1 00:00:06,640 --> 00:00:11,959 Speaker 1: Tonight we're asking the question, what's the damage you're listening 2 00:00:12,039 --> 00:00:14,400 Speaker 1: to simply money presented by all Worth Financial on Bob's 3 00:00:14,360 --> 00:00:18,600 Speaker 1: Sponsor with Brian James. You might think the big financial 4 00:00:18,640 --> 00:00:21,960 Speaker 1: mistakes are behind you once you've built some serious wealth, 5 00:00:22,000 --> 00:00:25,759 Speaker 1: but even the most successful investors make small moves that 6 00:00:25,960 --> 00:00:29,840 Speaker 1: quietly cost big time money over time. We just hit 7 00:00:29,920 --> 00:00:32,839 Speaker 1: on this whole topic recently, but tonight we're gonna take 8 00:00:32,840 --> 00:00:35,360 Speaker 1: it a step further and we're gonna put some real 9 00:00:35,560 --> 00:00:39,760 Speaker 1: dollar amounts on some of these decisions or non decisions, 10 00:00:39,840 --> 00:00:42,560 Speaker 1: just to drive home the point that it really does matter. 11 00:00:42,960 --> 00:00:45,400 Speaker 1: Brian walk us through a couple of these examples. 12 00:00:45,760 --> 00:00:48,000 Speaker 2: Yeah, so these are real time examples. We deal with 13 00:00:48,000 --> 00:00:50,320 Speaker 2: this stuff every day at all Worth Financial. This is 14 00:00:50,360 --> 00:00:52,600 Speaker 2: why we have jobs. Frankly, when people find themselves in 15 00:00:52,640 --> 00:00:55,000 Speaker 2: these situations and how do I work myself out of them. 16 00:00:55,000 --> 00:00:57,280 Speaker 2: So the first roun we're gonna talk about is having 17 00:00:57,280 --> 00:00:59,800 Speaker 2: too much in one stock. This is very frequent here 18 00:01:00,080 --> 00:01:03,600 Speaker 2: here in the Cincinnati, Indiana Northern Kentucky area. We all 19 00:01:03,640 --> 00:01:06,400 Speaker 2: tend to work for Fortune five hundred companies or companies 20 00:01:06,440 --> 00:01:07,160 Speaker 2: that support them. 21 00:01:07,240 --> 00:01:08,360 Speaker 3: Therefore, we have four oh. 22 00:01:08,319 --> 00:01:12,080 Speaker 2: One k's which oftentimes hold that company stock, so Procter 23 00:01:12,120 --> 00:01:15,720 Speaker 2: and Gamble, ge Aerospace, Kroger, et cetera. So you stay 24 00:01:15,720 --> 00:01:18,840 Speaker 2: with that company for decades upon decades, you get stock options, 25 00:01:18,840 --> 00:01:21,280 Speaker 2: restricted share shares, other grants and that kind of thing, 26 00:01:21,280 --> 00:01:24,000 Speaker 2: and it just keeps growing. Feels comfortable because you know 27 00:01:24,040 --> 00:01:26,160 Speaker 2: the business, you're involved in those meetings where we talk 28 00:01:26,200 --> 00:01:27,960 Speaker 2: about what's working, what's not working, and so on and 29 00:01:28,040 --> 00:01:28,520 Speaker 2: so forth. 30 00:01:28,760 --> 00:01:29,720 Speaker 4: But here's that problem. 31 00:01:29,800 --> 00:01:33,399 Speaker 2: Comfort doesn't mean diversification because the stock market will smack 32 00:01:33,440 --> 00:01:35,280 Speaker 2: that company around for any reason at once, and it 33 00:01:35,319 --> 00:01:38,200 Speaker 2: does not care what your retirement was, what your retirement 34 00:01:38,240 --> 00:01:40,360 Speaker 2: plans were. So let's put some numbers to this, Bob. 35 00:01:40,480 --> 00:01:42,840 Speaker 2: Let's see, you got a three million dollar portfolio. Maybe 36 00:01:42,880 --> 00:01:45,040 Speaker 2: a third of that, say nine hundred thousand dollars is 37 00:01:45,120 --> 00:01:47,960 Speaker 2: one company stock. Now, all of a sudden, that stock 38 00:01:48,040 --> 00:01:50,360 Speaker 2: drops twenty percent. That's not really a crash. That's not 39 00:01:50,400 --> 00:01:53,080 Speaker 2: even a bad quarter, that's not a disappointing earnings report. 40 00:01:53,320 --> 00:01:55,600 Speaker 2: That's one hundred and eighty thousand dollars loss based on 41 00:01:55,600 --> 00:01:58,280 Speaker 2: that math. And again, I talk about this example all 42 00:01:58,320 --> 00:02:00,440 Speaker 2: the time, but my P and G people there who 43 00:02:00,480 --> 00:02:02,440 Speaker 2: were working at P ANDNG in the early two thousands. 44 00:02:02,720 --> 00:02:04,920 Speaker 2: We love PNG and all the history and so forth, 45 00:02:04,960 --> 00:02:07,480 Speaker 2: but the market hated Dirk Yager. I hope Dirk's not 46 00:02:07,480 --> 00:02:09,880 Speaker 2: listening to this, but he knows he wasn't a popular guy. 47 00:02:10,120 --> 00:02:12,400 Speaker 2: P ANDNG took a fifty percent hit near close to 48 00:02:12,480 --> 00:02:15,000 Speaker 2: it in the two thousand and two thousand and one timeframe, 49 00:02:15,040 --> 00:02:17,840 Speaker 2: and that literally changed people's retirement plans. Thought I was 50 00:02:17,840 --> 00:02:20,239 Speaker 2: going to retire this summer. Maybe I'll wait till three 51 00:02:20,240 --> 00:02:22,200 Speaker 2: summers from now for my portfolio to recover. 52 00:02:22,360 --> 00:02:23,880 Speaker 4: That's the risk, right. 53 00:02:23,760 --> 00:02:26,120 Speaker 2: So your other investments might be flat up slightly, but 54 00:02:26,280 --> 00:02:29,040 Speaker 2: that one position drags the whole mess down and changes 55 00:02:29,040 --> 00:02:29,560 Speaker 2: your plans. 56 00:02:30,520 --> 00:02:32,080 Speaker 3: Well, And here's why this could matter. 57 00:02:32,120 --> 00:02:34,600 Speaker 1: I mean, let's face it, I don't care how good 58 00:02:34,639 --> 00:02:37,480 Speaker 1: a company is and how well you know it and 59 00:02:37,520 --> 00:02:38,760 Speaker 1: we love it and all that. 60 00:02:39,880 --> 00:02:40,799 Speaker 3: This is just a fact. 61 00:02:40,960 --> 00:02:46,400 Speaker 1: Individual stocks are more volatile than an index portfolio or 62 00:02:46,440 --> 00:02:47,920 Speaker 1: a broad portfolio stocks. 63 00:02:47,919 --> 00:02:48,720 Speaker 3: That's just a fact. 64 00:02:48,720 --> 00:02:51,959 Speaker 1: And that's why the whole concept of diversification is out 65 00:02:52,000 --> 00:02:55,000 Speaker 1: there and why it works. So to drive home this 66 00:02:55,120 --> 00:02:58,200 Speaker 1: point even further, you know, if you get that twenty 67 00:02:58,200 --> 00:03:01,240 Speaker 1: percent pullback in any of this these stocks where you 68 00:03:01,440 --> 00:03:05,600 Speaker 1: have a large concentrated position, you know, to use your example, 69 00:03:05,639 --> 00:03:07,520 Speaker 1: if that makes up a third of your portfolio, that 70 00:03:07,600 --> 00:03:11,160 Speaker 1: caused the whole portfolio to go down by about six percent. 71 00:03:11,680 --> 00:03:14,160 Speaker 1: That's a pretty pretty big drop, and most of the 72 00:03:14,200 --> 00:03:16,920 Speaker 1: time the whole market did not fall by that much. 73 00:03:17,440 --> 00:03:20,160 Speaker 1: So when you're trying to turn this portfolio into an 74 00:03:20,200 --> 00:03:26,000 Speaker 1: income stream, you're you're tacking on extra extra volatility to 75 00:03:26,040 --> 00:03:29,320 Speaker 1: a portfolio that you don't need to, you know, to 76 00:03:29,440 --> 00:03:32,919 Speaker 1: tack on, you're costing your self return. You're costing yourself 77 00:03:33,040 --> 00:03:37,480 Speaker 1: risk for no other reason than you liked familiarity or 78 00:03:37,560 --> 00:03:42,640 Speaker 1: the concept of control overdoing the responsible thing and controlling 79 00:03:42,720 --> 00:03:45,960 Speaker 1: your downside volatility. It's just it tends not to be 80 00:03:46,040 --> 00:03:50,960 Speaker 1: worth it because these stocks tend to not dramatically outperform 81 00:03:51,040 --> 00:03:54,440 Speaker 1: the broad market enough to warrant having a third of 82 00:03:54,440 --> 00:03:55,600 Speaker 1: your portfolio in them. 83 00:03:55,840 --> 00:03:58,720 Speaker 2: Yeah, the history kind of speaks for itself there, and again, 84 00:03:58,960 --> 00:04:00,720 Speaker 2: it's about what you will if it's not about what 85 00:04:00,760 --> 00:04:04,400 Speaker 2: you can make over time, if that history repeats itself, 86 00:04:04,640 --> 00:04:06,840 Speaker 2: it's about what will happen to those of you who 87 00:04:07,200 --> 00:04:08,760 Speaker 2: your number comes up and all of a sudden, the 88 00:04:08,800 --> 00:04:11,800 Speaker 2: stock market or that particular stock decides not to cooperate 89 00:04:12,160 --> 00:04:14,080 Speaker 2: right around the time that you have a major life 90 00:04:14,640 --> 00:04:16,960 Speaker 2: change coming up. So let's move on from that though, 91 00:04:17,000 --> 00:04:21,560 Speaker 2: and let's talk about the idea of occasionally ignoring ROTH 92 00:04:21,640 --> 00:04:24,640 Speaker 2: conversion opportunities when the market is down. This one's kind 93 00:04:24,640 --> 00:04:27,200 Speaker 2: of sneaky because when markets take a you know, take 94 00:04:27,200 --> 00:04:28,480 Speaker 2: a dive, as they you know, as they. 95 00:04:28,400 --> 00:04:28,840 Speaker 3: Tend to do. 96 00:04:28,960 --> 00:04:32,520 Speaker 2: Unfortunately, your IRA balance comes lower. That means you can 97 00:04:32,560 --> 00:04:35,799 Speaker 2: convert more dollars to a row or the same tax cost. However, 98 00:04:35,880 --> 00:04:38,360 Speaker 2: how people normally react to as Bob is they get 99 00:04:38,400 --> 00:04:39,719 Speaker 2: mad the market is down. 100 00:04:39,720 --> 00:04:40,760 Speaker 4: I don't want to look at anything. 101 00:04:40,960 --> 00:04:42,880 Speaker 2: It's only fun to look at it when or think 102 00:04:42,880 --> 00:04:44,640 Speaker 2: about it when the market is up and I'm making 103 00:04:44,720 --> 00:04:46,400 Speaker 2: more money than I've ever had before, I don't want 104 00:04:46,400 --> 00:04:48,960 Speaker 2: anything to do with it when it's down. That well, 105 00:04:48,960 --> 00:04:51,240 Speaker 2: that can cost us an opportunity to If the market's 106 00:04:51,279 --> 00:04:53,320 Speaker 2: going to come back, and you're otherwise not a panicker, 107 00:04:53,920 --> 00:04:55,840 Speaker 2: then why not take that time. 108 00:04:55,960 --> 00:04:57,520 Speaker 4: To convert those dollars. 109 00:04:57,560 --> 00:04:58,919 Speaker 2: So let's take you get a million bucks in a 110 00:04:58,960 --> 00:05:02,039 Speaker 2: traditional IRA, and that takes a twenty percent hit because 111 00:05:02,080 --> 00:05:03,800 Speaker 2: we have a market like we just had about three 112 00:05:03,839 --> 00:05:04,280 Speaker 2: years ago. 113 00:05:04,680 --> 00:05:06,800 Speaker 3: If you convert. You know, well, even. 114 00:05:06,640 --> 00:05:09,159 Speaker 1: Back in April, even back in April, it was a 115 00:05:09,160 --> 00:05:11,839 Speaker 1: wonderful opportunity when the market went down, you know, twelve 116 00:05:11,920 --> 00:05:13,920 Speaker 1: to fifteen percent here in a short amount of time. 117 00:05:14,000 --> 00:05:16,600 Speaker 1: That was a wonderful opportunity to do what we're talking about. 118 00:05:16,600 --> 00:05:17,479 Speaker 3: But go ahead and continue. 119 00:05:17,480 --> 00:05:19,240 Speaker 4: So yeah, so make sure so be prepared for this. 120 00:05:19,320 --> 00:05:21,599 Speaker 2: Obviously, if the market's going to bounce back, and you 121 00:05:21,640 --> 00:05:23,800 Speaker 2: believe in that history and you're just mad because we're 122 00:05:23,800 --> 00:05:25,640 Speaker 2: down right now, and we get mad too as advisors. 123 00:05:25,640 --> 00:05:26,919 Speaker 2: There's no fun to go through that, but we know 124 00:05:27,000 --> 00:05:30,560 Speaker 2: it works. So take advantage of that opportunity to convert 125 00:05:30,640 --> 00:05:33,400 Speaker 2: that wroth. Do it at a quote unquote market bottom. 126 00:05:33,440 --> 00:05:35,320 Speaker 2: We never know where the bottom is, but it's certainly 127 00:05:35,320 --> 00:05:37,960 Speaker 2: not the top. Anywhere, not the top is a good 128 00:05:38,000 --> 00:05:40,680 Speaker 2: time to convert to roth. So take advantage of that 129 00:05:40,720 --> 00:05:43,240 Speaker 2: opportunity when it occurs, and it almost makes you look 130 00:05:43,279 --> 00:05:45,000 Speaker 2: forward to then now you've got an arrow in the 131 00:05:45,080 --> 00:05:47,159 Speaker 2: quiver where you can say, you know what, this stinks. 132 00:05:47,200 --> 00:05:49,200 Speaker 2: The market is down. But here's a step I'm going 133 00:05:49,279 --> 00:05:51,640 Speaker 2: to take because I get how this long term stuff works. 134 00:05:53,200 --> 00:05:55,160 Speaker 1: Well, I want to harp on this a little bit, 135 00:05:55,200 --> 00:05:57,440 Speaker 1: because you know, you got to strip away the emotions. 136 00:05:57,440 --> 00:05:59,279 Speaker 1: And the other thing to remember is when we're dealing 137 00:05:59,320 --> 00:06:01,040 Speaker 1: with retirement counts, we don't. 138 00:06:00,839 --> 00:06:02,719 Speaker 3: Have to worry about the wash sale rule. 139 00:06:03,040 --> 00:06:05,839 Speaker 1: Here's what I mean by that, even if you wanna, 140 00:06:06,200 --> 00:06:08,800 Speaker 1: even if you're gonna sell, you know a position or 141 00:06:08,800 --> 00:06:11,240 Speaker 1: a stock or a fund that you just love and 142 00:06:11,279 --> 00:06:12,760 Speaker 1: you know it's gonna come back. 143 00:06:12,839 --> 00:06:15,400 Speaker 3: And let's face it, if you if you own good. 144 00:06:15,200 --> 00:06:18,120 Speaker 1: Stuff, it usually always does come back and comes back 145 00:06:18,120 --> 00:06:22,360 Speaker 1: in a reasonable time. Sell the stock in the IRA, 146 00:06:23,279 --> 00:06:25,800 Speaker 1: move it into the wrath, and then the recovery when 147 00:06:25,880 --> 00:06:28,560 Speaker 1: it happens, you can turn around and buy the same position, 148 00:06:29,160 --> 00:06:31,680 Speaker 1: you know, after a day or two, you know, to 149 00:06:31,760 --> 00:06:35,080 Speaker 1: get this conversion done, and then one hundred percent of 150 00:06:35,080 --> 00:06:37,840 Speaker 1: that rebound when it happens, happens tax. 151 00:06:37,760 --> 00:06:39,279 Speaker 3: Free, tax free. 152 00:06:39,720 --> 00:06:42,640 Speaker 1: That is a huge difference, you know, in terms of 153 00:06:42,680 --> 00:06:46,240 Speaker 1: tax efficiency over the long term. So you know, I know, 154 00:06:46,839 --> 00:06:49,400 Speaker 1: we talk about all the time, don't panic and sell 155 00:06:49,440 --> 00:06:52,240 Speaker 1: things during a down market. In the case of a 156 00:06:52,279 --> 00:06:55,880 Speaker 1: wroth conversion, if done responsibly, it could be a wonderful 157 00:06:55,920 --> 00:06:59,920 Speaker 1: opportunity that could save you thousands of dollars down the road. 158 00:07:00,240 --> 00:07:02,800 Speaker 1: And uh, more people need to take advantage of that. 159 00:07:02,960 --> 00:07:04,640 Speaker 2: Yeah, one last thought before we move on to that, 160 00:07:04,640 --> 00:07:07,080 Speaker 2: because you're right, I really do like this topic because 161 00:07:07,160 --> 00:07:09,720 Speaker 2: it introduces behavioral finance and how do people think and 162 00:07:09,760 --> 00:07:12,320 Speaker 2: so forth. So, because the roth conversion is a couple steps. 163 00:07:12,320 --> 00:07:13,880 Speaker 2: You got to move the money out of the traditional 164 00:07:13,920 --> 00:07:16,040 Speaker 2: into the roth. Yes, you pay taxes. But then the 165 00:07:16,120 --> 00:07:18,160 Speaker 2: question we frequently get is, oh, do we should we 166 00:07:18,160 --> 00:07:19,960 Speaker 2: invest it all right away in the wroth or should 167 00:07:19,960 --> 00:07:21,920 Speaker 2: we maybe should we wait? And my answer to that 168 00:07:22,040 --> 00:07:24,320 Speaker 2: is always, if we weren't talking about the Roth conversion, 169 00:07:24,360 --> 00:07:26,520 Speaker 2: it would have been invested anyway. So no, we're not 170 00:07:26,560 --> 00:07:28,520 Speaker 2: gonna we're not gonna screw around with trying to time 171 00:07:28,600 --> 00:07:30,080 Speaker 2: the market. We're gonna throw it right back where it 172 00:07:30,080 --> 00:07:32,480 Speaker 2: belongs because we were making this conscious decision to take 173 00:07:32,520 --> 00:07:33,760 Speaker 2: advantage of a market. 174 00:07:33,840 --> 00:07:34,720 Speaker 4: All right, that's enough. 175 00:07:34,560 --> 00:07:36,920 Speaker 2: About rock, So let's let's let's move on here to 176 00:07:37,000 --> 00:07:40,160 Speaker 2: a charitable giving. Letting it go without planning for it. 177 00:07:40,200 --> 00:07:43,200 Speaker 2: So this is a situation where you've built some significant wealth. 178 00:07:43,240 --> 00:07:44,800 Speaker 2: Maybe you're at the stage where you know you feel 179 00:07:44,840 --> 00:07:46,880 Speaker 2: like you want to give back and you can afford it. 180 00:07:46,920 --> 00:07:47,640 Speaker 4: So it could be. 181 00:07:47,720 --> 00:07:51,160 Speaker 2: Church Alma mater or local nonprofit that the ultimate destination 182 00:07:51,480 --> 00:07:53,680 Speaker 2: doesn't really matter. The intent is there and it's great, 183 00:07:53,920 --> 00:07:56,440 Speaker 2: but the execution is where there is where we can 184 00:07:56,480 --> 00:07:58,880 Speaker 2: move the needle a little bit. And oftentimes people leave 185 00:07:58,920 --> 00:08:00,640 Speaker 2: a lot of money and a lot of tech benefits 186 00:08:00,640 --> 00:08:03,440 Speaker 2: on the side. Some people just say, Hey, it's the holidays, 187 00:08:03,440 --> 00:08:05,360 Speaker 2: I'm feeling generous, we had a good year. I'm just 188 00:08:05,440 --> 00:08:08,080 Speaker 2: going to write a check to to this organization, and 189 00:08:08,120 --> 00:08:10,080 Speaker 2: that organization just says thank you. They don't care how 190 00:08:10,120 --> 00:08:11,640 Speaker 2: you do it. They're just glad to have the money. 191 00:08:12,400 --> 00:08:15,000 Speaker 2: You could be missing out on some opportunities to save 192 00:08:15,080 --> 00:08:18,760 Speaker 2: taxes while still giving that charity the same benefit. So 193 00:08:18,800 --> 00:08:21,280 Speaker 2: let's pretend every year you give twenty five thousand dollars 194 00:08:21,320 --> 00:08:23,320 Speaker 2: to a charity. You know, this is some people tithe 195 00:08:23,320 --> 00:08:25,920 Speaker 2: and this is their their tithing amount. You know, that's 196 00:08:25,960 --> 00:08:28,480 Speaker 2: two thousand bucks a month to a church something like that. 197 00:08:28,720 --> 00:08:30,480 Speaker 2: If you happen to be in the thirty two percent 198 00:08:30,520 --> 00:08:33,640 Speaker 2: bracket or tax deduction, if you're feeling super generous, what 199 00:08:33,679 --> 00:08:35,280 Speaker 2: that means is you could get money back from the 200 00:08:35,280 --> 00:08:37,200 Speaker 2: irs and give those dollars. 201 00:08:36,840 --> 00:08:37,520 Speaker 3: To a charity. 202 00:08:38,120 --> 00:08:40,520 Speaker 2: But so if you're doing it, that way. One of 203 00:08:40,559 --> 00:08:42,560 Speaker 2: the things you can do is you can bunch five 204 00:08:42,640 --> 00:08:44,960 Speaker 2: years worth of those gifts for east an arbitrary number, 205 00:08:45,200 --> 00:08:48,160 Speaker 2: one hundred and twenty five thousand dollars total. So you 206 00:08:48,160 --> 00:08:50,480 Speaker 2: would be carving that out from your assets, putting it 207 00:08:50,520 --> 00:08:53,120 Speaker 2: into a donor advice fund, and then funding that with 208 00:08:53,240 --> 00:08:56,920 Speaker 2: appreciated stock instead of cash. If you do this, the 209 00:08:57,000 --> 00:08:59,360 Speaker 2: donor Advice Fund is not a charity itself. 210 00:08:59,400 --> 00:08:59,960 Speaker 3: It's a middleman. 211 00:09:00,400 --> 00:09:02,520 Speaker 2: It sits on the money until you direct it to 212 00:09:02,640 --> 00:09:05,720 Speaker 2: actually release those funds at any time, could be years 213 00:09:05,720 --> 00:09:08,199 Speaker 2: from now to the ultimate charity, so the charity does 214 00:09:08,240 --> 00:09:09,920 Speaker 2: not get used to the idea. You're not giving a 215 00:09:10,000 --> 00:09:11,840 Speaker 2: charity one hundred and twenty five thousand dollars at once. 216 00:09:12,120 --> 00:09:14,240 Speaker 2: You are simply putting into a place from which you 217 00:09:14,320 --> 00:09:16,920 Speaker 2: will donate it kind of piecemeal it out. But if 218 00:09:16,960 --> 00:09:19,640 Speaker 2: you fund that with appreciated stock, remember you didn't sell 219 00:09:19,640 --> 00:09:21,520 Speaker 2: that stock. You just put the shares directly in the 220 00:09:21,520 --> 00:09:24,560 Speaker 2: donor Advice Fund. That means you didn't sell it. The 221 00:09:24,600 --> 00:09:26,679 Speaker 2: donor Advice Fund will sell. It will not pay taxes 222 00:09:26,720 --> 00:09:29,240 Speaker 2: that can save capital gains. You get the deduction for 223 00:09:29,320 --> 00:09:32,360 Speaker 2: all five years worth of of those donations so again, 224 00:09:32,920 --> 00:09:36,000 Speaker 2: think before you just stroke a check to charity, think 225 00:09:36,040 --> 00:09:37,880 Speaker 2: if there are other assets that you can give that 226 00:09:37,920 --> 00:09:39,920 Speaker 2: will give the charity the exact same dollar amount, but 227 00:09:40,000 --> 00:09:43,080 Speaker 2: also give you some tax advantages well. 228 00:09:43,120 --> 00:09:46,400 Speaker 1: And another opportunity in the charitable realm here is qualified 229 00:09:46,480 --> 00:09:49,160 Speaker 1: charitable distributions. And that's for people over seventy and a 230 00:09:49,200 --> 00:09:51,840 Speaker 1: half years of age, you know, and a lot of 231 00:09:51,840 --> 00:09:55,200 Speaker 1: these people are dealing with require minimum distributions. Anyway, Brian, 232 00:09:55,280 --> 00:09:58,000 Speaker 1: I have this discussion all the time, especially heading into 233 00:09:58,000 --> 00:09:58,560 Speaker 1: the fourth. 234 00:09:58,400 --> 00:10:00,000 Speaker 3: Quarter when we're doing review. 235 00:09:59,720 --> 00:10:03,439 Speaker 1: Meeting, because let's face it, the vast majority of charitable 236 00:10:03,480 --> 00:10:06,679 Speaker 1: giving happens in the fourth quarter of the year. And 237 00:10:07,160 --> 00:10:10,000 Speaker 1: if you know, you just talked about the benefits of 238 00:10:10,000 --> 00:10:12,560 Speaker 1: getting a tax deduction and all that and non non 239 00:10:12,640 --> 00:10:16,480 Speaker 1: qualified accounts. But in the IRA accounts, I tell people, 240 00:10:16,679 --> 00:10:19,960 Speaker 1: let us make the gifts for you. Look at me, like, 241 00:10:20,679 --> 00:10:22,599 Speaker 1: you mean you want us to take money out of 242 00:10:22,640 --> 00:10:25,600 Speaker 1: the portfolio that you guys manage and earn fees to 243 00:10:25,640 --> 00:10:28,000 Speaker 1: man And I'm like, yeah, because it's in your best 244 00:10:28,000 --> 00:10:30,720 Speaker 1: interest to do it that way. That's the best that's 245 00:10:31,120 --> 00:10:34,440 Speaker 1: the benefit of working with a true fiduciary advisor. That's 246 00:10:34,520 --> 00:10:38,040 Speaker 1: looking at what's in the best interest of the client. Again, 247 00:10:38,320 --> 00:10:42,080 Speaker 1: that strategy involves if the check goes directly out of 248 00:10:42,120 --> 00:10:45,199 Speaker 1: the IRA and goes directly to charity, it never even 249 00:10:45,480 --> 00:10:48,280 Speaker 1: hits your tax return, so you don't even need to 250 00:10:48,320 --> 00:10:52,960 Speaker 1: worry about qualifying, you know, for itemized deductions and eclipsing 251 00:10:52,960 --> 00:10:56,000 Speaker 1: your standard deduction. This money never hits your tax return, 252 00:10:56,360 --> 00:11:00,000 Speaker 1: you know, in the first place. It's an incredibly official 253 00:11:00,280 --> 00:11:03,559 Speaker 1: way to give money to charities, and too many people 254 00:11:03,720 --> 00:11:07,280 Speaker 1: just overlook it, don't pay attention, or their advisor isn't 255 00:11:07,320 --> 00:11:08,400 Speaker 1: talking to them about it. 256 00:11:10,120 --> 00:11:11,079 Speaker 3: Let's move on then. 257 00:11:11,440 --> 00:11:14,400 Speaker 2: Yeah, I can tell you're passionate about that. 258 00:11:14,880 --> 00:11:17,080 Speaker 3: I am. Yeah, yeah, these are these are things. 259 00:11:17,080 --> 00:11:19,760 Speaker 2: This is just understanding the tax code, knowing what's available 260 00:11:19,800 --> 00:11:22,640 Speaker 2: to you, and not just doing uh, you know, just 261 00:11:22,640 --> 00:11:25,160 Speaker 2: going through the motions like most people do. So one 262 00:11:25,240 --> 00:11:27,960 Speaker 2: last one, you know, you know, hanging on to uh, 263 00:11:28,000 --> 00:11:30,959 Speaker 2: you know, hanging on to money and worry not worrying 264 00:11:31,000 --> 00:11:33,480 Speaker 2: about umbrella insurance. Right, So, if you have three million 265 00:11:33,520 --> 00:11:36,280 Speaker 2: dollars worth of net worth and your liability coverage is 266 00:11:36,320 --> 00:11:37,920 Speaker 2: five hundred thousand, then you got about two and a 267 00:11:37,960 --> 00:11:40,480 Speaker 2: half million exposed. If you were to get sued by 268 00:11:40,520 --> 00:11:42,240 Speaker 2: somebody for slipping on the ice in front of your 269 00:11:42,280 --> 00:11:44,480 Speaker 2: house something like that. Uh So, if you want to 270 00:11:44,520 --> 00:11:47,600 Speaker 2: cover those assets an umbrella policy for two to five 271 00:11:47,600 --> 00:11:50,160 Speaker 2: million dollars in protection, well that only costs about three 272 00:11:50,200 --> 00:11:52,439 Speaker 2: to six hundred dollars a year. Talk to your property 273 00:11:52,440 --> 00:11:55,840 Speaker 2: casualty people, and remember these these are risks that are 274 00:11:55,960 --> 00:11:58,160 Speaker 2: very rare. However, they do happen, and we all have 275 00:11:58,200 --> 00:12:01,360 Speaker 2: horror stories of somebody's brothers in the former roommate who 276 00:12:01,400 --> 00:12:04,240 Speaker 2: got sued and got wiped out where oftentimes an umbrella 277 00:12:04,240 --> 00:12:05,280 Speaker 2: policy would have covered it. 278 00:12:05,520 --> 00:12:06,760 Speaker 3: If you skip this and. 279 00:12:06,880 --> 00:12:08,960 Speaker 2: One accident goes wrong, well you sure did save that 280 00:12:09,000 --> 00:12:12,000 Speaker 2: six hundred bucks for that year, but you expose yourself 281 00:12:12,040 --> 00:12:14,400 Speaker 2: to an awful lot more because of a car accident 282 00:12:14,480 --> 00:12:17,040 Speaker 2: or something something happens at your house. So anyway, be 283 00:12:17,520 --> 00:12:19,600 Speaker 2: thoughtful about all these different things. It's not as simple 284 00:12:19,640 --> 00:12:20,160 Speaker 2: as we think. 285 00:12:21,000 --> 00:12:22,080 Speaker 3: Here's the all Worth advice. 286 00:12:22,200 --> 00:12:26,719 Speaker 1: Wealth isn't in one bad decision. It's lost in the 287 00:12:26,880 --> 00:12:31,400 Speaker 1: thousand small oversights. Over time, fix the quiet mistakes and 288 00:12:31,480 --> 00:12:35,079 Speaker 1: your wealth will stay exactly where it belongs, working for 289 00:12:35,200 --> 00:12:39,880 Speaker 1: you and your family. Think your income only affects your taxes. 290 00:12:40,280 --> 00:12:43,640 Speaker 1: Next one overlooked number from this year that could quietly 291 00:12:43,720 --> 00:12:47,199 Speaker 1: cost you thousands down the road. You're listening to Simply Money, 292 00:12:47,200 --> 00:12:50,000 Speaker 1: presented by all Worth Financial on fifty five KRC the 293 00:12:50,400 --> 00:12:57,560 Speaker 1: talk station. You're listening to Simply Money presented by all 294 00:12:57,640 --> 00:13:01,640 Speaker 1: Worth Financial on Bob Sponseller along with Brian James straight 295 00:13:01,640 --> 00:13:03,880 Speaker 1: ahead of six forty three. We're going to talk about 296 00:13:03,960 --> 00:13:06,760 Speaker 1: selling a business, passing wealth to your kids, and even 297 00:13:06,800 --> 00:13:10,680 Speaker 1: cutting taxes through charitable giving. We'll dig into your biggest 298 00:13:10,720 --> 00:13:15,840 Speaker 1: planning questions coming up. Medicare enrollment for twenty twenty six 299 00:13:16,120 --> 00:13:19,440 Speaker 1: just opened up on Wednesday. Did you know you could 300 00:13:19,440 --> 00:13:23,040 Speaker 1: be subject to a Medicare search charge search charge? 301 00:13:23,080 --> 00:13:23,440 Speaker 3: Brian? 302 00:13:23,520 --> 00:13:27,400 Speaker 1: This is creeping up and impacting more and more folks. 303 00:13:27,160 --> 00:13:29,840 Speaker 1: It's worth spending a few minutes talking about this today. 304 00:13:30,080 --> 00:13:32,520 Speaker 2: Yeah, so your twenty twenty four income will determine if 305 00:13:32,520 --> 00:13:35,600 Speaker 2: you're going to pay some Medicare surch charges at some 306 00:13:35,640 --> 00:13:38,760 Speaker 2: point in the future, or even income related monthly adjustment 307 00:13:38,800 --> 00:13:41,960 Speaker 2: amounts in the near future. So the reason for this 308 00:13:41,960 --> 00:13:44,600 Speaker 2: this is something called erma, which is an acronym that 309 00:13:45,120 --> 00:13:46,960 Speaker 2: I wish I had looked up so I could remember 310 00:13:47,040 --> 00:13:49,439 Speaker 2: exactly what it stands for, But what it really stands 311 00:13:49,520 --> 00:13:52,599 Speaker 2: for is more expensive Medicare. If your taxable premium or 312 00:13:52,640 --> 00:13:56,079 Speaker 2: your taxable income rather exceeds certain thresholds than if you're 313 00:13:56,120 --> 00:13:58,840 Speaker 2: on Medicare Medicare advantage plans, then you're going to have 314 00:13:58,880 --> 00:14:01,160 Speaker 2: to pay the standard premium just like everybody for those 315 00:14:01,559 --> 00:14:04,120 Speaker 2: those coverages. Plus you're gonna pay a little bit of 316 00:14:04,240 --> 00:14:07,400 Speaker 2: a search charge there. You know, we talk all the 317 00:14:07,440 --> 00:14:09,880 Speaker 2: time about you know, I'll get questions from clients saying, well, 318 00:14:10,040 --> 00:14:11,360 Speaker 2: do you think they're going to put in, you know, 319 00:14:11,440 --> 00:14:14,719 Speaker 2: income based of Medicare. We're gonna have to pay for that, 320 00:14:15,040 --> 00:14:16,920 Speaker 2: And we've never called it that, but we do it 321 00:14:16,920 --> 00:14:19,360 Speaker 2: all the time. That's literally what you pay more if 322 00:14:19,360 --> 00:14:22,720 Speaker 2: you have more income. So so, Medicare premiums are expected 323 00:14:22,720 --> 00:14:24,800 Speaker 2: to rise by a pretty much a record amount over 324 00:14:24,800 --> 00:14:26,640 Speaker 2: the next year, and they're going to take a chunk 325 00:14:26,680 --> 00:14:29,760 Speaker 2: of that social Security cost of living adjustment that those 326 00:14:29,760 --> 00:14:32,360 Speaker 2: of you who are on Social Security that you might receive. 327 00:14:32,760 --> 00:14:35,680 Speaker 2: IRMA can more than double that standard monthly premium for 328 00:14:35,720 --> 00:14:39,680 Speaker 2: health coverage and almost double the drug premium. It's temporary, though, 329 00:14:40,040 --> 00:14:42,760 Speaker 2: meaning that IRMA looks back two years and it will 330 00:14:42,840 --> 00:14:45,880 Speaker 2: it'll it'll say here's what your income was two years ago. Therefore, 331 00:14:45,880 --> 00:14:48,720 Speaker 2: here's your Medicare premium this year. If your income falls, 332 00:14:48,760 --> 00:14:51,280 Speaker 2: that problem may resolve itself. So you are not banished 333 00:14:51,280 --> 00:14:54,680 Speaker 2: permanently to higher premiums necessarily unless your income stays that way. 334 00:14:55,920 --> 00:14:56,160 Speaker 3: Well. 335 00:14:56,200 --> 00:14:59,040 Speaker 1: Currently, only about eight percent, or a little over five 336 00:14:59,160 --> 00:15:04,600 Speaker 1: million Medicare enrollies pay this Medicare Part B surcharge. But 337 00:15:04,720 --> 00:15:07,760 Speaker 1: that's up from just one point seven million Americans when 338 00:15:07,800 --> 00:15:11,200 Speaker 1: the surch charge program began back in two thousand and seven. 339 00:15:11,520 --> 00:15:14,600 Speaker 1: So the number of people impacted by this has gone 340 00:15:14,640 --> 00:15:17,160 Speaker 1: up significantly, and it's going to continue to go up. 341 00:15:17,520 --> 00:15:22,320 Speaker 1: The Medicare Trustees report indicate that they see people subject 342 00:15:22,360 --> 00:15:27,720 Speaker 1: to that IRMA surcharge rising to almost nine million people 343 00:15:28,160 --> 00:15:30,440 Speaker 1: by the year twenty thirty four. And Brian, as you've 344 00:15:30,440 --> 00:15:32,760 Speaker 1: already called out, you've got to look at this stuff 345 00:15:32,800 --> 00:15:35,760 Speaker 1: when you're looking at where to take your income from 346 00:15:35,840 --> 00:15:38,400 Speaker 1: each month. And this is why we talk about having 347 00:15:38,400 --> 00:15:42,600 Speaker 1: a financial plan with multiple buckets of assets to draw from, 348 00:15:42,960 --> 00:15:45,160 Speaker 1: because if you take too much money out of an 349 00:15:45,200 --> 00:15:48,840 Speaker 1: IRA or do too large of a roth conversion, you 350 00:15:48,880 --> 00:15:51,720 Speaker 1: can run a foul of this Medicare surcharge, you can 351 00:15:51,800 --> 00:15:55,720 Speaker 1: have more of your Social Security income tax. And now 352 00:15:55,800 --> 00:15:58,800 Speaker 1: under the one Big Beautiful Bill, a lot of that 353 00:15:58,960 --> 00:16:02,960 Speaker 1: deduction that would talked about that can go away too 354 00:16:03,280 --> 00:16:05,440 Speaker 1: if you have too much income. So there's a lot 355 00:16:05,440 --> 00:16:07,920 Speaker 1: of reasons. And again we bang the drum on this 356 00:16:08,040 --> 00:16:11,400 Speaker 1: all the time. Congress keeps talking about making the tax 357 00:16:11,440 --> 00:16:15,040 Speaker 1: code simpler. All they tend to do is make it 358 00:16:15,160 --> 00:16:18,120 Speaker 1: more and more complicated every year. It's moving in the 359 00:16:18,480 --> 00:16:19,360 Speaker 1: opposite direction. 360 00:16:19,720 --> 00:16:21,440 Speaker 4: Yeah, And I want to share a quick story. 361 00:16:21,440 --> 00:16:24,800 Speaker 2: So I was just in our Northern Kentucky office meeting 362 00:16:24,800 --> 00:16:26,680 Speaker 2: with some of my favorite clients and they're great people, 363 00:16:26,760 --> 00:16:28,600 Speaker 2: fun people to hang around with, and they're just fine. 364 00:16:29,080 --> 00:16:31,560 Speaker 2: But like a lot of people, what they hit, they're 365 00:16:31,840 --> 00:16:34,360 Speaker 2: the largest part of their working career was spent during 366 00:16:34,360 --> 00:16:36,480 Speaker 2: that era where the only four oh one K choice 367 00:16:36,520 --> 00:16:38,520 Speaker 2: was pre tax and it was the only tax benefit 368 00:16:38,520 --> 00:16:40,360 Speaker 2: you're getting, So that's what you did. So they've got 369 00:16:40,400 --> 00:16:43,680 Speaker 2: several million dollars built up, but it's all sheltered inside 370 00:16:43,720 --> 00:16:46,840 Speaker 2: that pre tax IRA and they're of course going to 371 00:16:46,920 --> 00:16:49,760 Speaker 2: hit require minimum distribution age and that means that they'll 372 00:16:49,800 --> 00:16:52,000 Speaker 2: they have six digits worth of income coming out. 373 00:16:52,120 --> 00:16:54,680 Speaker 3: Before you know, before. 374 00:16:54,640 --> 00:16:56,640 Speaker 2: They get out of bed on New Year's Day every day. 375 00:16:56,680 --> 00:16:58,280 Speaker 2: Plus on top of that, you have SoC security and 376 00:16:58,320 --> 00:16:58,840 Speaker 2: other pens. 377 00:16:58,800 --> 00:17:00,680 Speaker 3: And there's nothing they can do about it, is what 378 00:17:00,720 --> 00:17:00,960 Speaker 3: it is. 379 00:17:01,040 --> 00:17:02,760 Speaker 2: So yeah, and so I don't want to leave people 380 00:17:02,760 --> 00:17:04,560 Speaker 2: to believe. You may look at your situation and you 381 00:17:04,560 --> 00:17:07,080 Speaker 2: may realize anything you can do about ERMA. You're just 382 00:17:07,080 --> 00:17:10,080 Speaker 2: gonna pay more for Medicare, and that stinks. But for 383 00:17:10,160 --> 00:17:12,120 Speaker 2: those of you, but that's at the end of the day, 384 00:17:12,160 --> 00:17:13,840 Speaker 2: take a breath and realize that that means you're in 385 00:17:13,840 --> 00:17:15,359 Speaker 2: a pretty good position. Right You've got to pay a 386 00:17:15,359 --> 00:17:18,040 Speaker 2: couple hundred dollars more for health insurance. That means you 387 00:17:18,080 --> 00:17:20,240 Speaker 2: have good, solid income. This is not going to bankrupt you. 388 00:17:20,280 --> 00:17:22,640 Speaker 2: It's just gonna annoy you, and there's not a ton 389 00:17:22,680 --> 00:17:24,600 Speaker 2: you can do about it. If that's the situation you're in. 390 00:17:24,920 --> 00:17:27,159 Speaker 2: For those of you who are in maybe that glide 391 00:17:27,160 --> 00:17:29,560 Speaker 2: path the last decade or so of retirement, this is 392 00:17:29,600 --> 00:17:31,320 Speaker 2: where you might consider, Yeah, I might be in the 393 00:17:31,359 --> 00:17:33,920 Speaker 2: highest bracket I'm ever going to be in, but maybe 394 00:17:33,920 --> 00:17:36,520 Speaker 2: I'm gonna start funding Wroth the ross side of my 395 00:17:36,560 --> 00:17:39,040 Speaker 2: four O one O K and forego that deduction that 396 00:17:39,080 --> 00:17:40,840 Speaker 2: I would get if I used the pre tax side, 397 00:17:40,920 --> 00:17:42,960 Speaker 2: but that will give me the ability. And you know, 398 00:17:42,960 --> 00:17:45,399 Speaker 2: if I'm in my fifties early sixties, then ten fifteen 399 00:17:45,480 --> 00:17:47,359 Speaker 2: years from now, I'll have a pile of tax free 400 00:17:47,359 --> 00:17:49,840 Speaker 2: money off of which I can draw. So I'd be 401 00:17:49,880 --> 00:17:52,560 Speaker 2: sacrificing my benefits in the current years in exchange for 402 00:17:52,600 --> 00:17:55,399 Speaker 2: benefits in the future years. I just described myself and 403 00:17:55,440 --> 00:17:58,000 Speaker 2: my wife were in an early fifties and highest bracket 404 00:17:58,000 --> 00:18:00,320 Speaker 2: will ever be in probably, and we are funding ROTH 405 00:18:00,359 --> 00:18:02,280 Speaker 2: for this exact reason. Most of our money is on 406 00:18:02,280 --> 00:18:04,160 Speaker 2: the pre tax side. For the last five six years, 407 00:18:04,160 --> 00:18:05,760 Speaker 2: I've been throwing it all on the raw side because 408 00:18:05,760 --> 00:18:09,480 Speaker 2: I've seen my happiest clients have given themselves the flexibility 409 00:18:09,520 --> 00:18:10,880 Speaker 2: to choose from two buckets. 410 00:18:12,200 --> 00:18:15,320 Speaker 1: All right, Well, talking about taxes and ERMA sur charges 411 00:18:15,320 --> 00:18:17,800 Speaker 1: can only be so much fun on a Friday, Brian, 412 00:18:17,920 --> 00:18:19,359 Speaker 1: let's switch gears here and. 413 00:18:19,320 --> 00:18:21,560 Speaker 3: Talk about how to get a deal on a Jeep. 414 00:18:22,000 --> 00:18:25,760 Speaker 1: Jeep just announced a wild promotion. From now through November three, 415 00:18:26,320 --> 00:18:29,520 Speaker 1: you can walk into a Jeep dealership carrying five hundred 416 00:18:29,520 --> 00:18:33,159 Speaker 1: dollars in monopoly play money and use it toward the 417 00:18:33,160 --> 00:18:37,720 Speaker 1: purchase of a twenty twenty five greet Jeep Grand Cherokee. Brian, 418 00:18:37,880 --> 00:18:39,919 Speaker 1: is this something you're thinking about doing? No? 419 00:18:40,760 --> 00:18:46,400 Speaker 2: But next question, now, so this is it's marketing, it's 420 00:18:46,400 --> 00:18:48,240 Speaker 2: all this, it's all it is. But what I do 421 00:18:48,440 --> 00:18:51,159 Speaker 2: like about this, Bob, this is kind of the first, 422 00:18:51,480 --> 00:18:53,520 Speaker 2: feels like the first thing we've seen out of the 423 00:18:53,560 --> 00:18:56,199 Speaker 2: automotive industry that's bringing us back to where we used 424 00:18:56,240 --> 00:18:58,240 Speaker 2: to be, where they where they really wanted to try 425 00:18:58,280 --> 00:19:00,879 Speaker 2: to push sales in Q four. So maybe we're getting 426 00:19:00,880 --> 00:19:03,359 Speaker 2: closer and closer to those inventory clear and sales or 427 00:19:03,440 --> 00:19:05,960 Speaker 2: zero percent financing. I'm a huge fan of zero percent 428 00:19:06,000 --> 00:19:08,359 Speaker 2: financing as long as you understand that the price didn't 429 00:19:08,359 --> 00:19:10,760 Speaker 2: move to cover their profit. Anyway, This is just a 430 00:19:10,840 --> 00:19:12,840 Speaker 2: marketing kind of a fun thing, I guess if you're 431 00:19:12,840 --> 00:19:15,359 Speaker 2: going to buy a Jeep Grand Cherokee anyway. This is 432 00:19:15,440 --> 00:19:19,240 Speaker 2: Jeep combining with Hasbro who makes Monopoly, and McDonald's, which 433 00:19:19,240 --> 00:19:22,080 Speaker 2: of course has the monopoly the Monopoly promotion they run 434 00:19:22,119 --> 00:19:24,560 Speaker 2: from time to time, and so what you can walk 435 00:19:24,560 --> 00:19:26,960 Speaker 2: in with five hundred dollars of this play money and 436 00:19:27,400 --> 00:19:29,760 Speaker 2: you can get a discount on a Jeep Grand Cherokee, 437 00:19:29,800 --> 00:19:31,879 Speaker 2: which is really nothing more than them saying we're going 438 00:19:31,960 --> 00:19:34,200 Speaker 2: to drop the price by five hundred bucks, which isn't 439 00:19:34,200 --> 00:19:34,600 Speaker 2: that much? 440 00:19:35,080 --> 00:19:35,440 Speaker 3: All right? 441 00:19:35,520 --> 00:19:39,720 Speaker 1: Success doesn't always equal satisfaction? How to move past to 442 00:19:39,840 --> 00:19:43,320 Speaker 1: career plateau? Coming up next. You're listening to Simply Money 443 00:19:43,359 --> 00:19:46,800 Speaker 1: presented by all Worth Financial on fifty five KRC the 444 00:19:46,840 --> 00:19:53,520 Speaker 1: talk station. You're listening to Simply Money presented by all 445 00:19:53,560 --> 00:19:56,439 Speaker 1: Worth Financial on Bob Spon Seller along with Brian James, 446 00:19:56,520 --> 00:20:00,480 Speaker 1: joined tonight by our career expert Julie Bouk and Julie, 447 00:20:00,480 --> 00:20:03,320 Speaker 1: thanks as always for taking some time with us tonight 448 00:20:03,880 --> 00:20:07,640 Speaker 1: and interesting topic we're going to cover tonight, career plateaus. 449 00:20:07,800 --> 00:20:09,960 Speaker 3: What to do when we're. 450 00:20:09,720 --> 00:20:13,320 Speaker 1: Feeling successful in our job or in our career, but 451 00:20:13,440 --> 00:20:17,479 Speaker 1: we're no longer feeling challenged. How do you navigate people 452 00:20:17,520 --> 00:20:18,679 Speaker 1: through that situation? 453 00:20:18,840 --> 00:20:21,520 Speaker 4: Julie, You know, there are. 454 00:20:21,440 --> 00:20:24,719 Speaker 5: A lot of pivot points in our careers, like decision points, 455 00:20:24,800 --> 00:20:28,480 Speaker 5: where we feel maybe something is off. We want more, 456 00:20:28,600 --> 00:20:32,520 Speaker 5: we want different, we want less, and those are natural 457 00:20:33,400 --> 00:20:37,080 Speaker 5: moments in our career. The problem is that we've been 458 00:20:37,119 --> 00:20:40,320 Speaker 5: taught to just sort of swallow them down and continue 459 00:20:40,359 --> 00:20:43,159 Speaker 5: on and make the best of what we have. I 460 00:20:43,200 --> 00:20:46,080 Speaker 5: think the most important smartest thing to do when it 461 00:20:46,080 --> 00:20:48,200 Speaker 5: comes to your career is when you're starting to feel 462 00:20:48,200 --> 00:20:51,280 Speaker 5: like my career is at a plateau. The first thing 463 00:20:51,320 --> 00:20:54,280 Speaker 5: you need to do is figure out why. What is 464 00:20:54,320 --> 00:20:58,440 Speaker 5: it specifically that has plateaus if you are if it's 465 00:20:58,480 --> 00:21:02,960 Speaker 5: things like income, if its level of responsibility, if it's 466 00:21:03,560 --> 00:21:07,679 Speaker 5: the depth of the challenging projects or not that you 467 00:21:07,800 --> 00:21:11,800 Speaker 5: get exposed to. You have to really articulate what it 468 00:21:12,000 --> 00:21:15,239 Speaker 5: is that is plateaued, and before that, if you have 469 00:21:15,320 --> 00:21:17,159 Speaker 5: to do that before you can figure out what to 470 00:21:17,160 --> 00:21:21,920 Speaker 5: do next. Once you can identify the source of your discomfort, 471 00:21:22,359 --> 00:21:26,760 Speaker 5: it's much easier to identify and so pinpointing that, Okay, 472 00:21:26,880 --> 00:21:28,480 Speaker 5: you know, I used to like this, This used to 473 00:21:28,520 --> 00:21:31,639 Speaker 5: work for me, it's not now, or I feel like 474 00:21:32,040 --> 00:21:35,520 Speaker 5: something's changed. The most important thing to do at that 475 00:21:35,560 --> 00:21:38,560 Speaker 5: point is to get into self discovery and investigative mode. 476 00:21:38,600 --> 00:21:41,399 Speaker 5: What has changed. It could be something at work. It 477 00:21:41,440 --> 00:21:44,320 Speaker 5: could be a new leader. It could be the company 478 00:21:44,400 --> 00:21:46,880 Speaker 5: is changing customers or targets and it's not as fun 479 00:21:46,920 --> 00:21:49,720 Speaker 5: for you anymore. But it also could be just a 480 00:21:49,840 --> 00:21:53,480 Speaker 5: yearning from a real career standpoint to do something different. 481 00:21:53,880 --> 00:21:56,679 Speaker 5: Maybe you've reached the end of the road for the 482 00:21:56,680 --> 00:21:59,160 Speaker 5: top of the ladder in what you do, and it's 483 00:21:59,200 --> 00:22:02,040 Speaker 5: time to do a series pivot. So before we take 484 00:22:02,080 --> 00:22:05,439 Speaker 5: on big moves like that, it's really important to figure 485 00:22:05,440 --> 00:22:09,000 Speaker 5: out what's not working for me today and what am 486 00:22:09,000 --> 00:22:09,879 Speaker 5: I willing to do about it? 487 00:22:10,000 --> 00:22:12,520 Speaker 2: Hey, Julie, do you find that people get stuck from 488 00:22:12,520 --> 00:22:15,240 Speaker 2: a standpoint of well, this has been a good company, 489 00:22:15,359 --> 00:22:17,240 Speaker 2: and so whatever I do, it's just out of the 490 00:22:17,320 --> 00:22:19,439 Speaker 2: question that I might go somewhere else. I mean, it 491 00:22:19,440 --> 00:22:21,280 Speaker 2: seems like, yeah, people hide behind it all the time, 492 00:22:21,520 --> 00:22:22,560 Speaker 2: and how do you get over that home? 493 00:22:23,760 --> 00:22:26,720 Speaker 5: So I have four there's four pillars of career happiness. 494 00:22:26,760 --> 00:22:29,440 Speaker 5: One is you like what you do, second is you're 495 00:22:29,480 --> 00:22:32,359 Speaker 5: good at it. The third is you're getting paid in 496 00:22:32,400 --> 00:22:34,919 Speaker 5: a way that you can live. And the fourth is 497 00:22:35,000 --> 00:22:36,840 Speaker 5: you're in there, you're doing it in the right place. 498 00:22:37,359 --> 00:22:42,760 Speaker 5: And the number one reason people leave their organizations is 499 00:22:42,800 --> 00:22:45,359 Speaker 5: the fourth one, which is it's either I don't like 500 00:22:45,359 --> 00:22:47,600 Speaker 5: the culture anymore, the mission, I don't like my leader. 501 00:22:47,640 --> 00:22:50,720 Speaker 5: That's actually the number one reason in that bucket. And 502 00:22:50,800 --> 00:22:53,480 Speaker 5: so so when you are in a situation when you 503 00:22:53,480 --> 00:22:56,159 Speaker 5: look around and say, I really like it here, you know, 504 00:22:56,200 --> 00:22:59,800 Speaker 5: I like what we do I like my colleagues, I'm 505 00:22:59,840 --> 00:23:03,800 Speaker 5: a ligned with mission and it's still great. Then you 506 00:23:03,880 --> 00:23:06,359 Speaker 5: owe it to yourself to figure out to look around 507 00:23:06,400 --> 00:23:09,800 Speaker 5: and say, what is it? What else is available in 508 00:23:09,840 --> 00:23:12,560 Speaker 5: this organization? How am I I contribute? How might I 509 00:23:12,600 --> 00:23:15,639 Speaker 5: take what's on my plate? And you know, showed it 510 00:23:15,720 --> 00:23:17,960 Speaker 5: up a little bit? Maybe that to add something. Maybe 511 00:23:18,000 --> 00:23:22,840 Speaker 5: it's get involved in something that's maybe not typically something 512 00:23:22,840 --> 00:23:25,840 Speaker 5: you're responsible for. Maybe you get involved on a different team. 513 00:23:26,400 --> 00:23:29,080 Speaker 5: Maybe you just sort of add something to your overall plate. 514 00:23:29,160 --> 00:23:31,919 Speaker 5: When you like where you are. I always tell people, 515 00:23:32,119 --> 00:23:35,000 Speaker 5: let's always try to figure out if you can fix 516 00:23:35,040 --> 00:23:38,880 Speaker 5: it where you are before you change into a culture 517 00:23:38,960 --> 00:23:43,720 Speaker 5: in an organization that's completely unknown to you and find 518 00:23:43,720 --> 00:23:45,680 Speaker 5: that you might be in the same position or worse. 519 00:23:47,560 --> 00:23:50,400 Speaker 3: Julie, I to me, I think, correct me if I'm wrong. 520 00:23:50,440 --> 00:23:53,119 Speaker 1: But it seems that this comes down to communication. You know, 521 00:23:53,160 --> 00:23:55,800 Speaker 1: in that scenario you just talk about. And I got 522 00:23:55,840 --> 00:23:58,359 Speaker 1: a call yesterday from a young man who's just getting 523 00:23:58,400 --> 00:24:00,920 Speaker 1: started in his career. You know, I happen to coach 524 00:24:01,000 --> 00:24:03,880 Speaker 1: him in high school baseball, so we still have maintained 525 00:24:03,880 --> 00:24:06,400 Speaker 1: a connection, and he was in a place where he's 526 00:24:06,440 --> 00:24:08,640 Speaker 1: just like, Hey, I don't know what to do here, 527 00:24:09,200 --> 00:24:12,040 Speaker 1: and he's afraid to go talk to anybody about it. 528 00:24:12,440 --> 00:24:16,320 Speaker 1: So walk us through the most effective ways to navigate 529 00:24:16,359 --> 00:24:21,000 Speaker 1: this from a communications standpoint, Because people sometimes are afraid 530 00:24:21,080 --> 00:24:24,199 Speaker 1: to approach their boss, you know, if they express any 531 00:24:24,680 --> 00:24:28,600 Speaker 1: displeasure at all, they're afraid of repercussions. How do you 532 00:24:28,680 --> 00:24:32,280 Speaker 1: coach people how to broach the subject with folks in 533 00:24:32,320 --> 00:24:35,640 Speaker 1: the organization If you're trying to stay at the same 534 00:24:35,640 --> 00:24:39,000 Speaker 1: company for all the reasons you just mentioned, but you 535 00:24:39,119 --> 00:24:42,200 Speaker 1: have to have a conversation, and because things need to change, 536 00:24:42,200 --> 00:24:43,200 Speaker 1: how do you navigate that? 537 00:24:44,880 --> 00:24:47,320 Speaker 5: So I would touch it this way. I would say 538 00:24:47,320 --> 00:24:50,960 Speaker 5: something like, I'd like to talk to you about the 539 00:24:51,040 --> 00:24:53,880 Speaker 5: work I'm doing, what might be next, what things I'm 540 00:24:53,920 --> 00:24:56,560 Speaker 5: interested in doing beyond what I'm doing now? Can we 541 00:24:56,600 --> 00:24:58,800 Speaker 5: sit down and talk about that? And so you want 542 00:24:58,800 --> 00:25:02,439 Speaker 5: to open it up, not that I'm not happy, what 543 00:25:02,560 --> 00:25:04,960 Speaker 5: can you do for me? Anything that smacks of that 544 00:25:05,160 --> 00:25:07,960 Speaker 5: is when we start calling someone entitled. So it's more 545 00:25:07,960 --> 00:25:12,119 Speaker 5: about how can I have a mutually beneficial conversation about 546 00:25:12,119 --> 00:25:15,400 Speaker 5: my role in this organization than what I see myself 547 00:25:15,800 --> 00:25:19,160 Speaker 5: doing different different things or doing more of or less 548 00:25:19,200 --> 00:25:21,840 Speaker 5: of moving forward and then go to that meeting, go 549 00:25:21,920 --> 00:25:23,720 Speaker 5: to that comp Once you've set it up like that, 550 00:25:24,280 --> 00:25:27,320 Speaker 5: go to the conversation with ideas, be ready to say 551 00:25:28,119 --> 00:25:30,240 Speaker 5: I really feel like I have You know, I spent 552 00:25:30,280 --> 00:25:32,440 Speaker 5: a lot of time over here on these kinds of projects, 553 00:25:32,600 --> 00:25:34,679 Speaker 5: which has been great. I really feel like I know 554 00:25:34,760 --> 00:25:37,760 Speaker 5: it really really well. What I'd really love to do 555 00:25:37,920 --> 00:25:40,399 Speaker 5: moving forward if we can find an opportunity, I'd like 556 00:25:40,440 --> 00:25:43,560 Speaker 5: to do this, or what marketing is doing is really 557 00:25:43,560 --> 00:25:45,560 Speaker 5: interesting to me. So you want to go in with 558 00:25:45,680 --> 00:25:50,520 Speaker 5: a spirit of how can we work together to help 559 00:25:50,640 --> 00:25:54,280 Speaker 5: me direct my skills and abilities and my experience here 560 00:25:54,840 --> 00:25:58,800 Speaker 5: at something to continue helping this organization versus I'm not 561 00:25:58,960 --> 00:26:02,120 Speaker 5: happy what should I do? Because that's where you are 562 00:26:02,240 --> 00:26:06,080 Speaker 5: offloading your career management onto somebody else, and that's not 563 00:26:06,200 --> 00:26:08,720 Speaker 5: fair to them and it's also not realistic. 564 00:26:09,160 --> 00:26:11,000 Speaker 2: Julie, So I want to I want to go slightly 565 00:26:11,000 --> 00:26:13,280 Speaker 2: different direction here because I think a lot there's a 566 00:26:13,280 --> 00:26:15,640 Speaker 2: lot of drum beats out there over the last couple 567 00:26:15,640 --> 00:26:17,840 Speaker 2: of decades about you know, pulling yourself up by your 568 00:26:17,840 --> 00:26:19,760 Speaker 2: own bootstraps and being your own. 569 00:26:19,600 --> 00:26:20,879 Speaker 4: Boss and all that kind of stuff. 570 00:26:21,160 --> 00:26:24,399 Speaker 2: How often do you run across people for whom they're 571 00:26:24,480 --> 00:26:26,600 Speaker 2: they're they're maybe leaning toward I want to break away 572 00:26:27,000 --> 00:26:28,919 Speaker 2: and start my own thing. You know, we're fortunate here 573 00:26:28,920 --> 00:26:30,720 Speaker 2: in Cincinnati. We have a lot of fortune five hundred 574 00:26:30,760 --> 00:26:33,119 Speaker 2: companies around us, so we're all somebody's employee, and that's 575 00:26:33,160 --> 00:26:35,560 Speaker 2: a wonderful structure that we have. But do people often 576 00:26:35,640 --> 00:26:37,280 Speaker 2: come to you and say, forget it, I just want 577 00:26:37,280 --> 00:26:39,119 Speaker 2: to bust out and do my own thing. And what 578 00:26:39,280 --> 00:26:40,679 Speaker 2: is your advice for them? Because that can be an 579 00:26:40,880 --> 00:26:42,240 Speaker 2: exhilarating and terrifying step. 580 00:26:43,720 --> 00:26:46,920 Speaker 5: It is so so picture. You've got two buckets, and 581 00:26:47,040 --> 00:26:49,760 Speaker 5: one of them is everything in that bucket is your 582 00:26:49,840 --> 00:26:52,639 Speaker 5: career and your job right now, and the other bucket 583 00:26:52,800 --> 00:26:54,840 Speaker 5: is what you want to build. First of all, you've 584 00:26:54,880 --> 00:26:57,200 Speaker 5: got to get intempty. You've really got to get clarity 585 00:26:57,400 --> 00:27:00,320 Speaker 5: on what you want to do, what the market for it. 586 00:27:00,440 --> 00:27:03,040 Speaker 5: All that due diligent stuff, and what we counsel people 587 00:27:03,119 --> 00:27:04,879 Speaker 5: on is once you've figured out that there is a 588 00:27:04,960 --> 00:27:06,600 Speaker 5: market and there is a need for it, just know 589 00:27:06,720 --> 00:27:08,200 Speaker 5: that it's going to take a lot longer than you 590 00:27:08,320 --> 00:27:11,520 Speaker 5: think to do it just because it's a good just 591 00:27:11,560 --> 00:27:14,680 Speaker 5: because there's demand, just because it's a good idea, it 592 00:27:14,760 --> 00:27:16,480 Speaker 5: doesn't mean people will pay for it. And a lot 593 00:27:16,520 --> 00:27:18,920 Speaker 5: of entrepreneurs will found that out. And so how can 594 00:27:19,000 --> 00:27:21,600 Speaker 5: you test while you're still keeping one eye on keeping 595 00:27:21,600 --> 00:27:24,520 Speaker 5: your job. How can you test your ideas? How can 596 00:27:24,600 --> 00:27:28,320 Speaker 5: you connect with people in a similar or adjacent space 597 00:27:28,720 --> 00:27:31,560 Speaker 5: to get their ideas? And so that you are slowly 598 00:27:31,800 --> 00:27:35,200 Speaker 5: filling the second bucket, and at that point you'll know 599 00:27:35,920 --> 00:27:38,479 Speaker 5: if you get to the point where you gather knowledge, 600 00:27:38,520 --> 00:27:42,199 Speaker 5: information resources, you're testing your theory. You're starting to get 601 00:27:42,240 --> 00:27:44,200 Speaker 5: some real interest people who are willing to pay you. 602 00:27:44,920 --> 00:27:46,840 Speaker 5: Then at some point you've got to let go. You've 603 00:27:46,840 --> 00:27:48,160 Speaker 5: got to dump out that other bucket. 604 00:27:48,520 --> 00:27:51,400 Speaker 1: Great advice is always Julie, thanks again for spending time 605 00:27:51,480 --> 00:27:53,879 Speaker 1: with us. Tonight, you're listening to Simply Money presented by 606 00:27:53,880 --> 00:27:57,320 Speaker 1: all Worth Financial on fifty five KRC, the talk station. 607 00:28:02,240 --> 00:28:05,000 Speaker 1: You're listening to Simply Money presented by all Worth Financial. 608 00:28:05,080 --> 00:28:08,200 Speaker 1: I'm Bob Sponsorer along with Brian James. Do you have 609 00:28:08,240 --> 00:28:10,680 Speaker 1: a financial question you'd like for us to answer. There's 610 00:28:10,720 --> 00:28:12,879 Speaker 1: a red button you can click while you're listening to 611 00:28:13,000 --> 00:28:15,959 Speaker 1: the show right on the iHeart app. Simply record your 612 00:28:16,040 --> 00:28:19,440 Speaker 1: question and it will come straight to us. All right, 613 00:28:19,560 --> 00:28:23,480 Speaker 1: John in Columbia Tusculum leads us off tonight, Brian. He says, 614 00:28:23,520 --> 00:28:25,440 Speaker 1: I have a piece of land in Florida that I 615 00:28:25,680 --> 00:28:28,720 Speaker 1: never built anything on, even though I thought I would. 616 00:28:29,400 --> 00:28:33,159 Speaker 1: Can I claim it as an investment property once it sells? 617 00:28:34,080 --> 00:28:37,080 Speaker 2: John, congratulations on sitting on something that has been a 618 00:28:37,119 --> 00:28:39,240 Speaker 2: pretty good thing to own over the past couple of decades. 619 00:28:39,280 --> 00:28:42,320 Speaker 2: So some people might be listening to this question saying, well, 620 00:28:42,360 --> 00:28:43,600 Speaker 2: of course it's an investment property. 621 00:28:43,640 --> 00:28:44,280 Speaker 4: What else would that be. 622 00:28:44,360 --> 00:28:47,520 Speaker 2: Well, that's actually a certain status according to the IRS. 623 00:28:47,840 --> 00:28:49,760 Speaker 2: And the reason people ask about this is because it 624 00:28:49,840 --> 00:28:52,720 Speaker 2: could if it is classified as investment property, it could 625 00:28:52,800 --> 00:28:56,520 Speaker 2: potentially count for tax strategies like a ten thirty one exchange. 626 00:28:56,880 --> 00:28:59,160 Speaker 2: So John John doesn't say exactly what he wants to 627 00:28:59,200 --> 00:29:01,120 Speaker 2: do with the proceeds, but if he's planning on buying 628 00:29:01,160 --> 00:29:03,920 Speaker 2: another piece of property, he could potentially avoid the capital 629 00:29:03,960 --> 00:29:07,320 Speaker 2: gains and roll them forward into the next purchase. But 630 00:29:07,560 --> 00:29:10,440 Speaker 2: so to count as investment property was really what John's asking. 631 00:29:10,880 --> 00:29:12,760 Speaker 2: You have to show that it was held for investment 632 00:29:12,880 --> 00:29:15,680 Speaker 2: or business purposes, not just personal use. So that means 633 00:29:15,680 --> 00:29:17,600 Speaker 2: if as long as you never lived on it, rented 634 00:29:17,640 --> 00:29:19,680 Speaker 2: it or used it personally for anything, just owned it 635 00:29:19,720 --> 00:29:21,400 Speaker 2: and sat on it for a while. That is usually 636 00:29:21,480 --> 00:29:23,960 Speaker 2: good support for calling it an investment. That means it 637 00:29:24,000 --> 00:29:26,160 Speaker 2: would be subject to capital gains tax. If you owned 638 00:29:26,160 --> 00:29:27,720 Speaker 2: it for more than a year and you sold it 639 00:29:27,760 --> 00:29:30,479 Speaker 2: for more than you bought it for, then you're going 640 00:29:30,520 --> 00:29:33,320 Speaker 2: to pay fifteen well, possibly zero, fifteen percent or twenty percent, 641 00:29:33,360 --> 00:29:36,600 Speaker 2: depending on your income, most likely fifteen percent. There are 642 00:29:36,680 --> 00:29:39,240 Speaker 2: no special deductions in this case. Unlike a rental property, 643 00:29:39,240 --> 00:29:42,440 Speaker 2: there's no depreciation because rawland is not appreciable, and the 644 00:29:42,560 --> 00:29:46,120 Speaker 2: documentation matters. Make sure you have all your records before 645 00:29:46,120 --> 00:29:47,960 Speaker 2: you pull the trigger on this. But yes, the answer 646 00:29:48,080 --> 00:29:51,360 Speaker 2: to your question a long answer is simply yes. So 647 00:29:51,520 --> 00:29:54,000 Speaker 2: with that, we'll move on to Lisa Florence. Lisa and Florence. 648 00:29:54,240 --> 00:29:56,000 Speaker 3: Why don't you just say that, Brian. 649 00:29:56,440 --> 00:29:58,560 Speaker 2: Because I like the sound of my own voice, Bob 650 00:29:58,880 --> 00:30:01,120 Speaker 2: but interrupting me, I'm pretty. 651 00:30:02,760 --> 00:30:06,000 Speaker 4: So Lisa and Florence. Uh, she's in a good mood. 652 00:30:06,040 --> 00:30:08,240 Speaker 2: She says, we're healthy today, but I've seen friends drained 653 00:30:08,280 --> 00:30:10,360 Speaker 2: by long term care costs. What if we end up 654 00:30:10,360 --> 00:30:12,520 Speaker 2: burning through our savings just or survive? How would you 655 00:30:12,560 --> 00:30:13,000 Speaker 2: advise her? 656 00:30:13,040 --> 00:30:13,240 Speaker 3: Bob. 657 00:30:13,920 --> 00:30:17,600 Speaker 1: Well, Lisa, it's I'll answer your question. If you end 658 00:30:17,720 --> 00:30:20,080 Speaker 1: up burning up through all your savings just to survive, 659 00:30:20,240 --> 00:30:23,520 Speaker 1: you're gonna end up on Medicaid, which is not a 660 00:30:23,720 --> 00:30:27,800 Speaker 1: desirable situation for for folks to find themselves in, you know, 661 00:30:27,840 --> 00:30:30,400 Speaker 1: if it can be avoided. So it sounds to me, 662 00:30:30,520 --> 00:30:33,000 Speaker 1: Lisa like you need to sit down and just you know, 663 00:30:33,200 --> 00:30:35,600 Speaker 1: have a financial plan done for you by a good 664 00:30:35,680 --> 00:30:40,160 Speaker 1: fiduciary advisor, and you got to balance, you know, should 665 00:30:40,960 --> 00:30:43,320 Speaker 1: long term care insurance be part of our plan to 666 00:30:43,480 --> 00:30:46,920 Speaker 1: ensure that risk? Can you afford to self ensure? You know, 667 00:30:47,080 --> 00:30:50,320 Speaker 1: run some numbers based on probabilities. We can't predict all 668 00:30:50,440 --> 00:30:54,040 Speaker 1: potential outcomes here, but if you if you run a 669 00:30:54,080 --> 00:30:56,680 Speaker 1: good financial plan and sit down with a good advisor, 670 00:30:57,760 --> 00:30:59,440 Speaker 1: chances are you're going to be able to come up 671 00:30:59,480 --> 00:31:02,760 Speaker 1: with So I'm kind of a good solution better than 672 00:31:02,880 --> 00:31:06,000 Speaker 1: just allowing things to drain, as you said, and then 673 00:31:06,160 --> 00:31:11,160 Speaker 1: be you know, rely on medicaid to survive. So that's 674 00:31:11,240 --> 00:31:13,680 Speaker 1: my answer, Lisa, sit down and look at some numbers 675 00:31:13,720 --> 00:31:16,320 Speaker 1: and do a good financial plan, all right, William and Mason, 676 00:31:17,000 --> 00:31:21,480 Speaker 1: he says, I'm trustee of our family's estate. Honestly, I'm overwhelmed. 677 00:31:21,560 --> 00:31:24,160 Speaker 1: How do I make sure I'm carrying out my parents' 678 00:31:24,240 --> 00:31:28,440 Speaker 1: wishes without making mistakes that could split the family apart. 679 00:31:28,600 --> 00:31:30,960 Speaker 1: This sounds like a tough situation, Brian. 680 00:31:31,040 --> 00:31:32,840 Speaker 4: Yeah, William, you're in a little bit of a tough spot. 681 00:31:32,880 --> 00:31:33,760 Speaker 4: But it's not uncommon. 682 00:31:33,960 --> 00:31:36,240 Speaker 2: This is really a very common thing because there's a 683 00:31:36,280 --> 00:31:39,160 Speaker 2: lot of pressure being that trustee. You know, sometimes feels 684 00:31:39,160 --> 00:31:41,160 Speaker 2: like you're walking on a tightrope and you could step 685 00:31:41,200 --> 00:31:43,360 Speaker 2: off the wrong way to either side and honk somebody 686 00:31:43,440 --> 00:31:45,960 Speaker 2: off in the family. So make sure, first off, make 687 00:31:46,000 --> 00:31:47,720 Speaker 2: sure you understand what the job is, not just the 688 00:31:47,800 --> 00:31:51,200 Speaker 2: title being the trustee isn't isn't really just having the 689 00:31:51,360 --> 00:31:54,320 Speaker 2: final say. It's really about carrying the trust exactly as written. 690 00:31:54,360 --> 00:31:56,400 Speaker 2: You're not the person who has the final say. That 691 00:31:56,560 --> 00:31:58,040 Speaker 2: was the grandt tour who set up the trust in 692 00:31:58,080 --> 00:32:00,720 Speaker 2: the first place. Your job is simply to execute what 693 00:32:00,920 --> 00:32:03,600 Speaker 2: mom or Dad or whoever else wrote down on paper 694 00:32:03,680 --> 00:32:06,560 Speaker 2: for the family to respond to when they ultimately passed on. 695 00:32:06,760 --> 00:32:09,400 Speaker 2: So here in the tri state courts treat for trustees 696 00:32:09,440 --> 00:32:11,719 Speaker 2: as fiduciaries, which means you are legally bound to put 697 00:32:11,760 --> 00:32:14,560 Speaker 2: beneficiaries interests before your own. So you do have the 698 00:32:14,960 --> 00:32:16,680 Speaker 2: backing of the court to do these kinds of things. 699 00:32:17,080 --> 00:32:20,680 Speaker 2: Document everything, write down everything, make sure everybody is transparent, 700 00:32:20,760 --> 00:32:23,000 Speaker 2: Where did every penny go? And so on and so forth, 701 00:32:23,840 --> 00:32:26,040 Speaker 2: and try to stay neutral. That's hard to do, but 702 00:32:26,200 --> 00:32:28,560 Speaker 2: it doesn't take much for siblings to feel slighted. That is, 703 00:32:28,960 --> 00:32:31,160 Speaker 2: if there's something in that trust that makes a sibling 704 00:32:31,240 --> 00:32:33,480 Speaker 2: feel like they're less than or something like that, that's 705 00:32:33,520 --> 00:32:35,480 Speaker 2: going to be more between mom or dad and the 706 00:32:35,520 --> 00:32:36,400 Speaker 2: sibling than it is you. 707 00:32:36,400 --> 00:32:40,120 Speaker 4: You are simply executing on that document, So feel free 708 00:32:40,160 --> 00:32:41,040 Speaker 4: to ask for help. 709 00:32:41,320 --> 00:32:44,360 Speaker 2: You can always go out and hire an attorney to 710 00:32:44,480 --> 00:32:46,440 Speaker 2: help you act as a co trustee. That is your 711 00:32:46,520 --> 00:32:49,120 Speaker 2: right as a trustee of a trust. You can hire 712 00:32:49,160 --> 00:32:50,840 Speaker 2: outside counsel if you need to do that, do it. 713 00:32:51,400 --> 00:32:53,840 Speaker 2: But anyway, important job and we wish you luck. William 714 00:32:53,880 --> 00:32:56,760 Speaker 2: trying to get that taken care of. Robert and Tarris Park. 715 00:32:56,840 --> 00:32:58,680 Speaker 2: So he's on the board of a small private company 716 00:32:58,760 --> 00:33:01,560 Speaker 2: and he has invested his own money heavily alongside of it. 717 00:33:02,160 --> 00:33:03,000 Speaker 4: How did he wants to know? 718 00:33:03,080 --> 00:33:05,720 Speaker 2: How does he protect himself as if the company should 719 00:33:05,760 --> 00:33:07,080 Speaker 2: run into legal or financial trouble. 720 00:33:07,160 --> 00:33:11,680 Speaker 1: Bob Well Robert, you got two you know, kind of 721 00:33:11,760 --> 00:33:12,760 Speaker 1: separate topics here. 722 00:33:12,920 --> 00:33:14,560 Speaker 3: One the legal liability. 723 00:33:14,640 --> 00:33:17,160 Speaker 1: I'm going to assume that this company is structured as 724 00:33:17,200 --> 00:33:20,840 Speaker 1: an S corp, C corp, you know, limited LLC something 725 00:33:20,960 --> 00:33:24,040 Speaker 1: like that, some kind of corporate structure. Most of the time, 726 00:33:24,120 --> 00:33:27,560 Speaker 1: that's going to protect you from any personal legal liability. 727 00:33:27,680 --> 00:33:31,200 Speaker 1: The liability will be, you know, limited by the assets 728 00:33:31,240 --> 00:33:35,400 Speaker 1: of the company. You can get umbrella protection, umbrella lot 729 00:33:35,440 --> 00:33:39,160 Speaker 1: of liability policy that we recommend everybody get, you know, 730 00:33:39,240 --> 00:33:42,880 Speaker 1: to protect yourself. But I would be less concerned about 731 00:33:43,360 --> 00:33:46,040 Speaker 1: the legal liability in this case and more about the 732 00:33:46,160 --> 00:33:50,720 Speaker 1: diversification of your long term financial plan and retirement plan. 733 00:33:51,520 --> 00:33:53,040 Speaker 1: You know, you just want to make sure you don't 734 00:33:53,040 --> 00:33:55,960 Speaker 1: put too many eggs in one basket here, because you know, 735 00:33:56,160 --> 00:34:00,240 Speaker 1: things can happen to a small private company and you know, 736 00:34:00,440 --> 00:34:02,880 Speaker 1: just just take a look at it and make sure 737 00:34:03,000 --> 00:34:06,320 Speaker 1: you diversify. So, not a lot of information to work 738 00:34:06,400 --> 00:34:09,560 Speaker 1: with here, but those would be my two answers right 739 00:34:10,160 --> 00:34:13,200 Speaker 1: off the cuff here, all right, David and Blue ass 740 00:34:13,280 --> 00:34:15,759 Speaker 1: quickly here, Brian, He says, I'm a senior executive with 741 00:34:15,840 --> 00:34:19,960 Speaker 1: two million dollars in deferred compensation. The payout options are overwhelming. 742 00:34:20,080 --> 00:34:22,959 Speaker 1: How do I choose how to take this deferred comp 743 00:34:23,360 --> 00:34:28,120 Speaker 1: without accidentally creating a huge disaster From a tax standpoint. 744 00:34:27,800 --> 00:34:29,800 Speaker 2: Yes, I've got a thirty seconds to get you through this. 745 00:34:29,960 --> 00:34:33,320 Speaker 2: But deferred comp and what that means, deferred comp is 746 00:34:33,360 --> 00:34:35,400 Speaker 2: not forever tax free. It's a timing tool. You are 747 00:34:35,520 --> 00:34:38,120 Speaker 2: entitled to this compensation, but you've chosen to defer it. 748 00:34:38,239 --> 00:34:40,880 Speaker 2: Therefore it can continue to grow and then get taxed 749 00:34:41,160 --> 00:34:43,319 Speaker 2: down the road. So a lot of plans will let 750 00:34:43,360 --> 00:34:45,719 Speaker 2: you choose lump versus installment. A lump can mean a 751 00:34:45,920 --> 00:34:47,759 Speaker 2: huge TAXI. You're going to want to be careful with that. 752 00:34:48,000 --> 00:34:50,400 Speaker 2: Installments can smooth it out over retirement years, so make 753 00:34:50,440 --> 00:34:53,000 Speaker 2: sure you understand how that math works. Hire a fiduciary 754 00:34:53,000 --> 00:34:54,600 Speaker 2: advisor to help you do it if you don't. 755 00:34:55,719 --> 00:34:58,440 Speaker 1: Coming up next, Brian has his bottom line on how 756 00:34:58,480 --> 00:35:02,080 Speaker 1: to adjust your thinking from an investment standpoint. Now that 757 00:35:02,200 --> 00:35:06,160 Speaker 1: we appear to be moving in an interst rate declining environment, 758 00:35:06,680 --> 00:35:09,040 Speaker 1: you're listening to Simply Money presented by all Worth Financial 759 00:35:09,120 --> 00:35:16,800 Speaker 1: on fifty five KRC the talk station. You're listening to 760 00:35:16,840 --> 00:35:19,840 Speaker 1: Simply Money presented by all Worth Financial on Bob Sponseller 761 00:35:19,880 --> 00:35:23,120 Speaker 1: along with Brian James. All right, now that interest rates 762 00:35:23,160 --> 00:35:26,160 Speaker 1: have finally started to come down, Brian, I know that 763 00:35:26,520 --> 00:35:29,759 Speaker 1: high caliber brain of yours is spinning and you've got 764 00:35:29,800 --> 00:35:32,279 Speaker 1: all kinds of thoughts on how that might impact how 765 00:35:32,320 --> 00:35:34,040 Speaker 1: we invest lay it on us tonight. 766 00:35:34,480 --> 00:35:38,239 Speaker 2: Both cylinders firing at high power, Bob, all two of them. 767 00:35:39,120 --> 00:35:39,319 Speaker 3: Yeah. 768 00:35:39,440 --> 00:35:43,279 Speaker 2: So so different thinking is what we need to be 769 00:35:43,360 --> 00:35:45,600 Speaker 2: doing when we're in when we move to different environments. 770 00:35:45,640 --> 00:35:48,440 Speaker 2: And that's true today as it ever was. So what's 771 00:35:48,680 --> 00:35:51,040 Speaker 2: what we're looking at yet now is saving yields are 772 00:35:51,040 --> 00:35:53,200 Speaker 2: gonna fall when we're in a declining rate environment. You're 773 00:35:53,239 --> 00:35:55,520 Speaker 2: gonna see these wonderful high yield savings accounts that you've 774 00:35:55,560 --> 00:35:57,680 Speaker 2: been getting four four and a half percent on those 775 00:35:57,719 --> 00:35:59,920 Speaker 2: are going to drop. Don't be shocked or disappointed when 776 00:36:00,120 --> 00:36:02,719 Speaker 2: when it happens. It's just going to because those are 777 00:36:02,800 --> 00:36:04,880 Speaker 2: driven by interest rates as much as mortgage rates are. 778 00:36:05,480 --> 00:36:08,040 Speaker 2: Speaking of that, debt will also become cheaper, but timing 779 00:36:08,160 --> 00:36:10,120 Speaker 2: is going to be important. So if you have an 780 00:36:10,160 --> 00:36:13,359 Speaker 2: existing variable rate debt, that's going to adjust pretty quickly, 781 00:36:13,400 --> 00:36:15,200 Speaker 2: so like a home equity line of credit something like that, 782 00:36:15,640 --> 00:36:18,120 Speaker 2: you can be a little bit happy because those that 783 00:36:18,239 --> 00:36:19,719 Speaker 2: interest rate is going to go down. If you are 784 00:36:19,800 --> 00:36:22,879 Speaker 2: in that situation paying off a heelock home equity line 785 00:36:22,920 --> 00:36:25,799 Speaker 2: of credit, then what you might consider doing is don't 786 00:36:25,840 --> 00:36:28,959 Speaker 2: change your payment. Whatever payment you were making obviously fits 787 00:36:29,000 --> 00:36:31,160 Speaker 2: the budget because you've been making it, So keep making 788 00:36:31,239 --> 00:36:34,080 Speaker 2: that same payment and you'll pay that debt down even sooner, 789 00:36:34,880 --> 00:36:37,080 Speaker 2: and so you can also for fixed debt. Of course, 790 00:36:37,320 --> 00:36:42,000 Speaker 2: now we're back in refinancing eras where we want to 791 00:36:42,000 --> 00:36:43,480 Speaker 2: think about what are we paying now, and if I 792 00:36:43,600 --> 00:36:46,279 Speaker 2: go and refinance this mortgage, what kind of savings can 793 00:36:46,320 --> 00:36:48,760 Speaker 2: I take off of that? And you might even consider 794 00:36:49,280 --> 00:36:52,200 Speaker 2: perhaps if if rates move enough. This takes a little 795 00:36:52,200 --> 00:36:53,640 Speaker 2: bit of math, but if rates move enough, you might 796 00:36:53,840 --> 00:36:56,360 Speaker 2: drop from a thirty year to a fifteen year, and 797 00:36:56,440 --> 00:36:59,040 Speaker 2: who knows, that could actually push your payment up, which 798 00:36:59,080 --> 00:37:02,000 Speaker 2: seems counter into But maybe if you since you got 799 00:37:02,080 --> 00:37:04,320 Speaker 2: that mortgage, perhaps you've gotten some raises, maybe the mortgage 800 00:37:04,400 --> 00:37:05,759 Speaker 2: is three years old or something, and you're making a 801 00:37:05,800 --> 00:37:08,160 Speaker 2: little more money there there's more spendable cash. Well you 802 00:37:08,239 --> 00:37:10,200 Speaker 2: can you can take advantage of that with the least 803 00:37:10,239 --> 00:37:13,000 Speaker 2: lower interest rates and possibly go ahead and take advantage 804 00:37:13,040 --> 00:37:14,920 Speaker 2: of the higher income you have and pay that whole 805 00:37:14,960 --> 00:37:16,560 Speaker 2: thing off sooner by going from a thirty to a 806 00:37:16,680 --> 00:37:20,560 Speaker 2: fifteen or something like that. So so, but the thing 807 00:37:20,719 --> 00:37:22,920 Speaker 2: to do, I think really focus on is what do 808 00:37:23,040 --> 00:37:25,279 Speaker 2: you need and what what what is out there that 809 00:37:25,400 --> 00:37:27,680 Speaker 2: you can take advantage of, And don't get too worried 810 00:37:27,760 --> 00:37:30,080 Speaker 2: about the fact that interest rates are falling. You should 811 00:37:30,160 --> 00:37:33,319 Speaker 2: have investments on the other side of this where lower 812 00:37:33,760 --> 00:37:36,000 Speaker 2: lower interest rates are beneficial. So you've got a stock 813 00:37:36,040 --> 00:37:39,080 Speaker 2: portfolio of something that's intended to growth for growth that 814 00:37:39,280 --> 00:37:41,680 Speaker 2: is going to benefit from this as well, So just 815 00:37:41,760 --> 00:37:43,680 Speaker 2: make sure you rebounce that portfolio. It's going to make 816 00:37:43,760 --> 00:37:45,799 Speaker 2: changes to the bond side of your portfolio as well. 817 00:37:45,840 --> 00:37:47,320 Speaker 2: You want to own different kinds of bonds in a 818 00:37:47,400 --> 00:37:49,719 Speaker 2: declining rate environment. So it's time to take a look 819 00:37:49,760 --> 00:37:51,439 Speaker 2: at things you may not have looked at in a while. 820 00:37:51,840 --> 00:37:53,560 Speaker 2: What about you, Bob, what would you be advising your 821 00:37:53,600 --> 00:37:54,279 Speaker 2: clients at this point? 822 00:37:54,760 --> 00:37:57,000 Speaker 1: Yeah, I think the thing to look at here is 823 00:37:57,320 --> 00:37:59,919 Speaker 1: what what happens to the longer end of the curve 824 00:38:00,440 --> 00:38:02,759 Speaker 1: and when does it move And I'm talking about five year, 825 00:38:02,880 --> 00:38:06,560 Speaker 1: ten year, thirty year yields. That's what really will determine, 826 00:38:06,760 --> 00:38:11,120 Speaker 1: you know, maybe a change in strategy. One little change 827 00:38:11,160 --> 00:38:15,000 Speaker 1: in short term rates doesn't necessarily facilitate, you know, major 828 00:38:15,120 --> 00:38:17,719 Speaker 1: changes in your portfolio. You want to take a look 829 00:38:17,760 --> 00:38:20,320 Speaker 1: at the trend of rates and then you know that 830 00:38:20,440 --> 00:38:22,480 Speaker 1: allows you to make some bigger moves that might have 831 00:38:22,719 --> 00:38:26,560 Speaker 1: more impact on the things Brian talked about. But it's 832 00:38:26,640 --> 00:38:28,719 Speaker 1: time to look at these things, and it's time to 833 00:38:28,800 --> 00:38:31,799 Speaker 1: sit down with your advisor and get out in front 834 00:38:31,840 --> 00:38:33,480 Speaker 1: of what next steps might look like. 835 00:38:33,600 --> 00:38:34,400 Speaker 3: Thanks for listening. 836 00:38:34,640 --> 00:38:36,759 Speaker 1: You've been listening to Simply Money, presented by all Worth 837 00:38:36,840 --> 00:38:39,799 Speaker 1: Financial on fifty five KRC, the talk station