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Speaker 1: Always involve a pay cut invest your time. Yes, sometimes

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Speaker 1: it involves a pay cut to get moving and then move.

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Speaker 2: Up and invested in your future.

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Speaker 1: But I would want a path to make more than

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Speaker 1: I made, not less than I made. Dave Ramsey, There's

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Speaker 1: a lot of people need help in this world. I

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Speaker 1: want you to get clear. I want you to spend

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Speaker 1: some time very carefully going through what are your talents,

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Speaker 1: what are your passions for your skills? You know, what

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Speaker 1: is it you value?

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Speaker 3: Weekdays at seven on fifty five KRZ the talk station.

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Speaker 4: Tonight a preview of a key inflation report and a

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Speaker 4: discussion on whether you should be more invested in stocks

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Speaker 4: than maybe you are. Right now, you're listening to Simply Money,

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Speaker 4: presented by all Worth Financial on Bob Sponsller Alone with

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Speaker 4: Brian James. Yes, it's Monday, which means we're going to

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Speaker 4: discuss inflation and the government shut down and a whole

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Speaker 4: bunch of other stuff. But there's a reason why we

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Speaker 4: love to have always Chief Investment Officer Andy Stout on

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Speaker 4: the program because he monitors a lot of stuff, including

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Speaker 4: private credit markets. And Andy, there's been some news come out,

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Speaker 4: you know, over the last couple of days.

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Speaker 5: Here on a little bit of a disturbance.

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Speaker 4: We saw it kind of rattle market someone on Friday,

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Speaker 4: what's going on in the private credit world.

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Speaker 6: Well, it's more than just the private credit world. It's

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Speaker 6: really about the private credit world leading into public credit.

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Speaker 6: And when you look at what's been going on, there's

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Speaker 6: certainly been a lot of news.

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Speaker 5: And I mean the the.

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Speaker 6: Thing people first go to is like, is this the

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Speaker 6: shoe to drop? Is this what's going to cause his

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Speaker 6: bull market to come to it? And you heard Jamie

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Speaker 6: Diamond last week, CEO JP Moore talking about, you know,

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Speaker 6: more cockroaches coming out of the woodworks, and this was

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Speaker 6: really related to the concerns surrounding a couple of banks,

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Speaker 6: the had Zions and Western Alliance where they had you know,

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Speaker 6: tens of millions of losses is tied to bank fraud

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Speaker 6: or loan fraud. Excuse me now, I say tens of millions.

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Speaker 6: That's a big number to the average person, but it's

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Speaker 6: really not that big in terms of the broad perspective

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Speaker 6: of what's going on in this the financial marketplace. So

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Speaker 6: you had two banks with a few million losses, yet

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Speaker 6: seventy four banks lost over one hundred billion last week.

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Speaker 6: We saw Zion's fall thirteen percent, a fifty million dollar

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Speaker 6: charge off. Western Alliance fell about eleven percent on related exposures.

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Speaker 6: So we had these concerns here, But then you take

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Speaker 6: a step back, that's the public word. What about the

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Speaker 6: private word? Because that's what she's asked me about. And

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Speaker 6: this did come on the heels of a couple of

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Speaker 6: stories regarding concerns from some recent bankruptcies within the private side,

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Speaker 6: and when you look at you know what's going on

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Speaker 6: there on the private market side of the world to

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Speaker 6: the private debt side of the world specifically, you're reading

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Speaker 6: some more stories, you're hearing some more analysts, and they're

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Speaker 6: talking about whether or not this is contagion, whether this

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Speaker 6: is a crisis, whether or not it's contained. So there's

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Speaker 6: a lot of this being put together and there's many

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Speaker 6: different ways that we can unpack it.

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Speaker 7: Hanny, is this something you think that that will change

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Speaker 7: the thinking on things like asset allocation, the way that

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Speaker 7: we investor do do you feel like we're still kind

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Speaker 7: of in a holding pattern to wait for more concrete

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Speaker 7: information to come out.

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Speaker 6: So right now, I would if I had to draw

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Speaker 6: a conclusion, I would say the credit market's strained, it's

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Speaker 6: not fractured. You sometimes see these sort of developments cluster

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Speaker 6: together and like I'll call it, you know, late cycles

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Speaker 6: liquidity issues where you see these weak borrowers feeling stress.

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Speaker 6: But we're not at anything where the evidence is pointing

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Speaker 6: to a broad fallout right now. It's more about contain

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Speaker 6: it's contained. I mean, I don't want to say you

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Speaker 6: know it's contained, because if you think back in two

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Speaker 6: thousand and eight, that was about the worst thing anybody

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Speaker 6: ever could have when you were talking about the financial markets.

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Speaker 6: But we haven't seen evidence yet that anything has spread

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Speaker 6: really beyond a couple of you know, random I wouldn't

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Speaker 6: say two random of bankruptcies, but there were some random

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Speaker 6: bankruptcies with Tricolor Holdings and First Brands Group. Tricolor is

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Speaker 6: a subprime auto lender. Again probably harkins to some two

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Speaker 6: thousand and eight red flags, again not making comparison to

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Speaker 6: two thousand and eight, but then he also First Brands

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Speaker 6: was an auto parts manufacturing And the question is whether

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Speaker 6: or not these one offs are really turning into a

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Speaker 6: broader theme doesn't quite yet support that. You know, for instance,

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Speaker 6: you know, Moody's one of the people who head up

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Speaker 6: the private credit department. He said, there's really no evidence

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Speaker 6: yet of a turn in the credit cycle.

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Speaker 4: You know.

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Speaker 6: He did note there were some loosening lending standards out

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Speaker 6: there and slack loan conditions, but the quality of assets

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Speaker 6: appears to be okay, and when you look at it,

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Speaker 6: just to kind of like come full circle and bring

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Speaker 6: the into some local ties here, what really provided some

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Speaker 6: peace of mind for investors last week were some earnings

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Speaker 6: from zions in Western Alliance. They are regional banks, and

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Speaker 6: so there's concerned that, you know, maybe there's something in

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Speaker 6: one of these regionals. But then fortunately we had some

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Speaker 6: regional bank's truest and also local Fifth Third come out

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Speaker 6: with lower loan loss provisions. That provided a sense of

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Speaker 6: calm for markets, because if you have these regional banks

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Speaker 6: coming out with lower loan loss provisions, that certainly suggests

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Speaker 6: that maybe it's not as bad as the knee jerk

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Speaker 6: reaction that people anticipate. And by the way, Fifth Third

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Speaker 6: Bank went through all of their like auto loans because

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Speaker 6: there was some speculation of maybe some sort of connection

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Speaker 6: to to Tricolor holdings, and they didn't find any sort

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Speaker 6: of material fraud related to missing loans or cars not

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Speaker 6: being appropriated correctly.

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Speaker 4: All right, thanks for that update. Any let's switch gears

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Speaker 4: here and let's talk about China. President Trump announced, you know,

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Speaker 4: threats of major increases in tariffs coming, you know, beginning

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Speaker 4: the second week in November. That rattle markets a bit,

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Speaker 4: and then he walked that threat back I would say

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Speaker 4: significantly late last week, and that helped markets calm down.

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Speaker 4: I think we've all kind of gotten used to how

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Speaker 4: President Trump rolls here, you know, how he deals with

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Speaker 4: negotiating on the fly through social media and interviews. Where

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Speaker 4: do we stand on all this with actual what's actually

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Speaker 4: going to happen? And when you know, as we sit

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Speaker 4: down and try to hammer something out with China, well.

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Speaker 6: It wouldn't it be a day of the week that ends?

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Speaker 6: And why if we weren't talking about trade issues?

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Speaker 5: Right? So, when we think.

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Speaker 6: About the trade relationship with China and the US, it's

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Speaker 6: certainly fractured, it's certainly contentious, and you see the stuff

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Speaker 6: in social media, Like you're saying, Bob, how you know

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Speaker 6: Trump is almost positioning things from a negotiation standpoint where

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Speaker 6: he comes in hard, backs off, and then you know

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Speaker 6: that opens the door for additional negotiations. And so what

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Speaker 6: we have this week as part of that walk back

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Speaker 6: from last week was a Treasury Secretary of Scott Descent

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Speaker 6: is going to be meeting with Chinese Vice Premier Key

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Speaker 6: later this week in Malaysia to set the stage for

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Speaker 6: the Trump g meeting Chinese President Gigi Ping, which is

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Speaker 6: got to take place on October thirty first. So they

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Speaker 6: got that meeting pretty much set and ready to go.

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Speaker 6: This is the pre meeting to that meeting with Scott Descent,

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Speaker 6: and the timing on this is really important because on

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Speaker 6: November tenth, that's when the ninety day true truth excuse

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Speaker 6: me between the two countries expires. So first of all,

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Speaker 6: I don't expect any sort of deal on November tenth.

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Speaker 5: Maybe there's another extension.

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Speaker 6: You know, without any sort of extension, you could easily

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Speaker 6: see a risk off move where you know, markets sell

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Speaker 6: off because there's going to be the threats of terrorists

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Speaker 6: back in the triple digits.

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Speaker 5: You know.

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Speaker 6: The more likely outcome is that we see a continued

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Speaker 6: move from confrontation toward cautious repair.

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Speaker 5: Got it.

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Speaker 7: So okay, let's let's move on to the shutdown then,

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Speaker 7: So so what do we think about how long this

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Speaker 7: is going to last, and what do you think the

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Speaker 7: impact is ultimately going to be here Andy.

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Speaker 6: Yeah, there's a lot of policy going on right this

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Speaker 6: over the past week and leading into this week and

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Speaker 6: probably into the coming weeks as well. So you know,

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Speaker 6: talking about the government's shutdown, Uh, there's right now not

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Speaker 6: really an end in site. I mean we've seen where

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Speaker 6: the Republicans are, you know, paying the military, which has

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Speaker 6: been kind of like what was like handcuffing them, uh

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Speaker 6: to or encourage them to make a deal. And now

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Speaker 6: that you know they're getting you know, the military paid,

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Speaker 6: you know what, that suggests they might be more willing

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Speaker 6: to live with a longer shutdown, and that puts the

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Speaker 6: onus on Democrats. So we're going to see how this

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Speaker 6: all plays out. But it doesn't seem like there's anything

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Speaker 6: too material in the near term. I know the Senate

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Speaker 6: is meaning again this week talk it over and maybe

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Speaker 6: there is a deal, Maybe there is something that comes

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Speaker 6: out of it. You know, we'll see how it plays out.

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Speaker 6: I mean, trying to predict that is you know, it's

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Speaker 6: a it's a fool's errand but what we can do

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Speaker 6: is we can see you know, how the market has

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Speaker 6: been responding to it. And when we look at how

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Speaker 6: the market has been responding to it, it's basically taken

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Speaker 6: it in stride. I mean, yes, we are not getting

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Speaker 6: some economic data that we normally get, although we will

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Speaker 6: be getting inflation data later this week, which should have

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Speaker 6: come out earlier. But that's going to be something that

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Speaker 6: is really going to be critical for the Federal Reserve

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Speaker 6: because the.

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Speaker 5: Fed is meeting.

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Speaker 6: In about a week and a half and when they meet,

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Speaker 6: if they're going to have some data, they're not going

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Speaker 6: to have the most recent job market data, that's for sure,

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Speaker 6: but what they will have is some updated inflation data. Remember,

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Speaker 6: the Fed has a dual mandate, right it's a full

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Speaker 6: employment and it's stable prices. In the prices or the inflation,

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Speaker 6: they're still elevated, but it's not as high as it

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Speaker 6: had been a few years ago. But we're not seeing

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Speaker 6: any improvement. It's really this last leg of getting back

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Speaker 6: down where the Fed wants inflation to be has really

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Speaker 6: just gone to nowhere. But yet we're starting to see

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Speaker 6: cracks in the labor market. And you had the Federal

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Speaker 6: Reserve chair Jerown pal Out last week talking about how

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Speaker 6: the labor market. You know, not much has changed since

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Speaker 6: the FED last met in September. However, it's still not strong.

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Speaker 5: And that's what they're worried about.

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Speaker 6: And that's why the markets are pricing in a rate

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Speaker 6: cut here, not just at their fed's next meeting, but

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Speaker 6: at the other meeting they have this year. So the

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Speaker 6: market's pricing in two full quarter point rate cuts at

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Speaker 6: the final two meetings of twenty twenty five.

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Speaker 4: All right, Andy, in a couple of minutes, we've got left. Obviously,

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Speaker 4: we're right smack in the middle of earning season. We

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Speaker 4: got pretty good earnings, you know, announcements out from the

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Speaker 4: major banks last week. This week we've got eighty of

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Speaker 4: the five hundred SMP companies reporting earnings, including companies like

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Speaker 4: North Northrop Grumman, General Motors, General Electric, Netflix, Tesla, AT

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Speaker 4: and t IBM and Ford. So you got a little

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Speaker 4: broader swath of the economy reporting this week. Any surprises

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Speaker 4: you know that you've seen so far in earnings and

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Speaker 4: how do you see this earning season shaping up so far?

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Speaker 6: Well, it's still very early in the earning season. I mean,

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Speaker 6: we only have fifty eight large cap companies having report

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Speaker 6: and so of far end. To your point, it's been

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Speaker 6: definitely concentrated in the financial services or you know, the

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Speaker 6: banking sector. But from a big picture perspective, we're about

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Speaker 6: where you know, we expected to be heading into earning season.

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Speaker 6: Wall Street analysts, we're expecting that earnings would see year

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Speaker 6: of year growth around seven point four percent. It's so

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Speaker 6: early we're at seven point seven percent. I won't be

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Speaker 6: shocked if we're around ten to twelve percent of actual

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Speaker 6: growth by the time earning season is vision finished. And

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Speaker 6: that's going to occur really when the big technology companies

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Speaker 6: come out and report profits later on. We're not going

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Speaker 6: to get that this week, so don't expect too much

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Speaker 6: movement in that year year growth forecast. But overall it's

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Speaker 6: been pretty good. I mean, if you look at the

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Speaker 6: number of companies that have reported. Of the fifty eight,

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Speaker 6: forty five have actually reported better than expected earnings growth

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Speaker 6: in thirteen met or I'm sorry, we're lower than what

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Speaker 6: was expected, it's overall pretty good. Won't be shocked if

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Speaker 6: by the end of the earning season we're seeing about

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Speaker 6: eighty maybe seventy five to eighty percent of companies report

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Speaker 6: better than expected profits with earnings year of year about

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Speaker 6: ten to twelve percent, So expectations are are pretty solid.

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Speaker 6: And when you look at it over the past basically

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Speaker 6: two years, you know, what we've actually seen is we've

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Speaker 6: seen earnings growth really in the high single digits or

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Speaker 6: low double digits, and that's probably going to continue this quarter.

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Speaker 5: Sounds good, all right?

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Speaker 4: Coming up next, we're going to explain why this September

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Speaker 4: inflational report may have a larger impact on your portfolio

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Speaker 4: than previous reports. Plus, more Americans are stock heavy in

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Speaker 4: their four to one case. Should you be following suit?

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Speaker 4: You're listening to Simply Money, presented by all Worth Financial

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Speaker 4: on fifty five KRC the Talk station. Yes He's a

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Speaker 4: fifty five in the Middle eastward one of the longest

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Speaker 4: shut down.

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Speaker 8: Honoring Charlie Kirk targeting Venezuela and drug cartel, China US

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Speaker 8: trade war, John Boltons happening fifty five KRZ the Talk Station.

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Speaker 8: All Worth Financial a registered investment advisory firm. Any ideas

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Speaker 8: presented during this program are not intended to provide specific

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Speaker 8: financial advice. You should consult your own financial advisor, tax consultant,

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Speaker 8: or a state planning attorney to conduct your own due diligence.

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Speaker 5: You're listening to Simply Money.

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Speaker 4: Is it up by all Worth Financial lawn bop spond

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Speaker 4: seller along with Brian James. If you can't listen to

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Speaker 4: Simply Money live every night, subscribe and get our daily podcast.

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Speaker 4: Smart investment tool and is building wealth the same as

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Speaker 4: planning to protect it? We've got answers to those questions

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Speaker 4: and more straight ahead at six forty three. Well, a

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Speaker 4: few minutes ago, we spoke with all Worst Chief Investment

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Speaker 4: Officer Andy Stout about the soon to be released Consumer

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Speaker 4: Price Index Report or CPI report. This particular report is

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Speaker 4: going to have an impact on a lot of things,

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Speaker 4: potentially your.

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Speaker 5: Portfolio as well.

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Speaker 4: Brian walk us through why this report is so important

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Speaker 4: and why the government managed to pull off people back

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Speaker 4: and pay them to come and produce this report.

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Speaker 5: It is important because it impacts a lot of things.

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Speaker 7: Yeah, absolutely, and so one of the reasons this is

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Speaker 7: such a big deal is that the third quarter CPI

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Speaker 7: numbers are the ones that are used to calculate different

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Speaker 7: things such as the four oh one K contribution amounts.

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Speaker 7: The SOCI security COLA amount, of course is very important,

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Speaker 7: and treasury inflection inflation protected security is commonly known as

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Speaker 7: tips and eebonds. Those are the treasury bonds that we

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Speaker 7: all got excited about three four years ago because they

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Speaker 7: were hitting closer.

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Speaker 5: Than nine percent.

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Speaker 7: That was eebonds, not tips, but in any case, that's

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Speaker 7: all Those are things that are driven by inflation. Inflation

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Speaker 7: reports have to come from CPI, so there are things

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Speaker 7: out there that we can't simply throw a fit and

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Speaker 7: say we're not going to do this until this shutdown

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Speaker 7: is over with. Well, some processes need to move forward,

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Speaker 7: so they are going back and unfurlowing some of these

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Speaker 7: furloughed employees to make sure.

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Speaker 5: This all gets done.

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Speaker 7: And I don't think there's going to be all that

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Speaker 7: much hue and cry over the four oh one K

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Speaker 7: contribution caps. But then there are already estimates out there

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Speaker 7: about what those are supposed to be. So four one

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Speaker 7: K is supposed to go from twenty three and a

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Speaker 7: half to twenty four and a half. The catch up

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Speaker 7: if you're over fifty that's gonna move to eight thousand.

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Speaker 7: This is a speculative, but this is what the math says.

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Speaker 7: And then also if you are if you remember, we

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Speaker 7: talk occasionally about that super catch up for those aged

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Speaker 7: sixty to sixty three, that's gonna wind up being a

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Speaker 7: total of about thirty five thousand and seven fifty for

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Speaker 7: twenty twenty six. That's what the math says. But somebody

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Speaker 7: has to get in there and actually finalize this. Therefore,

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Speaker 7: the the the unfurloughing of some employees will get it done.

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Speaker 4: Brian, When you talk about twenty three and a half

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Speaker 4: to twenty four and a half, you're talking about twenty

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Speaker 4: three thousand, five hundred dollars contribution cap, right, Just correct

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Speaker 4: things clear? Yeah, yeah, So, I mean all joking aside

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Speaker 4: about the government and the shutdown and all that, I mean,

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Speaker 4: this stuff really is important. People need to know what

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Speaker 4: the rules of the game are going to be for

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Speaker 4: twenty twenty six. People need to know what their Social

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Speaker 4: Security payments are going to be in twenty twenty six.

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Speaker 4: So I think it's important that we get these reports out,

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Speaker 4: and you know, because people just like clarity and they

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Speaker 4: deserve I mean, let's face it, they deserve to know

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Speaker 4: what the numbers are going to be. I mean, that's

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Speaker 4: what we paid taxes to do, is have folks compile

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Speaker 4: these numbers and put the rules of the game out there.

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Speaker 4: So I'm happy to see that at least this is

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Speaker 4: going to be coming, you know, somewhat soon. All Right,

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Speaker 4: we're talking a trend that were we find interesting. Americans

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Speaker 4: are putting more of their four to one K money

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Speaker 4: into stocks than ever before. According to a recent survey

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Speaker 4: or data compilation from Vanguard and Vanguard usually puts out

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Speaker 4: some pretty good stuff. People in their late thirties now

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Speaker 4: hold about eighty eight percent of their four oh one

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Speaker 4: K balances in stocks. That's up six percent from just

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Speaker 4: a decade ago. Brian, what's going on here?

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Speaker 7: Well, I hope I had an impact on that, because

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Speaker 7: if you're in your thirties and you own bonds, then

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Speaker 7: I think you really should make sure you understand what

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Speaker 7: you're getting into your four o one member. We're talking

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Speaker 7: four to oh one k Ass. We're not talking dollars

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Speaker 7: that are going to be used here soon. These are

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Speaker 7: dollars that are gonna sit there till you're fifty nine

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Speaker 7: and a half years old. So I've darn sure hope

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Speaker 7: that you don't that folks don't have too much on

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Speaker 7: the bond side, because when you know your money's gonna

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Speaker 7: sit there that long, there just isn't any benefit at all.

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Speaker 7: And I'm pretty passionate about this these days. There's no

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Speaker 7: benefit at all to making sure it's that the volatility

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Speaker 7: is restricted a little bit. These are dollars that if

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Speaker 7: you're doing it the right way, you're not planning on touching.

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Speaker 7: So it really doesn't make any difference what it does

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Speaker 7: over a relatively short period of time.

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Speaker 5: I'm fifty one, Bob.

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Speaker 7: I've been one hundred percent stocks since I was in

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Speaker 7: my twenties, and I plan on being that at least

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Speaker 7: another six seven years, if not longer than that, because

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Speaker 7: I've got ten fifteen years to go. So I think

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Speaker 7: what's more interesting is people in their early sixties a

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Speaker 7: different cohort in this study about sixty percent inequities. Now

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Speaker 7: that's up a little bit from fifty seven percent, so

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Speaker 7: and I think this is just a Signbob, of where

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Speaker 7: people feel we are. There is just so little else

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Speaker 7: out there to invest in. Bonds suffered for a very

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Speaker 7: long time. We as a cunt we have decided that

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Speaker 7: we really prefer low interest rates. That means bonds aren't

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Speaker 7: going to return very much. And when rates stay are

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Speaker 7: you know, aren't that particularly volatile. They're not even going

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Speaker 7: to move that much from that standpoint either. So I

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Speaker 7: think people are just looking for If I want to grow,

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Speaker 7: I got to invest a little more in the stock market.

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Speaker 7: And these are conversations I have every day at this

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Speaker 7: table of how are we going to allocate things. This

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Speaker 7: doesn't say this isn't saying we should get more aggressive.

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Speaker 7: It's just saying if if we're looking for return and

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Speaker 7: we understand market history, then it's not the worst idea

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Speaker 7: to be more leaned into the into the equity stide

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Speaker 7: of things.

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Speaker 4: Yeah, we're talking about long term return. I think you're

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Speaker 4: spot on in your analysis and what you're doing personally.

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Speaker 4: I mean, let's face it, we had, you know, that

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Speaker 4: old sixty forty allocation. You know, people forget that we

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Speaker 4: had about a thirty year period of time where interest

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Speaker 4: rates trended lower and that really gave some nice returns

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Speaker 4: from the bond market and then low and behold. You know,

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Speaker 4: interest rates went up in twenty twenty two, and they're

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Speaker 4: just kind of hovering where they are, So I think

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Speaker 4: a heavier allocation to stocks is definitely warranted for longer

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Speaker 4: term investments or long term investors. We're just calling this

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Speaker 4: out because it does impact a lot of these target

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Speaker 4: date funds that people are in in their four oh

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Speaker 4: one ks. So, you know, it's just a reminder to

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Speaker 4: check your allocation, especially if you're kind of in one

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Speaker 4: of these one size fits all target date allocation funds.

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Speaker 4: Make sure that you're comfortable with the standard allocation risk

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Speaker 4: that these four to oh one K target date funds

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Speaker 4: are setting you in. Might be a good time to

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Speaker 4: review that with your advisor if you have one, and

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Speaker 4: just again it. You know, we're just calling out that

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Speaker 4: people are moving heavier to stocks. We think it's a

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Speaker 4: good thing, but go in with your eyes wide open

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Speaker 4: and make sure that you don't have more risk exposure

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Speaker 4: than you thought you had. Here's the all Worth advice.

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Speaker 4: There is no one size fits all investment mix. Make

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Speaker 4: sure your portfolio max is your matches, your unique situation,

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Speaker 4: not just someone else's assumptions. All right, do you have

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Speaker 4: millions saved? Why you might still be missing the mark?

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Speaker 4: What are we talking about? Well, we'll get into it.

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Speaker 5: Next.

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Speaker 4: You're listening to Simply Money, presented by all Worth Financial

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Speaker 4: on fifty five KRC the talk station.

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Speaker 2: A series of events the most important events make four

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Speaker 2: eventful days political violence in this country. Events like this

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Speaker 2: in any event, a Trump shut down, check in. We'll

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Speaker 2: check it out following these events every day.

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Speaker 3: Fifty five KRC the talk station Diabetes high blood pressure.

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Speaker 8: This is fifty five KRC and iHeartRadio station.

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Speaker 4: You're listening to Simply Money is thated by all Worth

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Speaker 4: Financial on Bob Spondseller along with Brian James. Tonight, a

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Speaker 4: sobering new look at how prepared Americans really are for retirement.

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Speaker 4: We'll start with some new data, dig into what that

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Speaker 4: means for you, and then walk through how you can

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Speaker 4: use this data to maybe rethink or just take a

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Speaker 4: fresh look at what you're actually doing in your own life.

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Speaker 4: Brian walked through some of this data.

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Speaker 5: I find this. I find the data interesting.

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Speaker 4: Anytime you get, you know, just raw, you always got

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Speaker 4: to put some context around it, which I think you

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Speaker 4: and I will be able to do here. But talk

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Speaker 4: about some new data that came out from MI I

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Speaker 4: T's age lab.

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Speaker 7: Yeah, this is a report MIT put together with some

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Speaker 7: friends from John Hancock. We've got a lot of smart

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Speaker 7: brains working on this, and they gave the United States

438
00:22:28,320 --> 00:22:31,560
Speaker 7: a D grade when it comes to retirement preparedness. So

439
00:22:31,600 --> 00:22:33,880
Speaker 7: what they're looking at is something they call the Longevity

440
00:22:33,920 --> 00:22:36,120
Speaker 7: Preparedness Index or the LPI.

441
00:22:36,200 --> 00:22:37,560
Speaker 5: There's another thing for us to remember.

442
00:22:38,080 --> 00:22:40,600
Speaker 7: But what it did was it scored people across a

443
00:22:40,680 --> 00:22:43,520
Speaker 7: lot of different parts of you know, what makes up

444
00:22:43,520 --> 00:22:48,199
Speaker 7: financial success, So this is finance, health, healthcare, home improvement,

445
00:22:48,680 --> 00:22:52,040
Speaker 7: our home environment, daily activities, community, social connection, all these

446
00:22:52,119 --> 00:22:54,480
Speaker 7: kinds of things. And the average score was a sixty

447
00:22:54,480 --> 00:22:56,080
Speaker 7: out of one hundred, so really it's actually more like

448
00:22:56,080 --> 00:22:56,800
Speaker 7: a D minus.

449
00:22:57,200 --> 00:22:57,360
Speaker 9: Uh.

450
00:22:57,400 --> 00:23:01,480
Speaker 7: The ones that the areas of this Longevity Preparedness Index

451
00:23:01,520 --> 00:23:03,400
Speaker 7: that came out the weakest are who's going to take

452
00:23:03,400 --> 00:23:03,800
Speaker 7: care of you?

453
00:23:03,840 --> 00:23:04,919
Speaker 5: And how are you going to pay for it?

454
00:23:04,960 --> 00:23:07,400
Speaker 7: On average, we had a score of forty two out

455
00:23:07,400 --> 00:23:09,879
Speaker 7: of one hundred there, meaning only about forty percent of

456
00:23:09,920 --> 00:23:12,960
Speaker 7: people really had a good position felt like they were

457
00:23:12,960 --> 00:23:15,919
Speaker 7: in a good position for that. So the home, in

458
00:23:16,040 --> 00:23:18,720
Speaker 7: terms of a place to age safely in let us do,

459
00:23:18,760 --> 00:23:21,480
Speaker 7: it's just the environment itself and any modifications or safety

460
00:23:21,520 --> 00:23:23,720
Speaker 7: adjustments you might have made that scored a fifty six,

461
00:23:24,359 --> 00:23:25,880
Speaker 7: as did healthcare itself.

462
00:23:25,920 --> 00:23:27,800
Speaker 5: So those are the weak spots.

463
00:23:28,320 --> 00:23:30,000
Speaker 7: But on the other hand, the ones that did the

464
00:23:30,040 --> 00:23:34,600
Speaker 7: best were the community and social connection. Having relationships and

465
00:23:34,640 --> 00:23:37,760
Speaker 7: being engaged in things. It's a lot easier nowadays, with

466
00:23:38,119 --> 00:23:40,280
Speaker 7: all the challenges that the Internet has brought. I would

467
00:23:40,320 --> 00:23:43,720
Speaker 7: say that it's easier to stay in touch nowadays, and

468
00:23:43,760 --> 00:23:45,440
Speaker 7: if that's an important thing to you, that, I think

469
00:23:45,440 --> 00:23:48,840
Speaker 7: that's why we're seeing that a little stronger there. So

470
00:23:48,880 --> 00:23:50,960
Speaker 7: it jumps out at us about this, Bob, Well, even

471
00:23:50,960 --> 00:23:53,000
Speaker 7: for people who might be saving, well, a lot of

472
00:23:53,040 --> 00:23:55,840
Speaker 7: people are not prepared in non financial areas and I

473
00:23:55,880 --> 00:23:58,840
Speaker 7: can speak directly to that, as can you, because that's

474
00:23:58,880 --> 00:24:01,200
Speaker 7: the first question we asked. Have you thought about anything

475
00:24:01,320 --> 00:24:03,480
Speaker 7: not related to money before you retire?

476
00:24:04,720 --> 00:24:07,760
Speaker 4: Well, Brian, a couple thoughts on this what jumps out

477
00:24:07,800 --> 00:24:10,720
Speaker 4: to me from Again, raw data good to have, but

478
00:24:10,760 --> 00:24:13,239
Speaker 4: you've got to put some context about it around it.

479
00:24:13,840 --> 00:24:18,080
Speaker 4: You know, these community and social engagement scores were extremely high.

480
00:24:18,800 --> 00:24:22,000
Speaker 4: But yet yet again the weak spots were talking about

481
00:24:22,080 --> 00:24:24,639
Speaker 4: how you're gonna be cared for in your later years

482
00:24:24,680 --> 00:24:27,199
Speaker 4: and modify your home, which what what that says to

483
00:24:27,240 --> 00:24:31,720
Speaker 4: me is people have plenty of engagement with other folks,

484
00:24:31,760 --> 00:24:35,119
Speaker 4: but they're not They're either afraid to or they're just

485
00:24:35,200 --> 00:24:39,240
Speaker 4: not taking the time to discuss and communicate and share

486
00:24:39,320 --> 00:24:43,040
Speaker 4: ideas when it comes to planning for later life issues.

487
00:24:43,600 --> 00:24:46,959
Speaker 4: And Brian, I see this happen more often than not

488
00:24:47,160 --> 00:24:50,880
Speaker 4: when I work with clients. Everybody just wants to assume

489
00:24:50,920 --> 00:24:53,879
Speaker 4: that everything's gonna go on like it always has in

490
00:24:53,960 --> 00:24:57,600
Speaker 4: their home and with their health and all that. And

491
00:24:59,119 --> 00:25:01,600
Speaker 4: it's the rare that gets out in front of this

492
00:25:01,720 --> 00:25:04,480
Speaker 4: and says, hey, I'm gonna make some modifications and put

493
00:25:04,520 --> 00:25:06,960
Speaker 4: some plans in place now for when the.

494
00:25:07,000 --> 00:25:08,960
Speaker 5: Day comes when things aren't.

495
00:25:08,720 --> 00:25:11,960
Speaker 4: Gonna be hunky dory, you know, with respect to my

496
00:25:12,080 --> 00:25:14,000
Speaker 4: mobility and who's going to take care of me and

497
00:25:14,040 --> 00:25:16,840
Speaker 4: all that. So I I see this as a as

498
00:25:16,880 --> 00:25:18,880
Speaker 4: a lack of communication problem.

499
00:25:18,920 --> 00:25:19,520
Speaker 5: Do you agree?

500
00:25:19,840 --> 00:25:20,000
Speaker 9: Yeah?

501
00:25:20,080 --> 00:25:20,840
Speaker 5: No, I would agree with that.

502
00:25:20,880 --> 00:25:22,639
Speaker 7: And again, this all has to do with this is

503
00:25:22,640 --> 00:25:24,520
Speaker 7: why it comes up when there's a financial planner in

504
00:25:24,520 --> 00:25:26,840
Speaker 7: the room, somebody who's an arm's length away who can

505
00:25:26,880 --> 00:25:27,879
Speaker 7: say have you thought about this?

506
00:25:28,000 --> 00:25:28,920
Speaker 5: Have you thought about that?

507
00:25:29,119 --> 00:25:32,120
Speaker 7: And a lot of times that's where the communication begins,

508
00:25:32,160 --> 00:25:34,000
Speaker 7: because I'll see you know, for a married couple, I'll

509
00:25:34,000 --> 00:25:36,080
Speaker 7: see two heads turned toward each other and start to

510
00:25:36,200 --> 00:25:37,800
Speaker 7: start to talk about these details.

511
00:25:38,160 --> 00:25:38,280
Speaker 5: Uh.

512
00:25:38,440 --> 00:25:40,479
Speaker 7: And it's not any magic we're working. It's just that

513
00:25:40,560 --> 00:25:43,480
Speaker 7: no one has has pulled them back from you know,

514
00:25:43,600 --> 00:25:45,919
Speaker 7: the further enough away from the forest so that they

515
00:25:45,920 --> 00:25:48,320
Speaker 7: can kind of see the whole big picture. So, you know,

516
00:25:48,680 --> 00:25:52,440
Speaker 7: so diving in a little more deeply here. So where

517
00:25:52,440 --> 00:25:54,840
Speaker 7: we're looking at on healthcare. Even if you can afford

518
00:25:54,880 --> 00:25:56,840
Speaker 7: those high health care costumes, you you need to plan

519
00:25:56,920 --> 00:25:59,439
Speaker 7: ahead and who is going to make these decisions for you?

520
00:25:59,680 --> 00:26:02,080
Speaker 7: And these are fairly simple decisions. Maybe you already have

521
00:26:02,200 --> 00:26:05,360
Speaker 7: in mind who is going to make your your your

522
00:26:05,680 --> 00:26:07,840
Speaker 7: care decisions on your behalf. But if you have not

523
00:26:07,880 --> 00:26:09,399
Speaker 7: put that on a piece of paper, it's going to

524
00:26:09,440 --> 00:26:11,159
Speaker 7: be a lot harder for that person to step in.

525
00:26:11,160 --> 00:26:13,320
Speaker 7: And whether that's your spouse or it's an adult child

526
00:26:13,359 --> 00:26:15,840
Speaker 7: or whatever, they're going to need to fight the system

527
00:26:16,119 --> 00:26:18,320
Speaker 7: to be permitted to make decisions for you. That's going

528
00:26:18,359 --> 00:26:19,760
Speaker 7: to take a lot longer than if you get all

529
00:26:19,800 --> 00:26:22,200
Speaker 7: that stuff down and writing in advance. So you might

530
00:26:22,240 --> 00:26:26,439
Speaker 7: also consider possibly ensuring for long term care. That's not

531
00:26:26,600 --> 00:26:29,600
Speaker 7: a that's something you should understand I wouldn't start with

532
00:26:29,640 --> 00:26:31,640
Speaker 7: the assumption that we have to go buy long term

533
00:26:31,680 --> 00:26:33,720
Speaker 7: care insurance. A lot of people may actually be in

534
00:26:33,760 --> 00:26:35,840
Speaker 7: a position where they can self insure. Certainly a lot

535
00:26:35,880 --> 00:26:38,760
Speaker 7: of people aren't. But if there are assets out there,

536
00:26:38,800 --> 00:26:41,679
Speaker 7: then understand clearly what that expense, that that actual expense

537
00:26:41,720 --> 00:26:44,960
Speaker 7: can be, and how it fits in to your current expenses,

538
00:26:45,320 --> 00:26:48,159
Speaker 7: including what expenses would be eliminated. If you're in a

539
00:26:48,200 --> 00:26:50,720
Speaker 7: long term care situation, for example, then you are not

540
00:26:50,840 --> 00:26:55,000
Speaker 7: necessarily layering on an entire expensive bunch of expenses on

541
00:26:55,119 --> 00:26:57,600
Speaker 7: top of your current lifestyle. Your lifestyle has now changed.

542
00:26:57,720 --> 00:26:59,679
Speaker 7: You're not going to the grocery store anymore. You may

543
00:26:59,720 --> 00:27:01,480
Speaker 7: not even own a home anymore. We're talking end of

544
00:27:01,480 --> 00:27:04,000
Speaker 7: life care. So don't be too afraid about what that

545
00:27:04,080 --> 00:27:06,119
Speaker 7: expense can be if you've got assets to cover it.

546
00:27:07,680 --> 00:27:07,920
Speaker 5: Yeah.

547
00:27:07,960 --> 00:27:10,520
Speaker 4: And then another topic that scored you know, kind of

548
00:27:10,560 --> 00:27:12,600
Speaker 4: low in this study, and this has nothing to do

549
00:27:12,640 --> 00:27:15,760
Speaker 4: with having enough money again, it's just planning ahead for

550
00:27:16,240 --> 00:27:20,520
Speaker 4: things that we'll call emotional, social, and purpose infrastructure in

551
00:27:20,560 --> 00:27:24,639
Speaker 4: your life, meaning your relationships, your hobbies, your social networks,

552
00:27:24,680 --> 00:27:26,760
Speaker 4: the things that you're going to do each day and Brian,

553
00:27:26,800 --> 00:27:28,880
Speaker 4: I'll never forget a phone call I got a few

554
00:27:28,920 --> 00:27:32,560
Speaker 4: years ago from a long time client. You know this,

555
00:27:32,560 --> 00:27:35,680
Speaker 4: this gentleman has plenty of money, more money than he'll

556
00:27:35,720 --> 00:27:39,000
Speaker 4: ever want to spend. His wife passed away from a

557
00:27:39,160 --> 00:27:44,399
Speaker 4: very you know, tough, debilitating, debilitating illness, so that changed

558
00:27:44,440 --> 00:27:46,880
Speaker 4: all of his plans. And I'll never forget that phone call.

559
00:27:47,320 --> 00:27:50,240
Speaker 4: He called me up and said, Bob, I'm really struggling.

560
00:27:50,440 --> 00:27:53,800
Speaker 4: I don't I don't have anything to do, and and

561
00:27:53,840 --> 00:27:56,159
Speaker 4: that just broke my heart. And we were able to

562
00:27:56,200 --> 00:27:58,480
Speaker 4: talk about that a little bit. We continue to talk

563
00:27:58,520 --> 00:28:01,399
Speaker 4: about it. He got into some volunteer work and doing

564
00:28:01,440 --> 00:28:04,200
Speaker 4: some things. But you know, you got to think about

565
00:28:04,240 --> 00:28:07,320
Speaker 4: if you're preparing for retirement, it's not just about the money.

566
00:28:07,440 --> 00:28:12,399
Speaker 4: It's what's your life going to look like in terms relationships, hobbies,

567
00:28:13,480 --> 00:28:16,679
Speaker 4: things are going to occupy your time and your mind

568
00:28:17,880 --> 00:28:20,360
Speaker 4: so that you do you actually do have a fulfilling

569
00:28:20,600 --> 00:28:23,880
Speaker 4: retirement period of life. And a lot of times people

570
00:28:23,920 --> 00:28:27,280
Speaker 4: aren't thinking about that far enough in advance either. I'm

571
00:28:27,280 --> 00:28:28,640
Speaker 4: sure you run into the same thing.

572
00:28:28,920 --> 00:28:31,680
Speaker 7: Yeah, And I always I think we have a tendency

573
00:28:31,720 --> 00:28:34,320
Speaker 7: to hide behind the money, right, we always spend time.

574
00:28:34,359 --> 00:28:36,280
Speaker 7: You know, we always spend most of our energy worried

575
00:28:36,320 --> 00:28:38,320
Speaker 7: about that there's not enough, not enough, not enough. Then

576
00:28:38,400 --> 00:28:41,240
Speaker 7: then we'll finally do a financial plan. And I can see,

577
00:28:41,840 --> 00:28:43,440
Speaker 7: you know, when I do this, when I review a

578
00:28:43,480 --> 00:28:45,880
Speaker 7: base financial plan for somebody, I can kind of see

579
00:28:45,920 --> 00:28:48,200
Speaker 7: the realization that, oh my god, we can do what

580
00:28:48,240 --> 00:28:50,120
Speaker 7: we whatever we want to do. We're in a good position.

581
00:28:50,160 --> 00:28:52,040
Speaker 7: And then all of a sudden there's a realization, oh

582
00:28:52,080 --> 00:28:53,680
Speaker 7: my goodness, what is it that we want to do.

583
00:28:53,760 --> 00:28:56,040
Speaker 7: We've never thought about that. And this has everything to

584
00:28:56,080 --> 00:28:58,400
Speaker 7: do with time. It just brings on an avalanche of

585
00:28:58,440 --> 00:29:01,400
Speaker 7: new questions. Now that the financial question has been answered,

586
00:29:01,440 --> 00:29:04,320
Speaker 7: there's a huge mountain behind them of all the other

587
00:29:04,440 --> 00:29:07,160
Speaker 7: things that we haven't started to think about. So just start,

588
00:29:07,800 --> 00:29:10,720
Speaker 7: just for one evening, assume that the money is in place,

589
00:29:11,000 --> 00:29:13,600
Speaker 7: Where does your mind go? Talk to your spouse if

590
00:29:13,600 --> 00:29:15,760
Speaker 7: you're married, about about all these different topics and just

591
00:29:15,800 --> 00:29:17,960
Speaker 7: see what comes up, and try to keep the topic

592
00:29:18,000 --> 00:29:18,840
Speaker 7: off of money for just.

593
00:29:18,840 --> 00:29:19,280
Speaker 5: A little bit.

594
00:29:20,200 --> 00:29:22,479
Speaker 4: That's good advice, all right, here's the all worth advice.

595
00:29:22,640 --> 00:29:27,400
Speaker 4: True readiness means aligning your health, your home, your relationships,

596
00:29:27,600 --> 00:29:32,200
Speaker 4: your purpose, and your finances, not just worrying about building

597
00:29:32,240 --> 00:29:35,760
Speaker 4: your next dollar of net worth? Coming up next, life

598
00:29:35,800 --> 00:29:39,600
Speaker 4: insurance as an investment, one stock making up a quarter

599
00:29:39,840 --> 00:29:43,880
Speaker 4: of a portfolio, and the fear of possibly losing it all.

600
00:29:43,960 --> 00:29:47,200
Speaker 4: We'll answer real questions from real local listeners.

601
00:29:47,360 --> 00:29:47,600
Speaker 5: Next.

602
00:29:47,640 --> 00:29:50,520
Speaker 4: You're listening to Simply Money, presented by all Worth Financial

603
00:29:50,520 --> 00:29:53,160
Speaker 4: on fifty five KRC, the talk station.

604
00:29:53,880 --> 00:29:57,120
Speaker 6: The President of the United States of America has declared war.

605
00:29:57,600 --> 00:30:00,760
Speaker 2: Chicago is a hellhole right now anyone knows it is.

606
00:30:00,840 --> 00:30:04,400
Speaker 6: Democrats are fighting to provide free taxpayer healthcare to illegal aliens.

607
00:30:04,560 --> 00:30:07,440
Speaker 2: Republicans are risking America's healthcare.

608
00:30:07,640 --> 00:30:10,320
Speaker 9: Things are happening with respect to Russian Ukraine, as ability

609
00:30:10,320 --> 00:30:11,800
Speaker 9: that we could have peace in the Middle East.

610
00:30:11,640 --> 00:30:16,320
Speaker 2: Sportlands on fire. Listen here, Democrats are Republicans. You know everything.

611
00:30:16,400 --> 00:30:19,120
Speaker 2: You never know what's going to happen. Stay in the no.

612
00:30:20,520 --> 00:30:26,480
Speaker 2: Fifty five KRC the talk station. This is Mark I've KRC.

613
00:30:32,280 --> 00:30:35,040
Speaker 4: You're listening to Simply Money presented by all Work Financial

614
00:30:35,040 --> 00:30:38,120
Speaker 4: on Bob Sponsorer along with Brian James. Do you have

615
00:30:38,160 --> 00:30:40,720
Speaker 4: a financial question you'd like for us to answer. There's

616
00:30:40,760 --> 00:30:42,840
Speaker 4: a red button you can click while you're listening to

617
00:30:42,880 --> 00:30:45,800
Speaker 4: the show. Right on the iHeart app. Simply record your

618
00:30:45,880 --> 00:30:48,680
Speaker 4: question and it will come straight to us, all right,

619
00:30:48,760 --> 00:30:52,400
Speaker 4: leading us off, leaving us off tonight. Brian is Tom

620
00:30:52,400 --> 00:30:55,560
Speaker 4: and Mason. He says, we've saved enough to retire, But

621
00:30:55,600 --> 00:30:59,160
Speaker 4: I'm realizing the hardest part isn't the math, it's giving

622
00:30:59,160 --> 00:31:02,680
Speaker 4: ourselves permit actually spend money. How do you build a

623
00:31:02,720 --> 00:31:06,320
Speaker 4: plan that balances security with enjoying life?

624
00:31:06,400 --> 00:31:06,640
Speaker 2: Now?

625
00:31:06,720 --> 00:31:08,160
Speaker 5: I love this question, Brian.

626
00:31:08,280 --> 00:31:10,240
Speaker 7: That's one of my favorite questions is because it's so

627
00:31:10,320 --> 00:31:12,520
Speaker 7: much fun to build a financial plan for someone who

628
00:31:12,520 --> 00:31:14,800
Speaker 7: has worked their rear end off to put themselves in

629
00:31:14,880 --> 00:31:17,320
Speaker 7: such a solid position. And I know this because this

630
00:31:17,400 --> 00:31:19,400
Speaker 7: is this is probably ninety five percent of the people

631
00:31:19,400 --> 00:31:21,560
Speaker 7: that I'm that I meet with, And I love that

632
00:31:21,640 --> 00:31:23,920
Speaker 7: the time that the fact that you're using you're using

633
00:31:23,960 --> 00:31:25,560
Speaker 7: the term permission to spend.

634
00:31:26,320 --> 00:31:28,440
Speaker 5: The phrase that I use often all the time is

635
00:31:28,480 --> 00:31:28,840
Speaker 5: that you.

636
00:31:28,760 --> 00:31:31,520
Speaker 7: Are allowed to spend your own money. That is a

637
00:31:31,560 --> 00:31:34,680
Speaker 7: cosmic universal law out there. But most people can't get

638
00:31:34,680 --> 00:31:37,080
Speaker 7: out of their own way because we simply have What

639
00:31:37,200 --> 00:31:39,040
Speaker 7: caused us to put all those dollars away in the

640
00:31:39,040 --> 00:31:41,560
Speaker 7: first place is a sense of scarcity.

641
00:31:41,560 --> 00:31:42,680
Speaker 5: How are we going to how do we know there's

642
00:31:42,680 --> 00:31:44,520
Speaker 5: gonna be enough. We never know. We got to save safe, safe,

643
00:31:44,560 --> 00:31:45,040
Speaker 5: safe safe.

644
00:31:45,360 --> 00:31:47,600
Speaker 7: You do that for enough decades and all of a

645
00:31:47,600 --> 00:31:49,800
Speaker 7: sudden you put yourself in a rock solid position. But

646
00:31:49,880 --> 00:31:52,560
Speaker 7: now you've built this wall inside your head that is

647
00:31:52,600 --> 00:31:54,880
Speaker 7: going to not allow you to spend these dollars.

648
00:31:55,160 --> 00:31:56,640
Speaker 5: So remember you put.

649
00:31:56,520 --> 00:31:58,880
Speaker 7: Those dollars away, your four one ks, your iraise, your

650
00:31:58,920 --> 00:32:02,240
Speaker 7: retirement assets or retirement, not really for a rainy day,

651
00:32:02,360 --> 00:32:06,200
Speaker 7: for a specified period of time known as retirement, when

652
00:32:06,400 --> 00:32:08,480
Speaker 7: you can pay your bills with your own assets. So

653
00:32:08,560 --> 00:32:11,000
Speaker 7: the answer is, of course, put a financial plan together.

654
00:32:11,080 --> 00:32:14,080
Speaker 7: Model this all out. Focus on here's what it costs us,

655
00:32:14,120 --> 00:32:18,480
Speaker 7: to the very basic to keep ourselves fed and clothed

656
00:32:18,520 --> 00:32:19,200
Speaker 7: and sheltered.

657
00:32:19,360 --> 00:32:20,520
Speaker 5: Here's what it costs us.

658
00:32:20,720 --> 00:32:22,920
Speaker 7: And if you find you have assets over and above that,

659
00:32:22,960 --> 00:32:25,880
Speaker 7: and many, many, many people do, then you know you

660
00:32:25,920 --> 00:32:28,640
Speaker 7: can come up with the budget to make sure that

661
00:32:28,880 --> 00:32:29,880
Speaker 7: you don't overspend.

662
00:32:30,040 --> 00:32:31,480
Speaker 5: And again this is all about math.

663
00:32:31,800 --> 00:32:33,840
Speaker 7: Once the math is there and in place and you

664
00:32:33,920 --> 00:32:36,360
Speaker 7: understand it, then rely on it. Review that plan once

665
00:32:36,400 --> 00:32:38,560
Speaker 7: a year at least, maybe more often until you get

666
00:32:38,640 --> 00:32:41,600
Speaker 7: used to the process. But give yourselves permission to spend

667
00:32:41,640 --> 00:32:44,240
Speaker 7: those assets that you work so hard to build. Congratulations

668
00:32:44,280 --> 00:32:46,800
Speaker 7: Tom to you and your spouse for the position that

669
00:32:46,840 --> 00:32:47,560
Speaker 7: you put yourselves in.

670
00:32:47,880 --> 00:32:49,680
Speaker 5: All right, to move on to Lisa in Loveland.

671
00:32:49,760 --> 00:32:52,840
Speaker 7: Lisa says she's heard about people using life insurance for

672
00:32:52,960 --> 00:32:55,320
Speaker 7: legacy and tax planning, and she's just wondering.

673
00:32:55,360 --> 00:32:56,760
Speaker 5: She's also heard the other side of it, Bob.

674
00:32:56,800 --> 00:32:58,400
Speaker 7: She's wondering, how do you tell when this is a

675
00:32:58,480 --> 00:33:02,360
Speaker 7: genuine financial planning strategy versus just sales tactics.

676
00:33:03,920 --> 00:33:07,480
Speaker 4: Good question, and I'll go back to the age old

677
00:33:07,560 --> 00:33:11,200
Speaker 4: phrase follow the money. And here's what I mean. A

678
00:33:11,280 --> 00:33:15,560
Speaker 4: lot oftentimes people that are coming and pitching or selling

679
00:33:15,600 --> 00:33:18,840
Speaker 4: life insurance, they're doing it because they make large commissions

680
00:33:18,840 --> 00:33:22,600
Speaker 4: for selling it. So oftentimes this can result in trying

681
00:33:22,640 --> 00:33:26,200
Speaker 4: to fit a square peg in a round hole, and

682
00:33:26,280 --> 00:33:28,600
Speaker 4: it's like, you need this life insurance, buy it, and

683
00:33:28,640 --> 00:33:31,920
Speaker 4: then we'll try to justify why we're selling it to you.

684
00:33:32,720 --> 00:33:35,480
Speaker 5: That's kind of a.

685
00:33:34,440 --> 00:33:38,880
Speaker 4: Backwards way of approaching life insurance for what it really is.

686
00:33:39,000 --> 00:33:42,719
Speaker 4: It's a valuable tool to either fulfill a need or

687
00:33:43,680 --> 00:33:46,920
Speaker 4: you know, solve a problem, or sometimes both. So just

688
00:33:46,960 --> 00:33:50,200
Speaker 4: like Brian talked about with his answering his questions from Tom,

689
00:33:50,240 --> 00:33:53,000
Speaker 4: you got to start with a financial plan. Build a plan,

690
00:33:53,800 --> 00:33:56,680
Speaker 4: and in the course of reviewing that plan and looking

691
00:33:56,720 --> 00:33:59,040
Speaker 4: for where the holes are and the needs are, life

692
00:33:59,120 --> 00:34:03,280
Speaker 4: insurance might a wonderful tool to solve a problem, But

693
00:34:03,400 --> 00:34:07,080
Speaker 4: don't start with life insurance. Start with a good financial plan,

694
00:34:07,520 --> 00:34:11,360
Speaker 4: and hopefully do that through working with a good fiduciary

695
00:34:11,440 --> 00:34:15,319
Speaker 4: advisor that is not incentivized just by selling you a

696
00:34:15,360 --> 00:34:16,600
Speaker 4: commission based product.

697
00:34:16,640 --> 00:34:18,399
Speaker 5: Hope that helps, Lisa, all.

698
00:34:18,360 --> 00:34:20,759
Speaker 4: Right, Paul and Fort Mitchell says, We've got about a

699
00:34:20,840 --> 00:34:23,759
Speaker 4: quarter of our portfolio in one mutual fund.

700
00:34:23,480 --> 00:34:24,920
Speaker 5: We've held for decades.

701
00:34:25,320 --> 00:34:29,040
Speaker 4: It's done well, but it's also a big tax liability,

702
00:34:29,080 --> 00:34:31,799
Speaker 4: which I'm assuming he's got a large capital gain, which

703
00:34:31,840 --> 00:34:35,000
Speaker 4: I think is great. Brian, what's the smartest way to

704
00:34:35,160 --> 00:34:37,080
Speaker 4: possibly unwind this situation?

705
00:34:37,440 --> 00:34:41,120
Speaker 7: Yeah, somewhat common problem. So mutual funds, of course, we're

706
00:34:41,160 --> 00:34:42,640
Speaker 7: the thing thirty forty years ago.

707
00:34:42,760 --> 00:34:43,319
Speaker 5: They still are.

708
00:34:43,760 --> 00:34:45,200
Speaker 7: But that was kind of the only option if you

709
00:34:45,239 --> 00:34:47,399
Speaker 7: wanted an investment that kind of spread the risk out

710
00:34:47,400 --> 00:34:49,560
Speaker 7: and was diversified. You wanted to be a buy and

711
00:34:49,600 --> 00:34:51,560
Speaker 7: hold investor, didn't really want to get active in the market.

712
00:34:51,600 --> 00:34:53,040
Speaker 5: Well, mutual funds were all that's out there.

713
00:34:53,520 --> 00:34:55,160
Speaker 7: So I've had I have a number of clients actually

714
00:34:55,200 --> 00:34:57,319
Speaker 7: where we've realized that there are better things you can

715
00:34:57,400 --> 00:35:00,600
Speaker 7: be doing. Not that it's a it's not a bad

716
00:35:00,640 --> 00:35:03,359
Speaker 7: investment at all, of course, but there are things out

717
00:35:03,360 --> 00:35:05,640
Speaker 7: there now that are more efficient for you, such as

718
00:35:05,719 --> 00:35:07,800
Speaker 7: a direct, direct indexing, those.

719
00:35:07,719 --> 00:35:08,279
Speaker 5: Kinds of things.

720
00:35:08,800 --> 00:35:10,520
Speaker 7: But the only way you're gonna get there to rearrange

721
00:35:10,520 --> 00:35:12,560
Speaker 7: a sizeable portfolio that's tied up in something with a

722
00:35:12,600 --> 00:35:14,960
Speaker 7: gain is of course to eat that gain. So the

723
00:35:15,040 --> 00:35:16,879
Speaker 7: right way to think about it is is, first of all,

724
00:35:16,960 --> 00:35:19,560
Speaker 7: understand where you're trying to go before you make any decisions.

725
00:35:19,560 --> 00:35:21,440
Speaker 7: If you're going to do something different, make sure that

726
00:35:21,440 --> 00:35:23,400
Speaker 7: that's something is really going to have a real impact.

727
00:35:24,000 --> 00:35:25,520
Speaker 7: You know, there are worse things in the world than

728
00:35:25,520 --> 00:35:28,560
Speaker 7: hanging on to something that has a gain built into it.

729
00:35:28,960 --> 00:35:30,960
Speaker 7: But be mindful of you know, it depends on what

730
00:35:31,000 --> 00:35:33,520
Speaker 7: your what your tax bracket is. If you're about to retire,

731
00:35:33,920 --> 00:35:35,919
Speaker 7: you mentioned decades, so we don't know. We don't know, Paul,

732
00:35:35,920 --> 00:35:37,920
Speaker 7: if you're retired or not. But if you're at a

733
00:35:37,960 --> 00:35:41,000
Speaker 7: lower income point or you're about to be, then that

734
00:35:41,120 --> 00:35:42,880
Speaker 7: might be a great year when when you you know,

735
00:35:42,920 --> 00:35:45,080
Speaker 7: as soon as you retire and your salaries are out

736
00:35:45,120 --> 00:35:47,280
Speaker 7: of the picture, maybe you haven't turned on Social Security,

737
00:35:47,600 --> 00:35:49,320
Speaker 7: You're going to live off some other assets. You're probably

738
00:35:49,320 --> 00:35:50,799
Speaker 7: going to be in a lower bracket than you've been

739
00:35:50,840 --> 00:35:53,840
Speaker 7: in in literally decades, So that might be an okay

740
00:35:53,920 --> 00:35:57,279
Speaker 7: year to take some gains. Remember, over the span here

741
00:35:57,280 --> 00:35:58,960
Speaker 7: of about three months, we're going to be in two

742
00:35:58,960 --> 00:35:59,439
Speaker 7: tax years.

743
00:35:59,520 --> 00:36:00,719
Speaker 5: So if there's a fixed.

744
00:36:00,400 --> 00:36:03,120
Speaker 7: Dollar amount that you want to get out and pay

745
00:36:03,160 --> 00:36:05,520
Speaker 7: some of these capital gains taxes, you could spread it

746
00:36:05,560 --> 00:36:07,719
Speaker 7: out over two tax years, just over the span of

747
00:36:07,760 --> 00:36:08,280
Speaker 7: three months.

748
00:36:08,280 --> 00:36:10,319
Speaker 5: So I would say, figure out a budget. You know

749
00:36:10,320 --> 00:36:11,240
Speaker 5: you're going to pay taxes.

750
00:36:11,280 --> 00:36:13,600
Speaker 7: These dollars are completely worthless to you if you if

751
00:36:13,640 --> 00:36:16,239
Speaker 7: you simply can't stomach the idea of paying taxes, So

752
00:36:16,400 --> 00:36:18,839
Speaker 7: you know that's happening, figure out what you're comfortable with,

753
00:36:18,880 --> 00:36:20,880
Speaker 7: and then figure out how to spread that out over

754
00:36:21,400 --> 00:36:24,400
Speaker 7: the remainder of Q four and January, and then you

755
00:36:24,400 --> 00:36:26,960
Speaker 7: can look at some of those more specific strategies that

756
00:36:27,040 --> 00:36:29,919
Speaker 7: I mentioned there before. All Right, Mark and Florence. Mark

757
00:36:29,920 --> 00:36:32,040
Speaker 7: says they've worked hard to build wealth. Here's another wei.

758
00:36:32,040 --> 00:36:34,239
Speaker 7: So we're going to assume Mark is married, but I

759
00:36:34,239 --> 00:36:37,399
Speaker 7: don't want to become obsessed with preserving every dollar. So Bob,

760
00:36:37,440 --> 00:36:39,560
Speaker 7: how does Mark know when it's time to prioritize his

761
00:36:39,640 --> 00:36:41,879
Speaker 7: lifestyle over optimizing their financial plan?

762
00:36:42,920 --> 00:36:43,520
Speaker 5: This is great.

763
00:36:43,600 --> 00:36:46,320
Speaker 4: This is another spin on the question Tom had earlier

764
00:36:46,320 --> 00:36:48,040
Speaker 4: in this segment. So let me take a shot at

765
00:36:48,080 --> 00:36:51,319
Speaker 4: this one. And Brian covered it really well. I would

766
00:36:51,400 --> 00:36:53,080
Speaker 4: just say, you know, for a lot of folks, you know,

767
00:36:53,120 --> 00:36:56,080
Speaker 4: let's say you're retiring your early sixties, there's that window

768
00:36:56,120 --> 00:36:59,640
Speaker 4: of time between early sixties and mid eighties where hopefully

769
00:36:59,680 --> 00:37:03,120
Speaker 4: you're healthy and you're able to enjoy some of this

770
00:37:03,280 --> 00:37:05,520
Speaker 4: money that you've worked so hard to build.

771
00:37:05,960 --> 00:37:07,800
Speaker 5: You know, I'd say, sit down with your wife and

772
00:37:08,640 --> 00:37:09,480
Speaker 5: sketch out.

773
00:37:09,360 --> 00:37:12,400
Speaker 4: Some of these bucket list items and then run the

774
00:37:12,520 --> 00:37:15,280
Speaker 4: numbers and see how much of those bucket list items

775
00:37:15,280 --> 00:37:18,000
Speaker 4: you can afford, and then get after doing it, get

776
00:37:18,040 --> 00:37:21,960
Speaker 4: after checking those boxes and enjoying it and taking taking

777
00:37:22,000 --> 00:37:25,759
Speaker 4: advantage of those healthy years that you've got left to

778
00:37:26,080 --> 00:37:28,799
Speaker 4: really enjoy some of that money that you've worked so

779
00:37:28,920 --> 00:37:32,600
Speaker 4: hard to build. Hope that helps, all, right, a positive

780
00:37:32,680 --> 00:37:36,480
Speaker 4: shift in who's investing and why. It could reinforce the

781
00:37:36,520 --> 00:37:38,840
Speaker 4: way you think about your own portfolio. You're listening to

782
00:37:38,840 --> 00:37:41,719
Speaker 4: Complete Money, presented by all Worth Financial on fifty five

783
00:37:41,800 --> 00:37:43,600
Speaker 4: KRC the talk station.

784
00:37:44,440 --> 00:37:46,960
Speaker 5: The Shumer shutdown, Trump shutdown.

785
00:37:46,600 --> 00:37:49,880
Speaker 2: The Democrats will own it. Portland is on fire, the

786
00:37:49,960 --> 00:37:52,160
Speaker 2: Ice facility has been under siege.

787
00:37:52,560 --> 00:37:55,920
Speaker 7: President's declared war from Chicago is a disaster.

788
00:37:56,160 --> 00:37:59,080
Speaker 2: We deserve to be safe in our communities.

789
00:37:58,560 --> 00:38:00,600
Speaker 5: Again, Thank America, Trump against.

790
00:38:00,600 --> 00:38:02,520
Speaker 2: Israel and hamas a piece. Deal is closer than ever.

791
00:38:02,719 --> 00:38:05,239
Speaker 2: Just about every nation working on this deal.

792
00:38:05,480 --> 00:38:08,759
Speaker 3: The events of the day, clear transparent information are heard

793
00:38:09,040 --> 00:38:09,760
Speaker 3: every day.

794
00:38:09,680 --> 00:38:10,640
Speaker 5: In real time.

795
00:38:10,719 --> 00:38:15,400
Speaker 3: Fifty five KRC the talk station at the Thompson.

796
00:38:15,000 --> 00:38:17,800
Speaker 5: And of course not just one sided view news.

797
00:38:17,719 --> 00:38:19,680
Speaker 3: That affects you at the top end to bottom of

798
00:38:19,719 --> 00:38:27,440
Speaker 3: the hour. Fifty five KRZ the talk station, and you're

799
00:38:27,480 --> 00:38:29,920
Speaker 3: listening to simply money is out of my All Work Financial.

800
00:38:29,920 --> 00:38:33,759
Speaker 3: I'm Bob Sponsller along with Brian James. You know, sometimes

801
00:38:33,800 --> 00:38:34,800
Speaker 3: the biggest.

802
00:38:34,400 --> 00:38:38,680
Speaker 4: Wins in finance come from the smallest moves, simply saving

803
00:38:38,760 --> 00:38:43,120
Speaker 4: more and investing earlier. And there's fresh evidence that more

804
00:38:43,239 --> 00:38:45,680
Speaker 4: Americans are doing exactly that.

805
00:38:45,840 --> 00:38:46,160
Speaker 5: Brian.

806
00:38:46,239 --> 00:38:49,960
Speaker 4: We came across a recent Wall Street Journal article that

807
00:38:50,080 --> 00:38:53,560
Speaker 4: highlights a trend we think is terrific. What's going on

808
00:38:53,640 --> 00:38:56,680
Speaker 4: here with the ordinary folks doing the right things.

809
00:38:56,880 --> 00:38:58,960
Speaker 7: Yeah, so this is good news you hear so so,

810
00:38:59,200 --> 00:39:02,239
Speaker 7: but this has between people earning between thirty and eighty

811
00:39:02,320 --> 00:39:04,799
Speaker 7: thousand a year, about fifty four percent of them now

812
00:39:04,840 --> 00:39:08,040
Speaker 7: have taxable investment accounts. About half of those open those

813
00:39:08,040 --> 00:39:10,240
Speaker 7: accounts just in the last five years. So these are people.

814
00:39:10,239 --> 00:39:14,120
Speaker 7: They're not just dabbling are They're putting five thousand dollars

815
00:39:14,239 --> 00:39:16,879
Speaker 7: or more into that market. And so this comes from

816
00:39:17,080 --> 00:39:19,840
Speaker 7: a survey from Commonwealth and Black Rock, of course, to

817
00:39:19,960 --> 00:39:22,640
Speaker 7: big financial institutions who are custodians for a lot of

818
00:39:22,640 --> 00:39:24,680
Speaker 7: these dollars, so they can see what's going on. And

819
00:39:24,680 --> 00:39:27,600
Speaker 7: this is interesting because in the past, investing in the

820
00:39:27,600 --> 00:39:30,160
Speaker 7: stock market was often seen as that's kind of a luxury,

821
00:39:30,160 --> 00:39:31,400
Speaker 7: that's for the people with a lot of money, the

822
00:39:31,560 --> 00:39:33,759
Speaker 7: rich people out there. But now we're seeing low and

823
00:39:33,800 --> 00:39:38,000
Speaker 7: modern income house householder getting are more informed nowadays, learning

824
00:39:38,000 --> 00:39:40,480
Speaker 7: more about it, and there are more tools available for

825
00:39:40,520 --> 00:39:42,719
Speaker 7: them to take advantage of it, so through commission fee

826
00:39:42,880 --> 00:39:45,479
Speaker 7: free trading, a lot of educational tools out.

827
00:39:45,400 --> 00:39:46,760
Speaker 5: There on the internet and so forth.

828
00:39:46,920 --> 00:39:49,480
Speaker 7: And this is just we've been talking about this all

829
00:39:49,560 --> 00:39:54,640
Speaker 7: day just in terms of the idea that the investing

830
00:39:54,680 --> 00:39:57,200
Speaker 7: in stocks and bonds is really kind of now that

831
00:39:57,360 --> 00:39:59,680
Speaker 7: is the retirement plan. It's no longer about pensions and

832
00:39:59,719 --> 00:40:01,360
Speaker 7: those kind of things. A lot of people have just

833
00:40:01,400 --> 00:40:04,359
Speaker 7: realized that this is really the only way left, good, bad,

834
00:40:04,440 --> 00:40:06,000
Speaker 7: or indifferent that I'm going to be able to put

835
00:40:06,040 --> 00:40:08,279
Speaker 7: money away for myself. So I better kind of catch

836
00:40:08,320 --> 00:40:11,319
Speaker 7: up and start learning about it. Yeah, this is a

837
00:40:11,320 --> 00:40:11,719
Speaker 7: good thing.

838
00:40:11,800 --> 00:40:13,800
Speaker 4: I mean, I think this means folks are starting to

839
00:40:13,840 --> 00:40:16,920
Speaker 4: run budgets and hopefully put some financial plans together. And

840
00:40:17,000 --> 00:40:20,280
Speaker 4: as you've already pointed out, I mean for most people,

841
00:40:20,920 --> 00:40:24,719
Speaker 4: these pension plans are gone forever, so you got to

842
00:40:24,760 --> 00:40:26,319
Speaker 4: do it on your own. You got to build up

843
00:40:26,360 --> 00:40:28,560
Speaker 4: something to supplement social security.

844
00:40:28,719 --> 00:40:30,480
Speaker 5: So yeah, people are.

845
00:40:30,360 --> 00:40:32,440
Speaker 4: Having you know, it sounds like a little bit of

846
00:40:32,480 --> 00:40:36,720
Speaker 4: excess money, discretionary income after their four oh one K contributions,

847
00:40:36,760 --> 00:40:38,800
Speaker 4: and they're putting it into taxable accounts.

848
00:40:39,480 --> 00:40:42,760
Speaker 5: Here's just one not watch out, but just a little advice.

849
00:40:42,920 --> 00:40:46,200
Speaker 4: Make sure after this big run up in stocks that

850
00:40:46,400 --> 00:40:49,960
Speaker 4: you're not getting too speculative with these accounts and making

851
00:40:49,960 --> 00:40:51,960
Speaker 4: sure you review them because a lot of times some

852
00:40:52,320 --> 00:40:56,120
Speaker 4: especially with these smaller balance accounts. Brian, people could treat

853
00:40:56,120 --> 00:40:58,720
Speaker 4: it kind of as monopoly money, you know, get into

854
00:40:58,880 --> 00:41:03,239
Speaker 4: crypto speculation of tech stocks, biotech stocks, and just make

855
00:41:03,320 --> 00:41:06,680
Speaker 4: sure that you're not gambling with these accounts. You're actually

856
00:41:06,719 --> 00:41:10,560
Speaker 4: inventing them in a tax efficient manner, and so that

857
00:41:10,640 --> 00:41:13,000
Speaker 4: money's really going to be there, hopefully for the reason

858
00:41:13,040 --> 00:41:15,120
Speaker 4: you put it there in the first place, and that's

859
00:41:15,160 --> 00:41:16,839
Speaker 4: income replacement down the road.

860
00:41:17,400 --> 00:41:18,439
Speaker 5: Thanks for listening tonight.

861
00:41:18,480 --> 00:41:20,680
Speaker 4: You've been listening to Simply Money, presented by all Worth

862
00:41:20,680 --> 00:41:25,360
Speaker 4: Financial on fifty five KRC, the talk station, Mark Levin.

863
00:41:25,760 --> 00:41:28,640
Speaker 9: Let me tell you, so the Internet is breeding evil,

864
00:41:28,840 --> 00:41:29,920
Speaker 9: breeding evil.

865
00:41:29,680 --> 00:41:31,680
Speaker 5: And TikTok is the main culprit.

866
00:41:31,800 --> 00:41:33,920
Speaker 9: And I don't know what's happening with TikTok, but that

867
00:41:34,000 --> 00:41:36,160
Speaker 9: damn thing needs to be sold now and it needs

868
00:41:36,239 --> 00:41:37,759
Speaker 9: to be cleaned up. And I don't want to hear

869
00:41:37,800 --> 00:41:40,960
Speaker 9: about free speech and everything else. It's a private company.

870
00:41:41,080 --> 00:41:43,480
Speaker 9: The company needs to clean it up because this is

871
00:41:43,560 --> 00:41:46,719
Speaker 9: crazy between the communist Chinese and all the crap that

872
00:41:46,800 --> 00:41:48,000
Speaker 9: people put on this stuff.

873
00:41:48,040 --> 00:41:51,760
Speaker 3: Mark Levin tonight at ten oh six on fifty five KRC,

874
00:41:52,160 --> 00:41:52,759
Speaker 3: the talk

875
00:41:52,840 --> 00:41:55,240
Speaker 2: Station Diabetes, high blood pressure