May 2, 2026 • 41 mins
The Kowal team help plan your retirement
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Speaker 1 (00:00):
Welcome to the retirement Clinic right here in WISN. Saturday
Mornings with Creative Planning's Jeff Kohwal in studio hosting this
show all by yourself today.
Speaker 2 (00:12):
Well, Chauncey's gonna chiem in a little bit, but yes
I am. I'm here lonesome with I have to be
here with you is a big deal.
Speaker 1 (00:19):
I thank you.
Speaker 2 (00:20):
Especially the topic today, Oh, the first show's good. We
talked about real estate, and I know your family knows
a little bit about real estate, so we're gonna be
talking about that today.
Speaker 1 (00:29):
That's a good point. I'm also part of the Redefine
real Estate show at nine o'clock right before our show,
so you're right. The first topic, in fact, is about
boomers and their homes. Before we dive into that, you
mentioned Chauncey. We'll be joining us with a special segment
after the first break. Looking forward to hearing from Chauncey. Jeff.
(00:50):
Just some background. I mentioned Creative Planning, but for many,
many years, decades and decades, the Kowal Investment Group now thirty.
Speaker 2 (00:58):
Seven years and then a year and a half go
a little bit. Right around that time, we joined up
with Creative Planning. A great move and they've kept their
promises to us. They've kept their promises to our clients
and our team members moved to Creative Planning expands our
ability to provide comprehensive wealth management, investment advisory services, retirement
planning services, everything in the house investments, legal accounting, planning, insurance,
(01:22):
trust services, all under one roof. We were just named
by Wall Street journalists the number one firm for wealth
for total wealth planning that's got creative planning was by
the Wall Street journal So it's it's a great partnership
with them. Do call us two six two five to
two four zero four zero or go to Dretirement Clinic
(01:44):
dot com and see what we have to offer. And
again we our objectivelets to have everything under one roof,
and it's turned out to be a great partnership with them.
Speaker 1 (01:52):
Yeah, if you need so, the tax guys there, the
estate planning teams all everybody access to all of them. Yep,
that is just a good setup with Creative Planning. The
website The Retirement Clinic dot com has podcasts of this show.
Information on how to reach out Jeff. Just give up
the number. All the locations one phone number two six
two five to two forty forty. Those locations, Jeff, uh,
(02:15):
where they've been for many years in Brookfield, right on
Blue Mountain Road in Racine, Delafield, Port, Washington, Wisconsin, Cape Coral, Florida, Phoenix, Arizona.
We should mention this creative planning licensed in all fifty states, Jeff.
Speaker 3 (02:29):
That's right.
Speaker 2 (02:29):
And a lot of our clients over the years have moved,
and fortunately we are blessed that they have kept us
as their advisors even though they so Cole Investment were
licensed to twenty eight states. Now we're licensed in fifty
states with creative plannings. If you have a question or
if you want to set up an appoyment, and that's
the most important thing. If you want to set up
an appointment that don't put it off. We're already into May,
(02:53):
so four months are gone already. And if you've out
if that was one of your New Year's resolutions to
do something about you're planning and you still haven't done it,
we gotta get with it. So give our office a
call two six two five to forty forty or the
Retirement Clinic dot com.
Speaker 1 (03:07):
You mentioned New Year's resolutions. It's May second Quitter's Day,
as they call it, is usually around January eighth or ninth.
That's when people just quit whatever their resolution was. So absolutely,
do not put your retirement plan on a back burner.
If you don't have one, please reach out throughout the show.
We'll give out that phone number to get things started.
But this is called the retirement Clinic, Jeff, So we
(03:30):
talk about retirement obviously.
Speaker 2 (03:32):
That's right. I wanted to start today though, with a
Business Insider article. There is a shortage of real estate.
Boomers own a lot of it. I think over forty
one percent in some cases higher than that forty one
percent in the country, and for a while they blame
baby boomers for the shortage.
Speaker 1 (03:50):
Of real estate. They're not selling.
Speaker 2 (03:52):
We're not selling the houses are paid off, or we
have little mortgages. But you know, but then it'll switched
over to the millennial and those were not selling because
they didn't want to part with their two point nine
percent mortgages.
Speaker 1 (04:04):
Can't blame them, Jeff, I can't blame them. Rates are
in the high fives at best, right around six this weekend.
What would you sell?
Speaker 2 (04:11):
It took some of the heat off of us baby
boomers saying that they're okay, they're not selling. See they're
not selling either. But now it's coming back to us,
and that's what's going on with this boomer home dilemmas.
Speaker 1 (04:22):
And then they camember the silent generation. So my mom's
eighty five, she's in the silent generation. She's not a boomer.
I missed out by one year. I was born in
sixty six, so I am an exer. But you're right,
a lot of these people, including my own mom, they
want to stay in their house, Jeff. If they're able to, yep,
and they're healthy, they want to stay. And they are,
and you a lot of times they're equipped to aged place.
(04:45):
We can stay wider hallways, railings, things like that grand
bar by the shower. Yesiout getting graphic that aging in
place is a big term in the remodeling industry.
Speaker 2 (04:57):
Yeah, I bet, And so you can expect that to
con continue. Except the boomer home dilemma is millennials aren't
ready to inherit the homes they grew up in. That's
what this is about. That there's that there are going
to be a lot of homes people are dying, and
what are the what's the next generation going to do
(05:20):
with those homes, so the kids inherit the home. Yeah,
and it sounds like it's a they call it a dilemma.
For most people, it's a blessing. I mean, if you
get a house, what you do with is up to you.
Speaker 1 (05:32):
But the death.
Speaker 2 (05:33):
The article starts that the death of her father in
twenty nineteen came as a shock. She was just he
was just fifty eight. There's boom. And she was twenty eight,
an only child, and had already purchased a home in Austin,
and this was it was not in the same area.
She and her father hadn't been on speaking terms, so
this complicates things too.
Speaker 1 (05:53):
That makes it a little bit difficult.
Speaker 2 (05:55):
And she had no desire to move back into the home.
Weighted with memories. She briefly considered turning into a rental,
only to conclude that she had zero interest in becoming
a landlord.
Speaker 1 (06:09):
All she had.
Speaker 2 (06:09):
All she could do was sell them. But the forty
year old house was showing its age. She would have
to choose between pouring thousands of dollars into upgrades or
offloading the house for well below what it might be worth.
And they just say that all these questions start popping
up when you get a house, and millions. The article
goes on to say, millions of millennials we'll soon have
(06:31):
to wrestle with similar choices. The US is on the
precipice of a colossal wealth transfer, with the oldest baby
boomers set to turn eighty next year, as and you
mentioned mom part the silent generation. But as they find
spots in nursing home, move in with younger relatives, or die,
members of the one's largest generation will leave behind a
(06:53):
staggering heap of real estate. Aside from the ever present
family drama and the arcane text considerations. That's why I
want to address too. Baby boomers are staying in their
homes far longer than previous generations, which means many of
our homes are likely demanded the excessive renovations, and if
they're throwing into a weak housing market, demand is slow
(07:15):
or you know, but you don't know what's going to
happen at that particular time.
Speaker 1 (07:19):
Right now, demand is pretty high.
Speaker 4 (07:20):
I think there's a great topic, Jeff, because it hits
home for a lot of our listeners who are going
through this.
Speaker 1 (07:25):
Maybe you've got four or five, six siblings, and then
the squabble over well, it's we got to divide it
amongst ourselves, or one says we should keep it, one
wants to sell. Maybe that woman in the article should
feel blessed sheets. That's right, you're right.
Speaker 2 (07:42):
And one of the things that one of the real
estate people say in the article is, you know, most
people just don't like to talk about dying. So even
if they know who they're going to give it to
or what the they don't want to die. They don't
want to think about dying. Therefore, a lot of people
equate making plans for that, putting playing a will together
or trust arranging for us means are going to die,
(08:03):
then we'll talk about it.
Speaker 1 (08:04):
It's why we put off the state planning needs. You
want to talk about your own more.
Speaker 2 (08:07):
Talenty Yep, baby boomers dominate America's housing market. They owned
roughly nineteen point seven trillion dollars worth of real estate,
forty one percent of the country's total value, despite accounting
for only a fifth of the population of forty one
percent of the value, and they count for twenty percent
of population.
Speaker 1 (08:26):
And in the next decade or so, Jeff, I mean,
let's face it, all of these eighty year old boomers. Yeah,
they're going to be ninety and ten years Yeah, and
just so get ready, I guess for like you said,
transfer of wealth.
Speaker 2 (08:39):
Yeah, they did some projections on the next ten years
and then ten years after that. Boomers can afford to
win bidding morris and update, downsize collect rental properties because
they have all the money. This is kind of interesting.
Baby boomers gobbled up a line's share the market in
twenty twenty four. They account for forty two percent of
(09:00):
the buyers between July twenty twenty three and June of
twenty twenty four, according to National Realtors Association.
Speaker 1 (09:06):
In the country.
Speaker 2 (09:08):
Yeah, because they can go in, they can offer more
because they have money elsewhere, and they can you know,
they're selling them so they have the money.
Speaker 1 (09:14):
If they say in real estate, a cleaner offer to
probably Jeff, Yeah, maybe with no contingencies, just a clean
offer which will be then moved to the top of
the order.
Speaker 2 (09:24):
Boomers are a big reason Americans are stuck in place.
People are staying in their homes almost twice as long
as they used to. According to redfin analysis, forty baby
boomers have lived in their homes for at least twenty
years and another sixteen percent staying for ten to nineteen years,
So forty that's fifty six percent for ten years or longer.
(09:46):
Motivations for staying you know arranged, you know, like you
were talking about agent place between twenty here's the number
of us looking for between twenty twenty five and twenty
thirty five. So these first ten years, boomer's numbers are
projected to decline by twenty three percent, or fifteen point
six million people, according to analysis by a Harvard Jointe
(10:08):
study of housing between twenty thirty five and twenty forty five.
The next ten years, their numbers are expected to drop
by another forty seven percent, or twenty three point four
million people. So it's close to forty million people over
the next couple of years. Well, those are homeowners or
those are those are people of which many of those
(10:28):
are homeowners. Uh, you know they're looking at you know
how again, it's kind of gruesome, kind of think about
let's see how many people are going to die over
over the next twenty years. Well, I have a better
shot buying a home, you know in ten years or
twenty years that I do not. Well, you don't want
to wait that long either.
Speaker 1 (10:46):
Because that generation is dying off. I mean, that's the
morbid side to it, but it's factual, Jeff, I mean,
it's going to happen. There is a very big problem
in real estate right now, and that is the lack
of inventory. There's just not much on the market. And
there's reason for it.
Speaker 2 (11:00):
I mean, if you look at it, and we talk
about our clients, talk to our clients about this all
the time.
Speaker 1 (11:05):
If you.
Speaker 2 (11:07):
Sell your house now, you might be subject to capital
gains tax. I mean there is an exclusion of two
hundred and fifty thousand times too, maybe up to five
hundred thousand dollars exclusion, but some of these people who've
owned their home for twenty thirty years may have gains
way more than that. So the question is do I
hang on to it, or do I give it to
the kids, or do how do I gift it to them?
(11:29):
Or you know, if I sell it, I have to
pay capital gains if I die. There's a thing called
step up in basis. What that means is that if
you pay two undred thousand dollars for the house, it's
worth a million dollars if you sell it. If you
have an exclusion, you may have to pay taxes on
six hundred thousand dollars of that.
Speaker 1 (11:46):
That can be quite a head.
Speaker 2 (11:48):
Yeah, but if you die with it, you got to
step up a basis to a million dollars. So the
whoever inherits it does you're not paying that taxes. You
avoid that tax completely if you just wait till you die.
Speaker 1 (12:00):
I mean, let's just kind of go over the typical
American boomer, if they have an estate plan, Jeff, I
don't want to say most, but I'm guessing over fifty
percent they're gonna leave it to the kids the house
most right, most parents, if there's a good relationship there.
And let's just take three kids. There's three children, they're adults,
and they get this house. Their parents are now gone.
(12:23):
They have several options. Many of them just decide to
sell it, which is okay. Like the woman in with
the Austin house, maybe she can just sell it.
Speaker 2 (12:31):
If they if they if they died, just sell it.
Perfect because again you've taken a tax advantage, taken the
advantage of a step up and basis, and so your
gain will probably be minimal at that point. So yeah,
that's that's a clean way to do it.
Speaker 1 (12:45):
But then you can.
Speaker 2 (12:47):
Then you come across the three kids that you mentioned,
with three kids, and two of them want to keep it,
one wants to sell one once of money out, the
other two can't afford to buy them on. And then
you see the clean way I do is to sell it.
But nobody wi they can't we're selling it. So there
are a lot of complications with real estate, and that's
going to be a problem for the next several years.
(13:07):
Many parents want to want their kids to have the
house that many kids want to inherit the parents' house
until they hear about the property tax. That's another thing.
I mean, they say, okay, I'll take the house. It's
all free and clear, and we get and then you
find that the property taxes, you know, it can be
where from six thousand to maybe twenty five thousand dollars
thirty thousand dollars property taxes. Long they say, well, wait
(13:28):
a second, we still have to pay that. Well, yes, if.
Speaker 1 (13:32):
You're sitting on that house, Jeff, mom and dad are
now passed and it's empty, it's vacant. It's a ticking
time bomb in a way. You're paying property taxes. Break
it down by the month, by the day if you
want every day, you're paying money to keep that home. Right.
If it's up here, you got to do the snow.
If it's got a lawn, you got to maintain the lawn.
You got to pay for the wee energy's bill, and
(13:53):
you got to keep it warm in winter.
Speaker 2 (13:55):
That all costs money, absolutely, and then dealing with that
now and you're used to doing dealing with it, But
if somebody inherits it, especially if you have several people
inheriting it, that creates a problem. Who pays? What do
you split everything easily? Do we put everything electronic? How
do you handle that? Once somebody passes home and.
Speaker 1 (14:13):
The longer it sits, that could create another dilemma. Yeah,
you know, but buyers are gonna be like, well, what okay,
this this house smells funky? Why has it been vacant
for six months? There are questions and they are all legitimate.
Speaker 2 (14:24):
Questions, and that'll affect the price you get for it,
of course.
Speaker 1 (14:28):
Yeah. And do you want to remodel it? Some of
these homes are severely in need of remodeling, Jeff, and
they out they're not all ready to sell in the
conventional market. There are people that come in and flip
homes and buy them and fix them up. We have
a show on the weekend that does that as well. Jeff.
There's so many options. But again, you got to agree
with everybody. If you got five brothers and sisters, you
(14:49):
have to.
Speaker 2 (14:49):
This woman thinks she's got bad because he's got to
had a bad relationship.
Speaker 4 (14:53):
She's got because she gets the house and she can
decide what she wants. There were a house whatever, Ye,
she can sell it of course, all right. Bottom line. Uh,
even though it sounds great that boomers will die and
pass on the real estate, or that there's is regarding transfer,
it comes with issues, capital gains, tax issues, property tax issues.
(15:16):
Best thing with you know, how do you split it up?
The property if if it stays as a property, if
you have other siblings, if you have other people are
inheriting it, all those kinds of complications.
Speaker 1 (15:27):
What about the realistic logistical nightmare? Who's cleaning it out?
Speaker 2 (15:31):
Oh?
Speaker 1 (15:31):
Yeah, mom and dad, stuff is all in there yet? Yeah,
you know, not every death is anticipated. It You can
pop up and you get that phone call one day
and Mom's gone.
Speaker 2 (15:39):
We had an issue with in our family and it
was you know, dumpster had to come and clean out
the house.
Speaker 1 (15:44):
It was.
Speaker 2 (15:45):
It was a real mess. But dark companies that do that,
so you can't get help. But then you have to agree, Okay,
this is how much a cost if we do some
of it ourselves. If you did give it all to
the company, they're going to.
Speaker 1 (15:59):
Yeah, who gets the deer head over the fireplace? And
that happens? It does. It can be the littlest thing
sometimes that's what sparks the biggest debate is the littlest,
dumbest little item. Come on es right.
Speaker 2 (16:12):
So the best you can do is plan, reduce it
to writing and I it doesn't matter your state plan
can can spell it out, and you can do the
best you can spelling it out. That still might not
answer all your problems, because there's still tax issues while
you're living, there's tax issues when you pass away, there's control,
there's all those things that you have to be whatever.
Speaker 1 (16:33):
You've got to trust. You can designate the beneficiaries.
Speaker 2 (16:36):
Design but it doesn't and you can try to identify
what your intent is with that house. If you reduce
it to writing, does it's not fool proof because they
may disagree once you pass away and it goes to
who your errors are it's up to them to decide
what to do with it unless you know. But if
you say, let's say, as an example, you leave money
for maintenance, you say, here's ten years of property taxes maintenance,
(17:00):
So you have, you know, ten years that you have
to decide. You can fight about it for that period
of time, but at least if you want to keep it.
Whoever has money doesn't have money, doesn't make any difference.
It's all paid for for the next ten years. So
there are different things that you can do. Whether you
want to do that or not is up to you.
Speaker 1 (17:16):
And we how many times have we said on the
show on it regarding inheritance, Jeff, some people hear that
word and their eyes lit up. Oh, we're gonna get
a big, big windfall, right, Not that you want your
parents to pass, but everybody's going to die. We're all
going to pass at some point. But it can get
very sticky. Now you add a house into that equation,
right with the multiple houses and yeah, what.
Speaker 4 (17:40):
If there's two homes, Yeah, a condo in Florida or Arizona, Yeah,
and one up here, and then there might be a boat.
Speaker 2 (17:46):
And then you have people in different states what if
the kids live in different states and there's a boat involved,
And yes, you're shaking your head, it sounds like the
voice of experience.
Speaker 1 (17:57):
Well, my grandfather passed, my dad's dad. He had a
massive amount of hunting guns and some handguns. He was
just a hunter and avid fishermen. And yeah, there was
like squabbling over who gets said guns. Well there's only
a brother and sister. I can tell you this, and
the sister lived in another state and never talked to
mom and dad. So who do you think one of
(18:18):
the guns would be? My dad? Right?
Speaker 4 (18:19):
But yeah, there's there's little squabbles over things that seem
like this should be pretty easy, cut and dry.
Speaker 2 (18:25):
Yeah, it's not always like that. And you think it's
it's a problem with biggest states.
Speaker 1 (18:29):
It's not.
Speaker 2 (18:29):
It's probably small states biggest states. It doesn't make any difference.
It's human nature. It can divide families too with the arguments.
There's money on the line, Chances are somebody's going to
say I'm entitled to some of that or more than
you think I'm entitled to. So yeah, yeah, the best
thing to do is reduce it, right, do the best job.
You came with the plans that you your intentions, reduce
it to writing and then go from there.
Speaker 1 (18:50):
Now, you guys at Creative Planning do this stuff absolutely.
You all come up within a state plan as well
as a retirement plan. Yeah.
Speaker 2 (18:56):
And our estate planning team is really high outed. They
are great people, very efficient. They know their's stuff all
fifty states, so if you have some property here, some
property in another state, they know how to address all that.
We've been very pleased, very efficient with the way that
they handle the estate planning and the wills and trust
with our Creative Planning team.
Speaker 1 (19:18):
Jeff, one thing I know for sure, even though I'm
not an attorney, I'm not a real estate agent or broker,
I do know this. You don't want to get involved
with probate in the courts and then you're it's all
public record. It could take months and months. It can
cost thousands of dollars. If you're home, there may be
some probate, there may be some reasons to go through probate,
but not a lot. And I'm with you.
Speaker 2 (19:39):
I like the idea of setting up a trust, having
a private that can't be challenged. I like that idea
better so for a lot of people, but for some
that's not the case. It's not necessary.
Speaker 1 (19:48):
But I've got a lot of people listening in our
audience are in that boat. They've got the house, but
do you have an estate plan.
Speaker 2 (19:55):
There's that boat again.
Speaker 1 (19:57):
House and a boat. All right, Jeff. If you have
questions about this topic or any other, not just retirement
plans we alluded to his state plans and taxes impact
your retirement plan, your investments, everything, call Creative Planning at
two six two five two two forty forty. One of
your best team members, Chauncey Wisensell, who co hosted the
(20:18):
show last week with us. Yeah, he's going to come
back after the break with a very interesting topic. Stay tuned,
You've got the weekly Wealth Management Preservation.
Speaker 2 (20:27):
It's gonna be a good one too. We're going to
talk about average networth of baby boomers first and then
at the wealth manage we're going to talk about a
guy seventy one with a lot of money and he
can't relax.
Speaker 1 (20:39):
Oh, man, I have a lot of money. You would
just think, what do they all say? Money buy his happiness?
And then the contraryan to say, no, it doesn't, but
it doesn't.
Speaker 2 (20:49):
Talk about the psychological aspects of that as well.
Speaker 1 (20:51):
That's good stuff. Boomers are getting a lot of attention
on today's show. Yeah, you bet well, we deserve it.
We meaning you I missed out by one year. All right,
A lot more coming up. Jeff Cole is here on WYSN.
Check out Creative Planning dot com or again two six
two five two two forty forty if you've got a
question here in wis and the Retirement Clinic will be right.
Speaker 3 (21:13):
Back, are you, Jeff and Paul?
Speaker 5 (21:15):
What I'm kind of looking to talk about Today's an
article in the Wall Street Journal, and yes it relates
to retirement. But I think as I kind of go
through this, everyone will agree who's listening, You guys will
agree as well that maybe it kind of applies to
everyday life. But it's it's titled where does our free
time going? Retirement? Too often it's social media, And even
(21:38):
from the title, I'm sure you can kind of see
how it's going to just be overall us talking about
kind of what we're doing now is society and social
media and all that, and we'll try to avoid getting
too far into that, but it kind of has just
some stories and thoughts from a couple of different people
who are retired. Steve age sixty eight, Cairen age sixty nine, both.
Speaker 3 (21:58):
Retired a few few years ago.
Speaker 5 (22:00):
So some of this stuff from from Steve is they're
both going to be very relatable to all of us,
I'm sure. But Steve kind of talks about, you know,
just he's working on projects around the house, right and oftentimes,
you know, as every good self fixer upper does is
you go to the good old YouTube to.
Speaker 3 (22:18):
See how do I do this? How do I do that?
Speaker 5 (22:20):
You know, He kind of starts with talking about a
vacuum that was making a weird noise and he googled
that to find it, and next thing, you know, you
you find your video there and then you're onto the
next video on YouTube. In this video and that video.
Then he's telling the story one time it was nearly
eleven PM when he looked up from his phone and
the vacuum was unfixed at his workbench, which.
Speaker 3 (22:43):
I'm sure you know, we can we can all relate
to that.
Speaker 5 (22:48):
And Karen kind of talks about, you know, every morning
she would get up and she'd read the paper, you know,
physical copy of the paper now on her phone, kind
of have her coffee and her breakfast and say, you know,
she just get out her phone and she would catch
up on some stuff and and her husband would come
down the stairs and she quickly put her phone away, like, oh,
I'm just here, you know, doing doing my morning routine.
(23:09):
And you know, next thing, you know, it's it's been
an hour on your phone, right, You're just going through
Facebook or catching up on things whatever it may be,
you know, or you're you're even looking at your hobbies,
you know, for myself, you know, videos of fishing or whatever.
Maybe you know, Karen's talking about, you know, these quilting
pages that she's on, and then next thing, you know,
(23:31):
she kind of goes about her day, and Steve talks
about kind of doing the same thing. Right You're you're
out with friends, you're fixing stuff around the house, whatever
it may be. But then you kind of have that
downtime and you just you almost like we instinctually kind
of reach for our phones, right at least I know
I do. I'll confess that. I'm sure a lot of
other people do, you know, And it's it's something to
(23:52):
almost just kind of be conscious of to try to
break some of those habits of oh, you know, I'm
sitting down on the couch to watch the show, or
myself if maybe I'm at working eating lunch, I'm just
gonna check my phone quick, right, and maybe I'm scrolling
on Instagram or TikTok or face whatever it may be. Right,
you're just watching videos and time is just burning away,
and next thing you know, it's like, oh my gosh,
(24:13):
how much time has passed? You know, And Karen kind
of talks about that before bed. You know, she'll get in,
she'll get in bed and she'll catch up maybe on
her her.
Speaker 3 (24:22):
Quilting Facebook group or something like that.
Speaker 5 (24:24):
And then she's talking about going on excuse me, going
on Instagram and looking at reels and you see a
little boy and his dad cooking dinner. You know, she said, oh,
it's just irresistible. And you know, there's a young British
boy collecting eggs talking about the differences of different chicken breeds,
which in the most delightful way, which leads for an
(24:46):
update on a woman who is working to get out
of her abusive marriage, and she's almost free and you're
rooting for her right and it's just it's all these
things and it just really kind of sucks you when
and a couple of the tricks that Careen kind of
kind of talked about. Number one is, you know, if
you need to charge your phone or maybe put it down,
(25:06):
just maybe do it upstairs or put it in the
bedroom right somewhere far away from you, you know, where
you can't can't get quick access to it, although I
know we can all still kind of hear calling and
you almost feel like a little naked without your phone
on you, right. I know the other day I was
help grocery shopping with with my girlfriend and you know,
I need need to call my brother about something quick,
(25:28):
and I'm like, oh, my phone's in my truck, and
I just felt so naked without it.
Speaker 3 (25:31):
So I know, we all kind of kind.
Speaker 1 (25:34):
Of feel that.
Speaker 5 (25:37):
So and it's so then it just kind of goes
through to a psychologist and NPR last week and suggested
striving for willpower may not always be the answer. What
looks like willpower is often actually good habits and good systems.
She said, people who succeed aren't constantly resisting temptation. They're
structuring their lives, so temptation doesn't show up as often.
(25:57):
So you know, whether it's putting your phone away for
a little while somewhere that you can't get quick access
to it, or just trying to limit your screen time, right,
I know you can all you get an update or
you can see it on there every every week. Right, Oh,
as I one on my phone, you know, less less
this week. But it's just just good to kind of
give yourself some structure, put the phone away and you know,
(26:20):
get back to kind of doing get back to doing
the things that you enjoy that that don't necessarily involve
your phone. Right, So, whether it's your hobbies of golfing
or maybe you're just doing yard work, just.
Speaker 3 (26:32):
Leave the phone in the house.
Speaker 5 (26:34):
Although sometimes it's enjoyable to listen to podcasts, so you
do that different stuff. But it's it's good to just
kind of get away from the phone, get away from
social media, doing yourself get sucked in, you know, spend
your time doing things that you enjoy, you know, different
like I said, different activities or hobbies, and spending time
with people you enjoy you know often what kind of
gives us that structure where hey, my break is over,
(26:54):
I need to put down my phone and get back
to work. Or you know, someone calls you or your
boss comes in so you kind of have to try
to give yourself more that structure and retirement as well
with different activities and things like that.
Speaker 3 (27:06):
So hopefully that's helpful.
Speaker 5 (27:07):
Hopefully that can help some of us put our phones
down for a little bit and enjoy life.
Speaker 3 (27:11):
And with that, I'll throw it back to you, Jeff
and Paul. All.
Speaker 1 (27:14):
Was great to hear from Chauncey wisen Sell on the
Retirement Clinic. Jeff Cowall some thoughts, and we mentioned boomers
in the first segment with regard to real estate.
Speaker 2 (27:22):
Yeah, I just wanted to talk to There was an
Investipedia article out recently I talked about the average networth
of baby boomers revealed how does your wealth compare? Baby
boomers of a higher net worth than younger generations one
point six million baby boomers on average, they control more
than half of the US household wealth eighty eight and
(27:43):
they have trillion dollars.
Speaker 1 (27:45):
Still. I mean, you think the boomers, you think, wow,
they're getting old, right, the boomers are aging. Oh, that's uh,
that's rather dominating.
Speaker 2 (27:53):
It's interesting that they give a little background to boomers
entered adulthood. During the post World War two economic expansion,
housing was more affordable. Many either had a guaranteed employer
funded pension or started investing to take advantage of decades
of stock gains. Now you have to explain to kids
what pension is.
Speaker 1 (28:11):
It is, what's a pension? Yeah, for a.
Speaker 2 (28:13):
Lot of people still with these advantages, the median figure
can be misleading. One thing that I thought was pretty
interesting is that when you talk about average net worth,
they broke it down by age group. So the youngest
baby boomers fifty five to sixty four one point five
to six million average net worth median of net worth
(28:34):
of three or sixty four thousand, sixty five to seventy
four hit a high of one point seven eight million
DAN drops down to one point sixty two million. So
you know, how do you how does net work that's
the net of assets minus reliabilities climbs with age that
(28:55):
falls late in life, interest, compound, interest, build savings. Earning
his peak major pences like mortgages, children often disappear, but
by their sixties boomers own a home outright, all that stuff.
But then what happens is that they have to start
dipping into their for help for insurance, for health issues,
(29:16):
all those types of things. All of a sudden they
have to start spending down those funds. And that's why
you see a drop in it after age sixty five.
So from from after seventy five the net worth drops again.
So it drops. It goes from one point five to
six million, fifty five to sixty four sixty five to
seventy four is one point seven eight million net worth
(29:38):
seventy five plus one point sixty two million net worth.
Speaker 1 (29:41):
They're dipping into that pot of money.
Speaker 2 (29:43):
You know, they're gonna have to start dipping into it
after eight seventy five.
Speaker 1 (29:47):
This is why we save. This is why we want
you to save, so that you have that money. Yeah,
because you may need it.
Speaker 2 (29:53):
Yep, you plan for it. And that's again the reason
why you don't plan for their inheritance because if they
live too long, they may be eating up that your inheritance,
so don't count on it. Make sure you plan for
your own well being, your own retirement, so that you're
not counting on any inheritance.
Speaker 1 (30:11):
That's generfact, that's perfect.
Speaker 4 (30:12):
Then if there is an inheritance, Jeff, it's just all plus,
it's all a bonus, that's right, But never planing one
because you just may not be.
Speaker 1 (30:20):
There when you expect it to be there. Good stuff
as always with Chauncey and Jeff. After this break, we
get to the weekly Wealth Management and Preservation segment. Is
that on boomers as well? It's about the boomer. He's
seventy one years that's right, that's right, he's got he's
got money, but he's not happy. Is that right?
Speaker 2 (30:37):
Yeah, he can't relax.
Speaker 1 (30:39):
I mean I want a problem they have. Okay, we'll
be back after a quick break two six two five
two two. Reach out via web create a Planning dot com,
the Retirement Clinic dot com. Both websites are excellent here
in WISN. We'll be back after this. Jeff Cole and
this segment, Welcome back to Bare Naked Ladies. I joked
(31:00):
about this was it last week because we said, instead
of a million dollars, million and a half, million and
a half is kind of what you want to shoot
for if you're an American and you want to retire comfortably.
One point five million. We play this song if I
had a million dollars, face it. They're not going back
in the studio to recut this song for us. Yeah,
just for us?
Speaker 2 (31:19):
Yeah, you're right, Well, this segment is for every show,
us for everybody, This particular segment for those with a
million dollars or more. Once you've accumulated some wealth like
a million dollars, how do you preserve it? Grow it,
take income from it, and pass it on to your airs?
And that's what this segment is about. And a lot
of people think, well, I don't have a million dollars.
But if you look at your four one K or
(31:40):
other iras, investments that you have, real estate, if you
sold a business, if you settle a lawsuit, if you
win the lottery, all different kinds of ways, you can
have more than a million dollars. Dear, Quenton is a
a It's in market Watch whereas answers financial questions. Quentin
and this guy wrote in and we see this all
(32:00):
the time, and I'm going to talk about the psychological
aspects of it because it hits all the time. But
he says, I'm worried about my cash flow. I'm seventy
one with two point seven million in an IRA, four
hundred and seventy thousand in stocks. He says, why can't
I relax?
Speaker 1 (32:15):
So he's got over three million dollars in six Yes, yes,
all right, He says, Dear Quentina, I'm healthy, active, seventy
one year old widower, and I fully retired last May.
Speaker 2 (32:25):
I have an annual pinch of fifty three thousand because
he was in law enforcement, so fifty three thousand a year,
a penchon fifty two thousand year in social security because
he waited till seventy.
Speaker 1 (32:36):
Over one hundred grand years. Still coming in.
Speaker 2 (32:39):
Little extra money coming in a widower two point seven million.
Speaker 1 (32:44):
He says.
Speaker 2 (32:45):
I'll start taking required minimum distributions at seventy three and
twenty twenty seven, and that's going to be another one
hundred thousand that he's going to have to take out.
So we'll have two hundred ten thousand dollars just to
income from those two. My home is paid for estimated
seven hundred thousand. My state plan is finalized, He says,
I should be fine once the rm D starts. So
(33:05):
why am I worried about cash flow during my retirement years?
What am I missing? A couple of things that I
looked at before. I'll go to the way that Quentin answered.
Speaker 3 (33:15):
This.
Speaker 2 (33:15):
One thing he doesn't mention is his lifestyle. It sounds
like if you see as a retired law enforcement, and
that he's not he's not a big spender. They tend
not to be. They're not buying multiple homes, are not
doing world traveling. He could be now he's seventy one,
he's got the cold he was raised, So maybe I
(33:38):
could be wrong in this. But one thing he doesn't
mention is his lifestyle and what he spends. Second thing
is that does he have a family, Does he have kids?
Is he saving for an inheritance? Is that why he's
a little hesitant. But Paul, we see this all the time.
It's baffling to many readers. It's it seems unnatural because
it seems like you you have, you're doing just great.
(34:01):
They are what you got, where you are today and
now moving into a cumulation phase. So you went from
a cumulation phase to a distribution phase. For a lot
of people, that's hard. We see it every day with
our clients. But they say, you know, you're in the
mode that you should be saving all the time, not spending.
So then when you stop working and you're not saving,
(34:24):
you feel guilty about I'm just.
Speaker 4 (34:26):
Gonna say, you feel guilty. You feel something like I'm
doing something wrong.
Speaker 1 (34:29):
Yep. And because you're out of that routine that you
were in for decades and decades.
Speaker 2 (34:34):
But there's a whole rafts of studies showing that retirees
your age and older are afraid to touch the retirement savings.
Having those savings is one thing that gives them peace
of mind. Spending them may not. Some may be spending
as little as possible to leave behind a larger sum
for their loved ones or fill in traffic topic pursuits,
but in many cases, because they aren't sure how to
(34:55):
determine a suitable withdrawal rate that accounts for their total lifespan,
some of us to worry too much.
Speaker 1 (35:01):
Yeah, I think so. I think there's so much information
on the phone. The markets are up and down. You
can you know, you turn on the news. That's twenty
four hours a day. There's always something breaking news. It's
a little bit to some unsettling.
Speaker 2 (35:13):
That's right. And if it bleeds, it leads. If it's
bad news, that's what. Yeah, that's what you hear. You
don't necessarily hear the good news, and there's no The
Quintin goes on to say that the earliers may be
filled with travel and other big ticket items that require
more substantial withdrawals. As yours go on, You're probably likely
to travel less. Healthcare expenses might go up. And he says,
(35:35):
just digging into your financials, what I may missing, You're
not missing anything, he says, your your activities, your anxieties.
I can't help feeling that there are more anxieties than
real world concerns.
Speaker 1 (35:49):
If you took a one.
Speaker 2 (35:49):
Hundred thousand from your IRA with one hundred and ten
thousand pensions, that's the worst case scenario. There's even if
you have no and this is I thought a great point.
If you have no growth in your stocks, none, Now
you just take one hundred thousand dollars from your company.
He stays flat, Right, stays flat, says exactly, And you
take out one hundred thousand dollars a year, you won't
(36:10):
run out of money at age ninety eight, he should,
You won't run out of money till age ninety eight,
And he's not seventy one.
Speaker 1 (36:18):
I mean, and if you just it's twenty eight years yet.
Speaker 2 (36:20):
He says, it's at three percent rate of more, you'll
be well over one hundred before you run out. What
I want to say is that you've reduced it to
writing with your state planning, why not do the same
with your retirement planning? Again, creative planning, we call it
a vision create a plan calls a vision builder. It's
a cash flow projection. But you can factor things in
like new cars. You can factor things in like travel
(36:42):
every year. You can factor things like long term care, home,
health care, assisted living, nursing home. So if you plug
all those things in and say this is the worst
case scenario and you still have money left, again, it
helps to reduce the writing. It sounds like he's done
a lot of other things, right, right, reduce a lot
of other things to writing.
Speaker 4 (37:01):
When he so again he's a retired police officer. Yeah,
they see, and we don't know his law enforcement career. Okay,
well whatever that is, right, nice.
Speaker 2 (37:10):
Pension, nice pension.
Speaker 1 (37:11):
Maybe just you know the way we are a lot
of boomers talk about the Great Depression. Growing up as
kids was saving everything. Bread crumbs were made into food, right,
We just we had to do everything we could because
we were broke and there wasn't money. Maybe that's just
ingrained in some people's lifestyle. Yeah, how you were raised
grow up like that?
Speaker 2 (37:30):
I mean, I mean we even in our family Jane,
and I still clip couponds, digital coupons. It's like there's
no prestige and overpaid.
Speaker 1 (37:40):
There's nothing wrong with that, Joe. Yeah.
Speaker 4 (37:44):
And the fact that you were willing to admit that
on the most radio station in Wisconsin. I think is
awesome that if you're clipping coupon, you don't have to.
Speaker 2 (37:52):
Right, we absolutely do not have to. But you know
it's just built into us. And again, no prestige and
pay in overpaying. If it's there, why that.
Speaker 1 (38:00):
Let me let me just bene and we got a
break here. But I bet you you were raised your
parents did this.
Speaker 4 (38:04):
Oh yeah, of course Coopin's clip coupons, and Wisconsin is
kind of known for its frugalness.
Speaker 1 (38:12):
Maybe with some folks in a good way. I think.
I think it's okay. Yep, we once we want to
save us.
Speaker 2 (38:18):
I think kids will feel the same way about that.
Speaker 1 (38:21):
But we never know. Ye this guy can relax. You know,
he's as a law enforcement guy, did his job. Now
he's retired. That's the time you want to relax. Yep.
Stay busy. You got to stay busy too. Yep. Have
a hobby or volunteer or something like that. That's good stuff.
And if you do your job and you save, you've
got that much money. That's the whole point, so that
you can enjoy your retirement with Jeff Cowal and w
(38:43):
I said, create a planning dot com, the Retirement Clinic
dot com or questions, go right to this number two
six two five two two forty and ask for Chauncey
and ask for Chauncey. If you forget wise and sell
his last name, Chauncey will do just fine. Yeah, as
he asked for Chauncey. He was on the show quite often.
He hosted it last week and we heard from him today.
(39:03):
We'll be right back. Stay tuned for more of the
Retirement Clinic. All right, Jeff Cole. In the final minute
of today's three Retirement Clinic, we mentioned well Chauncey, reach out,
ask for an advisor. We talked about boomer is a
lot today and if you don't have an estate plan,
a retirement plan, quit putting it off, Quit.
Speaker 2 (39:21):
Putting it off, make plans for it. Reduce it to
writing and again, so avoid confusion, avoid heartache, reduce it
to writing for yourself. For your beneficiaries, they'll be very
happy and glad. That you did that, But give our
office call two six, ask for Chauncey or go to
the Retirement Clinic dot com and do set up a deployment.
Don't procrastinate any longer. We're already well into twenty twenty six.
Speaker 1 (39:44):
Monday through Friday. During the Dan O'donnald's show in the afternoon,
that three and five pm news block feature those daily
market updates, what's going on in the market that day,
done by your staff.
Speaker 2 (39:55):
That's right, our team does those. Gives you an idea
of what's driving the market up or down the particular day.
Give the sp five hundred Dow Nasdaq all in one
minute Dani o'donald's show three o'clock and five o'clock news blocks.
Speaker 1 (40:09):
A daily fluctuation of the price of oil. I mean
every day absolutely updown with iran. Oh my goodness. You
guys do a great job in those reports. And then
of course we'ren't back and we're here every Saturday at
ten o'clock on the Retirement Clinic located in Port Washington,
Dellafield Re' scene on Bluemont Road right in Brookfield. Then
of course Cape Coral, Florida, Phoenix license in all fifty states.
(40:31):
Creative Planning Jeff Cowall, enjoy the rest of your weekend.
Thanks you too, Paul, and we'll see you back next Saturday,
ten o'clock on the Retirement Clinic on WYS Milwaukee.
Speaker 4 (40:40):
The preceding program is furnished by Creative Planning, a SEC
registered investment advisory firm.
Speaker 1 (40:45):
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.
Speaker 4 (40:55):
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.
Speaker 2 (41:04):
The show is designed to be informational in nature and
does not constitute investment, tax or legal advice.
Speaker 1 (41:09):
Different types of investments involve varying degrees of risk, and
there can be no assurance that the.
Speaker 2 (41:13):
Future performance of any specific investment or investment strategy, including
those discussed on the show, will be profitable or equal
any historical performance levels.
Speaker 1 (41:22):
The information contained herein has been obtained from sources deemed
reliable but is not guaranteed.
Speaker 2 (41:28):
If you would like our help, request to speak to
an advisor by going to creative planning dot com.
Speaker 4 (41:32):
Creative Planning, tax, and legal are separate entities that must
be engaged independently.
Welcome to the retirement Clinic right here in WISN. Saturday
Mornings with Creative Planning's Jeff Kohwal in studio hosting this
show all by yourself today.
Speaker 2 (00:12):
Well, Chauncey's gonna chiem in a little bit, but yes
I am. I'm here lonesome with I have to be
here with you is a big deal.
Speaker 1 (00:19):
I thank you.
Speaker 2 (00:20):
Especially the topic today, Oh, the first show's good. We
talked about real estate, and I know your family knows
a little bit about real estate, so we're gonna be
talking about that today.
Speaker 1 (00:29):
That's a good point. I'm also part of the Redefine
real Estate show at nine o'clock right before our show,
so you're right. The first topic, in fact, is about
boomers and their homes. Before we dive into that, you
mentioned Chauncey. We'll be joining us with a special segment
after the first break. Looking forward to hearing from Chauncey. Jeff.
(00:50):
Just some background. I mentioned Creative Planning, but for many,
many years, decades and decades, the Kowal Investment Group now thirty.
Speaker 2 (00:58):
Seven years and then a year and a half go
a little bit. Right around that time, we joined up
with Creative Planning. A great move and they've kept their
promises to us. They've kept their promises to our clients
and our team members moved to Creative Planning expands our
ability to provide comprehensive wealth management, investment advisory services, retirement
planning services, everything in the house investments, legal accounting, planning, insurance,
(01:22):
trust services, all under one roof. We were just named
by Wall Street journalists the number one firm for wealth
for total wealth planning that's got creative planning was by
the Wall Street journal So it's it's a great partnership
with them. Do call us two six two five to
two four zero four zero or go to Dretirement Clinic
(01:44):
dot com and see what we have to offer. And
again we our objectivelets to have everything under one roof,
and it's turned out to be a great partnership with them.
Speaker 1 (01:52):
Yeah, if you need so, the tax guys there, the
estate planning teams all everybody access to all of them. Yep,
that is just a good setup with Creative Planning. The
website The Retirement Clinic dot com has podcasts of this show.
Information on how to reach out Jeff. Just give up
the number. All the locations one phone number two six
two five to two forty forty. Those locations, Jeff, uh,
(02:15):
where they've been for many years in Brookfield, right on
Blue Mountain Road in Racine, Delafield, Port, Washington, Wisconsin, Cape Coral, Florida, Phoenix, Arizona.
We should mention this creative planning licensed in all fifty states, Jeff.
Speaker 3 (02:29):
That's right.
Speaker 2 (02:29):
And a lot of our clients over the years have moved,
and fortunately we are blessed that they have kept us
as their advisors even though they so Cole Investment were
licensed to twenty eight states. Now we're licensed in fifty
states with creative plannings. If you have a question or
if you want to set up an appoyment, and that's
the most important thing. If you want to set up
an appointment that don't put it off. We're already into May,
(02:53):
so four months are gone already. And if you've out
if that was one of your New Year's resolutions to
do something about you're planning and you still haven't done it,
we gotta get with it. So give our office a
call two six two five to forty forty or the
Retirement Clinic dot com.
Speaker 1 (03:07):
You mentioned New Year's resolutions. It's May second Quitter's Day,
as they call it, is usually around January eighth or ninth.
That's when people just quit whatever their resolution was. So absolutely,
do not put your retirement plan on a back burner.
If you don't have one, please reach out throughout the show.
We'll give out that phone number to get things started.
But this is called the retirement Clinic, Jeff, So we
(03:30):
talk about retirement obviously.
Speaker 2 (03:32):
That's right. I wanted to start today though, with a
Business Insider article. There is a shortage of real estate.
Boomers own a lot of it. I think over forty
one percent in some cases higher than that forty one
percent in the country, and for a while they blame
baby boomers for the shortage.
Speaker 1 (03:50):
Of real estate. They're not selling.
Speaker 2 (03:52):
We're not selling the houses are paid off, or we
have little mortgages. But you know, but then it'll switched
over to the millennial and those were not selling because
they didn't want to part with their two point nine
percent mortgages.
Speaker 1 (04:04):
Can't blame them, Jeff, I can't blame them. Rates are
in the high fives at best, right around six this weekend.
What would you sell?
Speaker 2 (04:11):
It took some of the heat off of us baby
boomers saying that they're okay, they're not selling. See they're
not selling either. But now it's coming back to us,
and that's what's going on with this boomer home dilemmas.
Speaker 1 (04:22):
And then they camember the silent generation. So my mom's
eighty five, she's in the silent generation. She's not a boomer.
I missed out by one year. I was born in
sixty six, so I am an exer. But you're right,
a lot of these people, including my own mom, they
want to stay in their house, Jeff. If they're able to, yep,
and they're healthy, they want to stay. And they are,
and you a lot of times they're equipped to aged place.
(04:45):
We can stay wider hallways, railings, things like that grand
bar by the shower. Yesiout getting graphic that aging in
place is a big term in the remodeling industry.
Speaker 2 (04:57):
Yeah, I bet, And so you can expect that to
con continue. Except the boomer home dilemma is millennials aren't
ready to inherit the homes they grew up in. That's
what this is about. That there's that there are going
to be a lot of homes people are dying, and
what are the what's the next generation going to do
(05:20):
with those homes, so the kids inherit the home. Yeah,
and it sounds like it's a they call it a dilemma.
For most people, it's a blessing. I mean, if you
get a house, what you do with is up to you.
Speaker 1 (05:32):
But the death.
Speaker 2 (05:33):
The article starts that the death of her father in
twenty nineteen came as a shock. She was just he
was just fifty eight. There's boom. And she was twenty eight,
an only child, and had already purchased a home in Austin,
and this was it was not in the same area.
She and her father hadn't been on speaking terms, so
this complicates things too.
Speaker 1 (05:53):
That makes it a little bit difficult.
Speaker 2 (05:55):
And she had no desire to move back into the home.
Weighted with memories. She briefly considered turning into a rental,
only to conclude that she had zero interest in becoming
a landlord.
Speaker 1 (06:09):
All she had.
Speaker 2 (06:09):
All she could do was sell them. But the forty
year old house was showing its age. She would have
to choose between pouring thousands of dollars into upgrades or
offloading the house for well below what it might be worth.
And they just say that all these questions start popping
up when you get a house, and millions. The article
goes on to say, millions of millennials we'll soon have
(06:31):
to wrestle with similar choices. The US is on the
precipice of a colossal wealth transfer, with the oldest baby
boomers set to turn eighty next year, as and you
mentioned mom part the silent generation. But as they find
spots in nursing home, move in with younger relatives, or die,
members of the one's largest generation will leave behind a
(06:53):
staggering heap of real estate. Aside from the ever present
family drama and the arcane text considerations. That's why I
want to address too. Baby boomers are staying in their
homes far longer than previous generations, which means many of
our homes are likely demanded the excessive renovations, and if
they're throwing into a weak housing market, demand is slow
(07:15):
or you know, but you don't know what's going to
happen at that particular time.
Speaker 1 (07:19):
Right now, demand is pretty high.
Speaker 4 (07:20):
I think there's a great topic, Jeff, because it hits
home for a lot of our listeners who are going
through this.
Speaker 1 (07:25):
Maybe you've got four or five, six siblings, and then
the squabble over well, it's we got to divide it
amongst ourselves, or one says we should keep it, one
wants to sell. Maybe that woman in the article should
feel blessed sheets. That's right, you're right.
Speaker 2 (07:42):
And one of the things that one of the real
estate people say in the article is, you know, most
people just don't like to talk about dying. So even
if they know who they're going to give it to
or what the they don't want to die. They don't
want to think about dying. Therefore, a lot of people
equate making plans for that, putting playing a will together
or trust arranging for us means are going to die,
(08:03):
then we'll talk about it.
Speaker 1 (08:04):
It's why we put off the state planning needs. You
want to talk about your own more.
Speaker 2 (08:07):
Talenty Yep, baby boomers dominate America's housing market. They owned
roughly nineteen point seven trillion dollars worth of real estate,
forty one percent of the country's total value, despite accounting
for only a fifth of the population of forty one
percent of the value, and they count for twenty percent
of population.
Speaker 1 (08:26):
And in the next decade or so, Jeff, I mean,
let's face it, all of these eighty year old boomers. Yeah,
they're going to be ninety and ten years Yeah, and
just so get ready, I guess for like you said,
transfer of wealth.
Speaker 2 (08:39):
Yeah, they did some projections on the next ten years
and then ten years after that. Boomers can afford to
win bidding morris and update, downsize collect rental properties because
they have all the money. This is kind of interesting.
Baby boomers gobbled up a line's share the market in
twenty twenty four. They account for forty two percent of
(09:00):
the buyers between July twenty twenty three and June of
twenty twenty four, according to National Realtors Association.
Speaker 1 (09:06):
In the country.
Speaker 2 (09:08):
Yeah, because they can go in, they can offer more
because they have money elsewhere, and they can you know,
they're selling them so they have the money.
Speaker 1 (09:14):
If they say in real estate, a cleaner offer to
probably Jeff, Yeah, maybe with no contingencies, just a clean
offer which will be then moved to the top of
the order.
Speaker 2 (09:24):
Boomers are a big reason Americans are stuck in place.
People are staying in their homes almost twice as long
as they used to. According to redfin analysis, forty baby
boomers have lived in their homes for at least twenty
years and another sixteen percent staying for ten to nineteen years,
So forty that's fifty six percent for ten years or longer.
(09:46):
Motivations for staying you know arranged, you know, like you
were talking about agent place between twenty here's the number
of us looking for between twenty twenty five and twenty
thirty five. So these first ten years, boomer's numbers are
projected to decline by twenty three percent, or fifteen point
six million people, according to analysis by a Harvard Jointe
(10:08):
study of housing between twenty thirty five and twenty forty five.
The next ten years, their numbers are expected to drop
by another forty seven percent, or twenty three point four
million people. So it's close to forty million people over
the next couple of years. Well, those are homeowners or
those are those are people of which many of those
(10:28):
are homeowners. Uh, you know they're looking at you know
how again, it's kind of gruesome, kind of think about
let's see how many people are going to die over
over the next twenty years. Well, I have a better
shot buying a home, you know in ten years or
twenty years that I do not. Well, you don't want
to wait that long either.
Speaker 1 (10:46):
Because that generation is dying off. I mean, that's the
morbid side to it, but it's factual, Jeff, I mean,
it's going to happen. There is a very big problem
in real estate right now, and that is the lack
of inventory. There's just not much on the market. And
there's reason for it.
Speaker 2 (11:00):
I mean, if you look at it, and we talk
about our clients, talk to our clients about this all
the time.
Speaker 1 (11:05):
If you.
Speaker 2 (11:07):
Sell your house now, you might be subject to capital
gains tax. I mean there is an exclusion of two
hundred and fifty thousand times too, maybe up to five
hundred thousand dollars exclusion, but some of these people who've
owned their home for twenty thirty years may have gains
way more than that. So the question is do I
hang on to it, or do I give it to
the kids, or do how do I gift it to them?
(11:29):
Or you know, if I sell it, I have to
pay capital gains if I die. There's a thing called
step up in basis. What that means is that if
you pay two undred thousand dollars for the house, it's
worth a million dollars if you sell it. If you
have an exclusion, you may have to pay taxes on
six hundred thousand dollars of that.
Speaker 1 (11:46):
That can be quite a head.
Speaker 2 (11:48):
Yeah, but if you die with it, you got to
step up a basis to a million dollars. So the
whoever inherits it does you're not paying that taxes. You
avoid that tax completely if you just wait till you die.
Speaker 1 (12:00):
I mean, let's just kind of go over the typical
American boomer, if they have an estate plan, Jeff, I
don't want to say most, but I'm guessing over fifty
percent they're gonna leave it to the kids the house
most right, most parents, if there's a good relationship there.
And let's just take three kids. There's three children, they're adults,
and they get this house. Their parents are now gone.
(12:23):
They have several options. Many of them just decide to
sell it, which is okay. Like the woman in with
the Austin house, maybe she can just sell it.
Speaker 2 (12:31):
If they if they if they died, just sell it.
Perfect because again you've taken a tax advantage, taken the
advantage of a step up and basis, and so your
gain will probably be minimal at that point. So yeah,
that's that's a clean way to do it.
Speaker 1 (12:45):
But then you can.
Speaker 2 (12:47):
Then you come across the three kids that you mentioned,
with three kids, and two of them want to keep it,
one wants to sell one once of money out, the
other two can't afford to buy them on. And then
you see the clean way I do is to sell it.
But nobody wi they can't we're selling it. So there
are a lot of complications with real estate, and that's
going to be a problem for the next several years.
(13:07):
Many parents want to want their kids to have the
house that many kids want to inherit the parents' house
until they hear about the property tax. That's another thing.
I mean, they say, okay, I'll take the house. It's
all free and clear, and we get and then you
find that the property taxes, you know, it can be
where from six thousand to maybe twenty five thousand dollars
thirty thousand dollars property taxes. Long they say, well, wait
(13:28):
a second, we still have to pay that. Well, yes, if.
Speaker 1 (13:32):
You're sitting on that house, Jeff, mom and dad are
now passed and it's empty, it's vacant. It's a ticking
time bomb in a way. You're paying property taxes. Break
it down by the month, by the day if you
want every day, you're paying money to keep that home. Right.
If it's up here, you got to do the snow.
If it's got a lawn, you got to maintain the lawn.
You got to pay for the wee energy's bill, and
(13:53):
you got to keep it warm in winter.
Speaker 2 (13:55):
That all costs money, absolutely, and then dealing with that
now and you're used to doing dealing with it, But
if somebody inherits it, especially if you have several people
inheriting it, that creates a problem. Who pays? What do
you split everything easily? Do we put everything electronic? How
do you handle that? Once somebody passes home and.
Speaker 1 (14:13):
The longer it sits, that could create another dilemma. Yeah,
you know, but buyers are gonna be like, well, what okay,
this this house smells funky? Why has it been vacant
for six months? There are questions and they are all legitimate.
Speaker 2 (14:24):
Questions, and that'll affect the price you get for it,
of course.
Speaker 1 (14:28):
Yeah. And do you want to remodel it? Some of
these homes are severely in need of remodeling, Jeff, and
they out they're not all ready to sell in the
conventional market. There are people that come in and flip
homes and buy them and fix them up. We have
a show on the weekend that does that as well. Jeff.
There's so many options. But again, you got to agree
with everybody. If you got five brothers and sisters, you
(14:49):
have to.
Speaker 2 (14:49):
This woman thinks she's got bad because he's got to
had a bad relationship.
Speaker 4 (14:53):
She's got because she gets the house and she can
decide what she wants. There were a house whatever, Ye,
she can sell it of course, all right. Bottom line. Uh,
even though it sounds great that boomers will die and
pass on the real estate, or that there's is regarding transfer,
it comes with issues, capital gains, tax issues, property tax issues.
(15:16):
Best thing with you know, how do you split it up?
The property if if it stays as a property, if
you have other siblings, if you have other people are
inheriting it, all those kinds of complications.
Speaker 1 (15:27):
What about the realistic logistical nightmare? Who's cleaning it out?
Speaker 2 (15:31):
Oh?
Speaker 1 (15:31):
Yeah, mom and dad, stuff is all in there yet? Yeah,
you know, not every death is anticipated. It You can
pop up and you get that phone call one day
and Mom's gone.
Speaker 2 (15:39):
We had an issue with in our family and it
was you know, dumpster had to come and clean out
the house.
Speaker 1 (15:44):
It was.
Speaker 2 (15:45):
It was a real mess. But dark companies that do that,
so you can't get help. But then you have to agree, Okay,
this is how much a cost if we do some
of it ourselves. If you did give it all to
the company, they're going to.
Speaker 1 (15:59):
Yeah, who gets the deer head over the fireplace? And
that happens? It does. It can be the littlest thing
sometimes that's what sparks the biggest debate is the littlest,
dumbest little item. Come on es right.
Speaker 2 (16:12):
So the best you can do is plan, reduce it
to writing and I it doesn't matter your state plan
can can spell it out, and you can do the
best you can spelling it out. That still might not
answer all your problems, because there's still tax issues while
you're living, there's tax issues when you pass away, there's control,
there's all those things that you have to be whatever.
Speaker 1 (16:33):
You've got to trust. You can designate the beneficiaries.
Speaker 2 (16:36):
Design but it doesn't and you can try to identify
what your intent is with that house. If you reduce
it to writing, does it's not fool proof because they
may disagree once you pass away and it goes to
who your errors are it's up to them to decide
what to do with it unless you know. But if
you say, let's say, as an example, you leave money
for maintenance, you say, here's ten years of property taxes maintenance,
(17:00):
So you have, you know, ten years that you have
to decide. You can fight about it for that period
of time, but at least if you want to keep it.
Whoever has money doesn't have money, doesn't make any difference.
It's all paid for for the next ten years. So
there are different things that you can do. Whether you
want to do that or not is up to you.
Speaker 1 (17:16):
And we how many times have we said on the
show on it regarding inheritance, Jeff, some people hear that
word and their eyes lit up. Oh, we're gonna get
a big, big windfall, right, Not that you want your
parents to pass, but everybody's going to die. We're all
going to pass at some point. But it can get
very sticky. Now you add a house into that equation,
right with the multiple houses and yeah, what.
Speaker 4 (17:40):
If there's two homes, Yeah, a condo in Florida or Arizona, Yeah,
and one up here, and then there might be a boat.
Speaker 2 (17:46):
And then you have people in different states what if
the kids live in different states and there's a boat involved,
And yes, you're shaking your head, it sounds like the
voice of experience.
Speaker 1 (17:57):
Well, my grandfather passed, my dad's dad. He had a
massive amount of hunting guns and some handguns. He was
just a hunter and avid fishermen. And yeah, there was
like squabbling over who gets said guns. Well there's only
a brother and sister. I can tell you this, and
the sister lived in another state and never talked to
mom and dad. So who do you think one of
(18:18):
the guns would be? My dad? Right?
Speaker 4 (18:19):
But yeah, there's there's little squabbles over things that seem
like this should be pretty easy, cut and dry.
Speaker 2 (18:25):
Yeah, it's not always like that. And you think it's
it's a problem with biggest states.
Speaker 1 (18:29):
It's not.
Speaker 2 (18:29):
It's probably small states biggest states. It doesn't make any difference.
It's human nature. It can divide families too with the arguments.
There's money on the line, Chances are somebody's going to
say I'm entitled to some of that or more than
you think I'm entitled to. So yeah, yeah, the best
thing to do is reduce it, right, do the best job.
You came with the plans that you your intentions, reduce
it to writing and then go from there.
Speaker 1 (18:50):
Now, you guys at Creative Planning do this stuff absolutely.
You all come up within a state plan as well
as a retirement plan. Yeah.
Speaker 2 (18:56):
And our estate planning team is really high outed. They
are great people, very efficient. They know their's stuff all
fifty states, so if you have some property here, some
property in another state, they know how to address all that.
We've been very pleased, very efficient with the way that
they handle the estate planning and the wills and trust
with our Creative Planning team.
Speaker 1 (19:18):
Jeff, one thing I know for sure, even though I'm
not an attorney, I'm not a real estate agent or broker,
I do know this. You don't want to get involved
with probate in the courts and then you're it's all
public record. It could take months and months. It can
cost thousands of dollars. If you're home, there may be
some probate, there may be some reasons to go through probate,
but not a lot. And I'm with you.
Speaker 2 (19:39):
I like the idea of setting up a trust, having
a private that can't be challenged. I like that idea
better so for a lot of people, but for some
that's not the case. It's not necessary.
Speaker 1 (19:48):
But I've got a lot of people listening in our
audience are in that boat. They've got the house, but
do you have an estate plan.
Speaker 2 (19:55):
There's that boat again.
Speaker 1 (19:57):
House and a boat. All right, Jeff. If you have
questions about this topic or any other, not just retirement
plans we alluded to his state plans and taxes impact
your retirement plan, your investments, everything, call Creative Planning at
two six two five two two forty forty. One of
your best team members, Chauncey Wisensell, who co hosted the
(20:18):
show last week with us. Yeah, he's going to come
back after the break with a very interesting topic. Stay tuned,
You've got the weekly Wealth Management Preservation.
Speaker 2 (20:27):
It's gonna be a good one too. We're going to
talk about average networth of baby boomers first and then
at the wealth manage we're going to talk about a
guy seventy one with a lot of money and he
can't relax.
Speaker 1 (20:39):
Oh, man, I have a lot of money. You would
just think, what do they all say? Money buy his happiness?
And then the contraryan to say, no, it doesn't, but
it doesn't.
Speaker 2 (20:49):
Talk about the psychological aspects of that as well.
Speaker 1 (20:51):
That's good stuff. Boomers are getting a lot of attention
on today's show. Yeah, you bet well, we deserve it.
We meaning you I missed out by one year. All right,
A lot more coming up. Jeff Cole is here on WYSN.
Check out Creative Planning dot com or again two six
two five two two forty forty if you've got a
question here in wis and the Retirement Clinic will be right.
Speaker 3 (21:13):
Back, are you, Jeff and Paul?
Speaker 5 (21:15):
What I'm kind of looking to talk about Today's an
article in the Wall Street Journal, and yes it relates
to retirement. But I think as I kind of go
through this, everyone will agree who's listening, You guys will
agree as well that maybe it kind of applies to
everyday life. But it's it's titled where does our free
time going? Retirement? Too often it's social media, And even
(21:38):
from the title, I'm sure you can kind of see
how it's going to just be overall us talking about
kind of what we're doing now is society and social
media and all that, and we'll try to avoid getting
too far into that, but it kind of has just
some stories and thoughts from a couple of different people
who are retired. Steve age sixty eight, Cairen age sixty nine, both.
Speaker 3 (21:58):
Retired a few few years ago.
Speaker 5 (22:00):
So some of this stuff from from Steve is they're
both going to be very relatable to all of us,
I'm sure. But Steve kind of talks about, you know,
just he's working on projects around the house, right and oftentimes,
you know, as every good self fixer upper does is
you go to the good old YouTube to.
Speaker 3 (22:18):
See how do I do this? How do I do that?
Speaker 5 (22:20):
You know, He kind of starts with talking about a
vacuum that was making a weird noise and he googled
that to find it, and next thing, you know, you
you find your video there and then you're onto the
next video on YouTube. In this video and that video.
Then he's telling the story one time it was nearly
eleven PM when he looked up from his phone and
the vacuum was unfixed at his workbench, which.
Speaker 3 (22:43):
I'm sure you know, we can we can all relate
to that.
Speaker 5 (22:48):
And Karen kind of talks about, you know, every morning
she would get up and she'd read the paper, you know,
physical copy of the paper now on her phone, kind
of have her coffee and her breakfast and say, you know,
she just get out her phone and she would catch
up on some stuff and and her husband would come
down the stairs and she quickly put her phone away, like, oh,
I'm just here, you know, doing doing my morning routine.
(23:09):
And you know, next thing, you know, it's it's been
an hour on your phone, right, You're just going through
Facebook or catching up on things whatever it may be,
you know, or you're you're even looking at your hobbies,
you know, for myself, you know, videos of fishing or whatever.
Maybe you know, Karen's talking about, you know, these quilting
pages that she's on, and then next thing, you know,
(23:31):
she kind of goes about her day, and Steve talks
about kind of doing the same thing. Right You're you're
out with friends, you're fixing stuff around the house, whatever
it may be. But then you kind of have that
downtime and you just you almost like we instinctually kind
of reach for our phones, right at least I know
I do. I'll confess that. I'm sure a lot of
other people do, you know, And it's it's something to
(23:52):
almost just kind of be conscious of to try to
break some of those habits of oh, you know, I'm
sitting down on the couch to watch the show, or
myself if maybe I'm at working eating lunch, I'm just
gonna check my phone quick, right, and maybe I'm scrolling
on Instagram or TikTok or face whatever it may be. Right,
you're just watching videos and time is just burning away,
and next thing you know, it's like, oh my gosh,
(24:13):
how much time has passed? You know, And Karen kind
of talks about that before bed. You know, she'll get in,
she'll get in bed and she'll catch up maybe on
her her.
Speaker 3 (24:22):
Quilting Facebook group or something like that.
Speaker 5 (24:24):
And then she's talking about going on excuse me, going
on Instagram and looking at reels and you see a
little boy and his dad cooking dinner. You know, she said, oh,
it's just irresistible. And you know, there's a young British
boy collecting eggs talking about the differences of different chicken breeds,
which in the most delightful way, which leads for an
(24:46):
update on a woman who is working to get out
of her abusive marriage, and she's almost free and you're
rooting for her right and it's just it's all these
things and it just really kind of sucks you when
and a couple of the tricks that Careen kind of
kind of talked about. Number one is, you know, if
you need to charge your phone or maybe put it down,
(25:06):
just maybe do it upstairs or put it in the
bedroom right somewhere far away from you, you know, where
you can't can't get quick access to it, although I
know we can all still kind of hear calling and
you almost feel like a little naked without your phone
on you, right. I know the other day I was
help grocery shopping with with my girlfriend and you know,
I need need to call my brother about something quick,
(25:28):
and I'm like, oh, my phone's in my truck, and
I just felt so naked without it.
Speaker 3 (25:31):
So I know, we all kind of kind.
Speaker 1 (25:34):
Of feel that.
Speaker 5 (25:37):
So and it's so then it just kind of goes
through to a psychologist and NPR last week and suggested
striving for willpower may not always be the answer. What
looks like willpower is often actually good habits and good systems.
She said, people who succeed aren't constantly resisting temptation. They're
structuring their lives, so temptation doesn't show up as often.
(25:57):
So you know, whether it's putting your phone away for
a little while somewhere that you can't get quick access
to it, or just trying to limit your screen time, right,
I know you can all you get an update or
you can see it on there every every week. Right, Oh,
as I one on my phone, you know, less less
this week. But it's just just good to kind of
give yourself some structure, put the phone away and you know,
(26:20):
get back to kind of doing get back to doing
the things that you enjoy that that don't necessarily involve
your phone. Right, So, whether it's your hobbies of golfing
or maybe you're just doing yard work, just.
Speaker 3 (26:32):
Leave the phone in the house.
Speaker 5 (26:34):
Although sometimes it's enjoyable to listen to podcasts, so you
do that different stuff. But it's it's good to just
kind of get away from the phone, get away from
social media, doing yourself get sucked in, you know, spend
your time doing things that you enjoy, you know, different
like I said, different activities or hobbies, and spending time
with people you enjoy you know often what kind of
gives us that structure where hey, my break is over,
(26:54):
I need to put down my phone and get back
to work. Or you know, someone calls you or your
boss comes in so you kind of have to try
to give yourself more that structure and retirement as well
with different activities and things like that.
Speaker 3 (27:06):
So hopefully that's helpful.
Speaker 5 (27:07):
Hopefully that can help some of us put our phones
down for a little bit and enjoy life.
Speaker 3 (27:11):
And with that, I'll throw it back to you, Jeff
and Paul. All.
Speaker 1 (27:14):
Was great to hear from Chauncey wisen Sell on the
Retirement Clinic. Jeff Cowall some thoughts, and we mentioned boomers
in the first segment with regard to real estate.
Speaker 2 (27:22):
Yeah, I just wanted to talk to There was an
Investipedia article out recently I talked about the average networth
of baby boomers revealed how does your wealth compare? Baby
boomers of a higher net worth than younger generations one
point six million baby boomers on average, they control more
than half of the US household wealth eighty eight and
(27:43):
they have trillion dollars.
Speaker 1 (27:45):
Still. I mean, you think the boomers, you think, wow,
they're getting old, right, the boomers are aging. Oh, that's uh,
that's rather dominating.
Speaker 2 (27:53):
It's interesting that they give a little background to boomers
entered adulthood. During the post World War two economic expansion,
housing was more affordable. Many either had a guaranteed employer
funded pension or started investing to take advantage of decades
of stock gains. Now you have to explain to kids
what pension is.
Speaker 1 (28:11):
It is, what's a pension? Yeah, for a.
Speaker 2 (28:13):
Lot of people still with these advantages, the median figure
can be misleading. One thing that I thought was pretty
interesting is that when you talk about average net worth,
they broke it down by age group. So the youngest
baby boomers fifty five to sixty four one point five
to six million average net worth median of net worth
(28:34):
of three or sixty four thousand, sixty five to seventy
four hit a high of one point seven eight million
DAN drops down to one point sixty two million. So
you know, how do you how does net work that's
the net of assets minus reliabilities climbs with age that
(28:55):
falls late in life, interest, compound, interest, build savings. Earning
his peak major pences like mortgages, children often disappear, but
by their sixties boomers own a home outright, all that stuff.
But then what happens is that they have to start
dipping into their for help for insurance, for health issues,
(29:16):
all those types of things. All of a sudden they
have to start spending down those funds. And that's why
you see a drop in it after age sixty five.
So from from after seventy five the net worth drops again.
So it drops. It goes from one point five to
six million, fifty five to sixty four sixty five to
seventy four is one point seven eight million net worth
(29:38):
seventy five plus one point sixty two million net worth.
Speaker 1 (29:41):
They're dipping into that pot of money.
Speaker 2 (29:43):
You know, they're gonna have to start dipping into it
after eight seventy five.
Speaker 1 (29:47):
This is why we save. This is why we want
you to save, so that you have that money. Yeah,
because you may need it.
Speaker 2 (29:53):
Yep, you plan for it. And that's again the reason
why you don't plan for their inheritance because if they
live too long, they may be eating up that your inheritance,
so don't count on it. Make sure you plan for
your own well being, your own retirement, so that you're
not counting on any inheritance.
Speaker 1 (30:11):
That's generfact, that's perfect.
Speaker 4 (30:12):
Then if there is an inheritance, Jeff, it's just all plus,
it's all a bonus, that's right, But never planing one
because you just may not be.
Speaker 1 (30:20):
There when you expect it to be there. Good stuff
as always with Chauncey and Jeff. After this break, we
get to the weekly Wealth Management and Preservation segment. Is
that on boomers as well? It's about the boomer. He's
seventy one years that's right, that's right, he's got he's
got money, but he's not happy. Is that right?
Speaker 2 (30:37):
Yeah, he can't relax.
Speaker 1 (30:39):
I mean I want a problem they have. Okay, we'll
be back after a quick break two six two five
two two. Reach out via web create a Planning dot com,
the Retirement Clinic dot com. Both websites are excellent here
in WISN. We'll be back after this. Jeff Cole and
this segment, Welcome back to Bare Naked Ladies. I joked
(31:00):
about this was it last week because we said, instead
of a million dollars, million and a half, million and
a half is kind of what you want to shoot
for if you're an American and you want to retire comfortably.
One point five million. We play this song if I
had a million dollars, face it. They're not going back
in the studio to recut this song for us. Yeah,
just for us?
Speaker 2 (31:19):
Yeah, you're right, Well, this segment is for every show,
us for everybody, This particular segment for those with a
million dollars or more. Once you've accumulated some wealth like
a million dollars, how do you preserve it? Grow it,
take income from it, and pass it on to your airs?
And that's what this segment is about. And a lot
of people think, well, I don't have a million dollars.
But if you look at your four one K or
(31:40):
other iras, investments that you have, real estate, if you
sold a business, if you settle a lawsuit, if you
win the lottery, all different kinds of ways, you can
have more than a million dollars. Dear, Quenton is a
a It's in market Watch whereas answers financial questions. Quentin
and this guy wrote in and we see this all
(32:00):
the time, and I'm going to talk about the psychological
aspects of it because it hits all the time. But
he says, I'm worried about my cash flow. I'm seventy
one with two point seven million in an IRA, four
hundred and seventy thousand in stocks. He says, why can't
I relax?
Speaker 1 (32:15):
So he's got over three million dollars in six Yes, yes,
all right, He says, Dear Quentina, I'm healthy, active, seventy
one year old widower, and I fully retired last May.
Speaker 2 (32:25):
I have an annual pinch of fifty three thousand because
he was in law enforcement, so fifty three thousand a year,
a penchon fifty two thousand year in social security because
he waited till seventy.
Speaker 1 (32:36):
Over one hundred grand years. Still coming in.
Speaker 2 (32:39):
Little extra money coming in a widower two point seven million.
Speaker 1 (32:44):
He says.
Speaker 2 (32:45):
I'll start taking required minimum distributions at seventy three and
twenty twenty seven, and that's going to be another one
hundred thousand that he's going to have to take out.
So we'll have two hundred ten thousand dollars just to
income from those two. My home is paid for estimated
seven hundred thousand. My state plan is finalized, He says,
I should be fine once the rm D starts. So
(33:05):
why am I worried about cash flow during my retirement years?
What am I missing? A couple of things that I
looked at before. I'll go to the way that Quentin answered.
Speaker 3 (33:15):
This.
Speaker 2 (33:15):
One thing he doesn't mention is his lifestyle. It sounds
like if you see as a retired law enforcement, and
that he's not he's not a big spender. They tend
not to be. They're not buying multiple homes, are not
doing world traveling. He could be now he's seventy one,
he's got the cold he was raised, So maybe I
(33:38):
could be wrong in this. But one thing he doesn't
mention is his lifestyle and what he spends. Second thing
is that does he have a family, Does he have kids?
Is he saving for an inheritance? Is that why he's
a little hesitant. But Paul, we see this all the time.
It's baffling to many readers. It's it seems unnatural because
it seems like you you have, you're doing just great.
(34:01):
They are what you got, where you are today and
now moving into a cumulation phase. So you went from
a cumulation phase to a distribution phase. For a lot
of people, that's hard. We see it every day with
our clients. But they say, you know, you're in the
mode that you should be saving all the time, not spending.
So then when you stop working and you're not saving,
(34:24):
you feel guilty about I'm just.
Speaker 4 (34:26):
Gonna say, you feel guilty. You feel something like I'm
doing something wrong.
Speaker 1 (34:29):
Yep. And because you're out of that routine that you
were in for decades and decades.
Speaker 2 (34:34):
But there's a whole rafts of studies showing that retirees
your age and older are afraid to touch the retirement savings.
Having those savings is one thing that gives them peace
of mind. Spending them may not. Some may be spending
as little as possible to leave behind a larger sum
for their loved ones or fill in traffic topic pursuits,
but in many cases, because they aren't sure how to
(34:55):
determine a suitable withdrawal rate that accounts for their total lifespan,
some of us to worry too much.
Speaker 1 (35:01):
Yeah, I think so. I think there's so much information
on the phone. The markets are up and down. You
can you know, you turn on the news. That's twenty
four hours a day. There's always something breaking news. It's
a little bit to some unsettling.
Speaker 2 (35:13):
That's right. And if it bleeds, it leads. If it's
bad news, that's what. Yeah, that's what you hear. You
don't necessarily hear the good news, and there's no The
Quintin goes on to say that the earliers may be
filled with travel and other big ticket items that require
more substantial withdrawals. As yours go on, You're probably likely
to travel less. Healthcare expenses might go up. And he says,
(35:35):
just digging into your financials, what I may missing, You're
not missing anything, he says, your your activities, your anxieties.
I can't help feeling that there are more anxieties than
real world concerns.
Speaker 1 (35:49):
If you took a one.
Speaker 2 (35:49):
Hundred thousand from your IRA with one hundred and ten
thousand pensions, that's the worst case scenario. There's even if
you have no and this is I thought a great point.
If you have no growth in your stocks, none, Now
you just take one hundred thousand dollars from your company.
He stays flat, Right, stays flat, says exactly, And you
take out one hundred thousand dollars a year, you won't
(36:10):
run out of money at age ninety eight, he should,
You won't run out of money till age ninety eight,
And he's not seventy one.
Speaker 1 (36:18):
I mean, and if you just it's twenty eight years yet.
Speaker 2 (36:20):
He says, it's at three percent rate of more, you'll
be well over one hundred before you run out. What
I want to say is that you've reduced it to
writing with your state planning, why not do the same
with your retirement planning? Again, creative planning, we call it
a vision create a plan calls a vision builder. It's
a cash flow projection. But you can factor things in
like new cars. You can factor things in like travel
(36:42):
every year. You can factor things like long term care, home,
health care, assisted living, nursing home. So if you plug
all those things in and say this is the worst
case scenario and you still have money left, again, it
helps to reduce the writing. It sounds like he's done
a lot of other things, right, right, reduce a lot
of other things to writing.
Speaker 4 (37:01):
When he so again he's a retired police officer. Yeah,
they see, and we don't know his law enforcement career. Okay,
well whatever that is, right, nice.
Speaker 2 (37:10):
Pension, nice pension.
Speaker 1 (37:11):
Maybe just you know the way we are a lot
of boomers talk about the Great Depression. Growing up as
kids was saving everything. Bread crumbs were made into food, right,
We just we had to do everything we could because
we were broke and there wasn't money. Maybe that's just
ingrained in some people's lifestyle. Yeah, how you were raised
grow up like that?
Speaker 2 (37:30):
I mean, I mean we even in our family Jane,
and I still clip couponds, digital coupons. It's like there's
no prestige and overpaid.
Speaker 1 (37:40):
There's nothing wrong with that, Joe. Yeah.
Speaker 4 (37:44):
And the fact that you were willing to admit that
on the most radio station in Wisconsin. I think is
awesome that if you're clipping coupon, you don't have to.
Speaker 2 (37:52):
Right, we absolutely do not have to. But you know
it's just built into us. And again, no prestige and
pay in overpaying. If it's there, why that.
Speaker 1 (38:00):
Let me let me just bene and we got a
break here. But I bet you you were raised your
parents did this.
Speaker 4 (38:04):
Oh yeah, of course Coopin's clip coupons, and Wisconsin is
kind of known for its frugalness.
Speaker 1 (38:12):
Maybe with some folks in a good way. I think.
I think it's okay. Yep, we once we want to
save us.
Speaker 2 (38:18):
I think kids will feel the same way about that.
Speaker 1 (38:21):
But we never know. Ye this guy can relax. You know,
he's as a law enforcement guy, did his job. Now
he's retired. That's the time you want to relax. Yep.
Stay busy. You got to stay busy too. Yep. Have
a hobby or volunteer or something like that. That's good stuff.
And if you do your job and you save, you've
got that much money. That's the whole point, so that
you can enjoy your retirement with Jeff Cowal and w
(38:43):
I said, create a planning dot com, the Retirement Clinic
dot com or questions, go right to this number two
six two five two two forty and ask for Chauncey
and ask for Chauncey. If you forget wise and sell
his last name, Chauncey will do just fine. Yeah, as
he asked for Chauncey. He was on the show quite often.
He hosted it last week and we heard from him today.
(39:03):
We'll be right back. Stay tuned for more of the
Retirement Clinic. All right, Jeff Cole. In the final minute
of today's three Retirement Clinic, we mentioned well Chauncey, reach out,
ask for an advisor. We talked about boomer is a
lot today and if you don't have an estate plan,
a retirement plan, quit putting it off, Quit.
Speaker 2 (39:21):
Putting it off, make plans for it. Reduce it to
writing and again, so avoid confusion, avoid heartache, reduce it
to writing for yourself. For your beneficiaries, they'll be very
happy and glad. That you did that, But give our
office call two six, ask for Chauncey or go to
the Retirement Clinic dot com and do set up a deployment.
Don't procrastinate any longer. We're already well into twenty twenty six.
Speaker 1 (39:44):
Monday through Friday. During the Dan O'donnald's show in the afternoon,
that three and five pm news block feature those daily
market updates, what's going on in the market that day,
done by your staff.
Speaker 2 (39:55):
That's right, our team does those. Gives you an idea
of what's driving the market up or down the particular day.
Give the sp five hundred Dow Nasdaq all in one
minute Dani o'donald's show three o'clock and five o'clock news blocks.
Speaker 1 (40:09):
A daily fluctuation of the price of oil. I mean
every day absolutely updown with iran. Oh my goodness. You
guys do a great job in those reports. And then
of course we'ren't back and we're here every Saturday at
ten o'clock on the Retirement Clinic located in Port Washington,
Dellafield Re' scene on Bluemont Road right in Brookfield. Then
of course Cape Coral, Florida, Phoenix license in all fifty states.
(40:31):
Creative Planning Jeff Cowall, enjoy the rest of your weekend.
Thanks you too, Paul, and we'll see you back next Saturday,
ten o'clock on the Retirement Clinic on WYS Milwaukee.
Speaker 4 (40:40):
The preceding program is furnished by Creative Planning, a SEC
registered investment advisory firm.
Speaker 1 (40:45):
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.
Speaker 4 (40:55):
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.
Speaker 2 (41:04):
The show is designed to be informational in nature and
does not constitute investment, tax or legal advice.
Speaker 1 (41:09):
Different types of investments involve varying degrees of risk, and
there can be no assurance that the.
Speaker 2 (41:13):
Future performance of any specific investment or investment strategy, including
those discussed on the show, will be profitable or equal
any historical performance levels.
Speaker 1 (41:22):
The information contained herein has been obtained from sources deemed
reliable but is not guaranteed.
Speaker 2 (41:28):
If you would like our help, request to speak to
an advisor by going to creative planning dot com.
Speaker 4 (41:32):
Creative Planning, tax, and legal are separate entities that must
be engaged independently.
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