1 00:00:06,400 --> 00:00:09,760 Speaker 1: Tonight, if you took work completely out of the equation, 2 00:00:10,320 --> 00:00:13,760 Speaker 1: who would you be? You're listening to simply Money, presented 3 00:00:13,800 --> 00:00:17,080 Speaker 1: by all Worth Financial on Bob Sponsller along with Brian James. 4 00:00:18,079 --> 00:00:20,520 Speaker 1: All Right, it's Friday, and if you're listening to us 5 00:00:20,560 --> 00:00:23,120 Speaker 1: in the car right now, let us give you something 6 00:00:23,239 --> 00:00:26,520 Speaker 1: to think about on that drive home. If work disappeared 7 00:00:26,560 --> 00:00:30,800 Speaker 1: tomorrow permanently, who would you actually be? And we don't 8 00:00:30,840 --> 00:00:34,400 Speaker 1: mean financially. Let's assume the money is fine. Let's assume 9 00:00:34,400 --> 00:00:37,440 Speaker 1: the portfolio works, the house is paid off, the kids 10 00:00:37,479 --> 00:00:41,600 Speaker 1: are good, retirement is mathematically secure. But if that job, 11 00:00:41,760 --> 00:00:44,840 Speaker 1: that career went away, the title, the company, the role, 12 00:00:45,640 --> 00:00:47,960 Speaker 1: who are you without all of that? 13 00:00:49,920 --> 00:00:52,080 Speaker 2: Well, so let's talk about this, right So with so 14 00:00:52,200 --> 00:00:55,320 Speaker 2: successful that wires you a certain way. If you've piled 15 00:00:55,400 --> 00:00:57,840 Speaker 2: up that wealth, that didn't just happen by magic, that 16 00:00:57,960 --> 00:01:01,160 Speaker 2: came from discipline, your competitive you're driven, you pushed, you 17 00:01:01,240 --> 00:01:03,840 Speaker 2: earned it, you went through all those terrible days, all 18 00:01:03,840 --> 00:01:06,880 Speaker 2: the stress that comes along with with with with that 19 00:01:06,959 --> 00:01:07,759 Speaker 2: kind of success. 20 00:01:08,160 --> 00:01:08,880 Speaker 1: So this could be you. 21 00:01:08,959 --> 00:01:10,920 Speaker 2: Maybe you're an executive at P and G and you've been, 22 00:01:11,200 --> 00:01:14,039 Speaker 2: you know, suffering through a lot of meetings, especially a 23 00:01:14,040 --> 00:01:16,120 Speaker 2: lot on Zoom over the last five years or so. 24 00:01:16,920 --> 00:01:18,960 Speaker 2: Maybe you built and sold a business. You could be 25 00:01:19,000 --> 00:01:22,360 Speaker 2: a physician, attorney, partner, senior leader, whatever. The title isn't 26 00:01:22,400 --> 00:01:24,920 Speaker 2: just what you do, it's who you are. It's given 27 00:01:25,040 --> 00:01:28,039 Speaker 2: structure to your days. It defines what you do all day, 28 00:01:28,080 --> 00:01:30,399 Speaker 2: what you think about, what you not only at work, 29 00:01:30,440 --> 00:01:32,039 Speaker 2: but what you think about when you're with your family 30 00:01:32,040 --> 00:01:34,960 Speaker 2: and at home at night. It gives you feedback, it's relevance. 31 00:01:35,040 --> 00:01:36,679 Speaker 2: It's a reason to get out of bed. And this 32 00:01:36,760 --> 00:01:38,800 Speaker 2: is what we see though with all the time with 33 00:01:38,800 --> 00:01:41,240 Speaker 2: with affluent families, they're really not worried about running out 34 00:01:41,280 --> 00:01:43,480 Speaker 2: of money. They're worried about running out of purpose and 35 00:01:43,520 --> 00:01:45,400 Speaker 2: becoming irrelevant. 36 00:01:46,440 --> 00:01:50,320 Speaker 1: Yeah, and you know this a lot of people, Brian, 37 00:01:50,360 --> 00:01:53,080 Speaker 1: I don't know about you, but most people we work with, 38 00:01:53,240 --> 00:01:55,760 Speaker 1: they they come in and say, man, I wish I 39 00:01:55,800 --> 00:01:58,520 Speaker 1: had retired three years ago. They've got no problem. They've 40 00:01:58,560 --> 00:02:02,720 Speaker 1: already got the hobbies, the family, the activities, the charitable boards, 41 00:02:02,760 --> 00:02:06,240 Speaker 1: all that stuff lined up. But occasionally, and I'm thinking 42 00:02:06,240 --> 00:02:10,360 Speaker 1: of one person in particular, when I share this retirement 43 00:02:10,480 --> 00:02:13,560 Speaker 1: is really a gut punch because they you know, they're 44 00:02:13,680 --> 00:02:17,400 Speaker 1: highly successful work has been their thing. And in the 45 00:02:17,440 --> 00:02:21,200 Speaker 1: one case i'm thinking about, you couple retirement with in 46 00:02:21,240 --> 00:02:24,600 Speaker 1: a few years, you know, very close to retirement. In 47 00:02:24,639 --> 00:02:27,400 Speaker 1: the one case I'm thinking about their their spouse passed 48 00:02:27,440 --> 00:02:31,400 Speaker 1: away from a terminal illness, and I remember getting a 49 00:02:31,440 --> 00:02:35,040 Speaker 1: phone call from this individual saying, Bob, I need something 50 00:02:35,120 --> 00:02:37,760 Speaker 1: to do. I mean, he's bored out of his mind. 51 00:02:37,840 --> 00:02:40,840 Speaker 1: And this is a guy that just hard charger, hard 52 00:02:40,880 --> 00:02:44,480 Speaker 1: worker for a large company here in the Cincinnati area 53 00:02:44,520 --> 00:02:48,040 Speaker 1: that we would all know, and it was a real challenge. 54 00:02:48,080 --> 00:02:50,880 Speaker 1: So you know, what I always encourage people to do 55 00:02:51,280 --> 00:02:56,160 Speaker 1: is take a do a staycation or a four to 56 00:02:56,280 --> 00:02:59,000 Speaker 1: five day if we got a long holiday weekend, and 57 00:02:59,120 --> 00:03:03,360 Speaker 1: actually start to simulate retirement in advance. How are you 58 00:03:03,480 --> 00:03:07,600 Speaker 1: really going to spend your time and energy, and more importantly, 59 00:03:07,639 --> 00:03:11,440 Speaker 1: if you're married or as importantly, dovetail that with what 60 00:03:11,480 --> 00:03:15,040 Speaker 1: your spouse is wanting to do every day and test 61 00:03:15,160 --> 00:03:18,120 Speaker 1: drive that thing ahead of time and have some meaningful 62 00:03:18,200 --> 00:03:23,000 Speaker 1: conversations about it, because this thing can rear its ugly 63 00:03:23,080 --> 00:03:26,240 Speaker 1: head in ways people might not have imagined in the 64 00:03:26,280 --> 00:03:28,800 Speaker 1: future if you don't kind of test drive it and 65 00:03:28,919 --> 00:03:33,000 Speaker 1: communicate with your spouse or significant other, because, let's face it, 66 00:03:33,120 --> 00:03:35,760 Speaker 1: you've worked hard, as you pointed out, Brian, you know, 67 00:03:35,920 --> 00:03:39,320 Speaker 1: to build for retirement. It should be a joyous season 68 00:03:39,360 --> 00:03:43,080 Speaker 1: of life, not one that brings you more stress and regret. 69 00:03:44,080 --> 00:03:46,880 Speaker 2: Yeah, it's interesting when we take people through this financial 70 00:03:46,920 --> 00:03:51,760 Speaker 2: planning process, and sometimes we'll have situations where there's a 71 00:03:52,000 --> 00:03:53,640 Speaker 2: huge you know, if we get through somebody through a 72 00:03:53,680 --> 00:03:55,680 Speaker 2: financial plan and they realize that they're okay and the 73 00:03:55,960 --> 00:03:58,560 Speaker 2: machine they've built will actually turn on and it will 74 00:03:58,600 --> 00:04:00,960 Speaker 2: work to allow them to regain their time, and there's 75 00:04:01,000 --> 00:04:03,600 Speaker 2: this huge sigh of relief and you know, a little 76 00:04:03,640 --> 00:04:05,880 Speaker 2: bit of a celebration, and then all of a sudden 77 00:04:05,880 --> 00:04:08,240 Speaker 2: it dawns on them that oh my gosh, I can 78 00:04:08,360 --> 00:04:09,400 Speaker 2: do whatever I want to do. 79 00:04:09,520 --> 00:04:10,160 Speaker 1: That's awesome. 80 00:04:10,600 --> 00:04:11,840 Speaker 2: Wait a minute, what do I want to do? I 81 00:04:11,880 --> 00:04:13,920 Speaker 2: have no idea. A lot of people spend no time 82 00:04:14,000 --> 00:04:16,599 Speaker 2: thinking about this, and there is a so the mountain 83 00:04:16,680 --> 00:04:19,000 Speaker 2: we tend to hide behind, that mountain of financial stress. 84 00:04:19,000 --> 00:04:21,040 Speaker 2: There's not enough, there's not enough, there's not enough. Oh 85 00:04:21,080 --> 00:04:22,719 Speaker 2: my gosh, there is enough. And we find out there's 86 00:04:22,720 --> 00:04:25,680 Speaker 2: another even bigger mountain of purpose behind it. And it 87 00:04:25,720 --> 00:04:28,120 Speaker 2: can be very, very scary to look at that bigger 88 00:04:28,160 --> 00:04:30,280 Speaker 2: mountain that you never saw coming. We've been staring at 89 00:04:30,279 --> 00:04:32,960 Speaker 2: the four oh one k balances for decades and we 90 00:04:33,720 --> 00:04:35,719 Speaker 2: just don't spend enough time thinking about what is our 91 00:04:35,800 --> 00:04:37,599 Speaker 2: purpose and all that kind of thing. So, you know, 92 00:04:38,200 --> 00:04:41,159 Speaker 2: when the numbers work, then all of a sudden, you 93 00:04:41,240 --> 00:04:44,760 Speaker 2: have this responsibility to you and your family to make 94 00:04:44,800 --> 00:04:46,600 Speaker 2: sure that you understand how you want to spend your time. 95 00:04:46,640 --> 00:04:48,600 Speaker 2: And I say your family, because when when a lot 96 00:04:48,680 --> 00:04:51,920 Speaker 2: of times when we run into stressed marriages that result 97 00:04:51,960 --> 00:04:54,360 Speaker 2: from a recent retirement, that has to do with that 98 00:04:54,480 --> 00:04:57,440 Speaker 2: lack of purpose, that can trigger a little more spending. 99 00:04:57,520 --> 00:05:00,000 Speaker 2: We tend to fill a vacuum of time with more 100 00:05:00,160 --> 00:05:02,400 Speaker 2: spending than we've done in the past, and that can 101 00:05:02,440 --> 00:05:05,599 Speaker 2: cause stress among married couples. You know, even if it 102 00:05:05,600 --> 00:05:09,640 Speaker 2: doesn't necessarily damage the financial plan, there can still be 103 00:05:09,760 --> 00:05:12,839 Speaker 2: arguments and those kinds of things. And also people tend 104 00:05:12,839 --> 00:05:15,280 Speaker 2: to get hung up on a certain number. Right I met, 105 00:05:15,320 --> 00:05:18,320 Speaker 2: my net worth is four point eight nine million. That 106 00:05:18,360 --> 00:05:20,480 Speaker 2: means I just need another one hundred thousand fragm tire, 107 00:05:20,560 --> 00:05:23,840 Speaker 2: No you don't. I've sat down with people and we 108 00:05:24,320 --> 00:05:25,760 Speaker 2: let's find you want to see a piece of paper 109 00:05:25,760 --> 00:05:27,400 Speaker 2: with your name on it. Well, let's include the equity 110 00:05:27,440 --> 00:05:29,840 Speaker 2: in your home on your network statement. There's your five 111 00:05:29,839 --> 00:05:31,680 Speaker 2: million dollars you want to go to work tomorrow. Just 112 00:05:31,760 --> 00:05:34,520 Speaker 2: kind of repositioning, because I have seen people get so 113 00:05:34,640 --> 00:05:36,840 Speaker 2: hung up on that dollar amount that when the market 114 00:05:36,880 --> 00:05:38,719 Speaker 2: pulls back when they were going to retire, it causes 115 00:05:38,760 --> 00:05:40,200 Speaker 2: them to say, I guess I got to work another 116 00:05:40,240 --> 00:05:42,919 Speaker 2: couple of years. No, you don't focus on you, not 117 00:05:43,000 --> 00:05:43,440 Speaker 2: the pile. 118 00:05:44,600 --> 00:05:46,680 Speaker 1: Brian. How many times have we heard people come in 119 00:05:46,720 --> 00:05:50,000 Speaker 1: and we see the you know, restricted stock units and 120 00:05:50,040 --> 00:05:53,200 Speaker 1: the options and all the rewards, the carrots being dangled 121 00:05:53,200 --> 00:05:55,240 Speaker 1: by the companies, and they just say, hey, I just 122 00:05:55,279 --> 00:05:57,400 Speaker 1: need to do this for one or two or three 123 00:05:57,440 --> 00:06:00,240 Speaker 1: more years because here's that pile of money I'm going 124 00:06:00,320 --> 00:06:02,800 Speaker 1: to get at the end of two or three years. Meanwhile, 125 00:06:03,279 --> 00:06:07,080 Speaker 1: we've also seen people where they could have afforded to 126 00:06:07,200 --> 00:06:11,320 Speaker 1: retire at say sixty two, and they just force this thing. 127 00:06:11,400 --> 00:06:14,880 Speaker 1: They just have to habitually stay in this accumulation mode, 128 00:06:15,240 --> 00:06:17,919 Speaker 1: you know, running it out to sixty six or sixty seven, 129 00:06:18,279 --> 00:06:20,880 Speaker 1: and then their health goes into the decline and they 130 00:06:20,960 --> 00:06:24,400 Speaker 1: can't do the things that they really worked so hard 131 00:06:24,400 --> 00:06:27,240 Speaker 1: to be able to do, you know, taking the grandkids 132 00:06:27,279 --> 00:06:30,400 Speaker 1: on a vacation or just meaningful trips with your spouse. 133 00:06:31,440 --> 00:06:34,880 Speaker 1: That's where the regret can come in, because we can't 134 00:06:34,920 --> 00:06:37,520 Speaker 1: control what's going to happen in a lot of cases 135 00:06:37,560 --> 00:06:40,520 Speaker 1: to our health and to your point, if the pile's 136 00:06:40,560 --> 00:06:44,600 Speaker 1: big enough, give some strong consideration to even if you 137 00:06:44,680 --> 00:06:46,520 Speaker 1: got to leave a little bit of money on the table, 138 00:06:47,960 --> 00:06:51,680 Speaker 1: you know, valuing life over a pile of money. 139 00:06:52,200 --> 00:06:54,640 Speaker 2: Don't be my clients who about a decade and a 140 00:06:54,680 --> 00:06:58,640 Speaker 2: half ago canceled a lifetime vacation with five million in 141 00:06:58,680 --> 00:07:02,279 Speaker 2: the bank, no time, no debt at all, but canceled 142 00:07:02,279 --> 00:07:05,360 Speaker 2: a lifetime dream vacation because they're hot water, high heat, 143 00:07:05,440 --> 00:07:08,840 Speaker 2: or died a week before. So make sure you understand 144 00:07:08,920 --> 00:07:10,800 Speaker 2: exactly what you what you've got, and what you can 145 00:07:10,800 --> 00:07:13,920 Speaker 2: do with this. So let's talk about this maybe this weekend, right, 146 00:07:14,040 --> 00:07:16,760 Speaker 2: Maybe just sit and think about it before the weather improves. Here, 147 00:07:16,800 --> 00:07:18,440 Speaker 2: we've got time to stare out the window with a 148 00:07:18,440 --> 00:07:19,560 Speaker 2: cup of coffee or a. 149 00:07:19,440 --> 00:07:21,160 Speaker 1: Tea or whatever. So think about this. 150 00:07:21,200 --> 00:07:24,400 Speaker 2: Your portfolio that's locked in income is kind of optional. 151 00:07:24,440 --> 00:07:26,280 Speaker 2: That works too. You don't necessarily need as much as 152 00:07:26,320 --> 00:07:27,680 Speaker 2: you used to. But it's there if you want it. 153 00:07:27,880 --> 00:07:30,960 Speaker 2: Nobody's questioning your decisions. You don't owe anybody an explanation. 154 00:07:31,320 --> 00:07:33,280 Speaker 2: What does your ideal week look like? 155 00:07:33,400 --> 00:07:33,560 Speaker 1: Right? 156 00:07:33,600 --> 00:07:35,600 Speaker 2: This is your picturing this On Monday, You're gonna get 157 00:07:35,600 --> 00:07:37,040 Speaker 2: out of bed and go to work like always. But 158 00:07:37,200 --> 00:07:40,440 Speaker 2: you're pretending here's my situation. Nobody gives a rat's nugget 159 00:07:40,520 --> 00:07:42,480 Speaker 2: what I do next week? What will I do with that? 160 00:07:43,120 --> 00:07:43,320 Speaker 1: You know? 161 00:07:43,360 --> 00:07:45,640 Speaker 2: What is an ideal week? Don't think about you know, 162 00:07:45,880 --> 00:07:48,520 Speaker 2: the world's greatest vacation. That's easy, right. We can all, 163 00:07:48,840 --> 00:07:50,280 Speaker 2: when we've got the assets to do it, in the 164 00:07:50,320 --> 00:07:51,680 Speaker 2: time to do it, we can all plan a great 165 00:07:51,720 --> 00:07:53,720 Speaker 2: vacation that will kind of take care of itself. We're 166 00:07:53,720 --> 00:07:56,080 Speaker 2: talking about a normal, average, run of the mill week 167 00:07:56,080 --> 00:07:58,440 Speaker 2: where there's really nothing on the calendar. Does this mean 168 00:07:58,480 --> 00:08:01,080 Speaker 2: you're going to do some consulting works aware? Maybe you know, 169 00:08:01,120 --> 00:08:03,280 Speaker 2: maybe not for your former company, just something that you 170 00:08:03,360 --> 00:08:06,200 Speaker 2: know and for somebody who values your education. Maybe take 171 00:08:06,200 --> 00:08:08,360 Speaker 2: two days off and three days of work. Maybe you're 172 00:08:08,400 --> 00:08:12,000 Speaker 2: mentoring younger professionals, Lunches with people that you want to support, 173 00:08:12,200 --> 00:08:16,200 Speaker 2: working for a board, more time with grandkids, philanthropic opportunities 174 00:08:16,240 --> 00:08:18,440 Speaker 2: maybe that you've always wanted to take, you know, start 175 00:08:18,520 --> 00:08:21,560 Speaker 2: something completely new, new hobby, something like that. Give that 176 00:08:21,600 --> 00:08:24,560 Speaker 2: some thought. The important point there is not the conclusion. 177 00:08:24,600 --> 00:08:27,440 Speaker 2: Whatever you think about and conclude that's your business. That's 178 00:08:27,480 --> 00:08:29,760 Speaker 2: that's irrelevant. It's the fact that you carved out time 179 00:08:29,840 --> 00:08:32,880 Speaker 2: to think about nothing but time. What will I do 180 00:08:33,200 --> 00:08:35,640 Speaker 2: when I have time, when it's no longer about my 181 00:08:35,640 --> 00:08:36,280 Speaker 2: pile of money? 182 00:08:37,320 --> 00:08:40,040 Speaker 1: Yeah, and again we're not talking about a vacation because 183 00:08:40,040 --> 00:08:41,760 Speaker 1: a lot of people, you know, a lot of times, 184 00:08:41,800 --> 00:08:46,800 Speaker 1: for people that are high achievers, drivers, doers, vacations are 185 00:08:46,880 --> 00:08:49,920 Speaker 1: nothing more than a list of things to do and 186 00:08:50,040 --> 00:08:53,400 Speaker 1: see and conquer, just like work. And one of my 187 00:08:53,440 --> 00:08:57,200 Speaker 1: favorite movies of all time is the First Vacation Movie 188 00:08:57,280 --> 00:08:59,960 Speaker 1: with Chevy Chase and the you know, things were breaking 189 00:09:00,200 --> 00:09:02,960 Speaker 1: down along the way. It wasn't going according to plan. 190 00:09:03,120 --> 00:09:05,440 Speaker 1: And for those that have seen that movie, you'll all 191 00:09:05,480 --> 00:09:08,560 Speaker 1: you'll all remember that line where he says, this is 192 00:09:08,600 --> 00:09:12,000 Speaker 1: no longer a vacation, it's a quest, a quest for fun. 193 00:09:12,240 --> 00:09:14,280 Speaker 1: I'm gonna have fun, You're gonna have fun. And there 194 00:09:14,320 --> 00:09:16,640 Speaker 1: everybody else in the car is looking at him like 195 00:09:16,679 --> 00:09:19,240 Speaker 1: a deer in the headlights like you've lost your mind. 196 00:09:19,280 --> 00:09:22,560 Speaker 1: So what we're talking about here, and very few people 197 00:09:22,760 --> 00:09:25,640 Speaker 1: do this, you know, And I need to eat my 198 00:09:25,679 --> 00:09:28,200 Speaker 1: own cooking here and probably sit down with my wife 199 00:09:28,200 --> 00:09:31,880 Speaker 1: and do something similar. Communicate ahead of time and say, hey, 200 00:09:32,200 --> 00:09:36,360 Speaker 1: we're gonna take a week or ten day staycation and 201 00:09:36,440 --> 00:09:41,400 Speaker 1: we really are going to simulate retirement and talk in 202 00:09:41,480 --> 00:09:44,000 Speaker 1: advance to the point you already made, and it's a 203 00:09:44,000 --> 00:09:47,960 Speaker 1: great one. What does our ideal life look like? What 204 00:09:48,080 --> 00:09:50,240 Speaker 1: do we want to do, where do we want to 205 00:09:50,240 --> 00:09:52,400 Speaker 1: do it, who do we want to do it with? 206 00:09:53,080 --> 00:09:56,240 Speaker 1: And then actually start doing some of those things and 207 00:09:56,320 --> 00:09:59,360 Speaker 1: try it on for size, see how it feels, not 208 00:09:59,400 --> 00:10:02,400 Speaker 1: only to you but to your spouse. And if adjustments 209 00:10:02,440 --> 00:10:05,360 Speaker 1: need to be made, you talk about it. You pre 210 00:10:05,520 --> 00:10:10,400 Speaker 1: plan for that retirement lifestyle and that'll work for people 211 00:10:10,400 --> 00:10:13,920 Speaker 1: that'll actually do it. Unfortunately, life gets so busy we 212 00:10:13,960 --> 00:10:16,800 Speaker 1: don't take time, you know, to actually plan for a 213 00:10:16,840 --> 00:10:19,079 Speaker 1: retirement lifestyle. Right. 214 00:10:19,120 --> 00:10:20,800 Speaker 2: And for those of you who maybe I'm a little 215 00:10:20,840 --> 00:10:23,560 Speaker 2: more mechanically inclined, right, I'm talking about the people out 216 00:10:23,600 --> 00:10:26,360 Speaker 2: there with a spreadsheet kink where every decision has to 217 00:10:26,400 --> 00:10:28,959 Speaker 2: go through a Microsoft Excel. Believe it, or not. This 218 00:10:29,400 --> 00:10:31,719 Speaker 2: isn't as squishy of thinking as you might think. This 219 00:10:31,800 --> 00:10:35,280 Speaker 2: does impact your portfolio if you haven't really accepted yet 220 00:10:35,280 --> 00:10:37,000 Speaker 2: that you won the game and your portfolio is going 221 00:10:37,040 --> 00:10:39,360 Speaker 2: to look like that. So what that results in really 222 00:10:39,400 --> 00:10:42,520 Speaker 2: aggressive allocations that are that are no longer necessary that 223 00:10:42,600 --> 00:10:44,800 Speaker 2: got you where you are. But this might be a 224 00:10:44,800 --> 00:10:46,520 Speaker 2: case where you don't want to dance with the one 225 00:10:46,520 --> 00:10:49,320 Speaker 2: that brung you because now the situation has changed, there's 226 00:10:49,360 --> 00:10:52,520 Speaker 2: no need necessarily to still be in growth mode. So 227 00:10:52,640 --> 00:10:54,360 Speaker 2: you know, and I would use the example of twenty 228 00:10:54,400 --> 00:10:58,040 Speaker 2: twenty one somebody who is oriented to you know, grow grow, grow, grow, grow, 229 00:10:58,080 --> 00:11:00,840 Speaker 2: and never took the time to really, you know, figure 230 00:11:00,840 --> 00:11:03,000 Speaker 2: out what the portfolio needed to do for them, but 231 00:11:03,040 --> 00:11:05,240 Speaker 2: wanted to retire in twenty two. That is a really 232 00:11:05,240 --> 00:11:08,200 Speaker 2: stressful situation because you never took the foot off the gas. 233 00:11:08,360 --> 00:11:10,720 Speaker 2: Twenty twenty two probably took fifteen twenty percent of your 234 00:11:10,720 --> 00:11:13,199 Speaker 2: net worth away and that all of a sudden may 235 00:11:13,240 --> 00:11:15,760 Speaker 2: have robbed you. And of course we recovered like like 236 00:11:15,800 --> 00:11:20,200 Speaker 2: we always have and always will, but that probably added 237 00:11:20,360 --> 00:11:23,040 Speaker 2: a couple three years onto somebody's working career when that 238 00:11:23,120 --> 00:11:26,719 Speaker 2: really wasn't necessary. So you know, deciding to or not 239 00:11:26,880 --> 00:11:28,679 Speaker 2: moving out of that growth mode. That does affect the 240 00:11:28,720 --> 00:11:32,240 Speaker 2: portfolio and it exposes you to unnecessary risk. So run 241 00:11:32,280 --> 00:11:34,679 Speaker 2: some numbers. If you are numerically inclined and you love 242 00:11:34,679 --> 00:11:37,240 Speaker 2: those spreadsheets, run the numbers, figure out what it looks 243 00:11:37,280 --> 00:11:39,839 Speaker 2: like now if the hunky doory approach happens, and then 244 00:11:39,880 --> 00:11:43,360 Speaker 2: do it again with you know, with taking a step 245 00:11:43,360 --> 00:11:45,800 Speaker 2: over the cliff here early in retirement. Use that sequence 246 00:11:45,840 --> 00:11:48,120 Speaker 2: of returns risk to figure out what it will look 247 00:11:48,160 --> 00:11:50,800 Speaker 2: and feel like should we go through that, because realistically, 248 00:11:51,000 --> 00:11:53,320 Speaker 2: you shouldn't have to make a decision based on what 249 00:11:53,320 --> 00:11:54,000 Speaker 2: the market's doing. 250 00:11:54,840 --> 00:11:57,080 Speaker 1: And before we run all those numbers and do all 251 00:11:57,120 --> 00:12:00,440 Speaker 1: those spreadsheets, let's take it back to basics here. Maybe 252 00:12:00,480 --> 00:12:03,360 Speaker 1: just have dinner with your spouse if you're getting close 253 00:12:03,400 --> 00:12:06,800 Speaker 1: to retirement, and just simply ask, hey, if money wasn't 254 00:12:06,840 --> 00:12:10,800 Speaker 1: part of the decision anymore, what would we change. If 255 00:12:10,800 --> 00:12:14,080 Speaker 1: the answer is nothing, you're probably in a great spot. 256 00:12:14,160 --> 00:12:16,360 Speaker 1: But the answer if the answer coming back at you 257 00:12:16,520 --> 00:12:19,680 Speaker 1: is well, I change a lot, then maybe the bigger 258 00:12:19,800 --> 00:12:23,360 Speaker 1: risk to you isn't market volatility. Maybe it's waiting too 259 00:12:23,440 --> 00:12:27,880 Speaker 1: long to start living intentionally. Here's the all worth advice. 260 00:12:27,920 --> 00:12:31,560 Speaker 1: If your identity is built entirely around your income, financial 261 00:12:31,600 --> 00:12:35,720 Speaker 1: independence won't feel like freedom. It could feel like a loss. 262 00:12:36,080 --> 00:12:39,760 Speaker 1: Start building the life you'll want to retire into, not 263 00:12:39,960 --> 00:12:44,200 Speaker 1: just the portfolio that gets you there. What are people 264 00:12:44,240 --> 00:12:47,440 Speaker 1: gonna do with their tax funds or tax refunds? Brian? 265 00:12:47,480 --> 00:12:51,160 Speaker 1: While there's an article claiming the answer is somewhat sobering, 266 00:12:52,160 --> 00:12:55,600 Speaker 1: why we think the total opposite will happen? Next, you're 267 00:12:55,640 --> 00:12:58,000 Speaker 1: listening to Simply Money presented by all Worth Financial on 268 00:12:58,080 --> 00:13:07,120 Speaker 1: fifty five KRC, the talk station. You're listening to Simply 269 00:13:07,160 --> 00:13:11,000 Speaker 1: Money presented by all Worth Financial on Bob Sponseller along 270 00:13:11,000 --> 00:13:14,200 Speaker 1: with Brian James. And right on cue there's our good 271 00:13:14,200 --> 00:13:17,719 Speaker 1: friend Joe Strecord with the perfect bumper music. I love it. 272 00:13:18,480 --> 00:13:22,200 Speaker 1: When do you actually sell a highly appreciated investment? And 273 00:13:22,280 --> 00:13:25,480 Speaker 1: if you're trying to lower risk? Is changing investments the 274 00:13:25,559 --> 00:13:28,559 Speaker 1: right move or is there a smarter way? We're answering 275 00:13:28,600 --> 00:13:32,720 Speaker 1: your questions straight ahead. At six forty three. We came 276 00:13:32,760 --> 00:13:36,360 Speaker 1: across an article in market Watch on Monday with this 277 00:13:36,480 --> 00:13:41,559 Speaker 1: headline quote, the sobering way most Americans planned to use 278 00:13:41,600 --> 00:13:46,079 Speaker 1: their tax funds this year? Brian. Let's get into this. 279 00:13:46,200 --> 00:13:48,840 Speaker 1: I always find these articles interesting, and I think a 280 00:13:48,840 --> 00:13:51,000 Speaker 1: lot of times what people say they're going to do 281 00:13:51,400 --> 00:13:55,240 Speaker 1: in the survey isn't exactly what they end up doing. 282 00:13:55,280 --> 00:13:58,040 Speaker 1: But let's look at this data. At least it's encouraging. 283 00:13:58,080 --> 00:13:59,240 Speaker 1: The data is encouraging. 284 00:13:59,559 --> 00:14:02,679 Speaker 2: It is so this time of year, there's always these 285 00:14:02,679 --> 00:14:04,800 Speaker 2: headlines out there, right, so we assume that we're going 286 00:14:04,840 --> 00:14:06,680 Speaker 2: to read once again about people using to pay the 287 00:14:06,720 --> 00:14:08,640 Speaker 2: bills because they can't get by, or blowing it on 288 00:14:08,679 --> 00:14:11,200 Speaker 2: some material thing they've always wanted. And of course, yeah, 289 00:14:11,200 --> 00:14:13,280 Speaker 2: there is some of that, and there always will be, 290 00:14:13,320 --> 00:14:16,120 Speaker 2: and arguably should be in the right situation. Sometimes shouldn't be. 291 00:14:16,520 --> 00:14:18,160 Speaker 2: But there's a silver lining that we found in here 292 00:14:18,200 --> 00:14:20,880 Speaker 2: that really doesn't match this headline at all. So over 293 00:14:21,000 --> 00:14:23,280 Speaker 2: half of these people who are who are looking at 294 00:14:23,280 --> 00:14:25,760 Speaker 2: what to do with their tax refunds this year have 295 00:14:25,960 --> 00:14:28,120 Speaker 2: planned to put it into savings this year. That's the 296 00:14:28,280 --> 00:14:30,480 Speaker 2: and here's the thing that we caught and we love 297 00:14:30,560 --> 00:14:32,760 Speaker 2: because of what we do all day every day. That's 298 00:14:32,800 --> 00:14:35,560 Speaker 2: the second highest share of this study since two thousand 299 00:14:35,600 --> 00:14:38,280 Speaker 2: and seven. This is new data coming from the National 300 00:14:38,320 --> 00:14:41,520 Speaker 2: Retail Federation and they've been polling customers for about twenty 301 00:14:41,560 --> 00:14:43,440 Speaker 2: years about what's going to happen to these tax refunds. 302 00:14:43,480 --> 00:14:45,800 Speaker 2: So this is a good, huge thing. We've been seeing 303 00:14:45,880 --> 00:14:48,600 Speaker 2: headlines for a long time about how people are stretched 304 00:14:48,600 --> 00:14:50,720 Speaker 2: so thin because of inflation and because of the cost 305 00:14:50,800 --> 00:14:53,040 Speaker 2: of housing and college and all this other stuff that 306 00:14:53,080 --> 00:14:55,960 Speaker 2: they're not saving anymore. Well, we're in a situation apparently 307 00:14:56,000 --> 00:14:58,840 Speaker 2: now where this year, you know, at least for you know, 308 00:14:58,920 --> 00:15:01,680 Speaker 2: for the tax refunds coming up here from twenty twenty five, 309 00:15:02,400 --> 00:15:04,600 Speaker 2: that people are able to put these away and they 310 00:15:04,600 --> 00:15:07,280 Speaker 2: don't have to spend it on you know, on paying 311 00:15:07,280 --> 00:15:10,080 Speaker 2: down previously incurred debt. In this survey, by the way, 312 00:15:10,080 --> 00:15:12,480 Speaker 2: this is eight thousand people from the end of January 313 00:15:12,520 --> 00:15:15,120 Speaker 2: to through the first week of February, so and that's 314 00:15:15,160 --> 00:15:17,000 Speaker 2: how many were found to be doing this. So this 315 00:15:17,080 --> 00:15:19,080 Speaker 2: is not this is a significant number, Bob, I'm kind 316 00:15:19,080 --> 00:15:19,720 Speaker 2: of happy to hear this. 317 00:15:20,320 --> 00:15:22,720 Speaker 1: No, it's good news. And so far this year, for 318 00:15:22,880 --> 00:15:26,720 Speaker 1: twenty twenty five you know, tax refunds, they are averaging 319 00:15:26,920 --> 00:15:30,080 Speaker 1: just shy of twenty three hundred dollars according to the IRS. 320 00:15:30,680 --> 00:15:33,680 Speaker 1: That's up almost eleven percent you know, from a year ago, 321 00:15:33,840 --> 00:15:36,440 Speaker 1: and a large part of that has to do with 322 00:15:36,040 --> 00:15:39,360 Speaker 1: the tax legislation that was passed last year. It is 323 00:15:39,440 --> 00:15:43,360 Speaker 1: helping some people, especially in you know, working people, in 324 00:15:43,480 --> 00:15:46,440 Speaker 1: middle class folks that are getting a higher tax refund. 325 00:15:47,200 --> 00:15:49,680 Speaker 1: The numbers will continue to shift. I mean we're early 326 00:15:49,720 --> 00:15:52,880 Speaker 1: on in the tax filing season. It'll be interesting to 327 00:15:52,880 --> 00:15:55,080 Speaker 1: see how the final numbers shake out, you know, when 328 00:15:55,080 --> 00:15:58,880 Speaker 1: all the dust settles. After April fifteenth, the latest numbers 329 00:15:58,920 --> 00:16:03,360 Speaker 1: from the Commerce to Partment showed American's personal savings rate 330 00:16:03,760 --> 00:16:06,840 Speaker 1: at three point six percent. That seems to be trending 331 00:16:06,920 --> 00:16:10,360 Speaker 1: in somewhat in the right direction as well, And as 332 00:16:10,440 --> 00:16:12,920 Speaker 1: always remind a reminder, and we don't want to put 333 00:16:12,920 --> 00:16:16,400 Speaker 1: a damper on this if that refund gets to be 334 00:16:16,480 --> 00:16:19,320 Speaker 1: too large. It again, as we talk about all the time, 335 00:16:19,360 --> 00:16:21,720 Speaker 1: you're just giving an interest free loan to the government 336 00:16:22,200 --> 00:16:24,320 Speaker 1: for you know, several months, and you might want to 337 00:16:24,560 --> 00:16:28,760 Speaker 1: adjust your withholding on your W four form. All right, 338 00:16:29,480 --> 00:16:33,840 Speaker 1: Topic B. Did your grandfather collect baseball cards way back 339 00:16:33,880 --> 00:16:36,800 Speaker 1: in the day. Have you checked? Have you gone up 340 00:16:36,800 --> 00:16:40,120 Speaker 1: in the attict and checked those old boxes and keepsakes 341 00:16:40,160 --> 00:16:43,360 Speaker 1: you might have inherited or haven't looked at for years. 342 00:16:43,600 --> 00:16:47,920 Speaker 1: One family did and they ended up making millions of dollars. 343 00:16:47,960 --> 00:16:51,400 Speaker 2: Brian, yep, So one more cool story to cause people 344 00:16:51,440 --> 00:16:54,200 Speaker 2: to go look through their closets and not find anything, 345 00:16:54,280 --> 00:16:56,520 Speaker 2: because that's really the reality of how this actually works. 346 00:16:56,560 --> 00:17:01,400 Speaker 2: But in this particular case, the somebody found a Honus 347 00:17:01,480 --> 00:17:04,320 Speaker 2: Wagner baseball card, not just anyone the T two O 348 00:17:04,480 --> 00:17:07,000 Speaker 2: six version. Right. So I've known this name, Bob. I'm 349 00:17:07,000 --> 00:17:09,080 Speaker 2: fifty two years old, and I've known who Honus Wagner 350 00:17:09,200 --> 00:17:11,960 Speaker 2: is my entire life. I couldn't tell you anything about 351 00:17:11,960 --> 00:17:14,800 Speaker 2: his baseball career. I have no idea, but I do 352 00:17:14,920 --> 00:17:17,080 Speaker 2: know that that's been the most valuable baseball card in 353 00:17:17,160 --> 00:17:18,879 Speaker 2: the Hall of Fame for a long time. He is 354 00:17:18,920 --> 00:17:20,560 Speaker 2: in the Hall of Fame. Sure tell me something else 355 00:17:20,560 --> 00:17:21,800 Speaker 2: about him. What position did he play? 356 00:17:21,840 --> 00:17:22,040 Speaker 1: Bob? 357 00:17:22,280 --> 00:17:24,560 Speaker 2: I don't don't know either, right, that's my point. But 358 00:17:24,600 --> 00:17:26,199 Speaker 2: we all know Honus's name because I. 359 00:17:26,240 --> 00:17:28,600 Speaker 1: Was an old baseball player just like me. 360 00:17:29,119 --> 00:17:30,240 Speaker 2: You're not helping your case. 361 00:17:30,600 --> 00:17:31,919 Speaker 1: He was a lot better than I was. 362 00:17:32,000 --> 00:17:34,320 Speaker 2: But God, I'm gonna guess, Bob that your card is 363 00:17:34,359 --> 00:17:36,439 Speaker 2: not worth five point dollars. 364 00:17:36,920 --> 00:17:37,960 Speaker 1: You're you're low fours. 365 00:17:37,960 --> 00:17:39,240 Speaker 2: I'm gonna guess probably you. 366 00:17:39,200 --> 00:17:42,520 Speaker 1: Could fit you could fit my athletic achievements on the 367 00:17:42,560 --> 00:17:46,320 Speaker 1: back of a very small posted stamp, which is why 368 00:17:46,359 --> 00:17:49,040 Speaker 1: I'm a financial advisor. But please continue exactly. 369 00:17:49,200 --> 00:17:52,680 Speaker 2: So this card that was in the family of Douglas 370 00:17:52,720 --> 00:17:54,960 Speaker 2: and Dennis Shields for about one hundred and sixteen years. 371 00:17:55,200 --> 00:17:59,040 Speaker 2: Their grandfather Morton Bernstein, the son of the National Silver 372 00:17:59,119 --> 00:18:02,240 Speaker 2: Company founders Amuel Bernstein. So it's good to see people, 373 00:18:02,320 --> 00:18:04,800 Speaker 2: you know, make it big by finding something in the closet. 374 00:18:04,840 --> 00:18:06,680 Speaker 2: Now they'll be able to make ends meet, right. Well, 375 00:18:06,680 --> 00:18:09,440 Speaker 2: he was a collector and held them since the early 376 00:18:09,520 --> 00:18:12,440 Speaker 2: nineteen hundred. This is back when baseball cards were sold 377 00:18:12,480 --> 00:18:15,320 Speaker 2: as part of cigarette packages, so they weren't really targeted 378 00:18:15,320 --> 00:18:19,120 Speaker 2: at kids to begin with. But anyway, so Grandpa had 379 00:18:19,119 --> 00:18:22,119 Speaker 2: these things, He had them on display just throughout the business, 380 00:18:22,119 --> 00:18:24,159 Speaker 2: never really thought of it. National Silver went out of 381 00:18:24,160 --> 00:18:26,320 Speaker 2: business and those cards just went into a warehouse with 382 00:18:26,359 --> 00:18:28,720 Speaker 2: all the other assets. So this now makes it the 383 00:18:28,760 --> 00:18:31,239 Speaker 2: third most expensive of this version of the Wagner card. 384 00:18:31,400 --> 00:18:33,760 Speaker 2: Six point six million was sold in August twenty one, 385 00:18:33,960 --> 00:18:36,159 Speaker 2: and another for seven and a quarter in August of 386 00:18:36,200 --> 00:18:39,600 Speaker 2: twenty two. Why is this so important, Well, obviously it's 387 00:18:39,640 --> 00:18:41,440 Speaker 2: a collectible so it's all about scarcity. If you can't 388 00:18:41,440 --> 00:18:44,760 Speaker 2: find him, there were something and it was also it's 389 00:18:44,800 --> 00:18:47,720 Speaker 2: Honus Wagner because as we mentioned before, these were sold 390 00:18:47,760 --> 00:18:50,159 Speaker 2: with cigarette packs. Honess Wagner didn't believe in smoking. He 391 00:18:50,160 --> 00:18:52,360 Speaker 2: didn't want to support it, so he asked the American 392 00:18:52,400 --> 00:18:55,359 Speaker 2: Tobacco Company to quit doing it in nineteen oh nine, 393 00:18:55,680 --> 00:18:57,919 Speaker 2: and so that's why there's much more scarcity with his name. 394 00:18:57,920 --> 00:19:00,280 Speaker 2: There were plenty of baseball cards attached to cigarettes, not 395 00:19:00,359 --> 00:19:02,560 Speaker 2: as many for him because he specifically asked them to 396 00:19:02,640 --> 00:19:03,240 Speaker 2: quit doing it. 397 00:19:04,320 --> 00:19:07,840 Speaker 1: Well. Nineteen oh nine, incidentally, is the same year Wagner 398 00:19:07,880 --> 00:19:12,200 Speaker 1: won the World Series with the Pittsburgh Pirates Pirates and 399 00:19:12,240 --> 00:19:16,439 Speaker 1: he won eight batting titles with the Pittsburgh Pirates, and 400 00:19:16,520 --> 00:19:19,639 Speaker 1: he was nicknamed the Flying Dutchman. So at least we 401 00:19:19,720 --> 00:19:21,800 Speaker 1: know the guy could swing in a little bit. Brian 402 00:19:22,640 --> 00:19:26,119 Speaker 1: all right neck coming up next, how to handle an 403 00:19:26,200 --> 00:19:29,360 Speaker 1: estate plan if you're part of a blended family. You're 404 00:19:29,359 --> 00:19:32,320 Speaker 1: listening to Simply Money presented by Alworth Financial on fifty 405 00:19:32,320 --> 00:19:41,080 Speaker 1: five KRC the talk station. You're listening to Simply Money 406 00:19:41,200 --> 00:19:44,680 Speaker 1: presented by Allworth Financial. I'm Bob Sponseller along with Brian James, 407 00:19:44,800 --> 00:19:48,880 Speaker 1: joined tonight by one of Alworth's senior estate planning specialists, 408 00:19:49,000 --> 00:19:52,920 Speaker 1: mister Paul Schwartz, who works right here in our Cincinnati office, 409 00:19:53,040 --> 00:19:56,680 Speaker 1: and he's got decades of experience working with families as 410 00:19:56,680 --> 00:20:01,760 Speaker 1: an attorney and most importantly is a proud graduate of 411 00:20:01,880 --> 00:20:05,720 Speaker 1: the Elder High School. Paul, Welcome to the show. Thank 412 00:20:05,800 --> 00:20:07,919 Speaker 1: you for making time for us tonight. We want to 413 00:20:07,920 --> 00:20:11,679 Speaker 1: talk about estate planning for blended families tonight. So I 414 00:20:11,760 --> 00:20:14,600 Speaker 1: just want to start with an open ended question. I 415 00:20:14,640 --> 00:20:18,280 Speaker 1: know you've worked for families for decades doing their estate planning, 416 00:20:18,640 --> 00:20:22,159 Speaker 1: and I'm sure you've run across several blended families. What 417 00:20:22,280 --> 00:20:24,639 Speaker 1: are some of the biggest things we need to be 418 00:20:24,760 --> 00:20:29,240 Speaker 1: looking for and planning for when we create this Brady 419 00:20:29,280 --> 00:20:32,679 Speaker 1: Bunch like scenario and we blend two families together and 420 00:20:32,760 --> 00:20:34,920 Speaker 1: try to make an estate plan out of the whole thing. 421 00:20:35,640 --> 00:20:39,080 Speaker 3: Well, I think normally what you'll see is a lot 422 00:20:39,080 --> 00:20:43,280 Speaker 3: of folks who enter into second marriages have not updated 423 00:20:43,280 --> 00:20:47,240 Speaker 3: their estate plans. So their wills are old, their trust 424 00:20:47,280 --> 00:20:50,520 Speaker 3: are old, their durable power of attorneys are old, and 425 00:20:50,560 --> 00:20:54,360 Speaker 3: their healthcare power of attorneys are old. And even more importantly, 426 00:20:54,600 --> 00:20:59,120 Speaker 3: they haven't updated their beneficiary designations for life insurance, retirement plans, 427 00:20:59,200 --> 00:21:05,080 Speaker 3: or brokerage acout. Normally, the only updated beneficiary designations is 428 00:21:05,160 --> 00:21:07,639 Speaker 3: usually on bank accounts in that situation. 429 00:21:08,400 --> 00:21:11,359 Speaker 1: So when do you discover, generally that these things haven't 430 00:21:11,359 --> 00:21:14,119 Speaker 1: been updated. I mean, people get married, they go on 431 00:21:14,240 --> 00:21:17,639 Speaker 1: with life, and then they come into you what years later, 432 00:21:17,680 --> 00:21:19,840 Speaker 1: and you discover that none of this stuff's even been 433 00:21:19,880 --> 00:21:20,439 Speaker 1: talked about. 434 00:21:20,840 --> 00:21:23,800 Speaker 3: Usually it's in their fifties or sixties, when they're thinking 435 00:21:23,800 --> 00:21:27,400 Speaker 3: about retirement, when they're thinking about their estate plan, when 436 00:21:27,400 --> 00:21:28,920 Speaker 3: they're thinking about mortality. 437 00:21:29,920 --> 00:21:31,600 Speaker 2: Yeah, that makes a lot of sense because that's when 438 00:21:31,600 --> 00:21:34,520 Speaker 2: we get started thinking about exactly how how things you're 439 00:21:34,520 --> 00:21:35,800 Speaker 2: going to go. When I pass And by the way, 440 00:21:35,800 --> 00:21:38,399 Speaker 2: welcome to the team. I'm glad you're here, and Gobomber's 441 00:21:38,440 --> 00:21:42,480 Speaker 2: moving on. So I had to sneak that in there. 442 00:21:42,480 --> 00:21:46,360 Speaker 2: I gotta defend my flock. But so, how are these 443 00:21:46,440 --> 00:21:49,240 Speaker 2: rough conversations. Do people get into arguments over this or 444 00:21:49,280 --> 00:21:51,000 Speaker 2: is it just something where they feel like it's a 445 00:21:51,040 --> 00:21:53,240 Speaker 2: it's just something we overlooked, we never got around it doing. 446 00:21:53,240 --> 00:21:55,880 Speaker 2: How do you navigate them through this with all the emotions. 447 00:21:55,560 --> 00:21:58,480 Speaker 3: Involved, everything is a little bit different for every family 448 00:21:58,520 --> 00:22:01,560 Speaker 3: and every family dynamic. Most of the time there aren't 449 00:22:01,760 --> 00:22:06,439 Speaker 3: arguments involved in that the husband and wife are usually 450 00:22:06,440 --> 00:22:09,520 Speaker 3: on the same page. When the communication goes down to 451 00:22:09,560 --> 00:22:12,200 Speaker 3: the children. If there is a communication at that point, 452 00:22:12,640 --> 00:22:17,280 Speaker 3: that is when the there can be some conflict, and 453 00:22:17,320 --> 00:22:20,679 Speaker 3: it's usually the conflict with the you know, with the 454 00:22:20,760 --> 00:22:23,200 Speaker 3: surviving spouse, after with the second spouse. 455 00:22:23,240 --> 00:22:24,080 Speaker 1: Basic, okay, let. 456 00:22:24,080 --> 00:22:25,600 Speaker 2: Me let me give you an example, and you've actually 457 00:22:25,600 --> 00:22:27,240 Speaker 2: helped me out with some of the situations, but we're 458 00:22:27,280 --> 00:22:29,199 Speaker 2: just kind of sharing for the listening audience. This This 459 00:22:29,280 --> 00:22:31,439 Speaker 2: is how I normally walk people through. How can I 460 00:22:31,520 --> 00:22:33,879 Speaker 2: start thinking about this because a lot of times we 461 00:22:33,920 --> 00:22:36,880 Speaker 2: have this Brady Bunch type situation. You know, sometimes there 462 00:22:36,880 --> 00:22:38,919 Speaker 2: are things where there's some people want to keep it 463 00:22:38,960 --> 00:22:41,000 Speaker 2: in a silo. These are my assets and they will 464 00:22:41,000 --> 00:22:44,200 Speaker 2: benefit you new spouse, but after you are gone, they'll 465 00:22:44,240 --> 00:22:47,040 Speaker 2: go back to my kids. Other people over time eventually 466 00:22:47,119 --> 00:22:48,959 Speaker 2: start to think of all, these kids are not his, 467 00:22:49,160 --> 00:22:51,920 Speaker 2: not hers, they're hours. So in those cases, what I've 468 00:22:51,920 --> 00:22:54,600 Speaker 2: been recommending people do, if you really believe that, then 469 00:22:54,640 --> 00:22:57,760 Speaker 2: simply figure out exactly what percentage that you want each 470 00:22:58,040 --> 00:23:00,199 Speaker 2: each and every person to receive at your death, and 471 00:23:00,200 --> 00:23:03,280 Speaker 2: then name those beneficiaries across every last asset you have. 472 00:23:03,600 --> 00:23:05,560 Speaker 2: Don't only focus on well, I'm going to name my 473 00:23:05,680 --> 00:23:08,360 Speaker 2: kids on my accounts. You name your kids in your accounts, 474 00:23:08,359 --> 00:23:11,200 Speaker 2: because that could you could wind up disinheriting somebody. If 475 00:23:11,200 --> 00:23:14,679 Speaker 2: somebody names that new spouse as the primary beneficiary and 476 00:23:14,800 --> 00:23:17,360 Speaker 2: nothing else is in place, then you will have basically 477 00:23:17,400 --> 00:23:19,840 Speaker 2: just disinherited your own children if you pass first, How 478 00:23:19,840 --> 00:23:21,640 Speaker 2: do you help people navigate through that situation? 479 00:23:21,880 --> 00:23:23,600 Speaker 1: So we just look at the whole situation. 480 00:23:23,840 --> 00:23:26,160 Speaker 3: We just we look at all the estate planning documents 481 00:23:26,200 --> 00:23:29,040 Speaker 3: that they currently have in place, and then we review 482 00:23:29,119 --> 00:23:31,240 Speaker 3: all of the assets that they have, and then we 483 00:23:31,280 --> 00:23:33,919 Speaker 3: look at the beneficiary designations, and then we have that 484 00:23:34,000 --> 00:23:37,200 Speaker 3: conversation with both couples, is this how you want it 485 00:23:37,280 --> 00:23:39,440 Speaker 3: to go in case of your you know, in case 486 00:23:39,480 --> 00:23:43,000 Speaker 3: of your death? And so I would say eight times 487 00:23:43,040 --> 00:23:45,119 Speaker 3: out of ten it's not, and so they need to 488 00:23:45,160 --> 00:23:48,560 Speaker 3: revise their estate plan at that point, Paul, do. 489 00:23:48,520 --> 00:23:51,399 Speaker 1: You find that in blended families this is where more 490 00:23:51,440 --> 00:23:55,439 Speaker 1: often than not you see trust used. I realize a 491 00:23:55,520 --> 00:23:58,920 Speaker 1: trust isn't going to necessarily take care of these beneficiary 492 00:23:58,960 --> 00:24:02,600 Speaker 1: designations unless you name the trust as the beneficiary. But 493 00:24:03,119 --> 00:24:05,879 Speaker 1: as things get more complex, is that maybe a reason 494 00:24:05,920 --> 00:24:09,040 Speaker 1: to sit down and do a well crafted, thoroughly thought 495 00:24:09,080 --> 00:24:13,000 Speaker 1: through trust so that we get these assets going exactly 496 00:24:13,040 --> 00:24:14,920 Speaker 1: to where they want to go when we want them 497 00:24:14,960 --> 00:24:15,400 Speaker 1: to go there. 498 00:24:15,880 --> 00:24:19,200 Speaker 3: I would say in most situations, a trust can solve 499 00:24:19,520 --> 00:24:22,600 Speaker 3: nine out of the ten problems. And what we normally 500 00:24:22,640 --> 00:24:25,879 Speaker 3: see is what's called a q TIP trust qualified terminable 501 00:24:25,920 --> 00:24:29,080 Speaker 3: interest property trust, and what it does is it provides 502 00:24:29,119 --> 00:24:34,159 Speaker 3: for the surviving spouse and income for their life, and 503 00:24:34,200 --> 00:24:36,840 Speaker 3: you can also provide for the home to go to 504 00:24:36,920 --> 00:24:39,639 Speaker 3: the surviving spouse for their lifetime, and then when the 505 00:24:39,680 --> 00:24:44,000 Speaker 3: surviving spouse passes away, it goes to the children of 506 00:24:44,040 --> 00:24:44,960 Speaker 3: the first marriage. 507 00:24:45,280 --> 00:24:48,000 Speaker 1: Yeah. I've seen that done many times and that works 508 00:24:48,040 --> 00:24:52,359 Speaker 1: well because you know, it helps eliminate that this is yours, 509 00:24:52,440 --> 00:24:56,040 Speaker 1: this is mine stuff, because hopefully you're getting married to 510 00:24:56,119 --> 00:24:59,520 Speaker 1: this person because you love them and you want to 511 00:24:59,680 --> 00:25:02,560 Speaker 1: you wanta take on that primary responsibility to make sure 512 00:25:02,600 --> 00:25:04,480 Speaker 1: that he or she are taken care of when you 513 00:25:04,520 --> 00:25:07,560 Speaker 1: pass away. So I love that idea is Hey, you 514 00:25:07,600 --> 00:25:09,520 Speaker 1: sit down with the kids and say, if this is 515 00:25:09,520 --> 00:25:13,439 Speaker 1: what we've put together you know this, I'll use you know, 516 00:25:14,160 --> 00:25:16,480 Speaker 1: the example of a man. This is the woman I've married. 517 00:25:16,560 --> 00:25:18,320 Speaker 1: I love her, I'm going to take care of her. 518 00:25:18,640 --> 00:25:21,520 Speaker 1: And we are all in agreement here, including herself, that 519 00:25:22,480 --> 00:25:24,520 Speaker 1: she's going to get to live in the house, and 520 00:25:24,560 --> 00:25:26,560 Speaker 1: she's going to have an income stream, and then when 521 00:25:26,600 --> 00:25:29,960 Speaker 1: she passes away, that's when you're going to inherit quote 522 00:25:30,080 --> 00:25:31,520 Speaker 1: unquote your assets. 523 00:25:31,760 --> 00:25:34,720 Speaker 3: Well, there's one other dynamic to that, and it's the 524 00:25:34,760 --> 00:25:39,280 Speaker 3: personal property. Some of the personal property has that sentimental value, 525 00:25:39,440 --> 00:25:41,280 Speaker 3: and you have to make sure that you take care 526 00:25:41,280 --> 00:25:44,040 Speaker 3: of that personal property that has the sentimental value to 527 00:25:44,080 --> 00:25:44,680 Speaker 3: your children. 528 00:25:45,400 --> 00:25:47,600 Speaker 1: Do you find sometimes that it just makes sense to 529 00:25:47,720 --> 00:25:51,119 Speaker 1: start to distribute some of that personal property while you're alive. 530 00:25:51,240 --> 00:25:53,600 Speaker 1: I mean, if we're talking about pieces of china or 531 00:25:53,680 --> 00:25:57,560 Speaker 1: jewelry or things like that that the person's probably not 532 00:25:57,640 --> 00:26:00,760 Speaker 1: going to use or value while they're living. You know, 533 00:26:00,840 --> 00:26:03,720 Speaker 1: as we get in advanced age, isn't that the time 534 00:26:03,760 --> 00:26:05,639 Speaker 1: to just kind of get this stuff to the kids 535 00:26:05,640 --> 00:26:08,000 Speaker 1: you really wanted to go to. I always encourage that. 536 00:26:08,680 --> 00:26:11,320 Speaker 2: All Right, anything else you want to add, Brian, Now, 537 00:26:11,359 --> 00:26:13,400 Speaker 2: I just really appreciate that we have Paul on our team. 538 00:26:13,440 --> 00:26:16,320 Speaker 2: This is a great ability for us to kind of 539 00:26:16,320 --> 00:26:19,040 Speaker 2: expand these conversations and then the financial planning realm to 540 00:26:19,080 --> 00:26:21,480 Speaker 2: what happens to all this after I'm gone. 541 00:26:21,680 --> 00:26:23,760 Speaker 1: Yeah, thank you so much, Paul. Great to have you 542 00:26:23,840 --> 00:26:26,600 Speaker 1: and appreciate all the great advice. Tonight, you're listening to 543 00:26:26,960 --> 00:26:30,160 Speaker 1: Simply Money presented by all Worth Financial on fifty five KRC, 544 00:26:30,640 --> 00:26:39,040 Speaker 1: the talk station. You're listening to Simply Money presented by 545 00:26:39,080 --> 00:26:42,919 Speaker 1: all Worth Financial on Bob'sponseeller along with Brian James. You 546 00:26:42,920 --> 00:26:45,199 Speaker 1: have a financial question you'd like for us to answer. 547 00:26:45,240 --> 00:26:47,520 Speaker 1: There's a red button you can click while you're listening 548 00:26:47,520 --> 00:26:50,600 Speaker 1: to the show. If you're listening on the iHeart app, 549 00:26:50,960 --> 00:26:54,399 Speaker 1: simply record your question and it will come straight to us. 550 00:26:55,200 --> 00:26:58,200 Speaker 1: All right, Brian, Bob and Marymott leads us off tonight. 551 00:26:58,240 --> 00:27:01,320 Speaker 1: He says, we hold both active and passive funds in 552 00:27:01,359 --> 00:27:05,199 Speaker 1: the same asset classes. How do you evaluate whether the 553 00:27:05,320 --> 00:27:09,600 Speaker 1: active side is editing anything but extra cost and fees? 554 00:27:09,760 --> 00:27:13,000 Speaker 2: Pretty common question. So let's first all I'd identify some 555 00:27:13,119 --> 00:27:15,600 Speaker 2: terms here. Active means there's somebody or a group of 556 00:27:15,640 --> 00:27:18,120 Speaker 2: somebody sitting on top of the pile of money deciding 557 00:27:18,119 --> 00:27:20,320 Speaker 2: we're going to buy this and sell that versus a 558 00:27:20,480 --> 00:27:22,760 Speaker 2: passive fund which is just following an index such as 559 00:27:22,800 --> 00:27:25,200 Speaker 2: the S and P five hundred, and Bob's wondering whether 560 00:27:25,240 --> 00:27:27,000 Speaker 2: it's worth it at all. So here's a way to 561 00:27:27,040 --> 00:27:30,520 Speaker 2: think about this. Step One, compare it net of fees 562 00:27:30,640 --> 00:27:32,960 Speaker 2: and over a full market cycle. Don't just look at 563 00:27:33,000 --> 00:27:35,080 Speaker 2: last year, don't just look at two years ago. Look 564 00:27:35,119 --> 00:27:37,679 Speaker 2: over a full market cycle from peak to trough and 565 00:27:37,720 --> 00:27:40,160 Speaker 2: then back to the peak. That's a full cycle. Active 566 00:27:40,200 --> 00:27:43,480 Speaker 2: management only matters after those expensive because the expenses, because 567 00:27:43,480 --> 00:27:46,000 Speaker 2: they're going to be guaranteed to be more expensive. Second 568 00:27:46,000 --> 00:27:49,520 Speaker 2: step here is I isolate how any outperformance shows up. 569 00:27:49,680 --> 00:27:51,720 Speaker 2: A lot of times you might see that some of 570 00:27:51,760 --> 00:27:53,879 Speaker 2: these funds just own a bunch of the same stocks 571 00:27:53,880 --> 00:27:55,720 Speaker 2: that happened. They happen to catch lightning in a bottle. 572 00:27:56,160 --> 00:27:59,600 Speaker 2: I think Janis, the old Janis funds are a poster 573 00:27:59,720 --> 00:28:02,080 Speaker 2: child children for this, because in the original tech boom 574 00:28:02,119 --> 00:28:05,320 Speaker 2: in the early two thousands, they had four funds, Janis Worldwide, 575 00:28:05,359 --> 00:28:07,880 Speaker 2: Janis twenty and Janaston and Jana something else. I forget 576 00:28:07,880 --> 00:28:10,080 Speaker 2: the other two, but anyway, they all were just going 577 00:28:10,119 --> 00:28:12,080 Speaker 2: great guns and everybody thought, you, this is all I 578 00:28:12,119 --> 00:28:13,920 Speaker 2: need to have. I'm gonna dump everything in mortgage the 579 00:28:13,920 --> 00:28:15,840 Speaker 2: house and throw it all in Janis. And then when 580 00:28:15,880 --> 00:28:18,080 Speaker 2: you looked under the hood, it was all technology stocks. 581 00:28:18,080 --> 00:28:20,640 Speaker 2: And guess what, that bubble burst. All four funds went 582 00:28:20,680 --> 00:28:23,520 Speaker 2: down and we're basically essentially just about never heard from again. 583 00:28:23,600 --> 00:28:26,120 Speaker 2: So make sure you know why it's happening out there. 584 00:28:26,000 --> 00:28:28,040 Speaker 1: All right. I got to share a story along the 585 00:28:28,119 --> 00:28:31,320 Speaker 1: same lines. Yeah, you remember the am family of funds, 586 00:28:31,359 --> 00:28:34,120 Speaker 1: the Aim White Garden Fund. It was a large cap 587 00:28:34,160 --> 00:28:37,000 Speaker 1: growth fund, and I remember their wholesaler coming in This 588 00:28:37,080 --> 00:28:40,120 Speaker 1: is right again before the tech bubble, trying to tell 589 00:28:40,200 --> 00:28:42,960 Speaker 1: us that, hey, this fund never goes down. You could 590 00:28:42,960 --> 00:28:45,400 Speaker 1: put all your widow and orphan clients in it and 591 00:28:45,480 --> 00:28:46,360 Speaker 1: just let it ride. 592 00:28:46,480 --> 00:28:49,080 Speaker 2: Another one that had their marketing piece was literally a 593 00:28:49,160 --> 00:28:51,560 Speaker 2: checkbook problem. You could write checks off of it every 594 00:28:51,600 --> 00:28:52,160 Speaker 2: month or something. 595 00:28:52,240 --> 00:28:54,920 Speaker 1: Yeah. Yeah, And so when the tech bubble happened and 596 00:28:55,000 --> 00:28:57,960 Speaker 1: this thing came literally crashing down, I'm in a lunch 597 00:28:58,040 --> 00:29:00,560 Speaker 1: meeting and this guy comes back, and you know, I 598 00:29:00,640 --> 00:29:03,320 Speaker 1: was fairly young in the industry at that time, and 599 00:29:03,400 --> 00:29:06,080 Speaker 1: I stood up in a room full of about fifty 600 00:29:06,120 --> 00:29:09,200 Speaker 1: people and kind of went after this guy, and I 601 00:29:09,240 --> 00:29:12,200 Speaker 1: didn't drop any four letter words, but it got close. 602 00:29:13,120 --> 00:29:15,800 Speaker 1: My point being, and I think the point you're making too, 603 00:29:16,360 --> 00:29:21,280 Speaker 1: is outperformance tends to come when you overweight to a 604 00:29:21,360 --> 00:29:26,640 Speaker 1: sector or overweight, you know, outside the parameters. And if 605 00:29:26,640 --> 00:29:28,840 Speaker 1: you're right, you look like a genius, and boy, if 606 00:29:28,840 --> 00:29:32,280 Speaker 1: you're wrong, you look like a complete idiot. More importantly, 607 00:29:32,920 --> 00:29:35,440 Speaker 1: investors get left holding the bag in a down market. 608 00:29:35,520 --> 00:29:36,680 Speaker 1: It's not a good situation. Yeah. 609 00:29:36,720 --> 00:29:38,120 Speaker 2: I bet that was the last time he gave you 610 00:29:38,160 --> 00:29:39,160 Speaker 2: any bagels or golf balls. 611 00:29:39,320 --> 00:29:41,360 Speaker 1: Yeah. I didn't get any free subs after that. 612 00:29:41,520 --> 00:29:44,000 Speaker 2: Yeah, all right, let's move on to Tom and Mason. 613 00:29:44,280 --> 00:29:47,600 Speaker 2: Tom's got questions about bonds, popular topic today. Our bonds 614 00:29:47,640 --> 00:29:51,000 Speaker 2: are speds spread across short, medium, and long term funds, 615 00:29:51,040 --> 00:29:53,440 Speaker 2: and he's wondering does that really reduce risk or are 616 00:29:53,440 --> 00:29:55,320 Speaker 2: we just spreading it around and hoping for the best. Well, 617 00:29:55,360 --> 00:29:57,440 Speaker 2: hopefully you listen to the segment we did a second 618 00:29:57,480 --> 00:29:59,760 Speaker 2: ago about this very topic. But Bob, what else can 619 00:29:59,760 --> 00:30:00,720 Speaker 2: you have for Tommy? 620 00:30:00,960 --> 00:30:03,600 Speaker 1: Well, I would say, in today's day and age, I 621 00:30:03,680 --> 00:30:06,400 Speaker 1: do think, and I mean this with all due respect, 622 00:30:06,480 --> 00:30:08,480 Speaker 1: I think you're just kind of spreading in it around 623 00:30:08,480 --> 00:30:12,320 Speaker 1: and hoping for the best, meaning we're not getting compensated 624 00:30:12,680 --> 00:30:15,400 Speaker 1: very well at all right now in my view on 625 00:30:15,480 --> 00:30:19,520 Speaker 1: the risk and return spectrum by holding long term bonds. 626 00:30:19,560 --> 00:30:21,360 Speaker 1: And then, to make matters worse, when you're in a 627 00:30:21,440 --> 00:30:25,640 Speaker 1: mutual fund, you are mutually participating with everyone else that 628 00:30:25,720 --> 00:30:30,000 Speaker 1: owns that fund. And people own these funds for different reasons. 629 00:30:30,040 --> 00:30:33,440 Speaker 1: Some people are going to be long term holders, other 630 00:30:33,560 --> 00:30:35,800 Speaker 1: people are using it to pay their grocery bill or 631 00:30:35,840 --> 00:30:39,000 Speaker 1: mortgage this month. And the bond manager they've got to 632 00:30:39,080 --> 00:30:43,960 Speaker 1: liquidate assets when people redeem shares, and that may or 633 00:30:44,000 --> 00:30:46,640 Speaker 1: may not be the right time to do that, especially 634 00:30:46,680 --> 00:30:50,160 Speaker 1: on the long term side, if interest rates you elevate 635 00:30:50,240 --> 00:30:52,720 Speaker 1: in the bond and the prices are down at that time. 636 00:30:52,840 --> 00:30:56,080 Speaker 1: So I'm not a big fan of just holding these 637 00:30:56,360 --> 00:30:59,840 Speaker 1: managed mutual funds, especially the longer term you go out 638 00:31:00,040 --> 00:31:03,280 Speaker 1: on the yield curve. I'm a big believer if you can, 639 00:31:03,360 --> 00:31:05,960 Speaker 1: if you can do it, get some individual bonds where 640 00:31:06,000 --> 00:31:09,280 Speaker 1: you know which company you're loaning to and for how long, 641 00:31:09,600 --> 00:31:11,960 Speaker 1: and structure your financial plan so that you're going to 642 00:31:12,040 --> 00:31:15,760 Speaker 1: own these bonds to maturity, and then just reinvest based 643 00:31:15,800 --> 00:31:19,280 Speaker 1: on the current interst rate situation at the time. That's 644 00:31:19,440 --> 00:31:22,600 Speaker 1: my preferred, you know, way of operating. Brian. Anything to 645 00:31:22,640 --> 00:31:24,720 Speaker 1: add to that, because this is an important topic. 646 00:31:24,880 --> 00:31:26,200 Speaker 2: Yeah, I think I think it really is. But just 647 00:31:26,280 --> 00:31:28,120 Speaker 2: understand what's under the hood of the things that you 648 00:31:28,280 --> 00:31:31,800 Speaker 2: own and whether it fits your overall portfolio, and also 649 00:31:32,120 --> 00:31:34,080 Speaker 2: look for places where you might have doubled up on 650 00:31:34,160 --> 00:31:35,920 Speaker 2: and there might be overlap between all these things. 651 00:31:35,960 --> 00:31:38,080 Speaker 1: Yeah, and one further thing on that, if you want 652 00:31:38,120 --> 00:31:40,880 Speaker 1: to look at what your volatility really is, go try 653 00:31:40,920 --> 00:31:43,880 Speaker 1: to pull up a chart on Yahoo Finance or what 654 00:31:44,040 --> 00:31:46,640 Speaker 1: have you of your long term bond fund and just 655 00:31:46,760 --> 00:31:50,160 Speaker 1: see how it has performed during volatile times. And you 656 00:31:50,240 --> 00:31:52,240 Speaker 1: only have to go back to twenty twenty two to 657 00:31:52,360 --> 00:31:54,840 Speaker 1: see that. You know, if you're not comfortable with the 658 00:31:54,880 --> 00:31:57,880 Speaker 1: potential up and down movement of that bond fund, that 659 00:31:58,000 --> 00:32:02,280 Speaker 1: might be another reason to look at responsibly repositioning that 660 00:32:02,800 --> 00:32:05,680 Speaker 1: position in your portfolio. All right, let's move on to 661 00:32:05,880 --> 00:32:08,520 Speaker 1: Ron and Fort Thomas. He says, I'm stuck on this 662 00:32:08,560 --> 00:32:13,800 Speaker 1: decision about selling appreciated investments now versus holding for a 663 00:32:13,960 --> 00:32:17,360 Speaker 1: step up later. He means, when you know, somebody passes away, 664 00:32:18,160 --> 00:32:21,120 Speaker 1: what should I really be focused on right now? You know, 665 00:32:21,200 --> 00:32:22,240 Speaker 1: to make the proper call. 666 00:32:22,400 --> 00:32:24,200 Speaker 2: Yeah, So so let's flesh that out a little bit more. 667 00:32:24,240 --> 00:32:26,520 Speaker 2: The step up that he's referring to basically means that 668 00:32:26,560 --> 00:32:28,640 Speaker 2: he bought something for let's say ten bucks a share, 669 00:32:28,640 --> 00:32:30,520 Speaker 2: and it's now worth one hundred bucks of share. Therefore 670 00:32:30,560 --> 00:32:33,440 Speaker 2: there's a ninety dollars gain if he simply sits on 671 00:32:33,520 --> 00:32:35,240 Speaker 2: that and lets it go to his heirs when he 672 00:32:35,280 --> 00:32:38,360 Speaker 2: passes his errors will will own it at one hundred 673 00:32:38,360 --> 00:32:40,560 Speaker 2: dollars a share. That's sort of what they will have 674 00:32:40,640 --> 00:32:43,480 Speaker 2: purchased is at. Because the step up means you basically 675 00:32:43,520 --> 00:32:46,200 Speaker 2: bought it as of the day that your benefactor passed away, 676 00:32:46,280 --> 00:32:48,440 Speaker 2: so that's the step up in cost basis. So this 677 00:32:48,520 --> 00:32:50,760 Speaker 2: feels like a technical decision, but really it's about risk 678 00:32:50,840 --> 00:32:55,480 Speaker 2: management and uncertainty, you know, not tax optimization in a vacuum. 679 00:32:55,520 --> 00:32:57,960 Speaker 2: Separate what you can control from what you don't. You 680 00:32:58,080 --> 00:33:01,360 Speaker 2: control today's tax law and today as portfolio risk because 681 00:33:01,360 --> 00:33:03,920 Speaker 2: we know what they are. You do not control future 682 00:33:03,960 --> 00:33:06,760 Speaker 2: tax rates, future step up rules, or even your own 683 00:33:06,800 --> 00:33:09,880 Speaker 2: time horizon. So that step up strategy is by definition, 684 00:33:09,920 --> 00:33:12,760 Speaker 2: that's you're betting on unchanged law and not needing or 685 00:33:12,800 --> 00:33:14,960 Speaker 2: reallocating that capital. One of the common discussions I have 686 00:33:15,040 --> 00:33:17,600 Speaker 2: with folks in this situation is if you are bound 687 00:33:17,680 --> 00:33:20,640 Speaker 2: and determined to not consider that an asset of your 688 00:33:20,680 --> 00:33:22,560 Speaker 2: own because you will not sell it because you want 689 00:33:22,560 --> 00:33:25,160 Speaker 2: that tax or that tax step up. Now, I get 690 00:33:25,160 --> 00:33:27,360 Speaker 2: the logic behind the decision, but that means I can't 691 00:33:27,360 --> 00:33:29,200 Speaker 2: count it as a financial asset. If you're saying you'll 692 00:33:29,240 --> 00:33:31,360 Speaker 2: never sell it, it's not a financial asset. It's a 693 00:33:31,360 --> 00:33:33,000 Speaker 2: piece of artwork you're going to hang on the wall 694 00:33:33,200 --> 00:33:34,920 Speaker 2: until somebody inherits it. So we've got to do your 695 00:33:34,920 --> 00:33:37,360 Speaker 2: math for your financial plan just a little bit differently 696 00:33:37,400 --> 00:33:38,360 Speaker 2: to take that out of the mix. 697 00:33:38,920 --> 00:33:41,440 Speaker 1: All right, Coming up next, I've got my two cents 698 00:33:41,480 --> 00:33:44,880 Speaker 1: on some discussions we need to be having as family 699 00:33:44,920 --> 00:33:49,440 Speaker 1: members to take proper care of our aging loved ones, 700 00:33:49,520 --> 00:33:52,960 Speaker 1: meaning what decisions we need to be having and more importantly, 701 00:33:53,040 --> 00:33:55,960 Speaker 1: when we might want to start having them. You're listening 702 00:33:56,000 --> 00:33:58,400 Speaker 1: to Simply Money presented by all Worth Financial on fifty 703 00:33:58,440 --> 00:34:06,800 Speaker 1: five KRC the talk station. You're listening to Simply Money 704 00:34:06,880 --> 00:34:09,640 Speaker 1: presented by all Worth Financial. I'm Bob Sponsller along with 705 00:34:09,680 --> 00:34:13,120 Speaker 1: Brian James. Brian, I want to talk about a topic 706 00:34:13,160 --> 00:34:15,640 Speaker 1: that just came up yesterday, and it's coming up a 707 00:34:15,680 --> 00:34:18,840 Speaker 1: lot for my clients. And I'm just going to relate 708 00:34:18,880 --> 00:34:21,759 Speaker 1: an actual phone call that came in yesterday, and it's 709 00:34:21,840 --> 00:34:25,759 Speaker 1: just the husband passed away a few years ago. The 710 00:34:26,120 --> 00:34:29,600 Speaker 1: wife is still living. And these were actually my first 711 00:34:29,640 --> 00:34:33,320 Speaker 1: ever clients, so I've known them for thirty five years. 712 00:34:33,360 --> 00:34:37,960 Speaker 1: I love them dearly, and things are declining health wise 713 00:34:38,080 --> 00:34:41,680 Speaker 1: for their surviving spouse. And the main point I'm trying 714 00:34:41,719 --> 00:34:45,040 Speaker 1: to make here is when I talked to their children. 715 00:34:45,160 --> 00:34:48,359 Speaker 1: You know, there's two girls and a boy. The son 716 00:34:48,480 --> 00:34:53,640 Speaker 1: is the power of attorney. They're not communicating well together. 717 00:34:53,760 --> 00:34:58,239 Speaker 1: They're not taking a united stance on anything. And this 718 00:34:58,360 --> 00:35:02,080 Speaker 1: poor lady has fallen three time since Christmas. She's now 719 00:35:02,120 --> 00:35:06,200 Speaker 1: in a care facility. They do have long term care insurance, 720 00:35:06,360 --> 00:35:09,520 Speaker 1: but assets are starting to get spent. She thinks she's 721 00:35:09,560 --> 00:35:11,680 Speaker 1: going to be going back home. That's not going to 722 00:35:11,760 --> 00:35:15,440 Speaker 1: be possible, and no one is just leveling with her 723 00:35:15,640 --> 00:35:18,680 Speaker 1: and really leveling with one another as the siblings on 724 00:35:18,840 --> 00:35:21,560 Speaker 1: what is the new reality here and what do we 725 00:35:21,640 --> 00:35:24,480 Speaker 1: need to do to a care for mom and to 726 00:35:25,080 --> 00:35:28,040 Speaker 1: you know, do it in a financially responsible manner. And 727 00:35:28,920 --> 00:35:30,960 Speaker 1: I think The point I'm trying to make here is, 728 00:35:31,400 --> 00:35:34,280 Speaker 1: you know, I've seen this coming now for three years. 729 00:35:34,320 --> 00:35:39,040 Speaker 1: I've tried to spearhead these discussions with some success and 730 00:35:39,120 --> 00:35:42,439 Speaker 1: some failure. It's an issue, and it's coming up more 731 00:35:42,520 --> 00:35:45,480 Speaker 1: and more and more, and so you know, my advice 732 00:35:45,560 --> 00:35:49,480 Speaker 1: here is, at the first sign of any cognitive decline 733 00:35:49,719 --> 00:35:53,759 Speaker 1: or physical decline of a loved one, parent, uncle, and 734 00:35:54,000 --> 00:35:58,200 Speaker 1: anyone that we're responsible for or care deeply about, it's 735 00:35:58,280 --> 00:36:01,920 Speaker 1: just critical that we get the family together and talk 736 00:36:02,000 --> 00:36:05,880 Speaker 1: about how we're going to handle this together. Because schedules 737 00:36:05,920 --> 00:36:09,200 Speaker 1: get involved. People are working full time jobs, they're having 738 00:36:09,200 --> 00:36:12,360 Speaker 1: to drop everything if our loved one goes to the 739 00:36:12,680 --> 00:36:15,120 Speaker 1: er and has to be in the hospital, and and 740 00:36:15,239 --> 00:36:17,480 Speaker 1: things can get out of whack in a hurry, and 741 00:36:17,520 --> 00:36:20,440 Speaker 1: it's it's it's difficult for me to sit and watch happen. 742 00:36:20,719 --> 00:36:23,239 Speaker 1: We can't prevent any of this, but I think we 743 00:36:23,280 --> 00:36:25,759 Speaker 1: can get out in front of it. If again, at 744 00:36:25,760 --> 00:36:28,160 Speaker 1: the first sign of any of this kind of decline, 745 00:36:28,200 --> 00:36:31,600 Speaker 1: we pull people together and just you know, have these 746 00:36:31,640 --> 00:36:36,440 Speaker 1: tough conversations before it just becomes a hornet's nest of activity. 747 00:36:36,560 --> 00:36:38,000 Speaker 2: Yeah, and I think you hit the nail on the 748 00:36:38,040 --> 00:36:40,880 Speaker 2: head with that reference to schedules and busy and all 749 00:36:40,880 --> 00:36:43,200 Speaker 2: that kind of We all look to hide behind things 750 00:36:43,200 --> 00:36:46,200 Speaker 2: so that we can avoid scary decisions and scary conversations. 751 00:36:46,200 --> 00:36:48,000 Speaker 2: We see people do it every single day with when 752 00:36:48,000 --> 00:36:49,719 Speaker 2: am I going to retire? You know, when am I 753 00:36:49,760 --> 00:36:51,520 Speaker 2: going to do social Security? And how am I going 754 00:36:51,560 --> 00:36:53,080 Speaker 2: to pay the bills and all that. People who are 755 00:36:53,080 --> 00:36:55,400 Speaker 2: perfectly capable of doing these things can't pull the trigger 756 00:36:55,400 --> 00:36:58,200 Speaker 2: and make a decision. But it really comes in. Now 757 00:36:58,239 --> 00:37:00,920 Speaker 2: we're talking about a loved one's comfort and health and 758 00:37:01,200 --> 00:37:03,160 Speaker 2: well being and all those kinds of things. And we 759 00:37:03,239 --> 00:37:06,640 Speaker 2: may be having this conversation well before it's actually time 760 00:37:06,680 --> 00:37:08,080 Speaker 2: to pull the trigger, but you know what, that's the 761 00:37:08,160 --> 00:37:10,359 Speaker 2: time to have it. That is the time when you 762 00:37:10,400 --> 00:37:13,239 Speaker 2: are of clear and sound mind to share your own experiences. 763 00:37:13,280 --> 00:37:14,880 Speaker 2: Maybe you did this with your own parents, and you 764 00:37:14,920 --> 00:37:17,680 Speaker 2: remember how painful it was, and you have opinions as 765 00:37:17,680 --> 00:37:19,520 Speaker 2: to how you would like to be treated at that time, 766 00:37:19,840 --> 00:37:22,000 Speaker 2: share that when everybody knows that you are in a 767 00:37:22,000 --> 00:37:25,400 Speaker 2: clear mind and have these conversations, because you'll be setting 768 00:37:25,400 --> 00:37:27,919 Speaker 2: your own children up for things you may have gone 769 00:37:27,960 --> 00:37:30,480 Speaker 2: through and may have at one point said you'll never 770 00:37:30,520 --> 00:37:32,239 Speaker 2: do this to your own family. Well, you got to 771 00:37:32,280 --> 00:37:34,640 Speaker 2: do that sooner rather than later. And it doesn't necessarily 772 00:37:34,719 --> 00:37:36,400 Speaker 2: mean you have to set up an elaborate trust and 773 00:37:36,640 --> 00:37:38,920 Speaker 2: worry about that stuff later. Just start the conversation. 774 00:37:39,080 --> 00:37:41,719 Speaker 1: Well, I'm going beyond the legal documents here, because you 775 00:37:41,719 --> 00:37:44,239 Speaker 1: can have the best healthcare power of attorney and the 776 00:37:44,239 --> 00:37:46,759 Speaker 1: best financial power of attorney ever written. I mean, those 777 00:37:46,800 --> 00:37:50,000 Speaker 1: are legal documents that give people authority to do things 778 00:37:50,080 --> 00:37:52,960 Speaker 1: or not do things. But what I'm talking about is 779 00:37:53,239 --> 00:37:57,359 Speaker 1: harmony in the family, the emotions around this because you know, 780 00:37:57,640 --> 00:38:02,480 Speaker 1: sometimes people they they can or cannot face reality, and 781 00:38:02,480 --> 00:38:05,760 Speaker 1: they need to be talked through these situations. That goes 782 00:38:05,840 --> 00:38:09,560 Speaker 1: beyond what the legal documents say. It's about keeping harmony 783 00:38:09,600 --> 00:38:13,359 Speaker 1: in the family. And you've got to proactively communicate and 784 00:38:13,400 --> 00:38:15,520 Speaker 1: all get on the same page to make that happen. 785 00:38:15,560 --> 00:38:18,680 Speaker 1: Easier said than done, but it's very important. Thanks for 786 00:38:18,760 --> 00:38:21,200 Speaker 1: listening tonight. You've been listening to Simply Money, presented by 787 00:38:21,200 --> 00:38:24,520 Speaker 1: all Worth Financial on fifty five KRC, the talk station