October 12, 2025 • 9 mins
Joe Schmitz from Peak Retirement Planning speaks to Boots!
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
All right, Joe in the house from Peak Retirement, Jim
Everson from Ohio Care Patrol Cross raw Pack. Yeah, I've
got the two smartest guys I know and many smart
Yeah I know from Martins. But the thing I want
to touch on, and we've been talking heavy about this
and it's all about money. Let's just face it. You're
(00:20):
so I want to change gears a little bit and say, Okay,
here's a guy. It's to say, a Hanta guy. He
worked at Hana's whole life. He invested his money right,
He's now seventy six years old, he just got a
new hip, he's now single, and he needs to live
in assisted living, not all the way, but just cruiz
rest of his life out in peace. When he comes
(00:42):
to you, Joe, and he's been with you since day
one at peak retirement, and he's invested money, and I
know you've done him right, and I know he's got
plenty of money. How do you coach him at that
point after you work with Jim?
Speaker 2 (00:51):
Yeah, I mean it's it's in a very expensive expense,
I'll say, but it's needed. So it's something we have
to plan for. But I mean, you're looking at one
hundred thousand dollar plus for a facility. Now, so you know,
to your point, Boots is we'd want to look at
that years ahead, so we'd want to start planning for
you know, maybe in their late fifties, sixties, even seventies,
because the average age of needing long term cares about
(01:13):
age eighty three, and so there's a lot of preparation.
But the other thing is is that most long term
care events typically for most people are only about three
to five years. So we kind of have an expectation
of what to expect on the financial side of.
Speaker 1 (01:26):
How much one hundred grand total one hundred grand a year.
Speaker 2 (01:28):
One hundred grand a year for three to five years.
Speaker 1 (01:30):
Wow, yeah, it can be that.
Speaker 3 (01:31):
Yeah, and you know, and that's where you know, Joe
can really just give guidance on just how to protect assets.
Speaker 1 (01:37):
So you can protect assets.
Speaker 3 (01:39):
And we can collaborate to find the community that if
they privately pay for two years, we could you know,
get creative.
Speaker 1 (01:44):
If we had to keep saying privately, does that mean
no government.
Speaker 3 (01:48):
Is still yeah, you have to have private funds instead
of you know, if you're subsidized housing right now, it's
just if you have no income, it's like trying to
go buy a house without a without an income, you know,
with no money, you know, you so assisted living, as
you just heard Joe say, it could be up to ten,
you know, one hundred thousand a year, depending on level
care and the type of one person. Well, I mean
on average it's probably you know, seven, you know, sixty
(02:10):
five hundred st So you're gonna.
Speaker 2 (02:12):
Get and most people are going to want to stay
at their home and you know that's going to be
the start of the long term care event typically, and
so that you can typically get by with probably about
four to six thousand dollars a month, but nursing homes nowadays,
I mean, to find it under one hundred thousand, I don't.
I don't know, Jim, if you've seen.
Speaker 3 (02:26):
It with living, you know, I can find the right community,
you know, and it's not even a budget, but I mean,
it's just it's all based on level care, the size
of the room that you apartment. So I mean I
can typically find some you know, a good you know
place that's going to be six seven grand a month.
Speaker 1 (02:42):
Okay, what about back to my hanted guy, he he
is now worth without you pigeonholing yourself here, What is
your that guy you think would be worth if he
came to you when he had five years left in
Honda and he's investing with you? How much you think
I get to do a stereotypical thing.
Speaker 2 (03:00):
Most of the clients we work with have probably around
a million dollars saved up at this point.
Speaker 1 (03:03):
But one hundred grand a year, yeah, I mean if
he lives ten years.
Speaker 2 (03:06):
And that's what most people are worried about, is the inheritance.
You know, there's not gonna be as much of an inheritance,
but I mean, if that's what do you get to.
Speaker 1 (03:13):
Tell people, don't worry about your kids, are fine, worry
about number one? Right? Do you say that?
Speaker 2 (03:17):
I mean no, because it's it's all about their values
and their goals, right, Okay, but we do we do
tell them like, hey, you can either fly first class
or your kids can fly first class, but you can't
take this money with you. So it's going to go
to someone, right, and so we have to decide if
it's going to be us, them or even charities or
something like that.
Speaker 1 (03:32):
They got a million bucks. Now you go to gym,
you guys got the perfect spot. You find out it's
only seventy five hundred a month. Yeah, what do you
coach at that point? Because I am so lost in this,
I'm being the dummy here.
Speaker 2 (03:42):
Yeah, I mean it's hard. I mean, how do you
take one hundred thousand dollars withdrawal each year from your
investments that you've been saving so much over this time?
And so we try to pray for that in advance.
We want to make sure one it's protected, you know,
we don't want to have to worry about taking out
money from the market if the market's down, you know,
fifty percent like two thousand and eight happen. So that's
one thing, is making sure that amount of money is protected.
The other thing we look at is the tax impact.
(04:04):
So if we're going to need to take one hundred
thousand out of our old four or one k or
an ira, that's a huge.
Speaker 1 (04:10):
Taxable events thirty forty grand.
Speaker 2 (04:12):
That's going to cause more for Medicare costs more, and
so security taxation, it's going to cost pump us up
tax brackets. So those are all things we can prepare
for in advance, but if we're not preparing for it
when that time comes, the cost can be even more.
From the mistakes from planning.
Speaker 3 (04:26):
Okay, So on the other side to this is there's
a lot of you know, individuals that aren't at that
level Joe just described. But you know, if you are
a veteran and if you do have a pension coming in,
and you have social Security that's coming in, or you're
getting your husband's a pension or whatever, we still can
find you the right place. And you know, more importantly,
(04:46):
if you have lower income but you have some assets,
if you own the house and you know you have
to sell it, you know, we can find you the
right community and transition you in. And in two years,
if you feel you're going to be out of fund
you're going to be at a community I'm going to
guide you to that's going to help you know, maybe
get you on Medicaid waiver and still stay there. So
if you're late in the game and if you're at
a community now it doesn't accept Medicaid waiver, and now
(05:08):
you spend down and you only have three months worth
of funds, they're gonna, you know, have a conversation because
you're gonna have to leave. So you know, this is
where I always say two years out, talk to care
patrol and we can help guide you with that.
Speaker 1 (05:20):
So Joe, back to you, if if the guy has
a million dollars, what's he bringing in a month on
a million bucks? In most cases, give me a stereotypical
blanket and answer that should be able to offset that.
He still has a big chunk of money in the bank, right.
Speaker 2 (05:36):
Yeah, I mean you think about if it's three to
five years, one hundred thousand could be the maximum costs there.
I got to say it's three hundred five hundred thousand.
He's still got an.
Speaker 1 (05:44):
Extra half million there, Okay.
Speaker 2 (05:45):
But the problem is that most people are going to
need that for income throughout their retirement. They may not
have a pension. Only twenty percent of people have a pension, right,
Honda guy, he has a pension, he may not never
need his investment. So it's just kind of a you know,
kind of an emergency fund that he can go to
when he needs too. So, but most people are eligible
for medicaid, you know, eventually because they haven't saved as
many assets. I mean most people that we you know,
(06:08):
maybe that we don't work with, but most people out there,
they would just be eligible for medicaid. They can't have
much to their name, as Jim's saying, but that's going
to be government assisted long term.
Speaker 1 (06:17):
So wait, so you said five years is the window,
so if you look back, look back, so you'd be smart.
If you know you're sixty two, you may want to
start putting things in other people's names.
Speaker 2 (06:30):
Yeah, I mean, you can look at something called a
Medicaid Asset protection trust. But if you have iras or
if you have you know, a large pension, you may
not necessarily be eligible to do something like that to
protect your assets and kind of put it out on
the side so the government can't count that as.
Speaker 1 (06:46):
Because they're going to find it because they're criminals.
Speaker 2 (06:48):
Yeah, I mean, but you can do it in the
right way under the certain situations. But we probably only
see about five to ten percent of people are really
even eligible for that type of strategy, and they can
be pretty costly to set up. But that could be
an opertun tunity. But you know, a lot of people
like to gift some money away too while they're living,
so that you know, they have to make sure they
are aware that five year rold. But most people aren't going
to be aware that, you know, if they're able to
(07:09):
start early enough it's not going to be that bag.
Speaker 1 (07:11):
Okay. So a friend of mine has at least two
million dollars worth of paid cars in his garage. Yeah,
he's in his mid to late seventies. I'll be honest,
he's not in that great shape. But yeah, what should
he do?
Speaker 2 (07:23):
Well, here's the issue, Like people ask the all the
time about like their their houses, which can be similar
to the cars. Should I gift my house to my
children before I pass away? And that could eventually, you know,
potentially avoid the Medicaid spend down? Right, So it could
make sense.
Speaker 1 (07:39):
I've heard that a lot, But.
Speaker 2 (07:41):
You're you're missing on the taxation element of it. You
lose the stepped up basis. So if I pass away
with my house and boots, you're the beneficiary. You get
a tool, you get a full stepped up basis. You
pay no taxes if I gift it to you.
Speaker 1 (07:56):
Yeah, taxes on the properties value.
Speaker 2 (07:59):
Yeah on what So if I own a million dollar
property and let's say I bought it for five hundred
thousand dollars, there's five hundred thousand dollars of gain there
that you would have to pay taxes on if you
sold it. If I gifted it to you. If I
gave it to you up my death when I passed,
you don't have to pay any of that tax, So
it's called a stepped up basis.
Speaker 1 (08:19):
But meanwhile, otherwise they could lean that property if you
didn't have the proper money sets and set you in
the perfect home for you.
Speaker 2 (08:27):
Yep, So it's either you got to look at it
from both sides, right. But if you're not going to
be eligible for medicaid, you know, then you have to
look at that aspect too. Maybe it doesn't make sense
to gift your property because you're going to miss out
on that tax.
Speaker 1 (08:37):
You come in, how do they get a hold of you?
And you know, But.
Speaker 2 (08:41):
That's the idea of it is you want to just
make sure you understand your specific situation and know what
you can do. Because the other thing we haven't talked
about is long term care insurance. We're not personally the
biggest fans of it right now, but for those who
have had it for the last you know, five ten
plus years probably have really good policies that can really pay.
Speaker 1 (08:58):
You cash out and then take got and reinvested somewhere else.
As far as like the if you've had that long
term policy like a life, whole life or whatever.
Speaker 2 (09:08):
So there's some newer policies that are more hybrid long
term their policies, but most people have traditional where it's
kind of use it or lose it. So if you
don't use it, then.
Speaker 1 (09:15):
All right, before we go to break. How they get
Holdie Joe?
Speaker 2 (09:17):
Yeah, Peter retiret Fining dot com. They can check us
out there, check out our books, or schedule a call
with us.
Speaker 1 (09:21):
He's all over the placement. He's always at my shop,
whether orning there or not have TV on there. Joe Indy.
All right, we'll going to break when we get back.
More with Joe and more with Jim. It's a jday
here on rab Indian boots were brought to you by
the endpid American made Tattletale from the Heartlin Bank Studios
on News Radio six ten WTV
All right, Joe in the house from Peak Retirement, Jim
Everson from Ohio Care Patrol Cross raw Pack. Yeah, I've
got the two smartest guys I know and many smart
Yeah I know from Martins. But the thing I want
to touch on, and we've been talking heavy about this
and it's all about money. Let's just face it. You're
(00:20):
so I want to change gears a little bit and say, Okay,
here's a guy. It's to say, a Hanta guy. He
worked at Hana's whole life. He invested his money right,
He's now seventy six years old, he just got a
new hip, he's now single, and he needs to live
in assisted living, not all the way, but just cruiz
rest of his life out in peace. When he comes
(00:42):
to you, Joe, and he's been with you since day
one at peak retirement, and he's invested money, and I
know you've done him right, and I know he's got
plenty of money. How do you coach him at that
point after you work with Jim?
Speaker 2 (00:51):
Yeah, I mean it's it's in a very expensive expense,
I'll say, but it's needed. So it's something we have
to plan for. But I mean, you're looking at one
hundred thousand dollar plus for a facility. Now, so you know,
to your point, Boots is we'd want to look at
that years ahead, so we'd want to start planning for
you know, maybe in their late fifties, sixties, even seventies,
because the average age of needing long term cares about
(01:13):
age eighty three, and so there's a lot of preparation.
But the other thing is is that most long term
care events typically for most people are only about three
to five years. So we kind of have an expectation
of what to expect on the financial side of.
Speaker 1 (01:26):
How much one hundred grand total one hundred grand a year.
Speaker 2 (01:28):
One hundred grand a year for three to five years.
Speaker 1 (01:30):
Wow, yeah, it can be that.
Speaker 3 (01:31):
Yeah, and you know, and that's where you know, Joe
can really just give guidance on just how to protect assets.
Speaker 1 (01:37):
So you can protect assets.
Speaker 3 (01:39):
And we can collaborate to find the community that if
they privately pay for two years, we could you know,
get creative.
Speaker 1 (01:44):
If we had to keep saying privately, does that mean
no government.
Speaker 3 (01:48):
Is still yeah, you have to have private funds instead
of you know, if you're subsidized housing right now, it's
just if you have no income, it's like trying to
go buy a house without a without an income, you know,
with no money, you know, you so assisted living, as
you just heard Joe say, it could be up to ten,
you know, one hundred thousand a year, depending on level
care and the type of one person. Well, I mean
on average it's probably you know, seven, you know, sixty
(02:10):
five hundred st So you're gonna.
Speaker 2 (02:12):
Get and most people are going to want to stay
at their home and you know that's going to be
the start of the long term care event typically, and
so that you can typically get by with probably about
four to six thousand dollars a month, but nursing homes nowadays,
I mean, to find it under one hundred thousand, I don't.
I don't know, Jim, if you've seen.
Speaker 3 (02:26):
It with living, you know, I can find the right community,
you know, and it's not even a budget, but I mean,
it's just it's all based on level care, the size
of the room that you apartment. So I mean I
can typically find some you know, a good you know
place that's going to be six seven grand a month.
Speaker 1 (02:42):
Okay, what about back to my hanted guy, he he
is now worth without you pigeonholing yourself here, What is
your that guy you think would be worth if he
came to you when he had five years left in
Honda and he's investing with you? How much you think
I get to do a stereotypical thing.
Speaker 2 (03:00):
Most of the clients we work with have probably around
a million dollars saved up at this point.
Speaker 1 (03:03):
But one hundred grand a year, yeah, I mean if
he lives ten years.
Speaker 2 (03:06):
And that's what most people are worried about, is the inheritance.
You know, there's not gonna be as much of an inheritance,
but I mean, if that's what do you get to.
Speaker 1 (03:13):
Tell people, don't worry about your kids, are fine, worry
about number one? Right? Do you say that?
Speaker 2 (03:17):
I mean no, because it's it's all about their values
and their goals, right, Okay, but we do we do
tell them like, hey, you can either fly first class
or your kids can fly first class, but you can't
take this money with you. So it's going to go
to someone, right, and so we have to decide if
it's going to be us, them or even charities or
something like that.
Speaker 1 (03:32):
They got a million bucks. Now you go to gym,
you guys got the perfect spot. You find out it's
only seventy five hundred a month. Yeah, what do you
coach at that point? Because I am so lost in this,
I'm being the dummy here.
Speaker 2 (03:42):
Yeah, I mean it's hard. I mean, how do you
take one hundred thousand dollars withdrawal each year from your
investments that you've been saving so much over this time?
And so we try to pray for that in advance.
We want to make sure one it's protected, you know,
we don't want to have to worry about taking out
money from the market if the market's down, you know,
fifty percent like two thousand and eight happen. So that's
one thing, is making sure that amount of money is protected.
The other thing we look at is the tax impact.
(04:04):
So if we're going to need to take one hundred
thousand out of our old four or one k or
an ira, that's a huge.
Speaker 1 (04:10):
Taxable events thirty forty grand.
Speaker 2 (04:12):
That's going to cause more for Medicare costs more, and
so security taxation, it's going to cost pump us up
tax brackets. So those are all things we can prepare
for in advance, but if we're not preparing for it
when that time comes, the cost can be even more.
From the mistakes from planning.
Speaker 3 (04:26):
Okay, So on the other side to this is there's
a lot of you know, individuals that aren't at that
level Joe just described. But you know, if you are
a veteran and if you do have a pension coming in,
and you have social Security that's coming in, or you're
getting your husband's a pension or whatever, we still can
find you the right place. And you know, more importantly,
(04:46):
if you have lower income but you have some assets,
if you own the house and you know you have
to sell it, you know, we can find you the
right community and transition you in. And in two years,
if you feel you're going to be out of fund
you're going to be at a community I'm going to
guide you to that's going to help you know, maybe
get you on Medicaid waiver and still stay there. So
if you're late in the game and if you're at
a community now it doesn't accept Medicaid waiver, and now
(05:08):
you spend down and you only have three months worth
of funds, they're gonna, you know, have a conversation because
you're gonna have to leave. So you know, this is
where I always say two years out, talk to care
patrol and we can help guide you with that.
Speaker 1 (05:20):
So Joe, back to you, if if the guy has
a million dollars, what's he bringing in a month on
a million bucks? In most cases, give me a stereotypical
blanket and answer that should be able to offset that.
He still has a big chunk of money in the bank, right.
Speaker 2 (05:36):
Yeah, I mean you think about if it's three to
five years, one hundred thousand could be the maximum costs there.
I got to say it's three hundred five hundred thousand.
He's still got an.
Speaker 1 (05:44):
Extra half million there, Okay.
Speaker 2 (05:45):
But the problem is that most people are going to
need that for income throughout their retirement. They may not
have a pension. Only twenty percent of people have a pension, right,
Honda guy, he has a pension, he may not never
need his investment. So it's just kind of a you know,
kind of an emergency fund that he can go to
when he needs too. So, but most people are eligible
for medicaid, you know, eventually because they haven't saved as
many assets. I mean most people that we you know,
(06:08):
maybe that we don't work with, but most people out there,
they would just be eligible for medicaid. They can't have
much to their name, as Jim's saying, but that's going
to be government assisted long term.
Speaker 1 (06:17):
So wait, so you said five years is the window,
so if you look back, look back, so you'd be smart.
If you know you're sixty two, you may want to
start putting things in other people's names.
Speaker 2 (06:30):
Yeah, I mean, you can look at something called a
Medicaid Asset protection trust. But if you have iras or
if you have you know, a large pension, you may
not necessarily be eligible to do something like that to
protect your assets and kind of put it out on
the side so the government can't count that as.
Speaker 1 (06:46):
Because they're going to find it because they're criminals.
Speaker 2 (06:48):
Yeah, I mean, but you can do it in the
right way under the certain situations. But we probably only
see about five to ten percent of people are really
even eligible for that type of strategy, and they can
be pretty costly to set up. But that could be
an opertun tunity. But you know, a lot of people
like to gift some money away too while they're living,
so that you know, they have to make sure they
are aware that five year rold. But most people aren't going
to be aware that, you know, if they're able to
(07:09):
start early enough it's not going to be that bag.
Speaker 1 (07:11):
Okay. So a friend of mine has at least two
million dollars worth of paid cars in his garage. Yeah,
he's in his mid to late seventies. I'll be honest,
he's not in that great shape. But yeah, what should
he do?
Speaker 2 (07:23):
Well, here's the issue, Like people ask the all the
time about like their their houses, which can be similar
to the cars. Should I gift my house to my
children before I pass away? And that could eventually, you know,
potentially avoid the Medicaid spend down? Right, So it could
make sense.
Speaker 1 (07:39):
I've heard that a lot, But.
Speaker 2 (07:41):
You're you're missing on the taxation element of it. You
lose the stepped up basis. So if I pass away
with my house and boots, you're the beneficiary. You get
a tool, you get a full stepped up basis. You
pay no taxes if I gift it to you.
Speaker 1 (07:56):
Yeah, taxes on the properties value.
Speaker 2 (07:59):
Yeah on what So if I own a million dollar
property and let's say I bought it for five hundred
thousand dollars, there's five hundred thousand dollars of gain there
that you would have to pay taxes on if you
sold it. If I gifted it to you. If I
gave it to you up my death when I passed,
you don't have to pay any of that tax, So
it's called a stepped up basis.
Speaker 1 (08:19):
But meanwhile, otherwise they could lean that property if you
didn't have the proper money sets and set you in
the perfect home for you.
Speaker 2 (08:27):
Yep, So it's either you got to look at it
from both sides, right. But if you're not going to
be eligible for medicaid, you know, then you have to
look at that aspect too. Maybe it doesn't make sense
to gift your property because you're going to miss out
on that tax.
Speaker 1 (08:37):
You come in, how do they get a hold of you?
And you know, But.
Speaker 2 (08:41):
That's the idea of it is you want to just
make sure you understand your specific situation and know what
you can do. Because the other thing we haven't talked
about is long term care insurance. We're not personally the
biggest fans of it right now, but for those who
have had it for the last you know, five ten
plus years probably have really good policies that can really pay.
Speaker 1 (08:58):
You cash out and then take got and reinvested somewhere else.
As far as like the if you've had that long
term policy like a life, whole life or whatever.
Speaker 2 (09:08):
So there's some newer policies that are more hybrid long
term their policies, but most people have traditional where it's
kind of use it or lose it. So if you
don't use it, then.
Speaker 1 (09:15):
All right, before we go to break. How they get
Holdie Joe?
Speaker 2 (09:17):
Yeah, Peter retiret Fining dot com. They can check us
out there, check out our books, or schedule a call
with us.
Speaker 1 (09:21):
He's all over the placement. He's always at my shop,
whether orning there or not have TV on there. Joe Indy.
All right, we'll going to break when we get back.
More with Joe and more with Jim. It's a jday
here on rab Indian boots were brought to you by
the endpid American made Tattletale from the Heartlin Bank Studios
on News Radio six ten WTV
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