1 00:00:00,200 --> 00:00:02,640 Speaker 1: You got a lot today, do you I do got 2 00:00:02,680 --> 00:00:04,400 Speaker 1: to put up these Halloween decorations? 3 00:00:04,519 --> 00:00:06,680 Speaker 2: Will It's time to do it, dude? The rest I 4 00:00:06,720 --> 00:00:10,600 Speaker 2: do need to know on fifty five KRC the talk station. 5 00:00:16,680 --> 00:00:21,279 Speaker 3: Tonight, The underestimated power of an emergency fund, how to 6 00:00:21,320 --> 00:00:25,040 Speaker 3: protect your stock, games from the taxman, and more. You're 7 00:00:25,040 --> 00:00:27,400 Speaker 3: listening to Simply Money, presented my all Worth Financial on 8 00:00:27,520 --> 00:00:31,040 Speaker 3: Bob Sponseller along with Brian James. We've talked for some 9 00:00:31,320 --> 00:00:34,519 Speaker 3: time now about the fact that the labor market seems 10 00:00:34,560 --> 00:00:38,320 Speaker 3: to be softening, and it appears, Brian, that real people 11 00:00:38,400 --> 00:00:41,680 Speaker 3: are starting to worry about it. According from a recent 12 00:00:41,800 --> 00:00:45,120 Speaker 3: survey done by the New York Federal Reserve, walk us 13 00:00:45,120 --> 00:00:47,199 Speaker 3: through some of these numbers, more. 14 00:00:47,040 --> 00:00:50,120 Speaker 4: Fascinating survey numbers. We love listening to radio shows to 15 00:00:50,240 --> 00:00:54,520 Speaker 4: talk about survey numbers, don't we, Bob. They're mostly garbage, 16 00:00:54,560 --> 00:00:57,800 Speaker 4: but please continue. But there's somebody's opinions. So here's what 17 00:00:57,840 --> 00:00:59,840 Speaker 4: we're talking about today. So the New York Federal Reserve 18 00:01:00,600 --> 00:01:02,639 Speaker 4: did a survey and one of the results that came 19 00:01:02,680 --> 00:01:05,000 Speaker 4: from it was that Americans have a perceived likelihood of 20 00:01:05,040 --> 00:01:07,200 Speaker 4: losing their job in the next twelve months up to 21 00:01:07,319 --> 00:01:10,720 Speaker 4: fifteen percent. So Americans are also see greater odds about 22 00:01:10,760 --> 00:01:13,679 Speaker 4: forty percent that the US unemployment rate is going to 23 00:01:13,680 --> 00:01:15,320 Speaker 4: be higher one year from now. So, in other words, 24 00:01:15,440 --> 00:01:17,960 Speaker 4: numbers numbers numbers, but the sentiment is that jobs are 25 00:01:17,959 --> 00:01:19,640 Speaker 4: going to be a little bit more scarce than they've been. 26 00:01:20,160 --> 00:01:22,959 Speaker 4: That projection is up two percentage points since August, so 27 00:01:22,959 --> 00:01:25,720 Speaker 4: that's kind of gaining a little bit of steam. That said, 28 00:01:26,800 --> 00:01:30,320 Speaker 4: our spending habits don't quite match with this supposed perception 29 00:01:30,360 --> 00:01:32,800 Speaker 4: that we're all going to lose our jobs soon. Because 30 00:01:33,280 --> 00:01:35,360 Speaker 4: this is where we look at consumer sentiment. This is 31 00:01:35,400 --> 00:01:39,120 Speaker 4: the University of Michigan's sentiment index has yet to rebound 32 00:01:39,160 --> 00:01:42,000 Speaker 4: to the levels before the pandemic. But at the same 33 00:01:42,000 --> 00:01:45,160 Speaker 4: time spending has been up. Consumers have been relatively confident 34 00:01:45,400 --> 00:01:46,960 Speaker 4: and still living their lives the way they live, and 35 00:01:47,040 --> 00:01:50,080 Speaker 4: I can verify that dismain interactions with my clients. Everybody's 36 00:01:50,120 --> 00:01:52,680 Speaker 4: griping about the price of eggs, but nobody's eating less eggs. 37 00:01:52,760 --> 00:01:56,080 Speaker 3: And the parking lots of all our favorite restaurants every 38 00:01:56,160 --> 00:01:56,800 Speaker 3: night are filled. 39 00:01:56,800 --> 00:01:58,240 Speaker 2: The capacity still. 40 00:01:57,880 --> 00:01:59,960 Speaker 4: Bother going out on a Friday or Saturday without a reservation. 41 00:02:00,360 --> 00:02:02,640 Speaker 3: Brian, I'm going to use an analogy that may or 42 00:02:02,720 --> 00:02:05,920 Speaker 3: may may not make sense here. And this harkens back 43 00:02:05,960 --> 00:02:09,720 Speaker 3: to my high school baseball coaching days when kids used 44 00:02:09,760 --> 00:02:12,040 Speaker 3: to come to me before the season and talk about 45 00:02:12,080 --> 00:02:14,760 Speaker 3: how great their year is going to be, how much 46 00:02:14,840 --> 00:02:17,120 Speaker 3: harder they're gonna work, and they're gonna do this, and 47 00:02:17,160 --> 00:02:19,519 Speaker 3: they're going to do that. They're telling me everything that 48 00:02:20,040 --> 00:02:22,600 Speaker 3: they're going to do and how their behavior is going 49 00:02:22,639 --> 00:02:25,880 Speaker 3: to change, and then that same kid happens to be 50 00:02:25,960 --> 00:02:28,840 Speaker 3: the one that doesn't show up for team lifting at 51 00:02:28,840 --> 00:02:31,680 Speaker 3: five point thirty in the morning because he's tired. In 52 00:02:31,720 --> 00:02:36,000 Speaker 3: other words, I always pay attention to what people actually do, 53 00:02:36,639 --> 00:02:38,400 Speaker 3: not what they say they're going to do. 54 00:02:38,919 --> 00:02:41,839 Speaker 4: That's my reaction to this survey. Yeah, and I kind 55 00:02:41,840 --> 00:02:43,320 Speaker 4: of have the same So I've been in a lot 56 00:02:43,360 --> 00:02:46,440 Speaker 4: of different marketing groups and things over my thirty years 57 00:02:46,480 --> 00:02:49,160 Speaker 4: doing this, and it's interesting even the companies that do 58 00:02:49,200 --> 00:02:51,440 Speaker 4: the research and take the survey, as we'll say that, 59 00:02:51,520 --> 00:02:53,920 Speaker 4: you know, oftentimes what people do doesn't match how they 60 00:02:54,040 --> 00:02:58,239 Speaker 4: check a form on a box. So anyway, but regardless, 61 00:02:58,480 --> 00:03:00,760 Speaker 4: so a little bit of a disparity course between the 62 00:03:01,160 --> 00:03:03,360 Speaker 4: perception of the economy and our spending behavior. 63 00:03:03,440 --> 00:03:03,600 Speaker 5: You know. 64 00:03:03,639 --> 00:03:06,080 Speaker 4: The suggestion is is that while we're worried about the future, 65 00:03:06,160 --> 00:03:09,119 Speaker 4: current household, household finances are doing pretty well. And again, 66 00:03:09,160 --> 00:03:10,880 Speaker 4: Bob and I can both tell you that anyway from 67 00:03:10,880 --> 00:03:14,040 Speaker 4: our interactions we've got with our clients. Yes, individual families 68 00:03:14,080 --> 00:03:16,560 Speaker 4: have their specific situations that sometimes things are out of 69 00:03:16,600 --> 00:03:19,760 Speaker 4: their control. But as we're sitting here right now, things 70 00:03:19,880 --> 00:03:22,480 Speaker 4: look pretty positive and we don't see anything on the 71 00:03:22,520 --> 00:03:25,800 Speaker 4: horizon that should cause for any significant alarm other than 72 00:03:25,800 --> 00:03:28,600 Speaker 4: there are always storm clouds somewhere. Don't let it get 73 00:03:28,639 --> 00:03:29,639 Speaker 4: you too much of us wet. 74 00:03:30,000 --> 00:03:33,200 Speaker 3: All right, Switching gears here to the emergency fund topic, 75 00:03:33,240 --> 00:03:35,800 Speaker 3: and I do think this is an important one. I 76 00:03:36,040 --> 00:03:38,640 Speaker 3: and I do resonate with a couple of these studies 77 00:03:38,640 --> 00:03:42,640 Speaker 3: that came out. Bank Rates twenty twenty five emergency savings 78 00:03:42,680 --> 00:03:47,000 Speaker 3: report indicates that only a quarter of adults have enough 79 00:03:47,160 --> 00:03:51,240 Speaker 3: savings to cover six months worth of expenses. And let's 80 00:03:51,240 --> 00:03:55,040 Speaker 3: take this a step further. Vanguard researchers surveyed more than 81 00:03:55,160 --> 00:03:58,680 Speaker 3: twelve thousand, four hundred Vanguard investors, so this is a 82 00:03:58,680 --> 00:04:01,400 Speaker 3: pretty good survey. They did that back in July of 83 00:04:01,440 --> 00:04:06,400 Speaker 3: twenty twenty four. To understand the impact of emergency savings 84 00:04:06,440 --> 00:04:10,480 Speaker 3: on their overall financial wellbeing. I love this study. This 85 00:04:10,520 --> 00:04:14,000 Speaker 3: is actually helpful. This is things that people should be doing. 86 00:04:14,480 --> 00:04:18,520 Speaker 3: And their survey found that emergency savings are the strongest 87 00:04:18,560 --> 00:04:22,440 Speaker 3: predictor of financial wellbeing. The impact of just having at 88 00:04:22,520 --> 00:04:27,880 Speaker 3: least two thousand dollars in emergency savings is remarkable, meaning 89 00:04:27,920 --> 00:04:31,599 Speaker 3: that those that have set aside this amount report over 90 00:04:31,640 --> 00:04:36,560 Speaker 3: a twenty percent increase in overall financial wellbeing. And if 91 00:04:36,600 --> 00:04:39,640 Speaker 3: you increase that emergency fund to three to six months 92 00:04:39,680 --> 00:04:42,960 Speaker 3: of expenses, you can tackle on another thirteen percent of 93 00:04:43,040 --> 00:04:47,000 Speaker 3: well being. This is the basic blocking and tackling good 94 00:04:47,040 --> 00:04:52,080 Speaker 3: financial planning. Irrespective of somebody's net worth. That really does 95 00:04:53,040 --> 00:04:56,040 Speaker 3: show an indicator of how they're going to actually behave 96 00:04:56,200 --> 00:04:59,680 Speaker 3: and treat their investments. Not selling a down market, not 97 00:04:59,720 --> 00:05:02,040 Speaker 3: pay I make all the things we talk about all 98 00:05:02,080 --> 00:05:03,960 Speaker 3: the time that people should not do. 99 00:05:04,400 --> 00:05:06,159 Speaker 4: So it's really important. 100 00:05:06,160 --> 00:05:11,039 Speaker 3: It sounds elementary and boring, but this basic emergency fund 101 00:05:11,080 --> 00:05:13,960 Speaker 3: savings vehicle is really important to have in place. 102 00:05:14,040 --> 00:05:15,800 Speaker 4: Yeah, and I want to share a quick story here 103 00:05:16,000 --> 00:05:17,960 Speaker 4: because I was thinking about this the other day for 104 00:05:18,400 --> 00:05:21,440 Speaker 4: whatever reason, and maybe this happens to you, But my 105 00:05:21,800 --> 00:05:24,920 Speaker 4: client's adult children tend to children tend to come in waves. 106 00:05:24,920 --> 00:05:26,800 Speaker 4: We certainly help them out like we help out our clients, 107 00:05:26,839 --> 00:05:28,320 Speaker 4: but I just have a bunch of them right now. 108 00:05:28,520 --> 00:05:31,160 Speaker 4: And the younger ones always come with this notion of, hey, 109 00:05:31,160 --> 00:05:32,560 Speaker 4: I want to start throwing money in the market so 110 00:05:32,560 --> 00:05:34,760 Speaker 4: I can turn it into a big pile. And they 111 00:05:34,800 --> 00:05:36,600 Speaker 4: never come with the notion. And I was there too. 112 00:05:36,720 --> 00:05:38,039 Speaker 4: They never come with a notion of how do we 113 00:05:38,040 --> 00:05:38,719 Speaker 4: build a foundation? 114 00:05:38,800 --> 00:05:38,880 Speaker 2: Right? 115 00:05:38,880 --> 00:05:40,120 Speaker 4: If I'm going to build a house, I'm not just 116 00:05:40,160 --> 00:05:42,679 Speaker 4: throwing bricks directly on the dirt. I need a foundation 117 00:05:42,760 --> 00:05:45,600 Speaker 4: that's going to support everything. So my quick story here 118 00:05:45,640 --> 00:05:48,200 Speaker 4: is this is me. So about fifteen years ago, I 119 00:05:48,240 --> 00:05:51,080 Speaker 4: got a little bored with working directly with clients and 120 00:05:51,240 --> 00:05:52,760 Speaker 4: just wanted to make a change, and I took it too, 121 00:05:52,880 --> 00:05:56,120 Speaker 4: sort of an executive consultative role with the bank, educating 122 00:05:56,160 --> 00:05:58,040 Speaker 4: advisors how to do planning and those kinds of things. 123 00:05:58,279 --> 00:06:00,680 Speaker 4: And that lasted about that maybe three years before I 124 00:06:00,720 --> 00:06:03,000 Speaker 4: realized that my true calling was sitting down at tables, 125 00:06:03,000 --> 00:06:05,000 Speaker 4: looking people in the eye on a one on one basis, 126 00:06:05,040 --> 00:06:07,280 Speaker 4: making them feel comfortable with their finances and helping them 127 00:06:07,960 --> 00:06:10,240 Speaker 4: understand the opportunities in front of them, so I went 128 00:06:10,320 --> 00:06:13,360 Speaker 4: back to client facing role that involved a huge pay cut. 129 00:06:13,520 --> 00:06:15,960 Speaker 4: I was okay with it because I had that emergency fund. 130 00:06:16,000 --> 00:06:16,080 Speaker 3: You know. 131 00:06:16,160 --> 00:06:18,240 Speaker 4: So our producer Jason puts this show together and he 132 00:06:18,279 --> 00:06:19,960 Speaker 4: asked us to share stories. Well, here's mine. 133 00:06:19,960 --> 00:06:20,560 Speaker 2: This was all me. 134 00:06:20,960 --> 00:06:22,919 Speaker 4: We survived on that while I was building up a 135 00:06:22,960 --> 00:06:25,320 Speaker 4: practice again for the second time in my career, and 136 00:06:25,360 --> 00:06:27,839 Speaker 4: I've been there ever since. But we could not have 137 00:06:27,920 --> 00:06:29,880 Speaker 4: done that. I could not have made that career pivot 138 00:06:29,920 --> 00:06:32,919 Speaker 4: without that emergency fund to be able to bridge the 139 00:06:32,960 --> 00:06:35,520 Speaker 4: gap between what the what life was costing and what 140 00:06:35,560 --> 00:06:37,840 Speaker 4: the income was until I got that business back up 141 00:06:37,880 --> 00:06:40,520 Speaker 4: off the ground. So I can speak from the heart 142 00:06:40,600 --> 00:06:42,880 Speaker 4: to say that, yes, don't start with throwing money in 143 00:06:42,880 --> 00:06:45,680 Speaker 4: the market and creating a giant pile, start with that foundation. 144 00:06:46,279 --> 00:06:47,480 Speaker 2: Brian, that's a great story. 145 00:06:47,520 --> 00:06:50,200 Speaker 3: I can share another one from my own family involving 146 00:06:50,240 --> 00:06:52,760 Speaker 3: my oldest son and his wife. They're coming up on 147 00:06:52,880 --> 00:06:55,520 Speaker 3: being married for about three years and they you. 148 00:06:55,480 --> 00:06:57,200 Speaker 2: Know, these these are the two kids. 149 00:06:57,200 --> 00:07:00,720 Speaker 3: They're both oldest children, so they tend to be followers, 150 00:07:00,760 --> 00:07:04,520 Speaker 3: follow the rules. Their process oriented very disciplined, and they 151 00:07:04,520 --> 00:07:07,120 Speaker 3: actually came to me after they got married and said, hey, 152 00:07:07,160 --> 00:07:09,600 Speaker 3: will you help us sit down and build a financial plan. 153 00:07:10,120 --> 00:07:12,760 Speaker 3: And their first question is, you know, can we afford 154 00:07:12,800 --> 00:07:15,240 Speaker 3: to buy a house? And I told them, I said, 155 00:07:15,280 --> 00:07:18,720 Speaker 3: don't even think about looking at a house until you've 156 00:07:18,720 --> 00:07:21,880 Speaker 3: got three to six months worth of money put away 157 00:07:21,920 --> 00:07:25,720 Speaker 3: in an emergency emergency fund. And they followed the advice. 158 00:07:25,760 --> 00:07:28,160 Speaker 3: They first looked at me, like, are you nuts? And 159 00:07:28,200 --> 00:07:30,920 Speaker 3: I said no, I'm dead serious. Don't go buy a house. 160 00:07:31,040 --> 00:07:34,200 Speaker 3: Do you got this? Fast forward? They go buy a house. 161 00:07:34,680 --> 00:07:37,480 Speaker 3: My oldest son is a college baseball coach, so that 162 00:07:37,520 --> 00:07:42,440 Speaker 3: can tend to lead to some transient moves. They bought 163 00:07:42,480 --> 00:07:45,360 Speaker 3: a house in Loveland, and they got it into a 164 00:07:45,400 --> 00:07:48,720 Speaker 3: good price and lo and behold. About sixty days later, 165 00:07:49,800 --> 00:07:52,480 Speaker 3: he took a different coaching job down in Nashville, so 166 00:07:52,560 --> 00:07:55,000 Speaker 3: they needed to sell the house. They were able to 167 00:07:55,040 --> 00:07:57,160 Speaker 3: sell it in a day and make good money on it, 168 00:07:57,240 --> 00:07:59,360 Speaker 3: so you know, they were blessed in that way. But 169 00:08:00,120 --> 00:08:02,520 Speaker 3: had that not worked out, and had they had to 170 00:08:02,640 --> 00:08:04,840 Speaker 3: sit on that house for a while while it sells, 171 00:08:04,880 --> 00:08:07,400 Speaker 3: they would have had to dip into that emergency fund. 172 00:08:07,480 --> 00:08:10,200 Speaker 3: So this stuff does work when you put it in 173 00:08:10,320 --> 00:08:14,360 Speaker 3: practice and you eliminate having to make these snap moves 174 00:08:14,400 --> 00:08:18,400 Speaker 3: based on a short term financial emergency that can really 175 00:08:18,480 --> 00:08:20,680 Speaker 3: derail your long term financial emergency. 176 00:08:20,680 --> 00:08:23,120 Speaker 4: Fund is oil in the engine. Don't ignore it. It 177 00:08:23,200 --> 00:08:25,640 Speaker 4: is the most important component to your planet allows you 178 00:08:25,680 --> 00:08:27,000 Speaker 4: to do all the other bigger things. 179 00:08:27,080 --> 00:08:30,040 Speaker 3: Wonderful analogy you're listening to Simply Money, presented by all 180 00:08:30,080 --> 00:08:33,920 Speaker 3: Worth Financial on Bob Sponseller along with Brian James. All right, 181 00:08:33,960 --> 00:08:36,880 Speaker 3: let's talk about gold as an opportunity. The price of 182 00:08:36,960 --> 00:08:39,800 Speaker 3: gold just hit four thousand dollars an ounce for the 183 00:08:39,840 --> 00:08:43,840 Speaker 3: first time, and we don't want to get into market 184 00:08:43,880 --> 00:08:47,480 Speaker 3: timing buying and selling gold. But we all know gold 185 00:08:47,600 --> 00:08:51,800 Speaker 3: is known as the age old hedge against inflation. But 186 00:08:51,880 --> 00:08:54,760 Speaker 3: we also know that history shows that the stock market 187 00:08:54,840 --> 00:08:58,080 Speaker 3: is the one asset that beats inflation over a long 188 00:08:58,160 --> 00:09:01,000 Speaker 3: period of time. And if you want to have gold 189 00:09:01,040 --> 00:09:03,920 Speaker 3: as part of your portfolio, by all means, do it, 190 00:09:04,280 --> 00:09:06,600 Speaker 3: but do it responsibly and have a good, you know, 191 00:09:06,679 --> 00:09:09,800 Speaker 3: small allocation your in your portfolio. But today we want 192 00:09:09,840 --> 00:09:12,839 Speaker 3: to talk about, you know, flipping this around a little bit. 193 00:09:12,880 --> 00:09:15,600 Speaker 3: Do you have any gold laying around your house that 194 00:09:15,640 --> 00:09:18,880 Speaker 3: you never use in the form of jewelry? Now, might 195 00:09:18,960 --> 00:09:21,240 Speaker 3: be a good time to, you know, scoop some of 196 00:09:21,280 --> 00:09:24,000 Speaker 3: that stuff up and generate some cash from it. 197 00:09:24,040 --> 00:09:26,160 Speaker 4: Bran, Yeah, I'm sure I don't. Somehow, I don't see 198 00:09:26,200 --> 00:09:28,200 Speaker 4: commercials much anymore. But I remember the last time we 199 00:09:28,240 --> 00:09:30,040 Speaker 4: went through this cycle, we had all those companies saying, 200 00:09:30,040 --> 00:09:32,000 Speaker 4: stick your gold in a ziplock bag and send it 201 00:09:32,040 --> 00:09:33,240 Speaker 4: to this address and we'll tell. 202 00:09:33,160 --> 00:09:35,440 Speaker 2: You people are doing it. 203 00:09:35,520 --> 00:09:37,960 Speaker 4: So I'm sure that's out there somehow. 204 00:09:38,120 --> 00:09:40,000 Speaker 2: I think Dave Hatter would hate that advice. 205 00:09:40,200 --> 00:09:42,760 Speaker 4: Yeah, that's not the most secure, you know, an opaque 206 00:09:42,840 --> 00:09:46,120 Speaker 4: ziplock bag. Right, we don't expose our our actual assets here, 207 00:09:46,320 --> 00:09:48,640 Speaker 4: but no, this is this is a real if you've 208 00:09:48,720 --> 00:09:52,200 Speaker 4: got something you inherited and you and you don't plan 209 00:09:52,240 --> 00:09:54,520 Speaker 4: on keeping it. Right, We're not talking about centermental value here. 210 00:09:54,520 --> 00:09:56,599 Speaker 4: We're talking about something that if you've always thought, you 211 00:09:56,640 --> 00:09:58,360 Speaker 4: know what, maybe we should get rid of that we 212 00:09:58,360 --> 00:09:59,839 Speaker 4: don't really need. It doesn't have that much value to 213 00:09:59,840 --> 00:10:03,480 Speaker 4: it the time go figure it out. Find a reputable dealer. 214 00:10:03,600 --> 00:10:05,640 Speaker 4: You can find jewelers out there who can help you 215 00:10:05,720 --> 00:10:08,120 Speaker 4: value things those kinds of things. But now is the 216 00:10:08,200 --> 00:10:10,800 Speaker 4: time to take that action. And if you've been sitting 217 00:10:10,840 --> 00:10:12,600 Speaker 4: on a lot of people just own gold and don't 218 00:10:12,640 --> 00:10:15,520 Speaker 4: know why exactly. I got We've got all this gold 219 00:10:15,559 --> 00:10:17,800 Speaker 4: in the safe. Grandpa gave something to us. We are great. 220 00:10:17,840 --> 00:10:20,000 Speaker 4: What does it mean to you? Does it do you 221 00:10:20,040 --> 00:10:21,640 Speaker 4: any good in the safe? Is it helping you with 222 00:10:21,679 --> 00:10:24,480 Speaker 4: your finances? If it's sentimental, that's a whole different conversation. 223 00:10:24,640 --> 00:10:26,320 Speaker 4: But if you truly treat it as an asset, and 224 00:10:26,360 --> 00:10:27,920 Speaker 4: we have people that tell us, yes, this is part 225 00:10:27,960 --> 00:10:30,400 Speaker 4: of my networth, that's fantastic. But if you're never gonna 226 00:10:30,400 --> 00:10:32,560 Speaker 4: liquidate it, it doesn't do you a darn bit of good. 227 00:10:32,760 --> 00:10:34,120 Speaker 4: I'm not going to count it as part of your 228 00:10:34,120 --> 00:10:34,640 Speaker 4: cash flow. 229 00:10:35,080 --> 00:10:38,640 Speaker 3: I had that same conversation with my wife's uncle at 230 00:10:38,640 --> 00:10:40,800 Speaker 3: a family wedding we were at over the weekend. He 231 00:10:40,880 --> 00:10:42,960 Speaker 3: came up and asked me about gold, and that was 232 00:10:43,000 --> 00:10:48,560 Speaker 3: my first question. I'm like why, because depending on depending 233 00:10:48,559 --> 00:10:52,520 Speaker 3: on your why, you get completely different answers. And you know, 234 00:10:52,600 --> 00:10:55,080 Speaker 3: he talked about it going up in value, and I said, hey, 235 00:10:55,920 --> 00:10:59,360 Speaker 3: he talked about these armageddon scenarios if the Internet goes down, 236 00:10:59,400 --> 00:11:02,520 Speaker 3: and I'll tell you what, if all that stuff goes 237 00:11:02,640 --> 00:11:04,679 Speaker 3: you know to you know what in a handbasket and 238 00:11:04,679 --> 00:11:08,319 Speaker 3: you're sitting there with a gold bar, and we truly 239 00:11:08,400 --> 00:11:10,720 Speaker 3: are in a situation where we got to find a 240 00:11:10,840 --> 00:11:15,160 Speaker 3: means to buy milk and bread and meat. And you know, Firewood, 241 00:11:15,920 --> 00:11:17,960 Speaker 3: I got news for you. I said, somebody will just 242 00:11:18,000 --> 00:11:20,080 Speaker 3: come up and beat you over the head and take 243 00:11:20,160 --> 00:11:23,080 Speaker 3: your gold bar. You can't break it up into any 244 00:11:23,080 --> 00:11:26,600 Speaker 3: amount of denominations to barter with it. So again, your 245 00:11:26,760 --> 00:11:29,640 Speaker 3: why is really important. We're getting off the topic here, 246 00:11:29,679 --> 00:11:33,040 Speaker 3: but you think you made a good point. I my 247 00:11:33,160 --> 00:11:37,240 Speaker 3: next advice was find a good reputable dealer if you 248 00:11:37,280 --> 00:11:41,200 Speaker 3: want to talk about buying small denomination coins or what 249 00:11:41,320 --> 00:11:44,400 Speaker 3: have you. It's better than having your money in a mattress. 250 00:11:44,480 --> 00:11:47,120 Speaker 3: It's better than having your money, if it's long term money, 251 00:11:47,440 --> 00:11:49,840 Speaker 3: then having it sit in and checking account or savings 252 00:11:49,920 --> 00:11:53,360 Speaker 3: account earning nothing. But go, like to you what you said, 253 00:11:53,520 --> 00:11:56,600 Speaker 3: Go talk to your network of people, get referred to 254 00:11:56,679 --> 00:11:58,200 Speaker 3: a reputable coin dealer. 255 00:11:58,480 --> 00:12:00,239 Speaker 2: Do not walk into a pond. 256 00:12:00,120 --> 00:12:02,640 Speaker 3: Shop, you know, or the quickest web put it in 257 00:12:02,720 --> 00:12:06,160 Speaker 3: a bag, lastic bag, you know. Go go work with 258 00:12:06,280 --> 00:12:09,720 Speaker 3: somebody that that you can trust, that can actually help 259 00:12:09,760 --> 00:12:14,000 Speaker 3: you transaction gold in denominations that makes sense for your 260 00:12:14,080 --> 00:12:17,200 Speaker 3: overall plan and again to your point, know your why 261 00:12:17,679 --> 00:12:20,400 Speaker 3: in the first place. Coming up next, how to keep 262 00:12:20,520 --> 00:12:24,640 Speaker 3: taxes from gobbling up the gains from your next stock sale. 263 00:12:24,840 --> 00:12:27,400 Speaker 3: You're listening to Simply Money presented about all Worth Financial 264 00:12:27,400 --> 00:12:30,319 Speaker 3: on fifty five KRC, the talk station. 265 00:12:32,160 --> 00:12:33,079 Speaker 2: From the UCLL. 266 00:12:33,280 --> 00:12:35,520 Speaker 4: Here's what's happening at Texas National Guard troops you deployed 267 00:12:35,559 --> 00:12:36,200 Speaker 4: to the Windy City. 268 00:12:36,360 --> 00:12:37,520 Speaker 2: Listen to what I'm about to say. 269 00:12:37,640 --> 00:12:39,760 Speaker 3: James Comy has pleaded not guilty to both of his 270 00:12:39,840 --> 00:12:40,600 Speaker 3: federal charges. 271 00:12:40,840 --> 00:12:43,720 Speaker 4: Checking in each our and this shutdown Israel and them 272 00:12:43,760 --> 00:12:45,600 Speaker 4: off closer to a piece a gram. 273 00:12:45,720 --> 00:12:48,559 Speaker 2: In fifty five KRC, the talk station. 274 00:12:48,880 --> 00:12:52,720 Speaker 5: All Worth Financial a registered investment advisory firm. Any ideas 275 00:12:52,760 --> 00:12:55,800 Speaker 5: presented during this program are not intended to provide specific 276 00:12:55,840 --> 00:12:59,920 Speaker 5: financial advice. You should consult your own financial advisor, tax consultant, 277 00:13:00,120 --> 00:13:03,120 Speaker 5: or a state planning attorney to conduct your own due diligence. 278 00:13:07,320 --> 00:13:09,720 Speaker 3: You're listening to Simply Money, presented by all Worth Financial, 279 00:13:09,800 --> 00:13:13,240 Speaker 3: umbob sponsller along with Brian James. If you can't listen 280 00:13:13,240 --> 00:13:15,920 Speaker 3: to Simply Money live every night, subscribe and get our 281 00:13:16,000 --> 00:13:19,760 Speaker 3: daily podcasts. Just search Simply Money on the iHeart app 282 00:13:20,040 --> 00:13:23,040 Speaker 3: or wherever you find your podcast straight ahead of six 283 00:13:23,160 --> 00:13:25,520 Speaker 3: forty three, What to do with too much cash in 284 00:13:25,559 --> 00:13:29,920 Speaker 3: your late fifties, smart moves for a deferred comp payout, 285 00:13:30,000 --> 00:13:33,080 Speaker 3: and whether to keep or cash out of those rental 286 00:13:33,120 --> 00:13:37,679 Speaker 3: properties before retirement. All Right, the last couple of years 287 00:13:37,679 --> 00:13:40,960 Speaker 3: have been fantastic if you've had money in the stock market. 288 00:13:41,240 --> 00:13:44,000 Speaker 3: But here's the catch. When you need to or want 289 00:13:44,040 --> 00:13:47,040 Speaker 3: to go sell some of this stuff, the irs is 290 00:13:47,240 --> 00:13:50,200 Speaker 3: waiting with their hands out, waiting for their cut. And 291 00:13:50,240 --> 00:13:54,160 Speaker 3: those games aren't just free money, you owe taxes on them. 292 00:13:54,600 --> 00:13:58,040 Speaker 3: So tonight we're going to delve into a very helpful topic, 293 00:13:58,120 --> 00:14:01,920 Speaker 3: in my opinion, walk through how these stock gains are taxed, 294 00:14:02,280 --> 00:14:06,760 Speaker 3: why your cost basis matters, and some simple strategies to 295 00:14:06,920 --> 00:14:09,800 Speaker 3: manage you know, those stock sales to keep your tax 296 00:14:09,840 --> 00:14:13,800 Speaker 3: bill as low as legally possible. Brian, let's walk through it. 297 00:14:13,840 --> 00:14:16,520 Speaker 3: Some good stuff here. Yeah, so I think there's ways 298 00:14:16,559 --> 00:14:17,400 Speaker 3: to keep this simple. 299 00:14:17,480 --> 00:14:20,040 Speaker 4: So there's there's several types of tax right today, we're 300 00:14:20,080 --> 00:14:22,360 Speaker 4: going to talk about capital gains versus ordinary income, and 301 00:14:22,400 --> 00:14:25,040 Speaker 4: it's all the difference between those is really just timing. 302 00:14:25,320 --> 00:14:28,200 Speaker 4: The magic time between that is one year. So if 303 00:14:28,200 --> 00:14:30,760 Speaker 4: I buy something and I sell it with it. You know, 304 00:14:30,800 --> 00:14:32,920 Speaker 4: this could be a stock, it could be a collectible something, 305 00:14:32,960 --> 00:14:34,880 Speaker 4: it could be a lot of different things. But and 306 00:14:34,920 --> 00:14:37,400 Speaker 4: I sell it within one year of having bought it 307 00:14:37,400 --> 00:14:39,200 Speaker 4: in the first place, that gain is going to be 308 00:14:39,200 --> 00:14:41,520 Speaker 4: taxes ordinary income. Right, So you can kind of, in 309 00:14:41,560 --> 00:14:43,280 Speaker 4: a round about way, you can kind of banish from 310 00:14:43,320 --> 00:14:45,840 Speaker 4: your thought the notion of long term capital gains tax 311 00:14:45,840 --> 00:14:48,600 Speaker 4: If you're holding something under year, it's just income, and 312 00:14:48,640 --> 00:14:51,200 Speaker 4: that is taxed exactly the same as your salary, exactly 313 00:14:51,200 --> 00:14:53,000 Speaker 4: the same as interest you're getting on your CDs and 314 00:14:53,080 --> 00:14:55,040 Speaker 4: you and your checking account. If you have something like that, 315 00:14:55,200 --> 00:14:58,040 Speaker 4: it just gets lumped into your ordinary income. So anything 316 00:14:58,120 --> 00:15:01,400 Speaker 4: under a year taxes ordinary income, whatever your bracket is. Now, 317 00:15:01,440 --> 00:15:03,520 Speaker 4: when you get to a point where you've held something 318 00:15:03,640 --> 00:15:06,240 Speaker 4: longer than a year, now it's a long term gain. 319 00:15:06,280 --> 00:15:07,840 Speaker 4: That's all long term means. It means one year, you're 320 00:15:07,880 --> 00:15:09,560 Speaker 4: either three hundred and sixty four days or three hundred 321 00:15:09,560 --> 00:15:11,720 Speaker 4: and sixty five days. That's all there is to it. Now, 322 00:15:11,760 --> 00:15:14,520 Speaker 4: you get preferential capital gain rates. Typically, and I'm going 323 00:15:14,560 --> 00:15:16,400 Speaker 4: to circle back to this, sometimes you can be in 324 00:15:16,400 --> 00:15:19,240 Speaker 4: a zero percent rate or fifteen percent, which is where 325 00:15:19,240 --> 00:15:21,720 Speaker 4: where we most commonly see people land or twenty percent 326 00:15:21,760 --> 00:15:24,160 Speaker 4: for our higher income earners. Now, I know I got 327 00:15:24,160 --> 00:15:27,400 Speaker 4: somebody's attention out there with that zero percent capital gain situation. 328 00:15:27,560 --> 00:15:31,080 Speaker 4: So if here's that situation. If you are married filing jointly, 329 00:15:31,120 --> 00:15:33,680 Speaker 4: this is twenty twenty five. If you are married filing jointly, 330 00:15:33,720 --> 00:15:36,360 Speaker 4: you can have taxical income up to ninety four thousand 331 00:15:36,400 --> 00:15:39,280 Speaker 4: dollars and pay zero percent on your capital gains. Now, 332 00:15:39,320 --> 00:15:42,080 Speaker 4: remember this is where it gets confusing. That gain itself 333 00:15:42,120 --> 00:15:43,960 Speaker 4: is going to get included in your income. So you 334 00:15:44,000 --> 00:15:45,960 Speaker 4: can't take a million dollar gain and claim you only 335 00:15:45,960 --> 00:15:47,920 Speaker 4: had ninety four thousand dollars worth income. That's not going 336 00:15:48,000 --> 00:15:50,080 Speaker 4: to work. But if you truly have a situation where 337 00:15:50,080 --> 00:15:52,600 Speaker 4: you've got very little income, maybe you're spending down savings 338 00:15:53,360 --> 00:15:55,800 Speaker 4: and you just don't have any income, no so security, 339 00:15:55,840 --> 00:15:58,280 Speaker 4: no work, no nothing, then you can generate a ninety 340 00:15:58,280 --> 00:16:00,240 Speaker 4: thousand dollars capital gain believe it or not, and not 341 00:16:00,280 --> 00:16:04,720 Speaker 4: pay taxes on it. For a single that's forty seven thousand, roughly. 342 00:16:03,840 --> 00:16:06,080 Speaker 3: Half and Brian, A lot of people don't know you 343 00:16:06,080 --> 00:16:08,560 Speaker 3: can do this. I mean, I'm shocked at how many 344 00:16:08,600 --> 00:16:09,840 Speaker 3: people haven't looked at it. 345 00:16:09,840 --> 00:16:11,000 Speaker 2: It's not being talked about. 346 00:16:11,080 --> 00:16:13,440 Speaker 3: It's not being mentioned a lot of times, you know, 347 00:16:13,520 --> 00:16:17,080 Speaker 3: unless you're sitting down and doing some proactive tax planning. 348 00:16:17,560 --> 00:16:19,600 Speaker 3: So you know, when we do that with folks, we 349 00:16:19,640 --> 00:16:23,080 Speaker 3: can often find times, you know, for good reason, diversify 350 00:16:23,120 --> 00:16:26,560 Speaker 3: the portfolio, raise some needed cash, and sometimes do this 351 00:16:26,680 --> 00:16:29,800 Speaker 3: at zero percent tax rates. It's beautiful, all right, let's 352 00:16:29,800 --> 00:16:33,520 Speaker 3: shift gears into you know, it sounds, it sounds, you know, 353 00:16:33,600 --> 00:16:37,440 Speaker 3: elementary long term versus short term, but it's not that simple. 354 00:16:37,520 --> 00:16:40,880 Speaker 3: You do have to calculate and know what your cost 355 00:16:40,960 --> 00:16:45,280 Speaker 3: basis is. Most most broke all brokerage firms now are 356 00:16:45,440 --> 00:16:48,800 Speaker 3: are doing that calculation automatically every time you buy and 357 00:16:48,880 --> 00:16:52,240 Speaker 3: sell something. For folks that have owned mutual funds for 358 00:16:52,600 --> 00:16:55,680 Speaker 3: ten years, twenty years, fifty years, you know, those calculations 359 00:16:55,760 --> 00:16:59,480 Speaker 3: weren't made automatically by the mutual fund companies. So you 360 00:16:59,560 --> 00:17:01,640 Speaker 3: got to you got to have somebody come in there 361 00:17:01,640 --> 00:17:03,400 Speaker 3: and help you if you don't want to do it yourself, 362 00:17:03,400 --> 00:17:06,840 Speaker 3: to figure out what your cost basis is. And more specifically, 363 00:17:07,520 --> 00:17:10,960 Speaker 3: every time you buy anything, you create what's called a 364 00:17:11,080 --> 00:17:14,680 Speaker 3: new lot, a new tax lot. That all that word 365 00:17:14,760 --> 00:17:18,040 Speaker 3: lot means is you know, it's another batch of stock 366 00:17:18,280 --> 00:17:21,000 Speaker 3: or mutual funds that got bought, either by buying it 367 00:17:21,040 --> 00:17:25,680 Speaker 3: directly or reinvesting dividends and capital gains. And it's very 368 00:17:25,720 --> 00:17:30,480 Speaker 3: important to delineate which lot you are selling when you 369 00:17:30,520 --> 00:17:31,800 Speaker 3: go to liquidate some stocks. 370 00:17:31,800 --> 00:17:32,879 Speaker 2: I know you want to say something. 371 00:17:32,800 --> 00:17:35,080 Speaker 4: Yeah, because a lot of people get confused by this. 372 00:17:35,200 --> 00:17:37,480 Speaker 4: We talk about cost basis. Most people their brains go 373 00:17:37,560 --> 00:17:39,960 Speaker 4: to that original purchase. I wrote a check one time 374 00:17:40,000 --> 00:17:42,560 Speaker 4: you bought Apple when it was a tiny little company. Yes, 375 00:17:42,600 --> 00:17:44,639 Speaker 4: that's true, but if you reinvested the dividends and I'm 376 00:17:44,680 --> 00:17:46,760 Speaker 4: realizing Apple is not a great example because they have 377 00:17:46,760 --> 00:17:49,080 Speaker 4: a big dividends for that long but regardless, let's change 378 00:17:49,080 --> 00:17:50,600 Speaker 4: that to P and G. If you bought P and 379 00:17:50,640 --> 00:17:52,480 Speaker 4: G one time thirty years ago and you told it 380 00:17:52,520 --> 00:17:54,720 Speaker 4: to reinvest the dividends, which is what most people do, 381 00:17:55,320 --> 00:17:58,160 Speaker 4: then each and every one of those little, tiny purchases 382 00:17:58,200 --> 00:18:01,160 Speaker 4: every quarter for the last thirty years is its own lot. 383 00:18:01,240 --> 00:18:03,360 Speaker 4: As Bob just said, you have to add up all 384 00:18:03,400 --> 00:18:05,320 Speaker 4: of those to figure out your cost bases. It is 385 00:18:05,359 --> 00:18:07,960 Speaker 4: not the original purchase that you put into it. You 386 00:18:08,000 --> 00:18:10,440 Speaker 4: don't want to mess up that calculation because you're gonna 387 00:18:10,440 --> 00:18:12,199 Speaker 4: pay way too much in capital gains tax. You're not 388 00:18:12,240 --> 00:18:14,440 Speaker 4: liable for that, but that's where all that comes. 389 00:18:14,200 --> 00:18:18,200 Speaker 3: From, all right, And brokerage ferns often have a standard 390 00:18:18,240 --> 00:18:22,680 Speaker 3: default method like FIFHO, which stands for first in, first out. 391 00:18:22,840 --> 00:18:25,800 Speaker 3: If you don't direct otherwise, it's going to sell the 392 00:18:25,880 --> 00:18:29,600 Speaker 3: first shares that you bought first, and as Brian's just 393 00:18:29,640 --> 00:18:32,520 Speaker 3: pointed out, those might end up being the lowest cost 394 00:18:32,560 --> 00:18:35,400 Speaker 3: base of shares that you own, which trigger the highest 395 00:18:35,440 --> 00:18:39,520 Speaker 3: capital gains tax. You have a choice in the matter 396 00:18:39,640 --> 00:18:43,320 Speaker 3: if you can calculate and know what your tax lot, 397 00:18:43,720 --> 00:18:44,520 Speaker 3: your cost. 398 00:18:44,280 --> 00:18:46,359 Speaker 4: Basis is per tax lot. 399 00:18:46,400 --> 00:18:49,600 Speaker 3: And this is where getting some good fiduciary advice from 400 00:18:49,640 --> 00:18:52,720 Speaker 3: a good advisor CPA or a combination that two can 401 00:18:52,800 --> 00:18:55,440 Speaker 3: help you with there, because when we put the cell 402 00:18:55,640 --> 00:18:59,320 Speaker 3: order in, we can and should be very specific about 403 00:18:59,480 --> 00:19:03,080 Speaker 3: which lot we're selling, and that can make a huge 404 00:19:03,119 --> 00:19:05,560 Speaker 3: difference in the tax bill, you know, when it's all 405 00:19:05,600 --> 00:19:06,160 Speaker 3: said and done. 406 00:19:06,240 --> 00:19:08,480 Speaker 4: Yeah, and I want to kind of circle back and 407 00:19:08,520 --> 00:19:10,120 Speaker 4: connect two points that we've made here in the last 408 00:19:10,160 --> 00:19:12,240 Speaker 4: couple of minutes. You just said that that first in, 409 00:19:12,359 --> 00:19:15,359 Speaker 4: first out well will force you to use probably the 410 00:19:15,480 --> 00:19:18,400 Speaker 4: lowest cost based Steff that that's absolutely correct, of course, 411 00:19:18,400 --> 00:19:20,359 Speaker 4: but that is not necessarily a bad thing if we 412 00:19:20,440 --> 00:19:22,840 Speaker 4: combine that with the notion that, hey, sometimes I'm in 413 00:19:22,920 --> 00:19:26,200 Speaker 4: literally a zero percent practice. If you celebrate the fact 414 00:19:26,200 --> 00:19:28,320 Speaker 4: that you landed in a zero percent bracket for a 415 00:19:28,440 --> 00:19:30,920 Speaker 4: tax year, then you missed an opportunity that is the 416 00:19:31,040 --> 00:19:33,520 Speaker 4: year to sell those really low cost base to shares 417 00:19:33,720 --> 00:19:35,840 Speaker 4: and pay the lowest taxes you're ever going to pay. 418 00:19:35,920 --> 00:19:37,919 Speaker 4: So don't ever spike the football and say we're not 419 00:19:37,920 --> 00:19:39,960 Speaker 4: going to pay any taxes this year. That's not a 420 00:19:40,000 --> 00:19:42,680 Speaker 4: good idea. Take advantage of the things do roth conversion, 421 00:19:42,800 --> 00:19:45,480 Speaker 4: sell those low cost basis assets, and take advantage of 422 00:19:45,480 --> 00:19:47,480 Speaker 4: the fact that now you're not in a zero percent bracket. 423 00:19:47,520 --> 00:19:49,600 Speaker 4: You might only be in a ten percent bracket. Still 424 00:19:49,600 --> 00:19:51,520 Speaker 4: pretty awesome, and it's going to protect you from a 425 00:19:51,560 --> 00:19:54,000 Speaker 4: thirty five percent bracket later in life. 426 00:19:54,160 --> 00:19:56,960 Speaker 2: That's an excellent point, bro, Thank you, Bob. How smart? 427 00:19:57,000 --> 00:19:58,640 Speaker 2: I'm being serious. You are smart. 428 00:19:58,720 --> 00:20:01,240 Speaker 3: You know sometimes you want want to have the large 429 00:20:01,280 --> 00:20:04,600 Speaker 3: capital gain when you can have it happen in a 430 00:20:04,680 --> 00:20:07,880 Speaker 3: zero percent tax bracket. Give it to me all day long. 431 00:20:08,200 --> 00:20:10,800 Speaker 3: Excellent point. All right, here's the all worth advice. The 432 00:20:10,880 --> 00:20:13,800 Speaker 3: market may be doing the heavy lifting, but you do 433 00:20:13,960 --> 00:20:17,320 Speaker 3: the fine tuning. Pick witch shares to sell, use your 434 00:20:17,400 --> 00:20:21,480 Speaker 3: losses smartly, and don't give the irs any more money 435 00:20:21,680 --> 00:20:25,119 Speaker 3: than you legally have to. All right, scammers are getting 436 00:20:25,160 --> 00:20:28,760 Speaker 3: smarter and your money is the target. The Better Business 437 00:20:28,760 --> 00:20:32,199 Speaker 3: Bureau joins us next with the latest tricks criminals are 438 00:20:32,320 --> 00:20:35,200 Speaker 3: using and how to spot them before it's too late. 439 00:20:35,480 --> 00:20:38,000 Speaker 3: You're listening to Simply Money, presented by all Worth Financial 440 00:20:38,040 --> 00:20:40,720 Speaker 3: on fifty five KRC the Talk Station. 441 00:20:41,440 --> 00:20:45,000 Speaker 2: A series of events the most important events make four 442 00:20:45,119 --> 00:20:46,440 Speaker 2: eventful days. 443 00:20:46,160 --> 00:20:47,719 Speaker 4: Political violence in this country. 444 00:20:48,040 --> 00:20:48,880 Speaker 2: Events like this. 445 00:20:49,040 --> 00:20:52,360 Speaker 1: In any event they Trump shutdown, check in, We'll check 446 00:20:52,400 --> 00:20:52,640 Speaker 1: it out. 447 00:20:52,680 --> 00:20:57,160 Speaker 2: Following these events every day fifty five KRC the Talk Station. 448 00:20:57,640 --> 00:20:59,359 Speaker 2: More than a few of our patients have talked to 449 00:20:59,359 --> 00:21:01,040 Speaker 2: me about I heart radio station. 450 00:21:04,800 --> 00:21:06,720 Speaker 3: You're listening to Simply Money? Is that a buy all 451 00:21:06,720 --> 00:21:10,240 Speaker 3: Worth Financial? I'm Bob sponseller along with Brian James, joined 452 00:21:10,240 --> 00:21:14,000 Speaker 3: tonight by our longtime guest and we're always thrilled to 453 00:21:14,000 --> 00:21:17,239 Speaker 3: have her on the show. Joe seal Rlick, President of 454 00:21:17,280 --> 00:21:20,320 Speaker 3: our Better Business Bureau, Joe Sial, thank you for making 455 00:21:20,359 --> 00:21:24,000 Speaker 3: time for us tonight and Joe Seal. It seems like 456 00:21:24,160 --> 00:21:28,399 Speaker 3: these scammers and criminals out there are just always reinventing 457 00:21:28,960 --> 00:21:31,920 Speaker 3: new ways to try to steal our money, and you 458 00:21:32,000 --> 00:21:34,520 Speaker 3: always seem to be one step ahead of them, which 459 00:21:34,560 --> 00:21:37,760 Speaker 3: is great. Fill us in on their latest little trip 460 00:21:37,960 --> 00:21:41,520 Speaker 3: tricks and schemes and how we can avoid getting you know, 461 00:21:41,600 --> 00:21:42,479 Speaker 3: our money stolen. 462 00:21:43,720 --> 00:21:45,960 Speaker 6: Well, I've got a couple for you, and a couple 463 00:21:45,960 --> 00:21:48,200 Speaker 6: of them might be new to some of our listeners. 464 00:21:48,400 --> 00:21:51,959 Speaker 6: You know, if you have filed for a text extension 465 00:21:52,080 --> 00:21:54,800 Speaker 6: for the year, the deadline to file your return is 466 00:21:54,800 --> 00:21:57,320 Speaker 6: coming up pretty soon. It's going to be October fifteenth. 467 00:21:57,760 --> 00:22:00,919 Speaker 6: But like always, scammers are on time of the headlines, 468 00:22:00,960 --> 00:22:03,480 Speaker 6: and a lot of people who filed for an extension 469 00:22:04,119 --> 00:22:06,920 Speaker 6: then did file their taxes. Many of those guys are 470 00:22:06,960 --> 00:22:10,680 Speaker 6: still waiting for your refunds, and scammers, of course are 471 00:22:10,840 --> 00:22:13,800 Speaker 6: standing by to try and take advantage of that. Now, 472 00:22:13,840 --> 00:22:16,600 Speaker 6: while this scam is targeting the people who are waiting 473 00:22:16,640 --> 00:22:19,320 Speaker 6: for a refund, it's going out to a lot more. 474 00:22:19,400 --> 00:22:22,719 Speaker 6: You know that cast a wide net mentality. I filed 475 00:22:22,720 --> 00:22:25,560 Speaker 6: my refund by April fifth, or for my refund by 476 00:22:25,600 --> 00:22:29,359 Speaker 6: April fifteenth, but I got this scam so be on 477 00:22:29,440 --> 00:22:32,040 Speaker 6: the alert for a text that looks like it's from 478 00:22:32,080 --> 00:22:37,000 Speaker 6: your state's taxation department saying your tax refund has been approved, 479 00:22:37,080 --> 00:22:40,960 Speaker 6: but you have to quote confirm your payment info to 480 00:22:41,040 --> 00:22:43,960 Speaker 6: get your refund. Of course, there's going to be a 481 00:22:44,040 --> 00:22:46,000 Speaker 6: link that they want you to click on which takes 482 00:22:46,000 --> 00:22:49,320 Speaker 6: you to a website which looks really official, but it's 483 00:22:49,400 --> 00:22:53,880 Speaker 6: designed to steal your personal and banking information. Now, the 484 00:22:53,920 --> 00:22:57,600 Speaker 6: text you may get will even tell you to reply 485 00:22:57,920 --> 00:23:01,479 Speaker 6: why you've seen that? On texts, salt and reopen the 486 00:23:01,520 --> 00:23:05,520 Speaker 6: text to quote activate the link. There is no such 487 00:23:05,600 --> 00:23:08,160 Speaker 6: thing as activating a link. Once a link is there, 488 00:23:08,240 --> 00:23:10,920 Speaker 6: it's a link. This is just a trick to get 489 00:23:10,960 --> 00:23:15,360 Speaker 6: you to engage with the scammers. The text also might 490 00:23:15,440 --> 00:23:18,160 Speaker 6: say if you don't respond by a certain date, you're 491 00:23:18,200 --> 00:23:23,639 Speaker 6: going to forfeit your refund under your state's revised code. 492 00:23:23,680 --> 00:23:27,520 Speaker 6: These guys are counting on your confusion around tax deadlines 493 00:23:27,560 --> 00:23:32,120 Speaker 6: and especially your fear of missing out on your refund. Now, remember, 494 00:23:32,160 --> 00:23:35,240 Speaker 6: the actual department of taxation, be it the state or 495 00:23:35,320 --> 00:23:39,520 Speaker 6: the federal, will never text you asking for banking information, 496 00:23:40,400 --> 00:23:43,520 Speaker 6: and that revised code that they're referencing in the text 497 00:23:44,000 --> 00:23:47,320 Speaker 6: that's a real code, but it doesn't say anything about 498 00:23:47,400 --> 00:23:51,080 Speaker 6: forfeiting your refund. Now, if you fall fit a scam, 499 00:23:51,119 --> 00:23:53,680 Speaker 6: you could see your bank account drained, and you are 500 00:23:53,720 --> 00:23:57,800 Speaker 6: giving scammers access to all kinds of personal information that 501 00:23:57,840 --> 00:24:02,200 Speaker 6: could set you up to be targeted for few your scams. Now, 502 00:24:02,320 --> 00:24:08,520 Speaker 6: if you get any communication, text, email letter regarding taxes 503 00:24:09,720 --> 00:24:13,200 Speaker 6: and you are confused about that in Ohio, go directly 504 00:24:13,240 --> 00:24:16,560 Speaker 6: to tax dot Ohio dot gov or in the case 505 00:24:16,600 --> 00:24:19,960 Speaker 6: of the federal go to the IRS dot gov to 506 00:24:20,280 --> 00:24:22,240 Speaker 6: check the validity of the communication. 507 00:24:23,119 --> 00:24:26,159 Speaker 4: So okay, So Josie, as you as you're saying that 508 00:24:26,280 --> 00:24:29,159 Speaker 4: this is great information, what's occurring to me is I 509 00:24:29,240 --> 00:24:32,440 Speaker 4: sometimes do get texts related to this, and yes, a 510 00:24:32,480 --> 00:24:34,359 Speaker 4: lot of them are fishing. But it realized. You know, 511 00:24:34,640 --> 00:24:36,840 Speaker 4: if you use like a tool like TurboTax or some 512 00:24:36,880 --> 00:24:40,679 Speaker 4: of these online providers, those intermediaries will send you a 513 00:24:40,720 --> 00:24:43,000 Speaker 4: text update. That's something you opt in through as part 514 00:24:43,040 --> 00:24:45,280 Speaker 4: of that process. So don't get confused or alarmed. If 515 00:24:45,320 --> 00:24:47,840 Speaker 4: you use TurboTax or something similar and you opted in 516 00:24:47,880 --> 00:24:50,000 Speaker 4: for that, that service may send you a text to 517 00:24:50,000 --> 00:24:52,760 Speaker 4: say that your refund was processed or accepted or whatever. 518 00:24:53,400 --> 00:24:56,159 Speaker 4: But so that's legit. It's the ones asking you to 519 00:24:56,200 --> 00:24:59,719 Speaker 4: click and do something. All three states Ohio, Indiana, Kentucky 520 00:24:59,720 --> 00:25:01,879 Speaker 4: have read references on their websites saying that they do 521 00:25:01,960 --> 00:25:03,840 Speaker 4: not do this, but those intermediaries met. 522 00:25:04,000 --> 00:25:06,119 Speaker 3: This is all making me so glad I have a 523 00:25:06,160 --> 00:25:08,240 Speaker 3: fantastic CPA that does all this. 524 00:25:08,440 --> 00:25:11,280 Speaker 2: But go on, Josie, sorry for the interuestion. 525 00:25:11,400 --> 00:25:15,600 Speaker 6: Glad you brought up turbo tax and the like. You 526 00:25:15,680 --> 00:25:20,160 Speaker 6: are expecting that text. It is not an unexpected text, 527 00:25:20,200 --> 00:25:22,080 Speaker 6: and therein is the huge difference. 528 00:25:23,880 --> 00:25:26,480 Speaker 4: Yeah, and yes, I just wanted to make sure that that, yes, 529 00:25:26,520 --> 00:25:28,400 Speaker 4: that is an optim In fact, you will be asked 530 00:25:28,400 --> 00:25:30,679 Speaker 4: specifically to use that through that process. 531 00:25:31,720 --> 00:25:36,680 Speaker 6: Right. Another interesting one in the spirit of the season, 532 00:25:37,520 --> 00:25:41,760 Speaker 6: ghost tapping. This is cap to pay with your credit card. 533 00:25:41,840 --> 00:25:45,439 Speaker 6: You know, that's fast, it's easy, it's contactless. You just 534 00:25:45,520 --> 00:25:47,679 Speaker 6: wave your card or your phone in front of the 535 00:25:47,720 --> 00:25:51,879 Speaker 6: little machine and you're done. But there's a new scam 536 00:25:51,920 --> 00:25:55,800 Speaker 6: making the rounds, and it's called ghost tapping. Ghost tapping 537 00:25:55,840 --> 00:25:59,560 Speaker 6: is when scammers use wireless devices to secretly charge your 538 00:25:59,720 --> 00:26:04,919 Speaker 6: tap enabled card or your mobile wallet without ever touching it. 539 00:26:04,960 --> 00:26:10,160 Speaker 6: That's a huge threat and now it works through NFC technology, 540 00:26:10,200 --> 00:26:13,760 Speaker 6: which is near field communication. That's the same technology that 541 00:26:13,880 --> 00:26:18,720 Speaker 6: powers tap to pay. Normally, it only works at close range, 542 00:26:18,720 --> 00:26:21,040 Speaker 6: but that's exactly what scammers are counting on. 543 00:26:21,880 --> 00:26:22,520 Speaker 2: Think about this. 544 00:26:23,119 --> 00:26:26,280 Speaker 6: You're in a crowded place, maybe you're in Octoberfest or 545 00:26:26,320 --> 00:26:29,800 Speaker 6: in some other festival or a concert, or you go 546 00:26:29,880 --> 00:26:33,000 Speaker 6: to a market, you're even on a crowded bus, and 547 00:26:33,080 --> 00:26:36,640 Speaker 6: somebody bumps into you and suddenly your card has been charged. 548 00:26:37,640 --> 00:26:41,560 Speaker 6: Or maybe somebody's going door to door selling candy or 549 00:26:42,119 --> 00:26:46,240 Speaker 6: whatever and they insist that you pay with tap to pay, 550 00:26:47,000 --> 00:26:49,520 Speaker 6: you tap and you end up with a charge of 551 00:26:49,720 --> 00:26:53,840 Speaker 6: hundreds of dollars on your card because they never showed 552 00:26:53,880 --> 00:26:58,200 Speaker 6: you the screen before you tapped. They had already programmed 553 00:26:58,240 --> 00:27:00,840 Speaker 6: it for some other amount besides the five dollars for 554 00:27:00,920 --> 00:27:04,480 Speaker 6: the candy bar. These guys are slick, you know. They 555 00:27:04,760 --> 00:27:08,600 Speaker 6: often pretend to be vendors at events or pop upstands, 556 00:27:09,119 --> 00:27:11,919 Speaker 6: or they ask you to support some cause but charge 557 00:27:12,000 --> 00:27:15,160 Speaker 6: way more than you agreed to, or they might rush 558 00:27:15,200 --> 00:27:17,919 Speaker 6: you into tapping your card without showing you the total 559 00:27:17,920 --> 00:27:20,280 Speaker 6: amount you're going to pay or giving you a receipt. 560 00:27:21,240 --> 00:27:24,680 Speaker 6: To protect yourself from this kind of a scam. Use 561 00:27:24,760 --> 00:27:29,120 Speaker 6: the RFID blocking wallets or sleeves to shield your cards 562 00:27:29,160 --> 00:27:33,720 Speaker 6: from this wireless skimming all with check the screen before 563 00:27:33,800 --> 00:27:36,960 Speaker 6: you tap to pay, make sure that the business name 564 00:27:37,040 --> 00:27:39,720 Speaker 6: is listed there and the total amount that you are 565 00:27:39,720 --> 00:27:43,720 Speaker 6: going to pay is listed there before you tap. Don't 566 00:27:43,800 --> 00:27:48,280 Speaker 6: use tap to pay in crowded or unfamiliar places. If 567 00:27:48,320 --> 00:27:53,400 Speaker 6: you question this, always insert or swipe your card instead 568 00:27:53,440 --> 00:27:58,480 Speaker 6: of tapping. And of course a questions about statements every month. Sorry, 569 00:27:58,680 --> 00:27:59,159 Speaker 6: go ahead. 570 00:27:59,640 --> 00:28:02,000 Speaker 4: The instance is where somebody could steal this from me 571 00:28:02,040 --> 00:28:03,720 Speaker 4: while I'm you know, standing in a crowd of people 572 00:28:03,760 --> 00:28:07,040 Speaker 4: or whatever. Aren't there systems in place where where they 573 00:28:07,080 --> 00:28:10,119 Speaker 4: have to where I have to accept something or you know, 574 00:28:10,119 --> 00:28:11,639 Speaker 4: because if I'm if I'm at a regular store or 575 00:28:11,640 --> 00:28:13,240 Speaker 4: restaurant or whatever, I have to look at it and 576 00:28:13,440 --> 00:28:16,560 Speaker 4: and confirm that it's okay. Or but because I thought 577 00:28:16,600 --> 00:28:19,040 Speaker 4: the financial institutions behind all this had security in place. 578 00:28:19,040 --> 00:28:20,720 Speaker 4: But you're saying there's a way to get around that 579 00:28:21,080 --> 00:28:21,840 Speaker 4: for these cameras. 580 00:28:22,280 --> 00:28:24,240 Speaker 6: That is what that is what we have seen that 581 00:28:24,320 --> 00:28:28,080 Speaker 6: people are saying that they did not participate at all 582 00:28:28,160 --> 00:28:31,280 Speaker 6: in this particular charge. It just appeared on their statement. 583 00:28:31,960 --> 00:28:32,880 Speaker 2: Got it? Thank you? 584 00:28:33,280 --> 00:28:35,119 Speaker 3: All right, we're gonna have to leave it there for tonight. 585 00:28:35,200 --> 00:28:37,560 Speaker 3: Joe Cil, thank you so much for these helpful tips, 586 00:28:37,640 --> 00:28:39,560 Speaker 3: and we're always so appreciative of you. 587 00:28:39,640 --> 00:28:40,040 Speaker 2: Coming on. 588 00:28:40,160 --> 00:28:42,880 Speaker 3: You're listening to Simply Money, presented by all Worth Financial 589 00:28:43,000 --> 00:28:46,040 Speaker 3: on fifty five KRC, the Talk station. 590 00:28:46,760 --> 00:28:50,040 Speaker 4: This is insane and they think it's funny, you know, 591 00:28:50,120 --> 00:28:51,440 Speaker 4: the saying my head hurt. 592 00:28:51,800 --> 00:28:56,880 Speaker 3: The mind is a terrible thing to waste around here. 593 00:28:57,000 --> 00:29:03,880 Speaker 2: It's absurd. Be careful, idiot, just might lose it at 594 00:29:03,920 --> 00:29:07,480 Speaker 2: the straight jacket. I'm going crazy. Go ahead, lose your 595 00:29:07,480 --> 00:29:08,040 Speaker 2: mind today. 596 00:29:08,080 --> 00:29:09,040 Speaker 4: I'm a norm injury. 597 00:29:09,120 --> 00:29:12,880 Speaker 2: We'll give it back. You feel like a nut. This 598 00:29:12,920 --> 00:29:16,840 Speaker 2: is why I drink fifty five KRC the talk station. 599 00:29:17,520 --> 00:29:20,120 Speaker 2: Hey is Brian Thummas was a series of events. The 600 00:29:20,240 --> 00:29:23,360 Speaker 2: most important event. Make four eventful days. 601 00:29:23,120 --> 00:29:24,720 Speaker 4: Political violence in this country. 602 00:29:24,800 --> 00:29:28,320 Speaker 2: More events like this in any event a Trump shut down. 603 00:29:28,440 --> 00:29:31,360 Speaker 2: Check in. We'll check it out following these events every day. 604 00:29:31,600 --> 00:29:34,120 Speaker 2: Fifty five KRC, the talk station. 605 00:29:39,400 --> 00:29:41,960 Speaker 3: You're listening to Simply Money, presented by all Worth Financial 606 00:29:41,960 --> 00:29:44,920 Speaker 3: on Bob Sponsller along with Brian James. Do you have 607 00:29:44,960 --> 00:29:47,200 Speaker 3: a financial question you'd like for us to answer. There's 608 00:29:47,200 --> 00:29:49,440 Speaker 3: a red button you can click while you're listening to 609 00:29:49,520 --> 00:29:52,760 Speaker 3: the show right on the iHeart app. Simply record your 610 00:29:52,840 --> 00:29:56,320 Speaker 3: question and it will come straight to us. All right, Brian, 611 00:29:56,400 --> 00:29:59,320 Speaker 3: this one's for you. Bob and Elaine and Madeira say, 612 00:29:59,320 --> 00:30:02,880 Speaker 3: we're in our late fifties and still saving aggressively, but 613 00:30:02,960 --> 00:30:06,320 Speaker 3: we worry we're not investing efficiently. How do you know 614 00:30:06,360 --> 00:30:09,160 Speaker 3: if your tax drag is eating too much of your return? 615 00:30:09,200 --> 00:30:09,480 Speaker 2: Brian? 616 00:30:09,600 --> 00:30:11,160 Speaker 4: Yeah, so let's talk about tax drag. 617 00:30:11,240 --> 00:30:11,360 Speaker 3: Right. 618 00:30:11,440 --> 00:30:12,880 Speaker 4: A lot of people kind of don't don't really pay 619 00:30:12,920 --> 00:30:15,800 Speaker 4: attention to where all this stuff appears and what's happening 620 00:30:15,800 --> 00:30:17,640 Speaker 4: with their ten ninety nine's and that with it. What 621 00:30:17,720 --> 00:30:21,280 Speaker 4: is a ten ninety nine exactly? Well, every year a 622 00:30:21,280 --> 00:30:23,880 Speaker 4: lot of your investments are spitting out activity. Whether you're 623 00:30:23,920 --> 00:30:26,200 Speaker 4: doing anything or not, this is happening. So you're going 624 00:30:26,240 --> 00:30:27,920 Speaker 4: to get a ten ninety one, by the way, referring 625 00:30:27,920 --> 00:30:31,240 Speaker 4: to investments outside of iras, not four oh one k's 626 00:30:31,280 --> 00:30:32,760 Speaker 4: and what have you. If you have something in a 627 00:30:32,800 --> 00:30:35,680 Speaker 4: joint account, a trust, or an individual non retirement account, 628 00:30:35,680 --> 00:30:39,480 Speaker 4: then this is happening to you. Dividends, interest, capital gains, 629 00:30:39,520 --> 00:30:42,480 Speaker 4: all those things are happening systematically. You may be reinvesting 630 00:30:42,560 --> 00:30:45,280 Speaker 4: every one of them. But that means it's all getting 631 00:30:45,360 --> 00:30:47,240 Speaker 4: accounted for on your ten ninety nine and you get 632 00:30:47,240 --> 00:30:50,040 Speaker 4: in January. That's what's known as tax drag, meaning it's 633 00:30:50,040 --> 00:30:51,880 Speaker 4: going to spit out some activity that you got to 634 00:30:51,880 --> 00:30:54,200 Speaker 4: write a check to the irs for in April. That 635 00:30:54,200 --> 00:30:56,560 Speaker 4: can shave off one percent or more a year of 636 00:30:56,600 --> 00:30:58,640 Speaker 4: your performance, and over time that can reduce your wealth 637 00:30:58,680 --> 00:31:00,520 Speaker 4: by twenty to twenty five percent, you know, over a 638 00:31:00,560 --> 00:31:03,360 Speaker 4: lifetime of investing. So the fix for this is to 639 00:31:03,400 --> 00:31:06,600 Speaker 4: get strategic. Ask that location, what type of an account 640 00:31:06,640 --> 00:31:09,840 Speaker 4: do I own? What type of investment in? So if 641 00:31:09,880 --> 00:31:11,920 Speaker 4: it's something that generates a lot of interest, you might 642 00:31:11,920 --> 00:31:15,080 Speaker 4: want to consider using that inside of an IRA. So 643 00:31:15,120 --> 00:31:17,880 Speaker 4: this would be bond funds, real estate investment trusts, four 644 00:31:17,920 --> 00:31:20,040 Speaker 4: to one K tax sheltered things. And if it's a 645 00:31:20,080 --> 00:31:23,280 Speaker 4: more tax efficient index type fund, keep those in your 646 00:31:23,280 --> 00:31:26,480 Speaker 4: tax of taxtable accounts like a growth oriented fund that's 647 00:31:26,520 --> 00:31:28,840 Speaker 4: going to spit out a lot less activity. Take a 648 00:31:28,840 --> 00:31:32,000 Speaker 4: look at those ten ninety nine s and make sure 649 00:31:32,000 --> 00:31:34,400 Speaker 4: you understand where it's all coming from. All right, So 650 00:31:34,480 --> 00:31:37,600 Speaker 4: let's move on to Tom and Loveland. Tom's company offers 651 00:31:38,040 --> 00:31:42,080 Speaker 4: deferred deferred complan, but they're confused by the options. How 652 00:31:42,080 --> 00:31:43,720 Speaker 4: do they know if it's worth using or if it 653 00:31:43,800 --> 00:31:45,320 Speaker 4: just ties up too much money. 654 00:31:45,760 --> 00:31:48,280 Speaker 3: Well, Tom, you know, let's just define what I think 655 00:31:48,320 --> 00:31:52,000 Speaker 3: we're talking about here. Deferred compensation plans in general are 656 00:31:52,080 --> 00:31:55,880 Speaker 3: just another opportunity to put money away pre tax, on 657 00:31:56,000 --> 00:31:58,120 Speaker 3: top of what you'd normally do in your four oh 658 00:31:58,160 --> 00:32:01,360 Speaker 3: one K plan or company retirement plan. So these tend 659 00:32:01,440 --> 00:32:03,880 Speaker 3: to be a great thing for people that are high 660 00:32:03,960 --> 00:32:08,240 Speaker 3: earners now and expect their tax bracket to be lower, 661 00:32:08,320 --> 00:32:10,720 Speaker 3: you know, after they retire. So you sock some money, 662 00:32:10,800 --> 00:32:14,200 Speaker 3: additional money away pre tax, it grows tax deferred, and 663 00:32:14,240 --> 00:32:16,440 Speaker 3: then when you take the money out, you're hopefully paying 664 00:32:16,480 --> 00:32:20,400 Speaker 3: taxes on the gains and the principle at a lower 665 00:32:20,480 --> 00:32:20,960 Speaker 3: tax rate. 666 00:32:21,040 --> 00:32:22,120 Speaker 4: So that's how it works. 667 00:32:22,440 --> 00:32:24,920 Speaker 3: I realize these things can get a little bit confusing 668 00:32:25,000 --> 00:32:27,160 Speaker 3: because when at the time you you got to make 669 00:32:27,200 --> 00:32:29,560 Speaker 3: two decisions when you sign up for this thing. Number one, 670 00:32:29,640 --> 00:32:31,880 Speaker 3: how much of your pay in a percentage basis or 671 00:32:32,000 --> 00:32:35,040 Speaker 3: dollar amount do you want to defer, which means not 672 00:32:35,240 --> 00:32:38,480 Speaker 3: take in the form of a current paycheck. And then second, 673 00:32:39,040 --> 00:32:41,880 Speaker 3: usually up front, you've got to define all right, when 674 00:32:41,920 --> 00:32:44,840 Speaker 3: do I want to pay out and over what installment 675 00:32:44,960 --> 00:32:48,160 Speaker 3: period do I want it? So it's important before you 676 00:32:48,240 --> 00:32:50,680 Speaker 3: pull the trigger on these things to sit down and 677 00:32:50,880 --> 00:32:54,480 Speaker 3: scope out what the you know, the current situation and 678 00:32:54,600 --> 00:32:58,920 Speaker 3: your future income needs are before you sign up these things. 679 00:32:58,920 --> 00:33:01,480 Speaker 3: For these things, it can be a great planning tool, 680 00:33:01,960 --> 00:33:04,360 Speaker 3: but just go into it with your eyes wide open 681 00:33:04,480 --> 00:33:07,479 Speaker 3: to make sure that you get the full benefits of 682 00:33:07,520 --> 00:33:10,600 Speaker 3: the tax deferral and growth and don't put yourself in 683 00:33:10,640 --> 00:33:14,720 Speaker 3: a short term cash pinch. You know, if the payout 684 00:33:14,800 --> 00:33:17,800 Speaker 3: scheme isn't matching up with what your income needs are 685 00:33:17,840 --> 00:33:20,360 Speaker 3: actually going to be, either now or in the future. 686 00:33:20,600 --> 00:33:23,360 Speaker 3: Hope that helps, all right. Kevin and Lebanon says, We've 687 00:33:23,400 --> 00:33:27,680 Speaker 3: got several rental properties that have appreciated a lot. Would 688 00:33:27,680 --> 00:33:31,960 Speaker 3: a ten thirty one exchange help us consolidate or upgrade 689 00:33:32,320 --> 00:33:34,720 Speaker 3: without paying a fortune in taxes? 690 00:33:34,760 --> 00:33:36,880 Speaker 4: Brian, Yeah, so these are fun topics. I love being 691 00:33:36,880 --> 00:33:39,400 Speaker 4: able to do these tax planning type discussions because nowadays 692 00:33:39,440 --> 00:33:42,600 Speaker 4: that's that's kind of our job, I think, because you know, 693 00:33:42,600 --> 00:33:44,960 Speaker 4: it's just things have gotten more complicated. There are opportunities 694 00:33:45,000 --> 00:33:47,240 Speaker 4: buried in the text code if you know how it works. 695 00:33:47,560 --> 00:33:49,560 Speaker 4: So what is a ten thirty one exchange? 696 00:33:49,600 --> 00:33:49,840 Speaker 2: Bob? 697 00:33:49,880 --> 00:33:51,920 Speaker 4: Well, this is if you if you own an investment 698 00:33:51,960 --> 00:33:53,480 Speaker 4: property and you decide you want to get rid of it, 699 00:33:53,480 --> 00:33:57,080 Speaker 4: and you want to take the proceeds and reinvest them in, 700 00:33:57,560 --> 00:33:59,440 Speaker 4: you know, another piece of property. You can do this 701 00:33:59,480 --> 00:34:02,160 Speaker 4: without paying capital gains. You can basically roll the gains 702 00:34:02,240 --> 00:34:05,720 Speaker 4: forward into another like kind property. Now there are rules here, 703 00:34:05,760 --> 00:34:08,359 Speaker 4: of course, Bob. It seems like we've talked frequently about 704 00:34:08,360 --> 00:34:10,279 Speaker 4: that this question comes up, and it always comes with 705 00:34:10,320 --> 00:34:12,600 Speaker 4: the question of, well, we sold a property a couple 706 00:34:12,680 --> 00:34:14,160 Speaker 4: months ago, now we want to do a ten thirty 707 00:34:14,160 --> 00:34:16,200 Speaker 4: one exchange. Well, I can't do that. You do have 708 00:34:16,280 --> 00:34:19,480 Speaker 4: some time, though, you do have forty five days after 709 00:34:19,640 --> 00:34:23,719 Speaker 4: selling your original property. You've got forty five days to identify, 710 00:34:23,880 --> 00:34:27,719 Speaker 4: not close, identify a replacement property. Then once you've identified it, 711 00:34:27,840 --> 00:34:29,400 Speaker 4: you have to close on it with one hundred and 712 00:34:29,400 --> 00:34:31,080 Speaker 4: eighty days. So there is a little bit of timing 713 00:34:31,360 --> 00:34:34,800 Speaker 4: of flexibility there. Because real estate transactions don't happen quickly. 714 00:34:35,239 --> 00:34:38,120 Speaker 4: You do have to have a qualified intermediary. This isn't 715 00:34:38,120 --> 00:34:39,960 Speaker 4: something that you just go do and tell the irs 716 00:34:40,040 --> 00:34:42,520 Speaker 4: you did it and trust that they're gonna help you 717 00:34:42,560 --> 00:34:44,719 Speaker 4: do it. You've got to find an organization that will 718 00:34:44,760 --> 00:34:47,160 Speaker 4: help you keep the records. But that is a way 719 00:34:47,239 --> 00:34:49,920 Speaker 4: to use that ten thirty one exchange. Lots of moving 720 00:34:49,920 --> 00:34:52,719 Speaker 4: parts to that, Kevin, But I'm glad you're asking the 721 00:34:52,800 --> 00:34:54,959 Speaker 4: question at the right time, which is before you sell. 722 00:34:55,200 --> 00:34:57,440 Speaker 4: The answer to your question is yes, a ten thirty 723 00:34:57,440 --> 00:35:01,080 Speaker 4: one exchange can help you consolidate upgrade without paying not 724 00:35:01,120 --> 00:35:03,320 Speaker 4: only a fortune to use your question, but no taxes 725 00:35:03,360 --> 00:35:05,400 Speaker 4: at all. If it's the right situation, just get that 726 00:35:05,480 --> 00:35:08,279 Speaker 4: timing right, find it within forty five days, close on 727 00:35:08,320 --> 00:35:10,040 Speaker 4: it within one hundred and eighty days, and best of 728 00:35:10,080 --> 00:35:11,520 Speaker 4: luck with that. Hey calls back and tell us how 729 00:35:11,520 --> 00:35:15,280 Speaker 4: that went. Dan in Westchester says they're looking to retire early, 730 00:35:15,400 --> 00:35:17,839 Speaker 4: but most of their stuff is in retirement accounts, So, Bob, 731 00:35:17,840 --> 00:35:19,600 Speaker 4: they want to know how to create an income stream 732 00:35:19,600 --> 00:35:21,640 Speaker 4: before fifty nine and a half. With that, don't they 733 00:35:21,640 --> 00:35:22,600 Speaker 4: have to pay penalties or. 734 00:35:22,600 --> 00:35:27,120 Speaker 3: Something generally, Yes, here's a couple of opportunities here, Dan. 735 00:35:27,239 --> 00:35:29,880 Speaker 3: One is called the rule of fifty five, and this 736 00:35:29,960 --> 00:35:33,240 Speaker 3: applies to folks that leave their job. If you retire 737 00:35:33,440 --> 00:35:36,680 Speaker 3: in the calendar year in which you turn fifty five 738 00:35:36,760 --> 00:35:39,919 Speaker 3: or later. Yeah, and this is again taking money from 739 00:35:39,960 --> 00:35:43,680 Speaker 3: your employer sponsored plan, the employer you are currently with. 740 00:35:44,080 --> 00:35:45,840 Speaker 3: So we're talking about your four to one K or 741 00:35:45,840 --> 00:35:47,960 Speaker 3: four or three B. You can pull money out of 742 00:35:47,960 --> 00:35:52,040 Speaker 3: there without paying the ten percent penalty tax early. You know, 743 00:35:52,400 --> 00:35:54,200 Speaker 3: you could take it out before fifty nine and a 744 00:35:54,239 --> 00:35:57,120 Speaker 3: half without penalty, but it's got to be in the 745 00:35:57,200 --> 00:36:01,080 Speaker 3: year you turn fifty five or later. Again, this only 746 00:36:01,200 --> 00:36:05,200 Speaker 3: applies to the employer that you're about to leave. 747 00:36:05,280 --> 00:36:07,760 Speaker 2: This does not apply to old four one. 748 00:36:07,680 --> 00:36:11,080 Speaker 3: Ks or iras, all right, So that's one option to 749 00:36:11,120 --> 00:36:14,520 Speaker 3: keep in mind. Now there is an exception for iras. 750 00:36:14,600 --> 00:36:19,000 Speaker 3: And now we're getting into something called substantially equal payments 751 00:36:19,160 --> 00:36:21,600 Speaker 3: and you can sign up and it's based on a 752 00:36:21,640 --> 00:36:24,520 Speaker 3: government formula think. 753 00:36:24,360 --> 00:36:26,040 Speaker 2: About r MD payout payment. 754 00:36:26,280 --> 00:36:29,359 Speaker 3: The key is once you start these payments, you have 755 00:36:29,440 --> 00:36:32,080 Speaker 3: to continue them and they have to stay the same 756 00:36:32,280 --> 00:36:36,000 Speaker 3: for the later of five years or until you turn 757 00:36:36,080 --> 00:36:40,080 Speaker 3: age fifty nine and a half. So there's two opportunities 758 00:36:40,440 --> 00:36:43,240 Speaker 3: to work with there. I think it's important to sit down, 759 00:36:43,440 --> 00:36:47,120 Speaker 3: you know, with an advisor and a CPA or both 760 00:36:47,160 --> 00:36:49,840 Speaker 3: and just sketch this out to make sure that you 761 00:36:49,880 --> 00:36:51,600 Speaker 3: have a good financial plan in place. 762 00:36:52,520 --> 00:36:54,799 Speaker 2: But these are two good, you know. 763 00:36:54,800 --> 00:36:59,320 Speaker 3: Exceptions to that penalty tax rule that we find often 764 00:36:59,719 --> 00:37:03,080 Speaker 3: work for people. Now here's one caveat here's one danger 765 00:37:03,160 --> 00:37:07,040 Speaker 3: thing not to do. What you can't do is you 766 00:37:07,120 --> 00:37:09,839 Speaker 3: can't roll your current four oh one k into an 767 00:37:09,840 --> 00:37:12,799 Speaker 3: IRA and then think you're going to take a big 768 00:37:12,880 --> 00:37:15,680 Speaker 3: lump sum out and not pay a penalty tax. So 769 00:37:15,920 --> 00:37:18,040 Speaker 3: you got to figure out what you need to take 770 00:37:18,080 --> 00:37:21,359 Speaker 3: out of that four oh one K plan. First, take 771 00:37:21,400 --> 00:37:24,880 Speaker 3: the withdrawal, pay the income taxes and not the penalty tax. 772 00:37:24,960 --> 00:37:27,480 Speaker 3: And then if you decide to do a rollover later, 773 00:37:28,040 --> 00:37:30,279 Speaker 3: that's when you want to pull the trigger. All right, 774 00:37:30,640 --> 00:37:35,200 Speaker 3: hope this helps. Coming up next, Brian has his bottom line. 775 00:37:35,719 --> 00:37:37,600 Speaker 3: H Brian, what are you talking about Tonight? 776 00:37:37,800 --> 00:37:40,160 Speaker 4: We're gonna talk a little bit about tax planning opportunities 777 00:37:40,160 --> 00:37:42,480 Speaker 4: here in twenty twenty five tis the season, Bob. It's 778 00:37:42,560 --> 00:37:44,960 Speaker 4: Q four they tax planning can't wait. 779 00:37:45,000 --> 00:37:47,520 Speaker 3: You're listening to Simply Money, presented by all Worth Financial 780 00:37:47,600 --> 00:37:50,200 Speaker 3: on fifty five KRC, the talk station. 781 00:37:50,800 --> 00:37:53,239 Speaker 2: It's all in the everywhere. 782 00:37:53,800 --> 00:37:54,800 Speaker 6: I want to thank you guys. 783 00:37:54,840 --> 00:37:56,080 Speaker 2: You're like my radio neighbors. 784 00:37:56,160 --> 00:37:58,600 Speaker 6: You guys are making me think twice about saying like. 785 00:37:58,680 --> 00:38:03,000 Speaker 2: A sound then, and I love it. Thanks for giving 786 00:38:03,040 --> 00:38:04,360 Speaker 2: us Democrats this it. 787 00:38:04,760 --> 00:38:07,960 Speaker 1: Boys listening to the station, I feel like I matter here. 788 00:38:08,160 --> 00:38:11,440 Speaker 2: We all matter this it. I've been tuning in since 789 00:38:11,480 --> 00:38:17,640 Speaker 2: the election. It's gonna talk about it here, I get heard. 790 00:38:17,840 --> 00:38:20,360 Speaker 2: I'm fifty five KRC the talk station. 791 00:38:20,480 --> 00:38:20,640 Speaker 6: Here. 792 00:38:21,040 --> 00:38:22,879 Speaker 2: If you're looking for a financial partner. 793 00:38:22,600 --> 00:38:24,440 Speaker 4: I am so worried that next month I have to 794 00:38:24,520 --> 00:38:27,359 Speaker 4: choose between groceries for my kids or gas for my car. 795 00:38:27,600 --> 00:38:31,080 Speaker 2: Talk about it here, fifty five KRC the talk station. 796 00:38:34,760 --> 00:38:37,320 Speaker 3: You're listening to Simply Money, presented by all Worth Financial 797 00:38:37,480 --> 00:38:40,879 Speaker 3: Move spont Seller along with Brian James. And it's time 798 00:38:40,920 --> 00:38:44,280 Speaker 3: for Brian's bottom line and Brian is going to share 799 00:38:44,320 --> 00:38:48,360 Speaker 3: some always helpful year end tax planning tips as we 800 00:38:48,400 --> 00:38:50,880 Speaker 3: are well into the fourth quarter. Lay it honest, Brian, 801 00:38:51,080 --> 00:38:53,720 Speaker 3: tis the season to be jolly and do some tax planning. 802 00:38:53,760 --> 00:38:56,040 Speaker 3: It's kind of the last round up here in Q four. 803 00:38:56,160 --> 00:38:58,960 Speaker 3: So one of the big changes, of course that came 804 00:38:59,000 --> 00:39:03,520 Speaker 3: to be was the obed BBBBBB Act that solidified a 805 00:39:03,560 --> 00:39:07,880 Speaker 3: lot of the twenty seventeen tax cuts, but some of 806 00:39:07,880 --> 00:39:09,960 Speaker 3: them are still going away. So let's talk about those 807 00:39:10,000 --> 00:39:12,520 Speaker 3: items that they're still going to expire in twenty twenty six, 808 00:39:12,520 --> 00:39:15,080 Speaker 3: because twenty twenty five, this year could be your last chance. 809 00:39:15,360 --> 00:39:17,239 Speaker 4: So here's the things you should be thinking about. Think 810 00:39:17,239 --> 00:39:20,680 Speaker 4: about roth conversions. If you're retired, semi retired, or you're 811 00:39:20,719 --> 00:39:22,600 Speaker 4: sitting in a lower bracket than you're gonna have later, 812 00:39:22,680 --> 00:39:25,279 Speaker 4: then taking advantage of those lower brackets, like we were 813 00:39:25,280 --> 00:39:27,239 Speaker 4: talking about earlier. Don't spike the football on a zero 814 00:39:27,239 --> 00:39:30,040 Speaker 4: percent tax here, you're missing opportunities. Use those to convert 815 00:39:30,080 --> 00:39:33,480 Speaker 4: traditional IRA dollars. Also, look at long term capital gains. 816 00:39:33,480 --> 00:39:35,719 Speaker 4: If you've got something that's sitting at a really high gain, 817 00:39:35,760 --> 00:39:38,520 Speaker 4: you got low cost basis, that low, low tax year 818 00:39:38,560 --> 00:39:40,480 Speaker 4: is the time to liquidate some of that. You might 819 00:39:40,520 --> 00:39:42,320 Speaker 4: even get away with a zero percent tax rate, or 820 00:39:42,360 --> 00:39:44,839 Speaker 4: maybe only a fifteen percent tax rate. Married couples under 821 00:39:44,920 --> 00:39:47,240 Speaker 4: ninety four thousand dollars can pay a bunch of nothing. 822 00:39:48,080 --> 00:39:49,920 Speaker 4: So if you're charitably inclined, this is a great year 823 00:39:49,920 --> 00:39:52,080 Speaker 4: to bunch your donations. If you know you're going to 824 00:39:52,120 --> 00:39:55,200 Speaker 4: give a certain amount of money to charities over the 825 00:39:55,280 --> 00:39:56,719 Speaker 4: you know every year for the next five years will 826 00:39:56,760 --> 00:39:59,719 Speaker 4: lump all those together, and this can help you in 827 00:39:59,719 --> 00:40:02,000 Speaker 4: the op posite situation. If you've got a high tax here, 828 00:40:02,080 --> 00:40:04,960 Speaker 4: use a donor advised fund to front load those donations 829 00:40:04,960 --> 00:40:09,360 Speaker 4: while giving away to those those charities that you're supporting. Anyway, 830 00:40:09,600 --> 00:40:11,960 Speaker 4: new rinkle here. The twenty twenty five law added a 831 00:40:12,000 --> 00:40:14,840 Speaker 4: small senior bonus deduction for those sixty five and older. 832 00:40:14,880 --> 00:40:17,160 Speaker 4: Not huge, but every dollar counts while you're trying to 833 00:40:17,160 --> 00:40:19,920 Speaker 4: stay in a lower bracket or avoid Medicare ERMA charges. 834 00:40:20,080 --> 00:40:22,760 Speaker 4: And of course, don't let the tax whale tail wag 835 00:40:22,840 --> 00:40:25,719 Speaker 4: the dog. If you're realizing gains or converting too much, 836 00:40:25,760 --> 00:40:28,000 Speaker 4: that can push you into higher brackets and cost you 837 00:40:28,600 --> 00:40:30,919 Speaker 4: these IRMA premiums too. That's why it's kind of smart 838 00:40:30,920 --> 00:40:32,719 Speaker 4: to make sure you're talking to your CPA as well 839 00:40:32,760 --> 00:40:35,160 Speaker 4: as your financial planner, make sure the income, taxes and 840 00:40:35,160 --> 00:40:37,480 Speaker 4: the investments are all pulling in the same direction. 841 00:40:38,000 --> 00:40:41,040 Speaker 3: Brian, you mentioned spiking the football, so I have to ask, 842 00:40:41,160 --> 00:40:44,160 Speaker 3: will Joe Flacco be able to come in here and 843 00:40:44,280 --> 00:40:48,160 Speaker 3: lead the Cincinnati Bengals to their first ever Super Bowl title? 844 00:40:48,640 --> 00:40:51,000 Speaker 3: Will that happen in twenty twenty five? This was such 845 00:40:51,040 --> 00:40:53,160 Speaker 3: a good show until you sucked us right into that. 846 00:40:53,200 --> 00:40:55,759 Speaker 4: We're going to end with that now, yet let's let's yes, 847 00:40:55,880 --> 00:40:58,640 Speaker 4: Let's let's say that that Joe Flacco can support this 848 00:40:58,719 --> 00:41:01,279 Speaker 4: team and get us maybe to five time for Joe 849 00:41:01,280 --> 00:41:03,640 Speaker 4: Burrow to come back right before Christmas, and we'll have 850 00:41:03,680 --> 00:41:04,440 Speaker 4: a Christmas miracle. 851 00:41:04,520 --> 00:41:06,839 Speaker 3: Let's go with that book it. I love it all right, 852 00:41:06,880 --> 00:41:09,440 Speaker 3: thanks for listening. You've been listening to Simply Money, presented 853 00:41:09,440 --> 00:41:13,080 Speaker 3: by All Word Financial on fifty five KRC, the Talk station. 854 00:41:14,680 --> 00:41:17,919 Speaker 1: Mark Levin, you know, America, we spend an awful lot 855 00:41:17,920 --> 00:41:22,360 Speaker 1: of time in this country responding to an unreality created 856 00:41:22,360 --> 00:41:25,200 Speaker 1: by the people who hate America, created by people who 857 00:41:25,239 --> 00:41:27,879 Speaker 1: get sucked into the narratives that are pushed out there 858 00:41:27,920 --> 00:41:30,600 Speaker 1: each and every day. And they're posting, and they're posting, 859 00:41:30,600 --> 00:41:32,880 Speaker 1: and they're posting, and they'll move on to the next thing, 860 00:41:32,960 --> 00:41:34,200 Speaker 1: and the next thing and the next thing. 861 00:41:34,239 --> 00:41:37,399 Speaker 2: That's what the media enemy do. Mark Levin tonight at 862 00:41:37,400 --> 00:41:40,920 Speaker 2: ten oh six on fifty five KRC, the talk station. 863 00:41:41,600 --> 00:41:42,360 Speaker 2: This is a bloomber