July 14, 2026 • 27 mins
Having a child later in life can change far more than your sleep schedule. It can completely rewrite your retirement plan.
Don and Tom explore the financial realities of becoming a parent in your late 40s or 50s, from college savings and life insurance to delayed retirement and the temptation to sacrifice your own financial future for your children. Tom brings some very personal experience to the conversation—and a few stories about being mistaken for his daughter’s grandfather.
Then, a listener asks about a simple three-fund retirement portfolio, international diversification, small-cap value, Roth asset location, and when an aggressive investor should finally consider adding bonds.
Plus, why the best retirement portfolio may be the one that keeps you from doing something stupid during the next bear market.
- 00:12 Old guys, act your age—and other financial lessons
- 01:14 Disagree with Don and Tom? Send in your argument
- 01:57 The financial reality of becoming a parent later in life
- 03:17 Tom became a father at 50
- 04:11 The dangers of grocery shopping with your daughter
- 05:21 Are older parents actually better parents?
- 06:10 How a late child can completely change retirement plans
- 07:28 Why retirement should come before college savings
- 08:48 A $36,000-a-year whole life insurance quote
- 09:08 How long does a parent really need term life insurance?
- 10:42 Fertility costs and the financial price of parenthood
- 11:28 Your retirement must remain the financial priority
- 12:50 Having a child at 50 may mean working until 68
- 13:42 What are you actually going to do in retirement?
- 15:19 Tom reflects on raising his youngest daughter
- 16:02 Don and Tom need more listener questions
- 17:17 Listener portfolio review: FZROX, FZILX, and AVUV
- 18:49 Is 50% U.S., 30% international, and 20% small value reasonable?
- 20:01 Should high-growth assets go in a Roth IRA?
- 20:43 When should an aggressive investor start adding bonds?
- 21:25 Bonds may keep you from doing something stupid
- 22:53 Remembering investor panic after 9/11
- 23:21 How to get a free Talking Real Money portfolio analysis
- 25:16 Why Talking Real Money is different
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Episode Transcript
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SPEAKER_02 (00:05):
You're gone to a really great financial future.
Tom and Don are talking realmoney.
SPEAKER_01 (00:12):
I think the moral of today's story is going to be
hey, old guys, act your datingage.
But I'm not sure where we'regoing with this.
We're going to find out.
Hey, everybody.
Welcome to Talking Real Money.
We have a unique topic for youtoday, but it is money-oriented,
and Tom has special expertise intoday's topic that I do not
(00:32):
have.
In some ways, a little bit.
No, not to the extent you do.
No.
No, no, no, no, no, no, no.
You, you, you outdid me in moreways than one.
Most people.
Most people.
Yeah, most people.
Again, what's the show?
It's Talking Real Money.
I'm Don.
That's Tom.
We talk uh, well, money withyou.
And you are invited toparticipate in the program
(00:53):
anytime.
Just go to talkingrealmoney.comand and send in your questions,
your ideas, your thoughts, youropinions, whatever.
Just send them in there.
Don't don't go to there's a guyon Apple who listens on Apple
Podcasts and he keeps writingthe same review every two weeks.
(01:14):
And I I think Apple's have nowfinally shut it down.
I don't see it anymore.
It's the guy, the guy who thinkswe're totally off base with
crypto over and over and overand over and over again.
But you know, send us your ideasat talkingrealmoney.com on the
contact form, and we can we canactually have a conversation
about them if you'd like.
We'll get in touch with you andhave a talk with you.
(01:37):
We will uh get you in.
Uh even if your ideas totallyconflict with ours.
As a matter of fact, you move tothe top of the list.
SPEAKER_00 (01:46):
Yeah, no, we take every question.
We we answer every question.
There's one coming up on um onon how we help people.
So I it's you know, we helppeople.
SPEAKER_01 (01:57):
Today's topic, though.
People becoming parents a littlebit later in life.
Now, in less than politecompany, they might call that
robbing the cradle, but uh it'sin Tom's case, she she was fully
grown.
She was an adult when he marriedher.
And you know, uh the specialfinancial challenges that come
(02:23):
with having a kid as you'reapproaching retirement.
And and I can see why therewould be some, because now
you're getting into, you know,when you get into your 50s,
you're really looking 15, 20years down the road and going,
am I going to be able tocomfortably pay for my
retirement?
You luckily did well in businessand and will probably be pretty
(02:44):
comfortable, but not everybodyis, and there are a lot of
financial challenges to becominga parent later in life.
SPEAKER_00 (02:50):
Yeah, it and this is a a bigger deal than you might
think.
It women 40 and older accountedfor 4.3 percent of U.S.
births in 2025, so 4 percent.
That's up from 1.2 percent in1990.
So 35 years ago.
SPEAKER_01 (03:05):
Yeah, but how many fathers 50 and older?
I want to know.
They don't give that number.
They don't give that number.
SPEAKER_00 (03:09):
The average first-time mother, 27.5.
That's a record high.
So, and you can be pretty surethat the men are getting older
too.
So uh, but and this is moreabout them.
And just for full disclosure,okay, because we we put
everything out there, I'll justI'll just I'll just put it out
there.
I had a child of 50 who uh whojust this recently uh graduated
(03:30):
from high school.
So you can do the math, figureout how old I am.
That was pretty she didn'tgraduate early, so uh and she uh
yeah she she went to privateschool for the last uh eight or
nine of those years, so it hasnot been inexpensive.
SPEAKER_01 (03:44):
Over her 18 years of life.
How many times have you beenmistaken for her granddad, Tom?
SPEAKER_00 (03:52):
Well, you know, that's early, early on, many
times, fascinatingly enough,when she was a baby, people say,
Oh, it's so nice you got yourgranddad.
No, that's my daughter.
But just recently, it would notsurprise you to know that I have
a routine that includes going tothe grocery store at seven
o'clock in the morning on Sundaymornings.
SPEAKER_01 (04:11):
Yeah, time that no one, no one goes to the grocery
store.
SPEAKER_00 (04:15):
It started with COVID because I just wanted to
go then get it out of the way.
But it just sort of kept.
I mean, this is how my lifeworks.
I get in ruts.
And uh so there, I got guesswhat?
I get to know the people thatare every Sunday at seven, the
people that work there,including my favorite uh
vegetable stalker.
Is that the right word?
I would just call him greengrocer.
SPEAKER_01 (04:38):
The the guy in the vet in the produce department,
your produce produce guy.
Produce guy.
Yeah, produce guy.
SPEAKER_00 (04:45):
He always stops and we chatted up for a couple of
minutes.
Well, a couple weeks ago, mydaughter came with me, which she
never does.
I can't remember the occasion,but and it was 9 a.m.
He's like, Are you okay?
You're really late.
What's what's what's the deal?
And I pointed at my daughter,said, Oh, it's her.
He goes, Oh, you brought yourgranddaughter.
SPEAKER_01 (05:03):
Your 18-year-old granddaughter.
SPEAKER_00 (05:05):
And I said, No, that would be my daughter.
He felt so in fact, he felt sobad that this week when I was
there, he goes, I still feel Isaid, just it it's okay.
SPEAKER_01 (05:13):
He's used to it by now.
SPEAKER_00 (05:14):
The hair color effects.
SPEAKER_01 (05:16):
Have you listened to his podcast?
SPEAKER_00 (05:18):
Exactly.
SPEAKER_01 (05:19):
He's used to it by now.
SPEAKER_00 (05:20):
You know, all in so yeah, okay, I've taken the
slings and arrows.
But I will, on the other side ofthat equation, I will say this
time with my daughter, I don'tknow if it was her maturity or
mine, but it was the easy, she'sbeen the easiest child to raise.
SPEAKER_01 (05:33):
Um, right.
I, having known you since youhad tiny children, yes.
From your first marriage, uh,it's the maturity of you, sir.
It had nothing to do with her.
Okay.
You're you've changed a lot.
You have one thing about gettingold, and this is not financial,
but it does impact our finances,is that generally speaking, if
(05:56):
we paid a modicum of attentionalong the way, we mellow as we
age a bit.
SPEAKER_00 (06:03):
Oh, is that what I've done?
I've mellowed now.
SPEAKER_01 (06:04):
You've you've gained some wisdom and some and some
weight.
SPEAKER_00 (06:08):
And some that was too easy.
I had that.
Okay, but let's go.
This is fascinating.
So the the Wall Street Journaldid a a full I this how many
words this?
I don't know, like 9,000 orsomething.
Big article on older parentsencountering new financial
costs.
So I'm always fascinated becauseI'm part of that group, right?
I mean, I had kids.
So here's a guy that they havein here.
(06:30):
Um he's 58.
He had a child when he was 50,right?
So that sounds familiar.
Um, and it the his lead-in is Idon't know what my retirement
picture looks like now.
It's totally up in the air.
But in the article, he says inthe first year of parenthood, he
put$75,000 into a$529 savingsplan.
SPEAKER_01 (06:53):
I immediately know what's wrong with your future,
sir.
You did the thing that we havebeen advising against for as
long as we've been doing thisshow, and that that is
prioritizing your kids' collegeover your retirement.
It should be the other wayaround.
(07:14):
Totally.
Why?
Why should it be the other wayaround?
SPEAKER_00 (07:17):
Well, because uh this is a very simple adage, and
I think it works.
You can borrow money to pay forcollege.
You can't borrow money forretirement.
At the end of the day, you can'tanswer that.
SPEAKER_01 (07:29):
And let me just share with you a little factoid.
Most kids are gonna do just aswell in careers from a uh with a
degree from a state school thattend to be, if you're in state,
a lot cheaper than a anexpensive private school.
So if you can afford it, yeah,but don't hurt your future so
(07:52):
you can send your kids to an IvyLeague school.
SPEAKER_00 (07:55):
I think that's totally legit.
Uh, and here's another thing.
He this is an area that that iscostly because I still have some
some life insurance.
So he went out to he had ahealth problem.
He tried to go out and get lifeinsurance for a million-dollar
whole life policy.
He was quoted$36,000 a year.
That's a lot of money for lifeinsurance.
SPEAKER_01 (08:15):
Okay, whole life is building cash value, too.
SPEAKER_00 (08:18):
So um he's now considering a 20-year term
policy that uh would would onlyuh$300,000 would be$170 a month.
I urge him to take that option.
SPEAKER_01 (08:28):
Is this guy a regular guy or is this a finance
writer for the Wall StreetJournal?
SPEAKER_00 (08:33):
Regular guy.
Um lives in Texas.
SPEAKER_01 (08:35):
Okay, thank gosh.
So I I can advise him a littlebit.
SPEAKER_00 (08:38):
Well, let me finish, then you can give the full he's
also trying to figure out whatwhat it do about his social
security because he says if Itake it at sixty-two, I'm gonna
get twelve hundred dollars amonth.
SPEAKER_01 (08:48):
Don't take it at sixty two, you big dope.
SPEAKER_00 (08:50):
So this is all doopy.
That's what I said.
It's just crazy.
SPEAKER_01 (08:55):
I want to go back to the insurance though.
I want to grab these by the thethe the the individual bits,
because you can't really focuson the big picture.
You gotta get the little bitsout of the way.
His daughter is how old now?
SPEAKER_00 (09:08):
It's his son, so that would be let's see, so
eight.
unknown (09:12):
Eight.
SPEAKER_01 (09:12):
So he's eight years old.
Okay.
He's gonna graduate high schoolroughly in ten years, right?
SPEAKER_00 (09:18):
At about the time he's gonna want to retire, or
maybe earlier.
SPEAKER_01 (09:22):
Why would you get a 20-year term policy?
Good point.
Why would you not get a 10-yearterm policy?
SPEAKER_00 (09:28):
A lot cheaper, sure.
SPEAKER_01 (09:29):
Be a lot cheaper, and it covers the need.
You see, what he's doing is he'sconfusing the need with some
sort of a windfall for the kid.
And this is a big mistake wemake.
We want to like, I want to setmy kid up wealthy when he's 22
years old.
No, you don't.
You don't.
Would that have done, I mean,okay, you're probably looking
(09:50):
back and going, gosh, I wish myparents gave me a lot of money
when I was 22.
Yeah.
Would that have incentivized youto do the things that you've
done in life?
Those of you who weren't bornwith the silver spoon, come on.
SPEAKER_00 (10:02):
No, I think that's practical.
Very good advice.
I mean, but that's one that wasreally shocking.
Some of these other folks who Iwould still consider relatively
young because they're in their40s, but they spent what did
they spent?
70 to 80,000, one couple,$70,000to$80,000 for fertility
treatments to finally have achild.
That's a lot out of pocket.
(10:23):
That is a whole lot of money.
Um which has set them back,right?
Right.
Yeah, they didn't have it.
SPEAKER_01 (10:31):
Although when you think about it, think about I
mean, really all species ofanimal, which includes us, we
we're we're we're our legacy ispropagation.
SPEAKER_00 (10:45):
All you got.
SPEAKER_01 (10:46):
It's what you got, because you're gonna be dead.
Yeah, they don't last either.
SPEAKER_00 (10:51):
No, that's a good point.
SPEAKER_01 (10:53):
So um, president during the Civil War.
Oh, somebody already chose thatone.
Dang it, they got that.
SPEAKER_00 (11:00):
That didn't work out.
So, okay.
So but this does raise several,I think I wasn't a huge fan of
that article.
And again, I just think horribledecision to pile up money in the
uh 529.
If you have not properly savedfor retirement at that point,
that makes no sense.
SPEAKER_01 (11:16):
Did the author of the article give any advice or
was this just anecdote sharing?
SPEAKER_00 (11:21):
That's exactly what it was.
Yeah, no advice.
Um we can give advice, though.
Yeah, well, I was just gonna getto that.
Um because again, number one,the priority, I don't care what
age you are, needs to be yourretirement.
Gotta be.
SPEAKER_01 (11:35):
Not your house.
No.
It's not the car, vacations,it's not the kids' college
education.
It's not the legacy.
I got vacations in.
Uh no, it is the future of you,and if you have one, your
significant other or spouse.
That's what it's all about.
It's the hokey pokey in essence.
SPEAKER_00 (11:56):
Yeah.
Well, I and it's hard, right?
Because emotionally, as you justsaid, hey, I want to make sure
everybody's okay.
That and that gets back to thenumber two, which is the life
insurance.
I love what you just said aboutlimiting the term of it.
How about making if if collegeis important or whatever, making
it 22.
Make it to the the age of they'dbe done with school.
So if something were to happento you, they pay for it, right?
SPEAKER_01 (12:18):
Well, no, because the 529's already paid for that.
SPEAKER_00 (12:21):
Well, in that case, but in most people's case, they
haven't saved that kind of moneyin a 529.
I don't know what the averagesavings are.
SPEAKER_01 (12:27):
Again, though, again, we come back to they're
18, you got them through highschool, they can take out
student loans.
They're adults generally in mostplaces at 18.
Yep.
They can take care ofthemselves.
You do not have a financiallegal obligation to them anymore
at 18.
In most states.
SPEAKER_00 (12:43):
I'm going to go home and say that today.
I hadn't.
SPEAKER_01 (12:45):
Yeah, say I am done.
I wash my hands of you.
SPEAKER_00 (12:50):
Too late, she already got a copy of the credit
card.
Or no, she actually got thecredit card, so I'm you know
what.
SPEAKER_01 (12:56):
Okay.
That goes back.
We were talking about how thesepeople weren't particularly
bright about their financialdecisions.
That just hurts all over.
SPEAKER_00 (13:05):
Who gave her the credit card?
Yeah.
All right.
So again, um saving forretirement, got to do that
first.
Life insurance, I like what youjust said.
18 or 22, that's fair.
But here's the other part that Ithink people forget about, which
I kind of think I forgot aboutat 50.
Uh you're gonna end up workinglonger because it's just it's
just expensive.
You gotta the the costs arestill there.
SPEAKER_01 (13:26):
At least if you have a kid at 50, you pretty much
have to figure retirement is noearlier than 68.
SPEAKER_00 (13:33):
Yeah, I think that's right.
Um, I had not, and and I and Ilove my work and I'm glad I'm
working, but I had not thoughtthat through.
I'll be honest with you.
I I think looking back, if Ilooked at things 20 years ago, I
did not think I'd still beworking at 68.
SPEAKER_01 (13:46):
Oh, I did.
SPEAKER_00 (13:48):
Yeah.
I don't think I would have, Iwould have, I I think I would
have found another interest,another something to do, but um
really okay.
SPEAKER_01 (13:55):
Wait, let's come back to that because that's
another financial point we talkabout a lot.
You know, what you're gonna do.
Seriously, let's just just inyour case, my case, what other
thing would you have done thatyou were physically able at 68
to do?
SPEAKER_00 (14:13):
I wanted to I wanted I've already talked about this.
I wanted to be a docent at theair museum, which I just don't
think I'm qualified.
SPEAKER_01 (14:19):
That's a that's a once in a blue moon kind of.
You're not gonna do it everytime.
SPEAKER_00 (14:22):
Well, it's like once or maybe twice a week.
Um I wanted to do I wanted to dosomething um volunteer-wise with
soccer.
Which I'm gonna do.
SPEAKER_01 (14:29):
Not refereeing, though.
SPEAKER_00 (14:31):
Well, you can't do it to the not I mean, yeah, not
forever.
Uh just read about a guy who's74, though, still out hustling.
With the exoskeleton.
The exoskeleton.
Those were a couple of them.
I mean, and the other part wasfrankly, I wanted to, and I
don't think it's gonna happen uhbecause I only do it one day a
week.
I wanted to be kind of thedriver for my grandsons, like
(14:52):
take them from here to there.
But see, it doesn't work for myschedule today, so I think
they're gonna be too old by thetime it might.
SPEAKER_01 (14:57):
Buy yourself a little yellow school bus.
SPEAKER_00 (15:00):
Little one?
Oh, little ones?
I want the big one.
SPEAKER_01 (15:02):
Um the only two kids in the bus.
SPEAKER_00 (15:05):
You guys are getting the back.
Yeah, I said, but this is thisthe point of the matter is this
needs to be considered verythoughtfully because these are
major decisions.
When you have a child at 50 oreven late 40s, that's a big
that's going to be alife-changing decision that it
might not be if you had a childwhen you're 30.
I'll put it that way.
unknown (15:25):
Right?
SPEAKER_01 (15:25):
And he speaks from experience.
SPEAKER_00 (15:27):
Yeah, no, I uh and by the way, uh all kidding
aside, my daughter, whom I loveas you know deeply, who just
graduated, she was NationalHonor Society, she National
Choral Award, blah, blah, blah,etc.
I know I'm gonna brag about her.
It's not about me, it's abouther.
She's going to a very finecollege because she really works
hard academically.
SPEAKER_01 (15:47):
Wait, read between the lines.
A very fine college, expensive.
SPEAKER_00 (15:50):
That's not even between the lines.
That's written over the top ofthe whole thing.
It's expensive, yeah.
So anyway, I don't resent any ofthat.
SPEAKER_01 (15:58):
No, nor should you.
That I mean, she's a great kid.
Uh, we we love questions.
It's our favorite part of thepodcast, and yet you're kind of
letting us down a little.
The summer has been a littleslow.
And those of you who havewritten questions, well, one of
you wrote one that we're gonnaget to soon.
(16:21):
But it's dang, it's long.
You you we don't we don't payyou for these at all.
And we certainly don't pay bythe word.
Uh as a matter of fact, nooffense, but your question is
going through a heavy editbefore we can put it on because
we don't have 45 minutes just toread the question.
SPEAKER_00 (16:40):
That's what it took this morning, by the way.
unknown (16:42):
Long.
SPEAKER_01 (16:43):
It's really long.
Anyway, that's okay.
We don't mind.
We love the questions.
Send them in,talkingrealmoney.com, ask a
question button, click on that,and uh then either type them for
Tom or speak them for me on theFriday podcast.
And uh we're gonna we wanna makesure we have a question for
every episode, and we never wantto fake these questions.
They're always real, theseactually come from you.
(17:06):
Uh so uh we're we're down toright now just one a day to make
sure we have enough to getthrough Tom's lengthy vacation.
So go ahead.
SPEAKER_00 (17:14):
I might call you from Rome or maybe Pompeii.
SPEAKER_01 (17:17):
If it's still there.
SPEAKER_00 (17:18):
Your ears are burning.
Can you say that in Pompeii?
No, I guess not.
Uh let's go to the questionsfrom That's what we were gonna
do.
Oh, pardon me.
Fall River Mills, California.
SPEAKER_01 (17:30):
Okay.
SPEAKER_00 (17:30):
I'm a Californian, I don't know the place.
Colin writes, hi Don and Tom.
I've been listening to thepodcast for years and wanted to
write in a question and alsothank you for helping me
understand what investing in thestock market really means.
I used to be someone who thoughtthey could read headlines or web
uh news websites and be able topredict the stock market.
What a fool I was.
Hey, good for you for a littleself-realization there.
(17:52):
With your podcast, I've finally,I think, been able to settle on
a portfolio allocation andstrategy I'm comfortable with
and have learned to become along-term investor.
Dude, you can just end theconversation right there.
That's really good.
You got it all right.
SPEAKER_01 (18:05):
Congratulations.
You're brilliant.
You need you don't needanything.
SPEAKER_00 (18:09):
He's 41, hopes to retire in 19 years.
Has 401k of 550,000 and a RothIRA of 100.
The asset allocation for eachaccount is as follows 50% in the
F Z R O X, that's a FidelityZero fee total U.S.
market index.
30% in the F.
SPEAKER_01 (18:28):
Oh, I thought it was invested in copier stock.
I thought it was just you know ZRocks.
SPEAKER_00 (18:33):
Z I L X, that's a Fidelity Zero, International
Index Fund, including developedand emerging markets, and 20% in
AVUV, which is U.S.
small cap value.
Yep.
First question does this soundlike a reasonable portfolio
allocation to you?
Yes.
SPEAKER_01 (18:48):
There we go.
SPEAKER_00 (18:49):
See how that was?
I mean, that's perfectly fine.
Yeah, that's really good.
I I currently maintain the 50,remember, 50 in the U.S., 30
international, and 20% U.S.
small cap value in bothretirement accounts.
Remember, one's 550, the other's100.
Rebalancing them separately tomaintain the same in each.
What are your thoughts on thestrategy?
(19:10):
The question, third question, orwhat are your thoughts on that?
Having two separate ones.
Okay.
I mean, because you got thethree funds in one, you got
three funds in another.
Yeah, it's fine.
SPEAKER_01 (19:19):
Again, for that kind of an account, it's fine.
Uh again, the you are, becauseof AVU V2 in this, you're
heavily overweighted U.S.
SPEAKER_00 (19:28):
Yeah.
SPEAKER_01 (19:29):
I think you should have more international.
SPEAKER_00 (19:31):
I concur.
Yeah.
SPEAKER_01 (19:32):
So he could add, by the way, he could add the uh I
think Avantis has a Avantis doeshave a uh let's see.
Avantis, what's theinternational small cap value?
Pretty sure they'd be able toget the international value.
Is AVDV.
It was right on the tip of mytongue.
AV.
SPEAKER_00 (19:48):
So maybe you could split A D V.
You could split the AVUV intoAVUV and AVDV.
SPEAKER_01 (19:52):
AVDV.
Yep.
That would actually be a reallysmart move.
Yeah.
SPEAKER_00 (19:55):
Uh third question.
I've been looking at theportfolio as a whole and having
100% of my 100% AVUV in my Rothand splitting the 401k to make
the total still be 50 3020.
Since the AVUV has the highestgrowth potential, having it in a
tax-free account might be a goodstrategy.
What are your thoughts aboutthat?
SPEAKER_01 (20:14):
I'm pretty much with you on everything except the
light international exposure.
SPEAKER_00 (20:20):
So are you okay with him having AVUV most of the Roth
in the Roth?
Yeah, because the expectedgrowth, as you point out, is the
best.
Maybe you split that one into AV U V, A V D V D V.
And then the other one is the5030, so you get a little more
international.
SPEAKER_01 (20:37):
And uh really it's uh ass soon, one of these days,
you need to start payingattention to your your risk
profile.
Yeah.
Because you've you're therereaches a point, and matter of
fact, go take the risk quizright now at talkingreal
money.com because there therereaches a point where I know
(20:58):
they're not any fun, but bondsare there just to keep you from
being stupid.
And we get stupid, we getemotional when when we believe
we will not do so.
Sometimes the headlines are justso powerful, and a lot of people
don't remember the headlines of2000, 2001, the headlines of
2008.
(21:18):
I mean, some of the newsmagazines had breadline pictures
on the covers.
It's an emotionallygut-wrenching event sometimes,
and you need to be ready forthat, prepared for that.
SPEAKER_00 (21:33):
Yep.
Uh so yeah, at 41, I'd saywithin certainly within your
forties, maybe consider adding alittle bit of fixed income.
That's not unreasonable.
Yeah.
And if you find out that yourrisk profile is lower, then you
should probably add them soonerrather than later.
Because who knows what's comingnext, right?
Three X on SpaceX or something,I don't know.
SPEAKER_01 (21:55):
And I'm pretty sure that someday I don't know when.
I don't know how bad, but I'mpretty sure that one of these
days there's going to be a bigmarket decline in the stock
market.
And a lot of people, I know forthis I know for a fact because
I've experienced it along withall of you.
(22:15):
I know for a fact that many ofyou will say, okay, I thought I
could handle the stock marketgoing down.
I'm wrong.
I'm just going to get outbecause I'm too close to
retirement.
SPEAKER_00 (22:26):
Market only goes up.
No such thing as a bear market.
You know, there was a guy I usedto work with who retired early
because he said, I don't want tohave to coach my clients through
another bear market.
Because it's hard.
It's hard on this side too,trust me.
SPEAKER_01 (22:40):
It was really, really painful.
I I remember uh the one of themost painful was nine eleven.
Yeah.
When I was on the radio, andthen I came back after 9-11
because I was preempted for daysuh by round the clock coverage
of nine eleven.
And then when I came back, thefinancial show came back, almost
every caller was I gotta getout, I gotta get out, war's
(23:02):
coming, war's coming, I gottaget out.
I said, Did you no what no?
Right.
You know and the market was.
SPEAKER_00 (23:16):
Okay, that was a joke.
That was not me being cynical.
That was supposed to be funny,but yeah.
Okay.
Okay.
Got anything else?
That's all I got, man.
SPEAKER_01 (23:25):
We are just having more fun than we can stand, and
we want you to join us attalkingrealmoney.com and of
course on the podcasts aboutfive days a week.
Uh at talkingrealmoney.com, youcan ask us questions.
You can also do something thatcan be very, very, very
important to that long-termfuture you're trying to build,
and that is get a little helpfrom somebody.
(23:47):
You're a do-it-yourselfer.
You build your own portfolio.
Good for you.
Are you sure you're doing itright?
Because funny thing, we wediscover a lot of people aren't
doing it right, and uh really doneed a little nudge to get you
off in the right direction.
So you might want to meet withone of our fiduciary advisors.
Now don't just drive to anoffice because there are certain
(24:08):
advisors and appella who aretrained to be the the advisors
that we want you to to meetwith.
People who are gonna provide youwith free help, who are not
gonna charge, well, nobody'sgonna charge you, and are not
gonna try to convince youthrough high pressure tactics to
become a client.
(24:29):
So you want to make sure you goto talkingrealmoney.com, you'll
click you click on the buttonthat says meet an advisor,
that'll get you connected withone of the advisors who's a part
of our talking real money group,and they will provide you help.
I promise.
Free, no obligation, no highpressure sales pitch.
SPEAKER_00 (24:43):
I'll just add to that there's a specific talking
real money experience if you gothrough the website that you
will get that includes the freeanalysis on the portfolio,
discussion with advisor, allthat.
I can't guarantee that if you gosomewhere else.
SPEAKER_01 (24:58):
I mean Appella, even Apella is a big company now.
SPEAKER_00 (25:01):
Yeah, right.
SPEAKER_01 (25:02):
When we when we started working with them, it
was small.
Yeah, now it's gigantic withoffices all over the country.
And uh so go totalkingrealmoney.com.
That keeps you in our littlefamily.
Okay?
Anything else?
That should do it.
All right.
Thank you all for being a partof the program.
Please tell a friend or two.
And remember, very few places,very few podcasts, very few
(25:28):
resources of any kind out thereare actually talking real money.
SPEAKER_02 (25:35):
The opinions and views expressed on this podcast
were current on the daterecorded.
Opinions, estimates, forecasts,and statements of financial
market trends that are based oncurrent market conditions
constitute our judgment and aresubject to change without
notice, including anyforward-looking estimates or
statements which are based oncertain expectations and
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Although information andopinions given have been
obtained from or based onsources believed to be reliable,
no warranty or representation ismade as to their correctness,
(25:56):
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(26:17):
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(27:00):
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podcast.
And the lawyers get richer.
You're gone to a really great financial future.
Tom and Don are talking realmoney.
SPEAKER_01 (00:12):
I think the moral of today's story is going to be
hey, old guys, act your datingage.
But I'm not sure where we'regoing with this.
We're going to find out.
Hey, everybody.
Welcome to Talking Real Money.
We have a unique topic for youtoday, but it is money-oriented,
and Tom has special expertise intoday's topic that I do not
(00:32):
have.
In some ways, a little bit.
No, not to the extent you do.
No.
No, no, no, no, no, no, no.
You, you, you outdid me in moreways than one.
Most people.
Most people.
Yeah, most people.
Again, what's the show?
It's Talking Real Money.
I'm Don.
That's Tom.
We talk uh, well, money withyou.
And you are invited toparticipate in the program
(00:53):
anytime.
Just go to talkingrealmoney.comand and send in your questions,
your ideas, your thoughts, youropinions, whatever.
Just send them in there.
Don't don't go to there's a guyon Apple who listens on Apple
Podcasts and he keeps writingthe same review every two weeks.
(01:14):
And I I think Apple's have nowfinally shut it down.
I don't see it anymore.
It's the guy, the guy who thinkswe're totally off base with
crypto over and over and overand over and over again.
But you know, send us your ideasat talkingrealmoney.com on the
contact form, and we can we canactually have a conversation
about them if you'd like.
We'll get in touch with you andhave a talk with you.
(01:37):
We will uh get you in.
Uh even if your ideas totallyconflict with ours.
As a matter of fact, you move tothe top of the list.
SPEAKER_00 (01:46):
Yeah, no, we take every question.
We we answer every question.
There's one coming up on um onon how we help people.
So I it's you know, we helppeople.
SPEAKER_01 (01:57):
Today's topic, though.
People becoming parents a littlebit later in life.
Now, in less than politecompany, they might call that
robbing the cradle, but uh it'sin Tom's case, she she was fully
grown.
She was an adult when he marriedher.
And you know, uh the specialfinancial challenges that come
(02:23):
with having a kid as you'reapproaching retirement.
And and I can see why therewould be some, because now
you're getting into, you know,when you get into your 50s,
you're really looking 15, 20years down the road and going,
am I going to be able tocomfortably pay for my
retirement?
You luckily did well in businessand and will probably be pretty
(02:44):
comfortable, but not everybodyis, and there are a lot of
financial challenges to becominga parent later in life.
SPEAKER_00 (02:50):
Yeah, it and this is a a bigger deal than you might
think.
It women 40 and older accountedfor 4.3 percent of U.S.
births in 2025, so 4 percent.
That's up from 1.2 percent in1990.
So 35 years ago.
SPEAKER_01 (03:05):
Yeah, but how many fathers 50 and older?
I want to know.
They don't give that number.
They don't give that number.
SPEAKER_00 (03:09):
The average first-time mother, 27.5.
That's a record high.
So, and you can be pretty surethat the men are getting older
too.
So uh, but and this is moreabout them.
And just for full disclosure,okay, because we we put
everything out there, I'll justI'll just I'll just put it out
there.
I had a child of 50 who uh whojust this recently uh graduated
(03:30):
from high school.
So you can do the math, figureout how old I am.
That was pretty she didn'tgraduate early, so uh and she uh
yeah she she went to privateschool for the last uh eight or
nine of those years, so it hasnot been inexpensive.
SPEAKER_01 (03:44):
Over her 18 years of life.
How many times have you beenmistaken for her granddad, Tom?
SPEAKER_00 (03:52):
Well, you know, that's early, early on, many
times, fascinatingly enough,when she was a baby, people say,
Oh, it's so nice you got yourgranddad.
No, that's my daughter.
But just recently, it would notsurprise you to know that I have
a routine that includes going tothe grocery store at seven
o'clock in the morning on Sundaymornings.
SPEAKER_01 (04:11):
Yeah, time that no one, no one goes to the grocery
store.
SPEAKER_00 (04:15):
It started with COVID because I just wanted to
go then get it out of the way.
But it just sort of kept.
I mean, this is how my lifeworks.
I get in ruts.
And uh so there, I got guesswhat?
I get to know the people thatare every Sunday at seven, the
people that work there,including my favorite uh
vegetable stalker.
Is that the right word?
I would just call him greengrocer.
SPEAKER_01 (04:38):
The the guy in the vet in the produce department,
your produce produce guy.
Produce guy.
Yeah, produce guy.
SPEAKER_00 (04:45):
He always stops and we chatted up for a couple of
minutes.
Well, a couple weeks ago, mydaughter came with me, which she
never does.
I can't remember the occasion,but and it was 9 a.m.
He's like, Are you okay?
You're really late.
What's what's what's the deal?
And I pointed at my daughter,said, Oh, it's her.
He goes, Oh, you brought yourgranddaughter.
SPEAKER_01 (05:03):
Your 18-year-old granddaughter.
SPEAKER_00 (05:05):
And I said, No, that would be my daughter.
He felt so in fact, he felt sobad that this week when I was
there, he goes, I still feel Isaid, just it it's okay.
SPEAKER_01 (05:13):
He's used to it by now.
SPEAKER_00 (05:14):
The hair color effects.
SPEAKER_01 (05:16):
Have you listened to his podcast?
SPEAKER_00 (05:18):
Exactly.
SPEAKER_01 (05:19):
He's used to it by now.
SPEAKER_00 (05:20):
You know, all in so yeah, okay, I've taken the
slings and arrows.
But I will, on the other side ofthat equation, I will say this
time with my daughter, I don'tknow if it was her maturity or
mine, but it was the easy, she'sbeen the easiest child to raise.
SPEAKER_01 (05:33):
Um, right.
I, having known you since youhad tiny children, yes.
From your first marriage, uh,it's the maturity of you, sir.
It had nothing to do with her.
Okay.
You're you've changed a lot.
You have one thing about gettingold, and this is not financial,
but it does impact our finances,is that generally speaking, if
(05:56):
we paid a modicum of attentionalong the way, we mellow as we
age a bit.
SPEAKER_00 (06:03):
Oh, is that what I've done?
I've mellowed now.
SPEAKER_01 (06:04):
You've you've gained some wisdom and some and some
weight.
SPEAKER_00 (06:08):
And some that was too easy.
I had that.
Okay, but let's go.
This is fascinating.
So the the Wall Street Journaldid a a full I this how many
words this?
I don't know, like 9,000 orsomething.
Big article on older parentsencountering new financial
costs.
So I'm always fascinated becauseI'm part of that group, right?
I mean, I had kids.
So here's a guy that they havein here.
(06:30):
Um he's 58.
He had a child when he was 50,right?
So that sounds familiar.
Um, and it the his lead-in is Idon't know what my retirement
picture looks like now.
It's totally up in the air.
But in the article, he says inthe first year of parenthood, he
put$75,000 into a$529 savingsplan.
SPEAKER_01 (06:53):
I immediately know what's wrong with your future,
sir.
You did the thing that we havebeen advising against for as
long as we've been doing thisshow, and that that is
prioritizing your kids' collegeover your retirement.
It should be the other wayaround.
(07:14):
Totally.
Why?
Why should it be the other wayaround?
SPEAKER_00 (07:17):
Well, because uh this is a very simple adage, and
I think it works.
You can borrow money to pay forcollege.
You can't borrow money forretirement.
At the end of the day, you can'tanswer that.
SPEAKER_01 (07:29):
And let me just share with you a little factoid.
Most kids are gonna do just aswell in careers from a uh with a
degree from a state school thattend to be, if you're in state,
a lot cheaper than a anexpensive private school.
So if you can afford it, yeah,but don't hurt your future so
(07:52):
you can send your kids to an IvyLeague school.
SPEAKER_00 (07:55):
I think that's totally legit.
Uh, and here's another thing.
He this is an area that that iscostly because I still have some
some life insurance.
So he went out to he had ahealth problem.
He tried to go out and get lifeinsurance for a million-dollar
whole life policy.
He was quoted$36,000 a year.
That's a lot of money for lifeinsurance.
SPEAKER_01 (08:15):
Okay, whole life is building cash value, too.
SPEAKER_00 (08:18):
So um he's now considering a 20-year term
policy that uh would would onlyuh$300,000 would be$170 a month.
I urge him to take that option.
SPEAKER_01 (08:28):
Is this guy a regular guy or is this a finance
writer for the Wall StreetJournal?
SPEAKER_00 (08:33):
Regular guy.
Um lives in Texas.
SPEAKER_01 (08:35):
Okay, thank gosh.
So I I can advise him a littlebit.
SPEAKER_00 (08:38):
Well, let me finish, then you can give the full he's
also trying to figure out whatwhat it do about his social
security because he says if Itake it at sixty-two, I'm gonna
get twelve hundred dollars amonth.
SPEAKER_01 (08:48):
Don't take it at sixty two, you big dope.
SPEAKER_00 (08:50):
So this is all doopy.
That's what I said.
It's just crazy.
SPEAKER_01 (08:55):
I want to go back to the insurance though.
I want to grab these by the thethe the the individual bits,
because you can't really focuson the big picture.
You gotta get the little bitsout of the way.
His daughter is how old now?
SPEAKER_00 (09:08):
It's his son, so that would be let's see, so
eight.
unknown (09:12):
Eight.
SPEAKER_01 (09:12):
So he's eight years old.
Okay.
He's gonna graduate high schoolroughly in ten years, right?
SPEAKER_00 (09:18):
At about the time he's gonna want to retire, or
maybe earlier.
SPEAKER_01 (09:22):
Why would you get a 20-year term policy?
Good point.
Why would you not get a 10-yearterm policy?
SPEAKER_00 (09:28):
A lot cheaper, sure.
SPEAKER_01 (09:29):
Be a lot cheaper, and it covers the need.
You see, what he's doing is he'sconfusing the need with some
sort of a windfall for the kid.
And this is a big mistake wemake.
We want to like, I want to setmy kid up wealthy when he's 22
years old.
No, you don't.
You don't.
Would that have done, I mean,okay, you're probably looking
(09:50):
back and going, gosh, I wish myparents gave me a lot of money
when I was 22.
Yeah.
Would that have incentivized youto do the things that you've
done in life?
Those of you who weren't bornwith the silver spoon, come on.
SPEAKER_00 (10:02):
No, I think that's practical.
Very good advice.
I mean, but that's one that wasreally shocking.
Some of these other folks who Iwould still consider relatively
young because they're in their40s, but they spent what did
they spent?
70 to 80,000, one couple,$70,000to$80,000 for fertility
treatments to finally have achild.
That's a lot out of pocket.
(10:23):
That is a whole lot of money.
Um which has set them back,right?
Right.
Yeah, they didn't have it.
SPEAKER_01 (10:31):
Although when you think about it, think about I
mean, really all species ofanimal, which includes us, we
we're we're we're our legacy ispropagation.
SPEAKER_00 (10:45):
All you got.
SPEAKER_01 (10:46):
It's what you got, because you're gonna be dead.
Yeah, they don't last either.
SPEAKER_00 (10:51):
No, that's a good point.
SPEAKER_01 (10:53):
So um, president during the Civil War.
Oh, somebody already chose thatone.
Dang it, they got that.
SPEAKER_00 (11:00):
That didn't work out.
So, okay.
So but this does raise several,I think I wasn't a huge fan of
that article.
And again, I just think horribledecision to pile up money in the
uh 529.
If you have not properly savedfor retirement at that point,
that makes no sense.
SPEAKER_01 (11:16):
Did the author of the article give any advice or
was this just anecdote sharing?
SPEAKER_00 (11:21):
That's exactly what it was.
Yeah, no advice.
Um we can give advice, though.
Yeah, well, I was just gonna getto that.
Um because again, number one,the priority, I don't care what
age you are, needs to be yourretirement.
Gotta be.
SPEAKER_01 (11:35):
Not your house.
No.
It's not the car, vacations,it's not the kids' college
education.
It's not the legacy.
I got vacations in.
Uh no, it is the future of you,and if you have one, your
significant other or spouse.
That's what it's all about.
It's the hokey pokey in essence.
SPEAKER_00 (11:56):
Yeah.
Well, I and it's hard, right?
Because emotionally, as you justsaid, hey, I want to make sure
everybody's okay.
That and that gets back to thenumber two, which is the life
insurance.
I love what you just said aboutlimiting the term of it.
How about making if if collegeis important or whatever, making
it 22.
Make it to the the age of they'dbe done with school.
So if something were to happento you, they pay for it, right?
SPEAKER_01 (12:18):
Well, no, because the 529's already paid for that.
SPEAKER_00 (12:21):
Well, in that case, but in most people's case, they
haven't saved that kind of moneyin a 529.
I don't know what the averagesavings are.
SPEAKER_01 (12:27):
Again, though, again, we come back to they're
18, you got them through highschool, they can take out
student loans.
They're adults generally in mostplaces at 18.
Yep.
They can take care ofthemselves.
You do not have a financiallegal obligation to them anymore
at 18.
In most states.
SPEAKER_00 (12:43):
I'm going to go home and say that today.
I hadn't.
SPEAKER_01 (12:45):
Yeah, say I am done.
I wash my hands of you.
SPEAKER_00 (12:50):
Too late, she already got a copy of the credit
card.
Or no, she actually got thecredit card, so I'm you know
what.
SPEAKER_01 (12:56):
Okay.
That goes back.
We were talking about how thesepeople weren't particularly
bright about their financialdecisions.
That just hurts all over.
SPEAKER_00 (13:05):
Who gave her the credit card?
Yeah.
All right.
So again, um saving forretirement, got to do that
first.
Life insurance, I like what youjust said.
18 or 22, that's fair.
But here's the other part that Ithink people forget about, which
I kind of think I forgot aboutat 50.
Uh you're gonna end up workinglonger because it's just it's
just expensive.
You gotta the the costs arestill there.
SPEAKER_01 (13:26):
At least if you have a kid at 50, you pretty much
have to figure retirement is noearlier than 68.
SPEAKER_00 (13:33):
Yeah, I think that's right.
Um, I had not, and and I and Ilove my work and I'm glad I'm
working, but I had not thoughtthat through.
I'll be honest with you.
I I think looking back, if Ilooked at things 20 years ago, I
did not think I'd still beworking at 68.
SPEAKER_01 (13:46):
Oh, I did.
SPEAKER_00 (13:48):
Yeah.
I don't think I would have, Iwould have, I I think I would
have found another interest,another something to do, but um
really okay.
SPEAKER_01 (13:55):
Wait, let's come back to that because that's
another financial point we talkabout a lot.
You know, what you're gonna do.
Seriously, let's just just inyour case, my case, what other
thing would you have done thatyou were physically able at 68
to do?
SPEAKER_00 (14:13):
I wanted to I wanted I've already talked about this.
I wanted to be a docent at theair museum, which I just don't
think I'm qualified.
SPEAKER_01 (14:19):
That's a that's a once in a blue moon kind of.
You're not gonna do it everytime.
SPEAKER_00 (14:22):
Well, it's like once or maybe twice a week.
Um I wanted to do I wanted to dosomething um volunteer-wise with
soccer.
Which I'm gonna do.
SPEAKER_01 (14:29):
Not refereeing, though.
SPEAKER_00 (14:31):
Well, you can't do it to the not I mean, yeah, not
forever.
Uh just read about a guy who's74, though, still out hustling.
With the exoskeleton.
The exoskeleton.
Those were a couple of them.
I mean, and the other part wasfrankly, I wanted to, and I
don't think it's gonna happen uhbecause I only do it one day a
week.
I wanted to be kind of thedriver for my grandsons, like
(14:52):
take them from here to there.
But see, it doesn't work for myschedule today, so I think
they're gonna be too old by thetime it might.
SPEAKER_01 (14:57):
Buy yourself a little yellow school bus.
SPEAKER_00 (15:00):
Little one?
Oh, little ones?
I want the big one.
SPEAKER_01 (15:02):
Um the only two kids in the bus.
SPEAKER_00 (15:05):
You guys are getting the back.
Yeah, I said, but this is thisthe point of the matter is this
needs to be considered verythoughtfully because these are
major decisions.
When you have a child at 50 oreven late 40s, that's a big
that's going to be alife-changing decision that it
might not be if you had a childwhen you're 30.
I'll put it that way.
unknown (15:25):
Right?
SPEAKER_01 (15:25):
And he speaks from experience.
SPEAKER_00 (15:27):
Yeah, no, I uh and by the way, uh all kidding
aside, my daughter, whom I loveas you know deeply, who just
graduated, she was NationalHonor Society, she National
Choral Award, blah, blah, blah,etc.
I know I'm gonna brag about her.
It's not about me, it's abouther.
She's going to a very finecollege because she really works
hard academically.
SPEAKER_01 (15:47):
Wait, read between the lines.
A very fine college, expensive.
SPEAKER_00 (15:50):
That's not even between the lines.
That's written over the top ofthe whole thing.
It's expensive, yeah.
So anyway, I don't resent any ofthat.
SPEAKER_01 (15:58):
No, nor should you.
That I mean, she's a great kid.
Uh, we we love questions.
It's our favorite part of thepodcast, and yet you're kind of
letting us down a little.
The summer has been a littleslow.
And those of you who havewritten questions, well, one of
you wrote one that we're gonnaget to soon.
(16:21):
But it's dang, it's long.
You you we don't we don't payyou for these at all.
And we certainly don't pay bythe word.
Uh as a matter of fact, nooffense, but your question is
going through a heavy editbefore we can put it on because
we don't have 45 minutes just toread the question.
SPEAKER_00 (16:40):
That's what it took this morning, by the way.
unknown (16:42):
Long.
SPEAKER_01 (16:43):
It's really long.
Anyway, that's okay.
We don't mind.
We love the questions.
Send them in,talkingrealmoney.com, ask a
question button, click on that,and uh then either type them for
Tom or speak them for me on theFriday podcast.
And uh we're gonna we wanna makesure we have a question for
every episode, and we never wantto fake these questions.
They're always real, theseactually come from you.
(17:06):
Uh so uh we're we're down toright now just one a day to make
sure we have enough to getthrough Tom's lengthy vacation.
So go ahead.
SPEAKER_00 (17:14):
I might call you from Rome or maybe Pompeii.
SPEAKER_01 (17:17):
If it's still there.
SPEAKER_00 (17:18):
Your ears are burning.
Can you say that in Pompeii?
No, I guess not.
Uh let's go to the questionsfrom That's what we were gonna
do.
Oh, pardon me.
Fall River Mills, California.
SPEAKER_01 (17:30):
Okay.
SPEAKER_00 (17:30):
I'm a Californian, I don't know the place.
Colin writes, hi Don and Tom.
I've been listening to thepodcast for years and wanted to
write in a question and alsothank you for helping me
understand what investing in thestock market really means.
I used to be someone who thoughtthey could read headlines or web
uh news websites and be able topredict the stock market.
What a fool I was.
Hey, good for you for a littleself-realization there.
(17:52):
With your podcast, I've finally,I think, been able to settle on
a portfolio allocation andstrategy I'm comfortable with
and have learned to become along-term investor.
Dude, you can just end theconversation right there.
That's really good.
You got it all right.
SPEAKER_01 (18:05):
Congratulations.
You're brilliant.
You need you don't needanything.
SPEAKER_00 (18:09):
He's 41, hopes to retire in 19 years.
Has 401k of 550,000 and a RothIRA of 100.
The asset allocation for eachaccount is as follows 50% in the
F Z R O X, that's a FidelityZero fee total U.S.
market index.
30% in the F.
SPEAKER_01 (18:28):
Oh, I thought it was invested in copier stock.
I thought it was just you know ZRocks.
SPEAKER_00 (18:33):
Z I L X, that's a Fidelity Zero, International
Index Fund, including developedand emerging markets, and 20% in
AVUV, which is U.S.
small cap value.
Yep.
First question does this soundlike a reasonable portfolio
allocation to you?
Yes.
SPEAKER_01 (18:48):
There we go.
SPEAKER_00 (18:49):
See how that was?
I mean, that's perfectly fine.
Yeah, that's really good.
I I currently maintain the 50,remember, 50 in the U.S., 30
international, and 20% U.S.
small cap value in bothretirement accounts.
Remember, one's 550, the other's100.
Rebalancing them separately tomaintain the same in each.
What are your thoughts on thestrategy?
(19:10):
The question, third question, orwhat are your thoughts on that?
Having two separate ones.
Okay.
I mean, because you got thethree funds in one, you got
three funds in another.
Yeah, it's fine.
SPEAKER_01 (19:19):
Again, for that kind of an account, it's fine.
Uh again, the you are, becauseof AVU V2 in this, you're
heavily overweighted U.S.
SPEAKER_00 (19:28):
Yeah.
SPEAKER_01 (19:29):
I think you should have more international.
SPEAKER_00 (19:31):
I concur.
Yeah.
SPEAKER_01 (19:32):
So he could add, by the way, he could add the uh I
think Avantis has a Avantis doeshave a uh let's see.
Avantis, what's theinternational small cap value?
Pretty sure they'd be able toget the international value.
Is AVDV.
It was right on the tip of mytongue.
AV.
SPEAKER_00 (19:48):
So maybe you could split A D V.
You could split the AVUV intoAVUV and AVDV.
SPEAKER_01 (19:52):
AVDV.
Yep.
That would actually be a reallysmart move.
Yeah.
SPEAKER_00 (19:55):
Uh third question.
I've been looking at theportfolio as a whole and having
100% of my 100% AVUV in my Rothand splitting the 401k to make
the total still be 50 3020.
Since the AVUV has the highestgrowth potential, having it in a
tax-free account might be a goodstrategy.
What are your thoughts aboutthat?
SPEAKER_01 (20:14):
I'm pretty much with you on everything except the
light international exposure.
SPEAKER_00 (20:20):
So are you okay with him having AVUV most of the Roth
in the Roth?
Yeah, because the expectedgrowth, as you point out, is the
best.
Maybe you split that one into AV U V, A V D V D V.
And then the other one is the5030, so you get a little more
international.
SPEAKER_01 (20:37):
And uh really it's uh ass soon, one of these days,
you need to start payingattention to your your risk
profile.
Yeah.
Because you've you're therereaches a point, and matter of
fact, go take the risk quizright now at talkingreal
money.com because there therereaches a point where I know
(20:58):
they're not any fun, but bondsare there just to keep you from
being stupid.
And we get stupid, we getemotional when when we believe
we will not do so.
Sometimes the headlines are justso powerful, and a lot of people
don't remember the headlines of2000, 2001, the headlines of
2008.
(21:18):
I mean, some of the newsmagazines had breadline pictures
on the covers.
It's an emotionallygut-wrenching event sometimes,
and you need to be ready forthat, prepared for that.
SPEAKER_00 (21:33):
Yep.
Uh so yeah, at 41, I'd saywithin certainly within your
forties, maybe consider adding alittle bit of fixed income.
That's not unreasonable.
Yeah.
And if you find out that yourrisk profile is lower, then you
should probably add them soonerrather than later.
Because who knows what's comingnext, right?
Three X on SpaceX or something,I don't know.
SPEAKER_01 (21:55):
And I'm pretty sure that someday I don't know when.
I don't know how bad, but I'mpretty sure that one of these
days there's going to be a bigmarket decline in the stock
market.
And a lot of people, I know forthis I know for a fact because
I've experienced it along withall of you.
(22:15):
I know for a fact that many ofyou will say, okay, I thought I
could handle the stock marketgoing down.
I'm wrong.
I'm just going to get outbecause I'm too close to
retirement.
SPEAKER_00 (22:26):
Market only goes up.
No such thing as a bear market.
You know, there was a guy I usedto work with who retired early
because he said, I don't want tohave to coach my clients through
another bear market.
Because it's hard.
It's hard on this side too,trust me.
SPEAKER_01 (22:40):
It was really, really painful.
I I remember uh the one of themost painful was nine eleven.
Yeah.
When I was on the radio, andthen I came back after 9-11
because I was preempted for daysuh by round the clock coverage
of nine eleven.
And then when I came back, thefinancial show came back, almost
every caller was I gotta getout, I gotta get out, war's
(23:02):
coming, war's coming, I gottaget out.
I said, Did you no what no?
Right.
You know and the market was.
SPEAKER_00 (23:16):
Okay, that was a joke.
That was not me being cynical.
That was supposed to be funny,but yeah.
Okay.
Okay.
Got anything else?
That's all I got, man.
SPEAKER_01 (23:25):
We are just having more fun than we can stand, and
we want you to join us attalkingrealmoney.com and of
course on the podcasts aboutfive days a week.
Uh at talkingrealmoney.com, youcan ask us questions.
You can also do something thatcan be very, very, very
important to that long-termfuture you're trying to build,
and that is get a little helpfrom somebody.
(23:47):
You're a do-it-yourselfer.
You build your own portfolio.
Good for you.
Are you sure you're doing itright?
Because funny thing, we wediscover a lot of people aren't
doing it right, and uh really doneed a little nudge to get you
off in the right direction.
So you might want to meet withone of our fiduciary advisors.
Now don't just drive to anoffice because there are certain
(24:08):
advisors and appella who aretrained to be the the advisors
that we want you to to meetwith.
People who are gonna provide youwith free help, who are not
gonna charge, well, nobody'sgonna charge you, and are not
gonna try to convince youthrough high pressure tactics to
become a client.
(24:29):
So you want to make sure you goto talkingrealmoney.com, you'll
click you click on the buttonthat says meet an advisor,
that'll get you connected withone of the advisors who's a part
of our talking real money group,and they will provide you help.
I promise.
Free, no obligation, no highpressure sales pitch.
SPEAKER_00 (24:43):
I'll just add to that there's a specific talking
real money experience if you gothrough the website that you
will get that includes the freeanalysis on the portfolio,
discussion with advisor, allthat.
I can't guarantee that if you gosomewhere else.
SPEAKER_01 (24:58):
I mean Appella, even Apella is a big company now.
SPEAKER_00 (25:01):
Yeah, right.
SPEAKER_01 (25:02):
When we when we started working with them, it
was small.
Yeah, now it's gigantic withoffices all over the country.
And uh so go totalkingrealmoney.com.
That keeps you in our littlefamily.
Okay?
Anything else?
That should do it.
All right.
Thank you all for being a partof the program.
Please tell a friend or two.
And remember, very few places,very few podcasts, very few
(25:28):
resources of any kind out thereare actually talking real money.
SPEAKER_02 (25:35):
The opinions and views expressed on this podcast
were current on the daterecorded.
Opinions, estimates, forecasts,and statements of financial
market trends that are based oncurrent market conditions
constitute our judgment and aresubject to change without
notice, including anyforward-looking estimates or
statements which are based oncertain expectations and
assumptions.
Although information andopinions given have been
obtained from or based onsources believed to be reliable,
no warranty or representation ismade as to their correctness,
(25:56):
completeness, or accuracy.
Information presented on thepodcast is not personalized
investment advice from OppelloWealth.
The views and strategiesdescribed may not be suitable
for everyone.
This podcast does not identifyall the risks, direct or
indirect, or otherconsiderations which might be
material to you when enteringany financial transaction.
We hope you realize that theinformation provided on Talking
(26:17):
Real Money is for informational,educational, and hopefully
enjoyable purposes only.
The podcast is not trying to getyou to buy or sell any financial
products or security.
Instead, the program is providedas a public service by Apello
Wealth, a fee-only registeredinvestment advisor.
See Appello Wealth's ADB Part 2Aon our website for information
regarding Appello's fees andservices.
Apello Capital, L L C D B AAppello Wealth, is an investment
(26:39):
advisory firm registered withthe Securities and Exchange
Commission.
The firm only transacts businessin the states where it is
properly registered or excludedor exempt from registration
requirements.
Registration with the SDC or anyState Securities Authority does
not imply a certain level ofskill or training.
Apello does not provide tax orlegal advice, and nothing either
stated or implied here should beinferred as providing such
advice.
Thanks for listening, and pleasevisit talkingrealmoney.com for
(27:00):
more information and importantdisclosure related to
performance of any specificindex or fund quoted in this
podcast.
And the lawyers get richer.
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