1 00:00:04,160 --> 00:00:06,050 Speaker 1: The views expressed on this program are not necessarily the 2 00:00:06,050 --> 00:00:08,250 Speaker 1: views of the station content is for educational purposes only 3 00:00:08,260 --> 00:00:10,200 Speaker 1: consult a financial adviser or conduct your own due diligence 4 00:00:10,200 --> 00:00:12,050 Speaker 1: of investing. The show was pre recorded earlier this week. 5 00:00:12,060 --> 00:00:13,820 Speaker 1: The everyday wealth radio show and podcast are produced and 6 00:00:13,820 --> 00:00:16,050 Speaker 1: created by element Financial engines and hosted by jean Chatzky 7 00:00:16,050 --> 00:00:17,950 Speaker 1: and Soledad O'brien MS. Chatzky and Miss O'brien are not 8 00:00:17,950 --> 00:00:20,090 Speaker 1: employees or clients of the firm. 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Please see everyday wealth dot com. 12 00:00:26,739 --> 00:00:29,480 Speaker 1: The 2022 top 100 independent advisory firm ranking issued by 13 00:00:29,480 --> 00:00:32,729 Speaker 1: Barron's is qualitative and quantitative, including assets, managed revenue generated 14 00:00:32,740 --> 00:00:35,760 Speaker 1: regulatory records, staffing levels and diversity technology spending in succession 15 00:00:35,760 --> 00:00:37,420 Speaker 1: planning firms alike to participate but do not pay to 16 00:00:37,420 --> 00:00:39,220 Speaker 1: be included in the ranking compensation is paid for use 17 00:00:39,220 --> 00:00:41,610 Speaker 1: in distribution of rating awarded september 2022 based on data 18 00:00:41,610 --> 00:00:43,530 Speaker 1: within a 12 month period, investor experience in returns are 19 00:00:43,530 --> 00:00:44,090 Speaker 1: not considered 20 00:00:45,940 --> 00:00:49,550 Speaker 1: at the intersection of life and money. This is Edelman 21 00:00:49,550 --> 00:00:53,990 Speaker 1: Financial engines, everyday wealth with award winning journalist Soledad O'brien, 22 00:00:54,100 --> 00:00:58,220 Speaker 1: personal finance expert Jean Chatzky and Edelman Financial engines wealth 23 00:00:58,220 --> 00:01:01,770 Speaker 1: planner Rose Nayoung Edelman Financial engines has been ranked by 24 00:01:01,770 --> 00:01:05,520 Speaker 1: Barron's as the number one investment advisor in the country. Now, 25 00:01:05,520 --> 00:01:09,580 Speaker 1: here's jean Chatzky soledad O'brien and Rosie Young. 26 00:01:10,620 --> 00:01:13,540 Speaker 2: So a few weeks ago, there were lots of news 27 00:01:13,550 --> 00:01:17,300 Speaker 2: outlets that we're talking about. A new quote, unquote magic 28 00:01:17,300 --> 00:01:20,840 Speaker 2: retirement number and that's the number that the actual amount 29 00:01:20,840 --> 00:01:23,800 Speaker 2: of money that people think they need to be able 30 00:01:23,800 --> 00:01:27,650 Speaker 2: to retire comfortably. And it made the news because it 31 00:01:27,650 --> 00:01:31,700 Speaker 2: was a 20% jump from the year before. Hi everybody, 32 00:01:31,700 --> 00:01:35,790 Speaker 2: I'm soledad o'brien and I'm jean Chatzky and you're listening 33 00:01:35,790 --> 00:01:37,289 Speaker 2: to Edelman financial engine 34 00:01:37,306 --> 00:01:41,146 Speaker 2: Everyday wealth and so lead, you're right. This made news 35 00:01:41,156 --> 00:01:46,246 Speaker 2: according to a survey from northwestern mutual Americans now think 36 00:01:46,256 --> 00:01:54,056 Speaker 2: they need $1.25 million dollars to retire comfortably. That is 37 00:01:54,066 --> 00:01:57,876 Speaker 2: a big jump. And unfortunately while people think they need 38 00:01:57,886 --> 00:02:01,456 Speaker 2: more to retire because of what's been going on in 39 00:02:01,456 --> 00:02:03,976 Speaker 2: the markets, the average amount of saving 40 00:02:04,112 --> 00:02:09,651 Speaker 2: In retirement accounts has dropped by 11% over the same timeframe. 41 00:02:09,782 --> 00:02:12,922 Speaker 2: And what's also interesting, gene is the fact that that 42 00:02:12,922 --> 00:02:16,582 Speaker 2: expected retirement age has also gone up. It has been 43 00:02:16,592 --> 00:02:19,902 Speaker 2: at 62 for quite some time and now people who 44 00:02:19,901 --> 00:02:22,561 Speaker 2: have responded are expecting to be able to retire around 45 00:02:22,562 --> 00:02:24,982 Speaker 2: 64 years old. So you need more money and you 46 00:02:24,982 --> 00:02:28,172 Speaker 2: need to keep working longer. Let's jump into this. You know, 47 00:02:28,181 --> 00:02:30,662 Speaker 2: I'm always curious rose if your clients come to you 48 00:02:30,678 --> 00:02:34,877 Speaker 2: and say the number I'm trying to hit is X 49 00:02:34,877 --> 00:02:37,098 Speaker 2: because when I was younger, that was my strategy and 50 00:02:37,098 --> 00:02:39,228 Speaker 2: then as you get older, you start talking and we've 51 00:02:39,228 --> 00:02:42,218 Speaker 2: talked a lot about goals and strategies and what you're 52 00:02:42,218 --> 00:02:46,108 Speaker 2: trying to get to in life versus that quote unquote 53 00:02:46,108 --> 00:02:49,227 Speaker 2: magic number? Well that number really is going to depend 54 00:02:49,228 --> 00:02:52,388 Speaker 2: on a lots and lots of factors. So what kind 55 00:02:52,388 --> 00:02:55,578 Speaker 2: of retirement are you wanting to have, where around the 56 00:02:55,578 --> 00:02:57,248 Speaker 2: country or around the world 57 00:02:57,364 --> 00:03:01,184 Speaker 2: are you going to live in? Are you supporting kids? 58 00:03:01,194 --> 00:03:03,684 Speaker 2: Are you supporting parents? I mean we've we've talked a 59 00:03:03,684 --> 00:03:06,913 Speaker 2: lot about, you know, different types of people and how 60 00:03:06,913 --> 00:03:10,234 Speaker 2: they should invest, but different types of people also have 61 00:03:10,234 --> 00:03:12,764 Speaker 2: different types of responsibilities. So if you are part of 62 00:03:12,764 --> 00:03:17,294 Speaker 2: that sandwich generation where you find yourself maybe having young 63 00:03:17,294 --> 00:03:19,644 Speaker 2: adult kids at home that you're still supporting or even 64 00:03:19,644 --> 00:03:23,464 Speaker 2: supporting from afar and maybe aging parents who may have 65 00:03:23,464 --> 00:03:24,034 Speaker 2: not have 66 00:03:24,050 --> 00:03:27,370 Speaker 2: the opportunity have done a better job of saving your 67 00:03:27,370 --> 00:03:30,600 Speaker 2: number may look a lot larger. So focusing on that 68 00:03:30,600 --> 00:03:34,519 Speaker 2: number really is the wrong approach, We really dig in 69 00:03:34,520 --> 00:03:36,780 Speaker 2: and trying to focus on the goals you're trying to 70 00:03:36,780 --> 00:03:40,050 Speaker 2: achieve the amount of money you're making because that determines 71 00:03:40,050 --> 00:03:43,040 Speaker 2: the amount that you can save and trying to massage 72 00:03:43,040 --> 00:03:45,800 Speaker 2: those numbers to come up with a number that will 73 00:03:45,800 --> 00:03:49,630 Speaker 2: give you a good probability of succeeding in retirement well, 74 00:03:49,630 --> 00:03:50,720 Speaker 2: and the interesting thing 75 00:03:50,846 --> 00:03:53,926 Speaker 2: and I think it's especially interesting this year because we've 76 00:03:53,936 --> 00:03:58,056 Speaker 2: been talking so much about inflation is you could have 77 00:03:58,056 --> 00:04:01,315 Speaker 2: been aiming for one number and that number could be 78 00:04:01,326 --> 00:04:04,236 Speaker 2: totally wrong now, it could be, it could be way 79 00:04:04,236 --> 00:04:06,746 Speaker 2: too low. Now, I mean, what I remember my first 80 00:04:06,746 --> 00:04:09,356 Speaker 2: meeting with my planner and they they take a look 81 00:04:09,356 --> 00:04:12,896 Speaker 2: at what you're spending they do factor in inflation. They 82 00:04:12,896 --> 00:04:16,406 Speaker 2: look at when you may or probably will take Social 83 00:04:16,406 --> 00:04:17,406 Speaker 2: Security 84 00:04:17,422 --> 00:04:23,802 Speaker 2: and maybe they aim to hit some target. But for 85 00:04:23,802 --> 00:04:26,572 Speaker 2: me the target was always this is how we want 86 00:04:26,572 --> 00:04:29,282 Speaker 2: to live. I can tell you those numbers today are 87 00:04:29,282 --> 00:04:31,662 Speaker 2: a lot different than they were when we started. The 88 00:04:31,662 --> 00:04:34,912 Speaker 2: point you just made emphasizes the fact that a financial 89 00:04:34,912 --> 00:04:38,312 Speaker 2: plan is a living document. It changes all the time 90 00:04:38,312 --> 00:04:41,092 Speaker 2: because we change all the time. Not only do we 91 00:04:41,092 --> 00:04:43,552 Speaker 2: change all the time by wanting different things. 92 00:04:44,108 --> 00:04:47,588 Speaker 2: The environment around us also changes, right? So if you 93 00:04:47,588 --> 00:04:51,907 Speaker 2: have set that number 30 years ago and now you 94 00:04:51,908 --> 00:04:54,968 Speaker 2: find yourself in a situation where you want more there 95 00:04:54,968 --> 00:04:57,108 Speaker 2: there goes that fact that people are not okay. Maybe 96 00:04:57,108 --> 00:04:59,468 Speaker 2: I'll push it a couple more years before I can retire. 97 00:04:59,478 --> 00:05:01,638 Speaker 2: But if you're still focusing on that number, you may 98 00:05:01,638 --> 00:05:04,218 Speaker 2: be chasing it for a very long period of time. 99 00:05:04,228 --> 00:05:08,498 Speaker 2: Do your tools encourage people to actually overshoot the goal 100 00:05:08,508 --> 00:05:10,800 Speaker 2: in case we get a year like this one 101 00:05:11,060 --> 00:05:15,279 Speaker 2: not only overshoot the goal but also includes things that 102 00:05:15,279 --> 00:05:18,560 Speaker 2: may be unforeseen. That's really the whole point of over 103 00:05:18,560 --> 00:05:21,520 Speaker 2: shooting the goal is because you can't know everything today. 104 00:05:21,529 --> 00:05:24,220 Speaker 2: Most planners will ask you for your expenses. Like I 105 00:05:24,220 --> 00:05:27,010 Speaker 2: said your income when you're going to take Social Security 106 00:05:27,020 --> 00:05:29,719 Speaker 2: but are they taking into account medical co 107 00:05:30,245 --> 00:05:33,535 Speaker 2: right. are they taking into account whether or not you 108 00:05:33,545 --> 00:05:36,315 Speaker 2: you may move, are they taking that into account? And 109 00:05:36,315 --> 00:05:39,565 Speaker 2: then the state taxes changes for example, depending on where 110 00:05:39,565 --> 00:05:43,174 Speaker 2: you go. Right. So interesting enough, um when I was 111 00:05:43,175 --> 00:05:46,375 Speaker 2: on your harmony podcast, gene there was this woman from 112 00:05:46,375 --> 00:05:48,395 Speaker 2: California who submitted a question 113 00:05:48,540 --> 00:05:52,380 Speaker 2: and basically she figured out that with her $1.5 million 114 00:05:52,380 --> 00:05:55,900 Speaker 2: savings in the state of California where she lives in 115 00:05:55,910 --> 00:05:58,380 Speaker 2: where it would have a house even paid off. She 116 00:05:58,380 --> 00:06:00,859 Speaker 2: may need to work five more years. But she found 117 00:06:00,860 --> 00:06:03,810 Speaker 2: herself in a situation where her Children are moving to 118 00:06:03,810 --> 00:06:06,299 Speaker 2: Tennessee and all of a sudden she's saying, well if 119 00:06:06,300 --> 00:06:09,219 Speaker 2: I took my 1.5 million and the value from my 120 00:06:09,220 --> 00:06:13,720 Speaker 2: paid off house and moved over to Tennessee, is that possible? Yeah, 121 00:06:13,730 --> 00:06:16,229 Speaker 2: you most likely will be able to have a comfortable 122 00:06:16,230 --> 00:06:17,290 Speaker 2: retirement in tennis 123 00:06:17,426 --> 00:06:21,176 Speaker 2: versus California because housing will probably be a lot cheaper 124 00:06:21,176 --> 00:06:27,025 Speaker 2: depending on what you exactly exactly. But here's the thing, 125 00:06:27,036 --> 00:06:30,226 Speaker 2: what if your Children moved back to California and you 126 00:06:30,226 --> 00:06:33,866 Speaker 2: have retired? What do you do then? Right. So a 127 00:06:33,866 --> 00:06:37,546 Speaker 2: good financial planner has to kind of think above just 128 00:06:37,546 --> 00:06:41,136 Speaker 2: what you want today and walk you through the scenarios 129 00:06:41,136 --> 00:06:44,056 Speaker 2: that could happen to to help you make that better decision. 130 00:06:44,136 --> 00:06:46,060 Speaker 2: I would think that rarely 131 00:06:46,072 --> 00:06:49,342 Speaker 2: does anyone get the information like, oh my God you 132 00:06:49,342 --> 00:06:51,902 Speaker 2: have saved too much money. It is just too much. 133 00:06:51,912 --> 00:06:53,872 Speaker 2: You know, I don't know what we're gonna do with 134 00:06:53,872 --> 00:06:56,562 Speaker 2: all these bags of cash that are lying around, right? 135 00:06:56,562 --> 00:06:59,181 Speaker 2: Like I think, I think it just doesn't really work 136 00:06:59,182 --> 00:07:02,392 Speaker 2: that I agree 100%. And I even tell my clients 137 00:07:02,392 --> 00:07:04,632 Speaker 2: that all the time that I've never met anybody who 138 00:07:04,632 --> 00:07:07,252 Speaker 2: said I've saved too much, right? It just gives you 139 00:07:07,252 --> 00:07:10,762 Speaker 2: more options. Nobody knows some of those goals that you 140 00:07:10,762 --> 00:07:14,232 Speaker 2: have and has seen more people in the situation you 141 00:07:14,232 --> 00:07:14,840 Speaker 2: are in 142 00:07:14,990 --> 00:07:18,350 Speaker 2: then most likely your financial planner. Can we talk about 143 00:07:18,360 --> 00:07:23,370 Speaker 2: big numbers and what they do to people's heads explode them. Exactly. 144 00:07:23,370 --> 00:07:26,890 Speaker 2: I mean, I think that, I think sometimes people look 145 00:07:26,890 --> 00:07:30,080 Speaker 2: at big numbers, right, whether it's a big number for 146 00:07:30,080 --> 00:07:32,510 Speaker 2: a house or a big number for a vacation or 147 00:07:32,510 --> 00:07:35,440 Speaker 2: a big number for retirement and they just think I can't, 148 00:07:35,450 --> 00:07:37,980 Speaker 2: I just can't, it's too big, I can't. And then 149 00:07:37,980 --> 00:07:40,130 Speaker 2: the sad part of that statement is that then they 150 00:07:40,130 --> 00:07:42,290 Speaker 2: stop if you are putting in a little 151 00:07:42,645 --> 00:07:44,555 Speaker 2: and you realize you're not going to get to that 152 00:07:44,555 --> 00:07:49,505 Speaker 2: 1.25 number within the math in your head, not accounting 153 00:07:49,515 --> 00:07:52,725 Speaker 2: for growth in the market, not accounting for match from 154 00:07:52,725 --> 00:07:55,575 Speaker 2: your employer plan. A lot of people are surprised if 155 00:07:55,575 --> 00:07:57,635 Speaker 2: they just have that lee set it and forget it, 156 00:07:57,635 --> 00:08:00,665 Speaker 2: factor on it can stop you from acting. So sit 157 00:08:00,665 --> 00:08:05,895 Speaker 2: down with a financial planner, have them discuss the lifestyle 158 00:08:05,905 --> 00:08:08,685 Speaker 2: with you that you want to have in the future 159 00:08:08,695 --> 00:08:09,615 Speaker 2: and then do 160 00:08:09,640 --> 00:08:13,660 Speaker 2: determine what small incremental changes you can make in your 161 00:08:13,660 --> 00:08:16,710 Speaker 2: life now to better help you get to that point. 162 00:08:16,780 --> 00:08:19,800 Speaker 2: But most importantly, even if you're closer to retirement and 163 00:08:19,800 --> 00:08:22,200 Speaker 2: feel like you only have a half a million dollars, 164 00:08:22,210 --> 00:08:26,530 Speaker 2: what changes can you make now to get closer to 165 00:08:26,530 --> 00:08:29,410 Speaker 2: the number that you need or what adjustments can you 166 00:08:29,410 --> 00:08:32,120 Speaker 2: make in your lifestyle? Right? I think we are all, 167 00:08:32,120 --> 00:08:34,950 Speaker 2: I mean especially coming out of the last three years, 168 00:08:34,960 --> 00:08:36,940 Speaker 2: used to adjusting our lifestyle 169 00:08:37,175 --> 00:08:42,474 Speaker 2: because of external factors, we cannot underestimate the human fact 170 00:08:42,475 --> 00:08:45,795 Speaker 2: that we can tighten up, right? So then determining what 171 00:08:45,795 --> 00:08:49,565 Speaker 2: is most important to you is retiring now most important 172 00:08:49,565 --> 00:08:52,285 Speaker 2: to you or is the lifestyle that you're living now 173 00:08:52,285 --> 00:08:55,515 Speaker 2: most important to you and then make that, that decision 174 00:08:55,515 --> 00:08:58,415 Speaker 2: based on those factors, I like the idea of this choice, right? 175 00:08:58,415 --> 00:09:00,045 Speaker 2: Like it's a menu and there are a lot of 176 00:09:00,045 --> 00:09:04,290 Speaker 2: choices and listen, if you have this expensive habit horses, 177 00:09:05,330 --> 00:09:08,460 Speaker 2: you know, like then maybe you're committing to five more 178 00:09:08,460 --> 00:09:11,820 Speaker 2: years of working, right? Because if that's something that you 179 00:09:11,820 --> 00:09:14,280 Speaker 2: want to do or you like to travel around europe 180 00:09:14,280 --> 00:09:16,240 Speaker 2: or you want to go and visit your kids all 181 00:09:16,240 --> 00:09:19,069 Speaker 2: over the globe, you know, whatever. I think then you 182 00:09:19,070 --> 00:09:21,290 Speaker 2: have to say the way to pay for that is 183 00:09:21,290 --> 00:09:23,610 Speaker 2: either cut back on those trips get rid of the horses, 184 00:09:23,610 --> 00:09:26,720 Speaker 2: get rid of the, you know, the family visits everywhere 185 00:09:26,730 --> 00:09:29,230 Speaker 2: or say I want to keep those, they're important and 186 00:09:29,230 --> 00:09:30,950 Speaker 2: I just have to actually figure out how to pay 187 00:09:30,950 --> 00:09:31,459 Speaker 2: for them. 188 00:09:31,470 --> 00:09:34,510 Speaker 2: Well, the whole point of saving for long term is 189 00:09:34,510 --> 00:09:40,300 Speaker 2: delaying gratification. Right? So making those choices, what can I forego? 190 00:09:40,300 --> 00:09:43,100 Speaker 2: What can I not forgo? And and this is why 191 00:09:43,100 --> 00:09:45,810 Speaker 2: I think focusing on this number also is so wrong. 192 00:09:45,820 --> 00:09:49,209 Speaker 2: It's because my life is going to be so different 193 00:09:49,220 --> 00:09:51,910 Speaker 2: in so many ways than your life jean than your 194 00:09:51,910 --> 00:09:54,410 Speaker 2: life solid add. So if we're all saying we only 195 00:09:54,410 --> 00:09:57,600 Speaker 2: need 1.25 to retire, that number could be me 196 00:09:57,610 --> 00:10:00,260 Speaker 2: more than you need. That number could be less than 197 00:10:00,260 --> 00:10:03,309 Speaker 2: you need. So figuring that out is very important. And 198 00:10:03,309 --> 00:10:06,220 Speaker 2: sitting with a financial planner who is going to keep 199 00:10:06,220 --> 00:10:10,449 Speaker 2: you focused on the goals that actually matter is very, 200 00:10:10,450 --> 00:10:14,230 Speaker 2: very important. If you are looking for a financial planner or, 201 00:10:14,230 --> 00:10:17,210 Speaker 2: and or don't have one right now, you can always 202 00:10:17,210 --> 00:10:21,150 Speaker 2: give my colleagues at admin financial engines a call and 203 00:10:21,150 --> 00:10:23,740 Speaker 2: that number is 833 Plan 204 00:10:23,750 --> 00:10:27,360 Speaker 2: E F G and that's 833 Plan E F E 205 00:10:27,780 --> 00:10:30,189 Speaker 2: a real place where this math comes into play and 206 00:10:30,190 --> 00:10:32,589 Speaker 2: I have a ton of experience with this unfortunately, is 207 00:10:32,590 --> 00:10:35,460 Speaker 2: in caring for your elderly parents. Right? So we're gonna 208 00:10:35,460 --> 00:10:37,770 Speaker 2: talk a little bit about caring for your aging parents. 209 00:10:37,770 --> 00:10:40,360 Speaker 2: That's coming up next. I'm soledad o'brien and I'm here 210 00:10:40,360 --> 00:10:44,219 Speaker 2: with jean Chatzky and Edelman financial engines, wealth planner Rosen Young, 211 00:10:44,410 --> 00:10:48,100 Speaker 2: you're listening to Edelman financial engines, everyday, wealth stay with us. 212 00:10:48,100 --> 00:10:49,770 Speaker 2: We are back in just a moment 213 00:10:51,240 --> 00:10:53,710 Speaker 1: in today's volatile market. You might be tempted to sit 214 00:10:53,720 --> 00:10:56,660 Speaker 1: things out thinking I'll just wait until the market calms down. 215 00:10:56,830 --> 00:10:59,330 Speaker 1: Talk to an Edelman financial engines, wealth planner to learn 216 00:10:59,330 --> 00:11:02,010 Speaker 1: more about the risks of market timing and other potentially 217 00:11:02,010 --> 00:11:06,000 Speaker 1: costly mistakes. Call 833 plan E F. Or visit plan 218 00:11:06,010 --> 00:11:07,540 Speaker 1: E F E dot com to get connected. 219 00:11:09,470 --> 00:11:14,550 Speaker 2: So have you heard of the 40 70 rule? It 220 00:11:14,550 --> 00:11:18,510 Speaker 2: says that by the time you are 40 or your 221 00:11:18,510 --> 00:11:23,710 Speaker 2: parents are 70, you should have had the conversation or 222 00:11:23,710 --> 00:11:28,130 Speaker 2: at least started the conversation about their resources, how they 223 00:11:28,130 --> 00:11:31,460 Speaker 2: want to live as they age. Whether or not they 224 00:11:31,470 --> 00:11:35,520 Speaker 2: actually have the ability to do that and how and 225 00:11:35,520 --> 00:11:38,140 Speaker 2: when you might be asked to step in 226 00:11:38,155 --> 00:11:43,496 Speaker 2: And to help look family caregiving affects millions of Americans 227 00:11:43,506 --> 00:11:47,446 Speaker 2: every day in all walks of life. We've got almost 228 00:11:47,456 --> 00:11:52,636 Speaker 2: 18 million individuals in the us who are family caregivers 229 00:11:52,636 --> 00:11:58,266 Speaker 2: of somebody 65 or older. And so what that means 230 00:11:58,276 --> 00:12:01,325 Speaker 2: is that this is in the future for a lot 231 00:12:01,326 --> 00:12:04,276 Speaker 2: of people today, we're going to talk about the steps 232 00:12:04,316 --> 00:12:06,829 Speaker 2: that come before caregiving. 233 00:12:06,842 --> 00:12:11,952 Speaker 2: The steps that can help make helping your parents easier, 234 00:12:12,052 --> 00:12:15,411 Speaker 2: less stressful on both you and them and and a 235 00:12:15,412 --> 00:12:19,891 Speaker 2: little bit less fraught according to AARP guys? Three and 236 00:12:19,892 --> 00:12:24,072 Speaker 2: four older adults want to stay in their homes as 237 00:12:24,072 --> 00:12:28,722 Speaker 2: they age, 85% of adult Children want that as well. 238 00:12:28,722 --> 00:12:31,202 Speaker 2: But we are not set up to make that happen. 239 00:12:31,572 --> 00:12:33,942 Speaker 2: I know everybody wants to stay in their home, right? 240 00:12:33,952 --> 00:12:35,522 Speaker 2: I get it. I really get it. 241 00:12:35,690 --> 00:12:39,060 Speaker 2: And yet the bedroom is on the second floor and 242 00:12:39,059 --> 00:12:43,730 Speaker 2: yet there's not another room for a caregiver and frustrated. 243 00:12:43,740 --> 00:12:47,949 Speaker 2: You sound like you've had some personal experience with this. Yes, 244 00:12:47,950 --> 00:12:50,599 Speaker 2: I have. And then most of the time, I mean 245 00:12:50,610 --> 00:12:54,120 Speaker 2: as people, I think our brains are wired not to 246 00:12:54,120 --> 00:12:58,079 Speaker 2: think about when we become incapacitated or when we die. 247 00:12:58,090 --> 00:13:01,740 Speaker 2: So we avoid these things. And then by the time 248 00:13:01,750 --> 00:13:02,500 Speaker 2: it is 249 00:13:02,514 --> 00:13:07,373 Speaker 2: actually time to make these changes. Choices may be very limited. 250 00:13:07,384 --> 00:13:10,074 Speaker 2: Like you've mentioned soledad if your home wasn't set up 251 00:13:10,074 --> 00:13:14,424 Speaker 2: for wheelchair and God forbid you lose your mobility. Now 252 00:13:14,424 --> 00:13:16,274 Speaker 2: your choices are limited. You're going to have to either 253 00:13:16,274 --> 00:13:19,213 Speaker 2: do a major renovation to the home, move into another 254 00:13:19,214 --> 00:13:23,354 Speaker 2: house and all of these are done in a rush way, 255 00:13:23,364 --> 00:13:27,224 Speaker 2: making it a huge financial challenge as well. So let's 256 00:13:27,224 --> 00:13:29,320 Speaker 2: get tactical. I mean, some people 257 00:13:29,338 --> 00:13:32,098 Speaker 2: actually think my 40 70 rule is too late. They 258 00:13:32,098 --> 00:13:35,767 Speaker 2: think you should be having these conversations before your parents 259 00:13:35,768 --> 00:13:38,908 Speaker 2: hit age 65 because that's when we start to see 260 00:13:39,018 --> 00:13:43,388 Speaker 2: in some people's signs of cognitive decline that starts to 261 00:13:43,388 --> 00:13:49,398 Speaker 2: set in. So what do we need to talk about specifically? Well, 262 00:13:49,408 --> 00:13:52,008 Speaker 2: where do they want to live? And then in that 263 00:13:52,008 --> 00:13:54,127 Speaker 2: conversation it could be hard and this is where bringing 264 00:13:54,128 --> 00:13:56,150 Speaker 2: in a financial planner or third party 265 00:13:56,162 --> 00:13:59,672 Speaker 2: can really help because parents don't want to be a 266 00:13:59,672 --> 00:14:02,492 Speaker 2: burden on their kids. So they don't necessarily say, well 267 00:14:02,492 --> 00:14:04,632 Speaker 2: I'm going to move in with you. But a financial 268 00:14:04,631 --> 00:14:06,442 Speaker 2: planner that can look at the picture, look at the 269 00:14:06,442 --> 00:14:09,612 Speaker 2: finances can say it would be better if you can 270 00:14:09,612 --> 00:14:12,021 Speaker 2: move in with one of your Children and then have 271 00:14:12,022 --> 00:14:15,812 Speaker 2: that family discussion, who's more able to take care of 272 00:14:15,812 --> 00:14:19,352 Speaker 2: mom or dad. And another thing also, besides just who's 273 00:14:19,352 --> 00:14:21,562 Speaker 2: going to physically take care of mom and dad because 274 00:14:21,562 --> 00:14:22,970 Speaker 2: things can get pretty unfair 275 00:14:22,986 --> 00:14:25,686 Speaker 2: if we have to have them in our home, but 276 00:14:25,686 --> 00:14:28,526 Speaker 2: also take care of them financially if they ever need 277 00:14:28,526 --> 00:14:32,376 Speaker 2: to is discussing, what will the other siblings do? Are 278 00:14:32,376 --> 00:14:35,136 Speaker 2: they going to pitch in or are they gonna come 279 00:14:35,136 --> 00:14:38,106 Speaker 2: in and help in times that way we don't lose 280 00:14:38,106 --> 00:14:40,835 Speaker 2: a lot of income. So all those things are things that, 281 00:14:40,836 --> 00:14:43,166 Speaker 2: that you really, really need to take care of. Um 282 00:14:43,176 --> 00:14:45,666 Speaker 2: as well, you talked about where they want to live 283 00:14:45,666 --> 00:14:48,066 Speaker 2: as they age. Let me just take off a list 284 00:14:48,066 --> 00:14:49,800 Speaker 2: of the other important question 285 00:14:49,810 --> 00:14:52,770 Speaker 2: that people really need to think about, what kind of 286 00:14:52,770 --> 00:14:55,250 Speaker 2: health and life saving measures do they want? These are 287 00:14:55,250 --> 00:14:58,580 Speaker 2: the kind of things that go into your, your living 288 00:14:58,590 --> 00:15:01,850 Speaker 2: will basically when and everybody should have one of those 289 00:15:01,860 --> 00:15:04,970 Speaker 2: who do they want to make legal and medical decisions 290 00:15:04,970 --> 00:15:08,320 Speaker 2: for them. That's what goes into your durable power of 291 00:15:08,320 --> 00:15:11,310 Speaker 2: attorney for health care and your health care proxy. And 292 00:15:11,310 --> 00:15:16,620 Speaker 2: then as you were saying, rose this discussion of assets, right? So, 293 00:15:16,634 --> 00:15:18,614 Speaker 2: so that you all know if, if all of these 294 00:15:18,614 --> 00:15:21,734 Speaker 2: things can actually happen so low that I mean I've, 295 00:15:21,744 --> 00:15:25,254 Speaker 2: I've come part of the way with with my mom, 296 00:15:25,254 --> 00:15:28,724 Speaker 2: you've been through it with your parents. Did you, did 297 00:15:28,724 --> 00:15:32,734 Speaker 2: you have that discussion about money or did you just 298 00:15:32,734 --> 00:15:35,464 Speaker 2: sort of assumed that you and your siblings would step 299 00:15:35,474 --> 00:15:39,044 Speaker 2: step in if needed. We assumed that we would step 300 00:15:39,044 --> 00:15:41,044 Speaker 2: in and pitch and if, if we needed to. But 301 00:15:41,044 --> 00:15:43,454 Speaker 2: I think the bigger issue for us was that 302 00:15:43,810 --> 00:15:46,730 Speaker 2: 70 is too late and so you don't get a 303 00:15:46,730 --> 00:15:50,250 Speaker 2: real answer, you know, and parents are so ridiculously aggressive 304 00:15:50,250 --> 00:15:53,140 Speaker 2: about not wanting to give you, I know for people 305 00:15:53,140 --> 00:15:54,950 Speaker 2: who are kind of nosy about every dime that you're 306 00:15:54,950 --> 00:15:58,930 Speaker 2: spending boy when you turn the tables, those folks do 307 00:15:58,955 --> 00:16:01,525 Speaker 2: Not want to actually give you any insight at all. 308 00:16:01,525 --> 00:16:04,335 Speaker 2: And so it really was a bit of pulling teeth 309 00:16:04,335 --> 00:16:06,765 Speaker 2: and I do agree. I think 70 is too late. 310 00:16:06,765 --> 00:16:08,895 Speaker 2: I actually would say you want to be on an 311 00:16:08,895 --> 00:16:11,765 Speaker 2: account early on so you can start seeing where they're spending. 312 00:16:11,765 --> 00:16:13,885 Speaker 2: I've seen so much fraud or just people, 313 00:16:14,420 --> 00:16:17,110 Speaker 2: you know, again, my, my dad had an entire freezer 314 00:16:17,110 --> 00:16:20,720 Speaker 2: of Omaha steaks like they're delicious. But do you need 315 00:16:20,730 --> 00:16:23,230 Speaker 2: 500 Omaha steaks? Probably not. You know, he would just 316 00:16:23,240 --> 00:16:27,220 Speaker 2: buy things and it wasn't until you saw the output, 317 00:16:27,230 --> 00:16:30,790 Speaker 2: you began to realize like oh there is something not okay. 318 00:16:30,790 --> 00:16:33,960 Speaker 2: And often the problem has gone pretty far down the 319 00:16:33,960 --> 00:16:36,770 Speaker 2: road before then. So I would say get involved early 320 00:16:36,770 --> 00:16:39,410 Speaker 2: so you can see some of these blips in in 321 00:16:39,410 --> 00:16:41,830 Speaker 2: billing I think you know I've started 322 00:16:42,290 --> 00:16:44,800 Speaker 2: I am nowhere near 70. Let me just state for 323 00:16:44,800 --> 00:16:47,420 Speaker 2: the record. But I started having these conversations with my 324 00:16:47,420 --> 00:16:49,630 Speaker 2: kids and you know they would ask us like so 325 00:16:49,630 --> 00:16:51,250 Speaker 2: what are you gonna leave us? How's this gonna work? 326 00:16:51,250 --> 00:16:53,410 Speaker 2: And I would almost be offended. And then I thought 327 00:16:53,420 --> 00:16:57,380 Speaker 2: actually they should know, we should literally sit down and 328 00:16:57,380 --> 00:17:00,240 Speaker 2: talk about, here's what we're thinking. Here's how we see 329 00:17:00,240 --> 00:17:02,290 Speaker 2: it playing out here is what we hope for and 330 00:17:02,290 --> 00:17:05,479 Speaker 2: it's not just what they're going to get as you 331 00:17:05,480 --> 00:17:05,960 Speaker 2: get older 332 00:17:05,970 --> 00:17:08,150 Speaker 2: or even as you pass away right? It's a lot about, 333 00:17:08,150 --> 00:17:10,380 Speaker 2: well here's what I want as I get older, Here's 334 00:17:10,380 --> 00:17:12,760 Speaker 2: how I wanna live, here's where I wanna live, here's 335 00:17:12,770 --> 00:17:15,220 Speaker 2: who I want to live near all of those things 336 00:17:15,220 --> 00:17:18,140 Speaker 2: are important and getting your wishes known early as opposed 337 00:17:18,140 --> 00:17:22,320 Speaker 2: to when you're elderly and frail and afraid It's just 338 00:17:22,320 --> 00:17:24,000 Speaker 2: so hard when you do it at that stage. Yeah. 339 00:17:24,010 --> 00:17:26,350 Speaker 2: I've started talking to my kids too and I have 340 00:17:26,350 --> 00:17:29,640 Speaker 2: two very different Children. Um, my, 341 00:17:29,859 --> 00:17:35,830 Speaker 2: uh, my daughter is very uncomfortable around medical stuff. She just, 342 00:17:35,840 --> 00:17:39,840 Speaker 2: she just doesn't like being anywhere near a hospital. And 343 00:17:39,840 --> 00:17:42,260 Speaker 2: so when I sat my kids down to say, I'm 344 00:17:42,260 --> 00:17:46,540 Speaker 2: redoing all of my estate plan, I'm redoing my powers 345 00:17:46,540 --> 00:17:48,870 Speaker 2: of attorney and my health care proxy. 346 00:17:49,080 --> 00:17:52,169 Speaker 2: I said, do you want Julia? Do you want to 347 00:17:52,170 --> 00:17:54,770 Speaker 2: be in this position with your brother of having to 348 00:17:54,770 --> 00:17:57,520 Speaker 2: make medical decisions on my behalf? And she was like, 349 00:17:57,530 --> 00:18:00,690 Speaker 2: you know, I do not, you know, I do not 350 00:18:00,690 --> 00:18:02,730 Speaker 2: want to be anywhere near that. I said, okay, that's, 351 00:18:02,740 --> 00:18:04,979 Speaker 2: that's totally fine. I wanted to give you the choice. 352 00:18:04,980 --> 00:18:06,879 Speaker 2: I wanted to see if you wanted to have a 353 00:18:06,880 --> 00:18:08,670 Speaker 2: part in this conversation, 354 00:18:08,900 --> 00:18:12,800 Speaker 2: but it made it very easy. And now they know, 355 00:18:12,810 --> 00:18:16,070 Speaker 2: you know, when it comes to the finances, they'll have 356 00:18:16,070 --> 00:18:18,389 Speaker 2: an equal voice. But when it, when it comes to 357 00:18:18,390 --> 00:18:20,900 Speaker 2: medical stuff, he'll just, he'll just do it. And gene, 358 00:18:20,900 --> 00:18:23,409 Speaker 2: that is the best way for you not to be 359 00:18:23,410 --> 00:18:25,649 Speaker 2: a burden on your kids. Having a plan ahead of 360 00:18:25,650 --> 00:18:26,660 Speaker 2: time is the best, 361 00:18:26,680 --> 00:18:30,110 Speaker 2: best way to not be a burden on your Children. Yeah, absolutely. 362 00:18:30,109 --> 00:18:33,199 Speaker 2: I think just I just waited too long by the 363 00:18:33,200 --> 00:18:35,629 Speaker 2: time we had those conversations, my parents were so, uh, 364 00:18:35,740 --> 00:18:37,649 Speaker 2: they're not the only ones, they were so unwilling and 365 00:18:37,650 --> 00:18:40,930 Speaker 2: they would say, oh, everything's great, Always good. You're like, 366 00:18:40,940 --> 00:18:43,520 Speaker 2: it's not good. One day I walked into my dad's 367 00:18:43,520 --> 00:18:44,460 Speaker 2: office and 368 00:18:44,580 --> 00:18:49,090 Speaker 2: the bills were just stacked unopened, like clearly chaos had reigned. 369 00:18:49,090 --> 00:18:50,930 Speaker 2: I'd go to their house a lot and I thought like, 370 00:18:50,940 --> 00:18:53,640 Speaker 2: oh gosh, oh boy. You know, and we just then 371 00:18:53,640 --> 00:18:55,290 Speaker 2: had to kind of dig in, but it was so 372 00:18:55,290 --> 00:18:58,970 Speaker 2: messy and it could have been so much better organized. 373 00:18:58,970 --> 00:19:01,930 Speaker 2: And I think 10 years earlier, 15 years earlier, we 374 00:19:01,930 --> 00:19:02,730 Speaker 2: could have had a norm, 375 00:19:02,740 --> 00:19:06,930 Speaker 2: well maybe uncomfortable ish, but normal conversation about a strategy. 376 00:19:07,020 --> 00:19:09,330 Speaker 2: By the time when you do it too late, it's 377 00:19:09,340 --> 00:19:12,010 Speaker 2: just chaos. So I would, my advice would be just 378 00:19:12,010 --> 00:19:14,950 Speaker 2: suck it up and have that conversation early and they'll 379 00:19:14,950 --> 00:19:17,090 Speaker 2: be relieved when you have it. I mean, I had 380 00:19:17,090 --> 00:19:20,160 Speaker 2: it fairly early with my mother because my father died 381 00:19:20,160 --> 00:19:20,800 Speaker 2: so young. 382 00:19:21,150 --> 00:19:24,560 Speaker 2: Um, and, and so I know where she wants to 383 00:19:24,560 --> 00:19:27,510 Speaker 2: live with me. I built my apartment so that if 384 00:19:27,510 --> 00:19:30,900 Speaker 2: we need to have her live with us, we have 385 00:19:30,900 --> 00:19:36,320 Speaker 2: some nice winged separation. You know, it's, I just, I think, 386 00:19:36,330 --> 00:19:39,520 Speaker 2: I think the sooner you bring it all up the 387 00:19:39,530 --> 00:19:42,100 Speaker 2: better it will be. So let me just revise my 388 00:19:42,100 --> 00:19:46,230 Speaker 2: 40 70 rule. Let's let's let's have these conversations 389 00:19:46,359 --> 00:19:50,690 Speaker 2: much much younger. Maybe, maybe 50 maybe 50 I'd say 390 00:19:50,690 --> 00:19:55,010 Speaker 2: 55 60. Absolutely. So this is where you invite all 391 00:19:55,010 --> 00:19:58,070 Speaker 2: of your kids to my office and I can be 392 00:19:58,070 --> 00:20:01,300 Speaker 2: the bad guy and I can ask those questions and 393 00:20:01,300 --> 00:20:03,500 Speaker 2: I can open a window for you to give the 394 00:20:03,510 --> 00:20:07,200 Speaker 2: honest answer right? Having that third person in there. Make 395 00:20:07,200 --> 00:20:10,040 Speaker 2: sure not only one, they can ask questions in a 396 00:20:10,040 --> 00:20:11,560 Speaker 2: non emotional way. 397 00:20:11,750 --> 00:20:15,770 Speaker 2: When you make a decision, tell everybody how valuable that 398 00:20:15,770 --> 00:20:19,290 Speaker 2: decision is right. Taking it out of that emotional space 399 00:20:19,290 --> 00:20:22,780 Speaker 2: that solid that you are mentioning an Edelman Financial engines 400 00:20:22,780 --> 00:20:25,919 Speaker 2: planner can help connect you with a network of estate 401 00:20:25,920 --> 00:20:28,810 Speaker 2: planning attorneys in your area. So if you don't have 402 00:20:28,810 --> 00:20:31,850 Speaker 2: a financial planner that can connect you to a good 403 00:20:31,850 --> 00:20:33,420 Speaker 2: estate planning attorney, 404 00:20:33,470 --> 00:20:36,840 Speaker 2: you can always call us at Edelman financial engines. The 405 00:20:36,840 --> 00:20:41,080 Speaker 2: number again is 833 Plan E F E. That's 833 406 00:20:41,090 --> 00:20:45,640 Speaker 2: Plan E F E. I have this one client who 407 00:20:45,650 --> 00:20:49,540 Speaker 2: about maybe seven years ago came in with their parents. 408 00:20:49,609 --> 00:20:52,350 Speaker 2: Their parents had a financial planner. But they've been having 409 00:20:52,350 --> 00:20:55,190 Speaker 2: more of this conversation that we've been discussing here today 410 00:20:55,430 --> 00:20:58,760 Speaker 2: and they wanted me to basically give them a a 411 00:20:58,760 --> 00:21:02,020 Speaker 2: second look at what their their parents are doing right now. 412 00:21:02,030 --> 00:21:04,950 Speaker 2: And when we ran through the plan, what I've quickly 413 00:21:04,950 --> 00:21:09,710 Speaker 2: realized was if anything went wrong in their parents lives, 414 00:21:09,720 --> 00:21:13,859 Speaker 2: it will be a big disturbance to their financial independence. Well, 415 00:21:13,869 --> 00:21:17,790 Speaker 2: so we began to have the conversation around what will 416 00:21:17,790 --> 00:21:21,179 Speaker 2: happen if one of you was to go into a 417 00:21:21,180 --> 00:21:21,950 Speaker 2: nursing home. 418 00:21:22,340 --> 00:21:24,430 Speaker 2: Because let's say, you know, many people don't go into 419 00:21:24,430 --> 00:21:26,690 Speaker 2: a nursing home towards the end of their lives, A 420 00:21:26,690 --> 00:21:29,700 Speaker 2: good percentage go in there for a temporary period of time. 421 00:21:29,710 --> 00:21:32,090 Speaker 2: You had a stroke for example and need rehab. That 422 00:21:32,090 --> 00:21:34,609 Speaker 2: is not going to be given at the hospital, but 423 00:21:34,619 --> 00:21:38,010 Speaker 2: but maybe in a nursing home facility. Unfortunately, soon after 424 00:21:38,010 --> 00:21:41,390 Speaker 2: that conversation, their mother had such an incident and had 425 00:21:41,390 --> 00:21:44,260 Speaker 2: to move into a nursing home. Now the costs are 426 00:21:44,260 --> 00:21:47,190 Speaker 2: piling up. So they came back into the office and 427 00:21:47,200 --> 00:21:49,300 Speaker 2: we fortunately had that plan 428 00:21:49,480 --> 00:21:52,399 Speaker 2: that the father will move in with the Children so 429 00:21:52,400 --> 00:21:55,520 Speaker 2: that they can afford the expenses that the mom now has. 430 00:21:55,530 --> 00:21:59,500 Speaker 2: This just emphasizes the fact that the plan doesn't have 431 00:21:59,500 --> 00:22:02,610 Speaker 2: to stay the same and we have to be able 432 00:22:02,609 --> 00:22:05,869 Speaker 2: to adjust to it as well. Because soon after that, 433 00:22:05,869 --> 00:22:08,200 Speaker 2: about a year later, the mother passes away. 434 00:22:08,420 --> 00:22:11,730 Speaker 2: And now the financial picture, even though the emotional picture 435 00:22:11,740 --> 00:22:14,160 Speaker 2: isn't looking so great, the financial picture looked a little 436 00:22:14,160 --> 00:22:16,510 Speaker 2: bit better because those expenses that they thought they will 437 00:22:16,510 --> 00:22:19,160 Speaker 2: have for years and years, uh they've only had for 438 00:22:19,160 --> 00:22:19,760 Speaker 2: one year. 439 00:22:19,910 --> 00:22:23,300 Speaker 2: So now this gentleman has moved back out of his 440 00:22:23,300 --> 00:22:28,500 Speaker 2: Children's house and moved into a assisted living community. So 441 00:22:28,510 --> 00:22:31,510 Speaker 2: we've talked about this so many time that, you know, 442 00:22:31,510 --> 00:22:34,200 Speaker 2: we evolve. So our financial plan has to evolve. But 443 00:22:34,200 --> 00:22:38,590 Speaker 2: that estate plan, that care plan also evolves over time, 444 00:22:38,600 --> 00:22:44,139 Speaker 2: what hits me with this story, Rose is how personal 445 00:22:44,150 --> 00:22:45,010 Speaker 2: it is. 446 00:22:45,020 --> 00:22:52,130 Speaker 2: And as we are thinking about what our parents want. 447 00:22:52,140 --> 00:22:55,500 Speaker 2: We're not just thinking about what is personal to us. 448 00:22:55,500 --> 00:22:58,409 Speaker 2: We have to think about what's personal to them. We 449 00:22:58,410 --> 00:23:03,310 Speaker 2: have to incorporate their factors and their wishes into the 450 00:23:03,310 --> 00:23:06,130 Speaker 2: equation and try to use all of the resources that 451 00:23:06,130 --> 00:23:09,220 Speaker 2: are available to to make it work. We talked about 452 00:23:09,220 --> 00:23:10,130 Speaker 2: the fact that 453 00:23:10,359 --> 00:23:14,290 Speaker 2: The vast majority of people, 85% of people tell us 454 00:23:14,290 --> 00:23:17,280 Speaker 2: they want to age at home, they want to stay where, 455 00:23:17,290 --> 00:23:23,210 Speaker 2: where they are comfortable as you think about that being 456 00:23:23,210 --> 00:23:26,840 Speaker 2: the ultimate for a lot of people. How do you 457 00:23:26,850 --> 00:23:31,410 Speaker 2: answer the micro questions that that sort of fall beneath that, 458 00:23:31,420 --> 00:23:34,159 Speaker 2: you know, who does, what, how much time is it 459 00:23:34,160 --> 00:23:36,240 Speaker 2: going to take you to spend with your parents? How 460 00:23:36,240 --> 00:23:39,170 Speaker 2: do you deal with that? You cannot make these decisions 461 00:23:39,170 --> 00:23:40,230 Speaker 2: on an island. 462 00:23:40,240 --> 00:23:43,450 Speaker 2: You cannot make assumptions that your siblings will step in 463 00:23:43,450 --> 00:23:45,740 Speaker 2: as much as you will. Your parents shouldn't make that 464 00:23:45,740 --> 00:23:49,139 Speaker 2: assumption as well. So this has to be a family affair. 465 00:23:49,150 --> 00:23:52,909 Speaker 2: And I think having it hashed out by a financial planner, right? 466 00:23:52,910 --> 00:23:55,230 Speaker 2: Who doesn't really have a dog in the fight? I 467 00:23:55,230 --> 00:23:57,810 Speaker 2: think that's helpful. Plus of course there's some other really 468 00:23:57,820 --> 00:24:02,330 Speaker 2: important and tactical things to do. Like understanding someone's health insurance, right? 469 00:24:02,330 --> 00:24:05,310 Speaker 2: And what they've actually got and what it actually covers 470 00:24:05,310 --> 00:24:08,960 Speaker 2: is important. Long term care insurance. My parents did not 471 00:24:08,960 --> 00:24:10,119 Speaker 2: have that, which 472 00:24:10,630 --> 00:24:12,990 Speaker 2: well that was a mistake. Let me tell you looking 473 00:24:12,990 --> 00:24:15,730 Speaker 2: in the rear view mirror on that one And you know, 474 00:24:15,730 --> 00:24:18,770 Speaker 2: and I think looping in an insurance expert, we've talked 475 00:24:18,770 --> 00:24:20,940 Speaker 2: about this in the past is really important. It can 476 00:24:20,940 --> 00:24:23,649 Speaker 2: save you so so much money and that long term 477 00:24:23,650 --> 00:24:28,520 Speaker 2: care landscape to has gotten so much trickier over the 478 00:24:28,520 --> 00:24:31,580 Speaker 2: past several years. I mean a lot of companies have 479 00:24:31,590 --> 00:24:33,750 Speaker 2: exited the market. They're not on 480 00:24:33,760 --> 00:24:37,980 Speaker 2: offering policies anymore. New companies have have stepped in and 481 00:24:37,980 --> 00:24:43,020 Speaker 2: they're offering not just traditional long term care but hybrid policies. 482 00:24:43,030 --> 00:24:46,300 Speaker 2: There are annuities that come with long term care writers 483 00:24:46,300 --> 00:24:50,760 Speaker 2: deciding which makes the most sense for you from a 484 00:24:50,760 --> 00:24:55,250 Speaker 2: financial perspective for your parents. But but also I guess 485 00:24:55,250 --> 00:24:56,860 Speaker 2: for you because a lot of people are 486 00:24:56,880 --> 00:24:59,300 Speaker 2: are stepping in and helping their parents pay for these 487 00:24:59,300 --> 00:25:04,050 Speaker 2: long term care policies because otherwise there won't be enough 488 00:25:04,060 --> 00:25:07,030 Speaker 2: assets in the family pool. Do you recommend that to 489 00:25:07,030 --> 00:25:11,760 Speaker 2: your clients? Um, not recommending sacrificing your own retirement in 490 00:25:11,770 --> 00:25:15,490 Speaker 2: order to make sure that your parents can retire in 491 00:25:15,490 --> 00:25:18,109 Speaker 2: a better way. Right? I don't even recommend doing that 492 00:25:18,109 --> 00:25:20,010 Speaker 2: for your own Children as well. Right. 493 00:25:20,170 --> 00:25:23,470 Speaker 2: But on that point of long term care insurance, this 494 00:25:23,470 --> 00:25:27,740 Speaker 2: just emphasizes again the importance of having these conversations early 495 00:25:27,750 --> 00:25:30,520 Speaker 2: because gene as you know, if you wait till your 496 00:25:30,520 --> 00:25:33,590 Speaker 2: seventies to look into a long term care insurance, you're 497 00:25:33,590 --> 00:25:36,600 Speaker 2: not gonna be able to afford it in many cases, right? 498 00:25:36,609 --> 00:25:40,840 Speaker 2: So having these conversations early is extremely important. And also 499 00:25:40,840 --> 00:25:44,580 Speaker 2: determining how much risk are you willing to retain and 500 00:25:44,580 --> 00:25:46,690 Speaker 2: how much risk are you willing to give to the 501 00:25:46,690 --> 00:25:49,350 Speaker 2: insurance company? Right? Whenever we're getting any insurance, that's 502 00:25:49,420 --> 00:25:52,240 Speaker 2: Basically the line that tells you how much insurance you 503 00:25:52,240 --> 00:25:55,270 Speaker 2: should get, right. And in some cases, if you waited 504 00:25:55,270 --> 00:25:58,419 Speaker 2: too long, you can only afford a small bit of insurance. 505 00:25:58,430 --> 00:26:01,550 Speaker 2: So if that runs out, you know, because maybe you 506 00:26:01,550 --> 00:26:04,760 Speaker 2: got one that is time based, what is the next step, right? 507 00:26:04,770 --> 00:26:08,120 Speaker 2: So it's not just about having that initial conversation but 508 00:26:08,130 --> 00:26:11,450 Speaker 2: a layering conversation. So you are home now. But let's 509 00:26:11,450 --> 00:26:13,869 Speaker 2: say hypothetically in 10 years you can no longer be 510 00:26:13,869 --> 00:26:16,350 Speaker 2: at home. What do we do then? Okay, well that's 511 00:26:16,350 --> 00:26:18,659 Speaker 2: not going to happen. But this is what I would want. 512 00:26:18,670 --> 00:26:21,030 Speaker 2: That's how the conversation goes in my office. Right? I 513 00:26:21,030 --> 00:26:23,909 Speaker 2: will push for that. Okay. If that doesn't happen, we're good. 514 00:26:24,160 --> 00:26:26,850 Speaker 2: We are here to plan for the worst case scenarios. 515 00:26:26,859 --> 00:26:28,810 Speaker 2: And I think you also have to constantly make sure 516 00:26:28,810 --> 00:26:31,940 Speaker 2: if you're dealing with an elderly parent or parents not 517 00:26:31,940 --> 00:26:35,120 Speaker 2: to let their financial struggles suck you under. Right? Like 518 00:26:35,119 --> 00:26:38,330 Speaker 2: to really have a plan. That's that is not Oh, 519 00:26:38,330 --> 00:26:40,600 Speaker 2: I just spun this person as if they are a 520 00:26:40,600 --> 00:26:42,590 Speaker 2: 12 year old again in my life. I mean it's 521 00:26:42,590 --> 00:26:45,109 Speaker 2: very easy for that to happen if they're not prepared, 522 00:26:45,119 --> 00:26:47,889 Speaker 2: but I think it's also hard for it 523 00:26:47,910 --> 00:26:51,600 Speaker 2: not to happen, right? We're usually dealing with three things here. 524 00:26:51,609 --> 00:26:56,969 Speaker 2: Three competing priorities. We've got your own retirement, we've got 525 00:26:56,980 --> 00:26:59,610 Speaker 2: college for the kids and we've got the needs of 526 00:26:59,609 --> 00:27:03,630 Speaker 2: your parents. So when we look at those three factors 527 00:27:03,900 --> 00:27:06,970 Speaker 2: you can borrow for college, you can put off your 528 00:27:06,970 --> 00:27:10,930 Speaker 2: own retirement. If your parents need financial help. It's really 529 00:27:10,930 --> 00:27:13,350 Speaker 2: hard not to give it, but financial help can be. 530 00:27:13,350 --> 00:27:15,889 Speaker 2: So then you need to move in with us. Financial 531 00:27:15,890 --> 00:27:17,109 Speaker 2: help can be. So 532 00:27:17,160 --> 00:27:19,720 Speaker 2: I will take a cut back on my job and 533 00:27:19,720 --> 00:27:23,040 Speaker 2: actually provide part time care, right? As opposed to hard 534 00:27:23,050 --> 00:27:26,570 Speaker 2: cash basically paying people. At one point we had, I 535 00:27:26,570 --> 00:27:30,450 Speaker 2: think three tiers right of eight hour shifts for people 536 00:27:30,450 --> 00:27:32,570 Speaker 2: helping my mom and dad. I mean, and, and then 537 00:27:32,570 --> 00:27:34,180 Speaker 2: it was the two of them, right? It was just 538 00:27:34,180 --> 00:27:37,990 Speaker 2: an insane number of people rotating through to have 24 539 00:27:37,990 --> 00:27:40,900 Speaker 2: hour a day care. The math just did not work out. 540 00:27:40,900 --> 00:27:42,710 Speaker 2: And I know they wanted to stay in their house. 541 00:27:42,720 --> 00:27:46,399 Speaker 2: It just was not financially possible to really make it happen. 542 00:27:46,619 --> 00:27:49,640 Speaker 2: And it also was unsafe. The key is knowing where 543 00:27:49,640 --> 00:27:52,510 Speaker 2: those dominoes are going to fall as you're going through 544 00:27:52,510 --> 00:27:57,900 Speaker 2: the process, figuring out financially, okay, play this forward for me, 545 00:27:57,900 --> 00:28:00,409 Speaker 2: play it out 12 months, play it out three years, 546 00:28:00,410 --> 00:28:05,100 Speaker 2: play it out five years. That's something people need help with. Absolutely. 547 00:28:05,100 --> 00:28:08,580 Speaker 2: And in many cases, as you've mentioned, sell it at 548 00:28:08,580 --> 00:28:11,020 Speaker 2: a very hard choice to make, right bringing in a 549 00:28:11,020 --> 00:28:15,659 Speaker 2: financial planner that can share with your parents what them 550 00:28:16,070 --> 00:28:19,040 Speaker 2: depending on you financially would mean for them. Remember we 551 00:28:19,040 --> 00:28:22,600 Speaker 2: set this by saying parents don't want to be a 552 00:28:22,600 --> 00:28:25,630 Speaker 2: burden on their kids is gonna make that conversation of 553 00:28:25,630 --> 00:28:27,730 Speaker 2: them maybe having to move in with you 554 00:28:28,109 --> 00:28:31,210 Speaker 2: that much easier because they know if they don't move 555 00:28:31,210 --> 00:28:34,120 Speaker 2: in with you, you may be in a situation that 556 00:28:34,119 --> 00:28:36,470 Speaker 2: they are in right now and they don't want that 557 00:28:36,470 --> 00:28:38,790 Speaker 2: for you either. Right? We never stop being parents whether 558 00:28:38,790 --> 00:28:42,640 Speaker 2: our kids are 60 or five. Right? So bring in 559 00:28:42,640 --> 00:28:46,170 Speaker 2: a financial planner in that conversation and you can always 560 00:28:46,170 --> 00:28:50,380 Speaker 2: reach a financial planner by going to plan e f 561 00:28:50,380 --> 00:28:53,880 Speaker 2: e dot com. And it's not just about those big things, 562 00:28:53,900 --> 00:28:57,770 Speaker 2: it's not about helping your parents pay for nursing home, 563 00:28:57,980 --> 00:29:02,240 Speaker 2: it's also helping your parents clean the gutters because they 564 00:29:02,240 --> 00:29:04,930 Speaker 2: can no longer get on a ladder. It's going over 565 00:29:04,930 --> 00:29:08,510 Speaker 2: there to make sure that they have enough groceries or 566 00:29:08,510 --> 00:29:10,860 Speaker 2: bringing them a meal because you don't want them to 567 00:29:10,860 --> 00:29:14,290 Speaker 2: cook all the time. Those things not only have a 568 00:29:14,290 --> 00:29:18,770 Speaker 2: small financial burden to them, they also have this emotional burden, right? 569 00:29:18,780 --> 00:29:19,670 Speaker 2: I got to say I have 570 00:29:19,680 --> 00:29:24,380 Speaker 2: A friend who moved his parents to his town, they 571 00:29:24,380 --> 00:29:26,770 Speaker 2: had retired somewhere else. But this was the town where 572 00:29:26,770 --> 00:29:30,790 Speaker 2: they had raised their Children, both parents in their 80s 573 00:29:30,800 --> 00:29:34,490 Speaker 2: and he is there every day. He is, he is 574 00:29:34,500 --> 00:29:37,479 Speaker 2: over there every day and he's over there every day 575 00:29:37,540 --> 00:29:41,620 Speaker 2: to shovel the snow when their snow to pick up 576 00:29:41,630 --> 00:29:45,450 Speaker 2: a prescription when there's a prescription to be picked up 577 00:29:45,470 --> 00:29:49,010 Speaker 2: to deal with the, you know, remote control when it 578 00:29:49,010 --> 00:29:52,120 Speaker 2: stops working because the batteries have died, right? I mean it's, 579 00:29:52,130 --> 00:29:55,100 Speaker 2: it's a time suck, which he's happy to do. But 580 00:29:55,110 --> 00:30:00,760 Speaker 2: the emotion is crazy. It's huge ahead. We're going to 581 00:30:00,760 --> 00:30:05,010 Speaker 2: be talking about cohabitating, which I never really called it cohabitating. 582 00:30:05,020 --> 00:30:07,390 Speaker 2: Don't we just call it moving in together, backing up, 583 00:30:08,070 --> 00:30:11,240 Speaker 2: backing up a lot of people cohabitate or shack up 584 00:30:11,250 --> 00:30:14,290 Speaker 2: because it can save the money in the long term, right? 585 00:30:14,290 --> 00:30:16,380 Speaker 2: It feels like, hey, you don't need two apartments, you 586 00:30:16,380 --> 00:30:18,260 Speaker 2: don't need to have everything, you can save money. But 587 00:30:18,260 --> 00:30:22,410 Speaker 2: there are some obstacles. Financial obstacles when it comes to 588 00:30:22,410 --> 00:30:25,640 Speaker 2: cohabitating and you're not married. We're gonna talk about that 589 00:30:25,650 --> 00:30:28,200 Speaker 2: just ahead. I'm soledad O'brien and I'm here with jean 590 00:30:28,200 --> 00:30:31,790 Speaker 2: Chatzky and Edelman Financial engines, wealth planner Rosen Young and 591 00:30:31,790 --> 00:30:35,760 Speaker 2: you're listening to Edelman financial engines everyday wealth stay with us. 592 00:30:35,760 --> 00:30:37,040 Speaker 2: We're back in just a moment 593 00:30:39,290 --> 00:30:41,670 Speaker 1: with talk of a recession coming. It's time to ask 594 00:30:41,670 --> 00:30:44,820 Speaker 1: yourself is your financial plan ready to handle it. Talk 595 00:30:44,820 --> 00:30:47,080 Speaker 1: to an Edelman financial engines wealth planner and learn how 596 00:30:47,080 --> 00:30:50,400 Speaker 1: to help prepare for whatever lies ahead, call 833 plan 597 00:30:50,410 --> 00:30:52,750 Speaker 1: E F. Or visit plan E F E dot com 598 00:30:52,750 --> 00:30:53,450 Speaker 1: to get connected. 599 00:30:55,940 --> 00:30:56,380 Speaker 1: So 600 00:30:56,380 --> 00:31:00,410 Speaker 2: Let's talk about cohabitating, shall we shacking up is what 601 00:31:00,410 --> 00:31:02,170 Speaker 2: we used to call it back in the day. And 602 00:31:02,180 --> 00:31:05,500 Speaker 2: I wasn't aware that the share of adults who are 603 00:31:05,500 --> 00:31:09,820 Speaker 2: currently married has steadily declined from close to 60% back 604 00:31:09,820 --> 00:31:14,290 Speaker 2: in the 1990s to under 50% in 2019. That's from Pew. 605 00:31:14,300 --> 00:31:17,200 Speaker 2: And over that same period, the share of adults between 606 00:31:17,200 --> 00:31:20,730 Speaker 2: the ages of 18 and 40 for who are living 607 00:31:20,730 --> 00:31:24,260 Speaker 2: with a partner has climbed to 59% I thought. 608 00:31:24,290 --> 00:31:27,790 Speaker 2: But those data points were kind of staggering. Actually, I 609 00:31:27,790 --> 00:31:31,160 Speaker 2: would not have guessed that it's not surprising to me. 610 00:31:31,170 --> 00:31:35,030 Speaker 2: I think that the two statistics actually go hand in hand. 611 00:31:35,030 --> 00:31:38,200 Speaker 2: I think people want a partner, they want somebody in 612 00:31:38,200 --> 00:31:42,620 Speaker 2: their life. They just don't feel the need to tie 613 00:31:42,620 --> 00:31:46,390 Speaker 2: the knot right? And they've seen the statistics on divorce 614 00:31:46,400 --> 00:31:51,020 Speaker 2: come year after year after year. They think, well, why 615 00:31:51,020 --> 00:31:52,630 Speaker 2: am I going to 616 00:31:52,640 --> 00:31:56,210 Speaker 2: bother to take this legal step of making my relationship 617 00:31:56,220 --> 00:32:01,050 Speaker 2: a business partnership essentially when I could road test it 618 00:32:01,050 --> 00:32:05,060 Speaker 2: first or even road tested forever without having to. I 619 00:32:05,060 --> 00:32:08,210 Speaker 2: think a lot of the stigma of not being married 620 00:32:08,210 --> 00:32:13,740 Speaker 2: has actually gone away. What people don't realize is that 621 00:32:13,750 --> 00:32:16,900 Speaker 2: there are a lot of financial protections that you actually 622 00:32:16,910 --> 00:32:20,180 Speaker 2: get when you're married, talk about the tax code, right? 623 00:32:20,180 --> 00:32:20,940 Speaker 2: You have a whole day 624 00:32:20,990 --> 00:32:23,750 Speaker 2: brackett if you're married versus if you're single up to 625 00:32:23,750 --> 00:32:27,150 Speaker 2: a certain point, right? So all those federal protections that 626 00:32:27,150 --> 00:32:29,810 Speaker 2: you actually also get, like when I go to a 627 00:32:29,810 --> 00:32:32,890 Speaker 2: hospital and God forbid if my husband was there, I 628 00:32:32,890 --> 00:32:35,510 Speaker 2: just walk in and say I'm his wife and they 629 00:32:35,510 --> 00:32:38,140 Speaker 2: let me in, you don't have to prove it. As 630 00:32:38,140 --> 00:32:40,680 Speaker 2: long as you, you know you're married, you can make 631 00:32:40,680 --> 00:32:44,140 Speaker 2: those decisions. You are the clear next of kin. So 632 00:32:44,150 --> 00:32:48,110 Speaker 2: all of those are not there. If you're not in 633 00:32:48,110 --> 00:32:49,330 Speaker 2: that legally binding 634 00:32:49,340 --> 00:32:52,380 Speaker 2: contract. So, so even though I am with you there, 635 00:32:52,380 --> 00:32:55,240 Speaker 2: gene that just because I have many friends who live 636 00:32:55,240 --> 00:32:58,000 Speaker 2: together who necessarily don't talk about when they're going to 637 00:32:58,000 --> 00:33:03,590 Speaker 2: get married. My advice to them always is to if 638 00:33:03,590 --> 00:33:07,810 Speaker 2: you can't just inherently get those protections because you're married, 639 00:33:07,820 --> 00:33:13,180 Speaker 2: build build those protections so that if your partner was sick, 640 00:33:13,190 --> 00:33:16,530 Speaker 2: you're able to make those decisions when you buy a home. 641 00:33:16,540 --> 00:33:17,690 Speaker 2: I would imagine that 642 00:33:17,840 --> 00:33:22,220 Speaker 2: should you get divorced or dissolves that, then this property, 643 00:33:22,220 --> 00:33:24,660 Speaker 2: regardless of whose name it is actually has to be 644 00:33:24,660 --> 00:33:27,740 Speaker 2: figured out who who gets what part of it, which 645 00:33:27,740 --> 00:33:30,290 Speaker 2: of course is a protection you don't necessarily have if 646 00:33:30,290 --> 00:33:33,850 Speaker 2: you buy a house with a partner, it's part of Yeah, 647 00:33:33,860 --> 00:33:36,560 Speaker 2: it's part of a divorce settlement and divorce agreement. Each 648 00:33:36,560 --> 00:33:40,240 Speaker 2: state has laws, but I there's a column on market, 649 00:33:40,240 --> 00:33:42,070 Speaker 2: Watch a guy named 650 00:33:42,080 --> 00:33:45,760 Speaker 2: Quentin Futrell. He writes a column called the money ist. 651 00:33:45,770 --> 00:33:51,430 Speaker 2: And he got a letter just recently from somebody who said, 652 00:33:51,440 --> 00:33:55,400 Speaker 2: I moved in with my boyfriend, he into his house 653 00:33:55,400 --> 00:34:00,660 Speaker 2: and I'm contributing to the expenses. I'm contributing to the mortgage, 654 00:34:00,660 --> 00:34:04,380 Speaker 2: I'm contributing to the household expenses. I have no ownership 655 00:34:04,390 --> 00:34:06,320 Speaker 2: in this. Is this a prop 656 00:34:06,620 --> 00:34:10,700 Speaker 2: and he proceeded to lay out all the different reasons 657 00:34:10,700 --> 00:34:15,260 Speaker 2: why this is a problem. But yeah, you know, if you're, 658 00:34:15,320 --> 00:34:20,180 Speaker 2: if you're building a life together and you're building assets together, 659 00:34:20,370 --> 00:34:24,120 Speaker 2: the assumption is that at least some of them are 660 00:34:24,120 --> 00:34:26,839 Speaker 2: going to be yours if you split and if you cohabitate, 661 00:34:26,840 --> 00:34:29,360 Speaker 2: that's not always the case. No, it's not always the case. 662 00:34:29,360 --> 00:34:30,560 Speaker 2: And also it depends on the, 663 00:34:30,570 --> 00:34:33,350 Speaker 2: the state that you are cohabitating in whether or not 664 00:34:33,360 --> 00:34:36,450 Speaker 2: you even have a recourse through the court systems, right? 665 00:34:36,450 --> 00:34:39,450 Speaker 2: So with that being said, even though you don't have 666 00:34:39,450 --> 00:34:43,469 Speaker 2: a marriage certificate, that you know would be recognized having 667 00:34:43,469 --> 00:34:47,219 Speaker 2: a partnership agreement is something that you should definitely look 668 00:34:47,219 --> 00:34:52,350 Speaker 2: into layout. What happens to part of this equity. I'm 669 00:34:52,350 --> 00:34:54,810 Speaker 2: helping you build if something would happen. 670 00:34:54,969 --> 00:34:58,740 Speaker 2: And I have a story similar in the sense that 671 00:34:58,750 --> 00:35:03,910 Speaker 2: this client has been with her partner, um, she's, she's divorced. 672 00:35:03,910 --> 00:35:06,710 Speaker 2: So this is her second girl around and just decided 673 00:35:06,719 --> 00:35:09,770 Speaker 2: they're not going to get married this time around and 674 00:35:09,770 --> 00:35:13,070 Speaker 2: this year they decided to buy a home together. Now 675 00:35:13,080 --> 00:35:17,290 Speaker 2: the complication came in when the partner is able to 676 00:35:17,300 --> 00:35:20,520 Speaker 2: put in the cash to buy that home and she's 677 00:35:20,520 --> 00:35:21,250 Speaker 2: not 678 00:35:21,520 --> 00:35:24,330 Speaker 2: against my advice because that wouldn't make sense for her. 679 00:35:24,340 --> 00:35:27,810 Speaker 2: What do we do then? How do we title the house, 680 00:35:27,820 --> 00:35:31,750 Speaker 2: who's responsible for the mortgage? And she has kids from 681 00:35:31,750 --> 00:35:35,640 Speaker 2: her previous relationship and the partner doesn't, if something were 682 00:35:35,640 --> 00:35:39,130 Speaker 2: to happen to her, what will happen to her share 683 00:35:39,210 --> 00:35:43,890 Speaker 2: of that property? So sitting with a professional talking to 684 00:35:43,900 --> 00:35:49,070 Speaker 2: an estate planning attorney, building that partnership agreement is absolutely 685 00:35:49,070 --> 00:35:51,090 Speaker 2: the best way to go in that situation. And 686 00:35:51,100 --> 00:35:53,300 Speaker 2: and even in the situation that you just mentioned, gene, 687 00:35:53,650 --> 00:35:57,009 Speaker 2: I love that we are just killing the romance, shacking 688 00:35:57,010 --> 00:36:01,170 Speaker 2: up with just stopping it dead and any romance and 689 00:36:01,170 --> 00:36:04,259 Speaker 2: getting right into the money. Let's talk about retirement because 690 00:36:04,260 --> 00:36:07,190 Speaker 2: of course, when you're married, you get access to your 691 00:36:07,190 --> 00:36:11,170 Speaker 2: partner's retirement money. If they should die, if you should 692 00:36:11,170 --> 00:36:13,750 Speaker 2: get divorced right, you have access to that. But of course, 693 00:36:13,750 --> 00:36:17,690 Speaker 2: if it's just a partnership without legal agreements out, you know, 694 00:36:17,690 --> 00:36:20,230 Speaker 2: with standing in the middle of that, then you don't 695 00:36:20,230 --> 00:36:20,680 Speaker 2: seem to have 696 00:36:20,690 --> 00:36:22,900 Speaker 2: any rights to that. I think that's pretty clear, no 697 00:36:22,900 --> 00:36:26,090 Speaker 2: matter what state you're in. And also let's add one 698 00:36:26,090 --> 00:36:30,000 Speaker 2: more wrench into that Social security. If if I pass 699 00:36:30,000 --> 00:36:33,509 Speaker 2: away my family, my husband has access to some of 700 00:36:33,510 --> 00:36:36,670 Speaker 2: those benefits that I may have not used. And this 701 00:36:36,670 --> 00:36:40,489 Speaker 2: is even more important, soledad if one partner is working 702 00:36:40,489 --> 00:36:44,390 Speaker 2: and another is not that non working partner is not 703 00:36:44,390 --> 00:36:47,600 Speaker 2: covered at all under that spousal benefit that me as 704 00:36:47,600 --> 00:36:50,260 Speaker 2: a married person would have gotten as well. So this 705 00:36:50,270 --> 00:36:55,390 Speaker 2: makes a situation where what will happen if you passed away? 706 00:36:55,390 --> 00:36:59,830 Speaker 2: Your Social Security disappears In that case, maybe you need 707 00:36:59,830 --> 00:37:03,089 Speaker 2: to be saving more so that your partner is protected. 708 00:37:03,100 --> 00:37:07,050 Speaker 2: If you the earner pass away even earlier. I think 709 00:37:07,050 --> 00:37:10,930 Speaker 2: most people who cohabitate still think of themselves in all 710 00:37:10,930 --> 00:37:15,029 Speaker 2: sense as a married couple without that document. Right? So 711 00:37:15,030 --> 00:37:17,080 Speaker 2: then how do we make sure when we're building that 712 00:37:17,080 --> 00:37:19,840 Speaker 2: financial plan we are putting in the fact that 713 00:37:19,850 --> 00:37:23,590 Speaker 2: your social Security will not go to your non working spouse. 714 00:37:23,600 --> 00:37:25,839 Speaker 2: So we need to save more to be able to 715 00:37:25,840 --> 00:37:29,140 Speaker 2: maintain the standard of living. Having those power of attorneys. 716 00:37:29,150 --> 00:37:34,290 Speaker 2: Having those designated beneficiaries on every account that you have. 717 00:37:34,300 --> 00:37:39,250 Speaker 2: Having that medical directive is even more important because a 718 00:37:39,250 --> 00:37:42,120 Speaker 2: married couple will have other recourses to get access to that. 719 00:37:42,120 --> 00:37:43,879 Speaker 2: It may take a long time. So I'm still recommending 720 00:37:43,880 --> 00:37:47,470 Speaker 2: for everybody to have a pretty buttoned up a state plan. 721 00:37:47,480 --> 00:37:49,430 Speaker 2: But for partners 722 00:37:49,440 --> 00:37:53,240 Speaker 2: who are unmarried, this is even more important just because 723 00:37:53,239 --> 00:37:55,810 Speaker 2: you may not have that recourse to get your hands 724 00:37:55,810 --> 00:37:59,090 Speaker 2: on that. So then when it comes to talking about 725 00:37:59,090 --> 00:38:01,120 Speaker 2: people who decided not to get married, but they're going 726 00:38:01,120 --> 00:38:04,290 Speaker 2: to live together. Tick off for me. Rose. The ways 727 00:38:04,290 --> 00:38:07,689 Speaker 2: that a wealth planner can actually help them navigate this. 728 00:38:07,739 --> 00:38:11,560 Speaker 2: The biggest thing is helping you have that frank and 729 00:38:11,570 --> 00:38:16,330 Speaker 2: honest conversations around what you would want to happen, not 730 00:38:16,330 --> 00:38:19,020 Speaker 2: only when you're gone, but maybe when your partner is gone. 731 00:38:19,200 --> 00:38:21,730 Speaker 2: And it's also very important right now to make sure 732 00:38:21,730 --> 00:38:25,029 Speaker 2: that you have a will, a trust if applicable, right? 733 00:38:25,040 --> 00:38:28,650 Speaker 2: If you have Children, you must have a trust, especially 734 00:38:28,650 --> 00:38:31,060 Speaker 2: if they are minor Children and you're not in a 735 00:38:31,060 --> 00:38:34,680 Speaker 2: traditional relationship where your spouse can just step in and 736 00:38:34,690 --> 00:38:38,469 Speaker 2: also have power of attorney for, for your financials as 737 00:38:38,469 --> 00:38:42,640 Speaker 2: well as for health care. You know, when things that 738 00:38:42,650 --> 00:38:46,250 Speaker 2: are so seemingly big happened that stops us in our tracks, 739 00:38:46,430 --> 00:38:49,850 Speaker 2: the rest of the world goes on that electric bill 740 00:38:49,850 --> 00:38:52,610 Speaker 2: still needs to be paid, that mortgage still needs to 741 00:38:52,610 --> 00:38:55,450 Speaker 2: be paid. Those kids still need to get to school 742 00:38:55,450 --> 00:38:58,890 Speaker 2: and back and forth and we don't think about that fact, right? 743 00:38:58,900 --> 00:39:02,230 Speaker 2: Your partner may have to stop working altogether to help 744 00:39:02,239 --> 00:39:05,689 Speaker 2: care for you. Have you factored all that in uh, 745 00:39:05,700 --> 00:39:09,040 Speaker 2: you know, into those decisions that you're making. So sitting 746 00:39:09,040 --> 00:39:12,710 Speaker 2: down with a financial planner being honest about how you 747 00:39:12,710 --> 00:39:13,640 Speaker 2: feel and you 748 00:39:13,660 --> 00:39:17,520 Speaker 2: you can always reach out to Edelman financial engines by 749 00:39:17,520 --> 00:39:21,120 Speaker 2: calling 833 Plan E F. Alright, well we are out 750 00:39:21,120 --> 00:39:23,350 Speaker 2: of time Rose, thank you so much. Always nice to 751 00:39:23,350 --> 00:39:25,950 Speaker 2: have you in studio and for everybody else of course, 752 00:39:25,950 --> 00:39:28,629 Speaker 2: if you've got a question or a topic that you'd 753 00:39:28,630 --> 00:39:30,500 Speaker 2: like us to discuss, we'd love to have you come 754 00:39:30,500 --> 00:39:32,290 Speaker 2: on the air to talk about it, go to everyday 755 00:39:32,290 --> 00:39:35,710 Speaker 2: wealth dot com and submit your question and together with 756 00:39:35,710 --> 00:39:37,969 Speaker 2: an e F e wealth planner, we'll talk you through 757 00:39:37,969 --> 00:39:40,799 Speaker 2: potential solutions that would be personal to you 758 00:39:41,210 --> 00:39:43,250 Speaker 2: and if you want to catch a show that you 759 00:39:43,250 --> 00:39:45,760 Speaker 2: might have missed, you can always pick us up on 760 00:39:45,760 --> 00:39:48,870 Speaker 2: our podcast. Often the podcast will have extra content. We're 761 00:39:48,870 --> 00:39:51,680 Speaker 2: not able to air on the radio just because of time. 762 00:39:51,690 --> 00:39:54,989 Speaker 2: You can download our podcast at everyday wealth dot com 763 00:39:54,989 --> 00:39:58,390 Speaker 2: or wherever you stream your favorite podcast, we love feedback. 764 00:39:58,390 --> 00:40:01,460 Speaker 2: Leave us a review and take a second subscribe so 765 00:40:01,460 --> 00:40:04,390 Speaker 2: you never miss an episode. Have a great week. 766 00:40:04,390 --> 00:40:05,120 Speaker 1: Everyone 767 00:40:06,690 --> 00:40:10,790 Speaker 1: you've been listening to Edelman financial engines everyday wealth with 768 00:40:10,790 --> 00:40:15,359 Speaker 1: soledad O'brien jean Chatzky and Rose nine young tune in 769 00:40:15,360 --> 00:40:18,560 Speaker 1: each week for fresh and compelling insights and strategies to 770 00:40:18,560 --> 00:40:21,960 Speaker 1: help elevate your financial potential to learn more, visit our 771 00:40:21,960 --> 00:40:25,600 Speaker 1: website everyday wealth dot com or find our show wherever 772 00:40:25,600 --> 00:40:27,380 Speaker 1: you stream your favorite podcast