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Speaker 1: Tonight some advice you don't want to hear, but you

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Speaker 1: might need to hear. You're listening to Simply Money, presented

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Speaker 1: by all Worth Financial on Bob Sponsller along with Brian James.

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Speaker 1: We meet a lot of families who've done an incredible

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Speaker 1: job saving maybe they sold a business, maybe they were

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Speaker 1: diligent four to one K savers for years, if not decades,

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Speaker 1: and now they're sitting on two million, three million, five million,

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Speaker 1: maybe even more. And the natural thought is, well, we're rich,

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Speaker 1: we're good, we're set for life. But here's where we

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Speaker 1: put the tough teacher hat on tonight and say not

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Speaker 1: so fast. You're not automatically in the clear. So, staying

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Speaker 1: with that whole teacher theme, Brian, let's get into lesson

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Speaker 1: number one.

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Speaker 2: All right, Bob Lesson one, Retirement isn't a vacation, it's

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Speaker 2: a paycheck replacement plan. Now, some of the things we're

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Speaker 2: going to talk about here this evening are about are

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Speaker 2: going to sound kind of almost wet, blankety, kind of depressing.

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Speaker 2: But retirement should be a happy time. Here's how you

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Speaker 2: start that way and keep it that way. So a

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Speaker 2: retirement is a vacation, not a paycheck replacement plan basically

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Speaker 2: means that you know, you have to figure out what

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Speaker 2: you were living off of before this kind of where

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Speaker 2: it all starts. If you were making one hundred and fifty

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Speaker 2: thousand dollars while you were working, well, where's that money

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Speaker 2: going to come from?

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Speaker 3: Now?

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Speaker 2: Now, let me back off that question a little bit

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Speaker 2: by saying, if you were grossing one hundred and fifty

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Speaker 2: thousand dollars, you were not netting one hundred and fifty

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Speaker 2: thousand dollars.

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Speaker 3: You had taxes coming out of that.

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Speaker 2: You had federal income taxes, state income taxes, payroll taxes,

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Speaker 2: which are three different flavors by the way, and you

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Speaker 2: had your four roh one k contribution's.

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Speaker 3: Coming out of it.

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Speaker 2: Maybe you were putting money systematically into savings that you

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Speaker 2: don't have to anymore. You had a mortgage, maybe that's gone,

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Speaker 2: so you don't necessarily need to replace your entire salary.

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Speaker 2: But that also means you need to do a little

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Speaker 2: bit of work and figure out what it is exactly

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Speaker 2: that you spend so that you know what target you're

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Speaker 2: shooting for. You can't spend what you don't have, no

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Speaker 2: matter how well you've done, so even three to five

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Speaker 2: million dollars can run drive if you don't manage those withdrawals, inflation,

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Speaker 2: taxes and all that.

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Speaker 3: We've got clients with it.

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Speaker 2: Have you know, two hundred fifty thousand dollars who are

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Speaker 2: going to be just fine because their budget is below

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Speaker 2: their Social Security checks and that's kind of all they have.

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Speaker 2: We have clients who have five million dollars who live

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Speaker 2: like they have twenty five million dollars. Yep, guess which

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Speaker 2: one has the problem. What's our second lesson, Bob Well.

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Speaker 1: Lesson too is stop chasing headlines. In other words, the

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Speaker 1: market doesn't care what you read and consume in the

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Speaker 1: way of media all day. Stop chasing headlines, Brian, I'm

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Speaker 1: running into this more and more. I mean, let's face it,

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Speaker 1: in this divided media culture that we're living in right now,

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Speaker 1: depending on where we go in terms of sources for

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Speaker 1: our news and headlines, we can have a completely different

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Speaker 1: narrative swimming around in our head And for folks that

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Speaker 1: just retire and don't maybe have enough to do, you know,

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Speaker 1: they're glued to CNBC or TikTok or wherever they get

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Speaker 1: their news, and they want to act on what they

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Speaker 1: hear or see in headlines rather than have an actual plan.

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Speaker 1: And again, the market does not care what you read.

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Speaker 1: It doesn't move because of your favorite newsletter or Twitter feed.

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Speaker 2: Yeah, and Bob, I can't remember the last time I heard,

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Speaker 2: and I don't think I ever have the last time

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Speaker 2: I heard our chief investment officer, Andy Stout say hey,

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Speaker 2: I read this or I saw this headline on the crawl,

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Speaker 2: I better to go do something with our thirty billion

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Speaker 2: dollars that we manage.

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Speaker 3: These are not things. This is financial pornography.

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Speaker 2: We don't necessarily we really never react to those kind

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Speaker 2: of headlines.

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Speaker 3: It's just something to talk about, and.

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Speaker 1: It comes from it comes from both sides of the

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Speaker 1: political aisle.

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Speaker 3: Let's face it.

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Speaker 1: I mean, we live the news. Media is a business.

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Speaker 1: They know what we want to consume and they feed

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Speaker 1: us what we want to read. So yeah, thank god

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Speaker 1: we got Andy Stout just looking at data and running

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Speaker 1: our good old recession scorecard to keep us up to date.

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Speaker 1: All right, less than three Brian.

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Speaker 2: Yeah, your kids don't need another check, they need a plan.

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Speaker 2: So we've seen this pretty often. So we write checks

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Speaker 2: for houses, cars, vacations, and this feels, you know, generous,

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Speaker 2: but it actually can actually hurt them if you're helping

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Speaker 2: them at this level. And yeah, it's tough out there,

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Speaker 2: and this doesn't mean to abandon them to the wolves.

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Speaker 2: But at the same time, if we're if we're building,

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Speaker 2: the expectation is the money just drop drops out of

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Speaker 2: the sky and my problems are solved.

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Speaker 3: Then they're not going to learn how to how to

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Speaker 3: scrimp and save the.

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Speaker 2: Way that the way that you did uh to to

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Speaker 2: build your ability to help them this way in the

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Speaker 2: first place. So this this can fuel lifestyle inflation, makes

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Speaker 2: them completely dependent on somebody else and robs them of

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Speaker 2: any financial discipline, which is presumably what you got along

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Speaker 2: the way from your forebears because you had the ability

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Speaker 2: to build this kind of a nest egg in the

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Speaker 2: first place that supports them to do this. So what

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Speaker 2: might be a better gift if I'm going to help

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Speaker 2: my kid my kids, Bob, what do you think?

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Speaker 3: What are some good ideas? Well?

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Speaker 1: The best gift is financial education and communication. And you

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Speaker 1: know it's sitting down, especially you know, approaching and into retirement,

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Speaker 1: you got more time to do this. Equip your kids

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Speaker 1: and grand kids to handle money. And yes, if there's

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Speaker 1: a dire need that comes along. I mean, helping them

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Speaker 1: get out of a jam today for a little bit

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Speaker 1: of money is going to be a game changer versus

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Speaker 1: giving them a whole pile of money when they're in there,

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Speaker 1: you know, late sixties, seventies. But to your point, Brian,

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Speaker 1: we can't enable bad behavior just because we feel like

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Speaker 1: we've got a whole boatload of money to throw around

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Speaker 1: and we're we're it's counterintuitive, but we're oftentimes hurting our

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Speaker 1: kids more than we're helping them by bailing them out

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Speaker 1: or enabling irresponsible behavior. You're listening to Simply Money, presented

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Speaker 1: by all Worth Financial on Bob Sponseller along with Brian James. Brian,

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Speaker 1: let's get into another lesson stop treating your portfolio like

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Speaker 1: a casino. We don't run across this too often with

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Speaker 1: our clients, but every once in a while we do.

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Speaker 2: Yeah, a lot of times, you know, people will get

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Speaker 2: to get an idea, and this comes from cocktail party

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Speaker 2: or somebody's brother in law or somebody you know, somebody's

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Speaker 2: friend or at the office water cooler, got a hot

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Speaker 2: tip on something and it paid off, and so now

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Speaker 2: all of a sudden, we want it. We want to

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Speaker 2: chase things and so some people, some investors, are doing

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Speaker 2: just that, treating their portfolio like a casino. It's something

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Speaker 2: where I'm supposed to take a little bit of money

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Speaker 2: and turn it into a big pile of money. These

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Speaker 2: are when we talk about these on these airwaves all

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Speaker 2: the time, meme stocks, crypto hot funds. Twenty five years ago,

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Speaker 2: it was any technology stock that's not investing, that's just gambling,

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Speaker 2: like Vegas, the house always wins.

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Speaker 3: Portfolios are not for thrill seekings. For building financial security,

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Speaker 3: discipline beats luck every time. So if you find yourself

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Speaker 3: having this itch and needing to scratch it carve out

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Speaker 3: a little bit of money, don't do it in a

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Speaker 3: roth ira. A lot of people say, I'm gonna make

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Speaker 3: my bazillion dollars out of this penny stock in a

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Speaker 3: roth ira.

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Speaker 2: That way i'll have I'll be Peter Teeal with five

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Speaker 2: billion dollars off of this thousand dollars investment I made

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Speaker 2: in a penny stock. Well, more likely what's going to

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Speaker 2: happen is one thousand dollars is going to go to

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Speaker 2: one hundred dollars.

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Speaker 3: Or zero dollars.

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Speaker 2: And because you did it inside of a roth ira,

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Speaker 2: you don't even get a deduction out of it. So

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Speaker 2: the bear in mind the risk that you're taking with

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Speaker 2: these little corners of your portfolio, and do it in

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Speaker 2: a taxable account if you have to.

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Speaker 3: Yeah, and I.

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Speaker 1: Love the concept again for those that love to play,

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Speaker 1: you know, and there's nothing wrong with doing this. But

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Speaker 1: again my message is always, let's make sure we separate

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Speaker 1: your serious money from your play money. If you've got

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Speaker 1: enough serious money set aside in a good responsible financial

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Speaker 1: plan and you want to go take some risk and

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Speaker 1: speculate on some things for fun or to compete or

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Speaker 1: just feel like you're winning. Treated as a hobby, it's

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Speaker 1: totally fine. But you don't want to do that with

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Speaker 1: your serious money for obvious reasons. You'll mess up your

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Speaker 1: retirement that you've spent decades building just because you're bored

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Speaker 1: and seeking excitement. All right, Brian less than six. I

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Speaker 1: think this is a big one, and I think this

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Speaker 1: one this is one of the biggest value ads we

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Speaker 1: provide for our clients. And that's not letting taxes.

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Speaker 2: Such you, taxes should be somewhat predictable if you're paying attention,

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Speaker 2: so they're gonna be one of your biggest lifetime expenses

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Speaker 2: if you add them all up, probably even bigger than

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Speaker 2: your house. So roth conversions, charitable trust, direct indexing plans,

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Speaker 2: planning ahead saves millions of dollars. These are all ways

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Speaker 2: of simply understanding how the tax code works and taking

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Speaker 2: advantage of all.

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Speaker 3: Those little subtle details.

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Speaker 2: So if you're gonna do a Roth conversion, you're simply

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Speaker 2: taking pre tax money and you're turning it into after

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Speaker 2: tax tax money forever. That sounds awesome, And a lot

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Speaker 2: of people roll in and they say, of course, I'm

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Speaker 2: gonna convert my entire traditional ray to a a WROTH.

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Speaker 3: Why wouldn't I that it's gonna be tax free forever.

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Speaker 2: We gotta look at what that's gonna cost you out

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Speaker 2: of pocket and how you're gonna pay the pay the taxes,

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Speaker 2: for example, in that case, charity, direct indexing, all these

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Speaker 2: other things are definitely helpful strategies. But if you ignore taxes,

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Speaker 2: you're gonna give the iron more than your kids over time.

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Speaker 1: All right, less than seven. Don't confuse busy work with

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Speaker 1: a true financial plan. And Brian, we run into this

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Speaker 1: from time to time. People are checking their accounts every day,

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Speaker 1: multiple times a day. That's not a plan. Neither is

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Speaker 1: collecting fifteen statements from different advisors, you know, feeling like

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Speaker 1: you're diversified and you've got all this information to manage

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Speaker 1: and play with. True planning means coordination, investments, estate planning, taxes,

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Speaker 1: and insurance all working together in concert in one coortin plan.

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Speaker 3: Yep. And so we'll move on then to less than eight.

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Speaker 2: If we think that retirement it starts at sixty five,

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Speaker 2: that might be another mistake. A lot of us get

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Speaker 2: hung up on Medicare age. Sixty five is the go

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Speaker 2: time for Medicare age. Matter of fact, this might be

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Speaker 2: a great time to talk about the other ages because

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Speaker 2: we tend to get confused. Sixty two is when you

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Speaker 2: can first sign up for Social Security. That doesn't mean

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Speaker 2: do it, That just means that's the first time you can.

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Speaker 2: It'll be the smallest check you ever get, which isn't

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Speaker 2: necessarily a bad thing.

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Speaker 3: Understand the impact.

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Speaker 2: Then there's something called full retirement age, which is between

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Speaker 2: sixty six and sixty seven, depending on when you were born.

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Speaker 2: For anybody born after sixty nineteen sixty, it's now sixty seven.

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Speaker 2: And then the other age related soci Security is seventy,

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Speaker 2: sixty two, sixty six, sixty seven, and seventy are the

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Speaker 2: for Social Security relevant ages. The wait longer you wait,

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Speaker 2: the bigger of a check you're going to get now.

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Speaker 2: A lot of people get hung up on sixty five,

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Speaker 2: and we tend to start here too. I think we

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Speaker 2: probably as financial advisors, tend to rely on sixty five

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Speaker 2: is just a good start point for those who don't know.

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Speaker 2: But that is the age at which you become eligible

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Speaker 2: for Medicare, which obviously is important because you need to

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Speaker 2: have some kind of health insurance plan when you are retired.

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Speaker 2: Some people are fortunate to retire from companies that offer

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Speaker 2: retireehealth benefits.

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Speaker 3: Most are not.

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Speaker 2: So you might have cobra, meaning you could go at

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Speaker 2: say sixty three and a half and get a slightly

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Speaker 2: better deal on your by maintaining your existing healthcare insurance

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Speaker 2: through your ex employer. But some people will simply have

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Speaker 2: to go on the exchanges. And if you're a you know,

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Speaker 2: for an individual, you're probably paying on thy twelve hundred

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Speaker 2: dollars a month for insurance, double that for a married

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Speaker 2: couple if you're on the exchanges. So, but that that

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Speaker 2: causes a lot of people to believe retirement starts at

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Speaker 2: sixty five, and I have no way to choose differently

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Speaker 2: than that, And that is simply not the case. You

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Speaker 2: can retire earlier. You just have to do some planning

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Speaker 2: on the healthcare side. And just because you don't want

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Speaker 2: to write a two thousand dollars check for health insurance

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Speaker 2: doesn't mean you can't so own your life. First, figure

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Speaker 2: out what you want to do, and then make the

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Speaker 2: math work around. If you got to write a fact check,

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Speaker 2: then write a fat check as long as the plan

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Speaker 2: works all right.

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Speaker 1: Lesson number nine. You can't outsmart longevity. We run into

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Speaker 1: people sometimes that underestimate how long they're actually gonna live.

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Speaker 1: One spouse for a married couple often outlives the other by,

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Speaker 1: you know, almost a decade. You got to plan as

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Speaker 1: though you're gonna live longer than you think, because chances

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Speaker 1: are one of you probably will. And that leads to

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Speaker 1: lesson number ten. Stop thinking that a state planning is

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Speaker 1: just for the wealthy. It's for the responsible, and Brian,

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Speaker 1: I see this way too often. Too many families put

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Speaker 1: off doing wills and trusts, and without it, the courts,

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Speaker 1: not you, decide what happens to your assets. And the

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Speaker 1: big one that I see overlooked a lot of times,

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Speaker 1: and this is becoming more and more prevalent for folks

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Speaker 1: that I work with, is powers of attorney. You gotta

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Speaker 1: have these things set up in case cognitive impairment, you know, dementia,

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Speaker 1: things like that happen. You gotta have somebody named to

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Speaker 1: step in your place to hear if you can't do

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Speaker 1: it anymore.

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Speaker 2: Yeah, and you might do what it's called a durable

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Speaker 2: power of attorney, which which you know, if you trust

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Speaker 2: the person that you are naming is your power of attorney,

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Speaker 2: then you can put them in charge right now, give

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Speaker 2: them the ability now while you are a perfectly clear mind.

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Speaker 3: You don't need them to do anything. But if you

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Speaker 3: want them to.

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Speaker 2: Be able to step in quickly, then a durable power

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Speaker 2: of attorney might be a good idea that enables them

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Speaker 2: not to have to go through the process of getting

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Speaker 2: you in front of a doctor to have a doctor

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Speaker 2: declare you incompetent officially. You can simply act for them. Now,

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Speaker 2: there are many moving parts of this. That's not a

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Speaker 2: quick answer, but it's something to consider if you're in

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Speaker 2: that situation.

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Speaker 1: Here's the all worth advice. No matter how much you've

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Speaker 1: saved or how smart you think you are, money doesn't

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Speaker 1: just take care of itself. Discipline, planning, and a clear

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Speaker 1: eyed approach are the only things that keep wealth from

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Speaker 1: just slipping away. There's a big lie about retirement that

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Speaker 1: most people out there still believe. We'll tell you what

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Speaker 1: that is.

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Speaker 3: Next.

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Speaker 1: You're listening to Simply Money, presented by all Worth Financial

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Speaker 1: on fifty five KRC, the talk station. You're listening to

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Speaker 1: Simply Money presented by all Worth Financial on Bob Sponsorer

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Speaker 1: along with Brian James. If you can't listen to Simply

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Speaker 1: Money every night, subscribe and get our daily podcasts. Just

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Speaker 1: search Simply Money on the iHeart app or wherever you

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Speaker 1: find your podcast. Straight ahead of six forty three, we

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Speaker 1: are diving into more of your questions, everything from smart

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Speaker 1: investing moves to protecting your retirement. One of the most

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Speaker 1: common assumptions we hear from people approaching retirement is this, Oh,

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Speaker 1: I know, I'm gonna spend way less money when I'm retired,

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Speaker 1: less commuting, less need for work clothes. The mortgage might

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Speaker 1: be paid off, so naturally expenses are gonna go down, right,

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Speaker 1: But the reality and Brian. We see this all the time.

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Speaker 1: Research shows that many retirees actually spend more in the

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Speaker 1: early years of retirement. Not less. Let's dig into this

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Speaker 1: because this happens a lot and it's an important topic

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Speaker 1: to cover.

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Speaker 2: This research comes from the eb r I Employee Benefit

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Speaker 2: Research Institute. We get a lot of good information out

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Speaker 2: of them. They've been tracking and they found for the

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Speaker 2: first five to ten years of retirement, spending off and rises.

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Speaker 3: Well, this is the reason behind this kind of makes sense.

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Speaker 2: This is when we're healthiest, most energetic, and finally ready

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Speaker 2: to do the things they've been putting off. This is

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Speaker 2: bucket list time, right for those of us who kept

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Speaker 2: a bucket list all those years. Here's all the awesome

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Speaker 2: things that I'm going to do, but when I have

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Speaker 2: the time to do it. Well, that's really the first

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Speaker 2: five to ten years worth of retirement, and when we

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Speaker 2: have time, we tend to fill it. When there's a

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Speaker 2: vacuum of time, we tend to fill that vacuum with spending.

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Speaker 2: So that's not necessarily a bad thing, but for sure

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Speaker 2: we have to get our sea legs when it comes

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Speaker 2: to being actually retired and understanding what.

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Speaker 3: Our lifestyle is going to be like.

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Speaker 2: So this can include vacations, home remodels, maybe even an

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Speaker 2: entire second home. And you know, let's be honest, a

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Speaker 2: lot of people just want to spike the football and

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Speaker 2: celebrate the fact that they don't have to clock in

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Speaker 2: on a Monday morning anymore.

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Speaker 1: Yeah, spike the football and write a half million dollar

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Speaker 1: check for whatever in our V or a second home.

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Speaker 1: I think the point we're trying to make here is

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Speaker 1: and we and we talk about this in reverse, telling

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Speaker 1: people not to just hoard all their money and not

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Speaker 1: spend it and not have any fun and leave a

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Speaker 1: whole boatload of money to their airs, you know, when

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Speaker 1: they're in their eighties and nineties. But you know this point,

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Speaker 1: you have to plan for this stuff. If you're thinking

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Speaker 1: about doing these major big ticket items, the crews, the

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Speaker 1: second home, the home remodel, the RV, talk about it

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Speaker 1: in advance of retirement and make sure that's factored in

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Speaker 1: to your retirement plan, because you only want to retire

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Speaker 1: once and you don't want to come up, you know,

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Speaker 1: in your late seventies and eighties and say, shoot, I'm

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Speaker 1: about to run out of money.

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Speaker 3: Yeah, so we want to make sure that we're on

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Speaker 3: top of things.

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Speaker 2: And this all starts with sit down with your spouse

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Speaker 2: if you're married, or even if you just need to

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Speaker 2: go sit on the porch and stare off into the

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Speaker 2: sunset and think about what you want as an individual.

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Speaker 2: It hasn't It just has everything to do with what

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Speaker 2: is it going to be like when I don't have

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Speaker 2: to adhere to someone else's schedule?

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Speaker 3: So the big thing to pay.

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Speaker 1: You just brought up an excellent point here, and that's

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Speaker 1: it is so critical to have both spouses in the

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Speaker 1: room talking about financial goals, especially in retirement because let's

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Speaker 1: face it, whether one spouse is working in a job

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Speaker 1: and the other is stay at home, or if both

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Speaker 1: spouses are working, everyone has in their mind what retirement

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Speaker 1: looks like to them. And oftentimes, when you're raising kids

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Speaker 1: and working hard and you're busy and you're in the

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Speaker 1: office all day, you're not communicating with your spouse on

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Speaker 1: what he or she thinks retirement should look like. So

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Speaker 1: it's really important to when you're talking about goals, have

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Speaker 1: both spouses in the room to talk about this stuff,

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Speaker 1: so you know, when you start attaching dollars and cents

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Speaker 1: to these goals, you've got to make sure the plan's

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Speaker 1: going to work, and do that in advance so one

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Speaker 1: or both spouses aren't disappointed in the end.

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Speaker 2: That's really important. And this all comes through we have

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Speaker 2: some to support this too. So a twenty two JP

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Speaker 2: Morgan studies showed that about six and ten retirees spent

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Speaker 2: the same or more in the first decade of retirement.

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Speaker 2: So there's a kind of exclamation point to this whole

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Speaker 2: topic here of making sure we understand you know what's coming.

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Speaker 2: By the way, we're not talking about medical costs. We're

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Speaker 2: not talking about the unfund stuff that comes later. We're

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Speaker 2: talking about people just living their lives and once they

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Speaker 2: finally accomplish that some level of freedom.

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Speaker 1: Yeah, and for those that do have a good amount

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Speaker 1: of wealth, the risk isn't necessarily running out of money,

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Speaker 1: but misaligning your wealth with your lifestyle. You don't want

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Speaker 1: to live the first ten years in retirement way under budget,

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Speaker 1: only to pass away with more money than you ever

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Speaker 1: intended to leave behind, or worse, live it up early

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Speaker 1: and then find yourself tightening the belt when you're eighty again.

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Speaker 1: It's good to get take advantage of those go go years,

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Speaker 1: as you called them. The first few years of retirement,

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Speaker 1: but talk about it, talk about it with both spouses,

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Speaker 1: and plan ahead.

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Speaker 3: And talk about it with an advisor.

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Speaker 2: I mean, this is where this is something where the

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Speaker 2: common question that I bring up when i'm when I

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Speaker 2: can see that I'm in a situation where these folks

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Speaker 2: are going to be okay. This is you know, I

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Speaker 2: really feel after thirty years of doing this, Bob, I

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Speaker 2: feel like my job, every meeting is going to be

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Speaker 2: one of two outcomes. It's me pushing someone to be

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Speaker 2: more responsible because they're about to run their train off

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Speaker 2: a cliff, or pushing them to go out and enjoy

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Speaker 2: what they've built. Every meeting fits in one of those

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Speaker 2: two categories. So one of the first things that I

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Speaker 2: ask people is when we're building a financial plan, is

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Speaker 2: you know, all, we need to know your goals. What

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Speaker 2: do you have in mind? What is it that you

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Speaker 2: want to do? And they'll say, well, we really want

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Speaker 2: to kind of make sure it works. So we're just

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Speaker 2: going to keep it simple and we're going to build

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Speaker 2: a garden and we're gonna eat vegetables out of the garden,

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Speaker 2: and we're just not going to leave the house.

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Speaker 3: And that sounds like.

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Speaker 2: A terrible way to exist for the rest of someone's life.

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Speaker 2: So I kind of try to turn them around the

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Speaker 2: other way. If you ever kind of sort of thought

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Speaker 2: maybe you wanted to do something that's going in the plan.

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Speaker 2: Let's throw every last goal in here, remodel the house,

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Speaker 2: the second house, the around the world retirement trip, do

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Speaker 2: all of those things. Let's run the math. Assuming we've

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Speaker 2: done that. If it works, cool, Now you've got to

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Speaker 2: get out of your own way and decide which of

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Speaker 2: these things you're really gonna pull the train and write

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Speaker 2: a check for. If it doesn't work, that's okay, because

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Speaker 2: we were throwing the kitchen sink into it. Now we

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Speaker 2: prioritize what are the things that are most important, what

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Speaker 2: are the things we can live without. That way, when

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Speaker 2: we do those extra fun things that maybe aren't necessary

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Speaker 2: to retirement but sure are a heck of a lot

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Speaker 2: of fun, we don't have to feel guilty about it

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Speaker 2: because we planned ahead exactly.

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Speaker 1: And what you just talked about there is being proactive

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Speaker 1: and communicating clearly. I love it. That's what good financial

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Speaker 1: planning is all about. Here's the all Worth Advice plan

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Speaker 1: for a retirement that matches your lifestyle, not just a formula.

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Speaker 3: All right, scams.

438
00:19:34,119 --> 00:19:37,520
Speaker 1: The scammers out there are getting smarter, and we'll show

439
00:19:37,520 --> 00:19:40,600
Speaker 1: you the latest tricks con artists are using and how

440
00:19:40,640 --> 00:19:44,120
Speaker 1: to spot them before they spot you. Coming up next,

441
00:19:44,160 --> 00:19:46,720
Speaker 1: you're listening to Simply Money presented by all Worth Financial

442
00:19:46,760 --> 00:19:54,960
Speaker 1: on fifty five KRC the talk station. You're listening to

443
00:19:54,960 --> 00:19:58,040
Speaker 1: Simply Money presented by all Worth Financial on Bob Sponseller

444
00:19:58,119 --> 00:20:01,000
Speaker 1: along with Brian James, joined tonight by our good friend

445
00:20:01,080 --> 00:20:06,119
Speaker 1: Josio Erlik, President of the Cincinnati Better Business Bureau. JOSO, Thanks,

446
00:20:06,160 --> 00:20:09,800
Speaker 1: as always for spending some time with us tonight. Hope

447
00:20:09,840 --> 00:20:12,080
Speaker 1: you're doing well and I know you want to talk.

448
00:20:12,160 --> 00:20:15,560
Speaker 1: There's a whole bunch of scams out there. We're always

449
00:20:15,600 --> 00:20:19,440
Speaker 1: on the lookout on these latest scams and preventing our

450
00:20:19,480 --> 00:20:22,080
Speaker 1: clients from getting exposed to them. I know you've got

451
00:20:22,080 --> 00:20:24,439
Speaker 1: a lot to talk about. Walk us through some of

452
00:20:24,440 --> 00:20:26,320
Speaker 1: this latest stuff we need to be aware of.

453
00:20:26,640 --> 00:20:29,679
Speaker 4: Well, let's start out with fantasy football. There are so

454
00:20:29,760 --> 00:20:34,600
Speaker 4: many people that play fantasy football. It's very popular. We

455
00:20:34,760 --> 00:20:37,919
Speaker 4: have seen a spike in online gaming scams as a

456
00:20:37,960 --> 00:20:40,919
Speaker 4: result of that. You know, it's really easy to end

457
00:20:41,000 --> 00:20:44,800
Speaker 4: up on an illegal betting site, especially if you're scrolling

458
00:20:44,840 --> 00:20:49,359
Speaker 4: through social media. If you're somebody who relates to betting influencers,

459
00:20:49,400 --> 00:20:52,080
Speaker 4: and that's a lot of young people, you can find

460
00:20:52,200 --> 00:20:57,840
Speaker 4: gambling influencers all over TikTok and Instagram. They pose as

461
00:20:57,960 --> 00:21:01,560
Speaker 4: betting gurus, but their goal is more to go viral

462
00:21:01,640 --> 00:21:06,000
Speaker 4: than to give genuine betting advice. They hype themselves big

463
00:21:06,040 --> 00:21:08,800
Speaker 4: time by claiming things like I made ten thousand dollars

464
00:21:08,800 --> 00:21:11,880
Speaker 4: in a day, and they post things like guaranteed Sunday

465
00:21:11,880 --> 00:21:17,160
Speaker 4: football wins or NFL lock picks, and these claims are

466
00:21:17,240 --> 00:21:20,000
Speaker 4: how they're going to lure your into clicking the link

467
00:21:20,080 --> 00:21:23,560
Speaker 4: in their post. This link is supposedly going to direct

468
00:21:23,600 --> 00:21:26,439
Speaker 4: you to some secret betting site, but it's really a

469
00:21:26,480 --> 00:21:29,680
Speaker 4: fake site, or it's a cloned version of a legitimate

470
00:21:29,800 --> 00:21:33,760
Speaker 4: betting site. Think a URL that's spelled slightly different than

471
00:21:33,840 --> 00:21:37,560
Speaker 4: the real site is spelled. The games on these sites

472
00:21:37,640 --> 00:21:40,480
Speaker 4: are usually rigs, so you have no chance of winning,

473
00:21:40,480 --> 00:21:42,639
Speaker 4: and even if you do win, the site won't allow

474
00:21:42,680 --> 00:21:45,480
Speaker 4: you to withdraw your winnings. Not only are you going

475
00:21:45,560 --> 00:21:47,840
Speaker 4: to lose the money you deposited into the site, but

476
00:21:47,880 --> 00:21:52,000
Speaker 4: the scammers now have your personal financial information. To either

477
00:21:52,119 --> 00:21:55,800
Speaker 4: use themselves or they'll sell it on the dark web. Now,

478
00:21:55,800 --> 00:21:58,120
Speaker 4: if you want to try your luck, make sure you're

479
00:21:58,200 --> 00:22:01,680
Speaker 4: using a legitimate betting web site and check it out

480
00:22:01,720 --> 00:22:03,680
Speaker 4: first at BBB dot org.

481
00:22:04,600 --> 00:22:06,560
Speaker 2: That's great that you track those types of sites. I

482
00:22:06,560 --> 00:22:09,720
Speaker 2: didn't know that that was the gambling sites was something

483
00:22:09,760 --> 00:22:10,760
Speaker 2: that's has that always been there.

484
00:22:10,760 --> 00:22:11,919
Speaker 3: Has BBB always tracked that.

485
00:22:13,640 --> 00:22:16,160
Speaker 4: Wherever the scams are, we're tracking it, and we track

486
00:22:16,280 --> 00:22:20,200
Speaker 4: legitimate businesses across all industries and the ones that are

487
00:22:20,200 --> 00:22:22,080
Speaker 4: causing people headache and heartache.

488
00:22:22,359 --> 00:22:25,439
Speaker 1: All right, Josia, You've also got some updates on passport

489
00:22:25,520 --> 00:22:27,440
Speaker 1: scams and timeshare scams.

490
00:22:28,400 --> 00:22:31,960
Speaker 4: Right, So you got this big trip trip next month,

491
00:22:32,160 --> 00:22:35,440
Speaker 4: and you just realized that your passport is going to expire.

492
00:22:36,040 --> 00:22:38,199
Speaker 4: So you go online to find a solution, and you

493
00:22:38,280 --> 00:22:42,120
Speaker 4: come across a website that promises to expedite your renewal

494
00:22:42,200 --> 00:22:47,120
Speaker 4: passport for a fee. Unfortunately, this is not your solution.

495
00:22:47,280 --> 00:22:49,840
Speaker 4: It's going to be your nightmare because this scam can

496
00:22:49,920 --> 00:22:53,720
Speaker 4: cost you hundreds of dollars, not to mention possibly having

497
00:22:53,760 --> 00:22:58,000
Speaker 4: to cancel your trip. These fake passport sites are designed

498
00:22:58,000 --> 00:23:00,919
Speaker 4: to look exactly like the official the US Department of

499
00:23:00,960 --> 00:23:05,960
Speaker 4: state site, which is travel dot state dot govgov. That's important,

500
00:23:06,760 --> 00:23:09,800
Speaker 4: and these guys are counting on your desperation to keep

501
00:23:09,840 --> 00:23:13,440
Speaker 4: you from thinking clearly. You could end up paying for

502
00:23:13,440 --> 00:23:16,119
Speaker 4: forms that you can get for free on the government site,

503
00:23:16,160 --> 00:23:19,440
Speaker 4: and in the process you'll also be giving up sensitive

504
00:23:19,480 --> 00:23:23,320
Speaker 4: information like your Social Security number. If you need an

505
00:23:23,320 --> 00:23:26,359
Speaker 4: expedited passport, there are steps you can take that you

506
00:23:26,440 --> 00:23:30,400
Speaker 4: can only do it through official channels. You can pay

507
00:23:30,440 --> 00:23:34,240
Speaker 4: for expedited processing by mailing in your paperwork and fees,

508
00:23:34,880 --> 00:23:37,040
Speaker 4: or if this is a really close window, you can

509
00:23:37,080 --> 00:23:39,679
Speaker 4: go to a passport agency. And the closest ones to

510
00:23:39,760 --> 00:23:43,119
Speaker 4: us right now are Chicago and Detroit, although there is

511
00:23:43,160 --> 00:23:45,840
Speaker 4: will be one opening up in Cincinnati next year, so

512
00:23:45,920 --> 00:23:50,639
Speaker 4: that's good news. And the timeshare scams you mentioned, you

513
00:23:50,680 --> 00:23:55,520
Speaker 4: know people have gotten involved in time shares. Many of

514
00:23:55,560 --> 00:23:58,080
Speaker 4: them are just fine and they are enjoying them, but

515
00:23:58,119 --> 00:24:00,280
Speaker 4: there are a lot of people that are just over

516
00:24:00,320 --> 00:24:03,480
Speaker 4: their time shares. The fees are piling up. You don't

517
00:24:03,560 --> 00:24:06,200
Speaker 4: use it, you just want out. Then you get a

518
00:24:06,200 --> 00:24:09,280
Speaker 4: call or you see an ad online for timeshare legal

519
00:24:09,320 --> 00:24:13,439
Speaker 4: consulting or an exit company and they say they have

520
00:24:13,520 --> 00:24:16,440
Speaker 4: a team of lawyers on staff, and they've helped thousands

521
00:24:16,440 --> 00:24:19,919
Speaker 4: of people exit their timeshare. That's all part of the scam.

522
00:24:19,960 --> 00:24:22,840
Speaker 4: To get you to trust them. They'll demand a huge

523
00:24:22,920 --> 00:24:26,440
Speaker 4: upfront fee, claiming it's for legal services, filing fees, or

524
00:24:26,480 --> 00:24:30,880
Speaker 4: even to guarantee your exit, and they'll use high pressure tactics,

525
00:24:30,880 --> 00:24:33,200
Speaker 4: of course, claiming you have to sign up right now

526
00:24:33,240 --> 00:24:36,080
Speaker 4: because of a limited time deal, or maybe there's an

527
00:24:36,160 --> 00:24:39,679
Speaker 4: upcoming change in the law. According to them, after you

528
00:24:39,800 --> 00:24:43,040
Speaker 4: pay up, they're going to stop returning your calls, and

529
00:24:43,280 --> 00:24:46,399
Speaker 4: all those lawyers you were told about are nowhere to

530
00:24:46,400 --> 00:24:49,720
Speaker 4: be found. They've got your money and probably pass your

531
00:24:49,800 --> 00:24:53,280
Speaker 4: timeshare onto a broker. You are still the owner of

532
00:24:53,280 --> 00:24:56,320
Speaker 4: that time share, You're still responsible for all the fees,

533
00:24:56,400 --> 00:24:59,399
Speaker 4: and now you're stuck waiting to see if the broker

534
00:24:59,440 --> 00:25:02,680
Speaker 4: finds a bus, which could be years if they ever do.

535
00:25:04,200 --> 00:25:06,359
Speaker 1: All right, Joe Cial, I'm sure you and your team

536
00:25:06,880 --> 00:25:11,840
Speaker 1: monitor reputable companies versus questionable companies, and I hear these

537
00:25:11,880 --> 00:25:15,240
Speaker 1: timeshare ads quite often on the radio. Are you able

538
00:25:15,280 --> 00:25:19,640
Speaker 1: to name specific companies? Maybe they don't ever are there

539
00:25:19,680 --> 00:25:23,399
Speaker 1: specific companies out there that you already know, Hey, watch

540
00:25:23,400 --> 00:25:27,080
Speaker 1: out for that company, Do not contact them.

541
00:25:27,359 --> 00:25:30,679
Speaker 4: There are specific companies that BBB is aware of, but

542
00:25:31,240 --> 00:25:34,440
Speaker 4: you as the consumer, need to go to our website

543
00:25:35,280 --> 00:25:38,520
Speaker 4: and check the company that you are considering doing business with,

544
00:25:39,240 --> 00:25:41,480
Speaker 4: and the report will be there that this is either

545
00:25:41,560 --> 00:25:43,960
Speaker 4: a company that you can trust or it's a company

546
00:25:43,960 --> 00:25:45,280
Speaker 4: that you should stay away from.

547
00:25:45,760 --> 00:25:47,760
Speaker 3: So they want to change the subjects here a little bit.

548
00:25:47,920 --> 00:25:50,320
Speaker 2: You also have mentioned in the past social media account

549
00:25:50,400 --> 00:25:52,880
Speaker 2: takeovers in the ways that your life can be dominated

550
00:25:52,880 --> 00:25:55,880
Speaker 2: if somebody gets ahold of your password or hacks into

551
00:25:55,880 --> 00:25:57,639
Speaker 2: your account, and how does this work and how can

552
00:25:57,680 --> 00:25:59,280
Speaker 2: we protect ourselves from these kinds of things.

553
00:25:59,800 --> 00:26:02,120
Speaker 4: Well, well, one of the prime targets of a scammer

554
00:26:02,320 --> 00:26:05,520
Speaker 4: is to get access to your social media account log

555
00:26:05,600 --> 00:26:09,560
Speaker 4: in information. If they have that information, they can log

556
00:26:09,600 --> 00:26:13,560
Speaker 4: into your social media account and impersonate you. Once they're in,

557
00:26:13,920 --> 00:26:17,560
Speaker 4: they could message your family and friends, usually asking for

558
00:26:17,680 --> 00:26:21,040
Speaker 4: money in some fashion. Maybe they will claim that you've

559
00:26:21,040 --> 00:26:24,960
Speaker 4: had an emergency. In one case, a man reported that

560
00:26:25,000 --> 00:26:28,119
Speaker 4: he saw his friend listed his car for sale on Facebook.

561
00:26:28,960 --> 00:26:32,159
Speaker 4: He then went to message his friend about what, you know,

562
00:26:32,200 --> 00:26:33,920
Speaker 4: how much is it going to cost for your car?

563
00:26:34,440 --> 00:26:37,080
Speaker 4: And the scammer who had taken over the account said

564
00:26:37,119 --> 00:26:42,080
Speaker 4: he would only accept cryptocurrency, So the man got suspicious

565
00:26:42,119 --> 00:26:44,680
Speaker 4: and called his friend, who knew nothing about it, didn't

566
00:26:44,720 --> 00:26:47,520
Speaker 4: have a car for sale, and he realized that he

567
00:26:47,920 --> 00:26:52,000
Speaker 4: couldn't log into his Facebook account. His account had been hijacked.

568
00:26:52,960 --> 00:26:56,119
Speaker 4: So losing access to your account, all your pictures, and

569
00:26:56,160 --> 00:26:59,680
Speaker 4: your contacts is bad enough, but it's even worse if

570
00:26:59,680 --> 00:27:02,320
Speaker 4: somebody how do you know, falls for the scam and

571
00:27:02,359 --> 00:27:06,600
Speaker 4: sends these crooks money. To protect yourself and your family

572
00:27:06,640 --> 00:27:09,800
Speaker 4: and friends, make sure you use a strong password. I

573
00:27:09,880 --> 00:27:14,360
Speaker 4: cannot emphasize that enough, and turn on multi factor authentication.

574
00:27:15,440 --> 00:27:18,520
Speaker 4: And if a friend suddenly messages you on social media

575
00:27:18,600 --> 00:27:23,040
Speaker 4: asking for money, either directly or indirectly, be careful because

576
00:27:23,160 --> 00:27:26,159
Speaker 4: it might not be your friend at all.

577
00:27:26,400 --> 00:27:26,880
Speaker 3: Jocill.

578
00:27:27,000 --> 00:27:30,439
Speaker 1: This impersonation scam actually happened. You know. My wife and

579
00:27:30,440 --> 00:27:34,400
Speaker 1: I didn't get scammed, but somebody thought they were renting

580
00:27:34,440 --> 00:27:38,080
Speaker 1: our condo and actually sent money to someone, only to

581
00:27:38,119 --> 00:27:40,320
Speaker 1: find out that the whole thing was faked. They didn't

582
00:27:40,320 --> 00:27:43,960
Speaker 1: impersonate our account, but they created an account to try

583
00:27:44,000 --> 00:27:46,600
Speaker 1: to rent our condo out to somebody, and thankfully a

584
00:27:46,680 --> 00:27:49,320
Speaker 1: neighbor you know, discovered what was going on. So this

585
00:27:49,359 --> 00:27:52,320
Speaker 1: is a real thing out there, and we really appreciate

586
00:27:52,359 --> 00:27:54,399
Speaker 1: you coming on tonight to share some of this stuff

587
00:27:54,440 --> 00:27:56,959
Speaker 1: with us. You're listening to Simply Money presented by all

588
00:27:56,960 --> 00:28:06,199
Speaker 1: Worth Financial on fifty five KRCD talkstation. You're listening to

589
00:28:06,200 --> 00:28:09,200
Speaker 1: Simply Money presented by all Worth Financial. I'm Bob Sponsorer

590
00:28:09,240 --> 00:28:12,160
Speaker 1: along with Brian James. Do you have a financial question

591
00:28:12,240 --> 00:28:14,600
Speaker 1: you'd like for us to answer. There's a big fat

592
00:28:14,640 --> 00:28:16,879
Speaker 1: red button you can click while you're listening to the

593
00:28:16,920 --> 00:28:20,520
Speaker 1: show right on the iHeart app. Simply record your question

594
00:28:20,720 --> 00:28:25,240
Speaker 1: and it will and always comes straight to us. All right, Brian,

595
00:28:25,320 --> 00:28:28,160
Speaker 1: Let's lead things off tonight with Tom and Hyde Park,

596
00:28:28,240 --> 00:28:32,080
Speaker 1: who says, I know my portfolio is too concentrated in tech,

597
00:28:33,359 --> 00:28:37,280
Speaker 1: especially Navidias stock. Should I be looking at hedging strategies

598
00:28:37,400 --> 00:28:40,760
Speaker 1: or just start selling now even if the tax bill

599
00:28:40,880 --> 00:28:41,520
Speaker 1: is painful.

600
00:28:41,840 --> 00:28:43,080
Speaker 3: Well, congratulations, Tom.

601
00:28:43,440 --> 00:28:45,360
Speaker 2: You put yourself in a good solid position with some

602
00:28:45,400 --> 00:28:47,760
Speaker 2: of these strong technology positions that have been driving the

603
00:28:47,760 --> 00:28:50,280
Speaker 2: market for the better part of several decades. But also

604
00:28:50,320 --> 00:28:52,720
Speaker 2: glad to hear you're willing to maybe step outside the

605
00:28:52,720 --> 00:28:55,600
Speaker 2: casino with some coins left in your little bucket. So

606
00:28:55,680 --> 00:28:57,160
Speaker 2: let's talk about how you can get out of this.

607
00:28:57,400 --> 00:28:59,480
Speaker 2: First thing would be obviously you can simply sell it

608
00:29:00,040 --> 00:29:02,400
Speaker 2: and you can spread it over time. Maybe it's a

609
00:29:02,440 --> 00:29:04,920
Speaker 2: situation where you could you buy enough time to sell

610
00:29:04,960 --> 00:29:07,800
Speaker 2: a little bit in the current tax year and move

611
00:29:07,840 --> 00:29:09,120
Speaker 2: some into the second tax year.

612
00:29:09,160 --> 00:29:11,160
Speaker 3: That's one option just to think about.

613
00:29:11,360 --> 00:29:13,520
Speaker 2: Another would be you can you can potentially look at

614
00:29:13,560 --> 00:29:16,040
Speaker 2: it using something called an exchange traded fund. If this position,

615
00:29:16,120 --> 00:29:17,960
Speaker 2: and you mentioned in video, if that position is over

616
00:29:18,000 --> 00:29:20,880
Speaker 2: a million dollars, then you may very well be able

617
00:29:20,880 --> 00:29:23,920
Speaker 2: to put that into an exchange fund and in response

618
00:29:24,040 --> 00:29:27,360
Speaker 2: receive a diversified portfolio of other people's stocks who have

619
00:29:27,400 --> 00:29:30,720
Speaker 2: the same problem. So you're basically committing your overly large

620
00:29:30,760 --> 00:29:33,720
Speaker 2: position in exchange for a portion of everyone else's overly

621
00:29:33,800 --> 00:29:36,240
Speaker 2: large position. That is not a taxable event. Lots of

622
00:29:36,280 --> 00:29:38,760
Speaker 2: moving parts to that, though. You can also hedge with options.

623
00:29:38,800 --> 00:29:41,400
Speaker 2: You can do something called collars or protective puts, which

624
00:29:41,440 --> 00:29:44,560
Speaker 2: is basically putting a floor and a ceiling above your

625
00:29:44,720 --> 00:29:46,400
Speaker 2: position so that it can't hurt you too much if

626
00:29:46,400 --> 00:29:49,280
Speaker 2: it goes the wrong direction. And then finally, something else

627
00:29:49,320 --> 00:29:51,520
Speaker 2: to look for is if there are any positions elsewhere

628
00:29:51,560 --> 00:29:54,480
Speaker 2: in your portfolio that are sitting at losses, you might

629
00:29:54,560 --> 00:29:56,800
Speaker 2: sell those at the same time, those losses will net

630
00:29:56,840 --> 00:29:59,800
Speaker 2: out against the big gain you have in your technology portfolio.

631
00:30:00,000 --> 00:30:01,840
Speaker 2: Perhaps there's some out there that you can take advantage of.

632
00:30:02,760 --> 00:30:07,000
Speaker 2: Rachel and Fort Mitchell says she's invested interested in charitable

633
00:30:07,000 --> 00:30:09,520
Speaker 2: remainder trust, but she's wondering whether they really provide an

634
00:30:09,520 --> 00:30:11,600
Speaker 2: income as well as a benefit for charity or is

635
00:30:11,640 --> 00:30:14,520
Speaker 2: this just a tax gimmick that CPAs and lawyers try

636
00:30:14,520 --> 00:30:14,959
Speaker 2: to sell us.

637
00:30:15,000 --> 00:30:17,040
Speaker 3: Bob, do you think, well, it's.

638
00:30:16,880 --> 00:30:19,760
Speaker 1: Definitely not a tax gimmick, Rachel. I mean, these things

639
00:30:19,800 --> 00:30:22,520
Speaker 1: are real. They've been used for years and years and years,

640
00:30:22,560 --> 00:30:26,480
Speaker 1: and in the right situation they work remarkably well. There's

641
00:30:26,520 --> 00:30:28,959
Speaker 1: just a lot of options and a lot of moving

642
00:30:29,040 --> 00:30:31,800
Speaker 1: parts with these things. So one thing to keep in

643
00:30:31,840 --> 00:30:34,240
Speaker 1: mind is when you do give that stock away, the

644
00:30:34,280 --> 00:30:37,720
Speaker 1: benefit is you avoid all the capital gains taxes on

645
00:30:37,840 --> 00:30:40,640
Speaker 1: the stock that you gifted into that trust and it

646
00:30:40,760 --> 00:30:44,719
Speaker 1: leaves your taxable estate. It is an irrevocable gift to charity,

647
00:30:44,760 --> 00:30:47,680
Speaker 1: and the charity will will receive what's left in that

648
00:30:47,760 --> 00:30:51,080
Speaker 1: trust after you and your husband pass away. The key

649
00:30:51,200 --> 00:30:54,160
Speaker 1: is figuring out how much income you want or need

650
00:30:54,160 --> 00:30:56,960
Speaker 1: to retain and for how long, and you can dial

651
00:30:57,040 --> 00:30:59,480
Speaker 1: that period up and down, you know, based on a

652
00:30:59,480 --> 00:31:02,800
Speaker 1: period of years or over both lifetimes. And then the

653
00:31:02,880 --> 00:31:06,520
Speaker 1: tax deduction for doing all this varies based on how

654
00:31:06,600 --> 00:31:09,000
Speaker 1: much income you're going to retain during your life. So

655
00:31:09,040 --> 00:31:12,200
Speaker 1: it's definitely a situation where you want to sit down

656
00:31:12,320 --> 00:31:16,240
Speaker 1: with a good fiduciary financial advisor in CPA and map

657
00:31:16,320 --> 00:31:19,320
Speaker 1: this out to make sure you customize this if you're

658
00:31:19,320 --> 00:31:22,760
Speaker 1: going to utilize this strategy for your and your husband's

659
00:31:22,920 --> 00:31:25,120
Speaker 1: you know, needs and goals down the road. But it's

660
00:31:25,160 --> 00:31:28,080
Speaker 1: not a gimmick. These things are real in the right situation,

661
00:31:28,480 --> 00:31:31,360
Speaker 1: they work very very well, all right. Brian in Blue

662
00:31:31,440 --> 00:31:34,000
Speaker 1: Ash says, most of our net worth is an investment

663
00:31:34,160 --> 00:31:38,240
Speaker 1: real estate. How do we create liquidity for estate taxes

664
00:31:38,600 --> 00:31:41,960
Speaker 1: so our heirs don't have to sell property under pressure,

665
00:31:42,320 --> 00:31:44,320
Speaker 1: you know, presumably after we pass away.

666
00:31:44,760 --> 00:31:46,240
Speaker 2: You know, this reminds me of a story that comes

667
00:31:46,320 --> 00:31:49,560
Speaker 2: up all the time when we talk about a state planning. So, uh,

668
00:31:49,560 --> 00:31:51,560
Speaker 2: I don't know if you remember, Bob, you remember Joe

669
00:31:51,680 --> 00:31:53,480
Speaker 2: Robbie Stadium where the Dolphins used to play.

670
00:31:53,920 --> 00:31:55,120
Speaker 3: Yeah, the Robbie family.

671
00:31:55,440 --> 00:31:57,560
Speaker 2: Joe passed away without a will and did not have

672
00:31:57,600 --> 00:31:59,680
Speaker 2: a state plans in place that team in that stadium

673
00:31:59,680 --> 00:32:02,280
Speaker 2: where we're with an awful lot of money, and but

674
00:32:02,400 --> 00:32:04,560
Speaker 2: you can't carve out a chunk of a team, you know,

675
00:32:04,920 --> 00:32:06,920
Speaker 2: or a building or whatever and pay a state taxes.

676
00:32:06,920 --> 00:32:09,000
Speaker 2: So they were basically forced to liquidate the team, and

677
00:32:09,040 --> 00:32:09,800
Speaker 2: hence there is no Joe.

678
00:32:10,000 --> 00:32:12,640
Speaker 1: I also remember the Jim Carrey movie where they stole

679
00:32:12,680 --> 00:32:13,200
Speaker 1: the dolphin.

680
00:32:13,280 --> 00:32:15,880
Speaker 2: Remember that that was Yes, that was not related at

681
00:32:15,920 --> 00:32:17,680
Speaker 2: all to a state planning. But I'm glad to see

682
00:32:17,720 --> 00:32:20,360
Speaker 2: you've had a spark of a memory, Bob. That's that's

683
00:32:20,360 --> 00:32:23,360
Speaker 2: something your advanced age. That's something to be proud of

684
00:32:23,360 --> 00:32:28,720
Speaker 2: and celebrate. Big moment for Bob. The reason I brought

685
00:32:28,760 --> 00:32:29,440
Speaker 2: that up.

686
00:32:30,320 --> 00:32:33,560
Speaker 3: Is because because I wanted to make fun of Bob.

687
00:32:33,600 --> 00:32:36,920
Speaker 2: Anyway, No, so this is a family didn't do any

688
00:32:36,960 --> 00:32:39,600
Speaker 2: planning and they were forced to sell their famili's big asset.

689
00:32:39,800 --> 00:32:42,200
Speaker 3: And that's problem. Real estate is ill liquid wealth.

690
00:32:42,520 --> 00:32:44,960
Speaker 2: So your heirs might inherit that valuable property, but Uncle

691
00:32:44,960 --> 00:32:47,280
Speaker 2: Sam's gonna come knocking for a state taxes within about

692
00:32:47,360 --> 00:32:49,600
Speaker 2: nine months, and that money has got to come from somewhere.

693
00:32:49,720 --> 00:32:52,080
Speaker 2: You might be able to borrow against it. You might

694
00:32:52,120 --> 00:32:54,920
Speaker 2: be able to, you know, sell off some parcels of it,

695
00:32:54,920 --> 00:32:57,280
Speaker 2: who knows, But regardless, the taxes are coming. Do so

696
00:32:57,320 --> 00:33:00,480
Speaker 2: what you might consider. There are solutions out there. Properly

697
00:33:00,480 --> 00:33:03,480
Speaker 2: it's structured. A life insurance policy held in an irrevocable

698
00:33:03,480 --> 00:33:05,840
Speaker 2: life insurance trust makes money drop out of the sky.

699
00:33:05,920 --> 00:33:08,040
Speaker 2: Obviously you have to be insurable and healthy enough to

700
00:33:08,040 --> 00:33:10,880
Speaker 2: do this, but that can cause or that can cover

701
00:33:10,920 --> 00:33:14,800
Speaker 2: those kind of needs. Entity planning meaning what entity owns

702
00:33:14,840 --> 00:33:16,920
Speaker 2: this property. It can be held by an LLC or

703
00:33:16,960 --> 00:33:20,080
Speaker 2: a partnership. You can and you can use take advantage

704
00:33:20,120 --> 00:33:23,000
Speaker 2: of minority interest discounts to reduce the taxable estate value.

705
00:33:23,320 --> 00:33:26,440
Speaker 2: You can also look at gifting strategies during life, using

706
00:33:26,520 --> 00:33:29,640
Speaker 2: the annual gift tax exclusion to reduce what's left to

707
00:33:29,680 --> 00:33:32,160
Speaker 2: be taxed later. Charitable giving, strategic borrowing. There are a

708
00:33:32,240 --> 00:33:34,760
Speaker 2: number of things that you can do in this particular case. Okay,

709
00:33:34,760 --> 00:33:36,120
Speaker 2: we're going to hog a bunch of time from our

710
00:33:36,160 --> 00:33:38,320
Speaker 2: other questionners, so we're going to move on to Joseph

711
00:33:38,400 --> 00:33:42,000
Speaker 2: and Marymont. Joseph has some birds in the nests who

712
00:33:42,000 --> 00:33:43,560
Speaker 2: don't get along very well, and.

713
00:33:43,440 --> 00:33:44,400
Speaker 3: He's worried about that.

714
00:33:44,680 --> 00:33:47,280
Speaker 2: Their a state actually could tear the family apart based

715
00:33:47,320 --> 00:33:50,520
Speaker 2: on everybody's own perception of what they're going to get

716
00:33:50,520 --> 00:33:52,080
Speaker 2: out of this. So how do they build a plan, Bob,

717
00:33:52,120 --> 00:33:53,720
Speaker 2: that keeps money from becoming a wedge.

718
00:33:54,560 --> 00:33:57,040
Speaker 1: Well, when I think about your question, Joseph, you know

719
00:33:57,080 --> 00:33:58,880
Speaker 1: the two things that come to mind is if you

720
00:33:58,960 --> 00:34:01,560
Speaker 1: own a business and you're trying to figure out who's

721
00:34:01,560 --> 00:34:04,080
Speaker 1: going to take over that business, or you own a

722
00:34:04,160 --> 00:34:08,360
Speaker 1: vacation property property that in you know, a perfect world,

723
00:34:08,360 --> 00:34:10,239
Speaker 1: we say, well, we're going to leave this to our

724
00:34:10,360 --> 00:34:13,480
Speaker 1: kids and they'll enjoy it with the grandkids, you know,

725
00:34:13,600 --> 00:34:18,200
Speaker 1: on generation after generation, and if the kids don't get along,

726
00:34:19,120 --> 00:34:21,560
Speaker 1: you really got to sit down and figure out how

727
00:34:21,560 --> 00:34:25,359
Speaker 1: to divide these assets up ahead of time. So you know,

728
00:34:25,520 --> 00:34:28,920
Speaker 1: in a business situation, let's face it, usually one kid

729
00:34:29,040 --> 00:34:32,160
Speaker 1: or the most two is really interested in being involved

730
00:34:32,520 --> 00:34:35,640
Speaker 1: in the business and others aren't because they have other interests.

731
00:34:36,239 --> 00:34:39,840
Speaker 1: Communication up front, and again it doesn't have to be fair,

732
00:34:40,320 --> 00:34:43,080
Speaker 1: but you've got to communicate to to try to avoid

733
00:34:43,160 --> 00:34:46,120
Speaker 1: some of these this family discord down the road. Same

734
00:34:46,200 --> 00:34:50,600
Speaker 1: thing with these vacation properties. Don't just pass it down

735
00:34:50,640 --> 00:34:54,000
Speaker 1: and hope it all works out, because oftentimes it creates

736
00:34:54,040 --> 00:34:56,799
Speaker 1: a big problem. All Right, coming up next, I've got

737
00:34:56,840 --> 00:34:59,360
Speaker 1: my two cents on how to plan ahead for some

738
00:34:59,440 --> 00:35:02,160
Speaker 1: of these big ticket items that we all want to

739
00:35:02,200 --> 00:35:05,080
Speaker 1: spend during our retirement years. You're listening to Simply Money

740
00:35:05,239 --> 00:35:08,360
Speaker 1: presented by all Worth Financial on fifty five KRC, the

741
00:35:08,680 --> 00:35:15,520
Speaker 1: talk station. You're listening to Simply Money presented by all

742
00:35:15,520 --> 00:35:19,920
Speaker 1: Worth Financial on Bob Sponseller along with Brian James. All Right, Brian,

743
00:35:20,000 --> 00:35:23,680
Speaker 1: we just went through a whole laundry list of lessons

744
00:35:23,719 --> 00:35:26,479
Speaker 1: here on how to plan to enter retirement and plan

745
00:35:26,560 --> 00:35:28,920
Speaker 1: out spending and all this. So I'm just gonna share

746
00:35:28,960 --> 00:35:31,799
Speaker 1: one of my pet peeves that comes up from time

747
00:35:31,840 --> 00:35:34,520
Speaker 1: to time, and I'm talking about and this is really

748
00:35:34,600 --> 00:35:37,319
Speaker 1: as we talked about before this this has nothing to

749
00:35:37,360 --> 00:35:40,080
Speaker 1: do with your net worth. It has to do with

750
00:35:40,160 --> 00:35:42,760
Speaker 1: what you plan to spend. And here's what I'm talking about.

751
00:35:44,200 --> 00:35:47,680
Speaker 1: For folks that have their retirement plan in place and

752
00:35:47,719 --> 00:35:49,920
Speaker 1: they have a certain amount of income they want to

753
00:35:50,400 --> 00:35:52,759
Speaker 1: you know, have coming in every month, and we've run

754
00:35:52,800 --> 00:35:55,920
Speaker 1: the numbers and we know that it's gonna work, but

755
00:35:55,960 --> 00:35:58,760
Speaker 1: there's not a ton of margin for air in the plan.

756
00:35:59,120 --> 00:36:01,160
Speaker 1: In other words, we got to be disciplined and follow

757
00:36:01,200 --> 00:36:04,319
Speaker 1: the plan in order for it to work. What what

758
00:36:04,760 --> 00:36:07,480
Speaker 1: invariably happens from time to time is I get this

759
00:36:07,640 --> 00:36:11,400
Speaker 1: email or phone call that says, well, we've always wanted

760
00:36:11,400 --> 00:36:14,280
Speaker 1: to take the kids on a cruise and the grandkids

761
00:36:14,320 --> 00:36:16,800
Speaker 1: and all that, and Bob, I need you to pull

762
00:36:17,040 --> 00:36:20,480
Speaker 1: fifty grand, sixty grand and send it to us. And

763
00:36:21,280 --> 00:36:23,799
Speaker 1: you know, when people do that, you know, just on

764
00:36:23,840 --> 00:36:26,800
Speaker 1: a whim, and they don't factor it into their plan,

765
00:36:26,960 --> 00:36:30,000
Speaker 1: and they don't communicate it with their advisor in advance,

766
00:36:30,680 --> 00:36:33,359
Speaker 1: you leave some opportunities, you know, on the table. In

767
00:36:33,440 --> 00:36:35,640
Speaker 1: my opinion, number one, we want to make sure the

768
00:36:35,719 --> 00:36:38,239
Speaker 1: plan is going to work if you do these kind

769
00:36:38,280 --> 00:36:42,319
Speaker 1: of things. And then second, you know, especially as the

770
00:36:42,400 --> 00:36:45,480
Speaker 1: dollar amounts go up. I gave the example of a cruise,

771
00:36:45,520 --> 00:36:47,760
Speaker 1: but you know, let's say a two hundred thousand dollars

772
00:36:47,800 --> 00:36:51,000
Speaker 1: home remodel. You want to give your advisor and our

773
00:36:51,040 --> 00:36:53,200
Speaker 1: team a chance to get some of this money out

774
00:36:53,239 --> 00:36:57,520
Speaker 1: of harm's way to avoid market volatility. So I'm real

775
00:36:57,600 --> 00:37:01,400
Speaker 1: big on communication when it comes to these big ticket items.

776
00:37:01,800 --> 00:37:04,320
Speaker 1: Don't just spring it on us through an email or

777
00:37:04,360 --> 00:37:07,839
Speaker 1: a phone call, because that really can throw the whole

778
00:37:07,880 --> 00:37:10,040
Speaker 1: plan out a whack, and not in a good way.

779
00:37:10,200 --> 00:37:12,279
Speaker 3: Yeah, sometimes there's no choice with this, right.

780
00:37:12,320 --> 00:37:14,480
Speaker 2: Life happens and life intervenes and we just don't get

781
00:37:14,480 --> 00:37:16,759
Speaker 2: the chance to plan. But but Bobby, I reckonize what

782
00:37:16,760 --> 00:37:19,160
Speaker 2: you're talking about. These are situations where maybe we've talked

783
00:37:19,160 --> 00:37:21,279
Speaker 2: about maybe we're gonna do this for years. I don't know,

784
00:37:21,320 --> 00:37:23,320
Speaker 2: we're gonna decide. Maybe it's a low priority goal. We

785
00:37:23,480 --> 00:37:25,520
Speaker 2: just got it on the back burner, and then suddenly,

786
00:37:25,560 --> 00:37:28,360
Speaker 2: over a weekend it launches itself to the front burner,

787
00:37:28,640 --> 00:37:30,640
Speaker 2: and on Monday, we're scrambling to cut a check as

788
00:37:30,640 --> 00:37:32,920
Speaker 2: soon as possible because a commitment has been made somewhere.

789
00:37:33,560 --> 00:37:35,600
Speaker 2: This is this, This is our client's money, and it's

790
00:37:35,640 --> 00:37:37,759
Speaker 2: we can and will and should be spent the way

791
00:37:37,760 --> 00:37:39,800
Speaker 2: that they want it. It doesn't matter we're We're simply

792
00:37:39,840 --> 00:37:42,360
Speaker 2: pointing out that we lose the chance to be efficient

793
00:37:42,520 --> 00:37:45,080
Speaker 2: and as well thought out as possible if there's not

794
00:37:45,239 --> 00:37:47,279
Speaker 2: enough time to kind of plan things out.

795
00:37:47,440 --> 00:37:47,600
Speaker 4: You know.

796
00:37:47,719 --> 00:37:51,280
Speaker 1: Maybe well yeah, but Brian, you gave, in my opinion,

797
00:37:51,320 --> 00:37:54,160
Speaker 1: the perfect example of how this is supposed to work

798
00:37:54,200 --> 00:37:57,440
Speaker 1: in the earlier segment where you you described a situation

799
00:37:57,600 --> 00:38:00,359
Speaker 1: where you were sitting down with your clients. It's saying, hey,

800
00:38:00,440 --> 00:38:03,600
Speaker 1: let's dream a little bit. Let's throw everything into the

801
00:38:03,640 --> 00:38:06,560
Speaker 1: plan that we might want to do, from cruises to

802
00:38:06,760 --> 00:38:10,200
Speaker 1: vehicles to Homer model to vacations to RV and let's

803
00:38:10,239 --> 00:38:12,600
Speaker 1: make sure the plan's going to work in advance. That's

804
00:38:12,680 --> 00:38:17,080
Speaker 1: exactly what I'm talking about. Unfortunately, we run into some

805
00:38:17,200 --> 00:38:20,800
Speaker 1: people that won't have those kind of discussions with their advisor.

806
00:38:20,880 --> 00:38:22,520
Speaker 1: That's really what I'm talking about here.

807
00:38:22,800 --> 00:38:23,000
Speaker 3: Yep.

808
00:38:23,040 --> 00:38:24,879
Speaker 2: I think you're right, and it's just if you're gonna

809
00:38:24,880 --> 00:38:27,279
Speaker 2: have an advisor in the mix and then everything is

810
00:38:27,320 --> 00:38:30,040
Speaker 2: on the table, Otherwise you're not getting your money's worth.

811
00:38:30,960 --> 00:38:33,520
Speaker 1: All right, thanks for listening. You've been listening to Simply Money,

812
00:38:33,600 --> 00:38:37,440
Speaker 1: presented by all Worth Financial on fifty five KRC, the

813
00:38:37,840 --> 00:38:38,400
Speaker 1: talk station