1 00:00:06,680 --> 00:00:11,959 Speaker 1: Tonight, the seven financial lies we tell ourselves. You're listening 2 00:00:11,960 --> 00:00:15,160 Speaker 1: to Simply Money about all Worth Financial and Bob Spondseller along. 3 00:00:14,960 --> 00:00:16,000 Speaker 2: With Brian James. 4 00:00:16,640 --> 00:00:19,720 Speaker 1: Well, we all like to believe we make smart, rational 5 00:00:19,760 --> 00:00:22,560 Speaker 1: money decisions, but the truth is a lot of our 6 00:00:22,640 --> 00:00:28,600 Speaker 1: financial behavior is driven by emotion, stories or narratives we've inherited, 7 00:00:29,240 --> 00:00:31,960 Speaker 1: or even just flat out lies we tell ourselves to 8 00:00:32,159 --> 00:00:33,839 Speaker 1: feel better in the moment. 9 00:00:34,560 --> 00:00:37,520 Speaker 2: We've come up with seven of those such lies. 10 00:00:37,600 --> 00:00:39,920 Speaker 1: Brian, It's gonna be hard to get through all seven, 11 00:00:39,960 --> 00:00:41,080 Speaker 1: So we got to talk fast. 12 00:00:41,080 --> 00:00:43,040 Speaker 2: Here. Let's start with lie number one. 13 00:00:43,360 --> 00:00:45,960 Speaker 3: We're gonna hit the ground running here. I'll be happy 14 00:00:46,000 --> 00:00:49,040 Speaker 3: when I have more money. That's the only thing I need. 15 00:00:49,080 --> 00:00:51,400 Speaker 3: As a bigger pile. This one's the king of financial lives. 16 00:00:51,400 --> 00:00:53,640 Speaker 3: And I think every one of us starts here right, 17 00:00:54,120 --> 00:00:56,000 Speaker 3: you know, from our very first job, when we don't 18 00:00:56,040 --> 00:00:58,040 Speaker 3: really have much in the way of responsibility. The first 19 00:00:58,040 --> 00:01:00,400 Speaker 3: thought is safe, safe, safe safe safe invest invest invest, 20 00:01:00,720 --> 00:01:03,240 Speaker 3: and younger people tend to look all over the place 21 00:01:03,280 --> 00:01:05,560 Speaker 3: for that next thing that's going to double their money tomorrow, 22 00:01:06,080 --> 00:01:09,120 Speaker 3: before we learn how a market cycle works and so forth. Anyway, 23 00:01:09,319 --> 00:01:13,120 Speaker 3: these are deeply emotional and very very false things we 24 00:01:13,120 --> 00:01:16,640 Speaker 3: tell ourselves money does solve problems and reduces stress. But 25 00:01:16,720 --> 00:01:19,040 Speaker 3: there's plenty of research out there to show that after 26 00:01:19,080 --> 00:01:22,280 Speaker 3: a certain point, more money doesn't increase happiness. Bob, You 27 00:01:22,319 --> 00:01:24,640 Speaker 3: and I can guarantee this from the time we spend 28 00:01:24,680 --> 00:01:27,640 Speaker 3: with clients who you know, started with nothing and now 29 00:01:27,680 --> 00:01:30,279 Speaker 3: have maybe two three million dollars and are still worried 30 00:01:30,319 --> 00:01:33,920 Speaker 3: that it's just not enough, so always chasing that it 31 00:01:34,000 --> 00:01:36,360 Speaker 3: causes more stress than it brings peace. 32 00:01:37,520 --> 00:01:39,600 Speaker 1: Yeah, and you and I have both been doing this 33 00:01:39,640 --> 00:01:42,040 Speaker 1: a long time, both of us over thirty years. I 34 00:01:42,040 --> 00:01:44,080 Speaker 1: know you're a bit younger than me still, but I 35 00:01:44,120 --> 00:01:47,080 Speaker 1: can remember one of the first conferences I ever went to, 36 00:01:47,760 --> 00:01:50,160 Speaker 1: you know, as a young lad just starting out in 37 00:01:50,160 --> 00:01:53,720 Speaker 1: this business, and an older gentleman was giving a wonderful presentation, 38 00:01:53,840 --> 00:01:54,840 Speaker 1: and I never forgot it. 39 00:01:54,880 --> 00:01:56,280 Speaker 2: There's not a lot of things. 40 00:01:56,080 --> 00:01:59,240 Speaker 1: I remember from those conferences, but I remember that man 41 00:01:59,320 --> 00:02:02,720 Speaker 1: standing there and he was dead serious. And this was 42 00:02:02,760 --> 00:02:05,200 Speaker 1: a guy probably in his late sixties at that time. 43 00:02:05,280 --> 00:02:07,880 Speaker 1: I was in my late twenties, and he said, let 44 00:02:07,920 --> 00:02:12,840 Speaker 1: me tell you something, money only gives you one thing, choices, 45 00:02:13,960 --> 00:02:16,520 Speaker 1: And I never forgot that because that that was good. 46 00:02:16,600 --> 00:02:19,079 Speaker 1: Advice doesn't give you happiness, doesn't it solve all you. 47 00:02:19,240 --> 00:02:20,560 Speaker 1: It does give you choices. 48 00:02:20,600 --> 00:02:22,760 Speaker 3: You still got to make those choices, and you got 49 00:02:22,800 --> 00:02:25,760 Speaker 3: to make those choices, and the choices you make are 50 00:02:25,800 --> 00:02:27,120 Speaker 3: what define your happiness. 51 00:02:27,160 --> 00:02:30,639 Speaker 1: So yep, I'll be happy when I have more money. Yeah, 52 00:02:30,639 --> 00:02:33,359 Speaker 1: if you don't have any money right now, you'll certainly 53 00:02:33,400 --> 00:02:37,440 Speaker 1: be You'll certainly be happier because you have the opportunity 54 00:02:37,480 --> 00:02:38,400 Speaker 1: to make more choices. 55 00:02:38,440 --> 00:02:41,040 Speaker 3: But the choices will become fast and furious. 56 00:02:41,080 --> 00:02:41,840 Speaker 2: Though. Yeah. 57 00:02:42,000 --> 00:02:44,000 Speaker 1: Yeah, But I think the point you're making, and it's 58 00:02:44,040 --> 00:02:47,440 Speaker 1: a great one, just hoarding it, hoarding it, hoarding it 59 00:02:47,520 --> 00:02:50,880 Speaker 1: thinking that if I had another you know, zero or 60 00:02:50,880 --> 00:02:53,040 Speaker 1: so to my net worth, that I'm going to be happier. 61 00:02:53,080 --> 00:02:55,280 Speaker 1: That that's a fool's Errand let's move on to lie 62 00:02:55,400 --> 00:02:59,320 Speaker 1: number two, which is I'll start saving later. I just 63 00:02:59,360 --> 00:03:02,639 Speaker 1: need to catch up first. And this lie is all 64 00:03:02,639 --> 00:03:05,680 Speaker 1: about timing, and that can be dangerous. We tell ourselves 65 00:03:05,720 --> 00:03:09,840 Speaker 1: that we'll start saving once that next bonus hits or after. 66 00:03:09,639 --> 00:03:12,920 Speaker 2: The kids get through college, but the math is cruel. 67 00:03:13,639 --> 00:03:17,800 Speaker 1: It's time, not income, that's the most powerful force in 68 00:03:17,840 --> 00:03:21,160 Speaker 1: building wealth. And I can remember my dad Brian sitting 69 00:03:21,200 --> 00:03:24,800 Speaker 1: down in the basement one day, I think I was 70 00:03:24,840 --> 00:03:27,320 Speaker 1: maybe in middle school or grade school. 71 00:03:27,480 --> 00:03:29,079 Speaker 2: And I'm like, hey, what are you doing, Dad? 72 00:03:29,080 --> 00:03:30,919 Speaker 1: And he's got all the bills out in the checkbook 73 00:03:30,919 --> 00:03:33,480 Speaker 1: and he's paying bills and he said, he told me 74 00:03:33,520 --> 00:03:37,160 Speaker 1: at that time, he said, you want to get yourself 75 00:03:37,240 --> 00:03:41,800 Speaker 1: to the point sun where there's just there's not too 76 00:03:41,880 --> 00:03:44,720 Speaker 1: much month left at the end of the money. And 77 00:03:44,840 --> 00:03:48,520 Speaker 1: I always remember that. But the point is, life is 78 00:03:48,560 --> 00:03:51,360 Speaker 1: going to come at you fast and with all these choices, 79 00:03:51,400 --> 00:03:54,800 Speaker 1: whether it's getting married, having kids, buying cars, whatever we 80 00:03:54,920 --> 00:03:58,960 Speaker 1: do with that money, the sooner you can start, even 81 00:03:58,960 --> 00:04:01,520 Speaker 1: if you feel like it's a minimal amount of money, 82 00:04:01,560 --> 00:04:04,160 Speaker 1: fifty dollars per pay check, two hundred dollars a month 83 00:04:04,160 --> 00:04:07,120 Speaker 1: into a raw FIRA something like that, you will thank 84 00:04:07,200 --> 00:04:10,120 Speaker 1: yourself if you started in your twenties when you're in 85 00:04:10,160 --> 00:04:14,520 Speaker 1: your mid forties, because that compounding effect really does work 86 00:04:14,840 --> 00:04:16,000 Speaker 1: and it's hard to catch up. 87 00:04:16,680 --> 00:04:18,760 Speaker 3: Yeah, that's that's a really important one too. And then 88 00:04:18,760 --> 00:04:20,960 Speaker 3: there's there here's another one that I think that that 89 00:04:21,040 --> 00:04:23,760 Speaker 3: really kind of plays into the first two. Convincing ourselves 90 00:04:23,760 --> 00:04:27,479 Speaker 3: that we can time the market. Well, now you can't 91 00:04:27,520 --> 00:04:31,240 Speaker 3: really do that. I've lots of experience talking to people 92 00:04:31,240 --> 00:04:33,719 Speaker 3: who who really don't even Actually, most people I think 93 00:04:34,040 --> 00:04:36,440 Speaker 3: who are who are inclined to time the market are 94 00:04:36,440 --> 00:04:38,760 Speaker 3: not thinking of it that way. You know, most people 95 00:04:38,800 --> 00:04:40,119 Speaker 3: think of it in terms of fear. 96 00:04:40,240 --> 00:04:40,400 Speaker 2: Right. 97 00:04:40,440 --> 00:04:42,760 Speaker 3: It's not. This is not I'm a gambler. I got 98 00:04:42,760 --> 00:04:45,440 Speaker 3: all the answers I can. I can tap dance in 99 00:04:45,520 --> 00:04:48,880 Speaker 3: and out and only make the profitable times and sidestep 100 00:04:48,920 --> 00:04:51,960 Speaker 3: all the downtimes. That's not how this conversation occurs. Where 101 00:04:52,000 --> 00:04:55,119 Speaker 3: it occurs is in somebody's urge to protect. In other words, 102 00:04:55,160 --> 00:04:57,839 Speaker 3: the headlines get a little scary. We're kind of living 103 00:04:57,839 --> 00:04:59,880 Speaker 3: through some of this right now. We have been for 104 00:05:00,120 --> 00:05:02,800 Speaker 3: while now. But people will think that, Okay, I'll just 105 00:05:02,839 --> 00:05:04,600 Speaker 3: get out now and then when I feel better, I'll 106 00:05:04,640 --> 00:05:07,040 Speaker 3: come back in. That is a something about the market 107 00:05:07,120 --> 00:05:10,000 Speaker 3: psychologically makes us think backwards about it. If we go 108 00:05:10,080 --> 00:05:12,680 Speaker 3: with our gut, this is a real dangerous place, you know, 109 00:05:12,760 --> 00:05:13,919 Speaker 3: to kind of go with your gut. If you go 110 00:05:13,960 --> 00:05:15,440 Speaker 3: with your gut, your gut tells you to get out 111 00:05:15,480 --> 00:05:17,200 Speaker 3: at the bottom and buy back in at the top 112 00:05:17,760 --> 00:05:19,320 Speaker 3: the market. You know, the horses out of the barn. 113 00:05:19,360 --> 00:05:21,440 Speaker 3: The market is down, My investments have lost. 114 00:05:21,480 --> 00:05:22,120 Speaker 2: I'm going to. 115 00:05:22,120 --> 00:05:24,760 Speaker 3: Protect because of this weird notion that the market can 116 00:05:24,800 --> 00:05:26,800 Speaker 3: somehow go to zero for a brief period of time. 117 00:05:26,920 --> 00:05:29,719 Speaker 3: And everybody has Uncle Charlie who lost everything in the market, 118 00:05:29,720 --> 00:05:32,840 Speaker 3: and therefore they're they're scared of it. And my response 119 00:05:32,880 --> 00:05:35,240 Speaker 3: to that is, the market's right here, I'm looking at it. 120 00:05:35,440 --> 00:05:38,359 Speaker 3: If he lost everything, then he wasn't invested in the market, 121 00:05:38,400 --> 00:05:41,440 Speaker 3: you know, he was speculating on something. But anyway, whether 122 00:05:41,480 --> 00:05:44,920 Speaker 3: it's fear or greed, it's still timing the market, right, Yeah, 123 00:05:45,000 --> 00:05:47,520 Speaker 3: Uncle Charlie. God bless Uncle Charlie and his crazy money 124 00:05:47,520 --> 00:05:48,200 Speaker 3: making schemes. 125 00:05:49,040 --> 00:05:51,520 Speaker 1: Well, I think the emotion behind this. You talk about fear, 126 00:05:51,600 --> 00:05:54,080 Speaker 1: and it's it's a great point. I mean, let's face it, 127 00:05:54,160 --> 00:05:56,680 Speaker 1: people are working all day, they're focused on their job, 128 00:05:56,760 --> 00:05:59,920 Speaker 1: and then as soon as we turn on any media news, 129 00:06:00,520 --> 00:06:03,200 Speaker 1: I mean, fear sells. You know, they know that if 130 00:06:03,240 --> 00:06:05,599 Speaker 1: we scare people, we're going to continue to watch. And 131 00:06:05,680 --> 00:06:09,440 Speaker 1: so if people get inundated with negative stories all day long, 132 00:06:09,480 --> 00:06:11,720 Speaker 1: once they turn on the news or any media source, 133 00:06:11,839 --> 00:06:14,040 Speaker 1: yeah you're gonna have a little fear and you're going 134 00:06:14,120 --> 00:06:16,320 Speaker 1: to be worried. You know, human nature is I don't 135 00:06:16,320 --> 00:06:18,960 Speaker 1: want to lose any money, and uh, that can cause 136 00:06:18,960 --> 00:06:21,360 Speaker 1: people to sit out of the market for quite a 137 00:06:21,440 --> 00:06:23,600 Speaker 1: while and miss out on great opportunities. 138 00:06:23,600 --> 00:06:25,680 Speaker 2: Now one exception to this rule. 139 00:06:25,800 --> 00:06:28,280 Speaker 1: You know, and I'm not talking about timing, you know, 140 00:06:28,400 --> 00:06:29,640 Speaker 1: market timing and all. 141 00:06:29,520 --> 00:06:31,080 Speaker 2: That, but you do have to plan. 142 00:06:31,760 --> 00:06:32,039 Speaker 4: Uh. 143 00:06:32,080 --> 00:06:34,680 Speaker 1: This is where all part weighs a little bit. I mean, 144 00:06:34,760 --> 00:06:36,520 Speaker 1: if you know that you're going to be buying a 145 00:06:36,560 --> 00:06:40,240 Speaker 1: car in three months or going on a cruise in 146 00:06:40,360 --> 00:06:43,120 Speaker 1: two months. In other words, if you need some short 147 00:06:43,200 --> 00:06:47,720 Speaker 1: term liquid cash to buy something or spend money, you 148 00:06:47,760 --> 00:06:50,800 Speaker 1: don't want that money sitting in tech stocks up up 149 00:06:50,880 --> 00:06:53,719 Speaker 1: until the day before you need it. So there's a 150 00:06:53,800 --> 00:06:57,479 Speaker 1: time to refill the safe bucket, so to speak. If 151 00:06:57,480 --> 00:06:59,440 Speaker 1: you know things are coming down the pike, that's not 152 00:06:59,640 --> 00:07:02,720 Speaker 1: market timing, that's just good sound financial planning. 153 00:07:02,920 --> 00:07:06,320 Speaker 3: I agree. I couldn't agree more. Line number four. We 154 00:07:06,360 --> 00:07:10,080 Speaker 3: tell ourselves I deserve this because I work hard. Well, 155 00:07:10,080 --> 00:07:13,680 Speaker 3: this is lifestyle creep wrapped up in self justification, right, 156 00:07:13,720 --> 00:07:16,320 Speaker 3: just convincing ourselves that we need things and we should 157 00:07:16,360 --> 00:07:20,160 Speaker 3: go outside of our envelope of comfort because the universe 158 00:07:20,200 --> 00:07:20,880 Speaker 3: owes us something. 159 00:07:21,120 --> 00:07:21,720 Speaker 2: So we get. 160 00:07:21,560 --> 00:07:24,600 Speaker 3: Promotions, we get bonuses, business windfalls, we get the opportunity 161 00:07:24,800 --> 00:07:26,680 Speaker 3: to make some decision, and all of a sudden, we're 162 00:07:26,760 --> 00:07:29,240 Speaker 3: upgrading the house, the car, or the vacations. Without a plan. 163 00:07:29,400 --> 00:07:31,440 Speaker 3: These aren't bad things, right I'm not saying don't do them, 164 00:07:31,480 --> 00:07:32,960 Speaker 3: but don't do them without a plan. You have to 165 00:07:33,040 --> 00:07:36,400 Speaker 3: understand if I take some action right now that's going 166 00:07:36,440 --> 00:07:38,280 Speaker 3: to have an effect in the future, what is that. 167 00:07:38,520 --> 00:07:40,560 Speaker 3: Can I handle that or is it going to force 168 00:07:40,600 --> 00:07:42,920 Speaker 3: me to sacrifice something in the future. If you're in 169 00:07:42,960 --> 00:07:46,440 Speaker 3: that position, then you're not building wealth. You're building overhead stuff. 170 00:07:46,480 --> 00:07:48,000 Speaker 3: You got to maintain that. You may not have the 171 00:07:48,040 --> 00:07:51,360 Speaker 3: resources to do easy solution. Have a plan, Understand what 172 00:07:51,440 --> 00:07:54,360 Speaker 3: path you're on already, and with this new windfall, figure 173 00:07:54,360 --> 00:07:56,640 Speaker 3: out whether you can truly afford whatever it is that 174 00:07:56,680 --> 00:07:59,200 Speaker 3: you're considering, and if you can, go ahead, go confidently 175 00:07:59,240 --> 00:08:00,720 Speaker 3: and do the things. I'm not here to stare at 176 00:08:00,720 --> 00:08:02,880 Speaker 3: a pile of money. But at the same time, if 177 00:08:02,920 --> 00:08:05,320 Speaker 3: you have a plan, you'll know that this is too much. 178 00:08:05,600 --> 00:08:07,160 Speaker 3: You know that this here's what I get away with, 179 00:08:07,240 --> 00:08:10,280 Speaker 3: but here's what I can't. Especially for high earners, this 180 00:08:10,360 --> 00:08:12,320 Speaker 3: comes up all the time, this one can keep you 181 00:08:12,360 --> 00:08:14,600 Speaker 3: on that hamster wheel, off needing more to maintain that 182 00:08:14,680 --> 00:08:17,440 Speaker 3: lifestyle that doesn't actually bring you any long term joy. 183 00:08:17,920 --> 00:08:19,480 Speaker 3: You know, for those of you in the sales field, 184 00:08:19,520 --> 00:08:21,960 Speaker 3: you know your management above you would love for you 185 00:08:22,040 --> 00:08:24,040 Speaker 3: to buy that boat and buy that bigger house and 186 00:08:24,120 --> 00:08:27,320 Speaker 3: keep yourself chained to the to that hamster wheel for 187 00:08:27,360 --> 00:08:29,240 Speaker 3: a very long time. You've probably heard that from some 188 00:08:29,280 --> 00:08:30,280 Speaker 3: of your sales managers. 189 00:08:30,960 --> 00:08:32,400 Speaker 2: Yeah, and I'll just add to that, Brian. 190 00:08:32,480 --> 00:08:34,040 Speaker 1: I think that's where we got to be a little 191 00:08:34,080 --> 00:08:37,479 Speaker 1: self aware in our own emotions and what those emotions 192 00:08:37,520 --> 00:08:38,200 Speaker 1: cause us to do. 193 00:08:38,240 --> 00:08:39,120 Speaker 2: And here's what I mean. 194 00:08:39,520 --> 00:08:41,199 Speaker 1: You know, at the end of a stressful day, or 195 00:08:41,280 --> 00:08:44,400 Speaker 1: stressful week or stressful month, we all tend to want 196 00:08:44,440 --> 00:08:47,680 Speaker 1: to do something to relieve that stress. Some people could 197 00:08:47,720 --> 00:08:52,240 Speaker 1: work out at night and do something productive wasting time. 198 00:08:52,440 --> 00:08:56,040 Speaker 1: Other people drink, other people gamble, and other people pull 199 00:08:56,040 --> 00:08:58,840 Speaker 1: out their phones and go on Amazon and find something 200 00:08:58,880 --> 00:09:01,319 Speaker 1: to buy. You know, it may them feel better, and 201 00:09:01,360 --> 00:09:03,040 Speaker 1: that's what you gotta want. You know, you just got 202 00:09:03,080 --> 00:09:06,840 Speaker 1: to why are you making this decision? And are you 203 00:09:06,920 --> 00:09:12,600 Speaker 1: buying a depreciating asset or an appreciating asset? And oftentimes 204 00:09:12,600 --> 00:09:14,760 Speaker 1: to the point I think you've already made a lot 205 00:09:14,840 --> 00:09:17,480 Speaker 1: of people just buy stuff because they think they can 206 00:09:17,640 --> 00:09:20,640 Speaker 1: or they quote unquote deserve it, and you know, a 207 00:09:20,679 --> 00:09:23,280 Speaker 1: week or ten days from now, they wish they hadn't. 208 00:09:23,160 --> 00:09:26,160 Speaker 2: You know. And that's where you can't let emotion rule today. 209 00:09:26,559 --> 00:09:29,760 Speaker 1: Yeah, all right, lie number five, It won't happen to me, 210 00:09:30,400 --> 00:09:35,000 Speaker 1: whether it's divorce, disability, a job loss, or a health crisis. 211 00:09:35,640 --> 00:09:38,760 Speaker 1: People assume, and we all assume we are the exception 212 00:09:38,920 --> 00:09:41,920 Speaker 1: that stuff will never happen to me. And you know, 213 00:09:41,960 --> 00:09:45,840 Speaker 1: the more affluent people tend to get well more often, 214 00:09:46,040 --> 00:09:49,360 Speaker 1: people feel more bulletproof. And Brian, you and I have 215 00:09:49,520 --> 00:09:53,000 Speaker 1: both seen some major wealth or dollars go out the door, 216 00:09:53,120 --> 00:09:57,000 Speaker 1: not from bad investments, but simply from bad planning and 217 00:09:57,240 --> 00:10:00,000 Speaker 1: ignoring the fact that bad things. 218 00:09:59,679 --> 00:10:01,559 Speaker 2: Do have happened in the world and we do need 219 00:10:01,600 --> 00:10:02,439 Speaker 2: to plan for those. 220 00:10:02,520 --> 00:10:05,160 Speaker 3: Yeah, and I would say bad planning is actually no planning. 221 00:10:05,559 --> 00:10:08,160 Speaker 3: If you've stopped and thought at all and made any 222 00:10:08,280 --> 00:10:10,120 Speaker 3: kind of a plan, then at the very least you've 223 00:10:10,120 --> 00:10:12,680 Speaker 3: reviewed something and gotten a general opinion on it. Bad 224 00:10:12,679 --> 00:10:14,920 Speaker 3: planning is usually no planning at all, So make sure 225 00:10:14,960 --> 00:10:17,040 Speaker 3: that's not happening to you. We got two more to 226 00:10:17,080 --> 00:10:19,640 Speaker 3: get through, or we will have lied about our seven lies. 227 00:10:19,720 --> 00:10:22,640 Speaker 3: So let's move on to line number six. Talking about 228 00:10:22,679 --> 00:10:25,199 Speaker 3: money is tacky, right. We can't talk about these things, right, 229 00:10:25,200 --> 00:10:28,080 Speaker 3: It's taboo. This is very generational and i'd also say 230 00:10:28,120 --> 00:10:31,360 Speaker 3: regional too, very very Midwestern thought that we all grew 231 00:10:31,400 --> 00:10:33,760 Speaker 3: up believing that money is private and not to be discussed. 232 00:10:33,920 --> 00:10:36,840 Speaker 3: You don't talk about it amongst family, amongst generations. That's 233 00:10:36,880 --> 00:10:40,720 Speaker 3: for spouses to discuss only. Maybe sometimes that doesn't even happen. Definitely, 234 00:10:40,720 --> 00:10:42,680 Speaker 3: don't talk to your kids. Definitely don't talk to grandma 235 00:10:42,679 --> 00:10:44,560 Speaker 3: and grandpa about it. You just put that nose to 236 00:10:44,559 --> 00:10:46,280 Speaker 3: the grindstone and do your best. 237 00:10:46,880 --> 00:10:47,160 Speaker 4: Well. 238 00:10:47,240 --> 00:10:49,400 Speaker 3: This leads to a lot of confusion. It leads to 239 00:10:49,440 --> 00:10:51,520 Speaker 3: a lot of the situations that walk into our door, 240 00:10:52,120 --> 00:10:54,400 Speaker 3: you know, with people who just weren't ever told what 241 00:10:54,520 --> 00:10:57,440 Speaker 3: to do. I've had this conversation very very frequently. The 242 00:10:57,480 --> 00:11:00,040 Speaker 3: prior generation, I'd say, prior to the Baby Boomers. I 243 00:11:00,080 --> 00:11:02,920 Speaker 3: think maybe the early Baby boom was never taught about 244 00:11:02,960 --> 00:11:05,440 Speaker 3: what to do with wealth because there wasn't wealth. Those 245 00:11:05,480 --> 00:11:09,080 Speaker 3: generations grew up with pension plans, right, work hard, and 246 00:11:09,120 --> 00:11:11,439 Speaker 3: your company will pay you forever, even after you retire. 247 00:11:11,559 --> 00:11:14,280 Speaker 3: And those were great lives, and those are good financial, solid, 248 00:11:15,000 --> 00:11:18,400 Speaker 3: solid financial situations. But at the same time, nobody said, 249 00:11:18,440 --> 00:11:20,360 Speaker 3: here's what you do if you suddenly find yourself with 250 00:11:20,400 --> 00:11:21,920 Speaker 3: a couple million dollars in a four oh one k 251 00:11:22,200 --> 00:11:25,199 Speaker 3: because that's not what they could work for Baby Boom 252 00:11:25,280 --> 00:11:27,480 Speaker 3: generation forward, those who started working in the mid to 253 00:11:27,559 --> 00:11:30,120 Speaker 3: late seventies. That's what they're looking at. We've got a 254 00:11:30,160 --> 00:11:31,840 Speaker 3: solid pile of money we have to figure out how 255 00:11:31,840 --> 00:11:34,160 Speaker 3: to deal with It's not the same as having a pension. 256 00:11:34,200 --> 00:11:36,560 Speaker 3: So any advice you might have gotten, which probably wasn't 257 00:11:36,640 --> 00:11:39,240 Speaker 3: much anyway, would would have come from a different era 258 00:11:39,600 --> 00:11:41,720 Speaker 3: and is not really relevant. That's why so many people 259 00:11:41,760 --> 00:11:43,880 Speaker 3: don't know how to deal with success. And we work 260 00:11:43,920 --> 00:11:46,240 Speaker 3: ourselves into a grave because we had no concept what 261 00:11:46,280 --> 00:11:48,040 Speaker 3: two or three million dollars could do for us. 262 00:11:48,840 --> 00:11:51,720 Speaker 1: Right, and then line number seven the I'll figure it 263 00:11:51,760 --> 00:11:52,800 Speaker 1: out on my own. 264 00:11:53,120 --> 00:11:56,079 Speaker 2: Lie. This is the life of the do it yourself. 265 00:11:56,320 --> 00:11:59,240 Speaker 1: And look, there is nothing wrong with being smart, capable, 266 00:11:59,320 --> 00:12:02,440 Speaker 1: financially literate. I tell folks all the time, Brian. The 267 00:12:02,480 --> 00:12:06,800 Speaker 1: best client, in my opinion, is a fully educated client, 268 00:12:06,880 --> 00:12:09,400 Speaker 1: you know somebody that's really on top of things, because 269 00:12:09,440 --> 00:12:13,840 Speaker 1: then we can collaborate and make good decisions together. You 270 00:12:13,840 --> 00:12:15,600 Speaker 1: know what I'm talking about here is when it gets 271 00:12:15,640 --> 00:12:19,920 Speaker 1: into taxes, business interests, legacy planning and state planning, and 272 00:12:20,000 --> 00:12:23,520 Speaker 1: you know, investment and management dovetailing with taxes, a lot 273 00:12:23,520 --> 00:12:26,560 Speaker 1: of things start to collide in a hurry, and the 274 00:12:26,679 --> 00:12:29,439 Speaker 1: cost of a mistake gets higher and higher the higher 275 00:12:29,480 --> 00:12:32,240 Speaker 1: your net worth gets. You don't need to know everything, 276 00:12:32,440 --> 00:12:35,520 Speaker 1: You just need to work with people who do know 277 00:12:35,600 --> 00:12:37,959 Speaker 1: a lot about it and have the tools to help 278 00:12:38,000 --> 00:12:41,960 Speaker 1: you make good decisions. And Brian, that's why you and 279 00:12:42,040 --> 00:12:45,000 Speaker 1: I have jobs. I hate for this to sound self 280 00:12:45,080 --> 00:12:47,679 Speaker 1: promotional in any way, but you know, when you get 281 00:12:47,720 --> 00:12:49,400 Speaker 1: two or three heads in the room that are all 282 00:12:49,440 --> 00:12:52,120 Speaker 1: working together with the right tools, you can usually come 283 00:12:52,200 --> 00:12:56,160 Speaker 1: up with better decisions than any one of us trying 284 00:12:56,160 --> 00:12:57,760 Speaker 1: to figure it all out on our own. 285 00:12:58,160 --> 00:12:59,199 Speaker 2: Here's the all Worth advice. 286 00:12:59,280 --> 00:13:02,000 Speaker 1: The biggest financial risk you face may not be the 287 00:13:02,120 --> 00:13:05,800 Speaker 1: market at all. It might be the stories or narratives 288 00:13:06,320 --> 00:13:11,080 Speaker 1: you're walking around telling yourself. Make sure you make a 289 00:13:11,240 --> 00:13:15,400 Speaker 1: conscious decision to choose a better story for the rest 290 00:13:15,400 --> 00:13:17,439 Speaker 1: of your life. Coming up next, we're going to walk 291 00:13:17,480 --> 00:13:20,720 Speaker 1: through smart money moves you can make before, during, and 292 00:13:20,840 --> 00:13:24,040 Speaker 1: after a divorce to protect your wealth and plan for 293 00:13:24,120 --> 00:13:26,679 Speaker 1: your future. You're listening to Simply Money presented by all 294 00:13:26,679 --> 00:13:29,720 Speaker 1: Worth Financial on fifty five KRC the talk station. 295 00:13:34,000 --> 00:13:35,520 Speaker 2: You're listening to Simply Money. 296 00:13:35,240 --> 00:13:37,960 Speaker 1: Presented by all Worth Financial on Bob Sponseller along with 297 00:13:38,000 --> 00:13:41,320 Speaker 1: Brian James. If you can't listen to Simply Money every night, 298 00:13:41,400 --> 00:13:43,640 Speaker 1: subscribe and get our daily podcast. 299 00:13:44,000 --> 00:13:44,800 Speaker 2: And if you think your. 300 00:13:44,720 --> 00:13:47,760 Speaker 1: Friends or family could use some financial advice, now'll send 301 00:13:47,840 --> 00:13:50,880 Speaker 1: us along to them as well. Just search Simply Money 302 00:13:51,120 --> 00:13:54,280 Speaker 1: on the iHeart app or wherever you find your podcast. 303 00:13:55,200 --> 00:13:59,880 Speaker 1: Whether it's preparing for cognitive decline, getting your spouse financially ready, 304 00:14:00,360 --> 00:14:06,840 Speaker 1: navigating perhaps mismatched risk tolerance, risk tolerances between spouses, and 305 00:14:06,960 --> 00:14:11,280 Speaker 1: choosing between bonds and bond funds. We've got your questions 306 00:14:11,559 --> 00:14:14,800 Speaker 1: and our answers straight ahead at six forty three. 307 00:14:15,200 --> 00:14:15,440 Speaker 2: Well. 308 00:14:15,520 --> 00:14:19,160 Speaker 1: Divorce is one of those life events that can change everything, 309 00:14:19,320 --> 00:14:22,680 Speaker 1: not only your home and your family dynamics, but your 310 00:14:22,760 --> 00:14:26,560 Speaker 1: financial world as well. And while it's never something anyone 311 00:14:26,640 --> 00:14:30,840 Speaker 1: plans for, in advance statistics show Brian that divorce is 312 00:14:30,880 --> 00:14:34,920 Speaker 1: still very much a reality for millions of Americans. 313 00:14:35,800 --> 00:14:38,320 Speaker 3: So let's cover some statistics, some number behind this rather 314 00:14:38,360 --> 00:14:41,600 Speaker 3: sobering topic. So new data estimates that roughly four and 315 00:14:41,720 --> 00:14:44,680 Speaker 3: ten marriages are likely to end in divorce. That's for 316 00:14:44,760 --> 00:14:47,440 Speaker 3: first marriages. That number gets even higher for second and third. 317 00:14:47,720 --> 00:14:50,360 Speaker 3: That's why financial planning around divorce isn't just a nice 318 00:14:50,360 --> 00:14:53,760 Speaker 3: to have, bob, It's essential. It hits your finance is hard, 319 00:14:54,000 --> 00:14:57,200 Speaker 3: really really hard. So after divorce, most people need significantly 320 00:14:57,240 --> 00:14:59,800 Speaker 3: more money just to maintain their prior standard or living, 321 00:15:00,120 --> 00:15:02,800 Speaker 3: in many cases thirty percent or more. This basically means 322 00:15:03,000 --> 00:15:06,480 Speaker 3: because divorced people are still connected financially because of the 323 00:15:06,480 --> 00:15:09,880 Speaker 3: way that alamony and sometimes child support all that stuff works. 324 00:15:10,040 --> 00:15:12,360 Speaker 3: So it basically means that you're not married, but now 325 00:15:12,400 --> 00:15:15,240 Speaker 3: your finances have to support two households in some way, 326 00:15:15,600 --> 00:15:18,480 Speaker 3: so you've got retirement accounts, the family home itself, investments. 327 00:15:18,480 --> 00:15:20,560 Speaker 3: All this stuff has to be divided, and that can 328 00:15:20,640 --> 00:15:23,600 Speaker 3: dramatically affect long term wealth and a lot of times 329 00:15:24,760 --> 00:15:28,760 Speaker 3: women tend to step back from careers and for caregifting 330 00:15:29,000 --> 00:15:31,960 Speaker 3: or defer financial decisions to their spouses, which leaves them 331 00:15:31,960 --> 00:15:35,160 Speaker 3: at a disadvantage. After that divorce. Some surveys show that 332 00:15:35,200 --> 00:15:37,720 Speaker 3: half of these women completely defer financial planning to their 333 00:15:37,720 --> 00:15:39,840 Speaker 3: spouse and aren't even involved in the meetings. I can 334 00:15:39,880 --> 00:15:42,800 Speaker 3: confirm that you probably can too, and that can result 335 00:15:42,800 --> 00:15:45,280 Speaker 3: in worse out comes later. And it's not always the woman. 336 00:15:45,360 --> 00:15:47,240 Speaker 3: Sometimes it's the man that wants nothing to do with it. 337 00:15:47,400 --> 00:15:50,360 Speaker 3: But the point is, either way, unless you know what 338 00:15:50,400 --> 00:15:52,480 Speaker 3: your situation is, you're not going to be able to 339 00:15:52,480 --> 00:15:56,120 Speaker 3: really transition smoothly into a single household. Should that befollow 340 00:15:56,160 --> 00:15:56,720 Speaker 3: you at some point? 341 00:15:57,560 --> 00:16:00,000 Speaker 2: Yeah, it's not a men and women thing anymore. 342 00:16:00,240 --> 00:16:02,120 Speaker 1: I went through a situation at the end of last 343 00:16:02,200 --> 00:16:04,640 Speaker 1: year where the man in this situation he had never 344 00:16:04,680 --> 00:16:07,160 Speaker 1: filed a tax returner in his life. He had no 345 00:16:07,280 --> 00:16:09,640 Speaker 1: idea what the family had in the way of money. 346 00:16:10,040 --> 00:16:13,760 Speaker 1: You know, his wife handled all of the finances, and 347 00:16:13,840 --> 00:16:15,480 Speaker 1: you know, to the point you've already made you know, 348 00:16:15,600 --> 00:16:18,200 Speaker 1: now when the divorce happens, we got to go back 349 00:16:18,240 --> 00:16:20,520 Speaker 1: and figure it all out. So let's get into some 350 00:16:21,040 --> 00:16:25,800 Speaker 1: best practices here. Before you even file for divorce. You 351 00:16:25,880 --> 00:16:29,200 Speaker 1: got to go in with your eyes wide open, if possible, 352 00:16:29,800 --> 00:16:34,360 Speaker 1: and know every account checking savings, investment, retirement, real estate, 353 00:16:34,440 --> 00:16:39,280 Speaker 1: and most importantly any debts, especially those pesky credit card debts, 354 00:16:39,320 --> 00:16:42,400 Speaker 1: because sometimes one of the spouses can get, you know, 355 00:16:42,600 --> 00:16:45,120 Speaker 1: a little ambitious and go run up a credit card 356 00:16:45,200 --> 00:16:48,160 Speaker 1: bill for a card that they quote unquote jointly own, 357 00:16:48,760 --> 00:16:50,880 Speaker 1: and the divorce happens, and all of a sudden, the 358 00:16:51,080 --> 00:16:54,400 Speaker 1: one of the spouses is left with a potential debt. 359 00:16:54,800 --> 00:16:57,600 Speaker 1: They had no idea where it even came from because 360 00:16:57,600 --> 00:16:59,360 Speaker 1: they weren't involved in any of the spending. 361 00:16:59,760 --> 00:17:02,480 Speaker 3: So, you know, I want, yeah, I want to make 362 00:17:02,480 --> 00:17:04,480 Speaker 3: a quick point on that. Just quick quick story from 363 00:17:04,520 --> 00:17:06,280 Speaker 3: the trenches. So I had this is about five or 364 00:17:06,320 --> 00:17:08,880 Speaker 3: six years ago, but I had a case where it 365 00:17:08,960 --> 00:17:11,680 Speaker 3: wasn't a divorce, but it was a death, and the 366 00:17:12,000 --> 00:17:15,399 Speaker 3: surviving spouse found that her husband had run run up 367 00:17:15,440 --> 00:17:18,320 Speaker 3: eighty thousand dollars worth of credit card debt betting on 368 00:17:18,359 --> 00:17:21,400 Speaker 3: the horses down in Kentucky. And she was absolutely panic 369 00:17:21,440 --> 00:17:23,639 Speaker 3: because that was going to sink their ship. But we 370 00:17:23,720 --> 00:17:26,080 Speaker 3: had to I had to rush and hurry because she 371 00:17:26,119 --> 00:17:28,240 Speaker 3: was so panicked about it. She just wanted it paid off. 372 00:17:28,760 --> 00:17:30,480 Speaker 3: We had to rush and scramble to get her to 373 00:17:30,560 --> 00:17:32,760 Speaker 3: a lawyer so somebody could explain to her that that 374 00:17:32,920 --> 00:17:36,000 Speaker 3: was not her debt. Credit card company definitely wanted it, 375 00:17:36,040 --> 00:17:38,800 Speaker 3: they were calling her every day, but it wasn't her problem. 376 00:17:38,880 --> 00:17:41,639 Speaker 3: So again, this is not a divorce situation unless you 377 00:17:41,680 --> 00:17:42,959 Speaker 3: feel like it is. But if you, if you, if 378 00:17:43,000 --> 00:17:45,399 Speaker 3: you are getting divorced your spouse, your ex spouse has 379 00:17:45,480 --> 00:17:48,399 Speaker 3: credit card debts in their name, that is not your responsibility. 380 00:17:48,520 --> 00:17:50,560 Speaker 3: The credit card companies could care less. They just want 381 00:17:50,560 --> 00:17:52,640 Speaker 3: to scare somebody into paying it. But if your name's 382 00:17:52,680 --> 00:17:53,800 Speaker 3: not on it, you don't know it. 383 00:17:54,359 --> 00:17:55,720 Speaker 2: Yeah, imagine being that woman. 384 00:17:55,800 --> 00:17:57,720 Speaker 1: She's trying to figure out, you know how we're going 385 00:17:57,800 --> 00:17:59,880 Speaker 1: to take care of the kids, start a new house, 386 00:18:00,240 --> 00:18:03,080 Speaker 1: and she's got a credit card company, you know, hounding 387 00:18:03,119 --> 00:18:04,920 Speaker 1: her to pay off a debt she had no idea 388 00:18:04,920 --> 00:18:05,600 Speaker 1: if it existed. 389 00:18:05,680 --> 00:18:06,320 Speaker 2: It's a mess. 390 00:18:06,359 --> 00:18:09,760 Speaker 1: So again, you got to sit down with somebody, a 391 00:18:09,760 --> 00:18:14,000 Speaker 1: good fiduciary, advisor and especially and an attorney by the way, 392 00:18:14,640 --> 00:18:18,200 Speaker 1: you're gonna need one, and somebody that just can look 393 00:18:18,240 --> 00:18:21,879 Speaker 1: through all the emotion and help you think rationally about 394 00:18:21,880 --> 00:18:24,480 Speaker 1: what's coming down the road. Because Brian, you know a 395 00:18:24,480 --> 00:18:26,720 Speaker 1: lot of time and you know this, things can get 396 00:18:26,760 --> 00:18:29,240 Speaker 1: heated and very emotional, very quickly. 397 00:18:29,800 --> 00:18:31,680 Speaker 2: And when emotion rules the day. 398 00:18:32,119 --> 00:18:35,320 Speaker 1: That's when people can make rash decisions that will really 399 00:18:35,400 --> 00:18:38,359 Speaker 1: burn them later. You know, one of those decisions is, 400 00:18:38,440 --> 00:18:40,080 Speaker 1: you know, by all means, I'm never going. 401 00:18:40,040 --> 00:18:41,640 Speaker 2: To move out of my house. I want the house. 402 00:18:41,720 --> 00:18:42,399 Speaker 2: I want the house. 403 00:18:42,640 --> 00:18:45,200 Speaker 1: Well, you might get the house, but after the divorce, 404 00:18:45,280 --> 00:18:47,639 Speaker 1: you might not be able to afford to live in 405 00:18:47,680 --> 00:18:51,000 Speaker 1: the house when you factor in taxes, improvement costs, all that. 406 00:18:51,160 --> 00:18:53,159 Speaker 1: So this is why it's good to sit down with 407 00:18:53,200 --> 00:18:55,560 Speaker 1: an advisor that can sit down and say, hey, what 408 00:18:55,720 --> 00:18:58,720 Speaker 1: is your life really going to look like after this 409 00:18:58,920 --> 00:19:03,080 Speaker 1: marriage ends, and just start from scratch on rebuilding a 410 00:19:03,119 --> 00:19:07,720 Speaker 1: financial plan in the new reality post divorce, and make 411 00:19:07,760 --> 00:19:11,160 Speaker 1: sure you're making decisions on which accounts because you're dealing 412 00:19:11,200 --> 00:19:14,600 Speaker 1: with taxable accounts, non taxable accounts, all that kind of thing. 413 00:19:14,880 --> 00:19:17,159 Speaker 1: You want to make sure you're getting treated fairly and 414 00:19:17,240 --> 00:19:20,960 Speaker 1: equitably so you're in a position to at least succeed 415 00:19:21,040 --> 00:19:22,800 Speaker 1: financially after this marriage ends. 416 00:19:22,840 --> 00:19:24,879 Speaker 3: And Bob, let's not forget you mentioned stuff that a 417 00:19:24,880 --> 00:19:26,800 Speaker 3: lot of people have to deal with. It's fairly simple 418 00:19:26,840 --> 00:19:29,159 Speaker 3: to go in and split up a checking account or 419 00:19:29,200 --> 00:19:32,399 Speaker 3: a publicly treated securities broker's account. But if your higher network. 420 00:19:32,440 --> 00:19:35,400 Speaker 3: You might have business interest trusts out there, private equity, 421 00:19:35,440 --> 00:19:38,960 Speaker 3: private credit, complicated states, partnerships that have carry in them, 422 00:19:38,960 --> 00:19:41,439 Speaker 3: those kinds of things. That is not easy. So I 423 00:19:41,440 --> 00:19:44,119 Speaker 3: would definitely be looking at all of those details and 424 00:19:44,160 --> 00:19:46,320 Speaker 3: budget time to take care of them as well, much 425 00:19:46,320 --> 00:19:47,040 Speaker 3: more complicated. 426 00:19:47,640 --> 00:19:48,719 Speaker 2: Here's the all Worth advice. 427 00:19:48,760 --> 00:19:52,320 Speaker 1: Don't let divorce leave your financial future to chance. Get 428 00:19:52,440 --> 00:19:57,200 Speaker 1: organized early, use the right professionals and rebuild with intention. 429 00:19:57,680 --> 00:20:00,400 Speaker 1: And if you know someone in this situation right now now, 430 00:20:00,640 --> 00:20:02,000 Speaker 1: maybe send them this segment. 431 00:20:02,400 --> 00:20:03,680 Speaker 2: Coming up next, we're going to talk. 432 00:20:03,600 --> 00:20:07,080 Speaker 1: About why cyber crimes against seniors are becoming a real 433 00:20:07,240 --> 00:20:10,560 Speaker 1: family emergency and what you can do about it. You're 434 00:20:10,600 --> 00:20:13,000 Speaker 1: listening to Simply Money Presided by all Worth Financial on 435 00:20:13,040 --> 00:20:21,600 Speaker 1: fifty five KRC the talk station. You're listening to Simply 436 00:20:21,640 --> 00:20:24,919 Speaker 1: Money Presided by all Worth Financial. I'm Bob Sponseller along 437 00:20:24,960 --> 00:20:29,840 Speaker 1: with Brian James, joined tonight by our technology and cybersecurity guru, 438 00:20:30,000 --> 00:20:31,080 Speaker 1: mister Dave Hatter. 439 00:20:31,280 --> 00:20:34,880 Speaker 2: Dave, it's always great to have you with us tonight. 440 00:20:34,920 --> 00:20:37,480 Speaker 1: You want to talk about elder scams and this is 441 00:20:37,520 --> 00:20:41,560 Speaker 1: something that seems to be growing and growing in regularity, 442 00:20:41,640 --> 00:20:43,760 Speaker 1: and it's something we all need to be aware of 443 00:20:43,840 --> 00:20:45,040 Speaker 1: and make plans to prevent. 444 00:20:46,280 --> 00:20:49,679 Speaker 5: Yeah, guys, sadly this appreciate you having me on. It's 445 00:20:49,680 --> 00:20:51,679 Speaker 5: always I think this is an important topic because you 446 00:20:51,680 --> 00:20:54,520 Speaker 5: know I have elderly parents, I know many of your 447 00:20:54,520 --> 00:20:56,959 Speaker 5: listeners do, and this is a growing concern. 448 00:20:57,040 --> 00:20:59,240 Speaker 4: So just one stat and this is a great. 449 00:20:59,000 --> 00:21:02,120 Speaker 5: Site for folks, by the way, just for general stats 450 00:21:02,160 --> 00:21:06,000 Speaker 5: and information. The Internet Crime Complaints Center IC three, which 451 00:21:06,080 --> 00:21:09,440 Speaker 5: is run by the FBI. They put out a fraud 452 00:21:09,600 --> 00:21:11,919 Speaker 5: report every year that's got all kinds of stats in it. 453 00:21:11,960 --> 00:21:13,719 Speaker 5: And again the site is just useful in a lot 454 00:21:13,760 --> 00:21:16,720 Speaker 5: of ways. I encourage people to bookmarkt IC three dot gov. 455 00:21:18,359 --> 00:21:21,280 Speaker 5: Elder fraud losses hit four point eight eight billion and 456 00:21:21,359 --> 00:21:24,040 Speaker 5: twenty twenty four, a staggering forty three percent jump from 457 00:21:24,080 --> 00:21:27,720 Speaker 5: the previous year. The average senior victim lost over eighty 458 00:21:27,720 --> 00:21:30,919 Speaker 5: three thousand dollars. And then another good site for some 459 00:21:31,040 --> 00:21:35,080 Speaker 5: insight into this is the Federal Trade Commission FTCFTC dot gov. 460 00:21:35,160 --> 00:21:37,879 Speaker 5: So here's a headline from a public service announcement. They 461 00:21:37,880 --> 00:21:42,080 Speaker 5: put out business and government impersonators go after older adults 462 00:21:42,119 --> 00:21:45,160 Speaker 5: life savings, and then they have some stats in there too. 463 00:21:45,440 --> 00:21:45,840 Speaker 4: They say. 464 00:21:45,880 --> 00:21:49,800 Speaker 5: In fact, reported losses of over one hundred thousand dollars 465 00:21:49,800 --> 00:21:53,280 Speaker 5: increase nearly sevenfold from twenty twenty to twenty twenty four. 466 00:21:53,920 --> 00:21:56,360 Speaker 5: So you know, I hate to always be the doomsday guy, 467 00:21:56,480 --> 00:21:58,720 Speaker 5: the guy with the ten four hat, always warning about 468 00:21:58,720 --> 00:22:00,760 Speaker 5: this stuff, but you know, I don't want to see 469 00:22:00,760 --> 00:22:04,480 Speaker 5: people lose their entire life savings. And is we spend 470 00:22:04,480 --> 00:22:08,280 Speaker 5: more time online and every facet of our lives working, education, 471 00:22:08,680 --> 00:22:12,119 Speaker 5: you know, school, you name it, think about it. What 472 00:22:12,280 --> 00:22:14,800 Speaker 5: are you not doing online nowadays? It just creates that 473 00:22:14,880 --> 00:22:17,760 Speaker 5: many more attack factors for the bad guys. You're throwing 474 00:22:17,800 --> 00:22:20,960 Speaker 5: things like artificial intelligence and the ability to generate, to 475 00:22:21,000 --> 00:22:26,080 Speaker 5: clone someone's voice, to generate incredibly realistic videos, incredibly realistic texts, 476 00:22:26,080 --> 00:22:29,040 Speaker 5: to kind of eliminate all the old school tells like 477 00:22:29,119 --> 00:22:31,440 Speaker 5: well I got an email asking me to do something weird, 478 00:22:31,480 --> 00:22:33,119 Speaker 5: and I need to send gift cards to the hamlet. 479 00:22:33,119 --> 00:22:35,760 Speaker 5: The county sheriffs can arrest me, but the grammars all 480 00:22:35,760 --> 00:22:38,639 Speaker 5: weird and so forth, All that's gone. The bad guys 481 00:22:38,680 --> 00:22:41,439 Speaker 5: have access to low cost or free tools that make 482 00:22:41,480 --> 00:22:43,960 Speaker 5: it really easy for them to run these sort of 483 00:22:44,000 --> 00:22:46,720 Speaker 5: scams at scale. And again, you don't have to take 484 00:22:46,760 --> 00:22:48,560 Speaker 5: my word for it. You can see what the FBI 485 00:22:48,720 --> 00:22:51,399 Speaker 5: is saying, You see what the FTC is saying. And 486 00:22:51,440 --> 00:22:53,480 Speaker 5: at one last point and then I'll let you guys 487 00:22:53,480 --> 00:22:58,000 Speaker 5: start asking some specific questions. Is you know this again? 488 00:22:58,080 --> 00:23:01,560 Speaker 5: The documentation is all out there. The scams are increasing, 489 00:23:01,680 --> 00:23:04,159 Speaker 5: They're targeting elderly people in some cases. But you know, 490 00:23:04,200 --> 00:23:06,879 Speaker 5: we're all subject to all kinds of scams, and this 491 00:23:07,000 --> 00:23:09,680 Speaker 5: kind of education is important, as is a healthy dose 492 00:23:10,160 --> 00:23:13,199 Speaker 5: of skepticism and vigilance. You know, the hamlet the kind 493 00:23:13,240 --> 00:23:15,520 Speaker 5: of sheriff is not going to call you and tell 494 00:23:15,560 --> 00:23:17,840 Speaker 5: you that because of a parking ticket, they're coming at 495 00:23:17,880 --> 00:23:20,919 Speaker 5: three to arrest you if you don't buy gift cards 496 00:23:21,000 --> 00:23:23,840 Speaker 5: or send an inmote payment, right, they don't operate that way. 497 00:23:24,119 --> 00:23:26,720 Speaker 6: Hey, hey, Dave, So yeah, and those are those are 498 00:23:26,720 --> 00:23:28,840 Speaker 6: those are all great examples. But you're right, this isn't 499 00:23:28,920 --> 00:23:31,560 Speaker 6: new news anymore. And I think the one that is 500 00:23:31,600 --> 00:23:33,640 Speaker 6: new is the to me is the deep fake stuff. 501 00:23:33,680 --> 00:23:35,560 Speaker 6: I don't think we've even scratched the surface on that. 502 00:23:35,560 --> 00:23:38,040 Speaker 6: I have yet to hear a story, you know, about 503 00:23:38,040 --> 00:23:39,960 Speaker 6: somebody losing an awful lot of money yet to that, 504 00:23:40,000 --> 00:23:42,040 Speaker 6: But that is coming and it's going to be huge. 505 00:23:42,200 --> 00:23:45,600 Speaker 6: So these articles you said is extremely helpful here, but 506 00:23:45,640 --> 00:23:48,440 Speaker 6: they reference an awful lot about cyber insurance. So I 507 00:23:48,480 --> 00:23:49,960 Speaker 6: don't want to drag you off course here, but is 508 00:23:50,000 --> 00:23:52,120 Speaker 6: this something that we should be considering? I mean, maybe 509 00:23:52,160 --> 00:23:53,879 Speaker 6: we all have home insurance, we have fire insurance, we 510 00:23:53,920 --> 00:23:56,280 Speaker 6: got flood insurance in some case. Is it we at 511 00:23:56,280 --> 00:23:58,480 Speaker 6: a point where we should all consider cyber insurance? 512 00:23:58,520 --> 00:23:58,920 Speaker 2: Do you think? 513 00:23:59,720 --> 00:23:59,840 Speaker 4: Uh? 514 00:24:00,160 --> 00:24:03,199 Speaker 5: I think it's worth it as a business, absolutely, But 515 00:24:03,240 --> 00:24:06,120 Speaker 5: I also find that many small businesses that I talk 516 00:24:06,160 --> 00:24:07,960 Speaker 5: to about this stuff because you know, in my real job, 517 00:24:08,000 --> 00:24:09,960 Speaker 5: I'm now talking about this all the time and trying 518 00:24:10,000 --> 00:24:17,719 Speaker 5: to help business. Yeah, you know, people will say, well, 519 00:24:17,760 --> 00:24:19,679 Speaker 5: I've got cyber insurance, I don't need to care about this. 520 00:24:19,720 --> 00:24:22,119 Speaker 5: And I just like to remind folks, well, your fire 521 00:24:22,160 --> 00:24:24,879 Speaker 5: insurance does not keep your building from burning down. You know, 522 00:24:24,960 --> 00:24:28,000 Speaker 5: ideally it helps you recover should that happen. So you 523 00:24:28,040 --> 00:24:30,160 Speaker 5: can't just say well, I got insurance, I'm good to go. 524 00:24:30,240 --> 00:24:30,400 Speaker 4: Right. 525 00:24:30,480 --> 00:24:33,960 Speaker 5: You need a strategy where you're trying to parden your environment, 526 00:24:34,160 --> 00:24:37,720 Speaker 5: defend yourself against these kind of attacks. Be smart, be vigilant, 527 00:24:37,800 --> 00:24:41,080 Speaker 5: move slow, and then you know, be resilient. Part of 528 00:24:41,080 --> 00:24:44,240 Speaker 5: that resilience, you know, in addition to backups and so forth, 529 00:24:44,440 --> 00:24:45,280 Speaker 5: might be insurance. 530 00:24:46,000 --> 00:24:46,879 Speaker 4: You know, as an. 531 00:24:46,720 --> 00:24:49,000 Speaker 5: Individual, does it make sense to get some kind of 532 00:24:49,119 --> 00:24:52,360 Speaker 5: personal cyber insurance? Maybe, especially if you have a lot 533 00:24:52,359 --> 00:24:54,919 Speaker 5: of risk, if you're a high net worth person. But 534 00:24:54,960 --> 00:24:56,920 Speaker 5: I think there's a lot of things you can do, guys. Again, 535 00:24:57,000 --> 00:24:59,600 Speaker 5: the first step is always knowledge, right, I mean, you 536 00:24:59,640 --> 00:25:04,400 Speaker 5: can't against something you don't know about. Knowledge, skepticism. It's 537 00:25:04,440 --> 00:25:06,919 Speaker 5: doing the simple things we talk about all the time, strong, 538 00:25:07,000 --> 00:25:11,280 Speaker 5: unique passwords, multifacture, authentication. It's also doing things like freezing 539 00:25:11,320 --> 00:25:13,399 Speaker 5: your credit I'm sure you guys would agree. You know, 540 00:25:14,200 --> 00:25:19,520 Speaker 5: my frozen, Yeah, until I need to get credit. I 541 00:25:20,040 --> 00:25:22,199 Speaker 5: keep it frozen, I unlock it when I need it, 542 00:25:22,440 --> 00:25:23,320 Speaker 5: and I lock it back. 543 00:25:23,400 --> 00:25:25,920 Speaker 4: You know, it's not foolproof, but you know you're raising 544 00:25:26,000 --> 00:25:26,280 Speaker 4: the bar. 545 00:25:26,400 --> 00:25:28,720 Speaker 5: You're making yourself a much more difficult target for the 546 00:25:28,760 --> 00:25:31,919 Speaker 5: bad guys because in most of these cases, especially you know, 547 00:25:32,040 --> 00:25:36,800 Speaker 5: these targeting of elders, they're not specifically targeting individuals. They're 548 00:25:36,840 --> 00:25:39,600 Speaker 5: going for low hanging fruit. And if you take the 549 00:25:39,720 --> 00:25:43,240 Speaker 5: kind of advice we're giving out here, if you harden yourself, 550 00:25:43,320 --> 00:25:46,000 Speaker 5: if you do these basic practices, you're going to be 551 00:25:46,000 --> 00:25:47,280 Speaker 5: a much more difficult target. 552 00:25:47,320 --> 00:25:50,160 Speaker 4: They're just going to move on. And again the skepticism. 553 00:25:50,480 --> 00:25:52,879 Speaker 5: You know, I encourage any of your listeners pick up 554 00:25:52,920 --> 00:25:54,840 Speaker 5: the phone and try to call Microsoft or Google and 555 00:25:54,880 --> 00:25:58,520 Speaker 5: get help. And my point is they are not looking 556 00:25:58,560 --> 00:26:00,640 Speaker 5: at your computer and going, hey, I think you've got 557 00:26:00,640 --> 00:26:02,600 Speaker 5: a virus. I'm going to call you up today and 558 00:26:02,640 --> 00:26:05,080 Speaker 5: tell you let me help you remove this virus. 559 00:26:05,320 --> 00:26:06,520 Speaker 4: If you get a call. 560 00:26:06,400 --> 00:26:09,439 Speaker 5: An unsolicited call from a company that claims you have 561 00:26:09,520 --> 00:26:11,119 Speaker 5: some kind of virus and they want to help you, 562 00:26:12,040 --> 00:26:14,800 Speaker 5: the likelihood that that is not a scam is probably 563 00:26:14,800 --> 00:26:17,200 Speaker 5: greater than all three of us getting hit by a meteor. 564 00:26:17,359 --> 00:26:23,639 Speaker 5: Right now, it is a scam, right So again, vigilance, knowledge, skepticism, 565 00:26:24,280 --> 00:26:26,679 Speaker 5: And you know, when you look at the numbers, one 566 00:26:26,720 --> 00:26:28,919 Speaker 5: of these reports say there's eighty five trillion dollars in 567 00:26:29,000 --> 00:26:31,440 Speaker 5: wealth out there in the Baby Boom and Silent generation. 568 00:26:32,200 --> 00:26:35,000 Speaker 5: The bad guys know this, right, They know there's an 569 00:26:35,119 --> 00:26:37,720 Speaker 5: enormous amount of money. They know in a lot of cases, 570 00:26:38,359 --> 00:26:41,000 Speaker 5: older people may not even be aware that it's possible 571 00:26:41,040 --> 00:26:43,920 Speaker 5: to create a very you know, a perfect deep fake 572 00:26:44,080 --> 00:26:47,480 Speaker 5: audio or video and you know you guys mentioned there 573 00:26:47,600 --> 00:26:51,159 Speaker 5: is documented evidence already more in a corporate setting of 574 00:26:51,560 --> 00:26:54,760 Speaker 5: large scale fraud that's been perpetrated using deep fake voice 575 00:26:54,800 --> 00:26:55,800 Speaker 5: cloning and videos. 576 00:26:56,359 --> 00:26:57,560 Speaker 4: I encourage your folks. 577 00:26:57,320 --> 00:27:01,080 Speaker 5: Go look up the story about the Ferrari CFO who 578 00:27:01,200 --> 00:27:04,159 Speaker 5: got a nearly got deep fake voice cloned into fraud 579 00:27:04,480 --> 00:27:07,680 Speaker 5: from the so called Ferrari CEO. And these are people 580 00:27:07,680 --> 00:27:08,880 Speaker 5: that know each other personally. 581 00:27:09,080 --> 00:27:11,760 Speaker 3: This gave us a segment maybe for next week. 582 00:27:11,800 --> 00:27:13,080 Speaker 2: I'm in right that one now. 583 00:27:14,359 --> 00:27:17,359 Speaker 4: It's why I would think into it well documented. 584 00:27:17,600 --> 00:27:20,120 Speaker 1: Dave, I was going to ask about the whole phone 585 00:27:20,160 --> 00:27:21,920 Speaker 1: thing and voice cloning. 586 00:27:22,600 --> 00:27:23,880 Speaker 2: So I'll just ask it this way. 587 00:27:23,960 --> 00:27:26,320 Speaker 1: I mean, are we now at a point where it's 588 00:27:26,440 --> 00:27:29,159 Speaker 1: just because I know what I do? I never answer 589 00:27:29,280 --> 00:27:33,240 Speaker 1: my phone ever, ever, ever, unless I know who's calling me, 590 00:27:33,320 --> 00:27:35,240 Speaker 1: I just don't answer my phone. Are we at the 591 00:27:35,280 --> 00:27:39,880 Speaker 1: point now where our advice to folks, especially elderly and 592 00:27:39,960 --> 00:27:44,560 Speaker 1: maybe vulnerable folks, just give that blanket advice do not 593 00:27:44,800 --> 00:27:47,760 Speaker 1: answer your phone unless you know who it is. Are 594 00:27:47,840 --> 00:27:49,840 Speaker 1: we at that point? Is that the best way to 595 00:27:49,880 --> 00:27:50,600 Speaker 1: protect folks? 596 00:27:51,640 --> 00:27:52,000 Speaker 4: I think? 597 00:27:52,040 --> 00:27:54,439 Speaker 5: So I can tell you I do not ever answer 598 00:27:54,480 --> 00:27:56,840 Speaker 5: my phone from an number I don't recognize, and I'm 599 00:27:56,880 --> 00:27:59,560 Speaker 5: even sometimes skeptical if it is an umber, I do recognize, 600 00:27:59,560 --> 00:28:02,520 Speaker 5: because keep in mind, guys, spoofing wh's in my mind 601 00:28:02,600 --> 00:28:04,800 Speaker 5: is the biggest driver of all this, creating something that 602 00:28:04,840 --> 00:28:08,399 Speaker 5: looks realistic but isn't. It's fairly easy to do in 603 00:28:08,440 --> 00:28:12,280 Speaker 5: any digital mechanism. It's really easy to send a phone 604 00:28:12,320 --> 00:28:14,199 Speaker 5: call from any number you want if you know what 605 00:28:14,240 --> 00:28:16,280 Speaker 5: you're doing, and it does not require a lot of skills. 606 00:28:16,320 --> 00:28:18,199 Speaker 5: So you know, if I could find one of your 607 00:28:18,240 --> 00:28:20,280 Speaker 5: two cell phone numbers, or if I happen to have it, 608 00:28:20,480 --> 00:28:22,399 Speaker 5: I could easily spoof a call that would look like 609 00:28:22,400 --> 00:28:24,800 Speaker 5: it came from your cell phone. I could easily send 610 00:28:24,800 --> 00:28:26,600 Speaker 5: a text that looks like it comes from you. And 611 00:28:26,680 --> 00:28:31,040 Speaker 5: you know, same thing with emails. So skepticism, vigilance, don't 612 00:28:31,080 --> 00:28:33,640 Speaker 5: answer the phone if it's important. They'll leave a message, 613 00:28:33,840 --> 00:28:36,600 Speaker 5: or they'll contact you some other way. Go read what 614 00:28:36,640 --> 00:28:40,280 Speaker 5: the government says. You know, IRS, FBI. They are not 615 00:28:40,400 --> 00:28:43,200 Speaker 5: going to call you and tell you some terrible thing 616 00:28:43,280 --> 00:28:44,760 Speaker 5: is going to happen to you if you don't make 617 00:28:44,760 --> 00:28:47,080 Speaker 5: it in when a payment by five PM. They don't 618 00:28:47,120 --> 00:28:49,760 Speaker 5: operate that way, and they state that clearly on their 619 00:28:49,760 --> 00:28:53,120 Speaker 5: own websites. So again, there's tons of useful information out 620 00:28:53,160 --> 00:28:55,680 Speaker 5: there that can help people avoid these kind of scamps. 621 00:28:55,880 --> 00:28:58,240 Speaker 4: FTC dot gov, IC three dot gov. 622 00:28:58,960 --> 00:29:02,920 Speaker 5: But it all starts with skepticism and caution, like don't 623 00:29:02,960 --> 00:29:05,040 Speaker 5: answer your phone if you don't recognize the number. They'll 624 00:29:05,080 --> 00:29:07,280 Speaker 5: leave an assitude if they don't must not be important. 625 00:29:07,920 --> 00:29:09,920 Speaker 2: All right, good stuff as always, Dave. 626 00:29:10,080 --> 00:29:12,760 Speaker 1: You're listening to Simply Money presented by all Worth Financial 627 00:29:12,800 --> 00:29:20,640 Speaker 1: on fifty five KRC the talk station. You're listening to 628 00:29:20,640 --> 00:29:23,520 Speaker 1: Simply Money presented by all Worth Financial on Bob Sponseller 629 00:29:23,560 --> 00:29:26,400 Speaker 1: along with Brian James. Do you have a financial question 630 00:29:26,480 --> 00:29:28,520 Speaker 1: you'd like for us to answer. There's a red button 631 00:29:28,560 --> 00:29:30,840 Speaker 1: you can click while you're listening to the show right 632 00:29:30,960 --> 00:29:34,200 Speaker 1: on the iHeart app. Simply record your question and it 633 00:29:34,240 --> 00:29:35,760 Speaker 1: will come straight to us. 634 00:29:36,240 --> 00:29:37,240 Speaker 2: All right, Laura and. 635 00:29:37,360 --> 00:29:40,719 Speaker 1: Columbia Tusculum says, how much should we have in our 636 00:29:40,720 --> 00:29:44,200 Speaker 1: emergency fund when we aren't certain, when we are not 637 00:29:44,360 --> 00:29:47,200 Speaker 1: certain what our income will be from month to month. 638 00:29:47,280 --> 00:29:49,400 Speaker 1: This is a good question, Brian, Yeah. 639 00:29:49,240 --> 00:29:51,160 Speaker 3: This is a real good one. So you know when 640 00:29:51,200 --> 00:29:54,840 Speaker 3: your income can be variable, unpredictable, the emergency fund needs 641 00:29:54,880 --> 00:29:58,480 Speaker 3: to be designed around expense risk, not really income, right, 642 00:29:58,560 --> 00:30:00,719 Speaker 3: So figure out what you're spending and then calculated off 643 00:30:00,720 --> 00:30:04,040 Speaker 3: of that. The first thing, start with your core monthly expenses, 644 00:30:04,080 --> 00:30:06,400 Speaker 3: not lifestyle expenses. You know, what are the things you 645 00:30:06,520 --> 00:30:10,800 Speaker 3: have to do housing, utilities, food, transportation, health, insurance, any 646 00:30:10,840 --> 00:30:14,080 Speaker 3: minimum debt payments, and you might if taxes are a 647 00:30:14,120 --> 00:30:15,920 Speaker 3: bigger thing for you, then you might pay attention to 648 00:30:15,920 --> 00:30:18,880 Speaker 3: that as well. That is nondiscretionary. You don't have a choice. 649 00:30:18,880 --> 00:30:20,880 Speaker 3: You just got to pay it and smile. Then on 650 00:30:20,960 --> 00:30:25,720 Speaker 3: top of that layer those discretionary amounts, which again that's 651 00:30:25,760 --> 00:30:27,920 Speaker 3: not this is an emergency fund, so most likely you're 652 00:30:27,920 --> 00:30:30,520 Speaker 3: not going to be comfortable doing any of those discretionary things. 653 00:30:30,640 --> 00:30:32,880 Speaker 3: That doesn't mean don't budget for them in your emergency fund, 654 00:30:32,960 --> 00:30:34,880 Speaker 3: but don't go nuts. You don't need to try to 655 00:30:34,920 --> 00:30:38,520 Speaker 3: maintain every last bit of your of your lifestyle for 656 00:30:38,560 --> 00:30:40,160 Speaker 3: that time period. It may be a period of time 657 00:30:40,160 --> 00:30:42,240 Speaker 3: where the best thing you can do is kind of 658 00:30:42,240 --> 00:30:44,760 Speaker 3: pull in a little bit and spend a little bit less. 659 00:30:45,400 --> 00:30:48,600 Speaker 3: So just make sure you understand again it's about It's 660 00:30:48,640 --> 00:30:51,360 Speaker 3: about spending, not necessarily your income. The income piece of 661 00:30:51,400 --> 00:30:53,760 Speaker 3: this is just an easy way to calculate it. But 662 00:30:53,760 --> 00:30:56,600 Speaker 3: if you're worried you haven't bouncy income, like Laura has 663 00:30:56,640 --> 00:30:58,680 Speaker 3: described here, look at your expenses can be a little 664 00:30:58,720 --> 00:31:01,040 Speaker 3: easier to get a hold of. Ron and fort Wright. 665 00:31:01,120 --> 00:31:04,280 Speaker 3: Ron says his parents never planned for cognitive decline, and 666 00:31:04,320 --> 00:31:06,720 Speaker 3: now it's creating some problems, and he's wondering how to 667 00:31:06,760 --> 00:31:09,160 Speaker 3: protect their own finances if one of them is is 668 00:31:09,320 --> 00:31:11,480 Speaker 3: he's speaking of himself and his house if one of 669 00:31:11,480 --> 00:31:14,720 Speaker 3: them isn't able to manage things later on, Bob, all. 670 00:31:14,680 --> 00:31:17,320 Speaker 1: Right, hard to tell here, Ron, exactly what's going on. 671 00:31:17,400 --> 00:31:19,400 Speaker 1: So I'm gonna take I'm gonna give it my best shot. 672 00:31:19,480 --> 00:31:22,040 Speaker 1: You know, as far as your parents, if they're still living, 673 00:31:22,200 --> 00:31:27,200 Speaker 1: and depending on the the level of their cognitive decline, 674 00:31:27,200 --> 00:31:29,880 Speaker 1: there might still be a chance for them to maybe 675 00:31:29,920 --> 00:31:32,280 Speaker 1: sit with an attorney and get a financial power of 676 00:31:32,320 --> 00:31:35,520 Speaker 1: attorney in place to you know, protect you and your siblings. 677 00:31:35,680 --> 00:31:37,720 Speaker 1: You know, I would explore to see if that is 678 00:31:37,800 --> 00:31:40,960 Speaker 1: a legal option, but for you and your family, by 679 00:31:41,000 --> 00:31:44,520 Speaker 1: all means, get a financial power of attorney in place. 680 00:31:44,600 --> 00:31:49,360 Speaker 1: These are not expensive documents oftentimes in you know, Ohio 681 00:31:49,360 --> 00:31:53,920 Speaker 1: and Kentucky their borderline form documents. I still recommend, you know, 682 00:31:53,960 --> 00:31:56,400 Speaker 1: if you can get with a good attorney, sit down 683 00:31:56,520 --> 00:31:59,560 Speaker 1: and do that. It's not an expensive proposition to get done, 684 00:31:59,760 --> 00:32:03,240 Speaker 1: but it is critical because and I have lived through 685 00:32:03,280 --> 00:32:06,480 Speaker 1: this several times with clients, folks that I've known for 686 00:32:06,520 --> 00:32:10,640 Speaker 1: a long time. I can tell that the cognitive decline 687 00:32:10,680 --> 00:32:12,880 Speaker 1: is starting, and we've had to get into a couple 688 00:32:12,960 --> 00:32:16,120 Speaker 1: situations where you know, I've had to tell our staff 689 00:32:16,160 --> 00:32:17,760 Speaker 1: and just make a note in the file that we 690 00:32:17,920 --> 00:32:22,200 Speaker 1: just simply cannot take direction from these folks anymore when 691 00:32:22,200 --> 00:32:25,800 Speaker 1: they call in because they're not of sound mind. And 692 00:32:25,840 --> 00:32:29,840 Speaker 1: that's meant as a protective you know, device, so to speak, 693 00:32:29,880 --> 00:32:32,600 Speaker 1: to to keep them from making some big mistakes that 694 00:32:32,920 --> 00:32:36,120 Speaker 1: I won't even delve into the whole cyber crime stuff. 695 00:32:36,160 --> 00:32:40,160 Speaker 1: You got to protect their computer, people's computers, clicking on links, 696 00:32:40,200 --> 00:32:43,160 Speaker 1: all of that. But this financial power of Attorney is 697 00:32:43,560 --> 00:32:47,760 Speaker 1: a relatively simple document, but it is so critical to 698 00:32:47,840 --> 00:32:49,600 Speaker 1: have in place for everyone. 699 00:32:49,680 --> 00:32:52,160 Speaker 2: That's the best advice I could give. Ron. I hope, 700 00:32:52,200 --> 00:32:54,040 Speaker 2: I hope things work out well with you and your 701 00:32:54,040 --> 00:32:56,240 Speaker 2: parents all right. Time for one more. 702 00:32:56,360 --> 00:33:00,320 Speaker 1: Brian in Westchester says, I've always been the financial decision 703 00:33:00,360 --> 00:33:03,360 Speaker 1: maker and that worries me, how do I make sure 704 00:33:03,400 --> 00:33:07,120 Speaker 1: my spouse could step in tomorrow without being overwhelmed. 705 00:33:07,280 --> 00:33:09,280 Speaker 3: Yeah, this is a very very common problem, and I 706 00:33:09,280 --> 00:33:11,400 Speaker 3: would say it applies to every single marriage out there. 707 00:33:11,440 --> 00:33:13,760 Speaker 3: We've got two people. People tend to pick their duties 708 00:33:13,840 --> 00:33:16,440 Speaker 3: within a marriage, not very often at everybody on the 709 00:33:16,480 --> 00:33:19,800 Speaker 3: exact same page with absolutely everything, and that usually means 710 00:33:19,800 --> 00:33:22,440 Speaker 3: that one person knows where the financial skeletons are and 711 00:33:22,480 --> 00:33:24,480 Speaker 3: the other one has no idea. So first thing you 712 00:33:24,480 --> 00:33:26,480 Speaker 3: want to do, if you're concerned about this, reduce the 713 00:33:26,560 --> 00:33:30,880 Speaker 3: decisions before you transfer the knowledge. That means consolidating excess accounts. 714 00:33:30,880 --> 00:33:32,440 Speaker 3: If you've got that one account out there you open 715 00:33:32,480 --> 00:33:34,600 Speaker 3: fifteen years ago, you can't even remember why you did it, 716 00:33:34,840 --> 00:33:37,200 Speaker 3: Pour it into something else. Reduce the number of places 717 00:33:37,200 --> 00:33:40,360 Speaker 3: that your spouse will have to look, and also eliminating 718 00:33:40,440 --> 00:33:44,040 Speaker 3: unnecessary strategies that require ongoing judgment calls. Some people are 719 00:33:44,120 --> 00:33:46,760 Speaker 3: very active in markets or with businesses, things like that. 720 00:33:47,400 --> 00:33:49,959 Speaker 3: If you're not, if you are suddenly unable to make 721 00:33:50,000 --> 00:33:51,880 Speaker 3: those decisions, your spouse is going to have to figure 722 00:33:51,880 --> 00:33:53,720 Speaker 3: that out. You might want to make sure that stuff 723 00:33:53,760 --> 00:33:56,400 Speaker 3: is really really worth it. Try to automate bill, pay 724 00:33:56,440 --> 00:33:59,600 Speaker 3: taxes and any contributions where at all possible, and maybe 725 00:33:59,640 --> 00:34:02,120 Speaker 3: put together yeather a one page financial map that shows 726 00:34:02,120 --> 00:34:05,080 Speaker 3: where all your accounts, institutions and the access methods are, 727 00:34:05,080 --> 00:34:08,239 Speaker 3: how do you get to it, insurance policies. More importantly, 728 00:34:08,640 --> 00:34:10,840 Speaker 3: who are the different firms that you work with and 729 00:34:10,880 --> 00:34:13,560 Speaker 3: those professionals that work there, What are the sources of 730 00:34:13,640 --> 00:34:16,080 Speaker 3: cash flow in those kinds of things. So again, I 731 00:34:16,120 --> 00:34:18,800 Speaker 3: think it's really just a conversation of here's where everything 732 00:34:18,920 --> 00:34:20,719 Speaker 3: is and here's how you get to it. Maybe do 733 00:34:20,760 --> 00:34:22,680 Speaker 3: it once a year, right around your anniversary. I think 734 00:34:22,719 --> 00:34:24,640 Speaker 3: can be a good time to kind of update your 735 00:34:24,640 --> 00:34:25,479 Speaker 3: spouse in those things. 736 00:34:26,200 --> 00:34:29,000 Speaker 1: Coming up next, Brian has his bottom line, which is 737 00:34:29,040 --> 00:34:32,759 Speaker 1: some fantastic estate planning advice. You're listening to Simply Money 738 00:34:32,760 --> 00:34:35,759 Speaker 1: presented by all Worth Financial on fifty five KRC the 739 00:34:36,040 --> 00:34:42,680 Speaker 1: talk station. You're listening to Simply Money presented by all 740 00:34:42,680 --> 00:34:46,399 Speaker 1: Worth Financial on Bob Sponsorller along with Brian James, and 741 00:34:46,560 --> 00:34:50,680 Speaker 1: Brian's got some bottom line advice tonight on estate planning. 742 00:34:51,600 --> 00:34:53,839 Speaker 3: Well, Bob, a lot of people say, my estate plan 743 00:34:53,960 --> 00:34:56,879 Speaker 3: is fine, my wishes have been changed from thirty years ago. 744 00:34:57,080 --> 00:34:59,799 Speaker 3: But the thing is estate planning documents don't fail because 745 00:34:59,840 --> 00:35:03,439 Speaker 3: you're wishes changed. They failed because the world changed around them. 746 00:35:04,320 --> 00:35:07,279 Speaker 3: So what's the first reason here, Well, old documents can 747 00:35:07,360 --> 00:35:10,840 Speaker 3: become legally obsolete. So you know, laws governing powers of attorney, trusts, 748 00:35:10,840 --> 00:35:14,000 Speaker 3: and probates, those things evolve regularly. They for example, they 749 00:35:14,040 --> 00:35:16,640 Speaker 3: may not allow real estate transactions because it wasn't a 750 00:35:16,640 --> 00:35:18,400 Speaker 3: thing when the first thing when it was first written up. 751 00:35:18,400 --> 00:35:21,200 Speaker 3: It may not permit gifting or tax planning, or it 752 00:35:21,239 --> 00:35:25,120 Speaker 3: may sometimes they can outright prevent things that you absolutely 753 00:35:25,120 --> 00:35:27,200 Speaker 3: have every right it should do based on the way 754 00:35:27,239 --> 00:35:30,760 Speaker 3: tax laws have changed. Sometimes banks will reject them based 755 00:35:30,800 --> 00:35:34,320 Speaker 3: on outdated language. So you know, even in a trust space, 756 00:35:34,560 --> 00:35:37,959 Speaker 3: you know, trust can miss opportunities. They can create unnecessary 757 00:35:37,960 --> 00:35:40,520 Speaker 3: complexity that maybe it doesn't matter anymore, or fail to 758 00:35:40,520 --> 00:35:44,040 Speaker 3: protect surviving spouses or beneficiaries as needed. You know, in 759 00:35:44,040 --> 00:35:47,160 Speaker 3: some of these you know another example, you know, we're 760 00:35:47,200 --> 00:35:50,840 Speaker 3: financial institutions rejecting these old documents. Here's an example. Kentucky 761 00:35:50,840 --> 00:35:53,719 Speaker 3: couple had solid, solid estate documents they had written up 762 00:35:53,760 --> 00:35:56,800 Speaker 3: in the nineties. Husbands suffered a stroke, and three separate 763 00:35:56,800 --> 00:35:59,799 Speaker 3: institutions rejected that power of attorney not because it was 764 00:35:59,840 --> 00:36:01,920 Speaker 3: in valid, but because it was just too old and 765 00:36:02,000 --> 00:36:05,239 Speaker 3: didn't meet these modern compliance standards that the lawyers would 766 00:36:05,239 --> 00:36:07,360 Speaker 3: want to see. So the outcome of this, while bills 767 00:36:07,360 --> 00:36:10,799 Speaker 3: get delayed, accounts get frozen, the surviving spouse can't where 768 00:36:10,840 --> 00:36:13,600 Speaker 3: the healthy spouse cannot access those dollars, and it required 769 00:36:13,640 --> 00:36:16,719 Speaker 3: court involvement, which equals money in time. Then that was 770 00:36:16,760 --> 00:36:18,600 Speaker 3: the whole point of the power of attorney. It was 771 00:36:18,640 --> 00:36:21,440 Speaker 3: supposed to not involve any of that so that that 772 00:36:21,520 --> 00:36:24,000 Speaker 3: spouse could move on and move on with her life. 773 00:36:24,560 --> 00:36:27,480 Speaker 3: Here's a big one, Bob. Digital assets. This is a 774 00:36:27,520 --> 00:36:29,720 Speaker 3: thing that we definitely weren't thinking about in the nineties 775 00:36:29,760 --> 00:36:32,480 Speaker 3: and maybe even early two thousands. The law literally wasn't there, 776 00:36:32,840 --> 00:36:34,560 Speaker 3: but all three states within our listening. 777 00:36:34,680 --> 00:36:37,040 Speaker 2: Grandpa didn't plan for cryptocurrency. 778 00:36:37,200 --> 00:36:40,200 Speaker 3: Yeah, Grandpa didn't. Didn't pass on his dropbox password for 779 00:36:40,280 --> 00:36:42,480 Speaker 3: all of his documents, so nobody knows where that is. 780 00:36:43,040 --> 00:36:45,400 Speaker 3: But now there are laws in place that govern this. 781 00:36:45,480 --> 00:36:48,600 Speaker 3: So Ohio, Kentucky, and Indiana follow various versions of the 782 00:36:48,719 --> 00:36:52,840 Speaker 3: Revised Uniform Fiduciary Access to Digital Assets Act. What it 783 00:36:52,920 --> 00:36:55,759 Speaker 3: means is that without some of this updated language to 784 00:36:55,760 --> 00:36:59,040 Speaker 3: reflect it, the executors can't get to your email, photos 785 00:36:59,040 --> 00:37:01,759 Speaker 3: could be lost online, and financial accounts can stay locked up. 786 00:37:02,320 --> 00:37:04,439 Speaker 3: We found one story of an Indiana family who spent 787 00:37:04,560 --> 00:37:08,360 Speaker 3: months trying to access their deceased parents' email and online accounts, 788 00:37:08,360 --> 00:37:10,760 Speaker 3: only to be told that the estate documents were completely 789 00:37:10,800 --> 00:37:14,000 Speaker 3: silent on it. The assets were there to be dealt with, 790 00:37:14,000 --> 00:37:16,120 Speaker 3: but the authority wasn't, so they just were never able 791 00:37:16,160 --> 00:37:18,160 Speaker 3: to get to those things. So make sure that if 792 00:37:18,200 --> 00:37:21,520 Speaker 3: your state plan, if it predates smartphones, then it almost 793 00:37:21,520 --> 00:37:24,200 Speaker 3: certainly predates this digital asset law, so you might want 794 00:37:24,239 --> 00:37:26,520 Speaker 3: to take a look at it for those reasons. One more, 795 00:37:26,960 --> 00:37:29,960 Speaker 3: family roles change even when your wishes don't, and this 796 00:37:29,960 --> 00:37:33,080 Speaker 3: one can can get a bit emotional. So here's an example. 797 00:37:33,280 --> 00:37:35,759 Speaker 3: A trust named two siblings as co trustees. This was 798 00:37:35,800 --> 00:37:37,919 Speaker 3: written twenty five years ago. We were all different people 799 00:37:37,920 --> 00:37:40,960 Speaker 3: when we were twenty five years younger. Nowadays one lives 800 00:37:41,000 --> 00:37:42,960 Speaker 3: out of state, the other one's got health problems, and 801 00:37:43,000 --> 00:37:47,520 Speaker 3: really neither can realistically manage this role alone. The beneficiaries change, 802 00:37:47,640 --> 00:37:51,680 Speaker 3: but the executioner didn't change, but the execution problems certainly did. 803 00:37:51,960 --> 00:37:53,719 Speaker 3: So make sure that the people who are going to 804 00:37:53,719 --> 00:37:56,040 Speaker 3: be pulling the strings and making the decisions for you 805 00:37:56,280 --> 00:37:58,600 Speaker 3: are capable of doing so. They may have been twenty 806 00:37:58,600 --> 00:38:01,200 Speaker 3: five years ago, but it's possible that they no longer can. 807 00:38:02,480 --> 00:38:03,160 Speaker 2: Great advice. 808 00:38:03,200 --> 00:38:05,960 Speaker 1: A lot to consider there, and yet another reason to 809 00:38:06,160 --> 00:38:09,439 Speaker 1: find yourself a good estate planning attorney to just sit 810 00:38:09,520 --> 00:38:11,600 Speaker 1: down and make sure this stuff is all up to date. 811 00:38:11,880 --> 00:38:12,960 Speaker 2: Thanks for listening tonight. 812 00:38:13,000 --> 00:38:15,479 Speaker 1: You've been listening to Simply Money, presented by all Worth 813 00:38:15,480 --> 00:38:18,439 Speaker 1: Financial on fifty five KRC, the talk station