1 00:00:04,680 --> 00:00:09,960 Speaker 1: Tonight, how to actually measure financial success in twenty twenty six. 2 00:00:10,280 --> 00:00:12,799 Speaker 1: You're listening to Simply Money, presented by all Worth Financial 3 00:00:12,840 --> 00:00:16,680 Speaker 1: Lawn Bob Sponsller along with Brian James Well Tonight, we're 4 00:00:16,680 --> 00:00:20,280 Speaker 1: talking about something that doesn't get asked about nearly enough. 5 00:00:20,320 --> 00:00:25,079 Speaker 1: What does real financial success actually look like? Because let's 6 00:00:25,079 --> 00:00:28,000 Speaker 1: face it, having a big account, having a big net 7 00:00:28,040 --> 00:00:32,919 Speaker 1: worth is great, but it doesn't always equal confidence or 8 00:00:32,960 --> 00:00:37,479 Speaker 1: more importantly, happiness or simplicity or freedom or all the 9 00:00:37,520 --> 00:00:40,760 Speaker 1: things that we really want. And we want to break 10 00:00:40,800 --> 00:00:45,479 Speaker 1: down what financial success really looks like in twenty twenty six, Brian, 11 00:00:45,600 --> 00:00:47,640 Speaker 1: because at the end of the day, it's not just 12 00:00:47,720 --> 00:00:51,320 Speaker 1: about your investment account balance or your net worth. Let's 13 00:00:51,400 --> 00:00:52,239 Speaker 1: let's get into it. 14 00:00:52,920 --> 00:00:55,480 Speaker 2: Well, let's start with a Let's start with an example. 15 00:00:55,560 --> 00:00:58,280 Speaker 2: Somebody who had seven million dollars worth of net worth, 16 00:00:58,480 --> 00:01:01,080 Speaker 2: four million of it tied up in busines equity, another 17 00:01:01,160 --> 00:01:03,040 Speaker 2: two million in in liquid real estate, some of that 18 00:01:03,080 --> 00:01:05,760 Speaker 2: side to the business too. Only about a million dollars 19 00:01:05,800 --> 00:01:08,200 Speaker 2: was truly accessible. See, these are truly people who don't 20 00:01:08,240 --> 00:01:11,520 Speaker 2: who are millionaires on paper but don't feel like they 21 00:01:11,520 --> 00:01:13,960 Speaker 2: can cover you know anything, you know, just about anything 22 00:01:14,000 --> 00:01:16,600 Speaker 2: comes down the pipe. So that's we're not calling that failure, 23 00:01:16,680 --> 00:01:19,000 Speaker 2: but it does mean that liquidity really is the measure 24 00:01:19,000 --> 00:01:19,760 Speaker 2: of flexibility. 25 00:01:20,000 --> 00:01:20,160 Speaker 3: Right. 26 00:01:20,240 --> 00:01:22,480 Speaker 2: So if somebody they truly wanted to start doing things 27 00:01:22,480 --> 00:01:25,880 Speaker 2: for their family making longer term uh, you know, charitable 28 00:01:25,920 --> 00:01:30,160 Speaker 2: donations or buying some other other vacation properties or whatever, 29 00:01:30,319 --> 00:01:32,240 Speaker 2: they can't really do that right now, despite the fact 30 00:01:32,240 --> 00:01:33,760 Speaker 2: that it looks like on paper that they should be 31 00:01:33,800 --> 00:01:36,200 Speaker 2: able to. So the question is, you know, if you 32 00:01:36,240 --> 00:01:38,680 Speaker 2: find yourself, you know this sounds familiar to you, the 33 00:01:38,760 --> 00:01:40,640 Speaker 2: question ask yourself is can you get to your money 34 00:01:40,640 --> 00:01:44,440 Speaker 2: in a downturn without triggering huge taxes or penalties. 35 00:01:44,000 --> 00:01:45,679 Speaker 3: Or or fire sale of assets. 36 00:01:45,720 --> 00:01:46,280 Speaker 1: That kind of thing. 37 00:01:46,600 --> 00:01:49,559 Speaker 2: Financial success these days in twenty twenty six, Bob, means 38 00:01:49,640 --> 00:01:52,320 Speaker 2: not just how much you have, but how accessible it 39 00:01:52,360 --> 00:01:52,920 Speaker 2: actually is. 40 00:01:53,680 --> 00:01:56,000 Speaker 1: Yeah, and this doesn't just mean, you know, taking a 41 00:01:56,000 --> 00:01:59,280 Speaker 1: look at ill equal ill liquid assets. Brian, you and 42 00:01:59,280 --> 00:02:01,320 Speaker 1: I have talked about this over the last few weeks 43 00:02:01,320 --> 00:02:03,600 Speaker 1: as we have have had another great year in the 44 00:02:03,600 --> 00:02:06,760 Speaker 1: stock market. You know, we talk about that bucket strategy, 45 00:02:06,800 --> 00:02:10,519 Speaker 1: your bucket approach all the time. At some point it 46 00:02:10,960 --> 00:02:13,400 Speaker 1: makes sense to just carve out a little bit of 47 00:02:13,400 --> 00:02:16,720 Speaker 1: these gains, don't get too greedy and make sure perhaps 48 00:02:16,720 --> 00:02:20,760 Speaker 1: that you have that emergency fund filled up and ready 49 00:02:20,760 --> 00:02:23,120 Speaker 1: to go with you know, one two to three years 50 00:02:23,160 --> 00:02:25,960 Speaker 1: worth of cash flow needs and wants so you don't 51 00:02:26,120 --> 00:02:28,760 Speaker 1: have to you know, forget about ill liquid real estate, 52 00:02:29,120 --> 00:02:32,080 Speaker 1: so you don't have to go sell stock, ets and 53 00:02:32,200 --> 00:02:35,880 Speaker 1: other things in a temporarily down market. It's something that 54 00:02:35,919 --> 00:02:38,639 Speaker 1: we're talking about with clients more and more. It makes 55 00:02:38,680 --> 00:02:41,840 Speaker 1: a lot of sense because again, this recency bias can 56 00:02:41,880 --> 00:02:44,720 Speaker 1: creep in. You know, when you get fifteen, sixteen, twenty 57 00:02:44,760 --> 00:02:47,079 Speaker 1: percent returns three years in a row, people just think 58 00:02:47,120 --> 00:02:50,520 Speaker 1: that's going to continue on forever. And you know, you 59 00:02:50,560 --> 00:02:52,440 Speaker 1: and I have been doing this long enough Brian to 60 00:02:52,480 --> 00:02:55,400 Speaker 1: know that's not always the case. The reversion to the 61 00:02:55,440 --> 00:02:58,400 Speaker 1: mean is real. It's not a matter of if, it's when. 62 00:02:58,880 --> 00:03:01,520 Speaker 1: So you know, take a look at your liquidity and 63 00:03:01,560 --> 00:03:03,000 Speaker 1: make sure you got your house in order. 64 00:03:03,040 --> 00:03:03,200 Speaker 4: There. 65 00:03:03,280 --> 00:03:07,040 Speaker 1: Let's talk about you know, consideration number two, and that's 66 00:03:07,160 --> 00:03:11,399 Speaker 1: just cash flow confidence. This goes down to your income 67 00:03:11,560 --> 00:03:15,480 Speaker 1: plan and inflation assumptions and making sure you've got a good, 68 00:03:15,800 --> 00:03:17,639 Speaker 1: you know, reliable cash flow in place. 69 00:03:18,080 --> 00:03:20,200 Speaker 2: Do you know how much you can spend and can 70 00:03:20,240 --> 00:03:22,440 Speaker 2: you feel good about that? Can you take that trip 71 00:03:22,560 --> 00:03:24,280 Speaker 2: or fund that wedding without having to open up a 72 00:03:24,320 --> 00:03:27,440 Speaker 2: spreadsheet and move things around and sell this and you know, 73 00:03:27,560 --> 00:03:31,040 Speaker 2: change things around drastically. So again, success today means that 74 00:03:31,080 --> 00:03:33,359 Speaker 2: plan is set so that it can handle at least 75 00:03:33,400 --> 00:03:35,760 Speaker 2: three percent inflation and a few flat market years. You 76 00:03:35,800 --> 00:03:38,040 Speaker 2: need to stress test these things. If you're still using 77 00:03:38,040 --> 00:03:40,320 Speaker 2: that four percent rule from twenty fifteen, it's time to 78 00:03:40,360 --> 00:03:43,200 Speaker 2: at least re evaluate and make sure you can still 79 00:03:43,360 --> 00:03:46,520 Speaker 2: your plan still supports that. And again, mathematically it probably 80 00:03:46,600 --> 00:03:48,560 Speaker 2: will because of what the market's done over the next 81 00:03:48,560 --> 00:03:50,760 Speaker 2: three years. But to Bob's point, we really need to 82 00:03:50,760 --> 00:03:53,720 Speaker 2: be stress testing this. Don't simply run a simple spreadsheet 83 00:03:53,920 --> 00:03:56,360 Speaker 2: of you know, that four percent withdrawal rate and a 84 00:03:56,400 --> 00:03:59,000 Speaker 2: six percent rate of return. You know, make sure you 85 00:03:59,080 --> 00:04:01,560 Speaker 2: stress tested, not off twenty percent of your assets right 86 00:04:01,560 --> 00:04:04,080 Speaker 2: now and then run the numbers again. That simulates a 87 00:04:04,120 --> 00:04:06,960 Speaker 2: bad timing outcome, which basically means the market punches me 88 00:04:06,960 --> 00:04:08,560 Speaker 2: in the mouth right now and let's see if I 89 00:04:08,600 --> 00:04:11,800 Speaker 2: can stand up again. So yeah, very important to make 90 00:04:11,800 --> 00:04:13,920 Speaker 2: sure you understand first of all, what your cash flow is, 91 00:04:13,960 --> 00:04:15,400 Speaker 2: what do you need to make the ship float and 92 00:04:15,440 --> 00:04:19,359 Speaker 2: then can your portfolio support it including a black Swan 93 00:04:19,400 --> 00:04:21,359 Speaker 2: type event where we lose twenty percent for no reason, 94 00:04:21,440 --> 00:04:23,040 Speaker 2: kind of like what we did in twenty twenty two. 95 00:04:23,560 --> 00:04:26,000 Speaker 2: So the third marker of financial success here, we're going 96 00:04:26,040 --> 00:04:27,920 Speaker 2: to move on to simplicity. Right, We just made things 97 00:04:27,960 --> 00:04:31,720 Speaker 2: really complicated by making you do math again, but simplicity 98 00:04:31,839 --> 00:04:33,960 Speaker 2: is not to be overlooked. This is something we see 99 00:04:34,000 --> 00:04:37,680 Speaker 2: with our most organized and frankly happiest and content clients. 100 00:04:37,880 --> 00:04:41,039 Speaker 2: They don't have nineteen different accounts at seven financial institutions. 101 00:04:41,200 --> 00:04:43,239 Speaker 2: They've cleaned it up because they got sick of tracking 102 00:04:43,279 --> 00:04:45,599 Speaker 2: all those ten ninety nine's, talking to all those different 103 00:04:45,600 --> 00:04:48,520 Speaker 2: people and keeping things, you know, to manage it across 104 00:04:48,560 --> 00:04:50,520 Speaker 2: all of it. You know, these people have realized that 105 00:04:50,600 --> 00:04:53,200 Speaker 2: if they have seven financial advisors, then they are their 106 00:04:53,240 --> 00:04:56,000 Speaker 2: own financial advisor because somebody has to coordinate all of 107 00:04:56,040 --> 00:04:58,920 Speaker 2: that information and decide what the actual plan is going 108 00:04:59,000 --> 00:05:01,080 Speaker 2: to be. So, you know, well, you need to know 109 00:05:01,120 --> 00:05:03,880 Speaker 2: where things are, what's in the trust. Spouse and kids 110 00:05:03,880 --> 00:05:05,839 Speaker 2: maybe can step up and you know, handle these things 111 00:05:05,839 --> 00:05:08,320 Speaker 2: without needing a forensic accountant. Should something happen to the 112 00:05:08,360 --> 00:05:10,919 Speaker 2: primary financial manager of the of the family. 113 00:05:11,720 --> 00:05:15,160 Speaker 1: Well, I'll put it in either simpler terms speaking of simplicity, 114 00:05:15,680 --> 00:05:17,880 Speaker 1: you know, and it's never a pleasant thing to say 115 00:05:18,000 --> 00:05:20,040 Speaker 1: or talk about. But you know, the question is this, 116 00:05:20,560 --> 00:05:24,920 Speaker 1: if you die this afternoon, what happens? Who is managing 117 00:05:25,000 --> 00:05:27,560 Speaker 1: all this stuff that you've worked thirty forty fifty years 118 00:05:27,560 --> 00:05:30,240 Speaker 1: to accumulate. How is it all going to work? Do 119 00:05:30,320 --> 00:05:32,840 Speaker 1: people know where everything is? Do they know your passwords? 120 00:05:32,880 --> 00:05:35,320 Speaker 1: Do they know how the trust work? All that kind 121 00:05:35,400 --> 00:05:38,760 Speaker 1: of stuff? And Brian, for too many people, they can't 122 00:05:38,800 --> 00:05:41,880 Speaker 1: answer that question. They think they got it all organized. 123 00:05:42,320 --> 00:05:46,440 Speaker 1: But you know, especially for men, men like control, we 124 00:05:46,560 --> 00:05:49,080 Speaker 1: hate to turn over the reins. And this leads to 125 00:05:49,120 --> 00:05:51,839 Speaker 1: my you know story that has been embedded in my 126 00:05:52,000 --> 00:05:55,120 Speaker 1: mind ever since nineteen ninety two where I got a 127 00:05:55,160 --> 00:05:57,719 Speaker 1: phone call from a widow client of mine at four 128 00:05:57,720 --> 00:06:01,040 Speaker 1: point thirty in the morning and said, my husband just died. 129 00:06:01,680 --> 00:06:04,599 Speaker 1: Do I have enough money, Bob to go to UDF 130 00:06:04,800 --> 00:06:08,120 Speaker 1: and buy milk and eggs? And this was a family 131 00:06:08,200 --> 00:06:11,680 Speaker 1: that was worth three or four million dollars back in 132 00:06:11,800 --> 00:06:15,480 Speaker 1: nineteen ninety two. It was a sad story that really 133 00:06:15,520 --> 00:06:18,440 Speaker 1: embedded in my mind and I've never forgotten about it. 134 00:06:18,760 --> 00:06:22,159 Speaker 1: You got to communicate this stuff with your spouse, with 135 00:06:22,200 --> 00:06:25,039 Speaker 1: your kids, and know how all the levers are going 136 00:06:25,080 --> 00:06:29,279 Speaker 1: to be pulled and where everything is, you know, because again, 137 00:06:29,360 --> 00:06:31,920 Speaker 1: if you've built a five million dollar net worth and 138 00:06:31,960 --> 00:06:34,760 Speaker 1: then you die and you just leave nothing but stress 139 00:06:34,839 --> 00:06:38,240 Speaker 1: for your heirs, what have you really accomplished here? So 140 00:06:38,480 --> 00:06:40,840 Speaker 1: there's there's my rant and soapbox for you. 141 00:06:41,000 --> 00:06:43,080 Speaker 2: Yeah, we all have those stories, right that that and 142 00:06:43,120 --> 00:06:45,599 Speaker 2: that was formative in your career. And I've got similar 143 00:06:45,640 --> 00:06:48,600 Speaker 2: stories too of you know, learning really really quickly and 144 00:06:49,400 --> 00:06:52,560 Speaker 2: hard the way people think about money and the value 145 00:06:52,600 --> 00:06:54,960 Speaker 2: that we can provide as a financial advisor, help dragging 146 00:06:55,000 --> 00:06:56,719 Speaker 2: them back from the tree so they can see the 147 00:06:56,839 --> 00:06:58,280 Speaker 2: entire forest. I understand that. 148 00:06:59,120 --> 00:07:01,440 Speaker 1: So let's talk. Let's talk about a fourth thing. This 149 00:07:01,520 --> 00:07:03,400 Speaker 1: is the fun part, Brian, and I know you and 150 00:07:03,440 --> 00:07:06,080 Speaker 1: I have a ton of fun doing this with clients. 151 00:07:06,640 --> 00:07:10,520 Speaker 1: Are we using this capital? Are we using the assets 152 00:07:10,560 --> 00:07:14,760 Speaker 1: to benefit causes that we care deeply about. Or taking 153 00:07:14,800 --> 00:07:18,360 Speaker 1: that trip with your kids and grandkids that you've thought 154 00:07:18,400 --> 00:07:21,679 Speaker 1: about talked about at family dinners but you never pulled 155 00:07:21,680 --> 00:07:25,320 Speaker 1: the trigger on and actually book the trip and done it. Uh. 156 00:07:25,400 --> 00:07:28,480 Speaker 1: These are the things that make memories you know, create 157 00:07:28,600 --> 00:07:31,920 Speaker 1: legacy for your kids and grandkids. But it takes some planning, 158 00:07:32,280 --> 00:07:34,560 Speaker 1: and it takes pulling the trigger and getting some of 159 00:07:34,600 --> 00:07:37,480 Speaker 1: these things done. You know, to say nothing about things 160 00:07:37,520 --> 00:07:40,080 Speaker 1: like donor advise fun. I know you've got stories you 161 00:07:40,120 --> 00:07:42,600 Speaker 1: could tell about all this, you know, share a couple 162 00:07:42,640 --> 00:07:45,960 Speaker 1: with us, Brian. Where where can we make meaning out 163 00:07:45,960 --> 00:07:48,040 Speaker 1: of all this if we take the time to plan. 164 00:07:48,440 --> 00:07:48,640 Speaker 3: Sure? 165 00:07:48,720 --> 00:07:51,280 Speaker 2: Yeah, and like you said, this purpose part of the 166 00:07:51,440 --> 00:07:54,320 Speaker 2: of the financial planning engagement. This, this is the fun part, 167 00:07:54,400 --> 00:07:57,200 Speaker 2: but people need permission to think about it. These are 168 00:07:57,280 --> 00:07:59,440 Speaker 2: this is the list of stuff that people always said, 169 00:07:59,480 --> 00:08:00,960 Speaker 2: you know, maybe a sort of I'm going to think 170 00:08:00,960 --> 00:08:02,880 Speaker 2: about this doing this someday. Here's my list of ten 171 00:08:02,920 --> 00:08:05,080 Speaker 2: things they would really like to do, except I assume 172 00:08:05,080 --> 00:08:07,000 Speaker 2: I can't afford it, so let's just not think about 173 00:08:07,040 --> 00:08:09,800 Speaker 2: it right now. Lots of people have those lists, and 174 00:08:10,160 --> 00:08:12,080 Speaker 2: most of those people have not taken the time to 175 00:08:12,120 --> 00:08:15,440 Speaker 2: figure out whether it's even on the table. So eventually 176 00:08:15,440 --> 00:08:17,000 Speaker 2: we get to the point in the planning process where 177 00:08:17,040 --> 00:08:19,000 Speaker 2: we figure out what is and is not on the table. 178 00:08:19,200 --> 00:08:20,120 Speaker 3: And for people who. 179 00:08:20,000 --> 00:08:22,120 Speaker 2: Are sort of financial worry warts, and I don't mean 180 00:08:22,120 --> 00:08:24,400 Speaker 2: that in a negative manner. Most of the people who 181 00:08:24,440 --> 00:08:26,400 Speaker 2: are choosing to listen to this show right now are 182 00:08:26,400 --> 00:08:29,520 Speaker 2: worried about something because they're looking for information. You people 183 00:08:29,560 --> 00:08:31,880 Speaker 2: are doing fine. Probably you're doing better than you give 184 00:08:31,880 --> 00:08:34,640 Speaker 2: yourselves credit for. So I would bet that there is something, 185 00:08:34,760 --> 00:08:36,480 Speaker 2: there's a little bit of surplus you can do something with. 186 00:08:36,880 --> 00:08:39,640 Speaker 2: So at that point, yeah, Bob, we'll use this example. 187 00:08:39,640 --> 00:08:42,000 Speaker 2: Bob mentioned donor advice funds. Well, we talk about those 188 00:08:42,040 --> 00:08:44,679 Speaker 2: at the end of every year because they are they 189 00:08:44,720 --> 00:08:47,880 Speaker 2: are a financial planning, tax planning tool in addition to 190 00:08:48,000 --> 00:08:52,120 Speaker 2: being a charitable donation, of course, but the whole point 191 00:08:52,120 --> 00:08:53,760 Speaker 2: of a donor advice fund you can throw a big 192 00:08:53,800 --> 00:08:55,560 Speaker 2: pile of money into. You can, first of all, don't 193 00:08:55,559 --> 00:08:57,760 Speaker 2: think about the charity. You can simply think what kind 194 00:08:57,760 --> 00:09:00,440 Speaker 2: of tax benefit do I need this year? What would 195 00:09:00,480 --> 00:09:02,360 Speaker 2: be good for me based on all the other income 196 00:09:02,400 --> 00:09:04,840 Speaker 2: and capital gains and whatever else I generated this year? 197 00:09:04,960 --> 00:09:07,160 Speaker 2: What kind of deduction could I use this year? And 198 00:09:07,200 --> 00:09:09,920 Speaker 2: then you can figure out what what that would calculate 199 00:09:10,000 --> 00:09:12,440 Speaker 2: into in terms of a one time donation into a 200 00:09:12,480 --> 00:09:15,720 Speaker 2: donor advised fund. Now, there's nothing stopping you from giving 201 00:09:15,720 --> 00:09:16,960 Speaker 2: that same amount right now. 202 00:09:17,040 --> 00:09:17,440 Speaker 1: Write this. 203 00:09:17,760 --> 00:09:20,280 Speaker 2: You know right at this time to any old any 204 00:09:20,320 --> 00:09:23,800 Speaker 2: old church or charity or whatever. But a donor advice 205 00:09:23,840 --> 00:09:25,960 Speaker 2: fund allows you to put a whole bunch in at once, 206 00:09:26,000 --> 00:09:28,880 Speaker 2: maybe five, six, seven years worth of donations and then 207 00:09:28,960 --> 00:09:31,240 Speaker 2: dole it out in a manner that that that whatever 208 00:09:31,240 --> 00:09:33,440 Speaker 2: that charity is is already used to from you, so 209 00:09:33,440 --> 00:09:35,240 Speaker 2: they don't see a difference. They don't see a giant check. 210 00:09:35,240 --> 00:09:36,800 Speaker 2: They're not trying to name a wing after you. 211 00:09:37,160 --> 00:09:38,079 Speaker 1: Uh. And the nice thing. 212 00:09:38,040 --> 00:09:40,360 Speaker 2: About this too, and it's almost that behaves like a foundation. 213 00:09:40,440 --> 00:09:42,760 Speaker 2: You can bring your family together and have have those 214 00:09:42,840 --> 00:09:44,680 Speaker 2: kids come in and help make the grant decisions, have 215 00:09:44,720 --> 00:09:47,360 Speaker 2: everybody vote on what charities they want to support. Now 216 00:09:47,400 --> 00:09:50,440 Speaker 2: you've got purpose beyond just paying the bills and going 217 00:09:50,440 --> 00:09:52,720 Speaker 2: on vacations and that kind of retirement. That can bring 218 00:09:52,800 --> 00:09:55,199 Speaker 2: some joy back into people for whom that retirement life 219 00:09:55,240 --> 00:09:56,720 Speaker 2: has kind of become a little too routine. 220 00:09:57,800 --> 00:10:00,800 Speaker 1: R And I've actually had a few clients act do this, 221 00:10:01,080 --> 00:10:04,680 Speaker 1: and that's create the donor advice fund and then use 222 00:10:04,800 --> 00:10:07,600 Speaker 1: a targeted and planned out meeting at the end of 223 00:10:07,600 --> 00:10:09,480 Speaker 1: the year. And it doesn't have to be at the 224 00:10:09,559 --> 00:10:11,199 Speaker 1: end of the year, but it's just whether it's the 225 00:10:11,240 --> 00:10:14,720 Speaker 1: summer vacation or pulling the family together during the holidays 226 00:10:14,720 --> 00:10:17,600 Speaker 1: where you're literally sitting at a table with your kids 227 00:10:17,920 --> 00:10:21,600 Speaker 1: and your grandkids and you're letting them all have a voice. Hey, 228 00:10:21,640 --> 00:10:25,680 Speaker 1: what causes mean something to you and why? And it's 229 00:10:25,720 --> 00:10:28,959 Speaker 1: a great way to let everybody in the family kind 230 00:10:28,960 --> 00:10:31,520 Speaker 1: of have a vote or a say on how the 231 00:10:31,600 --> 00:10:37,800 Speaker 1: family is going to deploy their strategic giving capital charitable capital, 232 00:10:38,280 --> 00:10:41,120 Speaker 1: and then learn about the values and the passions of 233 00:10:41,240 --> 00:10:44,360 Speaker 1: family members. You want to talk about passing down a legacy. 234 00:10:44,760 --> 00:10:48,600 Speaker 1: That is very meaningful time to have grandkids listen to 235 00:10:48,640 --> 00:10:52,000 Speaker 1: grandma and Grandpa talk about how they were raised, some 236 00:10:52,040 --> 00:10:55,640 Speaker 1: of the causes or charities that impacted their life, why 237 00:10:55,679 --> 00:10:58,800 Speaker 1: they feel so passionate about it, maybe some mission trips 238 00:10:58,840 --> 00:11:01,439 Speaker 1: that they've been on. I mean, it's a powerful tool 239 00:11:01,520 --> 00:11:05,280 Speaker 1: to get your whole family together and talk about benefiting 240 00:11:05,320 --> 00:11:10,240 Speaker 1: someone other than yourself, and those are meaningful times. It's 241 00:11:10,320 --> 00:11:13,000 Speaker 1: not that difficult to do. You and I have both 242 00:11:13,080 --> 00:11:16,199 Speaker 1: done this with clients. It's some of the most rewarding 243 00:11:16,280 --> 00:11:19,440 Speaker 1: time I've ever had as a financial advisor. But like 244 00:11:19,480 --> 00:11:21,320 Speaker 1: a lot of things, it does take a little bit 245 00:11:21,320 --> 00:11:23,320 Speaker 1: of planning for sure. For sure. 246 00:11:23,760 --> 00:11:27,600 Speaker 2: Yeah, So let's move on to the final the the 247 00:11:27,760 --> 00:11:29,640 Speaker 2: thing here we want to deal with, which is control 248 00:11:29,640 --> 00:11:31,320 Speaker 2: of risk. A lot of people think that risk is 249 00:11:31,559 --> 00:11:35,120 Speaker 2: just investment volatility, stuff moving up and down, and that's true. 250 00:11:35,120 --> 00:11:38,160 Speaker 2: But the real risk is over concentration and it's tax exposure. 251 00:11:38,400 --> 00:11:40,439 Speaker 2: It's not knowing what your spouse would do if something 252 00:11:40,480 --> 00:11:42,160 Speaker 2: happened to you. Right, these are the real things. The 253 00:11:42,200 --> 00:11:44,040 Speaker 2: market's going to do what it does. The market is 254 00:11:44,080 --> 00:11:47,080 Speaker 2: predictable in its unpredictability. We know it's coming, but these 255 00:11:47,120 --> 00:11:50,079 Speaker 2: other things aren't necessarily you know, can sneak up from 256 00:11:50,120 --> 00:11:53,040 Speaker 2: around the corner on you. So success in this area, Bob, 257 00:11:53,080 --> 00:11:55,880 Speaker 2: that means having the right insurance, the right estate plan, 258 00:11:55,960 --> 00:11:58,319 Speaker 2: and the right level diversification. Of course in your portfolio, 259 00:11:58,559 --> 00:12:01,960 Speaker 2: it's knowing that your plan concern the unexpected. So make 260 00:12:02,000 --> 00:12:04,480 Speaker 2: sure you've looked in every corner of your financial situation 261 00:12:04,800 --> 00:12:07,040 Speaker 2: and you've rooted out all the different things that could 262 00:12:07,080 --> 00:12:08,840 Speaker 2: possibly cause, you know, come out of the blue and 263 00:12:08,840 --> 00:12:10,800 Speaker 2: cause all kinds of unnecessary stress. You know, there's a 264 00:12:10,800 --> 00:12:12,600 Speaker 2: lot of people out there who have no idea that 265 00:12:12,600 --> 00:12:15,360 Speaker 2: they're forty percent over concentrated in technology stocks. For that 266 00:12:15,480 --> 00:12:18,200 Speaker 2: for example, or maybe haven't reviewed an umbrella policy in 267 00:12:18,200 --> 00:12:18,720 Speaker 2: a decade. 268 00:12:18,960 --> 00:12:21,199 Speaker 3: Be in control of those risks and you'll be successful. 269 00:12:21,800 --> 00:12:25,120 Speaker 1: Here's the all Worth advice. True financial success isn't just 270 00:12:25,200 --> 00:12:29,840 Speaker 1: a number. It's confidence, simplicity and the freedom to live 271 00:12:29,920 --> 00:12:34,240 Speaker 1: life on your terms. There's a big lie about retirement 272 00:12:34,280 --> 00:12:37,440 Speaker 1: that most people are still clinging to, and we'll tell 273 00:12:37,520 --> 00:12:40,160 Speaker 1: you what that is. Coming up next. You're listening to 274 00:12:40,160 --> 00:12:43,280 Speaker 1: Simply Money, presented by all Worth Financial on fifty five KRC, 275 00:12:43,679 --> 00:12:51,280 Speaker 1: the talk station. You're listening to Simply Money presented by 276 00:12:51,280 --> 00:12:54,280 Speaker 1: all Worth Financial on Bob Sponsler along with Brian James. 277 00:12:54,679 --> 00:12:57,439 Speaker 1: If you can't listen to Simply Money every night, subscribe 278 00:12:57,440 --> 00:13:00,640 Speaker 1: and get our daily podcasts. Just search Simple Money on 279 00:13:00,720 --> 00:13:04,840 Speaker 1: the iHeart app or wherever you find your podcast. Straight 280 00:13:04,840 --> 00:13:07,480 Speaker 1: ahead of six forty three, we are diving into more 281 00:13:07,520 --> 00:13:11,720 Speaker 1: of your questions, everything from smart investing moves to protecting 282 00:13:11,760 --> 00:13:15,640 Speaker 1: your retirement. One of the most common assumptions we hear 283 00:13:15,720 --> 00:13:19,480 Speaker 1: from people approaching retirement is this, Oh, I know I'm 284 00:13:19,480 --> 00:13:23,200 Speaker 1: gonna spend way less money when I'm retired, less commuting, 285 00:13:23,679 --> 00:13:26,800 Speaker 1: less need for work clothes. The mortgage might be paid off, 286 00:13:26,800 --> 00:13:31,480 Speaker 1: so naturally, expenses are gonna go down, right, But the reality, 287 00:13:31,600 --> 00:13:34,439 Speaker 1: and Brian, we see this all the time. Research shows 288 00:13:34,480 --> 00:13:38,720 Speaker 1: that many retirees actually spend more in the early years 289 00:13:38,720 --> 00:13:42,160 Speaker 1: of retirement, not less. Let's dig into this because this 290 00:13:42,280 --> 00:13:45,000 Speaker 1: happens a lot and it's an important topic to cover. 291 00:13:45,760 --> 00:13:49,800 Speaker 2: This research comes from the ebri I Employee Benefit Research Institute. 292 00:13:49,800 --> 00:13:51,400 Speaker 2: We get a lot of good information out of them. 293 00:13:51,720 --> 00:13:53,640 Speaker 2: They've been tracking and they found for the first five 294 00:13:53,679 --> 00:13:56,079 Speaker 2: to ten years of retirement, spending often rises. 295 00:13:56,120 --> 00:13:58,560 Speaker 3: Well, this is the reason behind this kind of makes sense. 296 00:13:58,600 --> 00:14:01,200 Speaker 2: This is when we're healthiest, most energetic, and finally ready 297 00:14:01,240 --> 00:14:02,760 Speaker 2: to do the things they've been putting off. This is 298 00:14:02,800 --> 00:14:05,240 Speaker 2: bucket list time, right for those of us who kept 299 00:14:05,240 --> 00:14:07,520 Speaker 2: a bucket list all those years. Here's all the awesome 300 00:14:07,559 --> 00:14:10,160 Speaker 2: things that I'm going to do, but when I have 301 00:14:10,280 --> 00:14:11,920 Speaker 2: the time to do it. Well, that's really the first 302 00:14:11,960 --> 00:14:16,560 Speaker 2: five to ten years worth of retirement, and when we 303 00:14:16,640 --> 00:14:18,599 Speaker 2: have time, we tend to fill it. When there's a 304 00:14:18,679 --> 00:14:20,960 Speaker 2: vacuum of time, we tend to fill that vacuum with spending. 305 00:14:20,960 --> 00:14:23,160 Speaker 2: So that's not necessarily a bad thing, but for sure 306 00:14:23,280 --> 00:14:25,280 Speaker 2: we have to get our sea legs when it comes 307 00:14:25,320 --> 00:14:28,600 Speaker 2: to being actually retired and understanding what our. 308 00:14:28,480 --> 00:14:29,360 Speaker 3: Lifestyle is going to be like. 309 00:14:29,400 --> 00:14:32,280 Speaker 2: So this can include vacations, home remodels, maybe even an 310 00:14:32,400 --> 00:14:34,760 Speaker 2: entire second home. And you know, let's be honest, a 311 00:14:34,760 --> 00:14:36,360 Speaker 2: lot of people just want to spike the football and 312 00:14:36,400 --> 00:14:38,040 Speaker 2: celebrate the fact that they don't have to clock in 313 00:14:38,080 --> 00:14:39,600 Speaker 2: on a Monday morning anymore. 314 00:14:40,960 --> 00:14:43,440 Speaker 1: Yeah, spike the football and write a half million dollar 315 00:14:43,600 --> 00:14:46,200 Speaker 1: checked for whatever, an RV or a second home. I 316 00:14:46,200 --> 00:14:49,120 Speaker 1: think the point we're trying to make here is and 317 00:14:49,600 --> 00:14:52,880 Speaker 1: we talk about this in reverse, telling people not just 318 00:14:52,880 --> 00:14:56,160 Speaker 1: just hoard all their money and not spend it and 319 00:14:56,240 --> 00:14:58,520 Speaker 1: not have any fun and leave a whole boatload of 320 00:14:58,520 --> 00:15:00,280 Speaker 1: money to their airs, you know, when they're in their 321 00:15:00,320 --> 00:15:03,360 Speaker 1: eighties and nineties. But you know this point, you have 322 00:15:03,400 --> 00:15:06,120 Speaker 1: to plan for this stuff. If you're thinking about doing 323 00:15:06,200 --> 00:15:09,400 Speaker 1: these major big ticket items, the crews, the second home, 324 00:15:09,720 --> 00:15:13,240 Speaker 1: the home remodel, the RV, talk about it in advance 325 00:15:13,240 --> 00:15:16,320 Speaker 1: of retirement and make sure that's factored in to your 326 00:15:16,360 --> 00:15:20,280 Speaker 1: retirement plan, because you only want to retire once, and 327 00:15:20,320 --> 00:15:21,840 Speaker 1: you don't want to come up, you know, in your 328 00:15:21,880 --> 00:15:24,320 Speaker 1: late seventies and eighties and say, shoot, I'm about to 329 00:15:24,360 --> 00:15:26,400 Speaker 1: run out of money. 330 00:15:25,760 --> 00:15:27,480 Speaker 2: Yeah, so we want to make sure that we're on 331 00:15:27,520 --> 00:15:29,720 Speaker 2: top of things. And this all starts with sit down 332 00:15:29,760 --> 00:15:31,800 Speaker 2: with your spouse if you're married, or even if you 333 00:15:31,880 --> 00:15:33,360 Speaker 2: just need to go sit on the porch and stare 334 00:15:33,400 --> 00:15:35,720 Speaker 2: off into the sunset and think about what you want 335 00:15:35,760 --> 00:15:38,240 Speaker 2: as an individual. It hasn't It just has everything to 336 00:15:38,240 --> 00:15:39,760 Speaker 2: do with what is it going to be like when 337 00:15:39,800 --> 00:15:42,920 Speaker 2: I don't have to adhere to someone else's schedule? 338 00:15:43,520 --> 00:15:45,640 Speaker 3: So the big thing to Paytastic Day. 339 00:15:45,760 --> 00:15:49,480 Speaker 1: You just brought up an excellent point here, and that's 340 00:15:49,320 --> 00:15:52,640 Speaker 1: it is so critical to have both spouses in the 341 00:15:52,760 --> 00:15:57,480 Speaker 1: room talking about financial goals, especially in retirement because let's 342 00:15:57,520 --> 00:16:00,680 Speaker 1: face it, whether one spouse is working in a job 343 00:16:00,720 --> 00:16:02,600 Speaker 1: and the other is stay at home, or if both 344 00:16:02,640 --> 00:16:08,040 Speaker 1: spouses are working, everyone has in their mind what retirement 345 00:16:08,080 --> 00:16:11,160 Speaker 1: looks like to them, and oftentimes, when you're raising kids 346 00:16:11,200 --> 00:16:13,800 Speaker 1: and working hard and you're busy and you're in the 347 00:16:13,840 --> 00:16:17,600 Speaker 1: office all day, you're not communicating with your spouse on 348 00:16:17,680 --> 00:16:21,040 Speaker 1: what he or she thinks retirement should look like. So 349 00:16:21,200 --> 00:16:24,600 Speaker 1: it's really important to when you're talking about goals, have 350 00:16:24,760 --> 00:16:27,440 Speaker 1: both spouses in the room to talk about this stuff 351 00:16:27,880 --> 00:16:32,160 Speaker 1: so you know when you start attaching dollars and cents 352 00:16:32,200 --> 00:16:34,960 Speaker 1: to these goals. You've got to make sure the plan's 353 00:16:35,000 --> 00:16:38,840 Speaker 1: going to work, and do that in advance so one 354 00:16:38,920 --> 00:16:41,120 Speaker 1: or both spouses aren't disappointed in the end. 355 00:16:41,440 --> 00:16:44,880 Speaker 2: That's really important. And this all comes through. We have 356 00:16:44,920 --> 00:16:46,760 Speaker 2: some data to support this too, So a twenty two 357 00:16:47,080 --> 00:16:49,720 Speaker 2: JP Morgan studies showed that about six and ten retirees 358 00:16:50,120 --> 00:16:52,680 Speaker 2: spent the same or more in the first decade of retirement. 359 00:16:52,680 --> 00:16:55,320 Speaker 2: So there's a kind of exclamation point to this whole 360 00:16:55,480 --> 00:16:58,520 Speaker 2: topic here of making sure we understand you know what's coming. 361 00:16:58,520 --> 00:16:59,960 Speaker 2: And by the way, we're not talking about medical cost 362 00:17:00,040 --> 00:17:02,200 Speaker 2: I'm not talking about the unfund stuff that comes later. 363 00:17:02,200 --> 00:17:04,400 Speaker 2: We're talking about people just living their lives than once 364 00:17:04,400 --> 00:17:07,000 Speaker 2: they finally accomplish that some level of freedom. 365 00:17:07,680 --> 00:17:09,720 Speaker 1: Yeah, and for those that do have a good amount 366 00:17:09,720 --> 00:17:12,600 Speaker 1: of wealth, the risk isn't necessarily running out of money, 367 00:17:12,680 --> 00:17:15,920 Speaker 1: but misaligning your wealth with your lifestyle. You don't want 368 00:17:15,920 --> 00:17:19,480 Speaker 1: to live the first ten years in retirement way under budget, 369 00:17:20,040 --> 00:17:22,600 Speaker 1: only to pass away with more money than you ever 370 00:17:22,800 --> 00:17:26,040 Speaker 1: intended to leave behind, or worse, live it up early 371 00:17:26,080 --> 00:17:29,040 Speaker 1: and then find yourself tightening the belt when you're eighty again. 372 00:17:29,600 --> 00:17:30,480 Speaker 3: It's good to. 373 00:17:31,280 --> 00:17:33,800 Speaker 1: Get take advantage of those go go years as you 374 00:17:33,920 --> 00:17:36,800 Speaker 1: called them, the first few years of retirement. But talk 375 00:17:36,880 --> 00:17:40,880 Speaker 1: about it, talk about it with both spouses, and plan ahead. 376 00:17:40,600 --> 00:17:42,040 Speaker 3: And talk about it with an advisor. 377 00:17:42,080 --> 00:17:43,800 Speaker 2: I mean, this is where this is something where the 378 00:17:43,840 --> 00:17:46,560 Speaker 2: common question that I bring up when I'm in when 379 00:17:46,560 --> 00:17:48,239 Speaker 2: I can see that I'm in a situation where these 380 00:17:48,240 --> 00:17:49,840 Speaker 2: folks are going to be okay, this is you know, 381 00:17:50,320 --> 00:17:52,240 Speaker 2: I really feel after thirty years of doing this, Bob, 382 00:17:52,280 --> 00:17:54,119 Speaker 2: I feel like my job every meeting is going to 383 00:17:54,160 --> 00:17:56,919 Speaker 2: be one of two outcomes. It's me pushing someone to 384 00:17:56,960 --> 00:17:59,280 Speaker 2: be more responsible because they're about to run their train 385 00:17:59,320 --> 00:18:01,239 Speaker 2: off a cliff, or pushing them to go out and 386 00:18:01,320 --> 00:18:03,359 Speaker 2: enjoy what they've built. Every meeting fits in one of 387 00:18:03,359 --> 00:18:05,439 Speaker 2: those two categories. So one of the first things that 388 00:18:05,480 --> 00:18:07,720 Speaker 2: I ask people is when we're building a financial plan, 389 00:18:07,880 --> 00:18:10,919 Speaker 2: is you know, we need to know your goals. What 390 00:18:10,920 --> 00:18:12,359 Speaker 2: do you have in mind? What is it that you 391 00:18:12,400 --> 00:18:14,159 Speaker 2: want to do? And they'll say, well, we really want 392 00:18:14,200 --> 00:18:15,520 Speaker 2: to kind of make sure it works. So we're just 393 00:18:15,520 --> 00:18:17,359 Speaker 2: going to keep it simple, and we're going to build 394 00:18:17,359 --> 00:18:19,240 Speaker 2: a garden, and we're going to eat vegetables out of 395 00:18:19,240 --> 00:18:20,840 Speaker 2: the garden and we're just not going to leave the house, 396 00:18:21,119 --> 00:18:23,440 Speaker 2: and that sounds like a terrible way to exist for 397 00:18:23,800 --> 00:18:26,120 Speaker 2: the rest of someone's life. So I kind of try 398 00:18:26,119 --> 00:18:28,080 Speaker 2: to turn them around the other way. If you ever 399 00:18:28,200 --> 00:18:30,240 Speaker 2: kind of sort of thought maybe you wanted to do 400 00:18:30,280 --> 00:18:33,280 Speaker 2: something that's going in the plan, Let's throw every last 401 00:18:33,320 --> 00:18:35,720 Speaker 2: goal in here, remodel the house, the second house, the 402 00:18:35,720 --> 00:18:38,320 Speaker 2: around the world, retirement trip, do all of those things. 403 00:18:38,440 --> 00:18:40,239 Speaker 3: Let's run the math. Assuming we've done that. 404 00:18:40,440 --> 00:18:42,680 Speaker 2: If it works, cool, Now you've got to get out 405 00:18:42,680 --> 00:18:44,240 Speaker 2: of your own way and decide which of these things 406 00:18:44,280 --> 00:18:45,720 Speaker 2: you're really going to pull the trigger and write a 407 00:18:45,760 --> 00:18:48,639 Speaker 2: check for. If it doesn't work, that's okay, because we 408 00:18:48,640 --> 00:18:51,240 Speaker 2: were throwing the kitchen sink into it. Now we prioritize 409 00:18:51,240 --> 00:18:53,239 Speaker 2: what are the things that are most important, what are 410 00:18:53,240 --> 00:18:55,159 Speaker 2: the things we can live without. That way, when we 411 00:18:55,240 --> 00:18:58,400 Speaker 2: do those extra fun things that maybe aren't necessary to retirement, 412 00:18:58,440 --> 00:18:59,720 Speaker 2: but sure are a heck of a lot of fun, 413 00:19:00,040 --> 00:19:01,960 Speaker 2: you don't have to feel guilty about it because we 414 00:19:02,080 --> 00:19:03,680 Speaker 2: planned ahead exactly. 415 00:19:03,720 --> 00:19:06,320 Speaker 1: And what you just talked about there is being proactive 416 00:19:06,960 --> 00:19:10,120 Speaker 1: and communicating clearly. I love it. That's what good financial 417 00:19:10,160 --> 00:19:13,200 Speaker 1: planning is all about. Here's the all Worth Advice plan 418 00:19:13,320 --> 00:19:17,560 Speaker 1: for a retirement that matches your lifestyle, not just a formula. 419 00:19:18,040 --> 00:19:21,560 Speaker 1: All right, scams, The scammers out there are getting smarter, 420 00:19:22,080 --> 00:19:25,000 Speaker 1: and we'll show you the latest tricks con artists are 421 00:19:25,119 --> 00:19:28,520 Speaker 1: using and how to spot them before they spot you. 422 00:19:28,600 --> 00:19:31,040 Speaker 1: Coming up next, you're listening to Simply Money presented by 423 00:19:31,080 --> 00:19:39,680 Speaker 1: Allworth Financial on fifty five KRC the talk station. You're 424 00:19:39,720 --> 00:19:42,560 Speaker 1: listening to Simply Money presented by Allworth Financial on Bob 425 00:19:42,640 --> 00:19:45,960 Speaker 1: Sponseller along with Brian James, joined tonight by our good 426 00:19:45,960 --> 00:19:50,280 Speaker 1: friend Josio Erlick, President of the Cincinnati Better Business Bureau, 427 00:19:50,359 --> 00:19:53,320 Speaker 1: Joe Soo, Thanks as always for spending some time with 428 00:19:53,400 --> 00:19:56,520 Speaker 1: us tonight. Hope you're doing well and I know you 429 00:19:56,640 --> 00:19:59,680 Speaker 1: want to talk. There's a whole bunch of scams out there. 430 00:20:00,119 --> 00:20:03,720 Speaker 1: We're always on the lookout on these latest scams and 431 00:20:04,000 --> 00:20:06,440 Speaker 1: preventing our clients from getting exposed to them. 432 00:20:06,720 --> 00:20:08,320 Speaker 3: I know you've got a lot to talk about. 433 00:20:08,520 --> 00:20:10,920 Speaker 1: Walk us through some of this latest stuff we need 434 00:20:10,920 --> 00:20:11,520 Speaker 1: to be aware of. 435 00:20:11,840 --> 00:20:14,879 Speaker 4: Well, let's start out with fantasy football. There are so 436 00:20:14,960 --> 00:20:19,800 Speaker 4: many people that play fantasy football. It's very popular. We 437 00:20:19,960 --> 00:20:23,119 Speaker 4: have seen a spike in online gaming scams as a 438 00:20:23,160 --> 00:20:26,119 Speaker 4: result of that, you know, it's really easy to end 439 00:20:26,200 --> 00:20:29,960 Speaker 4: up on an illegal betting site, especially if you're scrolling 440 00:20:30,040 --> 00:20:34,560 Speaker 4: through social media. If you're somebody who relates to betting influencers, 441 00:20:34,600 --> 00:20:37,359 Speaker 4: and that's a lot of young people. You can find 442 00:20:37,400 --> 00:20:43,040 Speaker 4: gambling influencers all over TikTok and Instagram. They pose as 443 00:20:43,160 --> 00:20:46,760 Speaker 4: betting gurus, but their goal is more to go viral 444 00:20:46,840 --> 00:20:51,200 Speaker 4: than to give genuine betting advice. They hype themselves big 445 00:20:51,240 --> 00:20:54,000 Speaker 4: time by claiming things like I made ten thousand dollars 446 00:20:54,000 --> 00:20:57,080 Speaker 4: in a day, and they post things like guaranteed Sunday 447 00:20:57,080 --> 00:21:01,560 Speaker 4: Football wins or NFL lock picks, and you know, these 448 00:21:01,600 --> 00:21:04,760 Speaker 4: claims are how they're going to lure your into clicking 449 00:21:04,800 --> 00:21:08,240 Speaker 4: the link in their post. This link is supposedly going 450 00:21:08,280 --> 00:21:11,200 Speaker 4: to direct you to some secret betting site, but it's 451 00:21:11,280 --> 00:21:14,280 Speaker 4: really a fake site, or it's a cloned version of 452 00:21:14,320 --> 00:21:18,359 Speaker 4: a legitimate betting site. Think a URL that's spelled slightly 453 00:21:18,480 --> 00:21:22,040 Speaker 4: different than the real site is spelled. The games on 454 00:21:22,119 --> 00:21:25,280 Speaker 4: these sites are usually rigs, so you have no chance 455 00:21:25,280 --> 00:21:27,200 Speaker 4: of winning, and even if you do win, the site 456 00:21:27,240 --> 00:21:30,480 Speaker 4: won't allow you to withdraw your winnings. Not only are 457 00:21:30,480 --> 00:21:32,920 Speaker 4: you going to lose the money you deposited into the site, 458 00:21:32,960 --> 00:21:36,840 Speaker 4: but the scammers now have your personal financial information to 459 00:21:36,960 --> 00:21:41,000 Speaker 4: either use themselves or they'll sell it on the dark web. Now, 460 00:21:41,000 --> 00:21:43,320 Speaker 4: if you want to try your luck, make sure you're 461 00:21:43,400 --> 00:21:47,280 Speaker 4: using a legitimate betting website and check it out first 462 00:21:47,359 --> 00:21:48,880 Speaker 4: at BBB dot org. 463 00:21:49,800 --> 00:21:51,680 Speaker 3: That's great that you track those types of sites. 464 00:21:51,680 --> 00:21:54,639 Speaker 2: I didn't know that that was the gambling sites with 465 00:21:54,720 --> 00:21:55,960 Speaker 2: something that's has that always been there? 466 00:21:55,960 --> 00:21:57,119 Speaker 3: Has BBB always tracked that. 467 00:21:58,840 --> 00:22:01,360 Speaker 4: Wherever the scams are, we're tracking it, and we track 468 00:22:01,480 --> 00:22:05,400 Speaker 4: legitimate businesses across all industries and the ones that are 469 00:22:05,400 --> 00:22:07,240 Speaker 4: causing people headache and heartache. 470 00:22:07,560 --> 00:22:10,639 Speaker 1: All right, Josia, You've also got some updates on passport 471 00:22:10,720 --> 00:22:12,640 Speaker 1: scams and timeshare scams. 472 00:22:13,600 --> 00:22:17,160 Speaker 4: Right, So you got this big trip trip next month, 473 00:22:17,359 --> 00:22:20,639 Speaker 4: and you just realized that your passport is going to expire. 474 00:22:21,240 --> 00:22:23,399 Speaker 4: So you go online to find a solution and you 475 00:22:23,480 --> 00:22:27,320 Speaker 4: come across a website that promises to expedite your renewal 476 00:22:27,400 --> 00:22:32,320 Speaker 4: passport for a fee. Unfortunately, this is not your solution. 477 00:22:32,520 --> 00:22:35,040 Speaker 4: It's going to be your nightmare because this scam can 478 00:22:35,119 --> 00:22:38,920 Speaker 4: cost you hundreds of dollars, not to mention possibly having 479 00:22:38,960 --> 00:22:43,200 Speaker 4: to cancel your trip. These fake passport sites are designed 480 00:22:43,200 --> 00:22:46,879 Speaker 4: to look exactly like the official US Department of State site, 481 00:22:46,920 --> 00:22:52,119 Speaker 4: which is travel dot state dot govgov. That's important, and 482 00:22:52,160 --> 00:22:55,240 Speaker 4: these guys are counting on your desperation to keep you 483 00:22:55,280 --> 00:22:59,040 Speaker 4: from thinking clearly. You could end up paying for forms 484 00:22:59,040 --> 00:23:01,320 Speaker 4: that you can get for free on the government site, 485 00:23:01,359 --> 00:23:04,640 Speaker 4: and in the process you'll also be giving up sensitive 486 00:23:04,680 --> 00:23:08,520 Speaker 4: information like your Social Security number. If you need an 487 00:23:08,520 --> 00:23:11,600 Speaker 4: expedited passport, there are steps you can take that you 488 00:23:11,640 --> 00:23:15,600 Speaker 4: can only do it through official channels. You can pay 489 00:23:15,640 --> 00:23:19,480 Speaker 4: for expedited processing by mailing in your paperwork and fees, 490 00:23:20,080 --> 00:23:22,240 Speaker 4: or if this is a really close window, you can 491 00:23:22,280 --> 00:23:24,879 Speaker 4: go to a passport agency. And the closest ones to 492 00:23:24,960 --> 00:23:28,320 Speaker 4: us right now are Chicago and Detroit, although there is 493 00:23:28,359 --> 00:23:31,040 Speaker 4: will be one opening up in Cincinnati next year, so 494 00:23:31,119 --> 00:23:35,840 Speaker 4: that's good news. And the timeshare scams you mentioned, you 495 00:23:35,880 --> 00:23:40,720 Speaker 4: know people have gotten involved in time shares. Many of 496 00:23:40,760 --> 00:23:43,280 Speaker 4: them are just fine and they are enjoying them, but 497 00:23:43,320 --> 00:23:45,480 Speaker 4: there are a lot of people that are just over 498 00:23:45,520 --> 00:23:48,680 Speaker 4: their time shares. The fees are piling up. You don't 499 00:23:48,760 --> 00:23:51,400 Speaker 4: use it, you just want out. Then you get a 500 00:23:51,400 --> 00:23:54,480 Speaker 4: call or you see an ad online for timeshare legal 501 00:23:54,520 --> 00:23:58,639 Speaker 4: consulting or an exit company, and they say they have 502 00:23:58,720 --> 00:24:01,639 Speaker 4: a team of lawyers on staff and they've helped thousands 503 00:24:01,640 --> 00:24:05,119 Speaker 4: of people exit their timeshare. That's all part of the scam. 504 00:24:05,160 --> 00:24:08,040 Speaker 4: To get you to trust them. They'll demand a huge 505 00:24:08,119 --> 00:24:11,639 Speaker 4: upfront fee, claiming it's for legal services, filing fees, or 506 00:24:11,680 --> 00:24:16,080 Speaker 4: even to guarantee your exit, and they'll use high pressure tactics, 507 00:24:16,119 --> 00:24:18,399 Speaker 4: of course, claiming you have to sign up right now 508 00:24:18,480 --> 00:24:21,280 Speaker 4: because of a limited time deal or maybe there's an 509 00:24:21,359 --> 00:24:24,879 Speaker 4: upcoming change in the law. According to them, after you 510 00:24:25,000 --> 00:24:28,240 Speaker 4: pay up, they're going to stop returning your calls and 511 00:24:28,480 --> 00:24:31,600 Speaker 4: all those lawyers you were told about are nowhere to 512 00:24:31,600 --> 00:24:34,959 Speaker 4: be found. They've got your money and probably pass your 513 00:24:35,000 --> 00:24:38,479 Speaker 4: timeshare onto a broker. You are still the owner of 514 00:24:38,480 --> 00:24:41,520 Speaker 4: that time share, You're still responsible for all the fees, 515 00:24:41,600 --> 00:24:44,640 Speaker 4: and now you're stuck waiting to see if the broker 516 00:24:44,680 --> 00:24:47,800 Speaker 4: finds a buyer, which could be years if they ever do. 517 00:24:49,400 --> 00:24:52,560 Speaker 1: All right, Josio, I'm sure you and your team monitor 518 00:24:53,320 --> 00:24:57,720 Speaker 1: reputable companies versus questionable companies, and I hear these timeshare 519 00:24:57,760 --> 00:25:00,560 Speaker 1: ads quite often on the radio. Are you able to 520 00:25:00,640 --> 00:25:05,400 Speaker 1: name specific companies? Maybe they don't advert are there specific 521 00:25:05,800 --> 00:25:08,840 Speaker 1: companies out there that you already know, Hey, watch out 522 00:25:08,840 --> 00:25:10,920 Speaker 1: for that company, do not contact them. 523 00:25:12,560 --> 00:25:15,879 Speaker 4: There are specific companies that BBB is aware of, but 524 00:25:16,440 --> 00:25:19,520 Speaker 4: you as the consumer, need to go to our website 525 00:25:20,480 --> 00:25:23,720 Speaker 4: and check the company that you are considering doing business with, 526 00:25:24,440 --> 00:25:26,680 Speaker 4: and the report will be there that this is either 527 00:25:26,760 --> 00:25:29,160 Speaker 4: a company that you can trust or it's a company 528 00:25:29,160 --> 00:25:30,480 Speaker 4: that you should stay away from. 529 00:25:30,960 --> 00:25:32,959 Speaker 3: So they want to change the subjects here a little bit. 530 00:25:33,119 --> 00:25:35,520 Speaker 2: You also have mentioned in the past social media account 531 00:25:35,600 --> 00:25:38,080 Speaker 2: takeovers in the ways that your life can be dominated 532 00:25:38,080 --> 00:25:41,080 Speaker 2: if somebody gets ahold of your password or hacks into 533 00:25:41,080 --> 00:25:42,960 Speaker 2: your account. How does this work and how can we 534 00:25:43,000 --> 00:25:44,480 Speaker 2: protect ourselves from these kinds of things. 535 00:25:45,080 --> 00:25:47,679 Speaker 4: Well, one of the prime targets of a scammer is 536 00:25:47,720 --> 00:25:51,480 Speaker 4: to get access to your social media account log in information. 537 00:25:51,600 --> 00:25:55,159 Speaker 4: If they have that information, they can log into your 538 00:25:55,160 --> 00:25:59,280 Speaker 4: social media account and impersonate you. Once they're in, they 539 00:25:59,280 --> 00:26:03,200 Speaker 4: could message your family and friends, usually asking for money 540 00:26:03,200 --> 00:26:06,400 Speaker 4: in some fashion. Maybe they will claim that you've had 541 00:26:06,440 --> 00:26:10,320 Speaker 4: an emergency. In one case, a man reported that he 542 00:26:10,400 --> 00:26:13,320 Speaker 4: saw his friend listed his car for sale on Facebook. 543 00:26:14,160 --> 00:26:17,520 Speaker 4: He then went to message his friend about what how 544 00:26:17,600 --> 00:26:19,760 Speaker 4: much is it going to cost for your car, and 545 00:26:19,800 --> 00:26:22,399 Speaker 4: the scammer who had taken over the account said he 546 00:26:22,400 --> 00:26:27,399 Speaker 4: would only accept cryptocurrency, so the man got suspicious and 547 00:26:27,480 --> 00:26:30,000 Speaker 4: called his friend, who knew nothing about it, didn't have 548 00:26:30,040 --> 00:26:33,479 Speaker 4: a car for sale, and he realized that he couldn't 549 00:26:33,480 --> 00:26:37,199 Speaker 4: log into his Facebook account. His account had been hijacked. 550 00:26:38,200 --> 00:26:41,320 Speaker 4: So losing access to your account, all your pictures, and 551 00:26:41,400 --> 00:26:44,920 Speaker 4: your contacts is bad enough, but it's even worse if 552 00:26:44,960 --> 00:26:48,080 Speaker 4: somebody you know falls for the scam and sends these 553 00:26:48,160 --> 00:26:52,440 Speaker 4: crooks money. To protect yourself and your family and friends, 554 00:26:52,600 --> 00:26:56,080 Speaker 4: make sure you use a strong password. I cannot emphasize 555 00:26:56,080 --> 00:27:00,919 Speaker 4: that enough, and turn on multi factor authentication. And if 556 00:27:00,960 --> 00:27:04,639 Speaker 4: a friend suddenly messages you on social media asking for money, 557 00:27:04,680 --> 00:27:08,960 Speaker 4: either directly or indirectly, be careful because it might not 558 00:27:09,080 --> 00:27:11,440 Speaker 4: be your friend at all. 559 00:27:11,600 --> 00:27:14,879 Speaker 1: Joe Cill, this, this impersonation scam actually happened. You know, 560 00:27:15,080 --> 00:27:18,560 Speaker 1: My wife and I didn't get scammed, but somebody thought 561 00:27:18,680 --> 00:27:22,760 Speaker 1: they were renting our condo and actually sent money to someone, 562 00:27:22,920 --> 00:27:25,160 Speaker 1: only to find out that the whole thing was faked. 563 00:27:25,160 --> 00:27:28,800 Speaker 1: They didn't impersonate our account, but they created an account 564 00:27:28,840 --> 00:27:31,720 Speaker 1: to try to rent our condo out to somebody and Thankfully, 565 00:27:31,760 --> 00:27:34,280 Speaker 1: a neighbor, you know, discovered what was going on. So 566 00:27:34,359 --> 00:27:36,960 Speaker 1: this is a real thing out there, and we really 567 00:27:37,040 --> 00:27:39,280 Speaker 1: appreciate you coming on tonight to share some of this 568 00:27:39,280 --> 00:27:42,000 Speaker 1: stuff with us. You're listening to Simply Money presented by 569 00:27:42,040 --> 00:27:51,000 Speaker 1: Allworth Financial on fifty five KRC, the talk station. You're 570 00:27:51,040 --> 00:27:53,880 Speaker 1: listening to Simply Money presented by Allworth Financial. I'm Bob 571 00:27:53,960 --> 00:27:57,040 Speaker 1: Sponsorer along with Brian James. Do you have a financial 572 00:27:57,119 --> 00:27:59,480 Speaker 1: question you'd like for us to answer. There's a big 573 00:27:59,520 --> 00:28:02,119 Speaker 1: fat button you can click while you're listening to the 574 00:28:02,160 --> 00:28:05,760 Speaker 1: show right on the iHeart app. Simply record your question 575 00:28:05,960 --> 00:28:10,480 Speaker 1: and it will and always comes straight to us. All right, Brian, 576 00:28:10,560 --> 00:28:13,399 Speaker 1: Let's lead things off tonight with Tom and Hyde Park, 577 00:28:13,480 --> 00:28:17,320 Speaker 1: who says, I know my portfolio is too concentrated in tech, 578 00:28:18,600 --> 00:28:22,520 Speaker 1: especially Navidias stock. Should I be looking at hedging strategies 579 00:28:22,640 --> 00:28:26,000 Speaker 1: or just start selling now even if the tax bill 580 00:28:26,119 --> 00:28:26,760 Speaker 1: is painful. 581 00:28:27,080 --> 00:28:29,640 Speaker 2: Well, congratulations Tom that you put yourself in a good 582 00:28:29,640 --> 00:28:32,320 Speaker 2: solid position with some of these strong technology positions that 583 00:28:32,359 --> 00:28:34,040 Speaker 2: have been driving the market for the better part of 584 00:28:34,080 --> 00:28:36,679 Speaker 2: several decades. But also glad to hear you're willing to 585 00:28:36,960 --> 00:28:39,320 Speaker 2: maybe step outside the casino with some coins left in 586 00:28:39,320 --> 00:28:41,640 Speaker 2: you and your little bucket. So let's talk about how 587 00:28:41,680 --> 00:28:43,360 Speaker 2: you can get out of this. First thing would be, 588 00:28:43,360 --> 00:28:45,920 Speaker 2: obviously you can simply sell it, and you can spread 589 00:28:45,920 --> 00:28:48,400 Speaker 2: it over time. Maybe maybe it's a situation where you 590 00:28:48,440 --> 00:28:50,720 Speaker 2: could you buy enough time to sell a little bit 591 00:28:50,960 --> 00:28:53,560 Speaker 2: in the current tax year and move some into the 592 00:28:53,560 --> 00:28:54,360 Speaker 2: second tax year. 593 00:28:54,400 --> 00:28:56,400 Speaker 3: That's one option just to think about. 594 00:28:56,600 --> 00:28:58,760 Speaker 2: Another would be you can you can potentially look at 595 00:28:58,800 --> 00:29:00,840 Speaker 2: it using something called an exchange traded fund. If this 596 00:29:00,880 --> 00:29:03,200 Speaker 2: position you mentioned in video, if that position is over 597 00:29:03,240 --> 00:29:06,120 Speaker 2: a million dollars, then you may very well be able 598 00:29:06,120 --> 00:29:09,160 Speaker 2: to put that into an exchange fund and in response 599 00:29:09,280 --> 00:29:12,600 Speaker 2: receive a diversified portfolio of other people's stocks who have 600 00:29:12,640 --> 00:29:15,960 Speaker 2: the same problem. So you're basically committing your overly large 601 00:29:16,000 --> 00:29:18,960 Speaker 2: position in exchange for a portion of everyone else's overly 602 00:29:19,040 --> 00:29:21,480 Speaker 2: large position. That is not a taxable event. Lots of 603 00:29:21,520 --> 00:29:24,040 Speaker 2: moving parts to that, though. You can also hedge with options. 604 00:29:24,040 --> 00:29:26,640 Speaker 2: You can do something called callers or protective puts, which 605 00:29:26,680 --> 00:29:29,840 Speaker 2: is basically putting a floor and a ceiling above your 606 00:29:29,960 --> 00:29:31,640 Speaker 2: position so that it can't hurt you too much if 607 00:29:31,640 --> 00:29:34,520 Speaker 2: it goes the wrong direction. And then finally, something else 608 00:29:34,560 --> 00:29:36,760 Speaker 2: to look for is if there are any positions elsewhere 609 00:29:36,800 --> 00:29:39,720 Speaker 2: in your portfolio that are sitting at losses, you might 610 00:29:39,800 --> 00:29:42,040 Speaker 2: sell those. At the same time, those losses will net 611 00:29:42,080 --> 00:29:45,120 Speaker 2: out against the big gain you have in your technology portfolio. 612 00:29:45,200 --> 00:29:47,080 Speaker 2: Perhaps there's some out there that you can take advantage of. 613 00:29:48,000 --> 00:29:51,720 Speaker 2: Rachel in Fort Mitchell says she's invested an interested in 614 00:29:51,800 --> 00:29:54,600 Speaker 2: Charitable Remainder trust, but she's wondering whether they really provide 615 00:29:54,600 --> 00:29:56,720 Speaker 2: an income as well as a benefit for charity, or 616 00:29:56,800 --> 00:29:59,520 Speaker 2: is this just a tax gimmick that CPAs and lawyers 617 00:29:59,560 --> 00:30:00,160 Speaker 2: try to sell us. 618 00:30:00,240 --> 00:30:04,280 Speaker 1: Bobby think, well, it's definitely not a tax gimmick, Rachel. 619 00:30:04,360 --> 00:30:06,440 Speaker 1: I mean, these things are real. They've been used for 620 00:30:06,520 --> 00:30:09,160 Speaker 1: years and years and years, and in the right situation 621 00:30:09,360 --> 00:30:13,240 Speaker 1: they work remarkably well. There's just a lot of options 622 00:30:13,240 --> 00:30:15,640 Speaker 1: and a lot of moving parts with these things. So 623 00:30:16,200 --> 00:30:18,000 Speaker 1: one thing to keep in mind is when you do 624 00:30:18,160 --> 00:30:21,280 Speaker 1: give that stock away, the benefit is you avoid all 625 00:30:21,360 --> 00:30:24,200 Speaker 1: the capital gains taxes on the stock that you gifted 626 00:30:24,240 --> 00:30:27,800 Speaker 1: into that trust and it leaves your taxable estate. It 627 00:30:27,920 --> 00:30:31,120 Speaker 1: is an irrevocable gift to charity, and the charity will 628 00:30:31,640 --> 00:30:34,440 Speaker 1: receive what's left in that trust after you and your 629 00:30:34,480 --> 00:30:37,680 Speaker 1: husband pass away. The key is figuring out how much 630 00:30:37,840 --> 00:30:41,080 Speaker 1: income you want or need to retain and for how long, 631 00:30:41,480 --> 00:30:44,240 Speaker 1: and you can dial that period up and down, you know, 632 00:30:44,280 --> 00:30:47,000 Speaker 1: based on a period of years or over both lifetimes. 633 00:30:47,440 --> 00:30:50,760 Speaker 1: And then the tax deduction for doing all this varies 634 00:30:51,160 --> 00:30:53,600 Speaker 1: based on how much income you're going to retain during 635 00:30:53,640 --> 00:30:56,760 Speaker 1: your life. So it's definitely a situation where you want 636 00:30:56,760 --> 00:31:00,200 Speaker 1: to sit down with a good fiduciary financial advisor in 637 00:31:00,280 --> 00:31:03,600 Speaker 1: CPA and map this out to make sure you customize 638 00:31:03,640 --> 00:31:07,160 Speaker 1: this if you're going to utilize this strategy for your 639 00:31:07,200 --> 00:31:09,840 Speaker 1: and your husband's you know, needs and goals down the road. 640 00:31:09,840 --> 00:31:12,320 Speaker 1: But it's not a gimmick. These things are real in 641 00:31:12,360 --> 00:31:15,720 Speaker 1: the right situation, they work very very well, all right. 642 00:31:15,800 --> 00:31:18,240 Speaker 1: Brian in Blue Ash says, most of our net worth 643 00:31:18,360 --> 00:31:22,240 Speaker 1: is an investment real estate. How do we create liquidity 644 00:31:22,320 --> 00:31:25,640 Speaker 1: for estate taxes so our heirs don't have to sell 645 00:31:25,720 --> 00:31:29,560 Speaker 1: property under pressure, you know, presumably after we pass away. 646 00:31:30,000 --> 00:31:31,480 Speaker 2: You know, this reminds me of a story that comes 647 00:31:31,560 --> 00:31:34,800 Speaker 2: up all the time when we talk about a state planning. So, uh, 648 00:31:34,800 --> 00:31:36,800 Speaker 2: I don't know if you remember, Bob, you remember Joe 649 00:31:36,920 --> 00:31:37,960 Speaker 2: Robbie Stadium where. 650 00:31:37,800 --> 00:31:39,240 Speaker 3: The Dolphins used to play. 651 00:31:39,160 --> 00:31:42,040 Speaker 2: Yeah, the Robbie family, Joe passed away without a will 652 00:31:42,160 --> 00:31:44,320 Speaker 2: and did not have estate plans in place. That team 653 00:31:44,360 --> 00:31:46,280 Speaker 2: and that stadium were worth an awful lot of money. 654 00:31:47,400 --> 00:31:49,240 Speaker 2: But you can't carve out a chunk of a team, 655 00:31:49,600 --> 00:31:52,160 Speaker 2: you know, or a building or whatever in pay stay taxes. 656 00:31:52,160 --> 00:31:54,240 Speaker 2: So they were basically forced to liquidate the team, and 657 00:31:54,280 --> 00:31:55,000 Speaker 2: hence there is no Joe. 658 00:31:55,240 --> 00:31:57,880 Speaker 1: I also remember the Jim Carrey movie where they stole 659 00:31:57,920 --> 00:31:58,440 Speaker 1: the dolphin. 660 00:31:58,520 --> 00:32:01,120 Speaker 2: Remember that that was Yes, that was not related at 661 00:32:01,160 --> 00:32:02,920 Speaker 2: all to a state planning. But I'm glad to see 662 00:32:02,960 --> 00:32:05,800 Speaker 2: you've had a spark of a memory, Bob. That's something 663 00:32:06,240 --> 00:32:09,240 Speaker 2: your advanced age. That's something to be proud of and celebrate. 664 00:32:09,600 --> 00:32:14,480 Speaker 2: Big moment for Bob. The reason I brought that up 665 00:32:15,560 --> 00:32:18,040 Speaker 2: is because because I. 666 00:32:17,960 --> 00:32:18,800 Speaker 3: Wanted to make fun of Bob. 667 00:32:18,840 --> 00:32:22,160 Speaker 2: Anyway, No, so this is a family didn't do any 668 00:32:22,200 --> 00:32:24,640 Speaker 2: planning and they were forced to sell their famili's big asset. 669 00:32:25,040 --> 00:32:27,440 Speaker 3: And that's problem. Real estate is ill liquid wealth. 670 00:32:27,760 --> 00:32:30,200 Speaker 2: So your heirs might inherit that valuable property, but Uncle 671 00:32:30,200 --> 00:32:32,520 Speaker 2: Sam's gonna come knocking for a state taxes within about 672 00:32:32,600 --> 00:32:34,840 Speaker 2: nine months, and that money has got to come from somewhere. 673 00:32:34,960 --> 00:32:36,480 Speaker 3: You might be able to borrow against it. 674 00:32:37,000 --> 00:32:40,160 Speaker 2: You might be able to sell off some parcels of it, 675 00:32:40,160 --> 00:32:42,520 Speaker 2: who knows, But regardless, the taxes are comeing. Do so 676 00:32:42,560 --> 00:32:45,720 Speaker 2: what you might consider, There are solutions out there. Properly 677 00:32:45,720 --> 00:32:48,720 Speaker 2: it's structured. A life insurance policy held in an irrevocable 678 00:32:48,720 --> 00:32:51,080 Speaker 2: life insurance trust makes money drop out of the sky. 679 00:32:51,160 --> 00:32:53,280 Speaker 2: Obviously you have to be insurable and healthy enough to 680 00:32:53,280 --> 00:32:56,120 Speaker 2: do this, but that can cause or that can cover 681 00:32:56,200 --> 00:32:59,960 Speaker 2: those kind of needs. Entity planning meaning what entity owns 682 00:33:00,080 --> 00:33:02,160 Speaker 2: this property. It can be held by an LLC or 683 00:33:02,200 --> 00:33:05,320 Speaker 2: a partnership. You can and you can use take advantage 684 00:33:05,360 --> 00:33:08,240 Speaker 2: of minority interest discounts to reduce the taxable estate value. 685 00:33:08,560 --> 00:33:11,680 Speaker 2: You can also look at gifting strategies during life, using 686 00:33:11,760 --> 00:33:14,880 Speaker 2: the annual gift tax exclusion to reduce what's left to 687 00:33:14,920 --> 00:33:17,400 Speaker 2: be taxed later. Charitable giving, strategic borrowing. There are a 688 00:33:17,480 --> 00:33:20,000 Speaker 2: number of things that you can do in this particular case. Okay, 689 00:33:20,000 --> 00:33:21,360 Speaker 2: we're going to hog a bunch of time from our 690 00:33:21,400 --> 00:33:23,560 Speaker 2: other questioners, so we're going to move on to Joseph 691 00:33:23,640 --> 00:33:27,239 Speaker 2: and Marymont. Joseph has some birds in the nest who 692 00:33:27,240 --> 00:33:29,640 Speaker 2: don't get along very well. And he's worried about that 693 00:33:29,920 --> 00:33:32,520 Speaker 2: their a state actually could tear the family apart based 694 00:33:32,560 --> 00:33:35,760 Speaker 2: on everybody's own perception of what they're going to get 695 00:33:35,760 --> 00:33:37,040 Speaker 2: out of this. So how do they build a plan, 696 00:33:37,120 --> 00:33:38,800 Speaker 2: Bob that keeps money from becoming a wedge? 697 00:33:39,800 --> 00:33:42,280 Speaker 1: Well, when I think about your question, Joseph, you know 698 00:33:42,320 --> 00:33:44,120 Speaker 1: the two things that come to mind is if you 699 00:33:44,200 --> 00:33:46,800 Speaker 1: own a business and you're trying to figure out who's 700 00:33:46,800 --> 00:33:49,320 Speaker 1: going to take over that business, or you own a 701 00:33:49,400 --> 00:33:53,600 Speaker 1: vacation property property that in you know, a perfect world, 702 00:33:53,600 --> 00:33:55,479 Speaker 1: we say, well, we're going to leave this to our 703 00:33:55,600 --> 00:33:58,720 Speaker 1: kids and they'll enjoy it with the grandkids, you know, 704 00:33:58,840 --> 00:34:03,440 Speaker 1: on generation after generation, and if the kids don't get along, 705 00:34:04,360 --> 00:34:06,800 Speaker 1: you really got to sit down and figure out how 706 00:34:06,800 --> 00:34:10,600 Speaker 1: to divide these assets up ahead of time. So, you know, 707 00:34:10,760 --> 00:34:14,160 Speaker 1: in a business situation, let's face it, usually one kid 708 00:34:14,280 --> 00:34:17,400 Speaker 1: or the most two is really interested in being involved 709 00:34:17,760 --> 00:34:20,880 Speaker 1: in the business and others aren't because they have other interests. 710 00:34:21,480 --> 00:34:25,080 Speaker 1: Communication up front, and again it doesn't have to be fair, 711 00:34:25,560 --> 00:34:28,480 Speaker 1: but you've got to communicate to try to avoid some 712 00:34:28,560 --> 00:34:31,640 Speaker 1: of these this family discord down the road. Same thing 713 00:34:32,040 --> 00:34:35,960 Speaker 1: with these vacation properties. Don't just pass it down and 714 00:34:36,040 --> 00:34:39,360 Speaker 1: hope it all works out, because oftentimes it creates a 715 00:34:39,360 --> 00:34:42,160 Speaker 1: big problem. All Right, coming up next, I've got my 716 00:34:42,320 --> 00:34:44,759 Speaker 1: two cents on how to plan ahead for some of 717 00:34:44,800 --> 00:34:47,720 Speaker 1: these big ticket items that we all want to spend 718 00:34:47,760 --> 00:34:50,840 Speaker 1: during our retirement years. You're listening to Simply Money presented 719 00:34:50,880 --> 00:34:54,480 Speaker 1: by all Worth Financial on fifty five KRC the talk station. 720 00:34:58,920 --> 00:35:01,480 Speaker 1: You're listening to Simply Money of my all Worth Financial 721 00:35:01,480 --> 00:35:05,200 Speaker 1: I Bob Sponseller along with Brian James. All Right, Brian, 722 00:35:05,280 --> 00:35:08,960 Speaker 1: we just went through a whole laundry list of lessons 723 00:35:09,000 --> 00:35:11,759 Speaker 1: here on how to plan to enter retirement and plan 724 00:35:11,840 --> 00:35:14,200 Speaker 1: out spending and all this. So I'm just gonna share 725 00:35:14,239 --> 00:35:17,080 Speaker 1: one of my pet peas that comes up from time 726 00:35:17,120 --> 00:35:19,800 Speaker 1: to time, and I'm talking about and this is really 727 00:35:19,880 --> 00:35:22,759 Speaker 1: as we talked about before, This has nothing to do 728 00:35:22,840 --> 00:35:25,600 Speaker 1: with your net worth. It has to do with what 729 00:35:25,680 --> 00:35:28,040 Speaker 1: you plan to spend. And here's what I'm talking about. 730 00:35:29,480 --> 00:35:32,960 Speaker 1: For folks that have their retirement plan in place and 731 00:35:33,000 --> 00:35:35,200 Speaker 1: they have a certain amount of income they want to 732 00:35:35,680 --> 00:35:38,040 Speaker 1: you know, have coming in every month, and we've run 733 00:35:38,080 --> 00:35:41,160 Speaker 1: the numbers and we know that it's gonna work. But 734 00:35:41,200 --> 00:35:44,040 Speaker 1: there's not a ton of margin for air in the plan. 735 00:35:44,400 --> 00:35:46,440 Speaker 1: In other words, we got to be disciplined and follow 736 00:35:46,480 --> 00:35:50,719 Speaker 1: the plan in order for it to work. What invariably 737 00:35:50,800 --> 00:35:53,400 Speaker 1: happens from time to time is I get this email 738 00:35:53,520 --> 00:35:56,759 Speaker 1: or phone call that says, well, we've always wanted to 739 00:35:56,800 --> 00:35:59,839 Speaker 1: take the kids on a cruise and the grandkids and all, 740 00:36:00,560 --> 00:36:03,600 Speaker 1: and Bob, I need you to pull fifty grand sixty 741 00:36:03,640 --> 00:36:07,000 Speaker 1: grand and send it to us. And you know, when 742 00:36:07,080 --> 00:36:10,279 Speaker 1: people do that, you know, just on a whim, and 743 00:36:10,320 --> 00:36:12,840 Speaker 1: they don't factor it into their plan, and they don't 744 00:36:12,880 --> 00:36:17,480 Speaker 1: communicate it with their advisor in advance, you leave some opportunities, 745 00:36:17,520 --> 00:36:19,960 Speaker 1: you know, on the table. In my opinion, number one, 746 00:36:20,000 --> 00:36:21,759 Speaker 1: we want to make sure the plan is going to 747 00:36:21,840 --> 00:36:25,360 Speaker 1: work if you do these kind of things. And then second, 748 00:36:25,960 --> 00:36:29,040 Speaker 1: you know, especially as the dollar amounts go up. I 749 00:36:29,320 --> 00:36:31,520 Speaker 1: gave the example of a cruise, but you know, let's 750 00:36:31,560 --> 00:36:34,799 Speaker 1: say a two hundred thousand dollars home remodel. You want 751 00:36:34,800 --> 00:36:37,279 Speaker 1: to give your advisor and our team a chance to 752 00:36:37,320 --> 00:36:39,640 Speaker 1: get some of this money out of harm's way to 753 00:36:39,760 --> 00:36:44,719 Speaker 1: avoid market volatility. So I'm real big on communication when 754 00:36:44,760 --> 00:36:48,040 Speaker 1: it comes to these big ticket items. Don't just spring 755 00:36:48,120 --> 00:36:50,319 Speaker 1: it on us through an email or a phone call, 756 00:36:50,480 --> 00:36:54,040 Speaker 1: because that really can throw the whole plan out of whack, 757 00:36:54,200 --> 00:36:55,320 Speaker 1: and not in a good way. 758 00:36:55,480 --> 00:36:58,240 Speaker 2: Yeah, sometimes there's no choice with this, right. Life happens 759 00:36:58,239 --> 00:37:00,000 Speaker 2: and life intervenes and we just don't get the chance 760 00:37:00,200 --> 00:37:02,640 Speaker 2: to plan. But Bobby, I reconize what you're talking about. 761 00:37:02,640 --> 00:37:05,279 Speaker 2: These are situations where maybe we've talked about maybe we're 762 00:37:05,320 --> 00:37:06,719 Speaker 2: going to do this for years. I don't know, we're 763 00:37:06,719 --> 00:37:08,600 Speaker 2: going to decide, maybe it's a low priority goal. We 764 00:37:08,760 --> 00:37:10,800 Speaker 2: just got it on the back burner, and then suddenly, 765 00:37:10,840 --> 00:37:13,640 Speaker 2: over a weekend it launches itself to the front burner, 766 00:37:13,920 --> 00:37:15,920 Speaker 2: and on Monday, we're scrambling to cut a check as 767 00:37:15,920 --> 00:37:18,200 Speaker 2: soon as possible because a commitment has been made somewhere. 768 00:37:18,840 --> 00:37:20,879 Speaker 2: This is this, This is our client's money, and it's 769 00:37:20,920 --> 00:37:23,040 Speaker 2: we can and will and should be spent the way 770 00:37:23,040 --> 00:37:25,080 Speaker 2: that they want it. It doesn't matter we're we're simply 771 00:37:25,120 --> 00:37:27,640 Speaker 2: pointing out that we lose the chance to be efficient 772 00:37:27,800 --> 00:37:30,360 Speaker 2: and as well thought out as possible if there's not 773 00:37:30,520 --> 00:37:32,560 Speaker 2: enough time to kind of plan things out. 774 00:37:32,719 --> 00:37:35,799 Speaker 1: You know. Maybe well yeah, but Brian, you gave, in 775 00:37:35,880 --> 00:37:39,040 Speaker 1: my opinion, the perfect example of how this is supposed 776 00:37:39,040 --> 00:37:42,040 Speaker 1: to work in the earlier segment where you you described 777 00:37:42,040 --> 00:37:45,080 Speaker 1: a situation where you were sitting down with your clients 778 00:37:45,080 --> 00:37:47,680 Speaker 1: and saying, hey, let's dream a little bit. Let's throw 779 00:37:47,840 --> 00:37:50,600 Speaker 1: everything into the plan that we might want to do, 780 00:37:51,000 --> 00:37:54,360 Speaker 1: from cruises to vehicles to Homer model to vacations to 781 00:37:54,520 --> 00:37:56,680 Speaker 1: r V and let's make sure the plan's going to 782 00:37:56,760 --> 00:38:01,360 Speaker 1: work in advance. That's exactly what I'm talking about. Unfortunately, 783 00:38:01,560 --> 00:38:04,560 Speaker 1: we run into some people that won't have those kind 784 00:38:04,600 --> 00:38:07,279 Speaker 1: of discussions with their advisor. That's really what I'm talking 785 00:38:07,280 --> 00:38:07,759 Speaker 1: about here. 786 00:38:08,080 --> 00:38:08,239 Speaker 3: Yep. 787 00:38:08,320 --> 00:38:10,160 Speaker 2: I think you're right, and it's just if you're gonna 788 00:38:10,160 --> 00:38:12,560 Speaker 2: have an advisor in the mix and then everything is 789 00:38:12,600 --> 00:38:15,319 Speaker 2: on the table. Otherwise you're not getting your money's worth. 790 00:38:16,239 --> 00:38:18,799 Speaker 1: All right, thanks for listening. You've been listening to Simply Money, 791 00:38:18,880 --> 00:38:22,719 Speaker 1: presented by all Worth Financial on fifty five KRC, the 792 00:38:23,120 --> 00:38:23,680 Speaker 1: Talk station