1 00:00:06,960 --> 00:00:10,760 Speaker 1: Tonight a simple phrase that could be the difference between 2 00:00:10,840 --> 00:00:15,319 Speaker 1: financial freedom and financial struggle. You're listening to simply Money, 3 00:00:15,320 --> 00:00:18,080 Speaker 1: presented by all Worth Financial on Bob's spondseller along with 4 00:00:18,079 --> 00:00:23,160 Speaker 1: Brian James. What is that simple phrase? The sooner the better? 5 00:00:23,600 --> 00:00:26,840 Speaker 1: And tonight we have some new data that explains all 6 00:00:26,840 --> 00:00:29,480 Speaker 1: of this. It all centers around the group of people 7 00:00:29,600 --> 00:00:32,920 Speaker 1: who are in the on deck circle Brian for retirement, 8 00:00:33,600 --> 00:00:35,560 Speaker 1: the gen X group. 9 00:00:37,040 --> 00:00:39,800 Speaker 2: That's my group, Bob, So let's talk about the problem 10 00:00:39,840 --> 00:00:41,320 Speaker 2: that my generation has here. 11 00:00:41,400 --> 00:00:44,400 Speaker 1: So talk about all the dysfunction going on with your group. 12 00:00:45,920 --> 00:00:50,280 Speaker 2: Yeah, well, I don't think it's quite fair to label 13 00:00:50,360 --> 00:00:53,800 Speaker 2: everybody with a generational label and say that everybody's a mess. 14 00:00:53,800 --> 00:00:56,200 Speaker 2: But here are the common problems that are coming up 15 00:00:56,200 --> 00:00:57,880 Speaker 2: with with with this generation. By the way, this is 16 00:00:57,920 --> 00:01:00,160 Speaker 2: a generation we really never talk about because we're one 17 00:01:00,200 --> 00:01:02,720 Speaker 2: of the smallest generations there are. I read a study 18 00:01:02,760 --> 00:01:05,679 Speaker 2: a long time ago that said that basically looked at 19 00:01:06,040 --> 00:01:09,039 Speaker 2: over all the generations and when people are born and 20 00:01:09,080 --> 00:01:11,280 Speaker 2: all that kind of stuff, and therefore how long do 21 00:01:11,360 --> 00:01:14,040 Speaker 2: they have to be in control in terms of when 22 00:01:14,080 --> 00:01:16,680 Speaker 2: that generation would take control of Congress, that kind of thing, 23 00:01:16,720 --> 00:01:19,199 Speaker 2: and it was literally like an eighteen month period before 24 00:01:19,760 --> 00:01:23,040 Speaker 2: with gen X is quickly overwhelmed by this ensuing generations. 25 00:01:23,080 --> 00:01:25,640 Speaker 2: But we'll have our moment in the sun anyway. So 26 00:01:26,120 --> 00:01:28,319 Speaker 2: we were talking about gen X today because this is 27 00:01:28,360 --> 00:01:31,080 Speaker 2: the first generation that's going to be funding retirement largely 28 00:01:31,120 --> 00:01:32,920 Speaker 2: without private pension plans. 29 00:01:32,959 --> 00:01:35,320 Speaker 3: So those are and I think of myself there. 30 00:01:36,000 --> 00:01:38,399 Speaker 2: My wife and I are somewhat fortunate to have old 31 00:01:38,440 --> 00:01:41,039 Speaker 2: pensions from old jobs from million years ago, but not anymore. 32 00:01:41,520 --> 00:01:45,640 Speaker 2: But I do remember vividly my grandpa who worked He 33 00:01:45,680 --> 00:01:48,480 Speaker 2: was a facilities maintenance guy for what was then CG 34 00:01:48,640 --> 00:01:51,120 Speaker 2: and E now then Synergy and now Duke Energy. 35 00:01:51,160 --> 00:01:52,560 Speaker 1: But we would. 36 00:01:52,280 --> 00:01:55,000 Speaker 2: Fight as cousins to mark off the red xes on 37 00:01:55,080 --> 00:01:58,280 Speaker 2: his calendar, which were the day that he had his 38 00:01:58,360 --> 00:02:01,120 Speaker 2: thirty years of time in and was sixty five. I 39 00:02:01,120 --> 00:02:03,640 Speaker 2: think is how it worked. But anyway, that that kind 40 00:02:03,720 --> 00:02:08,040 Speaker 2: of countdown doesn't really exist for gen X because there 41 00:02:08,360 --> 00:02:10,720 Speaker 2: isn't really a clock unless you've built your own. Not 42 00:02:10,760 --> 00:02:13,120 Speaker 2: everybody has the same, you know, without a private pension plan, 43 00:02:13,520 --> 00:02:16,520 Speaker 2: it's basically whatever you've put together on your own. And 44 00:02:16,600 --> 00:02:18,959 Speaker 2: that's exactly what this generation is going through. And is 45 00:02:19,360 --> 00:02:21,799 Speaker 2: that with that as the measuring stick, you know, not 46 00:02:21,840 --> 00:02:24,480 Speaker 2: so good here. Gen X workers on average have saved 47 00:02:24,480 --> 00:02:26,800 Speaker 2: about a median of about one hundred and seven thousand 48 00:02:26,800 --> 00:02:30,760 Speaker 2: dollars in total household retirement accounts and sixty five hundred 49 00:02:30,800 --> 00:02:34,080 Speaker 2: dollars in emergency savings. This is coming from the nonprofit 50 00:02:34,120 --> 00:02:37,440 Speaker 2: trans America Center for Retirement Studies in collaboration with trans 51 00:02:37,480 --> 00:02:40,760 Speaker 2: America Institute, Big insurance company out there, a total of 52 00:02:40,840 --> 00:02:43,880 Speaker 2: two and ten have already or twenty percent have already 53 00:02:43,960 --> 00:02:47,200 Speaker 2: dipped into their retirement savings by taking a hardship withdrawal 54 00:02:47,280 --> 00:02:48,959 Speaker 2: or in early withdrawal. And these are people who the 55 00:02:49,240 --> 00:02:52,240 Speaker 2: oldest among us was born in nineteen sixty five. So 56 00:02:52,360 --> 00:02:54,799 Speaker 2: we're on the very very early edge of retirement here 57 00:02:54,800 --> 00:02:58,359 Speaker 2: and already dipping into retirement savings. That retirement balance compares 58 00:02:58,400 --> 00:03:01,120 Speaker 2: with you know, the estimated one and a quarter million 59 00:03:01,160 --> 00:03:04,000 Speaker 2: dollars that Americans generally think they need to retire comforty. 60 00:03:04,040 --> 00:03:07,000 Speaker 2: That one comes from Northwestern Mutual. So gen X maybe 61 00:03:07,240 --> 00:03:11,040 Speaker 2: has a bit of a tough hill to climb here, Bob, Well, let's. 62 00:03:10,800 --> 00:03:13,520 Speaker 1: Get into why this is happening. And I always hate, 63 00:03:13,560 --> 00:03:16,000 Speaker 1: as you know, Brian, to paint with a broad brush 64 00:03:16,120 --> 00:03:19,440 Speaker 1: take a whole generation of folks and take the mean 65 00:03:19,639 --> 00:03:23,720 Speaker 1: or average numbers, and you know it's not always representative 66 00:03:23,760 --> 00:03:27,680 Speaker 1: of exactly everything that's going on here. But in reality, 67 00:03:27,760 --> 00:03:31,440 Speaker 1: let's talk about what this generation of folks has had 68 00:03:31,480 --> 00:03:35,360 Speaker 1: to endure. From an economic standpoint and just from a 69 00:03:35,480 --> 00:03:40,000 Speaker 1: family dynamics standpoint. Many members of Gen X graduated college 70 00:03:40,080 --> 00:03:42,440 Speaker 1: or high school during a recession. They got their first 71 00:03:42,560 --> 00:03:46,360 Speaker 1: jobs when four oh one k's were in their infancy, 72 00:03:46,960 --> 00:03:50,400 Speaker 1: you know, pre hating the Internet and lacking the educational 73 00:03:50,720 --> 00:03:54,560 Speaker 1: resources that at least some or maybe even many plans 74 00:03:54,600 --> 00:03:59,000 Speaker 1: offer today. And let's face it, from an investor confidence standpoint, 75 00:03:59,360 --> 00:04:02,240 Speaker 1: the Gen X generation, well, they had to endure the 76 00:04:02,280 --> 00:04:06,840 Speaker 1: dot com bust, the Great Recession, and the COVID pandemic. 77 00:04:06,960 --> 00:04:11,000 Speaker 1: Those are three really big gut punches, and that all 78 00:04:11,120 --> 00:04:15,120 Speaker 1: takes big swipes it what I'll call investor confidence. I mean, shoot, 79 00:04:15,120 --> 00:04:18,239 Speaker 1: when you see, you know, the market go down fifty 80 00:04:18,279 --> 00:04:22,840 Speaker 1: five sixty percent in very short order more than once, 81 00:04:23,279 --> 00:04:25,200 Speaker 1: you know over a decade, that's going to make you 82 00:04:25,240 --> 00:04:27,359 Speaker 1: scratch your head and say, wow, is it? Does this 83 00:04:27,480 --> 00:04:30,440 Speaker 1: really still work? Brian, and I think as a result, 84 00:04:31,440 --> 00:04:34,560 Speaker 1: auto enrollment in four oh, one k's maybe declined a 85 00:04:34,640 --> 00:04:38,560 Speaker 1: little bit. The auto escalation features of savings in those 86 00:04:38,560 --> 00:04:43,320 Speaker 1: four to one k's declined, you know, tack on high 87 00:04:43,400 --> 00:04:46,880 Speaker 1: student loan debt in some cases. And then you know, 88 00:04:47,000 --> 00:04:49,760 Speaker 1: a lot of these folks and and you you live 89 00:04:49,839 --> 00:04:52,479 Speaker 1: through this, and I know our clients, do you know 90 00:04:52,560 --> 00:04:56,599 Speaker 1: the Generation X folks are literally living in that sandwich 91 00:04:56,680 --> 00:05:01,040 Speaker 1: generation where they're trying to support their own live, their 92 00:05:01,160 --> 00:05:05,040 Speaker 1: kids and sometimes their parents and other loved ones. It's 93 00:05:05,080 --> 00:05:09,039 Speaker 1: a lot of stuff to take on, both emotionally and financially. 94 00:05:09,800 --> 00:05:13,640 Speaker 2: Yeah, And I think all the generations have different experiences 95 00:05:13,640 --> 00:05:15,320 Speaker 2: for what they go through and for the things that 96 00:05:15,360 --> 00:05:18,679 Speaker 2: they point to as the formative experiences of their lives. 97 00:05:18,920 --> 00:05:20,440 Speaker 3: And a lot of times that's in conflict. 98 00:05:20,600 --> 00:05:23,280 Speaker 2: And I think really the conflict that Gen X has 99 00:05:23,720 --> 00:05:28,320 Speaker 2: between that and the prior generation comes from the i'd 100 00:05:28,360 --> 00:05:30,240 Speaker 2: say the eighties and the nineties, right, So we had 101 00:05:30,560 --> 00:05:32,760 Speaker 2: the nineteen seventies where we had stagflation, we had a 102 00:05:32,839 --> 00:05:36,320 Speaker 2: rough economy there obviously one of the rougher periods economically speaking, 103 00:05:36,640 --> 00:05:38,520 Speaker 2: and that was the formative time. That's when the Baby 104 00:05:38,520 --> 00:05:41,560 Speaker 2: Boom generation was starting to make its own. But then 105 00:05:41,880 --> 00:05:44,400 Speaker 2: the pendul swung back the other way, and we had 106 00:05:44,400 --> 00:05:46,520 Speaker 2: the eighties and the nineties where really nothing bad happened, 107 00:05:46,520 --> 00:05:48,880 Speaker 2: and that was the beginning of the really what has 108 00:05:48,920 --> 00:05:51,279 Speaker 2: become the technology boom over the past several decades. 109 00:05:51,600 --> 00:05:53,200 Speaker 3: So I think we had a. 110 00:05:52,960 --> 00:05:56,240 Speaker 2: One generation and the Baby Boomers that feels like that 111 00:05:56,600 --> 00:05:58,760 Speaker 2: did pay their dues in the seventies and were rewarded 112 00:05:58,800 --> 00:06:01,920 Speaker 2: with the eighties and the nineties, and Generation X is 113 00:06:01,960 --> 00:06:03,960 Speaker 2: looking at that and going, yeah, we've had twenty years 114 00:06:03,960 --> 00:06:07,720 Speaker 2: worth of chaos with the payoff periods have come with 115 00:06:08,279 --> 00:06:11,240 Speaker 2: massive market upswings, but only three four years at a 116 00:06:11,240 --> 00:06:14,560 Speaker 2: time before chaos ensues versus the straight twenty years of 117 00:06:14,600 --> 00:06:15,760 Speaker 2: really nothing scary happen. 118 00:06:15,960 --> 00:06:17,239 Speaker 3: And that's nobody's fault. 119 00:06:17,240 --> 00:06:19,880 Speaker 2: That's just how it works, and that's everybody's perspective in 120 00:06:19,960 --> 00:06:22,080 Speaker 2: terms of how they see it. And every generation likes 121 00:06:22,080 --> 00:06:23,800 Speaker 2: to think it's the one suffering the most. I think 122 00:06:23,839 --> 00:06:26,560 Speaker 2: every single generation out there, with the exception of maybe 123 00:06:26,560 --> 00:06:30,560 Speaker 2: the Silent generation, which is aptly named, has opinions on that. 124 00:06:30,600 --> 00:06:33,039 Speaker 3: So but any case, yeah, I mean, everybody. 125 00:06:33,279 --> 00:06:35,360 Speaker 1: Are you are you gonna be one of those Gen 126 00:06:35,600 --> 00:06:38,480 Speaker 1: xers that sit down with your kids and talk about 127 00:06:38,520 --> 00:06:41,120 Speaker 1: the woe is me? I had to walk uphill both 128 00:06:41,160 --> 00:06:43,440 Speaker 1: ways to school, three miles in the snow. Are you 129 00:06:43,440 --> 00:06:47,560 Speaker 1: gonna be one of those old curmudgeon folks blaming all 130 00:06:47,600 --> 00:06:49,760 Speaker 1: of your ills on someone else or the weather. 131 00:06:50,920 --> 00:06:53,800 Speaker 2: I don't think so, but I guess what remains to 132 00:06:53,839 --> 00:06:55,880 Speaker 2: be seen. Maybe that'll happen, depends on the mood I'm 133 00:06:55,920 --> 00:06:57,640 Speaker 2: in that day that that conversation comes up. 134 00:06:57,920 --> 00:07:00,440 Speaker 1: I don't know, all right, in this in this spirit 135 00:07:00,560 --> 00:07:03,520 Speaker 1: of controlling what we can control, and that's all we 136 00:07:03,560 --> 00:07:06,800 Speaker 1: can do is control what we can control. What are 137 00:07:06,800 --> 00:07:09,160 Speaker 1: the what are some of the things that we need 138 00:07:09,200 --> 00:07:13,040 Speaker 1: to talk to folks of any generation, including generation X, 139 00:07:13,440 --> 00:07:16,600 Speaker 1: on how to take ownership of your own retirement situation 140 00:07:17,280 --> 00:07:20,320 Speaker 1: and you know, get the trains back on the proverbial 141 00:07:20,400 --> 00:07:22,520 Speaker 1: tracks here and move us forward. 142 00:07:23,440 --> 00:07:24,840 Speaker 3: Well, I think it's just like anything else. 143 00:07:24,840 --> 00:07:27,120 Speaker 2: I mean, like you said, controlling what you can control, 144 00:07:27,160 --> 00:07:30,200 Speaker 2: and that that's true for absolutely anybody of any gender 145 00:07:30,240 --> 00:07:34,320 Speaker 2: gen That's generationally irrelevant because everybody has their own situation 146 00:07:34,440 --> 00:07:36,160 Speaker 2: to deal with. If you've got your own resources, your 147 00:07:36,200 --> 00:07:40,040 Speaker 2: own goals, and it simply means, Matt, understand what you are, 148 00:07:40,200 --> 00:07:43,040 Speaker 2: what you have available to and what you're trying to accomplish, 149 00:07:43,320 --> 00:07:45,880 Speaker 2: and that's all financial planning, right, So so step back 150 00:07:45,920 --> 00:07:48,480 Speaker 2: and understand, you know, what are my limitations, what are 151 00:07:48,520 --> 00:07:51,240 Speaker 2: my opportunities, my strengths, weaknesses, and so forth, and then 152 00:07:51,280 --> 00:07:53,160 Speaker 2: build some kind of financial plan out of that and 153 00:07:53,200 --> 00:07:56,200 Speaker 2: then operate accordingly. And the thing we shouldn't be doing 154 00:07:56,360 --> 00:07:59,280 Speaker 2: is trying to, uh, you know, follow some kind of 155 00:07:59,840 --> 00:08:02,520 Speaker 2: uh you know, a blueprint that somebody else has written 156 00:08:02,600 --> 00:08:03,760 Speaker 2: up for everybody to go do. 157 00:08:03,840 --> 00:08:04,680 Speaker 3: It doesn't work that way. 158 00:08:04,720 --> 00:08:06,840 Speaker 2: You have to understand your own situation, which is going 159 00:08:06,920 --> 00:08:09,360 Speaker 2: to be very different from that of other family members, neighbors, 160 00:08:09,360 --> 00:08:14,120 Speaker 2: and so forth, and then operate accordingly within those those limitations. 161 00:08:14,600 --> 00:08:17,600 Speaker 1: So if you do sit down with a good fiduciary advisor, 162 00:08:17,640 --> 00:08:21,040 Speaker 1: which Brian and I highly recommend, and take you do 163 00:08:21,120 --> 00:08:23,800 Speaker 1: an assessment of where things are today. I mean, let's 164 00:08:23,840 --> 00:08:27,200 Speaker 1: face it, you really only have three levers to pull 165 00:08:27,240 --> 00:08:29,320 Speaker 1: at the end of the day. You can save more, 166 00:08:30,000 --> 00:08:33,560 Speaker 1: you can spend less, or you can work more years 167 00:08:33,840 --> 00:08:36,360 Speaker 1: or a combination of all three. And that's where we 168 00:08:36,400 --> 00:08:39,040 Speaker 1: get into some of the planning and when people actually 169 00:08:39,080 --> 00:08:42,800 Speaker 1: see some numbers and how pulling those different levers can 170 00:08:42,920 --> 00:08:45,840 Speaker 1: really move the needle in a hurry. That at least 171 00:08:45,840 --> 00:08:48,679 Speaker 1: gives people a track to run on, and oftentimes, Brian 172 00:08:48,760 --> 00:08:51,959 Speaker 1: gives them a lot more confidence instead of just flying 173 00:08:52,120 --> 00:08:55,280 Speaker 1: blind and hoping it all works out. And for folks 174 00:08:55,320 --> 00:08:58,320 Speaker 1: that are in their fifties, man, this is prime catchup time. 175 00:08:58,760 --> 00:09:00,760 Speaker 1: You know, to the extent you can handle it from 176 00:09:00,800 --> 00:09:04,679 Speaker 1: a cash flow standpoint, make those extra contributions, revisit your 177 00:09:04,720 --> 00:09:08,920 Speaker 1: acid allocation, Maybe take on a little bit more investment 178 00:09:09,000 --> 00:09:11,000 Speaker 1: risk to get a little more growth or juice in 179 00:09:11,040 --> 00:09:15,840 Speaker 1: your portfolio if your time horizon allows for that. Brian 180 00:09:15,960 --> 00:09:19,480 Speaker 1: talk about for folks in their sixties, a lot of 181 00:09:19,480 --> 00:09:21,640 Speaker 1: these folks are wanting to retire in the next five 182 00:09:21,720 --> 00:09:23,800 Speaker 1: years or so. What are some things those folks can 183 00:09:23,840 --> 00:09:24,760 Speaker 1: be doing well. 184 00:09:24,800 --> 00:09:26,880 Speaker 3: This is the leading edge of gen X here. 185 00:09:26,920 --> 00:09:28,480 Speaker 2: So now it's time to start thinking about how are 186 00:09:28,480 --> 00:09:31,520 Speaker 2: you going to optimize your social security timing? You know, 187 00:09:31,520 --> 00:09:34,120 Speaker 2: if you're if you're there's not there's there. There aren't 188 00:09:34,120 --> 00:09:36,120 Speaker 2: as many levers to pull here as there used to be. Right, 189 00:09:36,120 --> 00:09:39,160 Speaker 2: we're not talking about tricks anymore, about file and suspend 190 00:09:39,200 --> 00:09:39,600 Speaker 2: and all that. 191 00:09:39,600 --> 00:09:41,840 Speaker 3: That's that's been gone for ten years. But that doesn't 192 00:09:41,840 --> 00:09:42,480 Speaker 3: mean there aren't. 193 00:09:42,280 --> 00:09:44,080 Speaker 2: Decisions to be made when you're What you're trying to 194 00:09:44,120 --> 00:09:48,720 Speaker 2: do is optimize social security timing alongside withdrawals from your 195 00:09:48,760 --> 00:09:52,720 Speaker 2: investments from your portfolio, because in a given situation, it 196 00:09:52,720 --> 00:09:55,400 Speaker 2: may make sense to turn on social security early in retirement, 197 00:09:55,440 --> 00:09:57,240 Speaker 2: it may make sense to push it. And that has 198 00:09:57,280 --> 00:09:59,640 Speaker 2: everything to do with the taxation of the of the 199 00:09:59,679 --> 00:10:02,560 Speaker 2: other assets you have if everything you have is pre 200 00:10:02,679 --> 00:10:04,839 Speaker 2: tax because that's just where you set up your four 201 00:10:04,960 --> 00:10:07,679 Speaker 2: one K, that's where your retirement savings are. That itself 202 00:10:07,760 --> 00:10:10,360 Speaker 2: is the pivot point between when you should whether you're 203 00:10:10,360 --> 00:10:13,760 Speaker 2: gonna file for SoC security earlier versus later, versus if 204 00:10:13,800 --> 00:10:15,679 Speaker 2: you maybe if you focus more on the wroth you've 205 00:10:15,679 --> 00:10:19,160 Speaker 2: got tax free assets, or if you have assets outside 206 00:10:19,240 --> 00:10:22,679 Speaker 2: of retirement plans entirely in taxable type of accounts, then 207 00:10:22,760 --> 00:10:25,320 Speaker 2: that will push the that could push the social security 208 00:10:25,360 --> 00:10:27,960 Speaker 2: pens in one one direction versus the other. So we 209 00:10:28,000 --> 00:10:30,120 Speaker 2: do see all the time we have people who have 210 00:10:30,240 --> 00:10:34,120 Speaker 2: this who feel like they're behind and they leave after 211 00:10:34,120 --> 00:10:36,920 Speaker 2: having done a financial plan, you know, realizing they're actually 212 00:10:36,960 --> 00:10:37,600 Speaker 2: in a good spot. 213 00:10:37,640 --> 00:10:39,720 Speaker 3: So give yourself a chance. If you're listening to this 214 00:10:39,840 --> 00:10:40,720 Speaker 3: show and. 215 00:10:40,640 --> 00:10:44,240 Speaker 2: You're aware of all worth or or other financial education 216 00:10:44,360 --> 00:10:47,000 Speaker 2: resources out there. You're probably in better shape than you 217 00:10:47,040 --> 00:10:49,839 Speaker 2: already have. So give yourself a break. People who have 218 00:10:49,880 --> 00:10:52,080 Speaker 2: been seeking out that kind of information for a long 219 00:10:52,120 --> 00:10:54,440 Speaker 2: time usually have put themselves in a good place. They've 220 00:10:54,440 --> 00:10:56,560 Speaker 2: just never stepped back to look at the the you know, 221 00:10:56,640 --> 00:10:58,360 Speaker 2: forest instead of the individual trees. 222 00:10:59,559 --> 00:11:02,199 Speaker 1: Yeah, and speaking of giving yourself a break, I mean, 223 00:11:02,200 --> 00:11:04,000 Speaker 1: this is a good time, you know, to throw out 224 00:11:04,040 --> 00:11:06,600 Speaker 1: a reminder here, Brian, of a topic we cover all 225 00:11:06,640 --> 00:11:10,480 Speaker 1: the time on this show, and that's just managing the emotions. 226 00:11:10,559 --> 00:11:13,480 Speaker 1: If you are in that Sandwich generation, and here's what 227 00:11:13,520 --> 00:11:15,440 Speaker 1: I mean by that, You know, you don't have to 228 00:11:15,520 --> 00:11:18,319 Speaker 1: carry the whole world on your shoulders if you get 229 00:11:18,320 --> 00:11:20,280 Speaker 1: out in front of this and communicate a little bit. 230 00:11:20,600 --> 00:11:24,480 Speaker 1: For example, if you if you feel just this moral 231 00:11:24,600 --> 00:11:27,160 Speaker 1: obligation to pay, you know, one hundred percent of the 232 00:11:27,200 --> 00:11:30,400 Speaker 1: cost of a private education for your kids, you might 233 00:11:30,440 --> 00:11:32,560 Speaker 1: have to pump the brakes on that a little bit 234 00:11:32,920 --> 00:11:36,560 Speaker 1: and compromise in the spirit of, you know, maintaining your 235 00:11:36,640 --> 00:11:42,479 Speaker 1: own retirement viability. Same thing with aging parents or other relatives. 236 00:11:42,520 --> 00:11:45,640 Speaker 1: You know, if people are expecting you to help, you 237 00:11:45,720 --> 00:11:48,160 Speaker 1: got to set a little bit of boundaries there to 238 00:11:48,240 --> 00:11:51,840 Speaker 1: make sure you don't, you know, impoverish yourself in order 239 00:11:51,880 --> 00:11:54,600 Speaker 1: to help you know, parents or aunts or uncles or 240 00:11:54,640 --> 00:11:58,240 Speaker 1: other relatives that you might perceive, you know, need some money. 241 00:11:58,320 --> 00:12:02,400 Speaker 1: So it's not just running numbers, it's you know, balancing 242 00:12:02,640 --> 00:12:06,760 Speaker 1: and managing the behavioral aspects of all this and all 243 00:12:06,840 --> 00:12:09,440 Speaker 1: joking aside. You know, there are a lot and a 244 00:12:09,480 --> 00:12:13,600 Speaker 1: lot of folks in this generation x UH generation that 245 00:12:13,679 --> 00:12:17,000 Speaker 1: are really uh carrying a lot of weight here, both 246 00:12:17,000 --> 00:12:21,400 Speaker 1: emotionally and financially, and sometimes working with a good financial 247 00:12:21,440 --> 00:12:24,800 Speaker 1: advisor is just that other set of eyes and ears 248 00:12:24,800 --> 00:12:28,559 Speaker 1: that can help you think objectively and again get yourself 249 00:12:28,559 --> 00:12:31,280 Speaker 1: in a good place moving forward. Here's the all Worth advice. 250 00:12:31,320 --> 00:12:34,800 Speaker 1: The earlier you act, the more options you'll have. But 251 00:12:34,920 --> 00:12:39,160 Speaker 1: even later in life, smart planning and smart communication can 252 00:12:39,200 --> 00:12:43,400 Speaker 1: make all the difference. Coming up next, one data supported 253 00:12:43,520 --> 00:12:46,800 Speaker 1: money move that could boost your happiness. You're listening to 254 00:12:46,840 --> 00:12:49,360 Speaker 1: Simply Money presented by all Worth Financial on fifty five 255 00:12:49,440 --> 00:12:57,560 Speaker 1: KRC the talk station. You are listening to Simply Money 256 00:12:57,640 --> 00:13:00,480 Speaker 1: presented by all Worth Financial on Bob Sponzell along with 257 00:13:00,520 --> 00:13:03,440 Speaker 1: Brian James. Hey, if you can't listen, to Simply Money 258 00:13:03,559 --> 00:13:06,720 Speaker 1: live every night. Subscribe and get our daily podcasts. And 259 00:13:06,760 --> 00:13:09,120 Speaker 1: if you think your friends or family could use some 260 00:13:09,160 --> 00:13:14,440 Speaker 1: financial advice, especially during this uh, you know, volatile, you know, 261 00:13:14,720 --> 00:13:17,480 Speaker 1: uncertain times that we live in, tell them about us 262 00:13:17,520 --> 00:13:20,560 Speaker 1: as well. Just search Simply Money on the iHeart app 263 00:13:20,960 --> 00:13:24,360 Speaker 1: or wherever you find your podcast straight ahead of six 264 00:13:24,480 --> 00:13:28,079 Speaker 1: forty three real questions from real people will weigh in 265 00:13:28,200 --> 00:13:31,319 Speaker 1: with insight hopefully that you can use no matter where 266 00:13:31,400 --> 00:13:35,400 Speaker 1: you are on your financial journey. Well, we all want 267 00:13:35,400 --> 00:13:38,040 Speaker 1: to be happy, Brian, I know I do, don't. Don't 268 00:13:38,080 --> 00:13:39,920 Speaker 1: you want to be happy? 269 00:13:40,040 --> 00:13:42,600 Speaker 3: Yes, yes, I do, Bob, Thanks for reminding me of that. 270 00:13:44,720 --> 00:13:47,839 Speaker 1: Well, talk to us about a new you gov poll 271 00:13:48,040 --> 00:13:52,160 Speaker 1: that found something very interesting when it comes to money 272 00:13:52,240 --> 00:13:53,400 Speaker 1: and how we use money. 273 00:13:54,360 --> 00:13:56,480 Speaker 3: Well, I'm about it. This new poll came out. 274 00:13:56,520 --> 00:13:59,800 Speaker 2: Instead of whopping, seventy two percent of Americans, including sixty 275 00:13:59,840 --> 00:14:02,280 Speaker 2: nine nine percent of high income earners, say they know 276 00:14:02,360 --> 00:14:04,840 Speaker 2: they'd be happier if they saved or invested more money. 277 00:14:04,880 --> 00:14:07,720 Speaker 3: Now that I think is that is just a that's 278 00:14:07,760 --> 00:14:09,200 Speaker 3: just an earth shattering statement right there. 279 00:14:09,480 --> 00:14:12,760 Speaker 2: But only about twenty one percent said spending would make 280 00:14:12,840 --> 00:14:16,200 Speaker 2: them happier. Spending more would make them happier. So this 281 00:14:16,360 --> 00:14:18,840 Speaker 2: is good in a sense of people were realizing I 282 00:14:18,840 --> 00:14:21,400 Speaker 2: think that they'd be happy that people are saying, I'd 283 00:14:21,440 --> 00:14:23,760 Speaker 2: like to know that I have a bigger cushion, and 284 00:14:23,800 --> 00:14:26,080 Speaker 2: it's maybe not so many say they'd like to be 285 00:14:26,120 --> 00:14:27,400 Speaker 2: spending more of that cushion. 286 00:14:27,480 --> 00:14:29,720 Speaker 3: Just kind of a mindset saying. 287 00:14:30,040 --> 00:14:32,200 Speaker 2: That I'd like to know that I've got a little 288 00:14:32,200 --> 00:14:35,920 Speaker 2: more shock absorber to kind of handle the crazy stuff 289 00:14:35,960 --> 00:14:37,880 Speaker 2: that like and throw at us from a pole. That 290 00:14:38,000 --> 00:14:41,200 Speaker 2: was done for market Watch of about twenty five US 291 00:14:41,240 --> 00:14:44,920 Speaker 2: adults in late October, and it was people with a 292 00:14:44,920 --> 00:14:47,720 Speaker 2: household income of more two hundred and fifty thousand dollars. 293 00:14:47,960 --> 00:14:50,280 Speaker 2: With those, they were more more likely to agree that 294 00:14:50,320 --> 00:14:52,240 Speaker 2: it was important to keep up in terms of saving, 295 00:14:53,080 --> 00:14:55,760 Speaker 2: though they were also more likely than average to agree 296 00:14:55,800 --> 00:14:57,840 Speaker 2: that it was important to keep up with spending. So 297 00:14:58,080 --> 00:14:59,760 Speaker 2: you know a little bit of I think we got 298 00:14:59,760 --> 00:15:02,480 Speaker 2: a lot opinions in there. But at the same time, 299 00:15:02,520 --> 00:15:05,160 Speaker 2: it's interesting that that we're pivoting more towards saving makes 300 00:15:05,200 --> 00:15:08,040 Speaker 2: us happier than spending. That is that is different than 301 00:15:08,080 --> 00:15:09,920 Speaker 2: what I have heard my entire life. 302 00:15:09,960 --> 00:15:13,680 Speaker 1: It seems like, yeah, this reminds me of a cartoon 303 00:15:13,800 --> 00:15:15,440 Speaker 1: I used to watch when I was a kid, and 304 00:15:15,480 --> 00:15:18,360 Speaker 1: I can't even remember what it was, Brian, but I remember, 305 00:15:18,480 --> 00:15:20,920 Speaker 1: you know, it was a cartoon that had two little 306 00:15:21,000 --> 00:15:24,200 Speaker 1: kind of elves or voices, you know, standing on a 307 00:15:24,200 --> 00:15:26,760 Speaker 1: guy's shoulder. And what I mean is we always have, 308 00:15:27,040 --> 00:15:29,960 Speaker 1: you know, two voices in our heads, one thinking saying, 309 00:15:30,040 --> 00:15:33,160 Speaker 1: long term, man, I really should be saving and investing 310 00:15:33,200 --> 00:15:35,200 Speaker 1: in building for the long term. And then that other 311 00:15:35,320 --> 00:15:37,680 Speaker 1: voice is saying, yeah, but I really want to take 312 00:15:37,680 --> 00:15:40,080 Speaker 1: that trip. I really want a new car. I really 313 00:15:40,120 --> 00:15:43,600 Speaker 1: want the iPhone seventeen pro. You know. There there's always 314 00:15:43,600 --> 00:15:46,640 Speaker 1: these conflicting voices going on, and I think that's what 315 00:15:46,680 --> 00:15:50,160 Speaker 1: that study is getting at. I'm more interested in this 316 00:15:51,040 --> 00:15:54,400 Speaker 1: hearing from an expert, you know, who actually studies behavior. 317 00:15:54,480 --> 00:15:58,440 Speaker 1: And we're going to cite some comments from Arthur Brooks 318 00:15:58,560 --> 00:16:05,120 Speaker 1: and an actual Harvard professor and writer who studies happiness professionally, Brian. 319 00:16:05,600 --> 00:16:08,600 Speaker 1: And he says, there's five ways you could basically move 320 00:16:09,120 --> 00:16:12,680 Speaker 1: use money. You can buy things, you can buy experiences, 321 00:16:13,040 --> 00:16:16,520 Speaker 1: you can buy time, you can give money away, or 322 00:16:16,840 --> 00:16:19,760 Speaker 1: you can save it. And he says only the last 323 00:16:19,800 --> 00:16:24,160 Speaker 1: four of those five things actually brings happiness. He wrote 324 00:16:24,160 --> 00:16:27,320 Speaker 1: a summary of an article in a LinkedIn post earlier 325 00:16:27,360 --> 00:16:30,880 Speaker 1: this year, and his point is, hey, stuff, even if 326 00:16:30,920 --> 00:16:33,360 Speaker 1: it gives us that dopamine hit in the short term, 327 00:16:33,440 --> 00:16:37,800 Speaker 1: stuff always wears off. But saving money is progress, and 328 00:16:38,000 --> 00:16:42,960 Speaker 1: progress makes us happy, along with buying experiences and buying time, 329 00:16:43,080 --> 00:16:46,920 Speaker 1: which is what saving money ultimately gives us. What do 330 00:16:46,960 --> 00:16:50,280 Speaker 1: you say about that those comments from Professor Brooks, I 331 00:16:50,280 --> 00:16:51,960 Speaker 1: think those are pretty spot on myself. 332 00:16:52,240 --> 00:16:53,680 Speaker 3: Yeah, I think it makes a lot of sense. 333 00:16:53,960 --> 00:16:57,600 Speaker 2: And again, having done a lot of financial planning for 334 00:16:57,680 --> 00:17:00,720 Speaker 2: people where the big goal in life is that house 335 00:17:00,760 --> 00:17:03,600 Speaker 2: in Hiltonhead or the or I'm gonna buy myself a 336 00:17:03,680 --> 00:17:06,040 Speaker 2: nice car when I retire. Those when I hear, when 337 00:17:06,040 --> 00:17:09,960 Speaker 2: I hear those things not coupled with other greater, you know, 338 00:17:10,520 --> 00:17:13,480 Speaker 2: experience oriented or family oriented plans, I know that's somebody 339 00:17:13,520 --> 00:17:15,639 Speaker 2: who's probably not gonna wind up super happy if that's 340 00:17:15,680 --> 00:17:17,480 Speaker 2: the only thing they're focused on. But I want to 341 00:17:17,520 --> 00:17:19,800 Speaker 2: move on to the next thing he says here, which 342 00:17:19,840 --> 00:17:21,560 Speaker 2: which is he kind of determined that there is no 343 00:17:21,640 --> 00:17:25,040 Speaker 2: ideal savings rate for happiness, but the research suggests that 344 00:17:25,080 --> 00:17:28,800 Speaker 2: a golden mean exists between security and deprivation. So that's 345 00:17:28,880 --> 00:17:32,160 Speaker 2: a lot of fancy college talk for basically saying save 346 00:17:32,320 --> 00:17:34,600 Speaker 2: enough so that you feel secure, but not so much 347 00:17:34,640 --> 00:17:36,399 Speaker 2: that you are ruthlessly illiquid. 348 00:17:36,520 --> 00:17:37,439 Speaker 3: Ruthlessly I liquid. 349 00:17:37,440 --> 00:17:39,320 Speaker 2: I've never heard that phrase before, but I'm thinking of 350 00:17:39,640 --> 00:17:42,600 Speaker 2: people that I've met in my planning career who just 351 00:17:42,680 --> 00:17:44,960 Speaker 2: do nothing but save, safe, save, and just will not 352 00:17:45,080 --> 00:17:49,200 Speaker 2: spend and have their the main purpose for getting out 353 00:17:49,200 --> 00:17:51,520 Speaker 2: of bed is to go update their spreadsheet as to 354 00:17:51,560 --> 00:17:53,879 Speaker 2: how much money and whatever their investments did yesterday, and 355 00:17:53,920 --> 00:17:55,760 Speaker 2: there's really not much else going on in their lives. 356 00:17:55,800 --> 00:17:58,119 Speaker 2: I run across these people every now and then, and 357 00:17:58,160 --> 00:18:01,120 Speaker 2: they are just not the happiest people at all. 358 00:18:01,280 --> 00:18:03,240 Speaker 1: Yeah, and on the flip side, we've got those folks 359 00:18:03,280 --> 00:18:05,679 Speaker 1: who really do need to be saving more and putting 360 00:18:05,720 --> 00:18:08,320 Speaker 1: more away. I mean, the last you know, data we 361 00:18:08,400 --> 00:18:11,840 Speaker 1: saw on the personal savings rating in the United States, 362 00:18:11,960 --> 00:18:15,480 Speaker 1: or the share of income left after spending and paying taxes, 363 00:18:16,119 --> 00:18:19,480 Speaker 1: was a very low four point seven percent in September. 364 00:18:20,080 --> 00:18:23,360 Speaker 1: And the analogy that comes to mind here, Brian, back 365 00:18:23,400 --> 00:18:26,399 Speaker 1: to your point of that finding that balance of feeling 366 00:18:26,440 --> 00:18:30,679 Speaker 1: secure or feeling ruthlessly I liquid, It's kind of like 367 00:18:30,840 --> 00:18:33,399 Speaker 1: you know, knowing you need to lose thirty pounds and 368 00:18:33,440 --> 00:18:35,919 Speaker 1: putting a goal out there that I'm gonna lose, you know, 369 00:18:36,080 --> 00:18:39,359 Speaker 1: seventeen pounds in the next twenty seven days. And boy, 370 00:18:39,440 --> 00:18:42,439 Speaker 1: you go off, you know, you know, you know, running 371 00:18:42,480 --> 00:18:44,960 Speaker 1: around the neighborhood six times a day or whatever. And 372 00:18:45,000 --> 00:18:47,720 Speaker 1: guess what. After about three days, you're exhausted. You say, 373 00:18:47,720 --> 00:18:50,359 Speaker 1: there's no way I can do this. It's not gonna 374 00:18:50,400 --> 00:18:53,280 Speaker 1: work for me, and you stop, you quit. And I 375 00:18:53,280 --> 00:18:56,119 Speaker 1: think the point that the Professor Brooks here is making 376 00:18:56,280 --> 00:19:00,840 Speaker 1: is small incremental changes in you know, implement over time 377 00:19:01,400 --> 00:19:04,080 Speaker 1: is what's really going to move the needle here. And 378 00:19:04,760 --> 00:19:07,919 Speaker 1: there are forces at play out there that make this 379 00:19:08,080 --> 00:19:11,919 Speaker 1: harder for people. Let's talk about what some of the 380 00:19:11,920 --> 00:19:15,320 Speaker 1: things that maybe might be getting in our way mentally. 381 00:19:15,400 --> 00:19:18,520 Speaker 1: And I'm talking about social media, Brian. It's a real 382 00:19:18,640 --> 00:19:19,560 Speaker 1: influence out. 383 00:19:19,440 --> 00:19:21,120 Speaker 3: There, fear of missing out. 384 00:19:21,160 --> 00:19:23,600 Speaker 2: Social media has made it easier than ever to measure 385 00:19:23,640 --> 00:19:26,879 Speaker 2: our own lifestyle against other peoples. But only seventeen percent 386 00:19:26,880 --> 00:19:29,159 Speaker 2: of respondents pulled by you gov for market Watch that 387 00:19:29,160 --> 00:19:31,760 Speaker 2: we referenced earlier, only about seventeen percent agreed that it 388 00:19:31,800 --> 00:19:33,640 Speaker 2: was important to keep up with our peers in terms 389 00:19:33,680 --> 00:19:35,840 Speaker 2: of spending, but at the same time, twenty eight percent 390 00:19:35,920 --> 00:19:38,560 Speaker 2: that it was important to keep up with them and 391 00:19:38,600 --> 00:19:41,320 Speaker 2: to keep up with their peers in terms of saving regardless. 392 00:19:41,480 --> 00:19:43,560 Speaker 2: I don't care whether you're keeping up in terms of 393 00:19:43,600 --> 00:19:45,720 Speaker 2: spending or saving. If you're paying that much attention to 394 00:19:45,760 --> 00:19:47,240 Speaker 2: other people, you're probably not going to wind up in 395 00:19:47,240 --> 00:19:50,199 Speaker 2: a happy spot anyway. Understand what your situation is and 396 00:19:50,200 --> 00:19:52,560 Speaker 2: what your goals are and focus only on that, and 397 00:19:52,640 --> 00:19:55,000 Speaker 2: get off of social media in terms of a measuring 398 00:19:55,040 --> 00:19:56,160 Speaker 2: stick for your own life. 399 00:19:56,800 --> 00:19:59,320 Speaker 1: Here's the all Worth advice. Happiness for money is it 400 00:19:59,359 --> 00:20:03,040 Speaker 1: about what you by. It's about the security and options 401 00:20:03,080 --> 00:20:06,800 Speaker 1: that you build over time. Focus on goals that truly 402 00:20:06,840 --> 00:20:11,000 Speaker 1: bring you peace of mind. You've worked your way up 403 00:20:11,040 --> 00:20:14,320 Speaker 1: the ladder and you've perhaps made even some great money, 404 00:20:14,359 --> 00:20:17,640 Speaker 1: but opportunity comes calling in the form of an executive 405 00:20:17,680 --> 00:20:20,879 Speaker 1: position or a big promotion should you move up that 406 00:20:21,000 --> 00:20:25,200 Speaker 1: corporate ladder. We'll talk about the quote unquote executive dilemma 407 00:20:25,640 --> 00:20:28,399 Speaker 1: coming up next. You're listening to Simply Money presented by 408 00:20:28,400 --> 00:20:31,760 Speaker 1: all Worth Financial on fifty five KRC the talk station. 409 00:20:36,280 --> 00:20:38,760 Speaker 1: You're listening to Simply Money presented by all Worth Financial 410 00:20:38,800 --> 00:20:42,400 Speaker 1: on Bob Sponseller along with Brian James, joined tonight by 411 00:20:42,440 --> 00:20:46,159 Speaker 1: our career expert Julie Bauki. Julie, thanks, as always for 412 00:20:46,280 --> 00:20:49,399 Speaker 1: carving out some time for us tonight. We want to 413 00:20:49,440 --> 00:20:53,240 Speaker 1: talk about something we're gonna call the executive dilemma, staying 414 00:20:53,280 --> 00:20:57,240 Speaker 1: put versus jumping to the next big, big thing. Let's 415 00:20:57,280 --> 00:20:59,920 Speaker 1: say you're in a great role right now. You love 416 00:21:00,160 --> 00:21:03,280 Speaker 1: your job, you're obviously doing very well at it, but 417 00:21:03,480 --> 00:21:07,280 Speaker 1: opportunity comes knocking. What's the right move and how do 418 00:21:07,359 --> 00:21:09,320 Speaker 1: you evaluate whether to make a move? 419 00:21:10,160 --> 00:21:12,360 Speaker 4: Yeah, I can kind of speak in generality because I've 420 00:21:12,359 --> 00:21:14,080 Speaker 4: worked with a lot of people in this situation, and 421 00:21:14,119 --> 00:21:16,399 Speaker 4: the first question I would ask is why would you 422 00:21:16,480 --> 00:21:19,760 Speaker 4: consider this move? So, in other words, what are the 423 00:21:19,840 --> 00:21:24,159 Speaker 4: compelling things about this move? And sometimes what I find 424 00:21:24,240 --> 00:21:29,320 Speaker 4: when people start listing out compelling things more salary, you know, 425 00:21:29,520 --> 00:21:32,840 Speaker 4: a higher level title. My next question would be, are 426 00:21:32,880 --> 00:21:35,560 Speaker 4: you sure that those are the things that really matter 427 00:21:35,600 --> 00:21:39,840 Speaker 4: to you? Because it's very it's very ingrained in us 428 00:21:40,040 --> 00:21:42,880 Speaker 4: that jumping for the next big thing, more money, more 429 00:21:42,920 --> 00:21:47,320 Speaker 4: title equals more happiness and career satisfaction. But I know 430 00:21:47,440 --> 00:21:51,200 Speaker 4: for sure that's not true, and so when you look 431 00:21:51,240 --> 00:21:54,040 Speaker 4: at why did that appeal why did that role appeal 432 00:21:54,080 --> 00:21:57,000 Speaker 4: to you in the first place, and then ask yourself, 433 00:21:57,000 --> 00:21:59,159 Speaker 4: are those things that really matter to me at this point? 434 00:21:59,480 --> 00:22:01,760 Speaker 4: I always from a point of what matters most to 435 00:22:01,840 --> 00:22:04,439 Speaker 4: you right now in your life, and then bring the 436 00:22:04,480 --> 00:22:07,800 Speaker 4: career conversation into it. And because if you are going 437 00:22:07,840 --> 00:22:10,480 Speaker 4: to get that bigger title and more money, does it 438 00:22:10,520 --> 00:22:12,000 Speaker 4: also mean that you have to travel more? 439 00:22:12,040 --> 00:22:12,800 Speaker 2: Does it mean you have. 440 00:22:12,800 --> 00:22:15,000 Speaker 4: To work weekends? And how does that fit into what 441 00:22:15,040 --> 00:22:18,720 Speaker 4: your priorities are? And so it's so that's the big 442 00:22:18,840 --> 00:22:21,520 Speaker 4: question is why would you And then take a look 443 00:22:21,560 --> 00:22:26,320 Speaker 4: at what is it about where you are now that 444 00:22:26,520 --> 00:22:29,919 Speaker 4: might be sticking in your gut as to why it 445 00:22:29,960 --> 00:22:31,960 Speaker 4: even makes sense to look for something else? And what 446 00:22:32,000 --> 00:22:35,399 Speaker 4: are you missing where you are? If you could change 447 00:22:35,960 --> 00:22:39,800 Speaker 4: some things about your current situation, would that solve that? 448 00:22:40,480 --> 00:22:42,439 Speaker 4: Would that solve that? It's you're getting to move on. 449 00:22:43,000 --> 00:22:45,840 Speaker 4: But I think just a really good critical analysis of 450 00:22:45,880 --> 00:22:48,879 Speaker 4: the why behind both where you are, the whis and 451 00:22:48,920 --> 00:22:53,000 Speaker 4: the what both behind where you are and what the 452 00:22:53,040 --> 00:22:56,480 Speaker 4: opportunity is in front of you is really really important 453 00:22:56,600 --> 00:22:58,879 Speaker 4: because we can get super caught up in Yeah, but 454 00:22:58,920 --> 00:23:01,439 Speaker 4: it's a director title. Yeah, but it's a VP title 455 00:23:02,200 --> 00:23:04,760 Speaker 4: without really thinking about what am I getting up, what 456 00:23:04,800 --> 00:23:07,240 Speaker 4: am I giving up to get that? And then how 457 00:23:07,280 --> 00:23:10,679 Speaker 4: does that work against what my whole life priorities are 458 00:23:10,760 --> 00:23:13,040 Speaker 4: right now? So a career decision has to be made 459 00:23:13,440 --> 00:23:15,400 Speaker 4: on a bigger platform than in a vacuum. 460 00:23:16,160 --> 00:23:18,440 Speaker 2: Julie, I think a lot of people learn the hard 461 00:23:18,440 --> 00:23:20,679 Speaker 2: way exactly what you just said, because we get this 462 00:23:20,800 --> 00:23:23,160 Speaker 2: so ingrained in us that I got it. If I'm 463 00:23:23,160 --> 00:23:26,080 Speaker 2: getting off of this position, well, clearly I'm fantastic. Obviously 464 00:23:26,119 --> 00:23:28,399 Speaker 2: they love me, and I should take advantage of these benefits. 465 00:23:28,440 --> 00:23:30,679 Speaker 2: But people do tend to learn the hard way that whoops, 466 00:23:30,720 --> 00:23:32,800 Speaker 2: maybe I caught my limit. Maybe I don't want that 467 00:23:32,840 --> 00:23:34,840 Speaker 2: next level because my other things in my life have 468 00:23:34,880 --> 00:23:35,560 Speaker 2: taken priority. 469 00:23:35,760 --> 00:23:37,040 Speaker 3: So how do people unwind it? 470 00:23:37,080 --> 00:23:38,640 Speaker 2: For those people who feel like they may have done 471 00:23:38,680 --> 00:23:40,760 Speaker 2: that in that position, how can what's what are some 472 00:23:40,800 --> 00:23:41,639 Speaker 2: ways to unwind that? 473 00:23:42,920 --> 00:23:45,480 Speaker 4: Yeah, so you're saying like, if you've already taken that. 474 00:23:45,520 --> 00:23:48,000 Speaker 2: Role, yeah, and you didn't, and you just didn't occur 475 00:23:48,040 --> 00:23:49,560 Speaker 2: to you that, you know what, I didn't really want 476 00:23:49,640 --> 00:23:51,600 Speaker 2: this extra level of work. I just didn't think it through. 477 00:23:51,640 --> 00:23:53,120 Speaker 2: I just thought it was another accomplishment. 478 00:23:53,240 --> 00:23:55,000 Speaker 4: So the first thing, It kind of depends on a 479 00:23:55,000 --> 00:23:57,280 Speaker 4: lot of things. If you have so let's say you 480 00:23:57,280 --> 00:24:02,200 Speaker 4: have a very stable career history. You've worked a long 481 00:24:02,240 --> 00:24:05,600 Speaker 4: time at one place, and you've jumped to this other place, 482 00:24:05,920 --> 00:24:08,399 Speaker 4: and you've been there nine months to a year, and 483 00:24:08,440 --> 00:24:11,000 Speaker 4: you say, this isn't exactly what I thought it was 484 00:24:11,040 --> 00:24:17,719 Speaker 4: going to be. You can successfully and confidently pivot at 485 00:24:17,720 --> 00:24:23,560 Speaker 4: that point versus a person who's had three two year 486 00:24:23,680 --> 00:24:26,920 Speaker 4: jobs in a row. Now you have to Now it 487 00:24:27,040 --> 00:24:29,600 Speaker 4: starts to be what story does your career tell? And 488 00:24:29,640 --> 00:24:32,080 Speaker 4: that's what I would add, because you want to picture yourself. 489 00:24:32,600 --> 00:24:35,440 Speaker 4: You're now interviewing for a new job beyond the one 490 00:24:35,480 --> 00:24:37,960 Speaker 4: that you took by accident. You've got to explain yourself. 491 00:24:38,320 --> 00:24:41,439 Speaker 4: You've got to explain your career. And it's perfectly okay 492 00:24:41,480 --> 00:24:45,840 Speaker 4: to say they contacted me it sounded like exactly what 493 00:24:45,920 --> 00:24:49,119 Speaker 4: I wanted. When I got there, I realized that lava 494 00:24:49,160 --> 00:24:51,960 Speaker 4: blah blah blah. I've done a lot of thinking and 495 00:24:52,000 --> 00:24:54,320 Speaker 4: now I know exactly what I want and which is 496 00:24:54,320 --> 00:24:58,000 Speaker 4: why I applied for this role. And so that is 497 00:24:58,240 --> 00:25:02,120 Speaker 4: just that's a good explanation. But if you are somebody 498 00:25:02,119 --> 00:25:05,199 Speaker 4: who has a history. If you are somebody who has 499 00:25:05,240 --> 00:25:10,160 Speaker 4: a history of jumping without really thinking about what I've done, 500 00:25:10,160 --> 00:25:12,600 Speaker 4: and therefore you have kind of a checkered history, you 501 00:25:12,680 --> 00:25:15,560 Speaker 4: probably need to take a breath and build up, build 502 00:25:15,640 --> 00:25:19,080 Speaker 4: up some capital there where you are, so that as 503 00:25:19,080 --> 00:25:20,920 Speaker 4: you move to the next thing, you've got a better 504 00:25:20,960 --> 00:25:22,760 Speaker 4: story to tell. So it's kind of a big fat 505 00:25:22,800 --> 00:25:25,320 Speaker 4: It depends. It's really what does your whole career story 506 00:25:25,359 --> 00:25:26,040 Speaker 4: say about. 507 00:25:25,840 --> 00:25:28,880 Speaker 1: You, Julie. I want to go back to the situation 508 00:25:28,960 --> 00:25:32,680 Speaker 1: where somebody's, you know, considering a move, they haven't pulled 509 00:25:32,680 --> 00:25:35,199 Speaker 1: the trigger yet, and they're wondering how to evaluate this. 510 00:25:35,280 --> 00:25:37,200 Speaker 1: And I'm going to make an assumption here. You correct 511 00:25:37,200 --> 00:25:40,880 Speaker 1: me if I'm wrong. Oftentimes people just haven't been coached 512 00:25:41,400 --> 00:25:44,240 Speaker 1: on how to walk into that, you know, the boss's 513 00:25:44,280 --> 00:25:47,760 Speaker 1: office or the executive suite, and just be clear about 514 00:25:47,760 --> 00:25:51,240 Speaker 1: what you love about working where you are. A couple 515 00:25:51,320 --> 00:25:53,880 Speaker 1: things that you would like to see tweaked. And I think, 516 00:25:54,280 --> 00:25:57,800 Speaker 1: especially in today's labor market where it is really hard 517 00:25:57,840 --> 00:26:02,680 Speaker 1: to find good, seasoned, hard working people, aren't people amazed, 518 00:26:02,880 --> 00:26:05,640 Speaker 1: you know, if if they're coached by someone like you 519 00:26:06,160 --> 00:26:09,400 Speaker 1: on how to go in and broach that conversation. Oftentimes 520 00:26:09,440 --> 00:26:11,679 Speaker 1: you can walk out of that office, you know, if 521 00:26:11,800 --> 00:26:16,040 Speaker 1: if you're if your requests or reasonable, getting exactly what 522 00:26:16,119 --> 00:26:18,840 Speaker 1: you really need to be truly happy where you are 523 00:26:19,359 --> 00:26:22,560 Speaker 1: instead of making a completely you know, new move and 524 00:26:23,040 --> 00:26:25,639 Speaker 1: complete jump to a new company. Am I am I 525 00:26:26,000 --> 00:26:27,560 Speaker 1: on target there at all? 526 00:26:27,960 --> 00:26:31,280 Speaker 4: Yes? A very much. So we always say try to 527 00:26:31,280 --> 00:26:34,000 Speaker 4: fix it where you are first. Yeah, because jobs are 528 00:26:34,000 --> 00:26:37,520 Speaker 4: as painful, and transitioning to a new, unknown job, as 529 00:26:37,520 --> 00:26:39,760 Speaker 4: exciting as it may sound on the surface, can also 530 00:26:39,800 --> 00:26:44,040 Speaker 4: be really painful and surprising. And so getting it doing that, 531 00:26:44,560 --> 00:26:47,920 Speaker 4: doing that clarity, that looking at everything that's on your 532 00:26:47,920 --> 00:26:50,760 Speaker 4: plate and saying and really saying, what do I like 533 00:26:52,080 --> 00:26:55,640 Speaker 4: about my current role? What are the things that if 534 00:26:55,640 --> 00:26:57,640 Speaker 4: I had a magic wand and can move them off 535 00:26:57,680 --> 00:27:01,200 Speaker 4: my plate, I would What would I like to see 536 00:27:01,720 --> 00:27:06,400 Speaker 4: more of less of in my role? And how how 537 00:27:06,400 --> 00:27:09,400 Speaker 4: do I then approach that. Once you get clarity on that, 538 00:27:10,119 --> 00:27:13,040 Speaker 4: then you have a better Then you have a framework. 539 00:27:13,080 --> 00:27:15,960 Speaker 4: Then you have talking points to go in and say, 540 00:27:16,000 --> 00:27:18,600 Speaker 4: you know, I've been in this role as COO for 541 00:27:18,760 --> 00:27:23,320 Speaker 4: three years and what I really love is integrating new ideas, 542 00:27:23,400 --> 00:27:29,040 Speaker 4: new systems, new technologies and then working across the organization 543 00:27:29,240 --> 00:27:31,679 Speaker 4: to help implement those and bring those delights. I do 544 00:27:31,760 --> 00:27:33,480 Speaker 4: get to do some of that in my role, but 545 00:27:33,560 --> 00:27:35,880 Speaker 4: as I look at my next role, I would love 546 00:27:36,080 --> 00:27:40,560 Speaker 4: to be more involved in those types of initiatives. And 547 00:27:41,320 --> 00:27:44,959 Speaker 4: that's the kind of conversation that you should be having. 548 00:27:45,600 --> 00:27:49,720 Speaker 4: And we are so afraid to have those conversations because 549 00:27:49,720 --> 00:27:51,720 Speaker 4: we feel like it's going to make us look less 550 00:27:51,760 --> 00:27:55,400 Speaker 4: than committed or that we're going to automatically end up 551 00:27:55,600 --> 00:27:58,800 Speaker 4: on the layoff list. And you've got to assess your situation. 552 00:27:58,880 --> 00:28:01,120 Speaker 4: If you have the type of leader, do you feel 553 00:28:01,119 --> 00:28:04,119 Speaker 4: like it really is risky to have those conversations that 554 00:28:04,200 --> 00:28:06,560 Speaker 4: might be different than if you feel like somebody your 555 00:28:06,680 --> 00:28:09,879 Speaker 4: leader really is open to you, are valued, and your 556 00:28:09,920 --> 00:28:13,000 Speaker 4: leader is looking to retain you. I think it's up 557 00:28:13,000 --> 00:28:16,919 Speaker 4: to you to go in and begin that conversation about 558 00:28:16,920 --> 00:28:19,639 Speaker 4: what next might look like for you. Leaders are so 559 00:28:20,119 --> 00:28:23,119 Speaker 4: busy and yet they should be coming to you and 560 00:28:23,160 --> 00:28:27,080 Speaker 4: initiating these conversations, but they aren't because they're getting squeezed. 561 00:28:27,280 --> 00:28:29,879 Speaker 4: And I always say, the career fairy isn't coming. And 562 00:28:29,920 --> 00:28:32,399 Speaker 4: so if you want more or different out of your career, 563 00:28:32,960 --> 00:28:35,040 Speaker 4: start where you are. Try to get it where you are, 564 00:28:35,119 --> 00:28:36,680 Speaker 4: or at least put a plan together to get it 565 00:28:36,720 --> 00:28:40,160 Speaker 4: where you are. Especially in a job market like we're in, 566 00:28:40,280 --> 00:28:43,240 Speaker 4: that's always going to be the place where it's going 567 00:28:43,280 --> 00:28:45,000 Speaker 4: to be least stressful to move. 568 00:28:45,880 --> 00:28:48,600 Speaker 1: That is great advice. Julie, you're listening to Simply Money 569 00:28:48,600 --> 00:28:51,840 Speaker 1: presented by all Worth Financial on fifty five KARC the 570 00:28:52,160 --> 00:28:59,360 Speaker 1: talk station. You're listening to Simply Money presented by all 571 00:28:59,360 --> 00:29:03,240 Speaker 1: Worth Finance Bob Sponsorer along with Brian James. Do you 572 00:29:03,280 --> 00:29:05,479 Speaker 1: have a financial question you'd like for us to answer. 573 00:29:05,560 --> 00:29:08,240 Speaker 1: There's a red button you can click if you're listening 574 00:29:08,240 --> 00:29:11,479 Speaker 1: to our show from the good old iHeart app. Simply 575 00:29:11,520 --> 00:29:14,479 Speaker 1: record your question and it will come straight to us. 576 00:29:15,160 --> 00:29:17,840 Speaker 1: Mark and Milford leads us off tonight. Brian. He says, 577 00:29:17,960 --> 00:29:21,680 Speaker 1: We've got several old tax lots in our brokerage account, 578 00:29:21,680 --> 00:29:24,920 Speaker 1: and I'm not sure how to unwine them without triggering 579 00:29:25,280 --> 00:29:30,120 Speaker 1: huge capital gains. How do you modernize a portfolio without 580 00:29:30,240 --> 00:29:33,480 Speaker 1: burning the tax house down? I love how he phrased that. 581 00:29:34,040 --> 00:29:36,480 Speaker 3: Yeah, this is a common question, especially this time of years. 582 00:29:36,480 --> 00:29:37,920 Speaker 3: People are kind of taking stock. 583 00:29:37,760 --> 00:29:40,520 Speaker 2: Of their overall situation and what changes should I make 584 00:29:40,560 --> 00:29:42,400 Speaker 2: by the end of by the end of New Year's Eve. 585 00:29:42,400 --> 00:29:44,360 Speaker 3: Here, So when you're modernizing a. 586 00:29:44,320 --> 00:29:47,680 Speaker 2: Taxable portfolio, you've got these old, highly appreciated positions. The 587 00:29:47,720 --> 00:29:50,320 Speaker 2: goals usually to separate what you want to own from 588 00:29:50,360 --> 00:29:52,600 Speaker 2: what you can afford to sell. There's usually kind of 589 00:29:52,600 --> 00:29:54,720 Speaker 2: four steps to this. First off, make sure you understand 590 00:29:54,760 --> 00:29:57,160 Speaker 2: what your embedded gains are. Think in terms of gain 591 00:29:57,240 --> 00:30:00,400 Speaker 2: per dollar sold. Two positions with the same dollar can 592 00:30:00,440 --> 00:30:02,840 Speaker 2: have very very different tax impacts, maybe if one has 593 00:30:02,880 --> 00:30:05,600 Speaker 2: a much lower cost basis, So don't necessarily think only 594 00:30:05,680 --> 00:30:08,000 Speaker 2: about the dollar positions, think about the cost bases of 595 00:30:08,000 --> 00:30:09,960 Speaker 2: what the tax it is. And in second, you're gonna 596 00:30:09,960 --> 00:30:12,480 Speaker 2: you're gonna want to upgrade through additions before you upgrade 597 00:30:12,520 --> 00:30:15,560 Speaker 2: through the actual sales, new savings, dividends, and interest into 598 00:30:15,600 --> 00:30:17,520 Speaker 2: parts of the portfolio you want to build before you 599 00:30:17,560 --> 00:30:20,200 Speaker 2: worry about selling and rejiggering the existing positions. 600 00:30:20,360 --> 00:30:22,560 Speaker 3: That'll help the legacy positions gradually. 601 00:30:22,280 --> 00:30:25,320 Speaker 2: Become a smaller percentage, and so that that's going to 602 00:30:25,360 --> 00:30:27,640 Speaker 2: help you modernize your portfolio. As you said before, before 603 00:30:27,640 --> 00:30:30,320 Speaker 2: you're actually creating taxable events. And then the third step here, 604 00:30:30,440 --> 00:30:33,480 Speaker 2: use that tax calendar to your advantage realizing gains in 605 00:30:33,560 --> 00:30:37,600 Speaker 2: controlled increments, harvest losses in volatile years. If things are 606 00:30:37,640 --> 00:30:39,880 Speaker 2: going way up and way down, then you're going to 607 00:30:39,960 --> 00:30:43,200 Speaker 2: intentionally fill your lower brackets during retirement, you'll want to 608 00:30:43,200 --> 00:30:45,520 Speaker 2: cap those gains to stay under the zero or fifteen 609 00:30:45,560 --> 00:30:48,320 Speaker 2: percent threshold. It is possible to do that and make 610 00:30:48,360 --> 00:30:50,680 Speaker 2: sure you're not generating much more income that'll push you 611 00:30:50,760 --> 00:30:54,840 Speaker 2: into higher brackets. And then finally, remember that appreciation itself 612 00:30:54,880 --> 00:30:57,560 Speaker 2: is going to create some flexibility. If a position keeps growing, 613 00:30:57,800 --> 00:31:00,400 Speaker 2: you can donate those shares to meet some chared goals 614 00:31:00,440 --> 00:31:02,560 Speaker 2: and you'll get a deduction on the back end of them. 615 00:31:03,160 --> 00:31:05,600 Speaker 2: So I hope that helps in a few steps there 616 00:31:05,600 --> 00:31:07,520 Speaker 2: for you to look at over the next couple of weeks. 617 00:31:08,200 --> 00:31:10,520 Speaker 3: And so now we're going to move on to Brian 618 00:31:10,560 --> 00:31:11,160 Speaker 3: and Montgomery. 619 00:31:11,160 --> 00:31:13,520 Speaker 2: Brian says, we've always reinvested these dividends, but now that 620 00:31:13,520 --> 00:31:15,800 Speaker 2: we're getting close to retirement, does it make sense to 621 00:31:15,800 --> 00:31:18,800 Speaker 2: actually use the dividends for income rather than just reinvesting. 622 00:31:18,840 --> 00:31:20,480 Speaker 3: What's the tipping point? How do you how do you 623 00:31:20,480 --> 00:31:21,840 Speaker 3: know when it's time to make that decision? 624 00:31:22,720 --> 00:31:25,560 Speaker 1: Well, Brian, great question. I would say the tipping point 625 00:31:25,600 --> 00:31:28,520 Speaker 1: is proactive tax planning. Here's what I mean. There are 626 00:31:28,560 --> 00:31:30,760 Speaker 1: some folks out there, and this is not a bad thing, 627 00:31:30,880 --> 00:31:34,520 Speaker 1: you who are just addicted to these, you know, reinvested 628 00:31:34,560 --> 00:31:38,040 Speaker 1: dividend programs, and they've used them for years, if not decades. 629 00:31:38,600 --> 00:31:40,840 Speaker 1: And you know, there's a saying out there that says, well, 630 00:31:41,040 --> 00:31:43,960 Speaker 1: you know, only spend your dividends and interest by no 631 00:31:44,120 --> 00:31:47,720 Speaker 1: means ever touch any principle or ever sell anything. And 632 00:31:47,920 --> 00:31:50,520 Speaker 1: and I know in principle that works. I mean, it 633 00:31:50,600 --> 00:31:53,440 Speaker 1: keeps you from drawing down your principle. But you asked 634 00:31:53,440 --> 00:31:56,160 Speaker 1: the point about, you know, the what's the tipping point here? 635 00:31:56,200 --> 00:31:59,800 Speaker 1: And my answer is proactive tax planning. Here's what I mean. 636 00:32:00,120 --> 00:32:03,040 Speaker 1: It might make some sense to actually, God forbid, have 637 00:32:03,120 --> 00:32:05,880 Speaker 1: a little bit of capital gains you know, going on 638 00:32:06,160 --> 00:32:09,040 Speaker 1: or recognition going on in your portfolio, because it might 639 00:32:09,160 --> 00:32:13,160 Speaker 1: allow you to move your overall tax rate that you 640 00:32:13,280 --> 00:32:16,760 Speaker 1: pay down. So, you know, depending on what the components 641 00:32:16,800 --> 00:32:20,440 Speaker 1: of your investment portfolio are and where you need or 642 00:32:20,480 --> 00:32:23,760 Speaker 1: want to derive your income from, sit down with somebody 643 00:32:23,760 --> 00:32:27,920 Speaker 1: and actually run the numbers and create a proactive income 644 00:32:28,080 --> 00:32:30,760 Speaker 1: plan that gets you the money that you need to 645 00:32:30,800 --> 00:32:35,320 Speaker 1: have while balancing the risk of your overall portfolio and 646 00:32:35,880 --> 00:32:39,239 Speaker 1: hopefully making this as tax efficient as possible. There's a 647 00:32:39,320 --> 00:32:42,240 Speaker 1: lot of options out there to consider. Make sure you're 648 00:32:42,240 --> 00:32:46,000 Speaker 1: at least evaluating all of your choices, all right, Olivia 649 00:32:46,040 --> 00:32:48,320 Speaker 1: in Blue ass says, we're starting to think about long 650 00:32:48,400 --> 00:32:51,880 Speaker 1: term care, but I've oh, I'm overwhelmed by how many 651 00:32:51,960 --> 00:32:56,840 Speaker 1: options exist. How do you decide between self funding, insurance 652 00:32:57,440 --> 00:32:59,080 Speaker 1: or some hybrid of the two. 653 00:33:00,120 --> 00:33:03,560 Speaker 2: Well, this is always This is a combination of matching 654 00:33:03,600 --> 00:33:06,640 Speaker 2: your resources, your risk tolerance, and your control and make 655 00:33:06,680 --> 00:33:09,280 Speaker 2: sure that you understand what the needs are. 656 00:33:09,200 --> 00:33:10,520 Speaker 3: You might be able to self fund. 657 00:33:11,080 --> 00:33:12,479 Speaker 2: You know, there's a lot of people out there who 658 00:33:12,520 --> 00:33:14,560 Speaker 2: are actually in a stronger position than they've ever let 659 00:33:14,640 --> 00:33:18,080 Speaker 2: themselves believe. And when we do financial plans, frequently somebody 660 00:33:18,080 --> 00:33:19,760 Speaker 2: will say, okay, so we're in good shape right now, 661 00:33:19,760 --> 00:33:21,360 Speaker 2: but what if this happens? What if I need to 662 00:33:21,360 --> 00:33:23,680 Speaker 2: take on a long term care type of a situation, 663 00:33:24,440 --> 00:33:27,080 Speaker 2: And do I really need to layer on an extra 664 00:33:27,160 --> 00:33:30,080 Speaker 2: ten to twelve thousand dollars a month of expenses? Because 665 00:33:30,120 --> 00:33:32,640 Speaker 2: that is about that that's the cost of a nice day. 666 00:33:32,680 --> 00:33:35,360 Speaker 2: So with a comparison I always make here is let's 667 00:33:35,400 --> 00:33:38,880 Speaker 2: make sure that we understand what the real cost is 668 00:33:39,320 --> 00:33:41,560 Speaker 2: and what does it take away. So, in other words, 669 00:33:41,600 --> 00:33:44,520 Speaker 2: if the average stay in a nursing home, we're talking 670 00:33:44,600 --> 00:33:46,160 Speaker 2: end of life care, by the way, and we're not 671 00:33:46,240 --> 00:33:49,720 Speaker 2: talking Alzheimer's, your Parkins's Huntington type situation. 672 00:33:49,920 --> 00:33:50,880 Speaker 3: That's very different. 673 00:33:50,880 --> 00:33:52,560 Speaker 2: Those are eight to ten stays, and that is a 674 00:33:52,560 --> 00:33:55,320 Speaker 2: life changing event, but those are a. 675 00:33:55,320 --> 00:33:56,080 Speaker 3: Little more rare. 676 00:33:56,360 --> 00:33:58,320 Speaker 2: But for your average two and a half to three 677 00:33:58,400 --> 00:34:01,160 Speaker 2: year stay, you're looking at about ten to twelve thousand 678 00:34:01,160 --> 00:34:04,000 Speaker 2: dollars per month in a nice home for one individual. 679 00:34:04,080 --> 00:34:05,800 Speaker 2: So that's going to average somewhere in the three hundred 680 00:34:05,800 --> 00:34:09,239 Speaker 2: and fifty thousand dollars range. But the thing to remember, though, 681 00:34:09,280 --> 00:34:12,640 Speaker 2: is you're not necessarily layering those expenses on top of 682 00:34:12,680 --> 00:34:15,160 Speaker 2: everything else. If you've built a financial plan and you 683 00:34:15,400 --> 00:34:17,239 Speaker 2: know you've got your expenses out there, you know what 684 00:34:17,280 --> 00:34:19,440 Speaker 2: you spend. Well, remember you're not going to the grocery 685 00:34:19,440 --> 00:34:21,360 Speaker 2: store anymore, you're not traveling anymore. 686 00:34:21,760 --> 00:34:24,360 Speaker 3: You know, you're not taking on the same lifestyle that 687 00:34:24,480 --> 00:34:25,040 Speaker 3: you are now. 688 00:34:25,080 --> 00:34:27,359 Speaker 2: When we're planning for something that could happen fifteen years 689 00:34:27,400 --> 00:34:29,799 Speaker 2: down the line, so you know, it's very possible that 690 00:34:29,840 --> 00:34:33,120 Speaker 2: you could actually sell fund when you remember that that 691 00:34:33,440 --> 00:34:36,080 Speaker 2: this whatever that expense is, isn't necessarily layered on top 692 00:34:36,160 --> 00:34:38,920 Speaker 2: of everything else. But if that's not the case, then 693 00:34:38,960 --> 00:34:41,480 Speaker 2: you can consider traditional long term care insurance. That's where 694 00:34:41,480 --> 00:34:43,960 Speaker 2: you write a check, you know, once a year, and 695 00:34:44,000 --> 00:34:46,399 Speaker 2: it's kind of like term insurance. And then finally, there's 696 00:34:46,440 --> 00:34:49,200 Speaker 2: also something called hybrid insurance, which my favorite thing to 697 00:34:49,239 --> 00:34:51,800 Speaker 2: do is to take a cash value life insurance policy 698 00:34:52,440 --> 00:34:54,440 Speaker 2: and pull the cash out of it, move it via 699 00:34:54,520 --> 00:34:57,319 Speaker 2: a ten thirty five tax free exchange to another life 700 00:34:57,320 --> 00:34:59,799 Speaker 2: policy that also has a long term care writer. If 701 00:34:59,800 --> 00:35:02,040 Speaker 2: you've got the ability to look into that, I would 702 00:35:02,120 --> 00:35:04,720 Speaker 2: highly recommend considering considering doing. 703 00:35:04,520 --> 00:35:07,959 Speaker 1: Those All right, good stuff Coming up next, I've got 704 00:35:08,000 --> 00:35:12,400 Speaker 1: my two cents from an actual client meeting I had yesterday, 705 00:35:12,920 --> 00:35:16,040 Speaker 1: one of these gen X couples we talked about earlier 706 00:35:16,080 --> 00:35:18,080 Speaker 1: in the show. I'm going to walk you through the 707 00:35:18,320 --> 00:35:21,640 Speaker 1: actual contents of that meeting I had yesterday and how 708 00:35:21,680 --> 00:35:24,520 Speaker 1: we got these people all set up and feeling good 709 00:35:24,520 --> 00:35:27,680 Speaker 1: about things moving forward. You're listening to Simply Money, presented 710 00:35:27,719 --> 00:35:31,320 Speaker 1: by all Worth Financial on fifty five KRC, the talk station. 711 00:35:36,280 --> 00:35:38,960 Speaker 1: You're listening to Simply Money presented by Allworth Financial on 712 00:35:39,080 --> 00:35:42,959 Speaker 1: Bob Sponseller along with Brian James. Now Brian, we spent 713 00:35:43,120 --> 00:35:46,319 Speaker 1: several minutes earlier in the show today talking about all 714 00:35:46,360 --> 00:35:49,640 Speaker 1: the dilemmas that the Gen X generation faces, and I 715 00:35:49,719 --> 00:35:52,320 Speaker 1: just wanted to share, you know, hopefully give people a 716 00:35:52,360 --> 00:35:54,520 Speaker 1: little bit of hope out there. You know, I wanted 717 00:35:54,520 --> 00:35:56,799 Speaker 1: to share the actual content from a meeting I had 718 00:35:56,880 --> 00:36:00,600 Speaker 1: yesterday with a couple that falls into that generation, and 719 00:36:01,080 --> 00:36:03,239 Speaker 1: you know, they want to retire in the next you know, 720 00:36:03,360 --> 00:36:05,160 Speaker 1: about a year and a half to two years, and 721 00:36:05,200 --> 00:36:08,040 Speaker 1: they've they've saved well, they've done a lot of great things, 722 00:36:09,120 --> 00:36:11,920 Speaker 1: and we've run the plan, maintained it for years and years, 723 00:36:11,960 --> 00:36:14,279 Speaker 1: and now that it's kind of starting to get down 724 00:36:14,320 --> 00:36:17,160 Speaker 1: to crunch time, they came in yesterday and just wanted 725 00:36:17,200 --> 00:36:19,720 Speaker 1: to take a look at the numbers because this whole 726 00:36:19,719 --> 00:36:24,680 Speaker 1: thing is turning from hypothetical into real now. And it 727 00:36:24,760 --> 00:36:28,560 Speaker 1: was an interesting meeting because the one thing I asked 728 00:36:28,640 --> 00:36:31,200 Speaker 1: them to do is take the next eighteen months and 729 00:36:31,440 --> 00:36:35,359 Speaker 1: really look hard and what they actually spend now that 730 00:36:35,400 --> 00:36:38,160 Speaker 1: the kids are through college and it's just the couple, 731 00:36:38,600 --> 00:36:41,240 Speaker 1: you know, we really wanted to find what their actual 732 00:36:41,320 --> 00:36:45,839 Speaker 1: lifestyle is and Brian, I get this response often. You know, 733 00:36:45,880 --> 00:36:49,040 Speaker 1: they're like, that requires a lot of work. We got 734 00:36:49,040 --> 00:36:51,600 Speaker 1: to track this and that and whatever. And then in 735 00:36:51,640 --> 00:36:55,360 Speaker 1: the next breath they're talking about something they call the 736 00:36:55,440 --> 00:36:58,759 Speaker 1: credit card game, where they they have two or three 737 00:36:58,760 --> 00:37:01,319 Speaker 1: credit cards, they pay them off every month, but they've 738 00:37:01,360 --> 00:37:04,920 Speaker 1: been playing this credit card points game where they they've 739 00:37:04,960 --> 00:37:10,480 Speaker 1: become experts, getting free meals at luxury restaurants, free flights, 740 00:37:10,840 --> 00:37:14,480 Speaker 1: you know, upgraded rooms on cruises. And my response is, 741 00:37:15,040 --> 00:37:18,440 Speaker 1: you guys are spending all this time and you've become 742 00:37:18,560 --> 00:37:22,200 Speaker 1: experts at playing the credit card points game, but you 743 00:37:22,280 --> 00:37:24,719 Speaker 1: won't take thirty minutes just to look at what you 744 00:37:24,800 --> 00:37:27,799 Speaker 1: actually spend every month. And kind of the you know, 745 00:37:27,840 --> 00:37:29,960 Speaker 1: they looked at me like, you know what, you're right, 746 00:37:30,040 --> 00:37:33,799 Speaker 1: we're kind of being you know, penny wise and pound foolish. Potentially, here, 747 00:37:34,360 --> 00:37:36,240 Speaker 1: the point I wanted to make is when we started 748 00:37:36,239 --> 00:37:40,640 Speaker 1: to look at subtle differences in spending up or down 749 00:37:40,719 --> 00:37:44,080 Speaker 1: when they retire, it makes a huge difference in the 750 00:37:44,200 --> 00:37:48,240 Speaker 1: viability of their long term retirement plan. And the meeting 751 00:37:48,360 --> 00:37:50,839 Speaker 1: ended with them agreeing with me that, yep, it does 752 00:37:50,920 --> 00:37:53,279 Speaker 1: make sense to take a look at this because we 753 00:37:53,440 --> 00:37:57,000 Speaker 1: don't want any surprises down the road, you know, by 754 00:37:57,080 --> 00:38:01,200 Speaker 1: going into retirement, assuming we're going to spend when we 755 00:38:01,280 --> 00:38:03,919 Speaker 1: really might end up spending. Why And that's a bad 756 00:38:04,000 --> 00:38:07,040 Speaker 1: time to make an adjustment after you've pulled the trigger 757 00:38:07,120 --> 00:38:10,799 Speaker 1: on retirement, Brian, any feedback? Did I do it right? 758 00:38:11,480 --> 00:38:13,200 Speaker 1: Do you have any other comments to add? 759 00:38:13,560 --> 00:38:15,440 Speaker 2: I think my favorite thing that you did there, which 760 00:38:15,520 --> 00:38:18,359 Speaker 2: is what we've spent and I need this myself every 761 00:38:18,400 --> 00:38:20,359 Speaker 2: now and then. Right, sometimes we're all too close to 762 00:38:20,440 --> 00:38:23,000 Speaker 2: our own to our own forest, and we keep staring 763 00:38:23,000 --> 00:38:25,239 Speaker 2: at these individual trees. One little thing in that case, 764 00:38:25,239 --> 00:38:27,279 Speaker 2: it was their credit card, and there's nothing wrong with that. 765 00:38:27,400 --> 00:38:28,440 Speaker 3: Look, I play I play. 766 00:38:28,280 --> 00:38:30,520 Speaker 2: Some credit card games myself just to get reward points 767 00:38:30,520 --> 00:38:31,920 Speaker 2: and all that kind of stuff. Got to pay the 768 00:38:31,920 --> 00:38:33,640 Speaker 2: bills anyway, might as well get paid to do it. 769 00:38:33,920 --> 00:38:36,000 Speaker 2: But you're gonna put that much energy into it and 770 00:38:36,040 --> 00:38:38,839 Speaker 2: ignore the other sides of your financial plan, then yeah, 771 00:38:38,880 --> 00:38:40,560 Speaker 2: you might need somebody to pull you back so you 772 00:38:40,560 --> 00:38:41,760 Speaker 2: can see the whole forest a limit. 773 00:38:41,760 --> 00:38:44,279 Speaker 1: So I think we all got a good chuckle out 774 00:38:44,280 --> 00:38:45,880 Speaker 1: of it. And these are smart people. They'll do the 775 00:38:45,960 --> 00:38:48,160 Speaker 1: right thing, all right. You're listening to Simply Money, presented 776 00:38:48,160 --> 00:38:51,719 Speaker 1: by all Worth Financial on fifty five KRC the talk 777 00:38:51,760 --> 00:38:52,040 Speaker 1: station