that interview. But if you got to run and you're going to miss part of it, don't worry, Mike's got a podcast feed. You can listen to previous episodes on his website. That's Money Matters with Mike comm or your favorite podcast app. So whether you missed last week's show or you got a run and missed part of today's show, we understand it's the holidays. Things are wild. Just subscribe to Money Matters with Mike. Wherever you listen to podcasts, you'll be notified whenever Mike posts a new episode, and Matt and Mike will be back on the air here shortly. He's also got a YouTube channel. Check out Mike on YouTube. Man, YouTube's got everything these days, including Money Matters with Mike, so be sure to subscribe there and check out the show highlights.

Producer:
And if you have any questions about anything that Mike is talking about on today's show, any questions about what goes on in the interview with Eric Allen? Don't hesitate to give him a call. 704 560 1573 or online at MoneyMattersWithMike.com. If you prefer to call, you'll find the phone number online as well at MoneyMattersWithMike.com. But we've got a whole lot more than just an interview coming up. We've got the quote of the week. We'll give that to you in just a moment. And we're going to continue where Mike and Matt left off last week with the smart retirement plan. We know it's coming up on the end of the year. People are thinking about their New Year's resolutions. Why not make 2024 the year for you and your family? Get that retirement plan set. Get that date set for your retirement. Get some things you can count on and start looking forward to what's coming in your future retirement. So we're going to talk about smart tax. We're going to talk about smart income. And we're going to talk about what it's like to work with Mike Zaino how he can help you. Mike I say we get it into the show today. And quote of the week is one of the things we got up first.

Producer:
And now for some financial wisdom, it's time for the quote of the week.

Producer:
This week's Financial Wisdom quote of the week comes to us from Thomas Sowell. At 93 years old, Thomas Sowell is an American economist, author, and social commentator. He's a graduate of Harvard University. I think I've heard of that institution just a bit. He's a he's a senior fellow at the Hoover Institution and has written over 30 books on economic history. And Thomas Sowell once said, it is a way to take people's wealth from them without having to openly raise taxes. Inflation is the most universal tax of all. Hmm.

Mike Zaino:
How apropos is that? Quote, especially with what we as Americans have been living with from an. Inflationary standpoint, uh, just since Covid over the last few years. I mean, it's a way to take people's wealth away from them without having to openly raise taxes. Uh, inflation. We've called it the silent tax before on our radio show, but it has been screaming over these past, uh, three years, especially the fed is doing its absolute best to combat that by raising the interest rates, which causes its own set of issues. But, uh, that is what they're doing and it is coming back down. But, you know, today we have a special guest on the show. He is, uh, a president of a company called Tranzact Card that is literally trying to change the world, one swipe at a time and revolutionize the way banking is done. So without further ado, I want to get into the interview that we had with Mister Eric Allen of Tranzact Card that's Tranzact with a Z Tranzact Tranzact card comm.

Producer:
Hungry for something to chew on. Here's some meat on the bone.

Mike Zaino:
On today's show, I have the distinct honor and privilege of being joined by the president of a company called Tranzact Card. One of the presidents. I found out about this particular card. I've spoken about it before on the radio show, and I thought, well, what a better way than to actually bring one of the pillars of the establishment onto our show and grill them with some questions so that all of our listeners can, um, learn a little bit more about this amazing, wonderful tool that they now have available to them. And so, without further ado, um, Mr. Eric Allen, welcome to the show, sir. Mike.

Eric Allen:
Thanks for having me on, brother. That's part of my life, getting to spend time with guys like you.

Mike Zaino:
If you don't mind, just tell us a little bit. You know who is Eric Allen, you know. And why should our listeners pay attention to anything that you have to say?

Eric Allen:
Now, that's a good question. I'll tell you what, Eric Allen, uh, I'm a believer. I'm a father. Uh, I'm a husband to a beautiful wife that would, uh, not only tolerate me, but bear my children. I live here in, uh, the great Midwest part of our country and Zionsville, Indiana, and, uh, former editor, city teacher, college basketball coach. And then, uh, went down this crazy, amazing, emotional, entrepreneurial journey. I, uh, run a holdings company. A lot of traditional businesses got a 500 and 1C3. And, uh, you know what, man? Uh, I've come a long way. God's not finished with me yet, but, uh, just try to try to follow the golden rule. And, um, always stay open to opportunities, especially if they can really disrupt and positively impact other people's lives.

Mike Zaino:
Yeah. Amen on that. I love I love the, the ability to do exactly what you said in that positive impact. And anytime you can positively affect somebody else and it makes them smile, it also makes you smile. Right? But how did you first hear about Tranzact card? And then why did you decide to become a part of it? And maybe you can speak to, you know, what the differentiator was and what made you decide to become involved in the first place?

Eric Allen:
Uh, that's a great question. Well, here's what's interesting. The last two years of my, uh, season of my life have been, uh, they've been, uh, quite, quite the journey, brother. It's been a blessing in many ways, probably from the outside looking in, uh, financially in other ways. But it has been a grind. A couple of my businesses have, uh, fortunately, really, uh, thrived the last couple of years. But that's required, you know, as any business owners know, I mean, literally 15 hour workdays, seven days a week, nonstop. And I got a call about ten months ago from a dear brother that, uh, that I just love and respect. You know, one of those guys that as you get older, you appreciate they've never told you a half truth, a lie, they've never been disingenuous. So one of my best friends called me up. He's on the corporate side of our movement here with Tranzact Card and said, Eric, I got something that's really disruptive. I want you to take a look at it. And I remember I said, John, I'll look at anything, especially if it's coming from you. But I as soon as I come up for air, I will take a look, I promise. And it was actually my wife, my wife Mike, uh, probably a week later, like, hey, did you ever get back with John? You love John. You take a look at what he's doing. I mean, I think she wanted to see me less than Charity was, maybe to preserve the marriage. I don't know, but I'll tell you what.

Eric Allen:
I jumped on a zoom with Peter Ramsey. The the, you know, the co-founder, the main founder of Tranzact card and, uh, just fell in love with this idea of disrupting the way people think about banking and being a positive social approach, really, to humanity. And I've been saying this for 20 years. You've heard me say this a lot. I've said, man, if somebody can figure out a way for us all to benefit together based off the everyday purchases that people in our communities, our churches, our networks are going to make, whether it's gas, groceries, utility bills, coffee, gym membership, whatever. If we could all benefit together, that would be kind of that holy grail of entrepreneurship. And that's what I saw in Tranzact card. But here's what I did. I did two zooms. With Peter and those guys out in Provo, Utah. And I said, I gotta go. Just, you know, uh, sit eyeball to eyeball, kneecap to kneecap, and just really get a sense of the heart, you know, looking to, you know, the souls are the eyes are the gateway to the soul. And just jumped on a plane in my own time and dime, spent a weekend with them and just fell in love with this idea. Truly changing the world. I mean, I know it's a big God sized dream. I said, man, we can really transform people's lives and ultimately the world with this movement. And, um, I remember my wife right before I got on the plane to come back. She's like, well, question mark, question mark.

Eric Allen:
I said, well, honey, I've got to do it. I mean, this is something that I want to retire into. Uh, this is something that is bigger than anything that I could have possibly imagined on my own. And, yeah, I, uh, uh, cut to the chase, brother. I, as you know, I just shared with 86 of the best people I know. Not everybody said yes, but 86 did. A couple hundred were like, well, maybe not now 86. Just because I've been a serial entrepreneur. I hang out with lots of crazy people, but I, I, I tried to really handpick good human beings like people. And, you know, some are entrepreneurs, some are pastors, some are stay at home moms. I just want to bring in really good people because anything that's relationship driven, you know, ultimately is going to come down to those relationships and the culture that you can co-create. And, uh, about 12 of those 86, we're at the right season of life said, hey, this, this, this can be really powerful and that those 12 have. Turned into over 100,000 that have said yes in just the last nine months. So, um, it's been a it's been a crazy ride. We're just getting started. And even I traded 15 hour days for 20 hour days right now just because I'm currently. But it's a different kind of busy. I'm connecting with like minded people like yourself, Sam. Just good people that really want to help other people in different facets of life.

Mike Zaino:
Yeah. You mentioned, um, making a positive social impact. And when I think of banking, I don't really think of positive social impact experiences. And so, you know, can you talk more about the mission and what they're actually not trying to accomplish, but accomplishing? Um, in, in, in like a meteoric rise in over over 100,000 people in America that have jumped on board this rocket ship literally just in the past few months. So can you speak a little bit more about the social impact on banking that they're actually doing right now?

Eric Allen:
100%? Um, I don't want to offend any of your listening audience, but I'll just tell you up front and center. I mean, if this was linked to any of the big banks, the big regional banks, I wouldn't touch it with a ten foot pole. I mean, personally, I, I think they're evil. I think they're greedy. I don't think they're in the best interests of society in general, certainly not even their own customers. Right. So the idea of partnering up with community banks, minority owned banks, and really, Michael, I people don't realize, you know, that that has always been the bedrock of, uh, our society is the community banking infrastructure. And today there's less than 4000 community banks in our country. So getting down to those grassroots level, uplifting those local communities, supporting local banks, and then designing a financial ecosystem that not only helps the community banks, but all of the members that come into our community to stretch their dollars further, to do things they probably never thought possible. It's just been absolutely remarkable, um, how this has caught on. And we're living in a very cynical world now. People have access to more information. They're kind of seeing behind the curtains, and that can go both ways, right? We know that. But then people are just kind of waking up like, maybe there's a different way. Maybe there's a better way to these old paradigms that quite truthfully, don't serve humanity on a grand scale.

Mike Zaino:
Right? Right, right. So I've shared on my show before that, you know, I was first approached by somebody back in, I think it was late April of, of this year who said, hey, I've got this rewards card, you need to take a look at it. And my immediate response was, I have plenty of those, I don't need it. And so I just dismissed him. And then I was approached by somebody else that I know and like and respect in June. And he says, hey, I got this rewards card. You need to take a look at it. And again, he didn't shake my cage. Uh, enough. He didn't rattle me enough to actually take a look at it. And so again, I passed. And it wasn't until, um, one of my buddies who just happens to be a millionaire, I heard him talking to someone else, and I said, hey, are you talking about that rewards card? And he said, yeah. He goes, I said, I've heard about it. And he goes, he looked at me like I had a third eyeball right here in the middle of my forehead. And he said, and you haven't jumped on it. And I said, are you telling me I should? And he said, uh, yeah. And so can you speak a little bit more about the actual rewards? I mean, what people can do with the card that enables them to not get to spend their money once, but twice?

Eric Allen:
Yeah, it's it's really remarkable. By the way, you heard about this probably four weeks after I joined because I joined in March. I was kind of the first one to get it going here. So you were there at the very beginning. But it's.

Mike Zaino:
Only.

Eric Allen:
Here's what's interesting. I mean, there's so many layers to this, right? And that's why it's so important for people to really carve out 10 or 15 minutes and see the entire narrative from A to Z, because when you talk about banking, well, that's boring. Yeah. Talk about rewards programs. They're scammy. I mean, it's just like, let's be honest. And people are justified in that. In fact, if you've been studying, uh, Congress, uh, they're, they're getting ready to rip apart the credit card ecosystems as we know it, because they're just designed to enslave people into more debt. They lure you in with gimmicky airline miles, hotel points, low Apr, then it jacks up and, you know. So at the end of the day, all we want to do is, you know, and I don't know if people can see this screen, but, you know, we just want to get this this card that our Tranzact card. It works just like a bank debit card into the hands of tens of millions of Americans first. And then we can take it to the rest of the world. We can even take this into unbanked, uh, uh, countries down the road to really do some transformational things. But you kind of hit it on the head. It's like, okay, I have to go spend money or I want to go spend money on certain things. And in most cases. Is you spend the money, it's gone. Unless you have, like, the best credit card I have in my wallet, I've got them all. The best one I had was one that paid me 3.5% cash back. So. Okay, I spent $100. I get $3.50. The problem is, unless my wife pays it off at the end of the month, I usually forget about it.

Eric Allen:
Then I get hit with the 19.99% Apr interest. So there's all the cash is gone, right? Just the interest fees. Well, with this card, keep in mind your money is getting it's secure in one of our community FDIC insured banking partners, okay? It's not just floating around in thin air like it is with Zelle and Venmo and PayPal. A lot of people don't realize that's not secure, right? This you're just transferring in as little or as much as you want. There's no Apr, there's no overdraft fees. And then you simply go out. You swipe, you tap. Uh, let's say you had $100 worth of groceries. Well, you choose to use our card instead of any others. Now you're going to immediately get 100 V-Bucks. That is our reward system. Except it's not gimmicky. It's really easy to understand each one of those. Xbox has a real $1 value within the Tranzact card ecosystem and within the ecosystem, you'll see our Z club, which is eventually going to have millions of all the product name brand stuff. This isn't cheap stuff from overseas. I know a lot of your listeners are probably thinking that a lot of people do all the same name brand stuff. Uh, we do, uh, weekly flash sales where you can use all Z bucks to get on a cruise ship, get a pair of Ray-Ban sunglasses, get some things that you probably wouldn't buy on your own necessarily right away. But hey, if it's all Xbox and a little bit of shipping and handling, why not? And then, um, we have a travel club platform right now.

Eric Allen:
Every day people are like, hey, I just saved 30 bucks on hotel. I just say 300 on a cruise. So the key is that there has to be real value with in the ecosystem for those Z bucks. And I would challenge anybody going to your, uh, current credit card back office, try to do the algorithm on your airline miles or the other reward points. And it I think most people say, yeah, it's kind of gimmicky. I mean, it's just they're just used to the gimmick, right? Yeah. We actually want people to engage with our ecosystem through our app, which is world class. There are world class website, back office, digital experience. So, uh, that stickability where, um, the only downside to this is the Xbox really do become quite addictive. It's a good addiction, but you're going to want to start accumulating more and more and more of those Xbox. Because to your point, in the Midwest, we call it a twofer. Hey, take that money you're going to spend anyway. Spend it again in the form of Xbox. Buy down the price of the items you really want, maybe get some items for free, get on some vacations. And I think the the greatest byproduct, the thing I take the most pride in. You're a great example. It's really the the caliber of the people that we're attracting. I mean, they're really good human beings. I mean, we'd have to overhype it. Our truth today is good enough. Today's the worst we'll ever be. Next month. The worst will ever be. It's just going to continue to grow and scale and add more and more everyday value to people's lives.

Mike Zaino:
Yeah, I love the fact that you say today is the worst you're ever going to be. And here's a company that's less than a year old, right? So the ecosystem as it stands today is not nearly going to be in a year from now. We're going to probably look back and think, wow, you know, how funny was it back when we had you on the radio show and you start to see, um, products that you can find pretty much anywhere at any time, except now you can go to that direct retailer and check their price. You can go to Amazon and check their price, or you can go to the Z club and check their price. And guess what? The price is going to be the same within a dollar or two. But here's the difference on our ecosystem or the Tranzact card ecosystem, you can utilize your Xbox and then buy down that product's price to near wholesale pricing, which in and of itself, I mean, I think of the single mom who is trying to, you know, put diapers on her kids. I think of the senior citizens who are living on a very fixed income. You know, a lot of them are dependent upon Social Security. I think of our lower wage earners like police and firefighters and educators, which in and of itself is an absolute tragedy in the United States. But I think about how those people are able to spend their money not only one time, but then get dollar for dollar. So correct me if I'm wrong, but if they spent $70 at the pump, they're going to get 70 bucks if they take their kids out to a movie and spend. Heck now, these days it's probably close to $100 on on tickets and popcorn, right? But they're going to get $100 in Z bucks. And if they take their wife out on a date night and they spend $80 on a, you know, a meal out with their spouse, they're going to get. $80 again to spend. So just in those three instances right there, earning a lot of money to be able to spend again.

Eric Allen:
100%, man. I mean, it's funny you say movies because the first time I swiped my card, I just loaded 200 bucks into my account. I just transferred from my primary checking account into my Tranzact card FDIC insured account. And we went to the movies. I took the whole family. Now the 200 didn't even get us to the second round of concessions. But I'm getting a text notification. I'm getting the email notification. I see the Xbox accruing very secure environment. I'm like, wow, being an IT guy, I know what it takes just to get to that point. And you know, it's easy to focus on what we don't have. People don't realize, you know, it's a game is on 35 years to get to where they're at today okay. And I'll just out of the bag. By the way friends if you want to participate, it's $25. If you join before the end of the year, it's $25 one time for life. That comes with the Eric Allen Money Back guarantee. If you don't love your Tranzact card within a few months, I'll give you your 25 bucks back. We just need we want you to come in, explore and see the value continue to grow and grow. Last a that I think most people don't realize. Here we are. And what still is. We can talk about the direction our country has gone, but it still is the most prosperous country in the history of civilization. And it would shock most people, but it wouldn't surprise them once they think about it. There's over 100 million Americans in our country right now.

Eric Allen:
And some of those professions you alluded to who have to get very creative to be able to pay their bills on time each month. That money is getting eroded. The value is getting eroded through inflation, for sure. For 100 million people in our country either have to get really creative to make ends meet, or they can't pay their bills on time at all. So there's a good target market that we can go and help. And if all it does, it allows a mom to buy an extra box of formula diapers that they normally wouldn't be able to do. I mean, that's a win, right? If it allows them to get on one extra vacation a year, that's a win if it allows them to get one really cool flash sale item that they probably wouldn't ever buy on their own, that's a win, let alone all those other ones and needs that they're going to see in the Z club. So, yeah, uh, there's, uh, some Peter Drucker. I don't know who's credited with this, uh, quote. It says, if you wait if you're not embarrassed by the way your product looks in version one, you start it too late. Now, uh, most people aren't going to be embarrassed when they see all the things we do have. You know, this world class website, the app, the e-commerce that we built from the ground up the last months. And heck, Mike, when you and I joined, we didn't even have a Z club. We actually have a Z club now. It just keeps getting better and better.

Mike Zaino:
It does. And to that fact, there's also on the app they have a product called the Easy Power Card that if I'm not mistaken, Eliza allows you to buy gift cards to other retail establishments. So we're talking about name brand retail establishments, from restaurants to big box stores to, um, luxury items. And when you do that, you also earn the equivalent on what you spent on the gift card in Z bucks to then go spend again. So, I mean, I think that that is huge in and of itself. But, you know, a lot of folks are, you know, have said that just this just sounds way too good to be true. I mean, because they are so used to the 1%, 1.5%, you mentioned 3.5%. I happen to have a Capital One, you know, spark card that that pays 2% cash back. But, you know, how exactly are the banks making money and how can Tranzact card afford to actually do this? Because on the surface, all right, it does seem too good to be true.

Eric Allen:
Yeah, I get that a lot too. And I say, well, you know, first of all, closed minds don't get fed. We know that. But to me it's not a huge ask either, especially if it comes with, uh, Eric Allen money back guarantee. It's like, hey, it's $25, guys. I would almost guarantee you within a few weeks or a day, you're going to realize $25 worth of value when you get that card. But you know, the way this whole thing works, it's really brilliant. The way it's set up when you peel back the layers, you know, first of all, you know, we've already got 100,000. Imagine we have millions of people. They're paying $25 for a Tranzact card one time. Anybody that joins after the start of the year is going to pay $25 one time annually. You can do the math on that. Okay. And then when we go to these banks, think of the leverage we have. What do banks desperately, desperately want? What are the community banks really bad at? Marketing. They need customers, right. So we're basically bringing them customers because at the end of the day, all the banks want are the core deposits on their books for the checking accounts. Okay. They're we're setting up checking accounts with our banking partners. They love that. And then within our card processor, okay. The banks and then you'll see here, uh, well, we know Mastercard has come to the fold now, so we just let that cat out of the bag. They came in and gave us more favorable rates. So we're able to negotiate a lot of those interchange fees.

Eric Allen:
Now, a lot of people aren't well versed on interchange fees. That's what, uh, that's what makes the banks and the merchant processors a ton of money. I mean, I challenge you going to any big city in America, go to any small town. The biggest building is going to be a bank, and you're going to see Mastercard, visa, American Express, discover plastered everywhere. Right. Mhm. Well, you know, now we get to play in that world. We get to negotiate and keep and retain a portion of those interchange fees and swipe after swipe after swipe after swipe or tap after tap after tap generates interchange fees. So then we get to the Z club the Z club. If you're looking at these different revenue centers for the company, unlike Amazon traditional retailers, Tranzact card doesn't have to do the 3X5X7X markup. On the product's right. It's a brilliant model because we're already profitable through these other revenue centers. That's what allows us to negotiate and get these great rates on products that people really want. So I get that all the time. People like this too good to be true. How is that car going to stay profitable? You guys can go bankrupt like next month. I hear that I'm like, well, now I explain it. You know, the shrewd business people are like, oh my gosh, that's brilliant. Why did anybody ever think of this? I'm like, well, thanks to Peter Ramsey, who started the US Bankers Association, our main founder, you know, we're able to do these things.

Mike Zaino:
Yeah. And I think you, you hit the word or the nail on the head when you used the word disrupter. I mean, this is very similar to the way Amazon because you mentioned them, disrupted the retail business. It is very similar to the way that Netflix disrupted our movie going experience. Right? I remember having to return a rewound VHS to, uh, blockbuster. And that went out the door. Uh, I'm also watching on Netflix right now. Uh, the the story of how Uber came into existence and Uber revolutionized and disrupted the cabin and transportation industry. So I love the fact that Tranzact card has a chance to disrupt, um, a formal, you know, stuffy banking industry and give the power back to the people in the form of extra dollars to spend. But, you know, in its brief history, has has the company undergone any growing pains? And what would you say to those folks who, you know, are saying, man, this, this will never work, right? Because I'm assuming that there were people who said that Netflix would never work and Amazon would never work and Uber would never work. But what would you say to those folks?

Eric Allen:
Well, what's great is I've got my Netflix subscription on my Tranzact card. Everything is on my Tranzact card. So we get to play in their world too. So, you know, here's what I would say. And I thank God for the business experience I've had. I've started 17 traditional businesses, five have done very well. One has done exceptionally well. Okay. And I can't remember starting up a single one of those businesses for less than five figures, and a lot of them, six figures, multiple six figures. I can't think of one.

Mike Zaino:
Facts.

Eric Allen:
And I can't remember paying myself. The earliest I would have paid myself would have been about 18 months after starting those up. That's just the life of an entrepreneur. Are your business owners are probably not in their head like, yeah, I'm probably somewhere like, you're able to pay yourself in less than two years. That's amazing. So here's the thing. We're trying to disrupt not only banking, e-commerce. We have a whole charitable giving fundraising component coming out at the start of the year. We're going to completely shift that paradigm of fundraising and charitable giving. This idea of entrepreneurship doesn't want to participate in the financial opportunity. We're disrupting some of the largest sectors. I never wished for it to be easy. And those that come in now, getting a cart is easy. That's a no brainer. 25 bucks. But for me, I remember flying back on the plane and I said, God, if it's meant to be, you're just gonna put the right people on the corporate path and the field leadership path, and we're going to come together and it is going to be something just magical. And we are going to come to scrapes, bruises, broken bones. But that's just the life of any startup. I mean, the whole key to any startup is a survival of your first year. Yes. Then at that point. So here we are. We're not even a full year old. And again, it's easy to focus in this microwave society and that microwave mentality. What we don't have yet, look at everything we do have and most importantly, the proof of concept. With over 100,000 people that have said yes, this makes sense. I want to be a part of it. It's pretty impressive.

Mike Zaino:
I think it is extraordinarily impressive. And not only that, you're talking about a list of national organizations that have contracted to support the Tranzact card organizations like Make-A-Wish Foundation, Saint Jude's Children's Research Hospital, The Salvation Army, triple A, AARP, and so many more. Now, Eric, why in the world would those organizations agree to do exactly what they've agreed to do?

Eric Allen:
I know it always kind of cracks me up when you know, my my buddy who I try to save over and over and over is like, I don't know, man, be careful. I don't think that's going to work. And I'm like, brother, I mean, no, but have you vetted us to any degree that these major organizations and celebrities, influencers have? I mean, they want to be a part of that because they see it as cutting edge and disruptive. They see the power in what's already unfolding and what's going to unfold, and they want to be a part of it. So it's um, um, what, you know, when you're able to say you're okay, you're a startup that scares people. I mean, it scares the masses, right? We'll get back to me when you're two, three, four, five years old. That's fine. Tranzact will be a heck of a lot better then than it is today. There's no doubt about it. But I also say, you know what? Um, everything rises and falls on leadership. And the fact is, you know, we just announced our new banking partner. It's one of the larger community banks in the country, and they have international divisions. They are chomping at the bit to work with us. Having that steady foundation allows us to plug in more of the smaller community banks that don't have that technological infrastructure and customer support to handle, you know, droves of new customers quickly. And you talk about being FDIC insured with your money and, you know, it's and then you start talking about the brands that we already have in the Z club and the partnering organizations. It's like, I haven't ever seen a a startup that brings that much credibility right out of the gate.

Mike Zaino:
Neither have I. Neither have I. So, you know, I just think that any of our listeners who who want to get the card, Sam, you I think you were going to kind of just you know, wrap this up. And, Eric, thank you so much for your time. But, you know, Sam, go ahead.

Producer:
Yeah. Eric, I appreciate you coming on the program first. Just wanted to tell everybody listening to Money Matters with Mike and listening to the interview here with Eric Allen who visit fightback dot Tranzact card.com. And that's Tranzact spelled t r a n z a seat fightback dot Tranzact card.com to learn more about what Eric's been talking about today. But Eric, Mike and I were talking this morning before we recorded the show. And you know, I was saying, man, I feel like the best you can ever do with a credit card is maybe you save a few thousand dollars with, you know, airlines and hotels. And I got to tell you, I live in Atlanta, Georgia, and I've got a credit card that's affiliated with a airline I will not name, but I've flown all over this great country to Italy and back this year. And what you get in return for that is quite disappointing. And I just feel like a lot of people are realizing that their loyalty to these certain brands is not being rewarded. Why would you not participate in something that could allow you to engage with so many different brands, rather than be tied to just one? And for me, I see that as the primary value offer you guys have.

Eric Allen:
Hundred percent, man. And here's the thing. If you want to keep using your other credit cards, keep using those. I mean, we actually have a program that's going to come out that's going to allow you to double dip with us. I mean, we thought of all those things, but, you know, I was that guy. And then because I was I was American Airlines, I'm like, no, wait a minute, okay. I just put $100,000 on this card. And I got a I did get a business class round trip from here to the West Coast, and then they were all gone. I was like, where did my that it on my miles gone? I was like $100,000 flight. I mean come on. So I think people are waking up. I think everybody can go research what's going on within our, uh, congressional legislature. And it's going to it's going to be a really huge shift coming. Because while some of us may enjoy those perks, a lot of others get lured in and then they're just enslaved to that debt. So, um, we're the exact opposite. We want to help people stretch their money further and have that money to pay down the debts that many people have.

Mike Zaino:
Yep. And so whether it's something that you have on autopay or whether it's something you're just going to go out, we're not asking anybody to do anything that they're not already doing. You don't have to train yourself to pull out a different card. I mean, you just use the the Tranzact card. I mean, it is truly that simple. And once again, that web address is fight back. If you want to fight back against inflation, put more money in your pocket. It is fight back dot Tranzact card with a z.com fight back dot Tranzact card. Uh. Com. Eric, thank you so much for agreeing to come on the show and and impart your wisdom, uh, to our listeners. And, and I'm hoping that a lot of them will actually go and, and spend $25 one time. They've got your guarantee and, and, uh. Wow. I mean, because my annual fee for my credit cards are much higher than $25. And when we're talking about 25 bucks one time for life, as long as it's done by the end of the month. Um, guys and gals listening to this, that is something special. So, Eric, again, thank you for your time and I wish you the best, sir.

Eric Allen:
God bless you, brother. Keep up the good fight. I appreciate you.

Producer:
Mike. Love some of the topics that he's talking about getting people to fight back against inflation. I mean, everybody listening knows how important every dollar is. Every dollar counts. When you've got a family and you've got a budget and Tranzact card is really trying to change the game to keep more dollars in people's pockets.

Mike Zaino:
And how good is it that you can go to a website fight back dot Tranzact card.com that's Tranzact card Tranzact is with a Z. How good is it that you can go to that website to become part of this and start earning dollar for dollar rewards? I mean, I just think that is huge. You know, some people are nervous and they're intimidated by meeting with financial professionals. And and I want to address some of those concerns, you know, and I don't want anybody to be nervous about picking up a phone and giving me a call, because in our initial consultations, we're simply going to help our listeners answer those very important questions that we've mentioned numerous times before on the show. Like, you know, number one, what does a successful retirement look like to you? You know, who are you doing it with and how are you enjoying that time? What are you looking to accomplish? Do you have any specific goals? And then how do you plan to create income each and every single month to, you know, support those retirement dreams and aspirations? So you know, what you hear on the radio show is what you're going to get on the telephone. It's what you're going to get in an initial consultation. There is no pomp and circumstance and no pretense. I don't care whether you have ten grand or 10 million, everybody gets the same Mike Zaino.

Producer:
It's pretty simple planning, Mike. It's if you're planning a vacation, what's the first thing you got to figure out? We got to figure out where we're going, who's coming with us and how we're going to fund it. And retirement, ideally, is going to be a 30 plus year vacation for you and your family. And everybody's got a different idea of what a good time is on vacation. So I think starting with those really simple questions, before you even look at a spreadsheet, before you even look at a statement, figuring out what the objectives are, where are we going and how are we going to fund it?

Mike Zaino:
Mhm. Amen. Brother.

Producer:
Picking up where we left off with the smart retirement plan. Smart tax. Everybody's got to pay them. Hey what are the two guarantees in life. Well death and taxes. We're going to talk about taxes here and avoiding that retirement tax bomb. The listeners have heard about this before on previous episodes of Money Matters with Mike. But for everybody listening, who needs a refresher? Mike, what is that retirement tax bomb, and how do people know if they might have a problem?

Mike Zaino:
Yeah, well, I mean, a ticking tax time bomb is like. I love to refer to it that way. I don't want anybody to have it. But did you know that different investment accounts are taxed differently? And by understanding how each of your accounts are taxed, you can ensure that your money is working, how you need it to and more importantly, when you need it. And so, you know, we have a smart way, uh, of helping folks avoid that excess taxation. And so remember, Smart is an acronym. It stands for specific measurable achievable relevant and then Time bound. So you know, you can kick the IRS out of your retirement accounts by utilizing two major strategies. The first one that we talk about often on the show is by utilizing a Roth IRA. And that's a type of individual retirement account that allows you to contribute after tax dollars to an account that grows tax free, tax free for life. This means that you're paying the taxes on the seed money that you contribute to the account up front, but you'll never have to pay taxes again. And so therefore, if the government decides to change the rules and hike tax rates in the future, those tax increases should not affect that portion of your portfolio. So again, the benefits of the Roth, you get tax free withdrawals.

Mike Zaino:
Um, so you don't have to pay the tax ever again. You can, if you're eligible, convert a portion of your traditional IRA or your traditional 401 K, 403 B or Thrift Savings Plan. For an example, if you're a federal employee over to a Roth IRA, which can be beneficial if you expect your tax rate to be higher in retirement. Unlike a traditional IRA, you as long as you have earned income, you can contribute to a Roth IRA. The next one is a big one, because the end of the year is the deadline for taking required minimum distributions from all of your tax deferred qualified accounts. Well, guess what, folks? Roth IRAs do not have required minimum distributions, so you don't have to worry about that. And you get the benefit of compound growth potential because it's growing tax free. It's going to grow faster than in a traditional IRA or any other type of, uh, taxable account. Okay. And it also helps with liquidity and estate planning because of the fact that you can withdraw your contributions to a Roth IRA at any time. Um, although you will owe taxes and penalties if you withdraw them before age 59.5. And the assets from a Roth IRA can be passed on to beneficiaries without the need to pay taxes on those inherited assets.

Producer:
Yeah. And, Mike, just as a sidebar, this is something that I learned about years ago after I got married. One of the things that my wife has is an inherited IRA from her father, who passed away. And we still take required minimum distributions to this day based on her deceased father's age. And so this is something that we deal with as someone who inherited an inherited IRA. If it had been a Roth, it would be the same rules. We could take the money when we wanted and the distributions would be tax free. And where the tax bomb, I think, really starts to paint a picture for people. Imagine that vacation you want to take you and your spouse and you've budgeted $10,000 for your vacation. But hold on a second. If you take out $10,000 out of your tax deferred account, you find yourself, let's say, in the 25% effective tax rate, hold up. You've only got 7500 now left over for your vacation. So you're going to have to take out 13, almost $14,000 to fund a $10,000 vacation, depending on your tax bracket. That is the tax bomb that we're talking about. That is the problem that we're looking to help people avoid, no doubt.

Mike Zaino:
So if your employer offers a Roth option for your employer sponsored plan, whether it's a 401 K, 403 or TSP, you absolutely, um, should consider go ahead, going ahead and contributing some after tax dollars and paying tax on the seed instead of the government taxing the farm during harvest time and harvest time I'm referring to is your retirement now the other way that you can have tax free income in retirement, believe it or not, is through life insurance. And it's important to know which types of life insurance policies are available and more importantly, which one is right for you because they are not all created equally. So not only can life insurance help support your family when you pass away, but, uh, and as well as covering your funeral and your final expenses. But some types of life insurance can actually give you tax free income during your retirement. And so the types that do that are going to be permanent whole life, uh, life insurance as well as universal and indexed universal life insurance. And we've spoken about that before on our show. And I happen to be a big fan of the IUL, the indexed universal life insurance, because the money that you place into this policy is linked to an underlying index, a market index. And so you can only make money, you cannot go down. And so this type of policy combines the death benefit of traditional life insurance with the potential for cash growth value based on that performance of the underlying stock market index. So you know, you can take advantage of that potential for equity market appreciation without directly investing into the stock market.

Producer:
Yeah. And that's why these products that are offered by life insurance companies, in my opinion, are underutilized by most people preparing for retirement. It gives you that protection and that security that you need, because you're about to enter a 30 year journey into your retirement, you want to make sure you can get from point A to point B, and it could be longer than 30 years. People are living longer than ever. It gives you that protection you need with the potential for those market light gains without the risk. And we talked about the banks in our interview earlier in this episode. One of the great things about working with an insurance company when it comes to your retirement is that reserve requirement. You ask me, Sam, what does that reserve requirement? Well, let's talk about the banks. The banks are only required to keep about 10% of the money you give them in reserves. The rest they're going to use for business operations, paying their employees, lending out to other customers. But when you put your money in with an insurance company, they are legally required and compelled to keep at least 100% of the money you give them in deposits. And I think that's an underutilized and unappreciated aspect of life insurance for people.

Mike Zaino:
Yeah, I do as well. And especially when you have the ability if you start early enough. Right. So everybody listening today, you're the youngest and healthiest you're ever going to be today. Because as we age, our bodies tend to break down. And guess what? The pricing of the actual cost of insurance is based on your attained age. So, you know, the folks who are really forward thinkers and forward planners in their 30s and 40s, uh, those are the ones that that we can really help the most when it comes to. This type of of life insurance and future income planning. So I want to kind of bridge that gap now from taxation and go over to income. And I want to stress how important it is to have retirement income more so than just having retirement assets. Again, smart, specific, measurable, achievable, relevant and time bound. Too many people think that retirement is about building this really big nest egg. I remember fidelity used to have the commercials where people were walking down the street, and all their numbers were calculating over their head. Well, it's not about the number, it's about how much that number throws off in retirement income. Because if at the end of the month you have more month than money, that is not a good position to find yourself in. And so you need to have a plan to replace your income and fund those monthly expenses. The sad reality is that, you know, a lot of folks are making this, and if you were watching me on YouTube or on Money Matters with Mike comm, you'll see that I'm holding my hand up high. They make this while they're working, but then when they retire, they're making this right here and there's a big gap. And so what we want to do is have a plan to fund that gap. Keep in mind some income sources are taxable in retirement, while others like we just discussed, are tax free.

Producer:
And once you get into retirement, the income, those paychecks and those play checks, by the way, are really what you're going to be worried about really what you need week to week and month to month to fund your expenses, both the discretionary and the non-discretionary. So when it comes to smart income, Mike, when it comes to the various sources of income that people are going to receive in their retirement, the first thing that people always want to talk about, and I don't blame them because they've been paying into the system for decades. Social security, yes. And first, I think it's important to kind of talk a little bit about the history of Social Security, because that helps explain why we are in a little bit of a pickle today. Yeah.

Mike Zaino:
Well, when Social Security was first introduced back in 1935 by President Roosevelt, you know, no, number one, you were supposed to have been dead for four years, right? The average life expectancy in 1935 was 58. And you couldn't draw it until you were 62. And so, you know, when you when you look at how many people were paying into the system versus taking out back then you had way, you know, way more people paying in than you have taking out. And so when you flip that script and you look at today how people are not dying at 58, heck, they're living well into their 80s, if not 90s and hundreds, and we have so many more people taking it out for a much longer, sustained period of time. You know, as life expectancy of Americans increases, there are concerns that the program will not be able to support retirees, um, with less people in the actual workforce. And they have said the Social Security Board of Trustees has estimated that the Social Security funds will be depleted by the year actually 2033, and will only be able to pay out about 77% of scheduled benefits unless something changes. So we all know that there are some changes in the work. Uh, and don't forget that the government loves to change the rules on folks.

Producer:
Yeah, that's absolutely right. And anybody listening who's probably a little bit concerned, they're saying, hold on a minute. I've been paying in 100% of my hard earned tax dollars for years, and now you're saying I might only get 77% of scheduled benefits? Well, the government's got financial issues. And what are the two ways they can fix that? Well, they can either cut spending or raise taxes. Well, yeah. The first solution cut spending. Washington isn't too good at that. They're not. I mean, and it's, uh, it's kind of like my wife around Christmas time. It's the, uh, the budget kind of goes out the window a little too often. So, you know, and raising taxes, you know, we don't have a crystal ball, but I imagine a lot of people listening might expect that taxes will go up, at least at some point in the future for their lives.

Mike Zaino:
Yeah, I think that taxes are going to go up. In fact, I can tell you the day they're going to go up because the Tax Cuts and Jobs Act that President Trump signed into law is set to expire on December 31st of 2025. So unless something is done about it January 1st of 2026, folks, taxes are going up. Um, I like to stress the importance to our listeners of not planning to count solely on Social Security. If you get it, great. If it exists in the same form that it's in now, hey, great. But let's not plan on it being there as it currently is. I mean, after all, I've said it before. For on the show. Social security is the largest legal Ponzi scheme in the world. We've got people who are working now funding all the folks who used to work, and those people funded the people who retired well before them. So if you find yourself, you know, in the possibility of having this retirement income gap, then we need to sit down and at least have a discussion about how we can design a plan to where you're not experiencing any type of gap and in fact, have a surplus in retirement, because the best and most happy retirees have the peace of mind, knowing that their retirement income will last at least as long as they do.

Producer:
Yeah. And Mike, with the few minutes we got left in today's show, I want to kind of extend that helping hand and give everybody listening the opportunity to meet with you, sit down with you, make 2024 the year they get that retirement plan in place and that income plan, that smart income plan is such a big part of it because you want to, if at all possible, replace or even beat that paycheck that you're receiving currently. And Mike, what's the process like? I know people go to Money Matters with Mike comm. They listen to the show every week. They even give you a call. We'll put the phone number up on the screen and we'll give it to you here before we close out the show today. But, Mike, if I call you up, I'm listening to the show today. What's that process like?

Mike Zaino:
Right. You know, if our listeners aren't 100% positive that they're going to have a great retirement, if they have any doubt whatsoever, they can pick up a phone and they can give me a call and we're going to have the first call is just, you know, kind of a discovery call, just kind of get to know each other and see if we're a fit for each other. But, you know, most of the clients that I deal with, we move on to a full retirement plan consultation. And these comprehensive consultations don't cost any of our listeners a single penny. And as well, there is absolutely no obligation. You're only going to work with me if I am better for you than what you currently have. And so we're going to take a deep dive into your own financial situation. I will discover exactly how much you are paying in fees. We're going to look at, uh, cutting unnecessary costs out of your expenses, whether those are in your daily household expenses or whether they're in your IRA or your 401 K or any other type of retirement savings vehicles, we can also help you with Social Security maximization planning. Okay, as well as Medicare planning. We just finished the annual enrollment period for Medicare this past week. But again, bottom line is we compare your current situation to what's possible if you work with us here at Money Matters with Mike. And I don't take lightly the fact that guess what, folks, it's your money. And if it's important to you and it matters to you, then it's important to me and it matters to me. So we're just a phone call away. Reach out. Get started on your own custom retirement plan (704) 560-1573 or visit us on the web at Money Matters with Mike comm. Email me if you want Mike at Money Matters with Mike comm or send a carrier pigeon, whatever you do, alright? Don't delay on tackling the income portion of the rest of your life.

Producer:
You heard him 704 560 1573. The number to call is 704 560 1573. You'll find the number and a whole lot more online at MoneyMattersWithMike.com. If you missed the interview earlier in this show or any part of today's episode, you want to catch up on past episodes with Mike and Matt. He'll be back on the show next week. Go to Money Matters with Mike wherever you listen to podcasts and subscribe so you never miss an episode. Mike, I appreciate you having me back on the airwaves with you today. It's a pleasure to speak with all of your listeners and get in touch with Mike and make 2024 the best year.

Mike Zaino:
Yet, no doubt. Uh, thank you, Sam, for joining us. Thank you more and mostly to our listeners out there. Without you, we don't have a show. Whatever you're doing on this holiday weekend right before Christmas, I hope you enjoy it to its fullest extent and as always, make it a great day.

Producer:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with Mike dot com or pick up the phone and call 704 560 1573.

Producer:
not affiliated with the United States government. Mike Zaino does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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