Intro: Broadcasting live from the Business RadioX Studios in Atlanta, Georgia. It’s time for High Velocity Radio.

Lee Kantor: Lee Kantor here another episode of High Velocity Radio and this is going to be a good one. Today on the show, we have a partner with Gerson Preston Klein Lips Eisenberg Gelber. We have Stuart Rohatiner, welcome.

Stuart Rohatiner: Thanks, Leigh. Welcome. Thank you. Happy to be here.

Lee Kantor: Well, I’m excited to talk to you. It’s I guess any time of year is a good time of year for tax folks. But I guess this is a good time as any a lot of information to share about the tax situation that’s happening here in the country. Where would you like to start?

Stuart Rohatiner: One of the things I found a little interesting that’s recently come online to these Trump accounts.

Lee Kantor: Yeah. So let’s start there.

Stuart Rohatiner: So, you know, as part of the new tax bill about a year or two ago. They have these things called the trop accounts, which are really another way to, uh, facilitate savings for, you know, young individuals. So the really nice thing about these accounts is basically, you know, unlike an IRA or other types of things, you don’t need any earned income to put money away. So there’s two key features here. If you are born between 2015 and 2018, the government is going to, uh, put $1,000 away for you. Just it’s as though a gift free gift. So why not take that and, and every year up until you’re 18, I believe family members can put in as much as $5,000 into this account on behalf of the, uh, kid or child. And then, um, an employer can put up to 2500 and basically get a deduction and that doesn’t count towards the $5,000. So what’s interesting is, you know, if you extrapolate this out, say for 18 years, you might have 90 or 120,000 saved. You could flip it then maybe to a Roth IRA, because at that point, maybe at 18 or 19, the individual doesn’t have any income. And so it’s a small tax event and then it’s there. It could grow tax deferred. And if you extrapolate it out, I know you and I have talked in the past about the power of compounding interest that could grow to three, $4 million. Crazy. But you know, the other thing I like about the Trump accounts is basically there’s an app that came out last week by the US Treasury secretary’s office. And it’s just, you know, it’s you can download it off Google or I believe Apple. And it just gives you some nice simple information. There’s 6 or 7 articles. It’s just a nice way for young individuals and families for young kids to get involved in investments and financial planning, which is so important these days.

Lee Kantor: Now is the purpose of this account just to be funded from kind of 0 to 18, or is it meant to replace like retirement savings? Is it a different type of IRA or a Roth?

Stuart Rohatiner: It’s a, you know, it’s a separate account. It’s basically a fund from zero to age 18.

Lee Kantor: So then you can put money into it 0 to 18. Are you allowed to keep putting money in or it’s at 18. You then have to do something.

Stuart Rohatiner: I believe you have to roll it over into something at that point.

Lee Kantor: Okay. So at that point, then you could, like you said, put it into a Roth or something like that. That makes sense. That so it can keep growing kind of with minimal taxes or no taxes.

Stuart Rohatiner: Exactly. Yeah.

Lee Kantor: So now, um, is it live like so can people start doing it now?

Stuart Rohatiner: Yeah. So you could sign up And for the. Either you fill out a form, I believe it’s a form 4547 so either your CPA can fill that out when they file your tax return, or you can go online or get the Trump app. Trump accounts.gov. Or you can download the Trump accounts app from Google or, um, Apple. And then basically you just fill out that form. And on July 4th, they’re going to start funding these accounts.

Lee Kantor: Oh, so if you have account open prior to July 4th, that’s when you’ll see the thousand dollars from the government pop in there.

Stuart Rohatiner: That’s exactly right. Yeah.

Lee Kantor: And are you getting can you tell like from clients or from prospective clients? Is this something that they’re excited about or, you know, do they even know about it? Like what’s kind of the level of engagement in this right now?

Stuart Rohatiner: You know, I’d say it’s sort of half and half people. Some people know about it, some don’t. You have to sort of bring it to their attention. But, you know, it could be. I’ve read that there’s something like 7 or 8 million individuals that have signed up for this account.

Lee Kantor: And then and it’s only for people who are for kids that are born. Would you say like 2015 ish, 2014?

Stuart Rohatiner: Yeah, from January 21st, 2015 through 2018. So they’re a 2025 to 2028, right? That’s a sorry, that’s, um, I don’t want to lose ten years there.

Lee Kantor: Oh, so it’s only for current people born like last year or this year.

Stuart Rohatiner: Correct. Through 2018.

Lee Kantor: So then, so then it’s a um, so this is kind of an experiment.

Stuart Rohatiner: Right. Exactly. It’s, I think it’s a way to try to encourage, um, young individuals to get involved in financial literacy or investments in their individuals. Because also, I think within this Trump account, there’s actually not a ton of options. They’re basically like index funds, and they’re pretty conservative, but it’s a way to get young individuals exposure to financial literacy.

Lee Kantor: Right. But the people who are going to be getting the accounts are like zero years old.

Stuart Rohatiner: Yeah. That’s true. Their parents. You’re right.

Lee Kantor: So I mean, the I mean, they’re not even going to know about it for, I mean, what, ten years ish? Um, right. I mean, you’ve done a lot of work in financial literacy yourself. Can you share a little bit about how you would kind of leverage this account in your conversations with young people?

Stuart Rohatiner: Sure. Um, you know, I think the, you know, the main thing is awareness. So even like I, I teach financial literacy at high schools in Miami-Dade, especially at the Alonzo and Tracy Mourning Senior High School in North Miami. I’ve been there for the last 10 or 12 years. And basically I, you know, it’s just a way another tool for savings. And I would basically make the students aware that they have this option. But I’ve also gone out, you know, I’ve done work with a Greater Miami Legal Services and also the Overtown Youth Center. And these are more involved in helping, um, younger or lower income individuals or families. So basically I’ve been just spreading the word and getting it out there to, to let people know that this is another opportunity. Uh, you know, thousand dollars is $1,000 and they’re giving it to you for free. Why not take it.

Lee Kantor: Right now in your conversations with folks and your, a lot of your work is in underserved communities. How much of your, um, kind of is a curriculum based on how to kind of manage money when you don’t have a lot of money versus still trying to figure out a way to invest some for a future. Um, because that seems a little tricky to me to be able to kind of bridge that because if folks don’t have a lot of money and you’re telling them, well, you should put money aside. It’s like, yeah, I would like to put money aside, but I don’t have any money to put aside right now.

Stuart Rohatiner: That’s a that’s a great question. And, uh, right. You really have to, uh, it’s spot on, right? Because, um, you sort of have to start small and also work on or be encouraging of the income side. So, um, regardless of what level you’re at or what income, even if it’s small amount, the thought is always to start small. So whether you know, you’re making 30 or 40 or 130 or 40 or 500,000, I think. But if we went to the lower income, you would try to say, look, let’s just try to put 5 or 10% away or 3% just something, create a habit, get people excited and, uh, hopefully go from there. But you, but you’re right. You have to make sure that there’s income opportunities. And so that leads into other stuff. How are you going to try to help the kids in the underserved community get those opportunities right? Get exposure, learn about these industries, where are the, you know, higher paid jobs? So it goes sort of hand in hand, but, but, um, just, you know, maybe even if they’re making it. So we work with the Overtown Youth Center, which was put together by Alonzo and Tracy Mourning, and they’ve done an amazing job. Alonzo played for the Miami Heat and he talks the talk, so to say, because he put him and his wife put it, put their money where their mouth is, and built this great youth center in the middle of Overtown.

Stuart Rohatiner: And, you know, they run it as though the kids are get internships disciplined. I think every kid almost ends up going to college there. But the reason I go back to that is that they make sure that about 150 of their kids get summer internships. And, you know, our firm play houses 2 or 3. But other law firms, other camps, other businesses around Miami-Dade provide a place for these kids to work. So they get exposure into maybe industries they might not see or other economic opportunities. But as part of that program, if they’re getting 1000 a week or 500 a week, they must take a financial literacy class and they must put some savings aside ten, 15%. So, you know, we try to build habits. It’s all about exposure. Maybe you get a few people, uh, excited. Uh, I know about a month ago, Ken Griffith, who has done a lot for Miami, spoke at Booker T Washington High School, which is right down the block from Overtown Youth Center and, you know, expired. These kids got him excited. So it’s it’s always about exposure, opportunity, education. And if you connect with a few, you’ve done your job.

Lee Kantor: Yeah, it’s a it’s so it’s so important for people to understand compounding. It’s just the frustrating part about compounding, especially if you don’t have a lot of money, is all those early years seems like nothing’s happening. And it’s one of those things where it’s like gradually then suddenly where, you know, it doesn’t look like things are happening, but you have to go through this part of it in order for the thing to happen later. And it’s, it’s tricky. I mean, it’s really one of those kind of delayed satisfaction moments where can you, you know, hang in there and be patient long enough for it to, to get the benefits?

Stuart Rohatiner: That is so right on. No, you’re exactly right. It’s tricky. And, and it’s very hard. Like, I think to your point, when you say, oh, yeah, the government’s giving you $1,000, which, you know, you could say is not a lot of money compared to how things are expensive, but it is They’re giving it to you. It is free. It’s to encourage. But. And the fact that you can’t touch that money for 18 years, you’re. It’s so correct. But, um, I guarantee you. Right. If you could just do the course, say the or. Unfortunately, sometimes as we get older and through our own experiences, we learn those lessons and go, wow, I have to impart that, uh, experience on other people, I don’t know. Do you have any thoughts how you put somebody in a vise and say, don’t move?

Lee Kantor: Yeah, I mean, it’s one of those I think they have the marshmallow test for children where they put a marshmallow in front of a little kid and they said, hey, wait five minutes. And if you come back, I’ll give you two marshmallows. And some kids can wait and other kids can’t. You know, it’s just a human nature thing of, you know, how can you delay gratification? Uh, you know, are you wired that way or not? But it’s just so important. And it’s hard. It just, it’s one of those concepts that’s so powerful. Um, I wish I knew a great way to, um, share it with a kid, but I think, I think the spirit of this is the right thing though. If you do this before the kid even knows it and it’s happening in the background, then they’re going to get the benefit of it. And if you can just get them to now take this bigger and this is and like to your point, it could be a substantial chunk of money, even if you’re just doing the minimums of this over the 18 years, if you can now just move that into a Roth and then just put in at that point, $50 a week, like it doesn’t have to be a lot now because you’ve spent 18 years of growing this small pile. So it’s, it’s something now. It’s not nothing.

Stuart Rohatiner: Right, right. Exactly. I mean, I looked at the Trump account’s application or the app that they put in. And, you know, and that’s sort of the, the big thing. Um, you know, they have some simple articles, nothing complicated, and they try to hone in on some of these basic concepts financial literacy, just plain definitions. I mean compounding and the right I think it was at, uh, what’s Einstein said that was the eighth wonder of the world compounding interest. Uh, and so they give little charts. If you earn 7% over 20 years, how that can turn into a decent amount of money. And don’t they say it’s interesting for a lot of people who start work in their 20s, they say, well, maybe I don’t have enough money, so I need to spend it and don’t put retirement funds away until they’re 40. And that big 20 to 40 year can make all the difference. The 20 years of compounding, right? How do you just sort of have to do it? Trust faith. And, uh, you have to, I believe the trick is always to act like you never got the money. Right.

Lee Kantor: Well, in this in this case, at the end of the 18 years, is it just your money? And now you could buy a car or like it has to be used for retirement.

Stuart Rohatiner: Now. I think it’s your I think it’s your money, but, um.

Lee Kantor: Well that that’s kind of stinks. Um, it probably should be used for down the road. I think that they’d be better served in the long run because I mean, there’s going to be, I would imagine the vast majority of the people are going to just cash the check and then it’s buy something frivolous and.

Stuart Rohatiner: Double check on that. I think I think it is for retirement. I don’t think it’s that easy that you could take it out. I should, uh, double check on that.

Lee Kantor: Yeah. I mean, that’s that to me would be an important component because if you’re trying to solve the retirement challenges, this is a great starting place, a conversation that we all should be having of, you know, I’m sure, um, with your kids, I don’t know if you did or I know in my, with my kid, I didn’t start helping him save until he was older. Um, and it’s one of those things. Well, even if I had put a little bit of money when he was born away, it would have been meaningful by the time he was, you know, old enough to do work and be able to put money away.

Stuart Rohatiner: Right, right. Exactly. Yeah.

Lee Kantor: So, um, what else is going on with you and your firm? How can we help you?

Stuart Rohatiner: Um, you know, we’re basically we’re, we’re a boutique accounting firm. One of the only ones that has sort of stayed, uh, individual. We’re not part of the mass consolidation. We, we’ve been in South Florida for over 60 years. Um, started by Gary Gerson, Richard Preston now led by Alan Lipps and Steve Klein and, you know, really try to, uh, as these firms continue to merge up, we continue to be a boutique firm and be very client service oriented and problem solvers in the sense of how can we, uh, help people with tax planning and, uh, help them save with their money and, uh, you know, do a lot of family planning and things along those lines.

Lee Kantor: Now, in your opinion, what’s the the benefits a client gets when a firm isn’t one of these kind of mega firms, you know that you you chose to go kind of more the independent route. What what how does that help the client in your opinion?

Stuart Rohatiner: Well, I think, um, there’s a little bit more personal service and touch that we’re able to do, uh, client sometimes in these big mergers, clients get discarded or passed on to the next person or a lot of people leave or there’s layoffs. So we try to have more long standing client relationships and can feel like we could react quicker, you know, get smaller teams, but get great client service.

Lee Kantor: And then it seems like the culture and the DNA of the firm is serving your community and making sure that the whole community is served. And how did that come about? Was that been since the inception?

Stuart Rohatiner: Uh, great question. I mean, um, Mr. Gerson, who started the firm, was a big into philanthropy, and I think he, uh, sort of that rubbed off on a lot of the other partners here. And I believe that it’s always been a part of the DNA of the firm is to give back to the community. So do good by the people that you help and you know, and give back and good things will happen. And you’re making the place the world a little better now.

Lee Kantor: Um, do you have any stories you could share about maybe some of the, the kids you’ve worked with over the years, maybe coming back and maybe gotten to a level that they didn’t think they could, and you were able to help them a little bit?

Stuart Rohatiner: Yeah, sure. I mean, I know through the, um, Overtown Youth Center that we’ve had 2 or 3 kids that have gone on to just, uh, have terrific careers. One is, um, one is in audit at one of the leading banks in Massachusetts is the, the audit department. Another girl that we had in here went to Davidson College and she was a double major, full scholarship, applied mathematics and, uh, and other math stuff like that. So we’ve just seen some really talented kids. And, and what I’ve seen over the years is I don’t know if these kids are any more or less smarter and more smart. You know, they’re just people have innate talented skills. They just really need an opportunity.

Lee Kantor: Right? And that’s really the bottom line. There’s so many talented people out there that just, if given the right opportunity or connecting with the right folks, all of a sudden, you know, it’s a new game for them. You know, they don’t have to kind of follow into a negative spiral. It can just be they can launch into a different, um, you know, kind of career path.

Stuart Rohatiner: Correct. That’s right. Yep. So we’ve seen, you know, I would say the ten kids that we’ve had or the 15 from the Overtown Youth Center are as talented as anybody that I’ve ever seen from other high school internship or college programs.

Lee Kantor: Yeah. And that’s why it’s so important to have these opportunities to mentor, to intern, to shadow, to meet and connect with. I mean, it’s really a gift. The mornings have done to that area, and kudos to you and your firm for really supporting it and investing your time and resources to make it as good as it can be.

Stuart Rohatiner: Thank you. You know, and when you’re out sometimes teaching at the local high schools or even at the youth center, when, um, you explain a concept or try to break it down and you see a young child, young kid or teenager smile and, you know, through their face, they get it. That’s about as good as it gets. You know, that you’ve connected or made an impact and, uh, could maybe change somebody’s trajectory so that internal satisfaction is really great.

Lee Kantor: So if somebody wants to learn more about your firm, uh, what is the way to connect? What’s the way to connect with you? Or maybe at the Overtown Youth Center, what is do you know the coordinates for that?

Stuart Rohatiner: Uh, you know, you can look it up online or the lady who, uh, Tina Brown is the, uh, chief executive officer at the Overtown Youth Center. So she’s, uh, always available. And then, um, we have a website, klg.com, and my name is Stu Ratner. I’m one of the more senior partners here now, and my email is srngkleg.com.

Lee Kantor: Good stuff. Well, congratulations on all the success, and we really appreciate the impact you’re making in the community. I mean, that is nothing to sneeze at. And I think that more, uh, business owners and entrepreneurs like yourself should be investing more in the community that that only helps everybody.

Stuart Rohatiner: That’s awesome. Lee. Thank you. And, uh, we got to keep pushing the compounding interest.

Lee Kantor: That’s right I, I agree. I mean, I mean, I that should be kind of part of every high school curriculum, I think.

Stuart Rohatiner: 100% right. It’s so, uh, I once and as a side note, I once read a story, the, um, which is an investment bank in New York. They no longer exist. Solomon Brothers became part of Citibank and all. But they made their fortune by. They were on the other side, lending money and then rolling over the debt. But interest on interest and interest is sort of the same concept as, uh, as an investor. And they were the lenders and made a fortune of money lending money under compounding. So it works in various ways. But, uh, you know, I think your earlier question gets the really the root of it. How do you, uh, start it and stay with it? And that’s the, uh, the magic sauce we have to continue to push.

Lee Kantor: Well, and it’s also by partnering with people like you that can help, you know, hold me accountable and put systems in place that make it easy for me to do it is what really, you know, is critical for me to just do it. The, the more you can make it a set it and forget it situation, I think you’re increasing your chances of success 100%.

Stuart Rohatiner: Yep. And it’s all about you need the systems, right? You need something in place. So maybe these Trump accounts get people at least a start or there is a. And if it connects with X amount of people, it’s done its job.

Lee Kantor: Yep. Well, Stuart, thank you so much for sharing your story, doing such important work. And we appreciate you.

Stuart Rohatiner: Thank you, Mr. Cantor. Thanks, Lee.

Lee Kantor: All right. This is Lee Kantor. We’ll see you all next time on High Velocity Radio.