12/13: Financial Alignment

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Episode Transcript

Speaker 1 (00:00):
Hello, and welcome to Money Talks with Terry Sandbold and
Blake Sandbold is off this weekend. I think we can
let him have one.

Speaker 2 (00:07):
He can have one weekend off. I guess we will
grant it. We'll do that. Being the dad, I can
give my son a couple of minutes off.

Speaker 1 (00:15):
Okay, that sounds good. Well in his absence, what shall
we be talking about today?

Speaker 2 (00:21):
Well, today we want to talk about I guess i'd
put it in brackets financial alignment, meaning how are you
doing in regards to planning your financial future. So today
we're going to go through a couple of key things
that are important for all ages and stages of your
financial futures. The thing that's really important, as you know,
as you think about this time of the year, people,

(00:42):
it's easy to let financial planning slip into the back
burner right now going into December, but there's a lot
of decisions to still make before you wrap up your
year and look at how to be ready for twenty
twenty six. So we'll go through a lot of different
things today. You can pause. I'll let you all have
a holiday pause on your financial decisions here working, so

(01:04):
you can go enjoy I sometimes tease a little bit
and say every year, I almost feel like a little
bit like Scrooge, but in a little different twist. And
what I mean by that is we're counting money, but
we're counting your money, not my own money. We're counting
your money up until the very last day before the
Christmas takes place in the holidays, So we're doing this

(01:27):
for your benefit, not for our benefit. I want to
make that disclaimer up front. So when you're thinking about
your financial future, it's very important to have a team
that can help you as well. And as the world
gets more and more complex, I think that is something
to really consider. So if you're trying to do your
financial planning all by yourself, give us a call. What

(01:48):
I would recommend is have us just give you a
second opinion on what you're doing. If you're doing very well,
we'll compliment you and say that's great, keep on going.
But I think there's going to be a lot of
information that can help you make maybe better or more
fine tune decisions with your financial future by working with
the financial planning group like Sandbal Financial.

Speaker 1 (02:08):
Group one hundred percent. I mean we talk about this,
you know, each and every week, and we have for
a couple decades now Terry on the air, and but
you know, part of the goal is to help people,
you know, spark their imagination to see what's possible and
to find out, you know, as early as they can,
how they can move forward and set themselves up in

(02:30):
the best possible.

Speaker 2 (02:31):
Oh sure, yeah, And it reminds me of my very
first radio show and going back to two thousand and two. Actually,
for people that have listened to us for many, many years,
we thank you. But way back then, I remember my
first one hour show. I brought about eight hours of
material to that first show because I wanted to tell
everybody about all the things they could possibly do or

(02:53):
should do with their financial future. So twenty three years later,
we're still going through that and the world changes, as
you know, almost by the minute, so very very important
to keep control or keep ahead of what's going on.
So we're doing the show because we enjoy helping people
get to their next financial level, no matter what level

(03:14):
you are at. So if you're new to the show, welcome,
If you've been a loyal listener, we thank you, thank you,
thank you. And there's many many of our clients that
just get a refresher by listening to the show, even
though they've been long term clients of ours. So the
thing that's really important is we're trying to be informative.
We want to cover your topics that you would like

(03:35):
us to talk about. Also, if you'd like to reach
out to us and give us a call with the
topic that you'd like to hear about, I think that's helpful.
Also give us a call at nine five two five
four four two eight three seven. Again, our number is
nine five two five four four two eight three seven.

(03:55):
Or if you'd like a second opinion on your financial future,
or if if you're in your twenties, thirties, forties, fifties, sixties, seventies,
or even eighties. At this point, you need to do
financial planning throughout all of those years, and our job
is to make sure that you don't have to take
it on all by yourself. So we're here, we're growing,

(04:17):
We've hired more people just in the last couple of weeks. Here.
We have clients all over the country, not just in Minnesota.
Our office is in Minnetaka. So if you are wanting
to see us in person, you can have an appointment
with myself or one of our team financial advisors, and
we do have advisors in their twenties and thirties and

(04:38):
forties and fifties and sixties and seventies. So I think
that's important for you to know that as well, so
we can team you up with the right people to
help you with your financial future. But again, we enjoy
helping people succeed. That's why we're in the business. And
if you succeed, we succeed and we grow, and we've
been doing that at a very very good pace from

(04:59):
what we here. So oh, just just to compare.

Speaker 1 (05:04):
I almost didn't get let back to the studio the
other day because you had a new person at the
front desk if I hadn't met yet.

Speaker 2 (05:09):
Well, she's doing her job. Yes, she needs to know
who you are. That was our mistake if we didn't
inform her upfront, so she.

Speaker 1 (05:16):
Didn't tackle me or anything. But trust me.

Speaker 2 (05:18):
So this Kelly person's wandering through our offices here getting
going back to the studio, we have a we have
a professional studio in our office at Sandwal Financial Group,
just so you know too. So but anyway, we look
forward to each and every one of you having a
great and to twenty twenty five and a great start
to twenty twenty six. So today we're going to talk

(05:39):
about your financial alignment and talking about the different ages
and stages to be prepared.

Speaker 1 (05:45):
Absolutely, Well, what's the first age and stage we want
to tackle today, Terry.

Speaker 2 (05:49):
Well, we could start this earlier than this, and during
the show I might even regress to younger than twenty
because there's there's now the Trump accounts, and I'll go
through a little bit of that during the show as
well today.

Speaker 1 (06:01):
That'll be cool.

Speaker 2 (06:01):
Yeah, but yeah, So we'll start with the twenties in
this example here, and this is really building the foundation
for a lot of people. The thing that's really important
in your twenties if you have not started, have not
yet started to get started with your financial future. And
what we mean by that is look at your savings,
get some savings accumulated, and look at what types of

(06:24):
things may be beneficial. You still may need those dollars accessible,
so making sure that the right type of account may
make sense and we can help you sort through that. Really,
understanding and living within your means is a key thing
in the twenties. It's like if you get a bigger paycheck,
your first thought is, oh, I get to spend more money.
And we always use this example, try to pay yourself

(06:46):
first and then spend the rest. And what I mean
by that is make sure you take care of your
budget issues. Make sure you ideally if you have some
extra dollars, to systematically start putting dollars away. It could
be fifty dollars a month, hundred dollars a month, getting
something started. It's a mindset for you. If you get started,
you can add on to that. I think the hardest

(07:09):
thing for a lot of people is getting started though
or putting it off. At the beginning of the year,
we might do a show on procrastination.

Speaker 1 (07:17):
We've mentioned that a couple of time.

Speaker 2 (07:19):
We don't want you to turn off the radio just
because we're talking about procrastination.

Speaker 1 (07:23):
No, it's not a shaming show, No no, no.

Speaker 2 (07:25):
But you know, I've had people come in and I'll
ask them when they come in for the first time
after the meeting, I said, what did you think about
this meeting? And a lot of them say, I wish
I would have came in here sooner sure than I did.
So I think for a lot of people that are
at retirement that would be one thing, if they could
change anything, they wish they would have started earlier. They

(07:47):
wish they would have contributed more earlier. Compound interest work
for them instead of trying to do catch ups, so
to speak, waiting too long. So you know, take a
look at what's right for you. What are your financial
goals in the near term, and this is for people
in their twenties and it's getting started. And what liquidity
needs do you have for those dollars? So one thing

(08:10):
that's important too. If you're starting a new job, you
might have like a four to one K at your
with your employer. Understand what the company match is and
why say that is if you put in a dollar
and they give a fifty cent on the dollar match,
you're getting a fifty percent return that first year on
that money. And you did not have to put that
money in the company did So why not try to

(08:32):
take advantage of least of that match, you know, looking
at So that's really important. Understand what your four one
K choices are also, because a lot of people they
might set it and forget it and just think it's
going to work, and it'll work to some extent, but
if you can fine tune it an increase two or
three or four percent per year for five, ten, fifteen,

(08:55):
twenty thirty years. It's a huge difference for people, so
many things to look at there. Another thing in your
twenties is what is your investment style or do you
have an investment? Do you even know? Yes? And you
know what that means. So the longer your time horizon
to retirement, generally, the more risks you can take on.
And we use and we sometimes call this educated risk

(09:18):
because it's not just gambling. It's looking at risk versus return.
What is a simple question to maybe ask you upfront
would be between one and ten. If one is low risk,
very conservative, possibly a low return versus ten is high risk,
very volatile, very high upside, but it could be very

(09:39):
negative downside. What number are you and if you're newly married,
if you're in your twenties or thirties and you're newly married,
it's important to understand what each of you are from
one to ten. And I've asked that question to people
and one will say a ten, one will say a one,
and I have to satisfy both of them. So that's
the tricky part of that.

Speaker 1 (10:00):
One hundred percent sure and that's one of those that's
one of those things too where you know it comes
down to asking questions. We're going through financial alignment and
we're kind of taking a peek at the twenties right now.
We've got much much more coming up after the break.
You're listening to Money Talks with Terry Sandbold. Blake Sandbold

(10:21):
has taken a Saturday off today. We're talking today Terry
about financial alignment and starting from pretty early.

Speaker 2 (10:28):
Yeah, we're starting with the twenties. People in their twenties.
And before the break, we just briefly talked about if
you have a four and K through your employer, understand
how the match works and take advantage of that free
money from that employer. Also think about, you know, determine
if you'd like to make a wroth contribution some forrow

(10:48):
and case. Most forur O and k's now have a
WROTH option on it or a pretext traditional option on
it if you're younger. In most cases, we would recommend
to go the WROTH And the reason for that is
all of that money will grow tax deferred, but then
when you go to take the money out under a

(11:09):
qualified distribution, all of that compounding will be income tax
free as you take it out.

Speaker 1 (11:15):
Which is an absolutely awesome option that people didn't have,
you know, a number of years back.

Speaker 2 (11:21):
Right, yeah, right. And then also you may have an
option on the match where you did not in the past.
They did change this.

Speaker 1 (11:28):
That's pretty recent, isn't it.

Speaker 2 (11:29):
Yeah, So you might be able to check and see
if your company will do the match under the ROTH
category or do they defer back to the traditional category. Interesting,
so in some cases you might have two pots of
money when you get to retirement. One section will be taxable,
one will not be taxable. And then at that point,
if you moved it out of the four and K,

(11:50):
we do a rollover basically of the traditional piece to
a traditional IRA first, and then the ROTH portion can
go to an individual roth as a role over.

Speaker 1 (12:00):
Oh you can't see, you don't have to leave it there.

Speaker 2 (12:02):
No, you don't have to leave it there. You can.
We can split it up and keep it going in
the same text preference strategies there. So it's very important
to understand that. So another thing, you know, if it
is a stepping stone, meaning you're going from job to
job to job, keep in mind when you leave a company,
you can roll your four one K. You don't have

(12:23):
to leave it behind at that company's with your company
sponsored program, and we usually will recommend to do that
because if you've left the company, why look over the
fence at your money. Take it with you, meaning you
can roll it over and put it into a traditional
IRA and then expand your investment choices, or if it
goes into a ROTH, if you have a ROTH version

(12:45):
of that. Again, look at the many, many choices that
are outside of the plan itself. Another thing, just to mention,
I'm kind of jumping to fifty nine and a half quick,
just as the thought process all come back to the twenties.
Here in one second, on a four to one K,
if you are getting closer to retirement, you're fifty nine
and a half or older, still working, you can do

(13:06):
an in service withdrawal to an IRA or to the
ROTH IRA while still working, and a lot of people
do that because it gives you a lot of investment choices,
many many more tens of thousands of choices versus in
your four and K maybe ten, twenty or thirty choices
for most companies. So sometimes we kind of tease and

(13:27):
say we should give everybody a birthday card that's fifty
nine and a half because it gives you an option
to be able to do that while you're still working.

Speaker 1 (13:34):
Perfect.

Speaker 2 (13:36):
So also if you're in your twenties and you have
liquidity needs, again make sure that maybe that does not
go into an IRA or a roth ira a roth IRA.
One advantage of the roth though, is the contributions into
the roth can be taken out at any age. It's
just the gains have the fifty nine and a half

(13:57):
rule on them. But we might suggests putting it into
a taxable account. Or you say, I have a goal
to use this money in three or four years, and
here's what it's for. It maybe for a down payment
on a house, whatever the case may be. Then we
put it into a taxable account, meaning it could be
if it's under mutual funds or stocks or whatever, you
can have capital gains tax instead of ordinary income tax.

(14:19):
Oh so we can look at that as well and
build it accordingly.

Speaker 1 (14:21):
And if you if you, if you look at it
before you actually execute, you've got a lot more ability
to make an informed decision.

Speaker 2 (14:29):
Absolutely, so you have Ideally, as you grow your financial future,
you're going to have different pots of money. Some will
be considered after tax money. Some could be wroth money,
some could be pre tax money like a traditional IRA
or traditional four O one K. You might have a
four or three B four fifty seven deferred comp plan,
all these different types of directions. So when you get

(14:50):
to retirement, we can help you strategize what money should
you use first, second, third, fourth, et cetera to minimize
your tax bill and to be tax efficient for the future.
And then we even go way into the estate planning
side of that. How would you like your beneficiaries to
inherit money? You want them to inherit your taxable money,
your rough money, which would be income text free to

(15:13):
them as well. So there's a lot of planning going on.
So we ask the questions and we come up with
the answers too, So I think that's a good things consistent.
You might not think of all the questions. We'll put
those on the table as well. Perfect let's step into
the thirties and forties. So twenties, it's like getting started
is the main main message there, and we can help

(15:34):
you get started. Thirties and forties sometimes are called the
family years, and really the focus might be on besides
the investment side protecting the family's financial future. So that's
when ideally a lot of people maybe start to think
a little more about insurance as well. You know, more
expenses though, mean budgeting is crucial, so make sure you

(15:56):
and your significant significant other are on the same page.
That can be a discussion that you should have sooner
than later. Because one time I had a couple sitting
down in front of me and they were getting ready
for retirement and I and one was busy working outside
of the home. One was working inside of the home.

(16:17):
That's how I would phrase that. And then I asked
the one person, I said, now, when he retires, are
you ready for him to be full time at home?
And she's like, absolutely not. He's going to mess up
my whole schedule. I just don't know what to do.
I mean, I've had it all planned out for many
many years. Now he's coming back and it's like, oh,

(16:39):
what are we going to do?

Speaker 1 (16:40):
I want to know the title of the person here
at Sandbold Financial Group who you call in in a
situation like that, Well, we.

Speaker 2 (16:46):
Have a hotline. Well we have a hotline, Caitlin, probably
I have a hotline on that. Yeah, So it's it's
real important to look at all of this stuff. But
in your thirties and forties and forties, more expenses take place.
You might have college education, different things that are coming
into play. You might ideally, if you have an increase

(17:07):
in your career job wise and financially, are you making
sure the money's being distributed in the right direction for
second and third? You know that type of thing in
order so continue to grow your savings, really look at
money in the into retirement plans as well as outside
of that as well. You know, check in with your
employer plan contributions. Can you increase contributions because as your

(17:28):
income went up, don't forget about when you get a
pay raise, your future for your lifestyle probably increases too. Sure, Yeah,
so it's like you want to increase your retirement income
versus just staying at a flat line. You know, all
along the way, the cost of goods go up as

(17:49):
we go forward, So there's limits on four when k limits.
For example, in twenty twenty five, the contribution max was
twenty three five hundred dollars, but if you're fifteen old,
there's a plus seventy five hundred dollars catchup. And then
there's also what's called a super ketchup, and that's that's
if you're between sixty and sixty three, you can do

(18:10):
a super ketchup of eleven two hundred and fifty dollars
on top of the twenty three thousand, five hundred. But
iras are seven thousand dollars. I know, we're just giving
you this as last minute because you still can do
some ketchups on these things seven thousand dollars for IRA.
If you're fifteen above, you can do a one thousand
dollars catchup, and you can do for a total of

(18:32):
eight thousand dollars. So when you look at the numbers,
the numbers are going to increase for twenty twenty six.
The twenty three thousand, five hundred for twenty twenty five
is going to twenty four thousand, five hundred for twenty
twenty six. So there's there's some things there. The limit
on annual contribution to an IRA for next year is
going up from seven thousand to seven thousand, five hundred dollars. Okay,

(18:56):
so people sometimes forget about it. Years and years ago
the limits were two thousand dollars a year, believe it
or not. Oh yeah, so they've changed a lot over
the years.

Speaker 1 (19:06):
Absolutely well, Terry, each and every week. This week it's
financial alignment. But we do have a Money Talks meal
or that goes along with each show.

Speaker 2 (19:12):
What do we have yeap, we have financial tips for
people in their thirties, forties, fifties and beyond. So if
you'd like your copy, we will send that out to
you right away. You can give us a call at
nine five two five four four two eight three seven
or request online at sandwfg dot com.

Speaker 1 (19:34):
Welcome back to Money Talks with Terry Sandbold. It's just
Terry and I today. Blake has taking the weekend off
and we're talking about financial alignment. Terry, we've been talking
about in your twenties and thirties and forties.

Speaker 2 (19:45):
Yeah, and as you build assets and start a family,
you still have to do some estate planning. So people,
because what things can happen, and they do happen, So
it's very important to make sure that you are protected,
make sure that you have really looked at insurance life insurance,
for example, because let's say that you have one bread

(20:06):
winner or earner wag journer in your family. If that
person dies, what happens to the rest of the family. Also,
a lot of couples both work, but you're dependent on
both salaries to make everything happen. So if you had
to take half of your income away, what happens to
the home, what happens to the kids, what happens to
your goals? So insurance life insurance can be a very

(20:31):
good fill in as an asset to generate income is
one thing. A lot of times people think about, oh,
I need two hundred and fifty thousand dollars to pay
off my mortgage or whatever. The number is, okay, but
you also need income. So if somebody's making just a
simple example, if they're making fifty thousand dollars of income

(20:51):
net per year, but that person dies, and you what
life insurance amount would be the right amount? You might
be surprised with this. I might suggest to have a
million dollars of life insurance because at a very conservative
rate five percent, that would generate fifty thousand dollars of income.
So I'm just using a quick example here, but a

(21:13):
lot of people are way under insurt. They just think
of payoff to debt, but the income is a much
bigger number for most people. So it's very very important
to look at that, you know. So as we go
into that, another big issue is saving for child's education,
and there's many different ways to do that, and there's
there's a new plan that is hitting the streets, so

(21:35):
to speak, the New Trump Plan, and basically one of
the things I think is important there. And you're seeing
you're going to see more and more news on that.
That's on the news like pretty much every day right now,
at least for a piece of it. Sure, But what
caught a lot of people's attention was Michael and Susan
Dell contributed six point two five billion dollars or have

(21:58):
committed to fund this new program. They call it the
Trump Trump Plan. You know, it's an educational plan or
it's for kids when they're new born. Babies be born
between twenty twenty five and twenty twenty eight will get
a one time, one thousand dollars contribution. It may go

(22:19):
into as many as twenty five million eligible accounts.

Speaker 1 (22:22):
It's amazing, Terry, You've talked about the premise behind this
for years. You've used this as an example years.

Speaker 2 (22:29):
Yeah, And I thought I watched an interview of Michael
Dell just just a few days ago here and he
was talking about and I've talked about this on the
same thing, the little gray passbooks account I thought about you. Yes,
I talked about it. I've talked about that like it
was Midwest Federal for me back in North Dakota. Yeah,

(22:49):
and I would drag my parents in there when I
was like seven or eight years old. And I think
he mentioned eight or nine years old. Yeah, when he
was talking and that he had that same gray book
and he liked to see that stamped with the number,
so I could relate to it because and there's many
people that can relate to that. But that's how he
got his mindset to get started for his future.

Speaker 1 (23:12):
You know, and how it captured his imagination. It was
like the same story as yours.

Speaker 2 (23:16):
Yeah, so I thought that was interesting when he said, yeah,
they're a little gray book. I can just picture the
little gray book. I had a little gray book also,
you know. And and they literally did stamp with the stamp,
you know, it looked like it was printed, you know,
they put the put it into a machine, stamped it
right on their name, what the number was, and showed
your interest and oh here's the big number, bigger number

(23:37):
on the right hand side. Of the column. So but
but anyway, this donation, their donations really target children living
in zip codes. He made a comment about this. They
can't look at individual income, so they're looking at income
averages based on zip codes, and he wanted to make
that perfectly clear. I think when he was doing his talk,

(24:00):
if your median income for that zip code was below
one hundred and fifty thousand dollars, your children would qualify
to receive those dollars. It's going to be available. It
sounds like July fourth of twenty twenty six, so they're
looking at that. But it may it must be invested
in certain types of investments too. People are going to

(24:20):
wonder about that. And the research that I did on it,
it looks like it's would need to be in a
mutual funder ETF that tracks the S and P five hundred.

Speaker 1 (24:29):
Do you think that's a good one, a good way to.

Speaker 2 (24:31):
Do as far as just having a generic choice, it's
probably a good choice if you have to have just
one piece, because when you think about it in simple terms,
the S and P five hundred is, in plain language,
the biggest five hundred companies in the United States, and
you're getting the average return of that. So it's in
the market. So there's going to be ups and downs.
I mean, so some people might say, oh, I don't

(24:52):
want it to be down at all. Well, none of
us do. But if you're going to pick one choice,
and you had one choice for for a generic plan,
that might be a pretty good option.

Speaker 1 (25:02):
Well, to be able to do something like this at scale,
they almost have to pick something right.

Speaker 2 (25:06):
Or sure, yeah, yeah, And then there can be outside
investment additions up to five thousand dollars per year into
the plan. So these are all things they can add
two they can add two us oh okay, yeah, so
but that's the limit of extra contributions per year, you know.
So it can be set up on behalf of each

(25:26):
eligible child up to age eighteen, these extra contributions, so
beyond when they when they're talking about the three year
window that they're talking about right now, from one from
January you qualify if you're born January of twenty twenty
five through twelve the end of twenty twenty eight. Okay,

(25:47):
so right now they I mean, they could always extend that,
but that's how it's preliminarily put together right now.

Speaker 1 (25:53):
Well, and one of the comments that the Dell's made
at the press conference was that they were hoping that
other philanthropists would would join in, and maybe they will
if they start seeing the success from it.

Speaker 2 (26:04):
Yeah. Yeah, And I think what it's going to do, hopefully,
what it's going to do, it's going to catch on
for the parents to say, you know, we're getting this
jump start on this. We need to be we need
to chip in our own to our own kids accounts
as we go, and let's start building this. It doesn't
you know, it doesn't have to go in a certain
direction that I'm aware of at this point, you know,

(26:26):
for college for sure, or anything specific there. We'll have
to find out how they build the rest of the
story of this as well.

Speaker 1 (26:33):
Well. And they're mainstreaming it. That's what I love about
this terry. They're bringing this into perhaps areas and families
who wouldn't ordinarily necessarily have a planner or think this
was available to them. So I think it's going to
broaden the consciousness.

Speaker 2 (26:47):
Don't you I do. Yeah, And I think it's when
I think about it, I can use my own families example.
I mean I was, I was really into it. Actually,
I think more, I know much more than my dad.
My dad that doesn't like to talk about financial stuff
at all. That just I mean, fifty years on the railroad.
He worked very, very hard and he knew that he

(27:07):
needed to create that paycheck. And I'd give him so
much credit for hard working, and I think maybe some
of that rubbed off on me a little bit, thank you.
But my mom was a little bit more into the
investment side, so I would talk a little bit more
about that when I was younger with her. She was
what she called herself a bookkeeper back then, you know,
and she worked for Implement dealership and she was the

(27:30):
head person in charge of all the books for the company.
So she had a little more interest in it. My
dad did not. Even when we did it. When I
did retirement planning for them, I would say, Okay, we
need to sit down, we need to review. My dad
would want to get up a walk away, And some
of you listening might have the same family type of
scenario there going So I think one thing that's really important.

(27:53):
I think one thing that's really important there is taking
a look at getting started is really the main thing,
you know, taking a look at that, making sure that
we're getting the kids started as early as possible. They
have the mindset that it is something to really look
at and it can make a huge difference. So even
that one thousand dollars, we can put together a little booklet,

(28:16):
so to speak, and show what one thousand dollars over
sixty five years grows to at a conservative rate of return,
people are going to be surprised. It could create hundreds
of thousands of dollars for people.

Speaker 1 (28:27):
Oh well, and that's what Susan Dell said. She said,
we are looking to help people begin to create generational
wealth in areas that wouldn't necessarily have done it on
their own. And I thought that was amazing.

Speaker 2 (28:38):
Yeah, because what you don't want to do is be
totally dependent on what the government's going to give you
in the future, meaning so security and all of that.
As people live longer, so security starting ages might go
out further and further. And if there's more and more people,
is it going to be as strong as it is
right now? We'll get watered down. Well, you know, we

(28:59):
want you to be to retire and get an increase
in pay, not take a cut and pay. So that's
what it's really all about.

Speaker 1 (29:06):
Absolutely, We've got just about a minute or so left
here in this segment here before we need to take
a break, Terry, but just kind of reset our topic
today so that people know where we're going to go
here in our last segment.

Speaker 2 (29:17):
Yeah, we're talking about financial alignment. And in the last segment,
I'm going to talk a little bit more about the
fifties and sixties, that age bracket, which is a very
very very important age bracket to deal with, very very
key time to take a look. Are you getting really
ready for retirement? We do have a lot of people
walking our door for the first time when they're fifty.

(29:38):
We'd like to have them come in earlier, yep. But
I think when you're fifty, you sit and think about
I can see the retirement finish line, yeah, meaning the
retirement date, and then it maybe makes them a little
bit uneasy. Are you really ready? Are you prepared? Is
it all going to fit together? And we'll talk about
that as we go into the new segment.

Speaker 1 (30:00):
It's Money Talks with Terry Sandbold And we've been talking
about financial alignment today and I think it's a really
huge topic. And you know, you brought in some current
news on this subject about you know, the Trump Plan,
for children, but a lot to think about, especially as
we get to the fifties and sixties.

Speaker 2 (30:16):
Absolutely, and that means your age fifties and sixty, not
going back to nineteen fifteen nineteen sixty. Some people would
like to do that and do it all over again.
But when you talk about somebody fifty and above, they're
between fifteen sixty five, they're usually talking about the pre
retirement years. And like we mentioned before the break, this

(30:37):
is a very very key timeline for people, and a
lot of people put their focus on retirement. They have
maybe not put as much time focusing on retirement up
till then. But a key age for a lot of
people to think about it is age fifty. Your income
is likely getting more towards its peak, but your expenses

(30:58):
may have abilized a little bit more. The kids might
be on their own now that type of thing, so
you might have less of those types of expenses, but
they do come home with grandchildren and the fridge is
always available, you know, and we start all over in
with the grandkids.

Speaker 1 (31:14):
Right, oh yeah, so I for you get to send
them home.

Speaker 2 (31:18):
So I mean, the one thing is looking at how
do you put all the pieces together? And I think
a lot of people getting ready for retirement. That's probably
one of the hard things. They want to accumulate as
much as they can, but how do they know if
they have enough. It's a real tough question for people.
How much is enough? There's not one number for everybody.

(31:38):
So that's what's important about what we do in the
financial planning side because what we can do, and this
is real important anybody from age fifty on up, and
we can do this at an earlier age, and we
talk about this quite a bit, is putting together what's
called the retirement income cash flow analysis. And a retirement
income cash flow analysis will project out all your different

(32:01):
pieces that you're currently doing. Say if you're in a
four and K, you're adding to it and you're getting
a match, we can factor all that in. If you're
getting a bonus and you're putting, or you get stock
options and you got all of those types of things
that you're dealing with, we can put that into the
retirement income cash f loow analysis will help you analyze
when you get closer to retirement, all the social security

(32:21):
options you and your spouse a significant other may be
dealing with, and what combination of when to take it
sixty two, sixty seven or seventy or any number in between.
If you have a pension, do you take a lump
sum pension if you have that versus a monthly option.
If you have monthly options, do you take a life

(32:42):
only option or do you take a joint survivor option?
And those all have different dollar amounts per month. So
we help you analyze all these pieces and build them
all into the retirement income cash flow analysis, and then
we'll look at the tax efficiency of how to spend
the doll in retirement because some of the pieces you'll

(33:03):
have capital gains tax rates. A WROTH will be income
tax free, a traditional IRA will have ordinary income tax rates.
If you want to do things like a wroth conversion,
switch money from an IRA to a WROTH, and we
can help you build that and look at it in
the retirement income cash flow analysis. Does it make sense

(33:25):
for you to do that or not? Because a lot
of people say, oh, you should do it, Well, let's
look at it and see if it truly works to
your advantage. And when is the breakpoint of doing that?
Is the breakpoint at age ninety? Would you rather have
more money before ninety or after ninety, you know those
types of things. It's kind of looking at all those things.
Same with Social Security because we can show what is

(33:49):
the breake, even analysis on starting early versus waiting. There
are some rules on the Social Security too, and I
knows there's other advisors that profess you. You can make
hundreds of thousands of dollars more doing this choice versus others.
You should not ever make a blanket statement like that
because everybody's situation is totally different. But I know that's

(34:13):
to get your attention. Oh, we just don't use that
type of approach to get your attention. We want to
give you the real numbers. And basically, everybody's situation is
different and separate, So don't always listen to what your
friend does or what the person that work does because
your situation would be different, absolutely, So really looking at

(34:34):
the different things. You know, we talked about the catchups
and different things you can do on your four ones
and different things like that. But when we do reviews
with our clients, and we ideally want to do those
very consistently on a quarterly basis, so four times a year.
We talk to some people ten times a year. We
may have some that want to talk two or three

(34:55):
times a year or four times a year. But majority
of our clients, I would say, we do reviews with
them four times a year. And you might say that's
quite that's quite often only three months apart. But if
you probably have noticed what's going on in the world,
a few things have taken place for a three month period,
you know, just a couple wars have been stopped. There's

(35:16):
things that are going on. You know. There you pick
a day and we can figure out all the different
things that are on the list. But how does it
affect you? How does it affect your investments? How does
it affect your financial future? One thing, I was just
going to bring this up at the beginning of the show,
but I'm just going to bring it up real quickly.
My cousin's wife just went through major, major surgeries on

(35:40):
Parkinson's and for ten years she had really bad shakes
with Parkinson's, to the point that she walked with the walker.
And what's unique about this story is they were staying
with us this last couple of weeks here and Mayo
did the did the surgery, and then there was a
local group in a Golden Valley that did the actually

(36:04):
the connecting of the sensors or whatever.

Speaker 1 (36:08):
So she had something implant, had.

Speaker 2 (36:09):
An implant in her brain. She had an implant in
her chest, and then the implant from her brain went
to her chest, went back to her brain. And when
they when they dialed this in and this was just
happened just a few days ago. Her major, major shaking.
She was taking medicine every hour, Oh my gosh, every hour.
And they turned the dial and this is how they

(36:30):
explained it. They turned the dial and the shaking just subdued.
She does not have any shakes at all.

Speaker 1 (36:36):
That's a miracle.

Speaker 2 (36:37):
And the next day, just a few days ago, they
headed back to North Dakota. I grew up with. She
was in my high school graduation class. Okay, okay, And
she sat in the chair in her house and she
cried and she says, I just got my life back.

Speaker 1 (36:56):
I can't even imagine.

Speaker 2 (36:58):
And we're sitting there going and she does so no walker,
I mean all of that, no shakes. You know, from
the minute she left that clinic all night, she slept
fine that night. The next morning, before I came to
the office, I sat down and had a quick visit

(37:20):
with them before they left out of town. But this
has been an ongoing thing for her. But there's many
people to deal with that, which can be part of
your financial future too, you know. But the thing I
guess I wanted to bring that up is there are
positives in the world going on no matter what you
see out there, and amazing how they can do something
like that. It probably is going to extend her life.

(37:43):
And people are living longer than ever, so it kind
of comes back a little bit to the financial side,
and we were very happy to be able to do
our little part to help help them so they didn't
have to be in hotels for days and days and
make it more congenial for them and a place where
they could feel comfortable. But people are living longer, so
are you financially ready to have your money last as

(38:06):
long as you do? So I think that's what our
job is about. It's really to provide peace in mind
for you your family, take some of the financial stress
off of you and put it on our shoulders. That's
what we're here for, and we have been helping thousands
of people all over the country for many, many years.
Since nineteen eighty six is when I started the firm

(38:29):
and we look at this, it's more of a mission
than a sales team. It's like, how do we help
people do their best from the financial side, which can
help them from their personal side. We can't cure the health,
but hopefully we can help with the wealth. So I
think it's really really key. If you're not working with somebody,

(38:50):
give us a call, well gladly, have a conversation, explain
who we are, what we do, and show how we
can be of benefit to you. And that's what this
is all about.

Speaker 1 (39:00):
And it's a no cost, no obligation, no pressure situation.
All you need to do is say, hey, I'd like
a second opinion or even a first opinion, and how
do people do that and get hold of the team Terry.

Speaker 2 (39:12):
Easy way is to give our company a call at
niney five two five four four two eight three seven.
That's nine five two five four four two eight three seven,
or go to sandvildfg dot com