January 31, 2026 • 42 mins
The Kowal team help plan your retirement
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Speaker 1 (00:00):
Welcome to WI. I said. This is the Retirement Clinic
hosted this morning by Aaron Spitzer of Creative Planning. I'm
Paul kron Forest. Aaron, welcome back and thank you thanks
for having me your first show right of twenty twenty six.
Speaker 2 (00:14):
Of twenty twenty six.
Speaker 1 (00:15):
Yeah, I'll say it. Wan't listened to my last time
saying Happy New Year. Happy.
Speaker 2 (00:18):
I don't think yeah, don't think you can say Happy
New Year like it's three days and I think that
it's the thing.
Speaker 1 (00:24):
It was first.
Speaker 2 (00:24):
Yeah, one of the years we looked at this. There's
like a certain deadline. You can't say like happy New
Year or Merry Christmas anymore, you know, I would say.
Speaker 1 (00:33):
Today would be it the last. Today is the last
day of the month.
Speaker 2 (00:36):
Yea, Now it's.
Speaker 1 (00:37):
Man, we got a lot to tall.
Speaker 2 (00:38):
The resolutions are out the window by now.
Speaker 1 (00:40):
Oh but now you know what they call it quitting day.
I could be wrong. It was January ninth.
Speaker 2 (00:46):
It sounds bar quitting day. I'm guilty of it too.
I'm not laughing at an everybody else, I'm laughing at myself.
I don't even make them anymore because of it.
Speaker 1 (00:53):
I totally stopped making new year's resolutions. Here's my thought,
and we can jump into other topics quickly. But if
you're going to do a diet, lose weight, stop smoking, whatever,
be a nicer person, why don't you start doing that
right now?
Speaker 2 (01:06):
I mean, and just can start anytime. It's your point, right,
you can start today and make that talk about that
with financial planning a lot too. I know Jeff's that
is true. Jeff's got his great line about there's always
a reason to uh to not do it right.
Speaker 1 (01:21):
He goes through in the twenties, Yeah, you're struggling to
just pay your mortgage. Maybe you're having kids and you're
living check to check.
Speaker 2 (01:27):
I'll get get around to it.
Speaker 1 (01:29):
Then the thirties, yeah, well now the kids are like
you know, they're growing up. Man, we got club sports
to pay.
Speaker 2 (01:34):
You're into this, well yeah, every night of the week,
every night of the week, you've.
Speaker 1 (01:37):
Got something going on. So there's an excuse. And you
get the point your forties or fifty, you're always going
to have an excuse not to save money.
Speaker 2 (01:44):
The same thing with the calendar, right, there's always well,
you know, in summer you got your vacations, right, and
then in the spring, if all kids are going back
to school. You got that going on, and then well
it's it's almost Thanksgiving time. You got the holidays coming up. Well,
then there's Christmas, well then it Yeah, there's always something.
So there's no better time to start really than now.
Speaker 1 (02:02):
Yeah, hey, it's the last say of the month. Maybe
you make this the time to start thinking about turning
over a new leaf or whatever it is. I mean,
if you're not saving for your retirement, air in the
thrust of this program which has been on since two
thousand and one with the Coal Investment Group, now you've
joined forces with Creative planning has always been about that
some sort of retirement plan, whether it's a four oh
(02:23):
one K, your self employment, whatever it is, you need
more than just I think social security. Some people plan
on an inheritance. I think that's outright wrong, because how
do you.
Speaker 2 (02:34):
Know, Yeah, that's one of those things we always say
if it's if it comes, if we're not gonna plan
on getting it, and we'll look at it is like extra.
Speaker 1 (02:44):
It's a bonus if you get an inheritance. Well, you know,
I plan on a big inheritance, So I'll just put
that four to one kN in the back Burner. Well,
here's what we're gonna do. We're gonna hear from Jeff
Cowal today. I'll lay out the agenda for the program.
Jeff has got a topic which is fantastic. This goes
to the heart of saving your money. Here's what it's called.
You saved it, now, here's how to spend it. And
(03:07):
Jeff has talked about this many times over the years
with me. There's a guilt factor. Some people think they
need to leave it generation money to the next and
their kids and their kids. Everybody's got different opinions. Jeff
will chime in later in this hour with that topic.
That being said, you've got a bunch of great topics yourself,
Aaron Spitzer, Yeah, you're a certified financial planner. Yep. Should
(03:28):
we walk through creative planning real quickly? Make the elevator speech?
Speaker 2 (03:31):
Yeah, Actually, you know one of the things I was
going it's been about a year now since we've joined
forces with them, and I thought it would be good
today to just briefly touch on our process. What to
expect if you call in, if you want to set
up that introductory meeting, what that looks like for you,
and what you can expect with the services offered at
(03:54):
Creative Planning, and of course our different locations as well
as we have our our spot in Brookfield on Blue Mount.
On Blue Mount, you can't miss it right by Dick
Sporting Goods, Portillo's over there, and then we have Port Washington.
We also have Delafield and we have the Racine location
as well.
Speaker 1 (04:14):
You're stomping ground.
Speaker 2 (04:15):
Yes, And of course we're always available over Zoom, which
we always joke about, right, I mean, go back to
pre COVID times and it was a zoom meeting was
a very different thing to have it and now it
has become much more casual and easy for people to
use the software. So if you don't feel like getting
out on one of these cold days, we can always
(04:37):
set up an introductory call over Zoom.
Speaker 1 (04:39):
A phone call can be a good way or not.
Speaker 2 (04:42):
People still use the phone, believe it or not. Is
that something I saw a comedian the other day talk
about that, like like why certain people rush to pick
up the phone, And he was like, well, back in
our day, there wasn't color I D and there wasn't
an answering machine and if the phone rang, you picked
it up.
Speaker 1 (04:57):
When the landline went off of my house growing up
in a seventy eighties. It was especially in those teenagers
my sister I had one sister and one brother. We
would rush yeah, thinking it's for us, of course, Ah, crap,
Kalai's for you. You know one of those things.
Speaker 2 (05:11):
Now you look at people, look at it. Oh who's calling?
You know? I don't know that number. I'm not going
to answer. Spam has ruined it for everybody.
Speaker 1 (05:19):
But uh, and I will say this, I rarely pick
up my phone. I usually unless it's you Aaron.
Speaker 2 (05:25):
Of course, of course.
Speaker 1 (05:26):
I mean if it's my wife, it's so easy. But
if you're driving, kind of leave me alone. I'll get
to it. I'll get to all your texts. But you're
right about that things have changed. Technology is a wonderful
thing in certain areas of life. In fact, later in
the hour, you're going to talk about a.
Speaker 2 (05:41):
I yes, yes, and it'll be a good piece as well.
And so getting back to the process here, So if
you again, we we cover all these in depth topics,
and sometimes I think we missed. We missed the beginning
part and just talking about what it looks like if
you reached out to create a planning and what our
process looks like. So just real quickly, I thought it'd
be helpful for the listeners to go through hearing a
(06:05):
little bit about you know, what it would look like.
So you reach out to the office and you want
to get to know one of the advisors at our office.
So you'd be paired up with one of the advisors
based on your location, and we'd have our initial meeting.
And I like to say that one is really there's
no barriers to that meeting. We're not going to ask
for a list of I mean, if you want to
bring in your documents, it's more than welcome. But if
(06:26):
if you're just looking to get to know a planner
and seeing if it's a good fit, that initial meeting
is really low pressure and to get to know one another.
We're going to see if you're a good fit, and
you're also going to see if we're a good fit
for you. So there's no obligation, yeah, correct, no fee,
no fee to that.
Speaker 1 (06:42):
You're just meeting with your certified financial advisor. Yeah, you're
meeting with somebody like you.
Speaker 2 (06:46):
And in that meeting, what I like to do personally,
Now every advisor is going to be a little bit
different We're not all the same. We're not all just
robots or computers that you're going to come in and
talk to like this AI thing I'm going to give
you a little bit later on. We're all going to
have our different approach, in our different style, and that's
why it's important to come in and meet with somebody
and see if they're they're a good fit. Some people
say I'm a little bit more casual with my approach,
(07:07):
and what I'm going to do in that meeting is again,
get to know you, start to get to know what
your goals are, what you're trying to achieve, where you're
at in the savings process, and your you know, in
your life. And then I'll maybe start to put some
stuff in our system. And what I mean by that
is I'll plug in, Okay, what do you got in
your four O? Okay, what do you have in the bank?
(07:27):
Have you looked at your social Security estimates? And I'll
get your brain going and start thinking about these numbers
and why I'm asking about them. Otherwise, if I ask
you to bring it all, any might go, well, why
is Aaron asking me to bring in all of my
my insurance, my home, my auto insurance, my life insurance, Like,
what does he need all this? He hasn't even met
me yet.
Speaker 1 (07:44):
Yeah, it's kind of a pain in the butt.
Speaker 2 (07:46):
Yeah, if you're gonna do business with that person, you
might be like, why am I going to do all
this homework if I don't even know Aaron from the
next guy. So that first meeting, I'll explain to you
why we're gonna need it, and I'll really start to
illustrate why we're gonna need it by punching some of
this information in our system and trying to run those
retirement projections for you. Of course, sending it to the
biggest one that's gonna take a little bit of homework,
and that's how much are you spending? How much do
(08:06):
you plan to spend in retirement? Well, if you're twenty
years away from retirement, you're gonna have any idea how
much you're gonna spend retirement. I'll help you kind of
figure out what that number is. But the closer you are,
you know, I have some good ideas on how to
calculate how much you're spending on a monthly basis, because
that obviously matters just as much as as what you
(08:27):
have saved. Okay, So I go through all this informational.
Maybe I'll send you home with some homework and a
worksheet saying, Okay, for the next meeting, I'm gonna need this,
that and the other thing. Balances social security estimates, home
and auto insurance, maybe your state plan tax return. And
that gives me enough to get a little dangerous with.
So you bring in those documents to the next meeting,
and at that meeting, if you wanted to do business
(08:47):
with us, we would start to prep some of the forms,
some of the paperwork, new account applications, so on and
so forth. We like to do all that over docu sign.
It makes it easy for you as well. If you're
okay with that, we do it over docu sign electronically.
Otherwise we can print out the paper copy too. Some
people don't like docus signing because they say, just got
If it's on their phone, they can't really read the document.
They really don't know what they're signing. But it's safe, right, yeah,
(09:09):
and it's the same thing too. So but if you
like to have that physical copy in front of you,
you know, we will print it out for you too.
Of course, we're gonna go through things like your risk
tolerance as well, and try to figure out what investment
strategy is appropriate for you. That you know, also ties
into what your need is in retirement. If you're taking
out a lot of money, okay, we want to tie
that into also your your risk tolerance. Okay maybe, and
(09:31):
I'll use my judgment as well to help figure out
how much stock and bond exposure we want to have
in your portfolio.
Speaker 1 (09:36):
You're also you're hitting on a point. Everybody you deal with,
you make a custom plan because everybody's different. Eron, I
might spend in a month a lot more than a
friend of mine. We might have the same exact income,
the same savings, but I just like to spend.
Speaker 2 (09:49):
Talk about social security, right, so some people they might
live off of social Security completely. I have some clients
that come in the door, and I just had one
the other day. They had a big nest egg saved
up and they're not going to touch it. They're going
to live off of a pension social Security. Now, the
pension is a nice pension. Don't get me wrong on
that nest.
Speaker 1 (10:08):
Take you said not touching it. Can't you keep growing?
Speaker 2 (10:10):
It'll it'll just keep growing. Yeah, And you know it's
there if they wanted to take a bigger distribution for
let's say they need a new roof, find house, or
buy a vacation home something like that. Like other people though,
they're they're just not going to That's like where Jeff's
piece comes in later on. You know, you saved it,
and here's how to spend it.
Speaker 1 (10:26):
It's almost like how you were raised. I know some
people that's exactly it. That we're pretty that are pretty
well off and wealthy, and they're still clipping the coupons.
You know they're doing I haven't thinking.
Speaker 2 (10:36):
Sometimes my biggest job is to convince them them to
spend the money. Can't take it with you.
Speaker 1 (10:40):
That's what we're going to talk about later.
Speaker 2 (10:41):
It's not what you know people, So you got to
figure out what their goals are. And again that's part
of those initial meetings is what are your goals? Okay,
if you're not going to spend it, now, we have
to make sure it's set up appropriately for those beneficiaries.
How do we do that? What kind of counts do
we want to have it? And we got to make
sure those beneficiaries are up to dates.
Speaker 1 (10:54):
There's the rmds that you have to take out.
Speaker 2 (10:57):
And we want to keep those as low as possible
if we can control your taxable income and medicare premiums,
all that good stuff. But again, so these initial meetings
they matter a lot, and figure out what that looks
like for you. Of course, we're gonna put all this
down on paper two and we're going to present to
you what's called internally, we call it a dashboard. This
(11:18):
is your financial life boiled down to you know. It
could be as much as fifteen pages. It could be
nine pages, it could be six pages. It depends on
the complexity of your life as well. And it's gonna
have recommendations. It's gonna have summary of everything, insurance contract numbers,
beneficiaries that risk tolerance.
Speaker 1 (11:34):
So it's you, we've talked about this. You actually provide
a binder, right.
Speaker 2 (11:38):
A binder with all of your documents in there.
Speaker 1 (11:40):
Everything's organized from life insurance to account numbers to everything. Right.
Speaker 2 (11:45):
Yeah, so it helps a lot of people. Now there
are again I'd say two out of ten people come
in and hey, Aaron, I got a binder, I got
a system set up at home. I don't need your binder.
I'd say seventy five percent to eighty percent of us.
We may have a process at home, kind of a process.
Some people have no process at all. But it helps
get your organized. I mean even myself. You know when
I saw the binder. But this is great for my family.
(12:06):
I have everything in there. Those insurance renewals come through, okay,
stuff the new one in there, your twenty twenty five
tax return, put it in the binder. You have everything
in one spot. If something happens to you, your kids
or grandkids, everything in your spouse.
Speaker 1 (12:21):
Yeah, yes, sometimes yeah, they don't talk about it. They
don't know what I mean. I'm just thinking now, if
God forbids something would happen to my wife, I might
be a little lost for a bit in more ways
than one. But the financial aspects, knowing what are the passwords?
Where are these accounts? How do you get out of it?
We've talked about this so many times. Don't you think
if it's a typical marriage, kids are out of the house,
(12:43):
your married life is going well, we're retired. Shouldn't the
spouse have some knowledge about Yes, both should have knowledge.
Speaker 2 (12:50):
I mean we each specialize in our own thing, you know,
at home, at least we do in our house. You know,
I may have handled some of this. And my wife's
phenomenal with the kids and all their plans and all
their things that go on. I mean, I don't know
how she keeps.
Speaker 1 (13:03):
You cut the grass, chop the wood. You're telling me
you're chopping wood in this sub zero temperature because you
needed fresh.
Speaker 2 (13:08):
Air trying to get outside. I didn't last very long,
I'll be honest about that. You know, in this cold
whither speaking of that, in this cold weather, we actually
had a window break, no from your house from this
the change in temperature, so it was it was pretty
nasty out there.
Speaker 1 (13:23):
Did you get that repaired?
Speaker 2 (13:24):
Are It's just a it's a big it's a hairline
crack from one corner to the other. Oh, so you
gotta take the whole pane out, I think, and we'll
deal with all that later.
Speaker 1 (13:30):
Is there anything coming in wind cold?
Speaker 3 (13:32):
It's not like I just have a hole in the house.
If you got it. But I know some people that
can help you. I know a lot of window contracts.
We'll have to you only need to get that fixed.
It's like a windshield in the car that's got that crack.
Speaker 2 (13:43):
But I do I do want to thank you though,
for reminding me of the binder. You know, I I
overlook some of the stuff. I do it every day,
and I don't think how how different it is from
other other planners and other advisors. And putting that binder together,
putting that financial plan together, having it all in one spot.
That's the ultimate gold of these meetings and all will
give you some guidance on how much you can spend
(14:03):
and how things look for you and give you that
confidence in retirement. So it's a full service organization with
creative planning here everything internally. Again, it's a one stop shop.
All of this is offered internally. From tax planning, insurance insurance,
is home auto life insurance, long term care planning, it's
stay planning. Yeah, state planning, so the legal part of it.
Some people they just want to have their state planned reviewed.
(14:23):
Some people don't have anything done at all. And we'll
draft those documents for you. That's going to be an
additional fee. I want to make it clear. You know,
we have our management fee on how we charge our clients,
but that's an additional feenny time they're drafting an additional document.
There's business services, so you may own a small business
and you're looking at getting out. How do I get out?
How do I onwine this? How do I start generating
income from this business? Well, we have a team that
(14:45):
will assist you with that, and then four oh one
K administration. Let's say you run your own four oh
one k for you have a small business and you
got twenty five people in this four oh one K
plan and there's a lot of nuances with that, laws, regulations,
create a planning. We'll take care of that for you
as well. So just about anything and everything that can
tout you financially and affect you financially, they can handle internally.
Speaker 1 (15:07):
We should give out you mentioned starting the process. Here's
the phone number to start the process. One phone number
for all those locations, which was the co All Investment
Group joining forces with Creative Planning. I think, Aaron you
said a little over a year ago, and we announced
that transition on the show. They still do all the
market updates during the Dan o'donald show in the afternoon
(15:27):
three and five pm news blocks and this show the
Retirement Clinic since two thousand and one, we've been on
Saturday mornings. I said it before your certified financial I
think I said something else. It's planner CFP. Yeah, I
think I said, I don't know what you call me
analyst or something. I made something up. You are a CFP.
And again you've got all these people under one roof,
from estate planning to taxes. And that's just that's the
(15:50):
beauty insurance, my goodness. So Creative Planning has all these resources.
You can go to two websites, Creative Planning dot com
or the Retirement Clinic dot com. We've actually got podcasts
up past shows and all the contact information for those locations.
Again in Brookfield, in Racene, where Aaron Spitzner here is
usually there every day, I'm guessing unless you're out doing
(16:13):
radio shows and chopping on fixing windows Tuesday through Friday.
Speaker 2 (16:18):
I am in our Racene locate. It's a mount Pleasant
servent in whatever you want to call it, just north
of that mammoth data center that we've all saw on
the news there fifteen more data centers or whatever it
may be, that's right in our backyard down there. And
you go on in.
Speaker 1 (16:33):
Port Washington too, where you have an office.
Speaker 2 (16:35):
Yep, yeah, we go wherever the data centers go. I
guess it looks like.
Speaker 1 (16:38):
You are they're following you, Yeah, because you were there first.
But there's under construction import they just started that, I believe.
So you're in Port Washington, Delafield, you're in a racine
and of course at Brookfield that ye. I don't know
if that's the main one, but it's huge. You can't
miss a sign right on Blue Mountain Road. Creative Planning
dot com. This is the retirement Clinic. Also on social
media Facebook, LinkedIn, Instagram, and x if you're looking for
(17:00):
more information two six two five two to forty forty.
As I mentioned Jeff Colewaal coming up about spending some
of that money. You're going to talk about artificial intelligence.
You've also got a great topic that I just want
to mention Aaron. It's about how much money parents need
to raise two kids.
Speaker 2 (17:17):
Yeah, this is one that just caught my attention the
other day. I thought it was kind of interesting. Households
with two kids need to earn over four hundred thousand
dollars to comfortably afford childcare in the US. Again, being
a retirement show, I try to keep it towards retirement topics.
You could also say that this comes into retirement plan
because how do you afford to save for retirement. When
you got to have that much money, allkated.
Speaker 1 (17:39):
So it was a household income of Yeah, one hundred thousand.
Speaker 2 (17:43):
Childcare is considered affordable. This is from Fox six Milwaukee,
published on January twenty third. Childcare is considered affordable at
seven percent of income. But for two kids, families would
need to earn four hundred and two thousand, seven hundred
and eight dollars a year, according to new data.
Speaker 1 (18:02):
Which is way above the median household. Yeah, it's not
even close amount of money.
Speaker 2 (18:07):
Yeah, go through some of these here. We obviously we
know what's expensive. Everybody talks about the cost of it,
but nobody really boil it down to these numbers. According
to Childcare Aware of America, the average annual cost of
childcare for an infant and a four year old across
the US was twenty eight thousand and ninety dollars.
Speaker 1 (18:27):
So for both, So let's say you've got a four
year old and you've got a baby. Yep, you're taking them.
I'm assuming that's five days a week to take care
twenty How much was it.
Speaker 2 (18:37):
Twenty and ninety dollars?
Speaker 1 (18:39):
Yeah, I can tell you this. I've got two daughters.
I've got one grandson, as you know, erin two on
the way, and my youngest is looking into childcar and
it is expensive. There's no way to you can't you
can't mince any words. It's downright expensive.
Speaker 2 (18:55):
And we talk about kind of the back and forth
of it. Well, at some point you might decide to
stay home. Well, if you if you stay home, well,
where were you in your career at the time, you know,
And then all of a sudden you're stepping back from
maybe those years where you're really advancing and growing in
your career, and you lose some of that income. Will
you also lose some of your individuality out there too?
Because now you're now you're at home with the kids,
(19:17):
and that's what you do every day, and you're in
the house and you're you know, you're you're really working
at home.
Speaker 1 (19:23):
Maybe there's a dog, yeah, there's You had the stresses
of daily life.
Speaker 2 (19:27):
It's a different stress when you when you're at home
every day.
Speaker 1 (19:30):
And some parents, I will say this, if you're blessed
enough to have maybe one of the in laws, right
the grandparents, maybe take a day a week. I'm starting
to do that right now. Eron my new schedule this year.
I'm very lucky that I can take a day a
week and watch my little guy. Yeah, in Dallas, and
it's like I can piled the heck out of him
for a day and totally. I'm very He's still naps,
(19:51):
you know, he's only two, so he takes nap then,
I know, because I could not fall asleep with that responsibility. Yeah,
you know what I it's like as a parent.
Speaker 2 (20:01):
I could fall asleep anywhere. Really. Yeah.
Speaker 1 (20:03):
Can you fall asleep on an airplane?
Speaker 2 (20:05):
Oh? Yeah, absolutely? Okay, so before it even takes off,
you're one of those guys.
Speaker 3 (20:08):
Yeah, I just I'm a little jealous, but I'll get
back the business.
Speaker 2 (20:13):
For a household to spend only seven percent of its
income on childcare, based on an affordability threshold set by
the US Department of Health and Human Services, it would
need to earn four hundred and two thousand dollars a year.
The data found. That's one hundred and seventy six percent
higher than the average income. Among households with two kids,
the average incomes about one hundred and forty five thousand. Wait,
(20:36):
the average is one forty five The average about one
hundred and forty five.
Speaker 1 (20:41):
With both working. Yeah, I think gone are the days
of having kids and just like dad working and mom
staying home. Not all cases, but I think that was
the Norman America the nineteen fifties, sixties. Times have changed, Aaron.
Speaker 2 (20:56):
This, this kind of caught me off guardtoon. So there's
no surprise, right that, you know, we talk talk about
we've all seen the things like Hawaii with their inflation
and in their cost of living is a little bit higher,
so they have the highest discrepancy. Your family's paid an
average of thirty eight thousand, one hundred and seven thousand,
one hundred and seven dollars annually, So thirty eight thousand
dollars annually for an infant and a four year old
(21:17):
again for childcare, so that to keep expenses within the
seven percent threshold of income, they would need to earn
five hundred and forty four thousand dollars a year. Now,
this this is what really surprised me. So that's again
two hundred and seventy percent more than the average income.
Blah blah blah. The next the next like biggest discrepancy
(21:38):
amongst states after Hawaii, it's Nebraska, than Montana, than Maryland
and Massachusetts. So not far behind is Nebraska. So that
tells me to cost. You know, childcare is very expensive
there for whatever the reason that would be.
Speaker 1 (21:49):
I would not I would think it'd be a little
bit less, you know in the state. I would think
the high states would be East coast and West coast.
Speaker 2 (21:54):
Yeah, they all have very similar gaps, so those additional states.
So you know, it brings into the question, well, you know,
how are these people saving for retirement. You know, you
talk about maybe one person working, one person staying home.
It gets tough.
Speaker 1 (22:08):
It depends on the salary. In some cases they might
say screw it, it's better off if you just stay
home with the kids. Yeah, raise them and not.
Speaker 2 (22:16):
Get them to that four K five K where they're
on the bus a couple days a week. If they
offer a bus service for kids a little.
Speaker 1 (22:23):
And noticed I didn't say the lady. It could be
mister stays at home. Yeah, I've known guys that are
mister Mom. It's a great movie by the way, with
Michael Keaton. If you've never seen, Mister Mom, totally destroys
the house, right, but it is the whole play on
the different roles, right. Well, that times again have changed,
but regardless, the bottom line is, Aaron, it's very expensive
(22:45):
now you take it into account inflation. We don't know
where it's going to be, which is why we talk
about your retirement plan almost each week on the show.
Speaker 2 (22:52):
I mean, if you stay home, you can put money
away for your spouse even with the sposors and have income.
But where are you going to find that extra income from? Again,
there's so many things that kind of snowball from that article.
They could go on and on about how do people
afford retirement at that point in time? And you better
have a good job, and then you got to think
about well if I'm not working, not paying into Social Security,
and also I won't have as big of a Social
Security benefit later down the road. There there is a
(23:13):
lot of issues that come.
Speaker 1 (23:14):
Out of a lot of moving parts.
Speaker 2 (23:16):
It's a little Fox News Milwaukee article and go, yeah,
there are bigger issues that can come out of that.
Maybe you just don't have kids, but stick to dogs.
I don't know how much doggy daycare costs. I don't
know that one either.
Speaker 1 (23:27):
You know that's expensive too. We used to, you know,
when we go on vacation, our dog is no longer,
no longer with us. But for boarding a pat it's godlikes,
It's insane. It was just this much for one night.
Then you do the math, You're going thirteen days. Uh.
The headline there, though, is what grabbed me. And how
much is the amount? Again? Two kids?
Speaker 2 (23:49):
Full time household with two kids need to earn over
four hundred thousand to comfortably afford childcare in the US. Again,
the big thing comfortably. I think people can do it
with less a mount than that, but then they have
to make concessions elsewhere in life.
Speaker 1 (24:01):
That's just a lot of money. So when we come back,
we'll talk about speaking of money. Jeff Colewall, you saved it.
Now here's how to spend it. In a special segment,
Aaron's going to react to that. He's also going to
talk a little bit about AI and how it factors
into can you just use AI for your your advisor? Hey?
How much do I need? Tell me where to put
my money? Where to?
Speaker 2 (24:22):
You know?
Speaker 1 (24:23):
Maybe maybe not?
Speaker 2 (24:25):
Well, we'll talk.
Speaker 1 (24:26):
I think you've got some thoughts on that. Aaron Spitzer,
Today's host the Retirement Clinic on WISN. Here's the phone
number to call two six two five two two forty forty,
or the Retirement Clinic dot com. I'm Paul kron Force
right here in WISN. We'll be right back.
Speaker 4 (24:43):
I wanted to address spending in retirement. It's drilled into
us save, save, save, not spend, spend, spend, So when
retirement comes and you are not saving much anymore, how
do you plan for that? There's a KIPL retirement report
article I thought was pretty interesting. It's titled you saved it,
(25:07):
Now Here's how to spend it? Multiple strategies for growing
older without going broke. It was tough enough to save
and invest the fund retirement, but once you retire, you're
confronted with a new and confounding challenge. How do you
manage a portfolio through unpredictable markets that will generate enough
income to meet retirement costs, which many which may include
(25:30):
long term care for an unknowing number of years. Luckily,
there's growing consensus about you know how to how to
plan for this support strategies, but there will always be
debates over details, such as exactly how much you can
take safely from a portfolio each year. But let's start
(25:52):
with a couple of these items that they address how
should I organize my retirement portfolio. One way to turn
the portfolio into a regular paycheck. You can do it
with an annuity. Not always the best way to go,
but a lot of advisors, including us, will make sure
that you have cash for short term means, fixed income
(26:14):
for medium expenses, and stocks for long term, and also
make sure that you address long term care insurance if
that's appropriate for you. The first step is to estimate
your annual expenses though in retirement for at least the
next decade, housing, food, health insurance taxes, transportation allowances for inflation,
(26:35):
and occasional big ticket necessities such as dental emergencies and
home and car. And again, in our practice, a lot
of our clients have saved their lifetime so they can
enjoy retirement, and vacations are a big part of that.
So big ticket items could be a vacation every year,
especially for the first ten or fifteen years, while you're
(26:55):
reasonably inclined to be healthy. Let's put it that way.
You don't know what plans are, but you don't know
how things happen, but again, plan for that, so put
some money aside for savings. Make sure you have enough
money for those items. Next is how can you how
much can I safely take from my portfolio each year?
(27:17):
And the article from Kiplinger says to calculate a withdrawal
rate that will allow you your savings to last your retirement,
you first have to estimate how long your retirement will last.
Social Security Administration data indicates the average sixty five year
old man will live seventeen and a half more years. Okay,
(27:38):
that puts you around what six seventy seven, eighty seven,
eighty five years old, something like that, about eighty five
years old, and a woman will live a little more
than twenty years, so eighty five, eighty six, eighty seven
somewhere around there. Most financial advisors and retirement calculators players
safe by assuming you'll need the money for thirty years.
(27:58):
We go out more than that. We go out to
age ninety nine with our planning. This is an interesting
comment from Kiplingers. Again, it says research shows that wealthier
Americans live longer, and that is true. We've passed retirement clinics.
We've indicated that wealthier people tend to pay attention to
(28:20):
their health pay attention to their healthcare.
Speaker 1 (28:22):
Okay.
Speaker 4 (28:23):
The last part of this is which accounts should I
draw from. Advisors generally recommend taking advantage of the tax
protection of four to one k's, traditional iras and wroth iris.
That means spending money for taxable accounts first, then tapping
tax deferred accounts such as four to one case and
traditional irays. Tax free wroth iras are generally last. But
(28:46):
Alan Roths, who's the CPA in Colorado Springs, notes that
the required men distributions from four to one k's at
traditional iras tend to complete complicate the picture at advice.
Retireings who don't yet have to take rm ds, but
who can make money out of their taxing for accounts
(29:07):
that remain a low tax bracket should do so. In
other words, either take some money out of your iras
to stay in a low while you're still a low
tax bracket before rmds. But if you do wroth conversions,
which I love even in retirement. Doing Roth conversions in retirement,
be careful with these roth conversions as they can push
(29:28):
you into a higher tax bracket or cause you to
pay higher Medicare expenses, So be careful with that hire
medical expenses or in a higher tax bracket.
Speaker 2 (29:40):
The last thing is.
Speaker 4 (29:41):
About relieving anxiety. First step in the laying anxiety is
to get started on a retirement financial plan. If your
portfolio can safely generate your net expenses again to relieve anxiety.
What we find in our practice is that if we
reduce the plan to writing, don't eyeball it. We use
a tool called vision Builder, which is a proprietary creative
(30:04):
planning tool, and we include inflation. We include gifting if
you want, We can include travel. We can include a
possibility of a long term care event. Make sure that
the surviving spouse still has enough money to last till
age ninety nine. But don't guess. Do not guess, do
the actual calculation. So that's my segment for this week.
(30:28):
I hope you enjoyed it. I hope you can take
advantage of it. Do give our office a call if
you have any questions about taking income and your retirement.
Then having your income lasts as long as you do
in retirement, even if that's the age ninety nine.
Speaker 1 (30:42):
Back to you, guys. Great to hear from Jeff Kowal
on WISN The Retirement Clinic. We continue with Aaron Spitzner,
your host on WISN with creative planning, and I'm Paul
kron Force. Jeff talked about you saved it aerin now
Here's how to spend it. You've got thoughts on that,
You've got thoughts on artificial intelligence AI in your industry?
Speaker 2 (31:04):
Yeah, And believe it or not, even I have dabbled
in the AI world from time to time here just
kind of seeing what if it aligns with where my
brain is, which is hard to do for most, but
I take a look at it. And that's why this
article caught my attention. This as a Kiplinger's article, No
AI Can't plan your retirement. This human Investment Advisor explains
(31:28):
why this was published by Alan Becker, and it looks
like it was about a week ago or so, and
just to still a couple things from the article, and
then I got a kind of a real life scenario
here too. AI has become the talk of the town,
from boardrooms to classrooms, every corner of our lifecenme to
(31:49):
embrace new AI tools for better or for worse. In
twenty twenty five, approximately sixty six percent of Americans reported
seeking financial advice from Generative AI. According to Credit Karma.
That seemed high to me. Sixty six percent of Americans.
I know there's some people out there that don't even
know what chat GPT is. Nope, So that seemed high.
Speaker 1 (32:08):
But don't or don't want to or don't care.
Speaker 2 (32:11):
Yeah, and that the figure rises above eighty percent for
millennials or gen Z. So again, and that's that's seeking
financial advice. Kind of surprised me. It seems high, but
we'll go with it because they have they have a
source here in credit karma. While sources such as chat
GPT and co pilot have proven to be valuable tools,
they have also shown to be to provide misleading, fragmented,
(32:34):
or even false information when it comes to personal financial recommendations.
First one here is inaccurate information. This is my favorite one,
which is.
Speaker 1 (32:42):
The scariest part when it comes to your money.
Speaker 2 (32:45):
Asking him to advise you on the most recent tax
laws I are a contribution limits or loan forgiveness programs
may lead to receiving outdated or inaccurate information. Again, that's
the first word of caution here. And just a quick story,
I myself have used it and doing some some tax
planning for a client. And there is a new enhanced
(33:08):
senior deduction available this year, really for the next three
years till Trump is out of office. Called and it's
going to give you an additional six thousand dollars deduction
if you're over the age of sixty five, if you're
married filing jointly, that income or that six thousand dollars
is per person, so you could get up to twelve
thousand dollars off of your tax off of your income.
Speaker 1 (33:27):
That's significant money.
Speaker 2 (33:29):
Yep, significant income, but it phases out as your income
goes up. But it is there and it's available for
tax your twenty twenty five, twenty twenty six, and twenty seven.
I think, let me guess. AI did not know, so
what I put it through? And I said, hey, Ai,
I'm a sixty six year old. My income is this
amount of money. What is my standard deduction? And it
(33:52):
didn't give me the six thousand dollars. I did it
again later on. I told it. People say, it'll learn, Well, wasn't.
It wasn't learning from me. It didn't like me. It
mustn't know.
Speaker 1 (34:03):
We don't have time to learn it.
Speaker 2 (34:04):
What if you make a tax? I told it. I said, no,
the six thousand dollars dust count. I said, oh, I'm sorry,
yeah that does count, you know. And then I find
myself in this weird conversation with the computer like oh no,
it's okay, and I'm like, well, what am I doing?
Speaker 1 (34:15):
It's like talking to SERI in my car.
Speaker 2 (34:17):
Yeah, I'm like, so like another you know. A couple
of days go on and I asked it a similar
question again, and this time it argues with itself. It
said it first puts the six thousand dollars in there,
and then it goes back to me and it says, no,
I'm sorry, actually you don't get the six thousand dollars
this here. I'm like, no, actually you do. And it's like, oh, okay,
I'm sorry, yes you do. So we're in this like cordial,
nice conversation. Yeah, it was cat GPT.
Speaker 1 (34:39):
Does it really say I'm sorry?
Speaker 2 (34:40):
It kind of like told me like, yeah, I'm sorry,
I screwed up. It actually doesn't. And it was like
later on in the conversation, So you gotta be really careful.
And I tell everybody like, if you're an expert, whatever
your your industry you're in, if you're a nurse, if
you're an engineer, ask some questions related to your industry,
and that'll tell you that's a great point whether or
not you trust it, because when you're a professional in
that indu, you know what to look for. You know
(35:01):
what answer you.
Speaker 1 (35:02):
Said, you said, doctor or nurse, ask it one of.
Speaker 2 (35:04):
Those, an attorney or a mechanic like, ask it how
it would fix something and what its processes, and you
might go, ah, this is kind of so if you
don't trust it in your profession, you probably shouldn't trust
it in others.
Speaker 1 (35:15):
And it's so new yet AI in general. May you
know it's got its uses, no doubt about it. However,
with financial planning, I kind of like that human element Aaron,
I know, Yeah, we got to break quickly. We'll do that,
but we've got more thoughts coming up. Let's sneak in
our break. All right, we're gonna come back. What do
you got for us next?
Speaker 2 (35:34):
I think we're gonna quit one news flash update thrift
savings plans. We'll start offering in plan roth conversions. It's
hot off the presses, like literally within the last two days.
You told me some news coming up.
Speaker 1 (35:46):
Will update you with that when we come back on
WI said the Retirement Clinic. Please check out the Retirement
clinic dot com. Any questions called two six two five
to two. Aaron Spitzner hosting the program, and I'm Paul KRONFORCET.
This is WYSN. We are back in the Retirement Clinic
on WYSN. Aaron Spitzner A quick ps to that.
Speaker 2 (36:07):
Yeah, I just thought this was hilarious too, unrealistic goals
when you're working with chat gibtwo to create a retirement plan.
I thought this was great that this person is talking
to them about what would what would allow me to
retire within the next ten years. All right, so the
chat gibt whatever AI think. They don't know who you are,
but it sets these unrealistic goals. So the recommendations save
(36:28):
half of your income between now and retirement, Okay, unrealistic, right,
sell your home and move to a new state.
Speaker 1 (36:35):
Really just like that.
Speaker 2 (36:36):
And then the last one increasing your increase your yearly
income by fifty thousand.
Speaker 1 (36:41):
This is AI's answer.
Speaker 2 (36:42):
These are some drastic life changes. AI doesn't know who
you are, they don't know what's Possiblely, again, you're talking
to a computer. There's no personal connection.
Speaker 1 (36:49):
So it's like those kids that unfortunately they talked. You
heard these stories, right, about suicidal.
Speaker 2 (36:56):
Yeah, using it.
Speaker 1 (36:57):
It's very sad.
Speaker 2 (36:57):
Yeah, I've always problems gone going on and this the
resolution is yeah, to check out. Yes, that's AI.
Speaker 1 (37:04):
That's awful.
Speaker 2 (37:05):
It's a computer. There's no personal connection. They don't know
who you are, they don't know what's possible. As you're
working with a financial planner, we're going to take much
more marginal steps towards getting you on the right path
to retirement and ultimately success.
Speaker 1 (37:18):
It's just it's common sense in my opinion. It's like
the Internet. There's so many good things and there's so
many bad things. Now, the latest news about the drift.
Speaker 2 (37:26):
Saving this is hot off the presses. I needed to
include it in today's This isn't really exciting fun stuff,
but hey, it makes a big difference. Thrift savings plans
will start offering in plan roth conversions. Actually this this
article was titled January fifth. This this is as of
January twenty eighth, twenty twenty six, So this past week,
(37:47):
Thrift Savings Plans, a four oh one K like retirement
savings plan for federal civilian employees and uniform service members,
will begin offering in plan conversions. So an inplan conversion
basically allows you to take money that is pre tax,
move it over, pay tax on it now, and now
it's in a roth account, and they'll grow tax free
(38:09):
forever and ever and ever until you take it out,
so you pay tax on it today, but it grows
tax free. A couple things just to be aware of
if you are in a TSP plan and you want
to do this inplanned conversions will be available to all
TSP participants, including active participants, separated and retired participants, and
spase beneficiaries. With these accounts, you have to move at
least five hundred dollars when you do the conversion, and
(38:30):
the minimum of five hundred must be left in each
account after the conversion is complete. There is no maximum
to how much you can convert. You can convert twenty
six times during a calendar year, so you can do
a little bit at a time. Married TSP participants are
not required to obtain sposal consent. That is very important.
You might want to talk to your spouse about it
because it can trigger more income, more a bigger tax bill. Head. Yeah,
(38:54):
you don't want to just show an implant conversion. Hey, honey.
By the way, we all twenty thousand federal tax to
that did a big implant conversion, that might be mention
that as it goes on, you don't need the consent,
but it's important to talk about it. And for participants
subject to the required minimum distributions, the R and D
must be out before you do the implant conversion. Again,
a TSP inplant conversion creates taxable income in the year
of the conversion and cannot be reversed or changed. There
(39:18):
is no withholding on implant conversions, so participants may be
required to make estimated tax payments to the IRS. Therefore,
a TSP participant considering an inplant conversion must make sure
he has enough funds. He or she has enough funds
to cover the increased tax liability. That is the big
part about that article is you can do then, but
make sure you're covering your tax bill.
Speaker 1 (39:39):
We covered so much territory today with Aaron Spitzer, certified
financial planner with Creative Planning on WYSSN. How to start
that process. We kind of started the show with that,
and we're gonna end with that when we come back
on WYSCENT. As we wrap up today's retirement clinic. First
off back next Saturday and every Saturday at ten o'clock.
(40:00):
Aaron Spitzer, thanks for a great show, Chuck full of
information on knowledge.
Speaker 2 (40:04):
We covered a lot of random topics here today, but
that's you know, that's financial planning. And just like we
talked about before, if you have if you want to
get that process started, give our office a call at
two six two five two two forty forty. You can
find us online at Creatiplanning dot com. You can get
the process started that way as well, and we'll set
you up with one of the advisors in our office,
(40:26):
whether it's Brookfield, Racine Port, Washington or out in Delafield
and uh and we love to sit down with you simply.
Speaker 1 (40:34):
You can start with the phone call. It's that simple
call two six two five two two forty forty Creative
Planning dot com or the Retirement Clinic dot com. Aaron,
I never asked you about your thoughts on the Super Bowl.
We don't have time. It's two teams left.
Speaker 2 (40:50):
I just like the Patriots. Okay, young young young quarterback.
Speaker 1 (40:53):
Young twenty twer quarterback. It's like I hear a good
win all the time. It's been a while for the
new regime. New regime. I I'm with you in the
Patriots to like that team about Seattle. I don't know why.
Speaker 2 (41:06):
I wanted the Rams film ever since the fail. Mary,
I can't get over the fail.
Speaker 1 (41:09):
Mary. Oh my goodness, great stuff today. Have a good weekend, Aeron,
thank you. We're out a time, but we'll see you
next week. Don't forget Monday through Friday on the Dan
o'donald Show those quick brief one minute market updates done
by Aaron and the cast of others at Creative Planning.
See you then on WISN Milwaukee News is up next.
Speaker 5 (41:26):
The preceding program is furnished by Creative Planning and SEC
registered investment advisory firm. Creative Planning, along with its affiliate
United Capital Financial Advisors, currently manages or advises on a
combined three hundred and twenty five billion dollars in assets
as of June thirtieth, twenty twenty four. The host works
for Creative Planning, and all opinions expressed by the host
and or their guests are solely their own and do
(41:47):
not necessarily represent the opinion of Creative Planning. The show
is designed to be informational in nature and does not
constitute investment, tax or legal advice. Different types of investments
involve varying degrees of risk, and there could be no
assurance that.
Speaker 1 (42:00):
The future performance of any specific.
Speaker 5 (42:02):
Investment or investment strategy, including those discussed on the show,
will be profitable or equal any historical performance levels. The
information contained herein has been obtained from sources deemed reliable,
but is not guaranteed. If you would like our help,
request to speak to an advisor by going to creative
planning dot com. Creative Planning, tax and legal are separate
entities that must be engaged independently.
Welcome to WI. I said. This is the Retirement Clinic
hosted this morning by Aaron Spitzer of Creative Planning. I'm
Paul kron Forest. Aaron, welcome back and thank you thanks
for having me your first show right of twenty twenty six.
Speaker 2 (00:14):
Of twenty twenty six.
Speaker 1 (00:15):
Yeah, I'll say it. Wan't listened to my last time
saying Happy New Year. Happy.
Speaker 2 (00:18):
I don't think yeah, don't think you can say Happy
New Year like it's three days and I think that
it's the thing.
Speaker 1 (00:24):
It was first.
Speaker 2 (00:24):
Yeah, one of the years we looked at this. There's
like a certain deadline. You can't say like happy New
Year or Merry Christmas anymore, you know, I would say.
Speaker 1 (00:33):
Today would be it the last. Today is the last
day of the month.
Speaker 2 (00:36):
Yea, Now it's.
Speaker 1 (00:37):
Man, we got a lot to tall.
Speaker 2 (00:38):
The resolutions are out the window by now.
Speaker 1 (00:40):
Oh but now you know what they call it quitting day.
I could be wrong. It was January ninth.
Speaker 2 (00:46):
It sounds bar quitting day. I'm guilty of it too.
I'm not laughing at an everybody else, I'm laughing at myself.
I don't even make them anymore because of it.
Speaker 1 (00:53):
I totally stopped making new year's resolutions. Here's my thought,
and we can jump into other topics quickly. But if
you're going to do a diet, lose weight, stop smoking, whatever,
be a nicer person, why don't you start doing that
right now?
Speaker 2 (01:06):
I mean, and just can start anytime. It's your point, right,
you can start today and make that talk about that
with financial planning a lot too. I know Jeff's that
is true. Jeff's got his great line about there's always
a reason to uh to not do it right.
Speaker 1 (01:21):
He goes through in the twenties, Yeah, you're struggling to
just pay your mortgage. Maybe you're having kids and you're
living check to check.
Speaker 2 (01:27):
I'll get get around to it.
Speaker 1 (01:29):
Then the thirties, yeah, well now the kids are like
you know, they're growing up. Man, we got club sports
to pay.
Speaker 2 (01:34):
You're into this, well yeah, every night of the week,
every night of the week, you've.
Speaker 1 (01:37):
Got something going on. So there's an excuse. And you
get the point your forties or fifty, you're always going
to have an excuse not to save money.
Speaker 2 (01:44):
The same thing with the calendar, right, there's always well,
you know, in summer you got your vacations, right, and
then in the spring, if all kids are going back
to school. You got that going on, and then well
it's it's almost Thanksgiving time. You got the holidays coming up. Well,
then there's Christmas, well then it Yeah, there's always something.
So there's no better time to start really than now.
Speaker 1 (02:02):
Yeah, hey, it's the last say of the month. Maybe
you make this the time to start thinking about turning
over a new leaf or whatever it is. I mean,
if you're not saving for your retirement, air in the
thrust of this program which has been on since two
thousand and one with the Coal Investment Group, now you've
joined forces with Creative planning has always been about that
some sort of retirement plan, whether it's a four oh
(02:23):
one K, your self employment, whatever it is, you need
more than just I think social security. Some people plan
on an inheritance. I think that's outright wrong, because how
do you.
Speaker 2 (02:34):
Know, Yeah, that's one of those things we always say
if it's if it comes, if we're not gonna plan
on getting it, and we'll look at it is like extra.
Speaker 1 (02:44):
It's a bonus if you get an inheritance. Well, you know,
I plan on a big inheritance, So I'll just put
that four to one kN in the back Burner. Well,
here's what we're gonna do. We're gonna hear from Jeff
Cowal today. I'll lay out the agenda for the program.
Jeff has got a topic which is fantastic. This goes
to the heart of saving your money. Here's what it's called.
You saved it, now, here's how to spend it. And
(03:07):
Jeff has talked about this many times over the years
with me. There's a guilt factor. Some people think they
need to leave it generation money to the next and
their kids and their kids. Everybody's got different opinions. Jeff
will chime in later in this hour with that topic.
That being said, you've got a bunch of great topics yourself,
Aaron Spitzer, Yeah, you're a certified financial planner. Yep. Should
(03:28):
we walk through creative planning real quickly? Make the elevator speech?
Speaker 2 (03:31):
Yeah, Actually, you know one of the things I was
going it's been about a year now since we've joined
forces with them, and I thought it would be good
today to just briefly touch on our process. What to
expect if you call in, if you want to set
up that introductory meeting, what that looks like for you,
and what you can expect with the services offered at
(03:54):
Creative Planning, and of course our different locations as well
as we have our our spot in Brookfield on Blue Mount.
On Blue Mount, you can't miss it right by Dick
Sporting Goods, Portillo's over there, and then we have Port Washington.
We also have Delafield and we have the Racine location
as well.
Speaker 1 (04:14):
You're stomping ground.
Speaker 2 (04:15):
Yes, And of course we're always available over Zoom, which
we always joke about, right, I mean, go back to
pre COVID times and it was a zoom meeting was
a very different thing to have it and now it
has become much more casual and easy for people to
use the software. So if you don't feel like getting
out on one of these cold days, we can always
(04:37):
set up an introductory call over Zoom.
Speaker 1 (04:39):
A phone call can be a good way or not.
Speaker 2 (04:42):
People still use the phone, believe it or not. Is
that something I saw a comedian the other day talk
about that, like like why certain people rush to pick
up the phone, And he was like, well, back in
our day, there wasn't color I D and there wasn't
an answering machine and if the phone rang, you picked
it up.
Speaker 1 (04:57):
When the landline went off of my house growing up
in a seventy eighties. It was especially in those teenagers
my sister I had one sister and one brother. We
would rush yeah, thinking it's for us, of course, Ah, crap,
Kalai's for you. You know one of those things.
Speaker 2 (05:11):
Now you look at people, look at it. Oh who's calling?
You know? I don't know that number. I'm not going
to answer. Spam has ruined it for everybody.
Speaker 1 (05:19):
But uh, and I will say this, I rarely pick
up my phone. I usually unless it's you Aaron.
Speaker 2 (05:25):
Of course, of course.
Speaker 1 (05:26):
I mean if it's my wife, it's so easy. But
if you're driving, kind of leave me alone. I'll get
to it. I'll get to all your texts. But you're
right about that things have changed. Technology is a wonderful
thing in certain areas of life. In fact, later in
the hour, you're going to talk about a.
Speaker 2 (05:41):
I yes, yes, and it'll be a good piece as well.
And so getting back to the process here, So if
you again, we we cover all these in depth topics,
and sometimes I think we missed. We missed the beginning
part and just talking about what it looks like if
you reached out to create a planning and what our
process looks like. So just real quickly, I thought it'd
be helpful for the listeners to go through hearing a
(06:05):
little bit about you know, what it would look like.
So you reach out to the office and you want
to get to know one of the advisors at our office.
So you'd be paired up with one of the advisors
based on your location, and we'd have our initial meeting.
And I like to say that one is really there's
no barriers to that meeting. We're not going to ask
for a list of I mean, if you want to
bring in your documents, it's more than welcome. But if
(06:26):
if you're just looking to get to know a planner
and seeing if it's a good fit, that initial meeting
is really low pressure and to get to know one another.
We're going to see if you're a good fit, and
you're also going to see if we're a good fit
for you. So there's no obligation, yeah, correct, no fee,
no fee to that.
Speaker 1 (06:42):
You're just meeting with your certified financial advisor. Yeah, you're
meeting with somebody like you.
Speaker 2 (06:46):
And in that meeting, what I like to do personally,
Now every advisor is going to be a little bit
different We're not all the same. We're not all just
robots or computers that you're going to come in and
talk to like this AI thing I'm going to give
you a little bit later on. We're all going to
have our different approach, in our different style, and that's
why it's important to come in and meet with somebody
and see if they're they're a good fit. Some people
say I'm a little bit more casual with my approach,
(07:07):
and what I'm going to do in that meeting is again,
get to know you, start to get to know what
your goals are, what you're trying to achieve, where you're
at in the savings process, and your you know, in
your life. And then I'll maybe start to put some
stuff in our system. And what I mean by that
is I'll plug in, Okay, what do you got in
your four O? Okay, what do you have in the bank?
(07:27):
Have you looked at your social Security estimates? And I'll
get your brain going and start thinking about these numbers
and why I'm asking about them. Otherwise, if I ask
you to bring it all, any might go, well, why
is Aaron asking me to bring in all of my
my insurance, my home, my auto insurance, my life insurance, Like,
what does he need all this? He hasn't even met
me yet.
Speaker 1 (07:44):
Yeah, it's kind of a pain in the butt.
Speaker 2 (07:46):
Yeah, if you're gonna do business with that person, you
might be like, why am I going to do all
this homework if I don't even know Aaron from the
next guy. So that first meeting, I'll explain to you
why we're gonna need it, and I'll really start to
illustrate why we're gonna need it by punching some of
this information in our system and trying to run those
retirement projections for you. Of course, sending it to the
biggest one that's gonna take a little bit of homework,
and that's how much are you spending? How much do
(08:06):
you plan to spend in retirement? Well, if you're twenty
years away from retirement, you're gonna have any idea how
much you're gonna spend retirement. I'll help you kind of
figure out what that number is. But the closer you are,
you know, I have some good ideas on how to
calculate how much you're spending on a monthly basis, because
that obviously matters just as much as as what you
(08:27):
have saved. Okay, So I go through all this informational.
Maybe I'll send you home with some homework and a
worksheet saying, Okay, for the next meeting, I'm gonna need this,
that and the other thing. Balances social security estimates, home
and auto insurance, maybe your state plan tax return. And
that gives me enough to get a little dangerous with.
So you bring in those documents to the next meeting,
and at that meeting, if you wanted to do business
(08:47):
with us, we would start to prep some of the forms,
some of the paperwork, new account applications, so on and
so forth. We like to do all that over docu sign.
It makes it easy for you as well. If you're
okay with that, we do it over docu sign electronically.
Otherwise we can print out the paper copy too. Some
people don't like docus signing because they say, just got
If it's on their phone, they can't really read the document.
They really don't know what they're signing. But it's safe, right, yeah,
(09:09):
and it's the same thing too. So but if you
like to have that physical copy in front of you,
you know, we will print it out for you too.
Of course, we're gonna go through things like your risk
tolerance as well, and try to figure out what investment
strategy is appropriate for you. That you know, also ties
into what your need is in retirement. If you're taking
out a lot of money, okay, we want to tie
that into also your your risk tolerance. Okay maybe, and
(09:31):
I'll use my judgment as well to help figure out
how much stock and bond exposure we want to have
in your portfolio.
Speaker 1 (09:36):
You're also you're hitting on a point. Everybody you deal with,
you make a custom plan because everybody's different. Eron, I
might spend in a month a lot more than a
friend of mine. We might have the same exact income,
the same savings, but I just like to spend.
Speaker 2 (09:49):
Talk about social security, right, so some people they might
live off of social Security completely. I have some clients
that come in the door, and I just had one
the other day. They had a big nest egg saved
up and they're not going to touch it. They're going
to live off of a pension social Security. Now, the
pension is a nice pension. Don't get me wrong on
that nest.
Speaker 1 (10:08):
Take you said not touching it. Can't you keep growing?
Speaker 2 (10:10):
It'll it'll just keep growing. Yeah, And you know it's
there if they wanted to take a bigger distribution for
let's say they need a new roof, find house, or
buy a vacation home something like that. Like other people though,
they're they're just not going to That's like where Jeff's
piece comes in later on. You know, you saved it,
and here's how to spend it.
Speaker 1 (10:26):
It's almost like how you were raised. I know some
people that's exactly it. That we're pretty that are pretty
well off and wealthy, and they're still clipping the coupons.
You know they're doing I haven't thinking.
Speaker 2 (10:36):
Sometimes my biggest job is to convince them them to
spend the money. Can't take it with you.
Speaker 1 (10:40):
That's what we're going to talk about later.
Speaker 2 (10:41):
It's not what you know people, So you got to
figure out what their goals are. And again that's part
of those initial meetings is what are your goals? Okay,
if you're not going to spend it, now, we have
to make sure it's set up appropriately for those beneficiaries.
How do we do that? What kind of counts do
we want to have it? And we got to make
sure those beneficiaries are up to dates.
Speaker 1 (10:54):
There's the rmds that you have to take out.
Speaker 2 (10:57):
And we want to keep those as low as possible
if we can control your taxable income and medicare premiums,
all that good stuff. But again, so these initial meetings
they matter a lot, and figure out what that looks
like for you. Of course, we're gonna put all this
down on paper two and we're going to present to
you what's called internally, we call it a dashboard. This
(11:18):
is your financial life boiled down to you know. It
could be as much as fifteen pages. It could be
nine pages, it could be six pages. It depends on
the complexity of your life as well. And it's gonna
have recommendations. It's gonna have summary of everything, insurance contract numbers,
beneficiaries that risk tolerance.
Speaker 1 (11:34):
So it's you, we've talked about this. You actually provide
a binder, right.
Speaker 2 (11:38):
A binder with all of your documents in there.
Speaker 1 (11:40):
Everything's organized from life insurance to account numbers to everything. Right.
Speaker 2 (11:45):
Yeah, so it helps a lot of people. Now there
are again I'd say two out of ten people come
in and hey, Aaron, I got a binder, I got
a system set up at home. I don't need your binder.
I'd say seventy five percent to eighty percent of us.
We may have a process at home, kind of a process.
Some people have no process at all. But it helps
get your organized. I mean even myself. You know when
I saw the binder. But this is great for my family.
(12:06):
I have everything in there. Those insurance renewals come through, okay,
stuff the new one in there, your twenty twenty five
tax return, put it in the binder. You have everything
in one spot. If something happens to you, your kids
or grandkids, everything in your spouse.
Speaker 1 (12:21):
Yeah, yes, sometimes yeah, they don't talk about it. They
don't know what I mean. I'm just thinking now, if
God forbids something would happen to my wife, I might
be a little lost for a bit in more ways
than one. But the financial aspects, knowing what are the passwords?
Where are these accounts? How do you get out of it?
We've talked about this so many times. Don't you think
if it's a typical marriage, kids are out of the house,
(12:43):
your married life is going well, we're retired. Shouldn't the
spouse have some knowledge about Yes, both should have knowledge.
Speaker 2 (12:50):
I mean we each specialize in our own thing, you know,
at home, at least we do in our house. You know,
I may have handled some of this. And my wife's
phenomenal with the kids and all their plans and all
their things that go on. I mean, I don't know
how she keeps.
Speaker 1 (13:03):
You cut the grass, chop the wood. You're telling me
you're chopping wood in this sub zero temperature because you
needed fresh.
Speaker 2 (13:08):
Air trying to get outside. I didn't last very long,
I'll be honest about that. You know, in this cold
whither speaking of that, in this cold weather, we actually
had a window break, no from your house from this
the change in temperature, so it was it was pretty
nasty out there.
Speaker 1 (13:23):
Did you get that repaired?
Speaker 2 (13:24):
Are It's just a it's a big it's a hairline
crack from one corner to the other. Oh, so you
gotta take the whole pane out, I think, and we'll
deal with all that later.
Speaker 1 (13:30):
Is there anything coming in wind cold?
Speaker 3 (13:32):
It's not like I just have a hole in the house.
If you got it. But I know some people that
can help you. I know a lot of window contracts.
We'll have to you only need to get that fixed.
It's like a windshield in the car that's got that crack.
Speaker 2 (13:43):
But I do I do want to thank you though,
for reminding me of the binder. You know, I I
overlook some of the stuff. I do it every day,
and I don't think how how different it is from
other other planners and other advisors. And putting that binder together,
putting that financial plan together, having it all in one spot.
That's the ultimate gold of these meetings and all will
give you some guidance on how much you can spend
(14:03):
and how things look for you and give you that
confidence in retirement. So it's a full service organization with
creative planning here everything internally. Again, it's a one stop shop.
All of this is offered internally. From tax planning, insurance insurance,
is home auto life insurance, long term care planning, it's
stay planning. Yeah, state planning, so the legal part of it.
Some people they just want to have their state planned reviewed.
(14:23):
Some people don't have anything done at all. And we'll
draft those documents for you. That's going to be an
additional fee. I want to make it clear. You know,
we have our management fee on how we charge our clients,
but that's an additional feenny time they're drafting an additional document.
There's business services, so you may own a small business
and you're looking at getting out. How do I get out?
How do I onwine this? How do I start generating
income from this business? Well, we have a team that
(14:45):
will assist you with that, and then four oh one
K administration. Let's say you run your own four oh
one k for you have a small business and you
got twenty five people in this four oh one K
plan and there's a lot of nuances with that, laws, regulations,
create a planning. We'll take care of that for you
as well. So just about anything and everything that can
tout you financially and affect you financially, they can handle internally.
Speaker 1 (15:07):
We should give out you mentioned starting the process. Here's
the phone number to start the process. One phone number
for all those locations, which was the co All Investment
Group joining forces with Creative Planning. I think, Aaron you
said a little over a year ago, and we announced
that transition on the show. They still do all the
market updates during the Dan o'donald show in the afternoon
(15:27):
three and five pm news blocks and this show the
Retirement Clinic since two thousand and one, we've been on
Saturday mornings. I said it before your certified financial I
think I said something else. It's planner CFP. Yeah, I
think I said, I don't know what you call me
analyst or something. I made something up. You are a CFP.
And again you've got all these people under one roof,
from estate planning to taxes. And that's just that's the
(15:50):
beauty insurance, my goodness. So Creative Planning has all these resources.
You can go to two websites, Creative Planning dot com
or the Retirement Clinic dot com. We've actually got podcasts
up past shows and all the contact information for those locations.
Again in Brookfield, in Racene, where Aaron Spitzner here is
usually there every day, I'm guessing unless you're out doing
(16:13):
radio shows and chopping on fixing windows Tuesday through Friday.
Speaker 2 (16:18):
I am in our Racene locate. It's a mount Pleasant
servent in whatever you want to call it, just north
of that mammoth data center that we've all saw on
the news there fifteen more data centers or whatever it
may be, that's right in our backyard down there. And
you go on in.
Speaker 1 (16:33):
Port Washington too, where you have an office.
Speaker 2 (16:35):
Yep, yeah, we go wherever the data centers go. I
guess it looks like.
Speaker 1 (16:38):
You are they're following you, Yeah, because you were there first.
But there's under construction import they just started that, I believe.
So you're in Port Washington, Delafield, you're in a racine
and of course at Brookfield that ye. I don't know
if that's the main one, but it's huge. You can't
miss a sign right on Blue Mountain Road. Creative Planning
dot com. This is the retirement Clinic. Also on social
media Facebook, LinkedIn, Instagram, and x if you're looking for
(17:00):
more information two six two five two to forty forty.
As I mentioned Jeff Colewaal coming up about spending some
of that money. You're going to talk about artificial intelligence.
You've also got a great topic that I just want
to mention Aaron. It's about how much money parents need
to raise two kids.
Speaker 2 (17:17):
Yeah, this is one that just caught my attention the
other day. I thought it was kind of interesting. Households
with two kids need to earn over four hundred thousand
dollars to comfortably afford childcare in the US. Again, being
a retirement show, I try to keep it towards retirement topics.
You could also say that this comes into retirement plan
because how do you afford to save for retirement. When
you got to have that much money, allkated.
Speaker 1 (17:39):
So it was a household income of Yeah, one hundred thousand.
Speaker 2 (17:43):
Childcare is considered affordable. This is from Fox six Milwaukee,
published on January twenty third. Childcare is considered affordable at
seven percent of income. But for two kids, families would
need to earn four hundred and two thousand, seven hundred
and eight dollars a year, according to new data.
Speaker 1 (18:02):
Which is way above the median household. Yeah, it's not
even close amount of money.
Speaker 2 (18:07):
Yeah, go through some of these here. We obviously we
know what's expensive. Everybody talks about the cost of it,
but nobody really boil it down to these numbers. According
to Childcare Aware of America, the average annual cost of
childcare for an infant and a four year old across
the US was twenty eight thousand and ninety dollars.
Speaker 1 (18:27):
So for both, So let's say you've got a four
year old and you've got a baby. Yep, you're taking them.
I'm assuming that's five days a week to take care
twenty How much was it.
Speaker 2 (18:37):
Twenty and ninety dollars?
Speaker 1 (18:39):
Yeah, I can tell you this. I've got two daughters.
I've got one grandson, as you know, erin two on
the way, and my youngest is looking into childcar and
it is expensive. There's no way to you can't you
can't mince any words. It's downright expensive.
Speaker 2 (18:55):
And we talk about kind of the back and forth
of it. Well, at some point you might decide to
stay home. Well, if you if you stay home, well,
where were you in your career at the time, you know,
And then all of a sudden you're stepping back from
maybe those years where you're really advancing and growing in
your career, and you lose some of that income. Will
you also lose some of your individuality out there too?
Because now you're now you're at home with the kids,
(19:17):
and that's what you do every day, and you're in
the house and you're you know, you're you're really working
at home.
Speaker 1 (19:23):
Maybe there's a dog, yeah, there's You had the stresses
of daily life.
Speaker 2 (19:27):
It's a different stress when you when you're at home
every day.
Speaker 1 (19:30):
And some parents, I will say this, if you're blessed
enough to have maybe one of the in laws, right
the grandparents, maybe take a day a week. I'm starting
to do that right now. Eron my new schedule this year.
I'm very lucky that I can take a day a
week and watch my little guy. Yeah, in Dallas, and
it's like I can piled the heck out of him
for a day and totally. I'm very He's still naps,
(19:51):
you know, he's only two, so he takes nap then,
I know, because I could not fall asleep with that responsibility. Yeah,
you know what I it's like as a parent.
Speaker 2 (20:01):
I could fall asleep anywhere. Really. Yeah.
Speaker 1 (20:03):
Can you fall asleep on an airplane?
Speaker 2 (20:05):
Oh? Yeah, absolutely? Okay, so before it even takes off,
you're one of those guys.
Speaker 3 (20:08):
Yeah, I just I'm a little jealous, but I'll get
back the business.
Speaker 2 (20:13):
For a household to spend only seven percent of its
income on childcare, based on an affordability threshold set by
the US Department of Health and Human Services, it would
need to earn four hundred and two thousand dollars a year.
The data found. That's one hundred and seventy six percent
higher than the average income. Among households with two kids,
the average incomes about one hundred and forty five thousand. Wait,
(20:36):
the average is one forty five The average about one
hundred and forty five.
Speaker 1 (20:41):
With both working. Yeah, I think gone are the days
of having kids and just like dad working and mom
staying home. Not all cases, but I think that was
the Norman America the nineteen fifties, sixties. Times have changed, Aaron.
Speaker 2 (20:56):
This, this kind of caught me off guardtoon. So there's
no surprise, right that, you know, we talk talk about
we've all seen the things like Hawaii with their inflation
and in their cost of living is a little bit higher,
so they have the highest discrepancy. Your family's paid an
average of thirty eight thousand, one hundred and seven thousand,
one hundred and seven dollars annually, So thirty eight thousand
dollars annually for an infant and a four year old
(21:17):
again for childcare, so that to keep expenses within the
seven percent threshold of income, they would need to earn
five hundred and forty four thousand dollars a year. Now,
this this is what really surprised me. So that's again
two hundred and seventy percent more than the average income.
Blah blah blah. The next the next like biggest discrepancy
(21:38):
amongst states after Hawaii, it's Nebraska, than Montana, than Maryland
and Massachusetts. So not far behind is Nebraska. So that
tells me to cost. You know, childcare is very expensive
there for whatever the reason that would be.
Speaker 1 (21:49):
I would not I would think it'd be a little
bit less, you know in the state. I would think
the high states would be East coast and West coast.
Speaker 2 (21:54):
Yeah, they all have very similar gaps, so those additional states.
So you know, it brings into the question, well, you know,
how are these people saving for retirement. You know, you
talk about maybe one person working, one person staying home.
It gets tough.
Speaker 1 (22:08):
It depends on the salary. In some cases they might
say screw it, it's better off if you just stay
home with the kids. Yeah, raise them and not.
Speaker 2 (22:16):
Get them to that four K five K where they're
on the bus a couple days a week. If they
offer a bus service for kids a little.
Speaker 1 (22:23):
And noticed I didn't say the lady. It could be
mister stays at home. Yeah, I've known guys that are
mister Mom. It's a great movie by the way, with
Michael Keaton. If you've never seen, Mister Mom, totally destroys
the house, right, but it is the whole play on
the different roles, right. Well, that times again have changed,
but regardless, the bottom line is, Aaron, it's very expensive
(22:45):
now you take it into account inflation. We don't know
where it's going to be, which is why we talk
about your retirement plan almost each week on the show.
Speaker 2 (22:52):
I mean, if you stay home, you can put money
away for your spouse even with the sposors and have income.
But where are you going to find that extra income from? Again,
there's so many things that kind of snowball from that article.
They could go on and on about how do people
afford retirement at that point in time? And you better
have a good job, and then you got to think
about well if I'm not working, not paying into Social Security,
and also I won't have as big of a Social
Security benefit later down the road. There there is a
(23:13):
lot of issues that come.
Speaker 1 (23:14):
Out of a lot of moving parts.
Speaker 2 (23:16):
It's a little Fox News Milwaukee article and go, yeah,
there are bigger issues that can come out of that.
Maybe you just don't have kids, but stick to dogs.
I don't know how much doggy daycare costs. I don't
know that one either.
Speaker 1 (23:27):
You know that's expensive too. We used to, you know,
when we go on vacation, our dog is no longer,
no longer with us. But for boarding a pat it's godlikes,
It's insane. It was just this much for one night.
Then you do the math, You're going thirteen days. Uh.
The headline there, though, is what grabbed me. And how
much is the amount? Again? Two kids?
Speaker 2 (23:49):
Full time household with two kids need to earn over
four hundred thousand to comfortably afford childcare in the US. Again,
the big thing comfortably. I think people can do it
with less a mount than that, but then they have
to make concessions elsewhere in life.
Speaker 1 (24:01):
That's just a lot of money. So when we come back,
we'll talk about speaking of money. Jeff Colewall, you saved it.
Now here's how to spend it. In a special segment,
Aaron's going to react to that. He's also going to
talk a little bit about AI and how it factors
into can you just use AI for your your advisor? Hey?
How much do I need? Tell me where to put
my money? Where to?
Speaker 2 (24:22):
You know?
Speaker 1 (24:23):
Maybe maybe not?
Speaker 2 (24:25):
Well, we'll talk.
Speaker 1 (24:26):
I think you've got some thoughts on that. Aaron Spitzer,
Today's host the Retirement Clinic on WISN. Here's the phone
number to call two six two five two two forty forty,
or the Retirement Clinic dot com. I'm Paul kron Force
right here in WISN. We'll be right back.
Speaker 4 (24:43):
I wanted to address spending in retirement. It's drilled into
us save, save, save, not spend, spend, spend, So when
retirement comes and you are not saving much anymore, how
do you plan for that? There's a KIPL retirement report
article I thought was pretty interesting. It's titled you saved it,
(25:07):
Now Here's how to spend it? Multiple strategies for growing
older without going broke. It was tough enough to save
and invest the fund retirement, but once you retire, you're
confronted with a new and confounding challenge. How do you
manage a portfolio through unpredictable markets that will generate enough
income to meet retirement costs, which many which may include
(25:30):
long term care for an unknowing number of years. Luckily,
there's growing consensus about you know how to how to
plan for this support strategies, but there will always be
debates over details, such as exactly how much you can
take safely from a portfolio each year. But let's start
(25:52):
with a couple of these items that they address how
should I organize my retirement portfolio. One way to turn
the portfolio into a regular paycheck. You can do it
with an annuity. Not always the best way to go,
but a lot of advisors, including us, will make sure
that you have cash for short term means, fixed income
(26:14):
for medium expenses, and stocks for long term, and also
make sure that you address long term care insurance if
that's appropriate for you. The first step is to estimate
your annual expenses though in retirement for at least the
next decade, housing, food, health insurance taxes, transportation allowances for inflation,
(26:35):
and occasional big ticket necessities such as dental emergencies and
home and car. And again, in our practice, a lot
of our clients have saved their lifetime so they can
enjoy retirement, and vacations are a big part of that.
So big ticket items could be a vacation every year,
especially for the first ten or fifteen years, while you're
(26:55):
reasonably inclined to be healthy. Let's put it that way.
You don't know what plans are, but you don't know
how things happen, but again, plan for that, so put
some money aside for savings. Make sure you have enough
money for those items. Next is how can you how
much can I safely take from my portfolio each year?
(27:17):
And the article from Kiplinger says to calculate a withdrawal
rate that will allow you your savings to last your retirement,
you first have to estimate how long your retirement will last.
Social Security Administration data indicates the average sixty five year
old man will live seventeen and a half more years. Okay,
(27:38):
that puts you around what six seventy seven, eighty seven,
eighty five years old, something like that, about eighty five
years old, and a woman will live a little more
than twenty years, so eighty five, eighty six, eighty seven
somewhere around there. Most financial advisors and retirement calculators players
safe by assuming you'll need the money for thirty years.
(27:58):
We go out more than that. We go out to
age ninety nine with our planning. This is an interesting
comment from Kiplingers. Again, it says research shows that wealthier
Americans live longer, and that is true. We've passed retirement clinics.
We've indicated that wealthier people tend to pay attention to
(28:20):
their health pay attention to their healthcare.
Speaker 1 (28:22):
Okay.
Speaker 4 (28:23):
The last part of this is which accounts should I
draw from. Advisors generally recommend taking advantage of the tax
protection of four to one k's, traditional iras and wroth iris.
That means spending money for taxable accounts first, then tapping
tax deferred accounts such as four to one case and
traditional irays. Tax free wroth iras are generally last. But
(28:46):
Alan Roths, who's the CPA in Colorado Springs, notes that
the required men distributions from four to one k's at
traditional iras tend to complete complicate the picture at advice.
Retireings who don't yet have to take rm ds, but
who can make money out of their taxing for accounts
(29:07):
that remain a low tax bracket should do so. In
other words, either take some money out of your iras
to stay in a low while you're still a low
tax bracket before rmds. But if you do wroth conversions,
which I love even in retirement. Doing Roth conversions in retirement,
be careful with these roth conversions as they can push
(29:28):
you into a higher tax bracket or cause you to
pay higher Medicare expenses, So be careful with that hire
medical expenses or in a higher tax bracket.
Speaker 2 (29:40):
The last thing is.
Speaker 4 (29:41):
About relieving anxiety. First step in the laying anxiety is
to get started on a retirement financial plan. If your
portfolio can safely generate your net expenses again to relieve anxiety.
What we find in our practice is that if we
reduce the plan to writing, don't eyeball it. We use
a tool called vision Builder, which is a proprietary creative
(30:04):
planning tool, and we include inflation. We include gifting if
you want, We can include travel. We can include a
possibility of a long term care event. Make sure that
the surviving spouse still has enough money to last till
age ninety nine. But don't guess. Do not guess, do
the actual calculation. So that's my segment for this week.
(30:28):
I hope you enjoyed it. I hope you can take
advantage of it. Do give our office a call if
you have any questions about taking income and your retirement.
Then having your income lasts as long as you do
in retirement, even if that's the age ninety nine.
Speaker 1 (30:42):
Back to you, guys. Great to hear from Jeff Kowal
on WISN The Retirement Clinic. We continue with Aaron Spitzner,
your host on WISN with creative planning, and I'm Paul
kron Force. Jeff talked about you saved it aerin now
Here's how to spend it. You've got thoughts on that,
You've got thoughts on artificial intelligence AI in your industry?
Speaker 2 (31:04):
Yeah, And believe it or not, even I have dabbled
in the AI world from time to time here just
kind of seeing what if it aligns with where my
brain is, which is hard to do for most, but
I take a look at it. And that's why this
article caught my attention. This as a Kiplinger's article, No
AI Can't plan your retirement. This human Investment Advisor explains
(31:28):
why this was published by Alan Becker, and it looks
like it was about a week ago or so, and
just to still a couple things from the article, and
then I got a kind of a real life scenario
here too. AI has become the talk of the town,
from boardrooms to classrooms, every corner of our lifecenme to
(31:49):
embrace new AI tools for better or for worse. In
twenty twenty five, approximately sixty six percent of Americans reported
seeking financial advice from Generative AI. According to Credit Karma.
That seemed high to me. Sixty six percent of Americans.
I know there's some people out there that don't even
know what chat GPT is. Nope, So that seemed high.
Speaker 1 (32:08):
But don't or don't want to or don't care.
Speaker 2 (32:11):
Yeah, and that the figure rises above eighty percent for
millennials or gen Z. So again, and that's that's seeking
financial advice. Kind of surprised me. It seems high, but
we'll go with it because they have they have a
source here in credit karma. While sources such as chat
GPT and co pilot have proven to be valuable tools,
they have also shown to be to provide misleading, fragmented,
(32:34):
or even false information when it comes to personal financial recommendations.
First one here is inaccurate information. This is my favorite one,
which is.
Speaker 1 (32:42):
The scariest part when it comes to your money.
Speaker 2 (32:45):
Asking him to advise you on the most recent tax
laws I are a contribution limits or loan forgiveness programs
may lead to receiving outdated or inaccurate information. Again, that's
the first word of caution here. And just a quick story,
I myself have used it and doing some some tax
planning for a client. And there is a new enhanced
(33:08):
senior deduction available this year, really for the next three
years till Trump is out of office. Called and it's
going to give you an additional six thousand dollars deduction
if you're over the age of sixty five, if you're
married filing jointly, that income or that six thousand dollars
is per person, so you could get up to twelve
thousand dollars off of your tax off of your income.
Speaker 1 (33:27):
That's significant money.
Speaker 2 (33:29):
Yep, significant income, but it phases out as your income
goes up. But it is there and it's available for
tax your twenty twenty five, twenty twenty six, and twenty seven.
I think, let me guess. AI did not know, so
what I put it through? And I said, hey, Ai,
I'm a sixty six year old. My income is this
amount of money. What is my standard deduction? And it
(33:52):
didn't give me the six thousand dollars. I did it
again later on. I told it. People say, it'll learn, Well, wasn't.
It wasn't learning from me. It didn't like me. It
mustn't know.
Speaker 1 (34:03):
We don't have time to learn it.
Speaker 2 (34:04):
What if you make a tax? I told it. I said, no,
the six thousand dollars dust count. I said, oh, I'm sorry,
yeah that does count, you know. And then I find
myself in this weird conversation with the computer like oh no,
it's okay, and I'm like, well, what am I doing?
Speaker 1 (34:15):
It's like talking to SERI in my car.
Speaker 2 (34:17):
Yeah, I'm like, so like another you know. A couple
of days go on and I asked it a similar
question again, and this time it argues with itself. It
said it first puts the six thousand dollars in there,
and then it goes back to me and it says, no,
I'm sorry, actually you don't get the six thousand dollars
this here. I'm like, no, actually you do. And it's like, oh, okay,
I'm sorry, yes you do. So we're in this like cordial,
nice conversation. Yeah, it was cat GPT.
Speaker 1 (34:39):
Does it really say I'm sorry?
Speaker 2 (34:40):
It kind of like told me like, yeah, I'm sorry,
I screwed up. It actually doesn't. And it was like
later on in the conversation, So you gotta be really careful.
And I tell everybody like, if you're an expert, whatever
your your industry you're in, if you're a nurse, if
you're an engineer, ask some questions related to your industry,
and that'll tell you that's a great point whether or
not you trust it, because when you're a professional in
that indu, you know what to look for. You know
(35:01):
what answer you.
Speaker 1 (35:02):
Said, you said, doctor or nurse, ask it one of.
Speaker 2 (35:04):
Those, an attorney or a mechanic like, ask it how
it would fix something and what its processes, and you
might go, ah, this is kind of so if you
don't trust it in your profession, you probably shouldn't trust
it in others.
Speaker 1 (35:15):
And it's so new yet AI in general. May you
know it's got its uses, no doubt about it. However,
with financial planning, I kind of like that human element Aaron,
I know, Yeah, we got to break quickly. We'll do that,
but we've got more thoughts coming up. Let's sneak in
our break. All right, we're gonna come back. What do
you got for us next?
Speaker 2 (35:34):
I think we're gonna quit one news flash update thrift
savings plans. We'll start offering in plan roth conversions. It's
hot off the presses, like literally within the last two days.
You told me some news coming up.
Speaker 1 (35:46):
Will update you with that when we come back on
WI said the Retirement Clinic. Please check out the Retirement
clinic dot com. Any questions called two six two five
to two. Aaron Spitzner hosting the program, and I'm Paul KRONFORCET.
This is WYSN. We are back in the Retirement Clinic
on WYSN. Aaron Spitzner A quick ps to that.
Speaker 2 (36:07):
Yeah, I just thought this was hilarious too, unrealistic goals
when you're working with chat gibtwo to create a retirement plan.
I thought this was great that this person is talking
to them about what would what would allow me to
retire within the next ten years. All right, so the
chat gibt whatever AI think. They don't know who you are,
but it sets these unrealistic goals. So the recommendations save
(36:28):
half of your income between now and retirement, Okay, unrealistic, right,
sell your home and move to a new state.
Speaker 1 (36:35):
Really just like that.
Speaker 2 (36:36):
And then the last one increasing your increase your yearly
income by fifty thousand.
Speaker 1 (36:41):
This is AI's answer.
Speaker 2 (36:42):
These are some drastic life changes. AI doesn't know who
you are, they don't know what's Possiblely, again, you're talking
to a computer. There's no personal connection.
Speaker 1 (36:49):
So it's like those kids that unfortunately they talked. You
heard these stories, right, about suicidal.
Speaker 2 (36:56):
Yeah, using it.
Speaker 1 (36:57):
It's very sad.
Speaker 2 (36:57):
Yeah, I've always problems gone going on and this the
resolution is yeah, to check out. Yes, that's AI.
Speaker 1 (37:04):
That's awful.
Speaker 2 (37:05):
It's a computer. There's no personal connection. They don't know
who you are, they don't know what's possible. As you're
working with a financial planner, we're going to take much
more marginal steps towards getting you on the right path
to retirement and ultimately success.
Speaker 1 (37:18):
It's just it's common sense in my opinion. It's like
the Internet. There's so many good things and there's so
many bad things. Now, the latest news about the drift.
Speaker 2 (37:26):
Saving this is hot off the presses. I needed to
include it in today's This isn't really exciting fun stuff,
but hey, it makes a big difference. Thrift savings plans
will start offering in plan roth conversions. Actually this this
article was titled January fifth. This this is as of
January twenty eighth, twenty twenty six, So this past week,
(37:47):
Thrift Savings Plans, a four oh one K like retirement
savings plan for federal civilian employees and uniform service members,
will begin offering in plan conversions. So an inplan conversion
basically allows you to take money that is pre tax,
move it over, pay tax on it now, and now
it's in a roth account, and they'll grow tax free
(38:09):
forever and ever and ever until you take it out,
so you pay tax on it today, but it grows
tax free. A couple things just to be aware of
if you are in a TSP plan and you want
to do this inplanned conversions will be available to all
TSP participants, including active participants, separated and retired participants, and
spase beneficiaries. With these accounts, you have to move at
least five hundred dollars when you do the conversion, and
(38:30):
the minimum of five hundred must be left in each
account after the conversion is complete. There is no maximum
to how much you can convert. You can convert twenty
six times during a calendar year, so you can do
a little bit at a time. Married TSP participants are
not required to obtain sposal consent. That is very important.
You might want to talk to your spouse about it
because it can trigger more income, more a bigger tax bill. Head. Yeah,
(38:54):
you don't want to just show an implant conversion. Hey, honey.
By the way, we all twenty thousand federal tax to
that did a big implant conversion, that might be mention
that as it goes on, you don't need the consent,
but it's important to talk about it. And for participants
subject to the required minimum distributions, the R and D
must be out before you do the implant conversion. Again,
a TSP inplant conversion creates taxable income in the year
of the conversion and cannot be reversed or changed. There
(39:18):
is no withholding on implant conversions, so participants may be
required to make estimated tax payments to the IRS. Therefore,
a TSP participant considering an inplant conversion must make sure
he has enough funds. He or she has enough funds
to cover the increased tax liability. That is the big
part about that article is you can do then, but
make sure you're covering your tax bill.
Speaker 1 (39:39):
We covered so much territory today with Aaron Spitzer, certified
financial planner with Creative Planning on WYSSN. How to start
that process. We kind of started the show with that,
and we're gonna end with that when we come back
on WYSCENT. As we wrap up today's retirement clinic. First
off back next Saturday and every Saturday at ten o'clock.
(40:00):
Aaron Spitzer, thanks for a great show, Chuck full of
information on knowledge.
Speaker 2 (40:04):
We covered a lot of random topics here today, but
that's you know, that's financial planning. And just like we
talked about before, if you have if you want to
get that process started, give our office a call at
two six two five two two forty forty. You can
find us online at Creatiplanning dot com. You can get
the process started that way as well, and we'll set
you up with one of the advisors in our office,
(40:26):
whether it's Brookfield, Racine Port, Washington or out in Delafield
and uh and we love to sit down with you simply.
Speaker 1 (40:34):
You can start with the phone call. It's that simple
call two six two five two two forty forty Creative
Planning dot com or the Retirement Clinic dot com. Aaron,
I never asked you about your thoughts on the Super Bowl.
We don't have time. It's two teams left.
Speaker 2 (40:50):
I just like the Patriots. Okay, young young young quarterback.
Speaker 1 (40:53):
Young twenty twer quarterback. It's like I hear a good
win all the time. It's been a while for the
new regime. New regime. I I'm with you in the
Patriots to like that team about Seattle. I don't know why.
Speaker 2 (41:06):
I wanted the Rams film ever since the fail. Mary,
I can't get over the fail.
Speaker 1 (41:09):
Mary. Oh my goodness, great stuff today. Have a good weekend, Aeron,
thank you. We're out a time, but we'll see you
next week. Don't forget Monday through Friday on the Dan
o'donald Show those quick brief one minute market updates done
by Aaron and the cast of others at Creative Planning.
See you then on WISN Milwaukee News is up next.
Speaker 5 (41:26):
The preceding program is furnished by Creative Planning and SEC
registered investment advisory firm. Creative Planning, along with its affiliate
United Capital Financial Advisors, currently manages or advises on a
combined three hundred and twenty five billion dollars in assets
as of June thirtieth, twenty twenty four. The host works
for Creative Planning, and all opinions expressed by the host
and or their guests are solely their own and do
(41:47):
not necessarily represent the opinion of Creative Planning. The show
is designed to be informational in nature and does not
constitute investment, tax or legal advice. Different types of investments
involve varying degrees of risk, and there could be no
assurance that.
Speaker 1 (42:00):
The future performance of any specific.
Speaker 5 (42:02):
Investment or investment strategy, including those discussed on the show,
will be profitable or equal any historical performance levels. The
information contained herein has been obtained from sources deemed reliable,
but is not guaranteed. If you would like our help,
request to speak to an advisor by going to creative
planning dot com. Creative Planning, tax and legal are separate
entities that must be engaged independently.
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