March 21, 2026 • 41 mins
The Kowal team help plan your retirement
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Speaker 1 (00:00):
It's news Talking eleven thirty wys and time for the
retirement Clinic. Welcome to the program today, hosted by Jeff
Kowaal with creative planning of course for many many years, heck,
many decades, the ko Wal Investment Group.
Speaker 2 (00:15):
Thirty seven years, a co investment group. About a year
and a half ago we moved to creative planting. Good morning, Paul,
by the way.
Speaker 1 (00:20):
Good morning Jeff. Great to have you here, you know,
in studio and doing the show between you your son
Aaron Spitzner. You've got so many talented people and you're
all now with creative planning.
Speaker 3 (00:34):
Absolutely.
Speaker 2 (00:35):
Yeah, we're especially proud of that because all twenty of
our employees came with us. It was a great transition.
And then just recently, Paul and I don't know if
if you know this creative planning was recently recognized by
The Wall Street Journal byside as the best RAA, which
is registered investment advisor for comprehensive wealth Management. The Best
(00:56):
Wall Street Journal highlights creative plannings, breaths of services, comprehensive
approach to financial planning, and high client satisfaction.
Speaker 1 (01:04):
This was all approved by compliance. By the way, Paul,
you know what. We congratulated you guys on last week's show.
Oh good good for the first time officially, we e
would have a little kind of a thank you at
the end of the show in a congrats to Creative
Planning because it's this is a Wall Street Journal.
Speaker 3 (01:20):
That's a big deal.
Speaker 1 (01:20):
Yeah, that's a big deal. Yeah, And Creative Planning is
a big deal. It's you have a lot of resources.
Speaker 2 (01:26):
Absolutely, and that's why we went to Careative Planning. Let
me just finish this so I will get in trouble
with compliance, noting that Creative Planning offers a more personalized
experience compared to other financial advisor firms, including pairing clients
with dedicated advisor. The distinction reflects that's the honor from
Wall Street Journal, reflects our commitment to providing our clients
(01:46):
with full integrated financial planning and services. Taylor to their
unique and evolving financial goals. On a personal note, Paul,
that's exactly why we were with Created Planning. It's turned
out to be just that way. Their philosophy about how
we love our clients, treat our clients, help our clients.
Speaker 3 (02:04):
I mean that's.
Speaker 2 (02:07):
As for new shows, Wise put our client's interest first.
So it's been seamless working with them, and we're very
proud that again that the Creative Planning was named as
the best RAA for comprehensive wals management by Wall Street Journal.
Speaker 3 (02:20):
Byside, we've got a busy show.
Speaker 1 (02:22):
Aaron Spitzer joining us after the first commercial break. Jeff,
you have some insights as to his topic.
Speaker 2 (02:28):
Oh yeah, it's got to talk about Ross all things
Roth and I think it's good. It's just a good
summary of what's going on, all aspects of the things
to look out for.
Speaker 3 (02:36):
And that's got to be a good topic.
Speaker 1 (02:38):
And you have a great topic to start the show.
But that being said, I want to give up your
phone number if people have questions, we'll give up the
locations you've got all around town. You're on the Dan
o'donald Show in the afternoon with the market updates. That's
Monday through Friday. This show has been on since two
thousand and one. The Retirement Clinic dot com for more
resources for information how to reach out the Retirement Clinic
(03:01):
dot com or Jeff. They can always pick up the
phone in.
Speaker 2 (03:04):
Call that's right, and you can schedule an appointment as well,
and that's most important to get started because we go
through all these topics. We go through all these ideas,
but unless you appointment to practice, they don't do you
any good. So do give our office a call again.
Producial advisors always put in our clients interrics first two
six two five two two four zero four zero, or
go to the Retirement Clinic dot.
Speaker 1 (03:24):
Com locations around town too, just so you know. They're
on Blue Mount Road and Brookfield in Delafield offices and
we're sine Port, Washington, Cape Coral, Florida, Phoenix license in
all fifty states. Very good, Paul, I've got it down.
Also create a planning dot com if you'd like to
check out that. Now, all of that, we get the
business stuff out of the way. You've got a topic
(03:44):
called the Silver Tsunami.
Speaker 2 (03:46):
There are two articles, and I'm often asked that you know,
are people working longer now or are they in general
retiring earlier?
Speaker 3 (03:54):
And I always say it depends.
Speaker 2 (03:58):
When I see a trend in one direction months later
due to health or economy or many other things to
trend reversus. But there are companies articles, one from Fox
Business and one from Forbes that talk about a different
trend going on.
Speaker 3 (04:17):
We pay attention to this.
Speaker 2 (04:19):
In our practice, we talk about with our business owner
clients about the importance of preparing so not only for them,
but also for the next generation that depends on them
for paychecks and the careers and things like that. This
was it's called the silver tsunami and the for Fox
(04:40):
Business that the article is titled Millions of jobs vulnerable.
Millions of jobs vulnerable as silver tsunami looms over small businesses,
Experts warn nearly half of US small business owners are
fifty five and older. Half of them, yet just fifty
four percent have a succes I should plan in place,
(05:01):
saying stage for a potential retirement shock that could leave
many companies vulnerable over the next decade.
Speaker 1 (05:07):
You work with a lot of small business owners, Jeff,
What defines a small business? Is it the number of employees?
Speaker 3 (05:13):
No, Typically, it's a volume of business that they do.
Speaker 2 (05:17):
And you know there's ultra small businesses and privately held businesses.
But small businesses employ more than sixty two million Americans
and accounts for roughly forty three percent of the GDP
small businesses do. That's according to US Small Business Administration.
Speaker 3 (05:33):
That's huge.
Speaker 2 (05:34):
Yeah, if it's significant share, that business instead of transitioning
to new leadership, companies could feel the effect. In other words,
instead of selling it. If it's just the business just
dies and the employees don't have their jobs. And again,
when you're talking about how many employees sixty three million Americans,
they're employed by small businesses, fifty four percent of them
(05:56):
don't have a plan in place. It says a silver tsunami.
A baby businessiness owners could dramatically reshape America a small
business landscape. They're huge creators of wealth, the most pure
version of the American dream. Many owners have spent decades
building their business on relationships and reputation, making success decisions
(06:17):
deeply personal. That's why a lot of business owners don't
go through the process of doing this because it's personal
to them. Who's gonna love their clients, Who's gonna love
their business as much as they did?
Speaker 1 (06:29):
What if they are the ones in many cases they
started the business. Yes, their heart, their soul, their their
sweat there, everything went into it, and a lot of
times the kids don't. We've talked about secession plans, kids
or kid employees, the family plan, you know, hand the
kid's gonna take it over. Well, that's not in place
if they don't want to, that's a problem. Jeff, that's right,
(06:51):
because that those numbers you're talking about are huge. Is
this enough to put up red flags like what's gonna
happen when the silver tsunami occurs?
Speaker 3 (06:57):
Yeah?
Speaker 2 (06:58):
Well that's that's what you two articles are addressing. And
it says one of the things that you can do,
and they won a small business owner. I think this
was in Kansas painting company Greenway Painting, and a key
employee took it over. He said, you know, Greenway was
pretty successful without having any advertising marketing. He liked the
(07:20):
idea that was pretty much one on one, so he
bought that particular business. But just now I'm gonna go
a little bit so thinking about it, there are usually
three parts of the silver tsunami poul One is the owners,
how do they get out? Two is the employees what
happens to them. Many acquiring companies want the talent, like
(07:41):
I mentioned earlier with creative Planning, they love to have
our employees. They were looking for good talent and we
had great employees. But some will also look to consolidate
and reduce the workforce and centralize everything. That's a different
way to look.
Speaker 1 (07:55):
At many mom and pops, they don't want to see
some of those employees are their best friends.
Speaker 2 (08:00):
Yes, they don't want to see him lose. They don't
want to see that. But sometimes if without planning, that's
what happens exactly. And third is the economy. Two point
three to three million businesses employ thirty two million people
and generate six and a half trillion of revenue. So
that's pretty significant. Going to the Forbes article now again
just a little bit different take on it again, approximately
(08:22):
two point three to three million baby boomers. The impact
of failing to find buyers will extend far beyond the
owner's retirement plans. Closures could mean job losses, weaker household incomes,
tighter local labor market, while the disappearance of family run
shops and service providers could push spending towards national chains
(08:46):
or online retailers the big box stores.
Speaker 3 (08:49):
So exit plans.
Speaker 2 (08:50):
So the Forbes article goes into a little bit more
detail about what you could do, and they say, by far,
the biggest barrier to successful sale is planning. Specific the
absence of a formal succession strategy. Most small business owners
are deeply tied to the owner and without documented processes.
(09:11):
I got to talk about that because we did this
years ago, and I think that's again I'm not saying
that we did everything right. We didn't, but we did
a lot of things right one and a lot of
it had to do with what Aaron pushed these things too,
document processes, documented repeatable processes.
Speaker 1 (09:29):
Aaron is Jeff's son, Just so we know, I'm sorry, Yeah, Eric,
and that so in your case the secession, your son
did stay in the business. Yeah, and you're still in there.
You're never going to stop working from what I can tell.
Speaker 2 (09:41):
I don't know God's plans are for me, but I'm
not planning I quick any type soon that's for you.
Speaker 1 (09:46):
You know that was one of my questions. I don't
want to stop you here because you got good stuff,
but real quickly, with your experience to retirement, Jeff, do
small business owners seem to work longer than the normal
corporate guy that works nine to five and just I'm
going to retire at sixty five? Oh?
Speaker 2 (10:01):
Absolutely? And these you know I'm even joking now. We
we merged with creative planning, and I'm saying I cut
down to forty five hours a week.
Speaker 3 (10:09):
So but by choice by choice.
Speaker 2 (10:12):
Again, we love the clients and love the employees, so
you put the time in and you feel a connection
with them. But again, document processes. That's repeatable that if
somebody buys you, they don't have to create the wheel
all over again. You already have processes in place, a
clear transition plan. In family owned companies, that challenge is
amplified by emotional dynamics, legacy pressure which you were talking about,
(10:36):
does is a kid ready for duty even want to
have it? Internal conflict and the next generation not wanting
to take the reins, or the old generation not want
to give them up.
Speaker 1 (10:46):
To give them up, that's a problem. Well, that's tough,
you know, depending on the situation. If you've owned a
business for thirty plus years and all of a sudden
you're going to hand over the keys one day and.
Speaker 2 (10:56):
Just walk away, that's a tough one. That's a transition.
It's always a almost always a transition. So when you
combine owner independency with the lack of buyer ready structure,
you end up installed transitions or too many cases, the
business closes when you owner exits. And I think you know,
if without proper planning, everybody loses the net. So you
(11:16):
have to have a formal, written succession plan in place.
Verbal arrangements don't work. You got to reduce it to
writing over a beer.
Speaker 1 (11:24):
I remember Johnny told me three years ago. Yeah, he
take off each step. Yeah, yeah, go buy it.
Speaker 3 (11:29):
Yeah.
Speaker 2 (11:29):
He said that I would be the key man too,
and that I was going to make X amount. So
we ran into one of those two.
Speaker 1 (11:35):
Anyway, it's got to be done the right way.
Speaker 3 (11:37):
Yes.
Speaker 2 (11:38):
Common gaps that contribute to this low level level of
preparedness include a lack of professional business valuation. Business valuation
leading to unrealistic price expectations. So you think it's worth X,
and somebody looks at it and said, you don't have
processes in place, you don't have key employees, you don't
have this or that. They said it's not worth that.
Speaker 1 (11:58):
It's not. Unlike the real estate industry where homeowners this
is a simple comparison, chef, but they always think their
house is worth more than it may sell on the market.
What's a home worth? Exactly what the open markets want
to pay for.
Speaker 3 (12:10):
Yeah, somebody's willing to pay for it, that's what it's worth.
Speaker 1 (12:13):
Yeah.
Speaker 2 (12:13):
Many owners also overlook critical legal and financial elements such
as the state taxes, by sell agreements, funding mechanisms such
as life insurance or structure transferred options. So for family businesses,
handing over the second generation leaders might seem the obvious solution,
but they inherit not just the business, but it's history,
relationships and expectations, and unlike founders, they must balance respectful
(12:38):
the established vision and the culture need to modernize. And
that's why I think again, just within our business, and
I don't want to dwell on that, but we modernize
that A lot of it was pushed by the younger
generation and next to Aaron and others in our firm
saying this is what we need to compete. And you
know I was. I gave up that part of it.
Speaker 1 (13:02):
You said, I love my FATX machine, I don't want
to go to email.
Speaker 3 (13:06):
No, I know I didn't do that, Jeff.
Speaker 1 (13:09):
I have been around a while, quite honestly. I remember
the transition from typewriter to computer, from going to email,
and now you know the social media and then AI.
It's a constantly changing technological world. Yeah, and that certainly
applies to every business.
Speaker 3 (13:26):
And you can either.
Speaker 2 (13:27):
Dig your heels in and say I'm not changing or say, Okay,
let's find somebody who can do this efficiently, effectively and
make sure everybody's on board with it.
Speaker 3 (13:35):
So that's the way to go.
Speaker 2 (13:36):
Research from the Exit Planning Institute has identified that nearly
fifty percent of business owners exit involuntarily, not by choice.
But do they call it the five d's divorce, disability,
disagreement with the partner, economic duress, and death.
Speaker 1 (13:54):
Death is the last one I knew the out of
five d's, that was one. That's when you don't plan.
If the owner falls over debt, of a heart attack,
what do you have a plan in place? What? What?
What happens to the business? Uh, those are a lot
of things that have to go right, Jeff. But if
you've got a plan, that's a good thing. It's just
like retirement. You don't have a retirement plan, you're just
(14:15):
what winging it.
Speaker 2 (14:16):
That's a great point, Paul, because everything goes more supposely.
You feel better about it too once you reduce it,
and you know you can have this idea of what
you want your business to look like in the transition.
But unless you reduce it to writing, it's not a plan.
Boomer sellers often prioritize legacy preservation over maximizing cash up front.
(14:36):
In other words, if you keep the legacy, if you
keep our great clients. At the same time, younger entrepreneurs
can bring fresh advantages, injecting modern technology AI, digital marketing
and operational efficiencies to unlock growth. Then these other often
traditional cash flow positive businesses. So good good businesses, good
cash flow and if you could modernize it with the
(14:58):
next generation. And the last thing they say is government
support for exit planning. There is government support available for
those looking to sell their businesses with effective elements including
small business administration, loans, flexibility for successions, employee stock ownership,
and other things. And they finally to wrap this up
(15:21):
pull exit planning is vile cold. One of the authors
of this says to small business owners nearing retirement is
to start with an objective valuation that identify the value,
emphasizes reducing owner dependence.
Speaker 3 (15:36):
That's another key thing.
Speaker 2 (15:38):
Strengthening leadership, streamlining financials and operations, standardizing costs, mitigating operational costs.
Says I ask every business owner, is this if you
couldn't work tomorrow in your business with still take care
of you and everyone who depends on it. And if
you sold it, would your life still feel meaningful if
(15:58):
either answers. You know, if you can answer yes to
that the time to go.
Speaker 1 (16:02):
That's a tough one, Jeff. A lot of people struggle
in retirement. A lot of people just the opposite. They
embrace it, they love it. We're talking all the here
about friends that we know, Jeff, that have recently stepped away.
I'm kind of in the middle. I have pulled back
here at WISM, but I'm doing all my weekend talk shows.
They keep me very busy, but I'm not at one
(16:22):
hundred percent like I was for thirty five years. So
my routine this year is different and I love it.
I was showing you pictures of my grandkids.
Speaker 3 (16:29):
Oh yeah, it's a.
Speaker 1 (16:31):
Different chapter of your life. But not everybody's. Everybody wants
to retire at a certain time. It could be fifty nine.
Some people want to work well into seventies.
Speaker 2 (16:39):
And for a lot of these even business owners can say, Okay,
I'll stay on for a while. I'll stay on for
six months, a year, two years the transition and to
help with the transition, and that can also help them
ease into retirement that they don't have full responsibility for
compliance issues, for employee, for benefits, for things like that.
But yet can can their expertise to the business and
(17:02):
how you were doing things, so it still can be
a valuable transition and still reduce the hours and not
have the same stress and the same responsibilities.
Speaker 1 (17:10):
It's called the silver tsunami. That's a great topic, Jeff.
Makes you just think about not just the baby boomers,
but pretty much that's what we've been talking about right
that generation. I'm I'm an exer. I missed it by
a year, the boomer. I was born in sixty six.
But here I am in partial retirement. Jeff. Maybe that's
the way to do it. Wean yourself off. Some people
(17:30):
do that. That's a if that is what you can do,
that's a luxury.
Speaker 2 (17:34):
But if we get nothing else out of this, I
think the key is that doesn't affect just you.
Speaker 3 (17:39):
It's it's the employees. And if you know, like in
our case.
Speaker 1 (17:42):
Well I thought you were going to see my wife.
Well yeah, your case business owner?
Speaker 3 (17:46):
Poor yeah, poor.
Speaker 1 (17:47):
Daughter, No kidding, that's why she want you to continue.
I don't you're gonna be home, how luge? You're watching
Band of Brothers again?
Speaker 3 (17:56):
Yeah?
Speaker 2 (17:56):
No, But employee affects the employees in the business as well.
You know, what are they going to do? Do they
have career possibilities, will they be kept on, will they
be dumped? And also the you know, the effect on
the economy. And I think with good planning, and again,
if there's emphasis on it like this, you at least
some awareness of it that you have to do something.
(18:16):
You have to put a plan in place and then
execute the plan.
Speaker 1 (18:19):
Let's been your four t Jeff since we started the
show in two thousand and one. The retirement clinic is
all about that, and if you work with a planner,
they're going to make you and talk you through these scenarios.
Are you ready, not just financially that's a big one,
but emotionally.
Speaker 2 (18:33):
Right absolutely, And you have to be prepared for that
moment when you do either leave your business or leave
your work, be prepared for that both financially and emotionally.
Speaker 1 (18:43):
If you have a retirement plan but you're unsure of it,
or you haven't blown the dust off of it. If
you don't have a retirement plan, if you've been putting
it on the back murder, If you want to reach
out for any questions here is the phone number two
six two five two two forty forty two six two
five to forty. The Retirement Clinic dot com is also
a great resource. Yes, we do podcast the show, so
(19:06):
all the programs are up there. Aaron Spitzer joining us
after the break, Jeff, He's going to talk about Roth's.
Speaker 3 (19:12):
All things Roths.
Speaker 2 (19:12):
Yeah, it's gonna be an interesting segment and Aaron spitzerlies
puts a good interesting twist on it as well, so
you're gonna enjoy it.
Speaker 1 (19:20):
One of the hosts of the show, He and shaun
Cy Wisensell, Aaron Cowle, yourself, Jeff Cole, all part of
the Retirement Clinic here on WIS and I'm Paul kron
Force will be right back.
Speaker 3 (19:31):
Stay tuned by.
Speaker 4 (19:32):
Good morning Jeff and Paul, and thanks for having me
on the show today. I thought this was a timely
article as we've had a little bit of volatility in
the market and that can present a good time for
a Roth conversion.
Speaker 5 (19:46):
So we will do a quick overview.
Speaker 4 (19:48):
This is an article titled Roth Conversions in a Nutshell,
which gives us again a brief overview of a few
things to look out for if you decide to.
Speaker 5 (19:57):
Convert to roth. This article begins.
Speaker 4 (20:00):
Roth conversions, if done right, can lower your tax bill
over your lifetime, but be careful. There are traps and
the unwary can easily get caught. Here are eight factors
to consider in deciding whether to convert all or part
of your IRA to a wroth. First one begins here,
(20:21):
present and future tax rates, so by way a background here,
a wroth conversion is a taxable event in the year
of this switch. So if you expect that your income
tax rate in retirement will be equal to or higher
than the rate of on conversion, switching to a Roth
can pay off again. The Roth conversion is just moving
(20:41):
money from your traditional IRA to a wroth IRA. From
there it grows tax free and you never pay tax
again again. Advantages of a wroth. Distributions of Wroth earnings
are tax free provided you are fifty nine and a
half or older and at least five years have passed
since you first put funds in Any roth IRA conversions
(21:05):
can also ease the pain of many nonspouse beneficiaries of
inherited roths who must empty the accounts within ten years.
The money is tax free to them. A multi year
strategy is number three, conversions and increments over time space
out to tax. It review your income and deductions each
(21:27):
year and determine the optimal amount of traditional IRA money
to convert, so the tax on the conversion doesn't move
you into a higher tax bracket or cause you to
lose out on tax breaks. So if you're thinking about
doing a conversion, perhaps you wait to the end of
the year, figure out how much room you have left
in the twelve percent tax bracket, and convert that amount
(21:47):
each year. Adjusted gross income is another one to look
out for here. Modified adjusted gross income is often used
to determine eligibility certain tax benefits or tax breaks, or
to determine if you are subject to serve taxes or surcharges.
(22:07):
For example, it's used to see if you qualify for
the six thousand dollars deduction for people sixty.
Speaker 5 (22:14):
Five or older that was part of the One Big
Beautiful Bill Act.
Speaker 4 (22:20):
Those deductions would phase out if you're modified adjusted gross
income gets above a certain level. You don't want a
Wroth conversion to cause you to lose deductions and credits,
so be mindful of those if you decide to convert.
Another one here is Medicare premiums. The additional income from
a WROTH conversion can trigger high Medicare premiums. Couples with
(22:43):
a twenty twenty three modified adjusted gross income over two
hundred and twelve thousand pay a monthly surcharge in twenty
twenty five for Parts B and D coverage on top
of their regular premiums. So when you do that conversion,
make sure you don't go over that limit, otherwise you
find yourself not only paying tax on the conversion, but
paying a premium for your Medicare. Paying the tax on
(23:08):
converted funds is another obvious one to look out for. Here,
a ROTH conversion is treated as taxable income or a
taxable distribution from your traditional IRA when those IRA funds
are contributed to the WROTH, so you may withhold tax
on that conversion. Withheld amount is treated though, as a
(23:31):
distribution to you on which you pay tax in addition
to the money you actually move to the WROTH. So
if you're looking for a way to pay for the conversion,
some people will withhold a part of their conversion to
pay the tax on it. However, then you're paying tax
on the money you're paying tax with so ideally, we
(23:53):
don't want to do that. If possible, you want to
pay the conversion tax with non IRA funds and then
do zero withholding on your conversion amount. IRA owners of
RMD age is another one to be aware of, depending
on your age. If you are of RMD age and
(24:15):
you must take your annual RMD from your traditional IRA
before doing a WROTH conversion for the year, and if
you have multiple traditional iras, you must withdraw your total
aggregate RMD amount for the year before doing any conversions.
And last, but not least, here, you cannot undo a
(24:37):
WROTH conversion. Prior to twenty eighteen, if you did a
Roth conversion, you could undo it by transferring the funds
back to your IRA. This made sense if the WROTH
lost money after the conversion.
Speaker 5 (24:51):
Now there is no redo.
Speaker 4 (24:52):
You're stuck with the tax bill, so quick recap. Be
aware of the present and future tax rates. Maybe convert
over multi years and manage your modified adjusted gross income
while you do it. Be aware of those MEDICARE premiums,
pay tax on the converted funds with outside money, and
be aware that you cannot undo the Wroth conversion. There's
(25:16):
a lot that we just unpacked here. If you're looking
for assistance, please give our office a call. We'd be
happy to assist you with the Wroth conversion or answer
any of your other questions. And now back to you,
Jeff and Paul, thank you.
Speaker 1 (25:30):
Great to hear from Aaron Spitzner back on the retirement clinic.
Jeff Kowal is here and I'm Paul cron Force. Any
thoughts to follow up about the Wroth.
Speaker 2 (25:38):
Sure, and that was good information from spitz But one
thing from ed Slot. Yes, Inherited Roth diaries do have
rm ds, but they depends. However, it's important to recognize
there are several variables in play. The context is needed.
Simply say that that rm ds apply does not explain
(26:00):
how the payout rules work. It's pretty complicated for roth iras,
but they are. Some of them do have inherited diaries
definitely do have requirement of distributions.
Speaker 3 (26:10):
So look at the rules for that.
Speaker 2 (26:12):
One other thing I want to touch on before we
go to a break, Paul. Oil prices have gone up
with his high as one hundred and eight dollars a barrel,
you know, and a lot of people say, well, we've
never seen this before, We've seen it lots of times before.
Jamie Batner, he's ahead of Investments that created planning, just
(26:34):
did a little three minute ten minute podcasts talking about
the state of the economy and said he went through
all the different times that the markets have gone down
because of war and dramatically rising oil prices, and then
there's been like fifteen of them over the last fifty years.
And he said on average, Now there's no guarantee is
(26:56):
this going to happen in the future, But on the
average the market up sp five hundreds, up twenty percent
a year after that. So it drops down, So it's
not there's not twenty percent from where it was before,
twenty percent from its low, but it does. It has
gone up. And again that's a disclaimer. Is there's no
guarantee that it'll happen again. Of course I metched it
in Kosovo that that the time. That was one time
(27:17):
where it did not come back up, where it was
down for a couple of years. After that, the markets
were down for a couple of years.
Speaker 1 (27:22):
Well, clearly we know why oil is up, Jeff, it's
the Strait, it's Iran, it's we're not you know, we
know why Is it temporary? How many weeks. Is this
going We don't have a crystal ball, but history would
say that at some point it's going to go down,
and gas will go back down, et cetera.
Speaker 2 (27:38):
Yeah, the markets are likely to go back up. The
economy shed ninety two thousand jobs last months, significantly missing
expectations and causing down the S and P five hundred
to fall. Oil prices will have more than to over
one hundred eight dollars a barrel. But don't make it,
especially if you're retired. There's no reason to make drastic
changes in your portfolio and think that this is likely
(28:02):
to continue, may continue for some time. There's and you know,
you don't know why a correction occurs. A correction, Whether
the market drops ten percent, that's usually a correction. Uh,
you won't know why, what triggers it, but that's normal
parts of the market, and it usually recovers.
Speaker 1 (28:19):
For it's been up and up and up, Jeff, you
get accustomed to that. Market's never continue in a straight line.
Speaker 3 (28:25):
They never go straight up.
Speaker 1 (28:26):
Yeah, they always go down and up and down and up.
And now with Iran and oil, I think you're exactly right.
The worst thing you can do, and Jeff I'm not
the expert, but you are is panic.
Speaker 3 (28:37):
Yeah, and give a react to it.
Speaker 2 (28:39):
If you have a good portfolio, if a good asset allocation,
that's what we believe in asset allocation, So you have
you would have some downside protection as the market goes down,
and if you pull out now, you won't participate when
the market does inevitably go back up.
Speaker 1 (28:53):
Whether it's a wrath response to Aaron Spitzer's great segment
or what Jeff is talking about. If you've got a question,
reach out to create a planning locally offices all over
town in Brookfield, right on Blue Mountain in Delafield. We'recine Port, Washington, Wisconsin.
Two six two five to two two forty forty is
the number coming up as the weekly Wealth Management and
(29:13):
Preservation segment. Jeff, give us a little.
Speaker 2 (29:16):
Adult kids are getting inherited as sooner? Why is that?
And is that a good thing? We'll talk about that.
Speaker 3 (29:21):
That's a good tease.
Speaker 1 (29:23):
And it's coming up next on the Retirement Clinic with
Jeff Kowal. I'm Paul crownforst On Wisn The Barnaked Ladies
and that song, Jeff means it's time for the Weekly
Wealth Management and Preservation Segment. By way of background, what's
this all about? We've been doing this for years.
Speaker 2 (29:41):
Sure this show us for everybody, this particular segment for
those with a million dollars or more. Once you accumulate
some wealth, how do you preserve it? Grow it, take
income from it, it passes down to your ears. That's
what this segment is about. A lot of times people say, well,
I don't have a million dollars or more. Well, you know,
if you think about it, if you have a four
to one k play and if you have other investments,
(30:01):
if you have life at church, if you have a home,
if you get an inheritance, if you win a lottery,
if you settle a lawsuit, if you sell your business, would.
Speaker 1 (30:11):
You include the equity in your home? You can?
Speaker 2 (30:14):
I mean the government certainly will. Okay, I've got to
look at how much is taxable?
Speaker 1 (30:17):
Yeah, if I've got an eight hundred thousand dollars home
and I've got one hundred thousand dollars balance on my mortgage,
is that seven hundred thousand to see when we.
Speaker 2 (30:25):
Look about it, mostly is for investable assets. But what
the government looks at as all your assets. So there's
always that question. I mean, what do you talk about.
The answer is yes, it's all the above. It all depends.
Once you to accumulate some wealth, the government's gonna find
any way to go. I should be careful with that.
They're gonna find a way to get at it if possible.
There was one thing, and I don't even know if
(30:45):
I should mention it, Ma'm Donnie was talking about doing
a fifty percent tax estate tax on the state's over
seven hundred and fifty thousand dollars.
Speaker 1 (30:54):
In New York, which is insane because everything in New
York is over that. Yeah, I mean, you have.
Speaker 2 (31:00):
A four to one k that's seven hour and fifty thousand,
and when you die, you give up half of that.
That's along with paid tax income tax anyway, that's a
totally different issue.
Speaker 1 (31:08):
But also just going back to the net worth, Jeff,
if you're a landlord and owned four homes, that's part
of your net.
Speaker 2 (31:14):
Absolutely, But a lot of times people don't think about
including those things in their net worth. And what do
you think if you have over a million dollars, if
you're of a divorce settlement, if you again, if you retire,
those are types of things. So this applies to a
lot of people. And this article was from Barons when
it just hit me because I see this with our clients,
(31:37):
I see this in our family. And so it says
adult kids are getting their inherited sooner, how parents are
doing it. Alice Canter is the author of this. It
says wealthy families are adopting proactive estate planning, including family
meetings and education. Also fifty three trillion dollars brillion, and
(32:00):
set the transfer between now and twenty forty five. Twenty
forty five. That's like way off in the future. That's
twenty years, just twenty years. Is it just because that
large generation of boomers? Yeah, generation, So they're all going
to die. Sorry, but you're going to die. We're all
going to die at right point. It's a die one
hundred percent, and inheritance will kick in. And that's a
(32:22):
lot of money. How much did you say?
Speaker 3 (32:24):
Fifty three trillion?
Speaker 2 (32:25):
Over the next twenty years, federal state tax exemption rose
to fifteen million dollars per person, thirty million for couples,
So a lot of that's going to be sheltered. Tax
free gifting has gone up each year to nineteen thousand dollars,
and a couple can gift thirty eight thousand dollars. But
as the young generation faces the biggest wealth transferred decades,
with baby boomers set to pass on fifty three children
(32:48):
fifty three trillion to your children, wealthy families are taking
a more proactive approach. It's less likely that somebody in
their seventies and eighties has just started these conversations. The
rise of family governance has boosted has been boosted by
Donald Trump's One Big Beautiful Bill, and this is according
to Barons, which was announced last April, took effect in January.
(33:12):
The bill increasing amount of wealth that can be transferred
on to future generations tax free. Now that's a state
tax free. There still might be income tax, especially if
it's IRA accounts, but a state tax free permanently setting
the twenty twenty six federal state tax exemption at fifteen
million dollars per person. The exemption goes to thirty million
(33:35):
dollars for married couple, so a married couple family can
transfer thirty million dollars to the kids or to anybody
without any estate taxes. Additionally, now the annual gifting can
be done tax free up to nineteen thousand dollars can
be gifted annually. Again, a husband and wife could give
thirty eight thousand dollars one big beautiful bill was a
big relief, according to Jared Pearce, he's a partner at
(33:58):
the Kansas based Family Off of Creative Planning. But now
there's more work to do. Point is to get kids
more engaged the days of the big reveal. This is
and you would see iven movies is the big reveal
of the reading of the will.
Speaker 1 (34:11):
Which is all dramatic Hollywood production. There really is no
reading of the will.
Speaker 3 (34:16):
No, no, that doesn't it works.
Speaker 2 (34:19):
Yeah, they've given way to road maps and increased transparency.
Parents are also giving away more money sooner as the
kids start having kids.
Speaker 1 (34:28):
So before they die.
Speaker 2 (34:29):
Yes, they want to support them. And I see that
happening more and more that they say I've got enough.
And this is where our planning comes in, especially with
Creative Planning. We do what's called a vision buility, which
is a cash flow projection. It shows you if your
money's going to last till age in ninety nine. So
once you've done that and see that, you're that you're
settled that you could do that. Then if you want
(34:50):
to gift money away at an earlier age, then it
makes sense to do it. But you got to make
sure that your plan is taken care of.
Speaker 1 (34:56):
The most beautiful thing about that is you're alive and
you get to see the pleasure your children get from.
Speaker 2 (35:02):
Your gad is such a great point, Paul, and I
often don't say that to you.
Speaker 1 (35:08):
Well, thank you. Maybe it's because your grandfather. But if
I just think of myself for the next ten twenty
years gifting my kids bunny, yeah, and then they get
to enjoy whatever it is, and you get to see it,
and I see it, Yep, It's like, wow, Okay, I
get the fruits of my labor are paying off.
Speaker 3 (35:23):
Yep.
Speaker 2 (35:24):
Parents are giving more away sooner as their kids start
having children. They want to support them on the housing
ladder or to pay tuition, pay for tuition. Still, parents
tend to shy away from sharing actual figures on the
amount to be inherited to prevent seeing their kids changing
their behaviors radically.
Speaker 1 (35:41):
That that's a tough one. You've talked about this that
that awkward approaching. Are we going to talk about like
a trust and estate plan with min and how do
you start that? Conversation.
Speaker 2 (35:50):
Yeah, well with mom and dad, you start that conversation
by saying, like our clients will say, uh, we've done
our plan, We've updated our wills and trust, We've done
you know, the powers of attorney all that. Bob and Dad,
have you done yours yet? Have you taken a look
at that? Is there something I can help you with?
That's that's the way to so you don't have to
ask about specific first, Could I retire Monday?
Speaker 1 (36:11):
You never want to assume or count on an inheritance,
right right, well, because your mom and dad may need
that money.
Speaker 2 (36:17):
We don't know, that's right, right, And that's why when
we do the creative creative plan, we would do the
cash flow of projections. What we try to do is
include variables like what happens if one of the partners
has to go in for long term care.
Speaker 3 (36:28):
Exactly and the last four years or long assistic.
Speaker 1 (36:30):
I mean, that's that's expensive stuff.
Speaker 2 (36:32):
It can be and you have to plan for it.
But if you plan for it and you still have
money left, then you can feel comfortable giving money away.
Revocable living trust, for instance, are seeing a surge of interest.
These trust allow for parents to liquidate assets from the trust
active actively management and amend the terms whenever they want.
Speaker 3 (36:50):
Those are revocable living trusts.
Speaker 2 (36:53):
And then if you want to minimize inheritance taxes, So
if you have assets over thirty million dollars, you want
to minimize a lot of times irrevocable life insurance trusts
come into play. You get the money out of your
state and may go to the next generation or bypass
the generation and upon. The people are increasingly considering directly
(37:13):
buying life insurance if there is a tax issue over that.
And for clients over with assets over fifteen million dollars,
they're willing to consider some of those older policies they
bought when they were kids and younger and have them
repurpose to pay for the estate taxes. Just to wrap
this up, Paul, a lot of people, even if they've
saved a million to ten million dollars in their lifetimes,
(37:35):
they still worry about running out of money in retirement.
You know, you got to make sure that you take
care of yourself first. If you're not spending it, your
kids and daughters in law will do it. So if
you're not spending it, they will, That's the old thing.
Dennis and Pekett Crow would say, if you can afford
to go first class and you don't, your kids will.
Speaker 1 (37:53):
It's a great common The owners of Cruis and two
are good friends of ours.
Speaker 3 (37:57):
Yeah, that that.
Speaker 1 (37:58):
Is so true. Plus you never like the future, Jeff,
if you extended hospital care big bills. Medical bills can
really destroy a plan. Yes, if you don't plan properly.
We talk about business plan, retirement plan, tax planning. Estate
planning is huge.
Speaker 2 (38:13):
Absolutely, and make sure that your plan is in place
before you start gifting away a lot of money. But
it is as you mentioned, it's nice to be able
to see your kids and Greg his benefit from your
life's work and see them enjoyed while you're still alive.
Speaker 1 (38:25):
Junior just bought a curve front with the money again, Yeah,
it was meant for something else, but okay, we get
the point. Really good information, Jeff, before we're done, and
we'll do this right after the break. Information how to
reach out to the good folks at Creative Planning and
congrats again a big recognition by the Wall Street Journal.
Speaker 2 (38:43):
The best Doria registered investment advisor, the best our a
for comprehensive wealth management, Wall Street Journal by side for
that creative planning, creative planning.
Speaker 3 (38:53):
That's good stuff.
Speaker 1 (38:54):
Jeff, and this show, The Retirement Clinic Saturdays at ten
o'clock will be right back with Jeff Kohal. I'm Paul Cronford.
Stay tuned before we leave today, Jeff Cowal. If people
have questions about this awesome retirement clinic that we just did,
and we talked everything right about the silver tsunami, we
talked about wrath, information on Aaron Spitzner.
Speaker 2 (39:15):
Giving away money early to your kids, Sarah. We covered
a lot of things. The move to creative planning expands
our ability to provide comprehensive wealth management, investment advisory services,
retirement planning services, all in the house, estate planning, insurance
or long term care, all those things, investment planning, retirement planning.
(39:36):
So we can help simplify your journey at the financial
wellness Visit the Retirement Clinic dot com or give us
a call two six two five two to forty forty
and do that. Schedule an appointment with us. Make sure
you get on your schedule right away.
Speaker 1 (39:48):
And of course next Saturday. Back every Saturday at ten
o'clock for this show Monday through Friday during the DAN
o'doonald show, the three and five PM news blocks with
those daily market updates, and as always the Retirement Clinic
dot com for more info. Jeff Call will have a
great weekend. Thanks you too, Paul, and we thank our
listeners for joining us each week on the Retirement Clinic.
This is WIS and Milwaukee.
Speaker 6 (40:09):
Creative Planning was ranked by The Wall Street Journal's Buyside
as the best independent IRA for comprehensive wealth management in
February twenty twenty six. This ranking is not based on
any specific time period. The preceding program is furnishd by
Creative Planning and SEC registered investment advisory firm. Creative Planning,
along with its affiliate United Capital Financial Advisors, currently manages
(40:30):
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 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
(40:51):
of investments involve varying degrees of risk, and there could
be no assurance that the future performance of any specific
investment or investment strategy, including those discussed on the show 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
(41:12):
planning dot com. Creative Planning, tax and legal are separate
entities that must be engaged independently.
It's news Talking eleven thirty wys and time for the
retirement Clinic. Welcome to the program today, hosted by Jeff
Kowaal with creative planning of course for many many years, heck,
many decades, the ko Wal Investment Group.
Speaker 2 (00:15):
Thirty seven years, a co investment group. About a year
and a half ago we moved to creative planting. Good morning, Paul,
by the way.
Speaker 1 (00:20):
Good morning Jeff. Great to have you here, you know,
in studio and doing the show between you your son
Aaron Spitzner. You've got so many talented people and you're
all now with creative planning.
Speaker 3 (00:34):
Absolutely.
Speaker 2 (00:35):
Yeah, we're especially proud of that because all twenty of
our employees came with us. It was a great transition.
And then just recently, Paul and I don't know if
if you know this creative planning was recently recognized by
The Wall Street Journal byside as the best RAA, which
is registered investment advisor for comprehensive wealth Management. The Best
(00:56):
Wall Street Journal highlights creative plannings, breaths of services, comprehensive
approach to financial planning, and high client satisfaction.
Speaker 1 (01:04):
This was all approved by compliance. By the way, Paul,
you know what. We congratulated you guys on last week's show.
Oh good good for the first time officially, we e
would have a little kind of a thank you at
the end of the show in a congrats to Creative
Planning because it's this is a Wall Street Journal.
Speaker 3 (01:20):
That's a big deal.
Speaker 1 (01:20):
Yeah, that's a big deal. Yeah, And Creative Planning is
a big deal. It's you have a lot of resources.
Speaker 2 (01:26):
Absolutely, and that's why we went to Careative Planning. Let
me just finish this so I will get in trouble
with compliance, noting that Creative Planning offers a more personalized
experience compared to other financial advisor firms, including pairing clients
with dedicated advisor. The distinction reflects that's the honor from
Wall Street Journal, reflects our commitment to providing our clients
(01:46):
with full integrated financial planning and services. Taylor to their
unique and evolving financial goals. On a personal note, Paul,
that's exactly why we were with Created Planning. It's turned
out to be just that way. Their philosophy about how
we love our clients, treat our clients, help our clients.
Speaker 3 (02:04):
I mean that's.
Speaker 2 (02:07):
As for new shows, Wise put our client's interest first.
So it's been seamless working with them, and we're very
proud that again that the Creative Planning was named as
the best RAA for comprehensive wals management by Wall Street Journal.
Speaker 3 (02:20):
Byside, we've got a busy show.
Speaker 1 (02:22):
Aaron Spitzer joining us after the first commercial break. Jeff,
you have some insights as to his topic.
Speaker 2 (02:28):
Oh yeah, it's got to talk about Ross all things
Roth and I think it's good. It's just a good
summary of what's going on, all aspects of the things
to look out for.
Speaker 3 (02:36):
And that's got to be a good topic.
Speaker 1 (02:38):
And you have a great topic to start the show.
But that being said, I want to give up your
phone number if people have questions, we'll give up the
locations you've got all around town. You're on the Dan
o'donald Show in the afternoon with the market updates. That's
Monday through Friday. This show has been on since two
thousand and one. The Retirement Clinic dot com for more
resources for information how to reach out the Retirement Clinic
(03:01):
dot com or Jeff. They can always pick up the
phone in.
Speaker 2 (03:04):
Call that's right, and you can schedule an appointment as well,
and that's most important to get started because we go
through all these topics. We go through all these ideas,
but unless you appointment to practice, they don't do you
any good. So do give our office a call again.
Producial advisors always put in our clients interrics first two
six two five two two four zero four zero, or
go to the Retirement Clinic dot.
Speaker 1 (03:24):
Com locations around town too, just so you know. They're
on Blue Mount Road and Brookfield in Delafield offices and
we're sine Port, Washington, Cape Coral, Florida, Phoenix license in
all fifty states. Very good, Paul, I've got it down.
Also create a planning dot com if you'd like to
check out that. Now, all of that, we get the
business stuff out of the way. You've got a topic
(03:44):
called the Silver Tsunami.
Speaker 2 (03:46):
There are two articles, and I'm often asked that you know,
are people working longer now or are they in general
retiring earlier?
Speaker 3 (03:54):
And I always say it depends.
Speaker 2 (03:58):
When I see a trend in one direction months later
due to health or economy or many other things to
trend reversus. But there are companies articles, one from Fox
Business and one from Forbes that talk about a different
trend going on.
Speaker 3 (04:17):
We pay attention to this.
Speaker 2 (04:19):
In our practice, we talk about with our business owner
clients about the importance of preparing so not only for them,
but also for the next generation that depends on them
for paychecks and the careers and things like that. This
was it's called the silver tsunami and the for Fox
(04:40):
Business that the article is titled Millions of jobs vulnerable.
Millions of jobs vulnerable as silver tsunami looms over small businesses,
Experts warn nearly half of US small business owners are
fifty five and older. Half of them, yet just fifty
four percent have a succes I should plan in place,
(05:01):
saying stage for a potential retirement shock that could leave
many companies vulnerable over the next decade.
Speaker 1 (05:07):
You work with a lot of small business owners, Jeff,
What defines a small business? Is it the number of employees?
Speaker 3 (05:13):
No, Typically, it's a volume of business that they do.
Speaker 2 (05:17):
And you know there's ultra small businesses and privately held businesses.
But small businesses employ more than sixty two million Americans
and accounts for roughly forty three percent of the GDP
small businesses do. That's according to US Small Business Administration.
Speaker 3 (05:33):
That's huge.
Speaker 2 (05:34):
Yeah, if it's significant share, that business instead of transitioning
to new leadership, companies could feel the effect. In other words,
instead of selling it. If it's just the business just
dies and the employees don't have their jobs. And again,
when you're talking about how many employees sixty three million Americans,
they're employed by small businesses, fifty four percent of them
(05:56):
don't have a plan in place. It says a silver tsunami.
A baby businessiness owners could dramatically reshape America a small
business landscape. They're huge creators of wealth, the most pure
version of the American dream. Many owners have spent decades
building their business on relationships and reputation, making success decisions
(06:17):
deeply personal. That's why a lot of business owners don't
go through the process of doing this because it's personal
to them. Who's gonna love their clients, Who's gonna love
their business as much as they did?
Speaker 1 (06:29):
What if they are the ones in many cases they
started the business. Yes, their heart, their soul, their their
sweat there, everything went into it, and a lot of
times the kids don't. We've talked about secession plans, kids
or kid employees, the family plan, you know, hand the
kid's gonna take it over. Well, that's not in place
if they don't want to, that's a problem. Jeff, that's right,
(06:51):
because that those numbers you're talking about are huge. Is
this enough to put up red flags like what's gonna
happen when the silver tsunami occurs?
Speaker 3 (06:57):
Yeah?
Speaker 2 (06:58):
Well that's that's what you two articles are addressing. And
it says one of the things that you can do,
and they won a small business owner. I think this
was in Kansas painting company Greenway Painting, and a key
employee took it over. He said, you know, Greenway was
pretty successful without having any advertising marketing. He liked the
(07:20):
idea that was pretty much one on one, so he
bought that particular business. But just now I'm gonna go
a little bit so thinking about it, there are usually
three parts of the silver tsunami poul One is the owners,
how do they get out? Two is the employees what
happens to them. Many acquiring companies want the talent, like
(07:41):
I mentioned earlier with creative Planning, they love to have
our employees. They were looking for good talent and we
had great employees. But some will also look to consolidate
and reduce the workforce and centralize everything. That's a different
way to look.
Speaker 1 (07:55):
At many mom and pops, they don't want to see
some of those employees are their best friends.
Speaker 2 (08:00):
Yes, they don't want to see him lose. They don't
want to see that. But sometimes if without planning, that's
what happens exactly. And third is the economy. Two point
three to three million businesses employ thirty two million people
and generate six and a half trillion of revenue. So
that's pretty significant. Going to the Forbes article now again
just a little bit different take on it again, approximately
(08:22):
two point three to three million baby boomers. The impact
of failing to find buyers will extend far beyond the
owner's retirement plans. Closures could mean job losses, weaker household incomes,
tighter local labor market, while the disappearance of family run
shops and service providers could push spending towards national chains
(08:46):
or online retailers the big box stores.
Speaker 3 (08:49):
So exit plans.
Speaker 2 (08:50):
So the Forbes article goes into a little bit more
detail about what you could do, and they say, by far,
the biggest barrier to successful sale is planning. Specific the
absence of a formal succession strategy. Most small business owners
are deeply tied to the owner and without documented processes.
(09:11):
I got to talk about that because we did this
years ago, and I think that's again I'm not saying
that we did everything right. We didn't, but we did
a lot of things right one and a lot of
it had to do with what Aaron pushed these things too,
document processes, documented repeatable processes.
Speaker 1 (09:29):
Aaron is Jeff's son, Just so we know, I'm sorry, Yeah, Eric,
and that so in your case the secession, your son
did stay in the business. Yeah, and you're still in there.
You're never going to stop working from what I can tell.
Speaker 2 (09:41):
I don't know God's plans are for me, but I'm
not planning I quick any type soon that's for you.
Speaker 1 (09:46):
You know that was one of my questions. I don't
want to stop you here because you got good stuff,
but real quickly, with your experience to retirement, Jeff, do
small business owners seem to work longer than the normal
corporate guy that works nine to five and just I'm
going to retire at sixty five? Oh?
Speaker 2 (10:01):
Absolutely? And these you know I'm even joking now. We
we merged with creative planning, and I'm saying I cut
down to forty five hours a week.
Speaker 3 (10:09):
So but by choice by choice.
Speaker 2 (10:12):
Again, we love the clients and love the employees, so
you put the time in and you feel a connection
with them. But again, document processes. That's repeatable that if
somebody buys you, they don't have to create the wheel
all over again. You already have processes in place, a
clear transition plan. In family owned companies, that challenge is
amplified by emotional dynamics, legacy pressure which you were talking about,
(10:36):
does is a kid ready for duty even want to
have it? Internal conflict and the next generation not wanting
to take the reins, or the old generation not want
to give them up.
Speaker 1 (10:46):
To give them up, that's a problem. Well, that's tough,
you know, depending on the situation. If you've owned a
business for thirty plus years and all of a sudden
you're going to hand over the keys one day and.
Speaker 2 (10:56):
Just walk away, that's a tough one. That's a transition.
It's always a almost always a transition. So when you
combine owner independency with the lack of buyer ready structure,
you end up installed transitions or too many cases, the
business closes when you owner exits. And I think you know,
if without proper planning, everybody loses the net. So you
(11:16):
have to have a formal, written succession plan in place.
Verbal arrangements don't work. You got to reduce it to
writing over a beer.
Speaker 1 (11:24):
I remember Johnny told me three years ago. Yeah, he
take off each step. Yeah, yeah, go buy it.
Speaker 3 (11:29):
Yeah.
Speaker 2 (11:29):
He said that I would be the key man too,
and that I was going to make X amount. So
we ran into one of those two.
Speaker 1 (11:35):
Anyway, it's got to be done the right way.
Speaker 3 (11:37):
Yes.
Speaker 2 (11:38):
Common gaps that contribute to this low level level of
preparedness include a lack of professional business valuation. Business valuation
leading to unrealistic price expectations. So you think it's worth X,
and somebody looks at it and said, you don't have
processes in place, you don't have key employees, you don't
have this or that. They said it's not worth that.
Speaker 1 (11:58):
It's not. Unlike the real estate industry where homeowners this
is a simple comparison, chef, but they always think their
house is worth more than it may sell on the market.
What's a home worth? Exactly what the open markets want
to pay for.
Speaker 3 (12:10):
Yeah, somebody's willing to pay for it, that's what it's worth.
Speaker 1 (12:13):
Yeah.
Speaker 2 (12:13):
Many owners also overlook critical legal and financial elements such
as the state taxes, by sell agreements, funding mechanisms such
as life insurance or structure transferred options. So for family businesses,
handing over the second generation leaders might seem the obvious solution,
but they inherit not just the business, but it's history,
relationships and expectations, and unlike founders, they must balance respectful
(12:38):
the established vision and the culture need to modernize. And
that's why I think again, just within our business, and
I don't want to dwell on that, but we modernize
that A lot of it was pushed by the younger
generation and next to Aaron and others in our firm
saying this is what we need to compete. And you
know I was. I gave up that part of it.
Speaker 1 (13:02):
You said, I love my FATX machine, I don't want
to go to email.
Speaker 3 (13:06):
No, I know I didn't do that, Jeff.
Speaker 1 (13:09):
I have been around a while, quite honestly. I remember
the transition from typewriter to computer, from going to email,
and now you know the social media and then AI.
It's a constantly changing technological world. Yeah, and that certainly
applies to every business.
Speaker 3 (13:26):
And you can either.
Speaker 2 (13:27):
Dig your heels in and say I'm not changing or say, Okay,
let's find somebody who can do this efficiently, effectively and
make sure everybody's on board with it.
Speaker 3 (13:35):
So that's the way to go.
Speaker 2 (13:36):
Research from the Exit Planning Institute has identified that nearly
fifty percent of business owners exit involuntarily, not by choice.
But do they call it the five d's divorce, disability,
disagreement with the partner, economic duress, and death.
Speaker 1 (13:54):
Death is the last one I knew the out of
five d's, that was one. That's when you don't plan.
If the owner falls over debt, of a heart attack,
what do you have a plan in place? What? What?
What happens to the business? Uh, those are a lot
of things that have to go right, Jeff. But if
you've got a plan, that's a good thing. It's just
like retirement. You don't have a retirement plan, you're just
(14:15):
what winging it.
Speaker 2 (14:16):
That's a great point, Paul, because everything goes more supposely.
You feel better about it too once you reduce it,
and you know you can have this idea of what
you want your business to look like in the transition.
But unless you reduce it to writing, it's not a plan.
Boomer sellers often prioritize legacy preservation over maximizing cash up front.
(14:36):
In other words, if you keep the legacy, if you
keep our great clients. At the same time, younger entrepreneurs
can bring fresh advantages, injecting modern technology AI, digital marketing
and operational efficiencies to unlock growth. Then these other often
traditional cash flow positive businesses. So good good businesses, good
cash flow and if you could modernize it with the
(14:58):
next generation. And the last thing they say is government
support for exit planning. There is government support available for
those looking to sell their businesses with effective elements including
small business administration, loans, flexibility for successions, employee stock ownership,
and other things. And they finally to wrap this up
(15:21):
pull exit planning is vile cold. One of the authors
of this says to small business owners nearing retirement is
to start with an objective valuation that identify the value,
emphasizes reducing owner dependence.
Speaker 3 (15:36):
That's another key thing.
Speaker 2 (15:38):
Strengthening leadership, streamlining financials and operations, standardizing costs, mitigating operational costs.
Says I ask every business owner, is this if you
couldn't work tomorrow in your business with still take care
of you and everyone who depends on it. And if
you sold it, would your life still feel meaningful if
(15:58):
either answers. You know, if you can answer yes to
that the time to go.
Speaker 1 (16:02):
That's a tough one, Jeff. A lot of people struggle
in retirement. A lot of people just the opposite. They
embrace it, they love it. We're talking all the here
about friends that we know, Jeff, that have recently stepped away.
I'm kind of in the middle. I have pulled back
here at WISM, but I'm doing all my weekend talk shows.
They keep me very busy, but I'm not at one
(16:22):
hundred percent like I was for thirty five years. So
my routine this year is different and I love it.
I was showing you pictures of my grandkids.
Speaker 3 (16:29):
Oh yeah, it's a.
Speaker 1 (16:31):
Different chapter of your life. But not everybody's. Everybody wants
to retire at a certain time. It could be fifty nine.
Some people want to work well into seventies.
Speaker 2 (16:39):
And for a lot of these even business owners can say, Okay,
I'll stay on for a while. I'll stay on for
six months, a year, two years the transition and to
help with the transition, and that can also help them
ease into retirement that they don't have full responsibility for
compliance issues, for employee, for benefits, for things like that.
But yet can can their expertise to the business and
(17:02):
how you were doing things, so it still can be
a valuable transition and still reduce the hours and not
have the same stress and the same responsibilities.
Speaker 1 (17:10):
It's called the silver tsunami. That's a great topic, Jeff.
Makes you just think about not just the baby boomers,
but pretty much that's what we've been talking about right
that generation. I'm I'm an exer. I missed it by
a year, the boomer. I was born in sixty six.
But here I am in partial retirement. Jeff. Maybe that's
the way to do it. Wean yourself off. Some people
(17:30):
do that. That's a if that is what you can do,
that's a luxury.
Speaker 2 (17:34):
But if we get nothing else out of this, I
think the key is that doesn't affect just you.
Speaker 3 (17:39):
It's it's the employees. And if you know, like in
our case.
Speaker 1 (17:42):
Well I thought you were going to see my wife.
Well yeah, your case business owner?
Speaker 3 (17:46):
Poor yeah, poor.
Speaker 1 (17:47):
Daughter, No kidding, that's why she want you to continue.
I don't you're gonna be home, how luge? You're watching
Band of Brothers again?
Speaker 3 (17:56):
Yeah?
Speaker 2 (17:56):
No, But employee affects the employees in the business as well.
You know, what are they going to do? Do they
have career possibilities, will they be kept on, will they
be dumped? And also the you know, the effect on
the economy. And I think with good planning, and again,
if there's emphasis on it like this, you at least
some awareness of it that you have to do something.
(18:16):
You have to put a plan in place and then
execute the plan.
Speaker 1 (18:19):
Let's been your four t Jeff since we started the
show in two thousand and one. The retirement clinic is
all about that, and if you work with a planner,
they're going to make you and talk you through these scenarios.
Are you ready, not just financially that's a big one,
but emotionally.
Speaker 2 (18:33):
Right absolutely, And you have to be prepared for that
moment when you do either leave your business or leave
your work, be prepared for that both financially and emotionally.
Speaker 1 (18:43):
If you have a retirement plan but you're unsure of it,
or you haven't blown the dust off of it. If
you don't have a retirement plan, if you've been putting
it on the back murder, If you want to reach
out for any questions here is the phone number two
six two five two two forty forty two six two
five to forty. The Retirement Clinic dot com is also
a great resource. Yes, we do podcast the show, so
(19:06):
all the programs are up there. Aaron Spitzer joining us
after the break, Jeff, He's going to talk about Roth's.
Speaker 3 (19:12):
All things Roths.
Speaker 2 (19:12):
Yeah, it's gonna be an interesting segment and Aaron spitzerlies
puts a good interesting twist on it as well, so
you're gonna enjoy it.
Speaker 1 (19:20):
One of the hosts of the show, He and shaun
Cy Wisensell, Aaron Cowle, yourself, Jeff Cole, all part of
the Retirement Clinic here on WIS and I'm Paul kron
Force will be right back.
Speaker 3 (19:31):
Stay tuned by.
Speaker 4 (19:32):
Good morning Jeff and Paul, and thanks for having me
on the show today. I thought this was a timely
article as we've had a little bit of volatility in
the market and that can present a good time for
a Roth conversion.
Speaker 5 (19:46):
So we will do a quick overview.
Speaker 4 (19:48):
This is an article titled Roth Conversions in a Nutshell,
which gives us again a brief overview of a few
things to look out for if you decide to.
Speaker 5 (19:57):
Convert to roth. This article begins.
Speaker 4 (20:00):
Roth conversions, if done right, can lower your tax bill
over your lifetime, but be careful. There are traps and
the unwary can easily get caught. Here are eight factors
to consider in deciding whether to convert all or part
of your IRA to a wroth. First one begins here,
(20:21):
present and future tax rates, so by way a background here,
a wroth conversion is a taxable event in the year
of this switch. So if you expect that your income
tax rate in retirement will be equal to or higher
than the rate of on conversion, switching to a Roth
can pay off again. The Roth conversion is just moving
(20:41):
money from your traditional IRA to a wroth IRA. From
there it grows tax free and you never pay tax
again again. Advantages of a wroth. Distributions of Wroth earnings
are tax free provided you are fifty nine and a
half or older and at least five years have passed
since you first put funds in Any roth IRA conversions
(21:05):
can also ease the pain of many nonspouse beneficiaries of
inherited roths who must empty the accounts within ten years.
The money is tax free to them. A multi year
strategy is number three, conversions and increments over time space
out to tax. It review your income and deductions each
(21:27):
year and determine the optimal amount of traditional IRA money
to convert, so the tax on the conversion doesn't move
you into a higher tax bracket or cause you to
lose out on tax breaks. So if you're thinking about
doing a conversion, perhaps you wait to the end of
the year, figure out how much room you have left
in the twelve percent tax bracket, and convert that amount
(21:47):
each year. Adjusted gross income is another one to look
out for here. Modified adjusted gross income is often used
to determine eligibility certain tax benefits or tax breaks, or
to determine if you are subject to serve taxes or surcharges.
(22:07):
For example, it's used to see if you qualify for
the six thousand dollars deduction for people sixty.
Speaker 5 (22:14):
Five or older that was part of the One Big
Beautiful Bill Act.
Speaker 4 (22:20):
Those deductions would phase out if you're modified adjusted gross
income gets above a certain level. You don't want a
Wroth conversion to cause you to lose deductions and credits,
so be mindful of those if you decide to convert.
Another one here is Medicare premiums. The additional income from
a WROTH conversion can trigger high Medicare premiums. Couples with
(22:43):
a twenty twenty three modified adjusted gross income over two
hundred and twelve thousand pay a monthly surcharge in twenty
twenty five for Parts B and D coverage on top
of their regular premiums. So when you do that conversion,
make sure you don't go over that limit, otherwise you
find yourself not only paying tax on the conversion, but
paying a premium for your Medicare. Paying the tax on
(23:08):
converted funds is another obvious one to look out for. Here,
a ROTH conversion is treated as taxable income or a
taxable distribution from your traditional IRA when those IRA funds
are contributed to the WROTH, so you may withhold tax
on that conversion. Withheld amount is treated though, as a
(23:31):
distribution to you on which you pay tax in addition
to the money you actually move to the WROTH. So
if you're looking for a way to pay for the conversion,
some people will withhold a part of their conversion to
pay the tax on it. However, then you're paying tax
on the money you're paying tax with so ideally, we
(23:53):
don't want to do that. If possible, you want to
pay the conversion tax with non IRA funds and then
do zero withholding on your conversion amount. IRA owners of
RMD age is another one to be aware of, depending
on your age. If you are of RMD age and
(24:15):
you must take your annual RMD from your traditional IRA
before doing a WROTH conversion for the year, and if
you have multiple traditional iras, you must withdraw your total
aggregate RMD amount for the year before doing any conversions.
And last, but not least, here, you cannot undo a
(24:37):
WROTH conversion. Prior to twenty eighteen, if you did a
Roth conversion, you could undo it by transferring the funds
back to your IRA. This made sense if the WROTH
lost money after the conversion.
Speaker 5 (24:51):
Now there is no redo.
Speaker 4 (24:52):
You're stuck with the tax bill, so quick recap. Be
aware of the present and future tax rates. Maybe convert
over multi years and manage your modified adjusted gross income
while you do it. Be aware of those MEDICARE premiums,
pay tax on the converted funds with outside money, and
be aware that you cannot undo the Wroth conversion. There's
(25:16):
a lot that we just unpacked here. If you're looking
for assistance, please give our office a call. We'd be
happy to assist you with the Wroth conversion or answer
any of your other questions. And now back to you,
Jeff and Paul, thank you.
Speaker 1 (25:30):
Great to hear from Aaron Spitzner back on the retirement clinic.
Jeff Kowal is here and I'm Paul cron Force. Any
thoughts to follow up about the Wroth.
Speaker 2 (25:38):
Sure, and that was good information from spitz But one
thing from ed Slot. Yes, Inherited Roth diaries do have
rm ds, but they depends. However, it's important to recognize
there are several variables in play. The context is needed.
Simply say that that rm ds apply does not explain
(26:00):
how the payout rules work. It's pretty complicated for roth iras,
but they are. Some of them do have inherited diaries
definitely do have requirement of distributions.
Speaker 3 (26:10):
So look at the rules for that.
Speaker 2 (26:12):
One other thing I want to touch on before we
go to a break, Paul. Oil prices have gone up
with his high as one hundred and eight dollars a barrel,
you know, and a lot of people say, well, we've
never seen this before, We've seen it lots of times before.
Jamie Batner, he's ahead of Investments that created planning, just
(26:34):
did a little three minute ten minute podcasts talking about
the state of the economy and said he went through
all the different times that the markets have gone down
because of war and dramatically rising oil prices, and then
there's been like fifteen of them over the last fifty years.
And he said on average, Now there's no guarantee is
(26:56):
this going to happen in the future, But on the
average the market up sp five hundreds, up twenty percent
a year after that. So it drops down, So it's
not there's not twenty percent from where it was before,
twenty percent from its low, but it does. It has
gone up. And again that's a disclaimer. Is there's no
guarantee that it'll happen again. Of course I metched it
in Kosovo that that the time. That was one time
(27:17):
where it did not come back up, where it was
down for a couple of years. After that, the markets
were down for a couple of years.
Speaker 1 (27:22):
Well, clearly we know why oil is up, Jeff, it's
the Strait, it's Iran, it's we're not you know, we
know why Is it temporary? How many weeks. Is this
going We don't have a crystal ball, but history would
say that at some point it's going to go down,
and gas will go back down, et cetera.
Speaker 2 (27:38):
Yeah, the markets are likely to go back up. The
economy shed ninety two thousand jobs last months, significantly missing
expectations and causing down the S and P five hundred
to fall. Oil prices will have more than to over
one hundred eight dollars a barrel. But don't make it,
especially if you're retired. There's no reason to make drastic
changes in your portfolio and think that this is likely
(28:02):
to continue, may continue for some time. There's and you know,
you don't know why a correction occurs. A correction, Whether
the market drops ten percent, that's usually a correction. Uh,
you won't know why, what triggers it, but that's normal
parts of the market, and it usually recovers.
Speaker 1 (28:19):
For it's been up and up and up, Jeff, you
get accustomed to that. Market's never continue in a straight line.
Speaker 3 (28:25):
They never go straight up.
Speaker 1 (28:26):
Yeah, they always go down and up and down and up.
And now with Iran and oil, I think you're exactly right.
The worst thing you can do, and Jeff I'm not
the expert, but you are is panic.
Speaker 3 (28:37):
Yeah, and give a react to it.
Speaker 2 (28:39):
If you have a good portfolio, if a good asset allocation,
that's what we believe in asset allocation, So you have
you would have some downside protection as the market goes down,
and if you pull out now, you won't participate when
the market does inevitably go back up.
Speaker 1 (28:53):
Whether it's a wrath response to Aaron Spitzer's great segment
or what Jeff is talking about. If you've got a question,
reach out to create a planning locally offices all over
town in Brookfield, right on Blue Mountain in Delafield. We'recine Port, Washington, Wisconsin.
Two six two five to two two forty forty is
the number coming up as the weekly Wealth Management and
(29:13):
Preservation segment. Jeff, give us a little.
Speaker 2 (29:16):
Adult kids are getting inherited as sooner? Why is that?
And is that a good thing? We'll talk about that.
Speaker 3 (29:21):
That's a good tease.
Speaker 1 (29:23):
And it's coming up next on the Retirement Clinic with
Jeff Kowal. I'm Paul crownforst On Wisn The Barnaked Ladies
and that song, Jeff means it's time for the Weekly
Wealth Management and Preservation Segment. By way of background, what's
this all about? We've been doing this for years.
Speaker 2 (29:41):
Sure this show us for everybody, this particular segment for
those with a million dollars or more. Once you accumulate
some wealth, how do you preserve it? Grow it, take
income from it, it passes down to your ears. That's
what this segment is about. A lot of times people say, well,
I don't have a million dollars or more. Well, you know,
if you think about it, if you have a four
to one k play and if you have other investments,
(30:01):
if you have life at church, if you have a home,
if you get an inheritance, if you win a lottery,
if you settle a lawsuit, if you sell your business, would.
Speaker 1 (30:11):
You include the equity in your home? You can?
Speaker 2 (30:14):
I mean the government certainly will. Okay, I've got to
look at how much is taxable?
Speaker 1 (30:17):
Yeah, if I've got an eight hundred thousand dollars home
and I've got one hundred thousand dollars balance on my mortgage,
is that seven hundred thousand to see when we.
Speaker 2 (30:25):
Look about it, mostly is for investable assets. But what
the government looks at as all your assets. So there's
always that question. I mean, what do you talk about.
The answer is yes, it's all the above. It all depends.
Once you to accumulate some wealth, the government's gonna find
any way to go. I should be careful with that.
They're gonna find a way to get at it if possible.
There was one thing, and I don't even know if
(30:45):
I should mention it, Ma'm Donnie was talking about doing
a fifty percent tax estate tax on the state's over
seven hundred and fifty thousand dollars.
Speaker 1 (30:54):
In New York, which is insane because everything in New
York is over that. Yeah, I mean, you have.
Speaker 2 (31:00):
A four to one k that's seven hour and fifty thousand,
and when you die, you give up half of that.
That's along with paid tax income tax anyway, that's a
totally different issue.
Speaker 1 (31:08):
But also just going back to the net worth, Jeff,
if you're a landlord and owned four homes, that's part
of your net.
Speaker 2 (31:14):
Absolutely, But a lot of times people don't think about
including those things in their net worth. And what do
you think if you have over a million dollars, if
you're of a divorce settlement, if you again, if you retire,
those are types of things. So this applies to a
lot of people. And this article was from Barons when
it just hit me because I see this with our clients,
(31:37):
I see this in our family. And so it says
adult kids are getting their inherited sooner, how parents are
doing it. Alice Canter is the author of this. It
says wealthy families are adopting proactive estate planning, including family
meetings and education. Also fifty three trillion dollars brillion, and
(32:00):
set the transfer between now and twenty forty five. Twenty
forty five. That's like way off in the future. That's
twenty years, just twenty years. Is it just because that
large generation of boomers? Yeah, generation, So they're all going
to die. Sorry, but you're going to die. We're all
going to die at right point. It's a die one
hundred percent, and inheritance will kick in. And that's a
(32:22):
lot of money. How much did you say?
Speaker 3 (32:24):
Fifty three trillion?
Speaker 2 (32:25):
Over the next twenty years, federal state tax exemption rose
to fifteen million dollars per person, thirty million for couples,
So a lot of that's going to be sheltered. Tax
free gifting has gone up each year to nineteen thousand dollars,
and a couple can gift thirty eight thousand dollars. But
as the young generation faces the biggest wealth transferred decades,
with baby boomers set to pass on fifty three children
(32:48):
fifty three trillion to your children, wealthy families are taking
a more proactive approach. It's less likely that somebody in
their seventies and eighties has just started these conversations. The
rise of family governance has boosted has been boosted by
Donald Trump's One Big Beautiful Bill, and this is according
to Barons, which was announced last April, took effect in January.
(33:12):
The bill increasing amount of wealth that can be transferred
on to future generations tax free. Now that's a state
tax free. There still might be income tax, especially if
it's IRA accounts, but a state tax free permanently setting
the twenty twenty six federal state tax exemption at fifteen
million dollars per person. The exemption goes to thirty million
(33:35):
dollars for married couple, so a married couple family can
transfer thirty million dollars to the kids or to anybody
without any estate taxes. Additionally, now the annual gifting can
be done tax free up to nineteen thousand dollars can
be gifted annually. Again, a husband and wife could give
thirty eight thousand dollars one big beautiful bill was a
big relief, according to Jared Pearce, he's a partner at
(33:58):
the Kansas based Family Off of Creative Planning. But now
there's more work to do. Point is to get kids
more engaged the days of the big reveal. This is
and you would see iven movies is the big reveal
of the reading of the will.
Speaker 1 (34:11):
Which is all dramatic Hollywood production. There really is no
reading of the will.
Speaker 3 (34:16):
No, no, that doesn't it works.
Speaker 2 (34:19):
Yeah, they've given way to road maps and increased transparency.
Parents are also giving away more money sooner as the
kids start having kids.
Speaker 1 (34:28):
So before they die.
Speaker 2 (34:29):
Yes, they want to support them. And I see that
happening more and more that they say I've got enough.
And this is where our planning comes in, especially with
Creative Planning. We do what's called a vision buility, which
is a cash flow projection. It shows you if your
money's going to last till age in ninety nine. So
once you've done that and see that, you're that you're
settled that you could do that. Then if you want
(34:50):
to gift money away at an earlier age, then it
makes sense to do it. But you got to make
sure that your plan is taken care of.
Speaker 1 (34:56):
The most beautiful thing about that is you're alive and
you get to see the pleasure your children get from.
Speaker 2 (35:02):
Your gad is such a great point, Paul, and I
often don't say that to you.
Speaker 1 (35:08):
Well, thank you. Maybe it's because your grandfather. But if
I just think of myself for the next ten twenty
years gifting my kids bunny, yeah, and then they get
to enjoy whatever it is, and you get to see it,
and I see it, Yep, It's like, wow, Okay, I
get the fruits of my labor are paying off.
Speaker 3 (35:23):
Yep.
Speaker 2 (35:24):
Parents are giving more away sooner as their kids start
having children. They want to support them on the housing
ladder or to pay tuition, pay for tuition. Still, parents
tend to shy away from sharing actual figures on the
amount to be inherited to prevent seeing their kids changing
their behaviors radically.
Speaker 1 (35:41):
That that's a tough one. You've talked about this that
that awkward approaching. Are we going to talk about like
a trust and estate plan with min and how do
you start that? Conversation.
Speaker 2 (35:50):
Yeah, well with mom and dad, you start that conversation
by saying, like our clients will say, uh, we've done
our plan, We've updated our wills and trust, We've done
you know, the powers of attorney all that. Bob and Dad,
have you done yours yet? Have you taken a look
at that? Is there something I can help you with?
That's that's the way to so you don't have to
ask about specific first, Could I retire Monday?
Speaker 1 (36:11):
You never want to assume or count on an inheritance,
right right, well, because your mom and dad may need
that money.
Speaker 2 (36:17):
We don't know, that's right, right, And that's why when
we do the creative creative plan, we would do the
cash flow of projections. What we try to do is
include variables like what happens if one of the partners
has to go in for long term care.
Speaker 3 (36:28):
Exactly and the last four years or long assistic.
Speaker 1 (36:30):
I mean, that's that's expensive stuff.
Speaker 2 (36:32):
It can be and you have to plan for it.
But if you plan for it and you still have
money left, then you can feel comfortable giving money away.
Revocable living trust, for instance, are seeing a surge of interest.
These trust allow for parents to liquidate assets from the trust
active actively management and amend the terms whenever they want.
Speaker 3 (36:50):
Those are revocable living trusts.
Speaker 2 (36:53):
And then if you want to minimize inheritance taxes, So
if you have assets over thirty million dollars, you want
to minimize a lot of times irrevocable life insurance trusts
come into play. You get the money out of your
state and may go to the next generation or bypass
the generation and upon. The people are increasingly considering directly
(37:13):
buying life insurance if there is a tax issue over that.
And for clients over with assets over fifteen million dollars,
they're willing to consider some of those older policies they
bought when they were kids and younger and have them
repurpose to pay for the estate taxes. Just to wrap
this up, Paul, a lot of people, even if they've
saved a million to ten million dollars in their lifetimes,
(37:35):
they still worry about running out of money in retirement.
You know, you got to make sure that you take
care of yourself first. If you're not spending it, your
kids and daughters in law will do it. So if
you're not spending it, they will, That's the old thing.
Dennis and Pekett Crow would say, if you can afford
to go first class and you don't, your kids will.
Speaker 1 (37:53):
It's a great common The owners of Cruis and two
are good friends of ours.
Speaker 3 (37:57):
Yeah, that that.
Speaker 1 (37:58):
Is so true. Plus you never like the future, Jeff,
if you extended hospital care big bills. Medical bills can
really destroy a plan. Yes, if you don't plan properly.
We talk about business plan, retirement plan, tax planning. Estate
planning is huge.
Speaker 2 (38:13):
Absolutely, and make sure that your plan is in place
before you start gifting away a lot of money. But
it is as you mentioned, it's nice to be able
to see your kids and Greg his benefit from your
life's work and see them enjoyed while you're still alive.
Speaker 1 (38:25):
Junior just bought a curve front with the money again, Yeah,
it was meant for something else, but okay, we get
the point. Really good information, Jeff, before we're done, and
we'll do this right after the break. Information how to
reach out to the good folks at Creative Planning and
congrats again a big recognition by the Wall Street Journal.
Speaker 2 (38:43):
The best Doria registered investment advisor, the best our a
for comprehensive wealth management, Wall Street Journal by side for
that creative planning, creative planning.
Speaker 3 (38:53):
That's good stuff.
Speaker 1 (38:54):
Jeff, and this show, The Retirement Clinic Saturdays at ten
o'clock will be right back with Jeff Kohal. I'm Paul Cronford.
Stay tuned before we leave today, Jeff Cowal. If people
have questions about this awesome retirement clinic that we just did,
and we talked everything right about the silver tsunami, we
talked about wrath, information on Aaron Spitzner.
Speaker 2 (39:15):
Giving away money early to your kids, Sarah. We covered
a lot of things. The move to creative planning expands
our ability to provide comprehensive wealth management, investment advisory services,
retirement planning services, all in the house, estate planning, insurance
or long term care, all those things, investment planning, retirement planning.
(39:36):
So we can help simplify your journey at the financial
wellness Visit the Retirement Clinic dot com or give us
a call two six two five two to forty forty
and do that. Schedule an appointment with us. Make sure
you get on your schedule right away.
Speaker 1 (39:48):
And of course next Saturday. Back every Saturday at ten
o'clock for this show Monday through Friday during the DAN
o'doonald show, the three and five PM news blocks with
those daily market updates, and as always the Retirement Clinic
dot com for more info. Jeff Call will have a
great weekend. Thanks you too, Paul, and we thank our
listeners for joining us each week on the Retirement Clinic.
This is WIS and Milwaukee.
Speaker 6 (40:09):
Creative Planning was ranked by The Wall Street Journal's Buyside
as the best independent IRA for comprehensive wealth management in
February twenty twenty six. This ranking is not based on
any specific time period. The preceding program is furnishd by
Creative Planning and SEC registered investment advisory firm. Creative Planning,
along with its affiliate United Capital Financial Advisors, currently manages
(40:30):
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 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
(40:51):
of investments involve varying degrees of risk, and there could
be no assurance that the future performance of any specific
investment or investment strategy, including those discussed on the show 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
(41:12):
planning dot com. Creative Planning, tax and legal are separate
entities that must be engaged independently.
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