Retirement Planning Show

August 10th, 2024

Episode Transcript

Speaker 1 (00:00):
Live from the wgy iHeart Studios. Welcome to the Retirement
Planning Show with your host Dave Kopek from the Retirement
Planning Group.

Speaker 2 (00:09):
Every week, Dave.

Speaker 1 (00:09):
And his team discussed the ways they can help people
make informed decisions about a wide array of retirement planning
information that can support you and developing a more certain
financial future for you and your family. Now it's time
for Dave Copec WGY's Retirement Planning Specialist.

Speaker 3 (00:57):
So I've been looking too hard, of waiting too long.
Sometimes the don't word of bun.

Speaker 4 (01:12):
No.

Speaker 5 (01:12):
It's a matter of time when you love.

Speaker 2 (01:17):
Good morning, when you love. Because everybody's safe. Pretty nasty
out there yesterday afternoon. So hopefully you made it through
not only the weather but the volatility in the markets
this week. It's really been a week to remember. So

(01:39):
what was the debbie, Betty Bertha? What was the name
of this storm, Betty Zach something like that. Doesn't make
any difference what the name was. Hopefully you're safe and
I know that there's flooding. We had a golf outing
today for my brother in law who died of cancer.
Not going to happen. It's not going to happen. They

(02:01):
canceled it yesterday afternoon, and I got people in from
all over God's creation, So I guess we're going to
have to have a picnic instead of a golf outing.
So a little disappointed this morning, A little disappointed. A
lot of hard work done by my wife and other people,
and it's not going to come to maturity, at least

(02:24):
not this weekend. So talk a little bit about the markets.
You know, been talking about volatility where it's going to
kick in. And I couldn't have been more right than
this week as far as the bout of volatility. But
you got to be patient, folks. You know, don't panic

(02:50):
proper allocation of your money. Market declinines are not comfortable.
They're uncomfortable. And you know, we've been pretty lucky so
far in twenty twenty four as far as volatility, but
you got to make sure that you're staying in your
acid allocation. If you stayed in bonds, you're going to
be very happy because bonds have rallied dramatically over the

(03:14):
last two weeks. But the bottom line is that there
is no way to spin a thousand point drop in
one day in the Dow. It stinks, doesn't feel good,
causes high anxiety for a lot of people. But as
I've said, after forty three years of doing this, you

(03:38):
don't sell when the market is selling off. You sell
when the marketing is gaining and you're dancing in the
street and you're harvesting profits. But the thousand and thirty
four points was the twelfth largest single day point decline
on record, so not unchartered water. We've been here before.

(04:05):
So there's been twenty five total daily moves in the
doll of more than one thousand points. I probably have
seen most of them in my forty three years. It's
not fun. As I said, market declients of any size,
of any size whatsoever can be unsettling. So the three

(04:25):
percent decline that we saw on the S and P
five hundred on Monday captured significant attention. Of course, larger
amount of I would say probably indigestion as far as
what's going on. And that leads me to my topic
this morning, a little bit about this unsettling election that

(04:46):
we have. And I'm not a political person. I've never
been on radio talking about politics, and I'm going to
stay out of politics. I'm gonna do an observation. An
observation is that by him, what quarter of an inch,

(05:09):
an eighth of an inch, we'd have a dead former president.
We have the other side of the fence calling Republicans
weird weirdos. You know, those Republicans are weird and this

(05:30):
high I guess you could call verbatim. That goes back
and forth as far as you know who's good and
who's bad. What side of the fence are you on?
Is in my opinion, it's out of whack. It's out
of whack. And at my age of age sixty eight,

(05:55):
you know, been through a lot of elections, saw a
lot of pre residence, whether they're a Democrat or Republican.
I respected, you know, every single one of them because
it is the president of the United States. But this
whole situation is wacky. That's what I would say. It's

(06:16):
over the top. And I've gotten to the point, and
I've mentioned it before. I don't even watch the news anymore.
It causes too much stress and anxiety. And I'm always
flabbergasted by some of the statements of our politicians, how
they think they can work together and shake hands and

(06:38):
cross the aisle and work together, which I think most
of us Americans want, But I just don't see it.
I think it's going to get worse. I worry about
the DNC convention. I worry about what could possibly happen there.
The unthinkable is thinkable in today's world. And you know,

(07:00):
you just had a situation where there was another person
that was trying to assassinate Trump that they found the
girl the singer isis was trying to blow up her concert.
I don't know if they were trying to kill her
or not, but officials stop that. So we live in

(07:22):
a different world today. And the thing is is that
I know a lot of our clients, a lot of
our clients. I've been hesitant to get overly aggressive in
the markets, and for two things, because I think that
we're in uncharted water. I also think anytime I get

(07:45):
five or six percent, I'm fixed income. I'm a pretty
happy camper. I'm never trying to hit home runs. All
I want is singles, maybe a double every once in
a while. And the like I said, we are, you
know in a market right now that I think, you know,

(08:08):
we could pull back more. That's exactly how I feel.
I think headlines will drive the market. And as I've
said a thousand times, you need to think long term. Okay,

(08:28):
The emotional element of market declinents can make them feel
like a marathon as far as anxiety and stress. So
you're not in a hundred yard dash, You're in a marathon.
Most of us that go into retirement are going to

(08:49):
be in retirement for fifteen, twenty thirty years, God willing,
so investors can find comfort right that. Typically, typically these
types of corrections are volatility in the market last a
relatively short period of time, so be patient. We'll talk

(09:14):
a little bit about some opportunities that are out there
right now. We got a lot of great things going
on at the retirement planning group. I'm headed to Florida
again this week for a little bit of business and
then also to take my daughter to college at FAU.
I'll be flying out Wednesday morning, coming back Friday night.
So we're busy. Look forward to going down. My daughter

(09:40):
is going to have a new chapter in her life,
a new opportunity which my wife and I will take
her down to and hopefully she will embrace it. Seems
to be a beautiful era poker ratan everybody that I've
talked to, actually my cousin, my cousin's son, is going
there who They live in Palm Beach and her son's

(10:04):
going to school there at FAU and they love it.
They absolutely love it. So I'm gonna try to get
the opportunity to either have lunch or dinner with them
and sit down and maybe he can give her some
tips as far as the campus and what's available outside
the campus. So all right, I'm here live. I'm going

(10:26):
to be here until eight o'clock this morning. Droiella is
going to be coming in at seven point thirty. He's
going to take the reins from eight to nine. I
was heading to the golf course. I'm not going to
head to the golf course now, but I'm going to
head home and have breakfast with my family and friends
that are in town. But if you have any questions
at all about the markets, about investments, iras, long term

(10:49):
care legacy that you wish to leave your loved ones,
it's one eight hundred talk to WGY. That's one eight hundred,
eight two five fifty nine forty nine. Again, we are
the retire Planning Group. We've got five locations throughout New
York State. We do a lot of work with major corporations,
National Grid Bimbo, bakries Ge, etc. As you're quite well aware,

(11:13):
we believe in getting ahead of the curve. So if
you're contemplating retirement, it's sooner rather than later. The quicker
you get involved with it, the better off you're going
to be. Met some wonderful people this week radio listeners
to in particular that we had some chuckles with. They're
both hairstylists, just really great people, really great people. They've

(11:36):
been listening for a while. I basically said to the wife,
I said, what took you so long? She's been listening
to this show for a while. But it's always nice
to meet listeners that end up becoming clients. And I
suspect there's a lot of you out there right now
that possibly would be picking up the telephone and give
us a call and see what we can offer at
the retirement planning group. You know, we are going to

(11:59):
be around a long time.

Speaker 6 (12:02):
You know.

Speaker 2 (12:02):
One of the things that you have to think about
when you build out a retirement plan is the soldiers
that are underneath the guy that's run on the show.
Yes I'm the president, but I'm just part of the team.
But I've got Chris McCarthy I've got Nicholas Dumas, I've
got my son, Christopher William, and we've got a lot
of firepower, a lot of experience, and we're going to

(12:24):
be here for decades. So if you're looking for a
team that's going to be around for a while, I
think it's important that you look at the Retirement Planning
Group because we have a team. We're going to be
around for a while, and that gives comfort. Especially it
would give me comfort as a male to make sure
that my wife is protected and my children, and there's

(12:44):
going to be individuals there for many years to come
in order to facilitate the plan that we put in place.
So we're gonna be right back. I'm Dave Kopek, God bless,
Hopefully everyone is safe out there and we're going to
take our first break. Eighty six percenters. Do you know
that eighty six percent of the population has no defined
benefit pension plan. For most of us, we have to

(13:06):
take our life savings and create a paycheck for the
rest of our lives in retirement. What is your plan
for retirement income distribution? How you manage your assets during
the most critical years of your lifetime. Nobel Prize winning
economist William Sharp has called retirement income distribution the nastiest,
hardest problem in finance. He points out that investment, uncertainty

(13:27):
and mortality can derail the most careful laid out retirement
income plan. Call our offices today to start the process
of building a retirement income distribution plan. After forty one
years of being in the financial services business, you need
to start taking action to start building your own personal
retirement income distribution plan. How do you do that? To
take action? Five one eight five eight zero nine one nine.

(13:49):
That's five one eight five eight zero one nine one
nine or RPG retire on the web. Don't procrastinate, motivate
to start building your retirement income distribution plan five eight
zero one nine.

Speaker 7 (14:02):
We're here live in studio. If you have any questions,
please call one eight hundred Talk WGY one eight hundred
eight two five five nine four nine. Want to talk
with Dave after the show Call five one eight five
eight zero one nine one nine.

Speaker 8 (14:21):
Oh Mama, I'm in for my life from the long
arm of the long long man is putting into my
running and I'm so far from my home. Oh Mama,

(14:43):
I can hear you crying.

Speaker 2 (14:46):
You're so scared and other long hang man is coming
down from the gallows.

Speaker 8 (14:56):
Ana don't have very long?

Speaker 2 (15:00):
All right, all right, I'm back. I'm Dave Kopek, the
president of the Retirement Planning Group, my best friend, good
buddy of mine that's been in the financial services business.
Maybe is not as long as me because I'm kind
of an old goat, but Drew's been in the business

(15:21):
I think probably between investment banking mortgage banking for about
forty years. And I look forward to him being here,
and I think I got my good buddy on. Hold here, Peter.
This is Peter and Connecticut.

Speaker 4 (15:36):
Hi, Dave, how are you doing that? No on, Leanna,
and I got a question for you about sure what
Trump was saying about social Security yep, being facts free.
If that does happen, Dave, what are we looking at?
I've already sat down in your Malta office with your people, yep,
and talk to them about getting on board with you people, yep.

(15:57):
But I have to wait a certain age yep. But
that throws it kind of a curveball. I mean, if
if we're talking tax free social Security, is there like
a lump sum that we're looking at or not it wouldn't.

Speaker 6 (16:10):
Be going to be.

Speaker 2 (16:11):
It wouldn't be a lump sum, Peter. What it would
be is that the benefit people don't realize that they're
collecting Social Security. And this has been I've been in
the business now for forty three years and it hasn't changed.
The thresholds twenty five thousand dollars for individual, thirty two
thousand for a husband and wife. Anything over and above
that you're going to pay tax on your Social Security benefits. Basically,

(16:31):
what he's saying, what he's saying, Pete, is that once
you receive benefits, you know, and I need to look
at the fine print, but typically what happens is that
depending on your age, right, you might lose some of
your benefit if you're still working. And the thing is
is that if you have a certain amount of income
over and above your Social Security benefit, then that means
that you're going to have to pay some tax. Now,

(16:53):
if he's saying that it's one hundred percent tax free,
no matter when you take it, it could it could
be a changer for you as far as when you
actually exit and walk out into retirement. So I think
you know, keep your fingers crossed that you know, maybe
we'll get a you know, a president that will give
us that because it would be I think it would
be a phenomenal boost for seniors because you and I

(17:15):
both know it's not easy out there to pay the bills.

Speaker 4 (17:20):
The sixty two was looking good for me, but with
him throwing it out there and me leaving four years
it's still able to work. That's a large chunk of
money that's going to be left on the table. Yes,
for the age of sixty six when I do retire.
But I will be sitting down with you guys, I
believe next year. I have a meeting with you every year, yep.
So I'm looking forward to seeing it.

Speaker 2 (17:41):
Okay, brother, he said, how is the weather down there?
Was it tough? I think we lost them? Okay, yeah,
I mean that would be. You know, I've been saying,
you know, they they should have indexed this years ago.
Social Security. Man, I have a hard time at that.
My tongue. Social Security it say it. You know, back

(18:07):
in the eighties it was twenty five and thirty two
thousand dollars. It should be indexed. It should be indexed.
You know, you talk to people and you find out
exactly the type of income that they have coming in.
I'm also in the camp, you know. Like I said,
and I don't want to sound political here, they should

(18:27):
raise the age on Social Security as simple as that.
I'm sixty eight, right, I'm pretty healthy. They still bounce around,
still got my mind. I just I don't think at
age sixty two, if they moved it to sixty five.
As far as early benefit, widow's benefit, yes absolutely, I
agree with that one thousand percent. But if you're sixty

(18:51):
five years of age, just like your medicare, that's when
they both should kick in. And if that, if they
just did that, if they just did that, they would
save more than enough money in order to facilitate, you know,
the purse strings of Social Security to be solvent, not
insolvent that they're talking about now in twenty thirty something.

(19:12):
So minor minor adjustments. We all know that we make
minor or major adjustments in our own personal home. We
all know that depending on the year, depending on the income,
depending on our net for the year, we have to
make adjustments. The government should be any different. You can't

(19:33):
sometimes make promises to people that you don't change or modify,
not get, don't take it away. I'm not saying take
it away, but you might want to make some adjustments
and modifications simply because times have changed. And everybody knows this, right,
everybody knows this. I mean, we're not talking about something

(19:55):
that you know is a pinocchio. We're talking about something
that every buddy knows. That we have longer life expectancies.
When solid security came out, most people didn't even receive
it because of their lifespans expectancy. Now stents, pills bypass,

(20:16):
whatever it may be. Colon asked Difes, you can go
through the whole laundry list all the stuff we do
to extend our lives. Like I said, my oldest client's
going to be one hundred and three this year. I
got tons of clients in their nineties and eighties and seventies, sixties.
You're going to live a hell of a lot longer,
folks than what you anticipate. So what does that mean? Right?
It means that the government, just like we, we have

(20:40):
to make modifications and adjustments with our own personal finances,
and the government should do the same. So what I
would say to you, Peter, Peter, hold on tight. We'll
see what happens with the election. Here and you know,
Trump has said two things that I know for sure.
He's not going to tax Social Security. He's going to

(21:00):
eliminate the taxation. Of course, he's got to go through
Congress in order to I'm assuming. And then the second
thing he said, he's not going to the people. And
I'm a thousand percent behind this because I grew up
in the restaurant business. My daughter works in the restaurant business.
My family has been in the restaurant business for decades. Friends,

(21:22):
we have clients that run businesses that are in the
restaurant business. It's hard. If you get a tip, make
it exempt, make it exempt, give them some extra you know,
cash in their pocket in order to facilitate maybe some
of the finer things in life, like you know, buying
a steak instead of ground beef. So I had a

(21:45):
funny story the other day. I was talking to a
guy called I think he was talking to my wife,
and I can't remember exactly, but you're talking about going
to the theater and how expensive it is. And I
said to him on the radio show a couple of
weeks ago, I said, you know, you goin there to
the theater, you got to basically bring a pistol in
order to get a box of popcorn and some treats

(22:05):
because they're so expensive. I mean, it really is. It's
amazing how much you pay. And I know exactly where
it was. Now is that Triple A. I just got
Triple A from my family because my daughter's gonna be
in Florida. There's a gentleman down there that's a Triple
A facility that was referred to me. So I went
into the Clifton Park Triple A and I had a
nice chat with this guy, James, wonderful guy. He doesn't

(22:29):
do the memberships, he does the travel, but we had
an opportunity to sit down with him because they were busy,
and he facilitated what my wife and I were looking for.
And he was basically saying, is that Triple A gives
you these discounts for theaters and you know it's pretty substantial.
So I don't know if they give you discounts on popcorn,
but that would be good too in the sodas. But

(22:51):
as I said, Droiel is going to be here at
the bottom of the hour, we're going to talk a
little bit about the bond market. Bond market is driving
a lot of opportunities and because of that, like the year,
I think for the week the bond market was up
about ten bases points. The yield on the ten year
treasury is going all the way down to three point

(23:12):
ninety four, three point nine four. That's a huge move, folks,
huge in the last two three months. I mean we're
buying ten year treasuries, not that long ago at five right.
So bottom line gets down to is that when you
see lower interest rates like this, it's a stimulus. It
gives more money to individuals in their pockets. And like

(23:36):
I said, I'm going to talk to Drew this morning
a little bit about the opportunity to get that cancer
off your back. And it's called credit card debt. If
you listen to this show, I've been talking about this
for twenty some years. I think this is my twenty
fourth year on radio right now. I think it is
going on twenty five. I think this is my twenty
fourth year in radio. And I've been talking about those

(23:58):
things because I got into the business myself and my
wife by flipping credit cards around. And I'll tell you what,
it's a lot of sleepless nights. Twenty seven, twenty eight,
twenty nine, percent interests. It doesn't take too long before
you get yourself into trouble. And I think personally they
should be against the law. I don't think that it

(24:18):
should be allowed in order for you to charge people
that are working hard, busting there. You know what, in
order to pay their bills, they don't have enough in
the pot, they have to go to a credit card.
And not only do they have to go to the
credit card, but then the credit card companies are sticking
it to them with these high interest rates. So not
a big fan of credit cards. But we're going to

(24:40):
be back after the break here. If you have any
questions or comments, we love questions one eight hundred talk
WGY one eight hundred eight two five fifty nine forty nine.
Check us out on the web rpgretire dot com. I
got a great team. I said this the other day,
and I ment meant it from the bottom of heart.
I got the best team I I've ever had in

(25:00):
the financial services industry right now. Great people, intelligent people,
wonderful hearts. Chris McCarthy has been a huge, huge asset
to us with his expertise and retirement income distribution. So
we'll be right back.

Speaker 3 (25:26):
You're as cold as ice. You willing to sacrifice out love.
You never take advice.

Speaker 4 (25:44):
Some day You're.

Speaker 5 (25:46):
No.

Speaker 3 (25:48):
I'm seeing me Moore and Half all the time.

Speaker 2 (25:55):
Aren't they in Saratoga with sticks? They are coming to
get Therefore? You know, I looked at the tickets. They
were crazy, four or five hundred bucks apiece about John
le Legend, what he what? He must have been in
pretty price, right, I don't know, I have no idea.
Last concert I went to was Julie and I went

(26:16):
out to Vegas and then we went out to the
casino in Connecticut. I saw Hall and Oates and I
saw Lionel Richie and now Invade Inva. He was good.
I like Hall and Oats were good too. Lionel Richie
sounded just like he sounds on the record. And I
saw Tim Allen, the comedian, comedian. He's stunk. He was horrible.

(26:40):
Every other word out of his mouth was his word.
Oh really, yeah. It was disgusting. Even everybody, like everybody
in office in the audience was going like all right,
you know enough, you know, but you know everybody walked
out of there, Jewel and I walked out of there
with my brother law sister in law who were here,
flew in from Oklahoma, and uh, you know, it was
just was not my cup of tea. I mean, I'm

(27:02):
not you know, I'm not a nerd. You know, I'm
not a little sissy boy. You know, I don't want
to hear a dirty word. But the thing is is that,
you know, ultimately, after a while, now, the guy that
I thought was hilarious, like the funniest comedian I've ever
seen in my life. There's two of them, George Carlin. Yeah,
and super smart? Was he I thought he was? I

(27:23):
thought he was brilliant. Yeah, and uh, who's a black guy?
Comedian Eddie Murphy. Oh, Richard Pror here was hilarious. Those
movies that he made with that other guy were like that.
I would sit there just you know, I'm a squealing
of Sebastian Man of scal com. I love Sebastian, Italian, upbringing,
blue collar married a Jewish girl just like you.

Speaker 9 (27:46):
I could totally relate. Look at you. His father cut hair.
My mother cut hair. Oh yeah, I didn't know that.

Speaker 2 (27:52):
That's that. My dad died when I was three. We
just got two hairstylists. His clients are sweet and real
nice people.

Speaker 9 (27:57):
And then my mother went to go work for my
grandfather other and the and the shop, so I could
totally relate that his whole life. He's hilarious. Yeah, well,
you know, I'll tell you what the I like it
when they can relate, you know what I mean.

Speaker 6 (28:11):
It's just.

Speaker 2 (28:14):
Some of the some of the simple things, the most
ordinary things can end up being like really funny. And
I agree you don't need to swear.

Speaker 9 (28:20):
There's like certain points where you can swear and it
makes you know, accentuate your points kind of funny. But
if you do it too much, then it's not funny.

Speaker 2 (28:28):
Think about the older guys Jackie Gleeson, right, Rodney Dangerfield,
danger Field. I watch his on YouTube a lot, no respect.

Speaker 9 (28:36):
My wife says, hey, I want to go out for dinner.
To go, let's go some place different, Let's go to
the kitchen. That's great, let's go some place different.

Speaker 2 (28:47):
Respect. What do you make for dinner? Reservations? He was?
I worked with the guy, loved, loved danger Field.

Speaker 9 (28:56):
He could do it. He could do an impression on
like you can't you know son at the son You
know you could. You could dress up with him with
the suit and tie. Us you wear a gray suit
with a red tie. There you go, and you could
put like a you got a good head of hair.
You could actually do an impersonation.

Speaker 2 (29:10):
Maybe I'll do it at the Christmas party. All right, listen,
you know, big move, big move. You know drew of
courses in the mortgage industry. King came from the investment
banking industry. Local guy went to Boston, came back home,
and big move in bond market. Big move. We're three
ninety four. Finally on the ten.

Speaker 9 (29:32):
Finally we actually hit at one point, I think it
was last Friday with the unemployment report or the employement report,
we actually hit three six nine for a period really
during the day, did it really? Yeah, it didn't close there,
of course, it closed that day at about three seventy seven.

Speaker 2 (29:49):
But looking at the charts, it's.

Speaker 9 (29:51):
In a really really wide trading range right now. So
you have to as an investor or, if you're looking
at locking in an interest rate, you have to be
very very careful because when you have a real wide
trading range at the moment, with with bonds and mortgage
backed securities, anything can happen throughout the day.

Speaker 2 (30:11):
Sometimes you get two price changes. Wouldn't the variable rate
right now look attractive. I don't know. I locked a
couple people in. They got lucky.

Speaker 9 (30:19):
I think when the bombs hit that low the other
day three six nine, I did, Yeah, I did a
couple high fives. So I don't I don't know if
the adjustable makes sense that as they come down, because
the spreads getting tighter and tighter between arms and fixed.

Speaker 2 (30:35):
So I still think anybody.

Speaker 9 (30:37):
That gets a mortgage this year last year probably going
to refinance in the next twenty four months.

Speaker 2 (30:42):
Yeah, that's an expensive proposition.

Speaker 9 (30:44):
In New York, right right, I mean we anybody that
purchased with us, well, we're going to kick in fifteen
hundred dollars towards closing costs when they refinance with us.

Speaker 2 (30:51):
What's one percent of the value of the loan?

Speaker 9 (30:54):
Is mortgage tax? Is mortgage everywhere except Saratoga County. Saratoga
County is three quarters of a percent.

Speaker 2 (31:01):
But yeah, is that rolled into the mortgage or do
they have to pay for it?

Speaker 9 (31:04):
They roll it in On a refinance, you could roll
everything into the mortgage, so you're out of pocket zero money.
But some clients like to come with money to avoid
rolling it into the mortgage.

Speaker 2 (31:14):
Some like the fund.

Speaker 9 (31:15):
The rest grow on their own because they're going to
get their existing SCRO account back. So there's some mix
and match there, but for the most part, you could
refinance without any money out of pocket, and we just
do the analysis. We say, all right, if you're gonna
save three hundred a month and closing costs or five thousand,
obviously you can figure out your payback to see if
it's worth it. As long as you're going to be
in the house for more than a couple of years, sure,

(31:36):
usually it makes sense. But in New York State, because
we have New York State mortgage text like you spoke of,
you really got to get at least one percentage point
below where your rate is now to make it make sense.
At least one percent. You know, other states like New
Jersey even you could refinance if you're saving fifty dollars,
and New York you gotta obviously do the math and

(31:59):
make sure it makes sense. So uh yeah, So that's
that's that's New York that we're in.

Speaker 2 (32:06):
But I see it coming.

Speaker 9 (32:08):
I think there's a I think there's a lot more
pain out there than than we see at the moment.

Speaker 2 (32:14):
As far as what and for the consumer.

Speaker 9 (32:16):
Yeah, and you know, the consumer I think is now
more than three quarters of GDP. At the moment they're spending,
I feel like they're getting tired. Credit Card dead I
think hit an all time high of one point four
trillion last week.

Speaker 2 (32:29):
So that usually I just talked about that before you
said down. It's the cancer in our society that shouldn't
be allowed.

Speaker 9 (32:36):
That's never You're never going to pay it off, right,
You're literally never going to pay it off.

Speaker 2 (32:40):
I've seen people in tears that have come into my office.
You know, I've talked about the woman many times that
came in. She was married to a doctor and she
was rolling and rolling. She was living a lifestyle that
she really couldn't afford, and he had no idea, and
she went well over six figures in credit card credit
card now, and she didn't know how to tell her husband.
I said, there's no eat. He answered this, I wish

(33:00):
I had a magic wand and I could go puff
and they would go away. So I never saw her again.
So I have no idea what happened. But I basically
said is that you have no option. Your only option
is is that you're either going to have to go
out and work yourself and try to figure out how
you can pay these things off, or you're going to
need to sit down and have a chat with your husband.

Speaker 9 (33:19):
Yeah, I you know, because I've been doing what I've
been doing for thirty years. I've seen a lot of
those scenarios and pull the credit up. Then you have
a joint conversation husband and wife about refinancing, and you
go through the credit and sometimes one or the other.
I can't say it's female or male, it doesn't matter.
I've seen on both sides where one didn't know about

(33:40):
the other and things got real quiet on the phone,
and then you know they're going to have a conversation.
But again it's husband and wife. Something you got to
work out. You got to talk through and figure it out.
And I think as soon as you realize there's a
problem and then you take action, I think it alleviates
the stress. It's a refinance, a home equity line, talk

(34:02):
to debt counselor you know someone. I think then it
alleviates the stress and you could sleep a lot better.
The good news is we have a tremendous amount of
equity in our houses right now. Refinances have popped up
obviously because rates came down, but also because there's so
much equity that's actually helping a lot of consumers consolidate
that debt and get back to ground zero.

Speaker 2 (34:23):
Yeah. US credit card debt has reached an all time
high of one point one four trillion dollars.

Speaker 4 (34:30):
Wow.

Speaker 2 (34:32):
Wow. It was reported by the Federal Reserve on Tuesday.
And like I've said, you know, there's no way you know.
This is why I'm such a fan of Dave Ramsey
and I believe in his messaging. His messaging is to
stay within your boundaries, you know, don't try to live
a lifestyle that you truly can't afford. And I think
that's a problem for a lot of people. I agree.
I agree, a lot of people out there driving BMW's

(34:54):
that should be driving a Chevy.

Speaker 6 (34:56):
I think.

Speaker 9 (34:56):
I think I read something a while back where default
rate on payments is one of the highest. Yeah, I
think because of that, right ye all flash no cash
yeah right, kind of like La Well, California. I was
out there like ten years ago and that's all there was.
Nobody had a dime in their pocket. But they're driving

(35:18):
nice cars.

Speaker 2 (35:20):
I'm just flabbergasted about you know, when you talk about
the amount of debt that personally we have, and then
you know, as a country we're over thirty five trillion
dollars right now as far as our deficit, and it
really caused it's something that we don't talk about enough.
I don't think, and I think that you know, hopefully

(35:41):
this election there will be some dialogue about the actual
financial viability of a lot of these entitlement programs that
we have that you and I both know, after all
these years being in the financial services industry are broken
and about ready to blow up.

Speaker 9 (35:58):
I hope there's more than just dialogue because I think
right now our debt isn't our debt about eighty percent
of our GDP, it's something ridiculous like that.

Speaker 2 (36:08):
It's astronomical. I don't know the actual number, but I
know one thing. We're just issuing.

Speaker 9 (36:12):
What do we issue in twenty thirty forty billion a
week just to pay the interest?

Speaker 2 (36:15):
I think every six months our debt goes up because
of the interests of one trillion dollars every six.

Speaker 9 (36:21):
Months, and the higher interest rates don't help. Obviously, you know,
interest rates come down, that will help some. But there, yeah, there.
You can't keep kicking the can down the road. Eventually
it's going to catch up to you.

Speaker 2 (36:31):
Well, I think what we're seeing is that the end
result is is that you're seeing inflation and what inflation
does the purchasing power and what it also does to
check books and balance sheets for people that have you know,
limited means. We're fortunate that you and I have had
a very successful career and we're not in that situation.
But we have family members and loved ones that we know.

(36:53):
I mean, I really there's a lot of there's a
big part of me. I really fare for the younger generation.
I really do. Yeah, as far as their ability in
order to facilitate the quality of life. I mean, my
son said to me, he goes, Dad, to your life
that you grew up and probably the best time ever.
That's my son. He's in his twenties. Yeah, and I'm

(37:14):
saying to myself, you know, you know this is Christopher.
Christopher said it to mom and dad one day or
having dinner, and I said, you know what, we lived
in an unbelievable world, an opportunity that presented itself to us,
and we took advantage of it. Mom and Dad, you
have the same You have the same opportunity. It's just
it's a little bit more difficult today than it was

(37:34):
maybe when when I was a kid. But you know,
opportunity presents itself. What my concern is this, and it's
been listed this way for an extended period of time.
We have too much wealth concentrated with too few people.
There are you know, when you have people that are
having billions and billions of dollars paid out to them

(37:55):
on an annual basis, I really worry about what that
does to democracy, you know, And I think we're starting
to see some of the impact of that.

Speaker 9 (38:02):
When you say billions and billions of dollars billions and
paid out to them.

Speaker 2 (38:09):
They're net worth. Oh, I mean Elon Musk just got
to check for what fifty four billion dollars or something
for last year first pay in one year, right in
one year, and so you know, I mean, I'm not
going to sit here and you know and have a
sermon about you know, how our founding fathers were worried about,
you know, oligarchs because they were and they were worried

(38:32):
about too much wealth concentrated with too few people is
not good. And I think we're starting to see some
of that right now, we got to take a break,
and when we come back, we're going to talk a
little bit about the bond market. We're going to talk
about interest rates. We're gonna get off the sermon here,
but if you have any questions at all, you want
to talk a little bit about you know, fixed income mortgages,

(38:53):
opportunities are out there right now. It's five eight five
eight zero one nine nine at my office today. Hey,
you can call us at one eight hundred talk WGY.
We'll be right back. The eighty six percenters. Do you
know that eighty six percent of the population has no
defined benefit pension plan. For most of us, we have
to take our life savings and create a paycheck for

(39:14):
the rest of our lives in retirement. What is your
plan for retirement income distribution? How you manage your assets
during the most critical years of your lifetime. Nobel Prize
winning economist William Sharp has called retirement income distribution the nastiest,
hardest problem in finance. He points out that investment, uncertainty,
and mortality can derail the most careful laid out retirement

(39:35):
income plan. Call our offices today to start the process
of building a retirement income distribution plan. After forty one
years of being in the financial services business, you need
to start taking action to start building your own personal
retirement income distribution plan. How do you do that? To
take action? Five one eight five eight zero one nine nine.
That's five one eight five eight zero one nine one

(39:57):
nine or RPG retire on the web. Don't procrastinate, motivate,
start building your retirement income distribution plan. Five one eight
five eight zero one nine nine.

Speaker 7 (40:07):
We're here live in studio. If you have any questions,
please call one eight hundred talk w G Y one
eight hundred eight two five five nine four nine. Want
to talk with Dave after the show call five one
eight five eight zero one nine one nine.

Speaker 10 (40:40):
Let's all right?

Speaker 2 (41:20):
I got it was?

Speaker 4 (41:21):
That?

Speaker 2 (41:22):
Was that planned? That was planned that you guys are riot?
You are a riot.

Speaker 9 (41:28):
I forgot to get through a w G Y Rag
almost jumped on his windshield and cleaned it with my backside.

Speaker 2 (41:38):
What Jule and if we laughed from the time we
got out of there, we pulled out of there until
about halfway to Boston. I still chuckle about it. That
was funny. We really screwed everybody up that morning. That
was funny. I couldn't.

Speaker 9 (41:50):
I didn't know it was you because the Claire I
couldn't see that. I'm like, what is this guy doing?

Speaker 2 (41:56):
Make a real story short here. I was at Hoffman
car wash it you know what, eight o one in
the morning. Of course, my buddy here beat me to
Hoffman car wash. And he's standing out front. He's getting
his car clean on the other side, and I just
did a quick wash, and Julie and I are in
the car, and I said, I think that's Joe. Drew
over the on to tease him a little bit. So
when you pull through, you're supposed to keep on pulling through.

(42:16):
I stopped just before the door, and I started blowing
the horn, flashing lights. Hey, hey, get over here and
wipe my car down. He's looking at me like, what
the hell do you think I am, buddy.

Speaker 9 (42:28):
Pointing to myself me. Yeah, I was wearing my sweats. Oh,
I was like, I was in the shirt and tie.

Speaker 2 (42:35):
Yeah. I won't tell people what you said to me
when I pulled by.

Speaker 9 (42:41):
The guy After your laugh, he goes, I assume you
know him. I'm like, of course I know him. I
just swear customer. I'm no longer you're fired. You're no
longer the greeter. They took the sticker off my car.
I can't even go further anywhere. Oh my god, it

(43:02):
was unnoth by my ultimate Yeah, monthly pass was funny.

Speaker 2 (43:07):
That was luckily it was eight oh one. Nobody else
was in the guy for you know, the manager was
looking because he was over on the other side and
he's like looking. He's like, give me the stare, like
that's the guy that asked me. He goes assume you know,
all right, let's talk about the markets.

Speaker 9 (43:26):
Yes, so you know, we've talked about inflation. The FED
I think has gotten their goal. I think if the
FED actually looked at real time numbers for housing and
the car insurance that's gone up huge. Uh you know
they call that the housing stuff. It's really called shelter costs.
It's like forty five percent of the inflation CPI figure.

(43:47):
If they looked at real time figures on both those,
I bet you we're pretty close to two percent. I
think we're probably like two point three two point two percent. Yeah,
if they look at real time. When I say that,
that means just because that's just because the FED always
looks in the rear view mirror. They're always looking at
six twelve months back instead of what they're looking at today.

(44:09):
So I think that goal check. You know, they've accomplished that.
Now I feel like they could be in a too
restrictive period. And the second shoe that they want to
drop is the employment situation, which as of the last
employment report, I could say check. You know, I don't
think we expected four point two on the unemployee report.

(44:33):
I think they're expecting four point one. And they said
if we got the four point one, we probably cut rates,
and they got four point two. So I think twenty
five basis points are fifty? Now is the discussion, Well.

Speaker 2 (44:45):
That's it. I think it's fifty. I think, yeah, I
think fifty is baked. Did when they're talking about an
emergency action by the Federal Reserve, you know, the one
guy there, I can't think of his name, Golspie, Yeah,
something like that, he's talking about seventy five basis points
like immediately. But you know, the thing is is that

(45:05):
it's it's the mania. This is what happens on Wall Street.
I mean, the thing is is that there's still you know,
nobody's talking about a recession, right, They're still talking about
the soft landing. Fundamentally, we're still strong, Corporate profits are rising,
and the thing is is that you know and argue,
you know, through Fidelity and the Retirement Planning Group, we

(45:27):
still believe that the markets are gonna give us, you know,
gainst the remaining part of the year. Bonds will do
well because of the FED policy now, but it's gonna
be bumpy. Oh yeah, you know, we're gonna have volatility
here simply based off of the dynamics of what's happening
in the news with the election. Well, look at you.
What was it Monday?

Speaker 9 (45:46):
Down one thousand points, Tuesday, back up, Wednesday back out?
Would we end of the week almost even?

Speaker 2 (45:52):
Pretty much flat? Yeah? Pretty much flat? I'm talking about
we were down a little bit on the markets of
the week. The Dow was down sixty basis points, s
and P was flat, and NASDAK was down twenty bases points,
you know, point two. So the thing is is that
it was pretty much like a non event. The bottom
line gets down to is that people need to turn

(46:12):
their damn computers off and their TVs and everything else
and just live their lives because everybody gets in this
mania that they got to look at their account every day,
every week, every month. And that's not the way the
markets work. Markets, you know, the old Warren Buffett. If
you're not willing to stay ten years, you shouldn't be
in the markets for ten minutes, right, And I'm in

(46:34):
that camp.

Speaker 6 (46:35):
You know.

Speaker 2 (46:35):
The thing is is that it takes a while. Positions
that are built out right don't happen overnight. They don't
happen overnight. You get rewarded for building out an act
allocation plan, and you get rewarded over three to five years.
And the thing is is that you know, people will
come in and say, listen, you know, I'm a moderate
conservative and investor. And then when the market is roaring,

(46:57):
they say, oh geez, give me somewhere of that stock.
And then when the market goes through what it just did?
They go, what the hell did you do that? You know?
How come I got too much stock?

Speaker 6 (47:04):
Now?

Speaker 2 (47:05):
So there's you just got to stay. You got to
stay within your acid allocation. You got to stay within
your model, and you will be rewarded. I mean, you
can't time the markets right. How many times have you
read if you bought the day before a crash, you'd
still be okay, right, So it's impossible to time the markets.
Nobody can ever time the market's just got to stay
in and ride the ups and downs. And it's just

(47:25):
like the real estate, you know, like you said, you know,
markets have been extremely strong here in the Capital District region.
Interest rates have impeded a little bit the opportunity to
buy real estate, but now the opportunity is opening up again.
The doors are opening.

Speaker 9 (47:40):
Yeah, we're going to have a realtor call in at
eight o'clock, Terry Kreuzski from the largest real estate firm
in the in the Capital Region, Howard Hannah Terry or
Howard Hannah. Yeah, I didn't realize they're the largest in
the in the in the local Yeah, well I didn't
market never knew that, Howard Hannah or I think right
behind that, maybe it's Kellor Williams, which the national chain

(48:01):
r Howard Hannes. Maybe I would say New York. I
think they have some other states, but not national. So yeah,
she'll talks. She's been in the business, I think about
fifteen years, and just tell us about the market. But
I think, yeah, as rates go down, you're going to
see a lot of fence sitters, jump back in. Yeah,
it's going to stop up a lot of supply. I

(48:22):
mean we already don't have supply. I've still seeing multiple offers,
at least on my end. Terario will be able to
tell us better and it'll be interesting. I'm hoping that
when rates drop, maybe more people put their houses on
the market that have been waiting because they kid, it's
hard to give up a two and a half or
three percent rate and go to a seven. But now
if we're in the fives, then maybe people are more

(48:44):
likely to sell.

Speaker 2 (48:44):
And I'm just curious that people are relocating to the
I had my brother in law works in HVAC and
he's one of the contractors at the Adelphi Oh yeah,
up in Saratoga, and he's just said, some of these
places are just spectacular. Yeah, but they're going for millions.
It's about a thousand a square foot sixteen hundred. Yeah.

Speaker 9 (49:05):
Friend of mine finally just got a coo they can
move in close next week. I think that's been holding
up a lot of people moving in. I think forty
to fifty percent of those already sold. So it's a
really nice, nice facility, obviously extremely expensive.

Speaker 2 (49:19):
Well, bottom line gets down to is that when you
have that kind of money. I guess it's it's irrelevant
what the cost is. You know, I think most of
these people that are originally in there, pretty much of
them have a pretty large checkbook. Yeah, multimillionaires. Oh yeah.
So the thing is is that they're buying. They're buying,
you know, to me, it's location. It's a destination, point right,

(49:39):
and Saratoga is a destination, and he had all the facilities.

Speaker 9 (49:42):
Obviously they're they're trying to do it like a four
seasons with the concierge and the health club and all,
you know, the parking and you know, first class across
the board.

Speaker 2 (49:50):
Anything you need, we got you covered, that kind of thing.
So are you in the camp right now that you
think what the later part of this year twenty twenty
four you're probably going to see maybe or four and
a half. I don't know if we'll see that that
this year now if they drop seventy five basis points
and then another's fifty, no, I don't. I don't think
we're going to see that.

Speaker 9 (50:10):
You may, you may get lucky in twenty twenty five,
for sure, twenty twenty six, but it depends. I feel
I still feel like it's a very sticky employment man,
very sticky economy, meaning that you feel like you're moving
in the right direction all of a sudden, and then
you get a really good report.

Speaker 2 (50:27):
I think here's one thing.

Speaker 9 (50:29):
I'm not going to say there's conspiracy theory, but I
do find fault with a lot of the data that's
coming out, Like, I don't know if I could trust it.
So I don't know if it's being manipulated at the
moment because some of those jobless claims reports, with our
economy trillions and trillions of dollars, some of those reports
were coming out the same exact number for weeks in
a row.

Speaker 2 (50:48):
Yeah, you were saying that that's virtually impossible. You were
saying that the last time you're on.

Speaker 9 (50:51):
Yeah, so it's it's so that's why I say, yeah,
it could be sticky, But I feel like there's a
lot of weakness and it's going to come out eventually.
I think when rates start coming down, it's going to
be probably pretty swift.

Speaker 2 (51:03):
Do you have any idea as far as the amount
of wealth that is held by individuals in real estate
domestically here, because they talk about the eighty five trillion
dollar wealth transfer right, which is going to happen over
the next twenty to thirty years. I know that there's
about forty trillion, forty trillion and qualified assets iras four
O one k's, you know, set iras, defined benefit plans,

(51:27):
a lot of money forty trillion dollars out there and
those types of plans. So if you got eighty five
trillion dollars, I'm assuming the rest of that wealth transfer
is going to be real estate and personal assets like art, jewelry,
blah blah blah. I've never seen a breakdown of that yet.
I don't know.

Speaker 9 (51:44):
I'm looking, but I did read something New York Fed
talked about household debt and credit report. See New York
Fed came out It's Household Debt and Credit report, and
they said that aggregate debt at the household level rolls
to seventeen point eight trillion, up one hundred and nine
billion from the previous order. Yeah, that considered, and I
assume that's credit card and mortgage, sure, right combination.

Speaker 2 (52:06):
Well, it's not credit card where you know that credit
card is one point one four. Yeah, there's probably it's
probably mortgages.

Speaker 9 (52:12):
Morio's wonder of the best rolled in there, but we're oh,
they're talking about probably credit cards, car loans, warriage, maybe
that sort of thing. But they're starting to see some
delinquencies on credit, serious delinquencies on credit cards and car loans.

Speaker 2 (52:26):
We gotta go ninety days or more. We got to break.
Drew's got a special guests on and we look forward
to listening to her expertise.

Speaker 1 (52:34):
We'll be right back live from the w gy iHeart Studios.
Welcome to the Retirement Planning Show with your host Dave
Kopek from the Retirement Planning Group. Every week, Dave and
his team discussed the ways they can help people make
informed decisions about a wide array of retirement planning information
that can support you and developing a more certain financial

(52:55):
future for you and your family. Now it's time for
Dave Gobeck w g WISE, retirement planning specialist.

Speaker 11 (53:11):
All Right, hot flooded baby, droy ellos here, Yeah, yeah.

Speaker 2 (53:28):
Do you go to Saratoga? Yeah? Went there? Uh, I've
been going like once a week. Yeah, to concerts.

Speaker 9 (53:34):
No, No, I'm not. I'm not a big crowd person.
We had dinner the other night at fifteen Church. Oh yeah,
I haven't been there in a while, Julian and I
had a good friend of mine love that place.

Speaker 2 (53:43):
Food was phenomenal.

Speaker 9 (53:44):
But uh, we go to Max London's a lot, do
you Yeah, good spot, Yeah, just quick, easy casual and
we had.

Speaker 2 (53:50):
Dinner there not too long ago last year. I mean
when I said not too long ago last year, and
the food was excellent. So you know, Sarahtoga. But you know,
we were just looking at the news real quick at
the break Lola got broken into the bagstore again at
Sarah Tooga last night. That's the third time.

Speaker 9 (54:04):
You're third time less than a year, right, Saratoga twice,
Divanson once, all since November?

Speaker 2 (54:12):
Crazy, horrific. What's going on here? I don't know. I
don't know what's going on. Listen. I don't let you go.
Your buddies on the line here, So Matt, good.

Speaker 6 (54:19):
Morning you there, Hey, good morning?

Speaker 9 (54:23):
All right, Matt, let's Awski on the on the line.
Matt is one of our reverse mortgage specialists at Fairway
Independent Mortgage. UH focuses and does a lot with reverse mortgages.
And uh, I don't know if you're a part of this, Matt,
but we just got a really good recognition article that
came out. Fairway named to CNBC and Money dot com

(54:46):
Best Reverse Mortgage Lenders List.

Speaker 2 (54:49):
How about that? Do you have anything to do.

Speaker 6 (54:51):
With all that?

Speaker 5 (54:54):
You know, it's it's it's an incredible team at Fairway
and the Reverse Mortgage. We take it so seriously and
we describe to honestly make the customer experience as smooth
as easy as possible, because a lot of times it's
a pretty you know, it's a pretty emotional process for people,

(55:17):
especially as they get over age eighty. We're so proud
of that. Thanks for bringing that up.

Speaker 9 (55:22):
Yeah, that came out yesterday, a really great article. It
talks about I think they ranked JD Power ranked US
number one when it comes to reverse mortgages.

Speaker 2 (55:30):
So good stuff, and I'm glad.

Speaker 9 (55:32):
I'm glad you came on the show because Dave is
always asking me about reverse mortgages and we talk about
them from time to time, of course, and the power
and the holes that it fills when it comes to
a retirement plan. You know, obviously people can't sometimes always
fill every little hole in the retirement plan. So I

(55:54):
think a reverse mortgage is a good fit for some people.
And that's why I want to have you on the show,
because you do quite a bit of them, and I
refer that a lot of my reverse mortgages as well.
So just talk to us a little bit about the
basics of reverse mortgage so that the listeners can understand
how it works, the practical applications of what you're seeing
right now.

Speaker 5 (56:15):
Sure, So a reverse mortgage is really an FAHA insured
product that allows people to access equity from their home.
It has the ability to let it sit and not
have to pay on that until you move out or

(56:36):
title transfers.

Speaker 6 (56:38):
It's insured.

Speaker 5 (56:40):
FAHA has an insurance policy at closing. Any borrower would
pay into a FAHA insurance policy.

Speaker 6 (56:48):
And what does that do?

Speaker 5 (56:49):
That makes this loan frankly the safest home loan that
I know of. The loan is called a non recourse loan.
What does that mean? Non recourse? The non recourse feature
is based on this insurance policy that FAHA has in place.
If and when you sell the house, and if and

(57:11):
when the house becomes underwater, which is not likely based
on new FAHA guidelines over the years, that this FAHA
insurance policy kicks in and covers that gap and they
will never come after the borrower. The borrower's family or
the borrower's state, or the difference, and that what makes
it non recourse to home in itself is the full

(57:33):
collateral as opposed to a regular mortgage drew as you
know and I do those as well. That the borrower
is being you know, is the one who has to
pay that back and if they don't, the investor will
come after them. So the you know, that's the high

(57:54):
feature of the faha. It also has a very cool
feature go ahead, yet, I'm just.

Speaker 2 (58:00):
Curious in your practice right now.

Speaker 9 (58:03):
We know that with the reverse mortgage, people can get
a they can access a line of credit when they
don't have an immediate need.

Speaker 2 (58:09):
They just get a line of credit.

Speaker 9 (58:11):
They can get a lump sum, they can get a
monthly distribution for a finite period of time, and then
they can also get a monthly distribution for an infinite
period of time. What are you seeing right now in
terms of the practical uses out there in the market,
What are most reverse mortgage candidates coming to you?

Speaker 12 (58:30):
For sure, most people are coming us to us for
a needs base, an immediate needs base, and a lot
of people are waiting.

Speaker 5 (58:41):
Until they almost have no choice. But there's a lot
of different ways but let me answer you directly. So
I have most of my clients right now have a
fixed income situation. Maybe there's been a life change events,
medical bills have gone up, and they need to get
more access the cash and the lower debt. So they

(59:02):
will get a reverse mortgage and then they will get
a line of credit or a lump sum to be
able to pay that off. That's probably the biggest percentage
of the borrowers today. But I want to towards the
end of this, let me just lay this out. I'd
love to get into different ways where financial planners can
use this product in a holistic, strategic way for their

(59:25):
clients who may not even think they have a need
to this, but really do.

Speaker 2 (59:31):
Right.

Speaker 9 (59:31):
Yeah, no, that's great, especially for the listeners in the
audience that days has.

Speaker 2 (59:36):
That's a good thing.

Speaker 9 (59:37):
So that's what I used to do quite a bit
of reverse mortgages years ago when it first came out,
and he did have that possibility where you get up
negative equity when the time came to either sell the
house or someone passed. But now with the safeguards that
are put in place, you're really only having asked access
to maybe forty to fifty percent at the most in

(59:59):
terms of the equity in the home. So I feel
like it's virtually you can never say anything's absolute, but
I feel like it's virtually impossible for someone to have
a negative equity situation given today's guidelines.

Speaker 2 (01:00:14):
Do you feel the.

Speaker 5 (01:00:14):
Same, I would definitely agree. When there's two ways to
get there's two ways that faha calculate how much equity
you can get is your age and the interest rate.
And the interest rates based on two things. One is
a margin and one is the MT one year Federal

(01:00:37):
Government Index constant maturity Treasury Index, which has gone down
as that rate goes down, it's a variable product, veryable
rate product. The Heckum home equity conversion mortgage is the
technical term. As that rate goes down, the mortgage balance
is growing slower. So when you get your reverse mortgage,
if the CMT is in a lower position, they let

(01:01:01):
you borrow more money. There's a factor they use as
a chart. People can google it, and they let you
borrow less more because the loan will grow slower. So
to your point, Drew, it really is very, very difficult
to have in underwater situation. And there's emortization schedules with
everybody's reverse mortgage proposal as we do an analysis and

(01:01:24):
they'll see it in black and white that there's going
to be equity based on the home value. National average
is four percent appreciation.

Speaker 2 (01:01:32):
Right, And Dave has a question for us. Yeah, I
just saw a program not that long ago that was
talking about how it's impossible to find caregivers today and
the affordability for seniors to pay for caregiving. And you know,

(01:01:52):
I've been doing this a long time and I've seen
the capital appreciation of property to levels that I've never
thought we would see. So, you know, a guy that
bought a house for one hundred thousand dollars now sitting
out a house maybe that's worth a million dollars. They've
been at it for the last thirty or forty years.
So uh, they were talking about the ability to tap
into those resources for people. First of all, they don't

(01:02:15):
want to go to a nursing home. The second thing
is is that you know, to afford a nursing home
is almost outside their ability to pay for it. But
you know, caregiving in the home allows them to basically
have a loved one someone to come in to care
for them, and they can utilize the reverse mortgage in
order to facilitate that. Do you see much of that transpiring?

(01:02:38):
Is that accelerating because of the boomer generation?

Speaker 6 (01:02:44):
Exactly? Yes, I'm part of it.

Speaker 5 (01:02:47):
Yeah, it's it's it's significant, it's significant. Yep, they answer
short answers. Yes, happy to dive into that deeper.

Speaker 2 (01:02:53):
But yep, they call that aging in place.

Speaker 9 (01:02:55):
Yes, I mean, obviously you rather be in your house
than in a facility.

Speaker 2 (01:03:00):
Well, you know, I'm going to say that probably nine
out of ten people that come to us, you know,
they're concerned about the legacy. But there's a good portion
of people that come to us too that say, listen,
my kids are doing fine. You know they're going to
be fine if I If I leave them ten dollars
or ten million dollars, it really doesn't make any difference. Now,
I'd like to save and keep as much and transfer

(01:03:21):
to the children and grandchildren. But the bottom line is,
I got this beautiful wife or I got this wonderful husband,
and we want quality of life. We want to be
able to live the way that we want to live
and have the services that we want to have provided
to us. And we don't want to go into one
of those damn nursing homes. And I say, okay, this
is what you should do, and I refer them to
Drew and I said, you're going to have to go

(01:03:44):
through a program here. I think it's like a learning
curve right in order to counseling. Counseling. And I said
to me, to me, you know, Merrill Lynch did a
report on this one time, adding tools to your toolbox
for your retirement years, and a reverse mortgage was one
of them. It was a phenomenal article. So I'm an
advocate that listen, even if you don't need the money,

(01:04:05):
now get it. Let it compound, especially if there's no
need for the kids to live in the house or
the transfer of the house to the next generation.

Speaker 9 (01:04:15):
Plus, if you get it and you don't use it,
there's virtually little or no balance on it, right, and
then it's just there as a safety but it keeps
on growing though, it keeps on growing, unlike a traditional
home equity liner c.

Speaker 2 (01:04:26):
So what's your position on that, Matt.

Speaker 6 (01:04:31):
Spot On?

Speaker 5 (01:04:32):
Spot On, You couldn't have said it any better. It's
just another tool in the toolbox as part of your
retirement plan. One of the ways that I'm going to
be speaking more to financial advisors. Is the secure two
point zero or are you familiar with that? The federal
government yep, has come out with REP. So there's a

(01:04:54):
product called QULAC, which is an annuity.

Speaker 9 (01:04:57):
Right.

Speaker 5 (01:04:57):
This is one example of utilizing a line of credit.
And so my understanding is that you can take your
required minimum distributions out of an era that normally would
be a taxable event and use.

Speaker 6 (01:05:12):
That to fund a QLAC.

Speaker 5 (01:05:14):
And I believe when you fund it in that way,
you are not paying tax on that distribution.

Speaker 6 (01:05:20):
Is that correct? Yes, but it's okay.

Speaker 2 (01:05:24):
It's a limited amount of time. I think to age
eighty then you have.

Speaker 6 (01:05:27):
To start taking the distribution correct. Correct.

Speaker 5 (01:05:30):
So then what you can do to your point is
you can put a line of credit at age.

Speaker 6 (01:05:35):
Sixty two in place.

Speaker 5 (01:05:36):
It has a growth rate, compounding, tax free. My understanding
because it's your home equity, and so instead of taking
those minimum distributions, you take it out of your line
of credit. There's no tax implication there. You take your RMD,
you fund a QLAC, there's no tax implication there, and
then at adag or at eighty five, you start taking

(01:05:59):
money of that annuity. I don't believe there's a tax
implication there, and your line of credit can continue to
grow and frankly, depending on what you take out of
your line of credit, it may replenish itself. Based on
the rate. Right now, lines of credit are growing at
seven percent tacks three year over year compounding.

Speaker 6 (01:06:21):
Yeah, Drew, incredible tool. That's just one way, Yeah, Drew,
you could use it.

Speaker 2 (01:06:25):
Drew talked about that a couple you know, a couple
months ago, Adam and he discussed why it's so advantageous
for people that think that they might need a reverse
mortgage in the future years in order to cover You know,
I don't have to tell you you're a smart guy. You
sound like a very intelligent man. Healthcare costs are going
through the roof, not only for people that are working,

(01:06:45):
but also for seniors. It's one of the it's probably
one of the greatest obstacles that we see at the
retirement plenty group. There's individuals that can afford the ability
to retire because the cost of healthcare. You're talking about
health insurance, health insurance right, just health insurance, right. And
that has nothing to do with long term care, assisted
living or anything else. You know, right. So you know,

(01:07:07):
Fidelity just came out with a report last year that
an average sixty five year old couple they need about
three hundred thousand dollars in cash out of pocket for
medical expenses. And that has nothing to do with long
term care. So to me, when I look at reverse
mortgages and people that either undersaved or they really don't
have a big pot of gold, to me, it's a
no brainer. And I you know, there's nothing in this

(01:07:29):
for me. I mean there's no compensation. You know, Drew's
not you know, it's not like I'm on the application
at all. So what about that dozen donuts? I bring
it on? You got that or you got that right?
We won't go there. Hopefully Julie's not less. Oh she is.
She is. This is the battle I deal with. But

(01:07:52):
you know, Matt, the thing is is that I I'm
a big believer. Is that, you know, you know, it's
just like annuities or any other type of investment products changed,
just like everything else has changed in our society. Over
the last twenty thirty years. Annuities have gone from investments
that a lot of people had negativity about. Were William
Sharp now from Sharp Ratio Nobel Laureate is basically said,

(01:08:15):
you need to look at annuities as far as an
option in order to facilitate retirement income distribution. Whether this
is right or not for people, it's not a question.
It's as a financial advisor, I think it's mandated by
us to show people these types of opportunities that exist. Yeah,
one hundred percent, I think yes, And Matt.

Speaker 5 (01:08:38):
Ure, yes, that's that's my mission.

Speaker 9 (01:08:40):
It's about it's about twenty minutes after the hour, so
we only have a few more minutes. You want to
talk about, uh, some practical applications and with the financial
with financial planning, financial goals, So let's chat about that
for a few minutes.

Speaker 6 (01:08:58):
Sure. Sure.

Speaker 5 (01:08:59):
So so here's one idea and I'm going to throw
ideas and Michael, here is to just peak somebody's interests
to take a look at this before we hang up
with you. I'm going to maybe leave a couple economists
names and very educated people in this space who have

(01:09:20):
written books about this to show how you can increase
and keep your cash along in a retirement. Here's a
really easy way to use social Security. I'm sorry to
use a home equity line of credit. Excuse me a
reverse mortgage line of credit in your retirement planning with
Social Security. So my understanding is if you take it

(01:09:41):
at age sixty two, that you're going to take maybe
twenty five percent less than you would if you took
it at age sixty eight.

Speaker 6 (01:09:48):
Is that hoose the correct daya as?

Speaker 2 (01:09:51):
Okay.

Speaker 5 (01:09:53):
So let's say you're sitting there with a client and
you're looking at their money and you're saying, you know,
you really are are going to need a little bit
more money here now that you've retired or your cash
flow has has become less. So let's say they needed
two grand a month more and that's what they would
get in Social Security. But yet they have three hundred

(01:10:14):
thousand dollars in equity that they could extract through a
line of credit through a heckam, well we put that
in place. We take that two thousand dollars out each month.
Let's say, again there's no tax implication that's going to
grow back probably, so it's almost going to replent itself

(01:10:34):
year over the year, and then you can take out
at age sixty eight or seventy much more on the
Social Security and then the rest of their retirement funds
are going to last longer. I'm simplifying it, but that
is one basic way to utilize your home equity in
your retirement plan and make it last much.

Speaker 6 (01:10:54):
Much longer. Yeah, you're salving your safe ways.

Speaker 2 (01:10:56):
You're solving for income. You're not solving for you know,
one toy, I break even on my solid security selection
and I think that's the biggest, big that's a big
negative because people need to understand. You know, I've been
saying this for years. You're gonna live a hell of
a lot longer than you anticipate. Going to get the
money doesn't necessarily mean that it's going to be advantageous
for you. You need to sit down and run calculations.

(01:11:20):
What is it going to cost me in order to
stay alive? Pay my bills, put food in my belly,
heat the house, turn the electric on, et cetera, et cetera.
And that's not about breaking even. That's about cash flow distribution.

Speaker 5 (01:11:35):
Yeah, exactly, exactly, that's that's correct. Here's another quick way
to use it in a tax tax implication to minimize
taxes or or not take money out of your out
of your cash and or retirement funds. So let's say
now you do take your required minimum distributions, and there's
tax implication as well, instead of paying that on your

(01:11:57):
cash flow. If you have a line of credit and
you've let it sit the year that you have a
major tax sit, you take that out of your line
of credit and now you're not touching your cash and
depending on how big that line of credit is, that
tax trunk again may grow back because there is a
growth rate. So you have funding in home care, you

(01:12:21):
have things called sequence of return risk. You have tax
bracket optimization. If you're getting divorced gray divorces, there's divorced
financial strategies utilizing the home equity. You can do roth
IRA conversions and utilize the line of credit to cover
some tax implications. There required a mission requires minimum distribution strategies.

(01:12:43):
There's payment optionality to yourself based on that line of credit.
There's a crude interest tax aductibility, accelerated heronance basically give
the cash now with a warm hand instead of when
they pass away in a cold hand. And there's long
term care elimination periods can strategize is there's a lot
of things that one can use their line of credit

(01:13:04):
through a heck on the government insured program that really
gets me excited. It's something that is not the line
a loan of last resort, but a true tool in
the toolbox for retirement planning. It's very exciting and I'm
very grateful to be able to offer it to people

(01:13:25):
in their golden years.

Speaker 2 (01:13:27):
Drew and I had a gentleman. This is going back
probably five eight years ago. I was living in a
townhouse in Clifton Park, New York, and called Drew, and
I think he had heard Drew on the radio. Called
me said, you know, how do I get in contact
with this guy? Blah blah blah. Put him in contact
every year. Every Christmas time, I got a Christmas card

(01:13:48):
from him, and it basically says, you changed my life.
You made my life where it's now pleasant and I
don't sit there every year Warrnton, you know if is
this the year that I'm going to go broke or
I can't afford you know, the lifestyle that I have.
He had no children, there was no need for a legacy.
He had a lot of real estate value, but he
didn't have a lot of savings, very small pension benefit

(01:14:11):
and solid security. We basically changed his life by doing a.

Speaker 9 (01:14:14):
Research work because on a reverse mortgage home queen line
of credit. Heckhem, all you have to do is pay
the taxes and insurance. It's still your house. The deed
doesn't change the name, and the house doesn't go to
the bank, none of that stuff. That a lot of
falsities that are out there. It's really just you don't
have to worry about making a monthly mortgage payment. You
just have to pay your taxes, insurance and maintain the house.

Speaker 2 (01:14:35):
Man, let me ask you a question before before, because
we only got a couple of minutes here, we're gonna
have to say goodbye and kick you down the road. Okay?
Is that okay?

Speaker 6 (01:14:42):
You got absolutely? Absolutely? You can't wait to get those donuts.
Which room, isn't it?

Speaker 2 (01:14:48):
They're on their way right now, Zach, Zach's running out
the door with them. Listen, the uh is there. You know,
I'm a big believer. I get up in the morning
at four thirty five o'clock and I go to my computer,
and that's when I do a lot of my work.
You know, that's when I that's my time. Do you
guys have any kind of a power point or do
you have anything on the web that basically goes over

(01:15:08):
this so people can feel a little bit more warm
and fuzzy about what you're talking about.

Speaker 5 (01:15:15):
We do so Fairway. Fairway Mortgage has a lot of
information online. There's there's a brochure.

Speaker 6 (01:15:23):
That we have. I don't, I don't. Maybe they can
download that.

Speaker 12 (01:15:26):
I'm not sure.

Speaker 5 (01:15:26):
I certainly have it that talks about the reverse mortgage
and the Heckham specifically. It's the very detailed brochure. But
there is a lot of information online with Fairway Mortgage.

Speaker 6 (01:15:38):
Yeah, they can go to my website and.

Speaker 5 (01:15:40):
Contact me, contact through contact you, and we can give
them a lot of information. There's there's three three very
smart people out there who have talked about this in
retirement planning. Wadefou Have you heard of.

Speaker 6 (01:15:53):
Him, Yes, the Fau Yep, yep.

Speaker 5 (01:15:56):
He's written a book about retirement strategies in the heck
It's it's a little technical, but I think for those
people who have thought, well, you know what, you know,
I did great planning, I have great net worth.

Speaker 6 (01:16:09):
I don't.

Speaker 5 (01:16:09):
I don't need a reverse mortgage. It's really for the
person who's going to lose their house.

Speaker 6 (01:16:15):
Not so.

Speaker 5 (01:16:15):
I have a client in Connecticut. He's actually a financial
planner has a huge investment firm he owns. He's in
his mid sixties. He's opening up a reverse mortgage on
his two point two million home paid off to get
a line of credit for the sole purpose of letting
it grow and to compound maybe for ten years. It

(01:16:37):
may even double based on the amortization schedule for his wife.
It's just another use he doesn't he doesn't need. It's got, like,
no joke, ten million in the bank.

Speaker 2 (01:16:46):
Yeah. The thing the thing is is that it's incredible.
It's just another tool in the toolbox. I mean, that's
what I always say to people, is that, you know,
don't don't close your eyes on something like that. You know,
I'm a huge believer and I'm I'm actually going to
start looking at them myself personally for my own personal
wealth management plan. I think it makes all the sense

(01:17:07):
in the world. And the bottom line gets down to
is that don't close your eyes because somebody's you know,
giving you this message that you know they're evil, don't
look at them. Yes, there was complications with them when
they first came out, but it's a whole different chassis
today and the fee structure is much much, much more reasonable.
And attractive for investors.

Speaker 9 (01:17:29):
Well, you used to have you know, there's always a
few bad apples and every every basket and that, but
that's all the media talks about. Yeah, right, unfortunately, Well,
I mean we insurance a snake salesman that came around
after someone took out of reverse.

Speaker 2 (01:17:42):
Yeah, we heard all the time, right, But ninety nine
point nine to nine percent of the people that are
in the financial services industry or honest have high integrity
and they're doing the right thing for their clients. That's
the bottom line. And that's what I believe. And I
don't like it when I hear people talk negative. Listen,
we only have a minute left, Matt. Do you want
to say anything like real quick that to leave an
impression in any way whatsoever?

Speaker 5 (01:18:06):
I think I would just have people take a look
at it, do do research, do work on the web,
Google the reverse mortgage, google the heckum. If they want
to get in touch with me, I'm happy to leave
my information or Drew can.

Speaker 6 (01:18:21):
But it's about education.

Speaker 5 (01:18:23):
It's about education learning about the product and how can
it fit into your life and your retirement plan?

Speaker 2 (01:18:29):
All right, Matt, thanks a lot for taking time out
of your schedule. We appreciate you calling in on Saturday morning.
I know the drewill probably touch base with you in
if you're in near future. God bless and we'll talk
to you soon. Thank you, Thank you.

Speaker 6 (01:18:40):
Matt, appreciate your time. Be well.

Speaker 2 (01:18:42):
Okay, all right, we only got about ten seconds here.
I'll give out our telephone number any questions or comments.
It's one eight hundred talk WGY. That's one eight hundred
eight two five fifty ninety nine. We'll give out Drew's
telephone number when we get back.

Speaker 3 (01:19:06):
Standing in the ring with his head hung, couldn't get
a ticket.

Speaker 5 (01:19:14):
It was a sold show.

Speaker 3 (01:19:17):
Heard the roll of the crowd.

Speaker 2 (01:19:19):
You can read je the thing. What is that to
the wall like a Dean free You had one?

Speaker 8 (01:19:28):
Get down away.

Speaker 2 (01:19:33):
All right, we are back by This is uh the
Retirement Planning Show. I'm Dave Kopek, your host. We've been
doing this a long time. I'm just trying to figure
that out the other day. I think it's almost twenty
five years now. Radio or radio, Dave Copek radio No.
Forty three years for business. Yeah, wow, getting old. They're
freaking old. I still got my teeth, so that's good.

(01:19:57):
That's good.

Speaker 9 (01:19:57):
You got your hair and you got your teeth. Rest
is all suspect. I just keep it covered, Keep it covered.
That's what my wife says, keep it covered.

Speaker 2 (01:20:08):
All right. Listen, We're gonna now talk to a realtor
here in the Capitol District region. I'm gonna let Drew
introduce her. She is with Howard Hannah, and we're glad
to have her here. We'll talk a little bit about
the real estate market locally here in the Capitol the
Distinct region, and what her thoughts are.

Speaker 9 (01:20:21):
Go ahead there, all right, Good morning, Terry morning, thanks
for coming on. Dave, surprise us. Dave is like, Dree,
you gotta come in do the show from seven thirty.
I got a charity golf out I gotta go to.

Speaker 2 (01:20:34):
I'm like, sure, I canceled it, so canceled it because
of weather. So well, it's a pleasure. I know that
you're not too far from me. I live in Half
Moon and I think you're not too far from where
I live.

Speaker 13 (01:20:47):
But it's glad as well.

Speaker 2 (01:20:50):
Yeah, I live in Upper Newtown Road, so I'm glad
to have you on the show. And you know, I
have a great interest in the real real estate market.
I have home in Lake George and I have one
in Clifton Parks, so you know, I've seen what has happened,
especially in Lake Georgia. And I'd love to hear your
thoughts about the real estate market here in the Capital
District region, and are you optimistic or pestimistic.

Speaker 13 (01:21:12):
I'm always optimistic about the real estate market. I have
to be. It's my livelihood. So we are in such
a great part of the country, especially in Saratoga County
where the three of us live. Home prices have continued
to rise the media and sales prices up five point
three percent over last year, which is amazing. Even with

(01:21:35):
the little bit higher interest rates that we've seen, the
prices have continued to go up, which is encouraging. Our
month supply of inventory has increased about twenty percent. We
have a two point four month supply of inventory currently
and if you guys don't know, a balanced market is

(01:21:55):
about six months supply. So we are still in the
seller's market.

Speaker 9 (01:22:00):
And I read something the other day speaking of which
because they they I'll get the stat before we hang out,
but I did see a nice, really interesting chart. So
a lot of people think look at real estate's gone up.
Is there going to be a bubble? This, that, and
the other thing? I don't see it. I see still
more demand than there is supply. And one of the

(01:22:22):
figures that I saw in this chart was the wreath
that we're equal to the highest level of children living
at home. So I think it's like something like seventeen percent.
I'll find this the book.

Speaker 2 (01:22:35):
The boomerangs or just like our children are coming back
are living in our house and they can't buy, whether
they're afraid of interest rates, or they keep getting out bid,
or the inventory is too low. So that that whole.

Speaker 9 (01:22:51):
Pool of people and this is the twenty five to
thirty four you know demographic that I'm talking about. So
you have I think tremendous underlying demand, uh still out
there that'll continue for the next few years. Obviously, we
can't predict more than a couple of years in this business.
And uh, I think when when you do start seeing

(01:23:12):
a five handle on interest rates, you'll see an acceleration.
I think you're going to see acceleration if if the
people that have those two and three percent interest rates
from COVID, you know, will put their house on the
market and upgrade or downsize or what have you.

Speaker 2 (01:23:25):
Yeah, do you see that at all? Well, I see,
I mean I see it in my own I know.
I was going to say, I see it personally in
my own life with family members and loved ones. But
the bottom line gets down to is that developers have
told me good friends of mine, is that they're not
doing the construction because the cost of land, the infrastructure

(01:23:46):
building out a development today is just so astronomical, and
what a cost in order for you to get supplies
and lumber, et cetera. So that's that's the message that
I'm getting, Terry. I don't know, maybe you can highlight
that a little bit. A lot of these developers are
having a hard time basically getting a you know, shovel
in the ground because of the cost of land and
what a cost to go through the approval process.

Speaker 13 (01:24:10):
Yeah, I was amazed. A couple of years ago, I
had some land for sale. I think it was about
seventy five acres with a house on it. So we
were talking about the subdivision possibilities and the development possibilities,
and I was blown away by the numbers. I had
a developer specialist that helped me price how much it

(01:24:32):
would be to develop that land, and I couldn't believe
the infrastructure costs to do what they needed to do there.

Speaker 2 (01:24:39):
Plus plus the other thing.

Speaker 9 (01:24:40):
A friend of mine two years he's been trying to
get approval for eleven house subdivision and he finally got
the approval. Absolutely, like they couldn't throw anything more at
You know, some developers are very good friends of mine.
And that's that's the messaging that I get from the
developers that are personal friends of mind, that you know

(01:25:00):
the cost of going through the process right now. And
now there's some things going on environmentally in Saratoga County,
Half Moon, et cetera that's also going to impede development. Now,
I'm a big believer in development. I believe in the environment,
but you know, these costs, I think, you know, Terry,
maybe you can get a little bit more specific. Is

(01:25:21):
really having an impact. It used to be a three
hundred and fifty four hundred thousand dollars houses, now five
fifty six hundred.

Speaker 4 (01:25:28):
Oh.

Speaker 13 (01:25:28):
Absolutely. I have people come to me all the time
and say, Hey, I just want to ranch in Clifton
Park and they're like, but I only had I can
only spend three fifty And I'm like, Okay, it's not
going to get you very much in Clifton Park. Unfortunately,
You're you know, one new construction is impossible at that
price point. You're going to have to look in the
outlying areas. You know, you're you're unfortunately not going to

(01:25:49):
be able to get in Clifton Park a new build
at that price point. Right, so you're going to be
looking at an older home. You know, prices have really
gone up, so exactly what you just said. It's shocking
the different year over year, and.

Speaker 2 (01:26:04):
What's the new?

Speaker 9 (01:26:05):
What do you think what do you think the new
first time home buyer prices these days? I mean when
I was a first time home buyer, I was one fifteen, right.
For our new house, you got a three bed, two
bath in Luther Forest, two car garage. It was on
a slab. I think I paid one hundred and fifteen
thousand dollars for it. That was that was the first

(01:26:28):
time home. That was probably three hundred thousand change. They
were just sold for more.

Speaker 13 (01:26:31):
Than at least three Yeah, So yeah, I'm going to
say three to three fifty.

Speaker 9 (01:26:37):
What's the new? What's the new first time? Is it
three fifty? Is that the new first time home, I
think so. Yeah, and still seeing a lot of cash
offers out there, multiple, multiple, multiple bids, multiple offers on homes.

Speaker 6 (01:26:53):
I am.

Speaker 13 (01:26:54):
I'm not seeing the craziness of a couple of years
ago where we had, you know, maybe fifteen or twenty
offers on a property. I'm seeing maybe three, four or
five offers on a property. And you know, not every
location can warrant that, but definitely in the areas like
Clifton Park or Saratoga that I tend to be in

(01:27:15):
a lot. Did you see that? Yeah, five offers.

Speaker 9 (01:27:20):
A mutual friend of Terry and I moving to Texas
some years ago, and what was that? Thirty eight offers and.

Speaker 13 (01:27:27):
Sixty five We had sixty four showings and I told
them to go out of town. They were going home
searching in Texas. So I said, great, we're going to
lift it that weekend. We had to put fifteen minute
increments on showings, fifteen minutes. We had sixty four showings

(01:27:47):
in three or four days, and we had I think
we had twenty two offers. If I remember twenty two
or twenty four offers, I remember them.

Speaker 4 (01:27:57):
That was.

Speaker 13 (01:27:59):
Oh, I'd have to.

Speaker 2 (01:28:03):
Look true, It's okay. It was just it was. So
when you're in that situation, Terry, just out of curiosity,
you got like twenty twenty offers. Is it almost like
an auction, you know what? They keep on bidding one
another or is it like here it is? Yeah, this
is the final one. We're not going to have any
more competition. What happens? How does that work out?

Speaker 13 (01:28:23):
So we set a best in final deadline for them,
So we said, you know, maybe Monday at five o'clock
best in final offers or due. So then I sit
down and I create a spreadsheet with all of the offers.
I remember them saying to me, pick your top five
and then we're going to review them. So they put
a little bit of pressure on me, but for me,
that's what I do every day, So that was easy.

(01:28:44):
I just you know, full price offers. We were just
setting aside. When it came down to it, it was
who had the most money or the best financing, right,
because it's not always about the most money. It could
be about the financing even who they're financing with. Yeah,
and then and who had the most money down? So

(01:29:05):
was it fifty percent down? Some people had twenty percent down.
But we were taking really good offers that an a
normal market would have been accepted and just setting them aside.

Speaker 6 (01:29:16):
Wow for the best. Yeah.

Speaker 2 (01:29:18):
Well, so the bottom line gets down to is right now,
I'm assuming that Saratoga County's hot. We all know that.
You know, the demand in Saratoga County seems to be,
especially Saratoga Springs. What are other areas in the Capital
Distinct region that are percolating that are great opportunities.

Speaker 13 (01:29:37):
I mean the like you happen to mention like George,
Like George is is big. Anything on a lake locally
is selling like still like costakes, it has to be
it has to be priced competitive, you know, it has
to be priced right. But I'm seeing multiple offers. You know,
we were involved in a multiple offer situation on Saratoga

(01:29:57):
Lake and then eight nine undred a million dollar price range.
So you know it's still in high demand. You know,
most of the Capital District is doing wow Saratoga. Saratoga
County in general just happens to be. It's definitely more
of a specialty for me and where I live. So

(01:30:18):
and we're lucky to have the market that we do locally.

Speaker 2 (01:30:22):
When I was when I was in downtown Albany back
in the eighties and nineties. Uh, you know, the brownstones
and the historic rehab were a big deal, big deal.
A lot of the young professionals, people that worked in
downtown wanted that type of a property. Is that still
the case? Do you still see you know what we

(01:30:44):
used to call the yuppies, you know, back in my day, right,
remember the up the yuppies were looking urban professionals they
were looking for they were looking they were looking for
those types of properties. Is that the case anymore?

Speaker 13 (01:30:58):
Yeah? I mean that's interesting. I just had this conversation
yesterday with a colleague about some of the Brownstones in
Albany that she does quite a few, you know, she
sounds quite a few of. And yeah, they're still really hot,
but the prices have gone up so much on those
particular properties that it's just a little bit less affordable,

(01:31:20):
so that they are they are still really hot, but
we were discussing how high they've gone up.

Speaker 9 (01:31:27):
And I see in those markets that you talk about
all many, Dave, those two three four families, people trying
to buy investment properties from atle income are far and
few between, you know, on the market. They go, they
go super fast, they do I think you have a
big investor appetite out there.

Speaker 2 (01:31:45):
Still, we got a lot of people I saw in
the business Review. I don't know if you saw it recently,
and I don't know if Terry saw it. You got
people from Florida that are coming up to Albany to
buy multi units. I didn't see. And I think the reason.
I think the reason for that. You know, it's all
based off of cash flow in the price, but I
think affordability because, as we're all quite well aware, properties
in Florida have skyrocketed in value over the last four

(01:32:07):
or five years, and maybe not so much as you know,
like a mid market like Albany that presents opportunities. Let
me ask you a question, Terry, because before I forget,
I was thinking about this when Drew said that you
were coming on. You know, my daughter's going to FAU
Florida Atlantic University and she she's not gonna be on campus.

(01:32:28):
She's gonna be on the fringe of campus for student housing.
And I just told Drew, I don't know who owns
this building, but they it's got to be like a
fire hose cash flow. I mean, we're paying a lot
of money monthly for her to live in this unit,
and there's got to be thirty units there, and I'm
saying to myself, I'm multiplying my monthly. There's three, three persons,

(01:32:49):
three bedroom units, and there's like thirty of the I'm
gonna say, this guy has got to be here. This
gal has just got to be choking on the cash flow.
Do you ever come across things like that? Because I
nderstood that there's a couple of properties that you really
want to look at, student housing being one, and then,
believe it or not, trailer parks. Yeah, big appetite trailer parks.

Speaker 13 (01:33:11):
There's them, both big moneymakers.

Speaker 2 (01:33:13):
Absolutely got a guy, got a guy with his portfolio.
Yeah yeah, So do you come across you come across
properties like that at all? As far as opportunities for investors, Yeah.

Speaker 13 (01:33:27):
We I mean we're a little bit more limited with
those number of units locally, but I do see in
you know, say, for instance, Troy or all many people
looking for multi families because they want to invest where
their child's going to college, because that college housing is
out of control. So they're investing. They're going to be

(01:33:51):
a landlord while their child's in school, and they're going
to too. I'm sorry, they're going They're going to invest
and let their child stay there and then make money
instead of losing so much just paying for their child
to my campus, whatever it might be.

Speaker 2 (01:34:10):
Our housing is paid annually, so there's no like you
pay for nine months and she comes home for three months,
twelve months, you pay for twelve months. You pay for
twelve months of house unless you're lucky enough to sublet
it during the summer y.

Speaker 5 (01:34:24):
You do coact.

Speaker 2 (01:34:25):
Yeah, yeah, you know.

Speaker 9 (01:34:26):
I know a friend of mine, they go to school
in Newport and same thing. Someone's got a whole bunch
of units two three for you maybe single family homes
that put a bunch of bedrooms in. Yeah, fire hose
cash flow right outside campus. Another friend has a kid
going to University of Tampa. Bought himself a condo there

(01:34:46):
a few years ago. Sure, and you know that's where
his daughter is on and that's where they vacation.

Speaker 2 (01:34:50):
Well that's what I had looked at that myself personally.
But I don't want it. You know, I was in
the real estate business at one time. I'm never going back.
I'm never going back. But Terry, give us a highlight
of what you think the future holds. As far as
the Capital District region with this whole high tech that's
going on in Luther's Forest and Malta and I mean

(01:35:12):
it seems to be nanotech and all that the whole
nanotech thing seems to be exploding up there is Do
you have any insight on that at all.

Speaker 13 (01:35:21):
Yeah. So, I mean Malta and surrounding areas have continued.
The real estate there has continued to rise just because
of those companies and all of the companies that feed
off of them coming to the area. And you know
Albany and Rens Play as well, because we have a
lot going on over there. So we've seen tremendous growth
in those areas because of those companies coming. And you know,

(01:35:46):
when the home press has become a little less affordable
and those areas, they tend to go out to the
outer lying areas, which is why we just are seeing
what we're seeing locally, and no area really has much
of a problem.

Speaker 2 (01:36:00):
That's what happened to Saratoga.

Speaker 9 (01:36:02):
You get, you know, the average person gets priced out
of that market so that they start going to the outputing.

Speaker 2 (01:36:06):
Well, I was just gonna say, I'll mention some names
and you I know that you will Skylarville right still
Water Cambridge, Cambridge, you go through all those these communities
are really green Greenwich.

Speaker 9 (01:36:18):
And you look at south of Albany, that that market
green Columbia County. Sure, New York City people coming up there,
they you know what's it's a studio in New York
City is over a million dollars, so they can come
up to upstate New York work remote. And that real
estate market's you know, booming as well. Terry, I'm going
to have people. I'm going to have you give out
your telephone number. If people want to get a hold

(01:36:39):
of you, how do they do that? Because we're gonna
have to break here in a couple of minutes, and
I got to do a kind of a summary of what.

Speaker 2 (01:36:46):
We talked about today. But if Terry, if anybody wants
to reach out to you, how do they get a
hold of you?

Speaker 13 (01:36:51):
Sure, so they can reach me on my cell at anytime.
It's five one eight three three nine seven six.

Speaker 2 (01:37:00):
Let you give that out one more time on.

Speaker 13 (01:37:03):
Five three three nine seven six one four. More than
happy to answer any questions they have. And we have
some changes in the real estate market happening. And I
know lots of people have had questions on what's happening.
So I'm more than happy we didn't get into that today,
but more than happy to answer those questions for them.

Speaker 9 (01:37:20):
Thank you, Terry, appreciate you coming on again. Terry Krzeski,
Howard Hanna in real estate five one eight, three, three
nine seven six one four. Appreciate your insight and your expertise.

Speaker 2 (01:37:30):
Oh that was good. She's very good. Yeah, she's very good.
Good stuff. Local Sheron lives here. She sounds like she's
really low key level, you know, knows the market, knows
the market. You know, if you had told me, you know,
my first house I bought in rivier estates for sixty
nine thousand dollars. My first house I paid more for

(01:37:52):
that pickup truck out there than I did for my
first house. Came by a truck for less than eighty
It's great, seventy three thousand and change in tax and
all the other stuff. So thing is is that what's
crazy is that, you know, you know, I don't know
where the top is the ceiling with real estate. I
guess real estate always does it always go up? Always?

Speaker 9 (01:38:11):
No, it rarely goes down, So it doesn't always go up,
but capital region because obviously real estate is is is
geographic specific. Even you look at two thousand and eight,
two thousand and nine, which is the worst thing ever
you know for real estate that was caused by the
mortgage industry. Sure you look at COVID. You know two

(01:38:31):
recent incidences. Uh, COVID barely in effect on real estate.
Actually real estate took off obviously, probably disagree with you there.
And the locally No I'm talking okay, I'm talking commercial
real estate, commercial, different story, right commercial. You go down
to well, look at look at this, I say it

(01:38:52):
all the time, this beautiful complex that we're in right here. Yeah,
do you realize that most of this is empty empty?
I use the facilit before I came in, it's all
vacant office.

Speaker 2 (01:39:02):
When I first came here and I started doing radio
here at WGUI, this whole thing was packed.

Speaker 6 (01:39:06):
Right.

Speaker 2 (01:39:07):
But the thing is is that we live in a
world today, and I probably should have talked. We'll have
her back on we'll ask her, and maybe you have
insight on this. Most of your talent today wants flexibility
as far as working from home at least one or
two days a week.

Speaker 9 (01:39:25):
Right, try to be in the office Tuesday, Wednesday, Thursday,
home Monday, Friday.

Speaker 2 (01:39:29):
So seems to be the norm. Yeah, so that's tough
in my business and financial services. I don't know about
real estate. With financial services, when you're working with a
team and you need answers and you've got to go
over certain things, I've never been a major advocate of that.
You know, unless you're a financial advisor, you work with
the team, you don't have a need for a lot

(01:39:52):
of their services. Maybe you have your own little niche,
trading niche or whatever it may be. But I wonder
how that's going to change the dynamics if will we
ever go back to the way things were where people
would work nine to five inside an office.

Speaker 9 (01:40:09):
Well, we ever go back one hundred percent? No, I
don't think so. I don't think we never never. I
think that's changed the landscape for ever took me, especially
with technology, right, It took me a.

Speaker 2 (01:40:19):
Year to find Chris McCarthy to come in and be
part of our team, right as I wanted to make
sure that we had the right person, and we do.

Speaker 9 (01:40:27):
I think people want to come in though this is
different than a few years ago. I think people want
to come into the office because I could never work
from home.

Speaker 2 (01:40:33):
I can't do it. I can't, I can't. You and
I talked about this one. If my way goes away,
we have talks in the house.

Speaker 9 (01:40:38):
Yeah, I won't. I still won't work in the house.
I'll just come by too many distractions. It's called a refrigerator, right,
it's called honeydews, it's called yard maintenance.

Speaker 2 (01:40:50):
It's got a big stick in the corner. If I
don't do it, she just beats me. Does your refrigerator
have an alarm on it? It should? It should? The the
uh what do they call it? Where you keep all
your goodies inside the cookie jar at the pantry. The pantry,
that's the big word. I'm looking for a pantry. That's
the one that needs to be bolted.

Speaker 9 (01:41:11):
I got to fix that because when I open mind,
it creaks, and that gets me in trouble. She's got
he does eating down there? What he got I heard nothing, nothing.
I'm just I'm counting the chips.

Speaker 2 (01:41:23):
And the bags, just giving the dogs a treat. That's
my problem is I'm like a cow. I graze. I'm
a grazer. Yeah. Oh, if you're bored, Yeah, you don't
think you know, I'm not eating a lot. It's only
you know, two cookies and then fifteen chips and twenty
twenty peanuts. Yet all up?

Speaker 9 (01:41:39):
But all right, let's summarize a little bit because you've
got to say goodbye and I got to get out
of here too. You know, I think anything that we
talked about today, I'm going to go back to what
we talked about as far as the reverse mortgage. Our
job is to facilitate ideas and concepts, not to tell
you what to do or what not to do. And
I think that guy really resonated with me today about

(01:42:01):
the options that you guys have available with reverse mortgages
and how it can give you a better life.

Speaker 2 (01:42:07):
You have that brochure. How do they get a hold
of Just go to.

Speaker 9 (01:42:10):
Drewsteam dot com. I feel like that's easier than a
telephone number. But Drew's team dot com my telephone numbers
on the website.

Speaker 2 (01:42:17):
Just shoot me a.

Speaker 9 (01:42:18):
Call or text or email whatever phone's on seven days
a week, I'm easy to get a hold of.

Speaker 2 (01:42:22):
Yeah, and I can email that over.

Speaker 9 (01:42:24):
I think I don't know if you're out, but I
gave you a dozen or so of those.

Speaker 2 (01:42:29):
Yeah, No, I got them time ago. I've got him
right in my office. So either either one.

Speaker 9 (01:42:32):
Obviously, obviously you guys know how to reach Dave, but
just go to drewsteam dot com if you want to
reach out to me directly.

Speaker 2 (01:42:39):
And as always, you know anything that we discussed, we
offer a complementary consultation at either our AUBNY office through
the other four that we have in New York State.
We would love to have the opportunity to sit down
with you. As I said, this past week, we met
some wonderful people from radio, some new clients. It's always

(01:43:01):
fun to meet with people and talk to them, especially
people that have been listening to the show for a while.
I said to that one couple, what took you so
long to get in? You know what took you so
long to motivate? And I always want to know, you
know what, what what motivates you to take action? Because
for most of us, that's the biggest thing.

Speaker 9 (01:43:18):
Don't you think that two things in life that motivate
are fear and greed?

Speaker 2 (01:43:21):
No doubt? Right, no doubt. I feel some usually there's
a life event, like I was just going to say,
there's a life event that changes your life and you
know that.

Speaker 9 (01:43:31):
You're going to have to do something, or friend's sisters,
aunt's uncle, something happened to them. Well, then you reflect
on your own situation.

Speaker 2 (01:43:37):
Absolutely right. And uh, you know people don't know this,
but Drew, my good friend here, had a total shoulder
replacement down in New York City, and I would say,
you're doing pretty good from the last time I saw you. Yeah,
you're moving that arm pretty good. Right now. I can
get up. That's pretty amazing. I can wash my hair
with left hands. And it was. It was the entire shoulder,

(01:44:00):
full replacement. Yeah, it's amazing.

Speaker 9 (01:44:01):
Yeah, Well you speak of healthcare. When you were talking
about the expense of healthcare. I looked at all the
expenses regarding this replacement. It was over one hundred and
twenty thousand dollars.

Speaker 2 (01:44:11):
That's all. Obviously, I gotta I gotta pay a portion
of that. Well, holy I told you what I'm going
in for, Julie, can't wait. I'm going in for a.

Speaker 9 (01:44:18):
New head, full of the botomy, going in for a
new head, you know, do the whole thing.

Speaker 2 (01:44:24):
Had some new ear, some new ears, I mean too,
pay double. That's always been my problem using my ears
and that flapping my mouth so but listen, folks, have
a great weekend. I'll be back from twelve to one
today do it live. I wasn't going to be in
but because we are no longer doing the golf outing,
I will be here from twelve to one talking retirement Ready.

(01:44:47):
It's going to be a topic specific show again. If
we can be of assistance to you, give us a
call at our office at five win eight five eight
zero one nine nine. You can get a hold of
Drew Drew's Team dot com and be safe out there
and enjoy the weekend. I think it's going to be
a beautiful, beautiful week I think right. I think we're
heading up the Lake George. Hopefully we'll get on the
boat and my sister in law and my Brondla La

(01:45:08):
are here, Danny and Leslie, so God bless everybody will
see it. Twelve.

Speaker 1 (01:45:13):
Thank you for listening to the Retirement Planning Show hosted
by Dave Kopek, w g Wise Retirement Planning Specialist. If
you would like to talk with Dane or someone at
the Retirement Planning Group, call five one eight five eight
zero nine one nine. That's five one eight five eight
zero one nine one nine. During business hours or visit

(01:45:33):
RPG retire dot com. The Retirement Planning Group has five
convenient offices located in Albany, Malta, Glens Falls, Syracuse, and Oneana.
Tune in again next week for retirement planning strategies with
Dave Kopek right here on wg wi's Retirement Planning Show.
The information our services discussed on this show is for

(01:45:56):
informational purposes only and is not intended to be personal
financial advice. The investments and services offered by US may
not be suitable for all investors. If you have any
doubts as to the merits of an investment, you should
seek advice from an independent financial advisor.