Simply Money

Episode Transcript

Speaker 1 (00:05):
Tonight we are going to have a real and on
this conversation about crypto.

Speaker 2 (00:11):
Does it really have a place in your portfolio?

Speaker 1 (00:14):
You're listening Disimply Money presented by all Worth Financial Ammi
Wagner along with Bob's spawnseller.

Speaker 2 (00:19):
No question here.

Speaker 1 (00:20):
The world of investing has evolved, right, you can buy
and sell investments twenty four to seven, and the types
of investments have also evolved. And of course one of
the most talked about, widely written about Disgusted dinner parties
is crypto and it is now Bob in the news

(00:40):
more than ever.

Speaker 3 (00:41):
Yeah, and the most recent news is Robin Hood, you know,
an online brokerage firm, announced yesterday that the US Securities
and Exchange Commission has dismissed its investigation into the company's
cryptocurrency division. That was an investigation that was supposedly launched
last year, and the dismissed the case is seen as
a positive development for the crypto industry in general, which

(01:05):
has faced heightened scrutiny, as we all know, from US
regulators in recent years. And I guess it suggests that regulators,
especially under the new Trump administration, may be taking a
more measured approach to oversight after years of aggressive enforcement
actions against crypto firms.

Speaker 4 (01:26):
I don't know, Amy, I think, yeah, I think.

Speaker 3 (01:29):
Regulation is great when it involves getting rid of fraud
and abuse.

Speaker 4 (01:36):
Other than that, I think freedom is a good thing.

Speaker 3 (01:38):
So as long as you know people are protected from
fraud and abuse, I say, let it rip.

Speaker 1 (01:45):
You know, Bob, I'm not surprised by how crypto has evolved, right,
So when we first started hearing about it, it was
oftentimes in conjunction.

Speaker 2 (01:56):
With a dark web.

Speaker 1 (01:57):
You know, there were there were players in Russia that
we're using it, and it was because.

Speaker 2 (02:02):
There was no regulation. It felt like the wild West.

Speaker 1 (02:05):
It was like, you know, people that were up to
no good on the dark web, and also like twenty
year olds in their parents' basement.

Speaker 2 (02:13):
There wasn't a great understanding of what it was.

Speaker 1 (02:16):
And you know, I think we have moved past the
wild West days into to your point, finding some regulation
to crack down on people getting their losing their shirts
in these kind of investments. I'm not saying it can't
happen now, but I think we have now as as
a community of investors developed a deeper understanding of Bitcoin,

(02:43):
of cryptocurrency, of how it works and how you can
maybe invest a little more safely.

Speaker 3 (02:49):
Yeah, and there's still ways to lose a ton of
money very quickly. And so there's a big difference between
bitcoin itself and then some of these other more obscure
cryptocurrencies like doge coin, sheba in neu, you know, other
things that come along that are even more volatile than

(03:10):
bitcoin itself, if you can believe that. But yeah, there
are reputable exchanges. Now I'll throw out one coin base,
which is a publicly traded company, so it is subject
to all SEC regulations. I mean, that is a reputable wallet,
so to speak, where you can go on there and
trade cryptocurrency. So yes, it's becoming mainstream some countries, even

(03:34):
the United States has been talking about doing a sovereign
wealth fund that would hold cryptocurrency. So yes, it's becoming
more mainstream, more people are involved in it, and yeah,
I think maybe it's good to talk about why people
would even invest in cryptocurrency. I mean, going back, you know,

(03:56):
we talk about tariffs and we talk about inflation all
the time.

Speaker 4 (04:00):
I mean, one of.

Speaker 3 (04:01):
The reasons people are are interested in this type of
an asset class is to protect against currency deflation. Which
you know, the inverse of that is inflation. You know,
when governments print money around the world to finance government spending,
you know, fiat currency, paper currency becomes devalued, and so

(04:24):
just like gold, certain cryptocurrencies like bitcoin, the thought is
where you have a high stock to flow ratio, meaning
there's not a lot of it being consumed relative to
the amount of stock that's in place, that tends to
bode well for any currency, you know, like gold for example,

(04:46):
that people have been using for over six thousand years
as a storehouse of value.

Speaker 1 (04:52):
Yeah, and I think you know, it's like, does this
belong in my portfolio? Well, now there's bitcoin etf right,
that would be maybe a safer way that you could
dip your toe into it and still kind of take
part in crypto investing, but also be diverse, you know.

(05:15):
And I think what you have to understand with crypto
is what you're signing up for. It is when we
talk about the roller coaster of investing, this is a
far steeper roller coaster than maybe one you've ever been
on before. If you think the stock market is volatile, right,
if you get whiplash from the stock market, if it

(05:36):
keeps you up at night.

Speaker 2 (05:37):
Buy Er b wayre here because crypto laughs at that.

Speaker 1 (05:40):
We've seen bitcoin drop eighty percent before balancing right back right,
and then what happens is you know, you're buying at
the top when everyone's talking about it, and then you're
panicking when it's going down eighty percent, right, So you
kind of have to know what you're getting into.

Speaker 2 (05:58):
Here.

Speaker 1 (05:59):
You're listening to Simply Money presented by all Worth Financial.
I Meani Wagner, along with Bob's Bawdseller. We're having a
real deep dive conversation into crypto. We have always said
on the show, we don't think it's going anywhere. There
was a time several years ago when I said, listen,
unless you've got kind of play money, I don't know
that any of it belongs in cryptocurrency.

Speaker 2 (06:21):
Now we have a deeper.

Speaker 1 (06:24):
Understanding around it. There is some more regulation there that
could protect you. There's still a lot to be learned here,
but again I think something like a bitcueen ETF might
be a safer way to dip your toe in. One
of the things I like to think about when it
comes to crypto is when we talk about investments, when

(06:46):
we talk about the stock market, and the bond market
and gold whatever on the show. We're doing so with
a lot of historical perspective, right, we have decades of
historical perspective to talk about how different asset class have
performed and responded to different things. We do not have
the history with cryptocurrency to be able to say, oh,

(07:08):
last time it did that. We're going back like ten
years here, you know.

Speaker 3 (07:13):
Yeah, Amy, And to your point, a lot of a
lot of the reasons people want to get involved in
different types of currency, and I'll use the example of gold,
is they want a safe place to park their money
that protects their money from inflation. And I think it's
very important to just for people to understand that bitcoin

(07:34):
and cryptocurrency is much more volatile than even things like gold.
I'm looking at a chart right now bitcoin. I mean,
it peaked at about one hundred and five dollars a
share just one month ago, and as I'm looking at it,
you know, today it is dipped to eighty seven thousand
per bitcoin. You know, just over the course of a month.

(07:54):
That's way more volatile than most people are bargaining for
when they pick any kind of an asset class. So yeah,
it's buyer, beware, learn what you're getting into, and study
some of the historical movements of cryptocurrencies of any type
before you go throwing money at it, because it is
not I would not consider this to be a quote

(08:17):
unquote safe short term investment.

Speaker 2 (08:20):
So how do you get started? If you're interested?

Speaker 1 (08:24):
I would say one five percent of your portfolio at
the max, right, enough to have some skin in the game,
some exposure to crypto, but not enough, please, not enough
to wreck your entire retirement. So many people that have
asked me about crypto are asking me because they hear

(08:46):
other people talking about it. They hear the words crypto
and you name it, you know, bitcoin, dosee coin, whatever
it is, ethereum, and they just hear numbers that sound.

Speaker 2 (08:57):
Like really really great returns.

Speaker 1 (08:59):
It is like anything else, right, Your friends that bet
on the Super Bowl or the horse race or whatever,
they don't often talk about the losses, right, So I
don't know that if you're at a dinner party and
someone's like, oh, I made so much money on bitcoin,
they're also not talking about the fact that they've lost
so much and they need dramamine, you know, to be

(09:21):
on this ride. So I think if you're going to
dip your toe in fine. First of all, let's do
it with a safe percentage of your portfolio. But go
into this with eyes wide open. If you are someone
that does not have a pretty high risk tolerance, this
may not be the investment for you.

Speaker 3 (09:37):
No, you're exactly right, Amy, And I as I listen
to you talk, I think the thought that comes to
my mind is, before you get involved in something like this,
you have to answer for yourself the why behind the investment.

Speaker 4 (09:48):
Yeah, And what I mean.

Speaker 3 (09:49):
By that is there's a big difference between trading something
in the short term and investing in something in the
long term. And a lot of the early adopter to bitcoin,
they have used this a lot like some of these
meme stocks you know during COVID. You know, these things
can fly up, fly down. And if you're sitting at
your computer all day and you have the time and

(10:11):
inclination to more or less date trade these kind of things, Yep,
you can make a lot of money and you can
also lose a lot of money. But if you're somebody
that wants to take one three five percent of your
portfolio and plunge it into this thing and consider it
like a savings account. Buckle up, because your your result
could be way different than what you might be bargaining for.

Speaker 2 (10:33):
I love the.

Speaker 1 (10:34):
Point that you made about ask yourself why, like really
ask yourself why.

Speaker 2 (10:39):
And if the answer to your why.

Speaker 1 (10:40):
Is because everyone else is doing it, I think you
already have your answer as to whether it's a smart
thing for you.

Speaker 3 (10:46):
Right.

Speaker 2 (10:46):
It's the same conversation I'm having with my teenagers.

Speaker 1 (10:49):
Just because everyone else is doing it doesn't mean right
that this has a place in your portfolio. I have
a very dear friend who, several years ago, with money
that was on the side lenes not even ear march
for retirement, made some investments in cryptocurrency for the grandkids
and said, if this goes great, great, and if not,

(11:12):
everyone can still eat and sleep and go to college
and retire.

Speaker 2 (11:16):
And I think that's.

Speaker 1 (11:17):
A really, really healthy way to look at crypto.

Speaker 2 (11:21):
Right, Dip your toe in, give it.

Speaker 1 (11:22):
A try, but not with any money, any money that
could possibly wreck your retirement or any long term financial
goals that you have.

Speaker 2 (11:30):
Here's the all Worth advice.

Speaker 1 (11:32):
You wouldn't put your life savings into any single stock,
don't do it with crypto either. Now it could be
though a smaller part of your portfolio. Just do your research,
understand what you're getting into.

Speaker 2 (11:43):
Coming up next.

Speaker 1 (11:43):
Do you have a contingency plan if you were to
suddenly experience a financial shock? Maybe you work for the
federal government right now, very top of mind for many.
We'll get into this next. You're listening to Simply Money
presented by all Worth Financial. Here in fifty five KRC
the Toxation. You're listening to Simply Money presented by all

(12:06):
Worth Financial I Memi Wagner along with Bob's spondsell Er.
If you can't listen to our show every night.

Speaker 2 (12:11):
Don't worry. Don't worry.

Speaker 1 (12:12):
You don't have to miss any of the brilliant money
advice we're giving you because we have a daily podcast
for you. Just search Simply Money. It's right there on
the iHeart app so you can find it there or
wherever you find your podcast. Also, if you've got friends
who are maybe need a little help with money, send
them in that direction too. Sure it had At six
forty three, we're going to take a look at the
different ways to maybe earn income once you stop working

(12:36):
full time.

Speaker 2 (12:36):
You do have some options there.

Speaker 1 (12:38):
If you have checked the headlines anytime in the past
few weeks. You know that thousands of federal workers have
recently lost their jobs. I think thousands of others have major,
major concerns about what could be happening next. And I
am having conversations with my clients who have federal jobs,

(13:00):
like what happens if we're forced to retire right now?
What happens if we lose our job immediately? And so
I think if you are in this boat, listen up.
Even if you're not, I think there's something in here
for you too, because any of us right could lose
our job at any point in time.

Speaker 2 (13:17):
It's just the reality.

Speaker 4 (13:19):
Yeah, and this is not fun for anyone.

Speaker 3 (13:21):
And you know, unfortunately social media, you know, people love
to poke fun at these kind of things. You know,
right now, it's all the layoffs that might happen due
to DOGE. I remember back when the Keystone pipeline got
shut down. You know, there were seventeen thousand workers displaced immediately,
and the jokes on social media were like, well, go
learn to code, or go you know, find a green job.

(13:44):
You know, this is not this is not funny and
shouldn't be joked around about. Because for the vast majority
of people that work in any industry, whether it's the
federal government, state government, for profit industry, the vast majority
of people work very hard every day and they devote
their life time of energy and thought and effort into

(14:04):
doing a great job, and then, through no fault of
their own, they could potentially get the rug pulled out
from under them. It's very unsettling and very troubling. So
let's talk about how to help these people.

Speaker 4 (14:15):
Amy.

Speaker 1 (14:16):
Yeah, first of all, you know this could happen to anyone,
and what should you be doing potentially to prepare.

Speaker 2 (14:24):
You've got to build your boat before the storm hits, right,
it just makes sense.

Speaker 1 (14:28):
You do not want to try to put a boat
together and figure out your financial situation in the midst
of a storm, in the midst of this news. It
is so much easier to already have a financial plan built,
to have emergency cash reserves, and then to get this
call in this news while it is still devastating, while
there is still highly emotional and scary, it becomes a

(14:51):
detour on your roadmap. You're not trying to figure out
what the roadmap is at that point. So cash reserves,
we say thre months if you've got two people working
of critical expenses, I would say, you know, if one
person is working six months or I had a call
last week, actually Bob not with the client, with someone

(15:12):
who was reaching out.

Speaker 2 (15:13):
For the first time. Both of them federal workers.

Speaker 1 (15:16):
And they love their jobs and they didn't have any
interest in retiring. I think they wanted to work until
they were both seventy and now they're like, we don't
know if we'll have jobs next week, so we don't
even know if we have enough saved, and both of
us could potentially be on the line here, right, So you.

Speaker 2 (15:33):
Know, I don't turn my nose up as someone.

Speaker 1 (15:35):
Who has a really, really well funded emergency fund, because
you know, if the worst happens, and I think the
worst would be two incomes coming in and you're both
losing them around the same time, at least you have
time to breathe because you've built up cash reserves enough
for it.

Speaker 3 (15:53):
Yeah, and when you have two folks that are in
the same industry or both working for the federal government,
whatever the case may be, where they might both get
hit simultaneously, now you want to ramp up that emergency fund,
you know, instead of six to twelve months. You know,
I'm thinking twelve to twenty four months, maybe a little
bit more, because you know, you want to give yourself
some time financially to just let all this settle in

(16:17):
and not have to sell assets, stocks, bonds, what have
you in a market decline to fund your lifestyle. So
I guess that leads to the next point is, and
we talk about this all the time, Amy, this is
why you have to stay diversified and have to have
a plan.

Speaker 4 (16:34):
You have to have a pile of or should have
a pile.

Speaker 3 (16:37):
Of assets in non volatile asset classes like cash, like
high yield savings, like short term bonds, where you can
weather a storm like this. And to me, this storm
is no different than a big market decline type of storm.
Whereas we look back historically, you know it, even in

(16:57):
these big market declines like the tech bubble or the
housing crisis or what have, people that are able to
allow their long term growth oriented assets to stay invested
after three to four years, those assets tend to totally,
you know, recover.

Speaker 4 (17:13):
Same things should apply here.

Speaker 3 (17:15):
If you've got that nest egg built up, you can
whether that storm economically, even though emotionally it's a whole different.
You know, can of worms here to just talk through
the emotional adjustment of potentially losing your job.

Speaker 1 (17:30):
Well, and I think on the flip side, if you
don't have that emergency, there's emergency reserves available to you.

Speaker 2 (17:37):
What I see is.

Speaker 1 (17:38):
Too many people going to making really bad decisions about Okay,
well I don't have cash reserves, I'm going to carry
a big balance on my credit card and eventually I'll
pay it off.

Speaker 2 (17:48):
Well, that's terrible. I mean, the.

Speaker 1 (17:50):
Average APR right now is inching closer to thirty percent,
I mean, astronomical. I've seen far too many people saying, well,
I'm just going to take money out of my four
kay right, Well, if you're not fifteennine and a half,
you're going to pay a ten percent penalty, You're going
to pay taxes on it, and you are then taking
money away from your future self and even taking out
any kind of a loan or debt right now. Right,

(18:12):
Debt is cheap when interest rates are low, but when
they spike, barlers can get crushed. So when you have
a well funded emergency fund, you're giving yourself options rather
than backing yourself into a corner and having to choose
the best terrible decision, you know, the best of the
terrible options.

Speaker 3 (18:31):
Yeah, and I want to focus now on the folks
that you know maybe have not gotten that layoff notice,
but are worried they might be getting it at some
point here in the future weeks and months that you know,
in the short term, now's the time to sit down
with a good fiduciary financial advisor. I mean, let's face it,
if you lose your job tomorrow, we can sit here

(18:52):
and talk about emergency funds all day long. You know,
that's stuff that you plan for in advance. I think
the thing that you can do right now is down
with a good advisor and actually stress test your current
portfolio right now. Ask yourself, if I lose my job,
if the market drops thirty percent or so, am I okay?
And if the answer is no, now's the time to

(19:14):
get your ducks in a row. Put some money in
short term non risk assets so the you are prepared
to weather that storm if and when it comes, you know,
here in the next few weeks and months to come.

Speaker 1 (19:28):
Here's the all Worth advice. The truth is you don't
have to predict the next shock. You just need to
be ready for one or whenever it comes coming up next.
We're talking about the benefits of having an open relationship.

Speaker 2 (19:41):
No, not the X rated version. Stay with us. We'll explain.

Speaker 1 (19:44):
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. Immy Wagner
along with Bob's spond seller. I don't normally like to
do segments where I don't fully know exactly what we're
talking about, because I'm kind of a control freak. But

(20:07):
we have a really good friend of the show, Alridic.
He runs game time budgeting. He is so smart about money,
and he has only shared with me that today we
are talking about open relationships. This could go anywhere, so
I have buckled my seatbelt.

Speaker 2 (20:22):
Al Riddick, open relationships. Let's hear it.

Speaker 4 (20:27):
How are you doing today?

Speaker 1 (20:29):
Enemy?

Speaker 2 (20:29):
A little nervous, A little nervous.

Speaker 5 (20:32):
So you know, when people hear this term open relationships,
most of the time it might conjure up, you know,
some images of shall I say, unconventional romantic arrangements. However, well,
we talk about adding a third party. Right, so far
as unconventionality. What if that third party, amy was money. Right,

(20:57):
So when we couples treat money as an active participant
in their relationships, it is possible that they could unlock
deeper levels of trust, understanding, and collaboration.

Speaker 2 (21:13):
Okay, I'm following here.

Speaker 1 (21:15):
Your open relationship is partners, the true partners, and then
the money kind of becomes an equal partner or an
equal role in that relationship.

Speaker 4 (21:25):
That is so true.

Speaker 5 (21:26):
So let me give you an example of another benefit amy.
So let's just say you have this couple who has
initiated the practice of having routine conversations about money. And
let's be real, when you're talking about money, that could
be a very intimate experience. Right, So while one individual
in this relationship may be expressing some of their personal

(21:48):
aspirations or fears or values as it relates to money,
and then the other person you get to hear that.
You know, that's a shared experience. So then what happens
if this couple gets it's on the same page and
maybe put together a plan to pay down some credit
card debt or possibly figure out how to save more
money and things of that nature. So what is actually happening?

(22:11):
You're deepening the bond between the two partners, and the
next thing you know, you're starting to celebrate some of
those wins when you actually do pay down a credit
card debt or hit some of those savings milestones.

Speaker 2 (22:25):
Ill I'm following you one hundred percent.

Speaker 1 (22:29):
I want to throw out there that there are statistics,
and they're pretty high, that show a lot of times
if marriages and in divorce that the major issue is money.
They just cannot get on the same page with money.
So when you're saying, hey, let's have an open relationship,

(22:50):
this is open about money. And if this dialogue starts
from the very beginning, think how much healthier your marriage.

Speaker 2 (22:58):
Could potentially be.

Speaker 1 (23:00):
So it's not just about the money, it's about the
depth of communication in that marriage.

Speaker 5 (23:06):
With our question, Amy, so let's just be real about it.
I know you're married and I'm married, right, So I
would dare say, well, I don't want to put you
on the spot, Amy, So as it relates to myself
and my wife when we finally united in holy matrimony,
each of us came to the relationship with some preconceived
notions about what we thought marriage should be like and

(23:28):
how we each think we should handle money.

Speaker 4 (23:30):
Now.

Speaker 5 (23:31):
The funny part is each of us probably thought we
were one hundred percent correct, just like many of your
listeners right now, right, But you have to invest the
time getting to understand your partners or your spouse's relationship
with money, because we always, I mean all of us,
we have a relationship with money, but we don't take

(23:53):
the time to peel the onion, so to speak, to
get down to the core of why we believe what
we believe about money, where we developed certain behaviors, and
to really be honest, Amy, how many of us take
a step back and say, you know what, what if
I believe something about money that's not even true?

Speaker 4 (24:12):
You know what I mean?

Speaker 5 (24:13):
Yeah?

Speaker 2 (24:14):
Sure, al.

Speaker 1 (24:17):
I think for many people, we grew up in homes
where people didn't talk about money openly, and so you
could have dated this person for years and really not
have had much of an in depth conversation about money.
So I think a lot of people and you could
be married for years, right and not really.

Speaker 2 (24:34):
Talking about it.

Speaker 1 (24:35):
So for someone who's listening and thinking, okay, this is
us right, I'm raising my hand right now, we don't
have a really open, healthy dialogue about money. Now, one
of the things I know about you is you and
your wife are so strong in this aspect. You have
a regular cadence that you meet about money. Do you

(24:55):
mind sharing a little bit about what you guys do?
Is kind of maybe a frame of reference for So.

Speaker 5 (25:01):
Actually, I'm going to answer that question in two different ways, Amy.
So for couples that might be new in their relationship,
like and you might be headed towards the going down
the aisle or already married, just a couple of questions
to consider when you're having those intimate conversations with your spouse,
like what are your thoughts on how we could improve

(25:24):
our money system as a couple. Or another question might be,
you know, if you had to list our top three
financial values as a couple, what would they be? At last,
but not least, like, what one financial accomplishment would you
be most proud of if we were able to achieve
it as a couple. So when you ask questions that way,
you can't help but get a well thought out answer

(25:45):
because it's not a closed ended question like do you
like to eat dinner? The answer to that is yes,
you know what I mean?

Speaker 4 (25:52):
You can't ask do you like money? Yeah?

Speaker 5 (25:54):
Exactly In a relationship. So for my wife and I
when we sit down and have our conversation, they're keep
in mind, Amy, we've been married like over twenty two years,
so we've had a lot of practice at this we are.
We spend a lot of time talking about plans for
the future because our day to day like cash flow plan,
it is a system that we just repeat over and

(26:16):
over and over, and, to be honest with you, is
really boring, but it works well, so we just keep
doing it. So I'm always intrigued to know what my
wife is thinking because typically she'll throw something out like
out like this, well, I want to remodel the bathroom.
So when I hear something like that, obviously I know
we're talking quite a few thousands of dollars, but I

(26:37):
need to know that information so I can plan accordingly.
So when she puts her dream or desire out into
the atmosphere, I kind of feel like, you know, it's
my job to kind of make that come true. Because
if I could put a smile on her face, what
do people say, happy wife, happy life.

Speaker 1 (26:52):
Right exactly exactly, So where do we take it from there?

Speaker 5 (26:58):
So from there, actually, it's really just all about having
the discussions with your special human. But I do need
to caution people when you're having these initial discussions and
your special person is expressing why they believe what they
believe or why they commit certain actions or behaviors with money.

(27:18):
One thing out cautioned people about. Amy never asked this
one word question, which is the word why. Let me
tell you, when most people hear the word why, they
find it offensive. Because let's just be real about it, Amy,
the reason most of us do anything is because we
feel like it. Right, So you already know the answer

(27:38):
to the question. But when you can phrase a question
with the word why, excuse me, when, how, or what?
That usually leads to a more productive conversation because nobody
feels cornered, and when most people are cornered, they want
to attack.

Speaker 4 (27:57):
YEP.

Speaker 2 (27:58):
Makes sense. So I don't ask why.

Speaker 1 (28:01):
Ask open ended questions keep the dialogue going, regular cadence
of meetings, and I think really also it's kind of
coalescing around the same shared goal.

Speaker 2 (28:13):
So if you're saying, you.

Speaker 1 (28:14):
Know, hey, what's your goal, and then you're kind of
adding yours to it, I think it helps to then
make smaller financial decisions. Hey, is this going to get
us closer or farther away from that goal. So Alritick,
I got to tell you, I was a little nervous
when you said you wanted to talk about open relationships.
But I'm fully buying and now I think it's open

(28:35):
communication around money, giving it the proper role and having
a healthy approach to it in your marriage, your partnership,
whatever that looks like for you. Great advice as always
from our good friend Alritick from Game Time Budgeting. You're
listening to Simply Money presented by all Worth Financial here
on fifty five KRC the talxation. You're listening to Simply

(28:59):
Money present and by all Worth Financial. I may me
Wagner along with Bob sponsor.

Speaker 4 (29:02):
Or.

Speaker 1 (29:02):
Do you have a financial question you need a little
help with. There's a red button you can click on
while you're listening to the show right there on the
iHeart oppa cord your question. It's coming straight to us
and straight ahead evidence that illustrates how important it is
to help your kids or your grandkids become financially literate
like this could make a difference in dollars and cents.
Will explain that, you know, Bob, we were just talking

(29:24):
a few minutes ago about how many federal workers are
on edge right now.

Speaker 2 (29:29):
They've either gotten news.

Speaker 1 (29:30):
That their jobs aren't going to be there or they
have concerns that they may not be there very soon
in the future. And the system thing that happens to
a lot of people, whether you're a federal employee or not.

Speaker 3 (29:41):
You know, you're.

Speaker 1 (29:41):
Maybe in that final chapter of working and then you
get word like you either don't have the job anymore,
it's gone, or you just cannot do it another minute.

Speaker 2 (29:53):
You hate your boss, right.

Speaker 1 (29:55):
You can't, you can't continue to do it. So you
may have the option in your financial plan to not
make the ninety thousand dollars that you were making before
or one hundred and something or sixty something. Maybe it's
just that you need to bring something in and get
healthcare benefits covered in order to get you to a

(30:17):
point where then you can start taking distributions from retirement assets.

Speaker 2 (30:21):
Right.

Speaker 1 (30:21):
And so if that's the case, and that's maybe the
detour the workaround for you, I think you do have
some options.

Speaker 4 (30:28):
You have a lot of options.

Speaker 3 (30:30):
And this even applies to the folks that you know
have planned to retire and want to retire, but they
don't want to do nothing. They want to stay active.
They want to use their talents and experiences that they
have accumulated over decades, and they want to stay active
doing something productive.

Speaker 4 (30:46):
So I guess this is just a.

Speaker 3 (30:47):
Reminder that there are a lot of options out there
that will bring folks fulfillment and also, you know, bring
them a paycheck. So consulting and freelancing is one. I
find this with any retirees that I work with. People
are begging them to come back and work ten, fifteen,
eighteen hours a week, and it's that right amount of

(31:09):
work for them that keeps them active, keeps a paycheck
coming in, and it also gives them the free time
that they were looking for which caused them to want
to retire in the first place. It's a wonderful option,
and there are a lot of opportunities out there in
the consulting and freelancing and part time workspace.

Speaker 2 (31:28):
Yeah, I mean just bringing your expertise back.

Speaker 1 (31:30):
To the table, right If you have decades of experience
in whatever graphic design.

Speaker 2 (31:36):
Whatever it is, there would be probably.

Speaker 1 (31:39):
A lot of companies out there saying, yeah, let us
leverage that expertise that you have, which could also bring
in a paycheck. I'm thinking of a time and this
was years ago. Nathan Backgrach, one of our founders, had
a client who had a very high powered, high paying job.
Right thought he was just going to coast right into
etime seamlessly, and then it was talk about a shock.

(32:05):
He got laid off out of the blue, zero notice,
and I mean it was the absolute wind getting knocked
out of him. And he called Nathan immediately, and Nathan
was like, Okay, listen, let's talk about this.

Speaker 2 (32:17):
We ran your financial plan. Obviously it was flawless.

Speaker 1 (32:21):
Before now we're maybe looking at retiring or this is
five years before we expected that. The solution was and
I'm not joking about this, Bob. He became an usher
a great American ballpark and that.

Speaker 2 (32:37):
Brought in enough money for him.

Speaker 1 (32:41):
To not have to touch his retirement assets until they
had originally planned.

Speaker 2 (32:47):
And once again it was seamless.

Speaker 1 (32:49):
It brought in enough money to cover the monthly expenses
in addition to what his wife was making, and it
ended up talk about win win.

Speaker 2 (32:56):
He had no expectation of that. The guy loved baseball.

Speaker 4 (33:02):
You're starting to describe my dream job. Amy you we
need you here.

Speaker 3 (33:09):
No but again, as you talk about that, I think
for all of us, you know, that we need to
keep in mind is these these abrupt, unannounced, you know,
layoffs or job eliminations. They are an emotional gut punch,
you know, when when you've worked at something and built
a career over many, many years. It's a real gut
punch for somebody to come along and basically say you're

(33:32):
not needed or wanted anymore. And I think, I think
it's good to have that conversation. And I harken back
to some of the things our friend Julie Balki talks
about all the time when she talks about you know,
people tend to vastly underestimate their value to society and
their value and their job, and sometimes they just need

(33:53):
to be reminded of how valuable they are, how valuable
their skills and experience are. And that enables people to
transition into you know, what can you do that will
bring yourself some fulfillment and leverage all those gifts and
skills that you've accumulated, you know, over a lifetime.

Speaker 1 (34:11):
I mean there's a financial component of it, right, bringing
in money, but then there's also just what am I
going to do with my time, you know, and for
a lot of people going from a high stress, long hours,
been doing this forever, to nothing, it is whiplash of
the worst kind. And so something like you know, a
part time job, seasonal work. You know, maybe you love

(34:33):
to golf and now you're going to be the starter
at your favorite golf.

Speaker 2 (34:37):
Course and you're out there talking to other people about golfing.

Speaker 1 (34:39):
Okay, well, you don't have to be at work at
seven o'clock in the morning for seventeen meetings that day,
but you get to be doing something you love and
by the way, also bringing something in, you know, a paycheck,
and you've got some structure around your day.

Speaker 5 (34:52):
You know.

Speaker 1 (34:53):
Even if it's just seasonal employees for certain things like
the ballpark or whatever it is, there's an option. If
there's a museum that you have always loved, your loved
grandkids too, is there part time work there, or even
if the financial component of it isn't part of things,
maybe it's just a volunteer work. But there are options.
The key is to kind of thinking through what they

(35:14):
could be. Here's the all Worth advice. These activities not
only keep you busy during retirement, they may allow some
of you to get some money as you continue to
save and grow your investments. Coming up next, if you
have the opportunity to teach your kids or grandkids about
the value of money, do it. We've got some really
interesting data for you. Next, you're listening to Simply Money

(35:35):
presented by all Worth Financial here on fifty five KRC
the Talk station. If you're listening to Simply Money presented
by all Worth Financial, I'm Amy Wagner along with Bob's spondseller.
One of the things that has been in the DNA
of this Simply Money show from the beginning is advocating

(35:57):
for financial literacy. It is in our DNA we want
you to understand money. It is a powerful tool to
reach your life goals, and we want you to know
how to use it and use it well. And if
you are not having these conversations with your children or
your grandchildren, we have always said you're missing out. And

(36:17):
now there's some interesting data that really kind of puts
some context to this.

Speaker 3 (36:23):
Yeah, I'm looking at a recent bank Right survey that
just came out, which Amy, I think really pretty much
states the obvious that says Americans that grew up with
a strong financial education were one and a half times
more likely to be successful when negotiating pay increases during
their career with their employer. And also, you know, Americans

(36:44):
that were raised with strong financial education were more likely
to implement healthy financial.

Speaker 4 (36:49):
Habits as adults, you know, over their lifetime.

Speaker 3 (36:52):
I mean stating the obvious, but there's some recent data
that confirms that.

Speaker 4 (36:56):
So there you go.

Speaker 1 (36:57):
I think I think the obvious is that if you
have this education behind you, you're going to make better decisions.
But what's new to me to your point, Bob, this
bank great research saying hey, if you have this background,
you're more likely to negotiate a raise. I didn't necessarily
see that one coming. And maybe it's that you have
just more confidence around your money and your financial life. Right,

(37:20):
you know you're worth and you're going to go in
there and advocate for yourself. And this is this is
making sure that positive habits.

Speaker 2 (37:27):
Are starting early.

Speaker 1 (37:29):
Are you making sure that your kids have a job
and maybe you know, for my kids, it was you
have to pay for gas from the time you turn sixteen.
You know, I know other people, you pay for part
of the car, you pay for part of the insurance,
so that they understand money's coming in, but it's earmarked
for certain things. You know, all of these things go
to build a really solid financial foundation.

Speaker 4 (37:52):
Yeah.

Speaker 3 (37:52):
I think the key is anytime any individual is is
tasked with having to handle some money personally have the
responsibility to handle it, they tend to see how it works,
whether that's taxation or the price of gas or any
of those things. And that's how you learn how to
handle money, you know, even managing a credit card. When

(38:13):
you handle money and you're responsible for the for the
pros and cons of decisions, you tend.

Speaker 4 (38:19):
To get better at it.

Speaker 3 (38:20):
And that's why it's important to start early rather than later.

Speaker 1 (38:24):
I know many of you grew up in homes where
money was not talked about. That stop that cycle, break
it now and make some healthy, positive changes for your
kids moving forward.

Speaker 2 (38:33):
Thanks for listening.

Speaker 1 (38:34):
You've been listening to Simply Money, presented by all Worth
Financial here on fifty five KRC, the talk station