Generational Family Planning

Episode Transcript

Speaker 1 (00:00):
Hello, everybody, Welcome to the Greg Hicks Show.

Speaker 2 (00:01):
We're so glad you tuned in. Whether it's on the
weekend through the radio stations or podcasting or whatever, we
are so glad you're here. I'm Greg Hicks, certified Financial Planner,
along with one To Cooper Financial Advisor and Bo Nicholson's
Certified Financial Planner. We all work for a financial planning
firm headquartered in Raleigh, North Carolina. It's called Financial Resource Management.

(00:25):
We also have an office at the Atlantic Beach Area,
which we dearly love to meet people at and we
thank you for listening. It's always a pleasure. We counted
a privilege to be on the radio. We've been doing
it for years and years and just a disseminating information
that's super helpful to people in many multiple areas of

(00:45):
financial planning. And today we have a really cool We've
been on a theme of families and inheritances and all
kinds of things like that, and today we have a
super show called Generational Financial Planning and it affects every
age adult, any been grandkids that are underage, under adult age.
So this is going to be a really neat show.

(01:06):
It's going to cover a whole lot of details. So
if you're a note taker, I remember one time a
radio caller called a few years ago and he said,
he said, Greg, I have a spiral notebook from all
the shows I've listened to you guys, and I'm like, wow,
that's impressive. And I said, why don't you come and
meet with us, And he said, I might do that
one day, but at least one day.

Speaker 1 (01:25):
He's learning.

Speaker 2 (01:26):
He's learning as he goes, so, which is really cool. So,
as usual, if you've never listened to our show, we
usually start our first segment on things that are going
on in the world of finance or politics, tax law,
whatever that affects your life and decision making processes before
we get into our topic of the day.

Speaker 1 (01:46):
So I'll start off.

Speaker 2 (01:48):
With one really cool thing that happened last Saturday. I'm
sitting in my living room and I thought, I'm going
to try to find a financial show, and I pulled
up Warren Buffett Live and I watched him for two hours.
And Warren Buffett is probably the most famous and successful
investor ever. And he resigned officially from Berkshire Hathaway. So

(02:11):
at the end of this year, his assistant Greg his
name is going to take over, and of course immediately
Berkshire Hathaway stock fell.

Speaker 1 (02:21):
On Monday morning.

Speaker 2 (02:22):
But anyway, the guy is a legend, and I'll let
you guys respond to that.

Speaker 1 (02:28):
But one of the.

Speaker 2 (02:29):
Big takeaways he said during the question answer period was
that he said Wall Street is kind of obsessed with
earnings and growth, and they are right, but he says,
the thing I look at the most when I evaluate
a business, whether it's a private business or a traded
stock business, is the balance sheet. I want to know

(02:50):
the cash, the assets versus the debt. And I went,
you know, that's old school value investing. It's called the value.
You buy stocks that are out of favor, and you
buy good companies, and overtime they grow and reward you.

Speaker 1 (03:05):
And I thought, you know.

Speaker 2 (03:07):
How refreshing to hear the guru of all investments say that,
which is contrary to what Wall Street talking.

Speaker 3 (03:14):
Going to be interesting to see how the new guy
takes the reins. But I was reading Barons recently and
it said the article said where did the bulls go?
You know, because we've had such a bull market in
the past, but the percentage of bears in our latest
Big Money poll they said is the largest and almost
thirty years.

Speaker 1 (03:31):
Wow.

Speaker 3 (03:31):
So Warren Buffett retired just in time. Yes, maybe the
new guy can go through in pools.

Speaker 1 (03:37):
To avoid the bad time.

Speaker 4 (03:39):
Well, I just think Warren Buffett is a specimen because
he drinks like six cherry cokes a day that he admitted.

Speaker 1 (03:46):
He had two of them at his show.

Speaker 5 (03:48):
He loves the cherry coke.

Speaker 2 (03:49):
He had two cherry cokes in front of him during
the whole two or three hour deal and he would drink.

Speaker 4 (03:57):
And he starts he starts every day with an egg McMuffin.
It's incredible how sharp he is because I watched some
of the highlights Greg and it only took live questions.
The guy's ninety five years old, as sharp as attack.
And back to the earnings report thing. He called out
Tim Cook, who's the CEO of Apple, and he said, Tim,
you're the only earnings call that I listened to because
I don't care how the CEO is typically like to

(04:19):
spend the numbers. What I care about is the numbers
and show me those and I'll tell you whether or
not I want to invest in your company.

Speaker 5 (04:25):
And he knows, you know, he has spent his time as.

Speaker 4 (04:29):
An investor in the past, however, long seventy five years
literally reading earnings reports and doing that and that's all.

Speaker 5 (04:37):
That's all he really did.

Speaker 4 (04:38):
But he did it at the expense of a lot
of his relationships, and apparently his home life was was
tough and kind of took a toll.

Speaker 5 (04:45):
But he's an incredible investor.

Speaker 4 (04:47):
He was put on this earth to be an investor
and he did a great job at I like one.

Speaker 5 (04:50):
Of the questions Bobby Bobby, I was about to say,
he reminds me very much of Bobby.

Speaker 3 (04:56):
All this earnings reports and things like that. And you
want somebody like that.

Speaker 4 (05:00):
You can have a friend who's got a party trick
and you name a movie and he'll tell you like
three actors that are in it and what year came out,
And it works with any movie. And Bobby is that
way with any stock. I can name the stock, I'll
tell you who the CEO is, what their numbers are. Well,
one of the quotes I liked from Buffett is nobody
knows what the market's gonna do next week, next month,
next year, but everybody loves to talk about it, and

(05:20):
it just has no value. And I don't know if
You cited me and Greg and Wanda for that, But
how many times on this show have we told you
be careful of the people that are out there masquerading
as profits and saying the S and P's gonna fall,
or this guy that called the two thousand and eight
crash is calling one that's gonna be even worse. They've
been running those ads for fifteen years and if you

(05:41):
would have listened to him fifteen years ago, you would
have missed out on an opportunity to double your money.
Here is an interesting stat this is gonna blow y'all's
minds about Berkshire Hathway. If Berkshire fell ninety nine percent today,
it would still be out performing the S and P
five hundred since inception.

Speaker 1 (05:57):
Wow.

Speaker 3 (05:58):
Yeah, that is a is amazing, that's the whole thing.

Speaker 5 (06:03):
Oh yeah, what is it? A share is like eight
hundred thousand.

Speaker 1 (06:06):
Yeah. Well.

Speaker 2 (06:08):
The other kind of encouraging thing to me was in
Barons this week they talked about Warren. I think he's
invested something like sixty six years in the market, but
eleven of those years were down.

Speaker 1 (06:22):
But the Berkshire.

Speaker 2 (06:24):
Stock, meaning one out of six years for the most
brilliant investor in history, he was out of favor, and
a number of times he underperformed the S and P
five hundred, including a little bit recently. So even the
best of the best, it's an up and down journey.

Speaker 4 (06:40):
But talking about value, and that's what he is. You know,
he likes to look at the numbers and buy companies
based on their value and between value and growth, which
are kind of the two mindsets of investing. Value has
been dead for the past ten years. If you invested
in value companies, you did not do well unless you're
Warren Buffett. Over the past ten years, he has beat
the S and P five hundred, And he's a value guy.

(07:03):
And in a market that's been led by the in
videos and the Googles and the facebooks, he has just
picked the other winners that are out there.

Speaker 5 (07:12):
And it's astounding to see.

Speaker 4 (07:13):
The last thing I'll say about him, I was also
reading that he's got several investments Geico and Coca Cola
and others that their cash flow now on an annual basis,
is more than the investment that he initially made.

Speaker 5 (07:26):
Yeah, imagine that.

Speaker 4 (07:27):
Imagine putting one hundred dollars into something and then a
few years later having it pay you one hundred and
fifty dollars every single year.

Speaker 3 (07:33):
I think that the trouble with the normal public out
there listening is they believe everything the media says. And
I don't know why that is the media themselves. If
you pull them, they probably don't invest, so but you know,
it's just that they listen. And in fact, I had
a client reach out that said, the media says the

(07:54):
market has recovered and is up, you know, so so much.
I can't remember what the email said, but he said,
I don't feel like that's happening in my portfolio. And
I said, well, if do you believe the media, do
you believe me, you know, because you have some things
that are I bought dollar General for him and it
was up twenty percent yeah a month, so you know,
so the media spends things to keep you know, think

(08:18):
pople anxious. You know, so who you're going to believe?
And that's what I'd like to say to people. Don't
believe the media, Call your advisor, have a meeting, see
exactly what you're doing. That's what we show our clients.
You performance, don't lie. So if you look at the
numbers and look at what the reports that's not going
to lie. If you don't have an advisor that's doing

(08:38):
that for you, then give us a call. Nine one
nine a five six nineteen sixty eight. You do get
a complimentary meeting, why not take advantage of that. It's
called a second opinion, just like you do with doctor purs.

Speaker 4 (08:51):
I also remind all my clients that you're not a trader.
You're a long term investor, and so don't get caught
up in the day to day noise. The market spin
a dang whipsaw over the past two you know, the
S and P five hundred and fell nineteen percent and
it's bounced back about fifteen percent since then. And this
is the last thing I'll say before our break. Recently,
we had nine trading days in a row that ended

(09:11):
last Monday where the market was positive. That's the first
time that's happened in over twenty years. So yeah, just
hang on, buckle your seat belt and call an advisor
you can trust. Nine one nine eighty five six one
nine six eight. Y'all, we got a very fun show today.

Speaker 5 (09:24):
Stick with us. We'll be right back.

Speaker 1 (09:25):
Welcome back to the second segment of the Great Ink Show. Today.

Speaker 2 (09:28):
We're talking about generational financial planning, and that includes older
seniors as well as young adults and even grandkids that
are trying to get into college or develop their own
style of investing over their lifetime. So this show is
a tremendous show. We'll talk about things that matter to you.
And by the way, a lot of our listeners tell

(09:48):
us this, but our shows are very practical and a
lot of There's two things that I hear about, like
I learned a lot in your show, and the reason
you do is we cover subjects broadly and in detail.
The other thing is we change subjects every single week,
so we don't just beat some subject to death over
and over and over, no offense, but some radio shows

(10:09):
do that. But anyway, today we're talking about generational financial planning.
And while I'm saying that, let me just give you
a heads up. We've been in the last three or
four weeks talking mostly about family issues, inheritance of security, retirement,
those kind of things.

Speaker 1 (10:26):
Starting next week.

Speaker 2 (10:28):
We have three straight shows talking specific specifically about investments themselves.
Like next week we're going to talk about stocks. The
following week, ETF and mutual funds, which cover many of
you in your four win k World, and then the
third week real estate. So if you're an investor and

(10:48):
it is fun to talk about investments because it's it's
a little bit of gambling, but smart gambling and making
money and all those kind of fun things. Sometimes losing
money too, right, So we'll talk about the next three weeks.
If you're an investor and you love this stuff, be
sure to tune into our show. So today we're talking
about generational financial planning, and kind of the first bullet point,

(11:11):
which is very important to hear up front, is be
careful of what you think is gonna happen. We talked
about it in the first segment. We don't know where
the market is going to go next hour, much less
next week or next year. But all of this idea,
all of this is in your brain. Is the way
God made us. Our brains expect something, and in the
world of financial planning. In the family, you expect your

(11:34):
kids to grow up perfect, to go to college, to
have a great career. You expect your grandkids to be.

Speaker 3 (11:38):
Brilliant, expect them to marry well.

Speaker 2 (11:40):
Yeah, merry well, I mean all of these things. When
you die, you expect the kids to keep the farm
all of those things are not based on reality. Bo
and Wanda and I see reality every day in our office.
So we're going to talk about that first, what to
expect and what's reality.

Speaker 3 (11:58):
Well, and you know, I just met with someone recently
that it's a second marriage, but it's a long term
second marriage. They've been married twenty five years. Wow, there's
a stepdaughter involved. Stepdaughter doesn't get along okay, hasn't for
years with the wife's side of the family.

Speaker 1 (12:15):
Or her the blended family problem.

Speaker 3 (12:18):
So the meeting for with me was how because she's
the one with the family wealth, she doesn't have it yet,
but likely mom is ninety five, Likely it's going to
pass to her and she's not gonna run out of
this this money even in care. And so she's like,
how do I how do I want?

Speaker 5 (12:38):
I want?

Speaker 3 (12:39):
I want the money to stay in my family. I
don't I don't really want her to have access to it.
I said, well, if you don't do some planning, it
will go to your husband because you have him as
beneficiary and you will and things like that, So it
will go to him and you can't control what he
does with it. And he's got a daughter. If something
happens to him shortly after he inherits your money, then

(13:03):
it's going to go to the daughter. That's reality. So
this is where you have to do proper planning and
proper documents and nail it down tight. I didn't talk
to someone recently. It's one of your clients, Gray that
his son, her son was meeting with me for the
paperwork and stuff like that, and he said, you know what,

(13:23):
thanks to y'all, my mom had things nailed down tight.
That was good to hear. Yes, because she had been
our client for years. We sent her to the attorney,
she got everything with her cancer diagnosed, and got everything
nailed down tight. He said it was seamless. He said,
even the step children cannot penetrate this. So it was
kind of cool to hear that everything stayed that was

(13:47):
hers stayed with him. That was kind of cool.

Speaker 4 (13:49):
Yeah, And I'll talk about it from the two different perspectives,
you know, those leaving assets and then those receiving assets,
because there are often lofty expectations on both sides. I
have several clients, and I know we all do, that
are multi generational relationships. You know, I've got the mom
and the dad and then I've got some of the
kids and one of my longer term clients. The mom

(14:10):
and dad are very very well to do, and unfortunately
they're both in long term care facilities now, and they
are they are ultra high net worth and kind of
came up that way. They planned, well, that's right, but
they're spending a whole lot of money on their care
and I'm talking about like two hundred and fifty thousand

(14:32):
dollars a year almost on care.

Speaker 3 (14:34):
That's not unusual.

Speaker 4 (14:35):
And they are healthy in a way, and they've been
in this care facility for about three years now. One
of their children knew that mom and dad grew up
wealthy and in a way kind of forewent their own
retirement planning against my advice, because they knew or they
thought that they were going to inherit a lot of
money at some point. And you know, it's a really

(14:58):
tough spot for that child to be in because they're
in a way objectively rooting against mom and dad so
that they can get their inheritance, you know what I mean.
And so they're having to work longer than they expected
to because they expected this large inheritance mom and dad.
Mom or dad might live for another ten years and
at two hundred and forty thousand dollars, you know what

(15:19):
kind of impact that makes on an inheritance. Not to mention,
it's got to be split. So that's the inheritor side,
but the one leaving the inheritance.

Speaker 5 (15:28):
Think about this.

Speaker 4 (15:30):
Oftentimes Mom and dad think that the most responsible kid
is going to be the one to run the estate,
and that's not often the case. And sometimes the most
responsible kid does not live in state, not live anywhere
around them. And the fact is, I think it's one
out of ten adult children live within fifty miles of

(15:51):
their parents. And so you just have to be conscious
of this. And the best way to bridge this gap
between expectation and reality is you guessed it. Have an
open conversation with your kids. And I can't tell you
how many times we have facilitated that and brought both
parties in to sit down with them and say, hey, look,
let us be the bad guy. Let us bring up

(16:11):
the things that are tough to talk about, and we
will speak about it objectively so that we can air
everything out. Because now's the time to do it. Don't
go into this next chapter of your life, which is
you know, the final chapter without reality being in check,
because it's really dangerous.

Speaker 3 (16:27):
The best generational family planning that anyone can do is
secure long term care because if you think about it,
that's going to eat away just like you said, that's right, yeah,
at the inheritance. So why not put it in place
way before you need it? And it would help what
you want to do, which is leave a legacy instead
of giving it to the facility.

Speaker 4 (16:45):
Yeah, it's a big time legacy protector, which is kind
of how I pitch it oftentimes.

Speaker 2 (16:49):
And looped into that is the Medicare and Medicaid government
programs and stuff like that. There's a lot of misunderstanding there.
You need to ask your advisor about that. How does
Medicare and Medicaid works because Medicare will cover essentially in
two different segments, the first twenty in the first eighty
days of long term care if a doctor requires it.

(17:11):
So there's a lot of stuff that's misunderstood and so
forth about that. But I agree long term care insurance
is one way to avoid issues involving inheritance and costs
of living and all those kind of things. It is
interesting to get people's perspective on things. The one thing
I'm still very concerned about with just general public. Is

(17:34):
that stat about seventy percent of adults don't.

Speaker 1 (17:38):
Have a will. They don't even have a will.

Speaker 2 (17:40):
And there's so much misunderstanding of well, I'm going to
leave my IRA to somebody. Now I'll go, well, who's
the beneficiary, And they don't know. Sometimes I mean, their
biggest asset maybe an IRA rollover from Flora Wink, and
they don't know what the beneficiary situation is. Another thing

(18:01):
involved in this kind of generally speaking this topic is
the trusted contact. This is really important because sometimes like
we'll have people where they're surviving spouse and they're getting
older and then suddenly they meet somebody and kind of
the blended family issue comes up, like wait a minute,

(18:21):
what do the adult kids think? Well, they think this
guy or woman is coming in to raid the.

Speaker 1 (18:25):
Nest, and there they are.

Speaker 2 (18:28):
And some people are some unethical adult seniors are chasing.
When my first wife dies, Sue, I had several women
tell me look out for the casserole ladies, and what's
a casserole?

Speaker 3 (18:43):
Yeah?

Speaker 4 (18:43):
I know.

Speaker 2 (18:44):
There was like, oh, they're going to knock on your door. Oh, Greg,
so sorry for your loss. And by the way, here's
a nice casserole.

Speaker 1 (18:50):
Yeah, that's right, that's right, that's right.

Speaker 2 (18:53):
So again again it's kind of funny, but it's kind
of serious because we deal that's the reality thing. People
don't don't expect that, like, for example, for me, like
like my mother died at sixty five, my dad.

Speaker 3 (19:07):
Is sixty six.

Speaker 2 (19:09):
Sue's parents, her mom lived to ninety two. So our
financial plan was I die first and Sue lives a
long time. And then the Lord said no, taking Sue first. Greg,
You're going to survive. So again, you plan, you do
the best you can because we don't know the future.
But this efficient planning strategy is just absolutely critical to

(19:32):
make things go smooth after you're gone.

Speaker 3 (19:34):
Well, if you don't plan, you're planning.

Speaker 1 (19:36):
You're planning to fail.

Speaker 3 (19:37):
That's the bottom line. Someone's gonna get it, and it
may not be who you want, and it may be
tied up a while things like that, So you do want.
I'm still surprised when I meet with people and I say,
do you have a will? The lady I met with
recently seventy two didn't have a will. Yeah, And I
was like, you do know that? And she had assets

(19:57):
I'm like, I mean what he said, I just know
I got around to it. So you here, let me
give you this card. I'll let him know that you're going.

Speaker 1 (20:06):
Yeah, you will get around to it.

Speaker 4 (20:08):
The answer is always like, no, I know, I know
I need to do it.

Speaker 5 (20:12):
It's there.

Speaker 4 (20:13):
They just don't take that extra step because you have
to think about morbidity and that's not fun.

Speaker 5 (20:17):
Nobody wants to do that.

Speaker 4 (20:19):
But nobody wants to go out and think about morbidity
and buy insurance and do their will. Both are crucial
if you love the people that you're leaving.

Speaker 3 (20:26):
Me absolutely.

Speaker 2 (20:27):
I love the phone call where my husband and I
are getting ready to fly over to Europe for now
we're going to do we need to do a will.
Who who is the lawyer you gave us? And I'm like, oh,
so now you're expecting to die, so now you know
the future when you're gonna die. No, I don't think so,
but anyway, and again, just look, you know these are

(20:48):
just simple things. Look who the beneficiaries are on life
insurance IRA four oh and K annuity whatever. Make sure
your real estate is titled correctly. These are all things
that are like insignificance sort of in your head. But
the problem is they're significant when something when reality hits.
To keep our thing going, So that will take a

(21:09):
quick break. We're halfway through this show. Stay tuned, we'll
be back in a minute. Welcome back to the second
half of the Greg Kick Show. Regardless of how you're
listening on the radio or podcast or whatever, you can
just if you're a podcast person, just type in the
Greg Kick Show and you'll find shows, multiple topics and history.
We also archive our shows. The Raleigh station one oh

(21:31):
six' one FM Talk has a little tab on their
page on the Internet and you can click on the
Greg Kickshow and then scroll down and pick a topic
that you want to listen to because they archive about
fifty weeks back of our shows. And also you can
go on our website. Our website is the initials of

(21:53):
our business, Financial Resource Management. We're headquartered in North Carolina.
So the website is f M Inc dot com frm
NC dot com and you can click the radio tabs,
scroll down and find us there. You can also look
at our two offices in Raleigh in Atlantic Beach, North Carolina.

(22:14):
Biographical sketches of Bo and Wanda and Me, and our
backgrounds and all of that stuff. There's a lot of
great information on that website. By the way, we even
have our newsletters that we send a client. So a
lot of people I noticed when they listen on the radio,
if they come to our office to meet with one
of us, a lot of times they'll say, I checked
you out on the website, which is a very common

(22:36):
thing to do, and we welcome you to check us
out on the website, but then call us to meet
with us, because there's nothing nothing like a personal appointment.
Nine one, nine, eight, five six, nineteen sixty eight.

Speaker 1 (22:49):
That's the call. If you're on a weekend, just leave
a voicemail. We'll call you back.

Speaker 2 (22:54):
We have three great administrators that take care of us well,
and we'll do anything they can to prepare a good
appointment with you. So today we're talking about a generational
financial planning older parents, mid age, adults, growing kids, younger age,

(23:14):
all kinds of ways to help parents, grandparents and kids
together in one big giant financial plan.

Speaker 1 (23:20):
Let's talk about this. One way to kind of.

Speaker 2 (23:24):
Start the ball rolling is what we call a family meeting,
and that meeting can be done with you guys, of course,
with your own family in a private place. But we
sometimes have older clients bring their adult kids in, and
that's one of the most favorite meetings I have. I
love it when I can say things to the adult

(23:45):
child and I can challenge. Sometimes they'll bring twenty five
year old kid in and I'll challenge them with saving now,
putting money in a four to one k or roth
ira and so forth. But just the idea that you're
not afraid to share some of the plans you have
with your family is absolutely critical because everything we do

(24:06):
in the financial world is about relationships, and one of
the the worst things to do is to destroy a
family relationship by bad financial planning. I see it all
the time, and it makes me sick because it could
have been prevented.

Speaker 3 (24:19):
Well. I had a meeting recently with a client that
brought his wife is experiencing diminishing capacity. I mean it's
not you know, she's still somewhat okay. But daughter came
in too, and they met with me about setting up
power of attorneys and things like that, and she was
she knew what was going on, and she's the one

(24:40):
that has the business with me. But dad, her husband,
and daughter came in. She only has one daughter, and
they sat down and they said, Mom knows we're meeting.
Mom knows we're talking about her. But you know, Mom
wasn't interactive too much, but they would say to her, Mom,
you understand what we're doing here, right that dad is

(25:01):
going to be power of attorneys, so Wanda can talk
to him about your information, which usually she would put
him on the phone anyway. So it was it was
really good that they did that, you know, and they
know that power of attorney goes away at death, but
he was more concerned about helping her and the daughter
was too. While she was getting this in place before

(25:23):
she lost total memory and capacity.

Speaker 4 (25:27):
It was a.

Speaker 3 (25:28):
Beautiful meeting they were. They were both you know, loving
on Mom. And I've had she's been my client for
years and so it was a sad point for me
because I've only worked with her. I'm not really you know,
worked with the other two. But that was a loving
meeting because they even though she doesn't didn't have much,
you know, input, it was still beautiful to see Mom,

(25:50):
you know why we're doing this, you know what we're doing.
It was it was great.

Speaker 4 (25:53):
I loved it. Yeah, and it's so important and you know,
it's not due to intentional this organization that people avoid
this conversation is just discomfort. Parents don't really like talking
about this stuff with the kids. But the reality, back
to the expectation and reality is at some point it's
all going to be uncovered. And if it's uncovered and

(26:13):
it's a big, huge mess and there hasn't been prior
communication and there haven't been roles established, then you're right,
it could jeopardize a relationship between your kids and the
next generation. And so kind of a real life agenda
of something we might talk about was going over those roles.
Who's the executor, who's the trustee, who's the healthcare power
of attorney? All that kind of stuff, and.

Speaker 5 (26:33):
Is that still current?

Speaker 4 (26:34):
Is that still who you want it to be? The
best choice? Are they aware of that? Where are your documents?
Are they current? When was the last time you updated them?
Are their charitable intentions, business succession plans? All that kind
of stuff. We want to air it all out, make
sure of that everybody who needs to be involved is
current and on the same page with that, because you know,

(26:57):
that's how we prevent the mess from being made down
the road. And Greg mentioned the trusted contact earlier. Trusted
contact is also good for what I want to just mention.
When there's someone who does have diminished capacity, we can
call your listed trusted contact, whether it's you know, a
son or daughter or whoever, and say, hey, how's your
mom been doing? This is her advisor. If we don't

(27:18):
have a relationship with them already, I've kind of noticed
some things. Just to be totally candid with you, is
she doing all right? Or what have you noticed? Are
there some things that we might want to do in
advance of her going downhill even more? And that's the
kind of white glove thing we try to do with
our clients. And we've intentionally set our business practice up
this way, kind of like a family office involved with

(27:39):
estate planning, attorneys of involved with CPAs and medicare coordinators
and everything else, because we know that all of that
is important in a successful financial life for you and
your family. And so if any of this is striking
a nerve, we'd love to meet you nine one nine
eight five six one nine six eight And.

Speaker 2 (27:59):
If you if you'd have the blended family idea. And
this happens a lot now where a spouse dies and
a few years later they remarry. Years and years ago,
one and I wrote a book about financial planning and
we had a chapter called prenups are Sexy prenuptial agreements. Again,
it's a it's a simple form that a lawyer sets

(28:20):
up for second marriages and where each spouse has kids,
adult kids, particularly, and again that people say, well, oh,
I've had so many clients say, well, if I recommend
a prenup with my new box or my new woman,
they won't think I'll love them. I mean, that's the
first comment.

Speaker 1 (28:37):
I go on.

Speaker 2 (28:38):
The on the other hand, you're you're actually showing them love.
And the reason is and I'm exhibit A. I remarried
a wonderful woman named Laurie six and a half years ago,
and I told Laurie her what would her what would
your adult kids think if they thought I was hustling
you to marry and so that I would be put

(28:59):
on your house, for example, joint owner of the house.
And then when you had a car wreck and died
young and I inherit your house, your your kids, the
house they grew up in. And she went, oh my god.
And I said, because she had said, at the advice
of a friend of her as a lawyer, don't do
a prenup. If Greg mentioned Lauria, if Greg mentions a prenup,

(29:22):
run that was the quote, and it was it was
an innocent thing. But I said, Laurie, let me just
explain in two minutes. And when I said the house things,
she went, oh my god, we're going to.

Speaker 1 (29:32):
Do a prenup.

Speaker 5 (29:33):
You don't know what you don't know?

Speaker 3 (29:35):
Yeah.

Speaker 2 (29:35):
Yeah, So she was just and she was hearing it
from a legal side too, which is again, want to
mention it earlier second opinion. Sometimes, I mean, we're not
always correct either in our opinion, and we highly recommend
that you talk.

Speaker 1 (29:49):
To your attorney or CPA.

Speaker 2 (29:51):
We don't do wills, we don't write trusts, but we've
read a lot of them and we know what can
go completely berserk wrong.

Speaker 3 (29:58):
We'll keeping them update updated too, because sometimes a trustee
dies or you know, and I did talk to someone recently.
They had a four to one K and they left
the job like fifteen years ago, never rolled it over
to any anyone, and left the old beneficiary the old beneficiaries.
Oh my, And I was like, uh, I know, I
know that same thing. I know, I know. Well, let's

(30:21):
call them today, let's get this benefit because you know,
I guess when you're you know, you just don't think
death's gonna come or whatever. And if that she had
passed away, you've been at the same job.

Speaker 5 (30:33):
The ex husband would have got the money.

Speaker 4 (30:36):
You've been at the same job for forty forty five years.
I mean, we've met several lifers who were at you know,
IBM or SAS or wherever. And you're in your sixties,
you're in your seventies. Your clock is ticking, you know,
and you likely haven't gone sorry, sorry, sorry, guys, you
likely haven't gone in and updated your beneficiaries on your

(30:56):
four to one K since you started it.

Speaker 5 (30:58):
Yeah, and so it's important.

Speaker 4 (31:00):
And if that's you, if you're in your sixties or whenever,
then you've been working at a company for a long time.
You've probably had some changes in your life since you
first set that four oh one K up, So go
in and look at it better. Yet, if you're fifty
nine and a half, you can take your four oh
one K and you can take basically control of the
money that's in there through what's called an in service withdrawal.
So you got a couple million bucks into four oh

(31:20):
one k with a company you've been with for a
long time and you're sixty one years old, not ready
to retire yet. Well, you can pull that money out
and put some strategic management on it to reduce the downside.
Go ahead and get some income going.

Speaker 5 (31:34):
Give us a call.

Speaker 4 (31:35):
We can walk you through that. Nine one nine eight
five six one nine six eight.

Speaker 2 (31:39):
One other thought before we take our next break is
sometimes you'll have a special needs child that's an adult.
I have an adult special needs child. So with my
attorney friend, we set up a special needs trust. So
if I pass away, my daughter and grandkids will inherherit
that money, and then my son who's special needs, who's

(31:59):
a great guy, but he can't really handle his own finances,
that special needs trust is set up. I've had cases
where the daughter is a heroin addict and the son
is a great guy with a family.

Speaker 1 (32:13):
How do you split? You know your your heart is apparent,
like I'm will split fifty to fifty.

Speaker 2 (32:18):
But the heroinatic daughter is going to blow through three
hundred thousand dollars in a year, and so there are
ways to mitigate that. You can set up trust and
again this is the state attorney stuff. You can set
up a trust. There are a few annuities that let
you target how let's say a problem child gets the money.
Instead of getting three hundred thousand lump some they may

(32:40):
get you know, twenty or ten thousand a year for
the next thirty years or something like that. So there
are ways. There's sophisticated ways, and there's simpler ways sometimes
to solve the problem. Because families aren't perfect. So you
may have a special needs kid, you may have you
may have a dog. This is married to a scumback

(33:01):
husband and they have grandkids. How do you leave that
portion so that the scumbag husband doesn't mess the money up?
So we're talking reality here, not expectations. So those are
things if you need to call us to talk through that.
Nine eight five six, nineteen sixty eight. Okay, we're going
to take our next break, and we have one more

(33:22):
segment to go over some great ideas. Stay tuned and
we're doing the last segment of the Great Hicks Show.
If you've missed today's show, it is being recorded and
you can hear the shows on Saturday and Sunday, both
in the Raleigh, North Carolina metro area at two o'clock
two pm on Saturday and Sunday on one oh six
one FM Talk and then at the talk station down

(33:44):
to the Moorhead City, Newburn the Crystal Coast area. Our
shows are also on Saturday morning at seven for early birds,
and then on Sunday afternoon at three, so the shows
are played twice on the weekends. They're also podcasts, and
so you can go back if you miss the first
part of this show on generational financial planning.

Speaker 1 (34:05):
You can just pull it up and go back and.

Speaker 2 (34:06):
Listen to the segments that you missed and also the
other topics of the day. So let me give you
a heads up at what's coming up in the next
three or four weeks. Next week, after being in the
family planning area for about three or four weeks in
a row, we're now going to go to the investment world.
So next week we're going to talk about stocks, how

(34:27):
to buy them, when to sell them, what to look for,
all those kind of things. And then two weeks from
the day mutual funds and ETFs. Most everybody has a
four oh one K or a simple IRA at work,
and we'll talk about that concept. And then third week
after that, real estate real estate investing. We still believe
big time in real estate, and a lot of people

(34:48):
don't realize you can actually buy stocks that are targeted
to certain types of real estate, so you can own
real estate with liquidity. There's all kinds of things tax
law and all that kind of stuff with real estate. Anyway,
the next three shows are specifically designed for you investors
out there, and we know you're out there because we
get a lot of phone calls about that. Speaking of

(35:08):
phone calls, call this number if you want to talk
to one of us nine one nine eight five six
nineteen sixty eight, and we'll give that number again a
couple of times before we close our show today.

Speaker 1 (35:20):
Okay, let's talk about older abuse, yeah.

Speaker 2 (35:24):
Elder abuse, and then talk about the tax ramifications of
all of the stuff we've been talking about with family issues.

Speaker 3 (35:31):
I just want to make sure we did touch on
the financial fraud that's committed against seniors. And because it's
very important, I've gotten I know two, I think two
calls in the last two weeks about different things that
my clients have been faced with, emails and things like that.
One actually owns some property and got to notice about

(35:53):
somebody that interested in buying the land and thank you
for reaching out to us, and he never did. He
didn't reach out to that, so he was on his way.
I've got to call him and figure out what he
found out. But he was on the way to the
courthouse when I saw him to figure out what was
going on, and he feels like he was going to
have to hire an attorney, and that's kind of sad.

(36:13):
It's his property. So those things are happening, and there
are ways you can do checks and balances on that.
You can go to the regist of Deeds and there's
a little drop down box and you can sign up
to receive notices, which is what he had done, and
you can receive notices if anyone is inquiring on your
property or if there's a lean getting ready to be placed,

(36:36):
they will notify you. So you don't have to pay
a service to do that. I'm not saying you shouldn't
pay a service, but you could use this. This is free,
so I even signed up for that. So that's something
you can do. And that seems to be pretty rampant
these days, especially in other states like California, but it
is making its way here and we are hearing about cases.

(36:56):
The other thing is is, honestly, it would be good
to have a trusted daughter or son that can look
at your bank accounts just to check every now and
then to make sure you know the things are going
through are true and something that you did, because that
happens too, because you get these people that test it

(37:17):
out for a dollar and something to see if the
debt's going to go through, and then they'll put the
big whammy on there. So there's lots of ways that
you can protect yourself. One of the biggest ways is
to freeze your credit. If you're not using credit anymore,
you're not applying for loans, freeze the credit. I don't
care how old you are. Freeze the credit. That can
stop some of this stuff. Now you will have to

(37:39):
set up a password and pen and all that. Just
write that down and put it in a safe place.
There's so many more things to talk about with that.
But I do want you to remember those things that
I just mentioned. If you don't remember and you said,
what did she say, give me a call? Nine one
nine A five six nineteen sixty eight, do remember you
get a complimentary meeting. But financial fraud is out there

(38:00):
for all ages. But particularly the senior population.

Speaker 4 (38:04):
Yeah, a very good idea to have some monitoring on
mom and or Dad's bank account with their senior particularly
if they're by themselves, because oftentimes these scams happen over
the phone, and these older people are just naturally a
little lonely without their partner around anymore. In the phone
rings and they got somebody talking to them. Maybe it's
a yeah, fast talker. Uh, maybe it's in you know,

(38:28):
an American accent. Maybe it's not. More likely it's not.
And that is where I had a client about a
year ago whose dad got just totally totally hoodwinked.

Speaker 5 (38:40):
Out of so much money. And there's not a whole
lot of recourse.

Speaker 4 (38:44):
And stuff like this because they these hackers are good.
As soon as they take this money, it's gone through
all these different channels. If you watch Fox News, Fox
News has been pumping by Gold by Gold, a lot
of people will literally pick up the phone and call
the numbers on the screen, which are I guess in
a way kind of legitimized. But put a whole lot

(39:05):
of money in something that you know, they don't know
how to access. And Gold's great, I mean gold quick
side note on gold. Gold's outperformed the S and P
over the past twenty years. Gold's been on an absolute
tear in the past couple couple couple of years.

Speaker 3 (39:19):
Want to buy it now?

Speaker 4 (39:20):
Yeah, not a recommendation at all, But Wanda mentioned putting
putting your name or viewership on bank accounts. Be careful
segue into our next our next point. Do not add
a child to an investment account, particularly if you have
or a house something that is highly appreciated, or an
account that holds a lot of highly appreciated assets, because

(39:41):
if you do that, you're in a way negating part
of the benefit that they will get when you pass
that money or that house or those stocks onto them.
And what I mean is when you pass a highly
appreciated stocks. Let's say you bought Procter and Gamble back
in the seventies and you put twenty thousand dollars in it,
and now you got one and a half million dollars.
You can't do a whole lot with it. There's some

(40:03):
charitable solutions that you can do, but you are kind
of trapped in terms of taxes because if you sell
that there's going to be a pretty significant capital gain.
But if you're older and you're planning on leaving that
to the next generation when they inherit it, assuming you
just leave it to them in your will they inherit

(40:25):
or the new cost basis is the current fair market value,
So that Procter and Gamble and that example would now
be fifteen or one point five million dollars would be
the price at which that son or daughter purchased it.
They can turn around and sell it for effectively no taxes,
and if you add their name to that account, well
it kind of negates that. So just be careful on
what you're doing as you're trying to do the best

(40:48):
thing to this point in life.

Speaker 3 (40:49):
Thank accounts a little different because they're liquid money. Yeah,
you can add a child to that if you've got
to trusted child that you would like to do that,
And I do sometimes recommend that. Is that the client
does not want a power of attorney because it's all encompassing.
How of attorneys can be dangerous as well depending on
who you give that to. So they just want some monitoring.

(41:10):
So checking accounts not a bad idea. Like both said,
highly appreciate assets not a good idea.

Speaker 2 (41:17):
Also, I had this happen several times where even an
attorney told an older person to put their daughter on.

Speaker 1 (41:25):
The deed of the house.

Speaker 2 (41:26):
Well, the house was worth four hundred thousand, they paid
fifty thousand for it thirty years ago. And I immediately
said to them, are you crazy because you just gave
your daughter the fifty thousand dollars cost spass, So when
your mom dies, you're going to have a lot of
cap gains on the house. And she was like what,
she had no idea. So it is true, know the

(41:48):
tax issues, that's kind of an all encomassing subject. But
one thing we're not CPAs, but bo and Wine and
I can look at all your titles and inheritances and
stuff like that. Almost no one knows about the IRA
beneficiary rules. If you're a non spouse, you got ten
years to pull it out. And we've had cases where
somebody inherited a million or two million dollar IRA and

(42:11):
they had no idea they got to pull it out
in ten years. They got a two million dollar IRA.
If you just do simple math, two hundred thousand a year, boy,
that changes your taxes. I mean, it's a blessing, it's
a wonderful blessing. But you can't delay that anymore like
you used to. So tax law changes all the time.
We have trouble ourselves keeping up with it, but we
have access to a lot of that stuff. It can

(42:32):
help you plan ahead, you know, plan ahead. There's all
kinds of little things you can do before dying. Like
there's a nineteen thousand a year free gift to anybody
every year in the tax code, no reporting. So I
have some wealthy people that say, boy, I'd love to
give my kids, and now my adult grandkids are out
of college, and I go, did you know you and

(42:53):
your wife can give nineteen thousand each and not report
it to the IRS, nor do the.

Speaker 1 (42:58):
People inheriting it. Oh, no way. So again, you.

Speaker 2 (43:03):
Want to lower your estate, will lower it in a
great way by giving your kids and adult grandkids or
even a five twenty nine for a non adult grandkid
before you die. You get to bless them. Now you
get to see the result of the gift.

Speaker 1 (43:17):
I love that. Add I think it's marvelous.

Speaker 4 (43:19):
At you and you mentioned the IRA beneficiary rules. It
stinks and it's great to inherit money, but when you
have a million dollars that you've inherited, that you've got
to take out over the course of ten years. Like
Greg mentioned, that's a big tax issue. So oftentimes mom
and dad want to go ahead and pay those taxes
before they leave it to the kids, because those taxes

(43:40):
have to be paid at some point. There are a
lot of strategic ways to do that. You can donate
a lot of your IRA money to church. If you're
putting money in the collection plate, you should stop because
there's so many better ways. I'm not saying stop donating
to your church.

Speaker 5 (43:54):
It's not going, but there's so many better ways to
do it.

Speaker 4 (43:58):
Because you're donating at the same time, I'm in a
way to Uncle Sam, and you don't want to be
doing that, and so just give us a call. We
can help you walk through all these high level nuances
to make sure that you are setting up your portfolio
and your state in the proper way, with thoughtful planning,
and not leaving Uncle Sam as a beneficiary nine one
nine eight five six one nine six eight.

Speaker 3 (44:19):
I don't know why the government doesn't allow a non
spouse beneficiary to do a wroth conversion on that money.
I don't because they're going to get taxes, they're going
to get their taxes, so that would allow the the
benefactor to have a wroth ira.

Speaker 2 (44:34):
I'man, why does the government do anything to me?

Speaker 1 (44:41):
Yeah?

Speaker 2 (44:42):
And you know, by the way, Wanda and Bow and
I attended a seminar. We we have continuing ad training
and updates all the time real quick.

Speaker 1 (44:51):
For you people out there that have.

Speaker 2 (44:53):
High net worth, a lot of assets, and and you're
charitably minded, there's there's charitable trust. Both kind of mentioned
it briefly, but there's a way to gift money now
and then get a guaranteed income for the rest of
your life and your spouses and get an income partial
income tax right off with the gift, but also generate

(45:13):
income from the gift until you die, and then when
you both pass away if you're married, the gift goes
to one or more or multiple charities, ministries, churches. So
if you're a person of high net worth, give us
a call. There are things out there you could like.

Speaker 1 (45:29):
Both said you.

Speaker 2 (45:30):
Might be locked in Procter and Gamble with a million
and a half, but you could donate all or part
of that to a charitable trust and do a lot
of good. So we're gonna have to close with that,
wrap it up, give US a call at nine one,
nine eight five six nineteen sixty eight with a loft
to talk to you and remember this. It's your money,
it's your future, Don't blow it.

Speaker 4 (45:49):
Advisory services through Coupitle Investment Advisory Services LLC Security is
offered through Capital Investment Group, Bank, Camember, Finra and SIPIK
one thousand and e six Forks Road, Raleigh, North Carolina
nine one nine one twenty three seventy.

Speaker 5 (46:00):
TAST performance is not indicative of future results