February 28, 2026 • 40 mins
The Kowal team help plan your retirement
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Speaker 1 (00:00):
Good morning and welcome.
Speaker 2 (00:01):
It's time for the Retirement Clinic on News Talk eleven
thirty WISN with your host Aaron Kowal from Creative Planning.
Speaker 1 (00:09):
Aaron, good morning, great to have you back on the show.
Speaker 3 (00:13):
Good morning. Great to see you, Paul, and I'll always
love getting to hang out with you.
Speaker 2 (00:18):
Do these yes, yeah, before the show can be well,
clue the audience. And we don't have green rooms in
radio like TV, they call them the green room when
you're waiting to go on, like you know, Kimmel or
Fallon or whatever show it is. We have, you know,
just a mic and we're talking about the Olympics. The
the way the Olympics ended with the men's gold, combining
(00:38):
that with the women both beating Canada getting the gold,
it just brings chills. It's it's been almost a week
later and I still get chills because it was forty
six years to the day of miracle on ice. So
that's the kind of stuff we talk about when we're
not on the air.
Speaker 3 (00:53):
Well, the greatest sports movies ever too, by.
Speaker 1 (00:55):
The way, isn't it good? Kurt Russell?
Speaker 3 (00:57):
Right, Yes, yes, yes, so good. So I've seen some
of those guys speak at conferences over the years as well.
Always very inspirational, uh, insightful, just you know, just fantastic
people that won that as well. Uh just I love
the looks on Canada's faces when they got the stuffed
animals with their with their silver medals.
Speaker 2 (01:19):
Oh, I'm glad you mentioned that, what is it with
the stuffed animals this year at the Olympics because the
Skiers were getting them to on social media?
Speaker 1 (01:29):
What what is the deal?
Speaker 2 (01:30):
Now? You present it to a hockey player that just
lost the biggest game of their life. Canada get and
the looks on their faces was like, what do you.
Speaker 3 (01:39):
Use this stuffed animal?
Speaker 1 (01:41):
Your thirty year old to this?
Speaker 3 (01:43):
Here you go, this will be making up for it.
Speaker 2 (01:45):
A little beanie baby, have fun, snuggle up with it
at home, maybe give it your kid. So us wins gold,
women's wins. Oh man, good stuff, Aaron. But we turn
our attention to retirement planning. The Retirement Clinic is all
about that to two thousand and one with the Coo
Wall Investment Group. But some time ago you joined forces,
(02:06):
you've expanded. Would be an understatement, because creative planning is huge,
right Aaron?
Speaker 3 (02:13):
Absolutely? Oh, absolutely huge? Well, small when it comes to
the size of companies in the industry. You know, Peter Pluks,
our CEO, is talking about that all of our people.
You know, we're big in the RAA space, but if
you were to put all of our people uh in
like JP Morgan's headquarters, we take up like two or
(02:35):
three floors.
Speaker 1 (02:36):
Oh wow.
Speaker 3 (02:38):
So you know, we're very, very very small when it
comes to asset management overall, large when it comes to
you know, rias registered investment advisors, but tiny. So you know,
we are nimble, we're able to help people. We're a
local firm, uh you know, and still have Midwest roots.
(03:00):
I mean they're from Kansas, not a New York company.
And yeah, and so it's it's absolutely wonderful. Clients have
loved it. You know. We have so many more services
that we're able to offer now in house taxes, state planning,
business services where everything from payroll to if you want
(03:23):
to take your company public, everywhere in between. And we
actually prepared taxes, actually prepare state planning documents. Run for
one case. They're now one of the largest foreign k
providers in the country top three. So if you need
(03:43):
help with for one case, we can absolutely help with that,
with setting up and running your company for one K plans,
we were very capable of being able to take care
of that, which is not always a very fun thing
for companies to do, and the vast majority get it
wrong too, so which you know I've experienced in and
so you know, give us a look. It doesn't hurt
(04:06):
to call see you know, see what what is available
out there, still free to meet, free to talk. We
go through the plan and you know so, and we're
you know ssconsin all our people are the same, the
phone number is the same, everything's the same. Radio shows which.
Speaker 2 (04:25):
Has been, as I said since two thousand and one,
remained Saturday mornings at ten o'clock Monday through Friday, market
updates daily during the Dan o'donald show, three and five.
Speaker 1 (04:34):
Pm news blocks. You still do those.
Speaker 2 (04:37):
And as long as we're on the topic, you're right,
everything's local. In Brookfield you're in bluem owned Road where
you have been and Riscine, you're in Delafield. You're in
Port Washington, Cape Coral, Florida, Phoenix, Arizona. License in all
fifty stakes and as long as you mentioned creative planning,
you can go right to their site Creative Planning dot com.
We also give out the Retirement Clinic dot com because
(04:59):
of the local phone numbers, the podcasts that are on
that and information about what you guys do. I'm glad
you mentioned how important four oh one K plans are
from an employees perspective to get involved, especially if there's
a match. But from an employer, it's key to have
good benefits because Aaron, it's part of employee retention. You
want to keep good employees, you've got to offer benefits
(05:21):
and a four to one K plan is a big
part of that. That goes without saying the phone number
to call two six two five two two forty forty
two six two five two two forty forty with any
questions about you. Your retirement planner is lack there of one.
You might not have one, and it's never too late.
Speaker 3 (05:39):
We fixed a lot of bad plans too or bad
the financial We fix a lot of bad plans.
Speaker 2 (05:45):
Yeah, and you know, speaking of four one K plans,
this last year is if you're in a four to
one K, it's been a nice year. It's been. It's
looking at like one of those bar graphs. It looks
like a ski slope. It's going up and up, and
of course there's ups and downs, but overall it's been
a really good last.
Speaker 3 (06:02):
Twelve uphill slope right.
Speaker 1 (06:04):
Yes, like those cross country skiers.
Speaker 3 (06:07):
That has the Olympics, and it did under six minute
miles skiing uphill.
Speaker 1 (06:12):
Unbelievable. I look at I've tried cross case. I do
downhill schime. Not the greatest, but I can do it.
Speaker 2 (06:19):
But cross country skiing is very difficult, it's very challenging.
That's amazing. I mean, some of the stuff these Olympic
athletes do are amazing. I'm not going to bring up curling.
We're done talking about curling.
Speaker 1 (06:30):
Hey, your dad, Well they're cheating.
Speaker 3 (06:32):
We get that one.
Speaker 1 (06:33):
I know, I know.
Speaker 2 (06:34):
There's so many storylines out of the Olympics, but they're over.
They're in the rear view mirror. Your father was on
last week hosting the show. He will join us actually
right after the first break, Jeff Kowal, and he's going
to be talking about the best and worst housing markets
for retirees. It'll be right after our first break. You're
going to start the show, Aaron. You've got some a
(06:54):
I stuff that pertains the retirement planning.
Speaker 3 (06:58):
Yeah, talk about things that that have changed and some
things that haven't, like our service and our people and
phone number still two six two five, but our but
our AI is changing everything, and so I want to
Actually this is from an article. Read some of this
from from Creative Planning. So if you want this reach
(07:21):
out to us, you can get you this article. Just
tell me which one you want. The artificial intelligence one
published well just in January, so about a month ago,
so it's it's fresh off the press, but it's it's
called Artificial intelligence and financial Planning. What AI can and
cannot do. So here's just some key takeaways and we'll
(07:43):
get into the details as well. So AI can enhance
financial planning by organizing complex data, modeling scenarios and improving
operational efficiency, free advisors to focus on higher value client conversations.
AI has clear limits around context, judge, accountability, and interdisciplinary coordination,
especially with family dynamics, special needs planning, or intergenerational wealth
(08:07):
are involved. Human advisors remain essential, using expertise and comprehensive
planning to frame the right questions, integrate tax, state and
investment decisions, and take responsibility for real life outcomes. See
AI can just recommend anything and say do anything, but
there's no repercussions that they're wrong. I've also found, you know,
(08:28):
a lot that they it's called hallucinating where they're wrong
a lot. And then who you blame?
Speaker 1 (08:35):
It's the computers.
Speaker 3 (08:36):
Yeah, you know, it says right there, not a financial advisor,
go get you know, seek financial help if you need this.
But even that, it's it's you're not asking a person
that you can have repercussions. So let's get into this.
It's artificial intelligence. You know. AI has moved quickly from
novelty to everyday tool. From search engines to writing assistance
(08:58):
to investment research, AI is now part of how information
is gathered and decisions are supported across many industries, including
financial services. This article that discusses artificial intelligence at a general,
industry wide level. It's a tench to explore the strengths
and limitations of AI and financial planning broadly, not to
describe or characterize how any specific firm, including creative planning,
(09:22):
uses artificial intelligences internal processes, or client work. It's become
more embedded daily life. A natural question follows, what role
does AI play in financial planning? Where are its limits?
So asking the right question really matters. I don't know
if you've seen Paul that that some people, you know,
the coding is writing computer code is going to be
(09:47):
essentially going away because AI can write the code itself,
and it's actually starting to write next versions, or it's
going to be starting to write next versions of itself.
So it's you know, coding, but that there are big
opportunities for people who are really good at asking the
right questions. What are called prompts in AI, that you
can ask different prompts and get wildly different answers based
(10:09):
upon how you structure the problem. So with that back
into this asking the right question matters. Albert Einstein emphasized
the importance of defining the right question, famously stating quote,
if I had an hour to solve a problem and
my life depended on it, I would spend the first
fifty five minutes defining the proper question to ask. For
(10:30):
once I know the proper question, I could solve the
problem in less than five minutes end quote. This idea
applies directly to financial planning. AI is very good at
answering questions once they're clearly defined. Many of the most
impactful planning outcomes however, depend on asking better questions, often
before clients realize those questions exist. That's where experienced planners
(10:50):
add value. So what AI could do well strings AI
excels at processing large amounts of information quickly and consistently
in financial planning. Disability creates meaningful advantages in the following areas.
So organizing and analyzing data. So AI tools can aggregate
financial information across accounts, identify patterns or inconsistencies, run calculations
(11:16):
and projections efficiently, and compare scenarios under different assumptions, improving
speed and accuracy and tasks that are repetitive, data heavy
or rules based. Scenario modeling and projections AI driven systems
can model retirement income projections, tax outcomes under different assumptions,
and portfolio behavior under historical or hypothetical market environments. Predictive
(11:40):
analytics and forecasting are meaningful strengths when evaluating ranges of
possible outcomes. When used properly, these models can help advisors
and clients explore trade offs rather than predict precise results.
They can improve operational efficiency behind the scenes. Generative AI
and other AI applications are increasingly used to reduce the
(12:01):
administrative workload, improved document organization, support, research and monitoring, and
enhance consistency and plan updates. These efficiencies a lot financial
advisors spend more time where it matters most, applying judgment,
interpreting insights, and having thoughtful conversations with clients about their
financial goals. So I step in. I mean it's it's huge,
(12:22):
you know, for for advisors to be able to have
great conversations with their clients. Uh, you know, as opposed
to doing paperwork. And you know, so that's why it's
it's really helpful. And and like our client service that
helps them with you can help with them with paperwork,
uh you know, as well have relationships with with with
the clients.
Speaker 1 (12:41):
In this whole a.
Speaker 2 (12:41):
I think a lot of people have mixed views just
overall on the how AI is used in our lives.
And I kind of related to when the Internet came
you know, I sound like an old kind now, right
when the Internet came around dial up speed, I remember,
I mean I was around. We had no access to
the Internet before dial up, but it took forever. It
(13:02):
was slow then broadband and it's the same thing. Internet,
the great equalizer. So many good things can be done
on the internet, so much entertainment and so many bad
things can also happen.
Speaker 1 (13:14):
AI kind of is the same thing. I can. There's
so many.
Speaker 2 (13:18):
Areas of our life where it can probably be used
in a productive way, and then again it can it
can destroy lives. I mean, you're hearing stories of suicide
with teens and you know, used inappropriately. It's a computer, folks,
it's artificial intelligence.
Speaker 3 (13:35):
Yeah, people want to side meanings too to the interactions
that they have. Is an impersonal computer. And some companies
I think are doing it better, you know than others,
with having guardrails and having you know that put AI
safety you know, higher than others. So I'm not gonna
(13:57):
get it to get it which wants here, But yeah,
for obvious reasons. But I do think that there's there
that you need to be mindful of this and just no,
it's not you know, it's not a person. You know,
it will say what you want, wants you to hear
or give you the information generally that you that you want,
(14:21):
whether it's good for you or not. Just I mean
we talk about judgment. It doesn't have judgment or uh,
you have to trust the judgment of someone that you've
never met that programmed this AI and the trade.
Speaker 1 (14:35):
That's that's right.
Speaker 2 (14:37):
It's not like sitting across the table from your financial
advisor and every plan you do at Creative Planning is
custom right. It's no two clients are the same. What
I need for my retirement might be different than the
guy next door. It just goes without saying, I think,
And you know, AI is kind of funny. After the Olympics,
there's some good stuff that can do.
Speaker 3 (14:56):
Right.
Speaker 2 (14:56):
It put Trump's head on the US skater that who
scored the goal again, the winning goal.
Speaker 3 (15:02):
You just told me, I forget his name. Hughes. Yeah, yeah,
the Hughes brothers.
Speaker 2 (15:07):
The guy without no teeth. You know, you gotta knocked
out earlier with the He kind of wipes the blood
off a hockey picture that was perfect. Those photos will
live in.
Speaker 3 (15:19):
So you know.
Speaker 2 (15:20):
It put Trump's head on and him skating down the ice,
and it's a funny video.
Speaker 1 (15:24):
It's meant for entertainment.
Speaker 2 (15:26):
We couldn't do that like you could photoshop, but AI
can make this stuff look so real that you almost
wow that it looks like Trump skating. It's not it's fake.
It's artificial intelligence. But with your retirement plan. Aaron, you
got to rely on that human touch and would you agree?
Speaker 3 (15:42):
Oh? Absolutely, you absolutely have to rely on the human touch,
human interaction. It's not you know, it doesn't have and
well we'll get into that because that's what we're gonna
be talking about. Doesn't understand contexts and other things, so
so what doesn't do well? Some of its limitations are
despite its capabilities. Aiancial planning has meaningful limitations, especially in
(16:02):
a discipline as personal and consequentials helping people navigate complex
financial decisions. AI does not always understand context. It can
it evaluates the inputs given. It doesn't inherently understand family dynamics,
emotional trade offs, real world or risk tolerance, or how
priorities evolve over time. Two people with identical balance sheets
(16:24):
may need very different financial advice, and AI cannot recognize
why unless that context is fully articulated. This is why
personalized guides for experienced planners remains essential. AI simulates reasoning,
but doesn't exercise judgment. Financial planning is rarely about it
identifying a single optimal answer. More often, it involves balancing
(16:46):
and competing priorities, such as risk versus peace of mind.
Taxes versus flexibility, growth versus stability, and present enjoyment versus
future security. AI can present options, but it does not
reliably ask find questions needed when key variables are subjective
or unstated. Risk management and strategic planning require human judgment
(17:07):
that AI alone cannot provide. AI. Like I mentioned before,
AI does not bear responsibility when financial advice is acted
on the consequences are real. AI doesn't sit across the table,
ask follow up questions, or prompt periodic reassessment. Is life
circumstances change, and it does not share accountability for outcomes.
(17:27):
Most importantly, it doesn't consistently highlight how decisions made today
may limit or eliminate future options. That responsibility falls to
financial advisors, who understand both the technical aspects of planning
and the human dimensions, and it cannot coordinate across disciplines.
So effective financial planning often requires coordination among tax professionals,
(17:49):
the state, planning attorneys, family members, and business partners. AI
tools don't manage those relationships or ensure recommendations are aligned
across disciplines. That responsibility remains human and essential, particularly when
planning involves complex wealth management considerations. So here's some practical
examples for where the difference matters. Example, want a survivor
(18:13):
and a narrow planning window. So consider a widow who
inherits her spouse's assets and continues working for a limited period.
She may qualify for more favorable tax treatment before eventually
filing as a single taxpayer. Where tax brackets compressed significantly,
AI may reasonably suggest caution based on general best practices,
avoid major decisions, allow time to grieve and revisit planning later.
(18:37):
That kid is thoughtful and often appropriate. What AI forecasting
may not emphasize is that certain planning opportunities, such as
such as strategic roth conversions or capital gain realizations, may
only be available during this temporary window. Good planning doesn't
mean rushing the action. It means understanding which opportunities are
time sensitive, even if the ultimate decision is to wait.
(18:58):
Experienced planners recognize these new nuances. So takeaway is that
the risk is enacting too students not recognizing when waiting
quietly closes the door. Here's another example intergenerational planning. When
the family is the client. Consider parents who are financially secure.
I expect to leave a meaningful inheritance alongside adult children
(19:20):
who are high earners facing high tax rates. Home purchase
decisions and long term savings questions. Viewed separately, both households
may appear well planned. Viewed together, Additional insights emerge. Parents
may help finance a home purchase rather than relying on
a bank keeping interest within the family. Wealth may shift
(19:42):
intentionally across generations to reduce overall taxes. Children may avoid
over commuting to inflexible savings vehicles rather expected future assets.
Assets may be positioned so that future transfers aligned with
the children's tax situations. AI can optimize an individual plans.
It rarely reframes a question to view the family is
(20:03):
a single long term balance sheet across generations. This type
of strategic planning requires the judgment of seasoned financial planners
who understand both technical aspects and family dynamics. Take away
from that as some of the most impactful planning opportunities
exist between people rather than within a single account or household.
Last example is when a good plan falls sort for
(20:24):
a child who needs long term support. Consider a family
with a minor child who will require long term or
lifelong support due to special needs. On paper, the plan
appears sound. Retirement accounts are funded, savings goals are established,
Insurance coverage seems adequate. AI may confirm the numbers work.
What AI may not fully assesses whether state planning, insurance,
(20:47):
and investment strategies are coordinated to support that child over
decades without alignment, assets may pass outright to a minor
or special needs beneficiary, Eligibility for valuable government needs based
benefits may not be maintained, and insurance proceeds may lack
appropriate trust structure. Investments may not be positioned to provide
(21:09):
consistent long term support. The result isn't the bad plan,
it's an incomplete one that fails to serve its ultimate purpose.
Experience advisors understand how to coordinate these elements in ways
that AI tools along can't takeaway. Is A plan that
works mathematically can still fall short functionally if the people
it's meant to protect aren't fully considered. Final thought, good
(21:33):
financial decisions are rarely about having more information. They're about
understanding which information matters, how different choices affect real lives,
and how priorities change over time. AI can help organize
financial data and provideolytical insight, but it can't understand people.
That's where a comprehensive planning relationship matters. It created. Planning
(21:54):
focuses on getting no individuals and families at a human
level and applying experience, judgement, and an interdisciplinary approach in
a way that's personal and relevant to their lives. While
AI and business and pitch services will continue to evolve,
the need for trusted advisors who provide personalized financial advice
if the responsibility for outcomes remains unchanged.
Speaker 1 (22:16):
The keyword trust, I trust a person a human. We
are all humans.
Speaker 2 (22:22):
With social I think needs to talk to somebody real,
not a computer. There's a time for AI and a
place for it, But with regard to your retirement plan,
I think I would prefer an advisor. You've got many,
many good certified financial planners right here in town. We're
talking with Aaron Kowalt, the Retirement Clinic on WISN of course,
(22:43):
formerly the co Wal Investment Group, now creating planning, and
the same numbers applies that we always give out for questions. Aaron,
it's two six two five two two forty the Retirement
Clinic dot com for more information. After the break, Jeff
is going to talk about retirees, but it's it's going
(23:04):
to be interesting. It's a little real estate discussion, the
best and worst housing markets for retirees. And before you
think everybody moves to the villages in Florida, I think
Jeff's got some news from you. You know, I think
the qualifications are fifty five or older because I've been
getting stuff spam.
Speaker 1 (23:23):
I would call it about the villages.
Speaker 2 (23:25):
I've got several people I know friends that have moved
and they love it. The music that's played like in
a gazebo the villages is huge, right, everybody knows how
many golf courses are.
Speaker 1 (23:35):
It's unbelievable. So it was a Led Zeppelin cover band.
It goes the show. Today's today's eighty.
Speaker 2 (23:42):
Year old is not when you and I were growing up,
when you thought of an eighty year old, you thought
of a rocking chair and a porch.
Speaker 3 (23:48):
They got Zeppel. That sounds pretty good.
Speaker 2 (23:51):
Yeahickle, pickleball, tennis, maybe a martini.
Speaker 1 (23:56):
Yeah, four o'clock or whatever it is. And enjoy your life.
Speaker 2 (23:59):
But where is the best and the worst housing for retirees?
That's coming up next as we continue with Aaron Kowalt,
Jeff joining us, and then later in the hour, Aaron,
you get some other topics as well.
Speaker 1 (24:10):
Give us a little a tease.
Speaker 3 (24:13):
Oh sure, I've got some good stuff for you. We
talked about retirement plans for small businesses, and we're going
to be talking about romance scams, so well we're in.
Then ask the location optimization romance scams.
Speaker 1 (24:31):
That's a good one.
Speaker 2 (24:32):
Yes, okay, that's that's all ahead of us here on
WIS and the Retirement Clinic is every Saturday ten o'clock.
I'm Paul crown Forest with Aaron Kowal, and we'll be
right back on I.
Speaker 3 (24:43):
Hi.
Speaker 4 (24:43):
I'm Jon t.
Speaker 5 (24:45):
Wisen Shall, a great advisor in our office, recently talked
on this show about the best places to retire if
you consider health care costs and availability of care. This week,
I wanted to address the best and word housing markets
for retirees in twenty twenty six.
Speaker 4 (25:05):
This is a Fox Business article.
Speaker 5 (25:06):
I thought it was pretty interesting, thought you'd find it
pretty interesting as well. It starts out by saying an
estimated six and a half million Americans will retire in
twenty twenty six.
Speaker 4 (25:18):
Are you one of them?
Speaker 5 (25:19):
If so, you've likely already begun to consider where you
might settle down and spend your golden years, you might
even consider buying a home just for retirement, and the
article goes on to say, before you make that leap,
there are some things for you to consider.
Speaker 4 (25:34):
It's good to know.
Speaker 5 (25:35):
Which housing markets are expected to be strong in twenty
twenty six and which are expected to be unaffordable, and
to determine the twenty best and twenty worst housing markets
for retirees in twenty twenty six. Gold Banking Rates sounded
source of various markets from Zillow research data and cross
(25:57):
reference to that information with household values and retirement income
levels from the US Census.
Speaker 4 (26:04):
So I thought there was a good.
Speaker 5 (26:05):
Cross section, and from that matrix, go Banking Rates is
able to locate the twenty best housing markets for retirees
and actually the twenty worst. The twenty you should avoid
as well. Some I think will be surprising, some not
so much. Let's get started with that. Key finding is
the best market The Midwest fills the top twenty cities.
Fifteen out of the top twenty are from the Midwest.
(26:28):
Cities in Illinois, Indiana, Michigan, Ohio, and Wisconsin are home
to fifteen of the twenty best housing markets for retirees
in twenty twenty six. Again, I'm not going to go
through all of them. I'll go through a few of them.
Ohio dominates the market. Ohio cities appear more than any
other state cities in the top twenty with five entries.
(26:49):
Michigan comes in second with four cities. Retired This one
was kind of interesting. Retirees are gathering in Sandusky, Ohio.
Approximately thirty two point nine percent of households in Sandusky
received retirement income, more than any other city in the
top twenty. That makes Sandusky, Sandusky, Ohio a boomtown for
(27:10):
retired homeowners. It wasn't number one, though. The number one
was Saginaw, Michigan. One year forecasts of percent change in
home values four point nine percent percent of homes with
retirement income about thirty two percent. Percent of income required
for a new home twenty two percent. This number I
thought was kind of interesting. Income required to afford the
(27:31):
new home forty eight forty eight dollars, So it looks
like it's pretty affordable in Saginaw, Michigan. Now again, you
have to put up with the weather there, but that's okay. Cocomo,
Indiana one your forecast war of change in home value
of four point two percent thirty two percent again of
homes with retirement income. Income required to really afford a home.
(27:54):
In a new home there is about fifty forty nine
eight eighty three. Let's let's switch a little bit now
to the worst markets. Keep in mind when we give
the best of the worst markets for housing, a lot
of our retirees know that's not just the house, it's
(28:15):
the neighbors, it's the families. You know, are you closer
to your families? A lot of our clients move to
warm clients. A number of not a lot. A number
of them moved to warm climates thinking that their kids
and grandkids would follow them, and they spend a lot
of time. What they didn't realize is that their kids
and grandkids have lives of their own.
Speaker 4 (28:34):
And it becomes busy.
Speaker 5 (28:36):
So even though you have the best intentions of having
your kids and grandkids come visit, you, reality may sit
it and then that may not really happen.
Speaker 4 (28:45):
Okay, let's look at some of the key findings for.
Speaker 5 (28:47):
The worst markets. California has the worst housing market. Not surprising,
California has a housing market that is that that is
the least friendly to retirees, especially San Jose, California that
ends up as number one. The Golden State dominates the
bottom twenty. Not only does California have the worst housing
market for retirees in twenty twenty six, but cities make
(29:11):
up the majority of the bottom twenty, with eleven cities
total in the bottom twenty. Again, Fresno one year percent
change is only expected to go up by point eight
percent percent of homes with retirement income eighteen point nine
percent percent of your income required for new home is
sixty two percent. Income required to afford a new home
(29:35):
three hundred and sixty eight thousand dollars of income is
what's near to afford a new home in Fresno, California,
as both to forty eight thousand in Ohio. Number two
with San Francisco again one year forecast for changing whole
value minus one.
Speaker 4 (29:50):
Point six percent.
Speaker 5 (29:52):
Income required to afford a new home in San Francisco
two hundred and sixty.
Speaker 4 (29:56):
Eight four hundred and twenty eight dollars man and.
Speaker 5 (30:00):
Then number three is Santa Cruz, California, again the worst
markets uh income required to afford a new home, there's
two hundred and sixty six thousand dollars, so again it
looks like Los Angeles is number four. California. It seems
to dominate the worst places for retirements. For affording a
new home, it looks like the Midwest.
Speaker 4 (30:21):
Is the best place.
Speaker 5 (30:22):
Again, the costs of a new home is not the
only thing that's to be considered. There are a lot
of things that go into it. Planning for a new
home in retirement is most important. To make sure you
work with a producierry advisor like we have at Creative Planning.
Speaker 4 (30:35):
Giver office a call two six two five two six
two five two two.
Speaker 5 (30:40):
Four zero four zero, or go online to the Retirement
Clinic dot com schedule aployment and plan for that new
home in retirement.
Speaker 4 (30:49):
Back to you guys, it's WYS.
Speaker 2 (30:52):
It's Retirement Clinic. Welcome back to the program. Aaron Kowal
hosting the show from Creative Planning. The show since two
thousand and one, Monday through Friday during the Dan o'
donald Show, with those market updates twice a day during
the afternoon drive on w i s N, Wisconsin's most
listened to radio station. I had to toss that in there,
(31:12):
and you told us you had a great topic, but
I said, I'm curious what we heard from your dad
talking about housing and the best and worst places to retire.
Speaker 1 (31:21):
Now we segue to romance scams.
Speaker 3 (31:27):
Well, sometimes I feel like I scam my wife and
the ann to marry me. But you know that's a different,
different type of scam.
Speaker 1 (31:34):
We'll say different next week.
Speaker 3 (31:37):
Yeah no, but you know that brings too much levity
to this. But it is, you know, it is a
serious topic, the romance scams. People think, yeah, that will
never happen to me. Don't be so sure. It happens.
It's it is a big you know, a that's a
big industry. Federal Trade Commissioner sort. I have another article
(31:58):
here from Creative but I mean part of it is.
The Federal Trade Commission reported losses due to romance scams
in the United States totaled more than one point one
six billion, with a b billion dollars in twenty twenty
five alone, not a history of the internet. In twenty
twenty five alone, over a billion dollars was stolen from
(32:19):
people on these romance scams. So it's an increasing common
approach to financial fraud, you know. So it's a growing
form of financial fraud. And I've seen this. I've seen
people I've helped prevent some of this with people, you know,
with questions. So it's a fraud where scammers pretend, you know,
(32:39):
to pursue a relationship to gain a victims trust. These
confidence scams or use emotional manipulation to convince the scam
victim to send money and share personal or financial information.
And you can reduce your risk by recognizing red flags,
protecting your information, and talking openly with trusted friends or
family members.
Speaker 2 (32:57):
Aaron, are we talking an era when about online scams only?
Speaker 3 (33:01):
Yes?
Speaker 1 (33:02):
Okay, online, okay, because.
Speaker 3 (33:04):
You know you could also move well, it could be
you know, in person, but yes, that's why primarily yes
that I mean, that's been around forever. But this is
more more online focus and AI too, Okay. So in
an ear where more couples are finding love online, fraudsters
have become incredibly adept at scamming unsuspecting victims for large
sums of money. Romance scams, sometimes called online romance scams
(33:27):
or relationship scams, have emerged as a common and emotionally
devastating form of fraud where scammer gains the trust of
someone seeking relationship and uses that trust steal money or
personal information. Like you said. According to the Federal Trade Commission,
reported losses due to romance scams the United States total
more than one point one six billion dollars that we
know of alone in twenty twenty five alone, well with
(33:51):
many victims losing their entire savings. Most romance scammers accomplish
their theft by using fake profiles and false identities to
build an online relationship with a potential victim. They often
connect on a dating app, dating site, or social media platform,
using the illusion of a romantic relationship to convince the
victim to send money or share personal information that can
(34:11):
be used to steal their identity. Romance scams work because
they exploit emotions first and finance's second. Scammers often willing
to spend months building trust, often using stolen photos or
AI generated images to establish credible identities, and carefully studying
a potential victims social media to tailor their story. However,
(34:33):
the dangers of romance scams aren't just financial, they're emotional
as well. Victims of this type of fraud often experience
deep depression, anxiety, and post traumatic stress disorder PTSD. Keep
me in a manipulation strategy used by many romance scammers
is to quote love bomb they're victims by showering them
with excessive affection and attention to establish a rapid emotional bond.
(34:56):
They may also encourage secrecy or isolation from friends and
loved ones, which can make their eventual betrayal even more
emotionally devastating. Some red flags, so many romance scammers follow
similar playbook and become familiar with common red flags that
can help you avoid falling victim. There's always an excuse
for never meeting in person. Fraudsters typically have an excuse
(35:19):
for why they can't video call or meet in person.
Common stories include traveling outside the United States, military deployment,
a job at an oil rig, or working with an
international organization. They may suggest that technical issues security rules
are strict employers prevent them from using video calls, which
is often designed of dealing with a fake profile. Professors
(35:40):
love to quickly. Scammers often quote fall in love quickly
and love bomb their victims and attempt to gain their
trust within days or weeks. They may call you their soulmate,
talk about marriage or future plans, and encourage you to
move communication off the dating platform onto a private messaging
or social media appast moving intensity can be a major
(36:02):
red flag. Ask for money for emergency expenses once they've
established trust. Romance scammers often ask for money to cover
urgent or emotional expenses, such as medical bills for themselves
are sick relative, a plane ticket or visa fees to
come visit you, legal costs, customs fees or taxes requiring
an excess required to access, and inheritance. They typically request
(36:25):
payment through methods that are hard to reverse or trade,
such as gift cards, wire transfer transfers, or crypto assets.
Any requests for you to send money should be to
someone to someone you've never met in person, especially through
these channels, should be treated as a serious warning sign.
They encourage you investment. Can't miss opportunity. So how to
protect yourself? There are several steps you can take to
(36:49):
protect yourself or broader over you of scans or prevention tips.
You can review creative plannings insights on protecting yourself from
financial fraud. You can do verse image search, so use
a reverse image search on the person's profile picture and
any other images to see whether the photos appear anywhere
else online. Never send money, Yes, yeah, you can do that.
Speaker 2 (37:11):
Yeah, Never send money that doesn't seem obvious to you,
but people do.
Speaker 1 (37:16):
I mean, you hear about these scammers.
Speaker 3 (37:17):
And I love you so much. I love you so much.
Send me gift.
Speaker 2 (37:20):
Cards, Send me gift cards. And it's with AI and
the digital currency world that we're with, crypto everything that
we're living in these times, it seems like the potential
is even more so than it would have been years ago.
But you can be scammed. It does happen every day, Aaron.
It's unfortunate, but you're right, it happens, right.
Speaker 3 (37:39):
Yeah, I've only got a few seconds left. I'm gonna
read the highlights and then if you want this, I
can send you the article. It's it's the romance scam
article from Creative Planning, So just reference that, Aaron dot
Coal at Creative Planning dot com. Protect your personal financial information,
talk to your friends and family. Be very very sis
(38:00):
vicious of anyone who refuses to meet you in person.
So those are, you know, so very high level. Talk
with the trusted advisor. You'd be helpful too. So you know,
part of our job is to help you. Well, I
think you tell you if we think that something is off,
and you know, we've had to do that before, so
you know, let it, let it. You know, we will
(38:20):
be happy to help with any of these scenarios.
Speaker 2 (38:22):
If you want this information, reach out directly at created
Planning two six two five two two. You can ask
for Aaron coo Wal. He'll give out his email and
all that other pertinent good stuff when we come back.
Speaker 1 (38:34):
As well.
Speaker 2 (38:35):
The Retirement Clinic dot com has more information as well
as podcasts of this show. We'll be right back on
WYSN the Retirement Clinic. Almost done with today's show. Now
we're back next Saturday at ten o'clock Monday through Friday.
Market reports during the Dan o'donalds show three and five
pm every day from Aaron Kowal and everybody else at
(38:56):
Creative Planning. Did a great job today, a lot of
educational material. How do we contact you off the air?
Speaker 3 (39:03):
Yeah, you can reach us at Creative Planning dot com,
the Retirement Clinic dot com as well for the radio
show two six two five two two four zero four zero.
If you want me send you those articles that I have.
My email is Aaron a A r o N. Aaron
dot Cowal k o w a L at Creative Planning
(39:25):
dot com. Aaron dot cowal At, Creative Planning dot.
Speaker 2 (39:27):
Com and Creative Planning in Brookfield, right in Blue mountin
Road of course, in Racine, in Delafield, in Port Washington, Wisconsin,
and down in Florida and Cape Coral, Florida, Phoenix, Arizona.
Licensed in all fifty states, Creative Planning dot Com orre
as Aaron said, the Retirement Clinic dot com and one
more time, any questions at all, just to have a
(39:48):
conversation locally called two six.
Speaker 1 (39:51):
Two five two two forty forty with Aaronkowall.
Speaker 2 (39:54):
Thanks for listening. I'm Paul cron Force WYSN Milwaukee. Stay tuned.
Speaker 1 (39:58):
News is coming up next.
Speaker 6 (40:00):
The preceding program is furnished by Creative Planning, an 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
(40:21):
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 can be no
assurance that the future performance of any specific investment or
investment strategy, including those discussed on the show, will be
profitable or equal any historical performance levels. The information contained
(40:44):
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 independent
Good morning and welcome.
Speaker 2 (00:01):
It's time for the Retirement Clinic on News Talk eleven
thirty WISN with your host Aaron Kowal from Creative Planning.
Speaker 1 (00:09):
Aaron, good morning, great to have you back on the show.
Speaker 3 (00:13):
Good morning. Great to see you, Paul, and I'll always
love getting to hang out with you.
Speaker 2 (00:18):
Do these yes, yeah, before the show can be well,
clue the audience. And we don't have green rooms in
radio like TV, they call them the green room when
you're waiting to go on, like you know, Kimmel or
Fallon or whatever show it is. We have, you know,
just a mic and we're talking about the Olympics. The
the way the Olympics ended with the men's gold, combining
(00:38):
that with the women both beating Canada getting the gold,
it just brings chills. It's it's been almost a week
later and I still get chills because it was forty
six years to the day of miracle on ice. So
that's the kind of stuff we talk about when we're
not on the air.
Speaker 3 (00:53):
Well, the greatest sports movies ever too, by.
Speaker 1 (00:55):
The way, isn't it good? Kurt Russell?
Speaker 3 (00:57):
Right, Yes, yes, yes, so good. So I've seen some
of those guys speak at conferences over the years as well.
Always very inspirational, uh, insightful, just you know, just fantastic
people that won that as well. Uh just I love
the looks on Canada's faces when they got the stuffed
animals with their with their silver medals.
Speaker 2 (01:19):
Oh, I'm glad you mentioned that, what is it with
the stuffed animals this year at the Olympics because the
Skiers were getting them to on social media?
Speaker 1 (01:29):
What what is the deal?
Speaker 2 (01:30):
Now? You present it to a hockey player that just
lost the biggest game of their life. Canada get and
the looks on their faces was like, what do you.
Speaker 3 (01:39):
Use this stuffed animal?
Speaker 1 (01:41):
Your thirty year old to this?
Speaker 3 (01:43):
Here you go, this will be making up for it.
Speaker 2 (01:45):
A little beanie baby, have fun, snuggle up with it
at home, maybe give it your kid. So us wins gold,
women's wins. Oh man, good stuff, Aaron. But we turn
our attention to retirement planning. The Retirement Clinic is all
about that to two thousand and one with the Coo
Wall Investment Group. But some time ago you joined forces,
(02:06):
you've expanded. Would be an understatement, because creative planning is huge,
right Aaron?
Speaker 3 (02:13):
Absolutely? Oh, absolutely huge? Well, small when it comes to
the size of companies in the industry. You know, Peter Pluks,
our CEO, is talking about that all of our people.
You know, we're big in the RAA space, but if
you were to put all of our people uh in
like JP Morgan's headquarters, we take up like two or
(02:35):
three floors.
Speaker 1 (02:36):
Oh wow.
Speaker 3 (02:38):
So you know, we're very, very very small when it
comes to asset management overall, large when it comes to
you know, rias registered investment advisors, but tiny. So you know,
we are nimble, we're able to help people. We're a
local firm, uh you know, and still have Midwest roots.
(03:00):
I mean they're from Kansas, not a New York company.
And yeah, and so it's it's absolutely wonderful. Clients have
loved it. You know. We have so many more services
that we're able to offer now in house taxes, state planning,
business services where everything from payroll to if you want
(03:23):
to take your company public, everywhere in between. And we
actually prepared taxes, actually prepare state planning documents. Run for
one case. They're now one of the largest foreign k
providers in the country top three. So if you need
(03:43):
help with for one case, we can absolutely help with that,
with setting up and running your company for one K plans,
we were very capable of being able to take care
of that, which is not always a very fun thing
for companies to do, and the vast majority get it
wrong too, so which you know I've experienced in and
so you know, give us a look. It doesn't hurt
(04:06):
to call see you know, see what what is available
out there, still free to meet, free to talk. We
go through the plan and you know so, and we're
you know ssconsin all our people are the same, the
phone number is the same, everything's the same. Radio shows which.
Speaker 2 (04:25):
Has been, as I said since two thousand and one,
remained Saturday mornings at ten o'clock Monday through Friday, market
updates daily during the Dan o'donald show, three and five.
Speaker 1 (04:34):
Pm news blocks. You still do those.
Speaker 2 (04:37):
And as long as we're on the topic, you're right,
everything's local. In Brookfield you're in bluem owned Road where
you have been and Riscine, you're in Delafield. You're in
Port Washington, Cape Coral, Florida, Phoenix, Arizona. License in all
fifty stakes and as long as you mentioned creative planning,
you can go right to their site Creative Planning dot com.
We also give out the Retirement Clinic dot com because
(04:59):
of the local phone numbers, the podcasts that are on
that and information about what you guys do. I'm glad
you mentioned how important four oh one K plans are
from an employees perspective to get involved, especially if there's
a match. But from an employer, it's key to have
good benefits because Aaron, it's part of employee retention. You
want to keep good employees, you've got to offer benefits
(05:21):
and a four to one K plan is a big
part of that. That goes without saying the phone number
to call two six two five two two forty forty
two six two five two two forty forty with any
questions about you. Your retirement planner is lack there of one.
You might not have one, and it's never too late.
Speaker 3 (05:39):
We fixed a lot of bad plans too or bad
the financial We fix a lot of bad plans.
Speaker 2 (05:45):
Yeah, and you know, speaking of four one K plans,
this last year is if you're in a four to
one K, it's been a nice year. It's been. It's
looking at like one of those bar graphs. It looks
like a ski slope. It's going up and up, and
of course there's ups and downs, but overall it's been
a really good last.
Speaker 3 (06:02):
Twelve uphill slope right.
Speaker 1 (06:04):
Yes, like those cross country skiers.
Speaker 3 (06:07):
That has the Olympics, and it did under six minute
miles skiing uphill.
Speaker 1 (06:12):
Unbelievable. I look at I've tried cross case. I do
downhill schime. Not the greatest, but I can do it.
Speaker 2 (06:19):
But cross country skiing is very difficult, it's very challenging.
That's amazing. I mean, some of the stuff these Olympic
athletes do are amazing. I'm not going to bring up curling.
We're done talking about curling.
Speaker 1 (06:30):
Hey, your dad, Well they're cheating.
Speaker 3 (06:32):
We get that one.
Speaker 1 (06:33):
I know, I know.
Speaker 2 (06:34):
There's so many storylines out of the Olympics, but they're over.
They're in the rear view mirror. Your father was on
last week hosting the show. He will join us actually
right after the first break, Jeff Kowal, and he's going
to be talking about the best and worst housing markets
for retirees. It'll be right after our first break. You're
going to start the show, Aaron. You've got some a
(06:54):
I stuff that pertains the retirement planning.
Speaker 3 (06:58):
Yeah, talk about things that that have changed and some
things that haven't, like our service and our people and
phone number still two six two five, but our but
our AI is changing everything, and so I want to
Actually this is from an article. Read some of this
from from Creative Planning. So if you want this reach
(07:21):
out to us, you can get you this article. Just
tell me which one you want. The artificial intelligence one
published well just in January, so about a month ago,
so it's it's fresh off the press, but it's it's
called Artificial intelligence and financial Planning. What AI can and
cannot do. So here's just some key takeaways and we'll
(07:43):
get into the details as well. So AI can enhance
financial planning by organizing complex data, modeling scenarios and improving
operational efficiency, free advisors to focus on higher value client conversations.
AI has clear limits around context, judge, accountability, and interdisciplinary coordination,
especially with family dynamics, special needs planning, or intergenerational wealth
(08:07):
are involved. Human advisors remain essential, using expertise and comprehensive
planning to frame the right questions, integrate tax, state and
investment decisions, and take responsibility for real life outcomes. See
AI can just recommend anything and say do anything, but
there's no repercussions that they're wrong. I've also found, you know,
(08:28):
a lot that they it's called hallucinating where they're wrong
a lot. And then who you blame?
Speaker 1 (08:35):
It's the computers.
Speaker 3 (08:36):
Yeah, you know, it says right there, not a financial advisor,
go get you know, seek financial help if you need this.
But even that, it's it's you're not asking a person
that you can have repercussions. So let's get into this.
It's artificial intelligence. You know. AI has moved quickly from
novelty to everyday tool. From search engines to writing assistance
(08:58):
to investment research, AI is now part of how information
is gathered and decisions are supported across many industries, including
financial services. This article that discusses artificial intelligence at a general,
industry wide level. It's a tench to explore the strengths
and limitations of AI and financial planning broadly, not to
describe or characterize how any specific firm, including creative planning,
(09:22):
uses artificial intelligences internal processes, or client work. It's become
more embedded daily life. A natural question follows, what role
does AI play in financial planning? Where are its limits?
So asking the right question really matters. I don't know
if you've seen Paul that that some people, you know,
the coding is writing computer code is going to be
(09:47):
essentially going away because AI can write the code itself,
and it's actually starting to write next versions, or it's
going to be starting to write next versions of itself.
So it's you know, coding, but that there are big
opportunities for people who are really good at asking the
right questions. What are called prompts in AI, that you
can ask different prompts and get wildly different answers based
(10:09):
upon how you structure the problem. So with that back
into this asking the right question matters. Albert Einstein emphasized
the importance of defining the right question, famously stating quote,
if I had an hour to solve a problem and
my life depended on it, I would spend the first
fifty five minutes defining the proper question to ask. For
(10:30):
once I know the proper question, I could solve the
problem in less than five minutes end quote. This idea
applies directly to financial planning. AI is very good at
answering questions once they're clearly defined. Many of the most
impactful planning outcomes however, depend on asking better questions, often
before clients realize those questions exist. That's where experienced planners
(10:50):
add value. So what AI could do well strings AI
excels at processing large amounts of information quickly and consistently
in financial planning. Disability creates meaningful advantages in the following areas.
So organizing and analyzing data. So AI tools can aggregate
financial information across accounts, identify patterns or inconsistencies, run calculations
(11:16):
and projections efficiently, and compare scenarios under different assumptions, improving
speed and accuracy and tasks that are repetitive, data heavy
or rules based. Scenario modeling and projections AI driven systems
can model retirement income projections, tax outcomes under different assumptions,
and portfolio behavior under historical or hypothetical market environments. Predictive
(11:40):
analytics and forecasting are meaningful strengths when evaluating ranges of
possible outcomes. When used properly, these models can help advisors
and clients explore trade offs rather than predict precise results.
They can improve operational efficiency behind the scenes. Generative AI
and other AI applications are increasingly used to reduce the
(12:01):
administrative workload, improved document organization, support, research and monitoring, and
enhance consistency and plan updates. These efficiencies a lot financial
advisors spend more time where it matters most, applying judgment,
interpreting insights, and having thoughtful conversations with clients about their
financial goals. So I step in. I mean it's it's huge,
(12:22):
you know, for for advisors to be able to have
great conversations with their clients. Uh, you know, as opposed
to doing paperwork. And you know, so that's why it's
it's really helpful. And and like our client service that
helps them with you can help with them with paperwork,
uh you know, as well have relationships with with with
the clients.
Speaker 1 (12:41):
In this whole a.
Speaker 2 (12:41):
I think a lot of people have mixed views just
overall on the how AI is used in our lives.
And I kind of related to when the Internet came
you know, I sound like an old kind now, right
when the Internet came around dial up speed, I remember,
I mean I was around. We had no access to
the Internet before dial up, but it took forever. It
(13:02):
was slow then broadband and it's the same thing. Internet,
the great equalizer. So many good things can be done
on the internet, so much entertainment and so many bad
things can also happen.
Speaker 1 (13:14):
AI kind of is the same thing. I can. There's
so many.
Speaker 2 (13:18):
Areas of our life where it can probably be used
in a productive way, and then again it can it
can destroy lives. I mean, you're hearing stories of suicide
with teens and you know, used inappropriately. It's a computer, folks,
it's artificial intelligence.
Speaker 3 (13:35):
Yeah, people want to side meanings too to the interactions
that they have. Is an impersonal computer. And some companies
I think are doing it better, you know than others,
with having guardrails and having you know that put AI
safety you know, higher than others. So I'm not gonna
(13:57):
get it to get it which wants here, But yeah,
for obvious reasons. But I do think that there's there
that you need to be mindful of this and just no,
it's not you know, it's not a person. You know,
it will say what you want, wants you to hear
or give you the information generally that you that you want,
(14:21):
whether it's good for you or not. Just I mean
we talk about judgment. It doesn't have judgment or uh,
you have to trust the judgment of someone that you've
never met that programmed this AI and the trade.
Speaker 1 (14:35):
That's that's right.
Speaker 2 (14:37):
It's not like sitting across the table from your financial
advisor and every plan you do at Creative Planning is
custom right. It's no two clients are the same. What
I need for my retirement might be different than the
guy next door. It just goes without saying, I think,
And you know, AI is kind of funny. After the Olympics,
there's some good stuff that can do.
Speaker 3 (14:56):
Right.
Speaker 2 (14:56):
It put Trump's head on the US skater that who
scored the goal again, the winning goal.
Speaker 3 (15:02):
You just told me, I forget his name. Hughes. Yeah, yeah,
the Hughes brothers.
Speaker 2 (15:07):
The guy without no teeth. You know, you gotta knocked
out earlier with the He kind of wipes the blood
off a hockey picture that was perfect. Those photos will
live in.
Speaker 3 (15:19):
So you know.
Speaker 2 (15:20):
It put Trump's head on and him skating down the ice,
and it's a funny video.
Speaker 1 (15:24):
It's meant for entertainment.
Speaker 2 (15:26):
We couldn't do that like you could photoshop, but AI
can make this stuff look so real that you almost
wow that it looks like Trump skating. It's not it's fake.
It's artificial intelligence. But with your retirement plan. Aaron, you
got to rely on that human touch and would you agree?
Speaker 3 (15:42):
Oh? Absolutely, you absolutely have to rely on the human touch,
human interaction. It's not you know, it doesn't have and
well we'll get into that because that's what we're gonna
be talking about. Doesn't understand contexts and other things, so
so what doesn't do well? Some of its limitations are
despite its capabilities. Aiancial planning has meaningful limitations, especially in
(16:02):
a discipline as personal and consequentials helping people navigate complex
financial decisions. AI does not always understand context. It can
it evaluates the inputs given. It doesn't inherently understand family dynamics,
emotional trade offs, real world or risk tolerance, or how
priorities evolve over time. Two people with identical balance sheets
(16:24):
may need very different financial advice, and AI cannot recognize
why unless that context is fully articulated. This is why
personalized guides for experienced planners remains essential. AI simulates reasoning,
but doesn't exercise judgment. Financial planning is rarely about it
identifying a single optimal answer. More often, it involves balancing
(16:46):
and competing priorities, such as risk versus peace of mind.
Taxes versus flexibility, growth versus stability, and present enjoyment versus
future security. AI can present options, but it does not
reliably ask find questions needed when key variables are subjective
or unstated. Risk management and strategic planning require human judgment
(17:07):
that AI alone cannot provide. AI. Like I mentioned before,
AI does not bear responsibility when financial advice is acted
on the consequences are real. AI doesn't sit across the table,
ask follow up questions, or prompt periodic reassessment. Is life
circumstances change, and it does not share accountability for outcomes.
(17:27):
Most importantly, it doesn't consistently highlight how decisions made today
may limit or eliminate future options. That responsibility falls to
financial advisors, who understand both the technical aspects of planning
and the human dimensions, and it cannot coordinate across disciplines.
So effective financial planning often requires coordination among tax professionals,
(17:49):
the state, planning attorneys, family members, and business partners. AI
tools don't manage those relationships or ensure recommendations are aligned
across disciplines. That responsibility remains human and essential, particularly when
planning involves complex wealth management considerations. So here's some practical
examples for where the difference matters. Example, want a survivor
(18:13):
and a narrow planning window. So consider a widow who
inherits her spouse's assets and continues working for a limited period.
She may qualify for more favorable tax treatment before eventually
filing as a single taxpayer. Where tax brackets compressed significantly,
AI may reasonably suggest caution based on general best practices,
avoid major decisions, allow time to grieve and revisit planning later.
(18:37):
That kid is thoughtful and often appropriate. What AI forecasting
may not emphasize is that certain planning opportunities, such as
such as strategic roth conversions or capital gain realizations, may
only be available during this temporary window. Good planning doesn't
mean rushing the action. It means understanding which opportunities are
time sensitive, even if the ultimate decision is to wait.
(18:58):
Experienced planners recognize these new nuances. So takeaway is that
the risk is enacting too students not recognizing when waiting
quietly closes the door. Here's another example intergenerational planning. When
the family is the client. Consider parents who are financially secure.
I expect to leave a meaningful inheritance alongside adult children
(19:20):
who are high earners facing high tax rates. Home purchase
decisions and long term savings questions. Viewed separately, both households
may appear well planned. Viewed together, Additional insights emerge. Parents
may help finance a home purchase rather than relying on
a bank keeping interest within the family. Wealth may shift
(19:42):
intentionally across generations to reduce overall taxes. Children may avoid
over commuting to inflexible savings vehicles rather expected future assets.
Assets may be positioned so that future transfers aligned with
the children's tax situations. AI can optimize an individual plans.
It rarely reframes a question to view the family is
(20:03):
a single long term balance sheet across generations. This type
of strategic planning requires the judgment of seasoned financial planners
who understand both technical aspects and family dynamics. Take away
from that as some of the most impactful planning opportunities
exist between people rather than within a single account or household.
Last example is when a good plan falls sort for
(20:24):
a child who needs long term support. Consider a family
with a minor child who will require long term or
lifelong support due to special needs. On paper, the plan
appears sound. Retirement accounts are funded, savings goals are established,
Insurance coverage seems adequate. AI may confirm the numbers work.
What AI may not fully assesses whether state planning, insurance,
(20:47):
and investment strategies are coordinated to support that child over
decades without alignment, assets may pass outright to a minor
or special needs beneficiary, Eligibility for valuable government needs based
benefits may not be maintained, and insurance proceeds may lack
appropriate trust structure. Investments may not be positioned to provide
(21:09):
consistent long term support. The result isn't the bad plan,
it's an incomplete one that fails to serve its ultimate purpose.
Experience advisors understand how to coordinate these elements in ways
that AI tools along can't takeaway. Is A plan that
works mathematically can still fall short functionally if the people
it's meant to protect aren't fully considered. Final thought, good
(21:33):
financial decisions are rarely about having more information. They're about
understanding which information matters, how different choices affect real lives,
and how priorities change over time. AI can help organize
financial data and provideolytical insight, but it can't understand people.
That's where a comprehensive planning relationship matters. It created. Planning
(21:54):
focuses on getting no individuals and families at a human
level and applying experience, judgement, and an interdisciplinary approach in
a way that's personal and relevant to their lives. While
AI and business and pitch services will continue to evolve,
the need for trusted advisors who provide personalized financial advice
if the responsibility for outcomes remains unchanged.
Speaker 1 (22:16):
The keyword trust, I trust a person a human. We
are all humans.
Speaker 2 (22:22):
With social I think needs to talk to somebody real,
not a computer. There's a time for AI and a
place for it, But with regard to your retirement plan,
I think I would prefer an advisor. You've got many,
many good certified financial planners right here in town. We're
talking with Aaron Kowalt, the Retirement Clinic on WISN of course,
(22:43):
formerly the co Wal Investment Group, now creating planning, and
the same numbers applies that we always give out for questions. Aaron,
it's two six two five two two forty the Retirement
Clinic dot com for more information. After the break, Jeff
is going to talk about retirees, but it's it's going
(23:04):
to be interesting. It's a little real estate discussion, the
best and worst housing markets for retirees. And before you
think everybody moves to the villages in Florida, I think
Jeff's got some news from you. You know, I think
the qualifications are fifty five or older because I've been
getting stuff spam.
Speaker 1 (23:23):
I would call it about the villages.
Speaker 2 (23:25):
I've got several people I know friends that have moved
and they love it. The music that's played like in
a gazebo the villages is huge, right, everybody knows how
many golf courses are.
Speaker 1 (23:35):
It's unbelievable. So it was a Led Zeppelin cover band.
It goes the show. Today's today's eighty.
Speaker 2 (23:42):
Year old is not when you and I were growing up,
when you thought of an eighty year old, you thought
of a rocking chair and a porch.
Speaker 3 (23:48):
They got Zeppel. That sounds pretty good.
Speaker 2 (23:51):
Yeahickle, pickleball, tennis, maybe a martini.
Speaker 1 (23:56):
Yeah, four o'clock or whatever it is. And enjoy your life.
Speaker 2 (23:59):
But where is the best and the worst housing for retirees?
That's coming up next as we continue with Aaron Kowalt,
Jeff joining us, and then later in the hour, Aaron,
you get some other topics as well.
Speaker 1 (24:10):
Give us a little a tease.
Speaker 3 (24:13):
Oh sure, I've got some good stuff for you. We
talked about retirement plans for small businesses, and we're going
to be talking about romance scams, so well we're in.
Then ask the location optimization romance scams.
Speaker 1 (24:31):
That's a good one.
Speaker 2 (24:32):
Yes, okay, that's that's all ahead of us here on
WIS and the Retirement Clinic is every Saturday ten o'clock.
I'm Paul crown Forest with Aaron Kowal, and we'll be
right back on I.
Speaker 3 (24:43):
Hi.
Speaker 4 (24:43):
I'm Jon t.
Speaker 5 (24:45):
Wisen Shall, a great advisor in our office, recently talked
on this show about the best places to retire if
you consider health care costs and availability of care. This week,
I wanted to address the best and word housing markets
for retirees in twenty twenty six.
Speaker 4 (25:05):
This is a Fox Business article.
Speaker 5 (25:06):
I thought it was pretty interesting, thought you'd find it
pretty interesting as well. It starts out by saying an
estimated six and a half million Americans will retire in
twenty twenty six.
Speaker 4 (25:18):
Are you one of them?
Speaker 5 (25:19):
If so, you've likely already begun to consider where you
might settle down and spend your golden years, you might
even consider buying a home just for retirement, and the
article goes on to say, before you make that leap,
there are some things for you to consider.
Speaker 4 (25:34):
It's good to know.
Speaker 5 (25:35):
Which housing markets are expected to be strong in twenty
twenty six and which are expected to be unaffordable, and
to determine the twenty best and twenty worst housing markets
for retirees in twenty twenty six. Gold Banking Rates sounded
source of various markets from Zillow research data and cross
(25:57):
reference to that information with household values and retirement income
levels from the US Census.
Speaker 4 (26:04):
So I thought there was a good.
Speaker 5 (26:05):
Cross section, and from that matrix, go Banking Rates is
able to locate the twenty best housing markets for retirees
and actually the twenty worst. The twenty you should avoid
as well. Some I think will be surprising, some not
so much. Let's get started with that. Key finding is
the best market The Midwest fills the top twenty cities.
Fifteen out of the top twenty are from the Midwest.
(26:28):
Cities in Illinois, Indiana, Michigan, Ohio, and Wisconsin are home
to fifteen of the twenty best housing markets for retirees
in twenty twenty six. Again, I'm not going to go
through all of them. I'll go through a few of them.
Ohio dominates the market. Ohio cities appear more than any
other state cities in the top twenty with five entries.
(26:49):
Michigan comes in second with four cities. Retired This one
was kind of interesting. Retirees are gathering in Sandusky, Ohio.
Approximately thirty two point nine percent of households in Sandusky
received retirement income, more than any other city in the
top twenty. That makes Sandusky, Sandusky, Ohio a boomtown for
(27:10):
retired homeowners. It wasn't number one, though. The number one
was Saginaw, Michigan. One year forecasts of percent change in
home values four point nine percent percent of homes with
retirement income about thirty two percent. Percent of income required
for a new home twenty two percent. This number I
thought was kind of interesting. Income required to afford the
(27:31):
new home forty eight forty eight dollars, So it looks
like it's pretty affordable in Saginaw, Michigan. Now again, you
have to put up with the weather there, but that's okay. Cocomo,
Indiana one your forecast war of change in home value
of four point two percent thirty two percent again of
homes with retirement income. Income required to really afford a home.
(27:54):
In a new home there is about fifty forty nine
eight eighty three. Let's let's switch a little bit now
to the worst markets. Keep in mind when we give
the best of the worst markets for housing, a lot
of our retirees know that's not just the house, it's
(28:15):
the neighbors, it's the families. You know, are you closer
to your families? A lot of our clients move to
warm clients. A number of not a lot. A number
of them moved to warm climates thinking that their kids
and grandkids would follow them, and they spend a lot
of time. What they didn't realize is that their kids
and grandkids have lives of their own.
Speaker 4 (28:34):
And it becomes busy.
Speaker 5 (28:36):
So even though you have the best intentions of having
your kids and grandkids come visit, you, reality may sit
it and then that may not really happen.
Speaker 4 (28:45):
Okay, let's look at some of the key findings for.
Speaker 5 (28:47):
The worst markets. California has the worst housing market. Not surprising,
California has a housing market that is that that is
the least friendly to retirees, especially San Jose, California that
ends up as number one. The Golden State dominates the
bottom twenty. Not only does California have the worst housing
market for retirees in twenty twenty six, but cities make
(29:11):
up the majority of the bottom twenty, with eleven cities
total in the bottom twenty. Again, Fresno one year percent
change is only expected to go up by point eight
percent percent of homes with retirement income eighteen point nine
percent percent of your income required for new home is
sixty two percent. Income required to afford a new home
(29:35):
three hundred and sixty eight thousand dollars of income is
what's near to afford a new home in Fresno, California,
as both to forty eight thousand in Ohio. Number two
with San Francisco again one year forecast for changing whole
value minus one.
Speaker 4 (29:50):
Point six percent.
Speaker 5 (29:52):
Income required to afford a new home in San Francisco
two hundred and sixty.
Speaker 4 (29:56):
Eight four hundred and twenty eight dollars man and.
Speaker 5 (30:00):
Then number three is Santa Cruz, California, again the worst
markets uh income required to afford a new home, there's
two hundred and sixty six thousand dollars, so again it
looks like Los Angeles is number four. California. It seems
to dominate the worst places for retirements. For affording a
new home, it looks like the Midwest.
Speaker 4 (30:21):
Is the best place.
Speaker 5 (30:22):
Again, the costs of a new home is not the
only thing that's to be considered. There are a lot
of things that go into it. Planning for a new
home in retirement is most important. To make sure you
work with a producierry advisor like we have at Creative Planning.
Speaker 4 (30:35):
Giver office a call two six two five two six
two five two two.
Speaker 5 (30:40):
Four zero four zero, or go online to the Retirement
Clinic dot com schedule aployment and plan for that new
home in retirement.
Speaker 4 (30:49):
Back to you guys, it's WYS.
Speaker 2 (30:52):
It's Retirement Clinic. Welcome back to the program. Aaron Kowal
hosting the show from Creative Planning. The show since two
thousand and one, Monday through Friday during the Dan o'
donald Show, with those market updates twice a day during
the afternoon drive on w i s N, Wisconsin's most
listened to radio station. I had to toss that in there,
(31:12):
and you told us you had a great topic, but
I said, I'm curious what we heard from your dad
talking about housing and the best and worst places to retire.
Speaker 1 (31:21):
Now we segue to romance scams.
Speaker 3 (31:27):
Well, sometimes I feel like I scam my wife and
the ann to marry me. But you know that's a different,
different type of scam.
Speaker 1 (31:34):
We'll say different next week.
Speaker 3 (31:37):
Yeah no, but you know that brings too much levity
to this. But it is, you know, it is a
serious topic, the romance scams. People think, yeah, that will
never happen to me. Don't be so sure. It happens.
It's it is a big you know, a that's a
big industry. Federal Trade Commissioner sort. I have another article
(31:58):
here from Creative but I mean part of it is.
The Federal Trade Commission reported losses due to romance scams
in the United States totaled more than one point one
six billion, with a b billion dollars in twenty twenty
five alone, not a history of the internet. In twenty
twenty five alone, over a billion dollars was stolen from
(32:19):
people on these romance scams. So it's an increasing common
approach to financial fraud, you know. So it's a growing
form of financial fraud. And I've seen this. I've seen
people I've helped prevent some of this with people, you know,
with questions. So it's a fraud where scammers pretend, you know,
(32:39):
to pursue a relationship to gain a victims trust. These
confidence scams or use emotional manipulation to convince the scam
victim to send money and share personal or financial information.
And you can reduce your risk by recognizing red flags,
protecting your information, and talking openly with trusted friends or
family members.
Speaker 2 (32:57):
Aaron, are we talking an era when about online scams only?
Speaker 3 (33:01):
Yes?
Speaker 1 (33:02):
Okay, online, okay, because.
Speaker 3 (33:04):
You know you could also move well, it could be
you know, in person, but yes, that's why primarily yes
that I mean, that's been around forever. But this is
more more online focus and AI too, Okay. So in
an ear where more couples are finding love online, fraudsters
have become incredibly adept at scamming unsuspecting victims for large
sums of money. Romance scams, sometimes called online romance scams
(33:27):
or relationship scams, have emerged as a common and emotionally
devastating form of fraud where scammer gains the trust of
someone seeking relationship and uses that trust steal money or
personal information. Like you said. According to the Federal Trade Commission,
reported losses due to romance scams the United States total
more than one point one six billion dollars that we
know of alone in twenty twenty five alone, well with
(33:51):
many victims losing their entire savings. Most romance scammers accomplish
their theft by using fake profiles and false identities to
build an online relationship with a potential victim. They often
connect on a dating app, dating site, or social media platform,
using the illusion of a romantic relationship to convince the
victim to send money or share personal information that can
(34:11):
be used to steal their identity. Romance scams work because
they exploit emotions first and finance's second. Scammers often willing
to spend months building trust, often using stolen photos or
AI generated images to establish credible identities, and carefully studying
a potential victims social media to tailor their story. However,
(34:33):
the dangers of romance scams aren't just financial, they're emotional
as well. Victims of this type of fraud often experience
deep depression, anxiety, and post traumatic stress disorder PTSD. Keep
me in a manipulation strategy used by many romance scammers
is to quote love bomb they're victims by showering them
with excessive affection and attention to establish a rapid emotional bond.
(34:56):
They may also encourage secrecy or isolation from friends and
loved ones, which can make their eventual betrayal even more
emotionally devastating. Some red flags, so many romance scammers follow
similar playbook and become familiar with common red flags that
can help you avoid falling victim. There's always an excuse
for never meeting in person. Fraudsters typically have an excuse
(35:19):
for why they can't video call or meet in person.
Common stories include traveling outside the United States, military deployment,
a job at an oil rig, or working with an
international organization. They may suggest that technical issues security rules
are strict employers prevent them from using video calls, which
is often designed of dealing with a fake profile. Professors
(35:40):
love to quickly. Scammers often quote fall in love quickly
and love bomb their victims and attempt to gain their
trust within days or weeks. They may call you their soulmate,
talk about marriage or future plans, and encourage you to
move communication off the dating platform onto a private messaging
or social media appast moving intensity can be a major
(36:02):
red flag. Ask for money for emergency expenses once they've
established trust. Romance scammers often ask for money to cover
urgent or emotional expenses, such as medical bills for themselves
are sick relative, a plane ticket or visa fees to
come visit you, legal costs, customs fees or taxes requiring
an excess required to access, and inheritance. They typically request
(36:25):
payment through methods that are hard to reverse or trade,
such as gift cards, wire transfer transfers, or crypto assets.
Any requests for you to send money should be to
someone to someone you've never met in person, especially through
these channels, should be treated as a serious warning sign.
They encourage you investment. Can't miss opportunity. So how to
protect yourself? There are several steps you can take to
(36:49):
protect yourself or broader over you of scans or prevention tips.
You can review creative plannings insights on protecting yourself from
financial fraud. You can do verse image search, so use
a reverse image search on the person's profile picture and
any other images to see whether the photos appear anywhere
else online. Never send money, Yes, yeah, you can do that.
Speaker 2 (37:11):
Yeah, Never send money that doesn't seem obvious to you,
but people do.
Speaker 1 (37:16):
I mean, you hear about these scammers.
Speaker 3 (37:17):
And I love you so much. I love you so much.
Send me gift.
Speaker 2 (37:20):
Cards, Send me gift cards. And it's with AI and
the digital currency world that we're with, crypto everything that
we're living in these times, it seems like the potential
is even more so than it would have been years ago.
But you can be scammed. It does happen every day, Aaron.
It's unfortunate, but you're right, it happens, right.
Speaker 3 (37:39):
Yeah, I've only got a few seconds left. I'm gonna
read the highlights and then if you want this, I
can send you the article. It's it's the romance scam
article from Creative Planning, So just reference that, Aaron dot
Coal at Creative Planning dot com. Protect your personal financial information,
talk to your friends and family. Be very very sis
(38:00):
vicious of anyone who refuses to meet you in person.
So those are, you know, so very high level. Talk
with the trusted advisor. You'd be helpful too. So you know,
part of our job is to help you. Well, I
think you tell you if we think that something is off,
and you know, we've had to do that before, so
you know, let it, let it. You know, we will
(38:20):
be happy to help with any of these scenarios.
Speaker 2 (38:22):
If you want this information, reach out directly at created
Planning two six two five two two. You can ask
for Aaron coo Wal. He'll give out his email and
all that other pertinent good stuff when we come back.
Speaker 1 (38:34):
As well.
Speaker 2 (38:35):
The Retirement Clinic dot com has more information as well
as podcasts of this show. We'll be right back on
WYSN the Retirement Clinic. Almost done with today's show. Now
we're back next Saturday at ten o'clock Monday through Friday.
Market reports during the Dan o'donalds show three and five
pm every day from Aaron Kowal and everybody else at
(38:56):
Creative Planning. Did a great job today, a lot of
educational material. How do we contact you off the air?
Speaker 3 (39:03):
Yeah, you can reach us at Creative Planning dot com,
the Retirement Clinic dot com as well for the radio
show two six two five two two four zero four zero.
If you want me send you those articles that I have.
My email is Aaron a A r o N. Aaron
dot Cowal k o w a L at Creative Planning
(39:25):
dot com. Aaron dot cowal At, Creative Planning dot.
Speaker 2 (39:27):
Com and Creative Planning in Brookfield, right in Blue mountin
Road of course, in Racine, in Delafield, in Port Washington, Wisconsin,
and down in Florida and Cape Coral, Florida, Phoenix, Arizona.
Licensed in all fifty states, Creative Planning dot Com orre
as Aaron said, the Retirement Clinic dot com and one
more time, any questions at all, just to have a
(39:48):
conversation locally called two six.
Speaker 1 (39:51):
Two five two two forty forty with Aaronkowall.
Speaker 2 (39:54):
Thanks for listening. I'm Paul cron Force WYSN Milwaukee. Stay tuned.
Speaker 1 (39:58):
News is coming up next.
Speaker 6 (40:00):
The preceding program is furnished by Creative Planning, an 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
(40:21):
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 can be no
assurance that the future performance of any specific investment or
investment strategy, including those discussed on the show, will be
profitable or equal any historical performance levels. The information contained
(40:44):
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 independent
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