Episode Transcript
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Speaker 1 (00:00):
Decision twenty twenty four.
Speaker 2 (00:02):
I've already made up my mind common sense coverage, but
I like here what other people have to say.
Speaker 1 (00:06):
Fifty five KRC the talk station.
Speaker 3 (00:17):
Tonight. The FED has lowered interest rates. So are you
rating your cash accounts? Is that a good move?
Speaker 4 (00:24):
You're listening to simply money present of my all Worth
financial I mean me Wagner along with Steve Ruby. You know, Steve,
what I find most of the time when it comes
to people's money.
Speaker 3 (00:31):
Is we're bit of procrastinators. It's like, ah, I have
to do this thing.
Speaker 4 (00:35):
I have to figure this thing out about my four
owe k I have to do a state planning. I
have to call my CPA. I'll put it on my
to do Listen, I'll get to it next week. But
when it apparently comes to the FED lowering interest rates,
meaning you might make less an interest on hield savings
accounts or your money market or CDs in the future, man,
(00:56):
there's no procrastination here. People are taking action.
Speaker 2 (01:00):
Yeah, they sure are. And you know this is something
that's been a long time coming. Obviously, as the FED
stepped in and finally reduced interest rates. Now we know
that the interest rates that we see on CDs and
treasuries and money markets are going to go down. It's
a little funny because I have a client that, you know,
I made a recommendation when when we got started the
(01:21):
last year.
Speaker 5 (01:22):
They said, look, I have some of.
Speaker 2 (01:23):
This money, but you know, I know I'm going to
spend it next year on a wedding. So what should
I do? And the advice was, well, we're going to
invest with a certain amount of money and then the
rest we're going to put that into a CD or
a treasury or highield savings acountant And he said around
how yield savings account And periodically he had been sending
me emails at the company. He would forward me the
emails at the company was sending about the increase in
(01:46):
what the high yield savings acount was paying. And he
got one recently that said, hey, great news, We're still
offering this and it was a decrease. It was just yeah,
the way that this business position that we have great
news for you.
Speaker 5 (02:01):
We're still offering but it was a lower number.
Speaker 4 (02:04):
Yeah, And we're seeing now and it's bearing out the
numbers that people are pulling money out of money market funds.
Speaker 3 (02:10):
I mean to the tune of seven.
Speaker 4 (02:13):
Point five billion dollars for just the past week that
ended in Wednesday, And so they're pulling money out of
these accounts, and interestingly.
Speaker 3 (02:23):
They're putting the money.
Speaker 4 (02:25):
At least what we're seeing is a flow into equities,
a lot of.
Speaker 3 (02:30):
Them dividend paying equities.
Speaker 4 (02:31):
And listen, I just want to remind you that, yes,
we've been in this great time or you know a
period of opportunity for money that you have on the sidelines.
But I really think what you have to think about
your money is in three different buckets. What you're going
to need in the short term, and your emergency fund
should go into that bucket because you never know when
something's going to happen, and that has to be super liquid, right,
(02:55):
a high held savings account, even if if the interest
you're getting paid on that is going down, it's still
probably belongs there.
Speaker 3 (03:01):
Then you have kind of mid term money to.
Speaker 4 (03:03):
Your point, the client that you have that had the
wedding coming up, or you know something that you need
a down payment for something in two years, or someone's
going to start college in eighteen months and you're going
to be.
Speaker 3 (03:13):
Able to help them.
Speaker 4 (03:14):
Okay, that's kind of a mid term bucket, and you
can look at things like CDs and money market accounts
where that money might be tied up a little bit
in the short term, but you can get a little
more interest in them.
Speaker 3 (03:24):
And then you look at the long term money and.
Speaker 4 (03:27):
This is, hey, I'm not going to need this until
retirements or you know, for several several years. That's the
money that belongs in the market and in the fad.
Making a change you know, on interest rates shouldn't impact
where that money actually lives.
Speaker 2 (03:43):
Yeah, it's a little frustrating almost because people are they're
kind of playing a game here where with these these flows.
What we're seeing, especially with people understanding that that rates
are going to fall again before a year end, and
what they've done with dividend stocks pulling out of high
yielded savings and cd is putting the diben in stocks.
We've also seen a lot of flows, the largest inflow
(04:04):
in nearly two months in cryptocurrencies. You know, people people
are moving towards speculation, right with money that had been
parked in cash because it's gone.
Speaker 4 (04:15):
From as safe as possible to the other end of
the pendulum here.
Speaker 2 (04:18):
Yeah, and why I say that's a little frustrating. You know,
people are trying to game, you know, play a game.
Here is because when you're actually doing financial planning and
you have an understanding of what your your long term
goals are, your intermediate, your short term goals are, it
doesn't matter necessarily what what changes are happening around you,
because when you have that long term investment strategy and
(04:40):
you're disciplined, that's what you stick with. Don't try to
play these little games where yeah, I'm gonna pull out
of cash and put money into stock when markets are
at an all time high. It kind of boggles my
mind a little bit that this is how a lot
of everyday investors are behaving.
Speaker 3 (04:56):
I think it would be exhausting.
Speaker 4 (04:58):
I think it would be exhausting to have to antnticipate
what the Fed's next move is, or who's going to
be elected in the Oval office and what should I
do based on that, And you're constantly being reactive to
events that are so far beyond your control, when really
what you need to be focusing on is what you
can and should be controlling your own financial plan. And
(05:18):
I would say rarely, rarely then does it make sense
to change what you're doing based on those external circumstances.
Speaker 3 (05:25):
Now, yes, we were in a period where the FED had.
Speaker 4 (05:28):
Hyked interest rates and it did make sense during that
time to shop around and if you had money and
the sidelines, which hopefully you did at least for your
emergency fund, it did make sense to shop around and
maybe put it in an online bank where you were
getting you know, five percent or close to five percent. Rarely, though,
does it make sense to you know, respond to external.
Speaker 3 (05:47):
Things like that.
Speaker 4 (05:47):
And really it's not changing how you're invested or anything
about your plan. It's just taking advantage of an opportunity
that lies without you know, within that money that you
had sitting there for emergency fund.
Speaker 2 (06:01):
Yeah, and we uh, you know, on the show, we
talk a lot about different headlines that we come across
and that we see. And market Watch, yeah, they put
one out here that said stock investors face a gut
wrenching three months ahead after record market run. You know,
clearly I've shared my viewpoints about hating when I see
stuff like this because it can make people make it
(06:23):
can cause people to make emotional decisions. Obviously, people are
keeping a close eye on what the FED is going
to do in the next three months, and you know,
there are a lot of folks that are worried that
the markets are about to tank. So you see something
like this and you think, should I take action?
Speaker 4 (06:39):
You're listening to simply money presented by all Worth Financial,
I mean Wagner along with do you ruby? The Federal Reserve,
our nation Central Bank great recently lowered interest rates for
the first time in four years, and what we saw
is Americans rushing to pull money out of those higher
yielding accounts and putting it in other places.
Speaker 3 (06:57):
And it just makes us scratch our heads.
Speaker 4 (06:59):
Right, not the smartest long term plan to be moving
money around based on chasing you yield somewhere. And if
we're seeing people pulling money out of a money market
and putting it into crypto currency, I can't even understand
the reasoning that must be going through someone's mind when
they think about that. Now, yes, there's all of these
(07:20):
external factors going on, and there will be some volatility
in the markets, but I think what you have to
look at is the overall health of the economy. Now,
to be fair, we have all Works Chief investment Officer
Andy Stout on the show every Monday, and I really
do this is an incredibly smart person, and he is
also looking at realms and reams of financial data.
Speaker 3 (07:41):
I mean, dude's got a lot on his plate.
Speaker 4 (07:42):
He's managing twenty billion dollars worth of assets. He needs
to know what's coming down the pike, and he has it.
There is a potential for a recession next year. Well
before anyone runs to the hills, I think you have
to have the long term perspective of even if it's
going to happen, which, by the way, people have been
saying it's going to happen for two to three years now,
a terrible recession we've seen in the headlines, you know,
(08:04):
and it's you have to understand this is a healthy,
healthy I would say, normal part of the economic cycle.
Markets are going to go down, but one hundred percent
of the time, what we have seen over history is
that then the market's rebound to new highs.
Speaker 2 (08:21):
Yeah, that's not going to change, and Andy Stout certainly
doesn't think that's going to change either. But what we
do see is behaviors that people are taking place or
taking part in because of fear and greed. I would say,
and right now the markets have been very high and
we have got a lot of opportunity to get our
(08:41):
cash to work. So it is natural that folks are saying,
all right, well, this money that I had set aside
for short or intermediate term, you know, financial goals, is
now not paying me what I want it to. So
we're kind of in a euphoric period of time where
everything is green and the markets are high. I'm just
going to go ahead and put this money into the
stock market.
Speaker 5 (09:02):
And I see that.
Speaker 2 (09:03):
I actually have seen that in some of my meetings recently,
where you know, we have Anny reviews to touch base
and make sure that if there's been changes to somebody's
financial situation, needs or goals, that that's reflected in how
we're handling investments. This is what you know, all financial
advisors should be doing. I've had people that have traditionally
been what I would consider more conservative, asking me if
now is the time to take more risk? No, No,
(09:26):
now is not the time to take more risk, right,
And I'm not saying because the markets are high, I'm
saying you are this This question is being fueled by
by by greed, is what it is. And this particular
you know couple, they didn't need to take more risky
they could maybe afford to if they wanted to. But
I also happen to know that there's a history of
(09:48):
being really spooked and struggling to stay invested when the
markets do go down. So, you know, making decisions based
on some of these short term news pieces that we see,
or even Andy's talk of maybe having a recession next year,
that doesn't mean that it's time to make a sweeping
change to how you're.
Speaker 5 (10:06):
Investing, you know.
Speaker 4 (10:07):
And another thing that we are seeing in the wake
of the Fed's decision to lower interest rates is.
Speaker 3 (10:12):
Mortgage rates right dropping.
Speaker 4 (10:14):
We knew this was coming, and another headline we would
say is worth talking about right now is what's happening there?
Rates falling again and it has triggered a ton of refinancing.
So the contract rate on a thirty year fixed mortgage
went down two basis points, so now we're at about
six point one to three percent. I don't know, it's
(10:34):
not that it sounds so high, but it doesn't sound
like so low that I'm going to like jump in
and again, my rate's lower than that. You know, I've
been in this house for several years for I guess
anyone who you know bought a home during the during
the height of all of this inflation, you know, we
saw mortgage rates up to eight percent, six point one
to three percent.
Speaker 3 (10:54):
You know, could make sense, but you also have to
kind of run some numbers on.
Speaker 4 (10:57):
You know, there's going to be some upfront cost usually
associated with refinancing, and you know, so once you run
through those costs, figure out, you know, how much are
you actually saving. And I almost think it could make
some sense to wait before you jump into this process.
Speaker 2 (11:12):
Sure, but that doesn't mean that other people aren't hopping
on the opportunity. Here the Mortgage Banker's Association Refinancing Index
that jumped twenty point three percent and at the end
of last week, which is the highest it's been since
April of twenty twenty two. So obviously, people that are
locked in at the highest rates that we've seen in
many years see the six point one three percent, they're like,
(11:33):
all right, now's the time. You can't really blame them,
but you're right, at some point it's going to those
are going to go lower, just not as low as
I think we've seen in recent years.
Speaker 3 (11:42):
We've been spoiled, We have been really spoiled.
Speaker 4 (11:44):
Coming up next, we're tackling questions about something called the
five year Rule, building credit for a teenager, and much more.
You're listening to Simply Money, presented by all Worth Financial
here in fifty five KRC the talk station.
Speaker 6 (11:57):
Online at fifty five KRC dot com, on your phone
with the iHeartRadio app, and on hundreds of devices like Alexa,
Google Home, Xbox and Sonos and iHeartRadio station.
Speaker 7 (12:09):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 4 (12:30):
You're listening to Simply Money presented by all Worth Financial.
Speaker 3 (12:32):
I mean you Wagner along with Steve Ruby.
Speaker 4 (12:34):
If you can't listen to our show every single night,
you don't have to miss a thing that we talk about.
We have a daily podcast for you, search Simply Money.
It's right there on the iHeart app or wherever you
get your podcasts.
Speaker 3 (12:45):
Coming up at six forty three, some I rate.
Speaker 4 (12:47):
Tax rules that thousands of you are going to want
to know about. This is something that could impact you.
You know, we spend a lot of time on the
show talking about the Federal Reserve, our nation, central Bank,
interrat rates, inflation, the impact on you, and I think
for the people who listen to the show.
Speaker 3 (13:03):
You're probably by now very familiar with these concepts.
Speaker 4 (13:05):
But for the general population, many don't exactly understand what's
going on.
Speaker 3 (13:12):
So JP Morgan's Jamie Diamond kind of threw this out there.
Speaker 4 (13:15):
He says, probably there's about five percent of Americans that
really understand this process and how it impacts you.
Speaker 2 (13:23):
That's surprising. I thought more than five percent of Americans
listened to our show.
Speaker 3 (13:27):
I think it's like fifty percent.
Speaker 5 (13:29):
Actually they're about half of the population.
Speaker 3 (13:31):
Yeah, right, right, exactly fifty percent.
Speaker 4 (13:34):
I mean, who even wants them anyway?
Speaker 2 (13:39):
Oh, Amy, So you know, Jamie Diamond, his impression here
is that, you know, most people aren't tracking the Fed's
decisions and focus on the economy and the longer term
and how Americans are spending and saving.
Speaker 5 (13:51):
It's just not something that most people are paying attention to.
Speaker 2 (13:55):
In fact, that's to the point where a lot of
Americans are obviously they're aware of the FEDS exist since
at least to a recent Pew research study survey found
that forty five percent of Americans have a favorable view
on the US central banking system, while thirty two percent unfavorable,
twenty three percent on shore.
Speaker 4 (14:12):
Interesting numbers well, and also a recent NERD will Up
poll found sixty one percent of Americans are expecting to
take financial action once interest rates go down, if they're
going to buy a car or refinance a loan. So
I think, interestingly, the disconnect is you might know that
interest rates are coming down, but maybe you don't understand
the entire cycle of how they're getting there and who's
(14:34):
making these decisions.
Speaker 1 (14:36):
You know.
Speaker 3 (14:37):
It's it's funny.
Speaker 4 (14:38):
I mean, my kids make so much fun of me
because these are the things that I talk about in
my house, and I just, you know, I mentioned that,
you know, my daughter is in a personal finance class
right now, and she was like, you know, mom, gosh,
they're talking about the FED the other day. They've been
talking about five twenty nines, like it's new information to people.
And she's like, this is what we talk about over
tacos at our house at dinner, you know. And so
(15:01):
I think, you know, listen, most of us grew up
in homes where we weren't talking about these concepts, and
I understand that, you know, many people don't understand the
nuances of what the Federal Reserve does. But understanding how
these basic concepts work and passing them on to your
children could actually be a really great.
Speaker 2 (15:19):
Thing, sure, and how it affects you in the short
term and over the long run, because a lot of
people are, you know, pausing to make decisions about whether
or not it's time to buy a car or sell
their house because they'll have to buy a new one
and lock in and that that currently hire mortgage rate.
Speaker 4 (15:33):
I'm going to ask you a question, and you know
often I ask you questions on the show, and I
kind of already know the answer, And this is one
of those circumstances.
Speaker 3 (15:41):
Have you started your holidays shopping yet.
Speaker 2 (15:45):
Exactly close? It's like a week before, you know? That's
I think. I hope I'm with the majority of men
out there that that procrastinate on their shopping. I certainly do,
and I pull it off, do the job. I work
well under pree.
Speaker 4 (16:00):
Okay, Okay, however, you want to tell yourself it's okay
that you procrastinate. But interestingly, there's some new bank greet
research out there that says about half of holiday shoppers
are planning to start shopping before Halloween, so in the
next month or so. I have a friend who every
year is finished within all of all for holiday shopping
(16:21):
before October first.
Speaker 5 (16:23):
That's amazing.
Speaker 3 (16:24):
It stresses me out to even think about it. I
don't even start thinking about it. I would say, honestly.
Speaker 4 (16:31):
Probably November first is when I start to then say,
all right, kids, like, let's get these lists together, let's
start talking about it. And some of this research also
shows that people are, you know, planning on spending a little.
Speaker 3 (16:42):
Less this year.
Speaker 4 (16:44):
Thirty three percent of that said that, you know, they're
spending less than they did last year. You know, I
always think people have the best lead plans and then
reality comes along, and I wonder if we went back
and revisited how many people who said they were going
to spend less actually spent less. I think there might
be a bit of a discrepancy there.
Speaker 2 (17:00):
So, you know, I saw this too, and it pointed
to the fact that fifteen percent of folks save their
holiday shopping for December. So I'm in the upper echelon
of individual and.
Speaker 4 (17:12):
You're probably spending more because you can't be looking for
deals when it's December twenty fourth in your shop.
Speaker 3 (17:17):
You got to take what you can get at that point.
Speaker 5 (17:19):
Sure you can, you can find great deals.
Speaker 2 (17:21):
That comes from somebody who's clearly never gone shopping on
December twenty fourth.
Speaker 3 (17:25):
Oh that's true. That's true. And you know there's always
this push.
Speaker 4 (17:28):
Every year of you know, what can you do instead
of spending money? And I will say I actually had
this conversation a couple of years ago. My aunt and
cousin and I were very close, and we always buy
gifts for each other, and I was like, we're all
making money, so we're at the point where what we
really actually value right now is time together. So instead
of buying each other gifts, we make plans to go
(17:51):
to dinner together, or go to the spa and get
a massage together. And so instead of kind of buying something,
we realize, like, what we really want the gift to
each other is is time together. So I do think
there's more and more Americans who are looking at kind
of experiences in what you really value than junk, because
I've actually seen some research that shows it's like sixty
percent of the gifts that you give for Christmas have
(18:13):
actually been made it to a landfill like six months later.
Speaker 5 (18:18):
Well, you can't do that with an experience, can you?
Speaker 3 (18:20):
You can't do that with an experience. It's much more memorable.
Speaker 5 (18:23):
I don't know.
Speaker 3 (18:23):
Something to keep in mind.
Speaker 4 (18:24):
Every Sunday you're going to find our all Worth Advice
in the Cincinnati Inquirer, but we give you a preview
on Friday Night show. First question from Shannon and Penalton County.
So she says, I'm changing jobs and I want to
roll over my wroth for O one k to my
wroth Ira. But I'm hearing about this five year rule.
How does it work in a situation like this?
Speaker 2 (18:44):
So the five year rule summarized is a roth ira
needs to have been in place for at least five
years before the earnings are considered tax free. So you
also have to be fifty nine and a half years
old to capitalize on that benefit. So depending on the
age here for Shannon and the timing of things, if
there's not already a wroth iray in place, and now
(19:05):
you're opening a wroth iray to move those wroth four
one k dollars into that five year clock for being
able to access the earnings on those dollars tax free
starts that year.
Speaker 4 (19:18):
And then you know, another thing to think about too,
is there's a lot of people thinking about roth conversions
when you get to retirement because likely for you know,
most of you, you'll go from that paycheck coming in
to that paycheck no longer coming in, which would make
you in a lower tax bracket. So a lot of
people looking at roth conversions during that time. You know,
so ideally, this is money that you're not necessarily going
(19:38):
to need to touch for five years, so that you
can fully take advantage of kind of the tax implications,
the tax strategy and benefits of that versus then stressing
out about needing that money in whether you're or not
you're going to have to touch it in those five years.
Speaker 2 (19:52):
Yeah, Sean from Lovelin, how can I help my son
start building a credit history?
Speaker 5 (19:56):
He is sixteen years old?
Speaker 4 (19:58):
You know, I think about Steve, and I'm a few
years older than you. But when I first started college
and we got on campus, there were literally tent set
up all over the place and they were giving us
credit cards, like sign up for this.
Speaker 3 (20:09):
Here's a credit card, you get a free T shirt,
you get a free water bottle. They've dialed back on
that now.
Speaker 4 (20:14):
And they've made it much more difficult in a good way, right,
I think it's protecting people. But also what you have
to understand is it's harder and harder to get a
credit card. Our oldest applied a couple of times and
was denied until she had she was making enough money.
So one way that you can help like a sixteen
year old will be to make them an authorized user
on your credit card. Now, a few things I would
(20:35):
say that you should have part of that conversation. You
should get alerts whenever they're spending money, and you should
give some direction on this. You don't want to tank
both of your credit because your son's out spending, but
letting them piggybank on your credit, assuming it's good credit,
can be really beneficial in this situation. So I like
that you're thinking along these lines, and you know, you
(20:56):
think about if your son's going to need to buy
a car or take out some student loans, anything along
those lines. It's really good to have a credit history
established by that time. Parents, you can help a lot,
So start thinking along these lines. Coming up next, is
it worth taking a pay cut if you were going
to have a better work life balance. We've got Julie
on the Job next. You're listening to Simply Money, presented
(21:17):
by all Worth Financial. Here in fifty five KRC, the
talk station.
Speaker 3 (21:21):
This is fifty five KRC, an iHeartRadio station.
Speaker 4 (21:29):
You're listening to Simply Money, presented by all Worth Financial.
I'm Amy Wagner along with Steve Ruby. There is a
study that caught our attention. Fifty percent of us, so
one out of every two of us say I would
take a twenty percent pay cut if it meant better
work life balance.
Speaker 3 (21:45):
We've talked about this on the show.
Speaker 4 (21:46):
Tonight, though we're pulling in Julie Boukie, Julie on the
Job with her expertise on this subject. Julie wondering, does
this research surprise you or is it in line.
Speaker 3 (21:56):
With what you would have thought.
Speaker 8 (21:58):
It's very much in line what I would have thought.
In fact, I think if this question would have been asked,
you know, five, ten, twenty years ago, we would have
done the same answer. People have always valued Yeah, people
have always valued flexibility, but it wasn't an option. And
whether it's freedom to take time off, whether it's freedom
to work a different hours, work from anywhere, work from home,
(22:20):
work flexibly. That has always been really people's main desire,
but because it was never an option, no one really
brought it up. Well, now all of a sudden that
it's an option and will continue to be going forward.
In fact, as we move forward, it's only going to
become more common. People are saying, yeah, you know, I
(22:41):
when I look at what I value, pays great. But
some people have a situation in which they are they
would be able to take a pay cut to continue
to work flexibly because they value that more. Now, not
everybody is in that position, but I think it says
a lot about how people really are valuing all the
(23:03):
sectors of their lives now, not just putting work over everything.
Speaker 2 (23:07):
My concern comes from that of the financial planner's perspective.
How might this affect one's ability to retire?
Speaker 8 (23:15):
Yeah, I mean, it definitely is something to consider. And
so that's why I say it's really not for everybody.
If you have a situation where let's say, you know,
you make you already have some safer retirement, you're maxing
out what's in the four A one K, you're saving
as much as you can and you're still able to
do this. You've got to look at the big picture
(23:38):
and go ahead. There are other people who have maybe
dual income, and they make great money.
Speaker 3 (23:43):
But their lives as a unit.
Speaker 8 (23:46):
Are chaotic because everybody's on is on the eight to
five hamster wheel, and the opportunity for one of those
two people to step back while still considering the long
term is definitely an option. So I think it's not
a decision that should ever be made in a vacuum,
(24:07):
although on some days it may feel like, my gosh,
you know, it almost gave up fifty percent of my
salary in order to be able to manage my life.
And so people are looking at their whole lot versus
work and then everything else. So yeah, I think you've
got to take a look at that as well.
Speaker 4 (24:25):
Actually, you talk about the fact that you think if
this study had been done five or ten years ago,
people would have had the same response. I do think though,
the difference is and I think about when I first
started working in my twenties. Yes, I might have valued
work life balance, but I never would have said that
because I feel like the culture at the time and
the workforce was you work your butt off you show up,
(24:47):
you are married to that job. That is the only
way that you get ahead, and to express anything otherwise
would have been career suicide.
Speaker 3 (24:55):
I would have felt like, you know. And so it
just seems like the shift has been in the fact.
Speaker 4 (25:00):
That now you've people graduating from college who are saying, actually,
even more than a high salary, I actually value a
work life balance. I don't feel like I could have
talked about it back in the day.
Speaker 8 (25:13):
No, no, no, you know, it was very much for
especially I mean, I'm a boomer, you know, Boomer's gen xer.
For sure, we're always very much We were told, you
work hard for forty years, you have to deserve or
earn that time off or that time to relax, to
that vacation time. And you know, that's all great, And
(25:34):
I think there's there are certainly some people in older
generations who believe that that was the way to go.
But without a doubt, survey after survey is that people
are two thirds or more people are miserable at work.
So I'm saying, maybe that wasn't the right way to go,
Maybe that wasn't correct. And younger people also saw their
(25:56):
parents and grandparents complain about work, have to miss their
activities or have to miss family vacations because of work,
and so they've seen this and said maybe there's a
way to do this differently. And what I love is
that a lot of Gen X and boomers are watching
what millennials and Gen Z how they look at work,
(26:16):
and they're saying, huh wow, there's some envy there, like
I wish that would have been when I was there.
Speaker 3 (26:23):
Yeah.
Speaker 8 (26:23):
Yeah, So there's a lot of stuff going on around that,
but it's not going back to the way it was
where work becomes a forty years log doing one thing.
Then you're allowed to have fun. That is literally never
coming back.
Speaker 2 (26:36):
So you see that there's been a cultural pivot almost
where employers now have to offer more flexibility in order
to attract talent.
Speaker 5 (26:44):
Is that what you're saying?
Speaker 8 (26:45):
Yeah, yeah, the smart ones are figuring that out. Unfortunately,
there are still a lot of them out there who
aren't getting it. They still believe that they pound their
desks their fifth and order people back they'll come because
boomers would have, but the younger generation is like, no thanks,
and they're moving on to find something else.
Speaker 2 (27:05):
Realistically, do we even need to take a twenty percent
pay cut to find a job with more flexibility in
this day and age.
Speaker 8 (27:11):
Then sometimes we don't. You know, frankly, a lot of
this comes down to econ one oh one is their
demand for what you do. The more demand there is
for what you do, and the better at it you are,
the more leverage you have and negotiating your situation. The
smart companies out there are saying, well, we won't make
you take a pay cut. Come work for us, and
(27:32):
we will. We'll give you all that as long as
you perform. And I think that's that's the that's the key.
This is not a I you know, I'm going to
get all of this and I'm going to sit at
home in my bed and my pajamas and do the
bare minimum. And you know that's that's not going to work.
Speaker 3 (27:49):
When you're in the point of looking for a new job.
Speaker 4 (27:52):
First of all, how do you how do you say
that you value work life balance, Because I guess there's
part of me that still is a little nervous about
kind of putting that out there during the interview process.
At the same time, you don't want to sign up
for something and then all of a sudden, and I've
heard people complain about this, saying, you know it was
advertised is hybrid, and then all of a sudden they.
Speaker 3 (28:12):
Expecting me to be back. So how do you communicate that.
Speaker 4 (28:17):
That's the expectation, but still also make sure that what
you're getting is what you thought and that you're still
an attractive candidate even though it is something that you value.
Speaker 8 (28:28):
The first thing I would do is, first of all,
there is no way to guarantee that what you've been
told in the interview process is always going to exist.
There's no way. But what I would do is start
with those companies go on flex jobs, and there's a
few other sites where they have really great with all
remote jobs or all flexible jobs. So if you are
(28:49):
a company and you are posting your openings on sites
like flex jobs, you are putting it out there and
saying we provide flexibility of some sort to our people.
And so start with those the companies and see what
they have to offer. Be super clear that. Here's my situation.
I had a client recently took a high profile job
(29:09):
and she said to the person hiring her, I have
small children. I can only do It's a job that
requires a lot of evening stuff and she said two
nights a week, that's it, and he said that's fine,
and she put it she had it in an email
confirmation and so far it's worked beautifully. So being very clear.
Once you determine there's mutual interest, that they really want
(29:33):
you and you're very interested, then you can talk about
here are the things that. Look, I'm going to come
in and I'm going to do a great job for you,
and all the references and all my LinkedIn recommendations will
attest to that. Here are some of the things that
because of where my life is right now, I need
to be clear with you before I say yes, because
(29:54):
I don't want either of us to get in a
bait and switch situation. So being super clear upfront, but
not like demanding right out of the shoot. Again, you
have to wait until you've got the mutual interest and
then get everything in writing. And sometimes you can't get
some of that stuff in writing, but because it's like
it's a deal between you and your bought, your manager.
But you can create an email trail that says, you know,
(30:18):
as discussed on every Tuesday and Thursday during the school year,
my start time cannot be until nine o'clock, but I will,
of course work till six and you know, and I
will you know, make sure that the ball doesn't drop anywhere.
And so flexibility without some sort of commitment to strong
performance and then following it up with strong performance is
(30:42):
never going to get you what you want.
Speaker 3 (30:44):
So the key is clear communication going both ways.
Speaker 4 (30:49):
But if this is your expectation right work life balance,
you certainly have to put it out there.
Speaker 3 (30:53):
Julie, I love your.
Speaker 4 (30:53):
Point about the fact that just the culture around this
has changed, it will continue to change, and you see
it staying this way for the foreseeable future.
Speaker 3 (31:01):
It means that our children will grow up probably with
better work.
Speaker 4 (31:04):
Life balance than many of us ever did. Great insights,
as always from Julie Balki. Julie on the job, you're
listening to Simply Money presented by all Worth Financial here
in fifty five KRC the talk station.
Speaker 1 (31:16):
Your opinions are welcome to here.
Speaker 4 (31:18):
Why do we keep letting thousands of people come over
and do nothing about it?
Speaker 3 (31:21):
My family's safety is at risk.
Speaker 1 (31:23):
Fifty five KRC the talk station.
Speaker 4 (31:30):
You're listening to Simply Money presented by all Worth Financial.
Speaker 3 (31:32):
I mean you Wagner along with Steve Ruby.
Speaker 4 (31:34):
If you've got a financial question, you want our help
and weighing in on. There's a red button you can
click on while you're listening to our show. It's right
there on the iHeart app. Record your question. It's coming
straight to us. We'll help you figure it out. And
straight ahead, we'll help you figure out how to save
some bucks on car repairs, because maybe you've noticed this recently,
but the price of getting a car repaired is falling
(31:56):
on the astronomical side.
Speaker 3 (31:58):
So we'll get into that.
Speaker 4 (31:59):
This something actually that happens all the time to the
clients that we work with, the investors that we work with,
and I was actually just talking to one last week
whose mom had recently passed away. And you're dealing with
the emotional sides of these things, but there's also a
lot to deal with with these estates. And one of
the things that you have to think through is the
tax consequences of inheriting this money.
Speaker 2 (32:21):
Yeah, part of financial planning. It's not just the investment
management side of things. It's tax planning, tax management, and
this is kind of what that topic surrounds because what
people don't oftentimes realize is if you inherit an.
Speaker 5 (32:36):
IRA, it goes into an inherited IRA. As long as
it's not your.
Speaker 2 (32:40):
Spouse, then you have to open your inherited IRA, and
with that you inherit the tax liability of those dollars
based on your own income tax bracket. Now there have
been changes Secure Act two point zero Secure Act that
passed a few years ago. What it did is it
removed what was called the stretch IRA, which would enable you,
(33:02):
as the person that inherited that account, to stretch the
rmds out over the course of.
Speaker 5 (33:07):
Your entire life. Now it's a ten year window.
Speaker 3 (33:11):
It changed things. And here's why it changed things.
Speaker 4 (33:14):
Because Uncle Sam was like, wait a second, we're waiting
too long to get our fingers on this money, you know.
And so from the perspective of someone who's inherited the money,
it gave you all kinds of flexibility. Maybe you don't
need that money for years, so you don't have to
tap it for years.
Speaker 3 (33:30):
Secure Act two.
Speaker 4 (33:31):
Point zero said, Okay, hold on, not so long anymore.
You don't get to deal with this over the course
of your lifetime. You have ten years to spend this money,
and so you really have to look at the tax
consequences of that. You take it all out at once,
you're likely going to be bumped into.
Speaker 3 (33:47):
A higher tax bracket. So I think this is where I.
Speaker 4 (33:50):
Say, you know, you want that team of people working
with you, and you need a good tax professional as
these laws continue to evolve, Secure Act two point zero change,
and you're dealing with the emotional repercussions of losing someone
that you.
Speaker 3 (34:04):
Care about, but you also have to figure out a.
Speaker 4 (34:07):
Strategy for taking out this money over the course of
the next decade that's going to be the most tax
advantage to you.
Speaker 5 (34:16):
Yeah.
Speaker 2 (34:17):
Essentially, the reality of this situation here is with Uncle
Sam wanting to squeeze tax money out of you because
whoever you inherited the money from has deferred those taxes
for their entire life. It can create a situation where
there can be a bit of a tax bomb if
you don't manage expectations around distributions accordingly, spreading it out
over the ten years for example. And unfortunately, oftentimes people
(34:40):
that receive inherited iras they're smackedab in the middle of
the highest earning years that they've ever gone through in
their entire life, and now Uncle Sam steps in and says, hey,
send us that money while you're in the highest tax
bracket you may ever be in.
Speaker 5 (34:53):
What do we do?
Speaker 4 (34:54):
And it's interesting because the investor that I was talking
to last week was toward the end of his working career,
peak earning years. At the same time he was starting
to think about retiring, and then this sort of bomb
on top of it. Is this inherited money and how
to deal with it and the strategy around that and
what decisions that you make.
Speaker 3 (35:12):
And so we talk about that financial plan all the time.
Speaker 4 (35:15):
Is kind of your roadmap, but this is sometimes the
detour where you go back to that roadmap and you say, Okay,
this was the original plan. Now you have this extra money.
How do we weave this into the strategy that we
have for pulling this money, using this money at the
same time not having terrible tax consequences with it.
Speaker 2 (35:33):
Yeah, so if you know that you're going to be
retiring in the near future, then you can defer taking
those rmds. There's a couple of schools thought here, depending
on how the IRS might look at it. It's you
can wait until year ten to take the full distribution.
If it's a small account, maybe that's not a big deal.
But if it's a large account. If you're fortunate enough
to inherit a million dollar IRA, for example, then waiting
(35:55):
until year ten is just going to rock that thing
with taxes, So spreading it out accordingly, but maybe waiting
until you're no longer earning income, so taking distributions starting
the year that you retire, and then using those required
minimum distributions from your inherited IRA to supplement your paycheck.
For example, if you're still working and you're not yet
(36:16):
maxing out different retirement vehicles that you have access to,
you can increase your contributions for the deduction while taking
out distributions from the IRA to kind of create a
wash situation. So there's ways that you can help manage this,
but it's important to understand that when you have an
inherited IRA from a non spouse, that you only have
(36:36):
ten years to drain that account.
Speaker 4 (36:38):
I like the word strategy here because I think that's
what you have to have. This can't be like I'm
going to deal with this in a few years. It
is from the get go figuring out what the best
strategy is for you and just pulling back the curtain
a little bit on the IRS. This is an agency
who comes up with new rules, right, so secure at
two point zero, and then they wait a couple of
years and they say, we're going to give you some
(36:58):
guidelines about this as we decide how this is really
going to shake out, right, So as you're making decisions
in real time, then you've got the IRS sort of
changing the rules on you. So this is why it's
important to work with a tax professional. Here's the all
Worth advice inheritance tax laws can be incredibly confusing. Consult
a fiduciary financial planner and of course a tax pro
(37:18):
before you make any moves.
Speaker 3 (37:20):
Coming up next, how to save on car repairs.
Speaker 4 (37:23):
You're listening to simply money present of by all Worth
Financial here on fifty five KRC.
Speaker 3 (37:27):
The talk station.
Speaker 1 (37:28):
Happening all too oft to shut the government down, These
encounters with dem.
Speaker 4 (37:33):
Secret Service protocol happening, not enough to secure the border,
red lloin interest rate happening November fifth.
Speaker 1 (37:41):
Teamsters Unions no endorsement fight first set can make America
great again? It all happens every time. A lot of
things are happening now and into the future. At the
top of the hour, real moves in real time. If
it's happening. It happens here on fifty five KRC the
talk station. What if you could get the best healthcare
(38:01):
without waiting for an appointment.
Speaker 3 (38:03):
It is between groceries for my kids or gas for
my car.
Speaker 1 (38:06):
Talk about it here fifty five KRC, the talk station.
Speaker 4 (38:14):
You're listening to simply Money percent of all worth Financial
Immi Wagner along.
Speaker 3 (38:17):
With Steve Ruby.
Speaker 4 (38:19):
Okay, if you had an issue with the car recently
and taking it in to get repaired, and.
Speaker 3 (38:23):
You thought, what the heck why did that cost so much?
You are not alone.
Speaker 4 (38:28):
Car repairs are actually more expensive right now than ever before.
Speaker 2 (38:32):
Yeah, they've moved up faster than inflation. Oh, bank care, Yeah,
I know, right. Motor vehicle maintenance repair costs they increased
four point one percent per year from November of twenty
thirteen to November of twenty twenty three, So that ten
year period compared to just two point eight percent for
the overall consumer price index. It's getting more expensive more
quickly than everything else.
Speaker 4 (38:51):
Yeah, and so I think if you are looking at okay,
how do I save money? If you can find a
trusted car repay person that you know, that you can trust,
that are going to give you a good deal.
Speaker 3 (39:04):
They're worth their weight in gold.
Speaker 4 (39:05):
Right, doing your research talking to other people can go
a huge way. You know, a lot of those dealerships
sort of incentivize you to come back to them when
you try to resell that car, which can be great
for the resale value of the car, but not so
great over the years that you own it because oftentimes
the dealerships are more expensive.
Speaker 2 (39:27):
Yeah, depending on the type of vehicle you have and
how much money you have in the bank, it can
be beneficial to use the dealership because technically they're gonna
have more expertise attached to your particular vehicle than most
mechanics out there. But that doesn't mean that you can't
figure out what's wrong, understand the price behind it, and
just take that over to another mechanic, a trusted one
(39:47):
that can say I could do that for two hundred dollars.
Speaker 4 (39:49):
Less one of our producers, and I think this is
a brilliant idea. He prints out the list that the
actual maker of the car has, you know, with the
fifty thousand mile mark. This is all the things that
you need to have done, and then he takes it
to someone else that he trusts and they say, yeah,
we can do all these things that they would be
doing at the dealership, and we can do it for
two hundred dollars less of five hundred dollars less, right,
(40:09):
And so he knows it's getting done. All the things
are getting done, but he's going to be able to
do it cheaper. This is where doing your research comes
in handy. You have to think about cars nowadays, all
of the chips that are in them, all the electronic
and computer components. They're heavier, faster, faster, you know, so
collisions create a lot more damage. My husband was on
(40:31):
a side road and was rearunded a couple of years ago.
It was a Tesla and so all the computer chips
and all the things. It was like nine months.
Speaker 3 (40:39):
Before we got that car back. It was crazy.
Speaker 4 (40:42):
It took forever, and the cost, I mean, luckily our
our insurance company covered it, but it was astronomical.
Speaker 5 (40:47):
By the way.
Speaker 2 (40:48):
I saw something popular Mechanics Q and A with an
anonymous dealership service manager that says your bill is likely
to be padded with extra charges when you take it
through the dealership.
Speaker 3 (40:57):
Then they've done that.
Speaker 4 (40:58):
When I was just getting out of college, took a
car in It was a five hundred dollars charge. I said,
you need to call my dad. They explained all the
charges they got off the phone. They said it'll be
one hundred and twenty dollars because my dad. She didn't
need those things. They take advantage when you don't do
your research. Thanks for listening tonight. You've been listening to
Simply Money, presented by all Worth Financial. Here in fifty
five krs, the talk station decision to
Decision twenty twenty four.
Speaker 2 (00:02):
I've already made up my mind common sense coverage, but
I like here what other people have to say.
Speaker 1 (00:06):
Fifty five KRC the talk station.
Speaker 3 (00:17):
Tonight. The FED has lowered interest rates. So are you
rating your cash accounts? Is that a good move?
Speaker 4 (00:24):
You're listening to simply money present of my all Worth
financial I mean me Wagner along with Steve Ruby. You know, Steve,
what I find most of the time when it comes
to people's money.
Speaker 3 (00:31):
Is we're bit of procrastinators. It's like, ah, I have
to do this thing.
Speaker 4 (00:35):
I have to figure this thing out about my four
owe k I have to do a state planning. I
have to call my CPA. I'll put it on my
to do Listen, I'll get to it next week. But
when it apparently comes to the FED lowering interest rates,
meaning you might make less an interest on hield savings
accounts or your money market or CDs in the future, man,
(00:56):
there's no procrastination here. People are taking action.
Speaker 2 (01:00):
Yeah, they sure are. And you know this is something
that's been a long time coming. Obviously, as the FED
stepped in and finally reduced interest rates. Now we know
that the interest rates that we see on CDs and
treasuries and money markets are going to go down. It's
a little funny because I have a client that, you know,
I made a recommendation when when we got started the
(01:21):
last year.
Speaker 5 (01:22):
They said, look, I have some of.
Speaker 2 (01:23):
This money, but you know, I know I'm going to
spend it next year on a wedding. So what should
I do? And the advice was, well, we're going to
invest with a certain amount of money and then the
rest we're going to put that into a CD or
a treasury or highield savings acountant And he said around
how yield savings account And periodically he had been sending
me emails at the company. He would forward me the
emails at the company was sending about the increase in
(01:46):
what the high yield savings acount was paying. And he
got one recently that said, hey, great news, We're still
offering this and it was a decrease. It was just yeah,
the way that this business position that we have great
news for you.
Speaker 5 (02:01):
We're still offering but it was a lower number.
Speaker 4 (02:04):
Yeah, And we're seeing now and it's bearing out the
numbers that people are pulling money out of money market funds.
Speaker 3 (02:10):
I mean to the tune of seven.
Speaker 4 (02:13):
Point five billion dollars for just the past week that
ended in Wednesday, And so they're pulling money out of
these accounts, and interestingly.
Speaker 3 (02:23):
They're putting the money.
Speaker 4 (02:25):
At least what we're seeing is a flow into equities,
a lot of.
Speaker 3 (02:30):
Them dividend paying equities.
Speaker 4 (02:31):
And listen, I just want to remind you that, yes,
we've been in this great time or you know a
period of opportunity for money that you have on the sidelines.
But I really think what you have to think about
your money is in three different buckets. What you're going
to need in the short term, and your emergency fund
should go into that bucket because you never know when
something's going to happen, and that has to be super liquid, right,
(02:55):
a high held savings account, even if if the interest
you're getting paid on that is going down, it's still
probably belongs there.
Speaker 3 (03:01):
Then you have kind of mid term money to.
Speaker 4 (03:03):
Your point, the client that you have that had the
wedding coming up, or you know something that you need
a down payment for something in two years, or someone's
going to start college in eighteen months and you're going
to be.
Speaker 3 (03:13):
Able to help them.
Speaker 4 (03:14):
Okay, that's kind of a mid term bucket, and you
can look at things like CDs and money market accounts
where that money might be tied up a little bit
in the short term, but you can get a little
more interest in them.
Speaker 3 (03:24):
And then you look at the long term money and.
Speaker 4 (03:27):
This is, hey, I'm not going to need this until
retirements or you know, for several several years. That's the
money that belongs in the market and in the fad.
Making a change you know, on interest rates shouldn't impact
where that money actually lives.
Speaker 2 (03:43):
Yeah, it's a little frustrating almost because people are they're
kind of playing a game here where with these these flows.
What we're seeing, especially with people understanding that that rates
are going to fall again before a year end, and
what they've done with dividend stocks pulling out of high
yielded savings and cd is putting the diben in stocks.
We've also seen a lot of flows, the largest inflow
(04:04):
in nearly two months in cryptocurrencies. You know, people people
are moving towards speculation, right with money that had been
parked in cash because it's gone.
Speaker 4 (04:15):
From as safe as possible to the other end of
the pendulum here.
Speaker 2 (04:18):
Yeah, and why I say that's a little frustrating. You know,
people are trying to game, you know, play a game.
Here is because when you're actually doing financial planning and
you have an understanding of what your your long term
goals are, your intermediate, your short term goals are, it
doesn't matter necessarily what what changes are happening around you,
because when you have that long term investment strategy and
(04:40):
you're disciplined, that's what you stick with. Don't try to
play these little games where yeah, I'm gonna pull out
of cash and put money into stock when markets are
at an all time high. It kind of boggles my
mind a little bit that this is how a lot
of everyday investors are behaving.
Speaker 3 (04:56):
I think it would be exhausting.
Speaker 4 (04:58):
I think it would be exhausting to have to antnticipate
what the Fed's next move is, or who's going to
be elected in the Oval office and what should I
do based on that, And you're constantly being reactive to
events that are so far beyond your control, when really
what you need to be focusing on is what you
can and should be controlling your own financial plan. And
(05:18):
I would say rarely, rarely then does it make sense
to change what you're doing based on those external circumstances.
Speaker 3 (05:25):
Now, yes, we were in a period where the FED had.
Speaker 4 (05:28):
Hyked interest rates and it did make sense during that
time to shop around and if you had money and
the sidelines, which hopefully you did at least for your
emergency fund, it did make sense to shop around and
maybe put it in an online bank where you were
getting you know, five percent or close to five percent. Rarely, though,
does it make sense to you know, respond to external.
Speaker 3 (05:47):
Things like that.
Speaker 4 (05:47):
And really it's not changing how you're invested or anything
about your plan. It's just taking advantage of an opportunity
that lies without you know, within that money that you
had sitting there for emergency fund.
Speaker 2 (06:01):
Yeah, and we uh, you know, on the show, we
talk a lot about different headlines that we come across
and that we see. And market Watch, yeah, they put
one out here that said stock investors face a gut
wrenching three months ahead after record market run. You know,
clearly I've shared my viewpoints about hating when I see
stuff like this because it can make people make it
(06:23):
can cause people to make emotional decisions. Obviously, people are
keeping a close eye on what the FED is going
to do in the next three months, and you know,
there are a lot of folks that are worried that
the markets are about to tank. So you see something
like this and you think, should I take action?
Speaker 4 (06:39):
You're listening to simply money presented by all Worth Financial,
I mean Wagner along with do you ruby? The Federal Reserve,
our nation Central Bank great recently lowered interest rates for
the first time in four years, and what we saw
is Americans rushing to pull money out of those higher
yielding accounts and putting it in other places.
Speaker 3 (06:57):
And it just makes us scratch our heads.
Speaker 4 (06:59):
Right, not the smartest long term plan to be moving
money around based on chasing you yield somewhere. And if
we're seeing people pulling money out of a money market
and putting it into crypto currency, I can't even understand
the reasoning that must be going through someone's mind when
they think about that. Now, yes, there's all of these
(07:20):
external factors going on, and there will be some volatility
in the markets, but I think what you have to
look at is the overall health of the economy. Now,
to be fair, we have all Works Chief investment Officer
Andy Stout on the show every Monday, and I really
do this is an incredibly smart person, and he is
also looking at realms and reams of financial data.
Speaker 3 (07:41):
I mean, dude's got a lot on his plate.
Speaker 4 (07:42):
He's managing twenty billion dollars worth of assets. He needs
to know what's coming down the pike, and he has it.
There is a potential for a recession next year. Well
before anyone runs to the hills, I think you have
to have the long term perspective of even if it's
going to happen, which, by the way, people have been
saying it's going to happen for two to three years now,
a terrible recession we've seen in the headlines, you know,
(08:04):
and it's you have to understand this is a healthy,
healthy I would say, normal part of the economic cycle.
Markets are going to go down, but one hundred percent
of the time, what we have seen over history is
that then the market's rebound to new highs.
Speaker 2 (08:21):
Yeah, that's not going to change, and Andy Stout certainly
doesn't think that's going to change either. But what we
do see is behaviors that people are taking place or
taking part in because of fear and greed. I would say,
and right now the markets have been very high and
we have got a lot of opportunity to get our
(08:41):
cash to work. So it is natural that folks are saying,
all right, well, this money that I had set aside
for short or intermediate term, you know, financial goals, is
now not paying me what I want it to. So
we're kind of in a euphoric period of time where
everything is green and the markets are high. I'm just
going to go ahead and put this money into the
stock market.
Speaker 5 (09:02):
And I see that.
Speaker 2 (09:03):
I actually have seen that in some of my meetings recently,
where you know, we have Anny reviews to touch base
and make sure that if there's been changes to somebody's
financial situation, needs or goals, that that's reflected in how
we're handling investments. This is what you know, all financial
advisors should be doing. I've had people that have traditionally
been what I would consider more conservative, asking me if
now is the time to take more risk? No, No,
(09:26):
now is not the time to take more risk, right,
And I'm not saying because the markets are high, I'm
saying you are this This question is being fueled by
by by greed, is what it is. And this particular
you know couple, they didn't need to take more risky
they could maybe afford to if they wanted to. But
I also happen to know that there's a history of
(09:48):
being really spooked and struggling to stay invested when the
markets do go down. So, you know, making decisions based
on some of these short term news pieces that we see,
or even Andy's talk of maybe having a recession next year,
that doesn't mean that it's time to make a sweeping
change to how you're.
Speaker 5 (10:06):
Investing, you know.
Speaker 4 (10:07):
And another thing that we are seeing in the wake
of the Fed's decision to lower interest rates is.
Speaker 3 (10:12):
Mortgage rates right dropping.
Speaker 4 (10:14):
We knew this was coming, and another headline we would
say is worth talking about right now is what's happening there?
Rates falling again and it has triggered a ton of refinancing.
So the contract rate on a thirty year fixed mortgage
went down two basis points, so now we're at about
six point one to three percent. I don't know, it's
(10:34):
not that it sounds so high, but it doesn't sound
like so low that I'm going to like jump in
and again, my rate's lower than that. You know, I've
been in this house for several years for I guess
anyone who you know bought a home during the during
the height of all of this inflation, you know, we
saw mortgage rates up to eight percent, six point one
to three percent.
Speaker 3 (10:54):
You know, could make sense, but you also have to
kind of run some numbers on.
Speaker 4 (10:57):
You know, there's going to be some upfront cost usually
associated with refinancing, and you know, so once you run
through those costs, figure out, you know, how much are
you actually saving. And I almost think it could make
some sense to wait before you jump into this process.
Speaker 2 (11:12):
Sure, but that doesn't mean that other people aren't hopping
on the opportunity. Here the Mortgage Banker's Association Refinancing Index
that jumped twenty point three percent and at the end
of last week, which is the highest it's been since
April of twenty twenty two. So obviously, people that are
locked in at the highest rates that we've seen in
many years see the six point one three percent, they're like,
(11:33):
all right, now's the time. You can't really blame them,
but you're right, at some point it's going to those
are going to go lower, just not as low as
I think we've seen in recent years.
Speaker 3 (11:42):
We've been spoiled, We have been really spoiled.
Speaker 4 (11:44):
Coming up next, we're tackling questions about something called the
five year Rule, building credit for a teenager, and much more.
You're listening to Simply Money, presented by all Worth Financial
here in fifty five KRC the talk station.
Speaker 6 (11:57):
Online at fifty five KRC dot com, on your phone
with the iHeartRadio app, and on hundreds of devices like Alexa,
Google Home, Xbox and Sonos and iHeartRadio station.
Speaker 7 (12:09):
All Worth Financial a registered investment advisory firm. Any ideas
presented during this program are not intended to provide specific
financial advice. You should consult your own financial advisor, tax consultant,
or a state planning attorney to conduct your own due diligence.
Speaker 4 (12:30):
You're listening to Simply Money presented by all Worth Financial.
Speaker 3 (12:32):
I mean you Wagner along with Steve Ruby.
Speaker 4 (12:34):
If you can't listen to our show every single night,
you don't have to miss a thing that we talk about.
We have a daily podcast for you, search Simply Money.
It's right there on the iHeart app or wherever you
get your podcasts.
Speaker 3 (12:45):
Coming up at six forty three, some I rate.
Speaker 4 (12:47):
Tax rules that thousands of you are going to want
to know about. This is something that could impact you.
You know, we spend a lot of time on the
show talking about the Federal Reserve, our nation, central Bank,
interrat rates, inflation, the impact on you, and I think
for the people who listen to the show.
Speaker 3 (13:03):
You're probably by now very familiar with these concepts.
Speaker 4 (13:05):
But for the general population, many don't exactly understand what's
going on.
Speaker 3 (13:12):
So JP Morgan's Jamie Diamond kind of threw this out there.
Speaker 4 (13:15):
He says, probably there's about five percent of Americans that
really understand this process and how it impacts you.
Speaker 2 (13:23):
That's surprising. I thought more than five percent of Americans
listened to our show.
Speaker 3 (13:27):
I think it's like fifty percent.
Speaker 5 (13:29):
Actually they're about half of the population.
Speaker 3 (13:31):
Yeah, right, right, exactly fifty percent.
Speaker 4 (13:34):
I mean, who even wants them anyway?
Speaker 2 (13:39):
Oh, Amy, So you know, Jamie Diamond, his impression here
is that, you know, most people aren't tracking the Fed's
decisions and focus on the economy and the longer term
and how Americans are spending and saving.
Speaker 5 (13:51):
It's just not something that most people are paying attention to.
Speaker 2 (13:55):
In fact, that's to the point where a lot of
Americans are obviously they're aware of the FEDS exist since
at least to a recent Pew research study survey found
that forty five percent of Americans have a favorable view
on the US central banking system, while thirty two percent unfavorable,
twenty three percent on shore.
Speaker 4 (14:12):
Interesting numbers well, and also a recent NERD will Up
poll found sixty one percent of Americans are expecting to
take financial action once interest rates go down, if they're
going to buy a car or refinance a loan. So
I think, interestingly, the disconnect is you might know that
interest rates are coming down, but maybe you don't understand
the entire cycle of how they're getting there and who's
(14:34):
making these decisions.
Speaker 1 (14:36):
You know.
Speaker 3 (14:37):
It's it's funny.
Speaker 4 (14:38):
I mean, my kids make so much fun of me
because these are the things that I talk about in
my house, and I just, you know, I mentioned that,
you know, my daughter is in a personal finance class
right now, and she was like, you know, mom, gosh,
they're talking about the FED the other day. They've been
talking about five twenty nines, like it's new information to people.
And she's like, this is what we talk about over
tacos at our house at dinner, you know. And so
(15:01):
I think, you know, listen, most of us grew up
in homes where we weren't talking about these concepts, and
I understand that, you know, many people don't understand the
nuances of what the Federal Reserve does. But understanding how
these basic concepts work and passing them on to your
children could actually be a really great.
Speaker 2 (15:19):
Thing, sure, and how it affects you in the short
term and over the long run, because a lot of
people are, you know, pausing to make decisions about whether
or not it's time to buy a car or sell
their house because they'll have to buy a new one
and lock in and that that currently hire mortgage rate.
Speaker 4 (15:33):
I'm going to ask you a question, and you know
often I ask you questions on the show, and I
kind of already know the answer, And this is one
of those circumstances.
Speaker 3 (15:41):
Have you started your holidays shopping yet.
Speaker 2 (15:45):
Exactly close? It's like a week before, you know? That's
I think. I hope I'm with the majority of men
out there that that procrastinate on their shopping. I certainly do,
and I pull it off, do the job. I work
well under pree.
Speaker 4 (16:00):
Okay, Okay, however, you want to tell yourself it's okay
that you procrastinate. But interestingly, there's some new bank greet
research out there that says about half of holiday shoppers
are planning to start shopping before Halloween, so in the
next month or so. I have a friend who every
year is finished within all of all for holiday shopping
(16:21):
before October first.
Speaker 5 (16:23):
That's amazing.
Speaker 3 (16:24):
It stresses me out to even think about it. I
don't even start thinking about it. I would say, honestly.
Speaker 4 (16:31):
Probably November first is when I start to then say,
all right, kids, like, let's get these lists together, let's
start talking about it. And some of this research also
shows that people are, you know, planning on spending a little.
Speaker 3 (16:42):
Less this year.
Speaker 4 (16:44):
Thirty three percent of that said that, you know, they're
spending less than they did last year. You know, I
always think people have the best lead plans and then
reality comes along, and I wonder if we went back
and revisited how many people who said they were going
to spend less actually spent less. I think there might
be a bit of a discrepancy there.
Speaker 2 (17:00):
So, you know, I saw this too, and it pointed
to the fact that fifteen percent of folks save their
holiday shopping for December. So I'm in the upper echelon
of individual and.
Speaker 4 (17:12):
You're probably spending more because you can't be looking for
deals when it's December twenty fourth in your shop.
Speaker 3 (17:17):
You got to take what you can get at that point.
Speaker 5 (17:19):
Sure you can, you can find great deals.
Speaker 2 (17:21):
That comes from somebody who's clearly never gone shopping on
December twenty fourth.
Speaker 3 (17:25):
Oh that's true. That's true. And you know there's always
this push.
Speaker 4 (17:28):
Every year of you know, what can you do instead
of spending money? And I will say I actually had
this conversation a couple of years ago. My aunt and
cousin and I were very close, and we always buy
gifts for each other, and I was like, we're all
making money, so we're at the point where what we
really actually value right now is time together. So instead
of buying each other gifts, we make plans to go
(17:51):
to dinner together, or go to the spa and get
a massage together. And so instead of kind of buying something,
we realize, like, what we really want the gift to
each other is is time together. So I do think
there's more and more Americans who are looking at kind
of experiences in what you really value than junk, because
I've actually seen some research that shows it's like sixty
percent of the gifts that you give for Christmas have
(18:13):
actually been made it to a landfill like six months later.
Speaker 5 (18:18):
Well, you can't do that with an experience, can you?
Speaker 3 (18:20):
You can't do that with an experience. It's much more memorable.
Speaker 5 (18:23):
I don't know.
Speaker 3 (18:23):
Something to keep in mind.
Speaker 4 (18:24):
Every Sunday you're going to find our all Worth Advice
in the Cincinnati Inquirer, but we give you a preview
on Friday Night show. First question from Shannon and Penalton County.
So she says, I'm changing jobs and I want to
roll over my wroth for O one k to my
wroth Ira. But I'm hearing about this five year rule.
How does it work in a situation like this?
Speaker 2 (18:44):
So the five year rule summarized is a roth ira
needs to have been in place for at least five
years before the earnings are considered tax free. So you
also have to be fifty nine and a half years
old to capitalize on that benefit. So depending on the
age here for Shannon and the timing of things, if
there's not already a wroth iray in place, and now
(19:05):
you're opening a wroth iray to move those wroth four
one k dollars into that five year clock for being
able to access the earnings on those dollars tax free
starts that year.
Speaker 4 (19:18):
And then you know, another thing to think about too,
is there's a lot of people thinking about roth conversions
when you get to retirement because likely for you know,
most of you, you'll go from that paycheck coming in
to that paycheck no longer coming in, which would make
you in a lower tax bracket. So a lot of
people looking at roth conversions during that time. You know,
so ideally, this is money that you're not necessarily going
(19:38):
to need to touch for five years, so that you
can fully take advantage of kind of the tax implications,
the tax strategy and benefits of that versus then stressing
out about needing that money in whether you're or not
you're going to have to touch it in those five years.
Speaker 2 (19:52):
Yeah, Sean from Lovelin, how can I help my son
start building a credit history?
Speaker 5 (19:56):
He is sixteen years old?
Speaker 4 (19:58):
You know, I think about Steve, and I'm a few
years older than you. But when I first started college
and we got on campus, there were literally tent set
up all over the place and they were giving us
credit cards, like sign up for this.
Speaker 3 (20:09):
Here's a credit card, you get a free T shirt,
you get a free water bottle. They've dialed back on
that now.
Speaker 4 (20:14):
And they've made it much more difficult in a good way, right,
I think it's protecting people. But also what you have
to understand is it's harder and harder to get a
credit card. Our oldest applied a couple of times and
was denied until she had she was making enough money.
So one way that you can help like a sixteen
year old will be to make them an authorized user
on your credit card. Now, a few things I would
(20:35):
say that you should have part of that conversation. You
should get alerts whenever they're spending money, and you should
give some direction on this. You don't want to tank
both of your credit because your son's out spending, but
letting them piggybank on your credit, assuming it's good credit,
can be really beneficial in this situation. So I like
that you're thinking along these lines, and you know, you
(20:56):
think about if your son's going to need to buy
a car or take out some student loans, anything along
those lines. It's really good to have a credit history
established by that time. Parents, you can help a lot,
So start thinking along these lines. Coming up next, is
it worth taking a pay cut if you were going
to have a better work life balance. We've got Julie
on the Job next. You're listening to Simply Money, presented
(21:17):
by all Worth Financial. Here in fifty five KRC, the
talk station.
Speaker 3 (21:21):
This is fifty five KRC, an iHeartRadio station.
Speaker 4 (21:29):
You're listening to Simply Money, presented by all Worth Financial.
I'm Amy Wagner along with Steve Ruby. There is a
study that caught our attention. Fifty percent of us, so
one out of every two of us say I would
take a twenty percent pay cut if it meant better
work life balance.
Speaker 3 (21:45):
We've talked about this on the show.
Speaker 4 (21:46):
Tonight, though we're pulling in Julie Boukie, Julie on the
Job with her expertise on this subject. Julie wondering, does
this research surprise you or is it in line.
Speaker 3 (21:56):
With what you would have thought.
Speaker 8 (21:58):
It's very much in line what I would have thought.
In fact, I think if this question would have been asked,
you know, five, ten, twenty years ago, we would have
done the same answer. People have always valued Yeah, people
have always valued flexibility, but it wasn't an option. And
whether it's freedom to take time off, whether it's freedom
to work a different hours, work from anywhere, work from home,
(22:20):
work flexibly. That has always been really people's main desire,
but because it was never an option, no one really
brought it up. Well, now all of a sudden that
it's an option and will continue to be going forward.
In fact, as we move forward, it's only going to
become more common. People are saying, yeah, you know, I
(22:41):
when I look at what I value, pays great. But
some people have a situation in which they are they
would be able to take a pay cut to continue
to work flexibly because they value that more. Now, not
everybody is in that position, but I think it says
a lot about how people really are valuing all the
(23:03):
sectors of their lives now, not just putting work over everything.
Speaker 2 (23:07):
My concern comes from that of the financial planner's perspective.
How might this affect one's ability to retire?
Speaker 8 (23:15):
Yeah, I mean, it definitely is something to consider. And
so that's why I say it's really not for everybody.
If you have a situation where let's say, you know,
you make you already have some safer retirement, you're maxing
out what's in the four A one K, you're saving
as much as you can and you're still able to
do this. You've got to look at the big picture
(23:38):
and go ahead. There are other people who have maybe
dual income, and they make great money.
Speaker 3 (23:43):
But their lives as a unit.
Speaker 8 (23:46):
Are chaotic because everybody's on is on the eight to
five hamster wheel, and the opportunity for one of those
two people to step back while still considering the long
term is definitely an option. So I think it's not
a decision that should ever be made in a vacuum,
(24:07):
although on some days it may feel like, my gosh,
you know, it almost gave up fifty percent of my
salary in order to be able to manage my life.
And so people are looking at their whole lot versus
work and then everything else. So yeah, I think you've
got to take a look at that as well.
Speaker 4 (24:25):
Actually, you talk about the fact that you think if
this study had been done five or ten years ago,
people would have had the same response. I do think though,
the difference is and I think about when I first
started working in my twenties. Yes, I might have valued
work life balance, but I never would have said that
because I feel like the culture at the time and
the workforce was you work your butt off you show up,
(24:47):
you are married to that job. That is the only
way that you get ahead, and to express anything otherwise
would have been career suicide.
Speaker 3 (24:55):
I would have felt like, you know. And so it
just seems like the shift has been in the fact.
Speaker 4 (25:00):
That now you've people graduating from college who are saying, actually,
even more than a high salary, I actually value a
work life balance. I don't feel like I could have
talked about it back in the day.
Speaker 8 (25:13):
No, no, no, you know, it was very much for
especially I mean, I'm a boomer, you know, Boomer's gen xer.
For sure, we're always very much We were told, you
work hard for forty years, you have to deserve or
earn that time off or that time to relax, to
that vacation time. And you know, that's all great, And
(25:34):
I think there's there are certainly some people in older
generations who believe that that was the way to go.
But without a doubt, survey after survey is that people
are two thirds or more people are miserable at work.
So I'm saying, maybe that wasn't the right way to go,
Maybe that wasn't correct. And younger people also saw their
(25:56):
parents and grandparents complain about work, have to miss their
activities or have to miss family vacations because of work,
and so they've seen this and said maybe there's a
way to do this differently. And what I love is
that a lot of Gen X and boomers are watching
what millennials and Gen Z how they look at work,
(26:16):
and they're saying, huh wow, there's some envy there, like
I wish that would have been when I was there.
Speaker 3 (26:23):
Yeah.
Speaker 8 (26:23):
Yeah, So there's a lot of stuff going on around that,
but it's not going back to the way it was
where work becomes a forty years log doing one thing.
Then you're allowed to have fun. That is literally never
coming back.
Speaker 2 (26:36):
So you see that there's been a cultural pivot almost
where employers now have to offer more flexibility in order
to attract talent.
Speaker 5 (26:44):
Is that what you're saying?
Speaker 8 (26:45):
Yeah, yeah, the smart ones are figuring that out. Unfortunately,
there are still a lot of them out there who
aren't getting it. They still believe that they pound their
desks their fifth and order people back they'll come because
boomers would have, but the younger generation is like, no thanks,
and they're moving on to find something else.
Speaker 2 (27:05):
Realistically, do we even need to take a twenty percent
pay cut to find a job with more flexibility in
this day and age.
Speaker 8 (27:11):
Then sometimes we don't. You know, frankly, a lot of
this comes down to econ one oh one is their
demand for what you do. The more demand there is
for what you do, and the better at it you are,
the more leverage you have and negotiating your situation. The
smart companies out there are saying, well, we won't make
you take a pay cut. Come work for us, and
(27:32):
we will. We'll give you all that as long as
you perform. And I think that's that's the that's the key.
This is not a I you know, I'm going to
get all of this and I'm going to sit at
home in my bed and my pajamas and do the
bare minimum. And you know that's that's not going to work.
Speaker 3 (27:49):
When you're in the point of looking for a new job.
Speaker 4 (27:52):
First of all, how do you how do you say
that you value work life balance, Because I guess there's
part of me that still is a little nervous about
kind of putting that out there during the interview process.
At the same time, you don't want to sign up
for something and then all of a sudden, and I've
heard people complain about this, saying, you know it was
advertised is hybrid, and then all of a sudden they.
Speaker 3 (28:12):
Expecting me to be back. So how do you communicate that.
Speaker 4 (28:17):
That's the expectation, but still also make sure that what
you're getting is what you thought and that you're still
an attractive candidate even though it is something that you value.
Speaker 8 (28:28):
The first thing I would do is, first of all,
there is no way to guarantee that what you've been
told in the interview process is always going to exist.
There's no way. But what I would do is start
with those companies go on flex jobs, and there's a
few other sites where they have really great with all
remote jobs or all flexible jobs. So if you are
(28:49):
a company and you are posting your openings on sites
like flex jobs, you are putting it out there and
saying we provide flexibility of some sort to our people.
And so start with those the companies and see what
they have to offer. Be super clear that. Here's my situation.
I had a client recently took a high profile job
(29:09):
and she said to the person hiring her, I have
small children. I can only do It's a job that
requires a lot of evening stuff and she said two
nights a week, that's it, and he said that's fine,
and she put it she had it in an email
confirmation and so far it's worked beautifully. So being very clear.
Once you determine there's mutual interest, that they really want
(29:33):
you and you're very interested, then you can talk about
here are the things that. Look, I'm going to come
in and I'm going to do a great job for you,
and all the references and all my LinkedIn recommendations will
attest to that. Here are some of the things that
because of where my life is right now, I need
to be clear with you before I say yes, because
(29:54):
I don't want either of us to get in a
bait and switch situation. So being super clear upfront, but
not like demanding right out of the shoot. Again, you
have to wait until you've got the mutual interest and
then get everything in writing. And sometimes you can't get
some of that stuff in writing, but because it's like
it's a deal between you and your bought, your manager.
But you can create an email trail that says, you know,
(30:18):
as discussed on every Tuesday and Thursday during the school year,
my start time cannot be until nine o'clock, but I will,
of course work till six and you know, and I
will you know, make sure that the ball doesn't drop anywhere.
And so flexibility without some sort of commitment to strong
performance and then following it up with strong performance is
(30:42):
never going to get you what you want.
Speaker 3 (30:44):
So the key is clear communication going both ways.
Speaker 4 (30:49):
But if this is your expectation right work life balance,
you certainly have to put it out there.
Speaker 3 (30:53):
Julie, I love your.
Speaker 4 (30:53):
Point about the fact that just the culture around this
has changed, it will continue to change, and you see
it staying this way for the foreseeable future.
Speaker 3 (31:01):
It means that our children will grow up probably with
better work.
Speaker 4 (31:04):
Life balance than many of us ever did. Great insights,
as always from Julie Balki. Julie on the job, you're
listening to Simply Money presented by all Worth Financial here
in fifty five KRC the talk station.
Speaker 1 (31:16):
Your opinions are welcome to here.
Speaker 4 (31:18):
Why do we keep letting thousands of people come over
and do nothing about it?
Speaker 3 (31:21):
My family's safety is at risk.
Speaker 1 (31:23):
Fifty five KRC the talk station.
Speaker 4 (31:30):
You're listening to Simply Money presented by all Worth Financial.
Speaker 3 (31:32):
I mean you Wagner along with Steve Ruby.
Speaker 4 (31:34):
If you've got a financial question, you want our help
and weighing in on. There's a red button you can
click on while you're listening to our show. It's right
there on the iHeart app. Record your question. It's coming
straight to us. We'll help you figure it out. And
straight ahead, we'll help you figure out how to save
some bucks on car repairs, because maybe you've noticed this recently,
but the price of getting a car repaired is falling
(31:56):
on the astronomical side.
Speaker 3 (31:58):
So we'll get into that.
Speaker 4 (31:59):
This something actually that happens all the time to the
clients that we work with, the investors that we work with,
and I was actually just talking to one last week
whose mom had recently passed away. And you're dealing with
the emotional sides of these things, but there's also a
lot to deal with with these estates. And one of
the things that you have to think through is the
tax consequences of inheriting this money.
Speaker 2 (32:21):
Yeah, part of financial planning. It's not just the investment
management side of things. It's tax planning, tax management, and
this is kind of what that topic surrounds because what
people don't oftentimes realize is if you inherit an.
Speaker 5 (32:36):
IRA, it goes into an inherited IRA. As long as
it's not your.
Speaker 2 (32:40):
Spouse, then you have to open your inherited IRA, and
with that you inherit the tax liability of those dollars
based on your own income tax bracket. Now there have
been changes Secure Act two point zero Secure Act that
passed a few years ago. What it did is it
removed what was called the stretch IRA, which would enable you,
(33:02):
as the person that inherited that account, to stretch the
rmds out over the course of.
Speaker 5 (33:07):
Your entire life. Now it's a ten year window.
Speaker 3 (33:11):
It changed things. And here's why it changed things.
Speaker 4 (33:14):
Because Uncle Sam was like, wait a second, we're waiting
too long to get our fingers on this money, you know.
And so from the perspective of someone who's inherited the money,
it gave you all kinds of flexibility. Maybe you don't
need that money for years, so you don't have to
tap it for years.
Speaker 3 (33:30):
Secure Act two.
Speaker 4 (33:31):
Point zero said, Okay, hold on, not so long anymore.
You don't get to deal with this over the course
of your lifetime. You have ten years to spend this money,
and so you really have to look at the tax
consequences of that. You take it all out at once,
you're likely going to be bumped into.
Speaker 3 (33:47):
A higher tax bracket. So I think this is where I.
Speaker 4 (33:50):
Say, you know, you want that team of people working
with you, and you need a good tax professional as
these laws continue to evolve, Secure Act two point zero change,
and you're dealing with the emotional repercussions of losing someone
that you.
Speaker 3 (34:04):
Care about, but you also have to figure out a.
Speaker 4 (34:07):
Strategy for taking out this money over the course of
the next decade that's going to be the most tax
advantage to you.
Speaker 5 (34:16):
Yeah.
Speaker 2 (34:17):
Essentially, the reality of this situation here is with Uncle
Sam wanting to squeeze tax money out of you because
whoever you inherited the money from has deferred those taxes
for their entire life. It can create a situation where
there can be a bit of a tax bomb if
you don't manage expectations around distributions accordingly, spreading it out
over the ten years for example. And unfortunately, oftentimes people
(34:40):
that receive inherited iras they're smackedab in the middle of
the highest earning years that they've ever gone through in
their entire life, and now Uncle Sam steps in and says, hey,
send us that money while you're in the highest tax
bracket you may ever be in.
Speaker 5 (34:53):
What do we do?
Speaker 4 (34:54):
And it's interesting because the investor that I was talking
to last week was toward the end of his working career,
peak earning years. At the same time he was starting
to think about retiring, and then this sort of bomb
on top of it. Is this inherited money and how
to deal with it and the strategy around that and
what decisions that you make.
Speaker 3 (35:12):
And so we talk about that financial plan all the time.
Speaker 4 (35:15):
Is kind of your roadmap, but this is sometimes the
detour where you go back to that roadmap and you say, Okay,
this was the original plan. Now you have this extra money.
How do we weave this into the strategy that we
have for pulling this money, using this money at the
same time not having terrible tax consequences with it.
Speaker 2 (35:33):
Yeah, so if you know that you're going to be
retiring in the near future, then you can defer taking
those rmds. There's a couple of schools thought here, depending
on how the IRS might look at it. It's you
can wait until year ten to take the full distribution.
If it's a small account, maybe that's not a big deal.
But if it's a large account. If you're fortunate enough
to inherit a million dollar IRA, for example, then waiting
(35:55):
until year ten is just going to rock that thing
with taxes, So spreading it out accordingly, but maybe waiting
until you're no longer earning income, so taking distributions starting
the year that you retire, and then using those required
minimum distributions from your inherited IRA to supplement your paycheck.
For example, if you're still working and you're not yet
(36:16):
maxing out different retirement vehicles that you have access to,
you can increase your contributions for the deduction while taking
out distributions from the IRA to kind of create a
wash situation. So there's ways that you can help manage this,
but it's important to understand that when you have an
inherited IRA from a non spouse, that you only have
(36:36):
ten years to drain that account.
Speaker 4 (36:38):
I like the word strategy here because I think that's
what you have to have. This can't be like I'm
going to deal with this in a few years. It
is from the get go figuring out what the best
strategy is for you and just pulling back the curtain
a little bit on the IRS. This is an agency
who comes up with new rules, right, so secure at
two point zero, and then they wait a couple of
years and they say, we're going to give you some
(36:58):
guidelines about this as we decide how this is really
going to shake out, right, So as you're making decisions
in real time, then you've got the IRS sort of
changing the rules on you. So this is why it's
important to work with a tax professional. Here's the all
Worth advice inheritance tax laws can be incredibly confusing. Consult
a fiduciary financial planner and of course a tax pro
(37:18):
before you make any moves.
Speaker 3 (37:20):
Coming up next, how to save on car repairs.
Speaker 4 (37:23):
You're listening to simply money present of by all Worth
Financial here on fifty five KRC.
Speaker 3 (37:27):
The talk station.
Speaker 1 (37:28):
Happening all too oft to shut the government down, These
encounters with dem.
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Secret Service protocol happening, not enough to secure the border,
red lloin interest rate happening November fifth.
Speaker 1 (37:41):
Teamsters Unions no endorsement fight first set can make America
great again? It all happens every time. A lot of
things are happening now and into the future. At the
top of the hour, real moves in real time. If
it's happening. It happens here on fifty five KRC the
talk station. What if you could get the best healthcare
(38:01):
without waiting for an appointment.
Speaker 3 (38:03):
It is between groceries for my kids or gas for
my car.
Speaker 1 (38:06):
Talk about it here fifty five KRC, the talk station.
Speaker 4 (38:14):
You're listening to simply Money percent of all worth Financial
Immi Wagner along.
Speaker 3 (38:17):
With Steve Ruby.
Speaker 4 (38:19):
Okay, if you had an issue with the car recently
and taking it in to get repaired, and.
Speaker 3 (38:23):
You thought, what the heck why did that cost so much?
You are not alone.
Speaker 4 (38:28):
Car repairs are actually more expensive right now than ever before.
Speaker 2 (38:32):
Yeah, they've moved up faster than inflation. Oh, bank care, Yeah,
I know, right. Motor vehicle maintenance repair costs they increased
four point one percent per year from November of twenty
thirteen to November of twenty twenty three, So that ten
year period compared to just two point eight percent for
the overall consumer price index. It's getting more expensive more
quickly than everything else.
Speaker 4 (38:51):
Yeah, and so I think if you are looking at okay,
how do I save money? If you can find a
trusted car repay person that you know, that you can trust,
that are going to give you a good deal.
Speaker 3 (39:04):
They're worth their weight in gold.
Speaker 4 (39:05):
Right, doing your research talking to other people can go
a huge way. You know, a lot of those dealerships
sort of incentivize you to come back to them when
you try to resell that car, which can be great
for the resale value of the car, but not so
great over the years that you own it because oftentimes
the dealerships are more expensive.
Speaker 2 (39:27):
Yeah, depending on the type of vehicle you have and
how much money you have in the bank, it can
be beneficial to use the dealership because technically they're gonna
have more expertise attached to your particular vehicle than most
mechanics out there. But that doesn't mean that you can't
figure out what's wrong, understand the price behind it, and
just take that over to another mechanic, a trusted one
(39:47):
that can say I could do that for two hundred dollars.
Speaker 4 (39:49):
Less one of our producers, and I think this is
a brilliant idea. He prints out the list that the
actual maker of the car has, you know, with the
fifty thousand mile mark. This is all the things that
you need to have done, and then he takes it
to someone else that he trusts and they say, yeah,
we can do all these things that they would be
doing at the dealership, and we can do it for
two hundred dollars less of five hundred dollars less, right,
(40:09):
And so he knows it's getting done. All the things
are getting done, but he's going to be able to
do it cheaper. This is where doing your research comes
in handy. You have to think about cars nowadays, all
of the chips that are in them, all the electronic
and computer components. They're heavier, faster, faster, you know, so
collisions create a lot more damage. My husband was on
(40:31):
a side road and was rearunded a couple of years ago.
It was a Tesla and so all the computer chips
and all the things. It was like nine months.
Speaker 3 (40:39):
Before we got that car back. It was crazy.
Speaker 4 (40:42):
It took forever, and the cost, I mean, luckily our
our insurance company covered it, but it was astronomical.
Speaker 5 (40:47):
By the way.
Speaker 2 (40:48):
I saw something popular Mechanics Q and A with an
anonymous dealership service manager that says your bill is likely
to be padded with extra charges when you take it
through the dealership.
Speaker 3 (40:57):
Then they've done that.
Speaker 4 (40:58):
When I was just getting out of college, took a
car in It was a five hundred dollars charge. I said,
you need to call my dad. They explained all the
charges they got off the phone. They said it'll be
one hundred and twenty dollars because my dad. She didn't
need those things. They take advantage when you don't do
your research. Thanks for listening tonight. You've been listening to
Simply Money, presented by all Worth Financial. Here in fifty
five krs, the talk station decision to
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