1 00:00:08,000 --> 00:00:13,960 Speaker 1: Tonight, same wealth, different worries. What a large portfolio really 2 00:00:14,000 --> 00:00:18,080 Speaker 1: means for three very different people. This is simply money 3 00:00:18,079 --> 00:00:20,760 Speaker 1: presented by all Worth Financial. I'm Bob Sponsorer along with 4 00:00:20,840 --> 00:00:25,360 Speaker 1: Brian James. Just imagine it's Saturday morning and three folks 5 00:00:25,400 --> 00:00:30,280 Speaker 1: slide into a corner booth grabbing breakfasts, each with around 6 00:00:30,320 --> 00:00:33,239 Speaker 1: three million dollars to their name. We know that's not 7 00:00:33,440 --> 00:00:36,320 Speaker 1: kind of fly private, kind of rich, but rich enough. 8 00:00:36,440 --> 00:00:40,400 Speaker 1: The good decisions now could mean a very comfortable retirement 9 00:00:41,120 --> 00:00:44,440 Speaker 1: or Brian potentially a stressful one. It all comes down 10 00:00:44,440 --> 00:00:47,360 Speaker 1: to how you handle that money. Let's get into who 11 00:00:47,400 --> 00:00:50,559 Speaker 1: these people are and the things that they are thinking 12 00:00:50,600 --> 00:00:51,480 Speaker 1: and wondering about. 13 00:00:52,360 --> 00:00:53,760 Speaker 2: Well, Bobby distracted me there. 14 00:00:53,760 --> 00:00:56,600 Speaker 3: It's Saturday morning and it sounds like these folks are 15 00:00:56,600 --> 00:00:58,760 Speaker 3: going to breakfast, so I'm thinking about bacon and eggs, 16 00:00:58,760 --> 00:01:00,480 Speaker 3: and I know the word nest egg is going to 17 00:01:00,480 --> 00:01:02,080 Speaker 3: appear in this. So now I'm hungry, and I forgot 18 00:01:02,120 --> 00:01:04,240 Speaker 3: what we're talking about. I'm hallucinating that I'm up at 19 00:01:04,280 --> 00:01:06,759 Speaker 3: Hides in Hamilton or something having an awesome, greasy spoon 20 00:01:06,840 --> 00:01:09,840 Speaker 3: type breakfast. Anyway, Okay, so one side of the booth here, 21 00:01:09,840 --> 00:01:12,679 Speaker 3: there's Jim. He's sixty six and he's retired a couple 22 00:01:12,760 --> 00:01:14,919 Speaker 3: million dollars a little more than that in a rollover IRA, 23 00:01:15,040 --> 00:01:16,880 Speaker 3: because he was always working for the man somewhere you 24 00:01:17,040 --> 00:01:19,080 Speaker 3: working for somebody else, putting money away on his own. 25 00:01:19,280 --> 00:01:22,559 Speaker 3: He's got some leftover deferred compensation and about eight hundred 26 00:01:22,600 --> 00:01:25,040 Speaker 3: thousand dollars in a joint broker'e account with his wife, 27 00:01:25,080 --> 00:01:27,520 Speaker 3: just some taxable dollars, not IRA, not raroth, that kind 28 00:01:27,560 --> 00:01:30,640 Speaker 3: of thing. Also just turned on that Social Security s 29 00:01:30,640 --> 00:01:32,920 Speaker 3: figot and he's got to make that nest egg last 30 00:01:32,959 --> 00:01:35,000 Speaker 3: thirty years eggs extract it again. 31 00:01:35,560 --> 00:01:38,600 Speaker 2: But who else is in this booth, Bob Marie? 32 00:01:39,360 --> 00:01:42,720 Speaker 1: Next to him, I guess. In the adjacent booth is Maria. 33 00:01:42,880 --> 00:01:46,839 Speaker 1: She's fifty eight. She owns a successful landscaping company. She's 34 00:01:46,840 --> 00:01:49,240 Speaker 1: just got an offer to sell her business for two 35 00:01:49,280 --> 00:01:51,800 Speaker 1: and a half million dollars with an urnout tied to 36 00:01:51,960 --> 00:01:56,680 Speaker 1: next year's revenue. So she's still working, but she's suddenly 37 00:01:56,760 --> 00:01:59,880 Speaker 1: staring down the barrel of a very big liquidity of it. 38 00:02:00,760 --> 00:02:04,040 Speaker 1: And then across from them is this guy. Sounds like 39 00:02:04,080 --> 00:02:07,080 Speaker 1: a lot of fun. Chris. He's forty two. He got 40 00:02:07,160 --> 00:02:10,880 Speaker 1: money the old fashioned way. He inherited it. He inherited 41 00:02:10,919 --> 00:02:13,480 Speaker 1: a little over three million dollars from his mother, who 42 00:02:13,560 --> 00:02:17,320 Speaker 1: was a savvy real estate investor. He's got some passive 43 00:02:17,320 --> 00:02:21,799 Speaker 1: income from rentals, No W two job, He's just hanging out, 44 00:02:21,880 --> 00:02:25,000 Speaker 1: living life, and he has a mild addiction to flipping 45 00:02:25,080 --> 00:02:29,760 Speaker 1: options and reading Twitter threads about macro economics. Brian, my 46 00:02:29,880 --> 00:02:33,399 Speaker 1: guest is Chris owns an xbox, and he's really good 47 00:02:33,400 --> 00:02:34,519 Speaker 1: at call of duty too. 48 00:02:35,000 --> 00:02:37,880 Speaker 3: So I'm really curious, Bob, about how these three people 49 00:02:37,919 --> 00:02:40,320 Speaker 3: came across each other and how they decided that this 50 00:02:40,400 --> 00:02:43,040 Speaker 3: is the breakfast click for the next rest of their lives. 51 00:02:43,080 --> 00:02:44,959 Speaker 3: But but anyway, I want I wanted to kind of 52 00:02:45,000 --> 00:02:46,600 Speaker 3: point out here the way we've described this. We've got 53 00:02:46,639 --> 00:02:48,560 Speaker 3: one person who spent a long term career, maybe like 54 00:02:48,600 --> 00:02:50,680 Speaker 3: a fortune five hundred type company, put money in his 55 00:02:50,720 --> 00:02:52,600 Speaker 3: four O one K that's where his wealth is. Another 56 00:02:52,680 --> 00:02:55,800 Speaker 3: person built her own business very successful, but didn't have 57 00:02:55,840 --> 00:02:58,120 Speaker 3: a whole lot of liquidity until she got this offer. 58 00:02:58,200 --> 00:02:59,639 Speaker 3: You know, it's one thing to say I own a 59 00:02:59,639 --> 00:03:01,360 Speaker 3: piece of I own a business that is on a 60 00:03:01,360 --> 00:03:03,320 Speaker 3: piece of paper and it's worth X amount of money, 61 00:03:03,720 --> 00:03:05,280 Speaker 3: but it's another to be able to say I can 62 00:03:05,280 --> 00:03:07,200 Speaker 3: pull out five thousand bucks out of that and go 63 00:03:07,240 --> 00:03:08,440 Speaker 3: buy you know, whatever I want. 64 00:03:08,600 --> 00:03:10,960 Speaker 2: She wasn't liquid, so that money kind of fell out 65 00:03:10,960 --> 00:03:11,360 Speaker 2: of the sky. 66 00:03:11,919 --> 00:03:14,680 Speaker 3: But she has her elbow grease all up in that 67 00:03:14,760 --> 00:03:16,959 Speaker 3: business because that's where it came from. Nothing because she 68 00:03:17,000 --> 00:03:18,760 Speaker 3: built it. Chris, on the other hand, could be a 69 00:03:18,760 --> 00:03:21,280 Speaker 3: great guy, and there's we're being a little snotty here 70 00:03:21,280 --> 00:03:23,760 Speaker 3: about him, but this does happen to people. He did 71 00:03:23,800 --> 00:03:25,959 Speaker 3: not have to build this. It came from his mother, 72 00:03:26,320 --> 00:03:28,200 Speaker 3: and so he's got a lot of flexibility. These are 73 00:03:28,200 --> 00:03:30,560 Speaker 3: people with very, very very different views on how to 74 00:03:30,560 --> 00:03:32,160 Speaker 3: make decisions on a daily basis. 75 00:03:32,520 --> 00:03:34,800 Speaker 1: All right, I'm going to imagine that that they did 76 00:03:34,840 --> 00:03:38,840 Speaker 1: not come into this, you know, establishment together. They just 77 00:03:38,920 --> 00:03:42,560 Speaker 1: happened to be by themselves, sitting near one another. And 78 00:03:42,640 --> 00:03:45,520 Speaker 1: let's say CNBC is up on the TV and they're 79 00:03:45,560 --> 00:03:47,840 Speaker 1: reading the paper, watching the news, and a couple of 80 00:03:47,880 --> 00:03:51,600 Speaker 1: different scenarios arise. So let's talk about scenario number one, 81 00:03:52,160 --> 00:03:56,440 Speaker 1: a market or economic headline. Jim ombits up the conversation 82 00:03:56,680 --> 00:04:00,560 Speaker 1: with Wow, it looks like inflation cooled again. Maybe finally 83 00:04:00,600 --> 00:04:04,880 Speaker 1: get some rate cuts. So he's sweating withdraws. His portfolio 84 00:04:05,080 --> 00:04:08,800 Speaker 1: lost twelve percent in twenty twenty two. Now he's asking, 85 00:04:09,080 --> 00:04:12,520 Speaker 1: should I delay tapping my IRA and lean more on 86 00:04:12,560 --> 00:04:15,720 Speaker 1: the brokerage account to let that tax deferred money grow? 87 00:04:16,440 --> 00:04:19,960 Speaker 1: What should he be asking, Brian after a twelve percent 88 00:04:20,000 --> 00:04:21,080 Speaker 1: decline in the market. 89 00:04:21,440 --> 00:04:23,920 Speaker 3: Yep, Well, the first thing he shouldn't be asking is 90 00:04:23,920 --> 00:04:26,400 Speaker 3: should I should I run away and hide, go hide, 91 00:04:26,400 --> 00:04:28,960 Speaker 3: and you know, go hide somewhere and protect my dollars. 92 00:04:29,040 --> 00:04:32,799 Speaker 3: That's a terrible idea these downturns, because if you understand 93 00:04:32,839 --> 00:04:35,680 Speaker 3: market history, downturns are actually opportunities. So the questions he 94 00:04:35,760 --> 00:04:38,520 Speaker 3: should be asking, well, you know what, I'm not working anymore, 95 00:04:38,560 --> 00:04:40,480 Speaker 3: so I'm in the lowest bracket I've seen in decades. 96 00:04:40,520 --> 00:04:42,760 Speaker 3: Maybe while the market is in the toilet, maybe I 97 00:04:42,800 --> 00:04:45,360 Speaker 3: should be using some partial roth conversions while I'm in 98 00:04:45,360 --> 00:04:47,960 Speaker 3: this lower bracket. And better yet, I'm doing it at 99 00:04:48,000 --> 00:04:49,520 Speaker 3: a low point of the market. So if I do 100 00:04:49,640 --> 00:04:52,080 Speaker 3: it now, I'm I'm gonna buy the same number of 101 00:04:52,120 --> 00:04:55,280 Speaker 3: shares for a cheaper price, and therefore, when the inevitable 102 00:04:55,320 --> 00:04:58,120 Speaker 3: upswing comes back around, I'm gonna benefit from that and 103 00:04:58,200 --> 00:05:00,480 Speaker 3: it'll all be on the tax free set other question, 104 00:05:00,520 --> 00:05:02,840 Speaker 3: maybe should I move to a bucketing strategy so I'm 105 00:05:02,880 --> 00:05:05,080 Speaker 3: not forced to sell in a down market. This basically 106 00:05:05,080 --> 00:05:07,560 Speaker 3: means identify my expenses, what's coming up in the next 107 00:05:07,560 --> 00:05:10,160 Speaker 3: twelve to twenty four months, carve those dollars out now 108 00:05:10,200 --> 00:05:13,120 Speaker 3: while the market's at a peak, and then then that way, 109 00:05:13,200 --> 00:05:15,520 Speaker 3: I know for a fact I will not be using 110 00:05:15,560 --> 00:05:18,520 Speaker 3: dollars that got hit by an unforeseen market downturn for 111 00:05:18,600 --> 00:05:21,800 Speaker 3: bills I knew were coming to do anyway, all. 112 00:05:21,760 --> 00:05:24,680 Speaker 1: Right, Maria sitting in the adjacent booth, you know, as 113 00:05:24,720 --> 00:05:27,680 Speaker 1: a reminder, she's the landscape business owner who's about to 114 00:05:27,720 --> 00:05:32,160 Speaker 1: sell her business. She you know, spits out. Hey, honestly, 115 00:05:32,240 --> 00:05:34,080 Speaker 1: I don't care about the market. I'm just trying to 116 00:05:34,080 --> 00:05:37,400 Speaker 1: figure out how to avoid giving half of the sale 117 00:05:37,400 --> 00:05:40,240 Speaker 1: of my business to Uncle Sam in taxes. So for her, 118 00:05:40,760 --> 00:05:43,520 Speaker 1: this has nothing to do about timing the stock market. 119 00:05:43,520 --> 00:05:46,520 Speaker 1: It's about timing income. She needs to work with a 120 00:05:46,600 --> 00:05:51,599 Speaker 1: tax advisor immediately on exploring maybe installment sale options, a 121 00:05:51,640 --> 00:05:54,880 Speaker 1: potential four oh one h plan to offsloads some pre 122 00:05:55,000 --> 00:05:59,960 Speaker 1: tax dollars or even use some maybe a charitable remainder trust. 123 00:06:00,080 --> 00:06:03,560 Speaker 1: And then our buddy Chris he hears that whole discussion 124 00:06:03,640 --> 00:06:06,960 Speaker 1: and says interest rates might fall, and he pulls out 125 00:06:06,960 --> 00:06:09,960 Speaker 1: his phone and texts his buddy, Hey, it's time to 126 00:06:09,960 --> 00:06:14,719 Speaker 1: go long Tesla again. He's confusing volatility with opportunity and 127 00:06:14,800 --> 00:06:17,080 Speaker 1: he's going to pile into a high risk stock and 128 00:06:17,120 --> 00:06:20,560 Speaker 1: he's going to risk turning his three million dollars into 129 00:06:20,680 --> 00:06:23,279 Speaker 1: a million and a half by speculating on things. 130 00:06:23,279 --> 00:06:25,839 Speaker 2: Brian, and my question for Chris is where has this 131 00:06:25,880 --> 00:06:26,320 Speaker 2: money been? 132 00:06:26,360 --> 00:06:28,120 Speaker 3: If you're going to buy Tesla again, you know, and 133 00:06:28,240 --> 00:06:30,040 Speaker 3: this isn't a shot at Tesla, it's just like any 134 00:06:30,120 --> 00:06:32,280 Speaker 3: other investment. But was this money sitting in cash or 135 00:06:32,279 --> 00:06:33,960 Speaker 3: are you going to sell something else to raise the 136 00:06:34,000 --> 00:06:36,440 Speaker 3: cash for it? And if if the answer is you've 137 00:06:36,440 --> 00:06:37,760 Speaker 3: been sitting in cash with a lot of it, what 138 00:06:37,760 --> 00:06:39,120 Speaker 3: are you really accomplishing here? 139 00:06:39,279 --> 00:06:39,400 Speaker 1: You know? 140 00:06:39,440 --> 00:06:41,599 Speaker 3: It sounds like we're just kind of wandering around the 141 00:06:41,600 --> 00:06:45,200 Speaker 3: casino hitting the different video poker boards that looks shiny 142 00:06:45,200 --> 00:06:45,800 Speaker 3: and introt. 143 00:06:45,560 --> 00:06:48,359 Speaker 1: Well, he owns a bunch of real estate that he inherited, 144 00:06:48,480 --> 00:06:50,560 Speaker 1: so he's probably going to go take out a huge 145 00:06:51,000 --> 00:06:53,960 Speaker 1: equity loan on the real estate. They can't speculate stocks. 146 00:06:54,040 --> 00:06:55,880 Speaker 2: Yeah, he's got a plan. Well, that's good. It's a plan. 147 00:06:55,920 --> 00:06:56,799 Speaker 2: It's good. We like planning. 148 00:06:56,839 --> 00:06:59,880 Speaker 1: Going all right, let's get into scenario number two, health 149 00:07:00,320 --> 00:07:05,480 Speaker 1: and longevity. The conversation switches to something completely different. Maria 150 00:07:05,640 --> 00:07:08,280 Speaker 1: drops this one. Hey, my mom's been in a memory 151 00:07:08,279 --> 00:07:12,040 Speaker 1: care facility for two years and we're paying nine thousand 152 00:07:12,120 --> 00:07:16,560 Speaker 1: dollars a month. Wow, makes you think. Jim nods, he's 153 00:07:16,640 --> 00:07:20,520 Speaker 1: healthy but just lost a friend to Parkinson's. He's wondering 154 00:07:20,560 --> 00:07:23,320 Speaker 1: if he should lock in some long term care insurance 155 00:07:23,480 --> 00:07:26,440 Speaker 1: now or if it's already too late to do that. 156 00:07:26,640 --> 00:07:29,560 Speaker 1: And Chris he just shrugs. He says, maybe I'll just 157 00:07:29,720 --> 00:07:32,920 Speaker 1: move to a cheaper country if I need care. He 158 00:07:33,000 --> 00:07:36,800 Speaker 1: hasn't even priced out Medicare premiums to say you know 159 00:07:36,880 --> 00:07:40,960 Speaker 1: nothing of long term care or realize that real estate 160 00:07:41,360 --> 00:07:42,680 Speaker 1: isn't a healthcare plan. 161 00:07:43,160 --> 00:07:44,800 Speaker 3: So I'm going to divide these in So let's talk 162 00:07:44,800 --> 00:07:46,480 Speaker 3: about Maria and Jim, who I think live in the 163 00:07:46,520 --> 00:07:51,320 Speaker 3: real world. So Jim mentions Parkinson's and memory care as well. 164 00:07:51,520 --> 00:07:53,720 Speaker 3: This is these are really the terrifying things if you're 165 00:07:53,720 --> 00:07:55,400 Speaker 3: thinking about long term care, if you've built them some 166 00:07:55,440 --> 00:07:57,840 Speaker 3: assets and you're worried about long term care. First of all, 167 00:07:57,840 --> 00:08:00,280 Speaker 3: before you panic about it, think about what that expence 168 00:08:00,400 --> 00:08:02,560 Speaker 3: actually really truly is that nine thousand a month? 169 00:08:02,600 --> 00:08:03,080 Speaker 2: That's real? 170 00:08:03,760 --> 00:08:07,720 Speaker 3: But again, if you're in a traditional long term care stay, 171 00:08:07,760 --> 00:08:10,200 Speaker 3: a typical one is really we're talking end of life care. 172 00:08:10,280 --> 00:08:11,760 Speaker 3: So that's more of a like a two and a 173 00:08:11,800 --> 00:08:14,600 Speaker 3: half year's day maybe three. And you know you might 174 00:08:14,640 --> 00:08:16,720 Speaker 3: need three hundred, three hundred fifty thousand dollars for that. 175 00:08:16,720 --> 00:08:19,360 Speaker 3: That's a chunk. But remember it's not on top of 176 00:08:19,400 --> 00:08:20,520 Speaker 3: your living expenses. 177 00:08:20,560 --> 00:08:20,680 Speaker 1: Right. 178 00:08:21,080 --> 00:08:21,880 Speaker 2: That means if you're. 179 00:08:21,800 --> 00:08:24,600 Speaker 3: In a situation you're not going to the grocery store anymore. 180 00:08:24,600 --> 00:08:26,280 Speaker 3: Maybe there's not even a mortgage, right, you might have 181 00:08:26,320 --> 00:08:28,840 Speaker 3: sold the house because of this situation. You've still got 182 00:08:28,840 --> 00:08:31,120 Speaker 3: your Social Security go, got your income sources, but you're 183 00:08:31,120 --> 00:08:33,240 Speaker 3: not traveling anymore. So it's not three hundred and fifty 184 00:08:33,280 --> 00:08:34,760 Speaker 3: thousand dollars on top of something else. 185 00:08:35,000 --> 00:08:36,160 Speaker 2: That's the typical stay. 186 00:08:36,360 --> 00:08:38,520 Speaker 3: But what these two folks are kicking around is the 187 00:08:38,600 --> 00:08:42,400 Speaker 3: memory care types of issues. You're Alzheimer's, Parkinson's, Huntington's types 188 00:08:42,400 --> 00:08:44,760 Speaker 3: of issues. Those stays can be more like eight to 189 00:08:44,760 --> 00:08:48,760 Speaker 3: ten years, and the individual person can be completely physically 190 00:08:48,800 --> 00:08:51,079 Speaker 3: healthy but still needs around the clock twenty four to 191 00:08:51,160 --> 00:08:53,800 Speaker 3: seven care. Have a client whose spouse went through this 192 00:08:53,880 --> 00:08:56,040 Speaker 3: in her late fifties and had to be moved to 193 00:08:56,040 --> 00:09:00,079 Speaker 3: a memory facility, and frequently she gets asked questions it 194 00:09:00,400 --> 00:09:02,400 Speaker 3: would be related to somebody who works there because she 195 00:09:02,480 --> 00:09:05,199 Speaker 3: looks like an employee, but she's actually a residents. 196 00:09:05,240 --> 00:09:08,080 Speaker 2: A really, really, really sad story because of. 197 00:09:07,080 --> 00:09:09,720 Speaker 3: The brief amounts of time that she is not lucid, 198 00:09:09,760 --> 00:09:11,480 Speaker 3: she has to have around the clock care. 199 00:09:11,920 --> 00:09:14,559 Speaker 2: Chris, on the other hand, go ahead, Bob, Sorry. 200 00:09:14,360 --> 00:09:16,480 Speaker 1: No, you go ahead. I want to know what your 201 00:09:16,520 --> 00:09:17,440 Speaker 1: advice for Chris. 202 00:09:18,840 --> 00:09:21,120 Speaker 3: Well, Marie and Jim, they got real issues and hopefully 203 00:09:21,200 --> 00:09:22,840 Speaker 3: some of that is helpful to them. Chris, on the 204 00:09:22,840 --> 00:09:25,280 Speaker 3: other hand, does not live on this planet. I love 205 00:09:25,320 --> 00:09:27,920 Speaker 3: his comment of I'll just move to a cheaper country 206 00:09:27,960 --> 00:09:31,240 Speaker 3: if I need care. In other words, after something bad happens, 207 00:09:31,360 --> 00:09:33,520 Speaker 3: he's going to pack up his house and then move 208 00:09:33,559 --> 00:09:35,480 Speaker 3: out of the country because that's how easy it is. 209 00:09:35,760 --> 00:09:38,120 Speaker 3: And you know, these other countries just throw their doors 210 00:09:38,160 --> 00:09:41,480 Speaker 3: open to Americans who want cheap healthcare. It's just that simple, Chris. 211 00:09:41,559 --> 00:09:44,480 Speaker 3: I really want to hear where Chris lands in thirty forty. 212 00:09:44,760 --> 00:09:47,920 Speaker 1: All right, let's switch it up here and scenario number three. 213 00:09:47,960 --> 00:09:50,360 Speaker 1: We'll deal with the same three people a little bit 214 00:09:50,480 --> 00:09:53,880 Speaker 1: different scenario. And the scenario this time is we're in 215 00:09:53,920 --> 00:09:57,679 Speaker 1: the midst of a big market downturn. The market's just cratering. 216 00:09:58,320 --> 00:10:00,440 Speaker 1: Jim takes a sip of coffee and says, this is 217 00:10:00,520 --> 00:10:03,840 Speaker 1: exactly what I was afraid of. I've only been retired 218 00:10:03,880 --> 00:10:06,240 Speaker 1: for a year and now I'm down two hundred and 219 00:10:06,240 --> 00:10:10,640 Speaker 1: fifty thousand dollars. He's experiencing what we all call sequence 220 00:10:10,640 --> 00:10:14,400 Speaker 1: of return risk. The market's down right. As he's starting 221 00:10:14,440 --> 00:10:18,960 Speaker 1: to take withdraws, his first instinct pull back on spending 222 00:10:19,000 --> 00:10:23,199 Speaker 1: and move everything to cash, bail on everything. What should 223 00:10:23,280 --> 00:10:25,960 Speaker 1: he do or should he have done well? He needs 224 00:10:25,960 --> 00:10:28,319 Speaker 1: to be checking with his advisor if he has one, 225 00:10:28,400 --> 00:10:31,240 Speaker 1: to set up a bucket strategy so he's not selling 226 00:10:31,320 --> 00:10:35,040 Speaker 1: stocks when they're down. Possibly lean on his brokerage account 227 00:10:35,120 --> 00:10:38,280 Speaker 1: or cash buffer to fill in those short term spending 228 00:10:38,320 --> 00:10:41,559 Speaker 1: needs so he can leave his long term capital invested 229 00:10:41,600 --> 00:10:45,360 Speaker 1: for the long term. Because, let's face it, Brian, almost 230 00:10:45,400 --> 00:10:48,200 Speaker 1: all the time, if you give money three years to 231 00:10:48,240 --> 00:10:51,120 Speaker 1: recover in the market, it usually always does. But you 232 00:10:51,280 --> 00:10:56,079 Speaker 1: gotta have some money ear marked for even significant short 233 00:10:56,120 --> 00:10:57,360 Speaker 1: term market volatility. 234 00:10:57,920 --> 00:11:00,640 Speaker 3: Yeah, anytime the market's out a high, that basically just 235 00:11:00,760 --> 00:11:03,920 Speaker 3: proves that any moves that were made to react or 236 00:11:03,960 --> 00:11:06,440 Speaker 3: to try to protect from a downturn were the wrong ones, 237 00:11:06,480 --> 00:11:08,480 Speaker 3: because the answer is just leave it alone and it'll 238 00:11:08,679 --> 00:11:10,559 Speaker 3: the pendulum will swing back the other direction. 239 00:11:10,960 --> 00:11:12,920 Speaker 2: So, you know, let's move on to Maria here. She's 240 00:11:12,920 --> 00:11:13,360 Speaker 2: still working. 241 00:11:13,440 --> 00:11:15,680 Speaker 3: She hasn't sold that business yet, but she's definitely talking 242 00:11:15,679 --> 00:11:18,520 Speaker 3: to accountants and getting valuations, and now she's wondering if 243 00:11:18,520 --> 00:11:21,720 Speaker 3: she should delay that sale to a landscaping company. Landscaping 244 00:11:21,760 --> 00:11:24,840 Speaker 3: isn't exactly vital to the functioning of a business. It's 245 00:11:24,880 --> 00:11:27,520 Speaker 3: a nice to have for a well run company, but 246 00:11:27,559 --> 00:11:29,840 Speaker 3: when we go through a two thousand and eight, nobody's 247 00:11:29,880 --> 00:11:31,679 Speaker 3: gonna be really worried about the bushes out in the 248 00:11:31,720 --> 00:11:32,640 Speaker 3: parking lot out there. 249 00:11:33,040 --> 00:11:33,800 Speaker 2: So she's concerned. 250 00:11:33,840 --> 00:11:35,960 Speaker 3: Maybe that makes her company worth less and she's going 251 00:11:36,000 --> 00:11:37,600 Speaker 3: to have to tough it out a little more. Her 252 00:11:37,679 --> 00:11:40,160 Speaker 3: risk isn't in the market yet, it's in her own business. 253 00:11:40,160 --> 00:11:42,400 Speaker 3: It's in the timing and the structure of that sale. 254 00:11:42,559 --> 00:11:44,600 Speaker 3: So the right move is to look at installment sale 255 00:11:44,640 --> 00:11:48,040 Speaker 3: options and spread that tax impact out and more importantly, 256 00:11:48,080 --> 00:11:50,880 Speaker 3: stress test that post sale portfolio. Hopefully she's already got 257 00:11:50,880 --> 00:11:52,719 Speaker 3: a financial plan. Now she can say, all right, I 258 00:11:52,760 --> 00:11:53,920 Speaker 3: thought I was going to sell this for two and 259 00:11:53,960 --> 00:11:55,880 Speaker 3: a half million. What if it only goes for two 260 00:11:56,200 --> 00:11:59,200 Speaker 3: can I still sell? And if the case is yes, 261 00:11:59,360 --> 00:12:01,640 Speaker 3: the next question is will I be happy with what 262 00:12:01,679 --> 00:12:03,720 Speaker 3: that light, with the lifestyle that that will provide you? 263 00:12:04,120 --> 00:12:07,280 Speaker 1: All right? And then let's not forget about Chris markets 264 00:12:07,400 --> 00:12:12,520 Speaker 1: down huge. Chris is scrolling Twitter huge buying opportunity, says, 265 00:12:12,559 --> 00:12:16,840 Speaker 1: I'm loading up on small cap AI stocks and bitcoin ETFs. 266 00:12:17,240 --> 00:12:21,320 Speaker 1: He's making the classic mistake reacting just by what looking 267 00:12:21,360 --> 00:12:25,360 Speaker 1: at charts of things that have actually absolutely cratered and 268 00:12:25,440 --> 00:12:27,800 Speaker 1: assuming he's going to make the deal of the century, 269 00:12:27,840 --> 00:12:30,200 Speaker 1: the buy of the century, and just pile in and 270 00:12:30,240 --> 00:12:33,800 Speaker 1: make a ton of money. That's a recipe for potentially 271 00:12:33,880 --> 00:12:37,520 Speaker 1: turning his three million dollars into a million pretty darn quick. 272 00:12:38,040 --> 00:12:41,200 Speaker 1: Here's the all with advice. Your wealth story is unique. 273 00:12:41,240 --> 00:12:43,800 Speaker 1: That's the whole point of these stories. Your wealth story 274 00:12:43,880 --> 00:12:48,240 Speaker 1: is unique, so your financial plan should be as well. 275 00:12:48,920 --> 00:12:51,720 Speaker 1: Coming up next, what two hundred years of global data 276 00:12:51,840 --> 00:12:55,760 Speaker 1: means for your portfolio? Plus the man who proves that 277 00:12:55,800 --> 00:12:59,320 Speaker 1: you are never too old to have an absolutely great 278 00:12:59,720 --> 00:13:02,600 Speaker 1: quality of life. You're listening to Simply Money presented by 279 00:13:02,640 --> 00:13:06,040 Speaker 1: all Worth Financial on fifty five KRC the talk station. 280 00:13:10,720 --> 00:13:13,360 Speaker 1: You're listening to Simply Money presented by Allworth Financial on 281 00:13:13,480 --> 00:13:16,880 Speaker 1: Bob Sponseller along with Brian James straight Ahead of six 282 00:13:17,000 --> 00:13:21,720 Speaker 1: forty three real questions from Simply Money listeners about family, property, 283 00:13:22,080 --> 00:13:27,839 Speaker 1: business sales, charitable giving and more. A recent global data 284 00:13:27,920 --> 00:13:31,520 Speaker 1: dive from Deutsche Bank shows some powerful results for staying 285 00:13:31,640 --> 00:13:36,280 Speaker 1: fully invested in equities. The bank gathered a massive data 286 00:13:36,320 --> 00:13:40,280 Speaker 1: set two hundred plus years of history stocks in fifty 287 00:13:40,320 --> 00:13:45,720 Speaker 1: six different countries, multiple business cycles, war depressions, the whole 288 00:13:45,760 --> 00:13:49,200 Speaker 1: ball of wax, and the key findings over a twenty 289 00:13:49,240 --> 00:13:52,520 Speaker 1: five year holding periods. All twenty five year holding periods, 290 00:13:52,559 --> 00:13:57,640 Speaker 1: stocks underperformed cash under the mattress literally cash cash that's 291 00:13:57,679 --> 00:14:01,840 Speaker 1: not earning interest only zero point eight percent of the 292 00:14:01,920 --> 00:14:05,720 Speaker 1: time in nominal terms. Brian. That is the you know 293 00:14:05,960 --> 00:14:09,400 Speaker 1: case and point benefit of time in the market, not 294 00:14:09,559 --> 00:14:10,120 Speaker 1: timing the. 295 00:14:10,080 --> 00:14:14,960 Speaker 3: Market, sojust for inflation you know, real terms. The underperformance 296 00:14:15,040 --> 00:14:17,520 Speaker 3: rate over twenty five years rises, but still only about 297 00:14:17,559 --> 00:14:18,920 Speaker 3: seven and a half percent of the time. 298 00:14:19,240 --> 00:14:21,480 Speaker 2: These shorter time horizons are much more volatile. 299 00:14:21,480 --> 00:14:24,240 Speaker 3: Over five year windows, stocks have declined in nominal terms 300 00:14:24,240 --> 00:14:26,760 Speaker 3: about thirteen percent of the time. That means they've gone 301 00:14:26,800 --> 00:14:29,240 Speaker 3: up eighty seven percent of the time. But so, why 302 00:14:29,240 --> 00:14:31,120 Speaker 3: are we talking about this, Bob? What does this suggest 303 00:14:31,400 --> 00:14:34,360 Speaker 3: If you got a long term, long term time horizon, 304 00:14:34,440 --> 00:14:37,920 Speaker 3: committing to equities significantly reduces the risk of ending up 305 00:14:37,960 --> 00:14:40,520 Speaker 3: behind the cash or a low yield alternative. 306 00:14:41,680 --> 00:14:44,520 Speaker 1: Yeah, all right, if there was ever an example, I 307 00:14:44,600 --> 00:14:46,880 Speaker 1: love this story. If there was ever an example of 308 00:14:46,920 --> 00:14:51,080 Speaker 1: how staying busy can impact your quality of life, even 309 00:14:51,280 --> 00:14:54,560 Speaker 1: very late in life. There's a story out of Japan 310 00:14:54,680 --> 00:14:58,360 Speaker 1: that we came across. It's about sushi legend. 311 00:14:58,720 --> 00:15:01,520 Speaker 2: And I'll butcher is I want to hear I want 312 00:15:01,560 --> 00:15:02,240 Speaker 2: to hear say. 313 00:15:02,120 --> 00:15:05,760 Speaker 1: It hero ono? Did I pronounce that correct? Let's go 314 00:15:05,800 --> 00:15:10,200 Speaker 1: with yes, it's spelled j I R. I doubt that 315 00:15:10,280 --> 00:15:16,360 Speaker 1: he pronounces it giro. Anyway, This gentleman just turned one 316 00:15:16,400 --> 00:15:20,120 Speaker 1: hundred years old. He has served the world's dignitaries, and 317 00:15:20,280 --> 00:15:24,640 Speaker 1: his art of sushi was featured in an award winning film. 318 00:15:24,920 --> 00:15:28,680 Speaker 1: In fact, when he turned ninety three, he was recognized 319 00:15:28,680 --> 00:15:32,440 Speaker 1: by the Guinness World Records as the oldest head chef 320 00:15:33,000 --> 00:15:35,800 Speaker 1: of a three Michelin star restaurant. 321 00:15:35,840 --> 00:15:38,880 Speaker 3: Brian, that's like saber metrics of Guinness World Records. That's 322 00:15:38,920 --> 00:15:41,479 Speaker 3: a lot of out points, the lump together in there. 323 00:15:41,680 --> 00:15:43,120 Speaker 1: The moneyball of sushi. 324 00:15:45,120 --> 00:15:47,200 Speaker 2: He is the Billy Bean of the sushi world. 325 00:15:47,320 --> 00:15:49,680 Speaker 3: So anyway, after all these achievements, you know, at the 326 00:15:49,720 --> 00:15:51,600 Speaker 3: age the tender age of one hundred, he says he's 327 00:15:51,640 --> 00:15:52,840 Speaker 3: not ready to fully retire. 328 00:15:53,360 --> 00:15:54,120 Speaker 2: And I'm quoting here. 329 00:15:54,120 --> 00:15:57,560 Speaker 3: I plan to keep going for about five more years, 330 00:15:57,400 --> 00:15:59,920 Speaker 3: as he said as he was marking the Japan has 331 00:15:59,920 --> 00:16:02,280 Speaker 3: a holiday called Respect for the Aged Day, and of 332 00:16:02,280 --> 00:16:05,040 Speaker 3: course he was a highlight there. Gift and a certificate 333 00:16:05,080 --> 00:16:07,200 Speaker 3: ahead of his birthday is what he got there. He says, 334 00:16:07,200 --> 00:16:09,160 Speaker 3: I can no longer come to this restaurant every day, 335 00:16:09,200 --> 00:16:11,320 Speaker 3: but even at one hundred, I try to work if possible. 336 00:16:11,360 --> 00:16:14,080 Speaker 3: I believe the best medicine is to work. Began that 337 00:16:14,120 --> 00:16:17,360 Speaker 3: apprenticeship at age seven. This was a Japanese restaurant of 338 00:16:17,360 --> 00:16:19,760 Speaker 3: a local hotel there and then he moved on to Tokyo, 339 00:16:19,880 --> 00:16:22,080 Speaker 3: became a sushi chef at twenty five, and the rocket 340 00:16:22,120 --> 00:16:24,160 Speaker 3: took off from there. He opened his own restaurant in 341 00:16:24,200 --> 00:16:27,560 Speaker 3: nineteen sixty five, so he's devoted to what he serves 342 00:16:27,560 --> 00:16:30,280 Speaker 3: to his regular clients. He's even turned down Bob. He's 343 00:16:30,320 --> 00:16:33,160 Speaker 3: turned down the Japanese government officials. They once called to 344 00:16:33,160 --> 00:16:36,120 Speaker 3: make a reservation for Barack Obama in shinzo Abe back 345 00:16:36,120 --> 00:16:38,080 Speaker 3: in twenty fourteen, and he said, Nope, don't have time 346 00:16:38,120 --> 00:16:40,600 Speaker 3: for you can't deliver at the level that I normally would, 347 00:16:40,720 --> 00:16:42,280 Speaker 3: so you'll have to find another time. 348 00:16:42,400 --> 00:16:43,600 Speaker 2: President and Prime Minister. 349 00:16:44,200 --> 00:16:46,720 Speaker 1: Well, but what I love about this story, to be 350 00:16:46,840 --> 00:16:48,960 Speaker 1: real serious about it, is even at the age of 351 00:16:49,000 --> 00:16:52,920 Speaker 1: one hundred, he is still mapping out the next chapter 352 00:16:53,040 --> 00:16:55,360 Speaker 1: of his life. He's not quitting. He's not sitting in 353 00:16:55,360 --> 00:16:58,440 Speaker 1: a rocking chair. He can't do everything with the level 354 00:16:58,480 --> 00:17:01,560 Speaker 1: of excellence that he did for decades, but he can 355 00:17:01,600 --> 00:17:05,120 Speaker 1: still do something, and he's still passionate about what he's doing, 356 00:17:05,160 --> 00:17:07,960 Speaker 1: and he's very good at it. People recognize that, and 357 00:17:08,000 --> 00:17:10,840 Speaker 1: they're still asking him, you know, to do some pretty 358 00:17:10,840 --> 00:17:14,080 Speaker 1: special things because of his commitment to his craft. 359 00:17:14,240 --> 00:17:17,560 Speaker 2: I love it all right, every Sunday, no, go ahead. Yeah, 360 00:17:17,720 --> 00:17:18,360 Speaker 2: we all. 361 00:17:18,160 --> 00:17:20,239 Speaker 3: Reach that point where at age one hundred, we are 362 00:17:20,280 --> 00:17:23,119 Speaker 3: so happy doing whatever is that we're doing that that 363 00:17:23,200 --> 00:17:24,919 Speaker 3: we can still kind of look forward to the future. 364 00:17:25,400 --> 00:17:28,360 Speaker 1: Brian, if I'm still alive at that time, when you're 365 00:17:28,359 --> 00:17:30,760 Speaker 1: one hundred and five, I'm gonna be calling you to 366 00:17:30,960 --> 00:17:35,440 Speaker 1: help ask for help in calculating my wroth conversion strategy. 367 00:17:35,480 --> 00:17:37,000 Speaker 2: Will you be there, will make. 368 00:17:36,880 --> 00:17:37,679 Speaker 1: Sure you help me? 369 00:17:39,000 --> 00:17:40,760 Speaker 2: Well, see, I might be retired by that point. 370 00:17:42,280 --> 00:17:44,640 Speaker 1: All right. Every Sunday you will find our all Worth 371 00:17:44,720 --> 00:17:49,159 Speaker 1: advice in the Cincinnati Inquiry. Here's a preview. Andy and 372 00:17:50,080 --> 00:17:53,520 Speaker 1: Julia in Green Township. Brian, I'm gonna hand you this 373 00:17:53,680 --> 00:17:58,520 Speaker 1: ball of twine to unwind. They say. We are both 374 00:17:58,600 --> 00:18:02,240 Speaker 1: former divorcees and our fifties, who recently got married, and 375 00:18:02,280 --> 00:18:06,280 Speaker 1: we both have grown children from our previous marriages. Together, 376 00:18:06,680 --> 00:18:09,520 Speaker 1: we're fortunate enough to have a nice amount of savings 377 00:18:09,520 --> 00:18:12,960 Speaker 1: and investments worth a little over a million dollars. Brought 378 00:18:12,960 --> 00:18:16,200 Speaker 1: in any advice for how to set up an estate plan? 379 00:18:16,440 --> 00:18:18,200 Speaker 2: Yeah, and this is when we're being a little facetious. 380 00:18:18,240 --> 00:18:19,960 Speaker 3: This is just this is just a ball of reality. 381 00:18:20,000 --> 00:18:22,280 Speaker 3: Lots of people are in this situation and it is complicated. 382 00:18:22,320 --> 00:18:24,240 Speaker 3: Matter of fact, I just had a meeting yesterday with 383 00:18:24,600 --> 00:18:28,040 Speaker 3: a situation like this, here's the danger. So we're bored 384 00:18:28,040 --> 00:18:30,760 Speaker 3: in both former divorcees. They've each got their own children. 385 00:18:30,800 --> 00:18:32,240 Speaker 3: So this is what we call them the business a 386 00:18:32,359 --> 00:18:35,679 Speaker 3: Brady Bunch type situation, his kids, her kids. And you 387 00:18:35,720 --> 00:18:37,960 Speaker 3: want to think, well, okay, so we're married, now, we 388 00:18:38,000 --> 00:18:40,080 Speaker 3: love each other, and you're gonna if I die, you're 389 00:18:40,080 --> 00:18:41,760 Speaker 3: gonna get my assets and I'm gonna get yours, and 390 00:18:41,800 --> 00:18:44,040 Speaker 3: that's the end of it. Well what can happen there? 391 00:18:44,080 --> 00:18:48,960 Speaker 3: Of Frequently what happens is that kids will accidentally be disinherited. 392 00:18:49,000 --> 00:18:49,840 Speaker 2: Because think about this. 393 00:18:50,160 --> 00:18:52,879 Speaker 3: If I, if I bring my own children to this relationship, 394 00:18:52,880 --> 00:18:54,679 Speaker 3: then I'm going to name my new spouse, who is 395 00:18:54,720 --> 00:18:57,880 Speaker 3: not their mother, as my primary beneficiary, and then I'll 396 00:18:57,920 --> 00:19:00,320 Speaker 3: name my children as contingent. That makes all the sense 397 00:19:00,320 --> 00:19:02,800 Speaker 3: in the world, right. Well, what happens is as soon 398 00:19:02,840 --> 00:19:06,240 Speaker 3: as I pass away, those assets become my new wife's 399 00:19:06,600 --> 00:19:09,919 Speaker 3: and the beneficiaries are now my children aren't necessarily in 400 00:19:09,960 --> 00:19:12,240 Speaker 3: the mix. This doesn't mean she or me or I 401 00:19:12,359 --> 00:19:15,240 Speaker 3: consciously eliminated them, just means their names are no longer 402 00:19:15,240 --> 00:19:17,800 Speaker 3: on a piece of paper as a contingent. So I 403 00:19:17,840 --> 00:19:20,200 Speaker 3: would have a conversation this is a discussion I just 404 00:19:20,240 --> 00:19:22,960 Speaker 3: had yesterday. If everybody trusts each other and you really 405 00:19:23,040 --> 00:19:24,879 Speaker 3: kind of think of it as one family, despite the 406 00:19:24,920 --> 00:19:27,400 Speaker 3: fact that is really a Brady Bunch type situation, it's 407 00:19:27,480 --> 00:19:30,800 Speaker 3: okay to say, look, these are our assets. This is 408 00:19:30,800 --> 00:19:33,080 Speaker 3: what happens. You got three kids, I got three kids. 409 00:19:33,119 --> 00:19:36,160 Speaker 3: They're six total. Maybe we simply take this entire pile, 410 00:19:36,480 --> 00:19:39,400 Speaker 3: assign each of these people a percentage, and we list 411 00:19:39,440 --> 00:19:42,600 Speaker 3: those beneficiaries on each and every account. Yes, that means 412 00:19:42,640 --> 00:19:45,919 Speaker 3: that my beneficiaries will somewhat not be my kids, but 413 00:19:46,040 --> 00:19:47,760 Speaker 3: that also comes from the other side of the fence, 414 00:19:47,760 --> 00:19:50,159 Speaker 3: from my new spouse who will have named my children 415 00:19:50,400 --> 00:19:52,680 Speaker 3: as his or her beneficiaries as well. 416 00:19:52,720 --> 00:19:54,159 Speaker 2: So just one way to think about it for a 417 00:19:54,200 --> 00:19:54,919 Speaker 2: trusting family. 418 00:19:56,119 --> 00:20:00,760 Speaker 1: Let's face it, AI is reshaping everything, including how we invest. 419 00:20:01,400 --> 00:20:04,439 Speaker 1: But is there more danger than promise in going it alone. 420 00:20:04,880 --> 00:20:07,720 Speaker 1: We'll show you where AI could help and where it 421 00:20:07,720 --> 00:20:10,800 Speaker 1: could seriously hurt. In this endeavor. You're listening to Simply 422 00:20:10,840 --> 00:20:13,840 Speaker 1: Money presented by all Worth Financial on fifty five KRC 423 00:20:14,359 --> 00:20:22,959 Speaker 1: the talk station. You're listening to Simply Money presented by 424 00:20:23,000 --> 00:20:26,920 Speaker 1: all Worth Financial. I'm Bob Sponseller along with Brian James. Well, 425 00:20:26,920 --> 00:20:29,840 Speaker 1: it's the buzzword of the decade at this point. AI, 426 00:20:30,160 --> 00:20:35,320 Speaker 1: artificial intelligence. It's writing term papers, diagnosing diseases, and even 427 00:20:35,320 --> 00:20:39,280 Speaker 1: composing music. So naturally the question is can I just 428 00:20:39,400 --> 00:20:45,040 Speaker 1: let AI manage all my investments too? It like everything else, Brian, 429 00:20:45,080 --> 00:20:49,120 Speaker 1: it can absolutely enhance the investment process and in many 430 00:20:49,160 --> 00:20:51,960 Speaker 1: ways it already has and already does. I mean, I 431 00:20:52,000 --> 00:20:54,200 Speaker 1: know you and I use AI every day, but let's 432 00:20:54,200 --> 00:20:57,359 Speaker 1: get into let's get into how it's working today and 433 00:20:57,359 --> 00:20:58,880 Speaker 1: then maybe some of the watchouts. 434 00:20:59,040 --> 00:21:00,760 Speaker 3: Yeah, and AI is because I'm a term, kind of 435 00:21:00,800 --> 00:21:03,119 Speaker 3: like the word Kleenex, where there's a bazillion different brands, 436 00:21:03,119 --> 00:21:06,520 Speaker 3: but we all call them Kleenex, so they're different definitions 437 00:21:06,520 --> 00:21:08,639 Speaker 3: to everybody. So for a long time there's been algorithms 438 00:21:08,640 --> 00:21:10,680 Speaker 3: have been involved in investing, and that's kind of sort 439 00:21:10,720 --> 00:21:12,639 Speaker 3: of AI, but it's a little little different branch of it. 440 00:21:12,680 --> 00:21:16,639 Speaker 3: But we use algorithms to help us do tax loss harvesting. 441 00:21:17,000 --> 00:21:19,320 Speaker 3: Scan portfolios every day all the way down to the 442 00:21:19,359 --> 00:21:21,720 Speaker 3: share lot level, so we can spot these opportunities to 443 00:21:21,760 --> 00:21:24,560 Speaker 3: harvest tax losses for clients and help them save. Come 444 00:21:24,560 --> 00:21:28,760 Speaker 3: April fifteenth, also direct indexing platforms also will mimic those 445 00:21:28,760 --> 00:21:32,600 Speaker 3: index funds while offering the same tax advantages alongside the 446 00:21:32,640 --> 00:21:37,040 Speaker 3: same diversification as a plain old index fund. And there's 447 00:21:37,119 --> 00:21:40,520 Speaker 3: risk analysis SOFTWAREES. That's software that stress tests portfolios and 448 00:21:40,560 --> 00:21:43,879 Speaker 3: seconds across hundreds of scenarios. That's not exactly AI, but 449 00:21:43,960 --> 00:21:49,159 Speaker 3: that's more algorithmically oriented. But at the same time, what 450 00:21:49,200 --> 00:21:51,960 Speaker 3: that can do alongside with AI is it helps us 451 00:21:51,960 --> 00:21:54,560 Speaker 3: strip out of motion. So an algorithm doesn't panic when 452 00:21:54,560 --> 00:21:57,280 Speaker 3: the markets drop, doesn't chase hot stocks, it doesn't skip 453 00:21:57,359 --> 00:22:01,119 Speaker 3: contributions because of bad headlines. That's what we're here for 454 00:22:01,200 --> 00:22:04,240 Speaker 3: when our job is to kind of filter out people's 455 00:22:04,240 --> 00:22:07,040 Speaker 3: emotions from their financial plans and make sure that every 456 00:22:07,040 --> 00:22:09,000 Speaker 3: decision we make is with the long term in mind, 457 00:22:09,359 --> 00:22:12,199 Speaker 3: not the shorter term. Algorithms and AI don't really do 458 00:22:12,320 --> 00:22:15,560 Speaker 3: that because they can't they can't really empathize in terms 459 00:22:15,600 --> 00:22:19,120 Speaker 3: of here's how other people have handled similar situations, here's 460 00:22:19,160 --> 00:22:21,399 Speaker 3: why it's important. We need to focus on the long term, 461 00:22:21,480 --> 00:22:24,280 Speaker 3: and here are historical situations that were somewhat similar, so 462 00:22:24,320 --> 00:22:26,119 Speaker 3: we can get an idea of what to expect. I 463 00:22:26,160 --> 00:22:28,120 Speaker 3: haven't seen an AI tool that gets us anywhere close 464 00:22:28,160 --> 00:22:29,919 Speaker 3: to that despite the fact that we have we are 465 00:22:29,920 --> 00:22:31,680 Speaker 3: surrounded by them and I do use them every day. 466 00:22:32,560 --> 00:22:32,760 Speaker 2: Yeah. 467 00:22:32,840 --> 00:22:35,800 Speaker 1: Again, the danger of AI. And it's a wonderful tool, 468 00:22:35,840 --> 00:22:38,480 Speaker 1: don't get me wrong. I mean it is changing every 469 00:22:38,520 --> 00:22:40,920 Speaker 1: industry out there and it will continue to do so. 470 00:22:41,480 --> 00:22:44,800 Speaker 1: But the danger of just using AI in a vacuum 471 00:22:45,520 --> 00:22:48,240 Speaker 1: is frankly, it doesn't know you. It knows a bunch 472 00:22:48,280 --> 00:22:51,560 Speaker 1: of data, It can interpret data very quickly, and it 473 00:22:51,600 --> 00:22:54,520 Speaker 1: does no patterns to your prior point, Brian, But it 474 00:22:54,560 --> 00:22:59,920 Speaker 1: doesn't know your individual goals, your fears, in your life's priorities. 475 00:23:00,200 --> 00:23:02,720 Speaker 1: I look at it like Google Maps. It can show 476 00:23:02,760 --> 00:23:05,760 Speaker 1: you a root, sure, but it doesn't know that you're 477 00:23:05,760 --> 00:23:09,119 Speaker 1: almost out of gas, or that you hate going through tunnels, 478 00:23:09,600 --> 00:23:11,879 Speaker 1: or that your toddler in the back seat is about 479 00:23:11,880 --> 00:23:14,159 Speaker 1: to throw up if the road gets too bumpy. You know, 480 00:23:14,200 --> 00:23:17,240 Speaker 1: it can do a lot of things, interpret a lot 481 00:23:17,240 --> 00:23:21,440 Speaker 1: of data, but it still doesn't know how to interact 482 00:23:21,480 --> 00:23:25,320 Speaker 1: with real time, with real feelings, thoughts and goals, with 483 00:23:25,440 --> 00:23:26,200 Speaker 1: human beings. 484 00:23:26,480 --> 00:23:26,720 Speaker 2: Yeah. 485 00:23:26,720 --> 00:23:28,719 Speaker 3: So let's use an example here. So let's say you're 486 00:23:28,720 --> 00:23:30,399 Speaker 3: going to retire in just a couple of years. Well, 487 00:23:30,440 --> 00:23:32,960 Speaker 3: AI says you should take more risks because your time 488 00:23:33,000 --> 00:23:34,600 Speaker 3: horizon is still long. You can get that out of 489 00:23:34,640 --> 00:23:37,560 Speaker 3: a questionnaire, any random questionaire out of the internet that 490 00:23:37,600 --> 00:23:41,440 Speaker 3: completely ignores your emotional risks. That's simply looking at the math. 491 00:23:42,000 --> 00:23:45,440 Speaker 3: Computers aren't emotional, they're simply mathematic A plus B must 492 00:23:45,480 --> 00:23:48,800 Speaker 3: equal C. That doesn't account for what happens when my 493 00:23:49,119 --> 00:23:51,520 Speaker 3: spouse and I get to an argument at the dinner 494 00:23:51,560 --> 00:23:53,800 Speaker 3: table because the market has taken a hit and maybe 495 00:23:53,800 --> 00:23:56,800 Speaker 3: the two spouses weren't on the same page with regard 496 00:23:56,800 --> 00:23:59,320 Speaker 3: to the risk levels to their portfolio. What happens if 497 00:23:59,320 --> 00:24:01,439 Speaker 3: that twenty percent draw down that is rare, but we 498 00:24:01,480 --> 00:24:03,920 Speaker 3: still see them that twenty percent draw down causes me 499 00:24:03,960 --> 00:24:05,280 Speaker 3: to bail out early. What are we going to do 500 00:24:05,600 --> 00:24:07,960 Speaker 3: if I'm a business owner selling a Compans's say I 501 00:24:08,000 --> 00:24:09,639 Speaker 3: have a business and I'm going to sell that company. Well, 502 00:24:09,680 --> 00:24:12,200 Speaker 3: a smart fiduciary advisor might walk through all kinds of 503 00:24:12,200 --> 00:24:13,440 Speaker 3: different strategies. 504 00:24:13,000 --> 00:24:13,840 Speaker 2: Gifting strategies. 505 00:24:13,840 --> 00:24:16,399 Speaker 3: A state planning tax deferral AI is just going to 506 00:24:16,440 --> 00:24:18,360 Speaker 3: look for a new number and kind of recalculate. It's 507 00:24:18,359 --> 00:24:21,199 Speaker 3: not going to point out all the subtle intricacies of 508 00:24:21,240 --> 00:24:24,720 Speaker 3: your own personal situation and say here's ten strategies. Seven 509 00:24:24,760 --> 00:24:26,720 Speaker 3: of them don't make sense for these reasons. So we've 510 00:24:26,800 --> 00:24:29,199 Speaker 3: narrowed down to these three. Because this is how your 511 00:24:29,240 --> 00:24:32,120 Speaker 3: family operates, and here's how other your businesses all kind 512 00:24:32,119 --> 00:24:32,720 Speaker 3: of work together. 513 00:24:33,320 --> 00:24:35,880 Speaker 1: You're listening to Simply Money, presented by all Worth Financial 514 00:24:35,880 --> 00:24:38,840 Speaker 1: on Bob Sponsller along with Brian James, and I think 515 00:24:38,880 --> 00:24:40,959 Speaker 1: the point you're driving home here really at the end 516 00:24:41,000 --> 00:24:43,439 Speaker 1: of the day, Brian, is we need to talk about 517 00:24:43,440 --> 00:24:48,719 Speaker 1: what good fiduciary advisors bring to the table that AI doesn't. 518 00:24:48,800 --> 00:24:52,280 Speaker 1: And this is where working with a good fiduciary really shines. 519 00:24:52,359 --> 00:24:56,480 Speaker 1: And let's just be real clear, not all advisors are fiduciaries. 520 00:24:56,880 --> 00:25:01,520 Speaker 1: Some are brokers, some are salespeople. If fiduciary advisors are 521 00:25:01,640 --> 00:25:07,040 Speaker 1: legally bound to know you and put your interest first, yep. 522 00:25:06,880 --> 00:25:09,119 Speaker 3: So fiducia advisor is going to help you prioritize the 523 00:25:09,119 --> 00:25:11,399 Speaker 3: goals that matter to you, help you identify them to 524 00:25:11,400 --> 00:25:13,520 Speaker 3: begin with. Right, That's normally where a lot of us 525 00:25:13,600 --> 00:25:15,600 Speaker 3: hide behind the numbers. All I know is they don't 526 00:25:15,600 --> 00:25:17,200 Speaker 3: have enough money. I have no idea how much I need. 527 00:25:17,240 --> 00:25:19,920 Speaker 3: I just know there's not enough. So a finucial advisor 528 00:25:19,960 --> 00:25:21,560 Speaker 3: is going to help you identify those things and put 529 00:25:21,640 --> 00:25:25,240 Speaker 3: numbers on them most importantly, and navigate those emotional decisions, 530 00:25:25,280 --> 00:25:28,240 Speaker 3: and then also coordinate tax a, state and investment planning. 531 00:25:28,280 --> 00:25:30,440 Speaker 3: Some of this stuff is rather mechanical. It's black and white. 532 00:25:30,480 --> 00:25:32,760 Speaker 3: There are steps to follow and process that's put in place, 533 00:25:33,040 --> 00:25:35,640 Speaker 3: but somebody with experience needs to help you understand which 534 00:25:35,680 --> 00:25:38,560 Speaker 3: processes you need and which you don't. For example, you 535 00:25:38,560 --> 00:25:41,480 Speaker 3: don't need a trust for everything. That's another segment we'll 536 00:25:41,520 --> 00:25:44,040 Speaker 3: do some other day, but that's a common question we get. 537 00:25:44,080 --> 00:25:45,240 Speaker 3: I only have a will, I don't have a trust. 538 00:25:45,280 --> 00:25:48,800 Speaker 3: That might be okay, Let's talk about your situation and 539 00:25:48,840 --> 00:25:50,560 Speaker 3: also adjust that plan when life. 540 00:25:50,359 --> 00:25:51,280 Speaker 2: Throws your curveball. 541 00:25:51,880 --> 00:25:54,159 Speaker 3: Fiducia Advisor is going to build a relationship with you 542 00:25:54,280 --> 00:25:56,800 Speaker 3: in terms of knowing the things that make you worry. 543 00:25:56,840 --> 00:25:58,560 Speaker 3: So I know when I see certain headlines, I know 544 00:25:58,560 --> 00:25:59,959 Speaker 3: the five or six phone calls I got to make 545 00:26:00,000 --> 00:26:02,080 Speaker 3: because somebody out there is panicking. I also know the 546 00:26:02,080 --> 00:26:04,000 Speaker 3: ones I don't have to and they probably don't want 547 00:26:04,000 --> 00:26:06,440 Speaker 3: to hear from me because they're not warriors. So there's 548 00:26:06,480 --> 00:26:11,159 Speaker 3: there's a very significant interpersonal relationship that comes along with 549 00:26:11,200 --> 00:26:12,800 Speaker 3: working with fiduciary. 550 00:26:12,960 --> 00:26:15,960 Speaker 1: And let's face it, you know, good advisors ask the 551 00:26:16,080 --> 00:26:19,320 Speaker 1: questions that AI never will. For example, what do you 552 00:26:19,359 --> 00:26:22,240 Speaker 1: want retirement to feel like? How do you want to 553 00:26:22,359 --> 00:26:25,960 Speaker 1: help your kids without hurting their motivation and their drive? 554 00:26:26,359 --> 00:26:28,480 Speaker 1: And are you more afraid of running out of money 555 00:26:29,000 --> 00:26:31,840 Speaker 1: or more afraid of not enjoying it while you have it? 556 00:26:32,440 --> 00:26:36,400 Speaker 1: And good advisors can help you adjust when life changes, 557 00:26:36,480 --> 00:26:40,200 Speaker 1: when your job becomes unbearable, when your mom needs assistant 558 00:26:40,240 --> 00:26:43,120 Speaker 1: living help, when your kids get a full ride to college. 559 00:26:43,600 --> 00:26:47,960 Speaker 1: So in a perfect world, here AI and advisors should 560 00:26:48,040 --> 00:26:53,199 Speaker 1: work together. Fiduciary advisors. The best fiduciary advisors already use it. 561 00:26:53,240 --> 00:26:55,720 Speaker 1: Like we've already said, it's a tool, and that's the 562 00:26:55,800 --> 00:26:58,879 Speaker 1: key word. It's a tool, not a replacement. Here's the 563 00:26:58,920 --> 00:27:02,320 Speaker 1: all Worth Advice. A is a very powerful tool, but 564 00:27:02,520 --> 00:27:06,399 Speaker 1: only a fiduciary advisor can build a plan around your life, 565 00:27:06,880 --> 00:27:11,480 Speaker 1: your values, in your future. Next, we tackle your biggest 566 00:27:11,480 --> 00:27:14,560 Speaker 1: money questions, from selling a business or vacation home to 567 00:27:14,720 --> 00:27:19,440 Speaker 1: charitable giving, inheritance and even private credit funds. You're listening 568 00:27:19,480 --> 00:27:23,879 Speaker 1: to Simply Money, presented by all Worth Financial on fifty 569 00:27:23,880 --> 00:27:32,720 Speaker 1: five KRC the talk station you're listening to Simply Money, 570 00:27:32,800 --> 00:27:35,560 Speaker 1: presented by all Worth Financial. I'm Bob sponseller along with 571 00:27:35,560 --> 00:27:38,560 Speaker 1: Brian James. Do you have a financial question you'd like 572 00:27:38,600 --> 00:27:40,920 Speaker 1: for us to answer. There's a red button you can 573 00:27:40,960 --> 00:27:43,520 Speaker 1: click while you're listening to the show right there on 574 00:27:43,560 --> 00:27:47,400 Speaker 1: the iHeart app. Simply record your question and it'll come 575 00:27:47,440 --> 00:27:51,000 Speaker 1: straight to us. All right, Brian, Let's be honest, none 576 00:27:51,000 --> 00:27:53,480 Speaker 1: of us like to feel left out, especially when it 577 00:27:53,520 --> 00:27:57,040 Speaker 1: comes to money. And when your coworker brags about their 578 00:27:57,080 --> 00:28:01,040 Speaker 1: bitcoin gains or your neighbor says they do their portfolio 579 00:28:01,200 --> 00:28:04,919 Speaker 1: in six months, it triggers an emotion in us that 580 00:28:04,960 --> 00:28:08,680 Speaker 1: we want to identify. That fear of missing out or. 581 00:28:08,560 --> 00:28:12,720 Speaker 3: Fomo fomo fomo fomo fomo can cause a lot of 582 00:28:12,760 --> 00:28:17,720 Speaker 3: problems in terms of making terrible financial and otherwise decisions. 583 00:28:17,720 --> 00:28:20,720 Speaker 3: So the world of investing that you'll feel some pressure 584 00:28:21,359 --> 00:28:24,040 Speaker 3: just from you know, the people you're golfing with or 585 00:28:24,080 --> 00:28:27,080 Speaker 3: people at a cocktail party. Everybody's talking about, you know, 586 00:28:27,240 --> 00:28:29,480 Speaker 3: something that you weren't aware of or you didn't do, 587 00:28:30,040 --> 00:28:31,480 Speaker 3: and it may or may not be a good idea. 588 00:28:31,520 --> 00:28:33,639 Speaker 3: But but what your brain kicks into is have I 589 00:28:33,680 --> 00:28:36,000 Speaker 3: missed out on an opportunity. Is there something out there 590 00:28:36,000 --> 00:28:38,400 Speaker 3: that I should do, that I should be doing right now, 591 00:28:38,400 --> 00:28:40,320 Speaker 3: and how can I fix that problem? Well, so, maybe 592 00:28:40,320 --> 00:28:42,440 Speaker 3: there's people out there that you know, you know, you know, 593 00:28:42,520 --> 00:28:45,080 Speaker 3: somebody's got a solid retirement plan. They got everything, they need, 594 00:28:45,120 --> 00:28:47,040 Speaker 3: a couple million in assets, but they read this one 595 00:28:47,120 --> 00:28:49,360 Speaker 3: article about AI and all of a sudden, they've pivoted 596 00:28:49,400 --> 00:28:51,480 Speaker 3: their you know, a good chunk of their portfolio toward 597 00:28:51,560 --> 00:28:53,920 Speaker 3: the towards the big names and AI good idea, bad idea? 598 00:28:54,560 --> 00:28:56,640 Speaker 3: I say not so much because that they did that 599 00:28:56,640 --> 00:28:59,560 Speaker 3: with their with their emotions, not with their logical brain. 600 00:28:59,640 --> 00:29:01,880 Speaker 3: Of does help my plan? Do I need this kind 601 00:29:01,880 --> 00:29:03,680 Speaker 3: of growth? Or am I just in the casino playing 602 00:29:03,720 --> 00:29:05,000 Speaker 3: with playing with poker chips? 603 00:29:05,560 --> 00:29:07,520 Speaker 1: All right, well, let's get down to brass tacks here. 604 00:29:07,560 --> 00:29:09,440 Speaker 1: I mean, how many of your clients come to you 605 00:29:09,520 --> 00:29:11,800 Speaker 1: with this kind of stuff. Hey, I love the plan, Brian, 606 00:29:11,880 --> 00:29:15,440 Speaker 1: everything's fine. But let's I think people get bored. Sometimes 607 00:29:15,480 --> 00:29:18,120 Speaker 1: they get bored with their plan because it works so well, 608 00:29:18,680 --> 00:29:22,080 Speaker 1: so they just create this fomo emotion again, back to 609 00:29:22,400 --> 00:29:25,240 Speaker 1: needing to do something or wanting to do something, or 610 00:29:25,760 --> 00:29:29,280 Speaker 1: introducing some juice to the whole situation. Do you have 611 00:29:29,320 --> 00:29:31,080 Speaker 1: clients that come to you with that and how do 612 00:29:31,160 --> 00:29:31,640 Speaker 1: you deal with it? 613 00:29:31,720 --> 00:29:33,560 Speaker 3: Yeah, I'm going to go to other way on you, Bob. 614 00:29:33,560 --> 00:29:35,280 Speaker 3: I'm going to go with myself on that one. We 615 00:29:35,320 --> 00:29:37,360 Speaker 3: feel this too as advisors, we run into it too. 616 00:29:37,400 --> 00:29:39,520 Speaker 3: So I was actually with my family was considering an 617 00:29:39,560 --> 00:29:42,120 Speaker 3: investment and I talked to another advisor here at Allworth 618 00:29:42,160 --> 00:29:45,160 Speaker 3: who had some experience with it, and his answer was, 619 00:29:45,240 --> 00:29:47,040 Speaker 3: why do you want a more complicated life? 620 00:29:47,040 --> 00:29:48,880 Speaker 2: And that put me on my heels. 621 00:29:48,840 --> 00:29:51,120 Speaker 3: Because this was a private equity type thing with some 622 00:29:51,160 --> 00:29:52,800 Speaker 3: moving parts too and all that, and I hadn't even 623 00:29:52,800 --> 00:29:54,800 Speaker 3: thought about that. I was just interested in the you know, 624 00:29:54,840 --> 00:29:56,520 Speaker 3: it's just a portion of my portfolio and so on 625 00:29:56,520 --> 00:29:58,880 Speaker 3: and so forth. But there's moving parts to any decision 626 00:29:58,920 --> 00:30:02,000 Speaker 3: like that that you make. So it is always valuable 627 00:30:02,040 --> 00:30:03,800 Speaker 3: to tea just take a breath and figure out what 628 00:30:03,880 --> 00:30:05,840 Speaker 3: the big picture is if I'm going to throw And 629 00:30:06,320 --> 00:30:08,280 Speaker 3: let me be clear, I have absolutely no problem with 630 00:30:08,320 --> 00:30:09,760 Speaker 3: people wanting to play with the stock market. 631 00:30:09,800 --> 00:30:11,320 Speaker 2: Go ahead, knock yourself out, just. 632 00:30:11,280 --> 00:30:12,840 Speaker 3: Don't do it with the notion that I'm going to 633 00:30:12,880 --> 00:30:14,880 Speaker 3: double my money next week and all my problems will 634 00:30:14,880 --> 00:30:16,800 Speaker 3: be solved. Do it with the idea that this is 635 00:30:16,800 --> 00:30:18,840 Speaker 3: an interesting thing and I like the story behind this 636 00:30:18,920 --> 00:30:21,360 Speaker 3: investment and I want to participate in it, and that's fine. 637 00:30:21,440 --> 00:30:23,440 Speaker 2: Just don't hang your entire financial future off. 638 00:30:23,800 --> 00:30:26,360 Speaker 1: Yeah, and I'll tell you how I handle this, because 639 00:30:26,360 --> 00:30:28,440 Speaker 1: if somebody comes at me and at me and at 640 00:30:28,480 --> 00:30:32,600 Speaker 1: me long enough, I just tell them, hey, fine, let's 641 00:30:32,600 --> 00:30:35,640 Speaker 1: split the Let's split your portfolio into two pieces. And 642 00:30:35,680 --> 00:30:37,800 Speaker 1: I've done it this way for over thirty years. We 643 00:30:37,920 --> 00:30:40,440 Speaker 1: got your serious money. This is the money you can't 644 00:30:40,440 --> 00:30:43,360 Speaker 1: afford to lose and it's got to take care of. 645 00:30:43,280 --> 00:30:44,360 Speaker 2: You for the rest of your life. 646 00:30:44,440 --> 00:30:48,320 Speaker 1: And then there's play money. And as long as they're 647 00:30:48,360 --> 00:30:50,560 Speaker 1: willing to talk about I'm like, hey, have at it. 648 00:30:50,640 --> 00:30:53,480 Speaker 1: Let's slice off a piece of play money. I'm not 649 00:30:53,560 --> 00:30:55,920 Speaker 1: going to manage the play money for you. You go 650 00:30:55,960 --> 00:30:58,920 Speaker 1: do it. This goes show me how good you are. 651 00:30:59,080 --> 00:31:01,280 Speaker 1: Look at all your charge arts, stay traded, you know, 652 00:31:01,840 --> 00:31:06,600 Speaker 1: buy AI stocks to your heart, heart's desire, gold, whatever 653 00:31:06,640 --> 00:31:08,400 Speaker 1: you want to do. Go, get in and out of 654 00:31:08,440 --> 00:31:10,600 Speaker 1: all of it. Get back to me in six months 655 00:31:10,600 --> 00:31:12,440 Speaker 1: and let me know how you're doing. Because it can 656 00:31:12,680 --> 00:31:16,520 Speaker 1: oftentimes if people actually have to go out and do 657 00:31:16,600 --> 00:31:19,960 Speaker 1: this and have the time and the inclination and study 658 00:31:20,000 --> 00:31:22,800 Speaker 1: all the details and execute on what they think can 659 00:31:22,840 --> 00:31:25,680 Speaker 1: be very easy to do. I like to give them 660 00:31:25,680 --> 00:31:28,280 Speaker 1: six months to a year to actually go out and 661 00:31:28,360 --> 00:31:30,360 Speaker 1: do it and then come back to me and let 662 00:31:30,400 --> 00:31:30,680 Speaker 1: me know. 663 00:31:30,640 --> 00:31:31,240 Speaker 2: How it's going. 664 00:31:31,360 --> 00:31:34,280 Speaker 3: Yeah, the serious money permits the existence of the play money, 665 00:31:34,360 --> 00:31:36,200 Speaker 3: and so you have to think about it in terms of, 666 00:31:36,360 --> 00:31:37,920 Speaker 3: you know, if I want to throw a very small 667 00:31:37,920 --> 00:31:40,960 Speaker 3: amount of you know of into something, take a flyer. 668 00:31:40,840 --> 00:31:42,520 Speaker 2: As usually the word word that people use. 669 00:31:42,880 --> 00:31:45,480 Speaker 3: That's perfectly fine, but it shouldn't be treated as something 670 00:31:45,520 --> 00:31:46,520 Speaker 3: that's going to change your life. 671 00:31:46,840 --> 00:31:47,640 Speaker 2: If you're willing to. 672 00:31:47,600 --> 00:31:50,320 Speaker 3: Bet half or more of your portfolio on some crazy bet, 673 00:31:50,320 --> 00:31:51,680 Speaker 3: then I'm going to go ahead and say that you're 674 00:31:51,680 --> 00:31:53,680 Speaker 3: going to create financial problems for yourself down the road. 675 00:31:53,840 --> 00:31:55,600 Speaker 3: On the other hand, if you're willing to invest a 676 00:31:55,640 --> 00:31:58,360 Speaker 3: small amount, then even if it doubles triples, it's not 677 00:31:58,400 --> 00:32:01,080 Speaker 3: going to change your life anyway. Remind yourself of how 678 00:32:01,080 --> 00:32:02,600 Speaker 3: important this really will be to you. 679 00:32:02,600 --> 00:32:05,160 Speaker 1: You're listening to Simply Money, presented by all Worth Financial 680 00:32:05,200 --> 00:32:08,600 Speaker 1: on Bob's sponsorer along with Brian James. Brian, let's get 681 00:32:08,600 --> 00:32:12,640 Speaker 1: into how that fomo or fear of missing out emotion 682 00:32:13,360 --> 00:32:15,000 Speaker 1: starts to rear its ugly head. 683 00:32:15,000 --> 00:32:17,920 Speaker 2: What causes people to feel that? Yeah, well, what causes 684 00:32:17,920 --> 00:32:19,360 Speaker 2: it is exactly that. It's the fear. 685 00:32:19,400 --> 00:32:21,440 Speaker 3: It's a you know, somebody's doing something, somebody has found 686 00:32:21,480 --> 00:32:24,080 Speaker 3: an opportunity that I'm aware of, but I'm not executing on. 687 00:32:24,200 --> 00:32:25,880 Speaker 2: Am I missing out? That's where it comes from. 688 00:32:26,080 --> 00:32:28,440 Speaker 3: But the very first thing that happens is it causes 689 00:32:28,440 --> 00:32:30,719 Speaker 3: you to abandon your overall plan if you had a 690 00:32:30,760 --> 00:32:33,480 Speaker 3: solid financial plan, which you mentioned it earlier about a 691 00:32:33,520 --> 00:32:35,080 Speaker 3: solid financial plan can be boring. 692 00:32:35,160 --> 00:32:35,680 Speaker 2: Let's call it. 693 00:32:35,840 --> 00:32:38,040 Speaker 3: Call it what it is. Right, I've built my machine. 694 00:32:38,080 --> 00:32:41,000 Speaker 3: It's in good, solid, running shape. Now what you know, 695 00:32:41,200 --> 00:32:43,440 Speaker 3: think of a if you're a person who's into repairing cars, 696 00:32:43,480 --> 00:32:45,080 Speaker 3: the most boring thing is a couple of cars in 697 00:32:45,120 --> 00:32:47,200 Speaker 3: the garage who that are running just fine. I want 698 00:32:47,200 --> 00:32:48,840 Speaker 3: a project. I want to buy something and beat it 699 00:32:48,920 --> 00:32:51,200 Speaker 3: up and fix it and so forth. That again, that's 700 00:32:51,240 --> 00:32:53,240 Speaker 3: okay with it with a tiny amount of the portfolio. 701 00:32:53,800 --> 00:32:56,120 Speaker 3: But you're going to be you're forcing yourself to do 702 00:32:56,160 --> 00:32:57,560 Speaker 3: things that you don't have control over. 703 00:32:58,360 --> 00:33:01,280 Speaker 1: Yeah, that's the key point here, The key point. I 704 00:33:01,320 --> 00:33:04,320 Speaker 1: want to drive home is make sure we separate play 705 00:33:04,400 --> 00:33:08,160 Speaker 1: money from serious money and make sure that we do 706 00:33:08,240 --> 00:33:12,160 Speaker 1: not do anything that's going to violate the viability of 707 00:33:12,160 --> 00:33:16,040 Speaker 1: that serious money, meaning your long term financial plan. And 708 00:33:16,320 --> 00:33:18,800 Speaker 1: as long as people are willing to do that, things 709 00:33:18,840 --> 00:33:21,160 Speaker 1: tend to work out fine. And if they want to 710 00:33:21,200 --> 00:33:23,960 Speaker 1: carve off that piece and get speculative, we just carve 711 00:33:24,040 --> 00:33:27,000 Speaker 1: that out of the financial plan so we can always 712 00:33:27,040 --> 00:33:30,960 Speaker 1: demonstrate for our clients the viability of that financial plan 713 00:33:31,440 --> 00:33:33,760 Speaker 1: factoring just the serious money piece. 714 00:33:34,040 --> 00:33:35,240 Speaker 2: So take three steps here. 715 00:33:35,280 --> 00:33:37,560 Speaker 3: First, ask yourself, does this fit the plan that I've 716 00:33:37,560 --> 00:33:39,880 Speaker 3: already put in place or am I just reacting to 717 00:33:39,920 --> 00:33:42,200 Speaker 3: that fear of missing out. Second, one, look at those 718 00:33:42,200 --> 00:33:44,720 Speaker 3: goals again. Maybe if you've built a solid financial plan, 719 00:33:44,920 --> 00:33:46,800 Speaker 3: make sure the goals still match what you want Because 720 00:33:46,800 --> 00:33:49,040 Speaker 3: things change over time. What are you really trying to achieve? 721 00:33:49,280 --> 00:33:51,920 Speaker 3: And number three, talk to your advisor or a trusted 722 00:33:52,600 --> 00:33:56,080 Speaker 3: accomplice or somebody else that knows the situation and just 723 00:33:56,160 --> 00:33:58,040 Speaker 3: get an opinion from an arm's length away. 724 00:33:58,560 --> 00:33:59,760 Speaker 2: Here's the all worth advice. 725 00:34:00,120 --> 00:34:04,960 Speaker 1: Chasing heat can often result in getting burned. A good 726 00:34:05,120 --> 00:34:09,840 Speaker 1: financial plan keeps you cool. Next, the most valuable part 727 00:34:09,920 --> 00:34:12,880 Speaker 1: of financial advice. You're listening to Simply Money presented by 728 00:34:12,920 --> 00:34:16,520 Speaker 1: all Worth Financial on fifty five KRC the talk station. 729 00:34:22,200 --> 00:34:24,880 Speaker 1: You're listening to Simply Money presented by all Worth Financial 730 00:34:24,880 --> 00:34:28,520 Speaker 1: on Bob Sponseller along with Brian James. Ever, notice how 731 00:34:28,560 --> 00:34:31,799 Speaker 1: people can stand at the counter mentally debating do I 732 00:34:31,880 --> 00:34:35,360 Speaker 1: tip fifteen percent or twenty percent on this coffee or latte? 733 00:34:35,800 --> 00:34:39,000 Speaker 1: I mean we stand there and stress over two bucks. Meanwhile, 734 00:34:39,520 --> 00:34:43,200 Speaker 1: back at home, half of us are paying for streaming subscriptions. 735 00:34:43,560 --> 00:34:46,560 Speaker 1: We don't even remember signing up for Brian, it's the 736 00:34:46,600 --> 00:34:49,640 Speaker 1: old being penny wise and pound fool this year, and 737 00:34:49,680 --> 00:34:52,680 Speaker 1: you've actually got a survey that backs up how the 738 00:34:52,719 --> 00:34:55,960 Speaker 1: average household is behaving right now in this area. 739 00:34:56,160 --> 00:34:58,560 Speaker 3: Well, tell me if this sounds like your household, Bob. 740 00:34:58,600 --> 00:35:02,120 Speaker 3: The latest survey say the average household has a dozen subscriptions. 741 00:35:02,160 --> 00:35:05,279 Speaker 3: That's twelve of them, video music apps, even those random. 742 00:35:04,960 --> 00:35:06,239 Speaker 1: Fitness not too far off. 743 00:35:06,440 --> 00:35:08,279 Speaker 3: Yeah, yeah, I think a lot of us now have 744 00:35:08,360 --> 00:35:10,880 Speaker 3: kind of gotten sucked. It's just so easy nowadays. And 745 00:35:10,880 --> 00:35:13,280 Speaker 3: the problem is a lot of them quietly auto renew 746 00:35:13,960 --> 00:35:16,480 Speaker 3: just month after month. So that's really the funny part. Well, 747 00:35:16,480 --> 00:35:19,440 Speaker 3: we'll agonize over these couple of dollars at the coffee shop. Right, 748 00:35:19,520 --> 00:35:21,239 Speaker 3: Oh my gosh, you're spending four or five dollars and 749 00:35:21,280 --> 00:35:24,799 Speaker 3: a cup of coffee. Well, okay, but maybe somebody else 750 00:35:24,920 --> 00:35:27,720 Speaker 3: is spending two hundred dollars annually on a streaming service 751 00:35:27,760 --> 00:35:30,640 Speaker 3: that they haven't looked at in months. So it's just 752 00:35:30,680 --> 00:35:32,799 Speaker 3: because it's all, it's all, it's all right here in. 753 00:35:32,760 --> 00:35:33,160 Speaker 2: Front of us. 754 00:35:33,200 --> 00:35:35,000 Speaker 3: It's so easy to sign up for these things. And 755 00:35:35,040 --> 00:35:37,000 Speaker 3: maybe it's just that one show, that one movie, or 756 00:35:37,000 --> 00:35:38,880 Speaker 3: that one thing we wanted a part of, and then 757 00:35:38,880 --> 00:35:40,000 Speaker 3: we thought I'll get to it later. 758 00:35:40,200 --> 00:35:41,120 Speaker 2: I just did this to myself. 759 00:35:41,160 --> 00:35:43,040 Speaker 3: I just noticed something hitting my checking account that I 760 00:35:43,080 --> 00:35:44,840 Speaker 3: haven't needed in three months, so I had to squitch 761 00:35:44,880 --> 00:35:46,640 Speaker 3: that that was just yesterday. 762 00:35:46,640 --> 00:35:48,120 Speaker 2: So happens to the best of us. 763 00:35:48,120 --> 00:35:51,200 Speaker 3: But this is definitely something can be a little tiny drain, 764 00:35:51,320 --> 00:35:53,680 Speaker 3: a little leak in your in your plumbing to make 765 00:35:53,719 --> 00:35:55,440 Speaker 3: sure you get short up. 766 00:35:56,160 --> 00:35:58,080 Speaker 1: Yeah, well we'll call We'll go ahead and just call 767 00:35:58,120 --> 00:36:01,839 Speaker 1: that subscription creep. And my wife and I actually sat 768 00:36:01,880 --> 00:36:04,279 Speaker 1: down together, I don't know, three four weeks ago, because 769 00:36:04,560 --> 00:36:07,759 Speaker 1: I keep seeing this Amazon bill showing up on my 770 00:36:08,239 --> 00:36:10,759 Speaker 1: credit card and they do a wonderful job of just 771 00:36:11,239 --> 00:36:15,840 Speaker 1: piling everything together into one charge that says Amazon dot Com. 772 00:36:16,320 --> 00:36:18,080 Speaker 1: And I sat down with her, I'm like, what is 773 00:36:18,120 --> 00:36:21,120 Speaker 1: all this stuff? So we actually opened the app and 774 00:36:21,160 --> 00:36:25,520 Speaker 1: we found two subscriptions in there for services that we 775 00:36:25,600 --> 00:36:27,919 Speaker 1: don't use, and we were able to agree on Yep, 776 00:36:27,960 --> 00:36:29,960 Speaker 1: we're not using it. Let's get rid of it. I 777 00:36:29,960 --> 00:36:32,240 Speaker 1: don't know that was like thirty bucks a month right there. 778 00:36:32,320 --> 00:36:34,840 Speaker 1: So this is just a call out to just do 779 00:36:34,920 --> 00:36:38,640 Speaker 1: a little audit of these automatic subscriptions and you might 780 00:36:38,680 --> 00:36:42,319 Speaker 1: be surprised at how much money it makes sense to 781 00:36:42,440 --> 00:36:43,359 Speaker 1: just save every month. 782 00:36:43,440 --> 00:36:45,160 Speaker 3: Now, speaking of apps, this is kind of funny. So 783 00:36:45,480 --> 00:36:48,000 Speaker 3: I'm working with somebody where we're trying to help her 784 00:36:48,120 --> 00:36:50,720 Speaker 3: understand her budget. She has something called Rocket, and Rocket 785 00:36:50,760 --> 00:36:51,719 Speaker 3: is a service out there. 786 00:36:52,040 --> 00:36:53,680 Speaker 2: Probably heard of it, but their. 787 00:36:53,600 --> 00:36:55,560 Speaker 3: Whole point is to look at your financial data, to 788 00:36:55,600 --> 00:36:57,400 Speaker 3: look at all the transactions, and you're checking account your 789 00:36:57,440 --> 00:37:00,520 Speaker 3: credit cards, and they'll tell you which our subscription so 790 00:37:00,560 --> 00:37:02,799 Speaker 3: you can make a clean decision, and they will they 791 00:37:02,840 --> 00:37:04,759 Speaker 3: kind of bring it a little closer to home in 792 00:37:04,880 --> 00:37:07,719 Speaker 3: terms of click this link and they will unsubscribe for you. 793 00:37:08,080 --> 00:37:10,640 Speaker 3: So it's actually kind of a neat service. But ironically 794 00:37:10,680 --> 00:37:13,919 Speaker 3: this particular person doesn't have that issue and she's still 795 00:37:13,960 --> 00:37:16,600 Speaker 3: subscribing to Rocket. So one of the big best advice 796 00:37:16,680 --> 00:37:18,520 Speaker 3: I can give to her, I asked her, does Rocket 797 00:37:18,560 --> 00:37:19,320 Speaker 3: identify itself? 798 00:37:19,360 --> 00:37:22,120 Speaker 2: Since you don't actually need it, but so it's good 799 00:37:22,120 --> 00:37:22,759 Speaker 2: to take a look at it. 800 00:37:22,800 --> 00:37:24,319 Speaker 3: There are tools out there you can look at, and 801 00:37:24,360 --> 00:37:26,799 Speaker 3: if you don't need those tools, unsubscribed to them too. 802 00:37:26,880 --> 00:37:29,319 Speaker 1: In Declare victory, thanks for listening. You've been listening to 803 00:37:29,360 --> 00:37:32,960 Speaker 1: Simply Money, presented by all Worth Financial on fifty five KRC, 804 00:37:33,640 --> 00:37:34,560 Speaker 1: the talk station