Episode Transcript
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Speaker 1 (00:06):
Tonight creating a bucket list for your retirement. Are you
guilty of maybe having too much stock in one company?
Let's talk about what you can do about that. And
from a tax planning standpoint, what can you do about
capital gains taxes?
Speaker 2 (00:24):
You're listening to simply.
Speaker 1 (00:25):
Money presented by all Worth Financial, I mean me Wagner
along with bob' spondseller. You know, Bob, you and I
have worked with so so many people who have made
that transition into retirement, and oftentimes the conversation centers around
the financial aspects of this, but.
Speaker 2 (00:39):
There is so much more.
Speaker 1 (00:42):
And for those of you who are not knocking on
retirement's doorstep, or aren't already tired, are retired, stick with
us here because I think some of this will be
really helpful for you.
Speaker 2 (00:54):
We're talking about a bucket list.
Speaker 1 (00:56):
And how that might help you get focused on retirement exactly.
Speaker 3 (01:01):
And this I don't know about you, Amy, but this
is one of the most fun parts of what I
get to do, and I've done for years because I've
helped dozens and dozens of people actually retire at this
point in my career, and you know, this comes down
to there's a big difference in just retirement planning versus
life planning, legacy planning meaning planning, and it's a great
(01:25):
topic that we're going to cover today. Yeah.
Speaker 1 (01:27):
So my husband and I, one of the things we
talk about all the time is what retirement looks like
for us, and we have this really well, we did
have this really concrete picture in mind of we wanted
to move south and be on water, and then my
husband always said, I want to walk through my backyard,
(01:48):
get on the boat and catch dinner. I want to
be able to fish every day, right, And that was
all well and good until all these hurricanes started it in.
Speaker 4 (01:56):
And I'm laughing Amy because I thought that I've done that,
and I moved back to Cincinnati for reasons I won't
go into right now. But it's just funny, you know
what we think we're gonna do when we're in our thirties. Yeah,
life has a funny way of taking different twists and turns,
and it's all good.
Speaker 1 (02:15):
Yeah, yeah, but I think you know, you start with
what's the picture.
Speaker 2 (02:20):
What is the thing that gets us both.
Speaker 1 (02:22):
Excited about retirement. If we're a couple, if you're a
single person, what's the thing that you hold out there
for yourself is like, when I get to retirement, this
is the thing. Dream big, think big, brainstorm, and then
you can get into the nitty gritty details of how
do you get from where.
Speaker 2 (02:37):
You are right now to where you want to go.
Speaker 1 (02:39):
But I to your point, this is one of the
most fun parts of our job is then saying, Okay,
we've got the money, what are we going to do?
Speaker 3 (02:48):
Yeah? To me, there's a couple of important steps to this.
Number one, you know, we first have to get ourselves
into a place where we actually can retire. Yeah, meaning
that we have enough in come sources and investment assets
to actually be able to replace our paycheck so we
don't have to work anymore. I mean that's step one.
(03:10):
After you get into a comfortable place where that can happen,
that's where all the dreams and fun stuff happens. But
to your point, I think, I think start big. Look
at the big picture as you approach this, and what
are the big bucket list items where if my life
ended six months from now, six years from now, or
(03:33):
twenty six years from now, what are the things that
I really need to do and want to do to
put my head on the pillow and know that I
lived a good life, and I think it's important to
sit down and write those things down, and just as
important if you're married, have that same conversation with your spouse,
(03:53):
because what I find is some spouses are willing to
talk about this stuff openly and are excited about it.
Others aren't. But I could tell you from experience with
clients and personal experience, if if this is not an
ongoing conversation where both spouses are participating, there might be
there might be surprises down the road, and they might
(04:15):
not be good surprises.
Speaker 1 (04:17):
Well, I'll tell you one other great reason why it
makes sense for you to kind of get on the
same page for this picture that you have of your
future or your major money goals or your goals and
retirement is I often find that couples aren't necessarily always
on the same page financially. For instance, sometimes you'll have
a saver and a spender and in their button heads
(04:39):
all the time over you know she did that, or
he wanted to do this, or you know they're not
on the same page. If you can get together with
the same goal, then you're not fighting each other. You're
simply saying that that money that you want to spend
that thing that you want to do. Is it going
to get us closer to this thing that we want
to do together.
Speaker 2 (04:58):
Or farther away.
Speaker 1 (04:59):
So can be a great tool for just kind of
getting two people on the same page financially exactly.
Speaker 3 (05:06):
And what I find amy with a lot of the
clients I deal with is it it's not necessarily that
one spouse is the spender and the other is the savor.
It's one spouse takes a more active role in the
actual financial planning and budgeting and the other spouse doesn't. It
doesn't mean one's better or the other. They're just different.
(05:26):
Different spouses play different roles oftentimes in the marriage and
in the you know, raising of kids and everything else.
And that's that's you know, why God created the institution
of marriage. That's a good thing. Yeah, But I think
I think that's another good reason to sit down with
an advisor who has the time and has the interest
(05:47):
to actually not force, but at least encourage some of
these discussions, because you do need to talk about it
to your point so you can get on the same page.
And you know, we always talk to people. You know,
you definitely need to be having these conversations within about
five years of when you're going to actually pull the trigger,
(06:07):
not six months. Yeah, before retirement.
Speaker 1 (06:10):
You're listening to Simply Money, presented by all Worth Financial
Imami Wagner along with Bob Spawnseller. Have you thought about
what your retirement looks like? If you talk to your spouse,
have you've gotten on the same page. Does it look
like moving south? Maybe buy out? That's what mine always
look like. You know, We've got friends who both work remotely,
(06:30):
and so they are living in DestinE for January and February.
You know, sometimes it's not just a destination. Sometimes it's
what do I love to do? Is it spending time
with the grandkids? Is it volunteering for an organization that's
near and dear to your heart? Like all of those
things could be part of this bucket list for you.
What do you want to spend time on? And maybe
(06:51):
for years now it's been like I want to do
this thing, or I love doing this, or I'm.
Speaker 2 (06:55):
Passionate about this, but work is so crazy.
Speaker 1 (06:58):
Well, once you get to take work off of the table,
you have then the ability to focus on these things,
and I think it makes sense to plan.
Speaker 2 (07:05):
For them before you make the transition into retirement.
Speaker 3 (07:09):
Yeah, and as I think back over my career and again,
I you know, I've been doing this for over almost
thirty four years now, so a lot of the first
clients I worked with, you know, back in the seventies
and eighties, I think it was a badge of honor
and almost a status symbol to be able to go
to somebody and say, well, I can retire at fifty five,
(07:31):
I can retire at fifty eight. I'm finding more and
more nowadays, you know, just because you can retire a
lot of these people aren't happy because some of them
aren't happy because they didn't think about what they were
actually going to do when they stopped working. Yeah. And
I've been blessed to have a couple of good friends
(07:52):
that I can confide in who are a little bit
older than me.
Speaker 2 (07:55):
That's great, and have traveled downroads.
Speaker 3 (07:58):
I haven't tried. And I'm thinking one great piece of
advice that I got from one of my best friends,
he said, Bob, you're rapidly moving from a life of
achievement to a life period of influence and legacy, and
you need to think and plan accordingly. And that's been
(08:19):
great advice and advice that I've embraced and I'm trying
to implement.
Speaker 1 (08:23):
That's a good friend, that's great advice. And I do
think many people, because maybe feel like you're on this
hamster wheel when you're working, don't think about what does
it look like after I'm gone and listen. I also
have known many, many people too whose sense of self
worth really comes from their job, and they feel very
lost right when they get to retirement because there's no meetings,
(08:44):
there's no you know, presentations that they're giving, there's no
people that are deferring to them anymore.
Speaker 2 (08:50):
That schedule's gone.
Speaker 1 (08:52):
And that can be really tough, which is why looking
at what's your bucket list in advance can then help
you kind of redirect that energy and that focus on
something else that's not about necessarily the working and achieving,
but what's something else that's going to fill me up
in retirement.
Speaker 3 (09:09):
Well, and as you talk about that, Amy, I'm thinking
of one client in particular that I've worked with for
over thirty years, and this guy was a high level
executive department manager kind of guy made a ton of money,
heavy influence that he needed something to do. And I'll
state this as a universal truth. I think every human
(09:31):
being wants to be important to someone else, wants to
make a difference in someone's life. He is finding incredible
meaning now in just going and reading books to special
needs children. Oh yeah, Now, twenty years ago that would
have never been on his radar screen because that didn't
(09:53):
involve making money, rising the corporate ladder, you know, getting
stock options all that. But he's finding incredible meaning and
purpose from that today and if he wasn't doing that,
that'd be a major hole in his life.
Speaker 2 (10:06):
Yeah, you know you mentioned earlier.
Speaker 1 (10:08):
Once you kind of get this bucket list or whatever,
obviously you have to start with the plan and are
we going to have money to fund that? You know,
once you've sort of built this wealth, whether you've done
the bucket list first and then built the wealth accordingly,
or you've built the wealth and then you start thinking
about it, you know, you've got to have that financial
plan that says can we do this and what does
it look like. One of the things that I love
(10:31):
to do with clients who really like to travel and
have waited and kind of put off these trips of
a lifetime.
Speaker 2 (10:36):
I'll do multiple travel goals and.
Speaker 1 (10:38):
Their plan of maybe they want to spend a little
time in Florida or take the family on a trip
every year, you know, so we'll put a goal in
the plan for that. What is that going to cost likely?
You know, how many times do we think we're going
to do that? And then also maybe every few years
they're going to Europe or they're doing a big trip
like that. You get the sky's the limits, you know.
But the key is getting it on paper, figuring out
(11:02):
how much it's going to cost.
Speaker 2 (11:03):
And do we have the resources to do that.
Speaker 3 (11:06):
Yes, some of these big bucket list items simply don't
happen unless you plan for them and schedule them, put
them on the calendar, buy the tickets, because life gets
in the way and life passes us on by.
Speaker 2 (11:18):
Yeah.
Speaker 1 (11:19):
One of the best conversations that I can have with
someone in retirement is, hey, not only can you travel.
Speaker 2 (11:24):
Go ahead and fly first class?
Speaker 1 (11:25):
Like wouldn't those be great words to hear from someone
when you get to that place.
Speaker 2 (11:29):
Here's the all Worth advice. Whether your dreams are.
Speaker 1 (11:31):
Big or small, close to home or far away, your
bucket list is really a chance to kind of fill
the stage of your life with purpose.
Speaker 2 (11:38):
Joy and connection.
Speaker 1 (11:39):
You've got to plan for it, and certainly there's a
financial component to it too. Coming up next, the moves
to make if you need to unwind a heavy stock concentration.
I know there's a lot of you locally who love
one local company.
Speaker 2 (11:53):
We see this all the time. Stay tuned.
Speaker 1 (11:55):
You're listening to Simply Money, presented by all Worth Financial
here on fifty five krsee the talk station. You're listening
to Simply Money presented by all Worth Financial, I Memi
Wagner along with Bob'spondseller. If you miss something on the
show one night, maybe you want to listen to it again,
share it with a friend, or you just had to
miss a show. Well, we've got a daily podcast for you.
(12:16):
Just search Simply Money. It's right there on the iHeart
app or wherever you get your podcasts.
Speaker 2 (12:21):
Coming up next, six.
Speaker 1 (12:22):
Forty three The world of capital gains taxes. If you
do not understand this, you're going to want to because
this could open up an entire world for you as
far as retiring early or being really smart about taking
distributions and retirement.
Speaker 2 (12:37):
So we'll get to that in just a few minutes.
Speaker 1 (12:39):
When it comes to investing, uh, you know, I'll often
hear like, oh, you know, everything looks great for me
right now, my stock is up, and I'll say, oh,
you know stock, you mean you're ETFs. You know, I'm
assuming you're well diversified. No, you know, people will live
and die on and I'm just gonna throw this out
there because I know a lot of you are in
(12:59):
this boat.
Speaker 2 (13:00):
Procter and Gamble stock. I love this company. I mean,
it is a stronk I grew up here.
Speaker 1 (13:05):
When I go to Kroger, I cannot not buy Tide
or Crust because I am a Cincinnati kid who grew
up understanding that Procter and Gamble products are the best.
Speaker 2 (13:17):
Love the company.
Speaker 1 (13:18):
But I see so many of you coming into my
office who have just such a concentrated position in Procter
and Gamble or pick your company.
Speaker 3 (13:29):
Well, I'll pick another company, General Electric. My entire life
was based on General Electric. My father spent over his
entire thirty five year career there. And you know, I think,
on a positive note, I think that's one of the
things that makes Cincinnati such a great place. I mean,
we've got a lot of wonderful people in this town
that are very loyal people, they love where they work.
(13:52):
They're blessed to work with great people. That's all a
good thing. But you know, whether we accumulate all this
stock through stock grants or options, or we buy shares
or what have you. And we live in our little,
for lack of a better word, bubble over thirty years,
and we like to invest in things that we know
(14:12):
and like and we feel that we have control over.
We can end up with a highly concentrated position. And
one of the things we got to remember is things
do and can change with these companies. And I look
back on, you know, if you've got a few spare minutes,
pull up a chart of General Electric stocks sometime. And
(14:34):
it's been quite a ride over the last thirty years.
And things happen, they get you know, GE, for example,
went into different businesses. We think of GE as just
an aircraft engine, you know company, and it's a great one,
probably the best one in the world. But they made
forays into GE finance and GE Energy and all these other.
Speaker 1 (14:57):
Things, and appliance though.
Speaker 3 (15:00):
That didn't work out quite as well. But you've got
this loyal bucket of people in Evendale that all they
know is how wonderful they are designing g you know,
aircraft engines. You just gotta you can't put all your
eggs in one basket.
Speaker 1 (15:18):
Yeah, And you know you're talking about stock options and
things like that. For those of you who are employees
of these companies, what you have to think about is
you are relying on that paycheck, but your current self
is relying on this company to do well. But also
when you are buying, you know a lot of company
stock or a lot of your retirement is focused on
(15:42):
whether that company does well or not. Your future self
is also incredibly.
Speaker 2 (15:46):
Reliant on that.
Speaker 1 (15:47):
And I've seen Amazon come into new sectors and decimate companies.
I have seen Department of Justice investigations into something that
is center stock Home. You never know what can be coming.
And this is not me saying any one company here,
Procter and Gamble or any of them aren't fantastic, well
built companies that have tried to think of everything. But
(16:08):
I've also seen too many times something coming from left
field that has had a huge impact. And you know
you're talking about General Electric. I years ago used to
always speak to groups of ge retirees. They were so
so proud of that stock, and I think of them
all the time now and wonder how they're doing and
are they okay? Because they were so their retirement was
(16:30):
so reliant on that company doing well. And then to
your point, pull up the graph and you've got the
answer to how that story plays out.
Speaker 3 (16:37):
So now that we spend a few minutes talking about
how we can potentially get there, yep, Amy, talk a
little bit about you know, when you have clients come
into your office, they're finding themselves highly concentrated in one position.
What are a few things that you're talking to them about.
Speaker 1 (16:52):
I think the first thing is awareness, right, having the
conversation that we just had about the fact that that
could easily go south.
Speaker 2 (16:59):
And then if they are.
Speaker 1 (17:00):
Open to diversifying, you know, how can we maybe over
time right sell off part of that position and get
them in a more diversified place. I have a client
who has a large position in Amazon. It's done really
great for them, but what if something happens to Amazon?
Speaker 2 (17:17):
You know, part of the conversation with them is going
to be like.
Speaker 1 (17:20):
You know, are we relying on this to create revenue
for us? You know, you can buy options strategies about
you know, if this company tends to go south, as
a way of protection if we are really really tied
to this specific company. So there are options, but I
think the number one thing is first of all, being
aware and secondly asking yourself, what do I then need
(17:41):
the stock to do for me if you are relying
on it.
Speaker 3 (17:46):
Yeah, and with the continual evolution of our industry in
a good way, there are managed strategies in place now,
and I know we talk to our clients about them
all the time, where you can have a managed situation
in place to sell cover calls to buy, puts, to
do some things in the background, so as an individual investor,
(18:07):
you don't have to worry about all the individual trades
on that it's happening for you. But we can set
a tax budget each year, we can set an income
objective each year, and we can gradually work our way
out of that position.
Speaker 1 (18:23):
Yeah, it's going to take time, depending on what kind
of an account it's in. But you know, and we're
kind of throwing out if you work for a company
and you're you know, so loyal to them. But I
also have a good friend who her mom inherited stock
from grandma and she just loved that company so much
and even said before she passed away. Don't ever sell
this particular stock. So many times it's an emotional connection
(18:47):
that as advisors we have to help you unravel and
say nothing against grandma, but this in the future may
not be in your best interest.
Speaker 3 (18:56):
Yeah. I've got a few clients like that, where you
know Grandma or Uncle Bill or whatever said, don't under.
Speaker 2 (19:02):
Any circum company.
Speaker 3 (19:03):
Yeah. Yeah. And there's another word of advice. Don't ever
tell your kids that please. Yes. Yeah, you're putting an
emotional you know, and possibly an economic burden on them
that you know that's not fair to saddle them with.
Speaker 1 (19:16):
Here's the all Worth advice managing stock concentration. It's really
not about making drastic changes overnight. It's finding balance, reducing
your risk, and ensuring that your financial plan works for
you no matter what happens in the market or with
one particular company coming up next. One of the simplest
things you can do to make your home more appealing
to a buyer, you can do it right now.
Speaker 2 (19:39):
And it's not really that expensive.
Speaker 1 (19:41):
You're listening to Simply Money presented by all Worth Financial
here in fifty five KRC.
Speaker 2 (19:45):
The talk station.
Speaker 1 (19:51):
You're listening to Simply Money you're presented by all Worth Financial,
I me mean Wagner.
Speaker 2 (19:55):
Okay. For those of you who.
Speaker 1 (19:57):
Are in the market for buying a home, or maybe
you're just want to update the one you're in, what
are the trendy colors?
Speaker 2 (20:04):
What are the new wave things that are.
Speaker 1 (20:06):
Coming around the corner. I don't have that answer. I
am not so cool and trendy. But I know who does.
A real estate expert Michelle Sloane. Of course you're canna
hear her great advice right here in fifty five cars
every Sunday afternoon on her show, Sloan sells homes. She
is also owner of Remax Time, and she has her
finger on the pulse of all trends when it comes
to real estate.
Speaker 2 (20:26):
Michelle, you know you're a friend of mine.
Speaker 1 (20:28):
I went all in on gray several years ago, which
is three years ago when I bought my house.
Speaker 5 (20:32):
Absolutely, I think a lot of people did.
Speaker 2 (20:36):
Is Grace still the biggest thing ever? You can tell
me the truth.
Speaker 5 (20:39):
It's really it's not. But it's still neutral enough. And
a lot of the grays in new construction, and when
you're building a home, the choices are limited for a
reason because most home builders are not going to give
you choices that are going to be so far to
(21:00):
the left or right of the world. Yeah, that it's
going to take you too far off trend. The nice
thing is trends are fun to look at. So the
color trends for twenty twenty five are coming out and
you're going to see it the Sherwan Williams and all
of the different types that the different companies that come
(21:20):
out with all of their the color of the Year, well,
Sherman Williams came up with a color of the Year
that was like nine colors or something because it's the
anniversary of calling a color of the year. Oh boy,
So you know what, but we're seeing some really deep blues.
Chocolate brown is really hot, these darker violet colors again,
(21:44):
a hammered black in the When we saw Homerama this year,
we saw so much black. I mean black walls, black ceilings,
black trim. That's extremely trendy. That can be very dark
and for voting unless the rest of the house is
nice and light and white. So I always take the
(22:07):
trendy colors of the year with a grain of salt.
And if you're planning and you let's say you love
that violet color that's out right now, Only do that
on an accent wall or use it in a way
that you know in a year or two, because those colors,
you will get tired of them, and you'll get tired
(22:29):
of them pretty quickly because they're so vibrant or they're
so deep and they're so dark. So, you know, my
advice is always, if you're planning to sell within the
next couple of years, stay neutral. Paint is the most
inexpensive thing that you can do to update your home,
make it look fresh, make it look like new. And
(22:52):
when you go to paint and you pick a color
like and this is my go to color because everybody
wants me to tell them agreeable gray, huh, And it
says gray, but it has little tones. It's a really
warm gray. Agreeable gray from Sherwin Williams is like that
go to color that I've been recommending for gosh, almost
(23:13):
twenty years. And that's in the business because that particular
color is that neutral that seems to go with all
of the woodwork that we've had trending over the course
of the last twenty years. You know, there are other
colors on that palette that are in the same vein,
just really nice and neutral. And there's also some beige colors.
(23:36):
Warmer tones are definitely in. And even when you picked
your gray tone, I'll bet I don't think I've seen it,
but I'll bet you it's a warm gray.
Speaker 2 (23:46):
Yes it is.
Speaker 1 (23:48):
And I also like the point that you're making about
these colors and the fact that, Okay.
Speaker 2 (23:52):
You go all in, right, Oh, I'm you know, I'm.
Speaker 1 (23:54):
Building a house now and we're buying a new house,
and we're going to repaint all the things, and we're
going for deep blue, we're going for chocolate brown, we're
going for violet. We're going all in on these trends.
And then in four or five years you sell your
house and people walk in and they're like, oh, okay, hello.
Speaker 2 (24:08):
Twenty twenty four. You know, it immediately dates your house.
Speaker 1 (24:13):
So I think you can go kind of in on
these trends and buy like violet pillows for your couch,
not necessarily love that paint everything.
Speaker 5 (24:23):
Yeah, because you know, buying pillows, you use them for
a year or two and then they pretty much if
you've slabbered all over them or your dog is slapped
my job.
Speaker 2 (24:32):
Yep, same, yep.
Speaker 3 (24:34):
You can.
Speaker 5 (24:35):
You can pitch them or wash, throw them in the laundry,
and then you know they're either fresh and clean or
they're not, and you can move on with life. And
then you don't have all of the expense and you
turn your house into a bit of chaos when you paint,
because you have to take everything off the walls, patch
and paint if you have. And again it's a process,
(24:56):
but it is the most It really is the least
expensive and the best way for you to freshen up
your home. And I will always say, if you are
starting to paint, and let's just say the first floor
of your home, kitchen, dining room, family room, living room,
(25:16):
just pick one color and stick with it the entire
first floor of your home so that you don't have
any awkward transitions, you know, the days of red in
the dining room.
Speaker 2 (25:30):
I still want to the homes.
Speaker 5 (25:32):
Yeah, I still walk into homes and see the red
dining room and it makes me cringe a little bit.
I see grapes on the wall, or maybe some border
in the kitchens. Then you remember the border along the
top of the wall.
Speaker 1 (25:50):
It's either grapes or like the leaves right, like always,
which kind of leads me to my next question, which is,
you know for those people who are like.
Speaker 2 (25:59):
Well, I'm not going to repaint my house.
Speaker 1 (26:01):
I'm sure you've had clients through the years and you
were like, but this color everyone hates, Like, it's not
an option if you're going to put what are the
most hated colors when it comes to real estate?
Speaker 5 (26:12):
Well, I will say red is one of them number one,
because there's it's so difficult to come paint over.
Speaker 2 (26:20):
Yeah.
Speaker 5 (26:20):
Yeah, it's going to take two or three coats, or
you're going to have to do a primer on it
and then painted a couple of coats. It's going to
cost you if you hire someone to do that, it's
going to cost you several thousand dollars. And you're like, ah,
that's but it will make a difference if you get
rid of it before it comes time to sell. The
other colors that I make me cringe just a little
(26:42):
bit are the yellows that look a little bit like
big Bird. There's been some gold and some yellows over
the years that don't weather or have that staying power.
And you know, I always tell the story this has
probably been ten or fifteen years ago. I walked into
somebody's house and it looked like a fun house. Every
(27:04):
single wall they had a two story great room, every
single wall was a different primary color.
Speaker 2 (27:11):
Oh, it looked like a cram box. Huh.
Speaker 5 (27:13):
Oh my gosh. And then you know, up in the
bedrooms they were all they were different colors. And I
walk in and my eyes spot popped out of my
head and I said, oh, you like color, do you
You know? I didn't end up getting that listing, But
here's the thing. It did end up taking them a
heck of a lot longer to sell that property.
Speaker 3 (27:34):
It is a beautiful home.
Speaker 5 (27:36):
But when I suggested you need to repaint this whole
house and they said, no, I'm not going to do it,
I'm like, okay, well, you know that's your decision, but
you have to. I don't, and I don't like to
say I told you so, but it was a lot.
So when I try to tactfully tell people you know,
it will help you in the long run because paint colors,
(28:00):
if they are the wrong ones, they can decrease the
value of your home because the buyer is going to
look at it and say, I can't live with that.
I can't live with that. Color, and so best case
scenario is neutralized, neutralized, neutralized. If you're planning to sell. Now,
some people are like, but I do love my color.
(28:21):
I love this purple violet color.
Speaker 2 (28:24):
You do, Yeah, right, but maybe someone else loans.
Speaker 5 (28:27):
Yeah, yeah, absolutely right, you do, but not everybody may.
And then they realize, Okay, well, then I'm going to
have to spend five or six thousand dollars to hire
somebody to do this. And you always make less on
the sale of your home if you don't do it
before you put it on the market.
Speaker 1 (28:44):
Yeah, and I'm sure if it's between your house full
of Crayola colors and another house that's neutral, by the
neutral house is going to win every time. Great perspective,
as always from Michelle Sloane, a real estate expert. You're
listening to Simply Money, presented by all Worth Financial here
on fifty five KRZ, the talk station.
Speaker 2 (29:05):
You're listening to Simply Money.
Speaker 1 (29:06):
If you do by all Worth Financial, I mean you
Wagner along with Bob Spon's I already have a financial
question you.
Speaker 2 (29:10):
Need a little help with. There's a red button you
can click them while you're listening to the show. It's
right there.
Speaker 1 (29:15):
On the iHeart app record your question, it's coming straight
to us and straight ahead.
Speaker 2 (29:20):
Speaking of a bucket.
Speaker 1 (29:21):
List, how can you travel the world without maybe sacrificing
your financial situation. We'll get into that in a few minutes.
Have you ever made a profit from selling something big
house stocks? Maybe for those of you who've gone into crypto,
it's cryptocurrency.
Speaker 2 (29:37):
Hopefully you did time that right.
Speaker 1 (29:40):
But uncle Sam, what you have to keep in mind
is every time you have one of those big sales
with big proceeds, uncle Sam is going to want his
piece of that pie.
Speaker 3 (29:49):
Yeah. People complain to me all the time about having
to pay taxes, and I kindly remind them, you know,
you only pay taxes when you make money, So let's
not complain too much. But let's walk through a li
primer here on some of the things that people need
to be aware of. So the first thing, short term
capital gains. Anything that you derive a profit from that's
(30:09):
been held one year or a year or less is
going to be taxed at ordinary income rates. Yeah, you know,
which is tax the same thing as your paycheck. Long
term capital gains, on the other hand, are assets held
for more than one year, and those are taxed sometimes
much lower and much more favorable rates than ordinary income taxes,
(30:31):
anywhere from twenty percent, fifteen percent, sometimes even zero percent
based on what your overall taxable.
Speaker 1 (30:39):
Income is, and that can be a great thing to
take advantage of. You know, we talk about diversification in
your investments, but I would say you also have to
be diversified in the account the kind of accounts that
you're saving in. I will come across people pretty often
who have significant money saved, but they're all in iras
or for one k's, you know, So if that's all
(31:01):
kind of tax deferred, first of all, you're going to
pay taxes on every dollar you're pulling from those accounts
at your ordinary income rate.
Speaker 2 (31:08):
But second of.
Speaker 1 (31:09):
All, I just hit a couple this week that were
in my office thirty three years old, and they are
on a fantastic track, and I said, listen, I don't
want to put words into your mouth or goals, but
you guys.
Speaker 2 (31:21):
Could potentially retire early. Here's the problem with that.
Speaker 1 (31:23):
All the accounts you're saving in you can't access until
you're fifty nine and a half unless you're going to
pay a ten percent penalty if.
Speaker 2 (31:31):
Retiring early is anywhere on the radar or a goal
of yours.
Speaker 1 (31:36):
Let's get some money into a joint taxable account and
you know, kind of talking through the tax advantages of
Once you hold those positions within that account for a year,
you're going to be taxed at a lower rate. And
this can be a great option for a lot of
people when they get to retirement. When you look at
you know, if I've come across someone who's got a
(31:56):
taxable account in traditional dollars and then roth dollar, these
are the first dollars that we tap, and they can
be incredibly tax efficient, especially if you've been harvesting losses
in that accounts.
Speaker 2 (32:09):
You can be incredibly tax efficient with these.
Speaker 3 (32:11):
Yeah, and you bring up all whole what I'll call
Hornet's nest of activity here. That is one of the
merits of doing good tax planning. And we talk about
this all the time. There's a tremendous difference between tax
preparation and tax planning, and unfortunately, I think about eighty
five percent of the people out there only do tax
(32:31):
preparation and don't talk about tax planning. And this is
where you can effectively diversify your income sources. When you
retire and then diversify the sources from which that income
comes from, and you can layer on income from Social
Security IRA accounts, non IRA accounts, raw iras and craft
(32:52):
and income strategy that gets you the income you need
in the most tax efficient way possible. So good for you,
Amy for asking that thirty year old client, you know,
twenty some years ahead of time, when do you want
to retire? And I mean that seriously, because now the
conversation has begun and you might have, you know, made
a huge difference in their life by giving them an
(33:15):
opportunity in a twenty year runway to prepare for when
they want to retire.
Speaker 1 (33:19):
When I get clients around that age, and I'm sure
I'm giddy because there's so much that we can do
to help them and to you know, craft their financial
situation in a way that gives them all kinds of
opportunities when they get older and all kinds of flexibility.
On the flip side, I've had far too many come
in who want to retire in six months, you know,
(33:41):
and they don't They haven't maybe planned well or everything's
in that flour one k and they didn't understand how
that might impact them in retirement. There's not a lot
of time to unravel those things. So you know, planning
for these things in advance and understanding these different kinds
of accounts.
Speaker 2 (33:56):
Right, and how capital gains works.
Speaker 1 (33:59):
You know, many times it's we just bought that position
less than a year ago. Let's not let's not sell
that right because you're gonna have to pay ordinary income.
Speaker 2 (34:06):
Let's let's wait six months.
Speaker 1 (34:07):
Let's pull from something else, maybe your emergency fund for now.
Then we can wait until we're paying lesson taxes on it.
Speaker 2 (34:15):
We can replenish that emergency fund.
Speaker 1 (34:16):
So there's a whole strategy involved. But you have to
understand how these things work.
Speaker 3 (34:21):
Yeah, just switching gears and giving a couple other pieces
of you know, practical advice here. Some people might want
to downsize their home or move to another part of
the country. You know, your husband wants to move where
he can catch his own dinner. You know, things like that. Well,
when it comes time to sell that house, we got
to look at the capital gains exposure there. The first
(34:42):
thing that a lot of people don't keep track of
is what what is the actual cost basis in your home?
You know, so if you've made it matter Yeah, they
upgrades matter. It's important to keep those receipts on the
major renovations and things that you do, because that can
lower your cost you know, raise your bass, lower your
tax exposure. Just as a reminder, here, if you've lived
(35:04):
in your home as your primary residence for at least
two of the last five years, you can exclude up
to two hundred and fifty thousand dollars of gains as
a single taxpayer, and up to five hundred thousand dollars
of capital gains if you are married filing jointly.
Speaker 1 (35:19):
Here's the all Worth advice listening capital gains taxes. They
don't have to be scary or confusing. You need to
understand the rules and plan your investments strategically, and then
keep more of your gains where they belong.
Speaker 2 (35:29):
Which is with you, not necessarily with Uncle Sam.
Speaker 1 (35:32):
Coming up next, how to travel smart without sacrificing your
retirement goals. You're listening to Simply Money presented by all
Worth Financial here in fifty five KRC the talk station.
You're listening to Simply Money presented by all Worth Financial.
I mean Wagner along with Bob's Bondseller talking.
Speaker 2 (35:51):
About bucket lists for retirement. You know, what are those
dream goals that you've always had.
Speaker 1 (35:55):
Many times I work with people and that's about traveling.
Speaker 2 (35:59):
But I know some of these major trips also can
come with major price tags.
Speaker 3 (36:03):
Yeah, and that's why you have to build that into
your financial plan. And I'll share a quick story. This
is actually a that has a pleasant ending, you know,
and it's a meeting when I had I had with
a client yesterday. And these folks are in their late seventies,
early eighties. They've saved well, they've been retired for years.
They come in, you know, diligently and update their financial
(36:25):
plan every year. And these are very reserved, conservative people,
very careful with their money. And you know, I usually
for people in their eighties, I the first question I
always ask them is how's your health? How are you doing?
And their faces light up. They talked about the crews
that they the ocean crews that they took last year.
They had a great time. They're both healthy. And the wife,
(36:49):
who you know, very stoic, dignified lady. She said, because
I reviewed the goals with them, and we always you know,
at least for the plans I build, we talk about
the essential expenses, travel budget and healthcare. The healthcare and
the extent essential expenses are things that you know we
got to have, that must there must, and then the
(37:10):
travel is the icing on the cake. We were able
to review their plan show them that they're in great shape.
And she says, Bob, can we look at what it
looks like to increase our travel budget from fifteen thousand
dollars a year to twenty thousand dollars a year? And
I said absolutely, and we modeled it out. The needle
didn't move at all. They're great and they're like, we're
(37:32):
going to book it. We're going to book two cruises
this year for that. And what a great meeting to have.
You know, you're healthy, you saved well, you did the planning,
and you're able to enjoy the latter years of your life.
It was one of the more pleasurable meetings I've had
in a long time.
Speaker 1 (37:48):
But you're talking about building travel into the budget and
making sure that it works.
Speaker 2 (37:52):
That's a key component of this.
Speaker 1 (37:53):
You know from some people that's maybe you even set
up a different account right and kind of watch those
dollars separately, or at least make sure that you're invisor
has earmarked those dollars so that you know they're there
for the plan. But listen, once you're retired, you have
the flexibility to travel whenever you want, and you can
save you know, shoulder season in Europe, you know whatever. Uh,
(38:14):
maybe you're not going, you know, in the hottest season
or the peak travel season. But now you've got the
flexibility not to have to deal with kids spring break
or summer vacation, you know, or.
Speaker 3 (38:24):
Travel basketball or travel baseball as amen, those are our
vacations which report early vacations for years. Right.
Speaker 1 (38:32):
Yeah, and listen, I'll tell you my dad is great
about this. Ask about senior discounts. He doesn't go anywhere where.
He's not asking about that, even my son's basketball games.
To that point, you know, plan with miles and points.
There are ways that you can do these major trips
and really enjoy them in retirement and also not break
your budget.
Speaker 2 (38:49):
Thanks for listening.
Speaker 1 (38:50):
You've been listening to Simply Money, presented by all Worth
Financial here in fifty five KRC, the talk station
Tonight creating a bucket list for your retirement. Are you
guilty of maybe having too much stock in one company?
Let's talk about what you can do about that. And
from a tax planning standpoint, what can you do about
capital gains taxes?
Speaker 2 (00:24):
You're listening to simply.
Speaker 1 (00:25):
Money presented by all Worth Financial, I mean me Wagner
along with bob' spondseller. You know, Bob, you and I
have worked with so so many people who have made
that transition into retirement, and oftentimes the conversation centers around
the financial aspects of this, but.
Speaker 2 (00:39):
There is so much more.
Speaker 1 (00:42):
And for those of you who are not knocking on
retirement's doorstep, or aren't already tired, are retired, stick with
us here because I think some of this will be
really helpful for you.
Speaker 2 (00:54):
We're talking about a bucket list.
Speaker 1 (00:56):
And how that might help you get focused on retirement exactly.
Speaker 3 (01:01):
And this I don't know about you, Amy, but this
is one of the most fun parts of what I
get to do, and I've done for years because I've
helped dozens and dozens of people actually retire at this
point in my career, and you know, this comes down
to there's a big difference in just retirement planning versus
life planning, legacy planning meaning planning, and it's a great
(01:25):
topic that we're going to cover today. Yeah.
Speaker 1 (01:27):
So my husband and I, one of the things we
talk about all the time is what retirement looks like
for us, and we have this really well, we did
have this really concrete picture in mind of we wanted
to move south and be on water, and then my
husband always said, I want to walk through my backyard,
(01:48):
get on the boat and catch dinner. I want to
be able to fish every day, right, And that was
all well and good until all these hurricanes started it in.
Speaker 4 (01:56):
And I'm laughing Amy because I thought that I've done that,
and I moved back to Cincinnati for reasons I won't
go into right now. But it's just funny, you know
what we think we're gonna do when we're in our thirties. Yeah,
life has a funny way of taking different twists and turns,
and it's all good.
Speaker 1 (02:15):
Yeah, yeah, but I think you know, you start with
what's the picture.
Speaker 2 (02:20):
What is the thing that gets us both.
Speaker 1 (02:22):
Excited about retirement. If we're a couple, if you're a
single person, what's the thing that you hold out there
for yourself is like, when I get to retirement, this
is the thing. Dream big, think big, brainstorm, and then
you can get into the nitty gritty details of how
do you get from where.
Speaker 2 (02:37):
You are right now to where you want to go.
Speaker 1 (02:39):
But I to your point, this is one of the
most fun parts of our job is then saying, Okay,
we've got the money, what are we going to do?
Speaker 3 (02:48):
Yeah? To me, there's a couple of important steps to this.
Number one, you know, we first have to get ourselves
into a place where we actually can retire. Yeah, meaning
that we have enough in come sources and investment assets
to actually be able to replace our paycheck so we
don't have to work anymore. I mean that's step one.
(03:10):
After you get into a comfortable place where that can happen,
that's where all the dreams and fun stuff happens. But
to your point, I think, I think start big. Look
at the big picture as you approach this, and what
are the big bucket list items where if my life
ended six months from now, six years from now, or
(03:33):
twenty six years from now, what are the things that
I really need to do and want to do to
put my head on the pillow and know that I
lived a good life, and I think it's important to
sit down and write those things down, and just as
important if you're married, have that same conversation with your spouse,
(03:53):
because what I find is some spouses are willing to
talk about this stuff openly and are excited about it.
Others aren't. But I could tell you from experience with
clients and personal experience, if if this is not an
ongoing conversation where both spouses are participating, there might be
there might be surprises down the road, and they might
(04:15):
not be good surprises.
Speaker 1 (04:17):
Well, I'll tell you one other great reason why it
makes sense for you to kind of get on the
same page for this picture that you have of your
future or your major money goals or your goals and
retirement is I often find that couples aren't necessarily always
on the same page financially. For instance, sometimes you'll have
a saver and a spender and in their button heads
(04:39):
all the time over you know she did that, or
he wanted to do this, or you know they're not
on the same page. If you can get together with
the same goal, then you're not fighting each other. You're
simply saying that that money that you want to spend
that thing that you want to do. Is it going
to get us closer to this thing that we want
to do together.
Speaker 2 (04:58):
Or farther away.
Speaker 1 (04:59):
So can be a great tool for just kind of
getting two people on the same page financially exactly.
Speaker 3 (05:06):
And what I find amy with a lot of the
clients I deal with is it it's not necessarily that
one spouse is the spender and the other is the savor.
It's one spouse takes a more active role in the
actual financial planning and budgeting and the other spouse doesn't. It
doesn't mean one's better or the other. They're just different.
(05:26):
Different spouses play different roles oftentimes in the marriage and
in the you know, raising of kids and everything else.
And that's that's you know, why God created the institution
of marriage. That's a good thing. Yeah, But I think
I think that's another good reason to sit down with
an advisor who has the time and has the interest
(05:47):
to actually not force, but at least encourage some of
these discussions, because you do need to talk about it
to your point so you can get on the same page.
And you know, we always talk to people. You know,
you definitely need to be having these conversations within about
five years of when you're going to actually pull the trigger,
(06:07):
not six months. Yeah, before retirement.
Speaker 1 (06:10):
You're listening to Simply Money, presented by all Worth Financial
Imami Wagner along with Bob Spawnseller. Have you thought about
what your retirement looks like? If you talk to your spouse,
have you've gotten on the same page. Does it look
like moving south? Maybe buy out? That's what mine always
look like. You know, We've got friends who both work remotely,
(06:30):
and so they are living in DestinE for January and February.
You know, sometimes it's not just a destination. Sometimes it's
what do I love to do? Is it spending time
with the grandkids? Is it volunteering for an organization that's
near and dear to your heart? Like all of those
things could be part of this bucket list for you.
What do you want to spend time on? And maybe
(06:51):
for years now it's been like I want to do
this thing, or I love doing this, or I'm.
Speaker 2 (06:55):
Passionate about this, but work is so crazy.
Speaker 1 (06:58):
Well, once you get to take work off of the table,
you have then the ability to focus on these things,
and I think it makes sense to plan.
Speaker 2 (07:05):
For them before you make the transition into retirement.
Speaker 3 (07:09):
Yeah, and as I think back over my career and again,
I you know, I've been doing this for over almost
thirty four years now, so a lot of the first
clients I worked with, you know, back in the seventies
and eighties, I think it was a badge of honor
and almost a status symbol to be able to go
to somebody and say, well, I can retire at fifty five,
(07:31):
I can retire at fifty eight. I'm finding more and
more nowadays, you know, just because you can retire a
lot of these people aren't happy because some of them
aren't happy because they didn't think about what they were
actually going to do when they stopped working. Yeah. And
I've been blessed to have a couple of good friends
(07:52):
that I can confide in who are a little bit
older than me.
Speaker 2 (07:55):
That's great, and have traveled downroads.
Speaker 3 (07:58):
I haven't tried. And I'm thinking one great piece of
advice that I got from one of my best friends,
he said, Bob, you're rapidly moving from a life of
achievement to a life period of influence and legacy, and
you need to think and plan accordingly. And that's been
(08:19):
great advice and advice that I've embraced and I'm trying
to implement.
Speaker 1 (08:23):
That's a good friend, that's great advice. And I do
think many people, because maybe feel like you're on this
hamster wheel when you're working, don't think about what does
it look like after I'm gone and listen. I also
have known many, many people too whose sense of self
worth really comes from their job, and they feel very
lost right when they get to retirement because there's no meetings,
(08:44):
there's no you know, presentations that they're giving, there's no
people that are deferring to them anymore.
Speaker 2 (08:50):
That schedule's gone.
Speaker 1 (08:52):
And that can be really tough, which is why looking
at what's your bucket list in advance can then help
you kind of redirect that energy and that focus on
something else that's not about necessarily the working and achieving,
but what's something else that's going to fill me up
in retirement.
Speaker 3 (09:09):
Well, and as you talk about that, Amy, I'm thinking
of one client in particular that I've worked with for
over thirty years, and this guy was a high level
executive department manager kind of guy made a ton of money,
heavy influence that he needed something to do. And I'll
state this as a universal truth. I think every human
(09:31):
being wants to be important to someone else, wants to
make a difference in someone's life. He is finding incredible
meaning now in just going and reading books to special
needs children. Oh yeah, Now, twenty years ago that would
have never been on his radar screen because that didn't
(09:53):
involve making money, rising the corporate ladder, you know, getting
stock options all that. But he's finding incredible meaning and
purpose from that today and if he wasn't doing that,
that'd be a major hole in his life.
Speaker 2 (10:06):
Yeah, you know you mentioned earlier.
Speaker 1 (10:08):
Once you kind of get this bucket list or whatever,
obviously you have to start with the plan and are
we going to have money to fund that? You know,
once you've sort of built this wealth, whether you've done
the bucket list first and then built the wealth accordingly,
or you've built the wealth and then you start thinking
about it, you know, you've got to have that financial
plan that says can we do this and what does
it look like. One of the things that I love
(10:31):
to do with clients who really like to travel and
have waited and kind of put off these trips of
a lifetime.
Speaker 2 (10:36):
I'll do multiple travel goals and.
Speaker 1 (10:38):
Their plan of maybe they want to spend a little
time in Florida or take the family on a trip
every year, you know, so we'll put a goal in
the plan for that. What is that going to cost likely?
You know, how many times do we think we're going
to do that? And then also maybe every few years
they're going to Europe or they're doing a big trip
like that. You get the sky's the limits, you know.
But the key is getting it on paper, figuring out
(11:02):
how much it's going to cost.
Speaker 2 (11:03):
And do we have the resources to do that.
Speaker 3 (11:06):
Yes, some of these big bucket list items simply don't
happen unless you plan for them and schedule them, put
them on the calendar, buy the tickets, because life gets
in the way and life passes us on by.
Speaker 2 (11:18):
Yeah.
Speaker 1 (11:19):
One of the best conversations that I can have with
someone in retirement is, hey, not only can you travel.
Speaker 2 (11:24):
Go ahead and fly first class?
Speaker 1 (11:25):
Like wouldn't those be great words to hear from someone
when you get to that place.
Speaker 2 (11:29):
Here's the all Worth advice. Whether your dreams are.
Speaker 1 (11:31):
Big or small, close to home or far away, your
bucket list is really a chance to kind of fill
the stage of your life with purpose.
Speaker 2 (11:38):
Joy and connection.
Speaker 1 (11:39):
You've got to plan for it, and certainly there's a
financial component to it too. Coming up next, the moves
to make if you need to unwind a heavy stock concentration.
I know there's a lot of you locally who love
one local company.
Speaker 2 (11:53):
We see this all the time. Stay tuned.
Speaker 1 (11:55):
You're listening to Simply Money, presented by all Worth Financial
here on fifty five krsee the talk station. You're listening
to Simply Money presented by all Worth Financial, I Memi
Wagner along with Bob'spondseller. If you miss something on the
show one night, maybe you want to listen to it again,
share it with a friend, or you just had to
miss a show. Well, we've got a daily podcast for you.
(12:16):
Just search Simply Money. It's right there on the iHeart
app or wherever you get your podcasts.
Speaker 2 (12:21):
Coming up next, six.
Speaker 1 (12:22):
Forty three The world of capital gains taxes. If you
do not understand this, you're going to want to because
this could open up an entire world for you as
far as retiring early or being really smart about taking
distributions and retirement.
Speaker 2 (12:37):
So we'll get to that in just a few minutes.
Speaker 1 (12:39):
When it comes to investing, uh, you know, I'll often
hear like, oh, you know, everything looks great for me
right now, my stock is up, and I'll say, oh,
you know stock, you mean you're ETFs. You know, I'm
assuming you're well diversified. No, you know, people will live
and die on and I'm just gonna throw this out
there because I know a lot of you are in
(12:59):
this boat.
Speaker 2 (13:00):
Procter and Gamble stock. I love this company. I mean,
it is a stronk I grew up here.
Speaker 1 (13:05):
When I go to Kroger, I cannot not buy Tide
or Crust because I am a Cincinnati kid who grew
up understanding that Procter and Gamble products are the best.
Speaker 2 (13:17):
Love the company.
Speaker 1 (13:18):
But I see so many of you coming into my
office who have just such a concentrated position in Procter
and Gamble or pick your company.
Speaker 3 (13:29):
Well, I'll pick another company, General Electric. My entire life
was based on General Electric. My father spent over his
entire thirty five year career there. And you know, I think,
on a positive note, I think that's one of the
things that makes Cincinnati such a great place. I mean,
we've got a lot of wonderful people in this town
that are very loyal people, they love where they work.
(13:52):
They're blessed to work with great people. That's all a
good thing. But you know, whether we accumulate all this
stock through stock grants or options, or we buy shares
or what have you. And we live in our little,
for lack of a better word, bubble over thirty years,
and we like to invest in things that we know
(14:12):
and like and we feel that we have control over.
We can end up with a highly concentrated position. And
one of the things we got to remember is things
do and can change with these companies. And I look
back on, you know, if you've got a few spare minutes,
pull up a chart of General Electric stocks sometime. And
(14:34):
it's been quite a ride over the last thirty years.
And things happen, they get you know, GE, for example,
went into different businesses. We think of GE as just
an aircraft engine, you know company, and it's a great one,
probably the best one in the world. But they made
forays into GE finance and GE Energy and all these other.
Speaker 1 (14:57):
Things, and appliance though.
Speaker 3 (15:00):
That didn't work out quite as well. But you've got
this loyal bucket of people in Evendale that all they
know is how wonderful they are designing g you know,
aircraft engines. You just gotta you can't put all your
eggs in one basket.
Speaker 1 (15:18):
Yeah, And you know you're talking about stock options and
things like that. For those of you who are employees
of these companies, what you have to think about is
you are relying on that paycheck, but your current self
is relying on this company to do well. But also
when you are buying, you know a lot of company
stock or a lot of your retirement is focused on
(15:42):
whether that company does well or not. Your future self
is also incredibly.
Speaker 2 (15:46):
Reliant on that.
Speaker 1 (15:47):
And I've seen Amazon come into new sectors and decimate companies.
I have seen Department of Justice investigations into something that
is center stock Home. You never know what can be coming.
And this is not me saying any one company here,
Procter and Gamble or any of them aren't fantastic, well
built companies that have tried to think of everything. But
(16:08):
I've also seen too many times something coming from left
field that has had a huge impact. And you know
you're talking about General Electric. I years ago used to
always speak to groups of ge retirees. They were so
so proud of that stock, and I think of them
all the time now and wonder how they're doing and
are they okay? Because they were so their retirement was
(16:30):
so reliant on that company doing well. And then to
your point, pull up the graph and you've got the
answer to how that story plays out.
Speaker 3 (16:37):
So now that we spend a few minutes talking about
how we can potentially get there, yep, Amy, talk a
little bit about you know, when you have clients come
into your office, they're finding themselves highly concentrated in one position.
What are a few things that you're talking to them about.
Speaker 1 (16:52):
I think the first thing is awareness, right, having the
conversation that we just had about the fact that that
could easily go south.
Speaker 2 (16:59):
And then if they are.
Speaker 1 (17:00):
Open to diversifying, you know, how can we maybe over
time right sell off part of that position and get
them in a more diversified place. I have a client
who has a large position in Amazon. It's done really
great for them, but what if something happens to Amazon?
Speaker 2 (17:17):
You know, part of the conversation with them is going
to be like.
Speaker 1 (17:20):
You know, are we relying on this to create revenue
for us? You know, you can buy options strategies about
you know, if this company tends to go south, as
a way of protection if we are really really tied
to this specific company. So there are options, but I
think the number one thing is first of all, being
aware and secondly asking yourself, what do I then need
(17:41):
the stock to do for me if you are relying
on it.
Speaker 3 (17:46):
Yeah, and with the continual evolution of our industry in
a good way, there are managed strategies in place now,
and I know we talk to our clients about them
all the time, where you can have a managed situation
in place to sell cover calls to buy, puts, to
do some things in the background, so as an individual investor,
(18:07):
you don't have to worry about all the individual trades
on that it's happening for you. But we can set
a tax budget each year, we can set an income
objective each year, and we can gradually work our way
out of that position.
Speaker 1 (18:23):
Yeah, it's going to take time, depending on what kind
of an account it's in. But you know, and we're
kind of throwing out if you work for a company
and you're you know, so loyal to them. But I
also have a good friend who her mom inherited stock
from grandma and she just loved that company so much
and even said before she passed away. Don't ever sell
this particular stock. So many times it's an emotional connection
(18:47):
that as advisors we have to help you unravel and
say nothing against grandma, but this in the future may
not be in your best interest.
Speaker 3 (18:56):
Yeah. I've got a few clients like that, where you
know Grandma or Uncle Bill or whatever said, don't under.
Speaker 2 (19:02):
Any circum company.
Speaker 3 (19:03):
Yeah. Yeah. And there's another word of advice. Don't ever
tell your kids that please. Yes. Yeah, you're putting an
emotional you know, and possibly an economic burden on them
that you know that's not fair to saddle them with.
Speaker 1 (19:16):
Here's the all Worth advice managing stock concentration. It's really
not about making drastic changes overnight. It's finding balance, reducing
your risk, and ensuring that your financial plan works for
you no matter what happens in the market or with
one particular company coming up next. One of the simplest
things you can do to make your home more appealing
to a buyer, you can do it right now.
Speaker 2 (19:39):
And it's not really that expensive.
Speaker 1 (19:41):
You're listening to Simply Money presented by all Worth Financial
here in fifty five KRC.
Speaker 2 (19:45):
The talk station.
Speaker 1 (19:51):
You're listening to Simply Money you're presented by all Worth Financial,
I me mean Wagner.
Speaker 2 (19:55):
Okay. For those of you who.
Speaker 1 (19:57):
Are in the market for buying a home, or maybe
you're just want to update the one you're in, what
are the trendy colors?
Speaker 2 (20:04):
What are the new wave things that are.
Speaker 1 (20:06):
Coming around the corner. I don't have that answer. I
am not so cool and trendy. But I know who does.
A real estate expert Michelle Sloane. Of course you're canna
hear her great advice right here in fifty five cars
every Sunday afternoon on her show, Sloan sells homes. She
is also owner of Remax Time, and she has her
finger on the pulse of all trends when it comes
to real estate.
Speaker 2 (20:26):
Michelle, you know you're a friend of mine.
Speaker 1 (20:28):
I went all in on gray several years ago, which
is three years ago when I bought my house.
Speaker 5 (20:32):
Absolutely, I think a lot of people did.
Speaker 2 (20:36):
Is Grace still the biggest thing ever? You can tell
me the truth.
Speaker 5 (20:39):
It's really it's not. But it's still neutral enough. And
a lot of the grays in new construction, and when
you're building a home, the choices are limited for a
reason because most home builders are not going to give
you choices that are going to be so far to
(21:00):
the left or right of the world. Yeah, that it's
going to take you too far off trend. The nice
thing is trends are fun to look at. So the
color trends for twenty twenty five are coming out and
you're going to see it the Sherwan Williams and all
of the different types that the different companies that come
(21:20):
out with all of their the color of the Year, well,
Sherman Williams came up with a color of the Year
that was like nine colors or something because it's the
anniversary of calling a color of the year. Oh boy,
So you know what, but we're seeing some really deep blues.
Chocolate brown is really hot, these darker violet colors again,
(21:44):
a hammered black in the When we saw Homerama this year,
we saw so much black. I mean black walls, black ceilings,
black trim. That's extremely trendy. That can be very dark
and for voting unless the rest of the house is
nice and light and white. So I always take the
(22:07):
trendy colors of the year with a grain of salt.
And if you're planning and you let's say you love
that violet color that's out right now, Only do that
on an accent wall or use it in a way
that you know in a year or two, because those colors,
you will get tired of them, and you'll get tired
(22:29):
of them pretty quickly because they're so vibrant or they're
so deep and they're so dark. So, you know, my
advice is always, if you're planning to sell within the
next couple of years, stay neutral. Paint is the most
inexpensive thing that you can do to update your home,
make it look fresh, make it look like new. And
(22:52):
when you go to paint and you pick a color
like and this is my go to color because everybody
wants me to tell them agreeable gray, huh, And it
says gray, but it has little tones. It's a really
warm gray. Agreeable gray from Sherwin Williams is like that
go to color that I've been recommending for gosh, almost
(23:13):
twenty years. And that's in the business because that particular
color is that neutral that seems to go with all
of the woodwork that we've had trending over the course
of the last twenty years. You know, there are other
colors on that palette that are in the same vein,
just really nice and neutral. And there's also some beige colors.
(23:36):
Warmer tones are definitely in. And even when you picked
your gray tone, I'll bet I don't think I've seen it,
but I'll bet you it's a warm gray.
Speaker 2 (23:46):
Yes it is.
Speaker 1 (23:48):
And I also like the point that you're making about
these colors and the fact that, Okay.
Speaker 2 (23:52):
You go all in, right, Oh, I'm you know, I'm.
Speaker 1 (23:54):
Building a house now and we're buying a new house,
and we're going to repaint all the things, and we're
going for deep blue, we're going for chocolate brown, we're
going for violet. We're going all in on these trends.
And then in four or five years you sell your
house and people walk in and they're like, oh, okay, hello.
Speaker 2 (24:08):
Twenty twenty four. You know, it immediately dates your house.
Speaker 1 (24:13):
So I think you can go kind of in on
these trends and buy like violet pillows for your couch,
not necessarily love that paint everything.
Speaker 5 (24:23):
Yeah, because you know, buying pillows, you use them for
a year or two and then they pretty much if
you've slabbered all over them or your dog is slapped
my job.
Speaker 2 (24:32):
Yep, same, yep.
Speaker 3 (24:34):
You can.
Speaker 5 (24:35):
You can pitch them or wash, throw them in the laundry,
and then you know they're either fresh and clean or
they're not, and you can move on with life. And
then you don't have all of the expense and you
turn your house into a bit of chaos when you paint,
because you have to take everything off the walls, patch
and paint if you have. And again it's a process,
(24:56):
but it is the most It really is the least
expensive and the best way for you to freshen up
your home. And I will always say, if you are
starting to paint, and let's just say the first floor
of your home, kitchen, dining room, family room, living room,
(25:16):
just pick one color and stick with it the entire
first floor of your home so that you don't have
any awkward transitions, you know, the days of red in
the dining room.
Speaker 2 (25:30):
I still want to the homes.
Speaker 5 (25:32):
Yeah, I still walk into homes and see the red
dining room and it makes me cringe a little bit.
I see grapes on the wall, or maybe some border
in the kitchens. Then you remember the border along the
top of the wall.
Speaker 1 (25:50):
It's either grapes or like the leaves right, like always,
which kind of leads me to my next question, which is,
you know for those people who are like.
Speaker 2 (25:59):
Well, I'm not going to repaint my house.
Speaker 1 (26:01):
I'm sure you've had clients through the years and you
were like, but this color everyone hates, Like, it's not
an option if you're going to put what are the
most hated colors when it comes to real estate?
Speaker 5 (26:12):
Well, I will say red is one of them number one,
because there's it's so difficult to come paint over.
Speaker 2 (26:20):
Yeah.
Speaker 5 (26:20):
Yeah, it's going to take two or three coats, or
you're going to have to do a primer on it
and then painted a couple of coats. It's going to
cost you if you hire someone to do that, it's
going to cost you several thousand dollars. And you're like, ah,
that's but it will make a difference if you get
rid of it before it comes time to sell. The
other colors that I make me cringe just a little
(26:42):
bit are the yellows that look a little bit like
big Bird. There's been some gold and some yellows over
the years that don't weather or have that staying power.
And you know, I always tell the story this has
probably been ten or fifteen years ago. I walked into
somebody's house and it looked like a fun house. Every
(27:04):
single wall they had a two story great room, every
single wall was a different primary color.
Speaker 2 (27:11):
Oh, it looked like a cram box. Huh.
Speaker 5 (27:13):
Oh my gosh. And then you know, up in the
bedrooms they were all they were different colors. And I
walk in and my eyes spot popped out of my
head and I said, oh, you like color, do you
You know? I didn't end up getting that listing, But
here's the thing. It did end up taking them a
heck of a lot longer to sell that property.
Speaker 3 (27:34):
It is a beautiful home.
Speaker 5 (27:36):
But when I suggested you need to repaint this whole
house and they said, no, I'm not going to do it,
I'm like, okay, well, you know that's your decision, but
you have to. I don't, and I don't like to
say I told you so, but it was a lot.
So when I try to tactfully tell people you know,
it will help you in the long run because paint colors,
(28:00):
if they are the wrong ones, they can decrease the
value of your home because the buyer is going to
look at it and say, I can't live with that.
I can't live with that. Color, and so best case
scenario is neutralized, neutralized, neutralized. If you're planning to sell. Now,
some people are like, but I do love my color.
(28:21):
I love this purple violet color.
Speaker 2 (28:24):
You do, Yeah, right, but maybe someone else loans.
Speaker 5 (28:27):
Yeah, yeah, absolutely right, you do, but not everybody may.
And then they realize, Okay, well, then I'm going to
have to spend five or six thousand dollars to hire
somebody to do this. And you always make less on
the sale of your home if you don't do it
before you put it on the market.
Speaker 1 (28:44):
Yeah, and I'm sure if it's between your house full
of Crayola colors and another house that's neutral, by the
neutral house is going to win every time. Great perspective,
as always from Michelle Sloane, a real estate expert. You're
listening to Simply Money, presented by all Worth Financial here
on fifty five KRZ, the talk station.
Speaker 2 (29:05):
You're listening to Simply Money.
Speaker 1 (29:06):
If you do by all Worth Financial, I mean you
Wagner along with Bob Spon's I already have a financial
question you.
Speaker 2 (29:10):
Need a little help with. There's a red button you
can click them while you're listening to the show. It's
right there.
Speaker 1 (29:15):
On the iHeart app record your question, it's coming straight
to us and straight ahead.
Speaker 2 (29:20):
Speaking of a bucket.
Speaker 1 (29:21):
List, how can you travel the world without maybe sacrificing
your financial situation. We'll get into that in a few minutes.
Have you ever made a profit from selling something big
house stocks? Maybe for those of you who've gone into crypto,
it's cryptocurrency.
Speaker 2 (29:37):
Hopefully you did time that right.
Speaker 1 (29:40):
But uncle Sam, what you have to keep in mind
is every time you have one of those big sales
with big proceeds, uncle Sam is going to want his
piece of that pie.
Speaker 3 (29:49):
Yeah. People complain to me all the time about having
to pay taxes, and I kindly remind them, you know,
you only pay taxes when you make money, So let's
not complain too much. But let's walk through a li
primer here on some of the things that people need
to be aware of. So the first thing, short term
capital gains. Anything that you derive a profit from that's
(30:09):
been held one year or a year or less is
going to be taxed at ordinary income rates. Yeah, you know,
which is tax the same thing as your paycheck. Long
term capital gains, on the other hand, are assets held
for more than one year, and those are taxed sometimes
much lower and much more favorable rates than ordinary income taxes,
(30:31):
anywhere from twenty percent, fifteen percent, sometimes even zero percent
based on what your overall taxable.
Speaker 1 (30:39):
Income is, and that can be a great thing to
take advantage of. You know, we talk about diversification in
your investments, but I would say you also have to
be diversified in the account the kind of accounts that
you're saving in. I will come across people pretty often
who have significant money saved, but they're all in iras
or for one k's, you know, So if that's all
(31:01):
kind of tax deferred, first of all, you're going to
pay taxes on every dollar you're pulling from those accounts
at your ordinary income rate.
Speaker 2 (31:08):
But second of.
Speaker 1 (31:09):
All, I just hit a couple this week that were
in my office thirty three years old, and they are
on a fantastic track, and I said, listen, I don't
want to put words into your mouth or goals, but
you guys.
Speaker 2 (31:21):
Could potentially retire early. Here's the problem with that.
Speaker 1 (31:23):
All the accounts you're saving in you can't access until
you're fifty nine and a half unless you're going to
pay a ten percent penalty if.
Speaker 2 (31:31):
Retiring early is anywhere on the radar or a goal
of yours.
Speaker 1 (31:36):
Let's get some money into a joint taxable account and
you know, kind of talking through the tax advantages of
Once you hold those positions within that account for a year,
you're going to be taxed at a lower rate. And
this can be a great option for a lot of
people when they get to retirement. When you look at
you know, if I've come across someone who's got a
(31:56):
taxable account in traditional dollars and then roth dollar, these
are the first dollars that we tap, and they can
be incredibly tax efficient, especially if you've been harvesting losses
in that accounts.
Speaker 2 (32:09):
You can be incredibly tax efficient with these.
Speaker 3 (32:11):
Yeah, and you bring up all whole what I'll call
Hornet's nest of activity here. That is one of the
merits of doing good tax planning. And we talk about
this all the time. There's a tremendous difference between tax
preparation and tax planning, and unfortunately, I think about eighty
five percent of the people out there only do tax
(32:31):
preparation and don't talk about tax planning. And this is
where you can effectively diversify your income sources. When you
retire and then diversify the sources from which that income
comes from, and you can layer on income from Social
Security IRA accounts, non IRA accounts, raw iras and craft
(32:52):
and income strategy that gets you the income you need
in the most tax efficient way possible. So good for you,
Amy for asking that thirty year old client, you know,
twenty some years ahead of time, when do you want
to retire? And I mean that seriously, because now the
conversation has begun and you might have, you know, made
a huge difference in their life by giving them an
(33:15):
opportunity in a twenty year runway to prepare for when
they want to retire.
Speaker 1 (33:19):
When I get clients around that age, and I'm sure
I'm giddy because there's so much that we can do
to help them and to you know, craft their financial
situation in a way that gives them all kinds of
opportunities when they get older and all kinds of flexibility.
On the flip side, I've had far too many come
in who want to retire in six months, you know,
(33:41):
and they don't They haven't maybe planned well or everything's
in that flour one k and they didn't understand how
that might impact them in retirement. There's not a lot
of time to unravel those things. So you know, planning
for these things in advance and understanding these different kinds
of accounts.
Speaker 2 (33:56):
Right, and how capital gains works.
Speaker 1 (33:59):
You know, many times it's we just bought that position
less than a year ago. Let's not let's not sell
that right because you're gonna have to pay ordinary income.
Speaker 2 (34:06):
Let's let's wait six months.
Speaker 1 (34:07):
Let's pull from something else, maybe your emergency fund for now.
Then we can wait until we're paying lesson taxes on it.
Speaker 2 (34:15):
We can replenish that emergency fund.
Speaker 1 (34:16):
So there's a whole strategy involved. But you have to
understand how these things work.
Speaker 3 (34:21):
Yeah, just switching gears and giving a couple other pieces
of you know, practical advice here. Some people might want
to downsize their home or move to another part of
the country. You know, your husband wants to move where
he can catch his own dinner. You know, things like that. Well,
when it comes time to sell that house, we got
to look at the capital gains exposure there. The first
(34:42):
thing that a lot of people don't keep track of
is what what is the actual cost basis in your home?
You know, so if you've made it matter Yeah, they
upgrades matter. It's important to keep those receipts on the
major renovations and things that you do, because that can
lower your cost you know, raise your bass, lower your
tax exposure. Just as a reminder, here, if you've lived
(35:04):
in your home as your primary residence for at least
two of the last five years, you can exclude up
to two hundred and fifty thousand dollars of gains as
a single taxpayer, and up to five hundred thousand dollars
of capital gains if you are married filing jointly.
Speaker 1 (35:19):
Here's the all Worth advice listening capital gains taxes. They
don't have to be scary or confusing. You need to
understand the rules and plan your investments strategically, and then
keep more of your gains where they belong.
Speaker 2 (35:29):
Which is with you, not necessarily with Uncle Sam.
Speaker 1 (35:32):
Coming up next, how to travel smart without sacrificing your
retirement goals. You're listening to Simply Money presented by all
Worth Financial here in fifty five KRC the talk station.
You're listening to Simply Money presented by all Worth Financial.
I mean Wagner along with Bob's Bondseller talking.
Speaker 2 (35:51):
About bucket lists for retirement. You know, what are those
dream goals that you've always had.
Speaker 1 (35:55):
Many times I work with people and that's about traveling.
Speaker 2 (35:59):
But I know some of these major trips also can
come with major price tags.
Speaker 3 (36:03):
Yeah, and that's why you have to build that into
your financial plan. And I'll share a quick story. This
is actually a that has a pleasant ending, you know,
and it's a meeting when I had I had with
a client yesterday. And these folks are in their late seventies,
early eighties. They've saved well, they've been retired for years.
They come in, you know, diligently and update their financial
(36:25):
plan every year. And these are very reserved, conservative people,
very careful with their money. And you know, I usually
for people in their eighties, I the first question I
always ask them is how's your health? How are you doing?
And their faces light up. They talked about the crews
that they the ocean crews that they took last year.
They had a great time. They're both healthy. And the wife,
(36:49):
who you know, very stoic, dignified lady. She said, because
I reviewed the goals with them, and we always you know,
at least for the plans I build, we talk about
the essential expenses, travel budget and healthcare. The healthcare and
the extent essential expenses are things that you know we
got to have, that must there must, and then the
(37:10):
travel is the icing on the cake. We were able
to review their plan show them that they're in great shape.
And she says, Bob, can we look at what it
looks like to increase our travel budget from fifteen thousand
dollars a year to twenty thousand dollars a year? And
I said absolutely, and we modeled it out. The needle
didn't move at all. They're great and they're like, we're
(37:32):
going to book it. We're going to book two cruises
this year for that. And what a great meeting to have.
You know, you're healthy, you saved well, you did the planning,
and you're able to enjoy the latter years of your life.
It was one of the more pleasurable meetings I've had
in a long time.
Speaker 1 (37:48):
But you're talking about building travel into the budget and
making sure that it works.
Speaker 2 (37:52):
That's a key component of this.
Speaker 1 (37:53):
You know from some people that's maybe you even set
up a different account right and kind of watch those
dollars separately, or at least make sure that you're invisor
has earmarked those dollars so that you know they're there
for the plan. But listen, once you're retired, you have
the flexibility to travel whenever you want, and you can
save you know, shoulder season in Europe, you know whatever. Uh,
(38:14):
maybe you're not going, you know, in the hottest season
or the peak travel season. But now you've got the
flexibility not to have to deal with kids spring break
or summer vacation, you know, or.
Speaker 3 (38:24):
Travel basketball or travel baseball as amen, those are our
vacations which report early vacations for years. Right.
Speaker 1 (38:32):
Yeah, and listen, I'll tell you my dad is great
about this. Ask about senior discounts. He doesn't go anywhere where.
He's not asking about that, even my son's basketball games.
To that point, you know, plan with miles and points.
There are ways that you can do these major trips
and really enjoy them in retirement and also not break
your budget.
Speaker 2 (38:49):
Thanks for listening.
Speaker 1 (38:50):
You've been listening to Simply Money, presented by all Worth
Financial here in fifty five KRC, the talk station
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