Simply Money

Episode Transcript

Speaker 1 (00:06):
Tonight, the darling of the stock market reports its earnings.
Was it everything investors wanted to hear? And what does
it mean to your Floura one K. You're listening to
Simply Money, presented by all Worth Financial Ammi Wagner along
with Bob Sponseller. You know, Bob, we talk about diversity
all the time, right, having a diversified portfolio. But interestingly,

(00:27):
there is one company stock, maybe more so than others,
that can rise the tide, or raise the tide or
lower it really quickly. We're talking about, of course in
video here.

Speaker 2 (00:40):
Yeah, and the video released its fourth quarter earnings, you know,
last night after the close, and the and the news
was very good Amy both on the revenue side and
that income side, both were up almost eighty percent year
over year. That's what I call a growth stock. So yeah,

(01:00):
and normally, as you said, it's a big deal when
Navidio releases earnings, especially after that whole Deep Seek drama
that we talked about at nauseum for a couple of days,
you know, approximately a month ago. And you know, we
can I guess agree some would say that deep Seek
is now a new competitor of Navidia's You know, thinking
they can do everything cheaper and better than Navidia does. Well, I,

(01:24):
as we said at the time, don't count Navidia out.
And yesterday's earnings report kind of confirmed that.

Speaker 1 (01:31):
It's so interesting to me how one month or a
few weeks and the investing world can feel like five years.

Speaker 2 (01:38):
Right.

Speaker 1 (01:38):
It seems like a while ago that we started talking
about deep seek right, came from out of nowhere, and
Video's earnings in that day and actually any kind of
tech stuff that had anything to do with AI absolutely tanked,
and it was like, oh well, we were wondering what
was going to happen to the sector. Here it is
this player that was not even had never even been

(02:00):
uttered by most people. No one had even heard of
this company, and then they're coming in saying, hey, we
can do this cheaper and faster than everyone else. And
I think the question was, oh, what's the impact going
to be on again the stock market? Darling that has
been lifting everyone's four oh a gay for the past
couple of years in the video, and you know the
answer is and I think, man, this goes to show

(02:21):
maybe how well run a video is. They're like, great,
welcome to the party. We're gonna learn from you deep
stick and by the way, we're going to continue to
grow the numbers. Also that they reported last night bared
that out, and yeah, I think there's there's kind of
maybe potentially sky's the limit. Listen, anything could happened. Please

(02:43):
do not listen to this and go all in on Nvidia,
because absolutely anything could happen. But Bob, I'm telling you.
Last night, we're eating dinner and my son sits down
with his plate at the table and he gets out
his phone and he takes a picture of his plate,
and I was like, what the heck are you doing.

(03:04):
AI can now take from a picture and tell you
how many calories, how many fact get grahams, how much
protein your macros, all the things. So here's my fifteen
year old who's trying to gain weight for the basketball
team and he's using AI literally from a picture. All
of that information is instantaneous. Like that's a that's amazing

(03:28):
to me.

Speaker 2 (03:29):
It is amazing. I've never met your son, Trey, but
I need to meet that dude sometimes. Yeah, he sounds
like an interesting guy to me in a good way. Yeah,
I think that's great. So hey, just sticking with you know,
the main the main points I think to draw out
of this Navidia earnings announcement. Navidia brought in eleven billion

(03:50):
dollars of revenue in the last quarter from their newest
Blackwell AI chips, and that's about a third of their revenue,
you know, from their newest chips. So the way their
CEO kind of addressed the entire deep Seek thing is
he he just said, hey, that you know, everybody's using
deep Seek and he's his quote was it is igniting

(04:13):
global enthusiasm. And you know, to the point that you
brought up at the at the top here on the show,
I think it is going to be a situation where
these I these reasoning AI models are going to require
more computing power, more chips. It sounds like more chips
made by Navidia, and it could very well end up being,

(04:35):
you know, a rising tide lifts all boats type of situation.
They did not seem concerned about deep deep Seek whatsoever,
and I guess that leads to my last point. You know,
you have to differentiate between the manufacture of the actual
chips that power AI and the actual applications themselves, and

(04:56):
that that's what we need to keep an eye on
here and again the video a great quarter. They're not
going away anytime soon. But don't also on the flip side,
don't treat navidio stock like your ATM machine because it
can be folile as we've seen over the last sixty days.

Speaker 1 (05:13):
You're listening to simply money presented by all Worth Financial.
Immi Wagner along with Bob Sponseller, latest and VideA earnings
are in, numbers are good, and I think markets have
fully digested. Hey, there's a new player on the scene,
Deep Seek, and what the impact of that could be.
Now I do not pretend to be an AI expert,
but I have certainly done my fair share of research

(05:35):
on these things. My understanding of the difference between the
chips that Nvidia is putting out there versus maybe what
deep Seek is creating is Invidia chips have already read
every book in the library. They already have all the
information right. It takes time to program that. It takes
a lot of power to have that kind of knowledge

(05:58):
ready at the fingertips. The difference with deep Steak is
these chips know where to go in the library. So
they may not already have the information, but they know
directly which book to go to in order to get
the answers. And I think many of us, as you
think about it that way, it's like, well, gosh, there's
probably a place for both things. And I think that's

(06:18):
what Nvidia is kind of saying least, and in their
earnings call was like, listen, our chips. Chips are really
really advanced. We've been doing this for a while now.
If you need AI to reason make some inferences from
some of the data that's being provided, you're going to
need our chips. And so our chips are always going
to have a place at the table, you know. So

(06:41):
I think it was a really good earnings call, probably
good for a lot of our four oh one ks.
But again, this is one company, and Nvidia is one
company that we've been talking about a lot over the
past few years. Bob. In the Magnificent Seven, you know,
it was like seven companies your Metas, your Amazon on,
your Tesla, y'r Nvidia that have largely kind of been

(07:04):
rising the broader, raising the broader stock market and now
not so great.

Speaker 2 (07:12):
Yeah, those seven companies that you just read off helped
boost the stock market fifty four percent over the last
two years. And we've been talking about, hey, eventually there's
going to be a reversion to the mean here. The
SMP is not going to go up you know, twenty
three twenty four percent a year. And as we've also
talked about, you know, these mag seven stocks represented about

(07:33):
over thirty percent of the market cap of the broad index.
So and I guess the third point and heading into
the last earning season is they were kind of priced
to perfection. Anytime you've got one of these high growth stocks,
any little movement off of that earnings, that expected earnings,
you know, trajectory is going to knock the stocks down

(07:54):
a little bit. And that's what you saw, you know,
this quarter and why you've seen a little bit of
a market correct But you know, as a reminder, the
S and P five hundred is still up for the year.
You know, Navidia after that Deep Seek News went down
like eighteen percent in one day. At the end of
the close today, Navidia is going to be right about

(08:15):
even for the year. So these stocks aren't going away.
You just have to understand that there's going to be
some volatility because these things aren't going to shoot to
the moon, you know, uninterrupted you on a continual basis
and that that's really all this has been so far
this year. Amy, in my opinion, is just a healthy pullback. Thing.

(08:36):
Has got a little bit ahead of themselves here in
tech land.

Speaker 1 (08:40):
Well, I think you have to expect headwinds at some point. Right.
So Meta has done pretty well because there's some speculation
out there that it's open source version of AI is
going to give them some pretty good lift, right, some
pretty good profit growth. However, you've got Apple, you've got Tesla,
both basing concerns right about a trade war with China.
Most of their products many know a lot of the

(09:03):
parts and components of those are made in China. Now,
speaking of Apple, they just announced they're going to work
with partners to open a huge AI server manufacturing facility
in Texas in Houston, slated to open next year. And listen,
this was part of what President Trump was hoping to
do with this trade war was to say, listen, you

(09:26):
guys have made it where you know, I understand you
think it's cheaper for you to go elsewhere where. We're
going to make it expensive, more expensive for you to
produce parts elsewhere and bring them into the US so
that you create jobs here in the US, and I
think it appears like maybe Apple might be the first
domino to fall kind of in that sort of negotiation
back and forth.

Speaker 2 (09:47):
And you never know what goes on in these discussions
behind closed doors, you know. And President Trump is getting
a lot of you know a lot of people claiming
to be upset with some of the things that he's doing.
But you know, this situation with Apple, I think you
got to look at this as a win win, and
kudos to President Trump and the leadership of Apple, you know,

(10:07):
getting together and getting something done here. I mean, this
is going to be a five hundred billion dollar investment
in the United States over the next four years, and Amy,
that was an investment that up until this year, was
scheduled to happen outside of the US. It's going to
be approximately twenty thousand jobs, yeah, that are going to
be in Texas that otherwise would have been in probably Mexico. So,

(10:31):
you know, again, kudos to both parties getting together. I
see this as a win win. Twenty thousand high tech
jobs in Texas is a good thing in my opinion.

Speaker 1 (10:41):
Well, and as we kind of digest this news about Nvidia,
the Magnifice and seven each of these individual companies and
what they might be currently dealing with or facing. As
an investor, obviously, you can't control any of that. What
you can control is what you can control, and that
is kind of how you are going to respond to
these headlines. If you have a long term financial plan

(11:04):
in place that's relying on some market growth, well then
you need to educate yourself to understand fully kind of
the cost of admission to get yourself from where you
are now to those goals within that plan is time
in the market, and that's going to mean short term volatility.
But when we look back historically, what we know is
that over time, right, the market always rebounds when it's

(11:26):
down one hundred percent of the time to new highs.
And I think that's really important to keep in mind.

Speaker 2 (11:33):
Yeah, it comes back to what we talk about all
the time, a diversified portfolio. If you've got all your
money in these high growth stocks, you're going to be
taking on more volatility than you probably bargain for. And
that's why it's important to have some high growth stocks,
some high dividend stocks, some bonds in your portfolios, some cash,
maybe even a little bit of gold, you know, you

(11:54):
have non correlated asset classes and non volatile asset classes
mixed throughout your portfolio, and then you really don't need
to worry or care about all of these short term
you know, headlines that just permeate the media to try
to scare us or make us more greedy than we
should be.

Speaker 1 (12:14):
Here's the all Worth advice. Companies like Apple are always
going to aim to make a profit good for long
term investors, but listen relying too heavily on just a
few stocks, even the stock market. Darling Navidia, you're listening
to Simply Money, presented by all Worth Financial. Here in
fifty five KRC the talk station. You're listening to Simply

(12:47):
Money presented by all Worth Financial. I mean Wagner along
with Bob spawn Seller. If you can't listen to our
show every night, you don't have to miss the thing
we talk about. We have a daily podcast for you.
Just search Simply Money. It's right there on the iHeart
app or wherever you get your podcasts. Coming up at
six forty. Three important steps to take if you're thinking
about maybe moving somewhere else in retirement. Okay, I love

(13:09):
the Olympics, I don't necessarily watch all of these sports
all the time during the year, but I'm telling you,
when the Olympics come on, like I am all in
on all the swim events, all the running events. And
you know, it's interesting because when you're watching these these relays,
especially obviously the running relays, it's so effortless when they
pass along that baton. What we're not seeing is how

(13:32):
long they have planned, in practiced for that handoff. And Bob,
I think it's kind of similar to, Hey, you've been
working really really hard to build your assets, and what's
going to happen when you're no longer here as you're
passing your wealth, what you've owned earned over the course
of your lifetime onto the next generation.

Speaker 2 (13:52):
This is a critically important topic that we're about to
cover here, Amy, and we're talking about the Great Wealth Transfer.
We talk about this all the time, but over the
next ten years, eighty four trillion dollars is expected to
be transferred from the Baby Boom generations down to the
next generation. You know what could go wrong? That's a
whole boatload of money, eighty four trillion dollars. Well, the

(14:15):
problem is a lack of estate planning and a key
recent survey by Trust and Will, which is a reputable publication,
shows that while eight and ten Americans recognize the importance
of estate planning, only three and ten actually have a will,
only one in ten have a trust of any kind,

(14:36):
and six and ten folks have no estate planning documents
whatsoever of any kind, will, trust, power of attorney, healthcare proxies.
Nothing that is shocking to me and concerning to me. Amy.

Speaker 1 (14:51):
It's a bit of a disconnect, right, I mean, the
research shows, oh, I know I should have these things,
but I don't have them. Yeah, and you know, listen
what happens if you don't have them in place? Well,
you're gone. It's not going to affect you. But listen,
you're loved ones who are left behind. Everything that you've
earned will go through probate. The state will be deciding

(15:12):
what happens to it. It's a headache, it can be
a nightmare, it can cost a lot of money, and
it can drag out for months and months and months
on end. I have seen some of my clients dealing
with you know, parents' estates that literally like have them
to their knees because it's just so frustrating, you know,

(15:35):
And I think of a really good friend of mine,
Bob her son was estranged from an uncle like he
just they hadn't They hadn't spoken in years. There was
a fallout between the son and the dad. And anyway,
what ended up happening was that uncle had quietly amassed
a lot, a lot of wealth and his plan for
that was that it was going to go to charities

(15:57):
that were really near and dear to his heart. The
problem was he had drawn up a will and never
signed it. That was the one missing step. What happened
even though he had already laid out exactly what he wanted,
there was a document that had it. Those organizations that
he wanted that money to go to, they didn't see
a dime. They all went to the nephew that he

(16:17):
hadn't spoken to in decades. Right, And so this is
why listen, as you're listening tonight, if you have thoughts
around what's going to happen to your money, you better
put shape to that.

Speaker 2 (16:30):
Yeah, And as I listened to you tell that story, Amy,
you know this is a good point. This is a
good time to remind folks that you might have the
best will and trust ever drafted, but your iras four
to one k's, you know, life insurance. Anything that passes
through beneficiary designation does not go through probate, does not
go through your will. And you better have updated beneficiaries

(16:55):
named both primary and contingent or you know, those assets
it end up going to someplace completely different than you
ever thought of. And Amy, I thankfully over the years
and years I've done this. You know, almost all of
my clients now have really solid estate plans. But I
go to the point now of telling any new perspective
client that comes in to meet with me, if you

(17:18):
refuse to do an estate plan, I'm not going to
take you on as a client. And here's why. If
you don't do the job of getting in a state
planning done, you know you and I Amy are going
to have to be the ones to clean up the
cluster that happens. Yeah, after they pass away. And I've
had to go through that process with folks, and it

(17:38):
is not fun. It can get very contentious between you know,
folks left behind. It can get very expensive going through probate.
It's a mess, and it's a mess that's easily fixed
and avoided if folks just do their job, you know,
take on the responsibility of putting in a state plan
in place. I can't. I can't state this any stronger

(18:03):
I think than I just have. It's critically important.

Speaker 1 (18:06):
Well, I agree, and I will get a lot of
people coming into my office for the first time who, yes,
they have a will that they put in place when
their kids were babies, right because they were worried about
that what happens is something happens to us where the
kid's going to go, you know, But at that time
they didn't have anything really in assets. Now, well, now
their kids are out of the house and grown, that's
a completely outdated document. And I'm like, listen, it is time.

(18:28):
And I understand this is not something that's necessarily fun
to do or to address, but I do think it
is a radical act of love to your loved ones
to go through, meticulously through the steps to make sure
not only do you have these documents set up, but
bob to the point you're making that your beneficiary supported.

(18:50):
If you have a trust that's set up right, that
it's set up properly, that the assets flow through it
in the proper way, so that it's not all okay,
well here's the trust, but there's actually nothing in it.
So there are steps and I understand it's not a
fun process, but I also think there's a beautiful peace
of mind that comes from, Hey, we took care of this,

(19:11):
and now my wishes are spelled out, and when I'm
no longer here, I know that my loved ones will
receive the money in exactly the way that I wanted
them to, and also without a lot of headaches and
heartache that could come along with that. Here's the all
Worth advice having an estate plan. It's really not just
about passing on wealth. It's about protecting your loved ones,

(19:32):
but also minimizing taxes and ensuring that your wishes are
carried out exactly as you want them to be. Coming
up next, all Worst Chief investment Officer Andy Stout is
joining us. We see this often. You've got a lot
of stock in one company. Hello, all of you p
and gers. What do you do if you find yourself
in that situation? Right? What's the risk there? We'll talk

(19:54):
through that. You're listening to Simply Money presented by all
Worth Financial here on fifty five KRC, the talk station.
You're listening to Simply Money presented by all Worth Financial.
A Memi Wagner along with Bob Spondseller in the Cincinnati area.
We often come across investors who have a concentrated position,

(20:15):
so think a lot of stock in particular companies. Right,
We've got some great, big, strong, hometown companies that we
believe in. I'm just gonna throw Procter and Gamble out there,
because man, do I see it all the time. But
you know, I think over the past couple of years,
we've seen people fall in love with tech companies. I

(20:39):
have a client who has a large position in Amazon
right now, and so this is something we see all
the time. And the problem is when that company is
doing great, so are you. And when the company is
not doing so great, you're not sleeping at night. So
if this is a situation that you are in, right,
we see investors in this all the time. We are
joined by and Stout, our chief investment officer, for kind

(21:02):
of a news series that we're starting here on the
show Investor Solutions.

Speaker 2 (21:06):
Right.

Speaker 1 (21:06):
If this is something that's you're in this boat, how
do you handle it? So, Andy, this is not something
new to you whatsoever. You know, We've got lots of
clients here at all Worth that come to us in
this situation. Let's talk about the conversations that we're having
with them. If someone is coming to us with a
lot of stock, right, a lot of their portfolio exists

(21:29):
in one particular company, how can we help them diversify.

Speaker 3 (21:33):
That in many ways? I mean Procter and Gamble is
a classic example. I mean you mentioned them, you know,
at the top here, and if you look at where
Procter and Gamble, if you go back, you know, ten
years ago, it was around forty dollars a share, which is,
you know, pretty insignificant compared to you know where it's

(21:54):
trading at today. And so you have these gains build up, right,
and now many people want to know, Okay, how can
I protect my gains or how can I reduce my
exposure without having a large tax bill? And these are
real concerns, and Amy and Bobby you are seeing them
all the time because one thing that pretty much every

(22:14):
single person at least that I know, can rally around is,
you know, let's pay lesson taxes or how can we
you know, not pay so much to the I R
R s so that if.

Speaker 2 (22:25):
Well, people love that dividend too, Andy.

Speaker 3 (22:28):
Yeah, the dividends a good thing. You don't want to
give that up, but you probably rather you know, not
pay Uncle Sam more than uh more than you have to.
So how do we do that? Right? So, one thing,
when when you think about that, it's not just about
paying lesson taxes, because ultimately it's not necessarily about reducing

(22:51):
how many shares you have, but it could also be
about minimizing the risk you have there. So when you
think about it, yes, we can you know, have uh
predetermined ways to exit a position in a tax efficient manner.
Another thing that we can do, or you know, an
advisor can do, is essentially make that single risk more

(23:14):
market wide risks. So instead of having exposure to one
stock and which could you know, be very volatile, could
go who knows where, maybe we can transfer that risk
from a single stock to the broad market. So there
are quite a few ways that we can handle that
as well. So what I'll first talk about is, you know,
how an advisor can actually reduce the number of shares

(23:36):
in a tax efficient manner. So when you think about that,
there's a quite a few ways to do it. The
one of the more you know, one of the easier
ones to do, Amy and Bob is if you have
someone who happens to be charitably inclined, the easiest thing
you can do is donate that. So this could be

(23:57):
like a through a donor advice fund, or you know
of some other you know, mechanism that you can essentially
donate a portion of that stock, because if you're going
to donate money anyway, why not just donate the appreciated stock.
There you're essentially eliminating any sort of tax exposure from
that donation and reducing or increasing your overall tax basis

(24:18):
and lowering your future taxes. So we got donations. That's
a really important one that I think it's overlooked a lot, right.
The second one is creating a plan to exit out
of the position over a period of time through aggressive
tax loss harvesting. And there are certain ways that companies

(24:41):
and advisors can help with this, certain types of programs
that essentially generate losses and take those losses to offset
gains in other areas. So you know, we can do
this through programs, you know, by tax smart trading as
an example, where you look to look for law in
other positions and then you know, sell those but in

(25:03):
order to not reduce your overall exposure. Maybe you go
into something similar but not identical for i RS reasons. Obviously,
that allows you to maintain your overall exposure, bank those
losses and use those to offset gains on the individual stock.

Speaker 2 (25:19):
A big thing with the with the charitable giving that
I don't think you mentioned, is just a reminder that
you get you get a tax deduction for the full
fair market value of the stock that you give away
to your donor advised fund or charity or chosen charity.

Speaker 3 (25:33):
Right, Andy, It's just like it's just like donating cash
in the same amount, and you can definitely have that
deduction on top of that. So it's a it's a
really good way to essentially help others while also helping yourself. Now,
we talked about ways to reduce your tax exposure by
actually exiting out of the shares. Now when we think about, well,

(25:56):
maybe you want to keep the stock, but you want
to reduce your overall exposure.

Speaker 1 (26:00):
I'm glad you're making that point. Andy, I'm glad we're
talking about this because you know, we can't make our
investors right. Even though we're saying like, hey, maybe being
diversified is better. Lots of people have very strong even
sometimes emotional ties to companies. Maybe it's my grandfather bought

(26:20):
this stock said you know, you know they they willed
it to me and told me never to sell it.
Like I've heard, I've heard every story on the spectrum
about why someone needs to keep, you know, a position
in a certain company, and so how then can we
help kind of protect them against themselves at that point.

Speaker 3 (26:39):
Yeah, there's a couple of ways that we can do this.
One of the more common ways using stock options. Now,
stock options can be complicated, so you definitely want to
make sure that you fully understand, you know what you're doing.
But one way that you can essentially reduce your risk
while also you know, keeping that keeping the underlying stock

(27:02):
is you know, employing without going into the weeds, i'll
call an exchange fund replication strategy. So using stock options,
which are calls inputs, you can essentially mimic an underlying
index like an S and P five hundred and at
the same time, you can offset all of the risk

(27:22):
of the stock going up or down doing what's called
a caller. And again you want to have a long
conversation with an advisor about this because stock callers and
stock options can be a pretty pretty complicated to fully
understand without going into the weeds. So that's one thing
that you can use as stock options do so maintain

(27:44):
that procter and gainable position, but eliminate that company's specific risk.
And you don't have to use just stock options for that.
You can also use some other strategies that are out there,
but stock options are probably one of the more are
well known ones to in order to maintain your exposure.

Speaker 1 (28:04):
Andy, these are the conversations we're having in our offices
day in and day out. Right, someone coming to us
with a large part of their portfolio in one individual
company and one individual stock, you know, So we're having
these conversations, how do you mitigate this risk? What are
your options? Very much appreciate your insights on how best
to handle this. You're listening to Simply Money presented by

(28:26):
all Worth Financial here in fifty five KRC the talk station.
You're listening to Simply Money presented by all Worth Financial.
I mean you Wagner along with Bob's sponseller. Listen, do
you have a financial question you and your spouse are
not on the same page about, or maybe it's just
keeping you up at night, right, you can't figure out

(28:47):
the best way to handle that. Or maybe it's your
getting closer to retirement and your buddy's doing something and
you're wondering if it makes sense for you. Well, there's
a red button. You can click them while you're listening
to the show. It's right there on the iHeart app record. Question,
it's coming straight to us. How often have you thought
about maybe going somewhere else in retirement. You can't see

(29:08):
me right now, but I am raising my hand because
I hate January in Cincinnati, and I always think, oh,
can you imagine how amazing it would be in retirement
somewhere warmer and sunnier. I don't know, maybe Florida. Bob,
I know you've thought through these things before and probably
had a lot of clients do the same thing.

Speaker 2 (29:29):
Yeah, and what we're talking about here is peeling back.
I guess the uh for lack of a better term,
the romance and the dream world scenario where we're in
our cubicle looking out the window and it's thirty seven
degrees and raining in Cincinnati, and we're you know, thought
turned to where would I rather live? That part's easy

(29:49):
to think about. What's not so easy to think about,
and unfortunately, what a lot of people don't think about
is some of the you know, blocking and tackling and
reality involved with actually moving somewhere else. So let's get
into a few of those things, you know right now.
First of all, I like with anything that you do financially,

(30:10):
I think we have to ask ourselves the why. And
in terms of living and moving somewhere else, I would
say a key question to ask is what are you
trying to move away from? And what are you trying
to move toward? And just make sure that that destination
that you're considering is going to check all the boxes

(30:31):
for you. That would be a good place to start
know your why. You know.

Speaker 1 (30:37):
You know, my husband and I, as you know Bob,
have talked about this many times through the years, our
goal so we were on the same page. We communicated
well about it. We created this thought in our mind
of listen, we want to go somewhere south where we
can have water close by. Right. My husband always says,
I want to walk through the backyard, jump on the
boat that's going to catch the fit that we will

(31:00):
eat for dinner that night. That, to your point, is
a beautiful thought, a beautiful picture it is a romanticized
version of retirement. And now we have to talk about
the reality of that, which is, Okay, does that look
like Florida. Let's talk about the insurance rates in Florida
right now, right like. So it's like, yes, you've got

(31:21):
this picture, but man, you got to dig a lot
deeper than that and say, Okay, what are we going
to face if we really do it. What's property value
look like? What if we get there and we don't
like it, what's resale looking like in that area? What
else is around there? What does you know insurance look like? Taxes?
All of that has to be part of even I

(31:42):
think initial conversations around this, because you don't want to
go down, you know, down that path too far and
then be like soul crushing that you can't actually do
it because you never really thought through the logistics of it.

Speaker 2 (31:52):
For sure. And another another thing to consider is healthcare
considerations and amy you know, in Cincinnati, say what we
want to say about the weather and all that, but
we are really blessed in Cincinnati to have an outstanding
healthcare system. And I think a lot of people take
that for granted. I know folks that have retired to Arizona,

(32:14):
Florida wherever, they still fly back to Cincinnati to see
their doctors because they just have not been able to
replicate the excellent healthcare they have in Cincinnati. So you
got a factor in access to doctors, healthcare insurance. You know,
what's that going to be like in your new location.
If folks are considering perhaps retiring somewhere internationally outside of

(32:39):
the United States, that's a whole other can of orbs
to examine, you know, in terms of health insurance. So
healthcare considerations are a big one because last time I checked,
when we retire, that means we're getting older, and as
we get older, we're gonna need most likely more and
more healthcare and you better make sure you have good
access to it and then it's affordable.

Speaker 1 (33:01):
Yeah, And I think what you have to think through
with your retirement is there are also different stages of retirement.
You know, those first few years we call those your
go go years. Hopefully that's when you're you know, you've
just retired and you're younger and health is better and
you just want to go. Maybe you've got all your
bucket list items right, so you know, moving somewhere that's

(33:21):
farther away from doctors or specialists doesn't sound so daunting.
Let's fast forward a couple of decades, right, still retired, Obviously,
now healthcare is more of an issue, and maybe going
outside and playing tennis and fishing less of an option.
And so, you know, are you still going to be
comfortable where you moved?

Speaker 2 (33:42):
You better start taking fishing lessons now, because when your
cousin gets old and decrepit and can't go out and
catch your dinner every night, guess who's going to be
out there doing it. It's going to be eighty.

Speaker 1 (33:52):
You got to eat you.

Speaker 2 (33:54):
I don't want you to go hungry in your old age.

Speaker 1 (33:58):
Remember I said that that's what he was thinking. I'll
be outside playing paddleball while he is catching the fish.
But you know, yeah, I think it's it's important to
think through these things of Hey, this might sound good
for the first few years of retirement, but is this
actually a long term fit for us? And then I
think another thing is are you going to have community?
Are you gonna have social support in the new place

(34:20):
that you move? You know Steve Spovac, who you know
retired a while ago, who used to co host the
show with me. Talked all the time about his dad,
who moved to Florida after he retired again, had romanticized
the thought of it. Moved down there, was miserable, he
hated it. Yeah, the weather was great and the sun
was always shining. He didn't have anyone down there that
he cared about. He was bored all the time. He

(34:41):
wasn't even taking advantage of it because he wasn't going outside.
He didn't have anyone to hang out with. And so
I think, yeah, you know, it's great to go to
these places for vacation for a few days, but if
you are really thinking about moving somewhere, take a practice
retirement there. Not staying in a hotel where someone's you know,
cleaning your room, a whatever that looks like for you.

(35:01):
Rent a property in the neighborhood where you're going to
stay and stay for a couple of weeks. How accessible
is grocery shopping and getting around you know what. We
were just in the thirty A area and destin late December,
early January, and I was like, this is fantastic, And
then my husband was like, do you remember what it's
like down here in June? It takes an hour and

(35:23):
a half to move two miles on this strip of
thirty A. Do you want to deal with that when
you're trying to get to the grocery store? Absolutely not right.
Do you know what peak season is going to be?
If it's a touristy area, that's another thing to think through.
So I think there's just a lot more, you know,
do your trial runs, take some longer visits. Make sure
you've thought through this. Here's the all Worth advice. Relocating

(35:44):
in retirement could be an exciting opportunity and a new chapter.
But before you start packing your bags, make sure you
are also planning carefully. Coming up next, some Wagner wisdom
for you. And this is another benefit of working with
a financial advisor, when all of a sudden, a financial
opportunity or a shock that you weren't thinking about comes

(36:06):
from out of the blue. You're listening to Simply Money
presented by all Worth Financial Here on fifty five KRC
the talk station. You're listening to Simply Money presented by
all Worth Financial. I Memi Wagner along with Bob sponseller.
It's time for some Wagner wisdom, if you'd like to
call it that. Bob I recently got a call from

(36:27):
a client of mine who was like, hey, this came
from out of the blue. We had our financial plan
in place, we were planning on retiring in a few years,
and this house in this neighborhood that we love by
a golfing community where we play golf came up and
we need to figure out whether it makes sense. And
I started thinking, and she was like, you know, the

(36:48):
husband thinks this, and I think that I think we
can do it. He's worried that we can't. And I thought,
what a blessing, honestly that they have an advisor and
also a financial plan that we can go back to.
These financial plans they are never hey, locked in stone,
because things are going to come up. Life well, we
live it and sometimes there's great opportunities, sometimes there's not

(37:11):
so great things that happen. We can look back at
your financial plan and say, can we do this, how
can we handle it? What does the newest version of this, like,
what does the pivot look like? And it can be
a huge, huge asset. And I don't know what it's
going to look like for you, but I guarantee something's
going to come down the pike that's going to change
your plan, And what a great thing that you have

(37:33):
not only the plan in front of you, but someone
who's trained to help you figure out how to best navigate.

Speaker 2 (37:37):
That exactly, Amy, And as you share that story, that
was the first thought that came to my mind. Number One,
good for your clients for actually calling you before they
just instead of the phone call that says, hey, we
bought this house, we.

Speaker 1 (37:53):
Have it's going to work out.

Speaker 2 (37:54):
Can we come in and talk to you about it.
Good that they called you in advance to just kick
the thought around with you. And then second, it's great
that you've built such a solid relationship with them where
think about it, they're trusting you to help guide them
through one of the most important financial and life decisions
they're ever going to make where they live in retirement.

(38:16):
So that's a great story because now you've got an
opportunity to sit down and truly help them take the
emotion out of the decision and hopefully walk away with
a good, solid decision that's going to help them live
a rich and meaningful retirement.

Speaker 1 (38:31):
Yeah. And I think you and I could come up
with hundreds, probably thousands of different scenarios that we've seen,
just like this one. One of your grown kids has
an opportunity to go to some kind of grad school
or be part of something, and you're trying to figure
out if you can financially help them, or you know,
you've been asked to go to Europe with some friends
of yours. Had that was not even on your radar,

(38:52):
can you afford it? It is so smart then to
have someone that you can work with. Thanks for listening.
You've been listening to Simply Money presented by all Worth
Financial here in fifty five k r C. The taxation