1 00:00:06,760 --> 00:00:10,320 Speaker 1: Tonight, how to keep the irs from becoming the biggest 2 00:00:10,360 --> 00:00:13,360 Speaker 1: heir of your estate. You're listening to simply money, because 3 00:00:13,360 --> 00:00:15,680 Speaker 1: that to buy all Worth Financial on Bob spun Seller 4 00:00:15,720 --> 00:00:19,800 Speaker 1: along with Brian James, trillions that's trillions with a T 5 00:00:20,560 --> 00:00:23,520 Speaker 1: are about to change hands over the next two decades. 6 00:00:23,560 --> 00:00:27,760 Speaker 1: It's the biggest wealth transfer in history. And here's the kicker, 7 00:00:27,840 --> 00:00:29,720 Speaker 1: A whole lot of it will not go to the 8 00:00:29,800 --> 00:00:34,000 Speaker 1: kids or the grandkids, or even to chosen charities. Too 9 00:00:34,080 --> 00:00:37,159 Speaker 1: much of it's gonna be going straight to Uncle Sam. 10 00:00:37,760 --> 00:00:40,640 Speaker 1: Walk us through some of the latest data from Vanguard 11 00:00:40,680 --> 00:00:42,000 Speaker 1: and Fidelity, Brian. 12 00:00:41,800 --> 00:00:44,280 Speaker 2: Well, Bob Let's first, let's kind of set some ground 13 00:00:44,360 --> 00:00:46,040 Speaker 2: rules here. What are we talking about with regard to 14 00:00:46,080 --> 00:00:49,120 Speaker 2: a state taxes? The stay taxes and things are are 15 00:00:49,159 --> 00:00:51,800 Speaker 2: not the scary things that you might think, right, A 16 00:00:51,800 --> 00:00:55,800 Speaker 2: lot of people simply assume that just because they've died, 17 00:00:56,080 --> 00:00:58,000 Speaker 2: they're gonna have to pay a stay tax. That's not 18 00:00:58,040 --> 00:01:00,680 Speaker 2: really the case. So the way this works now, about 19 00:01:00,680 --> 00:01:04,080 Speaker 2: twenty some years ago, under the first second Bush administration, 20 00:01:04,319 --> 00:01:08,479 Speaker 2: the estate taxes began to come down significantly in terms 21 00:01:08,520 --> 00:01:10,480 Speaker 2: of when they kick in. So as we're sitting here 22 00:01:10,520 --> 00:01:12,319 Speaker 2: right now you really need to have in the ballpark 23 00:01:12,360 --> 00:01:15,920 Speaker 2: of fourteen million dollars per individual person. You can basically 24 00:01:15,920 --> 00:01:19,080 Speaker 2: double that for a married couple before any of these 25 00:01:19,120 --> 00:01:21,720 Speaker 2: things are a problem. Now realizing that that doesn't affect 26 00:01:21,720 --> 00:01:22,880 Speaker 2: a lot of people out there, but there are some 27 00:01:22,920 --> 00:01:24,840 Speaker 2: people that it does. So we want to share information 28 00:01:24,880 --> 00:01:26,680 Speaker 2: for everybody to be useful. 29 00:01:26,800 --> 00:01:30,119 Speaker 1: So with the time, we're doing this segment to help 30 00:01:30,160 --> 00:01:32,640 Speaker 1: people like you, Brian, where this is going to come 31 00:01:32,680 --> 00:01:35,400 Speaker 1: into the mix. How to protect your one hundred million 32 00:01:35,400 --> 00:01:37,720 Speaker 1: dollars state. So walk us through how to do that. 33 00:01:37,959 --> 00:01:41,480 Speaker 2: Yes' let's talk exactly about how my wine and cheese 34 00:01:41,520 --> 00:01:44,120 Speaker 2: and champagne lifestyle is going to play out here when 35 00:01:44,160 --> 00:01:47,640 Speaker 2: I'm dead. It's of course, new research from Van Garden 36 00:01:47,680 --> 00:01:51,080 Speaker 2: Fidelity about seventy percent of families people with this is 37 00:01:51,120 --> 00:01:55,280 Speaker 2: a fluent families, which Fidelity defines as multiple millions, but 38 00:01:55,320 --> 00:01:58,160 Speaker 2: about seventy percent of them have not done advanced state planning. 39 00:01:58,200 --> 00:01:59,960 Speaker 2: That's going to keep more of that money in the family, 40 00:02:00,200 --> 00:02:03,320 Speaker 2: and that means billions or even trillions of dollars over 41 00:02:03,360 --> 00:02:06,320 Speaker 2: the next several decades can quietly slip away the taxes 42 00:02:06,360 --> 00:02:08,880 Speaker 2: that didn't have to be paid just because people thought 43 00:02:08,919 --> 00:02:11,000 Speaker 2: that having a will was the same as having a plan, 44 00:02:11,040 --> 00:02:13,320 Speaker 2: and it doesn't work that way, right, So you know, 45 00:02:13,480 --> 00:02:15,079 Speaker 2: one of the miss out there is of I've got 46 00:02:15,080 --> 00:02:16,640 Speaker 2: a will and that's all I need, you know, because 47 00:02:16,639 --> 00:02:18,240 Speaker 2: I know plenty of people don't have wills at all. 48 00:02:18,280 --> 00:02:19,880 Speaker 2: That's not me. I've got a will in place, so 49 00:02:19,919 --> 00:02:22,799 Speaker 2: that's all I need. A will only exists for one 50 00:02:22,800 --> 00:02:25,200 Speaker 2: moment in time. It just says who gets what, and 51 00:02:25,280 --> 00:02:28,240 Speaker 2: it guarantees that these assets are going to go through probate, 52 00:02:28,720 --> 00:02:31,520 Speaker 2: because probate is the act of reading a will and 53 00:02:31,560 --> 00:02:33,360 Speaker 2: that and the government has to be involved in that 54 00:02:33,400 --> 00:02:34,840 Speaker 2: the way the laws work. So that's why you have 55 00:02:34,919 --> 00:02:36,560 Speaker 2: to go through the county to get it, got to 56 00:02:36,560 --> 00:02:38,679 Speaker 2: pay an attorney to do it, so on and so forth. 57 00:02:38,760 --> 00:02:41,440 Speaker 2: It doesn't say how this stuff is distributed or when 58 00:02:42,040 --> 00:02:43,920 Speaker 2: or even how much of it the irs gets. A 59 00:02:43,960 --> 00:02:46,960 Speaker 2: will is just a legal document that puts names on assets. 60 00:02:47,160 --> 00:02:50,320 Speaker 2: An estate plan, however, is a strategy and that can 61 00:02:50,320 --> 00:02:52,440 Speaker 2: bring in that can bring in time, It can bring 62 00:02:52,440 --> 00:02:55,480 Speaker 2: in methods of distribution. It can assign people who are 63 00:02:55,480 --> 00:02:58,200 Speaker 2: in charge over time to make make sure these things 64 00:02:58,200 --> 00:03:00,360 Speaker 2: are distributed. And this is all things that kick in 65 00:03:00,480 --> 00:03:03,040 Speaker 2: after you have passed, but you're still able to kind 66 00:03:03,040 --> 00:03:06,280 Speaker 2: of pull the strings because you took these these steps 67 00:03:06,360 --> 00:03:09,720 Speaker 2: before your death. Most people never actually take that second 68 00:03:09,720 --> 00:03:12,040 Speaker 2: step of figuring out, Okay, I've got my will and 69 00:03:12,080 --> 00:03:14,680 Speaker 2: now in my name beneficiaries and my accounts. They just 70 00:03:14,720 --> 00:03:17,240 Speaker 2: assume their lawyer or their financial advisor has already taken 71 00:03:17,280 --> 00:03:19,240 Speaker 2: care of it for them, simply because they had a 72 00:03:19,240 --> 00:03:22,040 Speaker 2: brief conversation about it. But the truth is, Bob, if 73 00:03:22,080 --> 00:03:24,839 Speaker 2: you haven't set up things like trusts or gifting strategies 74 00:03:25,200 --> 00:03:27,959 Speaker 2: or used your lifetime exemptions and you're in this window 75 00:03:28,160 --> 00:03:31,240 Speaker 2: of pretty significant wealth, then you've basically written a tax 76 00:03:31,280 --> 00:03:34,160 Speaker 2: plan as opposed to an estate plan that you didn't 77 00:03:34,200 --> 00:03:36,800 Speaker 2: mean to. In the irs, they're waiting there, of course, 78 00:03:37,120 --> 00:03:39,840 Speaker 2: with baited breath, just just waiting to collect your dollars 79 00:03:39,880 --> 00:03:40,440 Speaker 2: when you pass. 80 00:03:41,680 --> 00:03:44,200 Speaker 1: Most of the time, when we get into estates that 81 00:03:44,240 --> 00:03:46,800 Speaker 1: are as large as ones that are going to be 82 00:03:46,840 --> 00:03:50,000 Speaker 1: impacted by federal inheritance taxes. I mean, let's face it, 83 00:03:50,040 --> 00:03:52,840 Speaker 1: in today's world, it's thirty million dollars in up. A 84 00:03:52,880 --> 00:03:55,880 Speaker 1: lot of times these people are business owners. They've built 85 00:03:55,960 --> 00:03:58,920 Speaker 1: large businesses, and so you know, you got to get 86 00:03:58,960 --> 00:04:01,240 Speaker 1: into strategies in This is where it's important to sit 87 00:04:01,280 --> 00:04:03,640 Speaker 1: down and do a financial plan and figure out how 88 00:04:03,720 --> 00:04:06,960 Speaker 1: much money do you need? And it might seem laughable 89 00:04:07,000 --> 00:04:09,000 Speaker 1: to some like you know you can't get buying on 90 00:04:09,080 --> 00:04:13,080 Speaker 1: thirty million dollars. Well most people can obviously, but you 91 00:04:13,160 --> 00:04:15,800 Speaker 1: want to find that sweet spot on how much money 92 00:04:15,800 --> 00:04:19,039 Speaker 1: do we need or want to retain control over during 93 00:04:19,080 --> 00:04:22,760 Speaker 1: our life our lifetime to fund what we want to do, 94 00:04:23,400 --> 00:04:25,719 Speaker 1: and then look at other things like how do I 95 00:04:25,800 --> 00:04:29,520 Speaker 1: minimize the tax bill by doing you know, charitable giving, 96 00:04:29,800 --> 00:04:33,400 Speaker 1: you know, with the maximum maximum tax advantage as possible, 97 00:04:33,480 --> 00:04:36,680 Speaker 1: things like charitable remainder trust and then if you if 98 00:04:36,680 --> 00:04:39,120 Speaker 1: you want to get your children involved or other people 99 00:04:39,120 --> 00:04:41,680 Speaker 1: involved in the business. You know, the key thing here 100 00:04:41,800 --> 00:04:45,520 Speaker 1: is taking advantage of things called minority discounts. It makes 101 00:04:45,560 --> 00:04:51,320 Speaker 1: sense to do some gifting responsibly during your lifetime, shelling 102 00:04:51,360 --> 00:04:54,240 Speaker 1: out assets to other people that are going to inherit 103 00:04:54,720 --> 00:04:59,320 Speaker 1: this business or asset anyway, but being willing to part 104 00:04:59,360 --> 00:05:02,039 Speaker 1: with some of it during your lifetime and getting those 105 00:05:02,120 --> 00:05:06,440 Speaker 1: minority discounts up front can really make a huge difference 106 00:05:06,480 --> 00:05:09,600 Speaker 1: down the road. In the estate taxes you will have 107 00:05:09,680 --> 00:05:12,240 Speaker 1: to pay, but you got to be proactive about it. 108 00:05:12,279 --> 00:05:15,000 Speaker 1: You got to set you know, firm goals in place. 109 00:05:15,279 --> 00:05:18,160 Speaker 1: You got to communicate with family members and you get 110 00:05:18,240 --> 00:05:21,960 Speaker 1: you got to sit down with good advisors, a financial advisor, 111 00:05:22,520 --> 00:05:26,320 Speaker 1: a fiduciary advisor, a CPA, and an attorney to work 112 00:05:26,320 --> 00:05:29,279 Speaker 1: together to craft these kind of strategies because they do 113 00:05:29,360 --> 00:05:33,560 Speaker 1: get complicated, they can seem expensive, and sometimes they are, 114 00:05:34,160 --> 00:05:36,800 Speaker 1: but it comes down to the value added in the end, 115 00:05:36,920 --> 00:05:41,440 Speaker 1: because uh, millions of dollars in estate taxes can be avoided. 116 00:05:41,960 --> 00:05:45,120 Speaker 1: And I've seen this happen myself, Brian. I've worked with 117 00:05:45,200 --> 00:05:48,320 Speaker 1: business owners to you know, with these other advisors to 118 00:05:48,400 --> 00:05:51,240 Speaker 1: see this, see this all come to light. You got 119 00:05:51,279 --> 00:05:53,279 Speaker 1: to be proactive and get out in front of this 120 00:05:53,440 --> 00:05:57,479 Speaker 1: early because the longer you wait, you know, the problem 121 00:05:57,600 --> 00:06:01,599 Speaker 1: just compounds and it could become a tax nightmare down 122 00:06:01,640 --> 00:06:01,960 Speaker 1: the road. 123 00:06:02,560 --> 00:06:04,320 Speaker 2: So that's why, So how do we get this right? 124 00:06:04,360 --> 00:06:06,000 Speaker 2: What are the tools that are out there? Well, this 125 00:06:06,040 --> 00:06:09,520 Speaker 2: is where things like life insurance, charitable giving strategies or 126 00:06:09,560 --> 00:06:11,800 Speaker 2: trusts come into play. And you're gonna run across a 127 00:06:11,839 --> 00:06:14,480 Speaker 2: lot of acronyms. Tools like slats s l A T, 128 00:06:14,680 --> 00:06:17,760 Speaker 2: which stands for spousal lifetime access trust or maybe a 129 00:06:17,839 --> 00:06:21,440 Speaker 2: dynasty trust, charitable reinder trusts. These can make a huge 130 00:06:21,480 --> 00:06:24,719 Speaker 2: difference in what's ultimately getting taxed here. Now, again, these 131 00:06:24,720 --> 00:06:27,800 Speaker 2: are for these are situations where we've got a significant 132 00:06:27,800 --> 00:06:30,320 Speaker 2: amount of dollars. So, yes, there are expenses in setting 133 00:06:30,320 --> 00:06:32,840 Speaker 2: these up. There are legal expenses involved, there are expenses 134 00:06:32,839 --> 00:06:35,000 Speaker 2: for insurance and all that kind of thing. But these 135 00:06:35,040 --> 00:06:38,960 Speaker 2: are the kind of tools for very specific advanced planning strategies, 136 00:06:39,440 --> 00:06:41,520 Speaker 2: which is what you need at this dollar amount if 137 00:06:41,560 --> 00:06:43,560 Speaker 2: you truly want it to be efficient. If the you know, 138 00:06:43,720 --> 00:06:46,239 Speaker 2: I think it could be a we have a tendency 139 00:06:46,279 --> 00:06:48,320 Speaker 2: sometimes to be a bit penny wise and pound foolish 140 00:06:48,360 --> 00:06:49,640 Speaker 2: in terms of I don't want to pay a lawyer 141 00:06:49,680 --> 00:06:51,960 Speaker 2: and accountant, you know, these extra dollars just to set 142 00:06:52,000 --> 00:06:53,680 Speaker 2: all this stuff up. But you got to make sure 143 00:06:53,800 --> 00:06:56,400 Speaker 2: you understand what you're sacrificing. If you don't, there will 144 00:06:56,440 --> 00:06:58,360 Speaker 2: be an impact in terms of what the bill when 145 00:06:58,360 --> 00:07:01,240 Speaker 2: the bill comes due on your beneficiary after you're gone 146 00:07:01,279 --> 00:07:03,400 Speaker 2: and can't do anything about it. So you want to 147 00:07:03,440 --> 00:07:06,360 Speaker 2: make sure that you you've put the time into understanding 148 00:07:06,400 --> 00:07:09,440 Speaker 2: these things. And you know, we spend a lot of 149 00:07:09,440 --> 00:07:12,320 Speaker 2: time picking investments, Bob Right, we looked to agonize over 150 00:07:12,360 --> 00:07:14,080 Speaker 2: what am I going to invest in? You know, but 151 00:07:14,200 --> 00:07:16,560 Speaker 2: we avoid this estate stuff for years because it's an 152 00:07:16,640 --> 00:07:18,960 Speaker 2: uncomfortable thing to think about. Nobody wants to think about 153 00:07:19,000 --> 00:07:21,440 Speaker 2: their own death or worry about their you know, what's 154 00:07:21,480 --> 00:07:23,360 Speaker 2: going to happen to their kids. But would you rather 155 00:07:23,400 --> 00:07:26,360 Speaker 2: have that conversation now, when you've got time and energy 156 00:07:26,360 --> 00:07:29,160 Speaker 2: to build, to build a solution for it, or dump 157 00:07:29,160 --> 00:07:30,760 Speaker 2: it in the lap of your heirs who may not 158 00:07:30,840 --> 00:07:33,320 Speaker 2: be prepared to have done it after losing forty percent 159 00:07:33,360 --> 00:07:35,120 Speaker 2: of what you built to the irs. 160 00:07:35,480 --> 00:07:37,800 Speaker 1: Yeah, and just taking the whole tax thing off the 161 00:07:37,840 --> 00:07:40,640 Speaker 1: table for a moment. What really needs to happen, too 162 00:07:40,760 --> 00:07:43,880 Speaker 1: is just communication among the family members. And I could 163 00:07:43,880 --> 00:07:46,000 Speaker 1: think of a situation that you know, I helped a 164 00:07:46,040 --> 00:07:49,080 Speaker 1: client work through earlier this year, where again it was 165 00:07:49,120 --> 00:07:53,400 Speaker 1: a business situation. There's not any federal state taxes involved here, 166 00:07:53,760 --> 00:07:57,360 Speaker 1: but it is still a very large estate. And this 167 00:07:57,360 --> 00:07:59,480 Speaker 1: this husband and wife came in and they had not 168 00:07:59,760 --> 00:08:02,960 Speaker 1: yet work through who's going to get the business and 169 00:08:03,040 --> 00:08:06,120 Speaker 1: when and how are we going to equalize things for 170 00:08:06,200 --> 00:08:09,720 Speaker 1: our other children that we want to treat fairly, and 171 00:08:09,800 --> 00:08:13,800 Speaker 1: it's a difficult, delicate, you know matter, and sometimes the 172 00:08:14,000 --> 00:08:18,040 Speaker 1: kids could try to manipulate mom and dad into thinking, well, 173 00:08:18,120 --> 00:08:20,160 Speaker 1: I deserve this or that because I work in the 174 00:08:20,200 --> 00:08:23,160 Speaker 1: business or what have you. These people when they came 175 00:08:23,200 --> 00:08:25,800 Speaker 1: in had not thought about any of that kind of stuff, 176 00:08:26,320 --> 00:08:29,320 Speaker 1: and I was able to bring in a very good, 177 00:08:29,360 --> 00:08:32,240 Speaker 1: trusted attorney that I've worked with for years. We had 178 00:08:32,240 --> 00:08:35,760 Speaker 1: some very candid conversations and we were to work out 179 00:08:35,800 --> 00:08:40,080 Speaker 1: a very good plan where you know, again, taxes weren't 180 00:08:40,120 --> 00:08:44,079 Speaker 1: an issue. The issue was communication and building a plan. 181 00:08:44,240 --> 00:08:47,679 Speaker 1: So everybody feels good about what's going to happen, and 182 00:08:47,720 --> 00:08:50,319 Speaker 1: they know what's going to happen when mom and dad 183 00:08:50,360 --> 00:08:55,000 Speaker 1: pass away, and you know, all the money stuff aside, 184 00:08:55,120 --> 00:08:59,920 Speaker 1: it's gonna I think, prevent some family discord and misunderstand 185 00:09:00,280 --> 00:09:03,800 Speaker 1: and hurt feelings once mom and dad do pass away, 186 00:09:04,360 --> 00:09:07,000 Speaker 1: and you know, that kind of stuff's worth way more 187 00:09:07,200 --> 00:09:09,920 Speaker 1: than money most of the time, at least in my opinion. 188 00:09:09,960 --> 00:09:12,040 Speaker 2: Brian, Yeah, I would agree, And I'm thinking of a 189 00:09:12,080 --> 00:09:14,359 Speaker 2: story as you're talking through that some of the unpredictable 190 00:09:14,400 --> 00:09:16,480 Speaker 2: things that can happen when in a state gets settled 191 00:09:16,679 --> 00:09:19,080 Speaker 2: so I had a situation a few years ago where 192 00:09:20,280 --> 00:09:22,520 Speaker 2: everybody was pretty well aware where all the assets were. 193 00:09:22,600 --> 00:09:25,200 Speaker 2: That part was communicated pretty clearly across the family. But 194 00:09:25,240 --> 00:09:28,080 Speaker 2: what wasn't known is that one of the spouses had 195 00:09:28,120 --> 00:09:29,880 Speaker 2: run up a bunch of debt, a bit of a 196 00:09:29,920 --> 00:09:32,160 Speaker 2: gambling problem out there as well, as you know, I 197 00:09:32,240 --> 00:09:33,840 Speaker 2: feel like it sort of came from a little bit 198 00:09:33,840 --> 00:09:36,680 Speaker 2: of lifestyle create plenty of money floating around, lots of 199 00:09:36,720 --> 00:09:40,080 Speaker 2: ability to do kind of whatever they wanted, and I 200 00:09:40,120 --> 00:09:42,320 Speaker 2: think this one spouse just took advantage of that and 201 00:09:42,400 --> 00:09:44,719 Speaker 2: just really got sucked into the idea that I can 202 00:09:44,800 --> 00:09:46,480 Speaker 2: just go out and buy whatever I want and we'll 203 00:09:46,520 --> 00:09:49,199 Speaker 2: just finance all this stuff. And again the gambling problem 204 00:09:49,280 --> 00:09:52,520 Speaker 2: and all that. Well, the good news about that once 205 00:09:52,640 --> 00:09:55,160 Speaker 2: the initial shock war off of oh my gosh, you know, 206 00:09:55,200 --> 00:09:57,160 Speaker 2: you know, this person wasn't quite what we thought they were, 207 00:09:57,160 --> 00:09:59,719 Speaker 2: and that's painful. Anyway, set the money aside, but kind 208 00:09:59,720 --> 00:10:01,839 Speaker 2: of learned about some of these, you know, skeletons in 209 00:10:01,880 --> 00:10:04,040 Speaker 2: the closet. The best part about that, Bob, was the 210 00:10:04,040 --> 00:10:06,760 Speaker 2: heirs didn't have to pay for it because the surviving 211 00:10:06,800 --> 00:10:09,440 Speaker 2: spouse was not aware of it. That person's name was 212 00:10:09,480 --> 00:10:12,920 Speaker 2: not on any of these debts. And when the individual 213 00:10:12,960 --> 00:10:16,360 Speaker 2: passed away, while the credit the creditors did, of course 214 00:10:16,400 --> 00:10:18,320 Speaker 2: come looking for it, as you can expect they would, 215 00:10:18,520 --> 00:10:22,280 Speaker 2: the surviving spouse was not liable for those debts. And 216 00:10:22,400 --> 00:10:24,600 Speaker 2: while while they were, you know, that person really wanted 217 00:10:24,640 --> 00:10:26,320 Speaker 2: to just kind of set things up and make everything 218 00:10:26,320 --> 00:10:27,959 Speaker 2: clean and keep it nice and neat, and they were 219 00:10:27,960 --> 00:10:31,199 Speaker 2: ready to write significant, big checks for these debts that 220 00:10:31,240 --> 00:10:33,720 Speaker 2: they didn't even know existed. But they didn't have to 221 00:10:33,760 --> 00:10:36,040 Speaker 2: because what they were not marital debts. They were just 222 00:10:36,080 --> 00:10:38,199 Speaker 2: the debts of the deceased, and the credit card companies 223 00:10:38,240 --> 00:10:40,160 Speaker 2: had to write them off. So these are the kind 224 00:10:40,160 --> 00:10:42,400 Speaker 2: of things if you take a breath and you understand 225 00:10:42,400 --> 00:10:44,360 Speaker 2: how it works, and this is what professionals can help 226 00:10:44,400 --> 00:10:47,280 Speaker 2: you understand in terms of, you know, to take care 227 00:10:47,320 --> 00:10:49,040 Speaker 2: of what you need to, what you're obligated to, but 228 00:10:49,120 --> 00:10:51,480 Speaker 2: also understand what you're not. You're not on the hook 229 00:10:51,520 --> 00:10:54,839 Speaker 2: for absolutely everything, whether whether even though it might feel 230 00:10:54,880 --> 00:10:57,040 Speaker 2: like you should be in that particular case. So that 231 00:10:57,120 --> 00:10:58,280 Speaker 2: was one of that was one of the times where 232 00:10:58,280 --> 00:11:00,240 Speaker 2: I really felt like I went home that day like 233 00:11:00,240 --> 00:11:02,199 Speaker 2: we did a good job today helping this person understand 234 00:11:02,200 --> 00:11:03,319 Speaker 2: what they do not have to do. 235 00:11:03,679 --> 00:11:06,240 Speaker 1: Yeah, I'm sure you did. All right. Here's the Allworth advice. 236 00:11:06,320 --> 00:11:09,120 Speaker 1: If you haven't yet, could taken control of your estate 237 00:11:09,200 --> 00:11:13,760 Speaker 1: planning strategy, especially as that net worth is really really climbing. 238 00:11:14,280 --> 00:11:18,079 Speaker 1: Get on it now, don't don't procrastinate, don't put it off, 239 00:11:18,559 --> 00:11:21,360 Speaker 1: and especially when it comes to a looming tax bill. 240 00:11:22,040 --> 00:11:25,520 Speaker 1: If you don't have a strategy, someone else definitely has one. 241 00:11:25,640 --> 00:11:28,240 Speaker 1: And his name is Uncle Sam and he does not 242 00:11:28,480 --> 00:11:32,280 Speaker 1: miss a deadline. Coming up next, changes are coming to 243 00:11:32,679 --> 00:11:36,120 Speaker 1: health Save these accounts in twenty twenty six, plus one 244 00:11:36,240 --> 00:11:41,400 Speaker 1: airline's latest move that'll have travelers literally sitting up and 245 00:11:41,440 --> 00:11:44,560 Speaker 1: taking notice. You're listening to Simply Money presented by Allworth 246 00:11:44,559 --> 00:11:53,040 Speaker 1: Financial on fifty five KRC the talk station. You're listening 247 00:11:53,040 --> 00:11:56,119 Speaker 1: to Simply Money presented by Allworth Financial. I'm Bob Sponseller 248 00:11:56,120 --> 00:11:59,439 Speaker 1: along with Brian James straight Ahead of six forty three 249 00:11:59,559 --> 00:12:02,920 Speaker 1: What did you after selling a business? How to balance 250 00:12:02,960 --> 00:12:06,960 Speaker 1: a pension with an investment portfolio, and the smart way 251 00:12:07,000 --> 00:12:11,240 Speaker 1: to think about rental properties. Starting in twenty twenty six, 252 00:12:11,480 --> 00:12:14,840 Speaker 1: millions more Americans will be able to tap into health 253 00:12:14,880 --> 00:12:18,679 Speaker 1: savings accounts not just for medical bills, but as a 254 00:12:18,800 --> 00:12:24,480 Speaker 1: stealth retirement weapon. If you think your plan currently disqualifies 255 00:12:24,559 --> 00:12:28,120 Speaker 1: you listen closely, Brian. This has the potential to help 256 00:12:28,160 --> 00:12:28,760 Speaker 1: a lot of folks. 257 00:12:29,440 --> 00:12:31,720 Speaker 2: Yeah, So what we're talking about here is bronze and 258 00:12:31,840 --> 00:12:35,760 Speaker 2: catastrophic plans on the Affordable health Care marketplace Affordable Care 259 00:12:35,800 --> 00:12:39,840 Speaker 2: Act marketplace plans that didn't previously qualify for health savings 260 00:12:39,880 --> 00:12:42,760 Speaker 2: accounts are now going to become HSA eligible. And again, 261 00:12:42,840 --> 00:12:44,800 Speaker 2: this is a good thing because, as we always talk about, 262 00:12:44,840 --> 00:12:48,280 Speaker 2: we love hsas because they can be triple tax free, 263 00:12:48,400 --> 00:12:51,000 Speaker 2: no tax when you put the dollars in, and no 264 00:12:51,160 --> 00:12:53,439 Speaker 2: tax on the growth. Important staff I always want to 265 00:12:53,440 --> 00:12:55,280 Speaker 2: say this, you've got to get it invested in something. 266 00:12:55,320 --> 00:12:57,720 Speaker 2: Most of the time, when your employer offers you an HSA, 267 00:12:58,040 --> 00:13:00,920 Speaker 2: it's going to be go into some simple bank account 268 00:13:00,960 --> 00:13:02,640 Speaker 2: what doesn't have a lot of options. You do not 269 00:13:02,760 --> 00:13:05,400 Speaker 2: not not have to keep those dollars there. That might 270 00:13:05,440 --> 00:13:07,880 Speaker 2: be where they land initially, but you can move them 271 00:13:07,880 --> 00:13:10,800 Speaker 2: to different places. If you want to benefit from all 272 00:13:10,840 --> 00:13:14,360 Speaker 2: three phases of the tax benefits there, you've got to 273 00:13:14,400 --> 00:13:17,640 Speaker 2: get those dollars invested in something. And the third facet 274 00:13:17,679 --> 00:13:20,160 Speaker 2: of that is when you pull those dollars out, if 275 00:13:20,200 --> 00:13:22,360 Speaker 2: they are used for healthcare expenses, then they're going to 276 00:13:22,400 --> 00:13:24,880 Speaker 2: come out tax free as well. That's triple tax free, 277 00:13:25,400 --> 00:13:27,880 Speaker 2: not before, not during, and not after. And then one 278 00:13:27,880 --> 00:13:30,640 Speaker 2: more cool trick with HSA is, Bob, you can pay 279 00:13:30,679 --> 00:13:33,280 Speaker 2: your medical bills. Your current expense is out of pocket 280 00:13:33,360 --> 00:13:36,439 Speaker 2: right now, ignore that HSA. Just keep funding it, let 281 00:13:36,480 --> 00:13:38,719 Speaker 2: it grow over time, and then you can pull out 282 00:13:38,760 --> 00:13:41,800 Speaker 2: those receipts fifteen twenty years later and then take the 283 00:13:41,800 --> 00:13:45,080 Speaker 2: distribution for a tax free benefit off of expenses that 284 00:13:45,120 --> 00:13:47,920 Speaker 2: you encurreg twenty years before. So that's what an HSA 285 00:13:48,040 --> 00:13:49,559 Speaker 2: does for us. And you're going to be able to 286 00:13:49,640 --> 00:13:52,560 Speaker 2: use that more and more because there are more plans 287 00:13:52,800 --> 00:13:55,560 Speaker 2: on the ACA marketplace that are going to be eligible 288 00:13:55,559 --> 00:13:56,080 Speaker 2: for it too. 289 00:13:57,400 --> 00:14:00,240 Speaker 1: All right, And for twenty twenty six, the IRS has 290 00:14:00,280 --> 00:14:03,920 Speaker 1: now officially set the contribution limits and they've gone up 291 00:14:04,120 --> 00:14:06,920 Speaker 1: one hundred dollars a year for an individual. It was 292 00:14:06,960 --> 00:14:10,240 Speaker 1: forty four hundred dollars a year or forty three hundred 293 00:14:10,280 --> 00:14:13,280 Speaker 1: dollars a year this year twenty twenty five, that's going 294 00:14:13,520 --> 00:14:16,240 Speaker 1: going up to four thousand, four hundred dollars a year 295 00:14:16,360 --> 00:14:19,920 Speaker 1: for twenty twenty six, and the family plan is going 296 00:14:20,000 --> 00:14:22,680 Speaker 1: up by two hundred dollars from the eight thousand and 297 00:14:22,760 --> 00:14:27,320 Speaker 1: seven fifty for twenty twenty five. I'm sorry, eight thousand, 298 00:14:27,440 --> 00:14:29,960 Speaker 1: five hundred and fifty for twenty twenty five, and it's 299 00:14:30,000 --> 00:14:33,040 Speaker 1: going to be eight thousand, seven hundred and fifty for 300 00:14:33,480 --> 00:14:36,560 Speaker 1: twenty twenty six. So the IRS is allowing us to 301 00:14:36,760 --> 00:14:39,920 Speaker 1: even put more money away in these things. Brian, My 302 00:14:40,080 --> 00:14:42,560 Speaker 1: question is how many people are going to be able 303 00:14:42,560 --> 00:14:45,360 Speaker 1: to take advantage of this. I mean, if someone's out 304 00:14:45,400 --> 00:14:50,240 Speaker 1: there on an ACA marketplace subsidized healthcare plan, are do 305 00:14:50,320 --> 00:14:53,920 Speaker 1: they have the discretionary income to even be thinking about 306 00:14:53,960 --> 00:14:56,520 Speaker 1: an HSA or does this you think this is going 307 00:14:56,560 --> 00:14:57,760 Speaker 1: to apply to a lot of people. 308 00:14:58,000 --> 00:15:00,520 Speaker 2: It's it's it's a narrowing window of people, for sure. 309 00:15:00,520 --> 00:15:03,360 Speaker 2: I mean you really really if you're thinking of the 310 00:15:03,560 --> 00:15:06,520 Speaker 2: HSA as as a you know, a tax benefit investment 311 00:15:06,560 --> 00:15:08,400 Speaker 2: type account, yeah, you do have to have the extra 312 00:15:08,440 --> 00:15:10,040 Speaker 2: dollars available to set aside. 313 00:15:10,440 --> 00:15:10,680 Speaker 1: Uh. 314 00:15:10,760 --> 00:15:12,880 Speaker 2: And you know some people do consider the idea of 315 00:15:12,960 --> 00:15:14,640 Speaker 2: maybe I want to reduce my four oh one K 316 00:15:14,760 --> 00:15:17,080 Speaker 2: so they can route money over to the HSA. That's 317 00:15:17,160 --> 00:15:19,280 Speaker 2: not a terrible idea. Just make sure you're not doing it. 318 00:15:19,560 --> 00:15:21,600 Speaker 2: Make sure you're still getting that full match on the 319 00:15:21,600 --> 00:15:23,720 Speaker 2: four oh one K side, and make sure you're not 320 00:15:23,720 --> 00:15:25,320 Speaker 2: going to use those dollars if you really want to 321 00:15:25,360 --> 00:15:27,720 Speaker 2: benefit from the investment side, make sure you're setting this 322 00:15:27,840 --> 00:15:30,120 Speaker 2: up in a manner where you can let those dollars 323 00:15:30,160 --> 00:15:31,800 Speaker 2: go and let them grow. Otherwise you're not going to 324 00:15:31,840 --> 00:15:34,760 Speaker 2: benefit fully from the tax advantages. You could simply use 325 00:15:34,760 --> 00:15:36,680 Speaker 2: your four oh one k for that. So, yeah, I 326 00:15:36,960 --> 00:15:38,920 Speaker 2: do think it a lot of times we get very 327 00:15:38,920 --> 00:15:40,920 Speaker 2: excited about these different things and lose sight of the 328 00:15:40,920 --> 00:15:43,080 Speaker 2: fact that it doesn't help everybody. If the cash flow 329 00:15:43,120 --> 00:15:44,840 Speaker 2: isn't there, then it's just not there. 330 00:15:45,360 --> 00:15:49,040 Speaker 1: Yep. All right. Hey, just when you thought airlines couldn't 331 00:15:49,040 --> 00:15:53,720 Speaker 1: squeeze another penny out of our flight experience, Canadian airline 332 00:15:53,880 --> 00:15:59,480 Speaker 1: WestJet has introduced a brand new charge, and this is 333 00:15:59,520 --> 00:16:03,520 Speaker 1: not a misprint, a fee to recline your seat. The 334 00:16:03,600 --> 00:16:06,320 Speaker 1: seats in question are now they're on their new Boeing 335 00:16:06,480 --> 00:16:11,240 Speaker 1: seven thirty seven Max eight airplanes in west Jets west 336 00:16:11,320 --> 00:16:15,040 Speaker 1: jets new standard fare class. The seats will only recline 337 00:16:15,880 --> 00:16:17,960 Speaker 1: if you pay an extra fee before you get on 338 00:16:18,000 --> 00:16:20,760 Speaker 1: the plane, Brian. So they've got this thing wired up 339 00:16:20,840 --> 00:16:23,920 Speaker 1: somehow where if you hit the button, the seat won't 340 00:16:23,960 --> 00:16:26,240 Speaker 1: even move if you haven't paid to do it. 341 00:16:27,680 --> 00:16:29,280 Speaker 2: You know, some some crazy day. 342 00:16:29,680 --> 00:16:33,000 Speaker 1: Yeah, what did they spend to wire these seats to 343 00:16:33,080 --> 00:16:36,320 Speaker 1: do all this fancy electronics? And are they even recouping 344 00:16:36,360 --> 00:16:38,800 Speaker 1: that cost with the you know, the reclined fee. 345 00:16:38,840 --> 00:16:41,400 Speaker 2: It's crazy, right, and I got it. And I can 346 00:16:41,440 --> 00:16:44,280 Speaker 2: just picture the room full of nbas who ran spreadsheets 347 00:16:44,280 --> 00:16:46,800 Speaker 2: looking at absolutely every tiny little experience that happens on 348 00:16:46,840 --> 00:16:50,840 Speaker 2: a plane and levying a menu of charges against all 349 00:16:50,880 --> 00:16:53,920 Speaker 2: of the different things. You know, So next is going 350 00:16:53,960 --> 00:16:55,760 Speaker 2: to be pay toilets in the airplanes? Is that where 351 00:16:55,800 --> 00:16:57,560 Speaker 2: we're going with It? Wouldn't shock me in the least 352 00:16:57,600 --> 00:17:00,680 Speaker 2: at all. But so this is just more of the 353 00:17:00,720 --> 00:17:02,640 Speaker 2: same that we keep seeing from the airline industry as 354 00:17:02,640 --> 00:17:04,679 Speaker 2: they're just trying to squeeze every last bit of profit 355 00:17:04,720 --> 00:17:07,439 Speaker 2: from every last little corner of that airplane at this 356 00:17:07,480 --> 00:17:08,920 Speaker 2: at this rate, the only the only thing free on 357 00:17:09,000 --> 00:17:11,200 Speaker 2: a flight's gonna be the the air that already went 358 00:17:11,240 --> 00:17:13,359 Speaker 2: through ten sets of lungs that you're now breathing in. 359 00:17:13,359 --> 00:17:16,320 Speaker 2: There's gonna be a charge for that too. Eventually, I guess. 360 00:17:16,320 --> 00:17:19,439 Speaker 1: All right, every Sunday you'll find our all Worth Advice 361 00:17:19,680 --> 00:17:23,600 Speaker 1: in the Cincinnati Inquire And here is a preview. Brian 362 00:17:23,680 --> 00:17:27,399 Speaker 1: Off tossed this one to you. R W in Cincinnati says, 363 00:17:27,480 --> 00:17:29,639 Speaker 1: I make about two hundred thousand dollars a year, and 364 00:17:29,720 --> 00:17:32,919 Speaker 1: I know I'm fortunate compared to most, but I'm still 365 00:17:32,960 --> 00:17:36,399 Speaker 1: worried about money. And yes, I even still have credit 366 00:17:36,440 --> 00:17:40,399 Speaker 1: card debt. Does this feeling ever go away? Do I 367 00:17:40,600 --> 00:17:43,360 Speaker 1: just need to try and keep earning more? What's your 368 00:17:43,400 --> 00:17:46,120 Speaker 1: advice to good old RW Brian Well. 369 00:17:45,960 --> 00:17:47,919 Speaker 2: I would say, r W, I kind of wonder if you, 370 00:17:48,359 --> 00:17:50,000 Speaker 2: if you have you done a budget, do you know 371 00:17:50,080 --> 00:17:52,200 Speaker 2: where the money is going? If you have credit card 372 00:17:52,200 --> 00:17:53,960 Speaker 2: debt and you're making it, you know, a good six 373 00:17:54,000 --> 00:17:56,040 Speaker 2: digit income and there's still credit card debt out there? 374 00:17:56,119 --> 00:17:58,679 Speaker 2: Is that old stuff left over from the past or 375 00:17:58,800 --> 00:18:02,239 Speaker 2: is it new debt that's coming on because because the 376 00:18:02,280 --> 00:18:04,760 Speaker 2: INDs are not meeting the outs in terms of cash flow. 377 00:18:05,040 --> 00:18:07,159 Speaker 2: So I would look look really hard at that and 378 00:18:07,160 --> 00:18:10,000 Speaker 2: then put prioritize those credit cards. I mean, whatever payments 379 00:18:10,000 --> 00:18:12,520 Speaker 2: you're making, hopefully you are making payments on those, but 380 00:18:12,560 --> 00:18:14,359 Speaker 2: if there's any kind of balance. I'm gonna go ahead 381 00:18:14,359 --> 00:18:16,600 Speaker 2: and guess you're probably paying twenty five, twenty seven, twenty 382 00:18:16,600 --> 00:18:19,560 Speaker 2: eight percent for the privilege of owing a bank money. 383 00:18:19,800 --> 00:18:21,960 Speaker 2: So that is the biggest hole in your bucket. So 384 00:18:22,040 --> 00:18:24,399 Speaker 2: attack that first and foremost. You know it needs to 385 00:18:24,400 --> 00:18:28,399 Speaker 2: go away. Don't get paralysis by analysis and agonize about 386 00:18:28,440 --> 00:18:30,639 Speaker 2: you know, the other ten financial things you're thinking about. 387 00:18:30,760 --> 00:18:33,040 Speaker 2: The biggest hole in your bucket is that credit card debt. 388 00:18:33,160 --> 00:18:35,600 Speaker 2: Prioritize that, make it go away, and then figure out, 389 00:18:35,640 --> 00:18:38,199 Speaker 2: once you've done that, what can those the payments you've 390 00:18:38,240 --> 00:18:40,040 Speaker 2: been making toward that credit card? What is the next 391 00:18:40,040 --> 00:18:43,040 Speaker 2: thing screaming for money? So figure out how to prioritize 392 00:18:43,080 --> 00:18:45,199 Speaker 2: and attack those goals one by one, and yes, that 393 00:18:45,240 --> 00:18:46,439 Speaker 2: feeling will go away. 394 00:18:47,200 --> 00:18:50,680 Speaker 1: Yeah, this definitely sounds like a spending problem, not an 395 00:18:50,680 --> 00:18:54,040 Speaker 1: earning problem. And my concern here is you're already making 396 00:18:54,160 --> 00:18:57,760 Speaker 1: great money and if you just keep spending and spending 397 00:18:57,840 --> 00:19:00,480 Speaker 1: and feeling like you always go out and earn more, 398 00:19:01,160 --> 00:19:04,320 Speaker 1: you're just gonna wear yourself out and anxiety is gonna 399 00:19:04,359 --> 00:19:07,439 Speaker 1: cripple you and it's no way to live. So, like 400 00:19:07,480 --> 00:19:10,880 Speaker 1: Brian said, try to get the spending under control, live 401 00:19:10,920 --> 00:19:13,680 Speaker 1: within your means and by all means. In the very 402 00:19:13,800 --> 00:19:16,840 Speaker 1: very very short term, develop a plan to make that 403 00:19:17,280 --> 00:19:20,280 Speaker 1: twenty plus percent credit card debt go away, and you'll 404 00:19:20,320 --> 00:19:24,280 Speaker 1: thank yourself big time later. All right, Well, AI eventually 405 00:19:24,359 --> 00:19:28,320 Speaker 1: take your job? How to future proof your career? Coming 406 00:19:28,400 --> 00:19:30,800 Speaker 1: up next? You're listening to Simply Money presented about all 407 00:19:30,800 --> 00:19:39,880 Speaker 1: Worth Financial on fifty five KRC the talk station. You're 408 00:19:39,880 --> 00:19:42,480 Speaker 1: listening to Simply Money presented about all Worth Financial. I'm 409 00:19:42,520 --> 00:19:45,920 Speaker 1: Bob spun Seller along with Brian James, joined tonight by 410 00:19:45,960 --> 00:19:49,720 Speaker 1: our career expert Julie Balk and Julie thanks as always 411 00:19:49,760 --> 00:19:52,080 Speaker 1: for spending some time with us tonight. We want to 412 00:19:52,119 --> 00:19:56,639 Speaker 1: talk tonight about AI in your career. It's a topic 413 00:19:56,680 --> 00:20:00,520 Speaker 1: of conversation everywhere right now. Is AI is pretty much 414 00:20:00,520 --> 00:20:04,120 Speaker 1: becoming ubiquitous? Is AI going to take our job? How 415 00:20:04,119 --> 00:20:06,840 Speaker 1: do we future proof our career? And what are the 416 00:20:07,600 --> 00:20:11,160 Speaker 1: opportunities out there using AI for in a positive way? 417 00:20:12,560 --> 00:20:17,200 Speaker 3: You know, it really depends on your job and your age. Frankly, 418 00:20:17,960 --> 00:20:20,520 Speaker 3: the older you are, it depends on your job. It 419 00:20:20,560 --> 00:20:22,320 Speaker 3: depends on where you are. Those of us who are 420 00:20:22,320 --> 00:20:26,679 Speaker 3: older exers and boomers. I think it's really helpful to 421 00:20:26,840 --> 00:20:31,640 Speaker 3: understand what the capabilities of AI. AI are, But you're 422 00:20:31,680 --> 00:20:34,200 Speaker 3: probably not going to be in the workplace long enough 423 00:20:34,200 --> 00:20:37,479 Speaker 3: for it to really take over your life or your 424 00:20:37,560 --> 00:20:41,240 Speaker 3: job because it's still developing. But to put up put 425 00:20:41,280 --> 00:20:44,240 Speaker 3: on blinders and say, don't even say that around me, 426 00:20:44,320 --> 00:20:45,760 Speaker 3: I don't know what it is and I don't care 427 00:20:46,640 --> 00:20:49,760 Speaker 3: is a signal to a client, it's a signal to 428 00:20:49,800 --> 00:20:52,000 Speaker 3: a potential employer. It's the signal to your colleagues that 429 00:20:52,040 --> 00:20:53,280 Speaker 3: you aren't willing to learn. 430 00:20:53,720 --> 00:20:56,239 Speaker 2: So, Julie, are you hearing from people who want to 431 00:20:56,280 --> 00:20:59,399 Speaker 2: adjust their skills to be open to AI? Or do 432 00:20:59,440 --> 00:21:01,320 Speaker 2: you hear from they when they say I want to 433 00:21:01,320 --> 00:21:04,000 Speaker 2: find a career for the or a job for the 434 00:21:04,119 --> 00:21:06,359 Speaker 2: last balance of my career to get away from AI. 435 00:21:06,440 --> 00:21:07,399 Speaker 2: How do people approach it? 436 00:21:08,480 --> 00:21:11,240 Speaker 3: You know, it's funny a little bit of both. So 437 00:21:11,320 --> 00:21:15,040 Speaker 3: there are when you look at what AI can and 438 00:21:15,080 --> 00:21:19,560 Speaker 3: can't do, there are real advantages that you have as 439 00:21:19,600 --> 00:21:22,719 Speaker 3: an older worker in using AI. And let me explain. 440 00:21:23,040 --> 00:21:26,040 Speaker 3: So what AI is wonderful at, in fact so good 441 00:21:26,119 --> 00:21:30,080 Speaker 3: that it's really scary, is that it finds information, it 442 00:21:30,119 --> 00:21:33,479 Speaker 3: can analyze the information, and it can really speed up 443 00:21:33,520 --> 00:21:36,720 Speaker 3: your work. What it can't do, what it doesn't have 444 00:21:36,960 --> 00:21:41,879 Speaker 3: is wisdoms, your knowledge, your experience. And so to just 445 00:21:42,200 --> 00:21:45,360 Speaker 3: have a group of twenty five year olds making company 446 00:21:45,400 --> 00:21:48,159 Speaker 3: decisions based on what they find on AI, it's not 447 00:21:48,359 --> 00:21:53,199 Speaker 3: wrapped inside of wisdom, experience, wisdom and experience, they're going 448 00:21:53,240 --> 00:21:55,840 Speaker 3: to be making a lot of mistakes. And so we 449 00:21:55,880 --> 00:21:59,320 Speaker 3: see these stories. I've seen several stories where people use 450 00:21:59,400 --> 00:22:02,080 Speaker 3: it as an end all and be all, as the 451 00:22:02,119 --> 00:22:04,800 Speaker 3: one hundred percent correct answer and way to go and 452 00:22:05,880 --> 00:22:07,480 Speaker 3: it and then it comes back to bite them in 453 00:22:07,520 --> 00:22:11,080 Speaker 3: the rear. So we're not to the point yet where 454 00:22:12,240 --> 00:22:17,840 Speaker 3: it has the wisdom and experience that we accumulate throughout 455 00:22:17,880 --> 00:22:20,720 Speaker 3: our careers that we need to apply for that to 456 00:22:20,880 --> 00:22:23,480 Speaker 3: decide what to do with what we learn after we 457 00:22:23,600 --> 00:22:26,280 Speaker 3: use AI for something, all. 458 00:22:26,240 --> 00:22:28,960 Speaker 1: Right, Julie, I work with someone every day. His name's 459 00:22:29,000 --> 00:22:32,200 Speaker 1: Brian James, who I have sat and watched. You never 460 00:22:32,240 --> 00:22:35,880 Speaker 1: heard a AI into what he does every day, and 461 00:22:35,920 --> 00:22:38,600 Speaker 1: his knowledge of this is ramping up quickly, and it's 462 00:22:38,680 --> 00:22:41,960 Speaker 1: quite impressive. I think for the most of us out there, 463 00:22:42,000 --> 00:22:44,400 Speaker 1: correct me if I'm wrong. Most people out there they 464 00:22:44,520 --> 00:22:48,240 Speaker 1: know AI is coming, or it's even present in our workplace, 465 00:22:48,960 --> 00:22:51,160 Speaker 1: and we all want to be relevant, we all want 466 00:22:51,200 --> 00:22:53,600 Speaker 1: to stay up to speed. Let's take the fear out 467 00:22:53,600 --> 00:22:57,880 Speaker 1: of it. What should the average person working in industry today? 468 00:22:58,520 --> 00:23:04,040 Speaker 1: What should they or we proactively be doing to ramp 469 00:23:04,160 --> 00:23:07,200 Speaker 1: up on this stuff so we can maximize the benefits 470 00:23:07,240 --> 00:23:10,720 Speaker 1: of AI, stay relevant in our career, and you know, 471 00:23:10,840 --> 00:23:13,560 Speaker 1: be prepared for the next five to ten years. Is 472 00:23:13,600 --> 00:23:15,680 Speaker 1: this stuff really takes hold? What should we be doing? 473 00:23:17,240 --> 00:23:20,560 Speaker 3: First of all, it is overwhelming, It is overwhelming. I 474 00:23:20,600 --> 00:23:23,760 Speaker 3: get it, all these new phrases being thrown around. So 475 00:23:23,800 --> 00:23:26,360 Speaker 3: I always say, pick one thing, just pick one thing, 476 00:23:26,760 --> 00:23:30,160 Speaker 3: pick like pick one what they call large language model. 477 00:23:30,240 --> 00:23:33,560 Speaker 3: So GPT is a large language model. We normally hear 478 00:23:33,640 --> 00:23:37,840 Speaker 3: cat GPT, but GPT is a large language model. Something 479 00:23:37,880 --> 00:23:41,400 Speaker 3: called Gemini is Google's large language model. And that's almost 480 00:23:41,480 --> 00:23:46,920 Speaker 3: like this huge platform in which the information is all 481 00:23:47,160 --> 00:23:49,840 Speaker 3: sitting just to make it just as basic as possible. 482 00:23:49,880 --> 00:23:54,159 Speaker 3: And then there are apps like cat GPT, Perplexity that 483 00:23:54,320 --> 00:23:57,879 Speaker 3: goes out and find what's sitting out there in this 484 00:23:58,119 --> 00:24:02,880 Speaker 3: vast database, brings together makes it make sense to us, 485 00:24:02,920 --> 00:24:07,760 Speaker 3: and so it's not as complex as it sounds. If 486 00:24:07,760 --> 00:24:09,800 Speaker 3: you pick one thing to try. I had a friend 487 00:24:09,840 --> 00:24:11,840 Speaker 3: who said she's want to go on a trip to Ireland, 488 00:24:11,880 --> 00:24:14,439 Speaker 3: and she put in plan a trip to Ireland and 489 00:24:14,480 --> 00:24:16,199 Speaker 3: here are my parameters. I want to say, you know, 490 00:24:16,280 --> 00:24:18,240 Speaker 3: here's the kind of trip I want. And it came 491 00:24:18,280 --> 00:24:21,000 Speaker 3: back with the most beautiful itinerary. Now, is she going 492 00:24:21,040 --> 00:24:23,800 Speaker 3: to just take that as the gospel and do everything 493 00:24:23,840 --> 00:24:26,600 Speaker 3: it said? No? Then you take what it does is 494 00:24:26,600 --> 00:24:28,959 Speaker 3: it can speed up your research, it can speed up 495 00:24:28,960 --> 00:24:31,520 Speaker 3: your process, but you're still the one of us make decisions. 496 00:24:31,600 --> 00:24:35,160 Speaker 3: So I would pick one thing, maybe it's chat GPT, 497 00:24:35,800 --> 00:24:38,520 Speaker 3: and you say, and you just start asking it questions 498 00:24:38,880 --> 00:24:40,920 Speaker 3: and see what it comes back with. And the next thing, 499 00:24:41,119 --> 00:24:43,560 Speaker 3: just to get comfortable with it. I did this in 500 00:24:43,640 --> 00:24:46,760 Speaker 3: chat GPT. I said, who is Julie Balki and what 501 00:24:46,800 --> 00:24:49,520 Speaker 3: does she believe? And I'm going to tell you it 502 00:24:49,560 --> 00:24:56,160 Speaker 3: came back with the most comprehensive outline of who I am, 503 00:24:56,240 --> 00:24:58,800 Speaker 3: what I believe, what my work does, what I think 504 00:24:58,840 --> 00:25:02,040 Speaker 3: is important and so eloquent. I was like, holy moly, 505 00:25:02,600 --> 00:25:05,199 Speaker 3: and so it's really powerful, but it doesn't have to 506 00:25:05,200 --> 00:25:06,679 Speaker 3: be scary. The second thing I'd. 507 00:25:06,560 --> 00:25:09,199 Speaker 2: Say is I have a question for that on that 508 00:25:09,280 --> 00:25:11,040 Speaker 2: for you do you think that's because it has gotten 509 00:25:11,080 --> 00:25:13,280 Speaker 2: to know you, or did it just go find whatever 510 00:25:13,280 --> 00:25:15,000 Speaker 2: it could find that you've posted on the internet, since 511 00:25:15,000 --> 00:25:16,040 Speaker 2: there's plenty of that out there. 512 00:25:16,920 --> 00:25:19,120 Speaker 3: Yeah, it's that the second one because I haven't used 513 00:25:19,119 --> 00:25:20,600 Speaker 3: it well enough for it for it to know me. 514 00:25:21,680 --> 00:25:24,680 Speaker 3: I haven't used it enough. But figure out how is 515 00:25:24,720 --> 00:25:28,080 Speaker 3: it being used in your profession so you don't have 516 00:25:28,200 --> 00:25:31,560 Speaker 3: to learn everything. Let's say you're in financial planning. Let's 517 00:25:31,600 --> 00:25:35,520 Speaker 3: say you're a pairalegal. Let's say you are an accountant, 518 00:25:35,560 --> 00:25:39,560 Speaker 3: an auditors. Find out just even just ask it at 519 00:25:39,840 --> 00:25:43,800 Speaker 3: ask it at tet gp GPT how is tech GPT 520 00:25:44,000 --> 00:25:48,200 Speaker 3: being used in public accounting or auditing, and then keep 521 00:25:48,240 --> 00:25:51,720 Speaker 3: asking follow up questions. So the more follow up questions 522 00:25:51,880 --> 00:25:54,320 Speaker 3: you ask, the better information. And then say, okay, it 523 00:25:54,359 --> 00:25:58,240 Speaker 3: looks like everybody in financial planning is using this particular application. 524 00:25:58,760 --> 00:26:03,040 Speaker 3: Now just go taken on. So just go on, watch 525 00:26:03,080 --> 00:26:05,280 Speaker 3: some YouTube videos. You've got to find a place to 526 00:26:05,359 --> 00:26:08,359 Speaker 3: jump in in order to develop your comfort. You can 527 00:26:08,480 --> 00:26:12,360 Speaker 3: use it to write poems. It's amazing. But just you've 528 00:26:12,359 --> 00:26:14,480 Speaker 3: got it, you can't be so afraid that you're not 529 00:26:14,520 --> 00:26:16,200 Speaker 3: going to get out there, that you're not going to 530 00:26:16,240 --> 00:26:18,680 Speaker 3: get out there and try. Will you ever become an expert? Yeah, 531 00:26:18,720 --> 00:26:21,640 Speaker 3: most of us want, but you can't. The worst thing 532 00:26:21,640 --> 00:26:24,600 Speaker 3: you can do is put your hands over your ears 533 00:26:24,600 --> 00:26:26,800 Speaker 3: and eyes, will say, don't talk to me about this, 534 00:26:26,920 --> 00:26:29,080 Speaker 3: and then expect to work ten more years. You can't. 535 00:26:30,359 --> 00:26:33,120 Speaker 1: Now that that is great advice, Julie. All right, thanks 536 00:26:33,160 --> 00:26:35,679 Speaker 1: for joining us tonight. As always, you're listening to Simply 537 00:26:35,720 --> 00:26:38,720 Speaker 1: Money presented by all Worth Financial on fifty five KRC, 538 00:26:39,359 --> 00:26:46,639 Speaker 1: the talk station. You're listening to Simply Money presented by 539 00:26:46,720 --> 00:26:50,200 Speaker 1: all Worth Financial on Bob Sponsorller along with Brian James. 540 00:26:50,760 --> 00:26:52,679 Speaker 1: Do you have a financial question you'd like for us 541 00:26:52,720 --> 00:26:55,120 Speaker 1: to answer. There's a red button you can click while 542 00:26:55,119 --> 00:26:58,040 Speaker 1: you're listening to the show right on the iHeart app. 543 00:26:58,440 --> 00:27:01,520 Speaker 1: Simply record your question and it will come straight to us. 544 00:27:01,560 --> 00:27:04,840 Speaker 1: All right, let's kick things off Brian with Jeff in Mainville, 545 00:27:04,880 --> 00:27:07,600 Speaker 1: who says, Hey, I just sold a business. I got 546 00:27:07,600 --> 00:27:11,280 Speaker 1: a pretty good payout. What's the smart first step? Pay 547 00:27:11,280 --> 00:27:15,280 Speaker 1: off the mortgage, invest it set it aside for taxes. 548 00:27:15,880 --> 00:27:18,720 Speaker 2: Well, congratulations, Jeff, that's a great story. I'd love to 549 00:27:18,720 --> 00:27:21,240 Speaker 2: hear you know what the business was sometime and exactly 550 00:27:21,800 --> 00:27:23,119 Speaker 2: what came of it, how you built it, and all that. 551 00:27:23,160 --> 00:27:26,240 Speaker 2: But yeah, so great opportunity. Now what you're looking at 552 00:27:26,359 --> 00:27:30,280 Speaker 2: is the wonderful frustration of, oh my gosh, there are 553 00:27:30,320 --> 00:27:32,520 Speaker 2: so many things I could do, which one should I do? 554 00:27:32,720 --> 00:27:35,000 Speaker 2: This is when financial planning gets hard, when it's no 555 00:27:35,080 --> 00:27:35,960 Speaker 2: longer black and white. 556 00:27:36,000 --> 00:27:36,119 Speaker 1: Right. 557 00:27:36,160 --> 00:27:38,520 Speaker 2: There's dumb ideas and good ideas for about thirty years. 558 00:27:38,760 --> 00:27:41,359 Speaker 2: Then you build something successful, and now you got to 559 00:27:41,400 --> 00:27:43,160 Speaker 2: decide what's the best thing. These are all good things, 560 00:27:43,200 --> 00:27:46,639 Speaker 2: paying off the mortgage, investing taxes, something else. Entirely, these 561 00:27:46,640 --> 00:27:48,800 Speaker 2: are all important things. So I would say, what is 562 00:27:48,800 --> 00:27:50,680 Speaker 2: your plan telling you to do? What is your plan? 563 00:27:50,760 --> 00:27:52,720 Speaker 2: If you have a financial plan, then it should be 564 00:27:52,760 --> 00:27:56,360 Speaker 2: relatively obvious. What's the biggest what's the biggest thing? Screaming 565 00:27:56,359 --> 00:27:58,080 Speaker 2: for money right now? But I'll give you here's the 566 00:27:58,080 --> 00:28:00,320 Speaker 2: indicators I would look at if you're MORETG. You know, 567 00:28:00,320 --> 00:28:02,000 Speaker 2: we don't know anything about Jeff other than he says 568 00:28:02,040 --> 00:28:04,080 Speaker 2: he has a mortgage. If this mortgage came from the 569 00:28:04,160 --> 00:28:06,000 Speaker 2: last three or four years, maybe you just built a 570 00:28:06,040 --> 00:28:08,119 Speaker 2: new house or something like that, then it's probably at 571 00:28:08,119 --> 00:28:10,520 Speaker 2: a higher interest rate. You might look it up. I 572 00:28:10,520 --> 00:28:12,679 Speaker 2: don't know about paying it down paying it off. You 573 00:28:12,720 --> 00:28:14,679 Speaker 2: might look at recasting it and trying to get to 574 00:28:15,080 --> 00:28:17,520 Speaker 2: take some of that money. Lower the principle, you're not 575 00:28:17,520 --> 00:28:19,719 Speaker 2: going to lower the interest rate much, very very much currently, 576 00:28:19,920 --> 00:28:22,120 Speaker 2: but you could get the payment down a little bit. 577 00:28:22,280 --> 00:28:25,119 Speaker 2: Investing is always the default. Whatever's left over, Yes, of 578 00:28:25,160 --> 00:28:27,200 Speaker 2: course we want to invest that after you've set aside 579 00:28:27,280 --> 00:28:30,080 Speaker 2: enough for the emergency fund. Certainly taxes get an idea, 580 00:28:30,119 --> 00:28:31,840 Speaker 2: hopefully you've got a CPA in the mix, and tell 581 00:28:31,840 --> 00:28:33,760 Speaker 2: you what's what's coming do. But again it all comes 582 00:28:33,840 --> 00:28:36,160 Speaker 2: back to the plan which will help you prioritize. Here's 583 00:28:36,200 --> 00:28:38,480 Speaker 2: the ten things screaming for money, and here's the order 584 00:28:38,520 --> 00:28:40,680 Speaker 2: in which I care about them. All right, so we'll 585 00:28:40,720 --> 00:28:42,720 Speaker 2: move on to John in Cold Spring. John's got a 586 00:28:42,800 --> 00:28:45,600 Speaker 2: pension so skirty and investments, and he's wondering, how do 587 00:28:45,680 --> 00:28:47,960 Speaker 2: I tap into those in retirement? How do you determine 588 00:28:47,960 --> 00:28:49,280 Speaker 2: what that order is, Bob. 589 00:28:50,240 --> 00:28:53,280 Speaker 1: Well, John, with pension and social security, you've got some 590 00:28:53,400 --> 00:28:55,920 Speaker 1: options on when to take them, you know, based on 591 00:28:56,280 --> 00:28:58,040 Speaker 1: you know what age you want to start, when you 592 00:28:58,120 --> 00:29:00,480 Speaker 1: want to retire, all those kind of things, so you 593 00:29:00,480 --> 00:29:02,680 Speaker 1: can evaluate whether it makes sense to take a lump 594 00:29:02,720 --> 00:29:04,840 Speaker 1: sum pension or whether you just want to take the 595 00:29:04,840 --> 00:29:08,959 Speaker 1: pension income and at what age social security. There is 596 00:29:09,000 --> 00:29:11,800 Speaker 1: no lump sum option, but obviously you can decide when 597 00:29:11,840 --> 00:29:13,880 Speaker 1: you want to start and then whatever you got left 598 00:29:13,880 --> 00:29:17,640 Speaker 1: in investments. So the smartest order to tap those investments 599 00:29:17,680 --> 00:29:20,880 Speaker 1: comes down to the decisions on that pension and social security, 600 00:29:20,920 --> 00:29:24,480 Speaker 1: and then I always default to trying to create for 601 00:29:24,600 --> 00:29:28,480 Speaker 1: people the most tax efficient stream of income we can 602 00:29:28,520 --> 00:29:31,440 Speaker 1: come up with when combining all of those sources. So 603 00:29:31,840 --> 00:29:34,440 Speaker 1: there's a lot in play here. You've got a lot 604 00:29:34,440 --> 00:29:37,280 Speaker 1: of options. You know, I recommend sitting down with a 605 00:29:37,280 --> 00:29:40,760 Speaker 1: good fiduciary advisor and in way the pros and cons 606 00:29:40,840 --> 00:29:44,760 Speaker 1: of each claiming strategy and your pension and constructing your 607 00:29:44,760 --> 00:29:49,560 Speaker 1: investment portfolio. And you know that oftentimes you're going to 608 00:29:49,600 --> 00:29:51,680 Speaker 1: take some of all of it, you know, so it's 609 00:29:51,720 --> 00:29:53,800 Speaker 1: not just complete one and then go to the other. 610 00:29:54,200 --> 00:29:57,880 Speaker 1: Oftentimes it comes down to responsibly taking a mix of 611 00:29:57,920 --> 00:30:00,800 Speaker 1: all three, and in most cases that gives you the 612 00:30:00,800 --> 00:30:04,840 Speaker 1: best solution. All right, Bill and Liberty Township asks. He says, 613 00:30:04,880 --> 00:30:08,160 Speaker 1: I've got multiple rental properties. Should I treat them like 614 00:30:08,240 --> 00:30:10,200 Speaker 1: part of my retirement portfolio? 615 00:30:10,280 --> 00:30:13,960 Speaker 2: Brian, Yeah, Yeah, if you, Well, there's two types of 616 00:30:14,000 --> 00:30:16,120 Speaker 2: people who own real estate. There are people who own 617 00:30:16,200 --> 00:30:18,760 Speaker 2: several like it sounds like you are, and who have 618 00:30:18,840 --> 00:30:21,960 Speaker 2: figured out the game and understand how to deal with 619 00:30:22,280 --> 00:30:25,280 Speaker 2: tenants and broken stuff and all those kinds of things 620 00:30:25,320 --> 00:30:26,840 Speaker 2: and have built it into a kind of a routine 621 00:30:26,840 --> 00:30:28,600 Speaker 2: and you have your network of handy people who can 622 00:30:28,640 --> 00:30:30,920 Speaker 2: do things for you. Then there's the people who thought 623 00:30:30,960 --> 00:30:32,360 Speaker 2: they were going to get into it and realize that 624 00:30:32,360 --> 00:30:34,160 Speaker 2: they don't like it at all and can't wait to 625 00:30:34,200 --> 00:30:35,959 Speaker 2: get rid of it. So you sound like the former, 626 00:30:36,440 --> 00:30:38,800 Speaker 2: where you've kind of built it into a little bit 627 00:30:38,800 --> 00:30:40,840 Speaker 2: of a business that's helping you out. So I absolutely 628 00:30:40,960 --> 00:30:43,640 Speaker 2: would treat that as part of a retirement portfolio. Heck, Bill, 629 00:30:43,840 --> 00:30:46,959 Speaker 2: everything you own is part of your retirement portfolio. Anything 630 00:30:46,960 --> 00:30:50,040 Speaker 2: that spits out any kind of growth opportunity you know, 631 00:30:50,320 --> 00:30:53,600 Speaker 2: or or generates income or whatever that is going to 632 00:30:53,640 --> 00:30:55,960 Speaker 2: help you through retirement. I would think of it sort 633 00:30:55,960 --> 00:30:58,160 Speaker 2: of like your you know, maybe like your bond portfolio. 634 00:30:58,880 --> 00:31:01,360 Speaker 2: And by that I mean if it's a significant enough 635 00:31:01,400 --> 00:31:03,640 Speaker 2: part of your net worth, then that's going to generate 636 00:31:03,760 --> 00:31:06,680 Speaker 2: steady generate steady interest as long as you can keep them, 637 00:31:07,160 --> 00:31:09,120 Speaker 2: keep them from being vacant for extended period of time. 638 00:31:09,200 --> 00:31:11,720 Speaker 2: Sounds like you figured that game out though, But have 639 00:31:11,840 --> 00:31:14,400 Speaker 2: that generate income and let the rest of your portfolio 640 00:31:14,440 --> 00:31:15,760 Speaker 2: perhaps be more aggressive. 641 00:31:16,400 --> 00:31:18,360 Speaker 1: Yeah, Brian, I want to just add one thing here, 642 00:31:18,840 --> 00:31:21,800 Speaker 1: And I've had this happen with several clients over the years. 643 00:31:21,600 --> 00:31:24,959 Speaker 1: As people age and they don't want to maintain and 644 00:31:25,040 --> 00:31:28,960 Speaker 1: manage these rental properties anymore. They want to slowly unwind them. 645 00:31:29,320 --> 00:31:32,240 Speaker 1: Most people have depreciated these properties down to near a 646 00:31:32,320 --> 00:31:34,920 Speaker 1: zero cost basis, so you do have to factor in 647 00:31:35,320 --> 00:31:37,720 Speaker 1: if and when you want to start to unwind these things, 648 00:31:37,720 --> 00:31:40,880 Speaker 1: you got to factor in taxes into the equation, you know, 649 00:31:40,960 --> 00:31:44,200 Speaker 1: as you as you redeploy assets elsewhere. Just another thing 650 00:31:44,240 --> 00:31:45,040 Speaker 1: to add in there. Yeah. 651 00:31:45,080 --> 00:31:46,360 Speaker 2: No, that's a great point. And for those of you 652 00:31:46,400 --> 00:31:48,000 Speaker 2: out there who might have been thinking about getting into 653 00:31:48,000 --> 00:31:50,400 Speaker 2: real estate because of the tax benefits, you give some 654 00:31:50,520 --> 00:31:52,320 Speaker 2: of that back at the end. What Bob's referring to 655 00:31:52,360 --> 00:31:55,320 Speaker 2: their is you do get a deduction on the value 656 00:31:55,440 --> 00:31:58,320 Speaker 2: the depreciation amount of that piece of property every year, 657 00:31:59,440 --> 00:32:01,600 Speaker 2: but eventually, when you sell it, you have to pay 658 00:32:01,640 --> 00:32:04,360 Speaker 2: capital gains on a much larger amount of that gain 659 00:32:04,440 --> 00:32:06,760 Speaker 2: because you've been taking that depreciation over the years. That's 660 00:32:06,800 --> 00:32:08,640 Speaker 2: just something the government put in place a long time 661 00:32:08,640 --> 00:32:11,400 Speaker 2: ago to make it attractive to invest in real estate. 662 00:32:11,560 --> 00:32:13,920 Speaker 2: And this is why real estate developers are always always 663 00:32:13,960 --> 00:32:16,800 Speaker 2: looking for that next development. Real estate developers never get 664 00:32:16,800 --> 00:32:19,400 Speaker 2: to a point where they just stop building entirely. They 665 00:32:19,440 --> 00:32:23,320 Speaker 2: need something because eventually they run out of deductions depreciation 666 00:32:23,400 --> 00:32:25,640 Speaker 2: deductions on the existing properties. Therefoready got to have one 667 00:32:25,680 --> 00:32:28,720 Speaker 2: cooking anyway, all right, So we'll move on from Bill, 668 00:32:28,720 --> 00:32:32,160 Speaker 2: and we're gonna move to Frank and Kenwood. Frank says, 669 00:32:32,160 --> 00:32:34,400 Speaker 2: if I never planned to spend all of my assets 670 00:32:34,440 --> 00:32:36,440 Speaker 2: and I do have airs that I care about, should 671 00:32:36,480 --> 00:32:38,680 Speaker 2: I be investing these more aggressively. 672 00:32:39,120 --> 00:32:45,440 Speaker 1: Well, potentially, Frank. The way I address risk profile this 673 00:32:45,520 --> 00:32:47,800 Speaker 1: way number one is what do you need to earn 674 00:32:47,840 --> 00:32:50,400 Speaker 1: in the way of return to meet all your financial goals? 675 00:32:50,400 --> 00:32:53,920 Speaker 1: And it sounds like you've already got that box checked. 676 00:32:53,960 --> 00:32:56,160 Speaker 1: You're in good shape. So then it comes down to 677 00:32:56,280 --> 00:32:59,560 Speaker 1: emotional risk tolerance. And if you can be growth oriented 678 00:33:00,080 --> 00:33:02,600 Speaker 1: and take the highs and lows and the swings and 679 00:33:02,640 --> 00:33:05,360 Speaker 1: the ebbs and flows of the market and really stay 680 00:33:05,400 --> 00:33:08,640 Speaker 1: invested long term, you're going to benefit from doing that, 681 00:33:08,840 --> 00:33:12,080 Speaker 1: i e. Investing more aggressively both from a rate of 682 00:33:12,160 --> 00:33:16,600 Speaker 1: return standpoint and a tax efficiency standpoint, because the more 683 00:33:16,640 --> 00:33:19,520 Speaker 1: of your assets you can keep in that capital gain 684 00:33:19,600 --> 00:33:22,920 Speaker 1: ledger versus ordinary income ledger, the better off you're going 685 00:33:22,960 --> 00:33:24,720 Speaker 1: to be. To say nothing of the fact that when 686 00:33:24,720 --> 00:33:27,600 Speaker 1: you pass away, you get a stepped up cost basis 687 00:33:27,680 --> 00:33:30,720 Speaker 1: on capital gain assets and your heirs pay nothing in taxes. 688 00:33:30,800 --> 00:33:33,360 Speaker 1: So I think you're on the right track here. Just 689 00:33:33,440 --> 00:33:37,400 Speaker 1: make sure that your emotional risk tolerance truly fits with 690 00:33:37,440 --> 00:33:39,520 Speaker 1: what you're talking about here, and I think you're going 691 00:33:39,560 --> 00:33:42,600 Speaker 1: to be in great shape, all right, Jackie and Mount Adams. 692 00:33:42,600 --> 00:33:46,840 Speaker 1: Brian says, what do your most successful retired clients do 693 00:33:47,040 --> 00:33:49,600 Speaker 1: differently than everyone else? That's a great. 694 00:33:49,440 --> 00:33:54,680 Speaker 2: Question, Jackie. My happiest, most successful retired clients stop looking 695 00:33:54,680 --> 00:33:57,640 Speaker 2: at their money every single day, and I'll contrast that 696 00:33:57,800 --> 00:34:01,160 Speaker 2: my most miserable clients look at it every day. They 697 00:34:01,160 --> 00:34:02,960 Speaker 2: worry about what the market does, they worry about what 698 00:34:02,960 --> 00:34:04,960 Speaker 2: the government's doing. They can't peel their eyes off the 699 00:34:05,000 --> 00:34:09,680 Speaker 2: TV in the headline, So understand what the actual impact 700 00:34:09,680 --> 00:34:12,560 Speaker 2: of your of your financial plan is and understand when 701 00:34:12,600 --> 00:34:16,280 Speaker 2: you're okay. I think it's extremely important for absolutely everybody 702 00:34:16,280 --> 00:34:19,120 Speaker 2: out there to uh to to understand when they have 703 00:34:19,239 --> 00:34:21,200 Speaker 2: met success. When did you make it to the end, 704 00:34:21,239 --> 00:34:23,440 Speaker 2: and when did you know? When? When are you okay? 705 00:34:23,520 --> 00:34:25,120 Speaker 2: Because you by that time you will have built your 706 00:34:25,120 --> 00:34:27,719 Speaker 2: financial plan, you will have stress tested it for good 707 00:34:27,719 --> 00:34:30,200 Speaker 2: times and bad times, and you'll know that when the 708 00:34:30,200 --> 00:34:32,120 Speaker 2: scary headlines do happen, and that's one of the few 709 00:34:32,120 --> 00:34:35,120 Speaker 2: guarantees we can give people that you're going to be okay. 710 00:34:35,480 --> 00:34:38,080 Speaker 1: Coming up next, I've got my two cents on the 711 00:34:38,160 --> 00:34:42,520 Speaker 1: benefits of proactive family communication when it comes to money. 712 00:34:42,680 --> 00:34:45,480 Speaker 1: You're listening to Simply Money, presented by all Worth Financial 713 00:34:45,520 --> 00:34:52,799 Speaker 1: on fifty five k r C the talk station. You're 714 00:34:52,840 --> 00:34:54,759 Speaker 1: listening to Simply Money. You're sent up by all Worth 715 00:34:54,800 --> 00:34:58,920 Speaker 1: Financial on Bob's fond Seller along with Brian James. Brian, 716 00:34:58,960 --> 00:35:00,879 Speaker 1: I want to spend a a couple of minutes talking 717 00:35:00,960 --> 00:35:03,520 Speaker 1: about an actual meeting I had here a couple days 718 00:35:03,520 --> 00:35:06,840 Speaker 1: ago that ended with a happy ending. I love happy endings, 719 00:35:06,880 --> 00:35:09,000 Speaker 1: and here's what I'm talking about. I'm talking about the 720 00:35:09,080 --> 00:35:16,560 Speaker 1: benefits of proactive communication among family members and intergenerational planning 721 00:35:16,719 --> 00:35:20,120 Speaker 1: between parents and kids, and when it works, it works 722 00:35:20,239 --> 00:35:24,000 Speaker 1: really well, if people get proactive and communicate. For example, 723 00:35:24,640 --> 00:35:27,080 Speaker 1: had a client review meeting and these folks have plenty 724 00:35:27,120 --> 00:35:29,640 Speaker 1: of money, they've saved, well, they don't spend what they have. 725 00:35:30,080 --> 00:35:32,160 Speaker 1: And they said, hey, Bob, we want to start to 726 00:35:32,280 --> 00:35:36,960 Speaker 1: help out our younger adult son. He doesn't know anything 727 00:35:37,000 --> 00:35:39,759 Speaker 1: about investing, he's just started in his career. We want 728 00:35:39,760 --> 00:35:42,360 Speaker 1: to get some seed money put to work and we 729 00:35:42,440 --> 00:35:44,959 Speaker 1: want you to get him started with a financial plan. 730 00:35:45,000 --> 00:35:47,880 Speaker 1: And I said, great, how much money are we talking about? 731 00:35:47,920 --> 00:35:50,520 Speaker 1: And they gave me a number, And so I was 732 00:35:50,560 --> 00:35:53,719 Speaker 1: able to contact the Sun and say, hey, here's what's 733 00:35:53,719 --> 00:35:55,839 Speaker 1: going on, here's what your mom and dad want to do. 734 00:35:56,080 --> 00:35:57,799 Speaker 1: Would you like to meet with me? Would you like 735 00:35:57,840 --> 00:36:00,719 Speaker 1: to talk about building your financial plan? He goes, that 736 00:36:00,840 --> 00:36:05,000 Speaker 1: sounds great. So as of yesterday, fast forward, we were 737 00:36:05,000 --> 00:36:07,799 Speaker 1: able to talk about the pros and cons of different investments, 738 00:36:08,120 --> 00:36:13,960 Speaker 1: talk about risk profile strategy, review his retirement plan at work, 739 00:36:14,480 --> 00:36:17,880 Speaker 1: and I'm proud to announce we got his roth IRA 740 00:36:18,280 --> 00:36:21,960 Speaker 1: opened and funded with some money for twenty twenty five. 741 00:36:22,200 --> 00:36:24,000 Speaker 1: The parents are going to put more money in in 742 00:36:24,080 --> 00:36:27,799 Speaker 1: twenty twenty six. The Sun is thrilled. The parents are 743 00:36:27,840 --> 00:36:30,839 Speaker 1: happy because their son is now launched with a good 744 00:36:30,840 --> 00:36:34,960 Speaker 1: financial plan. This is how things should work, Brian, if 745 00:36:35,040 --> 00:36:38,320 Speaker 1: people are willing to sit down and talk amongst themselves 746 00:36:38,840 --> 00:36:42,880 Speaker 1: and help their offspring get prepared for retirement. Yeah. 747 00:36:43,320 --> 00:36:45,880 Speaker 2: I just had a really good story just from yesterday 748 00:36:45,880 --> 00:36:48,080 Speaker 2: from a meeting clients, clients who are new to me, 749 00:36:49,000 --> 00:36:52,600 Speaker 2: and the parent and child adult child came in to 750 00:36:52,680 --> 00:36:55,279 Speaker 2: kind of work on things, and parent is wanting to 751 00:36:55,480 --> 00:36:59,440 Speaker 2: gift assets now to watch their family benefit from it 752 00:36:59,440 --> 00:37:01,160 Speaker 2: in the short run because they remember at that time 753 00:37:01,200 --> 00:37:03,560 Speaker 2: of life when they had kids and things were just expensive, 754 00:37:03,600 --> 00:37:05,279 Speaker 2: a little bit of extra money would have helped. And 755 00:37:06,200 --> 00:37:09,000 Speaker 2: parent has more than enough. So big discussion there, but 756 00:37:09,040 --> 00:37:12,600 Speaker 2: the child it was very heartwarming. Actually the child said, Okay, 757 00:37:12,600 --> 00:37:14,960 Speaker 2: I appreciate that, but we need to talk to Brian 758 00:37:15,000 --> 00:37:17,400 Speaker 2: and see what is there other things we're not thinking of, taxes, 759 00:37:17,400 --> 00:37:19,279 Speaker 2: other scary things. What should we be planning for. So 760 00:37:19,680 --> 00:37:21,440 Speaker 2: we basically had a long conversation and just kind of 761 00:37:21,440 --> 00:37:23,880 Speaker 2: built out, yes, you can do this, but you probably 762 00:37:23,920 --> 00:37:25,480 Speaker 2: can't do that because the last thing you want to 763 00:37:25,480 --> 00:37:27,279 Speaker 2: do if you're trying to help your children is put 764 00:37:27,320 --> 00:37:29,800 Speaker 2: yourself at risk, because that's just going to cause stress 765 00:37:29,840 --> 00:37:32,200 Speaker 2: for your child who obviously loves you so much, they're 766 00:37:32,200 --> 00:37:35,480 Speaker 2: slowing you down from giving them money. That is in contrast, Bob, 767 00:37:35,680 --> 00:37:37,520 Speaker 2: to when I was very very young. I was a 768 00:37:37,520 --> 00:37:40,239 Speaker 2: baby adviser about twenty five twenty eight years ago, and 769 00:37:40,320 --> 00:37:42,400 Speaker 2: I once got a call from somebody who was in 770 00:37:42,480 --> 00:37:46,120 Speaker 2: the hearse on their way from their parents' funeral wanting 771 00:37:46,200 --> 00:37:47,920 Speaker 2: to stop by on the way home and pick up 772 00:37:47,960 --> 00:37:51,040 Speaker 2: the check for their inheritance. So I'm glad those days 773 00:37:51,040 --> 00:37:54,239 Speaker 2: are over in my career. But anyway, that's sometimes how 774 00:37:54,280 --> 00:37:54,960 Speaker 2: people think. 775 00:37:55,480 --> 00:37:57,400 Speaker 1: Now on the point I really want to drive home, 776 00:37:57,520 --> 00:38:00,440 Speaker 1: you know, with with these stories is just we talk 777 00:38:00,480 --> 00:38:03,319 Speaker 1: about all these exotic strategies and all that on the 778 00:38:03,360 --> 00:38:06,880 Speaker 1: show all the time. Often the most important impactful things 779 00:38:06,880 --> 00:38:10,799 Speaker 1: are just the simple things getting started, getting money put 780 00:38:10,840 --> 00:38:15,000 Speaker 1: away where it can compound tax free for decades and decades, 781 00:38:15,160 --> 00:38:19,880 Speaker 1: and again, sometimes simple is best. Thanks for listening tonight. 782 00:38:19,880 --> 00:38:22,160 Speaker 1: You've been listening to Simply Money, presented by all Worth 783 00:38:22,200 --> 00:38:25,240 Speaker 1: Financial on fifty five KRC, the talk station